Vol. XXII No. 1117|February 3, 2018 ADDIS ABABA, …archive.thereporterethiopia.com/sites/default/files/Pdf Archive... · Kaleyesus Bekele Yonas Abiye ... Endalkachew Yimam Presently

Vol. XXII No. 1117|February 3, 2018 ADDIS ABABA, ETHIOPIA www.thereporterethiopia.com Price 5.00 Birr

Whereabouts of ... page 38

Drone regulation ... page 36Communication ... page 38

By Yonas Abiye

In a shocking revelation, the Minister of Women and Children Affairs told members of the House of People’s Representatives (HPR) on Thursday that the where about of 2,273 children, adopted before 2014/15, is yet to be identified as the Ministry is digging deep to improve data on the thousands of Ethiopian children adopted by westerners over the years.

The Ministry’s efforts to improve its information on adoption started after a previous discussion in the House regarding the wellbeing of children who are adopted from Ethiopia every year. The discussion includes quality of information about the adopted children particularly their whereabouts.

Demitu Hambissa, minister of Women and Children Affairs, was question by MPs

on Thursday regarding the improvement her ministry has made concerning the data of adopted children from Ethiopia.

In her report, the minster explained that in the past six months over 5,062 adoption files were recovered but indicated that still serious work remains to be done to recover the remaining thousands of files and essential data of children adopted mostly by westerners.

Nevertheless, Demitu’s six-

month performance report incorporated a wide-range of activities carried out by her ministry in the timeframe. Among other things women empowerment, education, violence against women, gender parity, abuse of children, vulnerable children such as street children were among the issues covered by Demitu’s report.

Whereabouts of over 2,000 adopted children unknown

By Kaleyesus Bekele

The Ethiopian Civil Aviation Authority (ECAA) on Thursday disclosed that it is drafting a drone regulation that enables it to license drones and control its operation.

Briefing reporters about the current activities of the authority director-general Wossenyeleh Hunegnaw (Col.) said that there are has been

Drone regulation under formulationNational aviation policy to be revised

By Brook Abdu and

Zemenu Tenagne

At a time when the country is being rocked by antigovernment protests and violence, the Government of Ethiopia, in an unusual break from its trend, admitted that it is grappling with a massive communications crisis to the extent that most of the problems propagating in the country are mainly attributed to serious communication breakdown between the government and the public.

In his press conference held on Friday February 2, 2018, the minister of Government Communications Affairs Office (GCAO), Negeri Lencho (PhD), told journalists that the

COMMUNICATION BREAKDOWN

Some 500 children have

found homes in Ethiopia

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2| The Reporter, February 3, 2018 Vol. XXII No. 1117EDITORIAL

Published weekly by Media & Communications Center

Address: Bole Sub City, Kebele 03, H. No. 2347

Tel: 011 6 616180 Editorial011 6 616185 Reception 011 6 616187 Finance

Fax: 011 6 616189PO Box:7023

0910 885206 Marketing E-mail: [email protected]

Website: www.thereporterethiopia.com

General Manager Amare Aregawi Managing EditorBruh YihunbelayEditor-in-Chief Asrat Seyoum

Sub city: N.lafto, K. 10/18, H.No. 614Senior Editors

Dibaba AmensisaWagaye Berhanu

EditorsKaleyesus Bekele

Yonas AbiyeAssistant Editor

Senior ReportersSamuel Getachew Dawit Endeshaw

Reporter

Dawit Tolesa

Columnists

Leyou Tameru

Tsion Taye

Chief Graphic Designer

Yibekal Getahun

Senior Graphic Designer

Sofoniyas Tadesse

Dagmawi Gobena

Graphic Designers

Tsehay Tadesse

Fasika Balcha

Semenh Sisay

Netsanet Yacob

Head of PhotographyNahom TesfayePhotographers

Tamrat GetachewMesfen Solomon

Daniel GetachewOnline EditorBrook AbduCartoonistElias Areda

Fasil W/giorgis Marketing Manager

Endalkachew Yimam

Presently the rank of elements working hard at destabilizing Ethiopia and subjecting its people to an inextricable political crisis is swelling. At a time the country’s historical enemies are exploiting directly or otherwise geopolitical tensions in the region these elements are bent on destroying its reputation as an oasis of political stability oblivious to the implications down the line. The blood of innocent citizens continues to be spilt due to the inability of the ruling Ethiopian Peoples” Revolutionary Democratic Front (EPRDF) to put a decisive end to the unrest that has been rocking the nation for over two years. Areas which have been relatively peaceful are turning into conflict zones. The EPRDF is proceeding at glacial pace in introducing the reforms it had pledged to undertake in response to the demands made by the public. This not only exacerbates the prevailing sense of insecurity, but also has grave ramifications for the very survival of the country and its people. The consequences are bound to be calamitous if the situation does not improve.

The EPRDF alone cannot overcome the plethora of challenges confronting Ethiopia. Nothing can be accomplished without the invaluable contribution of those who feel they are invested in the fate of their fellow citizens. The solution to addressing the root causes behind the current turmoil lies in engaging in genuine dialogues aimed at forging national consensus. It’s imperative to go the necessary distance as well as to conduct negotiations in the spirit of give and take for the sake of national unity and welfare of the public. This holds particularly true in view of the fact that Ethiopia’s political landscape is afflicted by a race to the bottom. Some of the critical reform measures which need to be taken include guaranteeing the unencumbered exercise of such fundamental rights as freedom of expression, upholding the rule of law, putting in place a mechanism ensuring a fair sharing of the national pie and an equitable allocation of political power, and facilitating conditions for free and fair elections. Agreeing on a broad set of principles on these issues would go a long way to restoring stability and rebuilding confidence.

The resurgent conflict has been playing out across different localities in the North Wollo Zone of the Amhara region for over a fortnight now. Characterized by attacks targeting a specific ethnic group and curtailing freedom of movement the

clashes jeopardize the future of Ethiopia and threaten to unravel the solidarity of its people built over centuries. How can progress be made on any front while in the midst of a seemingly endless strife that may well bring about a breakdown in law and order? What explains the recurrence of conflicts even after the EPRDF vowed to renew itself profoundly and meet the basic demands of the public? It would be irresponsible for anyone who professes to love Ethiopia to do everything in their power to pull it back from the precipice lest it joins the club of failed states.

As we always say the blame cannot be laid at the door of ordinary people. After all generation after generation of Ethiopians have been coexisting in harmony for eons. This magnificent tradition was on display in the areas affected by conflicts where residents provided refuge and succor to victims. The problem has always been politicians from both the ruling and opposition parties and self-appointed amateur political activists. Aside from contributing its share to the political crisis by flouting the constitution the EPRDF’s open hostility towards its adversaries, coupled with constant infighting, has exacted and continues

to exact a heavy toll on Ethiopia and its populace. To make matters worse certain forces within it which have an axe to grind are adding fuel to the fire in order to advance their evil agenda. What is it waiting for? Why is it not doing something tangible? The public deserves an answer.

On their part some short-sighted forces arrayed in the opposition camp are, be it overtly or through proxies, stoking violence. Instead of developing policy options on how to govern Ethiopia were they to assume power they are consumed with vanquishing the EPRDF—their sworn “enemy”— and have no governing philosophy to speak of. They are intolerant of and excoriate anyone who opposes or does not support them; they foment an extremist agenda and are guilty of practicing the politics of hatred and exclusion that they accuse the EPRDF of; they neither brook resistance nor are willing to heed public opinion; multi-party democracy, freedom of expression, institution building and similar other concepts on which a democratic system is founded are anathema to them. The sad state of Ethiopian politics is also attributable to such immaturity.

Ethiopia finds itself at a critical juncture in its history when peace, stability and democracy are more than ever before a matter of life and death for its people. If these ideals to be realized it is of the essence to forge national consensus. Should all stakeholders exhibit commonsense and commit themselves to a civilized and dialogue underpinned by mutual respect and adherence to the principles of negotiation, political dividends will be manifold including fulfilling the needs of the public in their order of priority as well as closing off the gaps Ethiopia’s historical enemies exploit to provoke political instability. Failure to undertake measures aimed at accomplishing these lofty goals will render the country vulnerable to the machinations of its foes and even endanger the ruling party’s stay in office. This could result in the unconstitutional assumption of state power. All this is a recipe for mutually assured destruction. That is why it is of the utmost importance to be mindful of the fact that destroying peace is liable to engender dire consequences. It is an act history shall never forgive!

Destroying peace engenders dire consequences!

HEADLINES


The Reporter, February 3, 2018 Vol. XXII No. 1117 |3

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The Reporter, February 3, 2018 Vol. XXII No. 1117

LIVING AND THE ARTS

The narrative of Ethiopia is changing

having graduated its once doomed

economy to one that is worthy of

recognition. According to the World

Bank 2018 forecast, the nation is East

Africa’s fastest growing economy. While

this remains a humbling milestone

and something to behold, what has not

tickled down is on millions of people

who are displaced around the country

for a variety of reasons.

The experience of Ethiopia is not unique

across the region and it follows a uniform

like occurrences that are experienced

by many people in the horn of Africa.

The latest pressing conflict between

Ethiopian Somalis and Oromos has also

affected many people. The two ethnic

groups seem to compete for internal

border that they have used as grazing

land and as a means of survival.

While the causes of the conflicts of

Ethiopia are an open debate, it is having

real impact on the ground even though

conflicts in Ethiopia are generational.

In Medda Wolabu district within the

Bale Zone in South-East Ethiopia about

500km south of the capital, inside the

Oromia Regional State, there are now

thousands of people displaced and

living with the support of charities or

charitable organizations as well as the

government because of what has become

The Government of Ethiopia, together

with development partners is saying that

rehabilitating citizens displaced due to

of Oromia and Ethiopian Somali regional

states is progressing. And one of these areas is

in Medda Wolabu, reports Samuel Getachew.

Harsh realities ... page 19

Phot

o By

: The

Rep

orte

r /D

anie

l Get

ache

w

Harsh

realities

for IDPs

www.thereporterethiopia.erethiopia.

16| LIVING AND THE


14|


INTERVIEW

THE 4TH GENERATION

ENTREPRENEUR

Described as one of the people who “represent the part of Ethiopian life

where dynamism, creativity and an adventurous spirit are allowed to

thrive, by BBC” Harsh Kothari of Mohan Group of companies is a

passionate entrepreneur and charity advocate. Though born in India,

he was raised in Ethiopia and spent more of his formative years in

Samuel Getachew

on Mohan, the status of the dwindling Indian community of Ethiopia,

on charity and gives advice to young people as well as the diasporas

who want to follow in his footsteps. Excerpts:

Phot

o By

: The

Rep

orte

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anie

l Get

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14| INTERVIEW


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IN-DEPTH

Africa is home to 12 percent of the world’s

population but it accounts for only three

percent of the global air service market. Since

other transport infrastructure like road and

railway network is not well developed, air

transport was supposed to play a crucial role

in connecting African countries and spurring

economic development. By building only three

kilometers of runway Africans can travel

thousands of miles in Africa and the rest of the

world.

However, African countries are not well

interconnected by air. Neither are they

economically well integrated. Intra Africa

trade stands at only 15 percent. Air fares

are relatively expensive due to high airlines

operational cost that stem from exorbitant

airport fees, taxes and fuel price among other

things.

African air transport market is restricted by

protectionist bilateral air service agreements

commonly called BASA. On some routes few

airlines dominate the skies due the restrictive

BASAs and this makes air fares more

expensive.

Though the Organization of African Unity

(OAU) and the African Union (AU) have been

tirelessly working on promoting African

economic integration, the African air transport

market is still fragmented. African countries

deny traffic right for African airlines but allow

non-African carriers to freely operate in the

continent.

Due to the restrictive BASAs home grown

African airlines carriers cannot freely fly from

one African country to another. Those who

have the traffic right still beg civil aviation

authorities to increase flight frequencies.

According to a World Bank Report titled “Open

Skies for Africa” part of the reason for Africa’s

under-served status, is that many African

countries restrict their air services markets

to protect the share held by state-owned air

carriers.

Ethiopian Airlines Group CEO Tewolde

Gebremariam said that the AU and its

predecessor have been working very hard for

the economic integration of Africa but despite

all the efforts intra Africa trade is only 15

percent of the total trade volume. “Compared

Kaleyesus Bekele.

THE DILEMMA OF

OPENING AFRICAN SKIES

Though the Organization of African Unity (OAU) and the African Union (AU) have been

tirelessly working on promoting African economic integration, the African air transport

market is still fragmented.

internal

grazing

.

nflicts of

t is having

ven though

erational.

within the

thiopia about

al, inside the

there are now

displaced and

of charities or

s as well as the

what has become

s w.

alities ... page 19



|25SOCIETY

By Jane Wharton

A huge smile lights up Aberu Hirpa’s

face as she drinks clean water from a new

village spring.

For the eight-year-old, the few drops offer

a revolutionary change to her life.

However, they are also symbolic of a new

era for Ethiopia and the plan to bring

urbanization to the countryside.

Aberu lives just outside Babich, one of

8,000 new towns the government hopes to

create to cater for the population boom.

As well as improved schools, roads and

health facilities, the town in Oromia

Regional State is benefiting from a new

water project.

Before, the 12,300 town residents had to

wait for hours in a line for water from the

single 50-year-old spring.

Women and children in the surrounding

hills had to walk for up to five hours a day

to fill their heavy jerrycans with polluted

water from rivers and puddles.

Cholera, dysentery and other waterborne

illness were rife and death not uncommon

in the region.

Now, however, the charity Water Aid has

nearly completed its ambitious three-

year-project which will bring almost

20 liters of fresh water into the area per

second.

Water engineer Afework Tadesse said:

“Water is life. To live a healthy and good

life you need water. Without access to

water, times are very difficult.

“Without a good supply, people are not

healthy because of the diseases they get

from dirty water. They waste a lot of time

walking to get or waiting for water and

very often this causes children to miss

school.

“Ethiopia has enough water for our

population and we have the technology to

deliver water to people. We just need to

deliver it and manage it better.”

Currently, the

population of Ethiopia

is well over 100 million

and is growing at a rate of

one person every 12 seconds.

It is currently the 14th most

populous country in the world and

the second in Africa, behind Nigeria.

Ethiopia has a population growth rate

of 3.02 percent per year. According to the

UN, if it follows its current rate of growth,

the population will double in the next

generation, hitting 210 million by 2060.

The population of Addis Ababa is

expected to double to over eight million

in the next decade and an additional half

a million homes are now needed.

Efforts to expand the capital resulted in

widespread protests following concerns

the masterplan expansion was a threat to

Oromo farmers.

Therefore, the nation has now adopted a

rural to urban transformation plan with

the hope of transforming any town with

more than 2,000 people.

One hour from Ambo, Babich is one such

town benefiting from this urbanization.

Over the last few years, the population

has hit 12,300 and with an annual growth

rate of 4.6 percent it is likely to double in

about 16 years.

Before Water Aid came, the only source

of water was one spring made by an NGO

five decades ago.

As part of the 42million birr Toke-Kutaye

Woreda and Babich Town WASH project,

Water Aid has made a series of springs

and wells to collect groundwater for the

area.

The town is served by water from a

123-meter deep well and six springs.

The water is fed through a series of

underground pipes and ends up at a

reservoir in Babich, which holds 300,000

liters.

This water goes to the Health Centre,

toilets at six schools and all the homes in

the town. There is also a public toilet and

shower block, which will collect human

waste. When this organic matter breaks

down during anaerobic digestion, it

produces biogas. This will be used as fuel

to cook and power a new restaurant.

On the outskirts of town, a further 400

households in the rural areas are helped.

They have six new springs and, by the

time the project is completed next month,

the water will flow to 20 collection points

in the hills and fields.

In total the project uses around 40km of

underground pipes, providing 19.4 liters

of water per second and with enough

spare capacity for the town to double.

Aberu is one of the lucky children who

is now using the fresh water at one of the

rural collection points. Instead of walking

for hours, she just has a ten-minute walk

from home to the nearest filling station.

After she has filled her two small

jerrycans, she carries them up a hill and

back home through the teff fields to her

parents and seven older siblings.

She said: “I fetch water two or three times

a day and I would sometimes miss school

because I was late for class. The water

also wasn’t clean. I have never been ill

Water for

advancement

Water for... page 28

Ethiopia has

enough water for

our population

and we have the

technology to

deliver water to

people. We just

need to deliver

it and manage it

better.

Babich town

Aberu Hirpa

INSI

DE

By Dawit Endeshaw

A multi-million birr wheat purchase by the Ethiopian government has ended up in controversy as Pakistan-based Shakeel & Company; a winning company in the latest 2.6 billion birr worth of wheat, filed its compliant to the Ministry of Finance and Economic Corporation this week.

The complaint from the company came following the termination of its contract signed with the Ethiopian Trading Business Corporation where Shakeel agreed to supply 400,000 metric tons (MT) of wheat.

In a letter signed by Mengistu Kebede, Chief Executive Officer of the Corporation on January 26, 2018, Shakeel was told that the contract was being terminated.

“Having notified through a letter of award and signed a contract on December 29, 2017 with our corporation to supply 400,000 MT milling wheat you not in a position to furnish performance bond as per the signed contract,” read the letter.

Following the award, the company was supposed to come up with a performance guarantee worth USD 10 million from a bank in Pakistan or elsewhere.

In this regard, the Commercial Bank of Ethiopia (CBE) as a witness was given a mandate to facilitate and ensure the guarantee.

The failure to provide the performance guarantee led to the cancellation of the contract.

“So we kindly inform your esteemed company the cancellation of the contract as per the award given and the Public Procurement and Disposal Service is informed by the copy of this letter for the measure to be taken,” according to the letter.

Prior to the cancellation, the company has requested the Service for 15 days of extension of submission of performance bond/guarantee from the contract signing. Shakeel attributed the reason that it was not able to submit the performance bond because there was no prior relationship between banks in Pakistan and the CBE.

In a letter dated January 22, Shakeel ask the Service to give the extension.

In addition to this, company sources told The Reporter that the company had also provided other alternatives such as submitting a bankers cheque as an alternative for the performance bond.

“We have submitted the bankers cheque in accordance with the contract agreement we have signed,” according to a source from the company.

Article 47 of the contact agreement between Shakeel and the Corporation reads that the supplier can submit a cheque from a reputable bank.

In this regard, Shakeel came up with a cheque worth 9.64 million dollars from HSBC Bank Middle East Limited payable to the Service.

However, this was also not accepted.

Company sources accuse the Service of interfering (for its interference) in the contract administration.

In a letter sent to the minister of Finance and Economic Cooperation, Abraham Tekeste (PhD), it stated that the Company had met with the director-general of the Service, and got no substantial results and was told that the final decision was in the hands of the Service.

Shakeel & Company finally requested the cancellation of the contract termination letter from the Corporation.

In the bidding process the Service is given a mandate to process the tender until awarding stage.

“We even ask to deposit the money in cash to either the Corporation or the Service’s account, said source close to the matter.

This latest purchase of 400,000 MT was meant for market stabilization. The wheat was supposed to be distributed to more than 5,000 bakeries and 300 flour- mills.

It is to be recalled that by the time of the tender, Shakeel gave a total offer of 2.60

billion birr for all four lots whereas the second least offer came from Promising International with an average price of USD 246.07, per ton or a total offer of 2.657 billion birr.

At the time, the total offer from Shakeel was 700 million birr lower than another purchase made a month previously, and having equivalent quantity.

Following the cancelation, Yigezu Daba, director-general of the Service, told The Reporter that the Service has already re-tendered the bid.

On the other hand, in addition to its complaint to the Ministry, Shakeel has also made the same complaint to Public Procurement & Property Administration Agency, a regulatory body that oversees the Service.

“We have received the complaints and we are looking into the matter,” an official from the Agency confirmed to The Reporter.

Pakistani company lodges complaint over contract cancelation

Shakeel gave a total offer of 2.60 billion birr for all four lots

The Reporter, February 3, 2018 Vol. XXII No. 1117Advertisment


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HEADLINES



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REQUEST FOR PROPOSAL(RFP S&L-2018 –9137512)

Topic- UNICEF (Ethiopia) Consultancy Service to undertake a Feasibility study for the transition of Nutrition supplies from UNICEF to government supply chain.

Details of the requirements for this bid and eligibility criteria etc can be found in the RFP.

Interested and eligible bidders from local Companies are invited to collect the complete bidding documents by sending an email to Mr. Sisay Berihun ([email protected]) or Mr. Deresse Damte ([email protected] ). While sending your request for RFP, please ensure that you specify the RFP number in the subject email, provide the name of the company, contact person, email and mobile number are provided without this information the RFP will not be shared by return email.

RFP can be received starting on 02.02.2018. The due date for

on or before 10:00 am (East African Time) 27th February-2018. Please read the RFP and the annexes for detailed requirements and due dates.

Please quote the RFP nr. 9137512 all your correspondences. UNICEF reserves the right to accept or reject part or all of any or all bids. ADDRESS: UNICEF Ethiopia, UNECA Compound, Zambezi Building, 2nd Floor East Wing Supply Section, Attn. Mr. Sisay Teferi / Mr. Deresse Damte, P.O.BOX 1169, TEL: +251-11 518 4026/ 4167, Addis Ababa, Ethiopia.

By Tamiru Tsigie

The Ethiopian Roads Authority (ERA) and HAWK International Finance and Construction Co Ltd, a Yemen-based contractor, have locked horns over 153.9 million birr performance bond which was deposited by the latter as guarantee for 1.1 billion birr road project – Gedo-Fincha-Lemelem Berha Road Upgrading Project – it is undertaking.

The two went into dispute after the latter filed a lawsuit to prevent the authority from accessing over 153.9 million birr that it had been deposited in Nib International Bank (NIB) as performance bond.

The performance bond was part of the agreement the two organizations signed for the Gedo-Fincha-Lemelem Berha Road Upgrading Project undertaken in Gedo Menabegna, Oromia Regional State. The project was signed in 2014.

According to the charge instituted at the Federal High Court, the firm deposited the stated amount of performance bond as guarantee for the project.

Hawk claims that it has been carrying out the road project in accordance with the agreements and the official timetable that has been approved by both sides.

And its performance has been approved by the project consulting firm. However, the authority has failed to effect payment which is structured on installment basis according to the performance, it claimed.

It also added that the authority has not shown willingness to make the payment despite repeated requested, at least 12 times in the past eight months period, which it had made in official letter.

But let alone the payment, the authority has even failed to respond to the stated

letters, HAWK detailed in the charge sheet. This, according the company, has led it to issue official notice to ERA regarding its intention to terminate its contract altogether and to take the case before a court of law. The charge also details that the company has set a deadline for the payments to be effected, to which HAWK claimed ERA responded amicably.

In spite of Authority’s agreement to settle the payments, which it expressed in latter, the charge sheet narrates,

ERA’s next move was to approach the guarantying ban, NIB, requesting it to transfer the 153.9 million birr bond to its account. The charge also says that ERA claimed to NIB that the contractor (HAWK) has not executed its contractual obligation and that performance bond should rightly be transferred to its account.

Hence, HAWK petitioned the court to dismiss the ERA’s request to claim its performance bond.

HAWK International is a Yemeni company that specializes in Infrastructure Projects including Roads & Tunnels, Canals, Airports, Bridges, Underpasses, Buildings and Offshore Marine Works. HAWK International also provides maintenance services, supplies personnel and equipment and manufactures & supplies camp accommodation facilities.

According to company’s website, since its establishment in 1992, HAWK International has also undertaken turnkey projects in areas such as Petrochemical Plants, Central Processing Facilities, Pipelines, Flow-lines, Wellhead Tie-ins, Fabrication works and Tank Erection including all associated Civil and Mechanical Construction, Piping, Electrical & Instrumentation Works.

Yemeni contractor sues ERA over 153.9 mln birr

HEADLINES


6| The Reporter, February 3, 2018 Vol. XXII No. 1117

.... NEWS IN BRIEF

UN donates USD 10 mln for IDPs

United Nations Central Emergency Fund released on Thursday USD 10 million to help people displaced in Ethiopia due to the conflict along the borders of the Oromia and Ethiopian Somali regional states.

Under-secretary-general for Humanitarian Affairs Mark Lowcock held discussions with minister of Foreign Affairs Workneh Gebeyehu (PhD) on Thursday.

Acknowledging the long-standing relationship with Ethiopia, Lowcock said: “When we went to Gode in the Somali Regional State yesterday and met displaced people, we wanted to see what we can do to contribute to the solution. I, therefore, announced the allocation of 10 million dollars from UN Emergency Response Fund.”

He added that UN appreciates the progress made by the country in the last few years.

UNDP administrator, Achim Steiner, said on his part that Ethiopia and the UN have been working closely for long time through humanitarian emergencies and for the overall development of the country over four decades. According to him, the system has supported the country to continue developing over the years.

(ENA)

Eritrean, Afghan migrants clash in Calais

At least five migrants have been shot in the French port city of Calais, after a mass brawl between Afghans and Eritreans.Four Eritrean youths aged 16-18 are in a critical condition and have been rushed to a local hospital for surgery.A fifth man was taken to nearby Lille due to the severity of his injuries.At least 13 more people were wounded due to "blows from iron bars", the local prosecutor's office said.French Interior minister Gérard Collomb visited Calais overnight and said the clashes had been exceptionally serious.One of the most seriously wounded was said to have been hit by a bullet in the back of the neck."There's been an escalation of violence that has become unbearable for both the people of Calais and the migrants," the minister said.The initial fight, which lasted almost two hours, broke out on the city's southern outskirts where migrants had been queuing for food handouts.Around 100 Eritreans and some 30 Afghans were caught up in the violence.

(BBC)

By Dawit Endeshaw

The week-long violence in Woldia and Kobo towns in Northern Wollo Zone of the Amhara Regional State, are far from over, as the region tries to calm the situation and start arresting youngsters, The Reporter has learnt.

The violence began on Kana Zegelila celebration, the second day of the Epiphany Festival, in Woldia town. The violence then spread to Kobo first and then to Mersa town.

The Reporter has traveled to those affected areas of Northern Wollo including Mersa, Woldia, Mehal Amba and Sirinka, where it witnessed burned trucks, public offices and business as well as blocked roads.

As a result of the violence in the area, the usual public transport from Dessie to Woldia – an estimated 110 kilometers – was terminated.

On January 28, 2018 during its travel to the area, The Reporter witnessed, only two minibuses that took the risk while transporting 36 people through Woldia. There were no buses leaving from Dessie bus station daring to make the journey. The drivers of one of the minibus were telling the travelers that all of them should have their identifications card in case if anyone asks for it. “If you have your ID, there will be no problem,” the driver said.

Later, The Reporter observed the driver telling his passengers that, there might be an ethnic oriented attack from the protestors along the way. These two minibuses, forced by protestors, had to stop after traveling about 80 kilometers. They told their passengers they can no longer travel beyond Mehal Amba, 30km

from Woldia. From Mehal Amba, The Reporter along with other travelers, had to walk for 30 kilometers for more than seven hours to reach Woldia. On the way to town, The Reporter witnessed youngsters demanding travelers to show their ID and ask them where they came from.

Furthermore court houses, hotels, shops and other businesses and public offices in a town called Mersa were set on fire and a number of businesses were vandalized and torched, The Reporter observed.

The Reporter has also observed a military presence in Mersa dominated by a highly equipped National Military, Federal Police and few members of the regional police.

It is to be recalled that, the deadly clash

in Mersa town claimed the lives of many people including a brutal killing of a judge who had worked in the area. The killing of the judge seems to be a revenge killing by the people who were affected by his judgements previously, according to a resident of Mersa.

The youths who were involved in the protest following the incident in Woldia didn’t listen to our advice, said another resident of Mersa in his 70’s. He went on to say that, a body of an individual who said was killed by security forces, had no one there to take his body.

The Reporter saw two buses and three trucks carrying people, escorted by mainly the member of the National Defense.

The protest also spread to towns such

as Kobo, and Robit. Depite the efforts taken by regional officials in Kobo, has continued over the week where it saw the destruction of public offices, business and lives.

A public servant who lives in Robit, whose name withheld upon request, told The Reporter that, people in Kobo and Robit were raising genuine problems of maladministration, lack of infrastructure as well as good governance. He also stated that, they are going into every house and started arresting people.

Following the talks for holding a three-day-stay home strike, in the same week in Woldia, The Reporter has observed that businesses have remained largely shutdown with youngsters closing down major roads leading to and out of the town.

Meanwhile, federal forces have been spotted arriving in the area.

A teacher working in Woldia, who spoke to The Reporter anonymously, said that although first semester final exams for high school students were scheduled to take place this week, starting Monday, but the probability of that happening now has gone down considerably given the current situation. It is highly unlikely that students would be able to sit for their exams in the current conditions, said the teacher.

Similar to last week, protestors are reported to have started attacking homes and properties of local officials and businesses.

So far regarding the loss of lives, except for the seven people who lost their lives in Woldia, no official figure was given by the region as well as the federal government in respect to property destruction and loss of lives.

Violence escalates in northern Wollo

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Ethiopian, ASKY sign strategic partnership agreement with Guinea Airlines

Ethiopian Airlines has signed an agreement with Guinea Airlines for strategic partnership in management, maintenance and training.

Ethiopian Group CEO Tewolde Gebremariam, Cheick Dem, from Guinea Airlines and Guinea’s Minister for Transport Oyé Guilavogui signed the agreement on January 30, 2018 at Ethiopian headquarters.

Tewolde said, the partnership is in line with the recently launched African Single Air Transport Market at the African Union Heads of State Summit in Addis Ababa.

“We are partnering with Guinea Airlines and other African countries because we have the capacity and the expertise to support our African brothers and sisters in the aviation sector.”

Tewolde said, the agreement is a trilateral partnership with Guinea, ASKY Airlines and Ethiopian Airlines with a view to fill the air connectivity vacuum in domestic Guinea market and between the Mano River countries.

On behalf of Guinea Airlines CEO, Cheick Dem appreciated Ethiopian for the effort to realize the establishment of Guinea Airlines and also vowed to honor the terms of the agreement.

(Press Release)

German military to end role in EU training mission in SomaliaThe German military will stop participating in a European Union training mission in Somalia at the end of March, a Foreign Ministry official said on Thursday, expressing frustration at the pace of progress.

Germany has about five soldiers taking part in the training mission alongside 15 from other EU countries. The decision to end Germany's participation in the programme, which began in 2010, was first reported by Der Spiegel magazine.

"The development of a Somali national army is moving forward only very slowly, in part due to deficits in political and institutional structures, as well as equipment gaps among trained Somali soldiers," the ministry official said.

Berlin is now looking at how to bolster its engagement in civilian security in Somalia and supports a shift recommended by an EU strategic assessment to focus more on providing advisory help, a concept currently being discussed in Brussels.

The United States last year decided to suspend food and fuel aid for most of Somalia's armed forces over corruption concerns.

(Reuters)

By Yonas Abiye

The Ethiopian Revenues and Customs Authority (ERCA) revealed that, the likes of tax evasion, fraud and the recently growing role of contrabandists continue to hamper progress of revenue collection of the country.

Moges Balcha, director-general of ERCA, presenting a six-month performance report before the House of People’s Representatives (HPR), told MPs that over 60 organizations have been investigated for tax evasion and illegal trade practices. He also said that, some 181 individuals have been charged for violation of the tax laws and regulations.

He also explained that, contraband and illegal trade practices are becoming serious problems that need a collaborative effort to prevent them from causing more damages. He added that a task force against contraband trade has been established in various corners.

But, according to the report, the contrabandists’ role has grown in the past six months, especially in illegal export which saw an estimated amount of 105.3 million birr worth of goods confiscated during the first half of the year. Despite this, illegal exports did not show any slowing down; far from it, it grew by 121 percent.

Meanwhile, 331.6 million birr worth of items were confiscated while they were being imported illegally. Comparatively, imports of this nature saw a decline of 10.5 percent from the previous year, according to Moges.

However, the Authority received aggressive reactions from MPs

regarding the identities of the so called “contrabandists.”

They also demanded public disclosure of the identities of these contrabandists—by name.

Recently, the term “Contrabandist” has attracted the attention of many people following Prime Minister Hailemariam Dessalegn’s recent remarks, blaming “contrabandist” for the deadly border clash between Oromia and Ethiopian Somali regional states. However, it also drew controversy among the public as it

alleged that the term “contrabandists”, was used by the ruling party to cover-up its failure to bring stability.

Due to the stated setbacks, the authority achieved only 83 percent of the total revenue target it had set for the half year. Hence, the authority’s plan to collect 109 billion birr fell short of the target at only 90.81 billion birr.

Out of the total revenue collected in the past six-month, Inland Revenue contributed 56 percent while revenue from International trade and sale of

lottery contributed 43.46 and 0.1 percent, respectively.

Meanwhile, regarding the revenue sources, direct tax, Value Added Tax and Excise tax performed 102.3, 71.17 and 80.21 percent, respectively.

On the other hand, the officials of the Authority also told MPs that, series of policies and implementation strategies governing the existing tax incentive and duty free privilege regime are under review to address wide-spread abuse of the system.

Contraband continues to shackle gov’t revenue

MPs demand the identities of the so-called ‘Contrabandists’

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DangoteSealed tenders are invited under two bid systems from reputed experienced agencies, to provide Manpower – Heavy duty Truck Drivers. On outsourced basis for their engagement in Dangote Cement Ethiopia, Plc. The Contract will be valid for a period of one year, with effect from the date of signing the agreement. The last date and time of submission of tender document is Dated. 15.02.2018, 3:00 PM.

IMPORTANT INFORMATION 1 Tender No.& Date Tender Notice No. DI/ET/DVR/18/1 Dated2 Name of work Contract for Supply and Management of Drivers on outsourcing basis at

dangote cement Ethiopia Plc.3 Contract Period 1 (One) Year 4 Last date & Time of issue of Tender 15 Feb-2018 till 3:00 PM 5 Last date & time of closing & receipt

of tender 28.02.2018 up to 15.00 Hrs.(3.00PM)

6 Date, Time and place of Opening the Tender (Technical Bid) Addis Ababa

7 Earnest Money Deposit (EMD) or Bid Security Deposit (BSD) particulars

ETB 300,000.00 (Three hundred thousand ETB) to deposited by successful bidder(s)

8 Tender Fee (Non-refundable) ETB 1000.00 (One thousand ETB) To be deposited at the point of collecting tender document

Submission Address: 9th

Meti Building Opposite Sapphire Addis Hotel Around Atlas

By Tamru Tsige

The Ministry of Labor and Social Affairs (MoLSA) announced that overseas employment is going to begin soon with 20 agencies licensed to send employees to Kuwait, Qatar and Jordan. This came days after Alemayehu Tegenu, minister for Cabinet Affairs with the Office of the Prime Minister, told The Reporter that the government has lifted the four-year-old ban on overseas employment originating from Ethiopia.

This was disclosed this week on a press conference given by the State Minister Misganaw Admassu (Amb.), Human Resource Director Abebe Haile and Overseas Employment Director Berhanu Abera with the MoLSA. The ministry licensed the 20 agencies out of the 923 that applied to operate in Ethiopia as an overseas employment agency.

It was announced that there are talks with the United Arab Emirates (UAE) to sign an agreement to provide for employees to be able to go and work in the UAE; however although an agreement has been signed with Saudi Arabia, employees will only be able to go there after the agreement is ratified by the parliament.

According to the proclamation which provides for foreign employment operations in Ethiopia, any company that is looking to be engaged in overseas employment sector should make a deposit of USD 100,000 as collateral for damages that the employees might face while working abroad. Hence, the ministry affirmed that the licensed

Overseas employment gets green light

agencies have already fulfilled the required prerequisites stated in the proclamation.

Apart from this, the ministry also announced that the revocation of the licenses of 97 employment agencies engaged in improper practices and which had received warning more than three times to that effect.

It was also indicated that 40 technical and vocational training institutes have already been selected to train workers that seek to travel abroad for employment.

The Ministry that amended the overseas employment proclamation to meet the growing demands and to prevent citizens from getting into trouble for going overseas to work without the proper documentation has now established two departments to monitor overseas employment sector. These structures of the Ministry have also stretched to the regions.

Consequently, the ministry announced that there are more than 90 applicants awaiting licenses to work as an overseas employment agency in Ethiopia.

For employees to work overseas, they at least need to reach grade eight level and take vocational trainings as well as pass competence test, according to proclamation. The vocational trainings are focused on the political social and economic situations of the destination countries. These travelers will be taking the training for one to three months.

In order to give services for these travelers, as they will require health certification to be eligible for traveling, 66 health institutions have also been selected in collaboration with the Ministry of Health.



By Dawit Endeshaw

A new report jointly released by the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA), the National Disaster Risk Management Commission (NDRMC) and International Organization for Migration (IOM) indicated that close to one million people have been displaced due to the conflict along the borders of the Oromia and Ethiopian Somali regional states.

According to the report released a week ago, nearly all districts along the borders of the two regions were affected by the displacement.

The report also stated that, preliminary data from the latest round of the

By Dawit Endeshaw

The European Investment Bank (EIB) expressed its commitment to assist M-Birr, a local IT firm actively involved in online payment system, with a three million euros equity investment, this week.

This will be EIB’s first time to invest in mobile-based financial technology services in Africa, according to the Bank.

It is a co-investment with DEG, a subsidiary of Germany’s KfW, German government-owned development bank, based in Frankfurt.

This is a part of EIB’s plan to inject close to 12 billion birr of financial assistance to public and private investment projects in Ethiopia, the largest ever financing program made by the bank in years.

The financing, which will be made for a number of projects, is in pipeline and most of the projects are expected to be realized in the coming years.

In this respect, the bank has been reviewing a financial assistance request from M-birr for the past couple of months, EIB said.

The finance provision will support M-birr’s plan to expand its service. So far,

M-Birr was mostly involved in offering mobile-based money transfer service for five micro finance institutions.

M-Birr, co-funded by foreign investors three years ago, has now processed payments for over 750,000 households with around three million beneficiaries. It is also serving 280,000 mobile money clients in the country.

With the assistance from EIB, the company plans to expand to other sectors mostly focusing on small businesses.

Just over the past two years, EIB has invested around USD 90 million in Ethiopia. It is to be recalled that last year Pim van Ballekom, vice president of EIB, signed USD 76 million concessional financing with the Ethiopian government.

In addition, the bank has also provided a USD ten million loan to an Ethiopia-based private company, Cepheus Growth Capital Fund in September, 2017.

Moreover, the bank is also receiving

more financial assistant requests from the private sector in Ethiopia ranging from those involved in the manufacturing sector to service and others.

Since 1976, the bank had pledged a total of 400 million euros to Ethiopia for expenditures in infrastructure projects such as energy, water and communications. It has provided more than 22 billion euros for investments in Africa over the past five years

By Samuel Getachew

A report from Le Monde Afrique in the midst of the gathering of the Heads of State and Government of the African Union that concluded on Monday

described how China has been spying on African leaders since 2012 transferring vital information to Shanghai in the wee hour of the night.

However, the new chairperson of the AU, President Paul Kagame,

downplayed the allegations.

The President told The Reporter how he wished Africa had built the facility on its own if it did not want to be spied

Kagame downplays Chinese spying report

UN says million displaced

Somali

UN says million ... page 29 Kagame downplays ... page 29

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By Birhanu Fiakde

On its 10-year anniversary since joining the Ethiopian auto business, Lifan Motors Group, one of the largest Chinese automakers with an auto assembly plant in Ethiopia, is poised to launch an automotive training academy in Ethiopia.

Mark Ma, general manager of Lifan Motors Ethiopia, told The Reporter that currently the group is facilitating linkages for short-term training opportunities to Ethiopian mechanics with universities in China, who are currently taking automotive courses at different Technical and Vocational Education and Training (TVET) schools in the country.

The general manager noted that new academy is a long-term plan Lifan Motors was eyeing for years. However, to create a smooth transition in establishing the academy, the company is poised to provide internships, short term trainings and assist students secure scholarships in China, Ma said.

On the other hand, running a USD 10 million auto assembly line and service station, Lifan Motors is joining the United Nations Industrial Development Organization (UNIDO) to provide internships and short-term automotive trainings in Ethiopia. Back in November, during the UN general assembly, Lifan Motors was selected as an exemplary company for industry-TVET and

university linkages, Ma said. A follow up to that, the carmaker has agreed with the Ministry of Science and Technology here to provide practical trainings. From the current fiscal year, on monthly basis, Lifan Motors will accept some 100 TVET students specializing in the auto mechanics filed. Such activities according to Ma are part of the company’s effort to build a brand name and fulfill its corporate social responsibility (CSR).

On Wednesday, Ma and his team visited Muday Charity Organization, a local NGO which hosts 1,000 impoverished children and their parents. In addition to providing financial assistance to the organization, Lifan Motors took

some of the children to its factory for motivational tour. Ma pledged to provide further assistance and create jobs and avail scholarship opportunities for younger kids in the future.

In its 10 years of business in Ethiopia, Lifan Motors has assembled and sold some 7,000 units and plans to sell another 1,000 units this year. Further expanding in Ethiopia, the company currently is on a move to erect its own headquarters which is expected to double as a showroom and after sales service facility. According to Ma, the new building will serve the East African markets as whole. The USD six million project will sit on 5,500 square meters of plot the company has secured

in Addis Ababa.

The assembly plant Lifan Motors leased in the Eastern Industry Zone at Dukem town, Oromia Regional State, has a capacity of assembling 2000 units per year. However, company officials often argue that due to lack of hard currency the production capacity has been crippled and that it is limited to assembling only 500 knock down units a year. 200 jobs could have been created so far; yet only 50 have been created again due to foreign currency shortages; and the currency devaluation measure which took effect recently is also another headache to the company’s operation here.

Lifan Motors eyes auto academyJoins hands with UNIDO to spearhead TVET programs


12| The Reporter, February 3, 2018 Vol. XXII No. 1117IN-DEPTH

Africa is home to 12 percent of the world’s population but it accounts for only three percent of the global air service market. Since other transport infrastructure like road and railway network is not well developed, air transport was supposed to play a crucial role in connecting African countries and spurring economic development. By building only three kilometers of runway Africans can travel thousands of miles in Africa and the rest of the world.

However, African countries are not well interconnected by air. Neither are they economically well integrated. Intra Africa trade stands at only 15 percent. Air fares are relatively expensive due to high airlines operational cost that stem from exorbitant

airport fees, taxes and fuel price among other things.

African air transport market is restricted by protectionist bilateral air service agreements commonly called BASA. On some routes few airlines dominate the skies due the restrictive BASAs and this makes air fares more expensive.

Though the Organization of African Unity (OAU) and the African Union (AU) have been tirelessly working on promoting African economic integration, the African air transport market is still fragmented. African countries deny traffic right for African airlines but allow non-African carriers to freely operate in the continent.

Due to the restrictive BASAs home grown African airlines carriers cannot freely fly from one African country to another. Those who have the traffic right still beg civil aviation authorities to increase flight frequencies. According to a World Bank Report titled “Open Skies for Africa” part of the reason for Africa’s under-served status, is that many African countries restrict their air services markets to protect the share held by state-owned air carriers.

Ethiopian Airlines Group CEO Tewolde Gebremariam said that the AU and its predecessor have been working very hard for the economic integration of Africa but despite all the efforts intra Africa trade is only 15 percent of the total trade volume. “Compared

liberalization of civil aviation in Africa and as an impetus to the Continent’s economic integration agenda – got the green light at this year’s AU Summit. Though 23 have agreed to implement SAATM, 32 AU member nations have not warmed up to the idea, reports Kaleyesus Bekele.

THE DILEMMA OF OPENING AFRICAN SKIES

Though the Organization of African Unity (OAU) and the African Union (AU) have been tirelessly working on promoting African economic integration, the African air transport market is still fragmented.


The Reporter, February 3, 2018 Vol. XXII No. 1117 |13IN-DEPTH

The dilemma of... page 35

to other continents like the European Union, which stands at 60 percent, ours is very low. So we need to integrate among ourselves. We need to trade and invest. And the most critical economic enabler to boost trade, investment and tourism is aviation,” Tewolde said.

Recognizing these challenges African leaders who gathered in the Ivorian city of Yamoussoukro in 1988 decided that African air transport market should be open for African airlines. Many African states in principle agreed to air service liberalization. In 1999 African ministers responsible for civil aviation adopted the Yamoussoukro Decision, named for the Ivorian city in which it was agreed.

The declaration commits its 44 signatory countries to deregulate air services, and promote regional air markets open to transnational competition.

In 2000, the Decision was endorsed by head of states and governments at the OAU, and became fully binding in 2002.

But implementation has fallen short, says Charles Schlumberger, Lead Air Transport Specialist at the World Bank, and author of Open Skies for Africa. “African states have been reluctant to fully implement the Yamoussoukro Decision,” Schlumberger said.

Various attempts by the African Airlines Association (AFRAA), the African

Civil Aviation Commission (AFCAC), and the AU to persuade African states to fully implement the Yamoussoukro Declaration took decades. And this has cost the continent direly.

Failure by African states to establish a single African air transport market enabled foreign airlines to conquer African skies. The intense competition coming from mega international carriers led to the demise of many African carriers.

According to Tewolde, 80 percent of the passenger traffic between Africa and other continents is carried by non-African

Failure by African states to establish a single African air transport market enabled foreign airlines to conquer African skies.

AFCAC


14| The Reporter, February 3, 2018 Vol. XXII No. 1117INTERVIEW

THE 4TH GENERATION ENTREPRENEUR Described as one of the people who “represent the part of Ethiopian life where dynamism, creativity and an adventurous spirit are allowed to thrive, by BBC” Harsh Kothari of Mohan Group of companies is a passionate entrepreneur and charity advocate. Though born in India, he was raised in Ethiopia and spent more of his formative years in

Samuel Getachew on Mohan, the status of the dwindling Indian community of Ethiopia, on charity and gives advice to young people as well as the diasporas who want to follow in his footsteps. Excerpts:

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The Reporter, February 3, 2018 Vol. XXII No. 1117 |15INTERVIEW

The 4th generation ... page 36

Tell me about the Mohan Group of Companies?

We are a diversified group of companies that primarily focus on polymer compounding and integrate it to manufacture footwear. Our flagship company, Mohan PLC, is involved in the manufacturing of Ethylene Vinyl Acetate (EVA) Compounds, Poly Vinyl Chloride (PVC) Compounds, Color master batches, Filler master batches, and recently we have started producing Thermo Plastic Rubber (TPR) Compounds, the first in the whole of East Africa. Our chemicals are bought by varied customers in diversified sectors. For example, we supply compounds to the cable industry, which use our products to coat the cable. We supply to companies that manufacture pipes and hoses.

We supply our compounds to many footwear companies. Interestingly, we also manufacture Filler Master batches, which is an important element in the flexible packaging industry and the furniture industry. 20 percent of a PP woven sack or 20 percent of any PE film can be substituted with filler master batches, which makes products, get certain special properties, and at the same time reduce their cost. Plastics are omnipresent around us, and our color master batches provides for the aesthetics for a lot of the plastic products we see around us (including the buckets, jerry cans, shopping bags, etc).

We used our advantage in chemicals and plastics and integrated into footwear. We manufacture our own rubber and EVA sheets and process it further to make soles for leather based casual and jogging shoes, and flip flops; we manufacture our own soles using our

own PVC compounds and make canvas shoes etc. I am happy to inform you that we now have a very successful and popular shoe brand, Highlander Shoes.

There is now a strong but dwindling Indian-Ethiopian population in the nation. Your family has been in Ethiopia for three decades and there are some who have stayed longer. Tell me about that?

The Indian community in Ethiopia is growing and getting stronger. My family has been actually here for five generations. My son is the 5th generation in Ethiopia. We have been in Ethiopia for over 100 years! There are about 100-150 Indians who have been living in Ethiopia for generations. Though in the past decade or so, we have seen a great increase in the number of Indians participating in the dynamic economic growth in Ethiopia, whether they are from the professional, teaching or business background. As you probably already know, Indians and Ethiopians share a very similar culture in many ways; from cuisine to the concept of family living to the way in which we do business and even linguistic similarities. I am of the personal opinion that Indians have a natural advantage in Ethiopia, both in life and in business, which is because we feel at home.

Mohan is a known brand, especially on its corporate responsibility gestures. It has supported many charities including the Lions Club. Why is that mantra important for the company?

I am happy that you have asked this question, because it is an issue that is very close to our hearts. We are the 1st corporate Lions Club in the world, “Lions Club of Mohan PLC” and we work

hard to pay back social dividends in life. Many perceive our activities as charity, but for us, it is something we do for ourselves, for our self-satisfaction and for our self-esteem. In cooperation with the Office of the First Lady and Ye Enat Weg Charitable Association, Mohan PLC is feeding 126 students two meals a day at the “Alpha School for the Deaf”, where we noticed that children with a hearing impairment were a lot more motivated to come to school, learn and perform exceptionally ever since they got their meals. Interestingly, we even gave an internship to seven students from this school in our shoe plant in Gelan, and realized how talented and bright they are. As part of a Lions Club project, we have also worked on building an eco-village where we drilled a well, powered the pump using solar energy.

We then connected one pipe for drinking water and another for sanitation and hygiene. All the waste water was then filtered through weeds and got used for irrigating a vegetable farm. In the meantime a separate charging kiosk was made for villagers to charge their mobile phones etc with the surplus energy produced using the solar panels. We also hold an annual blood donation drive, we just donated blood last month, and we feel good to see a great deal of participation from our staff, business associates and friends.

Social programs help us bond with people better, and it also motivates our team to work harder on business matters so that they know that the rewards in business are not only for theirs to keep but to be shared with society. Giving also enhances better self-esteem and self-respect, and we feel happy to see the growing self-belief in our team.

The company has tried to complement

the policy of the Ethiopian government in the manufacturing industry rather than focus on what was the known route, which was the importation of goods from aboard. Share with me the highlights?

In order to be competitive in the dynamic Ethiopian economy, we have realized that it is important to add value to products. Value addition helps to be more sustainable and create sharper competitive edges. Being a part of a larger cycle of a product value chain helps in innovation as well because you can monitor the impact of one innovation on the entire product cycle. The government also felt that the need of the hour is to add value to products in Ethiopia so that Ethiopian products are more competitive in the larger context. We do believe in aligning ourselves to government policies and creating linkages amongst industrial players.

As the nation continues to face forex shortages, it is crucial that companies like ours take a position of import substitution enablers. I think creating import-substituted linkages within the manufacturing sector in Ethiopia is seen as one of the key areas of sustainable growth under GTP-II, and we are happy to continue playing a role in that direction. We have received support and cooperation from the government in setting up and executing our footwear project successfully through transformative agencies such as LIDI, and we have realized that their support has helped us go a long way in building our footwear brand, Highlander Shoes, because they supported us from the feasibility study to the training of our workforce to designing some of our shoes


16| The Reporter, February 3, 2018 Vol. XXII No. 1117LIVING AND THE ARTS

The narrative of Ethiopia is changing having graduated its once doomed economy to one that is worthy of recognition. According to the World Bank 2018 forecast, the nation is East Africa’s fastest growing economy. While this remains a humbling milestone and something to behold, what has not tickled down is on millions of people who are displaced around the country for a variety of reasons.

The experience of Ethiopia is not unique across the region and it follows a uniform like occurrences that are experienced by many people in the horn of Africa. The latest pressing conflict between Ethiopian Somalis and Oromos has also affected many people. The two ethnic

groups seem to compete for internal border that they have used as grazing land and as a means of survival.

While the causes of the conflicts of Ethiopia are an open debate, it is having real impact on the ground even though conflicts in Ethiopia are generational.

In Medda Wolabu district within the Bale Zone in South-East Ethiopia about 500km south of the capital, inside the Oromia Regional State, there are now thousands of people displaced and living with the support of charities or charitable organizations as well as the government because of what has become

The Government of Ethiopia, together with development partners is saying that rehabilitating citizens displaced due to

of Oromia and Ethiopian Somali regional states is progressing. And one of these areas is in Medda Wolabu, reports Samuel Getachew.

Harsh realities ... page 19

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Harsh realities for IDPs





Africa’sl ... page 30

Africa’s 2018 elections ... page 30

VIEWPOINT

COMMENTARY

The African Development Bank (AfDB) has just published its African Economic Outlook for 2018. This year’s revamped publication – shorter than usual, analytically well-structured, and written in lucid prose, without hyperbole – in some ways mirrors Africa’s own transformation, as it raises hopes that we may at last be witnessing the continent’s long-promised economic arrival.

Africa’s rise has been a long time coming. In the 1960s, hopes were high. The remarkable leaders of the independence generation – such as Ghana’s Kwame Nkrumah and Kenya’s Jomo Kenyatta – received advice from the world’s top economists. The Caribbean-born Nobel laureate Arthur Lewis became Nkrumah’s Chief Economic Adviser.

In India, we read about these leaders’ friendship with our own post-independence prime minister, Jawaharlal Nehru, and the hope for a new dawn for all emerging economies. And many emerging economies did indeed take off. In the late 1960s, some East Asian economies surged ahead. Beginning in the early 1980s, China began its decades-long rise. And, from the early 1990s, India’s economy also began to grow robustly, with annual rates reaching the nine percent range by 2005.

But Africa remained stagnant, mired in poverty. Ironically, it was the continent’s resource wealth that hampered economic progress, as it

fueled conflicts among governments and insurgents eager to control it. The resulting political instability attracted outsiders keen to exploit governments’ weakness. As the Indian poet and Nobel laureate Rabindranath Tagore put it in his 1936 poem “Ode to Africa,” which played on perceptions about who is “civilized,” the continent fell prey to “civilization’s barbaric greed,” as the colonists “arrived, manacles in hand/Claws sharper by far than any of your wolves.”

Finally, at the turn of the twenty-first century, things began to change for Africa. A few dynamic leaders, democratic stirrings, and emerging regional cooperation led to a decline in poverty and a pickup in growth. Commodity exporters faced a setback around 2014, when prices plummeted. But this turned out to be a blessing in disguise, because it forced countries to diversify their economies and increase production – factors that supported renewed growth.

According to the AfDB report, Africa’s 54 economies grew by 2.2 percent in 2016, on average, and 3.6 percent in 2017. In 2018, the AfDB predicts, average growth will accelerate to 4.1 percent, while the World Bank expects Ghana to grow by 8.3 percent, Ethiopia by 8.2 percent, and Senegal by 6.9 percent, placing these countries among the world’s fastest-growing economies. And these figures are not wishful thinking: in 2016, Ethiopia’s GDP grew by 7.6 percent.

Of course, serious challenges remain. South Africa, the continent’s strongest economy, is now facing the difficult task of tackling its deep-rooted corruption. Yet, with the African National Congress now apparently determined to replace President Jacob Zuma’s scandal-ridden administration with one led by the party’s new leader, Cyril Ramaphosa, there is reason for hope.

More broadly, many African countries need to find ways to create more employment – and fast. The share of the working-age population is rising faster in Africa than in any other region. This “demographic dividend” has immense potential. But if job creation stalls, the unemployed or under-employed are likely to become frustrated – a recipe for conflict.

Consider the case of Tanzania. Thanks to President John Magufuli’s effort to mobilize more domestic revenue to support increased development spending, the economy is doing well. But, with roughly 800,000 individuals entering the labor force each year, Tanzania needs much more working capital, better infrastructure, and educational reform aimed at ensuring that workers have the skills, resources, and opportunities to secure decent jobs.

The same is true of Ethiopia. In the last couple of decades, the country has made great strides in export-led growth,

According to a new report by the African Development Bank, the continent’s 54 countries grew by 2.2 percent, on average, in 2016, and 3.6 percent in 2017; in 2018, the AfDB report predicts, growth will accelerate to 4.1 percent, supported by some of the world’s fastest-growing economies. Has Africa’s

Kaushik Basu.

Africa’s arrival

When the Arab Spring broke out this time in 2011, bringing down the long-standing regimes in Tunisia and Egypt amongst others, many wondered whether it would be followed by an African Spring south of the Sahara.

None followed. This was in part, some concluded, because democracy had already been spreading across sub-Saharan Africa since the 1990s. African citizens were increasingly taking charge of their governments, and accountability was becoming more deeply embedded.

However, this was has never been true of all African countries. While some have seen promising progress, in many others autocracy and rent-seeking, or just the ‘Big Man’, remain entrenched and as strong as ever. The question looking ahead then is: what has made the difference and will the coming year see significant change?

There are many ways to examine the latter part of that question, but elections provide one clear litmus test. Popular votes are, of course, no panacea and are just one aspect of democratic governance. But they at least provide a reality check of how countries are faring and how great the risk that they are to face an uprising or unrest.

Elections ahead

In 2018, elections are due in Cameroon, the Democratic Republic of Congo (DRC), Egypt, Madagascar, Mali, Sierra Leone, South Sudan and Zimbabwe. This set of countries fills the spectrum from good to bad (or no) government.

A poor country still recovering from the Ebola epidemic and recent mudslides, Sierra Leone is facing difficult circumstances. But it does have an increasingly strong democratic culture, which is likely to be reflected in elections that, even if not technically perfect, should reflect the will of the people.

President Ernest Bai Koroma toyed with the idea of revising the Constitution to allow himself a third term. But he dropped the idea, so the country will get a new president after the 7 March vote. At the moment, it is too close to call whether the ruling APC’s Samura Kamara or an opposition candidate will emerge victorious.

In Madagascar and Mali, the outcome of elections, both scheduled for late in the year, are similarly uncertain. In Madagascar, long-standing rivalries re-surface with every election, and while President Hery Rajaonarimampianina will have some advantages of incumbency, the opposition has a solid chance of winning. In Mali, President

Ibrahim Boubacar Keita’s time in office has been turbulent, but he may well be returned given the weakness of the opposition. But there will at least be a real choice.

This is much less true of Egypt. After not one but two revolutions since 2011 and a continuing terrorist threat, stability is a priority. But under President Abdel Fattah al-Sisi, this has come at a high price. Under his watch, political space has been closed drastically, thousands accused of supporting the Muslim Brotherhood have been incarcerated, and any serious potential rivals have been neutered. That means Sisi’s re-election in March is effectively a foregone conclusion. However, by stifling freedom and participation in the short-term, popular frustrations may simply be stored up for the future. Stability is far from assured.

The most interesting election this year is likely to be in Zimbabwe. The critical question here will not be whowins but how they win. Many have argued that President Mugabe’s removal was primarily orchestrated to preserve the ZANU-PF old guard’s grip on power. But the popular jubilation at Mugabe’s departure and high expectations that

of democratic governance, but their conduct gives an indication of how likely countries are to face uprising or unrest, Nick Westcott

Africa’s 2018 elections: The good,


The Reporter, February 3, 2018 Vol. XXII No. 1117 |19LIVING AND THE ARTS

the reality of the village.

All of the affected people in Medda are are one of the affected groups and they describe the horrors they have lived and the lives they are living in the midst of poverty and challenging circumstances that are beyond their control. There have also been experiences reported by many media outlets of similar experiences from the other side.

But in Medda, where The Reporter visited earlier this week, many reflected on experiences that have taken a hefty toll, especially on their children that are no longer in school.

Their future looks bleak and most are struggling to stay afloat with basic necessities of life. Most are quick to reflect about that life they have left behind in a faraway life yet a walking distance of only few kilometers away that is now guarded by the military to bring peace in the area.

Housed in an aging make shift plastic hut and donated mattresses, thousands of people live in this village mirroring the experiences of many thousands nearby.

“We are not refugees, we are productive people whose lives have suddenly been interrupted,” an elderly man told The Reporter. “We have little documentation to show it, little support to provide our family as we were suddenly pushed to a place that was foreign to all of us.”

The sentiment is universal here. This is a prime example of lives interruption that is human made, not the natural disasters that have provided the narrative for Ethiopia to reach out to international humanitarian organizations in the past.

“I am not a poor man and I was a farmer adequate enough to feed my family and earn a living,” Abdi Abdullah told The Reporter while his children sprung all over him. “I never was a recipient of handouts by any agency or government and now I can barely support my own family. I am lost and I feel defeated.”

“This is the not the life I envisioned for myself and my children and it almost looks like a bad dream where I am no longer able

to be productive and feel safe,” Osman Saliman said. “I miss home, where I had a home and rather than a makeshift home where it does not feel like home for me and my children.”

Like Abdi and Osman, there are thousands of people who have come to this village in need of safety, moved here from an area that is not far, but no longer safe and no longer a home. Most owned properties, lands and bank accounts and had a future but now are supported by humanitarian agencies such as ChildFund who has partnered with government agencies and

others to offer emergency aid. This after the humanitarian organization was invited by the government of Ethiopia

to support these vulnerable populations.

ChildFund and its Oromia implementing partners estimate to reach close to 7,000 people within the

next month with food and non-food food items.

“This is an emergency response to stabilize displaced communities through providing a one-off package of basic necessities such as food and non-food items to the IDP’s in Medda Wolabu district,” Chege Ngugi, the country director of ChildFund Ethiopia told The Reporter. “In addition, the support includes outdoor play materials aimed at meeting some psychosocial needs of the displaced children

non-food items such as other nutritious food for those under the age of five, and other packages

such as sanitary pads, blankets, sleeping mats, cooking wares and kettle”.

According to Bale Zone Woreda administrator, Aliyi, there are close to 1400 households in need of immediate

food assistance, including nutritious food for vulnerable children. ChildFund Ethiopia and its four implementing

partners in Oromia are pumping two million Birr for the efforts here, but there is evidently big need.

Founded in 1938, ChildFund is a child-focused international development organization with its headquarters in the United States and has many ongoing projects within Ethiopia. It specializes in the areas of vulnerable children and helps transform their communities become a society where they can prospers and live normal lives.

Harsh realities . . . CONT`D FROM PAGE 16



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#TrashArtArtist transforms old thrown away stuff into amazing art

Facebook faces user count declines as it prioritizes well-being

#REPORTERBOOK

Los Angeles-based surrealist Alexandra Dillon brings back to life things that people throw away in the most charming way. Dillon scavenges through worn out paintbrushes and other common objects to use them as canvases for portraits of imaginary people.

"My characters come to me the way [they do to] novelists," Dillon told art and photography website Bored Panda. "They show up and tell me who they are." The artist does not start with a specific idea. "I never quite know who will show up," Dillon said. She allows the "soul" of a particular object to "shape" its face. Because of that, her characters range from a mysterious lady on a cleaver to a shady guy on a paintbrush.

"I work on each piece over the course of several days," Dillon said. "They often change and grow into themselves more fully. When I have found the emotion and personality of a character, I know I'm finished."

The artist said she loves making these small portraits. "It's like meeting a new friend every day. I get to paint faces and conjure character in a way that is more fun than just working on a canvas." On the right are some Dillon's works.

(Bored Panda)

Facebook is putting its short-term money where its mouth is, reducing the presence of viral videos in an effort to boost well-being of users of its site. In Facebook’s Q4 2017 earnings report this week CEO Mark Zuckerberg announced that “Already last quarter, we made changes to show fewer viral videos to make sure people’s time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day.”

That is a reduction of roughly 2.14 minutes per day per user, given that Facebook has more than billion users now. Zuckerberg later said that is a reduction of total time spent on Facebook by five percent.

This showed up as a reduction from 185 million to 184 million daily active users in the US and Canada region. That is the first time Facebook’s ever reported a user count decline in any market, and it is in the one where it earns the most from ads. Facebook earned an average revenue per user of USD 26.76 in the region compared to a global average of USD 6.18.

What happened? The viral video changes and other prioritization of well-being over time spent contributed to a reduction of 700,000 daily active users in the US and Canada region. Facebook’s CFO David Wehner says he believes this is a one-time decline and not a trend. That could depend on how many time-reducing changes Facebook is willing to make, however.

(Tech Crunch)



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#REPORTERBOOK#ThisWeekInHistory

According to a report that was published on Wednesday, Instagram is working on a feature that will allow users to communicate with each other via a video chat. The icon to initiate this will only appear if the user is already engaged in an active chat with the member who will be participating in the video chat. If an Instagram user does not accept a request for a regular chat, the icon for video will not appear, and no video chat will be possible.

The report adds that the UI for Instagram video calls has not leaked since the entire package is still under development. The launch of Instagram video chat is still a few months away, and when it does take place it will be enabled for both the iOS and Android versions of the app.

Instagram refuses to confirm that video chats are coming. A spokesman for the app said, "We don’t comment on rumors and speculation." Last summer, Instagram gave users the ability to reply to a friend or family member's Story by creating a photo or video in response. Still, that is different than a video chat, and we would expect that most Instagram users would welcome the opportunity to communicate with other members through the use of real-time video.

(Phone Arena)

Microsoft has released a new version of Office 2016 for Mac, introducing new online features that bring it closer in line with the cloud-first Office 365.

Microsoft Word, Excel and PowerPoint now feature automatic saving for documents stored in the cloud – a feature that could stop you losing hours of work to an accidentally closed window or system crash.

Worried about accidentally deleting a chunk of your document and having the original overwritten? Office's upgraded Version History tool shows a list of changes and lets you roll back to an earlier version.

Word, Excel and PowerPoint now offer live previews when you are working on a shared document. Flag icons show you where they are working (much like in Google Docs) and you can see what they are typing in real time.

Each app has received its own updates as well. PowerPoint will highlight slides that have changed since you last saw them so colleagues cannot slip in sneaky edits without you noticing, and Excel has a host of new charts and functions.

Most interestingly, Outlook now integrates more closely with Google services, letting you manage your calendar and contacts within the app.

Microsoft Office 2016 is the latest version of Office available as a one-off purchase. When Office 2019 is released later this year, Office 2016 users will not get it automatically; they will have to pay again if they want to upgrade.

(Tech Radar)

in formation at



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The Reporter, February 3, 2018 Vol. XXII No. 1117 |25SOCIETY

By Jane Wharton

A huge smile lights up Aberu Hirpa’s face as she drinks clean water from a new village spring.

For the eight-year-old, the few drops offer a revolutionary change to her life.

However, they are also symbolic of a new era for Ethiopia and the plan to bring urbanization to the countryside.

Aberu lives just outside Babich, one of 8,000 new towns the government hopes to create to cater for the population boom.

As well as improved schools, roads and health facilities, the town in Oromia Regional State is benefiting from a new water project.

Before, the 12,300 town residents had to wait for hours in a line for water from the single 50-year-old spring.

Women and children in the surrounding hills had to walk for up to five hours a day to fill their heavy jerrycans with polluted water from rivers and puddles.

Cholera, dysentery and other waterborne illness were rife and death not uncommon in the region.

Now, however, the charity Water Aid has nearly completed its ambitious three-year-project which will bring almost 20 liters of fresh water into the area per second.

Water engineer Afework Tadesse said: “Water is life. To live a healthy and good life you need water. Without access to water, times are very difficult.

“Without a good supply, people are not healthy because of the diseases they get from dirty water. They waste a lot of time walking to get or waiting for water and very often this causes children to miss school.

“Ethiopia has enough water for our population and we have the technology to deliver water to people. We just need to deliver it and manage it better.”

Currently, the population of Ethiopia is well over 100 million and is growing at a rate of one person every 12 seconds. It is currently the 14th most populous country in the world and the second in Africa, behind Nigeria.

Ethiopia has a population growth rate of 3.02 percent per year. According to the UN, if it follows its current rate of growth, the population will double in the next generation, hitting 210 million by 2060.

The population of Addis Ababa is expected to double to over eight million in the next decade and an additional half a million homes are now needed.

Efforts to expand the capital resulted in widespread protests following concerns the masterplan expansion was a threat to Oromo farmers.

Therefore, the nation has now adopted a rural to urban transformation plan with the hope of transforming any town with more than 2,000 people.

One hour from Ambo, Babich is one such town benefiting from this urbanization. Over the last few years, the population has hit 12,300 and with an annual growth rate of 4.6 percent it is likely to double in about 16 years.

Before Water Aid came, the only source of water was one spring made by an NGO five decades ago.

As part of the 42million birr Toke-Kutaye Woreda and Babich Town WASH project, Water Aid has made a series of springs and wells to collect groundwater for the area.

The town is served by water from a 123-meter deep well and six springs. The water is fed through a series of underground pipes and ends up at a

reservoir in Babich, which holds 300,000 liters.

This water goes to the Health Centre, toilets at six schools and all the homes in the town. There is also a public toilet and shower block, which will collect human waste. When this organic matter breaks down during anaerobic digestion, it produces biogas. This will be used as fuel to cook and power a new restaurant.

On the outskirts of town, a further 400 households in the rural areas are helped. They have six new springs and, by the time the project is completed next month, the water will flow to 20 collection points in the hills and fields.

In total the project uses around 40km of underground pipes, providing 19.4 liters of water per second and with enough spare capacity for the town to double.

Aberu is one of the lucky children who is now using the fresh water at one of the rural collection points. Instead of walking for hours, she just has a ten-minute walk from home to the nearest filling station.

After she has filled her two small jerrycans, she carries them up a hill and back home through the teff fields to her parents and seven older siblings.

She said: “I fetch water two or three times a day and I would sometimes miss school because I was late for class. The water also wasn’t clean. I have never been ill

Water for advancement

Water for... page 28

Ethiopia has enough water for our population and we have the

technology to deliver water to

need to deliver it and manage it

better.



Will the Stability... page 31

Are oil prices... page 31

COMMENTARY +

VIEWPOINT +

In 2017, the world watched as Kenya endured one of the most complicated election cycles ever. In the hotly-contested initial August vote, the incumbent won. As expected, the opposition contested the result in court. Many saw merit in the complaints, but were nonetheless shocked when the Supreme Court ordered a re-run. Unhappy with the hurried process that ensued, and fuelled in part by an opposition boycott, however, voters largely avoided the repeat poll in October, which registered a paltry turnout of less than 40 percent.

The Kenya case throws up an interesting contradiction of modern foreign policy. Western diplomats have long preached the gospel of good governance in the developing world. But as these uncertain events unfolded last year – with the police killing 78 civilians and the electoral commission itself admitting it had made a shambles of the second vote – Western ambassadors kept urging Kenyans to recognize the importance of one particular idea.

That idea was not “rule of law”, “democracy” or “free, fair and credible” elections. It was “stability”.

More than 15 million voters refused to participate in the Kenyan election re-run. The process was widely seen as illegitimate and has likely sowed seeds of dissatisfaction that could undercut the ability of the ruling party to govern for the next five years. But despite

this, diplomats continue to parrot the cardinal importance of “stability”.

This was not the first or last time this word echoed around the continent in 2017. From Togo to Egypt, and from Chad to Gabon – all of which have seen popular protests come up against state power – the emphasis on stability has taken precedence over, say, political engagement. As Cameroon’s government gunned down protesters, arrested activists en masse, and shut down the Internet in Anglophone regions, for example, international actors urged a return to stability. As simmering discontent in Ethiopia led to online blackouts, heavy force and a state of emergency, Western diplomats supported the government in restoring the same.

It has even become the strategy taken in relation to Eritrea, nominally a pariah state, but now a lynchpin in Europe’s immigration policy. When it comes to Western engagement with Africa, stability is the mot du jour.

The Stability Doctrine

In the name of this “Stability Doctrine”, foreign governments tip the political balance in favor of existing power and the state. They bolster the short-term status quo, even if that means disregarding visible discontent and overlooking state abuses. They pick power over protesters, and privilege the interests of others over those of the citizens in the countries at

hand.

One of the main reasonings behind this approach is inseparable from the global march of neoliberalism. Foreign extraction from Africa is not new, but steady social and political conditions are a particular priority for today’s predominant form of exploitation. Corporations hungry for endless growth – more so than states looking to manage a balance of power – need predictable politics to operate.

Unlike some periods of history, the focus today is also notably short-termist. During the Cold War, African nations were seen as potential allies in long-term, ideological world-building projects. But today’s Stability Doctrine is focused only on the next few years. It has no interest in building institutions, embedding good governance, or understanding the underlying causes of threatened instability. It has little concern for the implications of its actions in the future – because by that time, it will be someone else’s problem.

Two things have changed in the last ten years that have led to this particular brand of the Stability Doctrine. Firstly, the rise of China, Turkey and other non-Western countries has threatened the West’s long-standing economic domination in Africa. This has given African elites – amongst the

Amidst rising discontent, foreign governments are increasingly asserting the importance of “stability”.

Nanjala Nyabola.

Will the Stability Doctrine in Africa destabilize the world?

The price at the pump for premium gasoline topped USD three per gallon in much of the United States over the past few weeks, which is surprising to consumers but not to analysts of the world’s oil markets. From its local low two years ago, the price of oil has more than doubled. As with any market, where you stand on this price increase depends on where you sit.

Higher oil prices buttress the fortunes of producers abroad and at home. The International Monetary Fund upgraded the GDP growth outlook of all six of the top ten oil producers that were shown separately in its 2018 forecast update, and the projected growth of world trade volumes was raised half a percentage point this year and next. Increased oil revenues improve the fiscal positions of most producing economies, and some have taken advantage of global investors’ hardier appetite to issue sovereign debt.

In the US, the five states with the largest gains in oil production this decade recorded employment growth of 2.75 percent in 2017, double the national average. Meanwhile, the number of oil rigs nationwide increased by roughly 50 percent.

At the same time, a doubling of energy costs takes a significant bite out of US households’ budgets, with energy costs directly accounting for about 6.5 percent of consumer spending. Even more problematic, this is a regressive tax, disproportionately draining lower-income households’ discretionary spending power. Last year, energy represented 8.7 percent of spending by the bottom 20 percent of households, compared to 4.9 percent for the top quintile. Moreover, the bottom group lacks net assets to tide them over bad outcomes.

This tax effect partly underlies the robust association between spikes in world oil prices and US economic downturns documented by James Hamilton of the University of California San Diego. Hamilton’s sobering results show that, over the long sweep of history, every recession but one was preceded by an increase in oil prices, and every oil market disruption but one was followed by a recession.

But that does not mean that we should hunker down and await a downturn. As already noted, the oil price rise has been associated with an uptick in growth, and,

whereas the events Hamilton examined related more to supply disruptions, the story of the past two years represents a combination of supply and demand forces.

Most important, over the course of this energy-price run-up, the dollar’s exchange rate depreciated by about 10 percent on a trade-weighted basis. With oil priced in dollars on a world market, this has had a material effect on the incentives of market participants on both blades of the supply-demand scissors.

A weaker dollar increases the purchasing power of US trading partners (the so-called Dornbusch effect, named for the late MIT economist Rudi Dornbusch), some of which spills over to increased demand for energy. Non-US oil producers sell a good denominated in dollars but consume a basket of dollar and non-dollar items. For them, a weaker US dollar lowers the price of exports relative to imports, and so they restrict supply. The scissors close with more demand and less supply, implying a higher dollar price of oil.

The decline in the dollar’s exchange rate seems to have gathered momentum, in part because the person who has his signature on US currency, Treasury Secretary Steve Mnuchin, seems unperturbed by its weakness. If it continues, will energy costs

M. Reinhart and Vincent Reinhart.

Are oil prices heading for another spike?



Restoring trust in ... page 28

OPINION

OPINION +

Urbanization has many advantages. By bringing people together physically, cities inspire innovation and fuel opportunity. They bring workers closer to jobs and facilitate the diffusion of arts and culture. But the benefits of urban life are often accompanied by costs.

Perhaps none feels more burdensome – and downright infuriating – than traffic congestion. Packed roads and bumper-to-bumper traffic mean time wasted and workdays shortened. And stationary vehicles still emit huge quantities of exhaust fumes, damaging the environment and human health.

Many governments have tried to develop policies to reduce traffic congestion by making it more expensive to get behind the wheel. Since 2003, London has successfully implemented a congestion charge, while Singapore wants to use GPS technology to police its own congestion-pricing strategy.

But such policies are harder to implement in poorer countries, where technological capabilities and infrastructure are often lacking. That is why developing countries typically seek more basic policies to improve traffic flows.

For example, in India, Delhi’s suffocating air pollution has led the government to experiment with “even-odd” policies: individuals can drive only on certain days, based on the numbers on their license plates. But this approach has had minimal impact. Gabriel Kreindler of the

Massachusetts Institute of Technology has shown that while the policy reduced congestion slightly, drivers circumvented the rule by switching to other vehicles. Vendors also started selling old plates so that drivers could change their tags as needed.

Sadly, India did not learn from other countries’ experience. Research by Lucas Davis of the University of California, Berkeley, had already shown that a similar policy, implemented in Mexico City in 1989, did not reduce air pollution – the intended goal – or significantly ease traffic congestion. As in Delhi, households in Mexico City found numerous ways to skirt the rules.

With these documented failures in mind, I worked with colleagues to study policies that might be more effective. With MIT’s Benjamin Olken and Kreindler, we examined the impact in Jakarta, Indonesia, of the widespread policy of high-occupancy vehicle (HOV) restrictions, which limit travel based on the number of passengers in a car.

Jakarta has some of the worst traffic gridlock in the world. Since the early 1990s, Jakarta’s government has sought to improve traffic flows with a rule that private cars driven during rush hours in the city’s central business district must contain three or more passengers. Just about everyone despised this “three-in-one” policy, and people often complained that it created further inconvenience, without reducing time spent on the road.

Our research sought to quantify the policy’s true impact.

In defending the view that the policy was onerous and ineffective, drivers often pointed to an informal business of enlisting “professional” passengers. These “jockeys” would wait near the entry points of Jakarta’s three-in-one roads, and, for about 15,000 rupiah (USD 1.10), accompany drivers so their vehicle would be in compliance. Lone drivers in need of two additional passengers could hire a mother and baby. According to the policy’s opponents, what looked like carpooling was an evasion of it.

Eventually, the Jakarta government sided with the policy’s naysayers, announcing in March 2016 that the rules would be suspended indefinitely.

For researchers, this created a golden opportunity to measure the impact of a policy before its adoption and immediately after its repeal. To do that, we queried a Google Maps interface every ten minutes, 24 hours a day. With this real-time, crowd-sourced traffic data for each route previously under restriction, we were able to ascertain what happened to traffic flows after the policy was suspended.

The results were striking. Despite what drivers – and eventually the government – believed, the three-in-one policy was highly effective in reducing congestion.

Efforts to reduce urban

pollution that comes with it, have not always gone well, especially in the world’s poorer cities. But an approach implemented in Jakarta showed promise – that is, until the government, failing to examine the evidence, suspended it in the face of drivers’ wrath, writes Rema Hanna.

best for megacities?

As is often the case, informal conversations at the World Economic Forum’s just-completed annual meeting in Davos, Switzerland, inevitably alluded to the Edelman Trust Barometer, an annual poll of public confidence in business, media, government, and nongovernmental organizations. After all, Davos participants are leaders in these fields, and the results of the most recent poll are chastening.

In 2017, 71 percent of respondents globally considered government officials not credible or only somewhat credible, and 63 percent of respondents had the same dismal view of CEOs. This should not come as a surprise. Across dozens of countries, people have been airing their grievances against the status quo through social media, protests, consumer choice, and the ballot box.

Societies and economies pay a high price when citizens do not have faith in public- and private-sector leaders. Distrust leads to political polarization, widespread anxiety about the future, and uncertainty in domestic affairs and international relations. And these symptoms then reinforce the loss of trust, creating a vicious circle.

Clearly, citizens should be able to expect more from their leaders. To that end, as the deans of the Harvard Kennedy School and the Harvard Business School, respectively, we strive to impart the values of effective leadership to our students. We teach them that leadership

is not about opportunism or winning at any cost. It is about advancing the common good and making a difference in the world.

The most effective business leaders care about more than quarterly profits or beating the competition, just as the most effective government leaders care about more than winning the next election or grabbing headlines. In any domain, an effective leader looks out for everyone he or she serves, and adheres to a set of core values.

If people in positions of power aspire to this vision of principled leadership – at work and in their own lives – trust in businesses, governments, and civic institutions can be restored around the world. But they will also need to consider the root causes of the problem.

First and foremost, people simply do not trust their leaders always to speak honestly. To change that, the effective leader must show that he or she values truth and evidence above all else. By valuing truth, one forces oneself to make decisions based on sound reasons rather than self-interest. When tempted by self-interest, aspiring leaders should emulate figures known for their honesty and truth-telling, such as Warren Buffett or Winston Churchill.

Beyond honesty, effective leadership also requires respect for individuals, regardless of their demographic background or past experiences. People

understandably become disillusioned when their government or the business community doesn’t seem to value them, especially when such treatments stems from their gender, race, religion, sexual identity, or national origin. To prevent that from happening, public- and private-sector leaders should focus on building diverse and inclusive organizations, as Tim Cook has done since becoming the CEO of Apple.

Moreover, respecting people means listening to their viewpoints and not talking past them, even when you disagree. Thus, an effective leader is one who promotes free speech, engages in civil discourse, and remains open to compromise. Even when a decision doesn’t go someone’s way, that person will want – and deserves – to be heard.

The challenge for leaders, then, is to find ways to work with people who hold different opinions without abandoning their own core principles. One model for this style of leadership is Robert Zimmer, the president of the University of Chicago, who advocates for free and open speech even when the ideas being espoused are unpopular or distasteful. As Zimmer wrote in the University of Chicago Magazine in 2016, “Universities cannot be viewed as a sanctuary for comfort but rather as a crucible for confronting ideas.”

street protests and online activism in recent years have already been indicating: the public’s trust in government and private institutions is dismally low. To change that, political, business, and civil-society leaders need to demonstrate honest, principled leadership that

write Douglas Elmendorf and Nitin Nohria.

Restoring trust in leadership


28| The Reporter, February 3, 2018 Vol. XXII No. 1117Diaspora CORNER Our data showed that traffic congestion

worsened significantly after the policy was rescinded. On Jakarta’s regulated roads, average speeds fell from 28 kilometers (17.4 miles) per hour to 19 kilometers per hour during the morning rush, and from 21 kilometers per hour to 11 kilometers per hour during the evening rush.

Moreover, we found increases in traffic at times of day that were not previously regulated, and more vehicles appearing on non-regulated roads in general. Thus, suspending the three-in-one policy produced more traffic and less carpooling.

These findings have implications for traffic-control measures in other cities. For example, our data imply that Jakarta’s HOV restrictions were more effective than London’s congestion pricing or Delhi’s even-odd policy. The findings also suggest that while Jakarta’s “jockeys” were a visible presence, they did not weaken the effect of the policy.

As megacities continue to emerge in many developing countries, strategies like Jakarta’s three-in-one approach can help reduce gridlock. But they can succeed in delivering benefits only if they are crafted wisely, enforced effectively, and studied well. People will always seek to circumvent regulations, but policymakers must consider all the evidence before they decide to take the off-ramp.

Ed.’s Note: Rema Hanna is Co-Director of the Evidence for Policy Design research program at Harvard University. The article was provided to The Reporter by Project Syndicate: the world’s pre-eminent source of original op-ed commentaries. Project Syndicate provides incisive perspectives on our changing world by those who are shaping its politics, economics, science, and culture. The views expressed in this article do not necessarily reflect the views of The Reporter.

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Lastly, effective leadership means delivering excellent and responsive service to one’s customers or constituents, as Michael Bloomberg did as the mayor of New York. When people do not feel that their leaders are working in their interest or addressing genuine needs, they lose confidence. To restore it, government officials must build and defend robust civic institutions and political processes that serve the public interest; and businesses must ensure that they are working effectively for all of their stakeholders.

Accordingly, public- and private-sector leaders should look for ways to help those who feel frustrated and left behind economically or socially. One good model is Year Up, a fast-growing nonprofit organization founded by Harvard Business School graduate Gerald Chertavian in 2000. Year Up helps disadvantaged urban youth acquire the skills they will need for higher education and professional careers. Another good model is Girls Who Code, which Harvard

Kennedy School graduate Reshma Saujani founded in 2012 to address the tech sector’s gender gap.

The success of these programs shows that when leaders focus on creating opportunities for people who have not been treated fairly, they can build more cohesive societies and equip more people to contribute productively to the economy. Looking ahead, governments, businesses, and civil-society organizations must put values-driven leadership at the heart of their missions.

Ed.’s Note: Douglas Elmendorf is Dean and Professor of Public Policy at Harvard Kennedy School. Nitin Nohria is Dean at Harvard Business School. The article was provided to The Reporter by Project Syndicate: the world’s pre-eminent source of original op-ed commentaries. Project Syndicate provides incisive perspectives on our changing world by those who are shaping its politics, economics, science, and culture. The views expressed in this article do not necessarily reflect the views of The Reporter.

Restoring trust in . . .

from drinking water but some of my brothers have been.”

Her neighbors echoed the problem of poor quality water. Angatu Degefa, 57, said members of her family were regularly ill.

“Thanks to God for this project. Now waterborne diseases are not affecting my children and grandchildren.

“We have seen and faced a lot of challenges because the water was not clean. Sometimes we had to drink from puddles or the water had fungus. We got sick. The children had amoeba, cholera, giardia – they were sick all the time.

“Before my children had to fetch water but now they have more time to go to school and study. They will have a better life because of this.”

A recent study by Water Aid found that only half of healthcare facilities in low and middle-income countries have access to piped water. Around 33 percent do not have good toilets while 39 percent do not have facilities for washing hands with soap.

Every minute, a newborn dies from infections caused by a lack of safe water

and an unclean environment.

The Health Center is Babich has piped water and a back-up supply and is rapidly becoming a leading center in the area. It treats around 600 patients per month and delivers an average of 424 babies each year.

When word of the Water Aid project first emerged, people and businesses began moving to Babich.

Ethiopia’s new towns and growing population need good water.

In 2010, the United Nations General Assembly acknowledged that clean drinking water and sanitation were essential to the realization of all human rights.

Unlike other African nations, Ethiopia actually has both the water capacity and the technology. However many more projects like this are needed to ensure “rural urbanization” is a success.

Afework said: “Once you have water, you have an advanced life.”

Ed.’s Note: Jane Wharton is a volunteer at The Reporter.

Water for . . .

its impact on developing countriesBy Samuel Alemu

In a 3-2 vote, the FCC (The US Federal Communications Commission) rolled back the 2015 Obama-era net-neutrality rules. What does it mean for you?

Simply put, net-neutrality means regulating internet service providers (ISPs) like a utility: water, and electricity. Essential services like these are often expensive to build and lack incentive to upgrade, creating natural monopolies that require regulation. The regulation would ensure equal access for all consumers to the internet without the ISPs prioritizing what is sent through those pipes at what speeds or in what direction.

ISPs own and maintain the infrastructure that provide internet service to consumers, and some of these consumers use disproportionately more bandwidth and data. Since ISPs cannot discriminate too much between consumers, my mom who checks her email once a week or a month pays the same price for internet service as my video gamer son who is playing online video-games. Less net-neutrality would allow ISPs to allocate price proportionate to usage, but will also open the door to other practices that will be discussed later.

Since ISPs have to swallow many usage costs, they are not incentivized to innovate in their field or strengthen their internet delivery. Some also claim that net-neutrality kills competition in this sense, making it extremely costly to create an effective ISP.

Without regulations, ISPs can control and prioritize what information comes to a consumer and what information a consumer sends to the internet. In theory, they will have total power to restrict data from certain sources under the argument that the source is causing an unnecessary stress to the network, a claim that is nearly impossible to disprove. ISPs can also prioritize traffic for websites or services that they own a stake in.

With a less neutral internet, ISPs will be able to collect, scrutinize, and sell this information. Although all personal information will be removed, many studies have shown that is very easy to pinpoint the identity of someone given their “anonymous” web history.

Without net-neutrality in place, giant web-based corporations like YouTube and Netflix can pay extra money to prioritize their data through the pipelines and this slow down the data of emerging competition who cannot yet afford to pay the same price.

Net-neutrality effectively allows anyone to express their opinion on the internet. Without net-neutrality, it will be difficult to monitor the existence of freedom of speech; views, websites, or content that stands at odds with ISPs or some of their biggest customers (large corporations, the government) could theoretically be censored without consumers even knowing.

If you are a business, may have to pay ISPs to keep your website accessible and operating at a satisfactory quality. This will make it harder to launch and grow

a new business and to compete with established companies.

A change in net neutrality rules may be a serious impediment to startups’ ability to grow and compete. For small businesses, the new and most important factor in marketing decisions may become bandwidth. High costs may start pushing these businesses towards offline marketing methods.

The following are the likely consequences startups from places in Ethiopia or Africa will face in the event that net neutrality is completely removed.

Entering the United States market via the internet will be difficult for businesses from developing nations. Given the “America First” mentality, it is very likely that ISPs will be encouraged to prioritize American content over international content. The startups of developing nations, who do not have the same financial resources and funds available to American startups, will have to pay the same expenses as their American competitors.

Why is this a big deal? Well, the United States online and ecommerce marketing channel is the most robust and most profitable in the world. The biggest names in all online industries must make their names in the US market, whether they are foreign or local to the US. The best online services, like the free telecommunication services of Viber, Imo, Skype, Google Hangouts, WhatsApp etc., will obviously continue doing business in the US market even though they will incur the highest costs from ISPs. These costs will not be merely swallowed by these companies; they will be passed on to consumers, and not just consumers in the United States. The cost of net neutrality repeal will be passed on to ALL consumers internationally, making cutting-edge technology and essential telecommunication even more expensive and inaccessible to startups from developing countries. Thus, the repeal of US net neutrality will increase costs to internet consumers and businesses alike all around the world and hamper free communication.

Net neutrality repeals will also result in a less competitive online market. Businesses will not be able to topple these industry leaders or overcome these ISP’s monopolistic practices unless their own government bans any competition from US firms (think Alibaba and China). Developing nations do not have the resources or consumer population of a China or India, and will struggle to make a name for themselves without constructing some other competition barrier, which brings us to our next point:

Developing nations will be forced to enact similar anti-net neutrality policies as well, resulting in an even more restrictive, regulated, and ultimately toxic environment for their online startups and business.

All in all, the repeal of US net neutrality policies will have lasting implications on the global online market. The ability for any online startups to flourish will be significantly diminished; the likelihood for such startups in developing countries will be close to impossible.


The Reporter, February 3, 2018 Vol. XXII No. 1117 |29 CONT`D FROM PAGE 10

CONT`D FROM PAGE 10

International Office of Migration Displacement Tracking Matrix1 conducted in November, 2017 indicates that around one million persons have been displaced.

From this, nearly 700,000 are recorded in 2017 alone, still with a significant number registered after September 2017.

These displaced people are currently living in 400 locations across Oromia, Ethiopian Somali and Harari Regions, as well as Addis Ababa and Dire Dawa cities.

On the other hand, 637,000, almost 60 percent of the total displaced people are sheltered in camps. From this, the 68,000 are Ethiopian Somalis which are displaced between 2015 to end 0f 2017, according to the report.

The same assessment indicates that as of 16 January 2018, some 110,000 households are in need of urgent support. Out of this, more than 58,000 households are residing in Oromia Regional State while the 41,000 are from Ethiopian Somali.

At least 93,000 conflict-displaced school-aged children in Oromia and Ethiopian Somali Regions were forced to interrupt their education due to the displacement.

More than 1,500 children in Oromia and Ethiopian Somali regions are also reported to have been separated from their families.

Most of the assessed districts affected by the conflict in the two regions confirmed cases of sexual violence, psychosocial distress and domestic violence, reads the report.

It is to be recalled that, last month, the federal government has allocated half a billion birr to rehabilitate close to 500,000 displaced people in the two regions.

Particularly, the Oromia Regional State has already begun implementing its rehabilitation program for 86,000 people with a plan to settle them across 12 towns.

As far as assistant from the international community is concerned, the report reveals that to address gaps in assistance close to 29 million dollars is required from donor, in next month. Out of this, 15 million dollars is to provide water trucking to some 700,000 people.

UN says million . . .

on and that the leadership of AU is not worried about being spied on as it is the wishes of all actors that Africans have to know about every activity in the facility that costs USD 200 million to build.

The Paris-based publication was said to have used anonymous sources that allegedly told the paper that the servers

were checked by security experts from Algeria and found the entire building was equipped with microphones installed under its desks.

“I would be happy if we had money to build this house, but even then, if you bring people to build it for you, they may still spy on you,” Kagame said. “This may be an attempt to put the Chinese

who built the house in a bad light.”

The current African Union commission chairperson, Moussa Faki Mahamat echoed the sentiment of the chair. “I have never seen any issue in the building where I work on a daily basis,” he said.

In a hastily called press conference,

Kuang Weilin, the Chinese ambassador

to the African Union called the

accusation false and described the

building “as a gift of friendship to the

African people.” He said, his nation is

still pondering its options on whether to

sue the publication.

UN says million . . .



Economics. She is a graduate of Wageningen university from which she obtained her Masters and PhD degrees. Her passions include reading

passion. She can be reached for comments at [email protected].

30|

YOUR MINDBy Tsion Taye

CONT`D FROM PAGE 18

CONT`D FROM PAGE 18

supported by a growing industrial sector and large investments from China. Now, it is poised to take over as the economic powerhouse of East Africa. Yet the urban youth unemployment rate stands at 23.3 percent. Left unchecked, this situation could easily end up fueling ethnic conflict and political turmoil.

Another, related challenge concerns resource mobilization: countries need funds to invest in infrastructure, human capital, and the creation of trade and digital links within and beyond Africa. The AfDB report estimates that, for infrastructure investment alone, the continent needs some USD 170 billion per year, which is USD 100 billion more than is currently available. As it stands, Africa receives a total of about USD 60 billion in foreign direct investment each year.

To close the gap, African governments must attract more money. That will require establishing effective regulatory structures that facilitate long-term borrowing and repayment, while ensuring that lenders do not exploit borrowers, as has occurred everywhere from rural India to the United States mortgage market.

The challenges are daunting, to say the least. But there are lessons that African countries can learn from one another. For example, Ghana’s smooth transfer of power after the December 2016 election set a positive democratic example. Nigeria’s Lagos State and Tanzania have done a good job of mobilizing internal resources for development. Add to that the emergence of an indigenous intelligentsia in the region, exemplified by organizations like the AfDB, and it seems that Africa’s moment may have arrived at last.

Ed.’s Note: Kaushik Basu, former Chief Economist of the World Bank, is Professor of Economics at Cornell University and Nonresident Senior Fellow at the Brookings Institution. The article was provided to The Reporter by Project Syndicate: the world’s pre-eminent source of original op-ed commentaries. Project Syndicate provides incisive perspectives on our changing world by those who are shaping its politics, economics, science, and culture. The views expressed in this article do not necessarily reflect the views of The Reporter.

Africa’s . . .

Africa’s 2018 elections . . .things will change have put pressure on President Emmerson Mnangagwa to respond. He has already begun to do so, promising economic reform and inviting external observers for the elections.

In the vote, the heavily-divided opposition will find it difficult to challenge ZANU-PF, even on a level playing field. But for many Zimbabweans, it is the credibility of the elections that will be key. Much of this will rest on how neutral the Electoral Commission and judiciary prove themselves to be and how the security services behave. If the vote is not considered credible, Zimbabweans will prove less patient than they were under the Old Man.

Cameroon will be another test case. After years of relative economic success and political stasis, the country is coming under stress. The government’s apparent determination to quash dissent, not only in the Anglophone south-west but in the Francophone east, bodes ill for President Paul Biya’s chances of survival, whether he wins the October elections or not. In fact, an obviously manipulated electoral victory is more likely to unleash popular anger that will prove hard to contain.

The ongoing conflict in South Sudan makes it hard to see how elections can be held at all. Even if they are, it is difficult to imagine how they will produce an outcome that would have any impact on the balance between the warring factions that currently contest the country.

The most critical elections for the stability of the region will be those in the DRC. Originally scheduled for 2016, President Joseph Kabila had them postponed to December 2017, and then to December 2018. If they still do not take place, the risk of descent into chaos will get continue to rise.

Holding elections in the DRC is

never easy. The country is vast, communications poor, and the political scene fragmented. But time is running out for Kabila to hold in any way credible elections, and the people’s patience is will not last beyond the end of the year. What would follow is anyone’s guess, but a continuation of Kabila’s government is becoming increasingly less likely. For Kabila therefore, the choice is to allow elections and step down, or risk losing everything.

Nervous autocrats

Elections are insufficient in and of themselves. As Tunisia and Egypt before the Arab Spring showed, electoral democracy does not necessarily mean growth and harmony. But providing a channel for people to express their feelings and air their views can make tackling these challenges easier in the long run.

Indeed, the risk of unrest in Africa is highest in countries where elections do not reflect the popular will and where social inequality, political oppression and public unease are all mounting. Without mechanisms such as open elections to allow expression and participation, the risk of a political explosion rises every year. In some African countries, nervous autocrats increasingly resemble rich survivors from a luxury yacht, alone and adrift on a tattered raft in stormy seas. An African Spring tide could easily sweep them all away.

Ed.’s Note: Nick Westcott is the Director of the Royal African Society. He has been involved with Africa for over 40 years as both an academic and diplomat with the UK government. The article first appeared on africanarguments.org. The views expressed in this article do not necessarily reflect the views of The Reporter.

The downside of being a “Facebooker”

This morning I came across an article on MSN entitled ‘Why I quit Facebook’ which got me thinking about my own reasons for quitting Facebook. It’s been almost five years since I stopped using Facebook for reasons which quite surprisingly are the same as those listed in the MSN article. The lady who wrote the article specifies five reasons which I would like to share with you as follows: ‘I have fewer reasons to procrastinate’, ‘I don’t care what other people are up to’, and ‘the people who matter still get in touch’, ‘the invitations I get are more sincere’ and ‘I feel free to live in the moment’. I remember the feeling of freedom that I felt when quitting Facebook. There was no longer anyone I will need to prove my life decisions to. I was free to live my life the way I wanted to without seeking the approval of my “friends”. Whatever life decision I made was for my own happiness and not for the approval of others. Just like the author of the MSN article indicated, I no longer cared about what others were up to. I remember the feeling of wanting to ‘miss my contacts’. When you are on Facebook, I believe it is really difficult to miss anyone as all your contacts were a mere mouse click away. When on Facebook, I never felt the urge to call up one of my “friends” to catch up over coffee or lunch.

One of the most important arguments that people put forward against quitting Facebook is that one will miss out on the latest news and will also lose their contacts if unconnected. I simply disagree with these arguments. If one is really concerned about the latest news developments, all he or she needs to do is to visit the websites of news agencies. Nowadays, one needs not buy a newspaper to follow the news. And besides, what is posted on Facebook is rarely a filtered news. Rumors and facts are both equally presented as news to its audience. And for the second argument, if one is really concerned about losing their contacts, he or she can easily filter out those contacts that really do matter and get phone, email, skype, WhatsApp or other addresses of the latter.

I believe that most of you would agree with me on the fact that Facebook is a quite addictive “socialization” tool. The author of the MSN article describes her typical day as follows: “My typical working day used to go a little something like this: coffee, check emails, start writing, check Facebook, answer the phone, check Instagram, continue writing, check Facebook…”. The addiction gets to the point that a considerable amount of work time is spent checking Facebook updates. My experience after quitting Facebook is that I became so much less distracted during work, and if I really wanted a distraction, I would either read real news by visiting real news websites or I would actually socialize in the true sense with my work mates over coffee. For me, Facebook does not really help us socialize in the true sense. I even believe that we lose human intimacy and touch the more we get attached to Facebook. I believe that our ability to truly understand each other is limited if our main means of “socializing” is Facebook. For me, Facebook presents a painted picture of our lives and not its real image. The constant comparisons we subject ourselves to and all the attempts that we do to measure up to the standards others put for us creates a form of social stress that we are not able to come out from easily.

My whole argument here is not that people need to stop using Facebook altogether. The point I want to make is that, if it reaches the point that the addiction reduces our ability to socialize in the true sense, if it limits our ability to concentrate on our work and limits our work efficiency, if it makes us constantly measure ourselves against the standards put by others, and if we constantly feel the need to prove ourselves to others, I would say that maybe it is time to reconsider our daily use of Facebook.



Bits PiecesBy Leyou Tameru

@anchihoye

&

Ed.’s Note: Leyou Tameru is a graduate of Georgetown and Addis Ababa University Law schools, specializing in International Legal Studies. Born and raised in Addis Ababa, she seeks to understand

the impact of economic, political and social issues on everyday lives. She can be reached at @anchihoye

CONT`D FROM PAGE 26

CONT`D FROM PAGE 26

key beneficiaries of “stability” – more leverage and led Western policymakers, afraid of losing their patronage networks, to weaken their good governance agenda.

At the same time, the 2007/8 global economic collapse has made opportunities to extract from Africa all the more important. African markets, labor and natural resources have never been more integral to resolving urgent economic challenges in other parts of the world.

Delay, defer, deny

What’s wrong with stability uber alles? First and foremost, it puts a risky mortgage on the future of Africa. It is an alliance between outsiders and African elites whose mantra is eat now and delay, defer or deny the consequences.

The Stability Doctrine treats Africa as a place to make as much money as quickly as possible, not a place where people live, love and exist. It ensures African countries continue to play a position in the periphery of global politics, providing raw materials, markets, and an acquiescent labor force for multinational corporations.

The focus on stability treats the tremendous effort and risk that African activists and politicians take to shift the political discourse as secondary to the interests of foreign governments. It sees widespread demands for greater justice, democracy and accountability as less important than holding things steady – at least at the levels important for foreign business.

The reality, however, is that while outsiders are tipping the scales in favor of wealth and the status quo in the corridors of power, African countries are growing increasingly inhospitable for many of their citizens, particularly the youth. In 2017, thousands died attempting to cross the Mediterranean, while the African Union estimates that another 200,000 are currently zigzagging across the Sahara chasing after the same dream.

They leave partly because of the collateral damage of “stability” or profiteering over all else. They leave because there is no land to work – much of it sold off or unusable thanks to the ravages of climate change. They leave because their educations are worthless as privatization has eaten away at public universities. They leave because their leaders spend more on weapons to maintain power than

they do on healthcare. They leave because police officers show up at their doorstep and summarily arrest, detain or kill anyone who dares to hold a political opinion that threatens the country’s “stability”.

Stability for whom? For how long?

In 2018, things in many countries in Africa are probably going to get worse before they get better. Millions of young people will come of age in countries that have little room for them.

In Kenya, the authority of the executive elected under suspect conditions will probably be tested more than ever. In Cameroon and Ethiopia, protests will likely continue and may escalate. Meanwhile, in Gabon, the two Congos, Equatorial Guinea, Eritrea, Sudan, Uganda, Rwanda and beyond, disillusionment will continue to swell even while African and Western elites hold fast on the promise, and profit, of short-term stability.

The point is not that instability is the answer. Rather, it is that when confronted with the Stability Doctrine, we must ask “stability for whom?”, “stability to what end?” and “stability for how long?”.

The Stability Doctrine as it is shuts African citizens out of their politics, lest they rock the boat, and leaves them abandoned. That may pave the way for predictable market conditions that benefit international corporations and African elites today and maybe even tomorrow. But what of everyone else? And what of the day after?

The Stability Doctrine is an imposter usurping a vacuum left by the slow erosion of ideological (versus commercialized) Pan Africanism. In 2018 and beyond, it’s important to re-assert that Africa is not just an idea or a market that must remain open for business at all costs. Enough Stability Doctrine – it’s time for a foreign policy ideology that asserts the dignity and personhood of African people over all else.

Ed.’s Note: Nanjala Nyabola is a Kenyan writer, humanitarian advocate and political analyst, currently based in Nairobi, Kenya. The article first appeared on africanarguments.org. The views expressed in this article do not necessarily reflect the views of The Reporter. Follow her on Twitter at @Nanjala1.

Will the Stability . . .

The decline in the dollar’s exchange rate seems to have gathered momentum, in part because the person who has his signature on US currency, Treasury Secretary Steve Mnuchin, seems unperturbed by its weakness. If it continues, could the result be a spike in energy costs? Our tentative answer is no, for three reasons.

First, the dollar has depreciated against most currencies, but less so against those of important emerging-market partners, such as China.

Second, some of the increase in oil prices is apparently due to supply restraint by the members of the Organization of the Petroleum Exporting Countries and their friends of convenience (particularly Russia). Not accidently, oil prices started their ascent with the production curtailment by “OPEC+” at the end of 2016, and now seem high compared to other industrial commodities.

Further dollar depreciation eroding supply and enhancing demand might just change that. Saudi Arabia dearly wants a stable, balanced market for petroleum in advance of the sale of a five percent stake in Saudi Aramco, the national oil company. For a healthy market consistent with longer-run capital investment, an oil price that is too high can be as challenging as one that is too low. In such circumstances, officials in OPEC+ may well jump on the chance to expand supply while maintaining prices in their current channel.

Third, when it comes to supply, do not look exclusively abroad. The increase in US production, thanks to technological advances in shale oil

production, has been breathtaking.

The US is on track to pump more oil this year than at any time in its history. Nonetheless, domestic producers have been moderate thus far in ramping up supply, reportedly owing to their equity owners’ desire for more profit and less capital spending. But production technology advances, and higher prices beckon.

On balance, it is likely that the economy-wide effects of the energy shock, though unpleasant, will not derail growth. We are tentative, however, because commodity markets are volatile. In recent work with Christopher Trebesch of the Kiel Institute, we counted more than twice as many boom-bust cycles in commodity prices than in capital flows since 1820. The global economy looks to be riding a roller coaster.

Ed.’s Note: Carmen M. Reinhart is Professor of the International Financial System at Harvard University’s Kennedy School of Government. Vincent Reinhart is Chief Economist and Investment Strategist at Standish Mellon Asset Management. The article was provided to The Reporter by Project Syndicate: the world’s pre-eminent source of original op-ed commentaries. Project Syndicate provides incisive perspectives on our changing world by those who are shaping its politics, economics, science, and culture. The views expressed in this article the authors’ own and do not necessarily reflect the views of The Reporter or the institution they are affiliated with.

Are oil prices . . .

For the love of screens

I dropped my phone and completely shattered the screen a few days ago and it has been quite the experience trying to navigate life without a phone. I am usually highly dependent of my phone as I work remotely, and my phone is my link to my colleagues.

It is interesting how just a few years ago, smartphones and tablets did not even exist. If one wanted to check her email, she would have to go to a computer that has internet. This usually meant having to go the one’s office. But now, one can literally stay in the convenience of her bed, as I often do, and do all of the work she needs to. Imagine the inconvenience we all face, myself included, when our phones are not working.

Logically, I immediately went to the phone shops to get my phone repaired and to my surprise the price of fixing my phone, i.e. changing the screen, is just a few thousand birr short of buying a brand new phone. Needless to say I was flabbergasted. I started thinking about how dependent most of us are on screens, whether phones, tablets, computers or television. And the companies that produce those screens are well aware of our dependence.

Clearly I am not the only person with a cracked phone screen complaining about how costly it is to repair it. So, I did a bit of digging. I found data that shows that Americans alone spent USD 23.5 billion replacing broken smartphones in 2013. In fact the 2014 study shows that damaged iPhones have cost Americans USD 10.7 billion since their introduction in 2007. That is an average of USD 1.5 billion a year. And yet, the costs keep rising. Not only because the number of phone users is growing, but because the phones that are in the market are also becoming more fragile.

The current trend for smart phones is to be made entirely of screens/glass with facial recognition software to provide more security for the phone owner. I do not disagree that these security measures are great; however they disguise a very costly and lucrative business model for phone manufacturers. When you have a phone, which has screens on both sides, one can only imagine that the chances of cracking ones screen doubles.

This is not a “unique” business model as other companies have done it, prime examples being Hewlett Packard printers with ink and Gillette razors with their razor blades. But I must say that the rising costs of screens for phones are becoming a little out of control. You can buy a brand new Samsung S6 phone for 530 USD and a screen for that same phone costs close to 150 USD, without the labor cost. Think about it, as easy as it is to drop and break screens, three phone screen replacements and you have bought a brand new phone. I guess this is why phone insurance schemes are so popular in other parts of the world.

Perhaps we should now start buying phones and other devices the same way we do cars. Whenever someone is looking to buy a car, in Addis at least, they look at how easy and how affordable it is to purchase spare parts for it in the event the car breaks down. In light of the spare parts cost for phones, maybe we should search repair costs before we buy our phones.


32| The Reporter, February 3, 2018 Vol. XXII No. 1117SNAPSHOTS

Summit conclusionThe 30th African Union (AU) summit concluded on Monday with a call for strengthening African

The Summit, which was held from January 22 to 29, underscored the need to eradicate corruption and poverty in the African content together with fast tracking the realization of

Paul Kagame, Rwandan President and incoming Chairman of the African Union, said in his closing remarks that the summit “was successful with major decisions that would go a long way in helping the continent achieve its short, medium and long term goals and prosperity of Africa.” The two-day session of the African Heads of State and Government also launched the Single African Air Transport Market (SAATM).


The Reporter, February 3, 2018 Vol. XXII No. 1117 |33SNAPSHOTS



US officeBox

C r o s s w o r d

Your Zodiacs (astrology-online.com)

ACROSS1. Shame6. Hairdo10. Not hard14. Hyrax15. Caribou16. River of Spain17. From the inside19. Period20. A Japanese feudal baron21. 59 in Roman numerals22. Labyrinth23. Master of ceremonies25. Doorkeeper26. Go on horseback30. Coming32. Relating to urine35. Competitor39. Casual eatery40. Spectator41. A reversion to the state43. Blight44. Unfurl46. Blackthorn47. Vice ___50. Spats

53. Decorative case54. A Buddhist temple55. Narcotic60. Big party61. In all63. Mimics64. Sleigh65. Fruit of the oak tree66. Where a bird lives67. Combustible pile68. VerseDOWN1. Corrosive2. ___ fide3. Against4. Appear5. Lofty nest6. American Dental Association7. Cut down8. Remedy9. African antelope10. Dressmaker11. A religion based on sorcery12. Immobilized13. Laser printer powder 18. French for “Name”

24. Islet25. Loosen, as laces26. Country bumpkin27. Colored part of an eye28. Platter29. Fanatic31. Covetousness33. Sporting venue34. Lion sound36. Absent Without Leave37. Roman emperor38. Tall woody plant42. Completely 43. Santa’s helper45. Rubbish47. A strict vegetarian48. French for “Storehouse”49. Governs51. Mist52. Lance54. Stinging insect56. Skin irritation57. Greeting at sea58. School session59. Sea eagle62. Lyric poem

3

6

Aries

Take a deep breath; there is going to be a chain of bad events soon enough. Who knows what it is about this time, but someone is going to get way too intense on your way too fast. It could be work, could be an old pal who wants that 25 dollars they loaned you three years ago and wants it back NOW.

Taurus

Admit it - you’ve been suffering someone’s stupidity too long.

get out of town like they’ve been threatening for months. Let your boss know that you really shouldn’t be working together anymore since the voice telling you to kill him has turned it up a notch. Whatever. Get the stone out of the shoe, the splinter

in the offender’s face.

Gemini

wronged and the person who did it will think they can get away with it again. Suffer no injustice this week under any circumstances. You are going to be your own judge, jury and executioner this week (and you always did look good in black) so stand up straight! Granted, some folks are going to not realize their transgression - so go easy on the few innocents, but splatter the blood of the unbelievers everywhere.

Cancer

Ever been to a poetry slam? Do you know about how people stand up and scream about giving birth to a poem? Changing their world by forcing it on yours? Know how stupid they look and sound? There’s a lesson in there. You’ve got stealth and guile; use them to your advantage. There are times to scream in someone’s face, and then there are times to just slip something in their coffee.

Leo

Been looking for an outlet lately? Pen and paper will do quite the trick. A ton of people think they aren’t writers, but they’ve never given it a shot. Everyone has a story to tell, and this is the

want off your chest, it could be a long-held secret that needs the light of day, it could just be an essay on how horoscopes by hacks always suck - whatever.

Virgo

busting out and shaking off the cobwebs has an appeal to it too. Hit a new club, talk to some new folks, kiss a stranger, whatever. If it doesn’t work out, you can fall right back into what you were doing before, right? Your sign feels a strong

pogo, just make sure you let that demon in your feet do the driving for at least a night.

Libra

Paranoia is cool, but you don’t wear it well. Yeah there are some things that have been kind of hanging on longer than you think they should - but let them go. If you really want to freak people out, it’s by forgiving them for an old transgression. (This means nothing for the new transgressions though.) Odds are the person(s) are too stupid to realize they were wrong anyway. Money sucks, as usual.

Scorpio

Winter really suits you, eh? That little extra surge of energy with the season makes the standard winter annoyances almost worthwhile. Make sure you put it to some good use. Lord knows you’ll hit a low sometime soon - so if there’s anything you can do to prepare, do it now. Heck, maybe it’s time to start shopping for all that canned food and bottled water you’re going to need when society collapses. Just a thought.

Sagittarius

OK, so you’ve been playing by the rules more than you’d like to lately. You don’t necessarily want to rob, but you would like to cut a corner or two in a mental or physical sense. Go for it. Make your plan, think about the options, and pick a path. If you’ve got the guts, then take a swing for the glory - it’s a hell of a lot more fun than sitting around waiting for the winds of justice to turn in your favor. Collect all your debts this week.

Capricorn

Staying in one place is fun, but it’s time to see some new skylines. Even if you just drive one town over, it can’t hurt. Even better, take this month to plan out some big trip... cross an ocean, jump the equator, whatever it takes. Dropping yourself down in a new set of surroundings is never a bad thing - it

about yourself. Isn’t there someplace you’d love to wake up to? Ever thought what it would be like to ride a gondola in Venice?

Aquarius

This week is probably a good time for some relaxed introspection. This year should be starting to take shape and you can make some informed decisions about what you want to happen in the next few months. We can all exert a hell

nothing but EXACTLY what you want, but temper it with an out of character dash of realism.

Pisces

Hmmm.... sniff, sniff you smell that? It smells suspiciously like a whiff of romance in the air. It might be one of those weeks when romance doesn’t seem like the emotional slavery it often does? Smooch with impunity but keep it legal, romance in the air doesn’t mean he/she won’t press charges. Skip TV for a few days, it sure as hell can’t hurt.

98% of the students have no confidence

in you sir.

Wow! That is bad! How?

Don’t worry sir that will

change.

What do you have for me

Kuncho?

Great! What are the results?

I have the result for the class

survey.

LEISURE



CONT`D FROM PAGE 13THE DILEMMA OF . . . airlines. “All the major African carriers including Ethiopian Airlines, South African Airways, Kenya Airways, TAAG Angola, Egypt Air, Royal Air Marroc, Tunis Air and Air Algérie combined have only a 20 percent market share. This is not fair. We are determined to change this. We should not be a bystander in our own continent,” he said.

The International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA) have also advised African countries to open their skies for enhancement of connectivity and efficiency of air services in the continent. An IATA survey suggests that if just 12 key African countries opened their markets and increased connectivity an extra 155,000 jobs and 1.3 billion dollars in annual GDP would be created in those countries.

Nick Fadugba, former secretary general of AFRAA and CEO of African Aviation Services, told The Reporter that African countries, who do not even have a national airline, are resistant to liberalize their air transport market. “Why do African countries sign international treaties if they are not going to implement them,” Fadugba wonders.

Former secretary-general of AFRAA, Elijah Chingosho (PhD), told The Reporter that after years of deliberations it was difficult to wait for all the 44 signatory states to fully implement the YD at once. “So we initiated a renewed impetus to implement the YD. What we decided was to launch the African Single Air Transport Market with those who were ready and willing to liberalize their air markets,” Chingosho said.

Consequently, in 2015, at the African Union Heads of State and Government Summit the Declaration on the Establishment of a Single African Air Transport Market (SAATM), as a flagship project of the AU Agenda 2063, was adopted. Immediately thereafter, 11 AU Member States declared their solemn commitment to establish a Single African Air Transport Market through full implementation of the Yamoussoukro Decision of 1999 that provides for full liberalization of market access between African States, free exercise of traffic rights, elimination of restrictions on ownership and full liberalization of frequencies, fares and capacities.

The number of signatory countries has increased to 23 since then. Ten more countries have expressed interest to join the league.

Amani Abou-Zeid (PhD), Commissioner for Infrastructure and Energy at the African Union Commission stated that SAATM was created with the aim of enhancing connectivity, facilitating trade and tourism, creating employment, and ensuring that the industry plays a more prominent role in the global economy and significantly contributing to the AU’s Agenda 2063.

According to the AU Commission, the creation of the single African air transport market will create additional 300,000 direct jobs and two million indirect jobs. Abou-Zeid, said the establishment of a single African air transport market will spur economic development by boosting trade and tourism among African nations. Aviation in Africa supports eight million

jobs and 80 billion dollars in GDP.

After years of negotiation and arduous legal paperwork the African Union officially launched SAATM on the margins of the Assembly of Heads of State and Government of the African Union meeting at the 30th Ordinary Session at the AU headquarters in Addis Ababa, on January 28-29. The new chairperson of the AU, President Paul Kagame of Rwanda, declared the establishment of SAATM in a closed heads of state summit held on Monday at the headquarters of the Union in Addis Ababa. President Kagame said that the launch of SAATM is a big step forward for the development of the African air transport industry.

Kagame, chairperson of the AUC, Mossa Faki Mohamat, and President Faure Gnassingbé of Togo, champion of SAATM, cut the ribbon of the plaque put at the HQ of the AU to mark the historical launch of SAATM.

A number of international aviation bodies including ICAO and IATA congratulated the AU and member states for launching SAATM. IATA said enhanced connectivity will stimulate demand, improve the competitiveness of the African airline industry, and make air travel more accessible. According to IATA, this will enable higher volumes of trade, expanded tourism and growing commerce between African nations and with the rest of the world.

“The SAATM has the potential for remarkable transformation that will build prosperity while connecting the African continent. Every open air service arrangement has boosted traffic, lifted economies and created jobs. And we expect no less in Africa on the back of the SAATM agreement,” Raphael Kuuchi, IATA’s Vice President for Africa, said.

“We commend the 23 States that have signed agreed to SAATM. It is an important step forward. But the benefits of a connected continent will only be realized through effective implementation of SAATM—firstly by the countries already committed and also by the remaining 32 AU member nations still to come on board,” Kuuchi said.

Tewolde said January 29, 2018 will be a historical day for the African aviation industry. “This is obviously a huge

millstone for the continent.”

But not all Africans are celebrating the launch of SAATM. There is a strong resistance by countries to implement SAATM and some airlines are criticizing the initiative.

At the official meeting held on Monday morning, President Yoweri Museveni of Uganda requested to make an observation. President Kagame said that it was not in the program for any head of state to comment on SAATM but he gave the floor to Museveni.

President Museveni expressed his fear that SAATM will lead to the domination of African skies by few African airlines who are already dominating the African skies. “Few airlines are going to dominate and that is not good,” Museveni said. He said he rather prefer that African countries form regional airlines first before liberalizing their skies.

A senior African aviation expert The Reporter talked to said that President Museveni’s remark was contradictory with what his country is doing. “It seems that he is not knowledgeable about SAATM. Uganda has already liberalized its air service. Since it does not have a national airline it has allowed African and non-African airlines to operate to and out of Uganda. Many airlines fly to Entebbe. Even some carriers have fifth freedom right – the permit to operate between Entebbe and other destinations,” the expert said. “So what is the rationale behind protesting SAATM while you have already allowed all international carriers to operate to your country,” he remarked.

Museveni was not the only one who expressed his skepticism about SAATM. Nigerian private airlines expressed their grave concern towards the establishment of SAATM.

Airline Operators of Nigeria (AON), which denounced the policy, said they were not carried along in the discussions leading to the endorsement of the implementation of the policy, and alleged that if embraced, it would shortchange the industry.

The Nigerian airlines argued that there is no level playing field where Nigeria can compete with other African carriers, which they said still enjoy some protectionism, lower interest rate on loans and waivers on import duty for aircraft and spares. These airlines requested the Government of Nigeria not to implement SAATM.

Some of African airlines, who protest the implementation of SAATM, claim that the initiative would benefit only the big airlines such as South African Airlines, Kenya Airways and Ethiopian Airlines and it would afflict the small and weak airlines.

African aviation authorities reject the assertion. Sossina Iyabo, the secretary general of the African Civil Aviation Commission, the executive agency of SAATM, told The Reporter that SAATM would benefit every African country and airline regardless of their size by improving air connectivity, boosting passenger traffic, and spurring economic development.

“When you live in fear you do not make progress. But you can overcome your fear by coming out and look what is in

it for you and take your share from the market,” Iyabo said. She added: “It does not matter whether you are big or small. Even if you do not have an airline every state will benefit from SAATM. Because you benefit from increased passenger movement, your airport would benefit, air navigation services will benefit, your downstream sector, the aviation value chain will benefit, your every entity that works in the airport environment will benefit.”

Nigeria is one of the 11 champion states that first expressed their solemn commitment to African open skies agreement. “The Nigerian airlines are not yet able to see the benefits of SAATM as their government. They are not as visionary as they should be,” Iyabo said.

Secretary-general of AFRAA Abderahmane Berthe told The Reporter that the small airlines should cooperate with the big airlines. “The train of liberalization is there. You cannot stop it,” Abderahmane said. He said that small airlines should not worry about the implementation of SAATM as it incorporates regulatory framework that protects airlines from unfair competition and it also has dispute settlement mechanism.

Tewolde on his part said that there is no such thing as big and small airlines in Africa. “We all are small airlines. It is like two bald men fighting for a comb,” Tewolde said.

Market liberalization has always been a bone of contention. Many argue that liberalization brings in more operators, foster better service and reduced fare. While others contend that the local industry would be stifled.

“When air transport market is deregulated there will be winners and losers. If you are small and weak you should cooperate with strong African airlines like Ethiopian Airlines,” Fadugba told The Reporter. “I hear some say Ethiopian is the winner and it will take all. But instead of criticizing ET work hard like ET. Emulate them. And partner with them like what ASKY, Malawi and now Zambia are doing,” Fadugba said.

Tefera Mekonnen, air transport director AFCAC, said there is no need to be afraid of SAATM as the open skies agreements comprises consumer protection, competition regulation and dispute settlement mechanism. Tefera advised member states to engage with the executive agency, AFCAC, on the implementation of SAATM.

African states that get together twice a year to convene on continental agendas such as economic integration still seem to be divided on the implementation of African open skies, thirty years after its inception.

Berthe said the most important thing is that the 23 countries that are committed to fully implement SAATM represent 80 percent of the total African air transport market. Berthe poised that more countries would join SAATM in the coming few years when they realize the benefits. “If you are in a country which is not part of SAATM you will have to compete with airlines from SAATM area which have access to a larger market. If you are not a signatory you will be isolated and would lose market. Eventually, you will end up closing your airlines.”

African states that get together twice a year to convene on continental

agendas such as economic integration

still seem to be divided on the implementation of African open skies, thirty years after its

inception.



36|

during the early stages of production.

What is the long-term vision of the company?

Our vision is to be a global player of repute in the plastic raw materials, polymer compounding and footwear business.

When you look at the Ethiopian economy from the perspective of a foreign investor, what are some of the areas that have a potential to grow?

I think the Ethiopian economy will grow in every way. I am very bullish. There is a large market, 100 million people looking to consume different products. Within our own products, I feel that chemicals, footwear and lifestyle products will boom in the near future. If companies understand the demand patterns and the complex consumption patterns of consumers in Ethiopia, there is a huge opportunity that needs to be tapped. For many, using Ethiopia as a base to export manufactured items is also a lucrative business model.

It’s hard to list out ‘some’ areas of potential growth, because I think the whole Ethiopian economy will grow and hence almost every sector within the business world will grow in Ethiopia; whether it is manufacturing, agriculture, agro processing, trading, information technology, hospitality or services. However, I feel that flexible packaging will have a special growth in the near future because for almost every manufactured or agro processed product, packaging will be required. The flexible

packaging requirement will be huge for such a large market that is growing so rapidly. Of course, as a group we enjoy manufacturing so we will continue with our focus on that.

Within Ethiopia, when you long for authentic Indian cuisine, what is one restaurant that is close to the ideal Indian food?

Honestly, the most authentic Indian cuisine will only be found at home for me. My mother is an amazing cook! Indian food as you know is very diverse and subjective, and if I had to choose a restaurant in Ethiopia, it would be Sangam Restaurant.

There are now thousands of young entrepreneurs who have moved to Ethiopia from abroad – diasporas and foreign investors looking for opportunities. As a veteran businessman in Ethiopia, what advice do you have for them?

I don’t consider myself as a veteran businessman. I’m still relatively young and new, and I have a long way to go in my career. However, my only advice to any new businessperson is to be passionate and self-driven. These are 2 key characteristics to be successful in business. Though it is necessary that these two are complemented with earnest, honesty, and sound ethics because that determines your relationship with the people and institutions around you. Ethiopia is a large market, and there are a lot of things that can be done here, so I also encourage young businesspersons to be innovative and unique in whatever

that they do. Diasporas coming from abroad have exposure to many new business models and start-up ideas, it will be interesting to see products, services and technology that can cause market disruptions and become giant businesses.

India is seen an exemplary nation for many emerging nations such as Ethiopia. What can Ethiopia learn from India?

India and Ethiopia share great ties; cultural, diplomatic, political and commercial. Ethiopia is witnessing a great growth trajectory. India too is the fastest growing economy (from the large economies), and has a robust and dynamic business sector. As long as Indians and Ethiopians work together and share their experiences regularly, as long as the people-to-people connect grows (like it has been growing), then Indians will learn a lot from Ethiopia and Ethiopians will learn a lot from India. India is witnessing a fast-paced economic growth and like Ethiopia, we too have a young educated population. This young blood can play a crucial role in IT services, business process outsourcing to global multinationals, innovative start-ups and who knows, there may be innovations related to sending satellites in space. India has sent a mission to Mars and the young generation coupled with innovative SMEs made India’s technological advances possible. I foresee a similar scope in Ethiopia, where young bright minds will pave the way to human technological success from the cradle of civilization.

THE 4TH GENERATION . . . CONT`D FROM PAGE 15

CONT`D FROM PAGE 1

an increased drone activity in the country. ECAA is the sole government organ mandated by law to license any flying object. Ethiopia like many other countries has not yet introduced a drone regulation. However, individuals and businesses are importing and operating drones without the knowledge and consent of the authority.

Wossenyeleh said drones are posing threats to aviation safety and security in the world. “Drones can easily be operated anywhere and can be used for various purposes. In other parts of the world there have been reports of drone collisions with commercial aircraft,” Wossenyeleh said. “Drone imports and operation should be regulated.”

The director-general said that there is the need to formulate a drone regulation that governs the imports and operation of drones. Accordingly, ECAA aviation experts are currently drafting a drone regulation. “At the moment we are working with relevant bodies in drafting the drone document,” he said.

International Air Transport Association (IATA) head of cargo transportation Celine Hourcade told The Reporter that Africa is leading the way in exploiting and implementing the use of drones. Aid agencies use UAVs to deliver medical equipment,

medicines, and blood samples in remote parts of the continent. While in Kenya, a private cargo airline, Astral Aviation, is under preparation to launch cargo delivery using UAVs.

Hourcade said the Rwandese government has championed

the use of drone technologies. The first country in Africa to build a small drone port, Rwanda uses UAVs to transport medical supplies in remote parts of the country known for its thousands of hills. The Rwanda Civil Aviation Authority

has established a regulatory framework for remotely piloted aircraft.

The Kenyan government recently approved regulations for drones, becoming the second country after Rwanda in the region to embrace commercial use of UAVs.

However, Africa faces some of the same challenges that drone operators in other parts of the world have encountered. Hourcade told The Reporter that governments must address a lack of regulation, safety, and security. “You have also training,” she said. “You need to have the right skills for people to operate and maintain drones.”

Of course, lack of regulation is not a problem peculiar to Africa. “We at IATA are working with ICAO, air navigation service providers, and transport ministers all over the world to come up with the right regulatory framework,” Hourcade said. “The objective is to do it efficiently and safely. We need to make sure that this new aviation venture is not causing any damage to traditional aviation.”

In a related development, the Ministry of Transport is to revise the national aviation policy drafted by ECAA.

Drone regulation . . .

Drone regulation... page 38

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In the question and answer session, MPs were more focused on the issue of Ethiopian children who have been adopted by foreigners and the recently endorsed legislation that banned adoptions of Ethiopian children by foreigners.

The minister and her colleagues were questioned strongly, especially, on improvements made on data and information regarding the children that have been adopted over the years including their destination and current status. According to MPs there is a lot to worry about with regards

to the follow-up of adopted Ethiopian children especially in some western countries. And they ascertained that the trend that the whereabouts of these children is well-known and is something quite worrying.

In response, Demitu and her colleague revealed that a lot has been done in past six-month but still conditions of over 2,000 adopted children is not known. Out of this stated number, the parents’ of some 175 have actually appealed to the ministry for information, Demitu said.

Furthermore, Demitu also

reported to the House that since the adoption of proclamation that prohibited foreign adoption in Ethiopia a total of 1,500 children have been placed under the custody of local institutions and individuals which raise orphans. Meanwhile, the Ministry also told MPs that some 500 children have also found homes in Ethiopia.

Five years ago, the adoption debate kicked into high gear when a couple was jailed in the United States after an Ethiopian girl, 13, they adopted died under unclear circumstances.

Top US celebrities are known

to have adopted Ethiopian children, amongst others: Angelina Jolie and Brad Pitt. But, even celebrities like Jolie were not immune from controversy regarding adoption. Jolie adopted a six-month old girl Zahra back in 2005. Zahra’s mother in 2007 dispelled news reports that she wanted her daughter back. Mentwabe Dawit, resident in of Hawassa, Southern Regional State, denied that she had ever challenged the adoption and said she was happy her daughter had found a home with the Hollywood star.

Whereabouts of over . . . CONT`D FROM PAGE 1

CONT`D FROM PAGE 1

communication challenges the country is facing at this time are far more difficult than the challenges posed by the drought in the country.

“We have registered invaluable victories over the past years and we have to take care for not to be snatched of these victories by illogical views and actions,” Negeri told journalists gathered in his office yesterday, which is located off Africa Avenue.

The communication breakdown that he admitted to comes as a single unsaid reason for the widespread political unrest that the country is witnessing at this time, according to Negeri. So far, lack of good governance, the public’s increased demands to infrastructure development, and the creation of a demanding public were the primary factors cited by the government to be behind the unrest.

However, Negeri’s statement was indicative of a different school of thought regarding the cause of widespread political unrest in Ethiopia. Negeri’s comments also marked a slight shift in its approach since it was outward looking than the recently observed self-blame of the ruling party, the Ethiopian Peoples’ Revolutionary

Democratic Front (EPRDF), as he denounced social media activists and what he called “irresponsible media outlets” for distorted messages creating the massive communication breakdown.

“When they see something happening at one place, they immediately disperse distorted information as if that incident has caused huge damages,” he said.

This is not the first time Negeri stood out from other government officials in the system by his assessment of the current issues important to the country. One incident was when he made a comment regarding media outlets which he accused of “fueling and wrongly representing conflicts” in Bunno Bedele of the Oromia Regional State, using erroneous images and statements. At the time, Negeri was firm in asserting that those media outlets would be “held accountable” and will be brought before the court of law.

His statement at time had created a buzz across all media spectrums in Ethiopia and observers of Ethiopia’s media environment. The statement prompted the director general

of the Ethiopian Broadcasting Authority, Zer’ay Asgedom, to discuss the media practices of reporting conflicts in Ethiopia at press conference he called shortly after Negeri made his statement.

Zer’ay set the record straight saying that the statement by the minister of Communications Affairs Office is not the official stance of the authority and that it might be “Negeri’s personal take”. In a follow up press conference, Negeri commented that whatever he spoke as government’s spokesperson, he spoke on behalf of the government.

What triggered Negeri’s current statement is the growing concern over the frequent political unrest in the country. The recent protest in Woldia, Mersa, Kobo and the surroundings have gained huge media coverage both online and offline alike.

Apart from the minister’s statement and admittance of the communication breakdown, the conflicts erupting in the country are also attributed to the ethnic based federal structure that the country follows, according to social media commentators.

COMMUNICATION . . .

The ECAA in collaboration with the Ministry of Transport has prepared a national aviation policy that would govern the country’s air transport industry. It took ECAA and the Ministry of Transport more than four years to formulate the draft national aviation policy. The policy outlines the involvement of the private sector in the aviation sector, airport development and air space management among other things.

Though the Ministry of Transport submitted the draft aviation policy to the Council of Ministers, due to some structural changes the Ministry of Transport decided to revise it.

Wossenyeleh told The Reporter that the

Ministry has instructed ECAA to revise the draft aviation policy.

Wossenyeleh said that ECAA is striving to cope up with the fast growth of the national carrier. “We are modernizing our system by training our technical staff, procuring modern flight control equipment and meeting international aviation safety rules.”

According to him, ECAA is regularly audited by the International Civil Aviation Organization (ICAO) and the US Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) and pass the audits with flying colors. Staff turnover is one of the main challenges that the authority is faced with. “Professionals leave us in

search of better pay. We have proposed to the government to make salary adjustment and we are waiting for the response,” he told the press conference.

Wossenyeleh also spoke about labor dispute. “Few employees who have been suspended from work due to disciplinary reasons have been trying to tarnish the image of the authority.” Wossenyeleh said that the cases of four employees who are accused of malpractice and corruption has been remanded to the Anti-Corruption Commission and the Federal Police Commission.

ECAA was established 70 years with the objective of leading and regulating the country’s aviation industry.

Drone regulation . . .

However, Negeri’s statement was indicative of a different school of thought regarding the cause of widespread political unrest in Ethiopia.


The Reporter, February 3, 2018 Vol. XXII No. 1117 |39THE REPORTER SPORT

By Dawit Tolesa

The weekend’s fixtures of the Ethiopian Premier League (EPL), week 14, will be taking place all over the country. Defending champions St.George host Adama City in this week’s must see match. Ethiopia Coffee play Fasil City while Jimma Aba Jiffar host southern side Wolita Dicha.

The EPL clubs’ inconsistencies lingered week after week as the first round came to an end. Relatively, newcomers to the league are performing better. The Horsemen are struggling to find form and the same can be said for Sidama Coffee, Ethiopia Coffee and Electric.

Saturday’s fixture will see Ethiopia Coffee take on Fasil a.k.a. the Emperors at the Addis Ababa Stadium. After consecutive draws and a loss on week 13, Ethiopia Coffee triumphed over Dire Dawa City, 2-0.

In light of current performances logged by the Emperors, Ethiopia Coffee will face a tough test in today’s match. In week 13, Fasil won against Electric on home turf. The Emperors are placed sixth having amassed 19 points, while Coffee, placed ninth, have 15 points with a match in hand. Saturday also sees relegation threatened Electric face newcomer Mekele City known as,

a.k.a. the Red Lions. Mekele, not easily beatable when compared to Electric, proved just that when they faced Sidama Coffee on week 13, coming out with a comfortable 1-0 win.

Sunday’s game sees St. George host Adama City. It should be recalled that, Adama had dominated Welwalo Adigrat

in last week’s fixture and registered a 3-0 victory. In contrast, The Horsemen’s last fixture saw their unbeaten run come to an end at the hands of Wolita Dicha, who came from behind to win 2-1. The defending champions goal came on the tenth minute but was not enough to even grab a draw. Furthermore, the Horsemen’s woe continued on home

turf when they drew with relegation threatened Dire Dawa City on Thursday. It ended 1-1, with goals coming from Kwame Atram on the 29th-minute which was canceled out by St. Georges full back, Abebew Butako on the 61st-minute.

Elsewhere, newcomers Jimma Aba Jiffar ended Dedebit’s unbeaten run. In week 13 EPL, Jimma defeated the Blues 2-1. Jimma took the lead via Temesgen Gibrekidane on the fourth minute and Yonas Giremew doubled their tally on the19th-minute. Efrem Ashamo pulled one back for the Blues in the 63rd-minute. Dedebit’s coach, Nuguse Desta, complained about the referee’s decisions for the defeat. Getaneh Kebede was sent off on the 21st-minute.

Sunday’s fixture will see Jimma Aba Jiffar take on Woliata Dicha on home turf and two relegation fighters Arba Minch face another team from the drop zone, Dire Dawa City.

The match between Dedebit and Woldia City is postponed by the Ethiopian Football Federation.

Dedebit top the table with 25 points with a game in hand followed by St. George with 21 points and a game in hand. Jimma Aba Jiffar sits third sharing the same point tally with Adama, which is placed fourth, on goal difference. Electric, Dire Dawa and Arba Minch are still struggling in the relegation zone.

Saturday 03/02/2018

Sunday 04/02/2018

Electric vs. Mekele City

Coffee vs. Fasil City

St. George vs. Adama CityWelwalo Adigrat University vs. Hawasa CityWoldia vs. Dedebit Jimma Aba Jiffar vs. Woliata DichaArba Minch vs. Dire Dawa CityDefense vs. Sidama Coffee

Ethiopian Premier League

By Dawit Tolesa

Ethiopian Premier League (EPL) newcomers, Woldia FC, have summoned players who left their camp and training grounds, to return back to duty.

Following violence which began on Kana Zegelila celebration, the second day of the Epiphany festival in Wolidia town, players reported that they have left the training camp. The club’s management stated that the players left the camp due to threats from fans for their dismal performances. According to club general manager, Geremew Kasa, “they were not willing to stay in hotels, following complaints from fans opting to leave without any discussion with us,” he told The Reporter.

Woldia City are not off to a good start and various players were complaining on

By Dawit Tolesa

The FIFA World Cup trophy will return in Addis Ababa years after it was first exhibited in the capital. The trophy will stay in Addis Ababa for two days in Ghion Hotel, The Reporter has learnt. It will be open for visitors who fancy their pictures taken next to the most coveted price in football.

The trophy, scheduled to tour 91 cities across 51 countries, has started its journey from Sri Lanka in January 23-24. It travelled right across Russia over a three-month period taking in 16 cities and racking up almost 10,000 miles. Including Ethiopia, it will tour ten African countries. Ethiopia will receive the trophy from Sudan, on February 24, 2018.

In 2006, FIFA and long-term partner Coca Cola, took an ambitious first step on a new journey by taking the original FIFA World Cup trophy and flying it around the world in the build up to the 2006 FIFA World Cup Germany. It visited 29 countries and resulted in over 175,000 fans taking an official photo next to FIFA World Cup trophy. According to the same source, by the end of FIFA World Cup trophy tour by Coca Cola in 2014, the trophy had visited 90 countries over a 267-day period. During this time some 1.3 million fans got close to the trophy for a photo.

Previously, the World Cup trophy arrived in Ethiopia, in 2010. The trophy tour in Addis is also accompanied by Coca Cola music concert in Ghion Hotel.

According to Coca Cola in Ethiopia, the trophy tour will bring the energy and excitement of the world’s most loved

St. George, Adama showdown in Addis

FIFA World Cup trophy returns to Addis

football tournament and its most coveted prize, directly to fans for the first time.

According to Coca Cola Ethiopia marketing manager, Tigist Getu, this opportunity will have a chance in motivating young talents and for fans who love the game, have a chance to get their pictures taken with the trophy.

the issues concerning monthly salaries. Mainly, new experienced players were complaining over salary. Nevertheless, Geremew unveiled that they are on the process of coming up with a solution in the near future.

Following the unstable situation in the town, Ethiopia Football Federation (EFF) has postponed two matches of Woldia City.

Meanwhile, it is rumored that Wolidia head coach, Zemariyam Woldegiorgis, will move to Welwalo Adigart University this week.

Woldia placed 12, have only 11 points to show for on the table and from the last 11 fixtures, they only managed to win two matches, draw five and lose four.

Upon the request from Woldia FC, the Federation will rearrange fixtures for another time.

Woldia FC summon players



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