Tuesday, September 30, 2025
Home Blog Page 2365

Junedin Jemal

Name: Junedin Jemal

Education: Finance Administration

Company name: Leather crafts

Title: Founder and Manager

Founded in: 2017

What it does: Leather products

HQ: Addis Ababa around CMC

Number of employees: 4

Startup Capital: 50,000 birr

Current Capital: Growing

Reasons for starting the business: Interest in leather products

Biggest perk of ownership: Doing what I Love

Biggest strength: Committed to do anything to survive

Biggest challenging: Working place

Plan: To build a big leather processing factory

First career: Designer

Most interested in meeting: Haile Gebresilassie

Most admired person: Haile Gebresilassie

Stress reducer: Designing

Favourite past time: Designing

Favourite book: None

Favourite destination: Harer/Dire Dawa

Favourite automobile: Mercedes Benz

UBUNTU: I AM BECAUSE YOU ARE; YOU ARE BECAUSE I AM

As Ethiopia grapples with the reality of extinguishing extremism, Ubuntu the African philosophy declaring ‘I am because you are; you are because I am’, should be a prominent pillar of game plans to ensure sustained success. Ethiopia, known as a peaceful country before the battles began, has its hands full in a quest for solutions to myriad issues from health and food security to economic stability and peace.    The latter affects the former and none can wait. Simultaneous action is required and culture may prove to be a crucial lynch pin.  The 2021 Biennal Luanda Pan African Forum for the Culture of Peace themed ‘Contribution of Arts, Culture and Heritage to Peace’ explored current and traditional trends concerning “…arts culture and heritage interplays with conflict, reconciliation and efforts to build more peaceful societies in Africa.” They documented the role of “Natural heritage conservation, protection and promotion (as) a critical contributor to peace.”

A majority of the world’s most  extraordinary habitats and landscapes are found in Africa. This diverse natural heritage, filled with iconic flora and fauna, are heavily impacted by armed conflict and those tasked with protecting said are in the line of fire. The forum goes on to state,  “…written history and oral traditions are key to building a strong cultural identity. Shared values and ethic can act as endogenous mechanisms of conflict prevention and resolution in the continent, notably through intercultural and inter-generational dialogue. Preserving traditional practices enhances a sentiment of common identity within communities, and reinforces the role of individuals as guardians of their cultural and natural heritage … .”  Hence converging interests should inspire cohesion.

It is easy to identify problems and solutions on paper, the challenge comes with application. Rwanda is often a good gauge for Africa in terms of post conflict rebuilding and re-establishment of peace and social cohesion. In 2018, Mobile Arts for Peace (MAP) was launched in the Eastern Province of Rwanda with a focus on activities and a curriculum workshop with   “…cultural artists to inform the methodology, a training of trainers with educators to adapt the methodology to local and regional contexts, and a youth camp to train young people as facilitators working alongside the adult educators to develop drama clubs and to integrate the methodology into schools.” The peace building program integrates mental health awareness and support for participants with workshops, counselling and continuous support for MAP youth and trainers.  Working with several selected schools, cultural organisations, educators, and youth they designed and delivered the MAP methodology. Training was then further extended to youth and adult trainers, creating an  informed and synchronized  network.  Artists, educators, young people and civil society wish to use MAP to “inform the National Curriculum Framework in Music, Dance and Drama in Rwanda”. Their updated website provides the actual Psychosocial Module online at https://map.lincoln.ac.uk/2022/03/17/map-psychosocial-module/ .

Ethiopia, at the helm of this journey to sustained peace, has access to best practices in addition to local indigenous knowledge to eradicate extremism. Strategies, however, should include youth perspectives and implementation through the use of the arts for effectiveness.  Though the responsibility for peace and security rests on the government’s shoulders, messages are best promoted through artist influencers. GIZ recelled this impact in their 2020 annual report entitled Partnership for Impact. Working in tandem with the African Union (AU) on peace and security, one of five focal points, GIZ notes, “On the International Day of Peace…AU Commissioner for Peace and Security, Smail Chergui, launched the Pledge for Peace Campaign on Twitter and Facebook. High-ranking staff of the AU and other international organisations as well as influencers … encouraged citizens from all region of Africa to recognise their responsibility for more peaceful coexistence using the hashtag #MyPledgeForPeace. Musician, actor and peace activist Emmanuel Jal; Grammy-nominee Niniola; actress, TV and radio host Folu Storms; as well as South African singer Zoë Modiga, lent their voices…the first week, the campaign reached an estimated 22 million people.

The joint GIZ and Mali Ministry of Craft, Culture, Hotel Industry and Tourism’s post Mali military coup arts project, aimed to reduce “…radical Islamist influences threatening the traditional cohesion of Malian society and the freedom of cultural expression.” The young of the population were the most affected, so the program gave alternatives promoting tolerant and friendly traditions, hoping to diminish the spread of extremism. “Through opportunities for cultural expression, young people play an active role in combating extremism, in political participation, in strengthening social cohesion and in crisis prevention… (which) enables authorities such as the Ministry of Culture to carry out their role … in the interests of greater social cohesion and political participation… .” Ubuntu, I am because you are; you are because I am’ becomes more than a mantra as empowered and enlightened youth choose love over hate and the arts as a vehicle for prevention and preservation of peace.   

Dr. Desta Meghoo is a Jamaican born Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora African Forum.

 

 

Africa’s energy transition calls for pragmatic measures to keep the continent competitive

0

By Vera Songwe, Damilola Ogunbiyi and Amani Abou-Zeid

During the United Nations High Level Dialogue in Energy in September 2021 – the first such dialogue in over forty years, the UN Secretary-General – H.E. Antonio Guterres – in his address urged countries to take urgent measures towards the rapid phase out of coal power capacity in OECD countries by 2030 and in the rest of the world by 2040. Mr Guterres noted that efforts must be made to ensure that “…no one is left behind in the race to a net zero future…” and that “…the global energy transition must be just, inclusive, and equitable…”, while recognizing that “…no two national energy transition pathways will be identical…” While Africa’s climate ambition and the drive towards net zero emissions must be relentless, the continent’s energy transition cannot be identical to the rest of the world and needs pragmatic solutions.

The current geopolitical shock arising from the crisis in Ukraine has compounded the severe impacts already being felt by African countries because of the socio-economic impacts increasing climate change and the COVID-19 pandemic. In particular, the war in Ukraine has shifted forward the gear for countries to step up efforts towards the clean energy transition away from fossil fuels to renewable and cleaner energy forms. European countries are rethinking their energy plans and policies. And there is increasing possibility of the use of more coal-fired power plants in Europe, thereby impacting on climate goals. But most importantly, the crisis is causing sharp rises in fuel and food prices globally, with huge impacts on African countries. The crisis has caused European countries to rethink their energy strategy and seek new sources of oil and gas to replace Russian supplies. Meanwhile, the prices of renewable energy technologies have seen sharp increases, after many years of costs declines, at a time when African countries need more deployment of these technologies. This situation calls for renewed thinking on Africa’s energy access, mix and green transition approach, including the role of natural gas in this process.

The global drive for a green transition and net zero emissions present African countries with risks and enormous opportunities. At the same time, Africa’s energy access and transition must be compelling and must be defined and owned by Africa. It must reflect Africa’s very low contribution to global emissions and comply with the Paris Agreement that recognises the need for the emissions of developing countries to take longer to peak while developed countries need to do more and do so urgently. However, Africa’s energy transition must also be based on tapping the huge opportunities in terms of energy access, jobs and industrial development using the continent’s abundant renewable energy resources.

Global development agendas are all premised on peoples’ right to sustainable development and poverty eradication. Actualizing this right and bringing hundreds of millions of Africans out of poverty requires widespread access to secure, affordable and reliable energy. However, the reality is that the region remains the world’s least electrified, with inadequate, unreliable and generally expensive supply, severely constraining development ambitions.

Africa, with 17% of the global population, accounted for only 3.1% of the over 26,823 terawatt-hours of electricity generated, and 3.3% of the primary energy consumed globally in 2020, according to the BP Statistical Review of World Energy. The International Energy Agency (IEA) states that the continent’s average per capita electricity consumption is only about 600 kilowatt hours (kWh) per year compared with a world average of 3,200 kWh, and 6,100 kWh  for the European Union (EU) and 4,600 kWh for China. In terms of power plants, Africa’s total installed capacity of about 233 GW is only 12% of that of China.

Climate change is already impacting African economies disproportionately, even though the continent has contributed the least to global warming, with a share of only 3.9% of global fossil fuel emissions in 2020. In fact, excluding South Africa and North African countries, the rest of Africa contributes only 1% of these emissions.

In this Decade of Action to attain the Sustainable Development Goals, Africa’s energy situation calls for ambitious and pragmatic measures, otherwise the continent will be left further behind by 2030. With the right support, Africa can harness its abundant energy resources to transform its economies and become a global leader in inclusive green growth. This potential was very high on the agenda of the African Ministerial Roundtable that held during the SEforALL Global Forum in Kigali. This roundtable of 14 ministers of energy and environment from 10 African countries, hosted by the Republic of Rwanda, concluded with the Kigali Communique on a just and equitable energy transition in Africa[1]. It will also be very high on the agenda of the forthcoming Specialized Technical Committee on Energy and Infrastructure of the African Union Commission and at COP27 in Egypt.

To achieve this energy transformation, natural gas is critical as a transitional fuel because its critical for the baseload required to integrate renewable energy. A key incentive for huge investments in Africa is the prospect of a strong and reliable energy system with high flexibility that can integrate increased shares of variable renewable power (solar photovoltaic and wind). System flexibility could come through generation, transmission and distribution and storage infrastructure, as well as through demand-side management to integrate high shares of renewable energy. Natural gas power plants can provide system flexibility by being able to respond rapidly to changes in demand in very short time intervals.

Natural gas can facilitate the phasing out of more polluting fossil fuels. Although it is itself a fossil fuel that contributes to greenhouse gas emissions, increasing its use in power generation enables African countries to phase out more polluting fuels such as coal, diesel, Heavy Fuel Oil (HFO) and traditional biomass, while bringing on board more renewables. There are presently about 34 GW of oil and coal power plants capacity in Africa that are more than 40 years old and thus due for early retirement. It may be possible to switch from coal and HFO to natural gas using existing infrastructure to deliver more climate-friendly energy. Besides, continuous flaring of natural gas associated with oil extraction only goes to inflate GHG emissions without any return on development. Globally, the amount of gas flared annually – estimated at 142 billion cubic meters – could power the entire sub-Saharan Africa region.

Increasing the share of gas in Africa’s energy mix will only marginally raise its share of global emissions to 4.5% in 2040, while allowing for greater shares of solar and wind power that would otherwise be possible. Furthermore, natural gas as a transition fuel is critical to addressing the huge challenge of lack of access to clean cooking with LPG. Over 80 percent of Africans lacking access to clean cooking. This impacts mainly women and girls and results in about 500,000 unnecessary premature deaths each year related to indoor pollution from dirty cooking solutions.

Natural gas therefore promotes a win-win for energy access, clean cooking, better jobs, and climate ambition. Producers such as Algeria, Ghana, Mozambique, Nigeria, Senegal and Sudan include use of natural gas in their Nationally Determined Contributions (NDCs). The safeguards in the Paris Agreement provide the basis for climate justice and a just transition for African countries as well as other countries where development efforts are highly constrained by climate change, global geopolitical shocks, and the absence of meaningful international support.

Investing in gas as part of a just transition towards more sustainable and climate resilient development is of vital importance to Africa’s pursuit towards achieving sustainable development and poverty eradication, especially with the increase in African gas producers, up from 11 in 1990 to 29 in 2019. Meanwhile, China is bringing online more coal power plants to hit peak emissions by 2030 and is at the same time the global leader in wind and solar power deployment. Germany is phasing out coal by 2038 and leads Europe in its use of renewable power. African countries need similar transition strategies that help them tackle energy deficits while enhancing climate action in a just way.

Africa must urgently overcome the challenges to unlocking gas as the critical transition fuel for its economic ‘renaissance’, energy access, industrialization, climate ambition, and recovery from COVID-19. In particular, African countries with natural gas need to prepare just transition plans as part of revised NDCs and work on a continent-wide strategy for a just transition and transformative investments in gas that enable more renewables at speed and scale.

This is especially critical in the face of the ongoing Ukraine crisis, that has given rise to uncertainty in Europe’s already skyrocketing gas market. There is an opportunity for Africa’s gas market to develop to fill this gap and serve domestic and international markets. Africa, with its rich gas reserves, would need to attract investments towards achieving this renaissance.

The Ukraine crisis, the COVID-19 pandemic, and the climate crises put Africa at a new development crossroad from which, with the right leadership and support in defining and designing its energy mix, it can proceed to attain its development aspirations for a peaceful and prosperous Africa that leaves no one behind, while contributing to keeping climate change at bay.

Vera Songwe is United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa

Damilola Ogunbiyi is CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All

Amani Abou-Zeid is Commission for Infrastructure & Energy, African Union Commission

 

NBE puts forth new threshold in reserve requirements

0

The financial sector’s regulatory body, National Bank of Ethiopia (NBE), revises bank’s reserve requirements by introducing a new rate amidst the skyrocketing inflation.
The regulatory body in its 8th amendment of reserve requirement directive no. SBB/84/2022 that became effective on June 9, states that the reserve requirements of banks to be reduced to 7 percent, which is a new rate when compared to the preceding experience.
The new rate replaces the former amount that was effective from September 1, 2021, which doubled the long established five percent rate to 10 percent.
However, the 7th amendment of SBB/80/ 2021 reserve requirement stayed on for a few weeks since the banks were allowed to get a transition period of 3 months to meet the 10% reserve requirement starting from September 1, 2021, and then in December 2021 the central bank gave a waver for banks to utilize two percent of their reserve to finance the coffee sector. The waiver was given for seven months which comes to an end this month.
As a result the reserve requirement was technically 8 percent for the past several months.
When the NBE Board of Directors chaired by Girma Birru (Amb) decided to review the reserve requirements on August 27, 2021 with some additional monetary policy reviews, it was disclosed that the outstanding credit to the private sector grew to 40.8 percent (year on year/yoy) in July, 2021, and disbursement during the month grew at about 125 percent, compared to the same period of last year.
The 6th amendment of reserve requirement issued under directive no. SBB/55/2013 had been in effect for almost eight years.
“Such a rapid growth of credit poses significant risks to price and financial stability, in the context of a rising inflation which reached 26.4 percent (yoy) in July. Consequently, the Board has decided to raise the reserve requirement in birr and foreign currency deposit liabilities held by commercial banks to 10 percent, from the current level of 5 percent, effective on September 1, 2021,” the Board of Directors said on their statement late August last year.
The decision of the board indicated that the major reason to revise the directive and increase the rate was the growing trend of the inflation, while the latest move is seen on the verge the increment behavior of the inflation that skyrocketed to 36.6 percent as per April’s monthly inflation figure.
On his budget speech about two weeks ago Ahmed Shide, Minister of Finance (MoF) and one of the five members of NBE’s Board of Directors, told parliament that the government will work to reduce the inflation growth rate to 11.9 percent in the coming budget year.
The country first introduced the reserve requirement through Directive No. SBB/14/96 which came to effect on January 1, 1996 with a 10 percent requirement. The highest reserve requirement was 15 percent under the 4th amendment of directive no. SBB/45/2008, which was effective on April 7, 2008 and lasted till January 1, 2012 to reduce to 10 percent. It is to be recalled, that 2008 and the following years were the period that the country saw the highest inflation ever.
It was recorded that in the first quarter of 2008, the general inflation peaked at 60 percent, while the food inflation was at a staggering 81 percent.