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Over 300 companies attend Djibouti Trade Fair

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The 2nd International Djibouti Trade Fair attracted over 310 companies across five continents including Ethiopia to Djibouti.
The fair was first held last year during the 111th anniversary of Chamber of Commerce of Djibouti (CCD), and this year’s grew considerably.
The ten day event primarily brought in potential trading partners, investors and new entrants into the region and the continent. It opened on Monday December 3 at Palais du Peuple (the public conference center) located at the heart of the capital and is expected to be closed by tomorrow.
The event was opened by President Ismail Omar Guelleh. The president said that these types of events bring good opportunities for the country to expand investments. He added that the fair aims to boost the country’s economy and get the private sector involved. This includes bringing foreign direct investment in the country, which is one of the fast growing economies in the east African region and one featuring massive service and infrastructure developments.
Guelleh said his government is committed to creating a conducive environment for regional and global cooperation.
He said that his government has taken several measures including improving the policy framework, establishing free trade zones, and port developments.
Youssouf Moussa Dawaleh, President of CCD, told journalists from Ethiopia who attended the event that compared to the previous year, the number of companies who exhibited their products and services has increased by 110. He said that a year ago there were 200 participants. The current year’s event that is expected to be visited by 16,000 Djiboutians has registered significant increases not only in the number of exhibitors but types of companies.
This year most of the participants are from Japan, Italy, China and also Ethiopia so the event has been more diverse.
Djibouti-France, Djibouti-Ethiopia and Djibouti-Japan friendship days were officially launched during the trade fair, from December 4 to 6. The CCD president told Ethiopian media members a day before the opening of the fair that such events are undertaken to strengthen our relations with the various countries and that next year’s fair would include friendship days of Djibouti-China, Djibouti-Egypt and Djibouti-Turkey.
Ethiopian businesses engaged in manufacturing, agro-processing, engineering and logistics are among the participants. They said that the fair has created a good opportunity to expand their business in the neighboring state, which is the main sea outlet for Ethiopia. Last year Ethiopian companies had not attended the fair at Djibouti, which mainly imports its agricultural products from Ethiopia.
At the time Ethiopian companies claimed that the rate for booth lease was expensive, according to Shamebo Fitamo, the outgoing Ethiopian Ambassador in Djibouti. He said that for this year his embassy in collaboration with CCD facilitated an affordable price for Ethiopian participants. In addition businesses owned by Ethiopians but based in Djibouti have been promoting their products which are mostly imported from Ethiopia.
Dawaleh said that this year’s event unlike last year focused on the fair. A year ago the event that CCD organized has included a forum that raised various topics including regional economic integration besides the fair. “We want to give equal attention for both events and due to that we have decided to undertake the forum separately,” he said. The CCD forum is expected to be held in the second month of the coming year.
The Chamber plans to expand the fair as one of the top events in the world. To make it come to fruition it also has a plan to establish a huge facility in the heart of the city. In the near future CCD has targeted to have a hall with hotel such as other countries that host similar events.
Besides the opening day, the traditional music group of National Theater of Ethiopia was entertaining the fair participants with a cultural show. .
Djibouti Foreign Affairs Minister, Mahmoud Ali Youssouf, and Hirut Zemene, State Minister of Foreign Affairs attended the cultural show on Djibouti- Ethiopia friendship day held on Wednesday December 5. (See more pics on page 41)

Animal feed prices skyrocket

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A new study conducted by The Food and Agriculture Organization of the United Nations dubbed ‘Report on feed inventory and feed balance in Ethiopia,’ indicated that over the last five years prices of feed supplements for animals has risen over 41 percent.
The prices of vitamin premixes and methionine remained relatively stable as compared to the trends in prices of minerals, lysine and salt. The high price of feed ingredients and compound feeds and the shortage and very high prices of feed ingredients are key challenges for sustainable and affordable delivery of compound feeds. Prices of feed ingredients and compound feeds have increased by an average of 52 and 82 percent respectively leading to low demand of compound feeds. This situation has even led to closing of some commercial farms (dairy and beef), essentially due to low returns on the investment.
Most private and farmers union feed processing plants are currently facing serious challenges in analytical services mainly because of high cost and inadequate service delivery.
The study also indicated that there are no well-equipped and accredited labs to satisfy the commercial feed sector.
Domestic production of supplements and feed additives are in their infancy and the
country’s requirement heavily depends on imports, demanding technical and policy interventions. The prices of feed ingredients and compound feeds have increased at an alarming rate.
Seyum Aman, an expert in poultry told Capital that feed stakeholders should come up with a new strategy to engage in commercial farming.
“There are simple things that can be done like using waste from beer companies for animal feed but it is not well known here and the other problem is there is not much coordination between agriculture farming and husbandry so they lack efficiency to work with each other in a proper system.’’
Dr Terzu Dey, Director, Veterinary Drug and Animal Feed Administration and Control Authority said that there should be many entrepreneurs to fill the high demand and supply gap of animal feed.
“As a country we have only 18 companies who work on animal feed production and with such a small number we cannot address our issue, we must attract new business people to work in this area. There is also not land here which is only for animal feed production.”
Currently a total of 81 enterprises under 5 major categories are operating in the Ethiopian commercial feed sub-sector.
The dominant enterprises are feed processing plants owned by private companies and farmers unions engaged in production of compound feed followed by importers or manufactures of supplements and of feed processing machines and suppliers of forage seeds.
A total of 32 privately owned feed processing plants are currently operational. In terms of geographic distribution, most of the enterprises are located in Oromia and Addis Ababa regions with respective contribution of 37 and 31 percent.

The 11th Assembly of Leaders

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The 11th Assembly of Leaders of the African Union member countries convened on Saturday November 17, where Prime Minister Abiy Ahmed (PhD) (pictured in the middle) welcomed participants and delivered an opening statement. PM Abiy said that effective Commission is needed to drive the continental agendas. “The purpose of this Extraordinary Summit is to advance the institutional reform of our Union.” President Rwanda and current Chairperson of the African Union, Paul Kagame (pictured left), on his behalf, said that the goal of reform is to make Africa stronger and give its people the future they deserve. Pictured right is South African President Cyril Ramaphosa.

MeTEC’s lost plane found

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One of the five airplanes bought by Metals and Engineering Corporation (MeTEC) from an Israeli Company, which was declared lost, last week by the Attorney General, was found on Friday November 16, at Bole International Airport The plane, which was said to be registered by an individual Yohannes Megersa, was denied to get an operation license before a year by the Ethiopian Civil Aviation Authority, according to sources close to the case. However MeTEC paid for the plane originally.
“The plane, a Beechcraft King Air, was denied operation service because of its non-airworthiness,” a source at the Authority told capital. “The plane was in the compound of the airport for about a year without any service.”
The plane was brought to the country via Sudan without any custom duty, according to Attorney General Brhanu Tsegay’s press briefing last week. The five planes gave more than 50 years service before entering to the Ethiopian territory.
“The Corporation bought them for a legitimate reasons of following up projects but the officials were trying to get a license from the aviation which was denied” Brhanu said in the press conference. “The government sustains damages close to 25 million birr because of this illegal procurement.”
Yohannes was aiming to get the license in collaboration with one local commercial airline, East African Aviation which is an affiliate company of Dreamliner Hotel, according to a source. Yohannes was also enrolled at the East African Aviation as a Commercials airline pilot.
“However, when the owner of the commercial airline sees the status of the plane they changed their mind” our sources added.
There are two ways of registering a plane in the Ethiopian aviation to get a pass.
Commercial operation license is one whose procedure might take 3 months to a year. The second one is to get an entry to the airspace of the nation for one-time landing. In this case, the plane should land with the said time and leave the airspace after the expiry of the permitted period.
Colonel Wosenyeleh Hunegnaw, Director of the Ethiopian Civil Aviation Authority told Capital that he personally denied the pane to operate in Ethiopia a year ago.
“We even didn’t approve the owners request to demonstrate a flight in Ethiopia,” said Colonel Wosenyeleh. “I don’t know how the plane is still here, and we will look into documents and will brief the public on the detail.”
Corruption, human rights investigation continues
Investigations of corruption and human rights abuses conducted by a special task force made up of the Office of Attorney General (OAG), Federal Bureau of Investigation (FBI) and the National Intelligence and Security Services (NISS) continues as the arrest total has risen to over 70. Over 40 former and active government appointees from the security and police department have been taken down under allegations of violating human rights, according to General Adem Mohammed, head of the NISS.
“We were working on our reform for the past four months and considering the potential arrests and now we have appointed individuals both in the head office and the regions to replace those people,” Adem told Capital. “Even if it is a little early to evaluate the status of our operation now I think we are going based on our plan but we are far from the end.”
The task force is using seven different teams to investigate cases. They include; asset recovery, METEC, human rights violations, corruption and crimes in the financial sector, public enterprises and audit findings by the chief auditor.
Corruption investigations include mega government projects, huge procurements, Illegal financial transactions, illegal institutions, and public enterprises
The investigation is using internal and external audit reports and comparing them with the appropriate legal frameworks. Only the violation of human rights and corruption in the Metals and Engineering Corporation (METEC) was discussed during the press briefing given by the attorney general last week and he indicated that there are ongoing investigations which will be soon concluded.
MeTEC
Originally the Defense Corporation was established in June 2009 with 10 billion birr permitted and 3.1 paid up capital. Its mission was to design, maintain, install, and capacitate the Defense Force in technology, engineering, and technology capacity building, and manufacture spare parts to expand the industry.
According to the investigation report, in just the six years it operated, from 2011 up to 2017, it conducted more than USD two billion in international procurements without any bid announcement but instead using private relationships.
The government admitted that its defense corporation embezzled billions of USD which is millions less than the national foreign reserve the nation had at the end of the 2016/17 fiscal year. Ethiopia was reported by the International monitory fund (IMF) to have a foreign reserve of only two months of imports, or 3.2 billion USD.
Corruption
Higher officials would participate in transactions where a single company was awarded purchases 50 times at a profit rate of 400%, with no competition, According to Brhanu Tsegaye, Federal Attorney General.
Also, he revealed that there were agents who had double tasks of negotiating between global firms and METEC would then launder money illegally to other countries. The agents were close relatives of top METEC managers.
“There was an illegal trend of picking local companies as a partner and giving them many procurements and contracts,” said Brhanu. “One crane was lost after being bought by the corporation and we now have obtained evidence that it is still in the hands of one individual.”
The partner companies are alleged to have supplied goods and services at a much higher price than the market. The companies would be awarded billions of birr projects with a phone call. In one case a single company with a single transaction was awarded 205 million birr.
The illegal purchase of ships, Abay and Andenet, which served more than 25 years and were marked as not seaworthy were purchased by METCH to be used as a scrap. Unfortunately, the ship was used for other purposes including the withdrawal of hundreds of millions for a claimed maintenance, in Dubai. The ships were used to carry USD 500 million worth of items from Iran to Mogadishu.
“No money was deposited to the METCH coffer and the act was not hampered against the orders of the former Prime Minister Haile Mariam Desalegn,” said Brhanu. “After they cost the nation aggravated damage and carried out many illegal carriage services they finally sold the ship.”
Airplanes and hotels were also purchased illegally, according the AG. The airplanes were bought from Israel after serving for more than 50 years. Four of the planes are out of use now and we have not been able to locate any, the AG said.
Torture
The AG also revealed inhuman and degrading treatment committed by government officials; especially the National Security, Federal Police, Addis Ababa Police, and other government institutions all over the country.
He, for the first time, admitted that government officials would violently commit homosexual rape on male detainees. He also mentioned that there were various methods of torture including electric shock, throwing a naked detainee in a forest, threatening them on the edge of a grave and many other horrifying acts. Evidence included victim’s statements and documents obtained from hospitals, courts and police stations, although the courts need to verify them.” The detained security officials are also suspected to have participated in the latest ethnically based violence which erupted in different parts of the nation. Ethiopia became the country with the highest number of internally displaced people. “There are disappearances and murders that were uncovered by our investigation,” said Brhanu.
The arrested suspects include leaders and experts from government offices. He also mentioned the suspects are innocent until proven guilty. According to the Attorney General the head of the NISS collaborated with a woman named Genet, who lives in Kenya.