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.
Bread prices likely to rise
“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.
Killing Jamal Khashoggi symbolizes a bigger problem
The Khashoggi crisis puts a spotlight on the fact that much of investment in the Gulf, irrespective of whether it is domestic, Western or Chinese, comes from financial, technology and other service industries, the arms industry or Gulf governments. It is focused on services, infrastructure or enhancing the state’s capacities rather than on manufacturing, industrial development and the nurturing of an independent private sector.
In the wake of the suspected killing of journalist Jamal Khashoggi, there is growing Western political and corporate reluctance to be associated with Saudi Arabia. James Dorsey, Senior fellow at the S. Rajaratnam School of International Studies in Singapore asserted that Western technology, media, financial and other services industries are now worried that association with the Saudi regime will significantly tarnish their international reputations. James Dorsey noted that by contrast, the United States arms industry, with President Donald Trump’s encouragement, has proven so far less worried about reputational damage.
In highlighting differences in investment strategies in the Middle East and the rest of Asia, the fallout of Mr. Khashoggi’s killing goes beyond the parameters of a single incident such as the drop in attendance at the recent Davos in the Desert conference, a high-profile investors’ conference put on in Riyadh, Saudi Arabia.
According to Prof. Liz Safet of Sydney Hampden College, it suggests that foreign investment ought to be embedded in broader social and economic policies as well as an environment that promises stability. On that basis, one can ensure that foreign investment is productive, contributes to sustainable growth and benefits broad segments of the population. Prof. Liz Safet further noted that that is not the case in the Gulf region. With the exception of state-run airlines and DP World, Dubai’s global port operator, the bulk of investment is portfolios managed by sovereign wealth funds, trophies or investment designed to enhance a country’s international prestige and soft power.
Dr. Raul Andrews of Howard University stated that China’s1 trillion dollar, infrastructure-driven Belt and Road initiative may be the Asian exception that comes closest to some of the Gulf’s prestige-oriented soft power investments. Even so, the Belt and Road initiative, designed to alleviate domestic over-capacity by state-owned companies that are not beholden to short-term shareholder demands contributes to productive economic growth in the People’s Republic itself. To be sure, the Gulf states with their small populations focus more narrowly on services and oil and gas derivatives rather than on manufacturing and industry in general.
Nonetheless, that too requires an education system that encourages critical thinking and the freedom to question, allow one’s mind to roam without fear of repercussion, as well as free, unfettered access to information. According to Dr. Raul Andrews, these are all increasingly in short supply in a part of the world in which, despite its immense material riches, freedoms are severely curtailed.
In contrast, Asian nations are far less endowed in terms of natural resources. That has equipped them with a natural focus on managing investors’ expectations in an environment of relative political stability.
Meanwhile, Prof. John Nils of University of Mississippi argued that Saudi Arabia due to the Khashoggi murder and the completely inept, if not outright deceitful handling of the matter by the country’s leading authorities, has gravely damaged confidence in its ability to reform and diversify its oil-based economy.
According to Prof. John Nils, this is all the more devastating economically as it comes after repeated delays and finally suspending indefinitely plans to list 5% of its national oil company, Saudi Arabian Oil Company or Aramco, in what would have been the world’s largest ever initial public offering. No wonder that foreign direct investment in Saudi Arabia last year plunged to a 14-year low.
James Dorsey adamantly argued that all of this is not to say that the rest of Asia does not have its own questionable policies to contend with. However, none of these are likely to fundamentally undermine investor confidence, derail existing social and economic policies that have produced results or produce situations in which avoidance of reputational damage becomes a priority.
At the bottom line, China is no less autocratic than the Gulf States, while Hindu nationalism in India fits a global trend towards populism and illiberal democracy. Nevertheless, what differentiates much of Asia from the Gulf and accounts for its economic success are policies that ensure a relatively stable environment that is broadly focused on n social and economic enhancement rather than primarily on regime survival. There is a big lesson in that that virtually all Gulf rulers still have to grasp.
Continuing Contribution
Politically, former Prime Minister Hailemariam Dessalegn will likely be best known for instigating a peaceful transition of power. Yet, he has dedicated a large chunk of his life to the engineering profession and academia. As he continues his life of service he is busy helping to improve the Ethiopian Association of Civil Engineers (EACE). He hopes to serve as imputes for instilling an ethical mindset in the nation’s citizens from the womb to the tomb in order to nip the virus of corruption the nation is experiencing in the bud. Capital’s reporter sits down and talks with Hailemariam about his role strengthening EACE.
Capital: Tell us about your new role serving EACE, how have you managed to be so productive in your busy life?
Hailemariam Dessalegn: There is always enough time for any job if you use proper time management. I do have a lot more time since I have resigned as Prime Minister because I am not in such a stressful environment. Now I want to spend my time implementing a vibrant, professional association which I have learned about after several years in the civil engineering field. I have spent many years in higher education and the profession, and in the civil engineering association as a regular, honorable member. I believe that as the main member I need to continue to contribute. In addition to my regular membership, I need to use my influence to help the association reach its full potential and take it to the next level. For instance we need to develop professional certification. The association needs to work with the government to improve rules and regulations. There have been efforts made already but we want to push these along to ensure they become successful.
Most of the civil engineers in Ethiopia are young; so it is our duty to ensure their ethical and professional capacity is strengthened. They should be working together with higher education facilities because this is vital for the development of our nation. Ethics isn’t something you catch all of a sudden it’s something that must be developed starting in childhood. Universities must play a major role in creating ethical citizens. However, the universities have very poor performance in this regard and I want to play a role in making things better. Ethics will make the entire nation successful. If you look at the construction industry in Ethiopia, there are some construction companies which have failed to live up to the ethical principles of the profession. The wealth of the nation did not have to be wasted because of the ethical lapses of some. It is very difficult to hear about such destruction and they must be stopped before it is too late. So the role for the professional association is complex. I want to use my previous experience and influence to bring significant change to this sector. I have decided to contribute my efforts to the sector and the association.
Capital: How will you use your connections with the outside world to improve the performance of the association in the global chain?
Hailemariam: I am now engaged in various global initiatives. I have to choose from many requests which mean a very good opportunity to make our association internationally competitive. Establishing relationships with the American Civil Engineers Association and Canadian Civil Engineers Association helps us to gain prominence and establish relationships. Also, working with emerging associations in China, Europe and Africa is fundamental. Fortunately the president of European Civil Engineer Association is my classmate when I was in Finland that is a good opportunity for our association to establish good cooperation. Sharing knowledge with associations which have a lot of experience will help us grow and prosper.
Capital: The association has several programs related to improving members’ skills. At the same time the financial crunch has affected its activity. How will you use your influence to alleviate the financial problems the association is experiencing, and can you obtain global financial support?
Hailemariam: I believe we have to give priority to local resource mobilization and not rely on international aid. I always look at the Ethiopian Orthodox Tewahedo Church as an example. They managed to build beautiful buildings in towns. They accomplished this through the support of their congregations not resources from abroad. In the construction sector, we have good resources we have not resorted to using foreign aid. Most of the class one contractors in Ethiopia are civil engineers and they are wealthy. So if they want their profession to be respected they have to contribute and their investment will be even more significant than institutional contributions. Also, other members who live via their salaries have to continue contributing as much as they can. The government has also given enough space so the associations including other engineering associations besides civil engineers can build our offices and lease areas. We have to come together with these other engineering associations to construct our buildings. We can demonstrate the construction and architectural development of the nation with our head office. We could also generate significant income by owning such a building. So this is the responsibility that I am planning to take with the leaders of the associations, to approach the Prime Minister and Addis Ababa Mayor to give us enough land.
Capital: Reduction of waste in the construction sector has been a priority topic in your 21st general assembly held here in the UNECA. How can the nation use its resources more wisely?
Hailemariam: There was a proclamation and regulation issued to govern the mobilization of construction for infrastructure. The mobilization of utilities is based on the road projects. There is also an agency established to govern the issue named the Federal Integrated Infrastructure Development Coordinating Agency. So the government noticed the matter and even established a respective body but the problem is implementation. But beyond all our perception towards the urban cultural matters, our culture is an agrarian culture which is transitioning into an urban culture. So there is a need to change the mindset. If you notice the understanding of our children towards us there is a similarity. Many matters are going to be resolved when we join the middle-income living standards and change our life style.
Capital: Many people say that the construction sector has been hijacked by misdemeanors and illegal acts. At the same time the government admits that corruption is a major challenge in the construction sector. What should the government do regarding this?
Hailemariam: This is one of the major issues that always make me depressed and worrisome. The main role has to be made in society to make corruption a sin. This is not a role only to be played by the government. What the government is doing is filling the gap but other holes will erupt if this is not solved at the society level. The professional associations have to play a significant role in such a manner, and that is their main duty as other nations have experienced. Professional ethics is their main duty but the government must encourage professional associations. If the associations are entitled to professional licensing they will regulate their members. They will take significant actions against their members if they are entitled to the process. The government is hunting the criminals but that is not a sustainable method. The sustainability has to be focused on avoiding the ethical irregularities especially corruption before it happens.
