The difficulties that have arisen in recent months regarding customs operations that impede incoming Ethiopian cargo from Djibouti to the center have been discussed during the most recent visit of an Ethiopian delegation led by Alemu Simie, Minister of Transport and Logistics (MoTL), to Djibouti, a major sea outlet for Ethiopian cargo.
According to information Capital got from both the Djiboutian and Ethiopian authorities, the stack of goods in Djibouti has been attributed to customs-related problems that mostly occurred in the most recent few months, which Ethiopian operators claimed has resulted in an additional cost for cargo.
The case has been discussed, according to the Ethiopian Maritime Authority (EMA) Djibouti Branch, to coordinate Ethiopian cargoes with the committee, which consists of Ethiopian state offices and stakeholders headquartered in Djibouti.
While the issue occurred a few months prior to the committee’s meeting, it was only recently that the matter was discussed.
The head of the EMA branch in Djibouti, Abebe Tefera, claimed that in order to expedite cargo going to Ethiopian consumers, Djiboutian Customs is asking for documents such the HS Code and Area Code, which are irrelevant to them.
Experts in Djibouti and those who are unaware of the deal between the two nations expect the Djiboutian side to facilitate streamlined customs procedures.
But, the customs protocol agreed upon by the two nations has left some opportunity for the Djiboutian regulatory body, which is required to request certain documents in accordance with the treaty.
“Even though the protocol authorizes Djibouti Customs, it is not relevant for the Djiboutian regulatory body to request for the documents that are related, like tax or other domestic issues in Ethiopia,” experts said. As a result, the case should be resolved on the basis of mutual understanding between the two bodies.
“The smooth operation of the logistical activity is a requirement to reduce wasteful time and expense, but I believe there are provisions in the protocol that let the Djibouti side to interfere with the operation. Also, they are mentioned in the process for debate,” experts disagreed.
As a result, freight that is handled by multimodal monopoly Ethiopian Shipping and Logistics (ELS) has trouble getting containers to the center.
Capital learnt that the Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) sent a letter to the appropriate government entity in order to find a solution for the cargo that are stuck in Djibouti.
Abebe claims that 168 containers handled by the state-owned multimodal logistics giant ESL are stuck in Djibouti as a result of the customs issue.
“If this large company runs into trouble, private logistics providers would have a bigger problem. I know that EFFSAA wrote a letter on the case, but I have no idea how much it has affected them,” he added.
According to data Capital got from the Ethiopian Customs Authority, the Commissioner, Debele Kabeta, has sent a letter to Djibouti Customs asking them to leave several demands that were made by since the cases are connected to the Ethiopian side, Djibouti Customs does not lift the case.
According to some analysts, since the case is in line with the protocol that the two sides signed, the matter should be resolved based on political commitment.
“In my perspective, the procedure should be altered to alleviate the issue, or difficulties will emerge in the future,” one expert who understands the matter stated.
The CEO of ESL, Roba Megersa, who was a member of the delegation that traveled to Djibouti, claimed that the situation has had an impact on his company’s operations.
At the most recent visit of the MoTL Minister, who met President Ismail Omar Guelleh, he claimed that the case had been brought up on various occasions and the President ordered the case to be solved immediately on consultation between the two customs.
The Ethiopian embassy has received a letter right away requesting that the situation be resolved as quickly as possible, according to Roba, who spoke to Capital.
He believed that the case will be resolved soon.
The head of the Ethiopian Customs Commission’s Djibouti branch, Aliyi Abdella, told Capital that the two customs will meet next week to resolve the case in accordance with the President’s directive, but he declined to provide further specifics.
Abebe added that the Djibouti Port and Free Zone Authority (DPFZA), had called him to ask him to write an official letter from the EMA headquarters to the Djibouti authorities about the matter.
The head of the EMA Djibouti Branch said, “Our Director General, Yehualashet Jemere, will formally send a letter for his counterpart, Aboubaker Omar Hadi, DPFZA Chairperson, with the purpose to ease the case.
In a similar development, the road issue was one of the topics that President Guelleh and Alemu discussed. Concerns have been raised by drivers regarding the state of the road from Dikhil to Galafi inside the Djibouti border.
During the conversation, it was revealed that Djibouti had obtained funding from Saudi Arabia and was currently conducting a contractor selection process for the 60 km road project.
Almost two years ago, Ethiopian Construction Works Corporation and Djibouti Ports Corridor Road agreed to build a 35 km asphalt road from Dikihil to Daguiro inside Djibouti as part of road restoration; however, the project was delayed due to prior payment.
In the most recent visit, the President gave the order to start the project as quickly as feasible and to disburse the advance payment before the upcoming Ramadan season.
Capital’s attempt to obtain more information from the Ethiopian Customs Authority was unsuccessful.
Customs operations impede incoming Ethiopian cargo from Djibouti
Fana Bole takes City Admin’s decision to court over prime plot demolition in Bole
Fana Bole Consumer Cooperative Societies, a consumers’ association, takes the Addis Ababa City Administration Cabinet to the Federal High Court over the demolition of two popular community facility hot spots and transfer of the same from the community to private investors.
The consumer association lamented that the city administration has not only demolished the facilities but also aborted the social economic values of the society in the process.
Word on the evacuation saga actually broke out last year, where the area government administration body, Wereda 3 of Bole Sub City, cited that a decision coming from the City Cabinet informed the Cooperative Societies to evacuate the premise located at the prime sought after areas around Bole in front of EU delegation and behind Millennium Hall.
According to the information that Capital obtained from the leadership of the Cooperative Societies, since last August, the Cooperative filed a possessory action claim to the First Non-Contractual Bench, Lideta Division of the Federal High Court against the Wereda and Addis Ababa Mayor’s Office.
The Cooperative Societies went a step ahead to also ask for the injunction of the city administration’s decision but was later lifted by the Court on Friday February 24. On the same day, the Court passed a decision stating that it did not have the power to oversee the case.
On Saturday February 25, a day after the court’s ruling on the matter, a demolishing taskforce accompanied by security forces fully bulldozed the two community facilities to the ground.
As Cooperative Societies’ board members inform Capital, a day prior to the demolition, the Wereda administration had issued a letter of evacuation for the tenants within a 48 hour timeframe. On a positive light, some members of the different sport Cooperative Societies s in the 17/19 stated that although the property was put the ground on Saturday morning, their property was not taken.
Those who viewed the demolishing process expressed that it only took a few hours after which the two compounds were immediately fenced by sheet metal.
“This is a testament of how well organized they were,” one of the observers said.
As per the written document of the Office of the Mayor of Addis Ababa, which Capital reviewed, the city cabinet in writing approved the transfer of the two community properties for two individuals and one company.
The document indicated that on Saturday March 26, 2022, the city cabinet approved the transfer of 7,889 square meter plot of Fana Bole (17/19) to MWS Trading for the development of a mall and apartment.
On the same day, the cabinet approved the transfer of Fana Bole (17/23) to Ageru Abere, who took 9,118 square meters together with Bekele Legesse who took 9,655 square meters for the construction of five star hotels.
The cabinet document indicated that the plot located at 17/19 was the property of the Kebele, a local government whereas the 17/23 facility was partly owned by the Kebele and consumers.
But as those close to case argue, the cabinet on this case made a misinformed decision.
“Since the establishment of the facilities, the local government has not had a stake on the sites,” they explained.
They claimed that the two properties have been fully owned by the community living in the area. “Asedir, a traditional cooperation association, was part of the members of the community who constructed the one floor building hall that was erected four decades back at the 17/19 vicinity,” one of the elders who mostly spent time at the facility said.
“We are the full owners of the facilities but letter we facilitated the area with the Kebele administration to take offices there. So the decision that was taken by the mayor’s office and the cabinet is given with lack of information,” he said.
The community members argued that the facilities do actually have title deeds.
He reminded although the city cabinet gave the properties as per its meeting on March 26, 2022, Fana Bole Shemachoch, which was reestablished as per the city administration consumer cooperative societies’ regulation no. 46/2012, that was issued 11 years ago, the cooperative had renewed its title deed on May 9, 2022.
A regulation which was set to provide the transfer of public shops and other income generating institutions to consumer cooperative societies set up at wereda level to the Addis Ababa City Government regulation no. 46/2012 defined the public shops and other
income generating institutions as institutions set up at the wereda level of Addis Ababa City Government which are commonly known as kebele shop and recreation center that render various services to the public which possess or own movable and immovable properties and other fixed assets, public shops, grain mills, butcheries, stores, vehicles, machines, sporting fields, restaurants, bars, rental houses and other used for recreational and income-generating institutions.
Article 4 of the regulation indicated that every property belonging to public shops and other income generating institutions set up at the wereda level of the city government hereby transferred to the consumer cooperative societies as an initial capital as per this regulation and the next article added that the city Trade and Industry Development Bureau shall provide proper support to execute the transfer.
“We got the title deed back in the 1970s. However, as per the new reestablishment process we have also secured the new digital title deed in May last year. However, a few weeks later, the city cabinet decided to transfer our property to other individuals. This is why we say the city cabinet or mayor’s office has made a misinformed decision on the properties,” the board members argued.
The Fana Bole facility at 17/19 has three tennis courts and other recreational facilities. At 17/23 there are four tennis courts and football field besides other different health facilities like its counterpart.
Members of the community said that the latest measure taken by the city administration is against ‘Sport Facilities Administration Proclamation No. 729/2012 Sport Facilities Administration Proclamation’ that gives room for at least compensation or replacement by other plots if the existed sport fields are required by the government.
They lamented that the city administration has not only demolished the facilities but also aborted the social economic values of the society in the process.
“The facilities provided services to the society at affordable price points not only for the residents in the area but also for others who come from different parts of the city,” an individual who knew both facilities said.
According to leaders of the association, the facilities created jobs for several people besides providing community services in the area.
Now the Consumer Cooperative Societies filed its claim to the Administration Bench, Lideta Division of the Federal High Court to suspend the city cabinet minutes and administrational decision taken by the city administration and to adjure in favor of the original owner.
The case will be appeared in mid-March, while the court has rejected the claim to give an injunction.
So far Capital informed that those who take the plots have already commenced site clearing at the compounds.
Fana Bole Consumer Cooperative Societies, administer four centers, 17/17, 17/18, 17/19 and 17/23 and one coordination office. It operates also several shops with over 5,000 employees.
It has been stated as one of exemplary community service in the country and even recognized by the city government as best operator in the sector.
A member of the community association which also hosts local cooperatives, such as ‘edir’, said that the halls and other building infrastructures have provided services to the community and even the local government.
“Despite being owned by the local community, the hall provided services for different social activities, meetings including for governmental offices,” a member, who lived around 17/19 said.
He argued that the Wereda should in the least consult with the community first before taking such drastic harsh measures.
He said that several residents mostly elders were surprised by the incident that transpired on February 25, “I saw some of the elders tearful when the task force bulldozed the long-established facility.”
However, in its response, the court argued that it implied the decision taken by the higher body of the city and said that it had consulted the case with the board of the association a total of three times.
Fana Bole also claimed that the Wereda did not consult with the community directly.
“They were asked to consult the case with the community at their premises, which we rejected,” one of the board members said.
UNECA amplifies joint partnership to unlock challenges faced by landlocked, small islands nations
United Nations Economic Commission for Africa (ECA) calls member states and partners to work more on overcoming challenges faced by Africa’s Landlocked Developing Countries (LLDCs) and Small Island Developing States (SIDS) for the implementation of Africa continental free trade area (AfCFTA).
This was highlighted at a high-level event jointly organized by the UN Economic Commission for Africa (ECA) with the theme of “Leveraging the AfCFTA towards addressing the peculiar trade and development challenges of Africa’s LLDCs and SIDS,” in Harare, Zimbabwe from February 27 and 28. As Africa has 16 landlocked countries and 6 SIDS, senior governmental officials of these countries took part in the meeting.
“The AfCFTA Secretariat launched a guided trade initiative in October 2022 to guide member States to trade within the Agreement. To date only 8 out 46 member States who ratified the agreements are taking part in the Initiative which demonstrates the willingness yet showcasing at the same time that implementation challenges exist. Out of 8 countries, 1 is LLDCs and 1 SIDS, 3 transit countries,” said Jane Karonga, Economic Affairs Officer, adding that, “Africa’s landlocked developing countries and SIDS tend to be disadvantaged in terms of industrialization because of the higher costs of freight and unpredictable transit times, environmental challenges as well as structural impediments.”
LLDCs are distinguished by their absence of sea access and ensuing geographic isolation from global markets. According to the meeting, LLDCs face difficulties related to delays at border crossings, transit and customer procedures, an inefficient logistics system, weak institutions, and poor infrastructure, all of which contribute to significantly higher transportation and other trade transaction costs for these countries compared to their coastal counterparts. As mentioned, these probative costs undermine LLDCs’ attempts to completely benefit from regional and global flow, decrease competitiveness, diminish export profits, increase the cost of imported manufacturing inputs, and discourage investment.
“AfCFTA is accompanied by many annexes and instruments such as Rules of Origin, Dispute mechanism Settlement, NTB Monitoring System, and the agreement itself given them additional years to liberalize their goods in addition to a protocol on Free movement of people thereby ensuring that the Agreement is inclusive and sustainable,” Jane explained.
SIDS also experience a variety of difficulties, such as their remote geographic location, which frequently results in expensive import and export fees for goods and services as well as erratic levels of international traffic. According to estimates, compared to other emerging nations, SIDS are at least 35% more susceptible to financial and economic shocks.
“Issues of debt, impact of Ukraine and Russian war, building back living with COVID and inflationary tendencies is constraining the LLDCS and SIDS much more given their landlockedness and sealockedness. However, AfCFTA presents an opportunity to address some of these challenges due to its promise in integrating the continent into a single market and can address their peculiar challenges in a targeted manner.”
The meeting offers some actionable recommendations on how to leverage the opportunities afforded by the AfCFTA for accelerated implementation of the priorities of the VPOA and the SAMOA Pathway.
“I believe political will is present in these countries as demonstrated by ratification of AfCFTA. The missing ingredient is technical and financial resources coupled by peace and security issues is some of countries is making development a challenge,” Jane emphasizes.
“The main outcome from the meeting is that the challenges faced by LLDCs and SIDS are still prevalent and more needs to be done by respective member States and partners to address the unique challenges faces by these countries. Implementation of the AfCFTA is seen as a game changer in turning the challenge into opportunities in these countries,” said Jane adding that further, financial and technical resources are needed as well as good governance and leadership which is critical to drive implementation.
“The successful implementation of the AfCFTA is an imperative for the African LLDCs and SIDS as it can facilitate their integration into regional and global value chains as well as expand their trade and productive capabilities. The AfCFTA provides particular benefits: in addition to reduction in tariffs as well as provisions on trade facilitation, transit and customs cooperation and collaborative efforts to address adverse climate changes,” said Jane indicating that ECA will support in Advocacy, training, research, capacity building and convening meeting for members to sharing of experiences and learn from each other.
“LLDCs and SIDS can often be differentiated by the specific challenges they face, but are also confronted with many common challenges, particularly those related to the economic, social, and environmental factors that are global in scale,” said Melaku Desta Coordinator of ECA’s African Trade Policy Centre (ATPC).
“Capacity dimension is key in advancing LLDCs and SIDS to leverage AfCFTA to realize agenda 2060,” complimented Mamadou Biteye, ACBF Executive Secretary adding that, “ACBF is prioritizing trade and major economic growth as one of its strategy focusing areas and collaboration with its other partners is looking for a way to support countries accelerate implementation of AfCFTA.”
Manasseh Ntaganda, a senior policy officer in the African Union Commission’s Department of Economic Development, Trade, Tourism, Industry and Mining, drew attention to the serious difficulties that LLDCs still face as a result of the COVID-19’s lingering effects, which have now been made even worse by the latest disruptions brought on by the conflict in Ukraine. She emphasized that the solutions outlined in the VPOA and SAMOA completely address these unusual difficulties. She stressed the value of trade facilitation, connectivity, and the use of cutting-edge technologies to help LLDCs and SIDS integrate into major markets, “In advance of the Fourth International Conference on SIDS, which will be held in 2024, and the Third United Nations Conference on LLDCs, this meeting provides a chance to discuss development priorities for these two groups of countries.”
UN, French embassy host forum to light a digital pathway for women, girls
UN Women Ethiopia and the French embassy together organized a celebration on the international women’s day under the theme ‘DigitALL: Innovation and technology for gender equality’.
The topic sought to depict how technology remained crucial to advancing rights and also in growing the digital gender gap that is impacting everything from job opportunities for women and their safety online.
According to the UN, 37% of women do not use the internet. 259 million fewer women have access to the internet than men, even though they account for nearly half the world’s population.
“While recognizing the considerable benefit of digital technology and connectivity for everyone we need at the same time to recognize and urgently address the digital divides that reflect and amplify existing social, cultural and economic inequality,” said Schadrack Dusabe, head of office of UN women Ethiopia whilst delivering an opening remarks on behalf of Dr. Catherine Sozi of UN in Ethiopia, adding that while celebrating international women’s day, the UN in Ethiopia is advocating to ensuring digital power is in the hands of women and girls.
A panel discussion on digital feminist activism and violence in Ethiopia was also held as part of the celebration with panelists representing Addis power house, Ethiopian human rights defenders, Ethiopian media women’s association, Setaset power and Addis Ababa women, and the children and social affairs bureau.
“It’s very important for us to insure innovation and technology as an enabler to sustained development for access to all without discrimination,” said Remi Marechaux, the ambassador of France to Ethiopia, adding, “Women and girls continue to be underrepresented in the development, application, and control of technology. They are much more likely to experience online harassment and violence. We must decide to use technology to create a future that is safer, more sustainable, and more equitable for all.”
The UN emphasizes that if women were unable to access the Internet and do not feel safe online, they are unable to develop the necessary digital skills to engage in digital spaces, which diminishes their opportunities to pursue careers in science, technology, engineering, and mathematics (STEM) related fields. By 2050, 75% of jobs will be related to STEM areas. Yet today, women hold just 22% of positions in artificial intelligence, to name just one.
Bringing women into technology results in more creative solutions and has greater potential for innovations that meet women’s needs and promote gender equality. Their lack of inclusion, by contrast, comes with massive costs.
