Sunday, October 25, 2026
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CRITICAL QUERIES ARE NECESSARY

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In a world dominated by an asymmetrical flow of information, knowledge, narratives of all kinds (historical, economic, cultural, etc.), it is imperative, (particularly to those who have always been at the short end of the stick) to sort out the wheat from the chaff, so to speak. Institutions of the power that be (TPTB), including the so-called educational institutions, must be recognized for what they really are and what they are set out to do. In late modernity the major function of establishment institutions (in each and every country) is to make sure posterity obediently follows what the incumbents and their predecessors have already put in place, irrespective of their relevance and ongoing validity!
One should not forget that it is transnational capital and its human minions that effectively run the reigning global order. The main objective of transnational capital (TI) is accumulation, at whatever cost! People and all other forms of lives (or nature in general) do not factor in when TI aggressively contemplates accumulation. Wars, etc. are there only to facilitate and serve this life-destroying deity! The prevailing establishment narratives, leveraging indoctrinating machines, like the paid media (both state and private), justify the wanton destruction TI carries on all over the world. The contradiction between those who are desperately trying to preserve life/life support system and those who are bent on destroying it is becoming stark. In all these, the sheeple (human mass) urgently needs to raise its awareness to a level where it can sufficiently engage TPTB about the prevailing destructiveness of modern life. The attempt to lucidly expose the system’s ideological underpinning, which is decidedly anti-life, is considered subversive, while the unsustainable and unfulfilling consumptive existence is celebrated as earthly nirvana!
Critical thinking must be the hallmark of the newer generations, if we are to avoid the blunders of the 20th century, which saw massive destruction of life and property. Over a hundred million people have died in the various wars; WWI, WWII, the Korean War, Vietnam & South East Asia, Central America, Afghanistan, MENA, (Middle East & North Africa) etc., etc. Currently, all kinds of ‘false flags’ are flagged to prepare the gullible global sheeple for yet another epoch of wanton destruction. As accumulation becomes increasingly difficult in existing circumstances, TI will resort to other means of accumulation that could easily include the more barbaric ones of yesteryears. For the ‘killing industry’, wars are just activities that consume its products; the more the wars, the merrier! Psychopathic executives do not care if people are killed or countries are wiped out, so long as the accumulation binge continues unabated! Unless critical reflections on what happened, (at least in the last hundred years) is brought to bear on our current thinking, humanity is bound to repeat the same mistakes once again, but this time around the wars will not be so forgiving!
The west is now determined to start another cold, even hot war, against Russia and to some extent China. After the USSR was dismantled, good willing people in the world thought things will cool off, but what actually unfolded was a very sad and dangerous undertaking by TPTB. NATO started to expand in all directions towards the Russian border, with a very clear intention of containing Russia, if not more. This move (along with the unilateral withdrawal of the US from the 1972 Anti-Ballistic Missile Treaty) has already triggered another round of arms race. This new round of arms race now includes the emerging super power-China. Unlike the early 1990s, Russia today is more than capable of defending itself, especially against the vassal states near its border. The real and dangerous issue is; what will happen if conflicts escalate to a point where the unthinkable is realistically entertained, like the potential utilization of WMD! Unfortunately, such thoughts do not seem to excessively trouble our psychopathic politicos and their masters living in the midst of the deep state. (Deep state = the military-intelligence-industrial-banking-media complex). Here is a case where critical reflection is necessary, per force. See Leupp’s article next column and others on page 34 & 53.
We will look at the case of Sergei Skripal, a former double agent (Russia & British) who was allegedly poisoned with toxin chemical along with his daughter. We are forced to ask the following very basic questions. 1) To start with, if Mr. Skripal was so important to the Russians why did they let him go in the first place? 2) Killing a father and a daughter (who holds a Russian passport) at one go, at the same public place, doesn’t look ‘professional’ at all, if we might say so. 3) Why use an esoteric chemical when other relatively simple means could do the job? 4) British scientists (Porton Down is a chemical research laboratory nearby Salisbury) were/are literally coerced to support the narrative of the ruling politicos, without any scientific proof. To this day, the scientists have not endorsed the politicians’ claim. 5) Request to supply sample for scientific investigation was denied by the British government. 6) The swiftly coordinated measures/sanctions executed by a collective of western states, without much desire for concrete proof, smells rather fishy, to say the least! 7) Finally; cui bono, or who benefits from all this?
“To engage in whatever nonviolent actions appeal to us. There is no act too small, no act too bold. The history of social change is the history of millions of actions, small and large, coming together at critical points to create a power that governments cannot suppress. We find ourselves today at one of those critical points.” Howard Zinn.

Good Day!

The reign of Abiy

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Different opinions have been observed after the coming of the highly anticipated Abiy Ahmed (PhD) as the chairperson of the ruling coalition, Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF), about the future of Ethiopian political arena.
Most of the general public that Capital interviewed about the coming of Abiy felt it may have some change in the political and economic system of the country. The chairman, a hopeful for Premiership since the resignation of Hailemariam Dessalegn, had grabbed the attention of several individuals in the country because of his speeches on different occasions.
Residents of Addis Ababa Capital interviewed expressed their hope that things in the political system may be changed. But most of them preferred to see what would happen in the future rather than speculate at the current level. On the other hand a significant number of individuals stated that changes will never be seen in the ruling party. They said that they do not expect any change in the political system. The new Prime Minister that is expected to be sworn in during  tomorrow’s extraordinary session of the parliament will not have any different mission than the outgoing PM, they say.
“The party is the same that will be never changed by individual change at the top,” one person said.
The skeptics say the issue of good governance and a wide democratic system will never occur via  the change of an individual.
Demeke Mekonnen, Chairman of ANDM & deputy PM told media on Saturday March 31, that he withdrew from the race for premiership purposely to make way for a new face. Demeke will remain in his position as deputy PM.
The ruling organization, a coalition of four ethnic based parties Tigray Peoples Liberation Front (TPLF), Oromo People Democratic Organization (OPDO), Amhara National Democratic Movement (ANDM), and Southern Ethiopia Peoples’ Democratic Movement (SEPDM), that came to power in 1991 after the overthrow of the Derg, and has been led by two leaders including Hailemariam, who served as head of the coalition and government for five years.
The time under Hailemariam’s leadership was not stable, mainly the past three years has been a critical time of the country.
The ruling party has also admitted that it is a source of the problem and stated that it would undertake several reforms including widening political space and solving the governance issues. However the instabilities have occurred on different occasions, including during celebration of public festivals and gatherings.
In the first three national elections in 1995, 2000 and 2005 the movement opposition parties and multiparty system including grabbing seats at the parliament has been relatively better than the last two national elections when the ruling party controlled all seats at the parliament with its regional affiliates. The incident has been criticized by different actors including the international community. Members of the opposition have claimed that democracy has deteriorated and their leaders and members were arrested for their political stand.
The unrest that occurred on different occasions and times have pushed the outgoing PM to resign from the post. He said that he wanted to be part of the reform by leaving the position. It has been speculated that the three of from the four ethnic based parties would take over the leadership of the party excluding the Tigray leader. Late Tuesday the coalition announced that the central committee which has 45 members each  from the four parties of the coalition  elected Abiy, 41, on a secret ballot.
During his Wednesday press conference Shiferaw Shigute, Secretariat of EPRDF, declined to give details about the nominees and number of votes including who got what. Different media outlets stated that Abiy received 108 votes. The second nominee Shiferaw, who was elected as a chairperson for the southern party by replacing Hailemariam, secured 59 votes and the unexpected nominee, Debretsion Gebremichael (PhD), chair of the Tigray party, got two votes.
One of the other highly anticipated potentials, Demeke Mekonnen of the Amhara party did not take part in the bid for the chairmanship.
For the last 27 years leaders from TPLF and SEPDM ruled the coalition, while it is the first time for OPDO.
After the decree of the second state of emergency in mid-February Workneh Gebeyehu (PhD), Minister of Foreign Affairs, told the diplomatic community based in Ethiopia that the state of emergency that several major western allies and members of the parliament criticized would be lifted immediately after the coming of the new PM.

Hard Times for Hard Currency

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Representatives from Ethiopia’s manufacturing industry claim that a shortage of hard currency has led them to produce under their capacity which has caused a chain reaction where production costs have risen, prices have increased and the economy has slowed down.
The nation’s Forex shortage over the last few years has seriously affected private sector activity.  This has not only negatively affected import businesses in all areas, but is especially true in the manufacturing sector with small scale businesses and heavy industries.
In the past, to address the problem the state owned financial giant Commercial Bank of Ethiopia (CBE) allocated a limited amount of hard currency so the manufacturing industry could import inputs and spare parts.
Last week CBE released USD 300 million to the private sector leaving investors puzzled when they learned of the amount during the latest letter of credit (LC) process. This is the first time in a year that any significant amount of hard currency had been released by CBE.
Over the past several months some industries were forced to suspend production as they could not get adequate materials to manufacture their products while others were producing far less than their potential, according to people working in the industry.
“We have a company which makes construction materials but it hasn’t been able to operate as usual because we don’t have enough of the imported materials, such as chemicals, that we need,” said one investor. He claims has been forced to pay salary to his employees for over two months now without operating.
Experts in the banking industry stated that the long awaited LC approval from CBE has shocked the private sector. They think that USD 300 million is a very small amount to be shared among investors who for instance manage over 3,000 employees in a single factory.
The foreign exchange application is said to be in the billions at the CBE but only USD 300 million has been offered as of last week. “The highest amount awarded per applicant is no more than 100,000 USD; many could only get as much as 30,000 to 40,000 USD for their long standing application for foreign currency,” a financial institution source added.
Experts said that some of the companies need more than one billion birr in hard currency (one USD is equivalent to around 27.5 birr) for a single industry, and the current forex is allocated to the manufacturing industry only.
Investors in the sector told Capital that the current hard currency allocation will only allow their plants to run for not more than two weeks.
“What is happening today is  that people who rely on imports for their primary business are entering the export business simply to secure foreign currency, which they can use for their imports,” a financial sector expert said.
“This dire need has led to corruption in the banking sector because people are selling their forex for at least 5 birr per dollar in addition to the standard exchange rate. People with dollar accounts in the country are said to be selling their foreign currency just like on the black market,” he added.
Investors say that the hard currency shortage is affecting the entire economic structure. “The shortage of inputs has forced us to operate under capacity which has escalated the production cost,” a manufacturing plant owner told Capital.
“We are running up to ten percent of our capacity, it is better if we at least run at half of the capacity,” he added.
Experts said that the current LC approval from CBE would allow factories to run from one to ten percent of their actual capacity.
“The production cost for a factory run at ten percent capacity or 100 percent is similar since it uses the same machines, manpower, energy, spare parts, bank interest and other operational expenses, that lead to high production cost when companies run under their capacity and this makes the end product very expensive,” they said.
“As a state we are losers if we do not operate our industries at least by 75 to 50 percent of their capacity,” an expert said.
Producing under capacity will create high inflation. Meanwhile the central bank has taken several measures to reduce the money circulation from the market. It introduced various policies and rules like the recently applied directive that forced the outstanding loan disbursement of banks to grow by only 16 percent compared with the performance a year ago.This occurred after the devaluation that the government applied on October 11 to control potential inflation that might follow the reduction of birr value by 15 percent against major hard currencies.
At the same time experts argued the devaluation is being implemented at the wrong time. “It has been applied when there are not sufficient resources or inputs for industries,” said an economist requesting anonymity. He argued that devaluation would work when there are ample inputs or resources like intermediate goods and capital goods in the country. “The manufacturing industry that engages in import substitution can cover about 60 percent from local sources because the resources from local sources are very limited. The balance of resources may still need hard currency to import,” he added.
Effect on industries
“The country is experiencing a dire problem, business is really strangled,” said Zafu Eyesuswork Zafu, founder of the United Bank and the United Insurance Company.  But none of this is a surprise; it has been forecasted for a long time now, he said.
Many businesses are now returning back their licenses, as they are not able to sustain the situation, according to the financial expert. “This situation is symptomatic of a very critical juncture in Ethiopia’s foreign exchange situation,” Zafu said. It is very sad and cannot continue like this. It is very concerning for the country.
Experts said that the underproduction in the manufacturing sector may not only influence the market price but can also affect the country’s general economic activity.
Company owners said that they are undertaking their business with a large amount of capital they have secured from financial firms. “If we cannot manage the business as per the expected capacity the effect will force us to fail to settle the huge amount of bank loans,”an expert on business administration explained.
The expert said that the supply of capital goods has been suspended in the past several months which affects the supply of intermediate goods from heavy industries for some factories, including small scale industries that use what they make as an input for their final product.
“It will hence be difficult for manufacturers to settle their debt without production,” he added. He explained that this would force banks to foreclose on the industries but they won’t get potential buyers because there will not be a capacity to buy such kind of industries and  no one will be interested since the situation would be similar for the new owners.
If banks are unable to collect loans, financial institutions could end up operating in the red. If industries that owe a lot of money to banks run under production it will transfer to an industry crisis – financial crisisand country level economic crisis  in the near future unless the government provides adequate attention and solutions for the situation,” experts said.
“Besides effects on companies, the government’s tax collection would be significantly affected because most of the manufacturing industries contribute significantly to the economy,” a person who manages over ten businesses said.  “The effect is not only seen in the manufacturing sector; it has also been observed in other areas; for instance, if you see the number of companies that are not renewing their business licenses the number is not small,” he noted.
“The government has to give recognition to the private sector and facilitate conditions as one of the economic pillars for the country; the same attention that it gives industries,” a part-time management lecturer and business owner said.
Recommended solutions
Most experts and the private sector actors agree that the current challenge may continue at least for the coming couple of years unless the government takes immediate action.
“The situation is so bleak there doesn’t seem to be any light at the end of the tunnel,” Zafu opined.
He said that the solution to start with is for the government to support the private sector development and make it a partner. “Its role (private sector) is minuscule today. It needs to be supported to enter the export business,” he added.
The private sector has played a significant role in boosting the economy and creating more jobs, in this regard it shares the government’s burden.
An expert in the manufacturing sector also claimed that the public projects are taking the major portion of the regular hard currency earnings of the country. “As we understand most of the public projects are not finalized as per the schedule or with very significant delays, while they have consumed an overwhelming amount of capital resources,” the expert said.
He recommended that the government evaluate its policy on public projects and reconsider the expenditure and allocation of hard currency based on the required priority.
“It (Government) could postpone some of the projects and sustain the private sector before the current hard currency problem transfers to a bigger crisis,” he recommended.
“I have always said you cannot do everything at the same time,” Zafu told Capital. “As the old saying goes, ‘you do not try to go up two trees because you have two legs.’”
Zafu explained that the public projects have played a major role in the economic growth that the country registered in the past, but the private sector that has the capacity to contribute its part is not getting the required attention.
“State led projects such as in the energy sector contribute significantly to the country and economy but it would be difficult for the government to run all of them on its own. We believe that the government has to give a stake in the economic growth to the private sector,” he said.
Experts said that the government needs a policy shift to settle challenges on hard currency earnings and disbursement. They say the recent CBE hard currency distribution is ‘peanuts’ compared to the demand.
If the government can’t postpone some of its projects it could also look at other options based on other countries’ experiences.
Experts also argued that the government’s behavior of getting involved in different economic areas has to be stopped. “It has an interest to engage in all areas of investments like the assembly of electronic materials and some other sectors that only need a little effort and can be handled by small scale industry operators,” the business administration expert explained.
An economic expert gave the example of Turkey. “When turkey faced a crisis in 2001 it used the resources from the International Monetary Fund to recover again. Ethiopia should use such kind of sources instead of retreating,” he said.
The government is not afraid to negotiate about such kind of capital injection from international sources, according to experts in the manufacturing industry. “It’s all about negotiation and coming up with a better understating with international financers to use foreign money instead of getting into a crisis,” the economic expert added.
Sources said that recently some international financial firms have approached the government to provide credit to alleviate the hard currency shortage but the government’s response is unknown.
Most experts and business operators also place a priority on political stability. They said that the recent instability has played a crucial role in slowing down the business transactions and affecting the economy.

Oromia International Bank offers 26.6mln birr for single condo shop

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Oromia International Bank, which participated in the 40/60 condo shop tender offered 171,005 birr for one square meter to buy 155.9 square meters of land for a single shop located at Senga Terra. The bank will pay 26.659 million birr to the Addis Ababa Saving House and Development Agency after it signs the contract. This price is the estimated cost for the entire building.
Selmawit Kahessay offered the second highest amount at the tender by offering 171,001 birr per sqm to buy two condo shops in Senga Terra which have areas of 108.7 and 86.7 square meters. Selamwait will pay 33.4 million birr to the Enterprise for the two shops.
The first of its kind 40/60 condo shop tender was opened from last Tuesday through Thursday and attracted 4,200 people. However, only 858 of them made actual bids on the condo spaces.
A total of 305 condo shops were prepared for tender. The floor price was 19,634 birr per square meter and the minimum price given at the tender was 19,673 birr per square meter.
Most of the winners offered between 30,000 to 40,000 birr per square meter. Some of the vhighest prices were offered by the banks.
The shops are located in G+12 and G+19 buildings in Senga Terra and Crown sites on the ground, first and second floors.  From the shops 110 of are found in Senga Terra and the remaining are in the Crown sites.
They are from 62 to 155sqm and have communal toilets, marble stairs and emergency exit doors.
A water tanker which can hold 300 liters, a common satellite antenna, an eclectic and telecommunication line are also being installed in the shops.
The area also has a parking lot for 80 vehicles on each block. This shops were constructed together with the 972 houses that were recently transferred to the winners of the 40/60 condos.
Currently, 39,000 condominium units are under construction on 12 sites and 18,000 are expected to be completed in one year. They are located in Gerji, Bole Bulebula, Hayat Meri and Summit. More than 139,000 people are on the list for these houses. Last week Capital reported that Ambasel Trading House PLC, a subsidiary of TIRET development organization, which exports agricultural products, offered the highest price,72,800 birr per sqm, during a tender auction for A 20/ 80 condo shop located at Ledeta.