FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

The winner is expected to be announced in the coming two weeks

Nov 30 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )

Two international companies gave the lowest offer of a combined 24.5 million dollars to supply 80,000tn of wheat for the fourth phase of the Productive Safety Net Programme.

Hakan Agro DMCC and Promising International offered the lower prices for the wheat that will be stored in Dire Dawa, Adama and Kombolcha. The winner is expected to be announced in two weeks time.

The companies bid to supply wheat in the programme in three lots classified according to where they will be stored before being disbursed into the market. While 30,000tn of grain will be stored in Kombolcha, 24,000tn and 26,000tn will be stored in Dire Dawa and Adama, respectively.


The tender was opened on November 26, 2019, by the Public Procurement & Property Disposal Services, on behalf of the Ministry of Agriculture. While nine companies showed interest in supplying the wheat, only three, including Gemcorp Commodities Trading, submitted their financial offers.

Promising, established in 2007 and actively working in Ethiopia, Dubai, Ukraine, Syria, Egypt and Tunisia, gave the lowest offer of 312.25 dollars and 297.25 dollars for a tonne of wheat to be stored in Adama and Dire Dawa, respectively.


For wheat to be stored in Kombolcha, Hakan, a United Arab Emirates (UAE) firm that specializes in supply chain management, made the lowest offer of 307.30 dollars for a tonne of the grain.


The winner is expected to be announced in the middle of this month, while the wheat is expected to arrive after 45 days from the opening of the letter of credit.

The procurement of the wheat is financed by the World Bank under its Productive Safety Net Programme, which is designed to elevate chronic food insecurity facing rural areas. The programme, which reaches over eight million people across the country, was started in 2005 in Ethiopia.

The government also procures millions of tonnes of wheat every year to stabilise the market. In the last fiscal year, the government procured 1.7 million tonnes of wheat from four international companies on behalf of the Ethiopian Business Corporation, the Ministry of Agriculture and the National Disaster Risk Management Commission. It cost the nation 11.1 billion Br.


This is despite Ethiopia producing 4.5 million tonnes of wheat in the previous fiscal year, while the nation’s annual consumption of the grain amounted to 6.3 million tonnes last year. Of this, 30pc to 35pc of the demand is covered through imports.

An expert in the sector believes that lack of proper policy on agriculture is the main challenge.

“Poor irrigation and farming systems dependent on rain cycles are factors that contribute to lesser production,” said Messay Mulugeta (PhD), a food security and poverty reduction expert and an associate professor at Addis Abeba University’s College of Development Studies.

Messay adds that the nation should not continue to import wheat but instead develop a policy that reconsiders the socioeconomic and environmental factors at play.


PUBLISHED ON Nov 30,2019 [ VOL 20 , NO 1022]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

[ssba-buttons]

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Ditching Carbon Pricing Reckless Bet with the Planet

In 2009, US President Barack Obama appointed Harvard Law School Professor Cass Sunste...

Africa's Debt Is an Opportunity

Almost every debate about African public finance centres on “Africa's debt burden” as its primary topic. The numbers are stark: the medi...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Soaring Taxes Fail to Plug Holes as Audit Reveals Enduring Waste

Jun 28 , 2025

Meseret Damtie, the assertive auditor general, has never been shy about naming names...

Expanding Federal Budget Tests Limits of Fiscal Discipline

Jun 21 , 2025

A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...

Desire to March to the Sea Should Spill Reason on the Way

Jun 14 , 2025

Yet again, the Horn of Africa is bracing for trouble. A region already frayed by wars...

Where the Roof Overhead Comes with a Ceiling on Hope

Jun 7 , 2025

Few promises shine brighter in Addis Abeba than the pledge of a roof for every family...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Real Respect Shows Up First

A couple of weeks ago, I found myself at a social gathering where strangers and old acquaintances mix in a haze of small talk and light laug...

Absence of Agile Discipline

In Ethiopia, across both public and private sectors, a quiet saboteur undermines productivity: the meeting. Too often, gatherings stretch en...

Life Matters

The Quiet Roar Beneath the Calm

There is often a sense of awe when encountering someone who appears to have everything under control. Impeccably dressed, composed, and seem...

The Weight of the World

The film Straw did not just break a heart, it reached into something deeper, unsettling a primal fear that resides in every parent. As a mot...