Tuesday, September 22, 2026
Home Blog Page 3975

New business plans to increase purchasing power

0

A new initiative, New Life for Civil Servants (NLCS) planning to tackle artificial price hikes and inflation is in the process of coming to fruition after eight years of awareness creation in the society.
NLCS, which formed and was registered at Ministry of Trade and Industry immediately after the removal of the 2011 government price cap plans on including the majority of civil servants and other employees as owners in the market oriented business organ and to supply products at a reasonable profit margin to the general public.
Abel Hailemariam, leader of the initiative said that the lifting of the price caps that were only able to run for five months was the reason for the formation of initiative.
“When the government imposed a price cap for some major consumer products the general public was very happy so it was expected to be continued. However, it is was difficult for the government to do that in the current world order and market economy,” Abel said. He pointed out that the bad side of the price cap was the price hike in the market which occurred immediately after the government lifted the scheme.
“I believe that the government could not control the price or protect the rate; either the private sector or the general public must be involved in the price stabilization,” he explained.
“Due to that I decided to form the initiative that the society who depends on salaries is involved in,” he added.
For the last eight years the 11 founders, focused on awareness creation in different government and private offices.
According to the plan the initiative, which is a profitable business entity, will include all salary based groups of the society which is estimated to be over five million under the government and private structure.
NLCS has targeted 7,000 birr as a minimum share sell and 25,000 birr for the maximum.
“The civil servants or other workers at the private sector and public enterprises would not buy shares more than the stated amount,” Abel said.
He also stated that based on the current reality the minimum investment, which is seven thousand birr, would be hard for most Ethiopian workers to afford. “Based on our plan financial institutions will pay for the civil servants or other workers by collecting 100 birr from their salary, every month for six years,” he elaborated.
“Before we begin collecting the money we have spoken with several public institutions from the higher level to the kebele and explained the idea in Addis Ababa and it has been approved of by the public. For instance, labour unions at Ethiopian Airlines and Commercial Bank of Ethiopia have decided to invest on behalf of their members, while Africa Insurance has promised to buy the 25,000 birr share for each of its staff. At the same time local and foreign financial firms are expected to provide the finance for workers by their wage guarantee.”
“We expect the government to back the scheme by facilitating suitable policy conditions, like providing a guarantee to access finance from abroad; and facilities like stores or shops in different areas; otherwise we do not need any support from the government,” one of the founders said.
He said that they have already talked to financers from abroad to who are interested to provide finance with almost zero interest but it needs government approval.
According to the plan the initiative would begin operating in Addis Ababa, which is the major hub for civil servants and other workers, while the share will be sold in every corner of the country under their structure.
NLCS will also supply products from local and international sources and distribute the product to retail shops that will be formed for this purpose in every kebele.
“Based on our plan up to five retail shops that sell our products will be formed by youth, and women and at the same time it will create jobs,” Abel explained.
According to Abel, currently there are consumers associations at the kebele level but they will not meet the expected target because the supply does not meet the demand or products are supplied based on government subsidy but illegally smuggled to traders. “Unlike the association we will supply ample products that shall stabilize the market and tackle corruption,” Abel said.
“NLCS will collect a large amount of capital that will meet the demand,” he added.
He said that they have evaluated the failure of Alle, the wholesaler public enterprise that had the goal of stabilizing the market. “The major challenge for Alle was lack of finance, a long decision making process and working in the wholesale business as opposed to its plan to retail commodities,” he said. “Due to the stated reasons the enterprises could not win its target but in our case we will have huge capital and directly distribute to retail shops that are registered under the scheme,” he explained.
Currently employees would not push their employers to get more income but they can win the traders, because of that they should organize and form their strong market institution that would also help the traders to sell products at a reasonable price, according to experts. Due to that such kind of market would ease the life of the general public.
According to the assessment about 1.5 million residents in Addis Ababa registered for the payroll, while Ethiopia has about 3.1 million civil servants and there are hundreds of thousands of security and public enterprise workers.

Investors ask to shed light on solar project

0

Investors are complaining about the bidding process of the first public private partnership (PPP), independent power purchase (IPP) for two solar power projects.
On Friday, September 6, when bidding opened, only one company produced a financial proposal for the two solar power projects.
Sources told Capital that during the financial opening held, a proposal from Acwa Power, a Saudi firm, was the only contender. Details were not accessible since the company and the committee only attended the event.
In the PPP auction process the Public-Private Partnerships Directorate-General (PPP-DG) for the Ministry of Finance (MoF) invited the private sector to participate in the Scaling Solar project of Dicheto and Gaad.
PPP-DG has identified 12 bidders, to compete for developing 250 MW of new solar capacity under the first round of the Scaling Solar program, by requesting a pre-qualification. From the 12 companies five were shortlisted and invited in the bid process that was opened on August 15 for a technical and commercial evaluation.
The five companies that passed the financial stage were EDF/Masdar Consortium, Enel Green Power, Al-Nowais/ Aldwych/ Alten Consortium, Acwa Power and FRV/ Globeleq/Belayab Consortium. However, only one company, Acwa Power, made it to the final result.
Sources stated that initially the project was backed by the International Finance Corporation (IFC), the World Bank private sector wing, which attracted several prominent firms.
“Initially Scaling Solar is the IFC scheme implemented in other African countries. Based on the agreement with MoF, the Ethiopian scaling program was also developed via the concept, procedure and support of IFC,” the source said.
IFC also agreed to provide the finance at an attractive interest rate to realize the project which made bidders more confident.
They also provided the models of the power purchase agreement, implementation agreement and other instruments for execution of the project. Under the model the Ethiopian government also agreed to provide a convertibility guarantee, which is a guarantee that the government gives for the settlement of the loan.
As per the agreement on the modeling the bid has been floated, but in the middle, the Ethiopian government via National Bank of Ethiopia (NBE) announced that it would not give the convertibility guarantee.
Following the decision of NBE, IFC has pulled out from the project.
“On the other hand, IFC pulled out from the project before two weeks of the bid opening which narrowed the time for companies to find alternative financers,” the source said.
Even though four of the five companies mentioned IFC’s financial terms, Acwa Power has come up with its own equity financing. Based on their financial terms MoF disqualified the others from the financial proposal part of the bid, according to sources.
Bidders that Capital talked to said that universally such kind of financers provide the credit based on their own condition. “Even after the loan was approved and the agreement is signed, it will be available in different conditions, process and based on the progress of the project. This means the finance will be released in a manner even after the agreement is sealed,” the bidders argued.
“On the other hand, the bidders did not get ample time to assess optional financers in connection with the pulling out of IFC from the scheme because it happened two weeks before the bid submission timeframe,” a bidder complained.
The Friday financial opening is the feed in tariff that the developers offer the selling rate of the power for the government.
Teshome Tafesse, State Minister of Finance, told Capital that the bid process will be disclosed after the evaluation. “It could be difficult to give any information in this stage, we will elaborate the issue by next week,” he said.
The projects sites located at Afar and Somali regions are expected to generate 125MW each and estimated to cost USD 150 million each.

CIVIL REBELLION

0

We have been consistently arguing about the urgent need of tackling the wanton destruction of our planet’s resources and ecosystem. Up until ten years ago, we thought some robust and thoughtful initiatives might finally come to the fore to address the dire situation. In all these years, the global status quo, including the states, fell to deliver even the minimum of what was required of them. In hindsight, we can say their approach was never sincere nor driven. By and large, all the global gatherings; summits, etc. were cynically intended to pacify the sheeple’s militancy that was and still is brewing all over the world!
The COP initiative of the UN is one such gimmick. COP (Conference of Parties) is a kind of shorthand for the United Nations Framework Convention on Climate Change (UNFCC). The IPCC (Intergovernmental Panel on Climate Change) is its scientific arm. Even the IPCC, which is mainly composed of scientists, is/was never free to publish its scientific findings uncensored, i.e., without the heavy editorial hand of the politicos. IPCC is, in effect, under the direct diktat of the all-powerful ‘deep state’! Going back a decade, we surmise COP 15 in Copenhagen (2009) was the watershed for the global ‘climate change’ movement. At the time, the African Voice was considered to be the last critical weight that could potentially turn things around. Some even thought, given the gravity of the matter, COP 15 could finally deliver a clear binding agreement on climate change to the world system. Our late prime minister, Meles Zenawi, represented the united African voice. Unfortunately, the global power that be, hoodwinked the African leaders by promising plenty of money, pronto!
The figure that was thrown around was in the hundreds of billions. To this end, a fund was set up to immediately disburse the ‘pie in the sky’ money intended to alleviate and mitigate climate change, mostly in the poorer/southern regions of the world. Again, our Prime Minister was made a member of this high level commission. Many, including this column, argued that African leaders, particularly their spokesperson, Meles Zenawi, should boycott the COP 15 Summit, unless there was a consensus to come up with a solid binding agreement in the shortest possible time without any loophole to wiggle out of the agreed timeframe. We hollered from our seats; humanity had wasted plenty of time procrastinating and should now move to vigorous actions! We even suggested a song to Meles to hum and sing, as he walks away from the Summit to join the ‘people’s summit’ on the streets of Copenhagen. ‘Get up stand up, don’t give up the fight…’ (Bob Marley)!
Result of COP 15: No substantive money was offered by the power that be. Moreover, the relatively strong African coalition (of the states) was frustrated and soon fragmented. The disillusioned sheeple was systemically encouraged to lose interest on climate change, etc. Paid science, compliment of big oil, big chem, big pharma, big ag, big auto, etc. started to air so-called ‘alternative views’ to plant doubts and discourage actions by the majority of the global people, etc., etc. Since then/COP 15, our column has been sincerely and unflinchingly advocating for a global civil disobedience to fight the good fight. A decade later, our call finally seemed to have found receptive ears. We are now witnessing the emergence of a coordinated global civil society movement that is giving some hope to concerned humanity, particularly in the likes of ‘Extinction Rebellion’! In the process of this peaceful struggle we have been conducting via our scribbles, we have learned one simple but profoundly unsettling fact. That is; not all people are for life or prolife. There are a non-negligible number of people in the world who do not have an iota of concern about life and life support systems. These are people who live in their own universe of evil. Ponerology, the study of evil, which is now getting serious recognition, despite the protestation of evil worshippers and practitioners in academia, psychiatry, politics, business, banking, entertainment, sports, etc. has started to teach us a whole lot about the nature and manifestation of evil!
Civil society’s rebellion is what we call ‘civil disobedience’. Its core principle is peaceful struggle. Peaceful resistance, a la Gandhi, is what can galvanize the conscience of global humanity. After all, violence is the weapon of the state and affiliated institutions, which are, not surprisingly, at the forefront of resource exploitation and ecosystem destruction, hence climate change. Our message; Be vigilant and always very wary’; it helps not to succumb to the tricks of entrenched interests (remember COP 15)! The ‘deep state’ and its tentacles will use all weapons at their disposal to frustrate the ascending global movements, such as Extinction Rebellion. Laws are and continue to be promulgated to discourage citizens’ participations. Provocations, which are the bread and butter of the deep state, will be utilized in full. Surveillance, electronics and otherwise, will become more intense, etc. etc. At the same time, intellectual activists do not have much choice, but to deconstruct the various narratives of the status quo, which of course are the epitome of insanity! See the articles next column and on page 56. Extinction Rebellion is planning an ‘October Revolution’ of its own, to be held across the planet.
‘We are facing an unprecedented global emergency. Life on Earth is in crisis: scientists agree we have entered a period of abrupt climate breakdown, and we are in the midst of a mass extinction of our own making. The science is clear: It is understood that we are facing an unprecedented global emergency. We are in a life or death situation of our own making. We must act now.’ Extinction Rebellion. Good Day!

CBE opens interest free branch

0

The Commercial Bank of Ethiopia (CBE) has opened its first dedicated interest free banking branch around Bole Michael. The branch which is named “Bilal” was officially inaugurated by Bacha Gini, President of CBE and Sahria advisory board of CBE.
The opening of the branch is result in the recent directives of the National Bank to offer a dedicated interest free banking service in order to meet the demands of Muslim communities and broadening the base of non-banking societies.
CBE has been offering interest free banking in window based service in more than 1,330 branches throughout the country.