Beyene Petros, Soft-Spoken Academic, Who Took on Power Structures with Unflinching Resolve, Dies at 74

Beyene Petros (Prof.) was a familiar figure in the quiet halls of Addis Abeba University, where sunlight filtered through arching eucalyptus trees. He mentored generations of students with a warm smile and a gentle demeanour, urging them to question conventions and seek truths beyond textbooks. Yet, beneath this serene exterior lay a man shaped by profound personal loss and an unwavering commitment to his country’s fate.

His life’s web was interwoven with that of his brother, Bezabih Petros (Col.), a celebrated fighter pilot whose fate became one of Ethiopia’s lingering mysteries. On July 6, 1998, at the start of the brutal two-year war with Eritrea, Bezabih’s MiG-21 jet was shot down over Asmara. He ejected safely but was captured by Eritrean forces. Eritrean officials never accounted for his whereabouts despite international conventions and desperate appeals. The unresolved disappearance weighed heavily on Beyene, deepening his empathy and fueling his determination to serve others.

Bezabih was no stranger to peril. During Somalia’s invasion of Ethiopia in 1977, he became a national hero after shooting down an American-made fighter jet, helping to repel U.S.-armed Somali forces. He was captured by Eritrean forces when they were insurgents battling the military government; he was released later. His legacy endures in Hossana, their hometown in the Hadiya zone, where a monument and a roundabout bear his name. At the monument’s inauguration, attended by prominent figures, including Beyene, the absence of Bezabih was a poignant reminder of the personal costs of wars.

Born in 1950, Beyene pursued education with the same fervour his brother showed in the skies. He graduated from Haile Selassie I University — now Addis Abeba University — in 1973, a year before the revolution that brought down the Emporer. His quest for knowledge led him to the University of Wisconsin-Madison for postgraduate studies and culminated in a doctoral thesis on tropical diseases and public health from Tulane University. Over his academic career, he published more than 120 scientific articles in peer-reviewed journals and co-authored the textbook, “Basic Principles of Biology.”

At Addis Abeba University, Beyene was more than a lecturer; he was a voice of critical thinking. Former students recall how he challenged them to look beyond established norms.

One remembered, “He wanted us to question everything and seek the truth.”

His influence extended beyond academia into personal development. Despite a demanding career, he was always present for his family.

“No matter how busy he was, he helped with homework and engaged in deep conversations about life and relationships,” his son, Ermisha, recalled.

He believed his 47-year marriage to his wife, Tihun, was the footing of his life. Together they raised four children and became grandparents to 10. Their partnership was marked by mutual support and thoughtful gestures. Friends often remembered how he would eagerly pick her up from night classes or surprise her with tokens of appreciation.

Beyene’s ability to connect with people extended beyond his family. He was the unifying figure at gatherings, his humour and lighthearted banter putting others at ease. Believing in the power of generosity, he lived by the principle of “paying it forward,” touching many lives without seeking recognition.

This ethos naturally led him into the turbulent – and often deadly – waters of Ethiopian politics. Following the fall of the Marxist-military Derg regime in 1991, Beyene joined the transitional government under Meles Zenawi as Deputy Minister of Education. However, his tenure was short-lived. His attendance at an opposition coalition in the United States provoked the ire of the ruling party, resulting in his expulsion from the council formed to lead the transitional government. Undeterred, he proved his mettle by persisting in his advocacy for democracy and good governance.

Running on an opposition platform, he won a seat in the first parliament after 1995, representing his constituency in Hadiya. Constituents and comrades admired his steadfast commitment to democratic principles and his courage in standing up for justice. Unafraid to challenge the status quo, he consistently voiced the need for transparency and accountability in government during his parliamentary appearances.

He often said, “A society flourishes when its citizens are empowered and informed,” encapsulating his belief in civic engagement.

A minimalist at heart, Beyene found joy in simple pleasures. Walks with family, immersing himself in a good book, or watching a competitive football match were his refuges. Literature exploring themes of justice and humanity shaped his worldview and enriched his conversations. Often, he shared life lessons casually, leaving those around him with insights that resonated deeply.

In his final years, Beyene was appointed by Prime Minister Abiy Ahmed (PhD) to lead the Policy Studies Institute, a federal agency. Noteworthy contributions marked his tenure. He was instrumental in enhancing the Institute’s mission, promoting ethical research practices, and empowering junior researchers. His vision for a data repository system, a project nearly completed at his passing, demonstrated his unwavering commitment to advancing knowledge and encouraging collaboration. He understood the critical role of data in shaping policies and took great care in mentoring young scholars.

Colleagues admired his meticulous nature and ability to remember minute details about their work and personal lives. He embodied the essence of a “servant leader”, always ready to lend a helping hand and inspire those around him.

“He believed leadership should not be only about authority but about service,” a colleague noted.

Despite numerous accolades and achievements, humility remained one of his defining characteristics. Those who knew him remember how he treated everyone with respect and dignity, regardless of their status.

“He made everyone feel at ease,” his son said, recalling his father’s natural ability to connect with anyone. “He reminded us that the greatest legacy one can leave behind is the positive impact they have on others.”

Beyene’s life illustrated this philosophy. His ability to bridge divides and encourage understanding left an indelible mark on those he encountered.

On September 17, 2024, Beyene passed away, receiving medical care overseas, leaving a void in academia and politics. His death marked the end of an era but also served as a reminder of the values he championed. In the classrooms of Addis Abeba University, his teachings continue to inspire. In the halls of government, his calls for transparency and accountability echo still.

DELAYED DEVELOPMENT

A would-be road construction in the Gofa vicinity is seemingly forgotten with pedestrians forced to use parts of the previously paved asphalt or brave the dug-up parts in the absence of motorized travel options. The area is situated south of the city center, near Qera, is known for its spare parts shops and military housing. Though Addis Abeba has witnessed significant growth in road construction in recent times, aiming to improve infrastructure and connectivity, many such projects have often been plagued by delays, impacting both the city’s development and the daily lives of its residents.

DEMOLITION AMIDST CONSTRUCTION

A building formerly under construction on Africa Avenue, located between Dembel City Center and Flamingo Restaurant, is currently being demolished after reaching six floors. The shiny façade of the under-construction Oromia Broadcast Network (OBN) headquarters, along with newly installed street poles and painted corrugated sheets, frame the demolition site, separating it from the sidewalk. Africa Avenue, a historic thoroughfare in Addis Abeba, has undergone recent redevelopment to accommodate wider walkways and bicycle lanes.

STANDING FOR PEACE

The Peace Monument stands tall in the Wello Sefer area. The obelisk-like structure is topped by a statue of a dove and has ‘Peace for Ethiopia’ inscribed in Amharic on one side, while other sides feature the saying in various other languages. The Ethiopian flag is flying proudly on one of two flagpoles beside the monument. The statue was installed by the Ministry of Peace which has its headquarters nearby on Ethio-Chinese Friendship Road.

 

Premier Inaugurates Lemi National Cement Factory

Prime Minister Abiy Ahmed (PhD) inaugurated the slated-to-be largest cement factory in the nation, Lemi National Cement, marking a significant milestone in the industry.

With a daily production capacity of 150,000 quintals upon full capacity, it is slated to massively grow national production. At the inauguration ceremony held Saturday, September 29, Prime Minister Abiy Ahmed (PhD) applauded the speed, quality, and size of the site, adding its installed capacity is half of the industry’s current total.

Located on a 27hct plot in Lemi Building Materials Industrial Park, 140km north of Addis Abeba in Amhara Regional State, the plant is part of a 2.2-billion-dollar multi-phase joint venture by East Africa Holding and West International Holding (WIH), led by Buzuayheu Tadele and Zhang Jimin, respectively.

The 600-million-dollar cement plant, constructed by Sinoma (Suzhou) Construction Co of China, is hoped will bring positive change to the cement industry, aiming to boost local cement production, create jobs, and revive the construction sector.

The sector has been struggling with low output. Annual demand is estimated to have reached 36 million tons, with 18 cement plants having an aggregate production of 7.5 million tons but production has dropped 60pc below targets.

The annual average per capita cement consumption stands at 58kg, which has been relatively stagnant over the last five years. Peak production volumes were recorded six years ago when 20 plants produced 12.7 million tons.

IMF to Unlock $345m in Loans, Concluding Ethiopia Deals First Review

Alvaro Piris, chief of the International Monetary Fund’s (IMF) staff team, struck a bullish tone completing a two-week visit to Addis Abeba — an optimistic shift from his language of despair over the past three years. The change follows the conclusion of the first review of a four-year program agreed upon with Ethiopian authorities.

Members of his team, over 20, met with Minister of Finance Ahmed Shide, Central Bank Governor Mamo Mihretu, and the Prime Minister’s macroeconomic and monetary policy advisors during their visit from September 17 to 26, 2024.

“The staff team is grateful to the authorities for good discussions and their strong action to ensure the success of the IMF-supported economic program,” said Piris in a statement.

His team urged the Board yesterday to grant Ethiopia access to about 345 million dollars in much-needed financing, to be disbursed beginning in the coming weeks.

Previous statements from the IMF had focused on ongoing talks and snail progress but had stopped short of announcing a formal agreement. However, an agreement came after several rounds of discussions where optimism was cautiously expressed but tangible outcomes remained elusive.

“Ethiopia’s economic reform program, including the transition to a market-determined exchange rate, is advancing well,” said Piris.

“The new exchange rate regime is alleviating the acute shortage of foreign exchange that previously existed, lifting a significant impediment to economic activity.”

The IMF’s Executive Board approved a 3.4-billion credit facility in July this year after the authorities agreed to liberalise the economy, particularly the foreign exchange market regime. Key elements of the reform include a tight monetary policy to reduce inflation and end the government’s monetary financing. A temporary fiscal spending package is also planned to cushion the socio-economic impact of the reforms.

Ministry Upgrades Public Transport Terminal

Ministry of Transport and Logistics is undertaking an upgrade to the public transport terminal at the Asco Public Transport Terminal, one of the terminals in Addis Abeba city. The works include paving 6,000 square meters of concrete asphalt, temporary accommodation sheds and chairs for passengers, as well as guard house and office space renovation. The work will enable a 24-hour service upon completion. Seifu Kenfu, executive director of infrastructure at the Ministry, stated that the aim is to create a user-friendly environment for commuters. Federal and city officials have set ambitious improvement plans for transportation facilities in tandem with the city’s new urban landscape, ultimately planning to replace the city’s ageing taxi fleet. During a recent discussion, Minister Alemu Sime (PhD), of the Ministry of Transport and Logistics, and Yabibal Addis, Addis Ababa Transport Bureau head, emphasized the need to modernize service delivery to effectively address existing challenges in the transport sector.

Ethiopian Airlines to Expand Italy Flights

Ethiopian Airlines CEO Mesfin Tasew announced plans to enhance connectivity between Addis Abeba and Rome and Milan by increasing the number of weekly flights between the two nations from 14 to 20.

Africa’s largest airline this week marked its 60th anniversary of its inaugural flight between Rome and Addis Abeba. The celebration took place last week at Villa Italia, which houses the ambassador at the Italian Embassy in the Bella area. Established in 1964, the Rome-Addis route was Ethiopian Airlines’ first connection to Italy and has continued non-stop since. The airline expanded its services to Milan in 2011, and today operates daily flights to both cities.

The celebration was attended by high-ranking officials, including Getachew Reda, Chief Administrator of the Interim Regional Administration of Tigrai Regional State, and prominent businessmen like Belayneh Kindie and Midroc’s Jemal Ahmed.

Premier Switch Solutions Targets Expanded Clientele

Premier Switch Solutions (PSS) is currently negotiating with more than ten commercial Banks to provide its services beyond its shareholders. The company has extended its strategic partnership with the Moroccan company Société Maghrébine de Monétique (S2M) Worldwide, effective for the next three years, at a ceremony held at Hyatt Regency on Africa Avenue. The partnership, now in its 12th year, aims to drive innovation in the financial services industry by providing innovative digital payment solutions tailored to the specific needs of the Ethiopian market.

Amha Tadesse, Group CEO of PSS, stated that “for the past 15 years, PSS has been pivotal for our member banks and the country’s digital finance, driven by our vision of ‘driving digital solutions for all.'”

PSS is a third-party banking technology services provider which initially started with three banks—Awash, Nib, and Hibret banks—in 2009. It later added three more members, namely Addis International Bank, Cooperative Bank of Oromia, and Berhan Bank. It is the first third-party payment processor to be certified by the National Bank of Ethiopia.

$2.7 Million Digital Boost for Youth

Safaricom Ethiopia partnered with Vodafone Foundation, United States Agency for International Development (USAID) and Amref Health Africa to support the Kefeta (USAID Integrated Youth Activity) Project with 2.7 million dollars in a two-year commitment to empower youth through technology and digitized youth services. The announcement was made at the Clinton Global Initiative (CGI) 2024 Annual Meeting. Kefeta project was originally established in 2021 by USAID to advance economic, social, and civic opportunities for young Ethiopians aged 15-29.

The initiative will benefit youth in Mekele, Debre Berhan, Bahir Dar, Hawassa, Addis Abeba and Adama. The project empowers 2 million youth across 18 urban centers in Ethiopia, establishing a successful network of 48 corporate partners. The initiative also set up youth-owned and managed Savings and Credit Co-operative Organisations (SACCOs) with 8,000 youth stakeholders or members in 18 cities. The funding will augment the USAID Kefeta Integrated Youth Project, enhancing its youth centers with advanced technology infrastructure, improving primary and secondary education for internally displaced people, digitizing youth services, establishing youth-friendly digital incubation hubs to promote innovation and self-employment, and increasing youth employability by improving digital literacy and innovation.

Wim Vanhelleputte, CEO of Safaricom Ethiopia, said: “We are excited for the opportunity to partner for a such a transformative cause, Youth Development, by availing our Fast-Data Connectivity in the youth centres and incubation hubs building the next generation talent base to meet the demands of Digital Ethiopia.”

Centre Looks to Enhance Ethio-China Trade, Investment

In a bid to enhance trade and investment between China and Ethiopia, the first Africa-China Investment and Trade Facility (ACTIF) center has been inaugurated last week at Hyatt Regency Hotel, with hopes of providing business services for companies seeking cooperation and business enhancement. The event saw academicians from both China and Ethiopia gathered in one room to launch the annual trade service.

The center’s services include market research, business matching, investment advisory, training and workshop, and legal consulting in the wider aim of enhancing investment relations between the two countries.

The establishment of official bilateral relationships between China and Africa began in the late 1950s, with only a few countries being free of colonial rule at the time. As the modern China-Africa relationship nears 70 years, trade between the two reached an all-time high of 282 billion dollars last year. For Ethiopia, total merchandise imports reached five billion dollars in 2022, with close to 61pc coming from Asia, of which China constitutes half. The figure reflects a rise of 11pc from the previous year, which was a record. Ethiopia primarily exports oil seeds, flowers, coffee, and meat to China while it imports nearly everything from the world’s second-biggest economy.

EV Market Shifting Terrain

Getachew Dinku, a university professor, was surprised by the significant increase in import taxes and duties when he recently imported an electric vehicle. The devaluation of the Birr and new VAT regulations caused duties and tax costs to skyrocket from an estimated 470,000 Br to over two million Br. “It was unexpectedly high,’ he said, claiming that VAT alone had doubled his tax requirements to 935,000 Br.

He also criticized customs officials for overvaluing imported goods to prevent under-invoicing.

His vehicle reached Gelan Dry Port after staying for four months in Djibouti as there were delays with customs—a costly delay. He recalls vehicles being stranded in Gelan for weeks with importers holding out with hopes the government will reconsider the tax burden. Their hopes didn’t bear fruit.

“New VAT requirements have taken importers aback,” he said. “They were hoping for VAT changes.” However, nothing changed for the new vehicle importers. Instead, vehicles began piling up at the dry port.

When the Ethiopian Customs Commission (ECC) Gelan terminal branch cautioned of confiscations, importers like Getachew, left with no choice, were compelled to pay all the tax requirements and take ownership. “We had no choice but to make the payments,” he said.

Sweeping changes have been implemented by ECC in how import duties are calculated, rattling businesses across sectors as well as individual EV buyers. The new VAT proclamation, on the other hand, has also cornered EVs to be subjected to VAT.

Henok Tadese, a prospective car buyer in Addis Abeba, was set on purchasing a gasoline-powered vehicle amidst the fluctuating automotive market. His initial plan was to find a reliable, petroleum-powered car in the Bole Atlas neighbourhood, a popular area for vehicle shopping.

“I couldn’t find them,” Henok recalled, noting the rapid changes in vehicle availability.

Faced with this scarcity, he made the unexpected decision to purchase an EV, settling on a Toyota BZ4X for six million Birr at the time. According to Henok, the decision was influenced by the vehicle’s relatively better resale value and the availability of spare parts.

His decision was costly. Had he purchased the car just a few days earlier, he would have saved over 700,000 Br. The drastic price increase was triggered by the recent macroeconomic reform, which led to the liberalization of the foreign exchange market. This policy shift, aimed at allowing market forces to determine the exchange rate, led to a rapid escalation in vehicle prices.

The federal government’s drive towards environmental sustainability and reducing fuel import expenses has played a notable role in the changing automotive space. In January, the government imposed a complete ban on the import of petroleum-powered vehicles. This move was part of a broader strategy to promote environmentalism and manage fuel import costs more effectively. Coupled with this ban, the government introduced reduced import taxes and duties for EVs, creating a favorable environment for the adoption of eco-friendly vehicles.

Before that, Prime Minister Abiy Ahmed’s (PhD) administration rolled out a series of incentives designed to bolster the EV market. These include exemptions from excise tax and surtax for all EVs, as well as reduced customs duties. Specifically, customs duties for EVs have been structured as follows: completely knocked-down (CKD) kits for local assembly are fully exempt from customs duties, semi-knocked-down (SKD) kits attract a five percent duty, and fully built EVs face a 15pc duty. The government’s ambitious plan aims to have nearly half a million EVs on roads over the next decade.

Despite these incentives, the EV market is facing challenges. The recently enacted VAT Proclamation replaced the previous exemption and introduced additional cost burdens for buyers. The prices of vehicles have surged consequentially. Taxes and duties on cars have increased, with some prices rising by up to two million Birr. The price of the 2023 Toyota RAV4 hybrid has jumped to more than 15 million Br, while the cost of the Toyota BZ4X has grown by 1.5 million Br.

Banks and microfinance institutions have also responded by tightening their lending policies for EV purchases, limiting their risk exposure to the relatively new technology. Concerns about the longevity and high replacement costs of EV batteries have led to shorter repayment periods for loans. Similarly, insurance providers are grappling with the challenges of limited knowledge about EVs and the increased costs of spare parts.

Yonatan Sisay, a technician at Gerar EV Workshop, has observed firsthand the difficulties in sourcing spare parts. The workshop, which began operations last year, now serves 10 to 15 EVs daily. However, due to import constraints and foreign exchange limitations, the workshop struggles to keep essential parts like bumpers, rearview mirrors, and lights in stock. Maintenance fees have also increased, with mandatory software updates costing between 50 to 500 dollars. The high cost of maintenance is partly attributed to software subscriptions, adding another layer of expense for EV owners.

Moreover, the dearth of fast public chargers poses a significant hurdle, especially for those needing to travel long distances. The existing chargers in the capital are largely idle, awaiting tariff regulations from the authorities. This lack of infrastructure further discourages potential buyers and complicates the transition to electric mobility.

Ethiopia, with its population exceeding 120 million, has one of the lowest rates of automobile ownership globally, with approximately one vehicle per 100 people, according to the U.S. Department of Commerce. The government’s push towards EVs is seen as a way to address this disparity while promoting environmental sustainability. As of July 22, 2024, the Ministry of Transport reported 8,739 registered EVs in Addis Abeba, with the highest numbers in the districts of Kirkos, Bole, and Nefas Silk Lafto. In contrast, there were 1.2 million vehicles in the country as of July 2020.

Zerihun Assefa, ECC communications director, confirmed that tariffs are determined by the Ministry of Finance. An unofficial source also confirmed that the VAT exemption for EVs has been revoked by the new VAT Proclamation. Also, all vehicles, including EVs, are now subject to a three percent social welfare tax. This means that the total tax and duty burden on a single EV can reach up to 33pc. Further, the Birr’s devaluation has exacerbated port fees, shipping expenses, and insurance. The combined impact has made EV ownership much more expensive and out of reach for many initially excited by lowered costs.

As Ethiopia navigates these evolving market dynamics, the country’s ambitious goals for increasing EV adoption face both opportunities and obstacles. The government’s incentives and policies have created a less favorable environment for EVs than just a few months before. The challenges of high costs, limited infrastructure, and fluctuating market conditions must be addressed to ensure long-term success alongside stable and predictable government policies.

Atlaw Alemu (PhD), an economics lecturer at Addis Abeba University, commented on the broader economic implications of these developments. He noted that the increased prices of vehicles are likely to affect market demand. As vehicle costs rise, consumers’ purchasing power diminishes, potentially limiting the success of the government’s policy aimed at replacing petroleum-fueled vehicles. Alemu’s insights highlight the delicate balance between promoting sustainable transportation and ensuring affordability for the average consumer. Perhaps most at play is the government’s growing appetite for increased revenues.

The journey towards a more sustainable automotive market in Ethiopia is ongoing and fluid, with stakeholders across the public and private sectors playing critical roles in shaping its future. As the market adapts to these changes, the hope is that innovation and strategic planning will pave the way for a more accessible and environmentally friendly transportation system.