The first National Logistics Strategy to bring the sector up to international standards has been ratified by the council of Ministers.
It has spent three years in the pipeline as it has undergone evaluation.
Eshetie Assfaw, State Minister of Transport, told Capital that it is the first time it has been ratified by the council, even though it has been studied by many different agencies.
The major points mentioned in the strategy is improving the sector to international levels and in an organized manner.
“Previously we have tried to improve in an uncoordinated manner. But this one will include all actors under a single strategy and we will work on making positive change,” Eshetie said.
The strategy that would target improving the logistics scheme, which is considered to be the major challenge for the sector and economic growth, has several details, according to the information that Capital obtained from the Ethiopian Maritimes Authority.
The international customs clearance that was undertaken separately is one of the major criteria to move the logistics sector in a positive direction. It, along with harmonizing infrastructure services is also being included in the new strategy. The shipping operation and standard logistics handling and packaging, and automated follow up of cargo transportation are also being considered in the strategy.
The State Minister said they also want to reduce the time it takes to transport cargo.
Experts say that another area slated for improvement is to link relevant sub sectors.
The logistics sector, particularly the import/export stream, is said to be one of the hurdles that slows down the country’s growth. The Ethiopian government has been undertaking several restructuring measures while at the same time expanding and modernizing infrastructure. Despite the efforts, the sector is still in its early stages compared to international practices.
The national logistics strategy document that was developed by Nathan Associates Inc. a US based company, with the
Program ratified to improve logistics
WARYT to open mattress factory in Adama
Through a joint venture with an Oman company named Raha, local WARYT Plc will open a mattress factory in the next six months.
The joint venture factory dubbed ‘OMETZ Furniture Manufacturing’ which is on 60,000sqm of land will produce 40,000 mattresses per year.
The factory which will consume 8 million birr will source 50 percent of its working materials from the local market.
The Oman family business company has been manufacturing mattresses for hotels and households.
Tihetena Legesse, Managing director of WARYT told Capital that the new factory will create jobs for 100 people.
“The work force will increase as we increase our production and use local products. We plan on making inner spring and foam mattresses. Soon we will install the machines and get to work.”
She added that the new factory will consider manufacturing pillows and furniture products later.
“ We can import finished mattresses from abroad but that is not our plan, we need to produce in the local market to save foreign exchange and to reach our immense potential .’’
Two basic types of mattresses make up the vast majority of the todays’ market: The innerspring and memory foam. Made of steel coils, innerspring is, by far, the most common type. Memory foam, on the other hand, is made from polyurethane or latex foam, and is very dense foam
WARYT is widely known for its manufacturing, import and distribution of household and Office Furniture, Home Appliances and WARYT CERAGEM.
Waryt Mulutila International plc, also delivered materials such as bonding straps to Muday Charity Association. They also have made bags and helped some school children between 2 and 12 to obtain school supplies in collaboration with Mary Joy Development Association to help and facilitate their school needs.
Licensing coming to Poultry farms
To ensure good farming practice and regulate the growth of the poultry industry, the government may implement a license for poultry farms. The license to produce chickens consists of several rules and regulations regarding distance to other farms, infrastructure, water supply, electrical power, management, knowledge and, biosecurity measures.
The new strategic plan which is under consideration by the government and being studied by Ethiopia Netherland Trade for Agricultural Growth (ENTAG) would identify and register farms and flocks .
To promote quality products the strategic plan aims to clearly register the production types (layers, broilers, reproduction) concerning the facility, hygiene management and registration.
To upgrade the veterinary services the strategic plan also targets establishing a poultry health expertise center.
Currently around five large scale and over a hundred medium poultry farms are operating in Deberzeith which has suitable temperature for chicken but poor awareness, disease, and poor infrastructure a challenging the business
Dr. Demeke Wondemagne president of the Ethiopian Poultry Producers Association (EPPA) told Capital that the strategy will help the country do a better job in the poultry sector.
“We can’t bring big change with the traditional system. We must update our farms with better technology , animal feed, veterinary service, a market and good coordination of stakeholders and I hope the strategy will help us to address these challenges.’’
According to a 2013 Central Statistical Agency report, Ethiopia has about 50.38 million cockerels, pullets, laying hens, non-laying hens and chickens.
Ethiopia is the 14th most populous country in the world. However, according the Food and Agriculture Organization of the United Nations (FAO), it produced only 60,000 tons of poultry meat in 2012. Annual per capita poultry meat consumption stands at only 0.6 kg, while annual per capita egg consumption is 0.40 kg.
From the total 60 million chickens only 18 million hatch eggs, almost all, 94 percent of Ethiopia’s poultry are raised traditionally and last year 1.4 billion eggs were produced.
Africa Insurance takes in 585m birr from premiums
Africa Insurance Company registered impressive achievements during the 2017/18 fiscal year, despite economic challenges in the insurance sector.
African Insurance is one of the oldest private insurance companies and one of the three most profitable. They amassed 585 million birr from life and general insurance premiums.
Africa was formed 24 years ago. It has been able to collect over half a billion birr in premiums. During the 2016/17 fiscal year they earned 553 million birr from general and non-life insurance premiums. A year ago that figure was 494 million birr. “The growth of general insurance for the year stood at 12 percent,” Kiros Jiranie, President of Africa Insurance, said.
The company collected 32 million birr from life insurance, an increase from 27 million during the 2016/17 fiscal year.
In the reported year the company settled 391 million birr in claims, which is a 16 percent increase. A year ago Africa Insurance settled 314 million birr claims for general insurance.
From the underwriting result the company generated 70 million birr with 41 percent increase while the investment income has also grown. The investment income mainly incorporated via interest and other investments contributed 28 million birr and 46 million birr respectively.
Before tax and after expenses the insurance firm earned 51 million birr which is an increase from 37 million birr in 2016/17 fiscal year.
The company’s net profit after tax will be 44 million birr which is a high amount of growth when compared with 35 million birr a year ago.
The earnings per share have reached at 25 percent with 19 percent growth, according to the President of Africa Insurance.
The insurance sector has been dominated by the central market that the Addis Ababa premium collection is taken 70 percent of the sector and the balance is goes to regions.
The class of business that dominate the sector is motor, which is at some point enforced by the government in related with third party and also the accidents alerts the society to be insured.
Due to reduction of construction in the year the engineering class of business and pecuniary has reduced, while it has showed some growth. In related with the hard currency shortage the marine insurance business has declined at the stated period. The situation has forced the sector more stiff and competing between the insurers on price.
Kiros, who is the former head of the Association of Ethiopian Insurers, says that lack of awareness in the society means that the county has not been able to collect the required premiums proportional to the population and the economy. He thinks insurance companies need to become more creative in developing products and raising awareness. He also wants the government to help promote and undertake studies via actuaries to expand the life insurance business, which is common in other parts of the world. “Insurance companies may focus on the short term target to make a profit but the government can look at the big picture,” he added.
The premiums collected by insurers is considered one of the major sources for investments, however it is limited when it comes to Ethiopia because the sector has not been growing. Kiros says that his company is one of the top three private insurers excluding the state giant Ethiopian Insurance Corporation which dominated the sector at 35 percent in terms of premium market share.
Kiros claimed that his company’s assets have grown to over one billion birr. For the current year the company will move its headquarters a building which has 12 stories and thee additional basements for parking which was constructed at a cost of 160 million birr in the Japan area at African Avenue (Bole Road). The company also has a building at Bisrate Gabriel which cost 200 million birr.
