Major moves from a fortnight back between Djibouti, Ethiopia and South Sudan have materialized on matters of logistics.
On September 18, a delegation led by Taban Deng Gai, Vice-President of South Sudan, together with Ministers from Communication, Transport, Equipment and Road of the State paid a six day visit to the two neighboring countries.
The delegation’s visit to Djibouti which lasted 3 days saw interactions with different government official with agreements being penned to enhance cooperation in logistics and other infrastructure sectors. The deals will see South Sudan benefiting with regards to access of alternatives for its economic and social developments.
As per the information Capital obtained from Djibouti Ports and Free Zones Authority (DPFZA), the delegation had visited different logistics facilities including a submarine telecom hub.
The delegates met with Aboubaker Omar Hadi, President of DPFZA, mainly to discuss the development of a refinery project and the pipeline which South Sudan’s intends to export its natural gas from the Port of Damerjog.
”Discussions focused on the progress of the ongoing refinery and pipeline project between Djibouti and South Sudan, in particular via the industrial complex of Damerjog,” DPFZA stated on its statement.
Recently, South Sudan’s Refineries and Petrochemicals Company (REPCO) signed a land lease within Djibouti International Free Trade Zone (DIFTZ) for a period of 50 years to store oil equipment.
REPCO now owns 1.3 hectares of land in the free zone which will allow it to store materials and other products intended for the processing and extraction of oil before being transported by air or land to South Sudan.
Amplifying the road connectivity was also discussed and a Memorandum of Understanding (MoU) was signed between the two parties allowing the landlocked country to access ports in Djibouti for its import export via Ethiopia’s corridor.
The MoU will allow South Sudan to be connected to the rest of the world via the Ports of Djibouti through the road corridor. At this stage there are two corridors, Djibouti – Addis Ababa– Juba – Kampala and Djibouti – Addis Ababa -Gambella– Malakal, and one of which has already been used by Djiboutian transport trucks.
The delegation followed the pace with a working visit to Addis Ababa starting from September 21 with a similar three days visit. The visit was centered on logistics and infrastructure developments between the two countries in consideration of Djibouti as the major sea outlet for Ethiopian cargos.
The delegation also met Ethiopian Ministers led by Ahmed Shide, Minister of Finance to discuss various ways to enhancing infrastructure connectivity between the two countries.
The officials discussed and agreed on ways to enhance their previously designed plans in the areas of roads infrastructure, energy, telecommunications, water transportation, and other vital economic sectors with a view of creating integration for mutual benefits.
“As for the agreed projects, the projects will be operationalized and put in to considerations as soon as all the technical aspects are addressed,” Michael Makuei Lueth, Information, Communication Technology and Postal Services Minister said.
“Trade can be facilitated by Ethiopia through Djibouti corridor,” the South Sudanese minister stated.
Ahmed Shide also confirmed that the two sides have concluded a very important agreement in terms of advancing two road projects.
“The projects will be given utmost priority to open up transportation so that connectivity of South Sudan will be enhanced via Ethiopia through Djibouti corridor,” Ahmed said.
“These projects will be financed jointly and we have agreed to finalize the feasibility and preparations in terms of selecting contractors for the joint financing mechanism to be worked on,” Ahmed added.
In transport connectivity, river, fiber optics and transmission line connectivity has been agreed upon and the preparation to realizing the agreement will be commenced.
“We will work together on resource mobilization and reach out to development financial institutions,” Ahmed explained.
South Sudan mostly uses ports in Kenya and Sudan, while relatively ports in Djibouti will be nearer than the facilities in the other two neighboring nations.
The two parties have also agreed to work on the aviation sector.
South Sudan spurs huge logistical moves for Ethiopia, Djibouti
Tele’s BRIDGE strategy nets huge success
LEAD, its successor to fly the firm even higher
By Metasebia Teshome
Ethio Telecom, under the timeframe of its BRIDGE strategy which spanned from 2019 to 2022 records marvelous results hitting well over 100 percent of its targets.
“BRIDGE strategy was designed to meet the market dynamism, reshaping and leading the company with a competitive mindset with the ultimate aim of making the company a preferred operator,” said Frehiwot Tamru, CEO of Ethio Telecom, on Monday September 26, 2022 whilst introducing the company’s new 3 year strategy ‘LEAD’ and the 2022/23 financial year plan to the media.
According to the CEO, through the implementation of the strategy, the company achieved 75.6 percent growth in customer base, 76 percent growth in revenue, a 104 percent growth in foreign exchange, 142 percent growth in net profit, and 125 percent growth in number of smart phones penetration across the country.
During the strategy period, the telecommunications firm had an 86% tariff reduction to increase its affordability and customer satisfaction with its 140 new and 166 revamped services.
As a succession follow up strategy, Ethio Telecom has now rolled out a new three year development strategy called LEAD, which is said to enable a thriving competitive market as the firm seeks to be a leader in digital solutions.
The development strategy, LEAD, is divided in three fiscal years from 2022-25. The first fiscal year 2022/23 has already seen implementations begin as from last month. The development strategy dubbed “LEAD” is believed to transform the state-owned telecom company into a competitive company.
“LEAD provides reliable communication and digital financial services to simplify life and accelerate digital transformation of Ethiopia,” said the CEO.
“Strategies are made to ensure competitiveness and sustainable growth of the company. The strategy has been developed by considering and reviewing new business streams and shifting revenue sources from traditional to value systems,” explained sources that Capital spoke to.
“The company has been using the BRIDGE strategy for the last three years which has been successful in transforming the company. However, it has now needed to change its strategy to LEAD, so as to continue its developments as a leading telecoms provider,” read the document sent to Capital, adding, “The Company has restructured its mission vision, values and strategic themes to go with the current telecom market.”
The three-year development strategy focuses on; being a leading brand, increasing customers base, excellence in operation, increasing accessibility and ensuring customer experience, deploying innovative and new products and services, and insuring the company’s successful operation.
In the first fiscal year 2022/23, Ethio Telecom plans to generate 75.05 billion birr in revenue which is 13.7 billion birr or 22.4 percent greater than 2021/22. The company plans to increase the total number of subscribers from 66.59 million to 73.47 million in 2022/23.
Consequently, the company aims to boost mobile penetration from 61.3 percent to 65.9 percent and the company hopes to increase its revenue from international business from 146.58 million dollars to 151.3 million dollars. In addition to the telecom service, Ethio telecom has planned to strengthen its telebirr share in the market by targeting to reach a customer base of 32 .6 million in 2022/23 from 20.9 million and also plans to gain 180.8 million birr in revenue from telebirr.
Ethio Telecom is currently engaged in various network expansion and telecom infrastructure capacity enhancement projects. The rollout of 4G/LTE has been completed in 136 cities and pre-commercial 5G services have been launched in Addis Ababa. Regardless of its current initiation and notable performance in expanding digital service for various sectors and high achievement in revenue earning, Ethio telecom is working to increase its capacity to every corner of the country in order to serve the people in good quality.
As part of expanding its income Ethio telecom has also plans to expand its services to neighboring countries in its three year LEAD strategy.
Ethio-France 125 year bond cemented through archaeological exhibition
Within the framework of the celebration of the 125 years of corporation between Ethiopia and France, the Ethiopian Heritage Authority, the National Museum of Ethiopia, the French embassy in Ethiopia together with the French center for Ethiopian studies inaugurate a historical archaeology permanent exhibition hosted at the national museum.
The inauguration ceremony which was held on September 29, 2022 was attended by president Sahle-work Zewde, Nasise Chali, Minister of Tourism, and Rémi Maréchaux, Ambassador of France to Ethiopia.
The gallery for historical archaeology collections of the national museum has been renovated as per the Franco-Ethiopian bilateral corporations for heritage enhancement implemented by the presidency of the French republic and the Ethiopian Prime Minister.
Indicating the long relationship between the two countries, president Sahle-work appreciate the support of the French government to protect the historical heritage of Ethiopia.
Whilst speaking at the inauguration ceremony, Amb. Rémi Maréchaux indicated that the exhibition show cases archaeological heritages from all parts of Ethiopia which put in to light the life and cultures of the past society from the antique period to the medieval times.
Procurement authority gears to integrate telebirr
The Public Procurement and Property Authority (PPPA), through its recently introduced modern public procurement platform, Electronic Government Procurement (eGP), is preparing to knit its system with tele birr for its modern payment system of the public procurement venture. The authority has now called upon all suppliers to register to its eGP platform so as to be part of the public procurement.
PPPA announced that the new system which was introduced about a year ago through a pilot of nine public offices is now facilitating the procurement of 73 central government offices and is now working with Ethio Telecom to integrate telebirr with eGP to provide an alternative payment system for the public procurement proceed.
So far, the eGP system has been integrated with banks for payment.
According to Abebe Alemu, Communication Specialist at eGP Project Office, the integration works are being carried out between the two systems for its clients to use telebirr as an e-payment instrument for public procurements.
According to Abebe, in the near future, a memorandum of understanding between the two parties will be signed to realize the operation.
One of the major goals of emplacing eGP on public procurement is to insure transparency and to uplift the benefit of the public. In this regard, using telebirr would have significant opportunities, as Haji Ibsa, Director General of PPPA explains.
He emphasized that using the telebirr platform would increase credibility in the procurement and transaction of goods, services or works for public purchase.
Telebirr which officially commenced operation in the first half of 2021 as a business arm of the state owned telecom giant for its mobile money service has garnered over 24 million customers with over 65 billion birr in transactions.
The integration with eGP will be a new big lucrative advantage for telebirr business since the major portion of government’s budget is spent on procurement.
So far the procurement platform is handling 73 public offices as of April, 2022 and is expected to jump to 125 by the end of the budget year from the total 169 public offices accountable to the central government.
The others that are mostly higher education institutions will be part of the eGP in the process and the next phase will be setting up offices for regional administration.
So far, for those included on the new platform, carrying out procurements through eGP is believed on average to reduce 50 percent of the procurement transaction costs.
The Authority has also disclosed that suppliers who want to be part of the bidding or procurement scheme with public offices ought to register on the portal online.
Haji said that there are 44,000 local and foreign suppliers that are registered on the PPPA system, while as from December 10, only suppliers registered under the eGP system will be allowed involvement on the procurement system for public offices that are registered on the platform.
He called suppliers to register within the given timeframe so as to be active through the modern procurement mechanism.
As per the information that PPPA disclosed, at the current stage about 3,000 suppliers have registered on the eGP platform.
To expand the number of suppliers who are registered on the system, the authority is undertaking different awareness schemes.
For instance it is facilitating an event that will gather at least 1,000 suppliers to speak about the eGP system so as to attract suppliers to be part of the system.
Abebe said that the event that will gather huge crowds is expected to be held on November 8, “different suppliers will attend the session which will help them to get information about the modern electronic scheme and to be involved in it.”
eGP refers to the use of digital technologies to enable a more efficient and transparent exchange of information, and interactions and transactions between government and the business community in the procurement of goods, services and works. E-GP automates and streamlines the end-to-end public procurement process from the preparation and publication of annual procurement plans, managing the various tendering activities, and administration of contracts.
On the way to modernize the government procurement with eGP lack of willingness to perform procurement operation via the new platform, lack of commitment from the leadership at public offices and low human resource and infrastructure have been a challenge besides limited awareness about the system among the business entities.
In Ethiopia up to 70 percent of government’s annual budget is allocated to public procurement, while public procurement takes up 14 percent of the GDP.
