Public Procurement and Property Authority (PPPA) gets underway to make procurement of tender documents for government-based tenders only through telebirr after integration with its electronic government procurement (eGP). In addition to tender documents, the authority is also planning to make telebirr as the only e-payment instrument for public procurement.
“Previously, revenue generated from bid documents has been high. We aim to promote the eGP and increase the number of registered suppliers and so far, more than 1333 tender documents have been published on the eGP website to which suppliers have free access,” said Abebe Alemu, communication specialist at the eGP project office indicating that the authority estimates about 35,000 suppliers are found in the country, with about 8000 so far being registered within the system, which was introduced about a year and a half ago.
Using Telebirr, the authority aims to increase efficiency, transparency, and accountability in the procurement process in alignment with the government’s goal of promoting a cashless economy as well as in reducing corruption in public procurement.
“Now both the number of suppliers and tenders is increasing, which is an opportune time to make payments. The authority is working with Ethio Telecom to integrate eGP with Telebirr. There were some issues that need to be ironed out and this is expected to be solved soon with integration said to follow,” the communications specialist said whilst highlighting on the status quo of the matter.
As Abebe indicated that the authority is planning to fully apply telebir as its payment instrument in the next budget year and additionally supplier’s registration and renewal will be through telebirr which is now free.
“The authority is doing an assessment to see the overall revenue that the government offices are generating from tender documents,” he explained.
In Ethiopia up to 70 percent of government’s annual budget is allocated to public procurement, while public procurement takes up 14 percent of the GDP. So far, for those included on the new platform, carrying out procurements through eGP is believed on average to reduce 50 percent of the procurement transaction costs.
From the recent related headlines, on the way to modernize the government procurement with eGP, lack of willingness to perform procurement operation via the new platform, lack of commitment from the leadership at public offices and low human resource and infrastructure were noted as challenges besides limited awareness about the system among the business entities.
So far the procurement platform is handling 74 public offices as of April, 2023 and is expected to jump to 125 by the end of the budget year from the total 169 public offices accountable to the central government.
Telebirr which officially commenced operation in the first half of 2021 as a business arm of the state owned telecom giant for its mobile money service has garnered over 30.4 million customers with over 283.2 billion birr in transactions.
On the other hand, the integration with eGP will be a new big lucrative advantage for telebirr business since the major portion of government’s budget is spent on procurement.
Additionally government is also working to make fuel transactions fully electronically through telebirr, from May 9, 2023 andfrom April 24, 2023 for stations in Addis Ababa. Last week, to this end, Ethio Telecom, Ministry of Trade and Regional Integration and Ministry of Transport Logistics held a trail testing in selected gas stations in Addis Ababa.
Gov’t electronic procurement system to synchronize with Tele birr
Lion bank enters the digital lending landscape with ‘Alegnta’
Lion Bank launches a digital services app called “Alegnta” that allows it to provide digital credit services without collateral.
In a launching ceremony held on April 3, 2023, at the Hyatt Regency Hotel, the bank announced that it has allocated a 500 million birr revolving fund to be used for the digital loan service, which mainly has six different products.
Daniel Tekeste, president of the bank, explained that the service includes Alegnta salary loans, Alegnta for ride and taxi drivers, Alegnta for small and medium enterprises, Alegnta for electronics and furniture purchases, and Alegnta for those who need financial support.
“The bank is partnering with Quantum Technology Solutions on the development of the Alegnta service application, and Alegnta stands to serve citizens who are managed by salary and daily income,” said the president.
The president added that the digital loan service is a collateral-free service and that any customer with a savings account can access the service only by using their mobile phone. According to the bank, the loan approval process is done in a way that takes into account the income status and repayment capacity of the customers, and 500 million birr have been allocated for the purpose.
Sofonias Embibel, Chief Executive Officer of Quantum Technology Solutions, who developed the application, said that Alegnta was made to focus on credit services in consideration of the growing needs of customers. “Although quantum technology has been launched recently, it is now developing several applications for various organizations and financial institutions to make everything simple and convenient for their operation and services,” Sofonias said.
Currently, customers can access loans and make payments to overcome the financial problems that exist in between salary payments on the Alegnta Salary Loan Service, which has been put into operation. It’s been stated that the remaining four credit services will be put into operation until June, and the full operation of this system will benefit the customers of other banks as well.
In recent times, local private banks have been introducing digital lending services, especially in the last year. Although digital payment is gaining momentum in Ethiopia, it is said that it is not enough for the wider Ethiopian society and is still in its infancy.
Customs lifts stringent preconditions on automobiles traversing Ethio-Djibouti borders
Ethiopian Customs Commission (ECC) lifts its precondition imposed on automobiles coming from Djibouti.
The commission a few months back had applied a stringent new system that forced incoming and outgoing private automobiles to deposit customs duty and tax of cars at the customs gate, or provision of a bank guarantee to enter Ethiopia’s border and or to Djibouti.
The new scheme was met with much displeasure by Djiboutian citizens who prefer to travel to Ethiopia during the heavy hot summer season as well as for personal reasons or business trip during any time of the year.
Those who Capital spoke to regarding the matter and who in fact have close relatives with Ethiopian citizenship, indicated that in the past such precondition were non-existent in terms of crossing the Ethiopian border and staying in the country.
They stated that the new scheme has become a huge obstacle in their movements in recent months.
However, ECC on the other hand claims that the new system was imposed for due diligence, in order for the commission to know the incoming cars to combat illegal activities in the process.
The commission disclosed that depositing customs duty and tax arrears or bring bank guarantee will allow to control cars that are coming in and out, to leave the country as per the time frame permitted to stay in Ethiopia.
It added that the target was to impose such a system for cars that entered the country with a tourism purpose in order for them not to leave the country without settlement of relevant levy as well as in combating illegal activity.
The issue was heavily raised and discussed upon in the latest joint ministerial committee meeting. At the meeting, the Djiboutian side cited that the new scheme would affect the relationship of the two countries.
The issue had also been one of the agenda items on the meeting of the two countries customs technical committee.
Both sides agreed to apply on another controlling mechanism to tackle the potential problems regarding the concern of ECC.
As per the decision, the two sides agreed that detailed information of automobiles be registered on the system with the data shared between the two countries.
According to the letter that was issued a week ago from ECC, the precondition which was earlier imposed has been lifted.
The letter that was signed by Debele Kabeta, Commissioner of ECC, and sent to ECC branches including in Djibouti and Tadjoura indicated that Djibouti’s Customs and Excise Tax Administration will provide information about private automobiles that enter to Ethiopia.
It added that customs branches are now supposed to fill information on the relevant technologically based system and to follow up the automobiles which leave the country as per the permitted period.
It also underlined for the relevant division of the commission to improve the system that shall share information with Djibouti’s counterpart.
It is to be recalled that Capital recently reported that in the latest meeting had between the two countries, officials also agreed to lift the request for a harmonized system code and area code that was applied by Djiboutian Customs a few months back.
Agribusiness takes root at the banks of River Bilate
Agribusiness investors’ commitment reaps benefit in the cultivation of fruits, vegetables and cereals at River Bilate’s banks, as investments continue to flow in the area.
Mechanized farming has now taken full shape in the area of the seasonal river that divides Sidama and SNNP region.
This has lured prominent tycoons such as Belayneh Kinde, who is not new to farming, to invest in the area and has now joined the scheme by taking 550 hectares of land on the eastern bank of the Bilate River.
According to Anteneh Abebe, Agriculture Division Head at Belayneh Kinde Group, the company took over the land about four months back and several activities have been done to nurture the land.
In the past few months, the company prepared the land for cultivation and currently about 400 hectare of land is covered by wheat as part of a dry farming initiative.
The rest of the land is also planted with avocados, which is an emerging and lucrative fruit type in the sector.
Of all the successes registered over the few months, the company cites the construction of a 4km coffer dam at its summit of achievements.
“Cultivation in the area had long been difficult because of the overflow of the Bilate river, that flows for almost eight months in a year,” Getinet Alemu, Manager of the farm explains, adding, “In the rainy season, the river over flows to the main land which for long had been a nightmare for farmers in terms of cultivation in the past. The dam now serves as a sustainable solution both in terms of agri-production and daily business lives for the locals.”
He further elaborated that gradually the wheat farm will be replaced by different fruits trees that are now under preparation.
Similarly, in this short period of time, the farm has also constructed a 20km all season gravel road that will allow the investor to keep its operation swiftly.
On the western bank of the Bilate River in Wolayta zone, SNNP region, which is adjacent to Belayneh’s farm, magnificent agricultural activities have been accordingly been underway for the past one and half years.
On the other side, the investment activity owned by Dagne Dhaba has developed different fruits including lemon that covers 50 hectares, orange 100 hectares, avocado and papaya that cover each 300 hectares as well as banana at 350 hectares.
Currently the farm, Dagne Dhaba Agricultural Products Exporter, is supplying up to seven trucks each of banana and papaya on a daily basis to the market.
And as farm manager Bayissa Baha explains, the farm is preparing to supply avocado for market.
“For the last about ten months, we have been supplying banana and papaya to the market on a daily basis and this will cut across our other fruits as well,” he added
According to Bayissa, the lemon and orange production is expected to be available to the market very soon. Besides the local market, the farms is also supplying the agricultural products to neighboring countries and in the near futures products like avocado will be exported to the European and Middle East market.
The marvelous achievements registered at the farm in under two years are attributed to the full engagement and commitment of the investors who spend a majority of their time at the farm.
“We have constructed an electric transmission line by ourselves that also benefits 250 households that reside here, and a 25km road which eases accessibility. Waters systems such as eight well drilling spots which cost us hundreds of millions of birr have been invested for sustainable production,” he added.
The farm also serves as an input supplier to the region. In the past harvest season, wheat seeds, improved red kidney bean seeds and maize have been distributed to farmers in the region that are sourced from the Dagne Dhaba farm.
For this coming season, the farm is also cultivating sunflower and maize seeds that will be supplied to farmers.
Apart from the two farms that have registered great success in a short time span, is pioneer of the area Bereket Worku, who received 600 hectare of land at Bilate on the right side of the prominent military camp in Wolayta Zone of SNNP.
According to Mesfin Seyoum, Farm Manager at Bereket Worku Farm, they received the farm about two and half years ago, but activities remain very limited.
For instance, in the past over two years, the farm cultivated a very limited land from the total it received. The manager said that currently, the farm supplies about 50 trucks of tomato and pepper to the market.
Despite cultivating few hectares of land with banana, papaya, cassava and avocado the farm has never delivered any of these fruits to the market.
“Engaging on the investment is a vital decision but taking prudent follow up and utilizing the land resource is key to the success of agri-businesses in the area,” an expert who knows the Bereket Worku’s farm remarked.
The farm seems to have fallen behind to new comers who have hit the ground running.
Mesfin to this end admitted that his farm is still on its trial test period, and opined that in the near future the developments will take shape.
“So far we can say we are on a trial period but we may grow up in the future,” he said.
