Wednesday, April 1, 2026
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Questionable land policy vexes investors

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Investors are asking the City Administration of Addis Ababa to restart leasing land faster. Since Takele Uma became mayor, land leasing has been suspended. According to sources about 3,000 individuals are registered asking for land to develop but most have not received a reply.
A notice the City Land Development and Management Bureau issued on October 14 indicated that they won’t take any more requests for land.
“We are not looking to get land through special treatment,” an investor said. They insist the city administration recommence the regular land lease.
Experts in the sector expressed their fear that stopping the land lease will open the sector to corruption. It is unclear why the city administration does not want to start the land lease but at the same time it facilitates plots for some few individuals through other deals.
“This is the implication of misuse of the public property,” the investors claimed.
Sources said that currently the city administration is busy returning lands to previous landlords or farmers’ children that were displaced from their plots.
One observer said that those who are receiving the lands are not really the owners or the families who own the plots. After they received the land they are engaged in transferring the plot as soon as possible.
At the same time some of the lands are provided to selected individuals for investment throughout the city including in the heart of Addis Ababa.
Capital has been trying to get clear information for two weeks from Tesfaye Lemma, head of the city lease office under the city Land Management and Development Bureau, about when the city will recommence the lease but he refused to give information.

Finance focus shifts to private sector

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Under part of the ‘Home Grown Economic Reform (HGER)’ program the government has changed the availability of finance for the private sector significantly from its previous focus on the public sector.
Under the three year HGER program first four months of the first year Ministry of Finance has announced that the loan that provided for the private sector has climbed to over 82 percent, which extraordinarily increased compared with the previous trend.
Eyob Tekalegn, State Minister of Finance (MoF) told the media that in the stated period of the HGER the private sector secures the maximum amount of the finance.
The HGER program that is being implemented in three pillars; macroeconomics, structural and sectoral reform has targets to show tangible change in the economic sector as gives more priority to the private sector.
In the past the government has given priority to the public sector at the expense of the private sector under different policy implementations.
The biggest bank, Commercial Bank of Ethiopia, the state owned bank, in its past year performance provided 129 billion birr in loans but private sector only secured 17.2 percent or 22.2 billion birr from the total loan disbursement.
According to Eyob, one of the key areas in the program is access to finance and the government has undertaken massive changes.
He indicated that due to the exemption on the 27 percent NBE bill banks have started reducing interest rate for borrowing.
“As part of our plan to rebalance the source of growth from public to private; access to finance has been a key area focus in the reform and for instance in the past four months of the budget year out of the total credit the private sector secured 82 .7 and the balance went for the public sector,” Eyob said.
“Compared with the same period of last year the amount of credit that went to the private sector increased by 44.3 percent which is a phenomenal increase,” he added.
In the macro financial areas of the reform the National Bank of Ethiopia (NBE) has achieved several changes and improvements according to Eyob who leads the reform that is undertaken by the committee chaired by the Prime Minister.
Macro financial stability, debt burden, inflation and forex shortages are the priorities that are changing under the changes in macro financial areas.
NBE is building its analytical capability to implement modern monetary policy and MoF is also working very hard to insure there is a prudent fiscal policy, according to the state minister and shows that NBE has lifted the 27 percent NBE bill that was imposed on private banks to buy the stated percentage amount of bond for their every loan approval and introduce weekly based treasury bill with market base.
“This is to start up modern monetary market that would be a strong road back to move into a holistic stock market and capital market. So the NBE is working on the related framework and human resources requirement to launch full-fledged stock market by 2020,” Eyob said.
Under the reform the government is also looking to tackle inflation. Over the last 10 years inflation has risen by an average of 15 percent. The problems will be associated with monetary policy expansion and international commodity prices, according to the State Minister.
“In that regard the macro reform shall have a significant impact on the change for the long term but in terms of short term inflationary challenges the key sources are productivity output and domestic trading regime and the government is working over the whole to make sure inflation subsides,” he added.
For the implementation of the program the government has stated that it required about USD 10 billion.
The State Minister said that several multilateral and bilateral partners responded positively to provide the resource. At least half of the resources would come from multilateral partners, the World Bank and International Monetary Fund (IMF) and bilateral and donors have decided to support the program.
He said that IMF’s support will amount to 700% compared with the nation’s quota. Following his announcement on Wednesday afternoon IMF issued a statement that in its latest meeting with government officials under the annual Article IV Consultation for Ethiopia the authorities’ request for a three-year USD 2.9 billion financing package that could be supported by the IMF under its Extended Credit Facility (ECF) and Extended Fund Facility (EFF).
“Discussions with the authorities continued after the mission,” a statement of the IMF staff team led by Sonali Jain-Chandra, who visited Addis Ababa from October 29 to November 8, added.
“The Ethiopian government and the IMF staff team reached a preliminary agreement, subject to approval by the Fund’s Executive Board, on policies that could constitute the basis for Ethiopia’s new program supported by the ECF and EFF arrangements. The overall objective of the program would be to support implementation of the authorities’ Homegrown Economic Reform Program,” the team explained on the statement.
The statement added that the fund-supported program would consist of five main pillars: (1) durably address the foreign exchange shortage and transition to a more flexible exchange rate regime; (2) strengthen oversight and management of state-owned enterprises to contain debt vulnerabilities; (3) strengthen domestic revenue mobilization and expenditure efficiency to create space for adequate poverty-reducing and essential infrastructure spending; (4) reform the financial sector to support private investment and modernize the monetary policy framework; and (5) strengthen the supervisory framework and financial safety nets.
Eyob said that in the coming couple of months massive foreign currency flow in the country through investment would be a solution for the foreign currency shortage.

DISSENT AS A SIGNAL

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Dissent usually signals polite reservation. It invokes the need for reflective analysis on important matters that seem to be neglected by the prevailing established discourse. Pronounced dissent is a peaceful, yet powerful supplication, to bring about caution to actions/activities that have lost or beginning to lose their ways. Its general ethos is to sternly warn the stagnated and overwhelmingly conventional status quo. It is a determined force of ideas challenging assumptions no longer valid. Even though dissent is essentially a disagreement, its decorum is to conduct frank discussion with a view to come up with a better understanding of things, with the hope of resolving them. At the end of the day, what rigid interlocutors seem to forget is; dissent is, by and large, a protracted argument based on seasoned reflections and pragmatically evolved considered opinions!
Why then is dissent so hated, especially by functionaries and politicos? Dissent is mostly reasonable and advocates for gradual change. Nonetheless, entrenched zombies of rigidly set up entities, like political parties, tend to have no respect for protracted and systemic criticism or dissent in short. For the most part, dissent doesn’t want to rock the boat abruptly and completely, so to speak. In fact, the motto of dissent is: ‘if it is not broken, don’ fix it’! Dramatic fissure or rupture on the account of dissent happens only after everything has failed. In such scenarios, it is always intransigent individuals who tend to play dominant roles in the unfolding altercations. Such approaches shut down rational discourse and opens up the blame game. Attacking the messenger and not the message is the way out for the usual simpletons. Simpletons, like idiotic party goons, assume, dissent will just go away if dissidents are eliminated from the scene. Herein lies one of the main problems of rigidly organized entities!
Rigidity is weakness. Rigidity is a fragile set up that will break down when confronted with the slightest challenging perturbation. As dissent within societal context continues to be ignored by the power that be, critical individuals/entities who have been advocating for gradual change will be forced to give up. Some dissidents will abandon all engagements, while others might gear up for resistance. At the same time, those who have no respect for dissent will continue to grind their axes. To such cretins, their targets are not the ideas behind dissent, but the dissidents themselves! They try to battle it out with the messengers rather than the message! Currently, concerned citizens of the world are trying their best to warn and enlighten the global status quo about its misguided ways. The various concoctions of the world system have become absolutely unsustainable and very polarizing for harmonious collective existence. See Smith’s articles next column. So far, the reaction from entrenched interests is to ignore dissent. Here is an interesting example of dissent and the studied reactions of entrenched interests.
The British Labor Party has come out with its new manifesto. The following is its conclusion. Britain has been under the strict regime of neoliberalism since the late 1970s. In fact, it was the vanguard neoliberal state in the west, along with the USA. Privatization, liberalization, deregulation, austerity, etc., became its obsession. In other words, all of the sheeple’s (human mass) interests were undermined consciously and systemically in favor of crony capitalism. After four decades of experimentation the jury is in with the verdict. As far as the British mass is concerned, the experience has been an unmitigated disaster. The privatized entities were stripped of their productive assets and were neglected to the detriment of public safety. The owners saddled the privatized enterprises with massive debts and promptly abandoned them. At the end of the day, the British state had to come back to the picture and inject a whole lot of capital to revive or at least maintain basic services that are needed by the public. The Labor party’s election platform is now, unashamedly; the nationalization of the rail system, energy, water, etc., etc. Those who have been dissenting for decades were ignored and are now classified as bogeymen trying to destroy Britain. While the parasitic elites who actually destroyed the public sector (of the economy) were let go, scot-free! Leading to this week’s general election, the parasites and their accomplices continue to demonize the Labor leader. What the narrow-minded elites don’t get is this; the British (majority) have already decided to go it alone, (against the interests of the oligarchy) as was indicated by their Brexit vote, which is essentially a vote against Brussels’ (EU) bureaucracy. See the articles on pages 38.
In Ethiopia, many critical observers (literally) begged the ruling party leadership to give some space to dissent and dissenters. Initially and as usual, the general dissent was very constructive and non-threatening. However, those whose understanding of societal complexity was shallow were determined to have it only their way. All reflections coming from outside were regarded as existential threat to the status quo. We admit, the vanguard party within the EPRDF coalition had to endure a major split that left it intellectually barren and morally bankrupt. These shortcomings became very pronounced after the death of its leader, Meles Zenawi. After his passing, it was mostly crooks and goons that took over the task of political governance across the country. Bringing back morality, probity, decency and intellectual vigor became an uphill battle within the ruling party. Result: a Mafiosi State. Party connected oligarchs stole and monopolized the crown jewels of the modern economy. The bureaucracy became an entity whose main purpose was to cater for the criminally inclined, at the expense of the interests of the large majority of the people. Civil society organizations were disallowed to operate according to their public prerogatives. The peasants, Ethiopia’s majority, were put in the shackles of destructive ethnicism. As dissent became a crime, dissidents were promptly classified as criminals. The rest; as they say, is history! Maybe the elders of EPRDF foolishly believed the teaching of the following vile: “How lucky it is for rulers that men cannot think.” Adolf Hitler. Good Day!

Tendaho stops making sugar

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Tendaho Sugar Factory has cut its sugar production. As Weyo Roba, CEO of the Ethiopian Sugar Corporation, told Capital, the factory failed to produce sugar because of deterioration and shortage of sugarcane and drought in the area which began in 2008 EC.
The factory is located 670 km from Addis Ababa in Afar region. It is 300km from the Port of Djibouti. There are 41,176hct of total cultivation land, 22,835hct of land is irrigated and 17,683hct of land is covered with sugarcane.
According to Weyo, the factory is the process of leasing 5,000 hectares of farmland within its territory to cultivate wheat. It is mainly aimed at protecting productive land from weeds, and will also play a significant role in sustaining the market.
As Weyo stated, beside the cultivation of sugarcane, the violence in the area and disputes among people have contributed to failed production.
In order to help the local community benefit from development, the factory is in the processes of giving away 6,000 hectares of its sugarcane farming land to the residents. This land is 76km from the factory, however we are expecting the regional government to give us alternative land near the factory, said Weyo.
As usual the corporation will transfer the machines and its employees to other sugar factories until the factory starts operating.
The factory may start its production within the next two years if the cropped sugarcane ripens.
The factory`s construction began in 2005/2006. It was built by the Indian OIA (Overseas Infrastructure Alliance) company. The first phase of the factory began trial production in 2014. Within full production capacity it was expected to produce 13,000 tons of sugarcane per day and is expected to produce about 300,000 tons of sugar a year and generate 60 megawatts of electricity to produce 27 million liters of ethanol. In 2017 The Public Enterprises Affairs Standing Committee of the House of People’s Representatives (HPR) came to visit and urged management to start the factory.
Ethiopia has a favorable climate for sugar cane development. Ethiopia has 1.4 million hectares of land favorable to sugar production 1,620 quintals of sugarcane per hectare every 15 months. Annual sugar demand per individual is estimated at 10 kg and current supply per individual stands at 7 kg while the country imports up to 200,000 tons of sugar per year.
Currently there are seven sugar factories operating in the country. The government is in processes of privatizing sugar factories starting from 2020. Tendaho is expected to be one of the six sugar factories the government has planned to privatize in the first quarter of 2020.