Ethio telecom Voices Alarm Over Procurement Bill

Jul 8 , 2023


[ssba-buttons]

Ethiopia's state-run telecommunications giant, Ethio telecom, has its executives voicing concerns over the proposed public procurement legislation that aims to rope in public enterprises. The bill was tabled before the Standing Committee of Planning, Budget & Finance Affairs, led by Desalegn Wodajo. The authors of the proposed bill underscore the government's drive for more transparency, fair competition, and optimized efficiency in public enterprises. However, it also brings to the fore the inherent tensions between regulation and flexibility, particularly in sectors transitioning from monopolistic control to competitive environments. The aftermath of the bill's implementation, dependent on various factors like the specifics of the legislation and the company's adaptability, will be a crucial determinant in the trajectory of Ethiopia's telecommunications sector. Robel Tarekegn, the head of Contract & Agreement at Ethio telecom, articulated the Corporation's apprehensions about the potential regulatory constraints. In a market that is opening up to competition and fostering innovation, Robel asserted the importance of flexibility in procurement. He argued that directors of the Board previously held the authority to approve procurement decisions, even during the company's monopolistic reign over Ethiopia's telecom sector. These regulatory concerns are surfacing in the midst of Ethiopia's attempts to liberalise its telecommunication sector. The Ethiopian Communications Authority (ECA) is granting a second nationwide telecom operator license, the first of which was acquired by Kenya's Safaricom last year. This ended Ethio telecom's more than century-long monopoly, marking a significant milestone in the country's telecom history. Haji Ibsa, the director general of the Public Procurement & Property Authority (PPPA), delivered a resolute response to Ethio telecom executives' concerns. He affirmed the Corporation's fate as sealed, with further instructions tailored to each sector to be issued in due course.


Radar

State-Owned Enterprises Deliver, But Fund Seeks More from Underperformers

Ethiopian Investment Holdings (EIH), the country's sovereign wealth fund, closed its annual performance review with a mix of strong gains and lingering concerns across its portfolio of state-owned enterprises. Ethiopian Shipping & Logistics led the year with 4.5 million tons of cargo, driving revenues up 90pc and doubling pre-tax profit. Sugar production from Wonji Shoa, Metehara, and Fincha climbed 34.8pc to 163,290 tons, nearly doubling revenues to 15.6 billion Br, though EIH flagged ch...


Radar

MIDROC Cocoa Drive, Local Production Focus on Value Addition

MIDROC Investment Group is placing a bold wager on cocoa in the lowlands of Sheka. Building on extensive trials at the Bebeka Coffee State Farm, the company has introduced globally prized Forastero, Trinitario, and Criollo varieties alongside coffee. "The results are astonishing," said General Manager Beshada Worku, pointing to international prices that range from 8,200 to 14,000 dollars a ton. The project's first phase covers 50 hectares, with 44,000 seedlings already planted. Expansion to ...


Radar

Bureau Maps Out 1,700 Land Rights in a Month

The Rights Registration & Holding Service Directorate under the Bureau of Land Development & Administration prepared over 1,700 landholding certification maps in a single month. The update came during the bureau's July performance review, which measured progress against the upcoming fiscal year's targets. Director Tesfamichael Endale said efforts are being scaled up to give farmers secure land rights and quicker certification. Deputy Head WendwossenBanjaw added that the priority ahead...