The Ministry of Trade and Industry which is not happy about spending half a billion USD to import palm oil from Singapore and Malaysia are consulting with 11 large local edible oil producers about ways to use ‘crude’ palm oil instead.
W.A. Oil Factory and Distributor, Hamaresa Edible Oil SC. Co., Belayneh Kindie Import and Export, Kana Industry and Trading, and Addis Modjo Edible Oil Complex Share Company are among the selected companies currently carrying out studies on how to use the ‘crude’ palm oil. When the companies start to refine the ‘crude’ palm oil Ethiopia will save at least USD 80 million per year by not importing packed edible oil form abroad.
Pulses and oilseeds are the second and third most important crops in Ethiopia, both in terms of land use and production. Palm oil covers 96 percent of the total consumption while only four percent of it is covered by a few domestic manufactures with a low level of production capacity as well as other importers. Last fiscal year, Ethiopia imported 73,434 liters of palm oil according to the data from Minister of Trade and Industry. However, Ethiopia mainly relies on imported palm oil from countries like Indonesia, Malaysia and Singapore in order to satisfy its edible oil consumption.
Kasahun Mulat, Trade Regulation and Inspection Director at the Ministry of Trade and Industry told Capital that importing crude oil will begin after these companies finish their feasibility study.
“We can’t continue like this. For a country which has big economic challenges, spending half a billion USD to import palm oil is too much. We are telling the companies to study capacity, techniques and the fair price of refining edible oil. So after they deliver their study to us we will look at it and if it is fair for the market and the consumer we will allow them to import the crude oil.”
Kassahun added that the government will look to assist farmers in planting large pulse and oilseed plants on suitable land to reduce edible oil imports.
“Importing the edible oil is just a short term plan but in the long run we have to grow more oilseeds. Producing crude edible oil here is our big vision which will create more jobs for many people in addition to stabilizing the market for edible oil which is currently dependent on imports,” he said.
Currently five private companies are importing palm oil; AHFA PLC, Biftu Adugna Business S.C., Al-Sam International, Belayneh Kindie Import & Export (BKIE), and Hameressa Edible Oil S.C.
Palm oil is one of the world’s most commonly used vegetable oils, present in around half of frequently used food and consumer products; from snacks to cosmetics. Worldwide production of the oil has increased from 15 million tons in 1995 to 66 million tons in 2017.
Crude palm oil to be imported to save forex
Domestic worker agencies blocked accounts under suspicion
Confusion is being created among staff of the Ministry of Labor and Social Affairs (MoLSA) and banks after over 490 Domestic worker agencies presented USD 100,000 that was blocked from private companies to open offices and send Ethiopian workers to the Middle East.
A source close to the issue told Capital that the agencies presented blocked account letters totaling 1.4 billion birr to MoLSA, which allowed them to have open offices in Addis Ababa and other parts of the county.
“We talked to some of the agencies and they told us that banks are giving blocked account letters. However, the agencies don’t have the amount of money that is mentioned in the letter. The reason the banks are writing an over account letter is to allow domestic workers from the agencies to send their money by using the bank account when they start work abroad. But this is a crime and the government must look at it’’ the source said.
“The reason why the blocked account is needed is to give compensation to the domestic workers if a bad thing happens due to negligence by the agencies. If the agencies bring a false account figure, it is very hard to give compensation to the workers at a bad time. So getting the right blocked account is mandatory,” the source added.
Capital asked the license office at MoLSA about the problem. The office explained that so far they have not received any tangible evidence about fraudulent activity. They also said that Awash Bank asked MoLSA to get all the block account letters submitted to them to verify whether they are fake or not.
Currently over 100,000 job orders come from Saudi Arabia to hire Ethiopians as domestic workers, mainly housekeeping and caregiving. However, because the software in Ethiopia is incompatible with Saudi’s software to register and control domestic workers travel to Saudi still has not started.
According to proclamation 923/2016 direct domestic worker employment is only for staff where the employers is an Ethiopian mission or an international organization and where the job seeker acquires a job opportunity on their own accord in job positions other than house maid service.
Receiving countries should protect the life and the disability insurance coverage rights of domestic workers.
The proclamation requires domestic workers to have certificates proving that they have at least three months of training in their respective fields.
Asset’s of government officials to be posted online in three months
The Federal Ethics and Anti-Corruption Commission is in the final stages of revealing the top government officials assets through an online system that can be accessible to the public through an inquiry.
The commission will post the assets in three months.
The asset information includes the wealth of the Prime Minister, the ministers of different institutions, state ministers, directors, procurement staff and other selected officials.
The information will tell the requester the movable and fixed asset of the officials.
The system which has been developed by the Indian company, CSM for the last five years consumed USD 198,000.
Currently the commission has shown the wealth of the official in the manual requiring system which the requester must be physically present at the Commission Office to get the information.
So far more than 1,000 people have looked at publicized wealth information through the manual system. So far more than 160,000 government officials have registered their wealth in the commission data.
But the new system will cut the manual system and anyone in remote areas of the country can access the wealth of the officials online.
Mesfin Belyahne, Asset Registration and Disclosure Director at the Commission told Capital that some of the staff went to India to learn the system.
“The new system is not like Wikipedia that can get you quick access to a given information but rather it is platform that you get the information after you fill out forms.’’
“The reason we made an enquiry system is that some people may use the information for unnecessary things that can damage the privacy of the officials so to protect the officials we have asked people to confirm the reason they need the information, and where they work.”
According to Mesfin the system will not allow to copy and duplicate the files so as to protect the officials’ privacy.
The aim behind assets registration of high-ranking officials was to prevent corruption, embezzlement of public funds, and to establish a monitoring mechanism for public and the media. According to the law, the asset registration process of high ranking officials takes place in three stages; registration, publication and verification.
Moreover, it will integrate a system where a public can inform concerned bodies if a property owned by the officials is not registered in the system.
If the information obtained through whistleblowing leads to the confiscation of assets under article 419(2) of the Criminal Code, the whistle-blower shall be entitled to 25 percent of the proceeds of the confiscated asset.
Wegagen sees remittance increase, links with WorldRemit
Wegagen, one of Ethiopia’s oldest banks, announced it is taking in impressive remittance earnings and expanding money transfer partners. This comes at a time when transferring money from Diaspora has seen challenges.
Simret Tesfay, Remittance Division Manager at Wegagen, said that remittance revenue is more sustainable now.
“Like other financial firms, illegal actions have hindered remittance earnings, however we have been able to maintain high performance,” she said at a press conference held at Hilton Hotel on May 15 in relation to the Bank’s signing ceremony with World Remit, an emerging global digital money transfer company.
Simret says the black market has affected legal money transfer. “To be winner and continue to increase our revenue we have developed innovative approaches like using digital money transfer services with partnering companies including World Remit,” the Remittance Division Manager added.
Abay Mehari, President of Wegagen, who signed the partnership agreement on behalf of the Bank with World Remit, said that using digital money transfer is easier and more preferable than traditional methods because it can improve accessibility.
“Expanding branches and accessibility is crucial, in my opinion improving exports is vital to smash the parallel market which is flourishing and in growing demand,” the president explained.
The service of World Remit introduced eight years ago has become popular since one can transfer money from anywhere to a receiver in different ways. The receiver can get the money by bank account transfer, cash pickup and mobile money.
The options of World Remit such as being able to transfer to an account or mobile can keep receivers from unnecessary expenses or encourage saving money, according to Fikru Woldetensie, Marketing and Corporate Communication Manager of Wegagen.
He said that his company’s presence in some growing regions is significant and reaches every corner including refugees’ centers like South Sudanese in Gambella Region with a money transfer from their facility.
The digital platform that the global remittance actor introduced has several differences from the traditional transferring approach, according to Sharon Kinyanjui, Head of East and Central Africa of World Remit.
“In the traditional approach the Diaspora would have to go the bank or money transfer agents to send the money to family or others at home but with our method they can send the money via mobile money from anywhere. Our service has reduced the cost of sending money,” Kinyanjui.
“Traditional transferring companies could charge from ten to 12 percent of the transfer amount but in our case it is up to 2 percent only,” she said.
Elfagid Aregahegne, Head of Business Development and Operations World Remit in Ethiopia, said that Ethiopia has secured about USD 5 billion per year from remittance, which is from 25 to 30 percent of total transfer to the country. One of the reasons people prefer to send their money through informal remittance is the high cost of sending which his company has reduced significantly, according to Elfagid.
We have been working strongly in places like the Middle East and the Gulf to encourage Ethiopian Diaspora there to save their money at the bank using different options.
World Remit, which has been operating for the last two years in the country, launched its first mobile money service in Ethiopia in 2018.
According to Simret, Wegagen is using 10 partners in international money transfer. The bank, which is one of the top six profitable banks, has 1.2 million account holders and 338 branches.
