In response to the fight against COVID 19 pandemic and to alleviate the economic crises commercial banks continue to aggressively take different measures to help highly damaged businesses.
Debub Global Bank has cut 2 to 2.7 percent interest rate to its customers working in the hotel and tourism sector and 1.9 to 2.4 percent for those in the horticulture sector. According to the statement the reduction will stay up to June 30, 2020.
Berhan Bank also announced its reduction of interest rate by up to 4 percent for sectors including the agriculture, hotel and tourism, manufacturing, export and construction sectors. According to the bank the reduction is depending on the sectors starting from May 18.
As stated by doing this the bank will lose about 100 million birr income. Also the bank has cut off additional payments for other services including letter of credit service charge and decided to reschedule and postpone loan settlement period.
Lion International Bank has also announced the removal of penalty on those who do not pay their loan on time because of the pandemic and cutoff 0.5 up to 5 percent interest rate for customers that are involved in the hotel and tourism sector, agriculture, transport and construction sectors. As stated the bank also cut additional service charges. According to the bank the bank will lose 21 million birr because of these measures.
To mitigate the damages of the pandemic on industries that have fallen as far and as fast as tourism, hospitality and the horticulture sector banks are taking different measures.
Last week four other banks including Enat bank, Wegagen Bank, Abay Bank and Dashen Bank announced to reschedule loan settlement and cut interest rates for sectors like hospitality and tourism for three months.
Commercial banks continue to assist businesses
Wheat bid smooth for first time in years
The Public Procurement and Property Disposal Service (PPPDS) concluded the 600,000 metric tons of milling wheat procurement without a claim.
PPPDS that opened the financial offer for the bid to procure 200,000 and 400,000 metric tons of wheat separately and this will be distributed to the Ethiopia National Disaster Risk Management Commission and Ethiopian Trading Businesses Corporation respectively. The bid is awarded to three companies.
For the bid to procure 200,000 metric tons of wheat, the London based Gemcorp Commodities Trading, that offered USD 204.97 per ton for the first 100,000 metric tons lot and USD 202.33 per ton for the second lot, is awarded to supply the grain.
According to confidential cost of carriage that Ethiopian Shipping Logistics Services Enterprise (ESLSE) provided for PPPDS, the transport cost from ports that Gemcorp offered to Djibouti port is USD 39 per ton, which means the total winning prices are USD 243.97 and USD 241.33 per ton for the first and second lots respectively.
According to the bid document of Gemcorp it has stated that it will provide the products at two ports in Ukraine and Russia for first and second lot respectively.
The carriage cost for most of the bidders was almost the same except Ameropa AG, a Swiss company, mentioned it will provide the product at Constant Port of Romania and the ESLSE cost of carriage indicated that the per ton price from the sated port is USD 38. Meanwhile Ameropa offered a higher price for the grain than Gemcorp.
In the second bid to procure 400,000 metric tons of milling wheat two companies secured the award.
Singapore based company Olam International, that offered the least price for the first lot only, secured the 100,000 metric tons supply. It offered USD 212.7 and the carriage cost that ESLSE gives is USD 39 per ton from the port Chornomosk at Ukraine.
The rest three lots classified by 100,000 metric tons each is awarded to a German based company, Marthina Mertens Sampl.
The German company has offered USD 219.35, USD 219.49 and USD 219.99 per ton from lot two to four and the carriage cost from Russian Port of Novorossiysk to Djibouti is USD 39 per ton according to the price given by ESLSE.
On this latest bid process PPPDS has taken different bidding approach by proceeding two envelop system. In the system bidders should come up with the technical and the companies that pass the technical evaluation will compete on the financial bid in a separate manner.
Tsewaye Muluneh, Director General of PPPDS, stated that the current bidding process is the most successful approach taken by PPPDS. She told Capital that this wheat bidding process may be the only bid concluded without any dispute.
Abeba Alemayehu, Procurement and Contract Administration Sector Deputy Director at PPPDS, told Capital that previously the Service only look for the wheat price. “The freight cost is now taken into account. In the past in our bid document we mentioned bidders to come up with any port, but now on the current technical proposal PPPDS stated that bidders should come up with named port that shall give us to analyze the carriage cost,” she added.
“Previously we might award the company that offer lower price on the wheat but sometimes the final price included the carriage cost will be higher due to the port location and destination,” she explained.

“The supplier offers FOB price and the government cover the transport cost but based on our study it costs the government; for instance the carriage cost for the wheat that comes from Black Sea and Argentina port does not have similar rates,” Abeba said.
In the past both technical and financial documents were opened at the same time, which was a challenge to conclude procurements on time. At the same time bidders were free to loading ports or the government was not considering the loading port destination, which is now analyzed by the state owned enterprise ESLSE and offered for the Service to consider it.
A company representative that participated in several public procurements for years highly appreciated the new approach introduced by PPPDS.
“This is very clean and transparent and the country is supposed to follow similar procurement process in the future for such huge purchase,” he said.
He added that the scheme will clear corruption suspicions and is a perfect approach.
“Even the shipment approach is very clear that ESLSE presented the port of loading price that will determine the winner of the bid,” the bidder said.
FEARMONGERING & CONTROL
With few exceptions, the majority of humans are endowed with a somewhat balanced emotional and cognitive disposition. Fear, as a primordial element, is part and parcel of our nature. Avoiding fear completely is not a possibility, at least in the case of the majority. Only the bona fide psychopaths can lead their lives without hardly any fear. In fact, when in company of other normal beings (over 90%), psychopaths tend to fake fear and other emotions (empathy, sadness, etc.) with an intention to joining the ‘fearing herd’, i.e., the larger human community! There are enough scientific data to suggest chronic psychopaths who suffer from all sorts of emotional/cognitive imbalances tend to be more ‘fearless’ than others. As a result, they are instinctly pulled to dangerous/confrontational situations; their undeveloped sense of fear leaves them at a disadvantage. In other words, psychopaths are without a built-in restraining mechanism, which has been honed throughout the eons, to help avoid unnecessary violent engagements/activities!
In short, psychopaths are anti-social. When such characters occupy the pinnacles of human institutions, be it within the state or outside of it, society is bound to suffer grave consequences. Wars are just one example perpetrated by power hungry psychopaths. Despite this anomaly of the mentally sick, fear is what defines us as humans along with other animals. In the domain of the Homo sapiens, rational thinking has been modulating fear throughout the ages. Other animals still fear fire, for example. On the other hand, we do not fear typhoons or hurricanes as in the old days, but still are wary of them. Science/technology (satellite, etc.) has managed to track and even predict the trajectory as well as hurricane’s landfall (to a large extent). Even though we are helpless in stopping hurricane’s devastating effects, prior knowledge of their general ferocity and directions have given us a sort of solace. At the same time and unlike wild fires, we don’t even attempt to stop hurricanes. In this case we humbly acknowledge our limits. On the other hand, various epidemics/pandemics like polio, smallpox, yellow fever, etc., (viruses), cholera (bacteria), etc. have been conquered, at least for the time being. At one time these pestilences did induce wide spread (rational) fear within the human community. Today, our fears of such diseases are somewhat tempered, thanks to advances in medicine. There are plenty of examples to show our fears are inversely related to our knowledge, i.e., the more we know the less we fear! Naturally, what we do not understand can still steer fear in us!
Besides the collective fear we all experience as a species, triggered by the likes of the above examples, individuals can face situations that can potentially induce (irrational) fear in them. Phobia, PTSD, etc., arise mostly as consequences of undesirable experiences encountered by individuals. Moreover, one can infer, from experience, the existence of a ‘fear threshold’, so to speak. The ‘fear threshold’ can differ from one individual to another, depending on age, gender, experience, etc. At the end of the day, it is these shared frailties that make us humans! But when fear is systemically induced and intentionally imposed on all humanity by the power that be, the whole project must be suspect. In fact, such a systematic act must be classified as ‘crime against humanity’! In addition, it is important to clarify and not confuse the ‘fearlessness’ of the psychopaths with that of bravery. The ‘fearlessness’ amongst the sick seems to be due to certain physical conditions in the brain. Since psychopaths are born without the faculties that allow them to experience fear like the majority of their human compatriots, they tend to be daring and this is often misconstrued as ‘bravery’. For instance, psychopathic politicos are very eager to declare war, but are not willing to fight it themselves. They also seem willing to pass harsh judgment on other fellow humans, while not willing to accept the same judgment when passed onto them! The Good Book (ten commandment) warned us about such unbecoming deed, labeling it a sin, thousands of years ago. Therefore, as far as psychopaths are concerned, they are above the law and the usual ‘rule and law’ doesn’t apply to them. It is such callous criminal attitude of psychopaths, who are now very much in control of global human affairs, that is disturbing enlightened humanity. Just look at the manifest gangsterism of not only the reigning hegemon, (coup d’état in Libya, Ukraine, Venezuela, etc.) but also its minion vassals and lackeys across the planet!
Nazi propaganda was quite effective in creating fear across the world. The mass psychosis thus created was unleashed on millions of unsuspecting citizens.
Here are some of the fear-mongering strategies of the Third Reich that have an eerie resonance to the ways of the current deep state. In these collapsing days of the modern world order, Nazi or Fascistic strategies/teachings seem to have found receptive ears within the nation states corridors of power. “If you tell a lie big enough and keep repeating it, people will eventually come to believe it, however, the lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” Joseph Goebbels, Propaganda Minister of Nazi Germany. Good Day!
New study on Ethiopian migrants to the gulf finds many unaware of dangers
Only 30 per cent of Ethiopian migrants seeking to find work in Saudi Arabia are aware that Yemen – the one country they must cross -is in its sixth year of conflict, while less than 50 per cent know of the dangers of boats capsizing at sea. This is according to a new study – ‘The Desire to Thrive Regardless of Risk’ – by the International Organization for Migration (IOM)’s Regional Data Hub which is largely funded by the EU-IOM Joint Initiative for Migrant Protection and Reintegration in the Horn of Africa.
The research found that many of the young Ethiopian migrants on the Eastern Route to the Middle East remained unaware of the risks of the journey. These include the high likelihood of experiencing hunger, dehydration, or contracting waterborne and gastrointestinal diseases in transit, along with the possibility of being abused.
The study is based on interviews with over 2,000 young Ethiopian youth in Obock, Djibouti, trying to reach Saudi Arabia.
Since 2017 at least 400,000 Ethiopians have crossed to the Arab Peninsula, where IOM maintains an outreach programme advising young migrants of the perils ahead. Last year over 120,000 migrants were returned from Saudi Arabia to Addis Ababa.
Most migrants were moving for socio-economic reasons. Many expected to earn seven times more pay in Saudi Arabia than in Ethiopia. Fifty per cent of migrants reported making about USD 61 per month back home, while the median expected monthly income in Saudi Arabia would be USD 453.
Researchers spoke to 18-year-old Bourhan, who was looking to earn a lot of money in Saudi Arabia. It took him a week to get from his village in Ethiopia to Obock. He still had to pay smugglers USD 150 to get him across the Gulf of Aden, and another USD 200 to reach Saudi Arabia.
“I have friends who have earned money in Saudi Arabia and now have beautiful lives in Ethiopia. We want to have what they have,” Bourhan said.
His story is typical. Ethiopian youth are egged on by a strong migration culture. Aspiring migrants can easily identify brokers and returnees in their communities. Many migrants are aware of families within their communities who have improved their living standards with remittances from Saudi Arabia.
The researchers found that families were more involved in the journeys of women (36% received support from their families to cover costs, compared to 21% of men), while 64 per cent of migrants have attempted the journey at least twice before.
Fifty-nine percent of first-time migrants did not inform their families prior to migration. The decision to migrate is usually made quickly: 83 per of first-time migrants made this decision less than one month prior to departure.
IOM Regional Director for East & Horn of Africa Mohammed Abdiker, said “this report shows us just how misinformed many Ethiopian youth who embark on these dangerous journeys are. They are ill-prepared, ill-equipped, and often put their lives in harm’s way, opening themselves to abuse and exploitation. The report will enable IOM to better target its work with this community to dispel some of the myths of irregular migration.”
The research follows the launch in 2019 of a multi-stage research project aimed at better understanding the experiences, decision-making, perceptions and expectations of young Ethiopians (15-29) along the Eastern Route to Saudi Arabia.