A logistics conference organized by the Ethiopian Logistics Community of Practice (ELCoP), Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA), Ethiopian Maritime Affairs Authority (EMAA), WFP, and Ethiopian Logistics and Supply Chain Management Professionals Association, gathered stakeholders from Ethiopia, Djibouti and around the globe.
Papers were presented evaluating the current logistics situation mostly in Djibouti. One entitled: ‘city logistics and its performance challenges’ compared Addis Ababa with other cities’ logistical experiences.
After the paper presentation, participants divided into three groups to explore: how to improve railway systems, challenges in import, export and city logistics.
Mekonnen Abera, Director General at EMAA, told Capital that these types of events are crucial to look at a wide variety of views. According to Mekonnen, they want to get as much feedback as possible to improve logistics. 
The logistics guru said concerns arising at the conference will be sorted and tabled at the council established to guide the logistics sector. Under the recommendation of national logistics strategy, the country also formed the Logistics Transformation Office, which organizes the sector.
“This is the first conference for ELCoP that mainly targets to meet stakeholders at the same platform,” Elizabeth Getahun, President of ELCoP and EFFSAA, told Capital.
She said this is the way to solve problems. “ELCoP was formed last year with the aim of solving issues faced by many in the logistics sector. The conference has given a chance to gather challenges which will then be incorporated into the logistics strategy and solved,” Elizabeth added.
Ethiopia is one of the least performing countries in the logistics sector with a rank of 131 from 160 counties according to the World Bank Logistics Ranking.
The poor performance in the logistics sector is also one of the factors in the country’s poor ranking in doing business.
About a year ago, the country decided to open up the sector to foreign investors. Previously, the logistics sector was only allowed for Ethiopians or the diaspora. The government now permits foreign investors to hold up to 49 percent in the logistics business. Now companies like CMA CGM and Bollore Logistics, two dominant players in the logistics sector have signed deals with local firms to operate in the country.
Mekonnen said that opening up the sector in the process has been tabled in the national logistics strategy that concluded in 2015, but it was not applied. “Opening the sector in different stages and process may give a chance for the country to improve its performance and learn from other’s experiences,” he told Capital.
He said that foreign companies are expanding or starting business in the country.
Logistics professionals gather to improve sector
Alliance formed to address clean cooking
The Netherland development organization (SNV), more than 15 NGO’s, and over 600 private enterprises along with government agencies overseeing health, women and children joined hands to get more people to use clean stoves. As part of the governments attempted to become a carbon neutral country effort are underway to disseminate millions of energy stoves and replace the use of charcoal and other traditional fuels used by 85 percent of Ethiopia’s population.
The project is supported by the Netherland government as part of realizing sustainable development goals (SDG’s). Ten out of 17 of these goals are indirectly connected with clean cooking.
One of the goals of the project is to improve cooking stoves, biogas and bio-fuel.
It also will work to develop public-private partnerships and make it easier for poor families to benefit from cleaner fuel. Some of these benefits include better health by reducing pollution, more forests and reducing the effects of climate change.
“The climate resilient green economy and the improved cook stove investment plan that are aligned with this project and emphasize the cross cutting nature of the clean cooking issue mainly in relation to health, gender and education which assures the importance of coordination among different subsectors for better impact, increased communication and knowledge sharing”, said Worku Behonegne, Country Director, SNV Ethiopia.
The director also said strengthening stakeholder engagement is an important, challenging and possible task.
The clean cooking sector involves various players from the government and non-government portfolio including private actors.
“In addition, clean cooking isn’t only technology promotion but also setting standards, ensuring quality, developing the private sector, building the capacity of stakeholders, and providing after sales service” Worku adds.
According to some figures, 40 percent of Ethiopians walk for more than 2 hours to fetch fire wood and 85 percent still use solid bio gas. While 65 percent are dying as result of indoor air pollution.
Global studies show that malaria, tuberculoses, HIV combined cause fewer deaths than household pollution (mostly smoke) does.
“Private sector involvement with government is critical for the endeavor in addressing clean cooking and it’s important for the Dutch government to engage in PPP for financial support.”
Executed in five countries to support the national alliance, the Netherlands Enterprise Agency (RVO) of the Dutch Government has developed the project as an effort to support the realization of SDG’s.
“Clean cooking is not something wishful, but it’s also achievable said the secretary of the alliance bord.”
Creative youth shine at African Innovation Week
The first African Innovation Week took place in Addis Ababa from October 28-November 2, 2019, attracting innovators from around the globe.
“The innovation week is in line with the African Union’s flagship project, Agenda 2063 as it creates new value chains, unique markets, addresses the question of youth unemployment, and attracts more investors,” Professor Sarah Anyang Agbor, Commissioner for Human Resources, Science and Technology said conveying a message for Moussa Faki Mahamat, African Union Commission Chairperson.
The event showcased innovative ideas which can make a significant impact on the lives of hundreds of millions of Africans and create many jobs.
More than 200 hundred young African startups from Nigeria, Togo, Uganda, Kenya and Ethiopia pitched their projects throughout the six-day event. Of these, 50 finalists won 1,000 USD and the top 5 prize winners were awarded 5,000 USD each.
The Ministry of Innovation and Technology, African Union Commission, Oslo International Hub and Independent Business Accelerators (IBA) Ethiopia Center for Innovation organized African Innovation Week.
There were many themes to the event, including women’s innovation and entrepreneurs, agri-tech, smart cities, circular energy, tourism–tech hospitality, and trade and investment.
As part of a side line event, a fashion show dubbed Textile and Leather Innovation took place at the residence of Norway’s Ambassador to Ethiopia, Her Excellency, Merete Lundemo.
Prior to the runway show, panelists briefly discussed challenges and opportunities in the fashion industry and how to network with groundbreaking African designers and the rest of the world.
Diplomats, celebrities and government officials including the Minister of Innovation and Technology, Getahun Mekuria were among the guests.
Minister Getahun said the week gave African youth a chance to create jobs and make a difference in consumer’s lives.
Economic growth modest throughout Africa: IMF
The International Monetary Fund’s (IMF) regional economic outlooks predicts modest economic growth of around 3.2 percent, in most sub-Sahara African countries during 2019.
The IMF writes that growth remains too low to meet the needs of growing populations.
IMF division chief, Papa N’ Diaye, and Catrine Purfield, Deputy Director of IMF rolled out the bi-annual report on Thursday October 31 at the United Nations Economic Commission of Africa (UNCEA).
Security issues are hampering domestic growth. IMF previously recommended reforms to attract foreign direct investment which requires that people feel safe.
Growth in sub-Saharan Africa is projected to remain at 3.2 percent in 2019 and rise to 3.6 percent in 2020. This is a slower recovery than expected for around two-thirds of the countries in the region, partly due to a challenging external environment.
Growth is projected to remain strong in non-resource-intensive countries, averaging about 6 percent. As a result, 24 countries, home to about 500 million people, will see their per capita income rise faster than the rest of the world. In contrast, growth is expected to move in slow gear in resource-intensive countries (2.5 percent). Hence, 21 countries are projected to have per capita growth lower than the world’s average. Reducing risks and promoting sustained and inclusive growth across all countries in the region requires carefully calibrating the near-term policy mix, building resilience, and raising medium-term growth.
Growth is forecast to be slower than previously envisaged for about two-thirds of the countries in the region. The downward revision reflects a more challenging external environment, continued output disruptions in oil-exporting countries, and weaker-than-anticipated growth in South Africa.
Growth prospects vary considerably across countries in the region in 2019 and beyond.
Sub-Saharan economic activity needs to pick-up, but at a slower pace. However, more job creation is needed in order to absorb new entrants which are more than 20 million labor markets every year.
According to the report, advance economic diversification, increasing medium-term growth, promoting private sector investment, comprehensively tackling tariffs and non-tariff barriers in the context of the AfCFTA, enhancing competition and developing value chains.
Domestic debts negatively impact private sector activity and the delivery of social services while increasing banking sector vulnerabilities and undermining citizens’ trust in the government. Unpaid debts also weaken the ability of fiscal policy to support growth, casting doubt on the merit of relying on debt financing to avoid spending cuts.
Debt reduction, (verification, prioritization, liquidation) and to preventing accumulation, through public financial management reforms, building buffers, and timely external supports is recommended, although policy recommendations are country specific.
