Ethiopia is revising and improving laws enabling it to export value added coffee to African countries.
A two-day consultative forum dubbed “Africa Coffee Consumption and Market”: held in Addis Ababa, attracted six country representatives. The goal is to promote coffee consumption in African countries.
“Ethiopia’s value added coffee export is less than two percent and almost all export goes outside Africa, said Adunga Debela, Director-General of Ethiopian Coffee and Tea Authority adding that Ethiopia should work on improving its coffee export law for Africa countries.
Ethiopians are among the largest coffee consumers in Africa in which 53 percent of produced coffee is consumed locally and growing.
“This is against the government’s attempt to lower domestic coffee consumption in order to have more coffee beans for export” Adugna said.
“The increasing trend in coffee consumption in African countries and opening opportunities to trade within African countries will benefit coffee growing farmers and stabilize coffee prices,” said Denis Sedieu, chief economist at the international coffee organization (ICO).
According to the director, the Authority is working to expand its market access to African countries by value addition of its coffee bean.
There are a multiple challenges to coffee production in Ethiopia: dependency on rain fed agriculture, production by small land holders which is 95 percent, the need for improved seeds, improper tree management, the lack of price incentives for coffee producers, and the inability to use an irrigation system are the indicated bottle necks both in boosting quality and quantity.
Another problem comes from people tearing out coffee bushes and replacing them with chat plants because they produce more revenue than coffee.
Stabilizing the price of coffee by working on value addition and finding new coffee export destinations what the authority hopes will improve things.
Ethiopia’s coffee forecast for the year 2019/20 remains at a record level of four million bags (240,000 metric tones.)
Ethiopia has more than 400 coffee exporters, 395 coffee farmers who directly export coffee, and over30 import-export companies who export coffee and import other materials like vehicles and construction materials.
Ethiopia export coffee over 60 countries and based on the coffee export data 2017/18, the principal export market for Ethiopian coffee were Germany, Saudi Arabia, United States, Belgium, Sudan and Italy and registered a record of 917 million USD that makes Coffee the most important export for the country accounting for about 34 percent of the value of all exports.
Today, Ethiopia is the fifth largest coffee producers next to Brazil, Colombia, and Indonesia harvesting approximately 280,000 metric tons of coffee annually.
According to the Director-General, Ethiopia is still a major producing country of high-value coffee and the government is targeting African countries as alternative coffee export destinations as the price in global market fluctuates.
Ethiopia eyes exporting value added coffee to African countries
Taking Care
The private Amin General Hospital, has inaugurated its new modern general hospital building in Addis Ababa on July 7, 2019.
The new hospital cost 200 million birr and is located in Lideta sub city around the area commonly known as Coca Cola. It features modern technological equipment.
Amin General Hospital was established in March, 2012 G.C. Their goal is to provide modern, up to date and affordable health care services within the frame work of the national health policy.
Amin was inaugurated in the presence of high government officials, federal and the city health officials, well known personalities, medical directors of other hospitals and distinguished guests.
About 40% of Ethiopian tobacco market is illegal
Japan Tobacco International explained at the Economist’s Illicit Trade Summit held a week ago in Addis at Hyatt Regency Hotel that 40 percent of the tobacco sold in Ethiopia is illegal.
As the trade in illegal cigarettes has mushroomed in recent years with sophisticated distribution networks across all the provinces of Ethiopia, the sales of legal, regulated and taxed cigarettes have dropped continuously.
Fady Rahme, Corporate Development Vice President for Middle East, Africa and World Wide Duty Free for Japan Tobacco International explained that illegal trade in tobacco products has a negative impact.
“It is an enormous problem of a global scope, in Ethiopia, 40% of the total tobacco market is illegal. Not only does illegal tobacco rob the government of tax revenues, it is also linked to much larger organized crimes such as corruption, the trafficking of weapons, narcotics and people, and terrorists,” he said.
“Illegal trade can only be curbed if governments and industry work together. Tobacco control and fiscal measures should be proportionate so they do not undermine the fight against illegal tobacco.’’
Debele Kebat, Commissioner of the Ethiopian Customs Commission said “the large part of the Ethiopian border encompasses extensive lowland areas which cannot be controlled by customs and the Federal Police. As a result, smugglers can easily access and cross the border with a substantial amount of smuggled goods. Millions of birr worth illegal goods enter and leave the country annually via our borders.’’
“So all stakeholders such as law enforcement bodies and regional organizations, international organizations should help us to combat illicit tobacco trading,’’ he added.
Over the past five years, the annual turnover of the NTE has continually increased by an average of 190 million birr. It offers five brands: Nyala, Gissila, Elleni, Delight and Nyala Premium. The company currently employs close to 1,000 workers.
About 10 percent of the global tobacco market involves illicit trade. The reality, though, is that illicit tobacco trade occurs even more in countries where tobacco prices are low compared to those where prices are high. Experts argue tobacco smuggling is not so much due to high cigarette taxes and prices as it is due to the existence of organized criminals, poor control of smuggling, weak enforcement of anti-smuggling laws, and corruption.
City investigates 70,000 business licenses
Around 70,000 business licenses are being investigated throughout Addis Ababa by the City’s Trade Bureau. The month long investigation has focused on service providers, manufacturing companies, drug stores, restaurants, retail shops, importers and exporters. In two weeks a report will be filed with the results of the investigation. Ten Investigators looked at documents, competency, certificates and the type of business.
“Some companies introduce seductive offers, promising high earnings and get rich quick schemes. These claims are backed by forged documents and license certificates. People using these methods will have their licenses revoked. Government workers behind allowing illegal business will also be punished,” Kasshaun Beyene, who directs trade relations, said.
In many cases, these companies are fictitious entities, Kasshaun said, carrying out financial fraud, and reaching clients through telephone calls, text messages, e-mails, and social media.
“Our main goal is not to stop businesses, it is to let them operate legally. We have over 230,000 businesses operating in the city. We are looking at this sample size to determine the amount of fraud and to see if we need to add more investigators and open more cases. Businesses must have a trade license from the bureau to be legitimate.”
The 686/2014 proclamation requires businesses to re-register every year, within the first four months of the fiscal year, which begins on July 7. Failure to do so will lead to the expiration of the registration certificate.
However, businesses can renew their licenses all year long, albeit with penalties and the suspension of the license, after the first four months. The first two months after the deadline, businesses do not pay fines for renewals, although their licenses are suspended until they reregister. In the third month, there is fine of 2,500 Birr and 1,500 Birr for each subsequent month, until the end of the fiscal year. After this licenses are canceled.
Business license renewal, on the other hand, requires tax clearance and quality certification from the appropriate authority. Moreover, licenses cannot be renewed without a valid business registration certificate.
