Amhara region has introduced an initiative to construct over 800 oil retail outlets and 100 operational and medium strategic deport in the coming one year on the aim to improve the poor petroleum supply in the region.
Berhanu Taemalew, head of Trade and Market Development Bureau of Amhara, said that the existed dealers’ stations are very far from the growing demand of fuel in the region.
He said that the region had conducted a study that indicates the growing demand of petroleum in the coming five and ten year period.
Currently, the demand is growing drastically in the region in relation with the growing number of vehicles mainly three wheeler cars that expanded in to remote areas in the region. In addition the expansion of household farmers’ irrigation scheme and the increasing access of transportation on all rural areas and other reasons have contributed to the demand.
As per the growing demand the regional administration has introduced an initiative to expand the access to fuel in all Woredas and towns in the region.
“We have tried identifying the growing sector potentials in the coming five and ten years in alignment with what the regional government shall contribute as its targets to meet the growth and expansion of the sectors infrastructure,” Berhanu told Capital.
He reminded that the sector in general is managed by the central government but the regional administration should play its part on the expansion of infrastructure in the region.
Berhanu expressed that the private sector will be responsible in building the deport stations under the initiative dealers’ stations. The set deports include operational deports and medium strategic deports that are lower than the strategic deport that the federal government bears the responsibility of control.
Currently, there are 202 retail outlets in the region, while the operational are 167 stations. According to the Bureau head, the region has 200 woredas and towns but the existing stations only covered 40 percent of the region. “This is supposed to be improved,” he highlighted.
“Based on the plan, the stations are expected to be expanded to 1,000 or additional 800 stations will be constructed. Up to 100 operational depots will be established under the strategy,” he added.
The Bureau head said that the sector is strictly controlled by the government since the private sector interest to invest on the sector is limited because the return on investment may take time.
“To boost the private sector involvement the regional government has taken an attractive initiative on access to investment land,” he says, adding that, “To attract investors, the region will provide plots with initial lease rate.”
So far 217 investors have secured land for station projects and 10 operational depots are under constructions.
The initiative has considered addressing all woredas and towns in the region. Under the new initiative major cities like Bahir Dar, Gonder and Dessie would have additional 10 stations while zone towns will have additional 6 stations. As for woreda capital cities and city administrations, at least four stations will be available.
“The establishment of stations and deports have its own discipline but we will closely follow it under the task force that has been formed by different stakeholders including the region’s Urban Development Housing and Construction Bureau and other offices from top to bottom to finalize projects on time,” he explained.
He said that the region will give attention to the supply of required materials for the construction. “We estimate that the stations including additional 583 from the 800 new retail outlets will be finalized within a year time,” he elaborated.
According to him, the next step will be focusing on the supply side which will involve close working relations with Ministry of Trade and Industry, which is responsible for controlling the sector including the supply of petroleum.
The number of oil stations in Ethiopia is very small compared with the population and area. According to latest information from Petroleum and Petroleum Products Supply and Distribution Regulatory Authority, the number of retail outlets in the country is about 1,100.
Compared with countries that have very small number of population and area like Egypt, Kenya and Uganda it is very small. The stations in Egypt are 3, 450, 1,842 in Kenya and 1,545 in Uganda.
Amhara region bridges petroleum supply gap through new initiative
Propagating sustainable business across boarders
Veggies 4 Planet and People is funded by the IKEA Foundation to improve the income of youth and women through sustainable practices in the vegetable business. The project has been funded 6 million euros over 5 years in Ethiopia and Kenya. The program focuses on helping the women and youth farmers by linking them around big cities such as Addis Ababa, Nairobi and Kisumu. The project plans to connect the producers around urban cities, creating short linkages and supply chains to increase efficiency between growers and consumers; improve information flow; and boost trust between consumers and producers. Many consumers worry about the vegetables being grown with besmirched irrigated water or consuming pesticide residues that remain still after they’ve made their purchase. These fears deter the consumption of vegetables. The short supply chains allow consumers to know how their vegetables are grown and reassure them of their quality and safety.
The project targets 4000 youth and women in Ethiopia and Kenya with 1600 farmers in Ethiopia. The producers will be organized into what the project names “Vegetable Business Networks” which differ from the usual farmer groups as they consist of input suppliers, traders, processors, and retailers in a single network. There will be 80 of these networks in Ethiopia, organized as 1 or 2 networks per woreda. The project is targeting 9 million euros in increased profit annually.
The two major implementing partners currently involved in this project are the World Vegetable Center and SNV Netherlands Development Organization (SNV). The World Vegetable Center has overall coordination control of the program and will also be providing cutting-edge regenerative agricultural technologies in terms of integrated pest management, soil management, and water use. These technologies will also further serve to process and extend the shelf life of the vegetables. SNV’s main task is to fill the gaps in the value chain of the vegetable business networks. The pilot project has already
succeeded immensely leading to the donation of 20 more million euros by the Dutch government. SNV will also be focusing on building the vegetable business networks and their capacity. All the partners involved in this project have set out to help educate the farmers on how to use better technologies where the vegetable can be grown in safe and profitable ways.
The program perfectly aligns with current government policies with the appointment of a new state horticultural ministry which shows the government’s growing interest in the sector. Horticulture provides huge opportunities in export which in turn brings in foreign currency. It also immensely affects the local market for the better. The government is enabling the use of irrigation infrastructure and water sources closer to the vegetable farmers. These are challenges that the project needs addressing directly by the government and the government has not disappointed so far. Dereje Asamew,the representative on behalf of the Ministry of Agricultural Inputs and Output Marketing Sector, stated that the government has already created a road map concerning the horticultural sector for the next decade. The government is also planning to construct cold chain stores for the preservation of the product and to assimilate the produce with the agro-industry as a regular contributor. The other goal the government is putting its hopes on is the provision of various seeds for farmers through this project.
The project is planned to expand in the Shewa zone, Wolisso, Welmera and Ejera districts. These areas consist of farmers who have been trained and qualified by a previous initiative. The farmers have the basic skills of growing vegetables and the usage of sustainable agricultural practices. After the development of more improved technologies, the program is set to expand to other areas including the rift valley such as Batu (Zeway), Koka, and Hawassa. The project aims to break that cycle and show them alternative ways of growing vegetables using fewer pesticides and more sustainable substitutes.
The most common product is tomato processed into a paste or can be packed dried like red pepper. Leafy vegetables can similarly be dried and reconstituted by soaking in water or cooking. These methods are already practiced in Ethiopia in traditional ways and the project aims to adapt this and modernize the process. The project has recipes particularly prepared for vegetables that it plans to promote through social media and the aid of the Ministry of Health, Ministry of Education and Ministry of Agriculture.
This project aims on giving the youth jobs that are in their interests and aspirations which is quite a modern way of offering opportunities. Social media will be serving as the source of information so more farmers could learn continuously. The sustainability of the project not only depends on people’s sustainability but also on planet sustainability. Regenerative agriculture technologies will increase soil health through building organic matter. Pest and disease management without chemicals and using biopesticides and natural pesticides that are easily available and can be personally produced at low cost will ensure the longevity of the improved horticultural practices.
The construction pivot in Africa amid pandemic
“A vibrant construction sector is an indisputable driver of GDP growth in a country,” said Bartholomew Armah, Director of Macroeconomics and Governance at the Economic Commission for Africa (ECA).
He was speaking during a ministerial webinar organized on 23 February to present African member States with the latest in a series of quarterly briefings to Ministers of Finance by the ECA Price Watch Centre for Africa, which focused on ‘Price Evolution in the Construction Sector.’
“Construction is a key lever in infrastructure development and plays a crucial role in an economy, providing essential structures including public and private infrastructure, and housing,” said Armah who also cited Ethiopia, Angola, and Tanzania as amongst the top countries where construction contributed significantly to GDP in 2019.
He noted, however, that the sector has been severely impacted by COVID-19, resulting in a 45% loss in economic activity in 2020.
In the same vein, the director of the Africa Centre for Statistics at the ECA, Oliver Chinganya deplored the fact that, “Construction prices have increased in many countries, threatening the affordability of decent housing, and becoming a heavy load for infrastructure development. This is triggered, largely, by the lockdown measures institutes by governments.”
According to the report, the average price increase in most African countries is higher than 3% annually. This could be attributed to a number of factors that vary from country to country such as exchange rate, high import taxes, and prices in other sectors.
Chinganya noted that with the halting of construction projects due to COVID-19, “construction workers have become jobless” thereby adding to existing burden of unemployment and poverty in many countries.
The report notes that construction grew more (over 5% yearly) in fastest growing economies such as Ethiopia, Mali, Djibouti, Rwanda, Côte d’Ivoire, Tanzania, Senegal, and Togo. Countries with more moderate growth such as Niger, Benin, Kenya, Uganda, Gambia, Guinea-Bissau, Egypt, Cabo Verde, DRC, Cameroon, and Madagascar also recorded strong annual growth of 3-5% in the construction industry.
The study recommends that countries should prioritize investments in the construction sector, given its potential to significantly drive economic growth without necessarily equating to inflation. Countries are also urged to develop infrastructure methods and materials that are environmentally friendly while prioritizing the use of local materials and green building practices.
Armah pointed out that, analyses for the Construction Price levels were done mainly with use of the “deflator of gross value added as an indication of price level.” This is because very few countries in Africa conduct comprehensive economic surveys or surveys on cost of building materials or construction.
In a media briefing held earlier on 22 February to present the report to the press, Chinganya made a clarion call for countries to invest in data collection. “Data is key. We cannot do this without the full collaboration of our member states,” he said.
The ECA Price Watch Centre for Africa is a reference on latest price developments on the continent, offering decision-makers in Africa a unique view of most recent price developments in country, sub-regional and at continental level, in support of short to medium-term economic governance, and long term sustainable development planning.
The next Price Watch discussion will focus on energy pricing. ECA has embarked on activities to fortify its collaboration with national statistics offices and research institutions to enhance data collection and analyses.
Arbaminch crocodile ranch expands its sanctuary
Arba Minch Crocodile Ranch (AMCR) is set to expand its hub to a zoo by adding more animals including python snakes and civets.
The ranch that has been in service for over three decade was damaged by flood about 15 years ago and has since then relocated 7km from Arba Minch town, 444 km south of Addis Ababa in SNNP.
Wondimu Abate, Office Coordinator of AMCR, said that the facility mainly formed for conservation of the reptile is undertaking a study by the support of Arba Minch University to improve its service.
He said that currently the ranch is providing touristic services; however it was exporting the Nile crocodile skin almost two decades ago and has since then halted that operation.
Wondimu told Capital that the crocodile conservation center that was established 500 meter from the offshore of Lake Abaya relocated about 14 years ago and retreated 1.5 km to the land and 7 km from the town since the original location was smashed by the El Niño flood that occurred in 2007.
The current AMCR has eight hectares of land worth of compound and thus presents a potential to add further services.
Under the new initiative, python fences will be constructed, while, civet, fishery production centre, ostrich farm and aquarium will be established besides expanding the green area.
The ranch head said that the fishery production will have further support for the ranch that shall be a source of food for the crocodiles.
“Based on the new plan the ranch will be transformed to a zoo that will enable the facility to get more revenue by attracting more tourists,” he says, adding that, “It will help to keep the capacity to cover its cost by its self.”
“Currently, we have budget constrain to maintain our operation,” he explained. The ranch that has 35 permanent staff is administered by SNNP Culture, Tourism and Sport Bureau.
He said that the crocodile conservation center has 2, 600 at its stock that needs over a million birr to provide feeds, while salary is also the other cost, “In order to maintain our cost, we have been finalizing our business management plan for the coming year, which considered expanding further revenue sources.”
He explained that one of the tourist destinations in Arba Minch and the area is the ranch that shall generate more revenue if it improves its services.
According to the plan nongovernmental funding would be a potential for the new development.
The crocodile conservation center head said that the Hailemariam and Roman Foundation are working to support the endangered Netch Sar National Park that is located around the town of Arba Minch. The foundation has also promised to support the ranch on the initiative to add more touristic attractions at the conservation centre.
“If we have additional attraction, the tourist visiting time and number will increase that will help to improve the revenue stream,” Wondimu said.
In 1983 Ministry of Agriculture, under agreement with the Food and Agriculture Organization (FAO), established a crocodile management program based upon ranching, with a particular focus at Lake Chamo. As part of this program the government built, equipped, and staffed a crocodile farm at Arba Minch near Lake Chamo, on the shores of Lake Abaya. The first Nile crocodile hatching were introduced into the farm in 1985.
The conservation was established by the initiative of international crocodile researchers on the aim to mitigate the illegal killings of crocodiles globally. Meanwhile it was mainly formed for conversation it and had also been engaged in the crocodile skin business. Tourism is also another business for the hub.
Wondimu explained that COVID 19 had affected the revenue of AMCR, “Meanwhile AMCR was not affected on its skin sales because we have not been selling for over two decades now.”
“The information indicated that since 2000 the skin sale has been limited on research purpose and promotion. If we get a market we have over 3,600 crocodile’s skin at the stock, and we have 1,000 crocodiles available for slaughter,” he explained.
Crocodile that are three to four year of age are fully grown for slaughter and its skin is ready for market, “Feeding crocodiles more than four years of age is not feasible so we slaughter and stock the skin at Addis Ababa on Leather Industries Development Institute,” AMCR head explained and said that the ranch has a potential to supply up to 2,000 skin per annum if the market is available.
The skin market has degraded in the past couple decades which has impacted AMCR which was projected to sale up to 2,000 skins per annum as per the original plan of its formation and its price determined according to belly width. A centimeter of the skin might be tagged up to USD 5.
The skin trade should also be improved to generate revenue for the sector. He recommended the trading based on negotiation than the current bid scheme.
Wondium said that in the new study, there is a consideration to cooperate with the private sector to engage on the skin business. Under the new plan, private leather sector investors may be involved locally which will bring value addition besides assessing the market.
The reptile meat market on matters sales has not yet had progress however there are negotiations with some foreign buyers but it is not yet sealed.
