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Establishing enduring people’s leadership

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The modern world system, which has been around for over half a millennium is collapsing in front of our eyes, but its demise still needs to be managed carefully, if we want to avoid catastrophic wars. The final collapse is expected to be unprecedented, given the scope of the system’s reign and the number of people that have been fully incorporated in it. Unlike before, the management of the impending collapse requires the active participation of ordinary people across the globe. To this end, the sheeple’s leadership must be qualitatively enhanced and forged to the fore. The nation-states and their main governance structure, namely; the legislative, executive and judiciary will not be adequate in the coming years, as the states are the very ones that are prone to waging wars!
Where are the loci of the sheeple’s leadership (not the elites) and how is it to be leveraged in the effort to bring about a more egalitarian, a more democratic, a more peaceful and a more sustainable societal existence to collective humanity? From the outset, one should realize dominant interests have always undermined the sheeple’s initiative to build its own capacity, particularly in interrogating as well as managing the modern world system. Since the anchoring economic regime of the prevailing world order is capitalism, its nemesis, labor or people, had to be subdued in all their activities; economic, political, cultural, moral, etc. As situations deteriorate, such institutionalized discrimination of the sheeple (by dominant capital), spearheaded by entrenched interests, is being challenged openly. Generalized unease, protracted rebellion (wars, etc.) and disillusion about the delusional economic foundations, particularly its lunatic assumption of non-stop growth in a finite planet, are increasing across the globe. This, on its own, can be regarded as another manifestation of the creeping breakdown of the modern world system! Late modernity served by its devoutly subservient elites has become out rightly anti-life and obviously this cannot continue any longer! Let’s revisit the achievements of traditional people’s associations that facilitated progressive popular participation in the world.
The modern world system has managed to achieve some solid emancipatory projects. For instance, voting right that was once the privilege of male property owners was ultimately succeeded by universal suffrage. Labor or organized labor to be more precise, which is the core of all industrial economies, also managed to share some of the surplus with capital. Progressively, democratic dispensations became strong enough to challenge some of the excessively destabilizing policies of entrenched interests, though not always successfully. People’s associations are generally and naturally unwieldy, unfocused even undirected, but their main thrust; that of ‘sustaining life no matter what’, differentiates them from the more powerful profit driven corporations/organizations that worship incessant accumulation without due regard to other aspects of existence. In some countries such people’s organizations are purposely weakened so that they cannot enlighten the sheeple as to the real workings of the dominant destructive system. When it comes to establishing meaningful peoples’ associations, the old socialists did make some impressive headway in the 20th century. Unfortunately, many of these people’s institutions were employed mostly as means of control and were quite effective at it, if we might add. Recent innovations in areas of popular participation, based on genuine democracy with a clear intent to empowering the sheeple in its quest to unravel the going-ons of the unsustainable system, are being experimented on in different places.
Let’s look at associations we have here in Ethiopia. The task at hand is how to augment them so that they will serve as countermeasures to the over dominant state institutions that have proved quite prone to capture by oligarchs and aspiring bourgeoisie (lumpen) from within the political leadership! Socialist Ethiopia has left us with the legacy of the ‘kebeles’, ‘peasant associations’, ‘youth association’, ‘women’s associations’, ‘trade union associations’, etc. Without a doubt, these institutions served as effective control mechanisms in those days. Nonetheless, we believe these people associations can be very useful to effect needed changes, if they are democratized enough. They might even become centers of emerging quality leadership that will have no unhealthy tie with dominant capital and its degenerate oligarchs. For instance, the ‘anti-corruption movement’ that was popularly initiated but was systemically frustrated by the operatives of capital and the state could have made its own impact along this line, to say nothing about the enhancement of good governance across the board. Since such people’s associations are closer to the crime scene and crave for accountability and transparency, they can be a potent force against intentional maladministration/corruption, etc.! Regular open discussions in these institutions (not always chaired by state operatives) on various pressing issues can help the politicos in power to form more relevant and need driven policies. By genuinely empowering these institutions the state can tap the immense energy of the sheeple, as well as solicit political support to its policies, existing or proposed. Many thorny issues can be successfully hammered out in these people’s organization if democratic principles are genuinely upheld!
When things start to sour between the politicos and the sheeple, means that might not be to the liking of many will be employed to convey dissatisfaction to the power that be, just like what we are witnessing in Ethiopia today. Peoples’ associations must be able to conduct peaceful protests/demonstrations, etc. legalistic obstacles notwithstanding! Such activities must be one of their prerogatives. When the heavy handedness of the state reaches a level that can be considered offensively suffocating (by the sheeple), direct actions, legal or otherwise, cannot be ruled out. For the sake of good governance, certain inalienable rights of citizens should not be considered as mere largess of the state! States all over the world should be reminded about the limit to their blunt preponderance, rather frequently, as prescribed by the old revolutionary/statesman.

Dalol shareholders feel hoodwinked by their prime investor

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Shareholders of Dalol Oil, one of the pioneers in local oil dealings, claim that a major share of the company was unlawfully taken by a foreign company. Shareholders argue that the incoming of the new company is suspicious and against Ethiopia’s business laws.
According to the claim that shareholders shared with Capital, the company called Gulf Prime Investment Plc has become the major shareholder without their knowledge.
The claim of the shareholders indicated that to elevate the financial constraints of the oil dealer, the board of directors of Dalol approved floating of un-sold shares to interested buyers.
Based on that, Gulf Prime, a company based in Dubai, UAE and oil and lubricant suppliers of Dalol have bought the said shares taking 22,348 shares worth 22.348 million birr.
As per the decision of the board, the company was invited to take the shares, at least in the settlement of two installments in a year’s time.
The board had also passed a decision that the payment should be conducted as per the country’s investment rules which means in foreign currency.
Besides that, the board directed Dalol’s CEO to handle the responsibility of verifying the required legal documents of the company and the process prior to the final endorsement of the general assembly.
However, shareholders expressed their concern that the company may not follow legal procedure to take the major share of the company as per the direction given by the former board. “I have a doubt that the company is registered as per the country’s trade laws,” one of the shareholders, who demands anonymity told Capital.
The board chaired by Tadesse Bekele, with the inclusion of a few members from the former board of directors was assigned in late 2021.
Shareholders argued that by now Gulf Prime should settle the total share amount, which is over 22 million birr, “but we have been informed by management of Dalol that the company so far settled nine million birr.”
They added that despite the share sales being supposed to be conducted in foreign currency, a confirmation on which currency was used was not cleared up.
They added that there is a conflict of interest between the local company and the new major shareholder; since Dalol is aligned with the new major shareholders who supply lubricants and oils, “we have also concerns regarding the supply, whether it is managed under competitive bidding manner or not,” shareholders described their confusion on the matter.
Sources said that if Gulf shall fully pay the whole amount of the shares offered, the company stands to take one-third of the stake at the company which makes it by default a quorum for the general assembly.
As per the information Capital obtained from the Ministry of Trade and Regional Integration, Gulf Prime Investment registered on August 24, 2020, at Kirkos Sub City with six million birr capital for engaging in the transport cargo trucks sector.
However, the company has also two licenses that were registered on the same date of February 21, 2020, but their status is canceled according to the data secured from the ministry’s ‘Business License Checker’ page.
The document indicated that one of the licenses registered involved the business of ‘import trade in petroleum and petroleum products and related products’ and the other license registration indicated the company’s involvement in Ethiopia is quoted as ‘wholesale trade in solid, liquid and gaseous fuels and related products’.
According to the country’s investment law a foreign company that would like to invest in Ethiopia should transfer at least USD 200,000 as initial investment capital.
“If a foreign company would like to invest jointly with local companies the initial amount that flows to the country shall be USD 150,000,” Daniel Getnet, legal advisor and foreign direct investment consultant said.
He told Capital that for the Gulf Prime case, the company should have at least channeled USD 500,000 to take a share worth over 22 million birr.
Experts said that the company’s license showed that the company’s capital was six million birr, which is about USD 117,000 at the current exchange rate which is far from the required initial investment amount for a joint venture or sole investment.
Biruk Girma, CEO of Dalol Oil, rejected Capital’s request for clarification, while he insisted that the board chair is the required body to answer the case. Capital’s effort to talk to the board chair was also unfruitful.
Getu Desta, who is stated as manager on the license of Gulf Prime, told Capital that Dalol is the right body to respond about the share ownership of Gulf.

Firms pump 369 mln birr into ads in the 1st quarter of 2022

According to a report released by Omni media Ethiopia, over 369.2 million birr is spent on advertisement in TV and Radio stations in the country. Of these advertisements the top ten companies in Ethiopia have paid more than 125 million birr to TV and radio stations within the past three months to push their advertisement.
Omni media monitors 35 TV and radio stations. In the past three months, these 35 stations spread 71665 spots getting 369.2 million birr in payment. TV stations take the majority share spotting 42,182 advertisements taking the chunk of 340.84 million birr while radio stations spot only 29483 advertisements getting 28.35 million birr.
Omni media from its engagement in digital marketing and media monitoring for the past three months reported that: banks, satellite TV providers, real estate companies, detergent manufacturers, telecom and soft drink producers were the most to advertise content in the top categories from January to March 2022.
Of these top ten companies, according to the report, Ethio telecom tops the list by advertising 2872 spots and paying 24.45 million birr in the three months. This figure is followed by DStv which pushed 4628 spots at a cost of 21.6 million birr while Cooperative Bank of Oromia slots in third with 1499 spots paying 15.8 million birr while Canal+ seats forth spreading 1412 advertisements paying 14.5 million birr. Another financial firm on the list is Awash Bank which pays 9.7 million birr for its 1492 advertisements for the last three months.
Commenting on the issue, the Managing Director of Omni media, Feruz Jemal stressed that even though the volume of advertisements is growing steadily, the income of stations is not as growing as much as it should. Covid and instability of the country were notable reasons for the slightly stagnating income growth.
Advertising and trade promotion is important in the Ethiopian market. Government-owned mass media outlets (radio, television, and newspapers) and privately-owned magazines, satellite television stations, newspapers, radio stations and billboards are the major means of advertising and most private media outlets run their business using their income from advertisement.
“All stakeholders should take fast actions similar to the growth of advertisements, for the sustainability of media,” recommended Feruz as he sensitized on market opportunity capitalization.

Six int’l firms line up to supply heavy trucks for ESLSE

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Ethiopian Shipping and Logistics Services Enterprises (ESLSE) floatation of an additional supply of150 heavy trucks catches the eye of six international companies.
It is to be recalled that the state logistics giant issued an international tender for the procurement of the stated number of trucks for its operation from seaports to the center.
At the initial attempt, the number of interested bidders reduced than the expectation which then pushed the enterprise to refloat the bid that opened on Friday, April 15.
According to Wondimu Denbu, Deputy CEO for Corporate Service at ESLSE, this time around six bidders have shown their interest to supply trucks.
He said that a preliminary evaluation of bidders has been conducted which will then be followed by a technical team evaluation before the opening of financial documents of the companies that pass the technical process.
“The technical evaluation may take more than a week, and primarily depends on the volume of the documents,” Wondimu told Capital.
Initially, the logistics giant invited companies to supply trucks on deferredletters of credit (LC), however, only one company showed its interest to engage in this scheme.
A few weeks ago, the Deputy CEO told Capital that the second-round bidding will take place with some revisions from the former bid document.
“On the second round of bid floating we have reviewed the scheme and invited interested bidders to submit their offer on both; normal procurement procedure and deferred LC,” the Corporate Service head at ESLSE explained mid this week.
Months ago, the government through the Ministry of Transport and Logistics approved a scheme for logistics companies to get a guarantee to import trucks with a 30 percent initial installment that shall be stated as buying trucks on differed LC. As per the initiative truck operators may open LC by 30 percent of the procurement value and the balance will be settled within two years.
The government has given the guarantee for the payment that will be settled in the timeframe given by the scheme.
As a logistics operator, ESLSE has also been included in the initiative and was given the go-ahead to import up to 150 heavy trucks, even though its demand was double the approved amount.
A year ago the logistics monopoly had bought 150 Sinotruk trucks from the Chinese Jinan Sinotruk Co at the cost of 11 USD million. This company was the only interested company to participate in the early deferred LC bid that was opened a few weeks ago. However, because of low interest in the first opening ESLSE issued the second round which opened on April 8 attracting six potential competitors.
The initiative which was embarked by the Ministry of Transport and Logistics allowed 168 transport companies to import 3,200 general cargo trucks through a deferred LC.
Recently, 38 trucks that are directly bought from the Chinese manufacturer at the cost of the same winning price of last year’s bid have entered into ESLSE’s operation. According to the country procurement rule, the enterprise has a right to conduct up to 25 percent additional direct purchase from the bid winning supplier, “that is the advantage we capitalized onso as to procure additional 38 trucks, besides the 150 Sino trucks, which are already in the operation,” officials of ESLSE recently told Capital.
Currently, ESLSE has 450 operation heavy-duty trucks and the new coming 38 trucks will increase the number to 488.
Besides operating the leased trucks from private logistics companies, ESLSE is expanding the operation and number of owned trucks since the sector is more profitable and allows the public enterprise to play its part to accelerate the logistics activity that as a sector is often criticized as a challenge for doing business in Ethiopia.
Different studies indicated that Ethiopia’s logistics sector is one of the poorest compared with the peer countries. To tackle the problem the government has embarked on different policy directions and initiatives including opening the sector with at least 49 percent share for foreign operators.