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Ethiopia announced that the country is well prepared to go with the African Continental Free Trade Agreement (AfCFTA) that became effective as of Friday January 1, 2021.
Eshete Assefa, State Minister of Trade and Industry (MoTI), said that the country focused on trainings to catch up with the continental free trade scheme.
The training focused on public institutions, House of People Representatives and the business community.
“We have undertaken massive preparation for the new scheme that shall keep the interest of the country and armed the implementers with relevant awareness,” Eshete says. “We have to be armed to win the competition and have equal role on the game,” he added.
The AfCFTA is signed by 54 countries with the exception of Eritrea and 34 of the 54 countries have ratified instrument of ratification in their respective parliament that was first scheduled for July 2020, owing to COVID-19 distortions and rescheduled for January 2021.
AfCFTA targets to create market opportunities, scale economies, improve competition, lower business costs and aims to consolidate Africa into a USD 2.3 trillion market of 1.3 billion people.
From January 2021, tariffs on 90 percent of goods traded between AfCFTA state parties are to be reduced in equal annual installments until they are eliminated within 5 years for non- least developed countries (LDCs) and 10 years for LDCs, which Ethiopia is included.
So, a product facing a tariff of 25 percent being imported into a non-LDC would be tariffed at 20 percent from January 2021, then 15 percent from January 2022, with such reductions each year until it is traded duty-free by January 2026.
For an additional 7 percent of ‘sensitive’ goods, tariffs will fall within 10 years for non-LDCs and 13 years for LDCs. A final 3 percent of ‘excluded’ products are to retain their tariffs to allow flexibilities for state parties with particular sensitivities, but will be subject to a review every five years.
The AfCFTA also contains commitments on customs cooperation and mutual administrative assistance, trade facilitation, technical barriers to trade, sanitary and phytosanitary standards and trade transit.
These work ‘behind the scenes’ to simplify and harmonize trade procedures and logistics, expedite the process of importation, exportation and transit, and to harmonize and mutually recognize standards, and eliminate unnecessary barriers to trade.
State Parties will submit schedules of commitment for the liberalization of trade in services in the five priority sectors of professional and business services, tourism, transport service, communication services and financial services.
According to Jamie MacLeod, Trade Policy Fellow of the Africa Trade Policy Centre (ATPC) at the UN Economic Commission for Africa (ECA),Intra-African exports would increase the most for industrial products; with gains ranging between around 25 per cent (or USD 36.1 billion) and almost 30 per cent (or USd 43.3 billion) under low ambition scenario and high ambition scenario.
In his presentation on December 22, 2020, he said that largest increases in exports of vehicles and transport equipment, energy, metals, machinery, chemical products, sugar, other food products, wood and paper, and textiles.
“These are under-estimates, as they do not include the benefits from services liberalization: priority service sectors for liberalization are: financial services communication, transport, tourism and business services,” he said.
Prime Minister Abiy Ahmed also congratulated the countries on starting to trade within world’s largest free trade area. PM Abiy said “Congratulations to our continent for the beginning of trading under AfCTA. The new frontier for Africa is indeed regional integration, where minds are open to ideas and markets are open to trade. Trade defuses the most fraught relations & integrated markets generate prosperity.”
Secretary-General of the AfCFTA Secretariat Wamkele Mene said at the AfCFTA start of trading ceremony webinar that the day is historic. “Truly today is a historic day, a day in which we start officially trading under the preferences of the African continental free trade area. Today is a day we take Africa a step closer to a vision of an integrated continent, a vision of an integrated market on the African continent,” he said.
“This African continental Free Trade Area should not just be a trade Agreement; it should actually be an instrument for Africa’s development. In this regard, we have seen the World Bank produce a report that projects that by the year 2035, if we implement this Agreement effectively, we have the opportunity to lift out of poverty one hundred million Africans. And the majority of this hundred million Africans that will be lifted out of poverty, are women in trade. It will be the opportunity to close the gender income gap, and the opportunity for SMEs to access new markets,” he added.
“This Agreement does not benefit only the big corporations on the African continent, but it should always be inclusive of young Africans, women and African SMEs. Today, as Africans, we are witnessing the beginning of a new chapter in terms of trade and investment relations of the African continent.”
“I have to say, personally, as an African, I’m truly proud today because 54 countries have signed this Agreement, 34 have ratified it, over 40 have submitted their offers. This is a strong signal that Africa is ready to start trading today on the basis on new rules and preferences that will ensure that the African Market is integrated,” he added.
“Finally, I want you, Africans, to join me as we take this historic step to the vision of an integrated Africa, the Africa we want” he concluded.

PROTRACTRED MESS

Editorial

January 4, 2021

The demise of the prevailing world system is speeding up. Another cold war with a likelihood of going hot is now upon us. The underlying reasons, unsurprisingly, remain more or less the same, though pretexts vary. Essentially, they are resource wars as well as battles to secure profitable markets. Before slogging it out on the battlefield, be it in hot or cold wars, contenders continuously cajole to position themselves in the right spots. Disruption or wars break out when tailor made institutions that were put in place by incumbents fail to deliver desired results. It seems the world system has now entered this phase.
The post WWII accord that secured relative peace between East & West, a la MAD (Mutually Assured Destruction) was promptly dethroned after the demise of the USSR. The immediate aftermath resulted in the balkanization of East Europe, thanks to NATO and the systemic marginalization of Russia. On its part, Russia was willing to abandon its superpower trajectory/aspiration for a new and non-confrontational alignment with the West. But that proved difficult for various reasons. We will not go into the whys & hows of the failure of the intended project today, suffice is to say, Russia is now back on the world stage with its own relatively independent agenda. To students of history Russia’s current move was not entirely unexpected, given the condescending attitude of the triumphalist ‘Atlanticists’, north atlanticists, to be precise!
If current maneuvering is any indication, we believe the Shanghai Cooperation, which was essentially set up to secure peace, stability and good governance across Eurasia might well end up becoming more and more, like that of the Warsaw Pact. Except in this case the protagonists are not small European nations, but formidable emerging countries, like China, Iran, and Turkey. Right now and unlike NATO the Shanghai Cooperation is not organized to have a belligerent posture. But that can easily change if NATO continues to provoke all and sundry. From the look of things, the future will most likely favor the ascent of the massive Eurasian land mass. Be that as it may, the important question remains; how will the West deal with the changing global situation? Will its engagement be more constructive rather than confrontational, as it seems to be the case today? Can Europe and its fragile union re-engage Russia to make it a potential ally or will it continue to provoke Russia into war or war like scenarios following the blue prints of the Atlanticists? What will be the reaction of the rest of the world?
The Middle East & North Africa (MENA) where the West, particularly the US, has been quite aggressive (for a long time) in pursing its narrow interests, might not be smooth sailing going forward. The MENA youth, which is the large majority in many of the countries, has been showing signs that it might not be willing to become docile subject as desired by empire. In the prevailing and highly lopsided economic, political and cultural regime, the losers can only take it up to a point. From there on, what can potentially happen is anybody’s guess. In the absence of liberating ideologies that can be leveraged to address/redress the strangulating grievances (of the beast=human mass), which is perpetrated by entrenched interests, (inside & outside) the large portion of the youth has ventured into age old archaic strategies of identity politics. Sooner than later, we believe, this strategy will hit the wall and more sensible approaches to problem solving might present themselves, once again. Moreover and in the long run, such new trajectories might appeal to the currently hotheaded and testosterone driven youth! Ultimately, unless the gross inequity in MENA is addressed, the situation will remain more than volatile.
Even in the core countries of the system, situations can easily get out of hand. In the US we are already witnessing the excessive militarization of the police force. Surveillance is more than Orwellian and telling the truth has become a crime punishable by death, literally. The various instruments of the law are effectively muzzling whistleblowers. Peaceful activists can easily end up in the various dungeons of the CIA, located throughout the globe! On top of these, there are all kinds of laws being promulgated to usher the formal establishment of totalitarianism across the Western world. For instance, banks & corporations, the police, etc. are already out of control. As a result, resentment towards the .01% is high and spreading across the breadth and depth of the global human communities. Certainly, the global youth cannot be expected to take it all lying down! Unfortunately, what is currently lacking in all these is, yet again; forward looking all encompassing analysis and realistic projections that can appeal to all and sundry across the global human community. The prevailing world order, which has been leveraging identity politics throughout the centuries, mainly; structural racism, sexism, religious fundamentalism, etc. seem to have run out of pretexts to prolong its unsustainable & polarizing doctrine.
The Russian writer, who chronicled the atrocities of Stalin first hand, perceptively framed the prevailing system’s biggest failure, while celebrating the larger potentialities of humanity, which the prevailing system intentionally denies/excludes under various guises. “A society which is based on the letter of the law and never reaches any higher, is taking very scarce advantage of the high level of human possibilities.” Alexander Solzhenitsyn.” Good Day!

City chamber presents recommendations for draft proclamation

Local News

January 4, 2021

City chamber presents recommendations for draft proclamation

The Addis Ababa Chamber of Commerce and Sectoral Association has presented its written recommendation to be considered on the draft proclamation for the formation of Chamber of Commerce and Industry.
Two weeks ago, the Ministry of Trade and Industry issued the highly anticipated draft proclamation that would replace the controversial Chamber of Commerce and Sectoral Association Establishment no.341/2003.
On the recommendation with 11 pages, the city chamber has provided its opinion and input for about 30 articles of the draft proclamation that has 35 articles.
Meanwhile the draft proclamation was appreciated by stakeholders since its projected to alleviate challenges on the existed 18 years old proclamation; however they have also expressed their concern stating that the draft proclamation has not fully improved the 2003 law.
On its recommendation that reviewed starting from the preamble, the city chamber has provided massive insights that shall improve the under preparation proclamation.
It said that the proclamation should consider the establishment of independent associations with incorporation of democratic framework rather than radiate the formation of regional associations with the structure of national chamber.
It added that the draft opposes the federal structure and the bottom up grass root organizational structure.
It advised the establishment of chambers should be near for members and follow a two tires system.
The city chamber expressed its concern on the preamble of the draft proclamation and said the preamble indicated the economic policy of the country that is against the behavior of chambers that is supposed to be independent from any political ideologies.
“The preamble does not mention the role of chambers, which stand for the benefit of members,” It said.
The term stated at the preamble to expand the revenue of chambers has also been criticized by the document that was sent to the ministry. It said that the chambers main objective is providing service for the business community and gain resources on its service than working to expand its revenue like a profit oriented organ.
It recommended the proclamation to allow the formation of chambers at economic zones and industry parks that are the centre of massive economic activities.
It opposed points stated on the objective of the proclamation that said the creating of ethical and operates based on legal manner, credible, sound and enables to come up with optional policy recommendations.
It argued that the objective of chambers are working to expand commerce and industry in the country, disseminate information regarding trade and industry of the country and the world for its members, establish cooperation and share information with parallel foreign associations, represent members for their benefits at the government organs, and provide services on behalf of the government.
Regarding the establishment, the proposal ridiculed the draft proclamation that stated the formation of chambers will follow the government structure, “Which is unlike others experience and forget the role of businesses at urban areas, industry parks and economic zones that are the concentration area for economic activity,” it stated.
It also opposed the role of national chamber that formed by members but has higher role and power on members.
According to the proposal the membership is supposed to be free than the stated as mandatory on the draft proclamation. It said that it is against the constitutional right and international convention that the country adopts.
It also recommended the acknowledgement of the role of regional and city chambers to undertake massive operations like creating cooperation with international and local partners for the benefit of its members independently.
The draft proclamation gives the right for national chamber massive power to rule and guide regional chambers. According to the draft proclamation, regional chambers are set to go through under the guidance of the higher body to their activities – which were strongly opposed on the discussion held a week ago.
The city chamber has also recommended foreign investors to be allowed to be members at the board of directors since refusing them is illogical, while it advice the presidency and vice position to be protected for Ethiopians.
Further discussion is also expected to be held in the coming weeks. For instance it has been disclosed that on the draft proclamation regional chambers discussion would held on Monday, January 4, 2021.

The dilemma of false COVID test results

News

Metasebia Teshome

January 4, 2021

Results from Ethiopia rejected globally

Covid 19 test results taken locally which is highly characterized by false positive and false negative continues to be rejected globally as this presents high risks to other countries.
A “positive” test means a person is infected with coronavirus, and a “negative” test means they aren’t infected. As the health officers suggested no test is 100 percent accurate, there will always be some people who test positive when they do not have the disease or test negative when they do have it.
As passengers from Ethiopia to abroad say many countries reject test result from Ethiopia even if it is negative as it is selected countries with lack of accurate test. Many of the heath officers in Ethiopia complain that most of the test kits in the country are gain from china which lacks credibility in their operation.
Dr Markos, Feleke CEO of Washington Medical center also share the idea of no test is accurate, the most important thing to know about the impact of false positives is as he argues the test result depend on the originality of the test equipment’s, “in this case at Washington we use the latest test kit which has certified from the us food and medicine authority” says Markos, adding that Washington is the only one which has three gene detect test kit which is certified from the US Food and Drug Authority. Though there are people who still complain the test result as they get positive when tested at Washington and negative from other medical center.
Adamu Tayachew, National COVID 19 Laboratory Section Chief said even if the false test result occur it didn’t support the idea of originality, rather as he said the government check the quality of all test kits before getting in to the country, but added “though sometime such kind of mistakes could happen for other reasons, and on the other side countries sets different test results depending on laboratory test kits.”
Furthermore, Adamu said the inclusion of the development and implementation of external quality assessment schemes and internal quality systems, such as automatic blinded replication of a small number of tests for performance monitoring to ensure false-positive and false-negative rates remain low, and to permit withdrawal of a malfunctioning test at the earliest possibility provided by the government for the testing centers.
As result of the test incurrence Ethiopian Airlines ban its flight from Addis Ababa to Shanghai Pudong for five weeks, the ban continues until at least January 1st, 2021 as Chinese authorities agreed to an extension as more passengers have tested positive for COVID-19.
In March 2, 2020 the first infected people found in the country testing capacity and therefore the rate of testing in Ethiopia and worldwide has continued to rise, more and more asymptomatic individuals have undergone testing.
Though the number of daily tests jumped from 0 on march to 5000 people on average on December; Even if efforts has been made to decrease low test sensitivity, false negative continue to pose much Consequential threat and hold priority since they have the power to cause devastating spread since the propagation of the epidemic especially by asymptomatic or mildly symptomatic patients remains high.
But false negatives are not the only errors bedeviling coronavirus diagnostics. False positives, which incorrectly identify a healthy person as infected by the virus, can have serious consequences as well, especially in places where the virus is scarce.
False positives are generally very rare among tests that have been vetted but any test can be plagued by contamination, mishandling or technical glitches, leading a device to spot the coronavirus where it is not. Although false positives may seem relatively harmless in comparison with their false-negative.