The Embassy of the State of Israel fair welled two Ethiopian mothers of two outstanding Israeli soldiers to Israel to attend the President’s Medal of Excellence award ceremony given by Isaac Herzog, President of the State of Israel. Nathnael Fantahun, 24 and Abrash Zagia, 23 recipients of this award migrated to Israel and joined the military.
Abrash, the first recipient solider serves as medical secretary at the Medical Services Headquarters, received the Presidential Outstanding Medal along with 119 other soldiers. The soldiers receive this award for their significant service and extraordinary contribution to the Israel Defense Force (IDF) and the State of Israel. In 2018, Abrash immigrated to Israel from Addis Ababa as a lone soldier, her Jewish father died 20 years ago when she was a child and her mother, Alganesh Werku, stayed in Ethiopia.
Nathnael Fantahun is the second recipient is a solider awarded with President’s Medal of Excellence award for his excellent achievement in the military. His mother Emebet Negussie said that this was something that was beyond her expectation and everything still feel surreal.
The Embassy of Israel fare welled two Ethiopian mothers of two Israeli Soldiers honored and awarded the President’s Medal of Excellence
Gov’t revisits regulations to magnetize foreign currency
The Ethiopian government is revising investment incentives regulation to attract more businesses including foreign direct investment (FDI) which the country desperately needs.
Facilitating plots of land through regional administration for agricultural investment is similarly underway.
Drawing from the political change, the government had put on hold some investment incentives owing to abuse of the opportunity which had become horrendous as a source of theft since the approval mandate was given to different stakeholders including regions.
The revised incentives may reduce the benefit or give more relief to investors, according to Aschalew Tadesse, FDI Promotion Director at Ethiopian Investment Commission, who explained the country’s potential in the horticulture sector during a promotional conference organized by the Ethiopian Horticulture Producer and Exporters Association.
He explained that the upcoming investment incentives shall consider the type of incentives. “For instance, value addition may get better incentives,” he added by referring to the agriculture sector.
“The government would be vigilant, unlike the past, since past experience has shown otherwise,”,” he told Capital.
He told Capital that the incentive regulation that would be ratified by the Council of Ministers would include not only the horticulture investment but other sectors as well.
In 2020, the government revised the investment proclamation and regulation with the aim to create a conducive environment for investment flow including for the sector that was protected only for Ethiopians and the diaspora that is now open to foreigners.
The responsibility to look over the investment incentives is expected to be given to the Ministry of Finance since it gets approval, on such matters.
Similarly, to expand the agriculture sector the central government is working with selected regions including Amhara and Oromia to facilitate land.
Unlike in the past, the power for facilitating and allocating plots of land will- fully be controlled by the regions but the central government may provide support.
Mostly the lands may be prepared for horticulture and spice sectors, while other agricultural investments like commercial farming have got wide attention from the federal government, which is working strongly at least to substitute the import.
Ethiopia is allocating billions of dollars to import agricultural products.
Mekonnen Solomon, Horticulture Investment and Export Support directorate Director at the Ministry of Agriculture, said that regions are working to attract investments with a new scheme.
He said that the new scheme shall contribute to solving access to land. Based on the new approach communities would be part of the investment in their area as they are united by the business centre, thus can allocate their plots for the investment. “The initiative shall prevent displacing farmers from their land,” said Mekonnen.
In the past, the horticulture investment corridor was applied, however, it did not attain the expected outcome.
Mekonnen underlined that allocating plots for investment will highly benefit the community rather than the investor. The director pointed out that the contribution and benefit of the horticulture investment primarily provide for the community in the investment areas.
Al-amoudi’s soft drink firm stops production
MOHA (Mohammed Hussein Al-amoudi) Soft Drink Industry S.C stops its production of soft drinks.
MOHA which is popular for producing drinks like 7 UP, MIRINDA, PEPSI, Tossa Minch natural water, and Kool Carbonated Natural Mineral Water, has shut its doors due to ongoing challenges.
The ongoing challenges stem from the current shortage in foreign currency in addition to the firm facing a shortage of such raw materials. To this end, as sources indicated to Capital, the company has now stopped its production of 7 UP, MIRINDA, and PEPSI products.
As sources revealed, since a few months back, the company has been working for three days per week which is under its capacity due to lack of raw materials. As the strain has weighed in heavy, the soft drink firm has had to stop its activities as from the last two weeks.
Employees have also been forced to take cumulative leave with pay until the problem is sorted out, sources explain.
The severe shortage of foreign exchange has resulted in delays in importing vital raw materials like glass, crates, and spare parts for production of the beverages. Bottlers now report that they are struggling with foreign currency shortage problems, a lack of raw materials, disruptions due to power outages, and the overpricing of raw materials necessary for production.
Previously, about 20 bottled water producers had stopped their production as a result of shortage and price hike of materials.
MOHA which is a member of MIDROC Ethiopia (Mohammad International Development Research Organization Companies) is engaged in manufacturing and selling of different types of soft drink in Ethiopia. The company was acquired from the Ethiopian Privatization Agency and established on May 15, 1996.
The overall activates of the company are managed and administrated by Sheikh Mohammed Al-Amoudi, owner of the company.
In the market, MOHA Soft Drinks Industry S.C claims it holds a 52% market share in the soft drinks industry in the country. With an expansion and replacement of obsolete machinery, production capacity of the plant has increased substantially. A significant growth over the years of production, sales, and profitability due to reorganization of operations has been achieved. Productivity has improved tremendously with major cost saving and has insured a regular supply of high quality products. It has also succeeded in reaching new market areas across the country.
Getachew Birbo, CEO of MOHA when reached out by Capital refused to comment on the issue.
Ministry calls on exporters to register
The Ministry of Trade and Regional Integration calls up on oilseed and pulse businesses exporting to China to be registered.
The new requirements come into effect on 1 January 2022. Businesses exporting to China may need to apply to be registered and ensure their labeling is compliant well in advance of the requirements coming into effect.
According to the letter the ministry calls exporters which have their own processing facilities including conducting farming, manufacturing, storage required standards registration number to get a permit.
The new requirements cover the registration of overseas food manufacturing, processing, and storage businesses. They also set out labeling requirements. The requirements apply to a broad range of food products.
Previously undisclosed amount of oilseeds that was transported to China has changed its voyage back to the country due to latest new law imposed by the most populous nation in the world and major trading partner of Ethiopia.
On his performance report that Gebremeskel Chala presented on Tuesday April 5 at the parliament said that as per the declaration of China issued late last year agricultural products that are entered into its border from different countries should have pass the requirement that it introduced.
He said that the declaration of the fast growing economy country has designed agricultural commodities like oilseeds and pulses, which are Ethiopia’s major export commodities to China, exporters should have their own processing facilities and required standards registration number to get a permit.
“We have significant number of exporters, while those who meet the criteria are very few. Those who have their own processing facilities are not more than 40,” he explained.
“Without our knowledge about the new standard set by the Far East country sesame seed has been started its voyage to China, however lately we have got the new declaration due to that the consignment is now returning back to Ethiopia,” he added what was happened on Ethiopian sesame seed export in related with the new declaring of China.
According to Gebremeskel, the registration process for exporters that shall align with the precondition is doing and others who do not have the capacity to meet the criteria may use the registration number of other exporters.
On his eight month report of the 2021/22 budget year Gebremeskel said that because of the new import standard that has become in effect in December last year the volume of sesame seeds, which is one of the major export earning agricultural commodity for the country and the major destination for the Ethiopian seeds is China, exported to the second biggest economy in the world has declined by 74 in volume for January 2022 only.
“The volume has declined by 3,477 tons and in terms of value it has reduced by 73 percent in the month of January compared with the same period of last year,” he said.
The Order imposes a new labeling requirement for all food products imported into China to include the registration number on the label of the inner and outer packaging of the food products, which China Customs would examine and verify at the border prior to granting customs clearance.
