Prominent suppliers pull out in the latest restricted international competitive bidding for 200, 000 metric tons sugar procurement process which was opened early this week. The number of participants has also reduced compared with the preceding experience.
It can be recalled that the Sugar Industry Group, the former corporation, refloated the international bid on Thursday June 2, to procure 200,000 metric tons of plantation white cane sugar that will be transported from July to September in eight phases.
The restricted international competitive bid was conducted as per direct invitation of companies, who had shown their interest to supply the basic commodity in the past. On the latest bid opened on Monday June 13, four companies including one, which is not new to the Ethiopian market, submitted its technical and financial proposal, whilst one bidder was disqualified right away because of improper bid security.
As per the new introduced initiative, the Group has taken a swifter evaluation for the technical document and was able to open the financial proposal of the three companies on Wednesday June 15.
Following the opening, Osirius Group, which is stated as a US company, disclosed to supply Brazilian sugar, and offered its rate to transport the sweet with three payment alternatives, on letter of credit (LC) at sight, deferred payment 12 months or 24 months after the shipment.
Osirius which recently participated in the annulled similar bid offered an FOB price USD 545 per ton on payment term of LC at sight, USD 627 differed payment of LC 12 months, and USD 763 LC for 24 months.
Its CFR offer was USD 575 per ton for payment at sight, USD 657 and USD 793 for 12 and 24 months LC payment terms respectively.
Mill House International of South Africa meanwhile has offered FOB USD 450, USD 522 and 561 on the payment condition of LC at sight, differed payment of 12 months and 24 months respectively.
Mill House’s, which also participated on the recent bid but rejected at the technical stage, had its CFR offer at USD 480, USD 552, USD 591 per ton on the payment condition of LC at sight, differed payment of 12 months and 24 months respectively.
Both companies, which are new for the same bid in Ethiopia, have offered USD 30 per ton for freight for shipment of own vessel. However, experts on the sector questioned the fright rate.
“It is well known that the freight price has skyrocketed at the global market. There freight request that the commodity will be loaded from Brazil if they shall secure the award is unrealistic in the verge of logistics price hikes,” an expert who followed the case told Capital.
The third qualified company, ED & F Man of the UK has offered USD 715, USD 715, and USD 815 for FOB on the payment condition of LC at sight, differed payment of 12 months and 24 months respectively. Its CFR offer was USD 825, USD 825 and USD 825 for the three payment modalities respectively.
The company which is new to the Ethiopian market has demanded USD 110 per to for freight of owned vessel.
So far Capital has not been informed on the final award, while the price validity will be till the end of the coming week.
The participation of reliable companies has reduced from time to time which experts state as a reason for the frequent bid cancelations which erodes the confidence of big companies.
The country procures about half of its demand, while it has a capacity to produce 365,000 metric tons of sugar per annum.
Restricted sugar bid sees three bidders advance
Amhara bank steps foot in the financial industry
Amhara bank with the theme of ‘Beyond bank’ officially started its operation as of yesterday June 18, 2022 becoming the 19th operational bank in Ethiopia.
On Saturday June 17, 2022, the bank held its official opening ceremony in its head office located around Legehare with the presence of high government officials, board member of the bank and different guests.
Amhara bank which is one of the largest banks in Africa having more than 185 thousands of shareholders has 6.5 billion birr in subscribed capital of which 4.8 billion birr is paid-up capital. The nineteenth entrant is said to start with 70 branches and is expected to reach 100 within the coming 20 days.
The bank which has been under formation for more than three years has now announced its five deputy executives being led by the chief executive, Henok Kebede, who expressed that thus far more than 800 employees have been hired.
Melaku Fanta, Chairman of the Board of the Bank, said the bank is set up to boost the country’s economy following the country’s transformation. He said the sale of shares has been carried out in accordance with the National Bank of Ethiopia (NBE) regulations and has been sold in all parts of Ethiopia.
Beside its opening ceremony on Saturday, the bank has held different events throughout the week including a forum on Digital Banking and Capital Market in Ethiopia. Different experts have participated on the forum which presented two panel discussions.
During the discussion on Digital Banking Banks including Amhara bank, were advised to formulate an independent strategy for digital banking and implement digital banking at various levels over the coming years.
Robel Alemayehu, CEO of Sunpay Solution and one of the panelist indicated that digital banking could not be implemented as required due to the lack of a separate strategy for the main banking service. He said financial technology companies need to be supported to strengthen digital banking in a country with more than 65 million mobile phone users.
Reminding that Ethiopia’s policy direction is to prepare and then issue licenses, Robel said it will take time to develop and implement a policy that allows digital currencies in the country.
For his part, Chief Financial Officer of Kifiya Payment Financial Technology, Munir Duri, said digital marketing technology and finances should be considered separately. Munir said the NBE has a good start in terms of supporting the financial sector. Munir further added that the necessary preparations need to be made as banks will not only compete with other banks but also with financial technology companies in the future.
On the discussion on the role of the capital market and banks expertise, it was opined that asserted domestic banks need to be prepared for the coming competition following the opening of the capital market.
“Ethiopia is not new to the capital market,” said Yared H. Meskel, an investment consultant, indicating that it should be focuse
d in adaptation to the market to reap the necessary benefits.
Finance expert, Zemedeneh Nigatu, for his part, said the capital market will be open in a maximum of two years as he further cited that integration is one of the recommendations for strengthening banks.
Private sector pivotal for AfCFTA success, underline experts
Experts call for the strengthening of the engagement of the private sector in order to make AfCFTA successful.
In a joint event organized by the Konrad-Adenauer-Stiftung (KAS), Country Office Ethiopia/AU/ and the United Nations Economic Commission for Africa (UNECA) on June 16, 2022 at Hilton hotel; leaders, policy makers, and experts from the AU member states, the AU Commission, and other stakeholders from the private and public sectors evaluated the progress of the AfCFTA and highlighted the importance and role of the private sector.
Two panel discussion during the event which focused on the crosscutting and topical issues under the theme, “The African Continental Free Trade Area (AfCFTA) and the Private Sector: Realizing Africa’s Full Potential” looked into the overall progress of the AfCFTA and the second extend the discussions and looked at national interests and comparative advantages to be gained through the AfCFTA in the continent with views from the private sector reflected upon.
As participants insisted, the active engagement of the private sector alongside the government support of the AfCFTA successful implementation is central to ensure sustainable development under this agreement.
Panelists asserted that there is considerable gap when it came to the private sector awareness of the AfCFTA despite them being the backbone. Thus more on the capacity building and awareness raising front was noted to be essential for the private sector to understand the implication of the agreement on their business including the phase II issues for instance the role of the investment protocols in supporting the development of an effective and competitive private sector by establishing an equal playing field for investment.
As Indicated on the event, the AfCFTA national implementation strategies of several countries entailed the importance of inclusive implementation of the AfCFTA through improved private sector engagement including SMEs as well as women and youth.
Experts participating in the event recommended creating awareness and building capacity for the private sector on the AfCFTA opportunities and its mechanism of operation at the national and continental level. Furthermore they suggested that the private sector should be engaged in the private sector in the implementation process so as to take the full advantage of the agreement. In return they opined that the private sector must better organize its self to engage with policy and technical negotiators particularly at the national level, in addition to simplifying administrative procedures for the ease of doing business from Africa investments in sector of interest of the private sector and the strategy for Africa’s potential for the regional value chains.
Many happy returns: Around the world, countries are demanding artefacts back
Nations are l3obbying hard for the repatriation of items taken illegally, without consent or through force, particularly through the centuries of colonial rule. Take a look at some success stories.
Indonesia: The Netherlands closed the Museum Nusantara (Museum of Indonesia) in Delft for budgetary reasons in 2013. It returned 1,500 artefacts to Indonesia, a former colony, in 2020. Significant objects still remain in that country, however. Jewels from the Cakranegara Palace are on display at a museum in Leiden. Some 20,000 Indonesian textile artefacts are at Amsterdam’s Tropenmuseum.
Turkey: A 4,250-year-old gold ewer from Anatolia, on loan to the UK’s Victoria and Albert Museum by a private collector, was found to have been smuggled out of Turkey in 1989. It was returned to Turkey last year. More than 3,400 cultural assets were also recovered by Turkey’s anti-smuggling authorities, from Croatia, Hungary and elsewhere, in 2021.
Guatemala: In 2019, Guatemalan authorities flagged an ancient Mayan carved fragment that came up at auction, as being the one that disappeared from the country in the 1960s. A French collector returned it in 2021. The stone will soon be on display at Guatemala’s National Museum of Archaeology and Ethnology.
Sri Lanka: The UK’s Edinburgh university returned nine skulls of the Vedda people to Sri Lanka in 2019. The remains, thought to be more than 200 years old, had been in the university’s possession for more than a century and were part of its anatomical collection.
Senegal: A sword belonging to a 19th century Islamic scholar and anti-colonial leader, Omar Saidou Tall, was returned by France in 2019. The brass-and-wood sword has a French-made iron blade and a handle shaped like a bird’s beak. French museums hold at least 90,000 artefacts from former colonies in sub-Saharan Africa.
Nepal: Last month, the Yale University Art Gallery finalised plans to return a 1,000-year-old statue of the female bodhisattva, Tara, to Nepal. The statue was acquired by the gallery through an anonymous donor in 2015, but is believed to have disappeared from Nepal’s Bir Badhreshwar Mahadev Temple in the 1970s.
Namibia: Last month, Germany’s Ethnological Museum of the Prussian Cultural Heritage Foundation in Berlin returned 23 items, collected from 1860 to 1890, to the National Museum of Namibia. Namibian experts collaborated with the museum to pick the items based on their scarcity back home. They chose a three-headed drinking vessel, jewellery, a doll in traditional dress, and hair pieces, among other artefacts.
Australia: In 2020, the UK’s Manchester Museum returned 43 sacred and ceremonial objects to Australia’s Aboriginal people. The museum had held the items since the 1920s. There were emotional farewells. In Australia the items were welcomed with joyous crowds and an all-night vigil.
Ukraine: Last year, UK authorities intercepted a cache of early-medieval jewellery in the post. The 86 pieces, including pendant crucifixes and disc pendants dating from the 11th to 14th centuries had been illegally exported from Ukraine after possibly being extracted from graves. The British Museum is exhibiting the pieces until they can be safely returned to Kyiv.
Cambodia: Cultural items were among the many treasures looted during the Khmer Rouge regime of the 1990s. In 2019, British art dealer Douglas Latchford was convicted of trafficking Cambodian antiquities. He died months later, and his daughter returned his hoard, worth an estimated $50 million, to Cambodia in 2021. The Denver Art Museum in the US is working on returning to Cambodia four artefacts they acquired through him, including a 2nd-century-CE sandstone sculpture of the eight-armed Buddhist deity Avalokiteshvara.
Ethiopia: Last year, a UK non-profit purchased 13 auctioned artefacts, including a Bible, a processional cross, and an imperial shield seized by British forces during an 1868 battle, to return them to Ethiopia. Alemayehu, a seven-year-old prince, had been taken to England after that same battle. He died in 1879, aged 18, and was buried at Windsor Castle. His body remains there, despite Ethiopians’ calls for its return.
Thailand: The US Department of Homeland Security returned a 500-year-old gold crown, part of a stone Buddha sculpture, to the Thailand government last month. The item was believed to have been smuggled out of the country and ended up in the Denver Art Museum.
