Category: Business

Ethiopia’s Green Legacy development is the foundation of the country’s economic growth which needs the participation and dedication of all, Addis Ababa University President Tassew Woldehanna said.

Recall that Prime Minister Abiy Ahmed launched last month the second phase of the Green Legacy Initiative in Afar region under the theme: “Let’s Plant the Future Today.”

Professor Tassew told ENA that the green legacy development will have an irreplaceable role for Ethiopia’s economic growth and development by enhancing the nation’s forest coverage and withstanding the impact of climate change.

So, he added, since Ethiopia’s green legacy development is the foundation of future generations and the nation’s growth, it needs the dedication and participation of all for its success.

In addition to the learning–teaching and research works, Addis Ababa University is playing its part in social services and green legacy development, he pointed out.

The president stressed that Addis Ababa University has finalized its preparation with special priority for the success of the single day record-breaking seedlings planting campaign which will be held on Monday.

It is to be recalled that Ethiopia planted a record more than 350 million trees in a single day in 12 hours on July 29, 2019.

The Green Legacy Initiative is a flagship program initiated by Prime Minister Abiy Ahmed in June 2019 with a target of planting 20 billion seedlings within a period of four years.

However, by the end of fourth year, 25 billion seedlings, including fruit trees and cattle feeds, were planted.

Source: Ethiopian News Agency

Food security has deteriorated across Kenya, Uganda, and Rwanda in the last month, Alliance for Green Revolution in Africa (AGRA) has said.

As of June 30, 2023, 65.7 million people across six select East African countries did not have enough food for consumption, representing a 2.6 percent increase compared to the previous month.

The number of food insecure people in the East African region was higher in June 2023 than at the same time last year (62.6 million) and in 2021 (53.0 million).

According to AGRAS Food Security Monitor for June 2023, the mixed changes in the national average prices of food commodities reported in Kenya over the month of June saw that while the average prices of red beans, red sorghum, and rice were lower in June than in May, maize, finger millet, wheat and white sorghum prices remained high.

For instance, wheat and white sorghum were 6.77 percent and 15.23 percent higher in June than in May and except for finger millet and wheat, all other commodities have risen above their one-year levels and this state of prices is a reflection of seasonality patterns exacerbated by on-ongoing macroeconomic difficulties.

The high fuel and food prices have also continued to limit the purchasing power and only a total of 228,635 MT worth of commodities, including wheat, maize, soybean, and sunflower meal, were shipped to Kenya, Egypt, and Tunisia last month.

On the seasonal monitor and crop yield forecast, the monitor says that Kenya’s area under crop production in the marginal agricultural areas is below average constrained by limited access to inputs during the planting month of March.

As a result, below-average harvests are expected despite the areas receiving cumulatively above-average rainfall

According to the report, increased market supplies from the recent harvest are however stabilizing prices and driving improved food security outcomes, especially in Southern Africa.

For Kenya, the report notes that the East African Community (EAC) has allowed the country to reduce the import duty levied on rice and wheat to rates below the bloc’s common external tariff.

This will help to address the high food prices in the country and under this new arrangement, rice imported from countries outside the region will now be subjected to a custom duty of only 35 percent, instead of the 75 percent charged under the EAC common tariff,

Wheat from outside the region will be taxed at 10 percent, instead of EAC’s rate of 35 percent.

Kenyan long-distance transporters have said transport costs increased starting July 1, after parliament voted to double value-added tax (VAT) on petroleum products to 16 percent on June 21

The EAC Partner States have agreed to a road toll of USD10 per 100 kilometers for cargo trucks to strengthen the provision of customs services at its borders and reported that they resolved a total of 10 Non-Tariff Barriers (NTBs) as four new ones emerged.

Among the resolved NTBs were a 25 percent excise duty imposed by Kenya on Ugandan table eggs, and a 25 percent Kenyan excise duty on onions, potatoes, potato crisps, and chips from Uganda that became effective 1st July 2022.

The import ban and denial of market access by Kenya through the non-issuance of import permits for powdered milk from Uganda was also resolved together with the 13 roadblocks between Nimule and Juba, where Ugandan traders were losing more than 150,000 South Sudanese pounds at each station53

Among the new NTBs is a complaint by Kenya that Uganda was denying market access to EAC Partner States under preferential treatment by charging a full Common External Tariff of 35 percent for juices originating from Kenya.

Despite all the challenges, the EAC has unveiled a new campaign aimed at raising awareness about trade opportunities in agricultural exports through the EU-EAC Market Access Upgrade Programme (MARKUP).

The campaign will provide valuable information and resources to small and medium-sized enterprises in the agricultural value chain, co-operatives, farmers, and government entities across the region

The EAC has further stepped up its push for member states to adopt local currencies in trading with one another as the latest push to drop the bullish US dollar that is hurting economies in the region

AGRA’s Food Security Monitor provides an overview assessment of the food security outlook in focus countries in East, West, and Southern Africa, considering the movement of prices of main food staples and government interventions that impact on domestic and regional food trade alongside the impact of forecast weather changes and environmental conditions on food security.

Source: Kenya News Agency

Seven fishing companies in Walvis Bay are currently in the process of obtaining lists of fishermen to be re-employed through the Government Employment Redress Programme (GERP).

This was announced by Minister of Fisheries and Marine Resources, Derek Klazen, at a media conference held in Walvis Bay on Friday, which follows several consultations between the companies and employee representatives in Walvis Bay over the past two days.

According to the minister, the companies, which include three in the hake and four in the horse mackerel sub-sectors, will then receive letters from the ministry, indicating the volume of fish quotas equal to the number of jobs they are providing to enter into employment contracts with them.

The fishermen in question are part of the about 1000 who lost their jobs in 2015 aboard numerous fishing vessels following their participation in an illegal industrial strike, now referred to as the Okapale fishermen.

The group also includes fishermen who were laid off from Namsov, owing to a 48 per cent cut of its horse mackerel quota in 2015 and over 200 more who lost their employment after being abandoned by two fishing vessels operating under the Icelandic Company Samherji, namely Saga and Geysir in 2020.

“Persuaded by the ordeal of these fishermen, cabinet then directed the ministry to establish mechanisms on how to address the plight of the affected fishermen who lost their jobs.

Cabinet thereafter directed that the ministry employs a public and transparent process, which will culminate in the appointment of competed companies able to uptake all the workers on a full-time and permanent basis,” Klazen said.

The seven companies were therefore successful after demonstrating their capacities and readiness to provide the required jobs.

According to Klazen, 6224 hake and 11 250 horse mackerel quotas has been allocated to these companies, who will be expected to pay the over 1000 fishermen’s first salaries by end of July 2023.

“I want to reiterate that the government has really done all it can to ensure that these workers are re-employed. Therefore, should one resign or get dismissed from employment due to misconduct, this will mean the end of participation and there will not be any more opportunity for you,” he cautioned.

Source: The Namibian Press Agency

Vice president, Nangolo Mbumba, on Thursday reiterated that Namibia is open for business and that interested investors should take up available opportunities.

Mbumba made these remarks at the US-Africa business summit held in Gaborone, Botswana, under the theme; “Namibia-becoming the sustainable energy capital of Africa.’

Mbumba stated that Namibia’s energy sector has seen considerable advancements in recent times.

“In realm of oil and gas, the discovery of vast reserves by international companies TotalEnergies and Shell has catalysed a new dawn for our country,” Mbumba said, adding that these reserves, once fully appraised and eventually developed, will contribute meaningfully to our economy and will form a cornerstone in the country’s strategy to alleviate unemployment and income inequality.

Moreover, he stated that with regards to renewable energy, Namibia’s unique geographical attributes place Namibia at a significant advantage above many other countries, explaining that Namibia has 300 days of sunshine annually and is blessed with constant winds.

‘With the signing of the feasibility implementation agreement with Hyphen Hydrogen Energy to produce green energy hydrogen, Namibia is effectively harnessing our natural resources to contribute not only to regional energy equity, sustainability and security, but also to the decarbonisation of our planet,’ Mbumba said.

Source: The Namibian Press Agency

There is a need for greater innovation and market development to broaden insurance uptake in Ethiopia, Deputy Governor of National Bank of Ethiopia (NBE) Solomon Desta said.

Opening the conference held in Addis Ababa today with the theme ” Innovation for Resilience – Shaping the Future of Insurtech in Africa” Solomon said “We recognize the importance of innovation in addressing the challenges faced by the insurance industry.”

“In Ethiopia, there is a need for greater innovation and market development to broaden insurance uptake. Despite the recent history of financial sector liberalization and reform, the insurance industry in Ethiopia remains relatively underdeveloped.”

In light of Ethiopia’s significantly low insurance penetration, a new approach to insurance and market development is needed to catalyze greater uptake by consumers and to enable the formal market to tap into latent demand, he further elaborated.

The NBE is working towards setting up an independent insurance regulatory body, focusing on encouraging the insurance industry, he further pointed out.

Through this event, he said we aim to encourage collaboration, knowledge sharing and the adoption of innovative practices that will deliver the sustainable growth and expand access to insurance services for all Ethiopians.

Similarly, CEO of FSD Ethiopia, Ermias Eshetu said that the event presents an opportunity to showcase Ethiopia’s insurance sector and contribute to the advancement of the broader African insurance landscape.

By embracing innovation, fostering strategic partnerships, and creating an enabling regulatory environment, we can collectively drive positive change and enhance societal resilience, he noted.

FSD Ethiopia is dedicated to the achievement of accessible inclusive and sustainable financial markets that support Ethiopia’s long-term development goals, it was indicated.

Accordingly, the conference aimed to foster growth, facilitate strategic partnerships, and establish an enabling regulatory environment that supports the advancement of the insurance sector in Africa.

Financial Inclusion Specialist from FSD Africa Elias Omondi said for his part that FSD Africa works to catalyze innovation within the market.

“As FSD Africa, what we do is to catalyze innovation within the market, we want to see the insurance penetration in Ethiopia grow beyond 0.5 percent, we want to see those particular women that have no insurance get access to insurance, and the smallholder farmers get access to affordable solutions.”

Africa which is the most exposed continent is arguably the least protected in terms of insurance and that basically indicates there is a lot of work that we need to do as a continent, he noted.

Source: Ethiopian News Agency

Ethiopia and Germany signed a 25 million euros grant agreement today to support the improvement of critical rural value chains in the agricultural sector.

State Minister of Finance Semereta Sewasew and Director for Eastern Africa and African Union KfW Group KfW Development Bank, Christoph Tiskens signed the agreement.

The Project namely “Strengthening Rural Value Chains in Ethiopia” is aimed to support the improvement of critical rural value chains in the agricultural sector in East Gojjam and Arsi Zones in Amhara and Oromia Regional States, respectively.

The purpose of the project is to implement climate smart and ecologically sustainable increase of agricultural productivity and market access for high potential rainfed farming systems in the targeted project areas, according to Finance Ministry.

The project targets the improvement of the agro-ecological potential for rainfed agriculture, especially cereal and legume production: access of farmers to inputs and improved capacities of Project Executing Agency (PEA) and Project Implementing Units (PIU).

Source: Ethiopian News Agency