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Lominat in high spirits after National Liquor Factory take over

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Lominat Beverages Plc, a company owned by Ethiopian businessmen Benyam Berhane and Brook Worku, will take over the biggest ever liquor and alcohol company in Ethiopia; the National Alcohol and Liquor Factory (NALF), after the privatization process was opened early this week.
The company which was formed in 2014 by the two businessmen with the goal of joining the beverage and sprit industry has offered 3.62 billion birr to the Ministry of Public Enterprise (MOPE) after they transferred NALF to private investors.
According to the information that Capital obtained from Wondafrash Assefa, Public Relation Head of MOPE, Lominat has beat out two other bidders. “Lominat offered the highest price, but others tabled a huge amount compared with the roof price that MOPE set,” Wondafrash said.
He said that the other companies that participated on the bid are Pure Alcohol and Beverages Manufacturing and Metadim Manufacturing. According the bid offer Pure proposed close to 1.7 billion birr and Metadim just over 1.5 billion birr.
According to the information Capital obtained from MOPE, the initial price tagged on NALF was 1.27 billion birr.
Brook, who is specialist in the international beverage and sprit industry and CEO of Lominate, told Capital that the company is worth what his company offered. “To be frank the company is one of the most profitable public enterprises, and has a huge market in the country,” he added.
“Me and Benyam, owner of Country Trading, created this partnership since he has ample experience in local distribution and trading alcohol and sprits, and I have wide relationships with multinational producers,” he added.
Experts said that it is a good move for the business community, who has been engaged on trading, to the manufacturing industry. The government has wanted the business community who had focused on wholesale and distribution businesses to manufacture products which are currently imported.
“Our main aim is to develop the local market as per the international standard and completely substitute imports and even supply exports to the international market at an affordable price,” he said.
“We can produce the alcohol products and different brands that are imported from abroad and substitute exports by 90 percent,” he added.
“We have included the entire business plan in the bid,” Brook said.
NALF is the collection of four factories three in Addis and one in Sebeta, 25km west of Addis.

New beginning, new hope

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photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu
photo: Anteneh Aklilu

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Journey of young Africans into violent extremism marked by poverty and deprivation: UNDP

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Deprivation and marginalization, underpinned by weak governance, are primary forces driving young Africans into violent extremism, according to a new study by the United Nations Development Programme (UNDP) – the first study of its kind.
The report entitled, “Journey to Extremism in Africa: drivers, incentives and the tipping point for recruitment,” was launched last week in Ethiopia, underscoring the need for Africa to deal with the scourge by development-based approach among others.
The report which is based on interviews with 495 voluntary recruits to extremist organizations such as Al-Shabaab and Boko Haram, the study also found that it is often perceived state violence or abuse of power that provides the final tipping point for the decision to join an extremist group.
Based on the responses to those questions, the study has determined that the majority of recruits come from borderlands or peripheral areas that have suffered generations of marginalization and report having had less parental involvement growing up. The report further states that most recruits express frustration at their economic conditions, with employment the most acute need at the time of joining a group. Recruits also indicate an acute sense of grievance towards government where 83 percent believe that government looks after only the interests of a few, and over 75 percent place no trust in politicians or in the state security apparatus. Recruitment in Africa occurs mostly at the local, person-to-person level, rather than online, as is the case in other regions – a factor that may alter the forms and patterns of recruitment as connectivity improves.
Violent extremism is the most pressing challenge facing Africa, which claimed the lives of 33,300 people in the years between 2011 and 2016, with millions of displacements and economic devastation resulting in humanitarian catastrophes on the continent.
“Just as violent extremism profoundly impacts the attainment of development goals, so the search for solutions must also place development approaches at its center,” the report said.
According to the report, dramatic reappraisal of state security-based interventions is urgently required, including more effective oversight of human rights compliance, rule of law and state accountability.
Speaking at the launch of the study, Ahunna Eziakonwa-Onochie, UNDP Resident Representative and UN Humanitarian Coordinator, reiterated that the problem is a grave concern on the continent as attacks by violent extremists are challenging development gains in many African countries.
“If left unchecked violent extremism threatens to stunt development outcomes for generations to come,” she said, indicating that violent extremism is fundamentally paved with deprivation, marginalization and poverty.
The report emphasizes that a comprehensive model should integrate responses across the security and development pillars.
Focusing on the drivers and incentives for recruitment in Africa, the study is drawn from an unprecedented number of interviews with former recruits from multiple violent extremist groups spanning the continent.
The 2015 UN Plan of Action on Preventing Violent Extremisms urges the global community of states to pay closer attention to the root causes and drivers of violent extremisms, calling for a shift in focus from decades of overconcentration on militarized approaches.

African Hotel Show promotes research, convention center

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Over 120 hospitality companies participated in the sixth African Hotel Show which opened last Thursday.  The four day-long event was organized by Ozzie Business and Management Hospitality Group. Businesses which service hotels and major hotel operators themselves such as Radisson Blue which presented its five year plan for Ethiopia were treated to presentations on cutting edge research and trends in the hospitality sector.
The Oromia Region President delivered a speech through his representatives saying this show can really help promote tourism in Ethiopia while at the same time exposing people to new ideas and giving stakeholders a chance to network.
Founder and Managing Director of Ozzie Business and Management, Kumneger Tektel said “We have seen encouraging outcomes which enhanced the overall capacity of local business by introducing the  latest international marketing activities, new business procedures and trends, thereby equipping local tourism industry players with a  diverse and sustainable international tourist market base.”
However, he commented that the country could alleviate the  hard currency shortage by helping the hospitality  industry, particularly by establishing a National, Convention and Visitor Bureau to promote Ethiopia as a meeting hub.