History-maker Biniam Girmay sprinted to his third victory at this year’s Tour de France but overall contender Primoz Roglic lost significant time after a late crash on stage 12.
Eritrean Girmay became the first black African to win a Tour de France stage with his opening win on stage three and also triumphed on stage eight.
Intermarche-Wanty rider Girmay, 24, beat Wout van Aert in a frantic bunch sprint in Villeneuve-sur-Lot, with Mark Cavendish originally finishing fifth before being relegated.
Tadej Pogacar retained the leader’s yellow jersey and remains one minute six seconds ahead of Remco Evenepoel, with defending champion Jonas Vingegaard a further eight seconds behind.
But podium contender Roglic, who finished with a ripped jersey and bloodied shoulder, dropped from fourth to sixth in the general classification after he lost two minutes 27 seconds on the leaders after being caught up in a late crash.
Pogacar, of UAE Team Emirates, was also held up behind a crash in the peloton early in the stage, and required a bike change, but re-joined the main group without issue.
The 203.6km route from Aurillac to Villeneuve-sur-Lot offered one of the few remaining opportunities for a bunch sprint – assuming the sprinter’s teams could control any potential breakaway.
A four-man group featuring Groupama-FDJ riders Valentin Madouas and Quentin Pacher, Jonas Abrahamsen of Uno-X Mobility and Total Energies’ Anthony Turgis managed to open up a three-and-a-half-minute advantage over the peloton.
But that move was shut down with more than 40km remaining to set up a long-inevitable dash to the line, in which Girmay prevailed to further assert himself as the fastest sprinter at this year’s race.
In doing so he also extended his lead in the green jersey points battle, opening up a likely unassailable 111-point advantage over Jasper Philipsen.
“The green jersey gives me wings – I feel super fast. It’s in the head. I’ve had my ups and downs in recent seasons but I changed things this year and it’s working,” Girmay said.
A rare moment of calm in the peloton was interrupted with 12km remaining when Alexey Lutsenko crashed and took down Slovenian Roglic.
The Red Bull-Bora-Hansgrohe rider had been one minute 31 seconds adrift of the podium but that deficit now stands at three minutes 28 seconds.
Reacting to Roglic’s incident, race leader Pogacar said: “It is really devastating. He was in very good shape already and I could feel he was getting better with every stage.
“I’m pretty sure he would have been fighting for the GC in the next few days.”
Both Astana Qazaqstan rider Cavendish and Arnaud Demare, of Arkea-B&B Hotels, were relegated following illegal moves they made in the sprint.
Stage 13 on Friday is a relatively flat 165.3km route from Agen to Pau but, as the race enters the Pyrenees, hilly terrain approaching the finish could prove difficult for the sprinters.
That is one of only two expected remaining opportunities for the sprinters – including Cavendish, who claimed a record 35th Tour de France stage win last week – to take victories at this year’s race, along with stage 16 in Nimes.
We have the pleasure of speaking with Ketema Adane, a distinguished partner at Ethio-Alliance Advocates LLP. With an impressive academic background, Ketema holds both an LL.B and an LL.M from Hawassa University, specializing in commercial laws. His extensive experience spans a variety of legal domains, including taxation and customs law, where he has successfully represented both multinational and national companies in high-stakes tax disputes, advised the government on tax matters, and conducted training for tax officers and the private sector. In addition to his expertise in taxation, Ketema has a broad legal practice encompassing criminal law, corporate law, competition law, finance and banking law, investment law, intellectual property law, dispute resolution, and government relations.
In this interview, Ketema will shed light on the recent approval of a central bank digital currency (CBDC) by the Council of Ministers, exploring its implications, benefits, and potential drawbacks. He will also discuss how this significant shift might impact the financial system and economy of Ethiopia, considering the global trend towards digital currencies and the unique challenges and opportunities this presents for the nation. Excerpts;
Capital: What is the central bank digital currency (CBDC) recently approved by the Council of Ministers?
Ketema Adane: While Ethiopia’s National Bank of Ethiopia (NBE) establishment proclamation (No. 591/2016) designates Birr as the sole legal tender, a significant shift is underway. On June 14, 2024, the Council of Ministers in Addis Ababa approved a draft NBE proclamation. This new legislation establishes a legal framework for introducing a central bank digital currency (CBDC), paving the way for digital currencies to gain official recognition in Ethiopia.
This development acknowledges the undeniable potential of digital currencies. However, caution is necessary. As Ethiopians become increasingly interested in this new technology, user education is crucial to avoid scams perpetrated by individuals posing as legitimate digital currency brokers. So, CBDC is a digital form of a country’s official currency issued by its central bank. Digital currency can be stored in various ways, including distributed ledgers on the internet, centralized databases owned by institutions, or even on digital wallets or stored-value cards.
Capital: What are its disadvantages and benefits of CBDC?
Ketema: If it is seen from the perspective of the benefits, it will increase the financial access of the other society in the banking sector above financial inclusion. Transaction cost is less than normal bank. Monterey has a significant contribution to control. It will reduce risk and will reduce the risk of improper management by banks. In terms of damage, it is a matter of privacy. Central bank controls all data. It is argued that anyone’s personal rights will be affected by this. Since digital currency is deposited electronically, it has a cyber security issue. As the technology is new in countries like ours, its future is not yet decided. Most of the countries are on pilot projects. If it is seen in terms of cost, implementation cost is not easy. It is especially complex to implement in a country with poor infrastructure.
Capital: What is the change that Ethiopia’s decision to enter the CBDC system will bring to the economy? And what role does it play in stabilizing the financial system?
Ketema: Let me explain this issue by raising the objective set in the National Bank Establishment Proclamation: The need for CBDC implementation is to stabilize the price and establish a healthy financial system. The second mandate of the National Bank is to strengthen the regulatory system in view of the changing conditions. This in itself indicates something. Although the issues set out in the decree have implications for the type of control rather than for implementation. For example, he talked about digital currency in the previous decree, but in this decree, he has detailed about digital currency. Article 37 lists the prohibited activities in sub-paragraph 1 (b) and states that it is not possible to carry out digital transactions unless the National Bank approves it if necessary. In view of the current situation of the changing world, we can consider the regulation as a way to enhance the authority and control capacity of the National Bank.
In general, the objectives of the decree are to establish price stability and a healthy financial system, to strengthen the regulatory capacity with the current situation, and to increase the power of the national bank, and to make the management system compatible at the international level. Based on this, in the draft article 48 of the CBDC, the National Bank can issue digital money of the central bank, which is considered as the legal currency of the country.
In accordance with this sub articles 2, the board may issue a decree regarding the management of the digital currency of the central bank. Following this, it is expected that the role will be great in terms of establishing price stability and a healthy financial system. If Ethiopia’s status is still seen in terms of implementation, it is in research and planning. It has not been decided which type of digital currency it will implement. Regarding financial stability, most of our country’s economy operates outside of banks, so if it is a digital currency, it can bring it to the banking system or it is expected that there will be a financial system controlled by the government.
Capital: Many countries have gone beyond taking steps to join this system and are implementing it. After all, can Ethiopia show interest in using CBDC and allow other digital transaction systems that it has banned?
Ketema: Directly from Article 37 Sub-Article 1 of the Directive, it says that the National Bank may allow it when it deems it necessary. In the previous proclamation of the establishment of the National Bank, it states that the country’s currency is Birr, and that using other currencies is punishable as a crime.
At the same time The Information Network Security Administration (INSA) previously required registration for “Crypto providers,” hinting at a potential shift towards regulation before the full legality of cryptocurrency use was established.
Bitcoin and similar cryptocurrencies are currently illegal for transactions in Ethiopia. With the NBE considering Birr the only legal tender. This stance is further emphasized by warnings of “legal measures” against users. However, reports suggest Ethiopians engage in cryptocurrency use, and interestingly, Ethiopia allows Bitcoin mining. This might be due to the NBE’s potential interest in the foreign currency generated by miners to pay for electricity, with Ethiopia’s creatively low electricity costs being an additional incentive for miners.
Despite the current ban, the NBE is actively studying digital currencies. A significant development occurred on June 14, 2024, when the Council of Ministers in Addis Ababa approved a draft proclamation for the NBE. This paves the way for introducing a CBDC upon approval by the House of People’s Representatives.
Capital: There is a high possibility that CBDC will bring the entire payment system under the control and supervision of the government. So this system violates the freedom of information, what is the procedure of the CBDC?
Ketema: The law stipulates that the right to protect personal information is a constitutional and human right. In Article 26, it is stated as the right to respect and protect private life. Everyone on this list has the right to respect for their privacy. This right includes the right to protect one’s home, person and property from search and seizure. However, it states that the use of these rights cannot be limited except in accordance with detailed laws based on the objectives of national security, public peace, preventing crime, protecting health and public morals, or protecting the rights and freedoms of others.
Although this is stated in the law, in fact, in our country, there are situations where the government takes information from the bank without a court order, in violation of personal rights. So this clearly shows that there is a problem with the banks. But the central bank, which increases the vulnerability of the CBDC, can access or view all transactions without being a questioner or responsible. This also affects personal rights. For example, if we look at the experience of other European and Asian countries, including the United Kingdom (UK), which have started the program.
However, they have not yet approved it, they are still researching and planning. The main and controversial issue for this reason is the privacy issue. Similarly, the Bahamas became the first country with a CBDC, the Sand Dollar. Sweden explores an e-krona to address declining cash use, Nigeria’s eNaira targets financial inclusion, and the US cautiously considers a digital dollar, highlighting the ongoing debate about digital they have not had any difficulty because they have few personal rights. Therefore, I think that implementation will bring its own good experience, but in my opinion, a clear regulation is needed.
Capital: Concerns are being raised that Ethiopia will have a digital market, which may push banks in the country out of the market chain. What is the effect of this system on financial institutions?
Ketema: Basically, CBDC can reduce the person doing spite on banks. A person can buy digital currency instead of depositing it in a bank. This will reduce the profit, and because of this, there is a big possibility that the banks will be damaged. But it should also be seen as a new opportunity. I don’t think banks should say that it is an infant industry, they should bring value add service. Therefore, it may be necessary to collaborate on CBDC. Therefore, it is possible to rise when the design is done for whether it is harmful or beneficial.
Capital: cryptocurrencies have become a target for hackers and thieves. A digital currency issued by a central bank may face the same possibility. So what steps should be taken to prevent system intrusion and theft of assets and data? What is the vulnerability?
Ketema: As it is known that the transaction is done digitally, the security measurement must be strong. Regulatory framework should have guidelines on cyber security. Another implementation collaboration is needed. Regarding the vulnerability, it can be assumed that the vulnerability is high based on the behavior.
When we say digital currency, it is a type of money that is stored with something digital and created with something digital. This vulnerability cannot be prevented by shutting down the Internet. So far our banking system is not vulnerable because it is limited in Ethiopia. When it comes to CBDC, it is said that now foreign banks will enter, so our banking system comes with an opportunity to internationalize. Following this, the exposure may be higher in the future.
Ethiopia has struggled to achieve universal water supply and has also failed to recoup its investment costs, according to announcements made at the 12th Multi-Stakeholder Forum on Drinking Water Supply and Sanitation. This forum, which has been active for the past 18 years, faced interruptions due to the coronavirus pandemic and other issues but has resumed in the past two years.
During the forum, it was highlighted that Ethiopia’s inability to provide universal water supply and recover investment costs is attributed to several factors, including limited access to financing and inadequate foundational infrastructure. Additionally, a lack of transparency at various government levels has exacerbated these challenges.
At the same forum, Engineer Habtamu Itefa, the Minister of Water and Energy, reported that over half a million people in the country now have access to electricity through various alternative energy technologies. He emphasized the progress in providing electricity access to the population through these innovative solutions.
