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Building bridges and strengthening ties

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With a profound commitment to fostering diplomacy, mutual understanding, and cooperation, Ambassadors play a pivotal role in enhancing the bilateral relationship between two countries.

Belgium and Ethiopia share a long history of diplomatic relations that dates back to the early mid-19th century. Over the years, both nations have worked diligently to strengthen their ties, particularly in the areas of trade, development and university cooperation, and cultural exchange.

As Belgium’s representative in Ethiopia, the Ambassador has been at the forefront of this diplomatic endeavor, working tirelessly to build bridges and foster collaboration between the two nations.

Stefaan Thijs is the current Belgian Ambassador to Ethiopia, Djibouti and Permanent Representative to the African Union. Capital sat down with him to talks about his experiences in Ethiopia, and his vision for the future of Belgium-Ethiopia relations, perspectives on the challenges and opportunities that exist in the bilateral relationship, as well as his insights on the cultural, economic, and political dynamics that shape the ties between the two nations. Excerpts;

Capital: How do you define the historic and the current state of bilateral relation between the two countries?

Stefaan Thijs: I just arrived here a year ago. I have been working to understand the country which is a very complex one. Ethiopia and Belgium have a long history of diplomatic relations dating back to 1906, when the Government of Belgium first opened its Embassy in Addis Ababa. Did you know that the Belgian military played a significant role in the establishment and training of the Imperial guards of Emperor Haile-Selassie known as “Kibur Zebegna”?

The historic and current state of the bilateral relationship between Ethiopia and Belgium is thus characterized by a strong foundation. As both nations continue to seek new avenues for collaboration, it is evident that the relationship holds great potential for further growth and mutual benefit.

In recent times, the bilateral relationship has further evolved and expanded into various sectors. Belgium has been actively engaged in supporting Ethiopia’s development efforts through various initiatives, particularly in sectors such as education (through an intensive university cooperation) and healthcare.

Capital: What makes you think Ethiopia is complex and difficult?

Stefaan Thijs: I am referring to the complexity of governing a multi-ethnic country. I thought that I myself came from a complicated country. In Belgium, we basically have 3 communities: the Flemish-speaking, the French-speaking and the German-speaking, and on top of that we gave special legal status to the capital of Brussels.

Ethiopia, with its, approx., 120mio inhabitants, has more than 85 ethnicities all of which have their own different languages, histories, and approaches. How does one govern all these people in one country to create economic growth and welfare for all the people? Can you imagine the complexity of this?

Discovering and trying to understand this reality has made me very modest in judging and assessing the current situation. On top of that complexity, I have discovered that there is a huge, I call it, “unsettled past” in Ethiopia. There are a lot of historical grievances between the regions and there has never been a “national conversation” to settle these grievances. That’s why I put now all my hope in the Ethiopian National Dialogue Commission (ENDC). That is also why it’s so important to have the transitional justice and accountability system in place, only then will the society be able to heal from the terrible war with the northern region.  

Capital: The complexity of having more than 85 ethnicities, as you said, is that managing everything equally and living together, which Ethiopia has had in the last two years, is one sign. How were your responses and reactions at the time?

Stefaan Thijs: I arrived between the two phases of the war last year, on August 1. Everybody thought that it was the beginning of “a peace period”, that there was hope that the conflict could be settled, but by the end of August, it relapsed. Finally, in November we had the Cessation of Hostilities agreement.

I really hope that the work of the ENDC can bring the elements/building blocks together to build a new and bright future for Ethiopia. And if the ENDC would conclude that the Ethiopian constitution should be revised, then we could examine together in which way my country could share some expertise and experiences based on our own struggle to settle the tensions between our communities in Belgium.

Another thing which I learned from the history of my country is that Ethiopia may also need a policy which brings the regions closer together in a positive and future oriented way in the interest and for the benefit of all the Ethiopians. In that sense, I believe that a strong social contract between the people and the politicians/elites could help. Economic growth and social justice, going together hand in hand, could cement the Ethiopian society and help to overcome ethnic tensions. Also on this topic, Belgium would be ready to share experiences and expertise. That’s why I have invited, some months ago, the Ethiopian social partners at my Residence to have a better insight in their thinking and aspirations.

Capital: What did you observe from your meeting with the representatives of both workers and employers?

Stefaan Thijs: They were very charmed, and very happy. I reached out to one of the Commissioners of the ENDC as well. There as well, I noticed a clear interest in bringing the idea of a strong social contract in their debates and conversations. I will continue to work on this.

Capital: Have you got the chance to visit Tigray?

Stefaan Thijs: Yes I travelled to Tigray. Together with some other colleagues, we did a field trip of 1000km, organized by the ICRC. I went to Shire, Shiraro, Axum, Adigrat, Zalambessa and Mekelle. What a beautiful part of Ethiopia with stunning landscapes. But it was shocking to see that beauty in contrast with the tragedy of the people we have met and spoken with: IDP camps and abandoned villages, military hospitals where soldiers are undergoing surgery and safe houses for survivors of sexual violence. I am still under shock.

The numerous elderly and the women who we have met, had only one message for us, diplomats: please, tell to our politicians NO MORE WAR. I will never forget that field trip. Thinking of it makes me silent.

Capital: how do you see the current state of corporations between the two countries in regards to trade and investment?

Stefaan Thijs: First of all, Belgium, together with all the other member states of the EU, supports the government in its economic reform agenda. As the prime minister came to power, his big plan was to open the Ethiopian market and attract foreign investors.

Officials, when I meet them, always ask me to bring Belgian companies to invest in Ethiopia, especially in the pharmaceutical sector. It would be my biggest wish to do so BUT, there’s a big BUT: first of all, the business climate has to be improved. Almost all our businesses present today in your country are facing huge problems. There are security issues but there are also too many legal and bureaucratic issues and we have to recognize, corruption has become a problem as well.

Not only the Federal government but the regional and local authorities have to work together to improve the business environment. Only then will we, Ambassadors, be able to promote your country, a country with enormous potential, as an attractive investment destination for our businesses.

Capital: do you believe that the EU or its member states want to see an independent Africa when it comes to the health sector? For example, at the time the COVID pandemic outbreak began and the world discovered the vaccine, Africa was the last continent to get it, as all the wealthy countries had been collecting it from their citizens.

Stefaan Thijs: It was indeed not a nice story that Africa had to wait so long to receive its part of the needed COVID vaccines, therefore we have to learn lessons from that experience and we, the EU and Africa, did so. Now we really have to make sure that if there is another pandemic, the world and Africa in particular, is better prepared.

As you may know, Belgium has a big pharmaceutical sector. The vast majority of the COVID vaccines were produced in my country

We provided the vaccines not only to the poorest countries, but even to Japan, Australia, and to other parts of the world because they had no facilities to produce the vaccines. By the way, a lot of the vaccines produced in Belgium were transported by Ethiopian Airlines to Africa.

So we have to do everything to be better prepared in the future. That’s why during the Belgian Presidency of the EU, which starts on January 1st 2024, Belgium has decided to make the African health agenda one of the big priorities. Africa can count on Belgium and the EU.

Capital: How many Belgian companies are here in Ethiopia?

Stefaan Thijs: Not a lot. Previously, we had some important companies, but unfortunately they decided to leave the country due to several reasons. That’s why I am saying that we fully support the economic reform agenda of the Prime Minister.

The more Ethiopia opens itself, the easier it will be to convince foreign companies to come. I believe that the country needs to make a cultural switch, in the sense that it has to be more open-minded, attractive and also accommodating to foreign companies so that they can flourish in the country. The potential is here. The market is here. The need is here; you have very experienced, well-trained and well-skilled people. Let’s work together on this, not least in the interest of the Ethiopian people.

Capital: how does Belgium define its support for Ethiopia in advancing the education sector?

Stefaan Thijs: Education is one of our main cooperation fields. My first activity outside of Addis was the launch of the 2nd phase of a cooperation project between the Belgian Universities of Leuven and Ghent and the Arba Minch University. This project covered the health and the nutrition sector, climate change, and agriculture cooperation.

Belgium and this Embassy have a rich history of cooperation with the first generation of Ethiopian universities. Whenever I go to visit one of your ministers, at least one of their advisors studied in Belgium, which is incredible. These are the best ambassadors of Belgium. That is why, at the end of this year, I would like to revamp our alumni network.

Capital: How are you working in regards to climate change?

Stefaan Thijs: Climate change is an issue for the whole world. Here in Ethiopia, we have, as I said, some university projects which help to tackle some of the climate change challenges in the country. A few months ago, I had a fantastic opportunity to introduce the Belgian candidate for the chair of the IPCC, Professor Jean-Pascal van Ypersele, and we had a very interesting program, including some field trips to witness the impact of climate change in the country and to see some climate adaptation projects of UNDP and UNICEF.

I think that, as bilateral Ambassador in your country, it is my first obligation to report accurately to my capital about the huge climate challenges that Ethiopia is facing, and that, as members of the international community, we have to help each other, also financially, to tackle those problems because they affect us all. Did you know that Belgium has been one of the first countries which contributed to the “Loss and Damage Fund”, even before that Fund was formalized by COP27? Global solidarity is a must and is in the interest of all.

Capital: One of the duties of embassies is to promote cultural ties between countries. What are you doing in regard to this?

Stefaan Thijs: There’s music of course, and in particular, the jazz music. This Embassy has a tradition of organizing a yearly a jazz-concert in the garden. Belgium and Ethiopia have a common passion when it comes to jazz. Unfortunately, at the moment, our compound is under renovation and can’t be used properly, but from the moment I see a window of opportunity we will continue with this fantastic tradition. I had the honor, recently, to meet your world famous Ethiojazz legend Mulatu Astatke. It was so nice to hear how well he knows and respects his Belgian colleagues very much. Mulatu Astatke is quite often the central guest of a jazzconcert in Belgium.

There’s fashion design. Belgium and Ethiopia have everything to become great partners in fashion. My wife and I, we became friends with Anna Getaneh, one of your world famous fashion models and now a designer herself, and I have connected her with a Belgian top fashion designer, Jan-Jan Van Essche, who belonged to the world famous Antwerp Fashion school. I am sure that some very interesting and beautiful results will come out of this connection. I wish that it could be a start of more collaboration between Belgium and Ethiopia in this field.

Another idea which it’s growing, is to put the famous Belgian flower art in the picture. You know, for sure, that our European flower shops are full of flowers which are cultivated in Ethiopia. These flowers are transported by Ethiopian Airlines Cargo to Belgium and from there they are distributed to the rest of Europe. One of the most world’s most famous flower artist in the world, Mr. Daniel Ost, is a Belgian and he happens to be a good friend of ours. I am going to invite him and ask him to organize a flower art exhibition in the Skylight hotel and by doing so put the unique connection and relations between Belgium, Ethiopia and Ethiopian Airlines in the spotlight

Capital: what opportunities and challenges do you see in further strengthening bilateral cooperation between the two countries?

Stefaan Thijs: Given our longstanding relations, Ethiopia and Belgium have something to defend and something to take care of. It is my deepest wish to strengthen our diplomatic ties and to bring them to the next level.

Of course, today, Ethiopia is still facing huge problems. The COHA helped to stop the war but this doesn’t mean that everything has been solved now. On the contrary, new conflicts in Amhara and Oromia have occurred and the crucial transitional justice and accountability mechanisms still haven’t been put in place. Lots of people in Ethiopia are still suffering, are tired and are desperate.  

As I have said in my introduction, to me, the biggest problem of the country is its unsettled past. In order to settle that past, in my humble opinion, the Ethiopian society needs a profound conversation among the regions. Precisely that is the aim of the National Dialogue Commission. Ethiopia and Ethiopians need dialogue, dialogue and dialogue… and for sure… NO MORE WAR.

If in any case my country could contribute to the shaping of the future of Ethiopia and the Ethiopian people by sharing and offering Belgian expertise, then Ethiopia can count on us.

Capital: Is there anything you want to add?

Stefaan Thijs: Belgium is, outside Ethiopia, the most important hub for Ethiopian airlines. We have an excellent relationship with this company. There is even potential to increase our relations. If we take, for example, Ethio-Post, one of their new activities is to focus more on e-commerce and to become an e-commerce hub for Africa. I am currently exploring ways to link the Ethiopian Post, the Belgium Post and Ethiopian Airlines. I am convinced that, together, we could make a lasting impression with our commercial story there.

Last but not least, to me, Addis Abeba and Brussels have a lot in common. One of the most important characteristics is the fact that Brussels and Addis are two of the most important diplomatic capitals in the world. For sure, this offers collaboration opportunities between these two cities. These cities should work more together, could share expertise because they have both important diplomatic communities on their soil. These cities could exchange as well shared issues and experiences in applying and interpretating the Vienna Convention for instance. This topic will be high on my agenda the next time I speak with my fantastic Ethiopian colleague, Ambassador Hirute, in Brussels.

Zemen Insurance reports seventeen-fold increase in profits

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By our staff reporter

Zemen Insurance has experienced a remarkable growth in the previous fiscal year, marking a significant milestone for the insurance sector. As the newest player in the industry, the company reported a substantial increase in profit before taxes, soaring from around 2.5 million birr to 46 million birr—an impressive seventeen-fold rise. Moreover, the gross written premium surged by nearly 300 percent, reaching 325.6 million birr compared to the previous year’s 78.3 million birr.

Melaku Ezezew, the board chair of Zemen Insurance, highlighted that the company’s premium production growth rate surpasses the industry average of 39 percent. However, the fiscal year ending on June 30, 2023, witnessed a significant rise in net claims incurred, totaling 68.3 million birr compared to just over 2.1 million birr previously. This translates to a more than thirty-fold increase in claims incurred compared to the previous financial year. Despite this notable expansion in claims, the company’s tremendous growth in net earned premiums was made possible by the substantial increase in written premiums.

Zemen Insurance also reported a substantial boost in net premium earnings, amounting to 126 million birr, in contrast to the previous year’s 2.9 million birr. The company’s annual report highlighted promising investment and other income-earning outcomes, with non-insurance business earnings reaching 29.1 million birr, up from 11.4 million birr in the preceding year. While the company’s earnings and operating margins experienced significant expansion throughout the year, its expenditure growth rate remained moderate.

According to the company’s annual report, expenses for the year totaled 24.6 million birr, compared to 10 million birr in the previous year. Zemen Insurance’s total assets as of June 30, 2023, reached 526 million birr, a growth of approximately 200 percent compared to the 2021/22 fiscal year’s 176 million birr. This represents a 110 percent increase from the company’s initial operating year, which ended in June 2021, with assets totaling 250 million birr.

Additionally, the company’s earnings per share climbed by 33 percent from 1.8 percent in the previous year. Founded by 898 shareholders, Zemen Insurance commenced operations in June 2020, displaying promising growth within a relatively short period.

Zemen Bank, Ethiopian Airlines forge unprecedented media partnership to expand global brand influence

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Zemen Bank and Ethiopian Airlines have entered into a groundbreaking agreement, marking a first-of-its-kind partnership within the Ethiopian banking industry. The two entities have signed a media partnership agreement aimed at enhancing Zemen Bank’s brand presence on the international stage.

Under this agreement, Zemen Bank will leverage Ethiopian Airlines’ extensive media platforms, which reach an impressive audience of over 140 million passengers annually. Through various channels, including in-flight entertainment, airport screens, digital greetings, magazines, and directional indicators (navigator), Zemen Bank’s services and products will be promoted. The duration of the partnership has been specified.

Dereje Zebene, the CEO of Zemen Bank, expressed his confidence in the collaboration, emphasizing that utilizing Ethiopian Airlines’ media platform will enable the bank to connect with global customers and cater to the financial sector’s needs.

Kaki Motors inaugurates Isuzu vehicle assembly plant

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By Eyasu Zekarias

Kaki Motors, a company that has been involved in importing Isuzu vehicles manufactured by Japan Motors Limited for the past 20 years, has announced its new role as an agent and assembler in Ethiopia. The company recently inaugurated a factory in Alemgena, Sheger city of the Oromia region, at a cost of 450 million ETB. This factory serves as the first vehicle assembly, sales, agent, and manufacturer of Isuzu in Ethiopia.

Gebremichael Girmaye, the managing director of Kaki Motors, revealed to Capital that the assembly factory, sales center, and after-sales center cover an area of 20,000 square meters and required an investment of 450 million ETB. Additionally, 5 million dollars have been allocated for further investments.

During the launch on October 14, 2003, the managing director stated that the completed factory has the capacity to produce 2,500 trucks per year and will create job opportunities for over 750 individuals.

Established in 2003, Kaki Motors is engaged in various sectors, including export, import, manufacturing, transport, and service. Presently, the company operates four vehicle and five spare parts sales centers, along with three repair service centers. They also have a main spare parts storage and distribution depot in Awasa, with plans to open sales and repair centers in Diredawa, Bahir Dar, Jima, and Mekele in the near future.