Lawyers are concerned about the quick implementation of the arbitration law despite its big role in motivating foreign investment by increasing the confidence of investors, importers & exporters because it encourages them to deliver quality products.
Daneil Kebkab commercial lawyer applauds the ratification.
“It really benefits the country as it attracts more investment by increasing investors’ confidence However, lack of skilled manpower, experience and resources delayed implementing the law.
Ethiopia’s engagement has improved quality of products and increased competitiveness.
According to the expert, currently many senior lawyers are appointed as arbitrators with no formal training in the field which hurts Ethiopian businesspeople.
The current trend in case of arbitration institution is linked to Addis Ababa Chamber of Commerce that strives to provide a forum for those who prefer institutional arbitration although there have been a few instances where an arbitration clause is stipulated in a contract but has not been fully relied on by the parties to the dispute.
For Daniel, a dispute resolution mechanism should take into account not only local needs but the needs and aspirations of foreign investors as well as regional integration and standards.
The success of arbitration is a function of several components such as an enabling legal framework, qualified and dependable human resources and the institutional support needed to make it functional.
“Regrettably, Ethiopia does not currently have any of those components for the effective utilization of arbitration or other forms of alternative dispute resolution. Disputes are inevitable and the State has an obligation to provide an efficient and credible forum for dispute resolution while lawyers have professional obligations in helping their clients to choose the most appropriate means of resolving differences,” said Tewodros Mihretu, another lawyer in the field states favorably tend to recognize arbitral awards rendered in other countries with the objective of avoiding continued harassment against the defendant, waste of time, money and effort and with the view to promoting international investment and trade.
“The ratification of arbitrary law in this regards, may sideline those business people who engaged in mixing up low quality products out of the market and encourage better business,” Daniel adds.
The bill already has been tabled to the parliament for ratification after by the Council of Ministers approved it last week.
Lawyers want time before arbitration rules change
Passport slowdown means more corruption
The long wait for renewing passports has opened room for brokers, dealers and government employees to take bribes in order to speed up the process of getting a passport.
People are being asked to pay up to 50,000 birr as a bribe for a new passport. Normally a passport costs 600 birr.
According to Capital sources, the case is more serious for individuals who want to renew their passport for business. They will be asked for up to 100,000 birr by the dealers who have contact with the agency employees and will get their passport renewed within five days.
Wendowessen (his name is changed for privacy) is a business man who has license in the import and export business and frequently travels to China and Dubai, Waiting for more than five months puts him out of the game, so he chooses to go beyond the curtain to get his passport renewed.
“The agency has no alternate procedures for business people who are engaged in import and export which encourages people to break the law,” said a Capital source.
Under normal circumstance, it takes two months to get a new passport through normal procedures, which costs 600 Birr for 32 pages and 900 Birr for a 64-page passport. However, applicants can get their passport expedited to between three and five days after paying 2,186 birr.
For individuals who need to go abroad for medical purposes, they should get a document from the medical board to get the service.
Though there is less magnitude, the long waits are also observed in Adama, Semera, Dire Dawa, Jigjiga, Hawassa, Jimma, Dessie, Bahir Dar and Mekelle,
“The agency is trying to alleviate the existing problems still we are importing passports and the shortage of hard currency complicates the problem,” said Desalegn Teressa, Communication Director.
The Agency, was issuing an average of 2,000 passports daily. Previously, any individual with a kebele identification card and birth certificate can obtain a passport from the agency, as long as they present documents from the government institution as a letter of recommendation, Individuals with medical case, for individuals who have active visa, and for individuals who engage in import-export trade. It will not take more than a week.
Enterprise to add 150 trucks
The Ethiopian Shipping and Logistics Services Enterprise (ESLSE) opened an international bid for the procurement of trucks. Documents for the procurement of 150 brand new heavy duty trucks to improve its service and replace the old ones were submitted.
According to Wondimu Denbu, deputy CEO of the Enterprise for Corporate Service the enterprise finalized the technical evaluation last Tuesday December 17, 2019.
The procurement will be financed by loans from the Commercial Bank of Ethiopia and 30 percent will be financed by the Enterprise itself.
As Roba Megersa, CEO of ESLSE said, 14 companies participated in the bid, including the local firm; Mesfin Industrial Engineering plc.
The bid was expected to be opened last September, but it was postponed to October 20, in connection with bidders who wanted further clarification about axle loads and to get clarification from Ethiopian Roads Authority (ERA) and Ministry of Transport. The enterprise aimed to import 4 axle load capacity trucks which is not allowed in the country. “We are going to import tri axle trucks,” said Roba, which were allowed by the two governmental bodies based on the agreement that Ethiopia signed under COMESA and other treaties the four axle truck is not allowed to be driven on the street to protect the road from over loading.
Currently ESLSE has about 440 trucks, 215 Renault trucks were purchased about four years ago.
ESLSE wants to get rid of 123 trucks that are not suitable for its import export operation. According to the deputy CEO, the enterprise is waiting for the board’s decision to remove these trucks in the coming 15 days. Beside these 123 trucks, the enterprise has awarded bid winners for other 36 old Mack Trucks.
ESLSE is also leasing trucks from private transporters besides using its own. Ethio – Djibouti is one of the most expensive corridors in the world. There are many logistical problems. “The trucks are very old, after one trip to Djibouti they have to go to maintenance,” said Roba, This is also because of the road infrastructure. According to Roba, Ethiopia needs about 600 trucks for daily transportation of containers however, we only have the capacity of half that number. The 750km railway connecting Addis Ababa with the port in Djibouti launched last year and can cut a three-day journey down to 12 hours.
In the past budget year ESLSE, earned 1.7 billion birr. The enterprise is one of the mega public enterprises scheduled in the latest privatization process through partial sales.
City Administration
The Addis Ababa City Administration in collaboration with MIDROC Ethiopia launched a cooking oil processing factory on December 28, 2019. The factory is said to have a capacity of producing 600,000 liters of edible oil per day. (Picture: Addis Ababa City Government)
