In its monthly report of the month-on-month food inflation rate, the Central Statistics Agency (CSA) stated that the monthly inflation rate of October 2021 decreased by 1.3 percentage points compared to the preceding month of September 2021. Moreover, as the agency predicts, food prices for the next 3 months of the harvest period are expected to decline as long-term seasonal inflation trend shows while the non-food inflation rate is projected to remain stable.
The month-on-month general inflation on October 2021 stands at 24.3 percent while food inflation increased by 28.7 percent whilst Non-food inflation rate increased by 18.5 percent. In October, region wise, Addis Ababa city, Amhara, Oromia and SNNP showed a more stable price situation than the other regions.
In October 2021, the year-on-year inflation rate decreased to 34.2 percent, which was 34.8 percent in the previous month September 2021.
The month-on-month general inflation on October 2021 has shown a decline of 0.6 percentage points and the food inflation declined by 1.3 percentage points as compared to the preceding month of September 2021. In the month cereals such as rice, teff and wheat showed a slight decline in their prices and were relatively stable. However, maize has shown slight increase. Meat, milk, cheese and eggs, and spices (mainly salt and pepper) slightly declined in the current month, according to the agency.
Also the price of imported cooking oil continued to increase in October while local cooking oil and butter prices declined slightly. Coffee bean prices have also increased during the current month.
Non-food inflation showed a stabilized situation during the month.
The country level overall inflation rate based on annual change of the 12 months “Moving Average” rose by 24.3 percent in October 2021 as compared to the similar period a year ago. In October 2021, the Country Level Consumer Price Index has increased by 34.2 percent as compared to October 2020. The year-on-year food inflation has increased by 40.7 percent in October 2021 and the Non-Food inflation showed an increase of 25.3 percent in October 2021 as compared to the one observed in October 2020.
The rise in Non-food Inflation is mainly due to 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).
This increase in the General Consumer Price Index is attributed to the rise observed in the indices of Food and Non-alcoholic beverages of 40.7 percent, Alcoholic Beverages and Tobacco by 27.1 percent, Clothing and Footwear by 25.1 percent, House Rent, Construction Materials, Water and Fuel and Power by 21.0 percent, Furniture, Furnishings, Household Equipment and Operation by 41.0 percent, Health 43.2 percent, Transport 19.6 percent, Communication by 15.2 percent, Recreation and Culture by 47.8 percent, Education by 23.4 percent, Restaurant and Hotels 24.0 percent and Miscellaneous Goods by 24.6 percent. Most of the components of the Food index showed an increase as compared to similar months last year. Bread and Cereals by (49.5 percent), Meat (27.5 percent), Fish and Seafood by (23.5 percent), Milk, Cheese and Eggs (34.1 percent), Oil and Fats (93.1 percent), Fruits by (33.3 percent), Vegetables and Pulses, Potatoes and Tubers by (21.9 percent), Sugar, Honey and Chocolate declined by (16.9 percent), Other Food Products and spices by (42.0 percent) and Non-Alcoholic beverages and Coffee by 40.0 percent).
Food prices expected to decline in the next 3 months: CSA
UNIC in peak performance
United Insurance Company (UNIC Ethiopia) earning per share (EPS) spikes as the firm looks forward to double its capital. UNIC one of the pioneer insurers in its 27th general assembly and 12th extraordinary meeting has decided to postpone the proposal of its capital doubling to a billion birr for another period.
On the annual assembly that was held on Thursday November 11 at Sheraton Addis, UNIC Ethiopia disclosed that in the 2020/21 financial year that ended on June 30 2021, it had registered a remarkable success in every aspect of its operation and investment that is also recognized by shareholders.
According to the annual report of the insurer in the stated period the EPS has increased by 5.5 percent compared with the preceding year. Experts stated that this condition is uncommon when a company engages on capital increment.
“Even though the paid up capital of the company grew by about 8.5 percent to reach 473.4 million birr in the year, the EPS showed a modest growth,” UNIC Ethiopia Board of Directors report stated.
As per the report the EPS grew from 29.9 percent of the preceding year that ended on June 30, 2020 to 31.5 percent in the June 2021 ended financial year.
For the year, the total gross written premium, which combined the life and general businesses, expanded to 731.4 million birr from 597.4 million birr a year ago.
Similar to prior years of the insurance business in Ethiopia, the general or non life insurance gross written premium took the lion’s share by generating 660 million birr and the remaining 71.3 million birr fell to the contribution of the life sector of insurance business.
The general insurance premium earnings expanded by 20 percent compared with the preceding year, while all classes of business recorded growth except accident/ health class.
From the non life premium earnings, motor class of business as usual took the huge chunk of the pie with 59 percent followed by fire and general accident classes.
With regards to the premium for the life sector, the company has registered massive achievements. The life insurance premium has risen by 56 percent and the loss ratio was 44 percent which is far below from the industry average of 58 percent.
During the reporting year, the net claim has shown an increment of 20 percent and reached 288 million birr which was 241 million a year ago.
“As a result the corporate loss ratio increased to about 60 percent as compared to 55 percent in 2019/20 financial year,” the report stated.
For the year the combined underwriting profit from life and non life business grew to 212.3 million birr in the stated period from 210 million birr a year ago.
The report claimed that the increase in claims ratio is due to the ever-escalating cost of goods and services in general and the price hike of spare parts in particular. Moreover, the continual unfair price war in the sector has contributed to the same.
For the year UNIC Ethiopia’s profit before tax increased by 15 percent and was 170 million birr, while the profit after tax has expanded by 17 percent to reach 145 million birr.
Regarding investment, UNIC Ethiopia has four buildings including one in Bahir Dar and shares in different companies. Under the reporting year, the company has earned 40.3 million birr from rent of its buildings that grew by 17.5 percent compared with the preceding year.
“Income from dividend has shown a significant growth of about 29 percent and reached 29 million birr from 22.6 million birr a year ago,” the report explained.
The dividend earnings were secured from United Bank and Ethiopian Reinsurance Company, while from its investment at Habesha Cement the company is yet to secure its profits to which shareholders recommended at the general assembly the leadership of the firm to investigate the situation at the cement factory.
Currently UNIC Ethiopia has a total asset of 1.8 billion birr.
In its extra ordinary meeting held on the same day, the Board of Directors proposed that the company capital to grow to one billion birr from the current 500 million birr.
According to the Board of Directors proposal, the reason for capital increment is to expand UNIC’s investment and profitability, accelerate its competitiveness and for other economic reasons.
However the general assembly proposed that the capital increment be postponed for the coming year since shareholders need time to fully conclude their arrears to be paid for the 500 million birr capital increment.
It is recalled that in 2018 the general assembly of UNIC decided to double its capital from 250 million birr to 500 million birr in five years, and the paid up capital has now reached 473.4 million birr.
Shareholders recommended that those who are expected to pay their part shall get time to pay to reach at half a billion birr within one year time and proposed further capital increment for the coming year or, alternatively in the middle of this financial year should the board decide to call an extraordinary meeting.
TotalEnergies launches the 3rd edition of the startup challenge
TotalEnergies launches the third round of startup of the year challenge in 32 countries within the African continent.
The third round was launched with the aim to support young African entrepreneurs between the ages of 18 and 35. “All business creation project holders and young innovative startups with a positive impact on their communities and the planet can participate,” stated TotalEnergies.
According to the official statement of TotalEnergies, entrepreneurs can participant in three categories, that is: Best business creation project, Best startup under-3 years of age, and Best female entrepreneur.
“Beyond the entrepreneurial spirit, this year’s challenge reaffirms total energies commitment to support the socio economic development of the countries in which the company operates in Africa,” said Total.
The competition is said to strength the local fabric by supporting the most innovative entrepreneurs in the realization of their project.
According to TotalEnergies, three winners will be selected from each participant country and following the nomination of the three winners per country, an international jury will meet to select the three grand winners for the continent.
“A local jury made up of experts, people from the world of startups, company managers from local sustainable development players and managers from TotalEnergies Marketing Ethiopia will select three winners from Ethiopia,” TotalEnergies Ethiopia disclosed.
According to TotalEnergies, winners will get rewards and benefits including: Financial support, media visibility and coaching.
The 32 participating countries are from North Africa: Algeria, Egypt, Morocco, Mauritania and Tunisia West Africa: Ivory Coast, Ghana, Guinea, Nigeria, Senegal and Togo, Cameroon, Gabon, Equatorial Guinea, Central Africa: Democratic Republic of the Congo and Republic of the Congo, East Africa: Ethiopia, Eritrea, Kenya, , Uganda and Tanzania and from South Africa: South Africa, Angola, Botswana, Eswatini, Malawi, Mozambique, Namibia, Zambia and Zimbabwe and the islands of Reunion, Island-Mayotte Island, Madagascar.
Accessible directly through an online platform, registration was opened on the 4th of November 2021 which stretches to December 23, 2021.
Additional to the previous start-up launches, the “best female entrepreneur” is a new feature for the 3rd edition which aims to firmly encourage female entrepreneurship on the continent.
The first edition of total energies startup challenge was held in 2016 where 102 winners were chosen from 34 countries while the second was held in 2019 participants were from 55 countries worldwide, 165 winners were selected.
Scaling innovations through partnerships
AHRI and EPHI kicks off the SUPER project
By Jonathan Ecubay
The Armauer Hansen Research Institute /AHRI/ and the Ethiopian Public Health Institute /EPHI/ collaboratively launched the SUPER project on November 12, 2021.
The SUPER project which is an acronym for Scaling Up Pathogen Genomic Sequencing for Epidemic Response in Ethiopia (SUPER) secured a grant funding from the Bill and Melinda Gates Foundation under the Global Grand Challenges and is set to run till August 31, 2022.
“Your presence here is a powerful testament to our collective desire to see positive change through an effective and progressive response to the project to advance science, technology, and innovation for a better understanding of genomic sequencing of SARS-C0V-2 both in Ethiopia and around the world,” remarked Dr. Getachew Tollera, Deputy Director General of EPHI whilst addressing researchers of both AHRI and EPHI at the launching workshop.
It is to be recalled that the COVID-19 pandemic brought about unprecedented challenges for Africa, with every country potentially at risk for unmitigated spread of SARS-CoV-2. Moreover, the emergence of new SARS-CoV-2 variants is further raising concerns of the possibility of re-infection among those previously infected with the ‘wild type’ virus. To this end, Dr. Atsbeha Gebreegziabxier, Principal Investigator of the SUPER project explained that the research will boost the country’s sequencing capacity to establish routine SARS-CoV-2 genomic surveillance and monitor the emergence and impact of new variants to better inform public policy.
“It is a great pleasure for AHRI to partner with EPHI and promote regional based partnerships which will greatly contribute in public health emergency response and intervention. We look forward to have an open data sharing between both institutes as well as share our genomic capacity facilities for the success of this project,” stated Dr. Alemseged Abdissa, AHRI-Deputy Director General.
Over 1,000 SARS-CoV-2 positive samples is set to be collected across 14 hospitals and laboratories over a period of ten months which will be subjected to next generation sequencing and bioinformatics analyses to identify any new variants. During the course of the project the efficacy of existing diagnostic assays for detecting these different variants will be tested. New genomic data will be promptly uploaded to public repositories, and a web-based platform will be developed to rapidly communicate research findings to relevant stakeholders, including the Ethiopian Ministry of Health, so that results can be readily translated into public health policy.
Dr. Andargachew Mulu, senior scientist at AHRI explained that the project will be important in evidence generation, synthesis, transfer and implementation. Furthermore, he elaborated that it will it will go a long way in building the capacity of both institutes through short and long term trainings as well as promoting knowledge and technology transfer.
