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Fortune Volume 1 Number 46
March 18 - 25 2001
French
Company Lodges $30 Million Suit Vs. Ethiopian Gov't
The company has filed the claim as indemnities for the
construction equipment it lost at the Assab Port during the Ethio-Eritrean
Conflict.
With the World Eying Addis, Mega's Billboard Sidetracked from the
Stadium
ETC to Market Newly
Imported Phone Cards
Ethiopia's Export
Revenue on the Rise
CBE Expands Foreclosing
Spree to Djibouti
8.8m Br Allocated
to Light Addis' Streets
Company Licensed
to Manufacture Solar Operated Implements
General Motors to
Have Regional Meeting at the Sheraton Addis
Ethiopians
in the Diaspora to Build Dispensary Here
Nile Insurance
to Get Int'l Award
EEPCo Says Power
Rationing Unlikely this Year
EU Slates Highest
Aid to Ethiopia
Price War for
AIDS Drugs to AfricaTrade
Envoy to Leave for India
Editorials
Save New Bill from Paralysis
Why not Resort to Collective Bargaining?
Economic
Commentary
Light Amidst Darkness - EEPCo's Paradox
Fortune
Restaurant review
Pizzeria Italia
Trends
Bee's Wax Export
Opinion
Think More of the Economy and Less
of Politics
Asmara's refusal to withdraw its troops from the disputed territory
according to a previously agreed time table might be a calculated
move to further undermine Ethiopia's chance to secure badly needed
foreign loans to jump start its economy which is in a serious dilemma.
My
Perspective
Driving in Addis - IV
One morning, 30 years ago, my professor of Penal Law walked in the
classroom and condescendingly asked, "why is it that you people
pull over to the right before making a left turn?"
View
From Arada
Clean Thoughts Clean Rubbish
View
Point
What Went Wrong at Midroc
Construction?
The confrontation has been talk of the town ever since it began
a couple of weeks ago.
INTERVIEW
Employers Federation Tries to Stand Tall
TENDER
MART
BUSINESS OPPORTUNITIES
French
Company Lodges $30 Million Suit Vs. Ethiopian Gov't
BY MIKIAS WORKU
Fortune Staff Writer
The federal government is facing a more than 30 million Dollars
claim lodged by the French based construction company, SOGEA, as
the case is still pending being overseen by the arbitration of the
International Chamber of Commerce in Paris.
SOGEA had been contracted by the Ethiopian government in 1994 to
undertake the construction of the 199Kms Assab-Mille Road, which
was more than 70pc (145km) completed when the Ethio Eritrean conflict
broke out and work came to a halt, followed by the termination of
the contract in June 1998. The government was financing the construction
through a 247.4 million Br loan from the International Monetary
Fund (IMF).
The company filed the claim as indemnities for the construction
equipment it lost at the Assab Port and for the termination of the
contract.
Sources close to the case told Fortune that negotiation between
the government and the company, through the mediation of the arbitration
committee, is underway and the government is pressing hard to bring
down the amount of the claim.
According to our sources, the government is yet to decide from which
fund to tap the payment of the final amount of claim that would
be agreed upon.
The French company was contracted by the government after winning
a controversial bid that allegedly involved a one million Dollars
high profile corruption scam.
It is to be recalled that the scam is one of the law suits that
the prosecution at the Supreme Court filed against the ex-prime
minister, Tamrat Layne, now behind bars serving 15 years, after
being found guilty for corruption. He was alleged to have pocketed
the one million Dollar payoff he got from SOGEA in return awarding
the company with the construction bid.
The court ruled for the 900,000 Dollars to be withdrawn from the
bank account of one of the accomplices and returned to the government's
treasury.Top
With
the World Eying Addis, Mega's Billboard Sidetracked from the Stdium
BY DAWIT TAYE
Fortune Staff Writer
Few hours away from hearing the whistle that would kick off the
12th African Youth Championship match between Cameroon and the home
team this afternoon at the Addis Abeba Stadium, not only are Ethiopian
spectators pleased to have such a big soccer event after three decades,
a number of service outlets are also busy catering for more than
500 people that converged on Addis for the two-week tournament.
However, and unfortunately, not everyone is happy about developments
around the championship. It has brought a slight disappointment
to Mega Advertising Enterprise, which is forced to concede its exclusive
rights over billboards inside the stadium to an international rule
that gives the Confederation of African Football (CAF) an exclusive
right to display advertisements of its own sponsors, replacing the
existing ones in the duration of the competition.
Mega has had entered a five-year contractual agreement with Ethiopian
Football Federation (EFF) four years ago agreeing to pay 1.5 million
Br a year to be the sole agent of advertisements that are displayed
in the stadium.
Although Mega has demanded for the advertisements of its clients
not to be removed, the organizers said that there is a law that
prohibits other commercials to be displayed during CAF tournaments,
except its own sponsors.
"We have tried not to take out the advertisements, but it is an
international law," EEF Secretary General, Yissak Teferri, explained.
"CAF is entitled to retain the stadium for the promotions of its
sponsors two days before and after the competition."
The French Canal France International (CFI) is paying CAF three
million Dollars a year to exclusively display its commercials during
CAF's soccer competitions.
But officials said the rule is effective on commercials of international
corporations such as Samsung and Shell, but exempts advertisements
of local companies.
In fact, until Friday, March 16, billboards of St. George Brewery
and DKT Ethiopia were seen intact in the stadium, surrounding the
field.
Mega so far erected 35 commercials of 26 companies within and around
the stadium, the leading advertiser being Pepsi with eight billboards.
Meanwhile, having to host seven national teams, including CAF's
officials, referees and accompanying experts, Ethiopia is spending
around five million Br for covering their transport, food, lodging
and allowance expenses, according to Abebaw Kelkaye, head of the
coordinating committee under the EFF.
The Federation expects to cover the bulk of the fund from income
it anticipates to generate through the sales of entrance tickets
to the stadium, which has a capacity of 30,000 fans.
The Secretary General of EFF told Fortune that they expect a turn
out of 15,000 spectators on each of the 16 matches with the possibility
of reaching to 20,000 when the home team plays.
It is estimated that an average of 350,000 Br would be collected
from each match and a total of five million Br would be obtained
in ticket sales alone during the competition.
Entrance prices range from a high of 100 Br to a low of five Birr.
EFF is supposed to partake 20pc of the profit obtained from ticket
sales to CAF, although the Secretary General speculates that it
is unlikely there would be a net profit margin after covering the
bills and various operational expenses.
EFF has booked accommodations in various inns of the capital.
Around 25 CAF big wigs are currently staying at the Sheraton Addis,
while reservations for 14 match officials are made at the Ghion
Hotel.
National teams of Mali, South Africa, Cameroon and Nigeria are lodging
at the Wabi Shebelle and Imperial is receiving Egyptian, Ghanaian,
while Angola goes to Ethiopia Hotel. Strangely, Addis Abeba Hilton
is left out from the list.
The head of the coordinating committee said that EFF's cost coverage
is limited to 25 representatives in a single delegation, including
players, while the teams pay the expenses for the persons in excess
of the limitation.
On the other hand, the Ethiopian Television would net some 118,000
Br from sponsorship fees of the 16 matches it would transmit live,
Assefa Bekele, deputy general manager of ETV, told Fortune.
ETV would pay around 150,000 Br to the Ethiopian Telecommunications
Corporation because it uses satellite link up to bring the matches
live.Top
ETC to Market
Newly Imported Phone Cards
BY YIBEKAL GETAHUN
Fortune Staff Writer
Although it has been in service for more than a decade in the developed
world, the use of prepaid phone cards to make calls from public
telephone booths will soon be a reality in Ethiopia, should the
snail- pace ETC plans get off the ground as planned.
According to our sources, ETC is to introduce the long overdue technology
installing 200 units that would tentatively function using both
coins and smart-chips. The 200 units are among the reported shipment
of 1,500 apparatus that have arrived at the Port of Djibouti.
According to our sources, ETC has ordered three categories of electronic
cards that are valid to make 100, 200 and 300 calls. Most of the
coin/card pay phones, which are compatible and interfacing both
international and domestic call exchanges, would be installed in
different areas of the metropolis including business centers, Bole
Airport, banks, recreational and market centers.
Contrary to our last week's reporting, these telephone units are
not supplied to ETC by the Florida based Elcotel, whose representative
in Addis denied our report. In fact, we were able to confirm that
the German based electronics manufacturer, SIEMENS, supplied the
apparatus following the Corporation's signing a contract worth two
million Dollars on June 16, 2000.
SIEMENS, whose presence here goes 35 years back, signed the agreement
committing itself to supply 200 card/coin operated units and 1,300
coin operated apparatus, provide the electronic cards, as well as
carry out the installation work of the pay phones, sources told
Fortune.
The company has also agreed to train ETC staff.
Reliable sources disclosed that the pay phones were dispatched on
January 23, 2001, from SIEMENS Spain, which is one of the seats
of the more than 600 manufacturing plants the company operates around
the world.
Of the total apparatus ETC purchased, 100 units have already reached
Addis, while the remaining shipment is still at the port.
Sources said the supplier is currently awaiting the arrival of the
equipment and a green light from ETC to kick off installation.
SIEMENS Ethiopia, according to our sources, has already trained
two of its engineers abroad that would provide technical assistance
for the pay phones.
The supplier is second in the list of the world's top ten electrical
engineering and electronics companies with its worldwide network
and an annual turn over of more than 150 billion Dutch Mark.
ETC officials have, as usual, declined to respond to inquiries made
by Fortune in its attempt to confirm the reports.
Errata
In the news report that appeared on our last week issue, Sunday
March 11, 2001 (Fortune Vol.1 N0. 45), entitled "Millions Dollars
Worth Pay Phones Arrive", we wrongly stated that ETC has made the
procurement of coin boxes from the Florida based, Elcotel. Dearly
regretting the factual error, we would like our readers to enter
a correction, as the fact is, the German based SIEMENS won the contract
to supply 1,500 pay phones. We apologize for the error. Top
Ethiopia's
Export Revenue on the Rise
BY DAWIT TAYE
Fortune Staff Writer
Ethiopia has obtained more than 1.6 billion Br in foreign exchange
in the past six months of this budget year from exports of different
products in excess of 173,000 tons.
This half budget year earnings outstrip last year's same period
by 146.7 million Br showing a 10.1pc growth, while quantity of exported
products has shown an increase of 61.6pc compared to the same period
last year.
According to data obtained from the Customs Authority, coffee is
still at the top of the list generating more than 826 million Br
in foreign exchange followed by skin and hides that earned 238.5
million Br, and khat ranks third registering more than 201million
Br. The remaining revenues were obtained through the exports of
other products such as gold, oil seeds, textile and sugar.
The highest amount of sugar ever exported in this half budget year
has contributed to the increased foreign exchange earnings. The
data shows that more than 54.5 million kg of sugar has been exported
in the past six months, excelling in quantity from all export products
in the list, and ranked fifth in generating foreign exchanges registering
more than 71.3 million Br.
The country has managed to export 37,300 tons more sugar in six
months alone than what it did during the last budget year, which
was 17,200 tons.
From the mining sector gold has become one of the growing foreign
exchange earners. Gold exported to foreign bullion market dramatically
increased in the past six months earning the country more than 44.4
million Br in hard currency from the export of 752Kgs, compared
to the 352Kgs supplied over the same period last year, for 21.9
million Br. Top
CBE
Expands Foreclosing Spree to Djibouti
BY MIKIAS WORKU
Fortune Staff Writer
The Commercial Bank of Ethiopia has put up three different buildings
it owns in Djibouti for foreclosure.
The announcement that appeared on the Djibouti's daily, La Nation,
shows that the bid opening date of one of the buildings on sale
was last Tuesday, March 13, although the outcome could not be known.
CBE put up the house and its 900 Sq. meters premises for sale, setting
the floor price at 346,000 Br after a Djiboutian national allegedly
failed to service his debts.
The Bank has also invited interested bidders for another building
with compounds measuring 1540 Sq. meters formerly occupied by Ethiopian
marines. The building was constructed 15 years ago by a Djiboutian
through loans from the CBE, while it also tendered another with
4250 Sq. meters premises.
Few months earlier, Maritime and Transit Services Enterprise (MTSE)
was negotiating with a Djiboutian to buy a building to use it as
its Djibouti office.Top
8.8m
Br Allocated to Light Addis' Streets
Transporters Invited for Delivery
BY MELAKU DEMISSIE
Fortune Staff Writer
Having a budgeted investment of 8.8 million Br, the City Roads Authority
(AARA) is determined to lighten up the streets of Addis Abeba in
the coming two years.
The Ethiopian Electric Power Corporation (EEPCo) has already been
given the contractual agreement for the rehabilitation and maintenance
of the city's street lighting system.
Sendeku Araya, EEPCo's corporate public relations head, told Fortune
the project, planned to cover 110.73Km road in the capital and the
environs, will begin this month.
Under the agreement, EEPCo is committed to undertake works including
installation of new lines, rehabilitation and maintenance, as well
as erecting concrete, wooden and steel electric poles.
The agreement was signed between Mehiret Debebe, general manager
of EEPCo, and Ismael Ahmed, general manager of AARA,last week.
Meanwhile, EEPCo has invited transporters to bid for a six-month
contract to bring in different imported equipment from the Port
of Djibouti.
According to a tender notice issued by the Corporation, interested
bidders should submit documents filling the required information
including price quotations per ton-kilometer and the specifications
of the vehicles they would use.
The bid submission date lasts up to Tuesday, March 20, and bids
will be opened on the same date at 2:00 p.m. at EEPCo's head quarters,
De Gaulle Sq., Piazza.
Except materials for the construction of hydroelectric power stations,
whose transportation is done by the contractors undertaking the
projects, all imported equipment is delivered to mainland from the
Port by the local transporter that win the upcoming bid. Top
Company
Licensed to Manufacture Solar Operated Implements
By Dawit Taye
Fortune Staff Writer
An Ethiopian professional, who lived in Sweden for about 24 years,
has finalized his preparation to start marketing different kinds
of household equipment that function using solar power.
Minas Dagne, who served for 17 years in a workshop that specializes
in producing solar operated equipment before returning home, has
been issued a license by the Investment Authority to engage in the
production of solar operated materials.
Minas said that he would primarily start producing solar boilers
with a minimum expense of around 400,000 Br.
The new technology, which would cost not more than 4,500 Br per
unit in the market, has an endurance of 20 to 25 years in service.
"We will first start producing on order basis to get acquainted
with the market demand," he said. "With the shortfalls in electricity
supply and scarce fuel, this is the best device even though the
area is still unfamiliar to the public."
According to the study he claims he conducted, 80pc of the raw materials
required to produce the equipment is available in Ethiopia.
"We will soon establish a company at an aggregate capital of 500,000.00
Br and launch production," Minas said.
"Organizations that consume high amount of electricity would benefit
most from the technology."
After looking at the success of the boiler in the community, Minas
has plans to produce different kinds of solar operated equipment
depending on the public's needs.Top
General
Motors to Have Regional Meeting at the Sheraton Addis
The multi-billion Dollars auto manufacturer, General Motors Overseas
Distribution Corporation (GMODC), will have its regional meetings
of its African operations at the Sheraton Addis.
In a press releases both the Sheraton Addis and National Motors
Corporations (NMC), a local exclusive agent to General Motors, issued
this week, dealers will attend from Africa, Middle East, Mediterranean
countries and USA the regional meeting, scheduled to be held for
four days, from March 20-23. Around 50 high profile executives are
expected to attend the meeting, which is coordinated by the NMC.
"During the meeting, participants will discuss on issues of sales
and after sales, in addition to having a one-to-one meeting with
GM Africa representatives, while having the opportunity to see and
enjoy social activities during their stay in our capital," Sheraton's
release stated.Top
Ethiopians
in the Diaspora to Build Dispensary Here
BY MELAKU DEMISSIE
FORTUNE STAFF WRITER
The Ethio-American Hospital Project planned to be executed on the
6,000 Sq. meters plot of land located in an enclosed area at the
crossing of Gotera, will kick off in few months, the City Administration
Lease Office told Fortune.
Ethiopian investors currently residing in the U.S. own the project.
Tsegaye Kiros, head of the City Administration Lease Office, disclosed
that the investors acquired the plot paying around 700,000 Br and
signed an agreement with his office in 1998 intending to build a
referral hospital.
The project was delayed because the government needed the plot to
use it as a hub for loading and unloading freight trucks during
the Ethio-Eritrean war.
"We consulted the investors' representatives about the situation
and they consented to cooperate with the government," Tsegaye said.
"Now that the government is no more interested in the land, we are
preparing a memo to the owners informing them that we are ready
to hand over the land back to them. The construction would start
in the coming months."
He, however, declined to reveal the identity of the investors, who
had presented their project proposals to the office some three years
ago.
In a similar development, the Ethio-American University project
has submitted a chart to the lease office to construct a complex
in Woreda 28, behind the CMC residential quarters. The University
will get a plot of land after paying compensations to the Fuel Wood
Enterprise and residents in the area for their farmland it would
use for the construction. Top
Nile
Insurance to Get Int'l Award
BY MARY DEJENE
Fortune Staff Writer
Nile Insurance Company is to be awarded the International Star Award
in the Category of Gold by Business Initiative Directions (BID),
a Paris based organization, announced the company officials on Saturday,
March 17.
Nile officials said, the BID committee, made up of group of companies
and reputable professionals, decided to present the award during
the 18th International World Quality Commitment (WQC) convention
to be held on May 7.
The press release issued by the insurance company states that the
ceremony will be attended by companies from all over the world that
will receive the awards in the Gold, Platinum and Diamond categories,
together with outstanding leaders from different business fields,
quality experts, personalities in the realm of culture and members
of the diplomatic corps.
WQC award is presented to each company in recognition of corporate
achievement, leadership quality, innovation, excellence, technology
and prestige. Top
EEPCo
Says Power Rationing Unlikely this Year
BY MELAKU DEMISSIE
Fortune Staff Writer
The Ethiopian Electric Power Corporation (EEPCo) is currently undertaking
11 capacity building and reinforcement projects in different parts
of the country at a cost of 802 million Br, while it is assuring
the public that power rationing is unlikely to occur this year.
Sendeku Araya, corporate public relations head, said that projects
that are under implementation include power transmission and distribution
works that would be completed in 2005.
Among the projects, two capacity building projects are in Addis:
Addis East - Addis North and Sebeta - Mekanisa with a total of 25Km
costing 66 million Br.
The government covers the cost of the projects.
Tis Abay II hydroelectric power station, completed at a cost of
506 million Br to generate 42 Mega Watt, conditionally upgraded
to 73 Mega Watt, combined with the Belg rain would contribute in
avoiding power rationing this year, Sendeku says.
The civil works of the Tis Abay project was carried out by a local
company, Sur Construction, and the Yugoslav Enrgo, while the Chinese
Wambao Engineering Corporation took the electromechanical equipment
supply and erection parts.
According to Sendeku, the station has directly entered into the
inter connected system (ICS) joining the 230 KV Bahir Dar station,
including Finchaa, and other stations.
"This would help the country avoid shortfalls in power supply and
demand," he said. The imbalance on the supply and demand last year
was estimated around 15 and 20 MW at peak hour load shortage.
He also said that the corporation has started to generate more power
and the fourth unit erection project will generate 34 MW and can
be upgraded to 184 MW.
"We have now enough reserve power," said Sendeku.
Apart the capacity building and construction of power stations,
the corporation has plans to supply electricity to 164 towns in
the coming five years.Top
EU Slates Highest Aid to Ethiopia
BY MARY DEJENE
Fortune Staff Writer
Ethiopia has managed to get the highest amount of financial aid,
530 million Euros, from the total of 23 billion that the European
Union has slated to provide development assistance to African, Caribbean
and Pacific countries (ACP) under the Cotonou agreement.
The agreement was signed in the capital of Benin, Cotonou, in June
2000, between 77 ACP and 15 EU countries. It was Girma Biruu, minister
for Economic Development and Cooperation (MEDaC) who has signed
the agreement in June representing Ethiopia.
The aid, planned to be disbursed until 2007, would be spent on development
programs of the government in sectors such as health, education,
and food security, including the private sector, civic societies
and NGOs.
Head of the Delegation of the European Commission to Ethiopia, Karl
Harbo, told Fortune that Ethiopia has received 1.7 billion Euros
in financial assistance and additional one million Euros in food
aid from the EU.
In the two days workshop jointly organized by the European Union
and MEDaC, the Economic Adviser of the EU revealed that the new
agreement will focus on regional cooperation and integration. It
also gives recognition to the important role of local governments
and the private sector in contributing to the development process.
Dr. Mulatu Teshome, vice minister of MEDaC, said that a joint working
group of MEDaC and EC Delegation drafts the Country Support Strategy
for Ethiopia.
"In recognition to the significant role of non-state actors in the
development process, the government of Ethiopia is committed to
extend every support to these actors to contribute to the country's
development program," he said.Top
Price
War for AIDS Drugs to Africa
Bristol-Myers Squibb has endeavored to go on better than Merck,
which last week announced it would supply drugs at low price to
all developing countries. Global pharmaceutical companies have plunged
deeper into a price war as they sought to outbid each other and
generic manufacturers to supply cheap AIDS drugs to Africa.
BMS said it would supply the drugs at below cost, although it restricted
its offer to Africa. It also pledged not to allow patents to stand
in the way of access.
The drug company offers suggest the industry, which has come under
a hail of bad publicity, is bowing to pressure to make the lifesaving
drugs accessible to poor countries, where 90pc of the estimated
36 million people infected with HIV live.
BMS said it would sell, to any African country that wished to participate,
Videx at 15 cents a day and Zerit at 85 cents. The drugs are two
elements of the triple-therapy medicine used widely in the west.
GlaxoSmithKline said last May, it would make one HIV drug available
at $2 (£1.36) a day. The Anglo-American company, which dominates
the AIDS drugs market, is reviewing its pricing policy and may extend
its offer.
John McGoldrick, executive vice-president at BMS, said: "We seek
no profits on AIDS drugs in Africa and we will not let our patents
be an obstacle."
The company said it would make its patent on Zerit - rights of which
are licensed exclusively to BMS from Yale University - available
at no cost to treat AIDS in South Africa, the country with the highest
number of HIV cases. The pharmaceuticals industry has become embroiled
in a legal battle with the South African government, which is seeking
to override drug patents in pursuit of cheap medicines.
The offer by BMS and other companies, including Merck and GSK, is
partly designed to demonstrate that patents need not block access
to medicines.
Reaction to the industry initiatives has been guarded from African
governments and campaigners. Only four African governments have
taken up last May's offer by five companies to cut prices of HIV
medicines by up to 90pc.
Some campaigners have suggested the industry is more interested
in improving its flagging public image and preserving support for
strong patent protection than in providing a genuine solution to
the AIDS catastrophe.Top
Trade Envoy to Leave for India
BY MARY DEJENE & DAWIT TAYE
FORTUNE STAFF WRITERS
A sixteen-member business delegation led by the Vice Minister of
Trade and Industry, Brook Debebe, is expected to leave today for
New Delhi, India.
The business trip will last for five days.
Representatives of five governmental organizations including Abebe
Mengesha, general manager of Micro and Small Industries Development
Enterprise, Desalegne Yigzaw, from the production, development and
marketing research department of the Export Promotion Agency, and
Melaku Legesse, from the Trade and Information Bureau of the Agency,
are part of the delegation.
President of the Addis Abeba Chamber of Commerce (AACC), Brehane
Mewa, will lead the ten members that will join the delegation from
the Chamber.
The business trip to New Delhi is the first one for Berhane since
he was elected president in January this year.
The delegation will also participate at the Ethio-India Joint Trade
Committee and Business Council Meeting, which will be held from
March 21 to 22.
Other business people, who are currently abroad, will also go to
New Delhi and participate in the meeting increasing the number of
participants to twenty.
The first joint business council meeting was held in Ethiopia in
1998.
Members of the delegation are mainly from the manufacturing and
importing sector and they will have one-on-one business meetings
with their counterpart members of the New Delhi Chamber of Commerce,
according to information released by the Chamber.
Speaking at the inauguration of the 4th Indian Catalogue Show on
Tuesday, March 13, held at the Ethiopian Chamber Assembly Hall,
the Ambassador of India to Ethiopia, K.P. Ernest, said Indian technology
and products are more appropriate to the Ethiopian economy.
Speaking the affordability of Indian products by third world countries
such as Ethiopia, he mentioned an Indian pharmaceutical company
that sells HIV/AIDS medicines at a price of 350 Dollars, compared
to similar medicaments in the west priced between 10,000 and 15,000
Dollars.
Kassahun Ayele, Minister of Trade and Industry, agrees with the
Ambassador. He said at the show that a high level delegation had
gone to India to share India's experience in vocational and technical
education and returned satisfied with the experience.
More than 100 Indian companies, including manufacturers of hand
tools, telecommunications equipment, textile and clothing, food
products, chemicals, machineries and vehicles had participated at
the show.
The Embassy had previously organized similar annual events between
1995 and 1998. Top
Editorials
Save New Bill from Paralysis
First the good news!
Parliament has adopted the bill for the establishment of the Federal
Tax Appeal Hearing Council. This is a bill that has been in the
pipeline for a long time and business people have been looking forward
to its adoption with great expectation.
It is also good that it endorsed the bill before it went into midyear
recess.
And now our concern.
Many people fear that this bill too, like the one on the electronics
media broadcasting would remain a dead letter unless it is accompanied
with the office or institution that would oversee its implementation.
We share Parliament's expectation that the draft bill on the establishment
of the Federal Tax Appeal Hearing Council would help put in place
a fair and just tax system and lead to the setting up of an independent
body that would hear appeals and complaints by taxpayers so that
they can enjoy impartial ruling.
This in turn would restore confidence not only in the process of
tax arbitration but also in the tax system itself.
The tax assessment and its collection system currently in force
have offended and discouraged many businesses as a result of which
there is a huge backlog in tax appeal cases that the new tax appeal
council yet to be set up will have to tackle as soon as possible.
While the adoption of the new bill is a positive step, its speedy
implementation is much in doubt, if we go by other bills that are
unable to move forward, except published on Negarit Gazeta.
More than a year ago, the previous Parliament adopted the electronics-broadcasting
bill but never bothered to follow up its implementation. The new
Parliament has inherited the same bill whose implementation is long
overdue. How can we then fully trust Parliament that it has endorsed
the bill on the establishment of the tax appeal hearing council
unless we see it established and functioning?
Parliament may be good at endorsing new bills but it is not so when
it comes to making sure their implementations. Endorsing a bill
requires relatively little effort but implementing it is a gargantuan
task given the tradition of apathy and lack of initiative that has
marked the executive branch of the establishment.
This time too, our hope is that paralysis will not kill the new
bill.Top
Editorials
Why not Resort to Collective Bargaining?
The strike called by workers of Midroc Ethiopia Construction (MEC)
two weeks back is still in force and there seem no end to it in
sight as both the employers and the striking workers look determined
not make enough concession to resolve their dispute.
Despite appeals by workers for the owner of the company, namely
famous Saudi tycoon Sheik Mohammed Al-Amoudi to intervene or talk
to them, this could not be realized apparently because the management
of the company preferred to handle the issue all by itself.
Al-Amoudi, famous not only for his generous overtures but also for
his straightforward and open style of dealing with company issues,
could have done a better job had he talked to the striking workers
in person.
Judging from their appeals, the workers seem to have more trust
in him than in the management that has, on more than one occasion,
refused to talk even to the media.
Strikes hurt and they hurt more than one party.
It should be in everyone's interest to make the pain less severe
by resorting to open negotiation instead of each side sticking to
intractable positions.
It should neither be the government that is trying to make political
capital out of its verbal commitment to the workers nor the trade
unions confederation which is bureaucratic, that should be doing
the talking.
Representatives of the striking workers and the management of MEC,
preferably in the presence of Sheik Al-Amoudi, should sit down together
to sort out things.
The company this week declared that it has so far lost an estimated
three million Birr as a result of the strike of workers at various
construction sites.
The strike is still under way and the losses to the company will
continue to rise. But it is not only the company that is losing.
The negative effects of the strike are far reaching.
Workers on strike are also the losers, as they do not get their
salaries and wages while out of work. Their families are also suffering
because the workers, most of whom must be heads of families, have
been going home without pay all these days.
The country and the economy too suffer to some extent, as strikes
are bad signals for foreign investors in particular as they produce
a negative image of industrial instability.
So it would be in the interest of all parties to resort to immediate
face-to-face negotiations. Further delay would only complicate matter's
and would lead to further damages.Top
Opinion
By Yosef B.
Think More of the Economy and Less of Politics
The latest backpedaling on the peace process by the Eritreans
might be an attempt to exploit Ethiopia's economic woes to their
own advantage, says our regular columnist - Yosef B. He argues that
Ethiopia should not be allowed to be a pawn in the chessboard of
cynical political calculations and lenders should think more about
the needs of the country than the vicissitudes in politics.
If you think Eritrea's President Issayas Afewerki is a fool, you
are dead wrong.
Look at his recent move on the political chessboard. Ethiopia withdrew
its troops from areas it occupied following the May offensive. The
Ethiopian authorities were even overzealous (a bit naive too, should
I say) and declared that they have completed their withdrawal a
few days before the agreed time.
What did Issayas do?
He waited until the Ethiopians are out and refused to pull back
his troops. Do you think this is done on the impulse of the time?
I do not think so.
Issayas is a cold-blooded political chameleon and his every move
is calculated and synchronized with the domestic political and economic
process in Ethiopia. He has been licking his wounds for sometime
and now he is bouncing back with revenge.
And now that the ruling party is said to be tied up with long and
serious disputes at the ongoing secret conference of the party,
(if we go by the indications coming from sources close to it), the
economy might continue to sustain additional damages due to the
leadership vacuum that has appeared even temporarily.
The Eritreans seem to be exploiting the situation to their own advantage.
Asmara's refusal to withdraw its troops from the disputed territory
according to a previously agreed time table might be a calculated
move to further undermine Ethiopia's chance to secure badly needed
foreign loans to jump start its economy which is in a serious dilemma.
According to Teklewold Atnafu, the governor of the National Bank
of Ethiopia who recently presented a report to Parliament, there
is enough hard currency to cover imports for only 9.5 weeks - a
sharp decline from the peak 22.6 weeks import capacity of hard currency
reserves in 1996/97.
Issayas knows that Ethiopia's economy is seriously sick and that
its recovery much depends on the amount of money international financial
institutions are willing to pump into it. This in turn depends on
progress in the peace process.
In order to prevent Ethiopia from getting this money, Issayas has
to sabotage the peace process and indirectly tell lenders that they
will have to reconsider their plan to come to the rescue of the
Ethiopian economy, which will continue to bleed in the mean time.
The second thing is that Issayas must be guessing that the Ethiopian
regime has serious internal weaknesses as the level of corruption
has allegedly reached the highest echelons of power. He also knows
that the government is not much popular at this particular time
although the recent polls tell another story.
Eritrean radio has been hammering on this theme for obvious reasons.
Issayas also knows that many people in Ethiopia, including the opposition,
share his views. He might be thinking that this is the right time
to put strenuous conditions on the Ethiopian government's request
for loans by striking at the weak joints and making the conditions
for external financial assistance even more difficult.
It is also obvious that donors are closely watching the unfolding
of the peace process between the two countries. The general consensus
among lenders is that financial assistance or loans should be predicated
on progress in the peace process. Loan or assistance is thus being
tied up with government behavior and not on the needs of the Ethiopian
economy.
As a result the sector is accidentally or inadvertently being made
the captive of politics, which should not have been.
Ethiopia should not be allowed to be a pawn in the chessboard of
cynical political calculations and lenders should think more about
the needs of the country's economy than the vicissitudes in politics.
If they decide to wait until the political process assumes a level
of stability satisfactory to them, they would certainly be condemning
the country to further economic malaise and the private sector would
obviously be the biggest loser.Top
Economic
Commentary
By Abebe Tadesse
Light Amidst Darkness - EEPCo's Paradox
Ethiopian Electric and Power Corporation (EEPCo) officials have
recently told us that the Corporation has spent more than two billion
Birr in the past two years to rehabilitate the existing plants that
are scattered across the southern part of the country.
Strangely enough, however, power failures and blackouts have started
recurring more frequently just after the Corporation's assurances
to the public that supply scaled up sustainable power.
The much-talked about rehabilitation, which has consumed considerable
fund, could not deliver us from darkness as a result of power failure
and interruption. Understandably, special efforts have been exerted
by the Corporation to meet the increasing light and energy demands
through expediting the completion of the power plant construction
projects.
But, EEPCo still encounters unresolved problems of labor strike
at one of the power plant construction projects, Gilgel Gibe, with
an installed capacity of 194 MW at a construction cost of 2.12 billion
Br and planned to be completed by the year 2002.
The other three power plant construction projects are underway,
while other two projects are completed.
Aluto-Langano Geothermal Project is one that has consumed an estimated
cost of 130.5 million Br having a production capacity of 7.3 MW,
while the other newly completed project, Tis Abay II, has an installed
capacity of 73 MW, costing 506 million Br.
Located some 33Km away from Bahir Dar, the regional capital of Amhara
Regional State, Tis Abay II, is one of EEPCo's projects that does
not require the construction of a dam other than a short transmission
line.
There are more to come that are under construction.
The 2.6 billion Br, 225 MW Tekeze Project, at the border of Tigray
and Gondar, planned to be completed by the year 2007, while the
150 MW Gojeb, found in Southern regional state, cost an estimated
2.7 billion Br to be completed in 2006. The Finchaa 4th Unit requires
an investment of 143.8 million Br to generate 34 MW is and planned
to be completed by 2002.
All the completed and ongoing projects are perhaps indications of
EEPCo's unbalanced priority given to the expansion of generating
capacity, while it is under investing in transmission and distribution
lines in spite of the fact that the expansion or improvement of
system interconnections and the strengthening of distribution networks
may result in fetching higher rates of return.
Another frequently under funded area is maintenance.
A blown fuse in a transformer may mean days of interruption before
the overworked maintenance crew fixes the problem while fractured
bearing somewhere in a hydroelectric installation may mean no electricity
for days.
On the average, the on-line availability for power plants is less
than 60pc compared to 80pc under international best practice. Even
when the current stays on, large voltage fluctuations cause appliances
to burn out with some frequency, while extension of the power grid
is also often long delayed.
Moreover, much waste occurs because of the leakage from backward
long distance transmission systems. Owing to poor maintenance, Ethiopia
has been forced to build surplus reserves of generating capacity
at considerable costs. The high returns obtained from restoring
system efficiency through increased spending on maintenance are
vital but such considerations are often absent from the system planning.
Electricity losses are as high as 30pc or more, of which a portion
is attributable to pilfering, unreliable supplies and prevalence
of a substantial amount of unmet demand.
Poor maintenance, resulting in breakdowns and lengthy unit outages
tends to force investment in new plants.
Establishing an appropriate mix among investments in generation,
transmission and distribution in the electric power system is important
both to ensure optimum utilization of capacity and maximize efficiency
by reducing system loss and improving load management capability.
A reduction of distribution losses from 10pc to 15pc would be equivalent
to one year's growth in demand.
A calorie saved is often worth a good deal more than a calorie produced.
According to World Bank's estimation, the cost of saving a kilowatt
of electricity by improving the distribution system may be only
a third as much as the cost of producing an additional kilowatt
from new generation equipment.
Further significant opportunities for energy savings are to be found
in the electric power industry, particularly by minimizing power
losses in transmission and distribution systems. Such losses amount
to more than 20pc of power generated. Under normal circumstances,
transmission and distribution losses could be reduced to in an economically
justified manner to between four and eight per cent of the total
power generated.
Ethiopia should try to cut the existing losses by a third to a half.
EEPCo has only itself to blame for the current power disruption
sustained by its inefficiency. Even the water shortage alleged to
have caused power shortage for long should no more serve as a scapegoat
to the problem, since the erratic rain is profusely falling day
and night as if to disprove EELPCo's claim.
In fact, the Corporation's power generating strategy is more dependent
on rain than Ethiopian farming system when seeing more than 95pc
of the country's total electricity generation emanates from water
- based system.
The Corporation should try to maximize its efficiency by increasing
its on time maintenance performance and reducing power leakage.
Unfortunately, EEPCo is seen keen blaming water shortage than looking
into its efficiency problem.
In fact, this is the time for the electric industry to scrutinize
its performance and not for search of scapegoats.Top
Fortune
Restaurant review
Pizzeria Italia ****
Service ***
Consistent service delivery and uniform customer treatment appears
to be the shortfalls that can be observed surfacing at this restaurant.
While some of the attendants try to be attentive and polite to their
customers, some of their colleagues demonstrate carelessness and
do not even seem courteous in their entire interactions with customers.
There are instances where you should lean on your patience before
these attendants notice your presence and come to take your orders.
You can observe in another corner attendants ushering around patrons
the minute they take their seats. This shows that some attendants
are not doing their jobs properly so need to be sharpened because
their inefficiency reflects on the overall performance of the place,
if not undermine their colleagues' efforts. Is it not a bit offending
to see such inconsistency within the same restaurant? Delays occur,
fortunately not all the time. And once meals are served, most of
the waiters do not take time to make the routine middle-meal inquiries
at the tables they are serving. One of them even disappeared God
knows where from sight after bringing the dishes. The managers should
try to straighten out the inconsistent service they have.
Food ****
The food is wonderful. The place offers a good variety of pizzas
with considerable sizes served hot on a wooden plate and tasting
delicious. The other Italian dishes are also good and appetizing.
Environment ***
The place offers an open air service with a beautifully arranged
garden on the left side of the compound where a small pavilion-like
structure is set up to accommodate customers, while tables and chairs
are available in the garden.
The same kind of arrangement, in a larger format, is also found
along the right corner although the furniture at this particular
corner were cheap plastic tables and chairs like the ones found
in most pastries in town, and not up to the standard of the restaurant.
On the other hand, the simple but attractive outdoor set up allows
customers to relax and savor their meals in an enlightened environment.
There are different rooms available for customers but the atmosphere
is not as lucid as it is in the outside and somehow lacks coziness.
One of the rooms, first right, for instance, is a passageway for
attendants, who come and go carrying orders or used plates, while
only three or four tables exist and not all of them dressed up.
It seems as if it is undergoing some kind of renovation and is not
given proper attention.
The place is found a bit farther from the main road. The surroundings
are mostly old residences, cannot be described as impeccably laid
environment. But sight seeing is not the main issue here.
Price ****
The food amply deserves the price. The highest priced pizza goes
for 35 Br, while there are other varieties, equally delicious, that
cost much lower. There are pasta dishes that cost as low as 15 Br,
which is fair and reasonable. But due to the inconsistency of the
attendants, one who perchance falls on the wrong one might think
the service part needs improvement to be up to the bill.
Parking ****
The Restaurant does not have a fenced parking lot but has reserved
a paved strip at the threshold and there is sufficient space along
the border of the rather wide road, which makes it convenient for
an easy parking. And being feeder road, traffic is scarce and cars
are not exposed to accidents. There are security men watching. In
general, parking would not be a problem.
Sanitation ***
Unusual to similar places, there is only one restroom available
so ladies and gents are forced to share it in turns. The smallness
of the room, which also needs to lighten up a bit, does not contribute
to one's comfort. Fortunately, the tiny restroom is well kept, fully
furnished and neat, even decorated with flowers that serpent on
the walls.Top
My
Perspective
Driving in Addis - IV
By Yonas Kebede
No Medal for the Addis Driver
One morning, 30 years ago, my professor of Penal Law walked in the
classroom and condescendingly asked, "why is it that you people
pull over to the right before making a left turn?"
He meant . . . instead of moving to the center of the road allowing
the cars from behind to pass safely on the right. He also meant,
you people do not know how to drive. I remember how we all stared
back at him wondering what the hell he was so upset about.
I am reminded of his frustration whenever a driver ahead of me pulls
over to the right curb with the left blinker flashing and a limp
hand waving me to pass on the left. It makes you wonder how many
drivers are aware of the traffic rules or whether drivers have to
know anything about driving safety before they are licensed.
Stop signs at intersections are, for the most part, ignored unless
a menacing four-wheel drive with chrome grid up to his ying-yang
is fast approaching.
The only stop sign that commands respect is the red light, which
happens to be the one rule that is strictly enforced by the traffic
police. But, there might be no electricity.
All of us want to drive on the center of the road and behave as
if it is our personal Real Estate. Other drivers do not exist.
The Addis driver is alone, self absorbed, narcissistic. No one can
be in front of him. He must pass all other cars no matter what their
speed. She will pass on the left, the right, the center or whatever,
but she must pass.
Safety be damned.
Autos will swing to the wrong side of the street for any reason,
risking head-on collisions. It could be to avoid pothole, to say
hello to a friend, to shop or to park on the wrong side of the street.
You name it and it is a perfectly good excuse for suddenly plunging
in front of traffic moving in the opposite direction.
If you have had the misfortune of driving behind one of those "Learner"
plated vehicles, you would think that it must be a drunk driver.
Does the "instructor" have any inkling about safety, you think?
This is the point of diminishing returns, I think.
The blind leading the blind.
One day that student driver might become a driving instructor. Or,
she could be driving a sleek automobile with a phone to one ear,
and just one hand for the steering wheel and the stick shift.
The taxi drivers are the most skilled operators of the vehicle.
Unfortunately for us, their skill is also unmatched at creating
havoc on the road. Nothing matters more than picking up that passenger
and moving on to the next drop. At war with everyone that is not
in the taxi business and at war with one another, they are the most
visible culprits.
Taxis converge at intersections or traffic circles and park at an
angle that permits them a quick getaway, which often means taking
two lanes.
Across the street the same predicament.
There might be half a lane left for traffic in both directions.
That is, if no one is trying to make a "U" turn in the middle of
it all, or if a pedestrian has not already claimed it for his coffee
break.
Moving at snail pace, stopping a million times for a million reasons,
anytime and any place is a specialty of the "Wiyiyit", a Toyota
truck converted into a taxi with passenger access in the rear. God
help you if you have to get somewhere in a hurry and you are stuck
behind one of these. They belong to completely different planet.
Borrow a spacecraft.
But taxi drivers are not entirely alone in this. The stuff is contagious.
No one will get a medal here.
Next time you witness something totally outrageous on the road,
(this will be soon, I assure you) make a mental note of the color
of the license plate and the size of the car, and the corresponding
attitude of the driver. Compare this to your own.
Do you notice any difference?Top
View
From Arada
By Girma Feyissa
Clean Thoughts Clean Rubbish
Nurbegen was a kid migrant from the East Shoa Zone who had found
refuge in the shoe-shining industry some where in northern Addis
a few years ago.
I was his customer and I knew him good. He was growing both physically
and mentally with the passing years under my nose when suddenly
he disappeared into thin air. I did not inquire about him as we
had only a nodding acquaintance between us.
You know such matters are routine one does not bother about.
Last week, though, I met Nurbegen, or Nuru for short (I call him
so), but this time he had changed quite a lot. I could hardly believe
it could be him.
He has now emerged a tall muscular bully with full-grown biceps
showing. He walks tall and jumpy as in the movies and imposes himself
upon everybody in our neighborhood asking for money or better termed
- raising fund for the little "park" project he is coordinating.
Nuru is pausing as a team leader.
He carries an exercise book and a ball-point and approaches every
passerby, pedestrian or not, and without much ado collects money
- not less than five Birr per household. He scribbles names and
figures or so he appears to be doing so, on the notebook, stuffs
the collections in a small plastic bag.
"If you have not seen Nuru's park you have not seen nothing yet,"
says Getachew, a popular broker in the area.
Nuru's park is nothing but one of these new catches emanating from
Gashe Abera Molla project ideas of cleaning rubbish and beautifying
the city.
This one is located opposite Wereda 9 City Administration Office,
on Belay Zelleke Rd. That particular place is known as Semien Mazegaja
(northern municipality).
Nuru & Company has ventured to fence a small open plot of land at
the side of the road leading to Kechene Medhanialem Cathedral. They
have named it Semien M. Park.
What they did here is what other youngsters are doing elsewhere
in the city, put up some marks or symbols, erect a fence around
the "park", paint some boulders, some characters, plant flowers
symmetrically, dig some earth and place some imported grass to serve
as lawn, plant some slogans and scripts of agitations.
That is all there is to it.
At least this is what Nuru's park looks like, a new scene that has
replaced a mass of rubbish and a huge dustbin, always full with
trash and all. The kids have changed the looks of the area overnight.
People stop to see and try to figure out what is in there.
Of course they give words of praise lavishly.
Some even offer professional views and comments on the layout arrangements,
wordings of slogans, colors and artistic touches of the park. There
are others who are interested to know the accounting side of the
project. How much money was collected, what are the expenses? Is
the project our money's worth bla bla . . .
There are those who would like to see the bright side of unfolding
events. "Thanks to Seleshi Demissie, these loafers and good-for-nothing
kids are gainfully employing themselves and performing worthwhile
tasks," quipped a bystander, perhaps telling only what was too obvious
to the appreciative onlookers that were gathering around to see
what Nurbugen & Company were doing in that fence painted black and
white.
What started as a pilot project at De Gaulle Square in the middle
of piazza some time ago, is expanding outward like a wave circle
in dead water created when a pebble is thrown in or dropped. Like
a reverberating echo, little parks are cropping up all over the
city.
I am sure you may have seen some of them.
Merkato of all places has also its share. From Mearab Hotel to Sebategna,
American Gibi, Messalmia, Mesgid etc . . . you name it.
Ras Makonnen Bridge on the Haile Selassie Avenue is a comprehensive
package where artist Seleshi has exhibited his talents fully.
The whole thing is spectacular. It is like a consortium of creative
thinkers joining hands to put everything they have on the table
for show. This table has a variety of landscape featuring a sloppy
hill cut by a staircase, a masonry work monument of Ras Makonnen,
father of the late emperor, a water fountain, a road, and a reasonably
flat terrain bordering a small river.
There is also a structure, apparently a big public bathroom.
There stands in the middle of the park a huge drawing of a human
portrait, perhaps depicting Gashe Aberra Molla, a legend who was
apparently popular in Addis years ago, a character of Sileshi's
own imaginations.
Big jars made of salvaged tires are placed at convenient places
along the fence serving as dustbins. Traveling to Piazza from Arat
Kilo, I used to step down from a cub around Cinema Empire. These
days I ask the drivers to drop me before Ras Makonnen Bridge so
that I can have a little leisure time to see the daily progress
and development of the park.
I cherish the scenery.
The other side of De Gaulle square's beauty shows quite something
else.
Right across the turning road opposite Arada Bldg or Mahmoud Music
Shop, near the public toilet, you find two dustbins placed side
by side as if ready to complain to the authorities thereabouts about
the way they are being regarded by the general dwellers since those
pretty jars have replaced them.
These dustbins are being frequently stuffed with trash.
Opposite the now functional Cinema Empire, there is a narrow road
leading to Arsho Laboratory or to an access of a major road leading
to the parliament. Take this narrow road and you will see a vacant
pocket plot of land filled with rubbish, a few meters from the turn.
"Why don't they lease this plot of land?" asked a fellow taxi passenger
wondering how filthy the central park of Piazza could be if the
backyards are revealed.
"What does it matter? They may lease the land but don't let you
build your house. Don't you see what they have done to the Sheik?
They don't let him start construction," said the taxi driver, an
elderly person who would have looked much impressive if he were
to drive a heavy-duty truck, he was referring to the "blue enclave"
right in the middle of the capital.
He made no mention of the ongoing strike by Midroc Construction's
employees.
I was passing by the stadium the other day when I saw some patching
work going on at the parking lot. This must be related to the preparation
of hosting the umpteenth African countries cap final of some category
for all I care.
The area is filled with smog and smells hot tarmac being sprayed
over the mix.
Some women wearing wide brimmed straw hats spread sand using spades
making scorching hoarse noise. Far away some youngsters brush paint
the walls of the pitch.
Installation of lighting and public address systems is going on.
A lot of activities were underway. I wonder if the coach of the
national eleven is preparing the players for the match with equal
zeal and commitment.
Any ways, by the end of this day, we will have known something we
wish to know. Victory!
Best of lucks to our team!Top
View
Point
What Went Wrong at Midroc Construction?
An Insider's Analysis of the Management-Labor Standoff that ha Rocked
Ethiopia's Wealthiest Investor
- The confrontation workers and management of Midroc Ethiopia
has been the talk of the town ever since it exploded into open confrontation
a couple of weeks.The principal player, Sheik Mohammad Hussein Al-Amoudi
had been strangely silent on the issue. Here is an insider's view
of the standoff.
-
On the January 19th afternoon, the eve of Timket (Ethiopian Epiphany),
working session at Midroc Construction sites has been closed on
the ground that it would be compensated sometime convenient in the
future.
Based on this, the manager of the OAU conference hall building construction
project (apparently under instructions by the Acting Deputy General
Manager, Engineer Shimeles Eshete) instructed the workers of the
project to continue working one Saturday afternoon (February 17)
in lieu of the eve afternoon.
However, the employees complained that "it is customary that we
are always allowed to take off eve afternoons without compensation.
Why is it different this time?"
Up on this compliant, the employees defied the project manager's
instruction and took off that Saturday afternoon as usual.
The following Monday morning (February 19), the Acting Deputy Manager,
together with his second in command, went to warn the employees,
instead of discussing the problem with them. I would rather say
the Acting Deputy Manager bluffed lots of nonsense. He was delivering
highly inflammatory remarks.
To mention a couple of them, he told the workers that he has the
discretion to fire all and has a distinguished skill of forming
better crew in three days. He told them that all are good for nothing
residues, while the better ones have already left the company for
a better opportunity.
A "manager" with a capacity of forming better crew in no time could
not even realize that he could not retain better workers with better
employment package.
What a paradox!!
In this flared up atmosphere, the workers on their side demanded
their immediate dismissal rather than being treated inhumanly. In
fact, they were too hot to come to their senses and some of them
even tried physical confrontation with the Acting Deputy General
Manager.
In response to their action, the "capable" "energetic", and "responsible"
manager has used his "wisdom" of human resource management and fired
some 13 of them on the spot.
This was, however, nothing but reprisal. He flagrantly used the
authority Sheik Mohammed entrusted on him just to fire employees
courageous enough to speak their mind.
Then there we are.
The employees went furious. Stopped working, lodged some demands
as a precondition to report back to work. Amongst the demands, revoking
the decision with regard to dismissal of the employees stood highest.
This time other interested parties stepped in, notably the trade
unions, their federation, and the media.
Management avoided the media for reasons best known to itself, whereas
the media capitalized on statements delivered by emotional workers.
Parallel to this, the trade unions federation on its part exploited
this opportunity to incite workers of other projects to join the
strike as a form of expressing solidarity that has challenged one
of Midroc's subsidiaries, established having a strategic objective
leading construction sector in the country, and eventually capturing
cross boundary markets by enhancing efficiency and productivity.
The inception and birth of Midroc Construction, originally known
as Al-Tad Construction, is connected with the construction of Sheraton
Addis.
As the owners' investment in various sectors of the economy grew,
so did the construction company.
In-house construction projects such as Salam Hospital Development,
Sheraton Addis (Phase I completed), Awassa Pepsi-Cola Plant, and
NANI Building are among the ones being constructed by the company.
Apart from the above in-house projects, the Midroc Construction
is also engaged in the construction of Mekele Referral Hospital,
and OAU Conference Hall Building Projects.
Thus, no doubt that growth in the size of the company entailed growth
in manpower holding in various trades.
Although has Grade I qualification from the licensing ministry,
nearly 95pc of the company's engagement is confined to undertaking
in-house projects, most of whom require high technical expertise,
particularly at the Sheraton Addis where considerable number of
employees have acquired high technical skills in a manner we shall
feel proud of.
Pity was it then that no increment of salary whatsoever in its nature
has been made to the employees of the company (with the exception
of a few) in the last four years.
Much to the dismay of employees, a year ago, salary increment for
certain group of employees (the above exceptions) was put into effect
as a form of salary adjustment. This has been done contrary to the
advise of the responsible management section.
Points argued were: the requirement of salary adjustment was poorly
timed because by then what the company was paying had exceeded what
the construction industry was offering.
The partial or discriminatory increment might also have adverse
effects on the moral of other employees, while almost all other
sister companies make salary increment on annual basis.
This has been the second encounter of labor-management tension.
The first encounter of labor-management conflict has resulted in
the dismissal of four or five executive members of the company's
trade union.
THE INVESTOR
To date, more than 2,600 employees are hired in the company. And
an average Ethiopian family size may have five support needing members
per employee (by conservative reckoning). The arithmetic leads us
to conclude that on the average more than 13,000 mouths are being
fed by virtue of the owner's investment in this sector.
Some people wonder why Sheik Al-Amoudi has been so far reserved
from calming the turbulence, and why he remains aloof.
I believe he has a magnanimous nature in that he has vast rooms
to entertain mistakes, in fact expensive mistakes, but is strongly
keen to remark that lessons are drawn afterwards. In doing so, he
ensures that knowledge is obtained; attitudinal changes are made,
and more managerial skills are developed. He ensures that learning
by doing serves the purpose more than changing personalities.
Nevertheless, much to his disappointment, some of these managers
are failing him in that they are missing or rather eliminating the
opportunity to learn from challenges facing them. It is regrettably
very true that these managers are ill prepared to share his vision,
unlike their vigilance to share his pocket.
To my best knowledge, I have never known (I wonder if I would ever
see again) an investor of such type who invests heavily on human
resource development even to the extent of financing grave mistakes.
THE MANAGEMENT
I should say that the management of Midroc Construction is simply
nothing more than a one-man-show. Feeling ashamed, I should say
that the Acting Deputy General Manager is a man that claims to be
an ivory tower intellectual, whose obsession to monopoly of authority
goes beyond belief, i.e., down to the level to authorizing transfer
of janitors.
How can one think of such a man disengaging himself from routine
things and pay attention to more important issues such as strategic
issues, ensuring efficient and careful utilization of resources
specially that of human - the delicate resource.
One can hardly say that there is a management team. Of course, there
are people around but with nominal existence as authoritative organs.
With very few exceptions, just only to sprinkle grace to the man.
Under such circumstances, it is little wonder that the man tries
to solve any problem the way he thinks right. It is no wonder that
he inflamed the rage of the employees. Irrespective of the status
one is holding, a person should be given due respect only as a human
being. By the same token, employees of OAU Conference Hall Project
are human beings before they are janitors.
But the Acting Deputy General Manager has chosen to deny their existence
as human beings and eventually their rights. As a result, it would
only be a natural outcome that they would become outrageous that
they are denied human recognition. They would be more outrageous
when some colleagues are fired in pursuit of the human recognition
and claim of some benefits.
What else could incite workers more than the human factor?
Evidently, management of the company is supposed to run Grade 1
licensed construction firm, though qualifying as Grade 1 is one
thing against remaining accordingly. It would not be a wild guess,
if not intelligent, that the company will be subjected to losses
in the order of millions. And I am sure that this is going to be
conveniently attributed solely to the workers illegal strike. And
not to their causes.
Certainly, it is not uncommon to secure safe scapegoats for management
malpractice. Nevertheless, it will not in any way be safe to the
company. That is the greatest worry.
TRADE UNIONS FEDERATION
The labor-management problem of Midroc Construction did not begin
this year. This is the second incident. During the former incident,
the trade unions federation tried its best to mediate the dispute,
but in vain. It rather lost executive committee members of the Company's
labor union who were fired on account of disciplinary measures.
Federation had exhausted all legal actions, including protest in
demonstration, but without any result.
I think, this time around Federation opted to tactical, not necessarily
legal, moves. From the strictest legal point of view, it is clear
that it should not advise workers of various projects to go on strike
without giving due considerations to the labor law proclamation
(42/85) requirements of article 158 and 159.
But on the other hand, from a strictly practical point of view,
missing this opportunity would have amounted to not only evading
the irresponsible incitement of the Acting Deputy General Manager
but also missing the self-organized movement of the employees against
management in general and the manager in particular.
The opportunity created by the "leading" man in the management team
was too tempting to be missed even if violating laws. Looking back,
past experience proved same.
Hence, putting legitimacy aside, the tactical move certainly helped
at least to cause panic from the guilty conscious and at most help
draw important lessons (if at all there is readiness).
THE MEDIA
The public has the right to know what is happening around. It has
an interest on the activities of any given company let alone Midroc
Construction considering their direct bearing upon the life of the
public. Therefore, the media, among others, has the role of putting
out information, be it accurate or otherwise depending upon the
level of reliability of the source.
This being the fact, Midroc Construction's management has intentionally
avoided the media despite their repeated effort to inform the public
about the situation, efforts, and handling of the case by management
in resolving the dispute.
By and large, Midroc family has the highest esteem in the eyes of
the public. No less towards Midroc Construction. To make things
worse, the apparent contempt for the media surely snowballs to the
apparent contempt for the public.
It does not require much effort to realize that the public would
have been in a better footing to have a fair view and resulting
better judgment of the case had it had information from both sides.
Disappointing as it sounds, the company's image is suffering a serious
set back.
Labor-management conflict is a possible phenomenon that may happen
any time. Sometimes, it is a natural and inevitable outcome. Conflict
is an outcome resulting from poor communication, lack of openness
and trust between management and employee, failure of managers to
be responsive to the needs and aspirations of their employees, and
failure of employees to understand real situations.
Ironically, what had happened to Midroc Construction was a blessing
in disguise. But mishandling led it to undesired results. On the
other hand, the opportunity is still there for the management to
take its lessons.
To me, the logical conclusion following the analysis of developments
surrounding the standoff is that management at Midroc Construction
is terribly sick. As an insider, I feel the pain. It is suffering
from a disease whose virus is clearly identifiable.
Now is the time to take curative measures. I am afraid that surviving
this situation must not lead to the conclusion of putting all the
blame on the employees. Employees' misconduct is an effect of a
certain cause - a cause related to the malicious intent of the Acting
Deputy General Manager's instruction in firing those employees.
The center of gravity for his "leadership" resides in his make or
break attitude. No compromise for the in-between. He should not
come out clean hand from this quagmire. What he has done is entirely
wrong both on human and ethical grounds.
Hence, it is only appropriate that members in the management team
need to direct their attention to the sources of the tension and
correct these malfunctioning in order to improve group and organizational
performance. Top
Interview
In the Midst of a Growing Tension, Employers Federation Tries to
Stand Tall
In the midst of a growing tension between labor and employers, a
Federation that has remained low profile but reactivated after two
decades of nonexistence was in the limelight at the end of last
week. It was not, however, to say something on the growing confrontation.
It was rather to reintroduce itself with the authorities and the
public following the second election of its board members in four
years of its reestablishment.
Why did the Ethiopian Employers Federation choose to have a low
profile in this rather high profile dispute where its two other
partners, the labor unions confederation and the government, have
been deeply involved?
The Federation's President, Roberto Iacona, who has been reelected
for a second term told our Managing Editor, Tamrat G. Giorgis, that
his Federation has been preoccupied with organizing itself.
Roberto: In order to say anything on any matter we have to
be organized, which we are not yet. We have to have a strong secretariat
with a qualified manpower and a legal department.
Fortune: But, as a president of employers federation, how
do you react to the growing tension between the labor and management
of Midroc Construction?
Roberto:Problems are always around. The best thing to do is challenge
the problems and find solutions. The Midroc case, I think, is more
or less solved by now.
Fortune: Did you extend your help to the company to contribute
in the process of solving the crises?
Roberto: Yes, first we called the management following the
media report on the strike, although it was difficult to get in
touch with them. Then we faxed to them pledging our help so that
they would communicate with us using the fax and telephone number
that we had put on the message. I believe they may have been busy
that week with other priorities and they did not respond to our
messages.
Fortune: I know your counterpart Ato Amare Alemayehu, president
of the Confederation of Ethiopian Trade Unions (CETU) is involved
in this issue. As a representative of the employers, did you in
any way discuss this with him, formally or informally?
Roberto: There was no particular case we had, although there
are discussions on general issues. The problem, however, is not
mechanical one but rather attitudinal problem that convincing one
another could be very difficult. It is a matter of ones opinion
and belief. As I said before, we are not yet organized and it is
difficult to say anything on the issue. But I know Ato Amare would
like to have a strong employers federation because it will help
him to solve his own problem too.
Fortune: There is this tripartite group where the government
meets both with your Federation and CETU on advisory board level.
Are you planning to take this particular case to this meeting?
Roberto: The advisory board does not deal with individual
cases. I believe the minister, who knows better than us what is
happening in the country, is already aware of the problem and is
trying to negotiate on the left over problems.
Fortune: If you do not discuss on individual cases, what
else do you raise at this tripartite meeting that would benefit
employers that you represent?
Roberto: The meeting is a good input for the minister to
understand the issues between workers and employers. And it can
advise the government to take the necessary action so that it gets
a win-win situation through the tripartite system.
Fortune: What kind of assistance does your federation provide
when employers get in to problems with their labor?
Roberto: It all depends on the nature of the problem. We
can provide an expert and even ask organizations for help. Since
the request will be from a federation than an individual, it is
easier to get assistance and act effectively.
Fortune: What do you require when companies get interested
to be members of your federation?
Roberto: As long as they are employers of people with valid
business or investment license, that is all they need to have to
be eligible to be our members.
Fortune: Now that you have reorganized your leadership, the
secretariat as well as the entire federation structure, where would
you like to go from here?
Roberto:First and foremost, we have to make a good analysis
on the needs of our members. Subsequently, we have to lay down our
strategies on how to satisfy these needs. The most important mission
will be for us to find a way to create a very conducive environment
in the industry. Having this in mind, we would like to have different
programs that will organize employers as they are supposed to be,
which will require massive awareness among ourselves. If one has
a problem, instead of dealing with it by his/her own self, the Federation
can be an immediate partner in giving assistance and provide the
legal framework on how to go about it. It can also serve as a bridge
between the workers and the management of the company, making it
more profitable, quality oriented, safe, and competitive.
Fortune: From your experience as a manager and owner of your
own industry, what do you suggest is best to solve management-labor
tension?
Roberto: It is impossible to neglect the request of employees.
At the end of the day, workers are part and parcel of our life.
I think people are capable of solving bigger crisis. Neither is
management-labor problem a new phenomenon. Both sides must be willing
and prepared to resolve their differences through discussions and
negotiations that would bring mutual benefits.Top
ECONOMIC & INVESTMENT INDICATORS
Trends
Bee's Wax Export
By Abebe Tadesse
Ethiopia is the largest honey producing country in Africa, together
with 3,200 tons of wax annually exported, while honey is estimated
to be at 25,000 tons.
This should not be a surprising amount considering Ethiopia's long-standing
tradition in bee keeping with its mainly practiced traditional single
chamber, fixed camb hives. Production from traditional hives is
very low: Five to six kilogram per hive per annum.
Ethiopia's geographic location and adverse botanical base flowering
over different seasons have resulted in an annual production of
some 24,600 tons of honey. This represents about a third of the
continent's total honey production.
Apiculture in Ethiopia plays an important role in the cash economy
of the peasantry, in meeting mainly the beverage requirements of
the urban population, and in the national economy, though its contribution
in foreign exchange earnings is minimal.
Market studies undertaken in 1990/91 indicate that 19pc to 24pc
of the total domestic production of honey is used as table honey,
while 55pc to 66pc is used for production of Tej (a fermented traditional
beverage - sweet and very strong though).
Per capita honey consumption in the country is about half-a-kilogram
a year.
The number of beehives, however, declined from 3.36 million in 1996/97
to 3.1 million in 1997/98, a declining rate of 7.7pc.
The largest beehive population is found in Oromia, registering 1,252,930,
while the smallest numbers of beehives are found in Addis, only
370.
Honey has also been serving as a means of earning foreign exchange,
having always an upward trend in the 90s except in the year 1998/99.
The export of bee wax slumped 94.8pc from 12.72 million Br in 1985/86
to only 0.66 million Br in 1991/92. Following its growing trend
since 1991/92, bee wax export encountered a significant stump in
1998/99. It had declined by 34.5pc from 10.51 million Br in 1997/98
to 6.88 million Br in 1998/99.Top
TENDER
MART
Contractors of category GC/BC class 7 and above for the construction
of Mekelle Soil Laboratory. C0-SAERT, Tel: 401063. Open on 5 April
2001. Publication The Ethiopian Herald 11 March 2001.
Suppliers of veterinary drugs and chemicals. Oromia Agricultural
Development Bureau, PO Box: 8770. Open on 27 March 2001. Publication
The Ethiopian Herald 11 March 2001.
Contractors of category BC/GC 7 and above for the renovation of
ticket office at Begie. Ethiopian Airlines Tel: 612222 ext. 3370/3128.
Open on 2 April 2001. Publication The Ethiopian Herald 11 March
2001.
Suppliers of rock crusher, bull-dozer, asphalt distributor and heater,
fork lift and other related materials. Amhara National Regional
State Transport Bureau, Tel: 08-200791, Fax: 201122, PO Box 7 Bahir
Dar. Open on 24 April 2001. Publication The Ethiopian Herald 11
March 2001.
Contractors of category GC/BC class 6 and above for the maintenance
of main building. Ethiopian Mapping Authority, Tel: 553466. Open
on March 29. Publication The Ethiopian Herald 11 March 2001.
Suppliers of wire stitching machine. Bole Printing Enterprise, Tel:
512466, Fax: 518696, PO Box: 2365. Open on 29 March 2001. Publication
The Ethiopian Herald 11 March 2001.
Bidders for the purchase of printing materials, office equipment,
stationery materials and other goods. Ministry of Economic Development
and Cooperation. Open on 27 march 2001. Publication Addis Zemen
11 March 2001.
Suppliers of stationary materials. Berahanena Selam Printing Enterprise.
Open on 3 April 2001. Publication Addis Zemen 11 March 2001.
Suppliers of generator. Genet Hotel Enterprise, Tel: 512634. Open
on 4 April 2001. Publication Addis Zemen 13 March 2001.
Suppliers of stationary materials, sanitary equipment, tyres, spare
parts and agricultural equipment. Debre Zeint Agricultural Research
Center, Tel: 338555. Open on 9 April 2001. Publication Addis Zemen
13 March 2001.
Suppliers of 76,000 kg vegetable shortening. Dire Dawa Food Complex
S.C., Tel: 654217, Fax: 651275. Open on 27 March 2001. Publication
The Ethiopian Herald 13 March 2001.
Bidders for the servicing of vehicles. Ethiopia News Agency. Open
on 23 March 2001. Publication Addis Zemen 14 Marcy 2001.
Suppliers of petroleum storage tanks. National Petroleum Reserve
depots Administration, PO Box: 25280 Code 1000. Open on 22 May 2001.
Publication The Ethiopian Herald 14 March 2001.
Suppliers of workshop materials. Ministry of National Defense, Tel:
504520. Open on 18 April 2001. Publication The Ethiopian Herald
14 March 2001.
Suppliers of drugs and materials for health post. Benishangul-Gumuz
National Regional State Health Bureau, Tel: 152054, Fax: 512691,
PO Box 124. Open on 16 April 2001. Publication The Ethiopian Herald
14 March 2001.
Suppliers of pipe sockets. Akaki Metal Products Factory, Tel: 340011.
Open on 5 April 2001. Publication The Ethiopian Herald 14 March
2001.
Suppliers of lead ingot and chromic acid. Akaki Metal Products Factory,
Tel: 340011. Open on 31 March 2001. Publication The Ethiopian Herald
14 March 2001.
Suppliers of 800 pieces of oxygen cylinder valves. Chora Gas & Chemical
Products Factory, Tel: 159267, PO Box: 40003. Closing date 15 April
2001. Publication The Ethiopian Herald 14 March 2001.
Suppliers of plastic craters. Ambo Mineral Water Factory, Tel: 153589,
Fax: 516252, PO Box: 1805. Open on 7 April 2001. Publication The
Ethiopian Herald 14 March 2001.
Suppliers of building and other materials. Ethiopian Roads Authority,
Tel: 530423, Fax: 514866, PO Box: 1770. Open on 10 April 2001. Publication
the Ethiopian Herald 15 March 2001.
Contractors of category BC/GC 4 and above for the construction of
remaining works of Awash and Gewane section camps. Ethiopian Roads
Authority, PO Box 1770. Open on 17 April 2001. Publication The Ethiopian
Herald 15 March 2001.
Suppliers of electrical materials. Ethiopian Roads Authority, Tel:
530423, Fax: 514866, PO Box 1770. Open on 11 April 2001. Publication
The Ethiopian Herald 15 March 2001.
Suppliers of Sheller mill and diesel engine fork lift. Nefas Silk
Paints Factory, Tel: 150482. Open on 20 April 2001. Publication
The Ethiopian Herald 15 March 2001.
Suppliers of Power hack saw machine, sensitive balance, moisture
tester, adding machine, computer and printer. Arsi Agricultural
Development Enterprise, Tel: 311103, 159681. Open on 29 March 2001.
Publication Addis Zemen 5 March 2001.
Suppliers of building materials and other equipment. Ethiopian Roads
Authority, Tel: 530423, Fax: 514866, PO Box 1770. Open on 10 April
2001. Publication Addis Zemen 5 March 2001.
Bidders for the purchase of vehicles. Awash Insurance S.C. Open
on 31 March 2001. Publication Addis Zemen 5 March 2001. Top
BUSINESS
OPPORTUNITIES
El Karis Trading & Inv. Co.Ltd. Member of Sheref Group - Address:
Khartoum, PO Box 4149 Tele. (00249-11) 780555/776392 Fax: (00249-11)
469345. Activities: General Export- Import.
Abusin Trading Co. Address: Khartoum Tele. (00249-11) 77-42 47/78
94 31, Fax: (00249-11) 774288. Activities: Import: Dhura- Habbixas,
Export: Coffee- Besse- Lentils.
Saud M. El Berier Group of Companies. Address: Khartoum Tel: 784239-784222,
Fax: 784675 Tlx: 23012 VONA SD. Activities Soap Industry, Food Stuff
Industry, Plastic & Electrical Equipment.
Strap Investment Group. Address Tel. 777771, Fax: 777520. Activities:
Transport, Packaging House Co. Agricultural Investment Co., Export:
Sesame - Dhura Gum Arabic- Livestock, Import: Oil, Agricultural
Equipment and Chemical Products.
Higleig Petroleum Co. Ltd., Address: Street 15 Amarat - Khartoum,
Tele. 469251/469255/476704, Fax: 469259. Activities: General Contracting
- Engineering Consultancy - Commission Agents - Design & Construction
of Roads, Bridges and Water Channels.
El Izdehar Trading & Inv. Co. Address: Khartoum, PO Box - 4286 Tel:
789012/771965, Fax: 776401 Activities: Textiles.
Mutaz El Perier Technological Education Address: Khartoum, Tel:
556395/558184, Fax: 558181. Activities: Modern Technology Methods
in Education and Research.
Minapharma Commercial Agencies, Address: Khartoum, PO Box 3129,
Tel. 775523/770113, Fax: 771902, Email: minapharma@hotmail.com.
Activities: Electrical Equipment.
Mohad. & Sons Group Co. Address: Tel: 782091/782185, Mobile: 012390524,
Fax: 775347. Activities: Industry, Agriculture, Transport and Oil
Storage and Distribution.
Sudabo Trading and Investment Co. Address: Khartoum, Tel. 782415/471658/471659,
Fax: 467953. Activities: General Import - Export, Transport and
Investment.
Wad El Gabel Trading Co. Address: Khartoum, PO Box: 4286, Tel. 770308/779012/771965,
Fax: 776401. Activities Imports of Food stuffs, Textiles and Plastic
Pipes.Top
About Fortune
