Aimed to support civil society organizations/CSOs/ and to create inclusive financial accessibility, a new bank named Progress bank announces that it is under formation.
On Tuesday May 31, 2022, the organizing committee of the bank gave a press conference on the formation of the bank. As indicated on the stage, with the establishment of different fund generating schemes, the bank is said to help minimize CSOs dependency on foreign aid and helping to pave way for self-reliance.
Health, education, technology, sanitation and climate change are key priority areas of intervention of the bank. Women, financial empowerment and creation of employment for both rural and urban youth, agriculture are also major development priorities of the bank.
According to the organizing committee, the bank acquired its name from the Ministry of Trade and secured the permission from the national bank of Ethiopia to sell shares and embarked on the formal bank operation.
As indicated by the organizing committee, the formation of the bank has officially been launched at the friendship park on May 11, 2022 and commenced sale of shares. The price of each share is 1,000 birr which is currently being sold in 16 banks including Commercial bank of Ethiopia.
The idea to form a bank was delayed due to the restrictive CSO proclamation which restricts CSOs to form financial institution. However, following the replacement of proclamation no 621/2009 by proclamation no 1113/2019 has opened up the space to allow CSOs to establish a development support bank.
A group of CSO operators and private sector were consulted and initiated to establish this specialized bank that aims to cater for the economic and social development and sustainability without pursuing exclusively profit seeking goals.
CSO driven bank in the pipeline
TIME FOR A SPECIAL TRIBUNAL
When widespread malign activities afflict society at large, rectifying consequences is bound to require reparatory measures that might be deemed out of the ordinary. Ethiopia has been under one party rule for almost three decades. During the reign of EPRDF, a bona fide ‘Mafiosi State’ was created behind the formal state that facilitated, amongst other things, mal-governance and criminal accumulation! The Ethiopian sheeple had to endure all kinds of onslaughts unleashed by the criminal gangs of the ‘Mafiosi State’. Unlike many other mafia groups elsewhere, Ethiopia’s ‘Mafiosi State’ operated by leveraging all the institutions of political governance along with those of the market and civil society. After this ‘Mafiosi State’ became entrenched there was hardly any institutional space to address grievances, hence the insurrection!
This column has repeatedly tried to point out the severe and protracted malfeasance that was creeping in the sphere of governance for about a decade, but to no avail. After the passing of the former TPLF/EPRDF leader, Meles Zenawi, mal-governance and embezzlement went from bad to worse. To be sure, Ethiopia’s Mafiosi State operated across the width and breadth of the country. ‘Capos’ or ‘God Fathers’ were designated to lead and oversee Mafiosi operations in the various regional states. It will not be an exaggeration to say the country’s major institutions were, almost without exceptions, compromised. Ethiopia’s once revered judiciary became a mere tool in the hands of the Mafiosi. Many capable and experienced legal professionals refused to work within the system under the guidance of the Mafiosi State. It was mostly the ‘yes’ men and women that were assigned to the various posts within this critical institution of governance. Important court rulings were made in favor of the Mafiosi State, without much qualm to the upholding of justice. Torture, resulting in the maiming and killing of people became routine! From the very start, it was clear that the approach of the Mafiosi State was blatantly unjust, unethical and very alienating, to say the least. In hindsight, it seems the ambition of the Mafiosi State was to have full spectrum domination over the political, economic, social, cultural and religious spheres of this diverse nation! After decades of unanswered pleading for a reprieve, the Ethiopian sheeple’s patience ran out; hence the insurrection!
In the economic sphere, the Mafiosi State also played a detrimental role. Those who were not favored by the Mafiosi State lost out, while cronies were awarded plenty of favors, including prime plots in cities and towns, pristine lands in the country sides and resort areas, billions of birr in bank credit, massive government tenders, etc., By and large, the Mafiosi targeted sizeable and independently operating businesses for disfranchisement, even complete elimination, to pave the way for cronies to dominate the Ethiopian business scene. Without the blessing of the all-powerful Mafiosi State, any major effort in productive engagements became a non-starter. The parasitic oligarchs thus created, both foreign and local, must also be held accountable for the massive embezzlement that took place in the last three decades. The oligarchs’ oft-repeated fantastic stories of ‘rags to riches’ are nothing more than laughable comedies, akin to the cheap Bollywood movies! With billions of money from the banking system, (not only local banks), which are hardly repayable, again hocking the sheeple in massive debts, the Mafiosi State and its oligarchs systemically stifled sustainably oriented independent private sector development in the country. In the world shaped by Ethiopia’s ‘Mafiosi State’, wealth creation through hard work became a losing proposition, while celebrating criminal accumulation became all the rage! Again, there were and still are plenty of evidences to show the extent of the abuse employed by the reigning crony capitalism of the ‘Mafiosi State’; hence the insurrection!
These and many other problems associated with the previous EPRDF government, dominated as it were, by the Mafiosi State; need to be highlighted so that posterity will avoid similar pitfalls. What can we learn from the last three decades of mal-governance that led to unprecedented corruption and outright criminality in the country? How can redress be effected, particularly to those who gravely suffered from the preponderance of the Mafiosi State? To this end, we propose the setting up of a blue ribbon tribunal or a special prosecution to conduct, investigate and present findings in a transparent manner to a reinvigorated and specially formed supreme court! The main objectives of the tribunal are three folds. First: it is to make sure suspects whoever they might be, receive fair treatment and legal due process. It is also to avoid political scoring and the assignment of guilt by ethnic association. Second; the overwhelming and maliciously sophisticated nature of the mal-governance practiced in the past few decades warrants comprehensive and thorough investigation. That means, the exercise will involve many individuals, including members of the EPRDF and its leadership. This also means the tribunal/special prosecution must maintain sharp focus and absolute independence from the politicos, both past and present. Investigators must be allowed to dig dip, so that affiliated cronies residing in all the regions of the country and abroad are visibly exposed. In this regard, due attention must be given to accomplices operating outside of party structure, i.e., market operators and civil society actors. These collaborators should not be absolved a priori, just because they are/were not part of the decision making process. As the damage caused by these entities are immense with lingering effects, the investigation to be carried out must also be thorough, broad and comprehensive. Consequences of this malevolence have and will continue to dispossess the Ethiopian mass, mostly via debt repayment, misallocation of meager resources, etc. Thirdly, those who lost their lives, bodies, minds, resources, etc. must be compensated in as much as possible, by redirecting embezzled resources/wealth towards all rounded rehabilitation projects. This is what is called restorative justice.
To be sure, the whole objective of setting up the special prosecution is not vengeance. Therefore, whatever the ultimate verdicts are, and in however forms the sentences are carried out, the most important thing that should come out of the whole exercise, (at least as far as the country as a whole is concerned) is the invaluable lesson to be learned. It is hoped posterity will benefit from the outcomes of the tribunal and will avoid making the same stupid mistake again and again! Transparency is of the essence in this process, and it cannot be overemphasized enough. That is why we insist the tribunal must be composed of apolitical individuals from all major ethnic groupings, per force! They should have impeccable integrity; proven, not imagined! The only way to assure collective harmony in a highly diverse nation such as Ethiopia is to uphold the sanctity of justice. No amount of material wellbeing can bring about peace, equity and cohesion, if justice is gravely compromised
Integrated pest control flourishes the horticulture industry
The implantation of integrated pest management (IPM) and the use of biological (bio) agent control have significantly improved at the horticulture industry, while clear policy has been recommended.
The Ethiopian Horticulture Producer and Exporters Association (EHPEA) that is strongly working to improve its members agricultural practices disclosed that the number of farms that are aligned with IPM against the pesticide has increased.
“Bio-led IPM practitioners have increased in farm number area, diversity and volume of bios, and at the same time pesticides lead IPM is being decreased,” Waktole Sori, IPM Component Manager at EHPEA, said.
He said that maintaining occupational health and safety, management of environment issue, partnered with the community and market reputation and reliability are the key factors to expand the bio lead IPM in farms.
According Tewodros Zewdie, Executive Director, improving health and safety for workers at farm level and product safety guarantee, and minimizing environmental impact are some of the major reasons for focusing on biological control.
Before 2008 biological control was not seen on the sector but since then with different initiatives the scheme has expanded and it covers over 1605 hectares of land as per the 2018 data.
Waktole reminded that the concept of reducing the use of pesticide growing between the developers to sustain their operation and market, “the association has also provided intensive training, capacity building, experience sharing and promotes the modern activity for members to expand bio agent practice through IPM.”
Tewodros said that experts from local, the association and international source like prominent higher education and research centers are providing capacity building on the sector for farms.
The Executive Director explained that the association is also playing its part for registration and certification of farms, “it has also significantly supported the export since it is one of the factors to meet buyers’ criteria. In general it has good reputation for the industry.”
Waktole told Capital that the practice at the rift valley area is almost achieved and other farm clusters are also expanding the IPM.
According to Waktole, biodiversity of the country, market restrictions on pesticides types and residue level, potential expansion of market with growth of the sector in Ethiopia, and better product price with certification compared to pesticide produced products are the opportunity of bio use.
The influence and power of well established pesticides companies have been stated as a challenge. “The policy issue on IPM and lack of directives to use bio agent and stringent market restriction are also some challenges,” he added.
The IPM Component Manager recommended that the use of bio agents at commercial farms shall be expanded with more commitment from key sector actors. He added that relevant research centers and training facilities with policy guidelines and rules and regulations shall be emplaced to create clear path on the sector.
“I believe that the government is not working as per sector expectations. We know that the plant quarantine regulation that aligns with bio agent use has been drafted, but it is now three years and we are awaiting ratification,” he strongly claimed whilst he expressed his hope that it will be improved since a new regulatory body, Ethiopian Agriculture Authority is under establishment.
He added that a fully dedicated research and training centre is required for the sector, which is the second hard currency source after coffee.
On the occasion of the National Conference entitled as ‘past, present and future trends and patterns of biological control for export horticulture’ that was organized by EHPEA, Sileshi Getahun, Chief Consultant to Agriculture Investment and Input Supply at Ministry of Agriculture, said IPM has a solid aim with emphasis on increased use of biological solutions to combat the challenges posed to the sector by pests (insects, mite, and disease caused by pathogens).
“Biological pest control is the main pillars of IPM wherein natural enemies of the pests are deployed on the other hand minimize the use of pesticides, yet keeping the pest population density below Economic Threshold Level,” he added.
Tewodros said that over 36 water treatment plants have been built that recycle 53 million cubic meter water and over 58 million cubic meter of water treated. In addition to the regular sample collection and analysis undertaking, the national standards have also been developed.
Coca-Cola inaugurates Sebeta plant, new drink to follow
Aimed to unlock export opportunities, Coca Cola Beverage Africa plans to invest 100 million dollars in Ethiopia until the end of 2023 for expansion of its newly inaugurated Sebeta plant. Additionally, Coca Cola is planning to construct its 6th plant in Hawassa.
On Tuesday May 31, 2022, the Coca Cola bottling company inaugurated its fifth plant in Sebeta town with the presence of senior government officials and its management teams.
The plant is located on a 14.4 hectare plot of land in Sebeta town located near Addis Ababa and is said to enable the expansion in production of locally made beverage products.The construction of the Sebeta plant began in 2019 following the announcement of a 300 million investment over five years to expand the company’s operations in Ethiopia.
The new plant is said to unlock export opportunities, increase local production and ease foreign exchange constraints, in addition to allowing 500 employees to join the workforce. Completion of the bottling plant brings production capacity in Ethiopia to more than 100 million cases a year and is said to enable Coca-Cola Beverages Africa (CCBA) to integrate the production of inputs such as performance closure and other materials.
Commitment to increase investment was reaffirmed when the coca cola company chairman and CEO James Quincey visited Ethiopia in 2020.
“Through our growing range of products, we look forward to giving consumers more beverage options as well as enhancing industries like food and catering, and tourism in the country,” said Daryl Wilson, Managing Director CCBA in Ethiopia, indicating that Coca Cola has created strong business for more than six decades of investment.
The new plant is also said to enable the company to integrate the production of new products such as Minute Maid juice to Ethiopian market. The Minute Maid juice flavor line-up includes mango, orange, lemonade, berry, and apple.
Speaking during the inauguration ceremony, Melaku Alebel, Minister of Industry, said that the new plant demonstrates the company’s trust in the country and emphasized that the government’s is pulling in efforts to envisage a conducive environment to investors.
The company said in addition to meeting its own demand in the East African country, production of the input materials at the new plant is planned for the export market to generate foreign exchange and supply the local market to help resolve shortages in the sector.
Standard Bank’s comprehensive funding solution is said to have facilitated the opening of the new bottling plant in Ethiopia, which is set to bring further impetus to the growth of the country’s manufacturing capacity.
“Ethiopia is an economy with massive economic potential and long-term growth prospects,” said Taitu Wondwosen, Head of Standard Bank Representative Office, adding, “Through our strong sector and investment banking capabilities, as well as a geographic presence in 20 countries and intrinsic understanding of the continent, Standard Bank is well positioned to continue partnering with our clients such as CCBA to unlock expansion in critical sectors such as manufacturing.”
Ethiopia is one of CCBA’s largest and fastest growing markets across its footprint in 14 African countries, with five plants in Addis Ababa, Bahir Dar, Dire Dawa, Ambo (Ambo Mineral Water), and the latest being the Sebeta factory. With the addition of Sebeta, CCBA in Ethiopia has more than 3500 direct employees working in these factories with total production capacity exceeding 100 million cases a year. The first Coca Cola bottle was manufactured in 1959 in Addis Ababa in the Abinet area.
