xHub Addis in partnership with the British Embassy launch a new incubation program called Warka aimed to support new start-up ideas as well as to incubate existing start-up businesses so as to stimulate and impact the community.
The incubation program is geared to support Ethiopian startups working to solve issues in climate and environmental challenges with a focus on technology. Furthermore, it supports women-led businesses and start-ups that are centered around education, sustainability, mobile money and so on.
The incubation program is funded and supported by the British Embassy in partnership with xHub Addis and the Center for African Leadership Studies (CALS) to promote Ethiopian startups to use technology to solve problems related to climate and the environment.
The program is said to last for 3-5 months encompassing a wide range of training, business development support, mentorship and coaching, seed fund, and much more.
The tech incubation’s launching event was held at the British Embassy on Wednesday, May 4, 2022 with the business incubation program calls for the start-ups slotted from May 4th to June 6th.
Founded in 2014, xHub Addis is an initiative of CALS operating with a mission to incubate, mentor, and coach young entrepreneurs.
Warka program launches to excel Ethiopian startups
REGURGITATING DEVELOPMENT FINANCE
Once again it is back to discussing ‘development finance’ as if it were an altogether new phenomenon! The whole business of ‘financing for development’, has been the major concern of the core countries of the west for centuries. After WWII, Bretton Woods Institutions (BW) became prominent in the game. In the 1980s, after the third world debt crisis, the established model of ‘development finance’, a la the likes of BW was forced to undergo critical evaluations and appraisals, both by lenders as well as debtors. With the advent of ‘structural adjustment programs’, alternative financing mechanisms were ushered by the triumphalist ideology of neoliberalism. Instead of debt financing all and sundry, (mostly by state operators) FDI (foreign direct investment) was summoned to engage in some aspects of the investment job. The successful leveraging of FDI in the East Asian countries (Taiwan, Korea, China) that was managed politically, motivated developmentalists of all hues & colors to accede to various market options with less apprehension than before!
The concessionary bilateral financing program targeting certain projects (outside the ambit of the market and dominant institutions) significantly contributed to the development efforts of the mainly poor. In this regard, China’s contribution deserves special mention. India, Brazil and even Russia were enthusiastically joining this endeavor. The Chinese led infrastructure and investment bank that goes by the name AIIB (Asian Infrastructure Investment Bank) is running and massively, we might add! The Silk Road Fund is another of the initiative that is already drawing in a number of European countries. What makes these institutions different from the traditional development finance institutions is; they will be led by countries outside the core countries of the system. This is significant, if not unprecedented! Core countries are defined as accumulation centers, if they fail to accrue capital (hence technology, etc.) then what are they? As mentioned above, the Chinese, in one form or another, are already huge financiers of projects in Africa, concessionary or otherwise. Therefore, the setting up of the above institutions will only enhance existing cooperation between developing nations and by extension the rest of the world!
‘Financing for Development’ another forum was held in Addis some years back. This version of ‘Financing for development’ started in 2003 under the auspices of the UN, in collaboration with the BW and WTO. The first summit took place in Monterey, Mexico followed by the Doha Conference. Following the global financial crisis another summit was held in house (New York, 2009) to deliberate about the crisis. May be we should gear up for more crisis summits, because the real financial crisis is not upon us yet and when it hits, the 2009 crisis will look like a mere walk in the park!
Take for instance the visible lack of energy on the part of the Euro dwellers. The Euro zone doesn’t have much of an appetite to do ‘financing for development’ as it is currently fidgeting with its own ‘financing for survival’! Moreover, Doha tends to sand bury major initiatives. Remember the now defunct (literally) the WTO Doha Development Round? By the same token, can this quaint African town (at least it used to be, before the crass razzmatazz that now passes for urban renewal/development took over) end up becoming the place for a dignified closure or coup de grace for the whole FfD program?
Be that as it may, the crux of the matter in the whole development finance animal is, the very basic question of ‘what do we really mean by development in the 21st century? If we think of development as making it, like the OECD countries (rich), then we do have serious problems. The experience of these countries cannot be replicated on planet Earth. To achieve a life style of the rich, the remaining poor inhabitants of this world need to have another 8 more earths at its disposal, so to speak. Today the rich are about 20% of the global population and consume around 80% of the resources. At the end of the day, the global sheeple must realize that real wealth is what is nature given, not what is concocted (out of these givens) by the ‘too clever by half’ humanity. In addition, these concoctions of ours, for the most part, are unsatisfying and ephemeral, in the scheme of things life. To reiterate; unlike before, the sheeple must be very clear as to what it means by ‘development’, without blindly endorsing the narratives of entrenched interests! Lack of clarity on this pertinent issue can accelerate our inevitable demise. We believe the best thing to do is to go back to the drawing board and figure out what it is that we really want, given the obvious constraints of shortages of resources and ecosystems’ limit, to say nothing about human’s inherent incapacity to know it all. Recall our maxim; resources are finite and human’s capacity is limited!
Tying the above idea of ‘development’ with the prevailing logic of finance might not be all that compatible. Continuously indulging in debt, finance or otherwise, we believe, will only make us debt slaves, nothing more nothing less! Don’t forget, banking, by its very nature, is a fraudulent enterprise. From the garden variety of fractional reserve banking that permeates pedestrian banking to the world of high finance anchored on rarified derivatives with a potential of engulfing and rendering all economic engagements (productive or otherwise) inoperable, the objective remains the same; to manipulate reality for the benefit of the parasitic elites that number less than .01% of the global population. Don’t be fooled; predatory finance is not a means, but an end onto itself!
Europe day nears to be celebrated in pomp
The European Union delegation to Ethiopia and the African Union prepare to celebrate the annual Europe Day on May 9, 2022.
The delegation on this year’s celebration explained that owing to the rich history being celebrated, a series of activities to mark the Europe Day are underway so as to raise peoples’ awareness of the 70-year history of European integration.
This year’s celebrations include a conference, the European Film Festival in its 20th edition, and the Europe Day Children’s races as well as an official reception to which officials representing the Government of Ethiopia and the African Union will be invited as well as the diplomatic community accredited in Addis and other partners.
The European Union started to celebrate its own European Day in commemoration of the 1950 Schuman Declaration, leading it to be referred to by some as “Schuman Day” or “Day of the united Europe.” This come at the back of one Robert Schuman, then Foreign Minister of France who proposed a new form of political arrangement for Europe, whose aim was to make war between Europe’s nations unthinkable.
After a two-year absence due to the global COVID-pandemic, the 2022 European Film Festival in Ethiopia will take place at VAMDAS Entertainment Movie Theatre for three weekends from May 7- 22. This year’s festival showcases 18 prime movies selected by the following participating European countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Poland, Portugal, Spain, Sweden as well as a movie selected by the EU Delegation to the African Union.
Festive month peaks inflation
According to the monthly inflation report from the Central Statistics Service, the April 2022 monthly inflation rate peaks at 36.6 percent showing an increase from similar periods of last year as well as last month.
Both food and non-food parts of the index showed an upward momentum this month as a result of two major religious festivals; Easter and Eid-al-Fitr.
According to the report, food inflation in April 2022 was 42.9 percent compared to the same period last year which showed an increase. As the report indicates, there has been an increase in the price of grain this month due to the celebration of religious festivals. There has also been a slight increase in the price of vegetables, rice, teff, wheat, corn, sorghum and cereals, meat, milk, cheese and eggs, and spices (mainly salt and pepper) in comparison to last month’s price points.
Moreover, according to the report there has been price Increase on cooking oil, butter, coffee and soft drinks.
Coffee beans and non-alcoholic beverages prices have also increased during the current month from food items.
On the other hand, the non-food index inflation in April 2022 has shown an increase of 28.1 percent from last year’s same period. The rise in non-food Inflation has been attributed mainly to the rise in the prices of; alcohol and tobacco, stimulants (chat), clothing and footwear, housing repair and maintenance (house rent, cement and corrugated iron sheets), and energy (firewood and charcoal), furniture and home furnishings, medical care and jewelry (gold).
The month-on-month food inflation rate for April likewise showed an upward trend of 2.2 percent compared to the preceding month. Also worth noting is that in March 2022, the general inflation realized highs of 34.7 percent when compared to a similar period from last year.
On a similar trajectory, the food consumer price index in April increased by 2.1 percent as compared to the preceding month whilst that of nonfood inflation shot up by 2.4 percent from March 2022.