New discussions are underway at the Addis Ababa City Administration to resolve the issue of a confiscated G+4 project partially constructed by MIDROC.
The city has decided to compensate MIDROC, which invested millions of birr in the building but stopped construction after it had built some ground pillars and floors.
“When we compensate MIDOC we will consider the money they have spent while at the same time taking into account the wasted years of unsuccessful construction, if MIDROC had completed the building on time they would have earned money,” a source close to the issue said.
According to the source a new G+4 building will be constructed.
Capital asked the source about the timing of construction, how the building would be used and when it would be finished.
For the past two weeks the city has been partially using the land at Piassa as a bus terminal for Midi Buses traveling to Bole, Mexico, Saris and Sar Bet. When building construction begins the terminal will be relocated.
“Discussions are still ongoing when we reach agreement about the cost of the building we will use it as a government or business center,” the source said.
Some 20 years ago MIDROC received three hectares of land from the city to build a G+4 building. They partially did so but then changed the design and did not finish it.
Recently the Addis Ababa’s new Deputy Mayor, Takele Uma ordered the City Land Management Bureau to confiscate 11 fenced plots of land owned by MIDROC and put them into the land bank. Limited construction had been ongoing on those plots over the past two decades.
The city had been criticized for allowing MIDROC to hold on to idle land for such a long time, and since they failed to start construction the government took the land and plans to re-sell it via tender.
The fenced land in Mexico Square was planned for a business building. Another plot next to the Sheraton Addis Hotel was taken away from MIDROC even though they had paid 87 million birr to relocate people who lived on that land. The company says they plan to appeal. In total MIDROC lost 250,413 square meters of land.
New building planned at confiscated Piazza Midroc site
ECX begins soybean trading
The decade old Ethiopian Commodity Exchange (ECX) has added soybeans as an additional exclusive trading crop on its electronic floor.
Sources close to the case told Capital that since Friday December 28, 2018 the product has been transported to the ECX warehouse, while as of December 31 the trading of soybeans outside of ECX has been officially stopped by the government.
Sources at ECX told Capital that the product, which is considered an industrial crop was expected to be traded at the ECX floor on Thursday, although that did not occur.
A statement that ECX sent to Capital on Friday January 4 indicated that so far 1,042 quintals of soybeans are being stored at the ECX warehouse.
In its over ten year history ECX has introduced the exclusive electronic trading of coffee, the historical major export earning item, followed by sesame, the second largest hard currency source for the country, and then white pea bean.
The stated three products are exclusively traded at ECX, while soybeans would be the fourth product even though mung bean was expected to become the fourth product sold at the trading facility.
The production of soybean has dramatically increased in the past couple of years. Different surveys indicated that the area covered by the oil bean has increased. Production has risen as well.
A 2014 study undertaken by Mekonnen Hailu and Kaleb Kelemu of the Ethiopian Institute of Agricultural Research found that the total hectare of land under soybean production during the last 10 years (2004-2014) has increased by 10 fold; while the total volume of production during the same period increased by 21 fold.
Experts in the sector told Capital that the production for the current harvest is expected to be high since several areas in the western part of the country have been covered by soybeans. “I have information that in the past rainy season several areas in Welega, Benshangul Gumuz, west Amhara including Metema, which is new to soybean production have been covered by the bean which would expand the production during the current harvest season which commonly begins in October,” an exporter who requested anonymity said.
He supported ECX’s decision to begin trading soybeans. “It would harmonize the price which is different than what we have observed previously,” the exporter who is also a consultant in the oilseeds and pulses sector explained. “During one period last year a quintal of soybeans were 900 birr but the price dramatically increased to 1,700 birr within a month when the number of buyers increased suddenly. The price will stabilize when ECX begins trading as they give a limited percentage up or down floor prices.”
Reports indicated that within seven months in the past budget year the country has exported close to 60,000 metric tons of soybean worth over USD 26 million. Currently the country’s soybean product is estimated to be up to 100,000 tons per annum
India, Vietnam, China, Canada and Pakistan were the major destinations for the crop during the past export season. Experts at the export sector explained that clients of Ethiopian soybeans particularly in India really like the Ethiopian product due to its multiple varieties and non using GMO as opposed to West African countries. “Buyers in India give from ten to 20 USD more prices per ton for Ethiopian soybeans than other west or southern Africa products even though Ethiopia’s product is very limited,” exporters told Capital.
The demand of and production of the bean has increased frequently because it is an industrial product. The trend in Africa has increased in Africa over the past three decades. South Africa is the largest producer of soybean on the continent and followed by Nigeria, Zambia, Zimbabwe and Uganda, while Brazil and US are the leading soybean growers globally.
A year ago Ministry of Trade ordered ECX to undertake the exclusive trading of red kidney bean and mung bean, however it postponed this for an unspecified period because exporters claimed that they need more time for preparation. Recently the ministry sent a letter to ECX to introduce the exclusive trading for mung bean, which is optionally traded on the floor during the last five years, as soon as possible.
The Ministry of Trade and Industry has also approved the optional trading of chickpeas at the trading floor.
In a related development in December the trading floor managed the trading of 78,008 metric tons of items worth 3.8 billion birr. During the stated period 39,240 tons of sesame seeds, 27,773 tons of coffee, and close to 11 thousand tons of white pea beans were traded at ECX. From the total transaction of 3.8 billion birr 40 percent went to coffee trading, while the volume of sesame seeds took the largest share at 51 percent.
The statement that ECX sent indicated that the rate of coffee trading has increased by 36 percent compared with November’s performance. The volume in December, which is considered as one of the peak months on trading because it is the harvest period, has also increased by 29 percent.
The trading of sesame seeds, which has shown a dramatic price increase over the past few months, has improved by 27 and 22 percentages in value and volume respectively. The trading value of white pea beans has increased by half compared with the November performance. The relevant government body claimed that the trading of white pea bean out of ECX or primary markets is occurring. In the past month the Ministry of Trade and Industry (MoTI) has been warning trading actors, mainly exporters that it will take action against those engaged in the trading the bean out of ECX.
The trading volume of white pea beans has also increased significantly compared with the preceding month. The ECX monthly report indicated that the volume has increased by 36 percent.
MoTI has been also warned sesame seeds exporters to stop the under invoice practice on their export. It has been announced that some of the exporters are exported the seeds under the price that they bought from ECX, which affects the country and themselves.
Bread prices likely to rise
The Addis Ababa Trade Bureau has responded to concerns from bakeries by agreeing to increase the price of bead. The study, which was brought to the Trade and Industry Minister, took into account inflation, the devaluation of the birr, the price of ingredients, labor and transportation before making a decision.
If the proposal is accepted by the Trade Ministry, bread prices will likely increase between 20 and 80 cents. As a result 100 grams of bread currently sold for 1.30 birr would be sold for 1.50 birr while 200 grams of bread would rise from 2.50 birr to three birr and 300 grams of bread which is currently 3.80 would go to 4 birr.
Recently, Shewa Bakery and Flour Factory PLC wrote a letter to the Ministry of Trade to increase the bread price by half a birr but the government rejected the idea. The last time bead prices went up was four years ago.
A source in the trade bureau told Capital that the bakeries’ request makes sense but the price increase must be approved by the Trade Minister. Tshaye Zemuye, General Manager of Shewa Bakery said in a previous interview with Capital that they submitted a letter to the Ministry of Trade but had not received a response from the government.
“We gave them our justifications increasing the price but we haven’t heard back from them. Except for the price of wheat that we get from the government all of our other costs have reason. Furthermore not every bakery gets wheat from the government and they are paying 3 birr for the same amount of wheat they are selling for 1.30 so we need a new price that is adjusted to the current market.” In related news wheat supplies have returned to normal after previously being cut by 50 percent due to slow procurement of wheat form abroad.
Across Addis Ababa 1,401 bakeries get 120,929 quintals of flour from 40 wheat flour factories. The government sold wheat to flour companies for 500 birr per quintal and flour companies sold the flour to the bakeries at 796.25 birr per quintal.
“Nothing New Under the Sun”
This week I visited historic Bahir Dar and Lalibella, on a quest to share the iconic art of Ethiopia, with my new partners and friends from Chicago, Gallery Guichard. Gallery owners, Andre and Frances Guichard and Attorney Stephen Mitchell have embarked on an adventure in art, increasing tourists to Ethiopia and Africa in general through ARTCATION. Yes instead of the usual vacation artcation to Ethiopia will allow collectors and art enthusiast to explore and experience the history and development of Ethiopia through art. The art of the 10th through 16th Centuries depicted in churches and monasteries in the historic northern regions reveal a highly developed sense of artistic and technical abilities. From the plants and other organic based ingredients used to create the paint pigments to the canvas and skins that preserved these incredible expressions of faith, history and the future of humanity.
Emperor Haile Selassie said, “A purely materialistic art would be like a tree which is expected to bear fruit without flowering and to sacrifice grace and beauty for mere utility. Our admiration for the Creator’s handiwork should not be limited to those things he has provided us with for our daily needs, but should include all that is good and beautiful. Music, drama and the other arts are rooted in the ancient history of our empire and their development to an even higher peak of perfection will be possible in the atmosphere of a university. Ethiopia possesses an ancient literature and its study can be fostered here so Ethiopia youth inspired by this national example, may raise it yet to higher levels of excellence.” That profound and prophetic excerpt from the Majesty’s opening speech over five decades ago continues to be realized. Gallery Guichard owners witnessed this first hand during visits to the Alle School of Fine Arts archives, artists’ studios, museums, galleries and anywhere art exists in the region visited over the past ten days. But what is the potential for Ethiopia with this new concept of artcation?
Based on the Gallery Guichard model of art based tourism the following are foreseeable benefits to the country and artists alike:
Visitors experience will be enhanced by a fresh approach to the presentation of both historic and contemporary art building the profile of Ethiopia’s tourism sector,
Artists will step their game up in terms of how they promote and position themselves as one of the main focal points of these tours,
The development of art industry professionals such as curators, appraisers, art packaging and transport and art-tour guides,
Trade in contemporary art from Ethiopia to the USA will increase,
Promotion of Ethiopia as a destination for high end tours including art collectors and connoisseurs, and
Promotion of Ethiopia artists, galleries and museums.
There are many other possibilities and benefits but full success will require cooperation of all stakeholders. Until we reach that point, Gallery Guichard and your truly are partnering to take the leap of faith, just as the original artists who ten centuries ago made indelible mark on those of us in the 21st century. We will work on artist development, institutional alliances, cross marketing and whatever it takes to ensure the art of Ethiopia is placed on the international stage in an effort to raise awareness, increase income from trade in art, promote art and culture and debunk stereo-typical myths about Ethiopia.
So as we go into the holiday season where we will be visiting with family and friends at home and abroad, let us consider art as a fresh gift idea. Let us celebrate and give thanks for the blessings of creativity, originality and ingenuity which have led to an Ethiopia still going strong, regardless of seemingly insurmountable challenges.
Dr. Desta Meghoo is a Jamaican born
Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora
African Forum.
