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Momentum grows to solve the world’s plastic waste problem

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Tshidi Ramogase, Chief Public Affairs, Communication and Sustainability Officer, Coca-Cola Beverages Africa

Today as people all over the globe gather for World Cleanup Day, there is compelling reason to believe that an end to the plastic waste problem is in sight. The next round of negotiations towards a UN treaty based on legally-binding global rules and comprehensive circular economy measures to deal with plastic waste will take place in Nairobi, Kenya, in November.

Progress to date has been encouraging, and at the last round of discussions in Paris, most member states showed strong support for an ambitious treaty. Importantly, the development of a legally binding treaty is supported by a Business Coalition convened by the Ellen MacArthur Foundation and WWF, in collaboration with aligned businesses, including The Coca-Cola Company, and supported by NGO partners.

The coalition sees the treaty as the single most important opportunity to accelerate progress towards a circular economy in which plastic never becomes waste or pollution, and the value of products and materials is retained in the economy.

At Coca-Cola Beverages Africa (CCBA), our commitment is to invest in our planet and our packaging, to help make the world’s packaging problem a thing of the past, working in partnership with The Coca-Cola Company in support of its sustainable packaging initiative called World Without Waste, which it launched in 2018.

We are reimagining our packaging to make it better for our planet and our business. We’re working to design better bottles because packaging shouldn’t harm our world, and if someone wants to recycle one of our packages, they should be able to.

Through various design innovations, we are reducing the amount of plastic in our bottles, increasing the recycled content in our bottles and increasing their ease of recyclability.

In South Africa, our 500ml Bonaqua bottles are made out of 100% recycled PET (rPET).

Other recent highlights include the move to clear Sprite PET in ten markets (South Africa, Namibia, Mozambique, Ethiopia, Tanzania, Kenya, Botswana, Uganda, Zambia and Malawi) which makes it much easier to recycle and has greater value as a recyclable material. CCBA also started using returnable 2L PET in South Africa with the view to roll this out to other markets.

A second pillar of our strategy is collection. The Coca-Cola Company and all its bottling partners are leading the industry to help collect and recycle a bottle or can for every one we sell by 2030. We’re working to bring people together to help us collect and recycle 100% of our packaging.

Regardless of where it comes from, we want every package to have more than one life.

Our approach is a voluntary collection and recycling model funded by industry through a levy on resin, the material used to make PET plastic.

Following a highly successful rollout in South Africa, we have extended this model, which is based on the principle of Extended Producer Responsibility, to three additional markets, with plans for further rollout in our markets.

Finally, we are partnering with communities and industry to clean up existing packaging. We’re bringing people together through programmes like beach and river cleanups and other ongoing local activities. To encourage more people to recycle more often, we’re investing to help people understand what to recycle, how to recycle, and where to recycle. We also work with local communities, NGOs, our competitors, and our critics to highlight this critical issue.

We are creating and supporting waste collection and recycling systems across our footprint where they didn’t exist previously and improving collection and recycling rates where systems do exist.

In Mozambique, CCBA has provided training to more than 3,000 women on the safe and efficient collection and sorting of plastic waste, empowering them to earn an income in the plastic waste circular economy.

In Ethiopia, 263 women who made a living collecting firewood in and around Entoto Mountain were left without work when the Entoto Park opened. CCBA supported them to start PET collection in the park and its vicinity, sorting and providing it to recyclers. They now collect about 10 tonnes a month. They were also trained to weave baskets from recycled plastic as an additional income stream.

A model collection centre has been established in Ambo city, near CCBA subsidiary Ambo Mineral Water SC, creating employment for 13 women and two men.

Through the Extended Producer Responsibility model and initiatives like these, CCBA has made solid progress towards its goal of a 100% recycling rate.

In addition, to help stimulate the development of a circular economy for plastic waste, we are bringing the cost down and availability up for recycled materials.

We’re working toward these solutions to create a circular economy that benefits society and works for our business.

We’ve set ambitious goals for our business, to take responsibility for our packaging across its lifecycle and reduce ocean pollution.

NBE’s new quota stifles fresh banks

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By our staff reporter

Despite some new banks airing out concerns to the financial industry regulatory body, National Bank of Ethiopia (NBE), the central bank has sent fresh loan discernment quotas for each and every bank as per the newly adopted cap imposed just a few weeks ago.

As sources in the financial industry inform Capital, the central bank has sent every bank’s quota and has further requested them to submit their execution plan.

In the monetary policy statement that was issued on August 11, the NBE board decided that for the current fiscal year which ends in June, 2024 will see the credit growth being limited to 14 percent. As per NBE’s intentions, all commercial banks will be instructed to limit the growth of their loan books so as to be consistent with this aggregate credit ceiling.

According to the information sourced from banks, NBE has sent their quotas as per the fresh loan disbursement performance that banks registered in the 2022/23 fiscal year that ended on June 30.

Sources said that the regulatory body separately calculated every banks loan disbursement for the current fiscal year as per the maximum growth rate on the consideration of last year’s allocation.

“NBE had asked banks for their disbursement schedule,” sources said.

However, banks particularly those that are new to the sector have raised concerns over the move.

According to the newbie banks, the group of big banks would not be affected by the new arrangement since their allocation was very huge in the past year.

“Some big banks had disbursed about 100 billion birr in a single year, while the new comers that have limited resources are facing a serious challenge. If the regulatory body decides to treat them as long established financial firms it will cause a pinch,” a bank president told Capital.

He added that the big banks will have a space to disburse over 15 billion birr under NBE’s latest decision while new banks will not have a space to facilitate few hundred million birr as a fresh loan if the central bank continues on its stand, “It will be damaging for our business.”

Bankers are now expressing their hope that NBE may take its time to relook its decision.

“Some of us are focused on the general public who are excluded from the financial industry or businesses that were not receiving ample attention on credit provision,” one of the bank presidents said.

As per the initial statement, the central bank stated that the 14 percent cap will continue until the end of the first half of the fiscal year, while experts said that it may continue until the end of the year.

The major aim of put a cap on fresh disbursement is to contain the growing inflation and place it under 20 percent by the end of the fiscal year from the current about 30 percent.

Beside credit cap, the NBE board also changed the interest rate at the NBE’s emergency lending facility that banks utilize when they face liquidity problems from 16 percent to 18 percent.

Moreover, the board has passed a decision to reduce the direct advance that the central government takes from NBE.

“An understand is also to be reached with the Ministry of Finance to make use of this facility, only as a last resort if sufficient Treasury Bills and Treasury Bonds cannot be raised in the market,” the central bank underscored.

Kenticha site ushers in lithium processing plant

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By our staff reporter

Kenticha Mining plc, a company formed by the state and private investors including Ethiopians for the production of lithium concentrate announces the arrival of the first batch of the 1.5 billion birr worth of spodumene DMS/ Dense Media Separation/ processing plants.  

The company which has an aligned vision with government to produce value added product from tantalum mining facility located at Kenticha, 60 km south of Addis Ababa, had stated a few week back that the first batch of processing plant will dock in Djibouti early September.

According to Ali Hussien, one of the local investors, well known for his company Alfoz plc, a company involved in numerous businesses including the export sector, disclosed to Capital that the first batch of spodumene DMS plant is being transported to Kenticha.

In its voyage, the five forty feet containerized cargo that was loaded on five trucks has gone past almost 1,070 km to arrive at Hawassa, 270 km south of Addis Ababa on Friday September 22.

As Ali indicates, the first processing plant has a capacity to process 20 tons per hour, “The second batch of the plant will be in Djibouti in a month’s time.”

Both processing plants are said to have consumed 1.5 billion birr.

The spodumene DMS processing plant that was produced in South Africa will process 70 tons per hour while the second plant, which has 50 tons per hour capacity, will start production in the coming months.

According to the company, the third and largest DMS with 200 tons per hour capacity is said that it will be manufactured and transported to the site in the near future.

The company recently disclosed that the civil works have been completed for the arrival of the plants.

Kenticha is located at Kenticha locality, Seba Boru woreda in Guji zone of Oromia region, 600 km south of Addis Ababa.

It can be recalled that with the aim to export value added mineral production, the government had suspended the production and export of tantalum concentrate, a business that was ongoing since the late Derg era.

Kenticha Mining plc is established by the Oromia regional government, and private investors including Australia based, African Mining and Energy (AME).

The company received a large scale mining license in July last year which covered the Kenticha tailings.

As cited recently, from December 2022 to January 2023, KMPLC sampled tailing materials at depths of 0.5 to three meters.

The company disclosed that the Kenticha pegmatite is one of the largest pegmatites in the world and that it is set up to 100 meters thick, extending over two kilometers.

The ore-body was estimated to contain 87.7 million tons of ore grading at 0.78 percent lithium oxide with appreciable quantities of tantalum and niobium.

As per the plan, the mining will commence in the second quarter of 2024 in the southern high grade pit at the site, “This strategy will enable the company to accelerate cash flow while continuing to drill out the Kenticha ore body to fully delineate the ore body and capture its full size.”

As per the plan, 2023 will see the commissioning of the first processing plant and commencement of production.

In the coming year, KMPLC has projected to produce 100,000 tons of lithium concentrate that will generate USD 400 million in 2024 alone.

Capitalizing on BRICS: City Chamber cite opportunities galore

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By our staff reporter

Addis Ababa Chamber of Commerce and Sectoral Associations underscores that the recent membership into BRICS will bring astronomical opportunity for the country.

The city chamber, which is the oldest and sturdiest private sector body well known for its strong policy recommendation, research papers and advocacy, disclosed that the membership of Ethiopia in the emerging global association as crucial for both country and region.

Mesenbat Shenkute, President of the Chamber, said that the acceptance of Ethiopia as one of the members of BRICS is a turning point for opening a new window of opportunities for the country and the region as well.

“We are optimistic that the government will make important policy revisions aimed at our business people who are widely participating in the new business block with more foreign investment set to come in,” she said during the launching of the annual grand trade fairs which are the major promotional activities that the Addis Chamber carries out regularly.

“It should also be noted that a lot of support is needed from the government side towards helping our emerging private sector in the international market,” the private sector association leader underlined, adding, “In this regard, I would like to reaffirm that Addis Chamber will do everything possible in its capacity to advance trading and investment as well as equally advancing the issues and the concerns of   the private sector.”

The Addis Chamber has long been organizing the annual grand business promotion events dedicated to promote trade and investment.

This year, the Addis Chamber has identified key and strategic business trade fairs to be staged which are presumed to boost trade ties and networking among businesses. The sectors include services, food, agriculture and manufacturing that are key sectors of the Ethiopian economy.

“Business events which will be hosted by our chamber facilitates an ideal platform to discuss and exchange ideas and solve challenges associated with technology that local service provider’s face,” Mesenbet said. 

The Addis Chamber this Ethiopian budget year trade fairs includes the 14th Addis Chamber Specialized International Agriculture and Food Trade Fair (AGRIFEX-Ethiopia), the 26th Addis Chamber International Trade Fair (ACITF) and the 6th Addis Chamber International Manufacturing & Technology Trade Fair (MATEX-Ethiopia) that shall attract thousands participants and visitors from all over the world.

The events are scheduled to be held at the end of this year, and February and May in 2024 respectively.