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Govt’ to give more time for private telecom operators

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The privatization process of the telecom sector to allow new operators will be pushed as per the request of interested buyers.

Eyob Tekalegn, State Minister of Finance, said that some actors that are interested to be engaged on the telecom industry claimed that the time line is very short.

“In different public consultations interested actors frequently insisted to reschedule the timeline to get more time for preparation,” he added.

He said that the relevant body Ethiopian Communications Authority (ECA), who manages the consultations, is expected to come up with new timeline.

A public consultation is being conducted to obtain feedback for the licensing framework.

Interested operators expressed their concern that more time is needed for mobilizing the finance and to become active competitor on the upcoming privatization bidding process.

The government has disclosed that two operators will be identified by April 2020.

Eyob told Capital that the opening up of the sector will depend on by the decision of ECA. Capital’s effort to get further information from Balcha Reba, Director General of ECA, was unfruitful.

In another news, in his latest press conference on Friday January 17 Eyob told the media that the draft proclamation of the popular excise tax revised three areas.

He said that based on the consultation and discussion with public and representatives of the parliament some of the levies are revised.

“I hope with this new revision the parliament would pass the proclamation in the coming few weeks,” he said.

According to the new revision, the excise tax for brand new cars that are less than 1300 CC would be slashed to 5 percent from the current 30 percent.

At the same time bottled water excise tax is also revised to 10 percent from the drafted 15 percent. Currently the excise tax on bottled water is 20 percent.

At the same time the excise tax rate for cigarette is revised after the consultation and increased the rate.

The draft proclamation revised to 30 percent plus five birr per pack of cigarette.  With the new revision it increased to 30 percent plus six birr per pack.

Economic growth expected for Ethiopia says UN

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A report made by the United Nations’ Department of Economic and Social Affairs predicted that Ethiopia’s economic growth looks promising in the coming two years. The 2020 report titled ‘The World Economic Situation and Prospects’ serves as a tool that explores and explains global economic trends and transitions of the given year. The annual report was released on Thursday, January 16th 2020.

Zooming into Ethiopia, the report showed that economic growth for the East African country is predicted to surpass 7.0% in 2020 and 2021 due to an increase in “private investment, robust public investment and growing business confidence.” On the other hand, setbacks in Ethiopia’s economic growth include a low level of foreign reserves and currency shortages. High levels of debt and an elevated current account deficit are also contributing factors.

While a slight hike in worldwide economic activity is predicted for 2020, the overarching theme of the report showed that global economic development has been monotonous with a decline seen in most parts of the world.

The global economy endured its lowest growth in a decade at 2.3 percent in 2019, at the cornerstone of this decline are continuing global trade disputes, the report stated. 2020 could see growth of 2.5 percent if risks are curtailed, alternatively, the opposite end of that scenario could bring forth a decline to 1.8 percent in 2020.  According to the report, the overall decline is a result of several roadblocks, namely trade disputes, policy uncertainty, geopolitical tensions, the climate crisis, food insecurity and poverty.

“These risks could inflict severe and long-lasting damage on development prospects. They also threaten to encourage a further rise in inward-looking policies, at a point when global cooperation is paramount,” said UN Secretary-General António Guterres in the report.

A magnified look into Africa showed that while GDP growth has seen a slight increase, it does not meet the development needs of most sub regions. Mirroring the insufficient progress is the GDP per capita, which has remained stagnant over the last decade, the report stated.  Extreme poverty continues to be the Achilles heel of African countries as the Democratic Republic of Congo, Ethiopia and Nigeria sit among the five countries in world with largest populations living in poverty. Eradicating this issue calls for a “substantial acceleration in economic growth” the report further stated.

The glimmer of hope for Africa is found in East and North Africa with both sub regions showing signs of improvement and growth, the former being the fastest growing sub region in the content. The Horn of Africa’s recent peace deal signed between Ethiopia, Eritrea, Djibouti and Somalia is one of the contributing factors to East Africa’s rise. The deal is said to open the door for new investment, trade and business promotions.

Consistently in the lead are countries in East Asia, as the region remains the world’s fastest growing region. The United States is experiencing a lull as GDP is predicted to decrease from 2.2 percent in 2019 to 1.7 percent in 2020. The European Union will see a “modest growth in GDP from 1.4% in 2019 to 1.6% in 2020.”

“Amid growing discontent over a lack of inclusive growth, calls for change are widespread across the globe. Much greater attention needs to be paid to the distributional and environmental implications of policy measures,” said Elliott Harris, UN Chief Economist and Assistant Secretary-General for Economic Development.

The report concluded that 1 in 5 countries will see a stagnation or decline as a result of the aforementioned setbacks for economic growth.

Growing locust infestation poses serious threat to food security

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A severe outbreak of desert locusts is wreaking havoc in Ethiopia, posing a threat to rural food security. The epidemic has travelled throughout East Africa, destroying crops and pastures in Ethiopia, Somalia, parts of Sudan, Eritrea and Northern Kenya. According to the UN’s Food and Agricultural Organization (FAO) this outbreak is the “worst situation in 25 years”.
A report by the Intergovernmental Authority on Development (IGAD) stated that eastern Ethiopia has been severely affected by this outbreak. The highest concentration of locust in Ethiopia is found in the country’s southeast region, with the likelihood of travelling southwest towards the Kenyan border and the Great Rift Valley. These conditions are predicted to persist until June due to the “favorable ecological conditions for locust breeding”. Affected countries are being urged to take immediate action and control the infestation.
“Prevention and control measures must be scaled up to contain further spread of the Desert Locust. Countries must act urgently to avoid a food security crisis in the region” said Workneh Gebeyehu, IGAD’s Executive Secretary.
According to the report, in a day, an average swarm can destroy enough food crops to feed 2,500 people. Journeying with the wind, swarms can cover 100 to 150 kilometers in one day; a single swarm can consist of 150 million locusts per square kilometer.
“‘The locust is making the bad food security situation worse in the sub-region, exacerbating the existing dire food insecurity and malnutrition in the sub-region,” said David Phiri, FAO Sub regional Coordinator for the Eastern and Representative of the African Union and the United Nations Economic Commission for Africa.
The affected areas continue to grow with IGAD reporting that the swarm is likely to appear in northeast Uganda and southeast Sudan. Of the nearly dozen existing locust species, the desert locus is the most dangerous. According to IGAD’s report, they span 16 million square meters across twenty countries between West Africa and India.
The impact of these pests goes beyond agricultural devastations, on the 9th of January 2020, an Ethiopian Airlines B737-700 flight from Djibouti to Dire Dawa was forced to land in Addis Ababa after the plane’s engines, windshield and nose were bombarded by a swarm of locusts.
The recommendations made by IGAD to curtail this plague include increased ground surveillance for early detection, increased use of wind forecasts, aggressive targeted aerial and ground spraying, immediate mapping of current invasion and forest trajectory and the use of local radio to educate citizens on early detection and encourage them to report any incidences. As this eruption is a serious threat to crops, immediate survey and control operations must be taken, the report stated.

Lycée Guebre-Mariam high school students take a peek into the professional world

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Ruth Brook

Ethiopia’s French international school, Lycée Guebre-Mariam, bridged the gap between students and professionals at their annual career fair this past Wednesday, on the 15th of January 2020.

Held on the vast campus in the heart of Addis Ababa, the event was organized outdoors on the school’s stadium, with each professional under a tent waiting for the influx of students and their queries. The career fair is part of an Orientation Course organized by the school for students from grades 9 to 12. The intention is to prepare them for the pursuit of their post-baccalaureate studies and for their future careers. Students were encouraged to approach professionals and inquire about their fields of interest; they were also supplied with a printed list of questions.

“We didn’t want to give the students all the information; we want them to come and ask to have the information, it’s very important that the students can move around,” said Coralie Alexandrenne, a teacher at Lycée and one of the event organizers.

63 participating professionals from 16 different departments received almost 400 students throughout the day. The departments represented were Information Technology, Journalism, Art and Design, Tourism and Hotel industry, Medicine, Teaching, Communications, Sport, Human Rights, The Army and Defense, Commerce, Business, Engineering and Aeronautics, Architecture and Diplomacy.

“In two years we have to choose which university we are going to go to. So meeting professionals, meeting people that have gone through these fields and have these experiences and listening to them speak, guides us if we are unsure,” said Amran Teferi, a grade 10 student at Lycée Guebre-Mariam.

“It gives us a path to our future,” reiterated Markeza Daniel, fellow grade 10 student.

In previous years, the career fair was held indoors under a different format, professionals were assigned classrooms and students were given a timetable indicating which classroom to attend and the time they should do so. This year’s makeover was in part due to the student’s feedback, students wanted the freedom to choose which vocations they would visit. The new informal setting allowed students to do exactly that and gave a noticeable atmosphere of ease, said Coralie.

“I have been doing this event for the last five years,” said Gizeshwork Tessema one of the professionals participating in the career fair and a parent to a Lycée student. As an entrepreneur, Gizeshwork said she received a lot of questions on how she got to where she is in her career.

“The kids really want direction in deciding which field to choose. I am an entrepreneur and I noticed that they really wanted to know the ins and outs of this career,” she continued.

The fair took up the entire Wednesday afternoon, from 1pm to 5pm, with students swarming to and from tents with their notepads and pens. One tent which saw a perpetual swarm of students throughout the day was the Aeronautics tent, with first officers from Ethiopian Airlines present in their uniform, ready to answer questions.

“This event is really beneficial, I wish we could have had this kind of experience when we were students,” said Ethiopian Airlines First Officer Efrem.  

Along with questions on how he chose this career path and the required subjects to pursue a career in aeronautics, he was surprised to learn that the majority of students were curious about salaries.

The career fair is one of the many efforts made by the staff and school board to prepare their high school students for their professional future. Students in the 9th grade are afforded the opportunity to take a one week internship at a professional institute to provide them with work experience. Furthermore, 10th grade students are given the chance to visit universities in Paris to give them an idea of the university experience, Coralie explained.

“It’s very important to us that the students are active in what they are doing in the future.”