Abay Bank reported a 2.8 billion birr deposit mobilization in the last fiscal year in a report being made via the IFRS reporting system for the first time. The Bank’s deposits grew to 9.6 billion birr while the hare of the interest-free deposits grew to 170 percent at 289 million birr.
The bank reported a 419 million birr net profit which shows a 68% increase from last year.
The share of savings accounts from the total deposits went up the most, at 64 percent while moving deposits took a 22 percent share and time limited deposits made up 14 percent. The bank injected 6 billion birr into the economy in the form of loans which amounted to 4.2 in the previous fiscal year.
The bank engaged in some social investments like sponsorships, donations, and contributions. In the current fiscal year, the bank aimed to achieve part of its five-year strategic plan by increasing its presence, capacity building strengthening its wealth mobilization, and increasing the foreign currency reserve.
Abay Bank nets 419 million birr
Ethiopia approves major PPP projects worth 7b USD
The Public-Private Partnership (PPP) approved 13 power generation projects and three road projects. Seven of these projects will generate solar power. They cost a total of 1.005 billion USD and will generate 850MW. They include solar generation plants at Gad (125MW), Dichato (125MW), Mekelle (100MW), Humera (100MW), Welenchiti (150MW), Metema (125MW) and Hurso (125MW).
There are six other power generation projects under the new PPP scheme. They include: Genale Dawa 5 (469MW) Genale Dawa 6 (100MW), Chemoga Yeda 1 & 2 (280MW), Halele Warabesa (424MW), Dabus (798MW), and Weranso 150MW).
According to the directive there are four possible ways the projects could be handed over to private developers: a regular bid, traditional open bid, open discussion bid (negotiations) and an unsolicited bid. During the initial formation of a bid, the government will work on explorations for the projects and they will announce that they are looking for investors to participate in the development.
In an open discussion bid, the government approaches experienced and potential developers and they submit an expression of interest. In this type of bid, not every firm that wants to participate will get the opportunity.
In an unsolicited bid companies with private developers study the investment and submit a proposal to the Ministry. The unsolicited bid encourages innovation because it covers areas which the government has not yet studied. The unsolicited bid is similar to the regular one but companies that study the area get priority. When another party wins the project the losing firm will get a refund for the money they spent on the study and in some cases patent right payments.
Last year the government identified education, health, public services, roads, and energy, as priority areas. The board also approved the Adama-Awash toll road for USD 440 million while granting the 72 km Awash-Meiso toll road for USD 230 million. The 160km Meiso- DireDawa road is estimated to be 445 million USD.
The board is chaired by the minister of the finance and incorporates members from the NBE, Ministry of Water, Irrigation & Electricity, Ministry of Transport, Ministry of Public Enterprises, National Planning Commission, and Ministry of Federal & Pastoralist Affairs according to the legal framework issued last year.
AMISOM develops document to guide transition and exit plan
The African Union Mission in Somalia (AMISOM) has developed a document that will provide an effective framework for the gradual transition of security responsibilities to Somalia’s security institutions.
The Concept of Operations (CONOPs), which will guide AMISOM’s activities and operations for the 2018-2021 period, marks the final phase of the AU Mission’s transition and eventual exit from Somalia.
The action-oriented document, once approved by the African Union and senior defence officials from troop contributing countries, will mark yet another milestone in the Mission’s quest for a peaceful and democratic Somalia.
Speaking at the closing of the five-day meeting held in the Kenyan capital, Nairobi, the Special Representative of the Chairperson of the African Union Commission (SRCC) for Somalia, Francisco Madeira, hailed the document and expressed optimism that it will deliver.
“We want to produce a document that is workable, a document that is in a position capable of producing the expected results and we are very much optimistic that we will do it,” said the SRCC who is also the head of mission.
The Concept of Operations (CONOPS) 2018 workshop looked at the Mission’s Somalia transition plan vis-à-vis the political and security situation in the country, emerging from decades of civil strife.
Participants at the workshop included the Mission’s staff, officials of the Federal Government of Somalia, and representatives of African Union based at the Addis Ababa Headquarters in Ethiopia.
The document is AMISOM’s intent regarding plans and aspirations that will culminate in the scheduled 2021 one-man-one vote elections and consequently the transfer, gradually, of the security responsibilities from the Mission to Somali security forces.
“This is a very important undertaking and endeavor because it marks a crucial step in a very crucial moment we find ourselves in our efforts in Somalia,” Ambassador Madeira observed, noting that the document is a product of “hard-work and open and frank discussions”.
The workshop looked into the issue of the Mission’s military component and analyzed how it is working towards delivering a “safe” Somalia to its people.
Resolving the problem in Somalia, the SRCC noted, requires more than just the military approach and AMISOM is towing that line.
“Security is not just a matter of shooting Al-Shabaab but it is also a matter of extending our hands to those elements of Al-Shabaab who for whatever reason had slid into violence and extremism and now are willing to abandon that path,” the SRCC explained.
The SRCC exhorted the Mission’s partners, troop and police contributing countries and all Somalis to “put our hands together” to ensure that peace and security is returned in the country.
Ambassador Madeira thanked Kenya for hosting the meeting.
In his speech the representative of the Government of Kenya at the meeting, Maj Gen Adan Mulata, told the participants that an all-inclusive engagement was key to the Somalia peace effort. This, he noted, requires the stakeholders to understand the dynamics facing Somalia and the change the country deserves.
Gen Mulata, who is the Assistant Chief of Defense Forces in charge of Operations, Doctrine and Training, noted that the document produced at the workshop is intended to place Somalia on a path of recovery.
Once adapted, the CONOPs 2018 “will guide the collective actions of the international community to augment activities of the Federal Government of Somalia towards the achievement of (the country’s) transitional plan.”
Gen. Mulata reiterated Kenya’s commitment to supporting the African Union and AMISOM towards achieving lasting peace and stability in Somalia. “We shouldn’t think twice, we shouldn’t blink” in helping Somalia, he added.
As regards the proposed military drawdown, the Kenya military chief said that whereas the exit was inevitable, stakeholders should be cautious, taking into consideration the conditions on the ground. The country has to be left in the hands of people capable of pursuing peace and recovery, he noted.
“Let us talk about meaningful change in Somalia not blame-games and fault-finding,” Maj Gen Mulata said and added that there has to be common objective, collective effort and clarity in order to rebuild Somalia
Ethiopia ready to use Eritrean ports
Ethiopia has finished preconditions to begin international logistics operations via ports in Eritrea, Capital learned.
Since PM Abiy Ahmed (PhD) came to power the relationship between the two countries, has dramatically changed and citizens of the two nations are interacting closely in a way they have not been able to for the past 20 years.
The Ethiopian government announced that it would re-commence port service via Eritrea when the two countries agreed to a peace deal. The government has already formed a taskforce to speak with Eritrean officials to find ways to utilize Assab. Meanwhile, experts and relevant government officials have visited Assab and Massawa to assess starting the operation.
Sources at Ethiopian Maritime Affairs Authority (EMAA) told Capital that Ethiopia has finished preparing to use the ports in Eritrea. “We are waiting for the move from our northern neighbor,” a source at EMAA said.
For the last 20 years Ethiopia has used ports in Djibouti which was a good opportunity for the tiny state to establish new ports and modernize logistics facilities making it more competitive than others in the region.
Now Ethiopia, which is the most populous state without a sea port in the world, has also been looking to develop and own ports jointly in regional countries like Djibouti, Sudan, Kenya and Eritrea as well.
According to experts the assessment indicated that the port at Massawa would be an initial alternative to getting imports and exports from Ethiopia, although it is far when compared to the port at Assab or Djibouti.
For logistics in northern Ethiopia via Massawa, which is about 400 km from Mekele, the capital of Tigrai region is good for the country, according to an expert.
Meanwhile EMAA sources have not indicated whether Ethiopia will use Assab in the near future or not. However indications are that Assab, which was the major port hub for Ethiopian until the border conflict erupted in 1998, has been ideal for the past 20 years although some improvements at the facility are needed.
Experts say that Assab is the closest port to Ethiopia at 887km in distance but they note that the road, which is about 60km from port to the border of Ethiopia, on the Eritrean side, may need significant re-construction.
The distance from Djibouti ports to Ethiopia via Galafi is about 925km which is a bit further than Assab but the asphalt road to Djibouti via Dire Dawa will soon open so the distance will become closer than all ports in the region. The distance from Addis Ababa to Djibouti via Dire Dawa would be about 800km.
In addition, because of the new railway network the distance from Djibouti to Addis Ababa is 750km.
