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Molding future leaders

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KIBUR College is an institution of higher education currently awarding academic degrees in five disciplines. Envisioning private tertiary education in Ethiopia to rise back to its intended dignity and standard, the college continues to pay due focus on quality and employability of graduates at its fullest capacity.
As the college continues to evolve and shape future leaders, Capital’s Metasebia Teshome reached out to Desalegn Mekuria, President of KIBUR College, for in-depth insights of the his institution as well his thoughts on the Ethiopian education system. Excerpts;

Capital: How was KIBUR College conceived?

Desalegn: Prior to the establishment of KIBUR College, I and my team had been working in the education sector for the last 18 years in different levels. We first started from Beteseb Academy which provided education from pre-kindergarten to grade 12. After that of course we sent off our students to various universities and colleges. However there was always a lingering feeling of the rift in the education system as in most cases students face huge unemployment despite industries booming.
We thus set course to solve this gap at the higher education and real life world. Following our analysis we worked day and night to make a conducive environment where students are equipped with important competencies pertinent to the real world and that is how KIBUR came to be.

(Photo: Anteneh Aklilu)

It has now been a little over one and a half years since the college’s establishment and we offer education services in; Marketing Management, Business and Technology, Business Management, Information Technology, and Computer Science starting from TVT to degree level.
The gap we have spotted in the industry is the provision of little information about higher education and the disparity between year-on-year graduates who often face unemployment as they are not prepped enough for the real world. Due to this, KIBUR was established to bridge the gap by offering quality and skill based education.
We have also worked valiantly to become an internationally accepted education center by giving quality education as we are members of the African business school and Business education alliance in USA.
In relation to the concrete skill that we offer, we implement experiential learning theories which mean learning by doing. As a result, our students get the best of both worlds, that is, good academic credentials and work force skills to shape the nation.

Capital: How are you working to engage students in career paths, whilst they wait to join the higher education system?

Desalegn: We have been in the education sector for a long time starting from the lower level to higher education. This has given us an opportunity to see the whole process and the gap in the system. Education centers more often than not do not give students basic skills they need before joining university. Most of the students in our country who are waiting to join universities don’t even know what field they are going to choose, but owing to our experience of the market we know and understand that gap. We have contributed to solving this issue by giving trainings to students in Addis Ababa who have taken university entrance exams particularly on soft skills.

(Photo: Anteneh Aklilu)

In this one week training that we offer, we guide students in choosing the prospect fields, in addition to equipping them with technology, leadership, communication, entrepreneurship, emotional intelligence, graphic design, robotics and programing and other soft kill and hard skill. So far we have done two rounds of trainings.
We engage our trainee students on the fields that they are looking forward to selecting. Following that, we beef them up with the necessary skills such as goal setting to achieve their required skill competency. As a result, students are able to see into their future fields without starting the classes and from our recent trainings we have been able to see more than 70 percent of our trainees being confident in the fields they have chosen, with knowledge of the market expectations required of them.
When we started with the first round of training, we trained about 500 students, while on the second round that figure jumped to well over 1200.

Capital: What are your observations from the trainees? What are the outcomes; acceptance and the gaps?

Desalegn: Many consider attending university as a way to leverage a promising career prospect. The first thing we observed from the trainings is that it gives students’ high confidence to join universities. They can easily choose what they want to learn and have a clear goal. Of course a student with a clear goal has quality to tackle his/ her future.
Students in high school mainly prepare and learn just for exam and to join university. They often don’t know anything about life skills, so they are happy when they get such chances to enhance their capacity. Our education mainly targets cognitive development and upright emotional educations which are important in life and our students are missing this and you can easily observe this from their reaction to the training.

(Photo: Anteneh Aklilu)

University is full of opportunities, but sometimes it can be hard to know which way to look first – or at least know where you’re headed. Sometimes the best place to start is with the basics. What’s important to you? What motivates you? What do you want to achieve in life? What do you think your purpose is in life? It might feel a bit overwhelming. But this is what one university should want its students to think about

Capital: What is your overall thought on the quality of education in Ethiopia?

Desalegn: The basic problem in the education sector is also related with skills. It doesn’t follow a holistic approach. Our education system should also focus on non-cognitive education. It’s obvious that students in Ethiopia have low skill even after graduating from higher education and the government knows this. Our education system is not creating skill entrepreneurs nor skilled un-employed citizens.

(Photo: Anteneh Aklilu)

Linkage with the industry is low and doesn’t observe what the employers and industries want. It hinders our education system to be less practical.
Now the new education road map is attempting reform of the education sector in line with the national vision set by the government as education is one of the key determinant features to guarantee development and improvements in human wellbeing. The ministry is working to give skill based trainings on 6 subject matters for grade 11 and 12 students which aim to help them in choosing their field of study in university and have basic skills in life too.
All the wrong deeds we have been seeing in high schools and in universities are because of lack of these skills. Improvement in this area has included reforms in the areas of producing university graduates with a balanced set of cognitive and non-cognitive skills and having higher-order thinking skills such as critical, creative and problem-solving thinking.
Additional reform areas envisage improving the quality of education in primary, secondary and preparatory education, in order to increase the quality of education in higher education, and the need for strengthening quality assurance enhancement programs in universities, in general,
Additionally, in the other world there is something called university and high school linkage which students in both institutions work and support each other; similar to university and industry linkage. In our education system there is a gap on this and that’s what KIBUR College is trying to create. Universities or colleges should come and work with high schools and lower levels which will help students to know about universities and make the relevant prepare thereof.

Capital: What kind of support are you getting from the side of the government?

(Photo: Anteneh Aklilu)

Desalegn: Different stakeholders have different responsibilities within government and the private sector. Industries have to go out to the public and work on students if they want to get skilled man power. It is difficult to change everything if we work only by ourselves. KIBUR College’s main work is giving regular courses yet we also give youths trainings as part of our main work. We have planned to work with other stakeholders and partners to give this trainings more widely, but more synergetic partnerships are required.

Capital: Do you have plans to expand to other regions?

Desalegn: For the two rounds, we only gave these trainings for student based in Addis Ababa and next year (Ethiopian Calendar) we plan to go to Jimma. Additionally, we are planning to work with universities in different part of the country.

Capital: What do you expect in the near future from different stakeholder especially in strengthening soft skill trainings?

Desalegn: The Ministry of Education should highly work on linking both high schools and universities. One of the university objectives should be supporting high schools. High school and university linkage should be set as a policy. It will help students to know that university is more than just about getting a degree. It is about life purpose, positivity, wellbeing and so on at the epicenter of student education and teaching.

Aviation authority to revise navigational service charges

In light of the amended proclamation which gives power to the Ethiopian Civil Aviation Authority (ECAA) to set air navigation service charges, price revisions are signaled to be underway to a tariff that has remained close to zero for many years.
According to the civil aviation proclamation, air navigation is the operation that ECAA provides to guide an aircraft from one place to another, including the fixing of the position of an aircraft.
Former Director General of ECAA, Wosenyeleh Hunegnaw (Col), who left the position a year ago, reminded that in the past several years the authority had been fighting to revise the service tariff that it provides to local and international aircrafts, which for quite very long time had not been revised.
“There was a strong resistance from stakeholders, and after long struggles, at the end of my term, parliament went on to amend the Civil Aviation Proclamation that would allow the authority to relook the rate with the consent of stakeholders,” Wosenyeleh (Col), who led ECAA for a record 14 years, recalled.
The amended proclamation No. 1179/2020 that revised the proclamation ratified in 2008 indicated that Sub-Article 15 of Article 10 replaced by ‘collect fees and charges for Air Navigation services according to international civil aviation convention and rules; further collect fees and charges for flight safety, inspection, control and follow up any other services from operators and airports enterprise based on approved tariff by the Council of Ministers.
The new proclamation added the term ‘collect fees and charges for Air Navigation services according to international civil aviation convention and rules’, which means that the authority has got a mandate to revise the tariff and make it come to effect.
The former Director General said that the air navigation fee that ECAA charges is very small unlike many other countries “for instance if we see the tariff in Sudan it is very high compared with us, however there are very few countries like Singapore who do not impose such kind of charges.”
“When we asked foreign airlines for the air navigation charge they are amazed,” he remembered, adding, “the current tariff was applied when the exchange rate was eight birr for a USD.”
As per the amended proclamation, ECAA has drafted a new rate. The information Capital obtained from ECAA signals that the draft has been discussed with stakeholders.
Misrak Tilahun, Aviation Regulation Acting Director General at ECAA, told Capital that the adjustment is very urgent to which the authority is in haste to come up with a final output in the near future.
“We are highly interested to see the revision take full effect very soon. It is difficult to set a given period of time when it will be effective,” the Aviation Regulation head added.
According to Misrak, the draft has been tabled about a couple of weeks ago for first round discussion with stakeholders.
“Generally there is a consensus with stakeholders that the rate should be revised, while there are comments from them that we would consider with our upcoming draft document,” she elaborates, adding, “After the revision, we will have additional discussions with stakeholders.”
The information Capital secured from experts is that Ethiopian Airlines is the main user of ECAA’s air navigation service.
Wosenyeleh (Col) said that the authority allocates significant investment to provide air navigation service, “the expense is very high that starts from assigning professionals, to carrying out the operation. There are also technologies like radar that are linked with satellite, a satellite based system called Area 3, and radio communication system to which all costs are covered by the government.”
“At least the operation cost ought to be covered by the charge coming from the service,” he shared his experience and view.
Airspace users like commercial airlines are required to pay for air navigation charges which are used to finance the services provided by the relevant body, in order to ensure the flights’ safety and efficiency.
According to the International Air Transport Association, Air Navigation Service Charges is the Air Navigation Service Providers (ANSPs) charge on airlines for the cost of services like air traffic control provided in their airspace and/or airport. It added that overall user charges for ANSP and Airport share was 5-6 percent of overall airline cost.
The charge is determined by its own technical operation and calculation that the service provider gives.

ESLSE voices concern over reckless waiver issuance

The national flag carrier Ethiopian Shipping and Logistics Services Enterprise (ESLSE) and only African cross continent vessel operator, claims that the permission of reckless waivers is threatening its existence.
The logistics giant and multimodal monopoly said that the behavior of giving waivers to some investors is endangering the enterprise’s identity.
In a press conference held on Wednesday January 25 at the headquarters of the logistics mammoth, the leader of the enterprise said that most of projects carried out by Chinese companies have a leverage of waivers that should be corrected, and further cited that if this is not changed, the activities of the logistics firm will be hampered to a high degree.
“Waivers are posing to be of huge impact to our operation and performance,” Roba Megersa, CEO of ESLSE, said whilst disclosing the six month performance of the 2022/23 budget year’s performance.
“If the waiver permission is not managed properly, the performance of the enterprise, the country’s long established vessel ownership and its flag carrier may be endangered,” Roba expressed his concern.
He added that ESLSE has informed the situation to relevant government bodies to provide tangible solutions.
Roba told Capital that the Ethiopian Maritime Authority (EMA), regulatory body of the maritime sector under the Ministry of Transport and Logistics (MoTL), is giving permits without its mandate that ought to be correct immediately.
“There several project offices at EMA that are supported by foreign funds so financers are interested to encourage the private sector so that they think that giving waiver as a tool is a norm, which is wrong. Now they are permitting waivers for private companies including foreign vessel operators. Almost all Chinese projects are carried out by waiver,” he explained.
“We have informed the case to the Ministry of Finance and the Ethiopian Investment Holding, a mother enterprise of ESLSE. To some extent MoTL is now pushing to stop the activity,” he elaborated the progress being made to combat the scenario.
Roba argued that the free on board (FOB) directive that was issued in 202

(Photo: Anteneh Aklilu)

1 indicated that waivers were to be given with the consent of carriers, “However they are giving the permit out rightly without our knowledge.”
He also cited instances that the Authority calls importers who are permitted to buy trucks through different letter of credit (LC) scheme to import their cargos through waiver, “which is not appropriate and at the time, we duly expressed our opposition.”
He underlined that commercial banks who assign foreign contractors for their skyscraper headquarter building project are not using ESLSE for their project import, “When we looked into the matter we realized that the contractors are EPC who imported project cargos without ESLSE.”
“When the Commercial Bank of Ethiopia’s building was being constructed, we had indeed provided a waiver as per the request but on the latest case we did not give any permission for other huge building projects,” he told Capital.
As a vessel carrier, the former Ethiopian Shipping Lines was established about six decades back, with its name being changed to ESLSE in 2011 following the amalgamation of other three public enterprises.
So far the enterprise is the sole multimodal operators in the country despite the fact that the government issued a directive that would allow other operators to per take in the scheme.

Capital has learnt that private operators are registering at EMA to join the multimodal operation under ‘Multimodal Transport Operators Commercial Licensing and Competency Certification Directive’ that was issued in 2021.
Under FOB Directive for Deciding Import Goods and Importers Obliged or Not to Import on FOB Term No. 858/2021 waiver system is defined as a permission granted by the Authority to make use of an International Chamber of Commerce (INCO) term other than FOB and/or any other carrier for one time or limited period of time or limited type of shipments for goods or part of goods which must be transported on FOB term according to the FOB directive.
The FOB directive article 4.1 indicated that import goods and importers obliged to make use of FOB term for dry and liquid bulk cargoes, steel, vehicle, containers, break-bulk cargo contained in bags, drums, boxes and project goods procured and imported by government agencies or private enterprises; aid cargos whose transport cost is covered by the Government; project cargo and inputs whose purchase price is partially covered by the government; goods required as an input to produce products by foreign investors for the domestic market;
Article 4.1.E added that the Authority may decide shipments having unique characteristics like fuel to be treated under the waiver system if the situation dictates so.
Under article 13 that stated about precondition for acquiring waiver sub article one stated that goods or part of goods which shall be transported on FOB term according to the FOB directive may be permitted by the Authority for one time or limited period of time or specific shipments to be transported on INCO term other than FOB and/or any other carrier.
Sub article two added that pursuant to sub article one the Authority may permit under any one of the following conditions: when the Authority verifies that the loading port is not served by the carriers or when the Authority verifies that the carriers cannot accept because of the nature of the goods.

(Photo: Anteneh Aklilu)

Similarly sub article four indicated that any importer who is obliged to import on FOB term according to this Directive but applying to make use of an INCO term other than FOB and/or any other carrier shall first obtain a certificate from any one of the carriers certifying that the carrier is unable to provide the service and must attach same along with the application.
However sub article five of article 13 said that in the event an importer is obliged to import on FOB term, according to this Directive, ships goods on any INCO term other than FOB term and/or other carrier without obtaining prior permission, import of such goods may be permitted by the Authority under a special condition; but sub article six added that the Authority may levy penalty and take administrative measure against importers who import consignment in accordance with sub article five of this article.

Logistics giant ESLSE attains success mid budget year despite global bumps

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The landscape of containerization operations which the country is keen on expanding for export commodities reels in great performance in the first half of the budget year.
The role of the logistics giant, Ethiopian Shipping and Logistics Services Enterprise (ESLSE) has been noted as crucial in supporting the scheme since it has contributed to positioning its empty containers for exporters.
ESLSE disclosed that despite the logistics sector globally being in challenging circumstances including the aftermath of COVID 19 and conflict between Russia and Ukraine, the logistics enterprise still managed to attain massive success in the first six months of the 2022/23 budget year.
Roba Megersa, CEO of ESLSE, while providing insights on the matter said that the COVID 19 impact is still affecting the logistics sector, “Food commodities prices are very high, port congestions is still there, containers congestions is eight folds compared with pre COVID period. Similarly, the container operation rate has shown reduction mid-2022 but picked up again significantly at the end of the year with petroleum price and commodities also increasing.”
“Vessel operation cost has also continued at exaggerated price, and similarly the Ukraine Russia conflict has impacted the sea voyage and logistic operation,” the CEO said.
These situations affect Ethiopia’s logistic operation besides the shortage of hard currency.
In the first six months of the budget year, the country containerized consignment declined by 12.8 percent, “compared with the preceding similar periods the import of containerized cargo has reduced significantly. In contrary the import of vehicles has increased in the stated period.”

(Photo: Anteneh Aklilu)

In general, the import of dry cargo that includes containerized cargo was 3.5 million metric tons while the export cargo was 450,000 metric tons.
Of the stated volume, one million ton and 102,000 metric tons was handled by ESLSE for import and export activities respectively.
“Our vessels have also been involved on cross trade business that contributes to generate foreign currency and additional profit. This operation has made our vessels to be profitable,” Roba explained.
ESLSE’s vessels operation registered the first profit in the past budget year since the enterprise settled the credit arrears that was taken to buy nine vessels about 12 years ago to embark on cross trade service.
In the stated period, the operation that ESLSE provided surpassed the set projections.
For the stated period, ESLSE targeted to provide different logistics services for 2.2 million metric tons of cargos, while actually it managed 2.4 million metric tons of consignment which was 104 percent of the target.
According to Roba, shipping service for vehicle cargos has registered highest contribution. In the six months it had projected to transport 3,645 units of vehicles, while the actual performance achieved 4,226 vehicles.
Similarly, the public enterprise has transported 312,000 metric tons bulk cargo that was more than double when compared with the projection of 150,000 metric tons.
Containerized cargo export has been boosted in the reported period.
“In the period, 4,500 containerized cargos were shipped through Djibouti corridor, of that, 3,079 containers or 70 percent of the total were staffed locally and the rest in Djibouti. It is a very big move,” the CEO amplified the success.
“We have played a key role by providing empty containers for exporters for free,” he further explained.
For the last about three years ESLSE has aggressively expanded the number of container it owns.
In the six months, 19.5 billion birr revenue and 2.2 billion birr gross profit has been secured.
Regarding cross trade, ESLSE vessels have provided services for import cargos to Berbera, Somaliland and Mombasa, Kenya and the export of Eritrean cargos.
At the Indian subcontinent and Far East, Ethiopian carrier vessels have provided services through time and voyage charter schemes.
“Through cross trade we have managed to transport 850,000 metric tons of cargo in six months that has increased by three folds. We are using our own containers and providing services for destination besides Ethiopian cargos,” Roba said while citing the positive strides made on cross trade.
“We assigned leased vessels for the transport of our huge cargos that allows us to assign our vessels for cross trade, which contributes to eliminate idle time and demurrage for our vessels,” he said, adding, “the cross trade expands regional integration and generate additional foreign currency and profit.”
He said that every time the performance on cross trade is increase, it heighted the surpassing of the projection for the six months set for the budget year.
Challenges
Foreign currency shortage, francovaluta and the direction that the NBE imposed on some commodities which were suspended from securing letter of credit has been noted to have affected the performance of the ESLSE.
“Providing waiver is also affecting our activity that should be corrected to keep the country and the identity of the flag carrier,” Roba underlined.
According to Roba, the road in Djibouti is also one of the major challenges that relevant government bodies from the two countries have to address.
“By any standard, ports in Djibouti are high quality in terms of service and quality, while the road conditions have resulted in spikes in price for truck service,” he complained.
“On our side, we have discussed the issue with Aboubaker Omar Hadi, Chairman of Djibouti Ports and Free Zones Authority, and he told me they are seriously looking into the solution. However we are using the Dawale route, the Galafi line is the main road that needs swift renovation,” he added.
He added that bad road conditions in some part of the country for instance on the way to Woreta to which ESLSE has a dry port is affecting the logistics activity, in an area where the demand and market is very high and lucrative for the logistics operator.
Access to foreign currency from local banks was also stated as another challenge for the period.
“We have USD 220 million in foreign currency in local banks but in some cases we could not access our money on time when we want it particularly from private banks but the cross trade service has contributed to fill our demand in terms of hard currency,” he explained.