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First mortgage bank receives homely reception

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In the presence of several ministers, governmental officials and the banking community, Goh Betoch Bank, the first private mortgage bank, held its official opening ceremony on Monday October 25, 2021 at the Sheraton Addis.
The inauguration ceremony was attended by the organizers of the bank, Chaltu Sani, Minister of Urban Development and Infrastructure, Aysha Hussein, Minister of Water Irrigation and Lowland Environment and Lense Mekonnen CEO of Federal Land Bank and Development Corporation.
The mortgage bank that received its license from the National Bank of Ethiopia in August is expected to be an alternative source of finance for the housing scheme, which usually access less than 10 percent from the total fresh loans in the financial industry.

Revenue Ministry drafts scheme to inspire tax payers

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Ministry of Revenue (MoR) announces that it is drafting a scheme to encourage well accomplished tax payers in terms of different operations in which they conduct their business.
The revenue authority announces that there are companies that contributed billions of birr as tax but were not included on the latest tax payers’ recognition day.
Since the reformist government took office, tax payers who have good performance in the sector have been receiving recognition.
The third round event that recognized 300 tax payers from different sector was held last week in the presence of PM Abiy Ahmed at the Banquet Hall of Emperor Menelik II Palace.
Kebede Lidetu, Risk and Compliance Director at MoR, said that the companies which were recognized on the day are selected by a criteria mainly on their compliance of their responsibility, “compliance takes about 70 percent of the selection requirement, while the remaining merit is their contribution for the revenue.”
According to Kebede, MoR is giving a priority for tax payers commitment for the taxation than the value they paid.
Some tax payers that Capital interviewed about the latest recognition said that they are delighted by the recognition and appreciated the initiative that the government took.
One of the awarded company leader said that for the two years running his company was included on the recognition which continually rejuvenates him to keep his commitment to be part of the upcoming similar occasions.
However the tax payers also expressed their confusion citing that that there are companies out there with similar level of their business but were not included in the recognition.
They added that there are even companies that have secured more benefits and incentives in relation with access to finance and huge foreign currency and other opportunities for the government but are not included on the tax payers’ recognition.
“For instance companies with similar status as us and with different beneficiary were not recognized,” they said.
They expressed their concern that the government should follow these companies who are supposed to be included in the scheme whilst also suggesting for the government to consider special treatment for those who are committed in their obligation to pay government revenue.
Kebede said that there are companies which contributed to the generation of billions of birr but were left out on the recognition.
“For instance there was a company which generated five billion birr to the taxing system but was not awarded in the latest event,” the Risk and Compliance Director explained showing why compliance is key when giving the recognition.
He underlined that the process is not directly related with the amount that a given company paid or contributed.
Kebede accepted the claim from prudent tax payers and added that there are initiatives that the government has started to introduce aiming to encourage tax payers.
“We have similar concerns regarding those who are considered good performing tax payers to get better service in the bureaucracy,” he says, adding, “so far we already have introduced a structure to benefit model tax payers to provide better service at our branches.”
He said that MoR has special window or dedicated manager for prudent tax payers; similarly it is to be expanded in other public offices or benefits.
Dawit Tadesse, Taxation Expert and Managing Partner at Lead-Plus Management Consultancy and Training Center, said that special treatment through different approach is proper.
“There are different schemes like authorized economic operators, facilitating plots of land for expansion projects, and provide swift security support and other benefits that go with the government policy,” Dawit said.
“For instance one of the government policies is industrialization. If these model tax payers are involved on manufacturing sector and may have expansion, the government will provide foreign currency as per its policy since they are highly committed to pay their duties properly,” Dawit explained.
Kebede said that the draft law that may be ratified by the Council of Ministers tried to include special benefit and treatment for prudent tax payers to get from different authorities that will be in terms of finance or hard currency or may be other VIP services in the government bureaucracy.

AFRICAN MAJORS DISCONNECT

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The African population continues to eke out a living on the ground. On the other hand, the states, seemingly oblivious to the sheeples predicament are pursuing policies that are formally and informally prescribed by the global dominant interests via the institutions of economic governance, education, as well as others. Adhering to the diktat of the ‘masters’ has not been very encouraging, media/state rhetoric aside. Polarization which breeds instability is in the ascendance and the so-called gains that were registered in recent years were mostly due to higher commodity prices as well as low interest on loans/debts obtained from China and the West, compliment of massive money printing. Conditions are now reversing and the flow of money from the South is accelerating. As the US dollar becomes dear and interest rates on US dollar denominated loans rise, servicing (let alone paying back) the fast accumulated debts will become difficult. In fact, the situation increasingly looks like the old 1980s third world debt crisis!
In the context of Africa, the whole scenario has created a discernible disconnect between the states and their increasingly restive beasts. What is even disturbing is; the attempt to resolve the various disconnects might entail yet another round of generalized violence. Unlike before, however, (when Africa’s population fought European colonialism in unison) the ascending violence that is being waged against the various prevailing grievances seems to be fragmented, disorganized, even unprincipled. Nonetheless, the violence is real and will continue to destabilize the fragile continent. A number of the major African states are clearly dithering while the sheeples (in these countries) find themselves on the precipice. Unfortunately the top four of the most populous states have one thing in common. They are becoming visibly unstable!
However, to sustain the prevailing relative peace & stability, concerted efforts must be exerted by all and sundry to weed out the sources of systemic instabilities. Injustice (in all its manifestations–nepotism, corruption, mal-governance, mal-investments, etc.), which pervades our collective existence, must be seriously assuaged, if not purged all together from the society at large. Don’t forget, unlike many of the African countries, Ethiopia has undergone a wrenching revolution that did away with most of the built-in imbalances/injustices that used to structurally/institutionally impede the general development of the sheeple. In spite of the current superficial affluence that is affected by the connected oligarchy and its decadent culture, the beast still remains rather decent and God fearing in all its major undertakings/vocations, hence, might one day take matters on its own hands and pounce on the whole charade/nonsense. From now on mere palliatives and cosmetic changes might not do, as resentments have against such dispensations have visibly deepened. Let’s hope our forewarning has not been all to no avail!
The above majors, with due respect to their struggle against colonialism, were not allowed to seriously tackle their own shortcomings in their own ways. As a result of (mostly) outside protracted machinations these countries succumbed to fragility and instability. Developing a decent and resilient society based on democracy and equity will inevitably demands all sorts of sacrifices. Entrenched interests and their institutions that also double up as creators of culture (Hollywood, education, sports, entertainments, etc.), find the above African virtues anathema to their narrow objectives. The current lopsided globalization is not helping the African mass to deal with its various problems creatively. In today’s world, the organic and supportive traditional African values/culture that could have served as basis for collective cooperative existence, have given way to bona fide narcissism that certainly will not deliver us from the prevailing and highly articulated polarizing globalization!
DRC was made to move from committed nationalist leadership (Lumumba, et al) to that of degenerate compradors (Mobutu, et la.) in no time! It seems DRC is too big and too rich to be left alone! The descent in Nigeria was more gradual. Nevertheless, this country of frantic activities and dynamic sheeple spirit ended up being the reincarnation of neoliberalism in its raw animalistic essence. Money is now celebrated (by the large majority) as if it is the only “God’, here and in the hereafter! The famously un-bashful thieving elites of Nigeria are probably the most powerful agents in inculcating the whole dehumanization project that subtly (and not always indirectly) pushed by the global power that be. The assumption of the dominant interests is that; once such craziness is sufficiently instituted in a society, the rest of the restlessness of the sheeple can be handled rather easily. No wonder the opposition in the north is having easy headways. Frankly speaking, the likes of ‘Boko Haram’ don’t have much convincing to do, given the reality of the poor on the ground. Just wave the ‘holy book’ and pronto, there will plenty of young people ready and eager to become martyrs for ‘the cause’, whether the alleged divine cause is imposed or internalized! Given the protracted mess Nigeria finds itself in, the analysis and responses of the elites, not only within the political class, is at best disappointing! War of resistance against accumulated grievances will not go away, just because the status quo desires it. We believe a more reflective and mature approach to the ongoing crisis is preferred to the rushed violent reaction that might not secure the future to the whole collective!
Going forward, we believe, the ideology light insurrection of the recent past should remain pertinently instructive. Whichever way we look at it, Africa will still be in need of principled revolutions that favor the sheeple. Whether such revolution will be bloodier than what obtains today, depends mostly on the maturity and wisdom of the generation that is willing to wage it!

ECTA liaises with revenue authority to progress coffee trade

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Ethiopian Coffee and Tea Authority (ECTA) says it is working with the Ministry of Revenue (MoR) to introduce a scheme for assimilating coffee trading.
The authority that is registering tangible changes on the coffee market and export earnings since vertical integration’s commencement as an alternative for Ethiopian Commodity Exchange (ECX) platform, said that it is working with the revenue authority to harmonize the new trading scheme.
Adugna Debela (PhD), Director General of ECTA, said that under the new scheme which commenced about a year and half ago empowered farmers, suppliers and exporters to trade the bean directly which also benefited other stakeholders. Moreover it has boosted the volume and the value of the coffee export.
Despite visible success there are also claims that the trading price under the vertical integration is higher than the range that is given by the regulatory body and trading floor at ECX.
However, ECTA argues that the contract between the buyers and sellers is approved by the authority prior to export.
Experts said that the authority only evaluated the contract of the two parties, suppliers and exporters, and not the receipt of the trading, “the good thing is that suppliers issue the receipt for exporters. If ECTA wants to know the case it has to ask for the transaction receipt in addition to the contract agreement,” experts remarked.
Adugna told Capital that there might be different under table negotiations. He said that the way out as mentioned by experts is an alternative to solve the possible challenge.
“We are currently working with MoR to regulate the transaction,” the authority stated indicating that it is working with MoR to assimilate activities with the revenue authority.
“We have crosschecked transaction samples randomly and the result will be seen,” the Director General said, adding that it helps to maximize revenue collection.
In the current budget year, ECTA has targeted to trade 280,000 metric tons of coffee that is the biggest volume ever in the sector trade for the country.
The vertical integration scheme is expected to take the major share of the export.
In the first three months of the 2021/22 budget year the country has earned additional USD 120 million or over half of the target from the coffee export against the amount that ECTA set to attain.
In the stated period a total of USD 330 million was secured from coffee, which is the major hard currency source for the country.
The global coffee price is surging in the past few months because the biggest producer and exporter of the bean, Brazil is being affected this season.
Due to that the performance of Ethiopia registered marvelous achievement in the past budget year from coffee export which has continued to maintain newer records this year.
For instance in the first month of the budget year that started July 8, the authority had projected to export 21,340 tons of coffee but actually it attained to ship 31,146 tons and earn USD 115.5 million that surpass the target by 146 percent and 161 percent in volume and value respectively.
Similarly, the July performance has shown increment of 64 percent and 81 percent in volume and earning respectively compared with the same period of last year.
The authority is aggressively working to expand the high quality coffee, which is the major hard currency source of the country and well known by its quality and flavor, output ranging up to grade 3 than commercial coffee. In this regard in the 2019/20 budget year, high amount of quality coffee was exported than commercial coffee, which took the lion’s share in the past experience.