Abyssinia Business Network ABN MARCH 2020

60Years

CoKcaee-pCsola Photo by Sol Image

Daryl Wilson Refreshing

Managing Director (CCBA)

2 nd YEAR NO 26 መጋቢት ወር 2012 March 2020

Ethiopia 50.00 birr , USA 5.00 $ , Europe 5 .00 Euro ,
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ETHIOPIAN CARGO EXPRESS SERVICES
YOUR QUICK AND EASY SOLUTION!

www.ethiopianairlines.com/cargo

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EDITOR IN CHIEF

Aklile Tsige
CONSULTANCY

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CONTENTS

Current Petroleum

16 06KeCeopscRae-fCreoslhain: g

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Coca-ECxcolulsaiv:e

Keeps Refreshing

By Aklile Tsige

Did you know? The first servings of Coca Cola were sold for 5 cents per glass. During the first year, sales
averaged a modest nine servings per day in Atlanta. Every day, people all over the world drink 1.9 billion
servings of Coca-Cola between them. It is, by some measures, the most widely distributed product in history.

The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200
countries and territories. In addition to the company’s Coca-Cola brand, its portfolio includes AdeS, Ayataka,
Costa, Dasani, Del Valle, Fanta, Georgia, Gold Peak, Honest, innocent, Minute Maid, PowerAde, Simply,
smart water, Sprite, vitamin water and ZICO.

The brand’s humble, up-by-the-bootstraps origin story, its history of innovation in both marketing and
technology, and its close association with American men in uniform have made Coca-Cola virtually synonymous
with America’s image overseas. Coca-Cola has been operational in Ethiopia since 1959 opening three factories
in three parts of the country: Addis Ababa, Dire Dawa and Bahirdar. ABN Editor-in-Chief Aklile Tsige sat
down with Daryl Wilson, Managing Director Coca- Cola Beverages Africa (CCBA) Ethiopia to ask some
questions on the company’s overall operation while compiling reports from other sources, including Company’s
Communications Department.

06 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Abyssinia Business Network/ABN/ crew has been to the first Coca Cola factory in the capital Addis Ababa
in amidst of global pandemic. We witness the promising and obligatory measure being taken against the
global health challenge corona virus aka Covid19. A health professional with a thermometer diagnosing, and
another person providing sanitizer to three of us: the reporter, cameraman and the driver. We felt very safe
to enter into a small meeting hall we conducted an exclusive interview with Daryl Wilson.

“It’s really a tragedy to what’s happened to the world. For a couple of months we, as a company, have
been seriously taking the responsibility to prevent our employees from being infected with the virus,
COVID 19.” Said the Managing Director, adding that the company is taking precaution through availing
sufficient sanitization and testing materials and equipment.

Photo by Sol Image

Throwback partner and bookkeeper, Frank M. Under Mr. Candler’s leadership,
Robinson, is credited with naming distribution of Coca Cola expanded
the beverage “Coca Cola” as well to soda fountains beyond Atlanta.
History has it that Coca-Cola began as designing the trademarked, In 1894, impressed by the growing
in 1886 when the curiosity of an distinct script, still used today. demand for Coca Cola and the
Atlanta pharmacist, Dr. John S. desire to make the beverage
Pemberton, led him to create a Prior to his death in 1888, just portable, Joseph Biedenharn
distinctive tasting soft drink that two years after creating what was installed bottling machinery in
could be sold at soda fountains. He to become the world’s #1-selling the rear of his Mississippi soda
created a flavored syrup, took it to sparkling beverage, Dr. Pemberton fountain, becoming the first to put
his neighborhood pharmacy, where sold portions of his business to Coca Cola in bottles.
it was mixed with carbonated water various parties, with the majority
and deemed “excellent” by those of the interest sold to Atlanta Among the biggest challenges for
who sampled it. Dr. Pemberton’s businessman, As a G. Candler. early bottlers, were imitations of

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 07

Photo by Sol Image the time. The bottlers agreed that
a distinctive beverage needed a
standard and distinctive bottle, and
in 1916, the bottlers approved the
unique contour bottle. The new
Coca Cola bottle was so distinctive
it could be recognized in the dark
and it effectively set the brand apart
from competition.

The contoured Coca Cola bottle
was trademarked in 1977. Over
the years, the Coca Cola bottle has
been inspiration for artists across
the globe -a sampling of which can
be viewed at World of Coca Cola in
Atlanta.

The first marketing efforts in Coca
Cola history were executed through
coupons promoting free samples
of the beverage. Considered an
innovative tactic back in 1887,
couponing was followed by
newspaper advertising and the
distribution of promotional items
bearing the Coca Cola script to
participating pharmacies.

Fast forward to the 1970s when
Coca Cola’s advertising started
to reflect a brand connected with
fun, friends and good times. Many
fondly remember the 1971 Hilltop
Singers performing “I’d Like to
Buy the World a Coke”, or the
1979 “Have a Coke and a Smile”
commercial featuring a young fan
giving Pittsburgh Steeler, “Mean
Joe Greene”, a refreshing bottle of
Coca Cola.

The 1980s featured such
memorable slogans as “Coke is
It!”, “Catch the Wave” and “Can’t
Beat the Feeling”. In 1993, Coca
Cola experimented with computer

08 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

animation, and the popular “Always investing in Africa for 90 years, CCBA is pursuing an ambitious
Coca Cola” campaign was launched since 1928, and is present in every growth strategy that is aligned
in a series of ads featuring animated African country. with The Coca-Cola Company’s
polar bears. Each animated ad in the 2020 Vision and which is
“Always Coca Cola” series took 12 CCBA - headquartered in Port supported through investment in
weeks to produce from beginning to Elizabeth, South Africa - boasts manufacturing, sales, distribution
end. a diverse pan-African footprint and marketing. It is a world class,
with more than 37 bottling plants customer-orientated, socially
The bears were, and still are, a servicing over 600 000 outlets that and environmentally conscious
huge hit with consumers because of serve a combined population of fast-moving consumer goods
their embodiment of characteristics over 300 million people across the (FMCG) company.
like innocence, mischief and fun. continent.
A favorite feature at World of Coca Sales and distribution excellence
Cola is the ability to have your photo Coca-Cola Beverages Africa are the company’s core strengths
taken with the beloved 7′ tall Coca serves 13 countries in sub-Saharan and employees conduct
Cola Polar Bear. Africa: South Africa, Ghana, themselves with the utmost
Kenya, Ethiopia, Mozambique, integrity for shared value and
Coca-Cola Beverages Africa (CCBA) Tanzania, Uganda, Namibia, greater good. The company’s
is the 8th largest Coca-Cola bottling Comoros, Mayotte, Eswatini, vision is to refresh Africa every
partner worldwide by revenue and Botswana and Zambia. The day and make the content a better
the biggest on the African continent, company directly employs more place for all, an inspiration that
accounting for about 40% of all than 16 000 people and enjoys the is driven by engaged, motivated
Coca-Cola volumes sold in Africa. number one market position in and capable employees.
The Coca-Cola Company has been most of these territories.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 09

Coca-Cola in

Eth iopia

According to the vision statement the right way by following
of the company, Coca-Cola company’s values and working
Beverages Africa (CCBA) aspires toward solutions benefit the
to refresh Africa every day and to company.
make the continent a better place
for all. Its contribution as the “At CCBA, we are confident
Coca-Cola system in Ethiopia is that we will reach this goal well
very massive and significant. in advance of the global target
date and we are also able to
Coca-Cola Beverages Africa support the creation of small
(CCBA) in Ethiopia operates business and employment
the East Africa Bottling Share opportunities as we increase
Company (EABSC) as well as our effort and investment.”
Ambo Mineral Water Share
Company (AMWSC). Daryl Wilson, Managing
Director Coca-Cola Beverages
EABSC has three plants in Addis Africa (CCBA) Ethiopia
Ababa, Dire Dawa and Bahir Dar stated that Coca-Cola entered
and AMWSC has one plant in Ethiopia six decades ago and
Ambo. has since created about 2 100
direct and more than 50 000
Apart from refreshing Ethiopians indirect jobs in the country
with quality beverages for the and Ethiopia boasts the
past 60 years in Ethiopia, EABSC second-largest population on
aims to create greater shared the African continent. While
opportunity for the business and consumption of soft drinks
the communities it serves across is low compared to major
the value-chain. markets, demand is expected to
grow as the middle class rises
The company’s sustainability and consumers are empowered
narrative states that shared with spend.
opportunity is more than just
money, it’s about a better future The Managing Director
for people and their communities, indicated that since 2010,
adding that the company holds CCBA has invested an
the belief that doing business estimated $150 million in

10 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Ethiopia. The business contributes “At CCBA, we are confident
an estimated $217 million to the
economy annually in salaries, taxes,
manufacturing, distribution and local
shareholder profits.

Daryl Wilson further noted that in that we will reach this goal
July 2020, an announcement was well in advance of the global
made of a $300 million investment target date and we are also
over the next five years to expand able to support the creation
CCBA’s operations in Ethiopia. An
immediate investment was planned of small business and
for 2020 of more than $70 million and
the balance of the investment will be
to build a fourth plant in Sebeta, 25km
outside Addis Ababa with a fifth plant
planned at Hawassa.

This includes specifically making employment opportunities as
investments in response to and
in support of changing consumer we increase our effort and
preferences such as the launch of
Zero variants in Coke, Sprite and ”investment.
Fanta as well as Fanta Red Apple with opportunities as we increase our water resources through country
reduced sugar with plans to introduce effort and investment. We want projects that reduce water use in
additional categories of beverages to support local Governments’ its operations, protect local water
into the future. waste management objectives resources and provide safe, clean
by stimulating a green economy drinking water to communities
Furthermore, through its plastic waste where we operate.” Said Wilson. in need. As part of the world’s
collection and recycling initiatives, leading beverage company, CCBA
CCBA enables a green circular Also, as the first ingredient in most has a responsibility to use water
economy by training unemployed of its beverages, safe, clean water is as respectfully and efficiently
women and youth to establish critical to the long-term success of as possible. The company is
collection enterprises which in the CCBA business. Furthermore, continuously looking for new ways
turn grows plastic collection and a number of the countries in to reduce water use in its operations,
recycling infrastructure and supports CCBA are water-stressed and in while treating its own wastewater to
the development of a circular value this context, the company takes its the highest standards.
chain. This is a key component of the water stewardship responsibilities
objective of The Coca-Cola Company very seriously. Together with The Coca-Cola, as a socially responsible
and its bottlers to lead industry with Coca-Cola Company, CCBA are company, has also been empowering
a bold, ambitious global goal: to help leaders in using water responsibly women from communities across its
collect and recycle a bottle or can for in operations and giving it back to markets through the 5by20 program.
everyone it sells by 2030. communities. This global initiative aims to help
five million women entrepreneurs
“At CCBA, we are confident that we The company continues to manage within the Coca-Cola value chain
will reach this goal well in advance
of the global target date and we are
also able to support the creation of
small business and employment

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 11

60
overcome barriers as they grow or establish businesses by
2020. 5by20 programs specifically offer women business
owners access to business opportunities, educational
courses, financial products and mentors. Since 2010, 159

We are very happy that we have848 women have been enabled in this way across CCBA

”been in Ethiopia for the lastas the company’s contribution to the global goal.
“We are very happy that we have been in Ethiopia for

sixty years, and we strongly feelthe last sixty years, and we strongly feel that we spend
our money in the right country. I think this is just our

that we spend our money in thedemonstration of efforts in contributing share to the
ongoing reform in the country.”
right country. I think this is just
According the Managing Director, CCBA, together with ”

our demonstration of efforts inThe Coca-Cola Company, is a leader in using water
responsibly in our operations and increasing reliable

contributing share to the ongoingcommunity access to good, safe water. It continues to
manage water resources through initiatives that reduce
water usage in our operations, by protecting local water reform in the country.
resources and providing safe, clean drinking water to

communities in need.

Through Coca-Cola’s Replenish Africa Initiative (RAIN),

12 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

getting Image

in partnership with The Coca- recycling of PET by creating the opportunity: the company meets the
Cola Foundation (TCCF), we platform that will also directly needs of its consumers, develops
have invested over $670 542 benefit women collectors and its retailers and distributors, local
which positively impacts 148 recyclers.” Noted the Managing suppliers benefit, jobs are created
454 people including families Director. in communities where there weren’t
working in the agricultural any before and its shareholders
sector by giving them access As part of its support in education, benefit from the increased viability
to water and sanitation services the company has built two state- of its operations and the security of
in Benishangul-Gumuz and of-the-art school blocks at Shimbit their investments.
the SNNP regions. By the end Elementary School, Bahir Dar, at a
of 2020, over 332 000 people total cost of $220,000, benefitting “We are very happy that we have
will have benefitted from the 5 1600 students. A similar school at been in Ethiopia for the last
projects we have implemented the ongoing new factory at Sebeta is sixty years, and we strongly feel
to date, it was learnt. under construction at a total cost of that we spend our money in the
$236,000 following consultations right country. I think this is just
With regards to environmental with the Sebeta community to our demonstration of efforts in
understand the community’s needs. contributing share to the ongoing
protection endeavours, reform in the country.” Said
Moreover, the company has Wilson.
CCBA in Ethiopia took the invested $31,000 in a bursary
programme for outstanding Well-known that there are villages
initiative in mobilising relevant university students from low named after the company’s product-
income families and run a Graduate Coca cola in Addis Ababa and
stakeholders to come together in Training (GIT) programme for Dire Dawa. This shows that the
the past 11 years, benefitting 275 company has left foot prints within
in partnership to establish an employees to date. communities it has been operating
with. “We are so proud and happy
NGO called PET Recycling For CCBA it’s about shared to have those villages named after

Community Organisation

(PETCO). “We have supported

the establishment of PETCO

by providing $150 000 initial

funding. PETCO is aimed at

facilitating the collection and

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 13

one of our products; it’s very fantastic. I don’t think there
are other places we are operating in that are named after the
product.” He said and expressed hopes that there will be more
villages to be named after our product in the next sixty years.

With regards to the recent visit paid by heads of Coca-Cola
Company to Ethiopian Premier Abiy Ahmed (PhD), Wilson
recalled that James Quincy Chairman and CEO of the Coca-
Cola Company and Jacques Vermeulen CEO of Coca-Cola
Beverages Africa exchange views with Premier Abiy on
support of the Ethiopian Government Reform Program and
the company’s interest to expand its investment in Ethiopia,
adding that Abiy appreciated, and welcomed the initiative as
well as commended the company’s move to expand its social
responsibility through backing the city development works
like the Entoto Parks and Beautifying Sheger projects.

Regarding challenges the company is facing, the Managing
Director noted that Ethiopia is not unique as there are
challenges all over the world, and the company understands
African challenges ranging from power and water to forex
shortages. “We are closely working with the Ministry of
Finance and Ministry of Revenues, and establish a good
relationship to deal with major challenges.” Wilson said.

A document obtained from the Public Affairs and
Communications Department, Coca-Cola Ethiopia disclosed
that tax policy uncertainty as well as foreign currency
shortages are a concern for our business. For example, the

14 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

level of excise tax (as a % of revenue) The Coca-Cola Company and CCBA have
makes Ethiopia (25%) the market with the clearly demonstrated its commitment
highest excise across the countries where to investing in Ethiopia as well as its
Coca-Cola Beverages Africa operates (13 confidence in the growth of the Ethiopian
African markets in total while Uganda economy. However, the quantum of its
(11%), Kenya (8%) and Tanzania (7%). investment commitments was decided
upon based on its projected returns under
Prior to the new excise tax framework very different circumstances, i.e. prior to
that was adopted in February this year, the the new excise tax as proposed at 25% of
excise tax in Ethiopia was based on 30% revenue.
of cost of production (which translated
to 14% of revenue).” While we welcome While closing his remarks Wilson said,
the new framework, which is based on “The 60-year-journey of the company
revenue (which is simpler to administer and in Ethiopia has been amazing; we have
improves tax collection efficiencies), the witnessed continued growth and continued
new framework represents an increase to investment. As I said earlier, our 300
around 25% of revenue for our business.” million USD investment will bring about
Said Wilson. continued development.”

This, according to the company, has a Today, Coca-Cola is sold virtually
significant impact: If the company does everywhere in the world. Researchers
take a price increase commensurate with an working at the South Pole can enjoy a frosty
attempt to mitigate the increase in tax, we Coca-Cola in the sub-zero temperatures.
anticipate a volume loss of at least 15% in Mountain climbers in the high Himalayas
the first year. It does not welcome the risk can stop for a Coca-Cola at their basecamp
of a 15% volume loss since the impact on 20,000 feet above sea level so high that
the business be a restructure with a possible breathable air itself is a rare commodity.
negative impact on direct permanent jobs
lost and additional indirect job losses in our Here in Ethiopia Coca-Cola is said to
value chain. While the excise reduction on be one of the most loved and wanted
sugar does cushion the impact slightly, the refreshing soft drink people of all ages
net impact is still of great concern. anxious to drink whenever they are badly
in need of relaxation and enjoyment. It’s
As far as short-term and long-term plans of everywhere in cafes, restaurants, play
the company is concerned, Wilson indicated fields, gymnasiums, star hotels, lodges,
that the Company will keep expanding, resorts, beaches and remotest areas. The
expanding and expanding. It will get in drink not only helped to alter consumption
all corners of the country to invest in the patterns, but attitudes toward leisure, work,
community we are working with, providing advertising, sex, family life, and patriotism.
new consumption and beverages, and
seeing into a plastic bottle-free country.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 15

Overview Ethiopian
Natural
Gas and Petroleum Industry

By Samuel Tekleyesus getting Image metallic minerals, particularly in
terms of emphasizing the export
The Oil and Gas sector government has now established domestic production. The Oil and
in Ethiopia, currently a national Petroleum and Natural Natural gas sector is governed by
at a very early stage of Gas Development Enterprise, to the Ministry of Mines, Petroleum
development, shows good potential further develop the sector and the and Natural Gas and the unit
for development on the long-run. government’s stake in it. dedicated to manage the sector
Exploration for oil and natural faces capacity constraints. The
gas is currently taking place in Development of the oil and sector will benefit from strategies
a number of areas in Ethiopia, gas sector in Ethiopia has the and policies to implement the
including in parts of the Ogaden prospective to transform the broader vision for the sector. It
Basin in Southern Ethiopia, Afar in country’s economy. In terms of is also currently governed by
Northeastern Ethiopia, Southeastern national economic planning and proclamations and regulations
Ethiopia, Afar in Northeastern performance, the Government that will benefit from a revision
Ethiopia, Southern Rift Basin, the of Ethiopia tended to aggregate
Gambela basin, the Mekele Basin, petroleum with industrial and
Metema Basin, the Abay Basin in
Northwestern and Main Ethiopian
Rift Basin regions. Oil and natural
gas discoveries in neighboring
countries as well as the Calub and
Hilala Natural Gas discoveries in the
Ogaden region have created great
interest in the above-mentioned
regions under exploration, and the

16 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Ethiopia spends $2.5
billion annually on
imported petroleum
products

to align them to global good practices. an export, like other minerals, Liquefied Petroleum Gas
it could be a source of foreign (LPG) and gas liquids offers
Ethiopia is not dependent upon the exchange. Ethiopia spends $2.5 benefits by substituting
development of natural gas for the billion annually on imported for the use of wood as a
generation of electricity. However, petroleum products, which is 20 fuel. This can help reduce
the production of domestic petroleum percent of the country’s foreign deforestation in Ethiopia
resources can be significant for exchange. Development options where approximately 90
Ethiopia’s economy either by being can be mutually exclusive and percent of 24 million cubic
used domestically, or as an export. decisions should be based on meters of the nation’s annual
Used domestically, natural gas and optimizing the benefit to the wood production is used for
gas liquids can substitute for imported country. fuel and charcoal making.
fuels and be utilized as a feedstock
for fertilizer and petrochemicals. As Environmentally, the availability
of domestically produced

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 17

The Petroleum Industry

Ethiopia, at the moment, is largely
an importer of petroleum products.
White and black petroleum
products are imported directly by
the Ethiopian Petroleum Enterprise
(EPE) through third party suppliers.
Upon receipt from third party
suppliers, EPE stores the products
at Horizon Terminal in Djibouti and
then distributes the different grades
mainly Gasoline (Benzene), Gas
Oil (Naphta), Kerosene, Light fuel
oil, Heavy fuel oil and Jet fuel to Oil
Companies through a fixed margin
structure set by the government.
In addition, EPE imports Gasoline
(Benzene) from Sudan. For the
supply of Gasoline in Addis Ababa,
EPE has made an agreement with
Nile Petroleum, a Sudanese Oil
Company operating in Ethiopia,
where the latter conducts blending
of Gasoline with Ethanol (E5) at its
depot in Sululta and distributes E5
to Oil Companies.

Fuels pricing and revisions are activity coupled with increased
made by the government on a government spending in the areas
monthly basis. Lubricants and of infrastructure, power, mining
greases, however, are being directly and other sectors continues to
imported by the Oil Companies with further expand the demand for
the intervention of government in petroleum products.
setting prices on a quarterly basis.
The overall annual consumption For long, few multinational oil
of fuels in Ethiopia is estimated to companies with little competition
exceed 2 billion liters, nationwide to satisfy the increasing demand
Lubricants and greases consumption had controlled the petroleum
is also over 25 million liters. The
consumption of both fuels and
lubricants is consistently increasing
by 10% on a year on year basis and
the trend in growth is expected to
continue in a similar pattern over
the next years. Increased economic

Abyssinia Business Nework መጋቢት ወር 2012 March 2020

in economic growth and government’s plan to invest
millions of dollars in infrastructure, hydropower
projects, mining and others sectors, the current gaps
between demand and supply in the petroleum sector
is wide.

Ethiopia is also believed to hold a huge potential
for energy and mining. The nation’s current efforts
in the areas of hydroelectric power projects and
exploration of Oil and Gas are clear testimonies of
the government’s determination to unleash its natural
resources. Few local and a number of international
companies are reported to have been engaged in
petroleum exploration in various parts of the country.
There is optimism on the part of oil companies and
the government for increasing participation and
transition from exploration to development and
production.

The gas reserve in Calub and Hilala localities is also
estimated at 118 billion cubic meters (4TCF). The
gas reserve was first discovered by an American oil
company, Tenneco, in 1972. Crude oil reserve was
also discovered in the Hilala block but the reserve
was non-commercial. The Russian company,
Soviet Petroleum Exploration Expedition (SPEE),
confirmed the gas reserves in Calub and Hilala in
the 1980s.

industry. Still currently, there are very few getting Image
Oil Companies engaged in the petroleum Abyssinia Business Nework መጋቢት ወር 2012 March 2020
business in Ethiopia. As compared to
neighboring countries, Ethiopia has
fewer numbers of Oil Companies with
less competition. Despite persistent and
increasing growth in the demand for
petroleum products, the network expansion
and supply by existing Oil Companies is
not adequate. In view of the current trends

Current Petroleum
Exploration and

Development Activities

Ethiopia has begun selling its gas getting Image
produce in the local market with a test
production of about 1,650 barrels of construction of pipeline for
crude oil.The crude oil we produced the natural gasto Djibouti Port.
as a test is discovered near Hilala gas Accordingly, the government
field.The Chinese Company Poly- plans to earn annual revenue
GCL Petroleum Investment Limited of $8 billion from natural gas
is responsible for the extraction and exports
production of both crude oil and for the
Additional exploration for
20 Abyssinia Business Nework መጋቢት ወር 2012 March 2020 oil and natural gas is taking

Companies holding PPSAs

Company No. of Petroleum Status
Blocks Operations
Development Drilling
POLY-GCL 2 Development Drilling
6 Exploration Geo
Africa Oil Corp. 1 Exploration Geo
South West Energy Exploration Drilling Program
Tullow 4 Exploration Drilled 2 Wells
Gazprombank (GPB) 1 Exploration Drilled 2 Wells
1 (large) Exploration Development Gas Discovery
New Age Drilling Program
Falcon Petroleum 2 Exploration
Delonex Exploration
3
3

Source: World Bank Report 2016

place in parts of the Ogaden Basin Tullow Oil, Pexco Exploration (east
in Southern Ethiopia, Afar in North- Africa) N.V. and Afar Exploration.
Eastern Ethiopia, Southern Rift Basin, Several firms have already acquired
and Main Ethiopian Rift Basin regions. licenses to explore more than 40
A number of international and few local blocks throughout Ethiopia in the
companies are currently undertaking past four years, the vast majority
petroleum exploration in various parts of them in the southeastern Somali
of the country. Oil companies actively Region. Currently eight companies
involved in the petroleum exploration hold Petroleum Production Sharing
and development undertakings are: Agreement (PPSAs).
Africa Oil Ethiopia B.V. (Subsidiary of
Africa Oil Corp.), Calvalley Petroleum
Inc., Epsilon Energy Ltd., Falcon
Petroleum Ltd., Southwest Energy,

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 21

Natural Gas Development

The Calub and Hilala fields have natural gas Main Ethiopian Rift Basin region getting Image
reserves of 4.0 TCF and 13.6 million barrels after an agreement was signed
of natural gas liquids. These fields were between Africa Oil Company and
discovered in 1973 and 1974 respectively. the Ministry recently.
Currently, the PPSAs covering these fields are Even though more mapping
awarded to POLY-GCL Petroleum. African activities were carried out and still
Oil, another contractor, assigned some of its going on there is huge opportunities
blocks to other companies when exploration for investment (exploration,
showed the presence of natural gas. The production and transportation) still
government has announced that there are available in areas like:
natural gas reserves in other places.
• The greater Afar Block
Unlike oil, in order for gas discoveries to • The Mekelle Basin
proceed to development they require markets • The Segen rift basin
and facilities to process and transport it to • Abay basin
markets. A framework agreement was signed • The Ogaden basin
between the Governments of Ethiopia and
Djibouti to construct a cross-border pipeline Petroleum Agreement Terms
from Ogaden basin to the Gulf of Aden. The
governments also signed a Heads of Agreement Petroleum agreement will be in
with POLY-GCL Petroleum for the operation the form of model production
of the pipeline. The company will also build sharing agreement of 1994 or
gas processing and LNG facilities in Djibouti. modern concession contract to be
signed between the government
Petroleum Exploration Activities of Ethiopia, represented by the
ministry and a contractor.
The Government of Ethiopia represented by
the Ministry of Mines, Petroleum and Natural
Gas petroleum exploration and development
agreements with different International Oil
Companies in two ways. One is when the
Ministry signs “Petroleum Production Sharing
Agreement” (PPSA) which could last up to
25 years and the other one is a “Joint Study
Agreement” (JSA) for a maximum of two
years. A Joint Study Agreement on geological
and geophysical survey is underway in the

22 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Petroleum Legislation or modern concession agreements,
which will serve as basis for the
According to Ethiopian law, negotiation, are to be prepared by
petroleum operations shall be the ministry. The Ministry chooses
undertaken in accordance with the appropriate type of petroleum
petroleum Agreement. Petroleum agreement, and it provides for the
Agreement is generically details of the terms of the model
described as a contract or agreements. The proclamation
other arrangement between the concerning mining and petroleum
Government and a contractor to operation are presented as follow:
conduct petroleum operations.
Model Petroleum Agreements, • Mining Operations
including production sharing Proclamation No. 678/2010

• Proclamation N0. 295/1986 of
petroleum
Operations proclamation.

• Proclamati NO. 296/1986 of
petroleum Operations Income
Tax proclamation, amended under
proclamation No. 226/2000.

Income tax for revenues generated
from Mining Operations is fixed
to 25% and is calculated from net
income. The law provides companies
to have free of duties, import, and
export taxes.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 23

24 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

COVID 19CORONAVIRUS
Abyssinia Business Nework መጋቢት ወር 2012 March 2020

IMPACT OF THE

CORONAVIRUS

OGUTBRLOEABKAOLNFDIThe outbreak and spread of UNCTAD’s Top 100, a bellwether of
Coronavirus (Covid-19) will overall investment trends, have issued

negatively affect global foreign statements on the impact of Covid-19

direct investment (FDI)flows. on their business. Many are slowing

By Staff Writer With scenarios of the spread of down capital expenditures in affected

the epidemic ranging from short- areas. In addition, lower profits –

term stabilization to continuation to date, 41 have issued profit alerts

throughout the year, the downward will translate into lower reinvested

pressure on FDI will be -5% to -15% earnings (a major component of FDI).

(compared to previous forecasts

projecting marginal growth in the On average, the top 5000 MNEs,

FDI trend for 2020-2021). which account for a significant share

of global FDI, have seen downward

The impact on FDI will be revisions of 2020 earnings estimates

concentrated in those countries of 9% due to Covid-19. Hardest hit

that are most severely hit by are the automotive industry (-44%),

the epidemic, although negative airlines (-42%) and energy and basic

demand shocks and the economic materials industries (-13%). Profits of

impact of supply chain disruptions MNEs based in emerging economies

will affect investment prospects in are more at risk than those of

other countries. developed country MNEs: developing

country MNE profit guidance has

More than two thirds of the been revised downwards by 16%.

multinational enterprises (MNEs) in

26 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

How will Covid-19 affect FDI strongest in those countries that new investment projects have a long
have been forced to take the most gestation period and a lifecycle that
The economic impact of drastic measures to contain the can span decades, the immediate
Covid-19 will be uneven, with spread of the virus. impact on existing investments
the effects caused by negative and investment projects under
demand shocks concentrated in The outbreak of Covid-19 will construction is likely to be limited.
those economies most severely slow down capital expenditures of
hit by the epidemic, and effects MNEs and their foreign affiliates. Announcements of new greenfield
caused by production stoppages Production locations that are projects (normally reported in
and supply chain disruptions felt closed or that operate at lower UNCTAD’s data for the purpose
especially in economies that are capacity will temporarily halt new of projecting future trends) could
closely integrated in global value investment in physical assets and be delayed. Similarly, mergers and
chains centered around China, delay expansions. acquisitions (M&As) could see a
the Republic of Korea and Japan, slowdown. Like greenfield projects,
as well as South-East Asian Greenfield investment projects M&As are generally long-term
economies. that are already ongoing will also commitments to overseas markets.
be affected by this. However, as Nevertheless, data for February
The investment impact will be
even more concentrated. It will be

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 27

UNCTAD
show a significant drop in the completion rate of Lower MNE profits, lower reinvested earnings
cross-border acquisitions, to below $10 billion
from normal monthly values of $40-50 billion. Apart from the primary effect on FDI of MNEs concretely
delaying capital expenditures, a further (indirect) mechanism
Covid-19 will affect market-, efficiency through which FDI flows could be affected in the coming
and resource-seeking investment alike. period is through lower profits in foreign affiliates leading
Market-seeking investment and FDI projects to lower reinvested earnings, a component of FDI. In the
in extractive industries could be delayed economies most affected by Covid-19, reinvested earnings
worldwide as a result of negative demand make up about 40% of total FDI inflows. (About 50% of
shocks. For now, the demand shock is most profits in foreign affiliates, on average, are retained in the
serious in China; for example, Toyota reported host country.)
a 70% drop in sales in China in February.
The MNEs in UNCTAD’s Top 100 – the largest MNEs
worldwide based on their foreign assets, foreign sales
and foreign employees published annually in the World
Investment Report – are indicative of the impact that
Covid-19 could have on investment trends.

Of the (2019) Top 100, 69 have already made a statement
regarding the impact of Covid-19 on their business. Of those,
41 have issued profit alerts or signaled increased risks, with
10 anticipating lower sales, 12 expecting negative effects on
production or supply chain disruptions, and 19 expecting to
be affected by both.

But the impact is already visible in major The automotive MNEs in the Top 100 appear to be most
markets beyond China as well, especially affected, with all 12 signaling negative implications (8 out
in consumer-facing industries such as travel of 12 due to production or supply chain disruptions). Nine
and tourism, retail and wholesale, and other out of 13 MNEs in the electronic components and equipment
consumer cyclicals. sectors have done the same. Most of the extractive industry
and basic materials and chemicals MNEs, as well as the
The negative effect on efficiency-seeking consumer goods firms in the top 100, have issued warnings
investment in production facilities that are about negative demand shocks.
closely integrated in global value chains
(GVCs) will be concentrated primarily in China To date, concrete profit warnings have been issued by 23 of
and East and South-East Asia at first. However, the Top 100 MNEs as a direct result of the Covid-19 outbreak.
they could rapidly spread outside the region Most concern the consumer-facing firms, indicating that the
through GVC linkages. The transmission will demand shock, for now, is expected to have more direct effects
concern both economies that feed intermediate on earnings than production or supply chain disruptions.
goods and services into China’s exports, and
those that rely on inputs of intermediates from Very few firms in the Top 100 have given specific guidance
China. For example, Fiat Chrysler Automobiles on expected profit impacts. Hon Hai/Foxconn, the electronics
has temporarily stopped production of its Fiat contract manufacturer that supplies major technology firms
500L model at a plant in Serbia due to disruption worldwide and that has significant production capacity in
in the supply of audio system components from China, has so far lowered its expectations for global sales
China. growth in 2020 from 3-5% to 1- 3%.

28 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Covid-19

Looking at a wider sample of the global top 5000 (listed) Downward pressure on FDI: -5% to -15%
MNEs, earnings forecasts for fiscal year 2020 have been
revised down in the last month by an average 9 per cent.

The majority of the top 5000 (by revenues) have had earnings getting Image
revisions since 1 February (until 5 March); expected earnings
were revised downwards especially in the energy, basic UNCTAD’s forecast for the underlying trend in
materials and consumer cyclical sectors; the automotive and the World Investment Report 2019 (confirmed
the travel and tourism industries have been among the worst in the January 2020 Global Investment Trends
hit. Companies in these sectors and industries are normally Monitor) projected a stable level of global FDI
important capital investors. inflows in 2020-2021 with a potential increase of
+5% (relatively marginal for FDI).
The revisions to date are likely to be conservative. For
the moment, the most significant negative revisions in the Based on an expected GDP growth impact of
automotive industry come from parts producers based in -0.5% under a scenario in which Covid-19 would
the most affected areas in South-East Asia, while leading be brought under control in the first half of 2020,
carmakers in developed economies have not yet registered and a potential impact of -1.5% under a scenario
the shock. The negative impact of the virus is likely to spread in which the epidemic continues to afect the
and increase further. global economy throughout the year in line with
projections by other international organizations
Across developed economies, earnings revisions have
been relatively mild to date (table 2). On average, UNCTAD projects a negative impact on global
Japanese companies had a revision of earnings of about FDI flows ranging from -5% to -15% in 2020
9%, in line with the global average; this most probably (with the effect of the demand shock filtering
underestimates the impact on Japanese MNEs given through 2021). This is based on UNCTAD’s
their proximity and GVC integration with emerging forecasting model, early indications from
Asian markets. It should be noted that the numbers monthly transaction data, and estimates of the
are changing rapidly, with revisions for large Japanese potential impact on reinvested earnings.
firms not yet fully reflecting the impact of Covid-19.
For example, Toyota’s reported sales drop in China has Much of the impact will be driven by delayed
not been reflected in earnings forecasts. investment as a result of the global demand
shock. However, significant negative impact will
The share of the reinvested earnings component of FDI result in economies and industries that are highly
for each region, indicative of the potential indirect effect dependent on GVC trade. As such, the Covid-19
that earnings losses could have on FDI. For example, outbreak will potentially accelerate existing
the average -9% earnings losses projected to date for trends of decoupling (the loosening of GVC ties)
2020 could affect 52% of FDI flows (this assumes losses and reshoring driven by the desire on the part of
are spread uniformly across MNE operations; in reality MNEs to make supply chains more resilient.
it is more likely earnings losses would be concentrated
in foreign affiliates in affected areas, further augmenting
the impact on reinvested earnings).

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 29

Initiative Africa:
To Host 14thAIFF

Initiative Africais pleased to inform concerned is focusing on addressing the key drivers of change
bodies that the 14th Addis International Film Festival to engage in exchange of challenges and dilemmas
(AIFF) will be held in Addis Ababa from May 27th related to the issue of human rights and sustainable
-31st 2020.The five-day documentary film festival humanitarian responses to social justice.
presents a selection of over 60 local and international
films, under the theme of human rights and a free The statement also indicates that each year the
world in their different forms taking place at the program highlights the industry’s emerging talent,
Italian Cultural Institute, Alliance Ethio-Française, paying homage to the year’s best documentary films,
Hager Fiker Theater, Hyatt Regency Hotel, the allowing the audience the opportunity to experience
National Archives and Library Agency, and Vamdas thought-provoking and insightful documentary
entertainment. AIFF will have its opening on May cinema that offers unique or controversial perspectives
27, at 5:00PM at the Italian Cultural Institute with the in our world.
presence of invited guests and ambassadors making
the ceremony memorable. It was disclosed that over the past years, hundreds of
award-winning documentary features from the globe
In a statement Initiative Africa sent to ABN, it states have been screened in several cultural centers and
that the documentaries aim to contribute to the cinemas in the capital city, and various local youth
humanitarian efforts to put a spotlight on issues with centers and universities across the country.The event
human rights, discrimination due to gender, women is a promotion of general underutilized standard of
empowerment, children rights, unfair labor practices, practice of documentary filmmaking, production and
racial discrimination and ethnicity. Through the postproduction and advertising of local businesses
screening of relevant documentaries and by convening that have sponsored the film festival.Entrance is free,
discussions among experts and practitioners, AIFF for all screenings and workshops!

30 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

2020
CALL FOR SUBMISSION ARE OPEN
UNTILMARCH 31ST 2020.FOR SUBMISSION/
INFORMATION ABOUT THE FESTIVAL
PLEASE VISITOUR WEBSITE WWW.
ADDISFILMFESTIVAL.ORG OR CONTACT US
[email protected]

What:14th Addis International Film Festival
Where: Alliance Ethio-Française, Hager Fiker Theater,
Vamdas Cinema, American Center National Archives
and Library Agency (NALA), Hyatt Regency Hotel and
Italian Cultural institute in Addis Abeba.
When:May27th -31st 2020

Thank you!

For more information,
Call us: +251-11-662 2640/662 2641+251-
912613572(Ruth Bogale/Festival Coordinator)Email
us: [email protected]@initiativeafrica.
netVisit us: http://www.addisfilmfestival.org

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 31

Logistics challenges Leone, Eritrea and Zimbabwe were
at the bottom 4.

facing eCommerce In most African countries, the result
of the poor road infrastructure is
in Africa heavy traffic jams that lead to delayed
deliveries, canceled orders for the on-
By Josephine Wawira demand services and subsequently
loss of revenue. Alternative modes
According to Euromonitor, the Unsatisfactory National of transport have therefore come
world’s fastest growing economies Address Systems and Transport into play in some markets like
by 2030 will be in Africa. This Infrastructure Kenya and Nigeria, with the use
consequently makes the continent of easy to navigate motorcycles,
the next big e-commerce market. One of the biggest logistics’ popularly known as Bodabodas.
And as this positive narrative hurdles holding back the industry With about 1.2 million motorcycles
continues to place Africa as a top is the lack of proper national in the passenger transport business,
investment destination, the need address systems in most African Kenyan ecommerce companies have
for advanced logistics systems has countries. This, coupled by poor strived to tap into this market by
become inevitable. The growth road networks, make it even harder using Bodabodas to swiftly deliver
of e-commerce will significantly to conveniently deliver products products especially within busy
depend on the quality and efficiency to customers. Consequently, cities.
of logistics networks; from intra and companies have had to rely
cross trade to financial transactions on fairly descriptive addresses “There are huge opportunities for
in payment of goods and services. and landmarks provided by the logistics to grow e-commerce, but
customers during the initial stages few established players exist in the
When writing the African of the online purchase process. The market,” notes Apoorva Kumar,
e-commerce story, I often leap at the delivery persons are also required Jumia’s SVP of Logistics. Present
chance to explore only the enviable to keep in constant contact with in 14 African countries,Jumia is
milestones the continent has made. clients when delivering products, one of the ecommerce players
Nevertheless, there still exist to receive further directions while building logistics and fulfilment
formidable challenges especially in en-route. infrastructures to ease delivery of
logistics, a vital constituent of the products to consumers using both
industry. The African Development While generally Africa’s vehicles and bodabodas.
Bank, in its 2019 African Economic infrastructure lags behind that of
Outlook, notes that “trade costs its counterparts including America Providentially, technology has been
due to poorly functioning logistics and Europe, it is worth of note that a boon to the logistics industry.
markets may be a greater barrier each country has its own value In Nigeria and Kenya, Jumia is
to trade than tariffs and nontariff proposition. In 2018, the World running a well-established system
barriers”. This side of the story Bank’s Logistics Performance using Machine Learning, relying
must also be told; if we are to find Index placed South Africa, Kenya, on GPS enabled delivery apps. The
sustainable solutions to what could Rwanda, and Côte d’Ivoire as the coordinates collected in the first
be the gateway to growing Africa’s top 4 best performing countries delivery are then registered and used
e-commerce by leaps and bounds. in Africa, while Somalia, Sierra in making a logistics network for
future conveyance.

In Rwanda, companies like Zipline
are leading the way in commercial

32 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

getting Image

drone deliveries. While initially What Then, Does the Future of the pie among international
focused on delivering blood to Hold? investors.
remote health centers that are Data by logistics consulting firm
otherwise difficult to reach fast due to Knight Frank, shows that the cost Therefore, for e-commerce
Rwanda’s hilly terrain; it is expected of transportation represents 50% companies in Africa to achieve
that Zipline’s drones will in future to 75% of the retail price of the sustainable bottom-line growth,
be used in other sectors including goods. This alone, underpins the there needs to occur more tech-
e-commerce. Back in Kenya, Astral demand for long-term strategies to empowered handshakes between
Aerial Solutions is using drones the logistics challenges in Africa. multiple service providers across
for among other services, last mile markets. Governments have
deliveries. The company aims to, in From delayed deliveries between the responsibility to create one-
its words, “open up Kenya’s hard to local destinations to sluggish window-policies that empower
reach regions to new and exciting growth of cross-border trade, the digital payment solutions as
business opportunities”. effects are being felt across the well as logistics infrastructure
board. Modern online retailing including road networks, air
The possibilities for a better is headed towards pre-orders, cargo handling systems and
future in logistics, in my view, are requiring mature infrastructure warehouses among others.
endless! And as Apoorva reiterates, for both small and medium
companies cannot solely build a businesses. This will help Similarly, e-commerce and
successful logistics system. “It meet the packaging, storage, logistics powerhouses like Jumia
requires integrating various systems distribution, freight and last-mile- should commit to empower
and partners to create a big enough delivery requirements. Though more upcoming entrepreneurs.
network to serve the growing needs challenging, Africa is a land full They must also use their leading
of the e-commerce consumers,” he of commercial opportunities; positions to continue paving the
says, calling for both private and causing a scramble for a piece way for economic integration in
public partnerships to this endeavor. Africa.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 33

Use of Innovative Technology
in Designing Diverse Tourism
Products

By Josephine Wawira “this is only possible by bringing
the private and public sectors
Investment in new technology provides together in a meaningful way
the tourism sector with opportunities and providing opportunities to
for novelty, aimed at providing a share ideas”.
platform for designing new and
tangible tourism products. Emphasis
goes to integrating innovative
initiatives into tourism management;
instrumental in enhancing full tourist
satisfaction, based on destination
value and quality of service.

In a statement by UNWTO about to reach about 8.9% by end of
positioning tourism in the global 2018. I believe that strategic
innovation agenda, Secretary General use of technology will go
Zurab Pololikashvili noted that “this a long way in enabling the
is only possible by bringing the realization of this forecast.
private and public sectors together
in a meaningful way and providing A case in point is the use of
opportunities to share ideas”. location apps to innovatively
make destinations accessible,
From governments to tourism incorporating online food
entrepreneurs, investors and ordering and efficient delivery
innovators, all stakeholders have a role systems for the catering
and an opportunity to use technology service providers. Not to forget
with an aim to grow the sector. Kenya the use of technologically
is for instance endowed with numerous cognizant OTAs (Online
tourism products. Traditional beach Travel Agents) by hoteliers
tourism, exotic safaris and the budding and airlines to increase online
MICE business tourism etcetera, visibility, provision of quick,
the package is diverse while still comparative and seamless
possessing room for enhancement. ticketing, booking, check-

”Tourism contributed 3.7% to the in and check-out processes.
country’s GDP in 2017 and expected getting Image

34 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

”Innovative Technology

Image by Rawpixel.com

There exists numerous areas in the traditions, and history. This will
entire value chain where innovative ensure long term sustainability and
technologies can and are already profitability of the sector.
impacting the demand, and now is the
opportune time for tourism stakeholders The use of technology to design diverse
to invest in innovative solutions in order and innovative tourism products
to reap big from the tourism gold mine. will no doubt play an imperative
role in positioning Kenya as a leader
The main objective is designing and in tourism not only in Africa but
implementing initiatives that support worldwide. International arrivals to the
the growth of the tourism industry. country will as a result keep growing
Consider options such as the use of to surpass the 1.4 million in 2017, and
big data and digital services to market tourism expenditures will exceed the
the diversity of the tourism products 1.2 billion US Dollars earned in 2017.
like promoting a destination’s culture,

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 35

Ethiopian Wins
International Air

Cargo Marketer

of the Year’ Award

ET Corporate Communications

At the 2020 STAT International catalyzing multi-faceted growth in
Award for Excellence, Ethiopian all the regions we serve. We have
Cargo & Logistics Services won the been investing heavily in facilities
‘International Air Cargo Marketer of and freighters which enabled us to
the Year’ Award in Air Cargo which continuously expand our services
was held from 25-27 February, 2020 in and deliver safe, secure, dependable
Mumbai, India. and competitive cargo and logistics
services worldwide. The award
Ethiopian Cargo was awarded for its will spur us to further excel in our
valuable contribution to the air cargo operations.”
industry in a highly competitive and
one of the fastest growing markets in Ethiopian Cargo & Logistics Services
the world. has built the largest cargo terminal
in Africa with a capacity of close to
Mr. Fitsum Abadi, MD Ethiopian Cargo 1 million tons annually. It delivers
and Logistics Services and Mrs. Tigist cargo services spanning across 57
Eshetu, Regional Director India along international destinations in Africa,
with Ethiopian team in India received the Gulf, Middle East, Asia, North
the award. Americas, Latin America and Europe
Commenting on the award, Ethiopian with 10 B777F and two B737F
Group CEO Mr.Tewolde GebreMariam, aircrafts.
remarked, “We are honored to have
won the ‘International Air Cargo Ethiopian Cargo & Logistics Services
Marketer of the Year’ award which transports general and special
bears testimony to our leading cargo cargo. Recently we have introduced
and logistics services in Africa Ethiopian Pharma Wing and Ethiopian
and different parts of the world, Cargo Express as new product wings.

36 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Award

Eth iopian

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 37

Airbus getting Image

adapts wing same time, operations in the UK,
production Germany and the US continued
activity in at normal rates. Based on the
COVID-19 adapted ways of working which
environment reflect the new health and safety
measures, Airbus is continuing
Airbus SE (stock exchange symbol: to evaluate its production flow.
AIR) is supporting efforts globally
to tackle the COVID-19 crisis. The In this context the wing plants
Company has carried out extensive in the UK and in Bremen,
work in coordination with its social Germany, have reviewed the
partners to ensure the health and safety additional completed stock levels
of its employees by implementing developed in the recent period
stringent health and safety measures, and the immediate demand from
while securing business continuity.

Airbus partially resumed production
and assembly work in France
and Spain on Monday, 23 March
following a four day pause. At the

38 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

the Final Assembly Lines as they will remain open during this period getting Image
resume partial operations. As a result and will continue to ensure wing
of that review, Airbus has decided to deliveries to the final assembly lines, Airbus is maintaining business
adapt the production activity in the the receipt and control of materials continuity across its global
wing plants for the next three weeks. and components from the supply industrial stream. As a leading
chain, building and installation industrial company, Airbus
This means that the production and maintenance, critical administrative needs to continue its activities
corresponding activities for support support and preparation for activity to support the global crisis
to production of the wing plants restart. Employees will continue to efforts, support customers,
in Bremen, Filton and Broughton perform activities remotely via home- suppliers and the global
will be reduced, with an extended working where their activities are economy.
Easter holiday implemented at not directly related to the production
Broughton and Filton and a reduced activity being adapted.
working week at Bremen. The sites

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 39

The Power of Business
Partnerships, Amid the

Covid-19 Crisis in Kenya

By Josephine Wawira The national apex body of the private
sector has further stated that massive
Our daily way of lifehas been disrupted!The job loss is another blow dealt to the
resulting social and financial outcomes Kenyan economy; with a likely loss
being among others business closures, job of 1.5M to 3.4M jobs in the short
loss, halted classroom studies, overwhelmed term. The range is highly dependent
healthcare systems; not to mention the on impact in agriculture and tourism.
shutting down of industries that are solely For most, stuff has already hit the
the source of livelihood for millions of fan. But while all hope may seem
families across the world. Some companies to be in the verge of being lost, the
have been forced to incorporate pay-cuts and business community inthe country
unpaid leaves in their business continuity is increasingly taking the moral high
plans, at least to try to remain afloat during ground, uniting to help mitigate
the coronavirus pandemic. On a larger the negative effects of Covid-19
scale, the export and import sectors have to the public, especially the most
come crumbling down, as nations continue vulnerable communities.
shutting their borders to curb the spread of
the novel virus.

According to the Kenya Private Sector “We understand our obligations to
Alliance (KEPSA)in its Economic the communities where we live and
Framework for COVID-19 response, thecrisis work, and during this time, we have
will have severe impact on economies across stepped up our efforts to ensure
the world. Kenya’s 2020 GDPgrowth rate they deal with the challenges of
isexpected to drop by -51%, from a forecast food and hygiene. The journey
of 6.1% to a meager 3.0%.Among economic has been tough, and to make it
sectors experiencing reduced demand include more impactful, we have partnered
manufacturing (non-essential), education, with fellow companies; public and
tourism and leisure, aviation and maritime, private sector players, that share
all of which generally contribute a great same interests with us, to uplift
deal to the growth of Kenya’s real output the members of our communities,”
growth. Essential services like agriculture, says Vimal Shah, Chairman – Bidco
manufacturing of essential items, medical Africa.
supplies and services, healthcare, ICT,
e-Commerce, food processing and retail
have on the other hand registered increased
demand in the country.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020

For these businesses, the disruption of trade and supply chains The launch of a Business Community
does not mean vulnerable communities being left to the mercy PartnerUp platform by Sustainable
of the killer virus and its harsh effects. Instead, it means Inclusive Business, a KEPSAfoundation
coming together to lift each other from this historic social and that prides itself as the knowledge center
economic mire. Logistics/courier companies partnering up with for businesses in Kenya, is bringing
supermarkets to offerfree and increased delivery of essential items organizations together toexpress their
to homes to limit people movement and thus flatten the curve. It needs or share their initiatives towards
means donating hygieneproducts to parts of the country where a common force for good;in the fight
citizens have limited access to healthcare.Donating food stuffs to against the Corona virus menace.

“For instance, farmers struggling
to keep afloat in the current crisis,
can now sell through organizations
which are in return using theproduce
to feed vulnerable families,” says the
foundation’s Director,Karin Boomsma,
adding that“The platform plays a
critical role in showcasing the power
of community.Itchallengesbusinesses
toadopt interdependency sensible
approaches that will help them remain
resilient in times of crisis.”

The coronavirus pandemic has given
us a chance to critically look at our
economic structure, appreciate its
strengths and weaknesses and partner
for the betterment of our society. We all
have a role to play, and the private sector
is laudably stepping up, using creativity,
innovation, agility and long-term
systemic thinkingto provide practical
support to both the government and the
society at such an unprecedented time.

feed children whose only source of meal was the school feeding If the cooperation being witnessed is
programs, which have since been closed as a result of the crisis. anything to go by, then Kenya is indeed
in the right track towards becoming both
economically and socially sustainable
post covid-19. We know not the end, nor
the ending of this Coronavirus crisis.
So, while we all still have the chance,
may we strive to make the world a better
place to co-exist, now and in future;
caring not only for profits, but also for
the planet and people.

Abyssinia Business Nework መጋቢት ወር 2012 March 2020

ን ?

ማን ልበል አላወኩህም

እሙን በጣም ነው የምወዳት ፣ ሙሉ ህይወቴ ። የካሮት እድገት ሆኖብኝ ይሄው ዓመት
ለሷ የተመሰረተ እስኪ መስለኝ ። የዕሙም አስቆጥሬያለሁ ከወዬ ጋር፣
መውደድ ግን ከናፍሯ ላይ ከኔ በተሻለ ነው
። ሆዴ … ዛሬ ሙሉ ቀን የት ነው ጠፍተህ በመሃከል በተዋወኳት ሶስተኛ ወሬ ይመስለኛል
የዋልከው ? እንዴት እንደናፈከኝ ፣ ስትጠፋ በሳምንቱ የመጨረሻ አንዱ ቀን ልጋብዛት
እኮ ይጨንቀኛል ። ያነጋገር ለዛዋ ከዜማ ጋር ፈለኩና ምን ማድረግ እንዳለብኝ ከራሴ ጋር
የታጀበ ስለሆነ እንዴት ደስ እንደሚል ። ማውራት ጀመርኩ ። እንዴት ግን ትወደኛለች
? ስል የመጀመርያ ጥያቄ ለራሴ ጠየኩ ። ለምን
ከእሙ ጋር የተገናኘ ነው ተቀጥራ በምተሰራበት አልጋብዛትም ብዬ እራሴን ደፋር አደርኩት።
ሆቴል ውስጥ ለመዝናናት በሔድኩበት ሰዓት አድራሻዋን አንድ ትሰጠኝ ጠየኳት ከቢል ጋር
ነው ። የመጀመሪያ ቀን ያየኋት በዩኒፎርም አብሮ መጣልኝ ። እስከምደውል እንዴት ሰዓቱ
ሲሆን ፣ ሆኖም ግን የለበሰችው አጭር ይሂድልኝ የአመት ያህል ነው የራቀብኝ ።
ቀሚስ ልዩ ውበት ሰጥቷታል በደንብ እንዲታይ መድረሱ አይቀርም ረፋዱ ላይ ደወልኩላት።
የሰውነት ቅርጿ እድሉን አመቻችቷል። እሙ ከእንቅልፏ እየተንሳች ነበረና ድምጿ ትንሽ
ብዙም ቆንጆ ባትባልም ሆኖም ያላት የሰውነት ወፈር አለ ቢሆንም ግን ለኔ የትኛውም ይሁን
ቅርፅ አቤት ፣ ወዴት ? እንድትል በሩን ማናገሬን ብቻ ነው ያሰብኩት ሆኖም ግን
ክፍት ነው የሚያደርግው። ዓይኖችህ ማረፍ ስወጣ ልደውልልህ ብላ ብዙ ሳታዋራኝ ስልኩን
እስኪያቅታቸው ድረስ ነው ሰላማቸውን ዘጋችው ።
የምትነሳቸው። የአፍንጫዋ አቀማመጥ ብዙም
ባይባልም እኔ ስለወደድኩት ለኔ ተውልኝ ። ስልኬ በጮኽ ቁጥር የሷ እየመሰለኝ
ብቻ የውስጤን ምን እንደነካችው ባላውቅም እደነግጣለሁ ። የሷ ስልክ ግን የውሃ ሽታሆነ
ነገረ ስራዬ ሁሉ የሚያስበው እሙን ነው ። ! አላስችል አለኝና ደውልኩ እዛ እንገናኝ
የኔ እንደዛ መሆን ለእሙ…ሌላው ቢቀር አለችኝ የስራ ቦታዋ መሆኑ ነው ። ሰዓቴን
ስለመፈጠሬም የምታቀው ቦታው ላይ ስገኝብቻ ጠብቄ ሄድኩ ። ሰላም ነው አባት ብላ ሞቅ
ነው ። የትኛው ዘመን ነው፣ እንደዚህ ነገሩ ባለ ሰላምታ ከሰጠችኝ በኋላ ምን ላምጣልህ
ሁሉ የህሊና ቀርቶ የዳቦ የሆነበት?። ስትል ጠየቀችኝ ቡና አልኩ አፌ ላይ የመጣው
እሱ ስለነበር ። የፈለኩት ግን ቡና አልነበረም
ከየትም አቅጣጫ ይምጣ በየትኛውም የድምጽ ። እሙን ነበር ውስጤ የፈልገው ። እሙ
ቃና ብቻ የሷ ስም ይሁን እንጂ ሁሌም ፈጥና ቡናውን ይዛልኝ ስትመጣ ያለኝን አቅም
መልሷ ወዬ ነው። ታድያ ወዬ ያመጣብኝ ጣጣ አስባስቤ ውጭ ምሳ ልጋብዝሽ ፈልጌ ነበር

42 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

ስል በፍርሃት ጠየኳት የእሙም መልስ ፈጣን ነበር አልመጣችም ! የሴት ነገር ስትቀባባ ይሆናል ብዬ ፣ 30
። ምንም ችግር የለውም የት ስትል ቶሎ ለመመለስ ደቂቃ ጠበኳት አልመጣችም ሰዓቱ መቁጠሩን ተያይዞታል
ጠየቀችኝ ፡ አንቺን የተመቸሽ ቦታ ፣ ሳሮን 7ሰዓት 45 ደቂቃ አለፈ እሙ አሁንም አልመጣችም። ስልኳ ላይ
እንገናኝ ብላኝ ወደ ስራዋ ተመለሰች ። ደስታዬ ልሞክር ብዬ ስሞክር ስልኳ አይሰራም ምን ሁና ይሆን
ወደር አልነብረውም ። ወደ ቤት ለመሄድ በጣም ብዬ ተጨነኩ ። ደጋግሜ ስልኳ ላይ ደውልኩ ዝግ ነው
ነው የቸኮልኩት ። እሙ ሂሳብ መታ እስክትወስድ ። 1፡20 ደቂቃ ያህል ከጠበኳት በኋላ ወደ መጣሁበት
አላስቻለኝም አቁነጠነጠኝ ። እሙ ሳትመጣ መሄድ በመጣሁበት እግሬ ተመለስኩ ።
ስለሌለብኝ በተቻለኝ አቅም ጠበኳት እሙ ግን ልትመጣ
አልቻለችም በአይን ምልክት ሰጥቻት ወጣሁ ። አላስችል ስላለኝ የመጨረሻ ብዬ ስሞክር ስልኳ ሰራ ደስ
አለኝ ። እየተንተባተብኩ እሙ በሰላም ነው ብዬ ጠየኳት
የሌሊቱ ርዝመት ለኔ ለመጀመሪያ ግዜ ነው ። …የእሙ መልስ ግን ፣ ተመሳሳይ ነበር ይቅርታ ማን ልበል
እሙን ላገኛት ስለሆነ ብዬ ግን በትዕግስት አሳለፍኩት አላወኩህም?
የማይደርስ የለም ሰዓቱ ደረሰ ደስ አለኝ ። እሙ

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 43

ABN

10

Questions

“Volunteers are
love in motion”.

? Journalists,
By: George Yehish Getu Temesgen

Our first ABN 10 questions corner brings you one of the most popular Ethiopian journalists, Getu
Temesgen who is known for his unique presentation and program content. Getu had worked at the
former Ethiopian Radio & Television Agency (now EBC) for over a decade, mainly at the SUNDAY
ENTERTAINMENT SHOW with which he managed to reveal and produce fascinating and hidden
human-touch stories. He has received various awards, including Green Hero and Tana Awardsfor his
magnificent documentary films and related TV shows.Moreover, he was named as “A Journalist with an
Eagle Eye” BY a French TV station. New social ABN’s Editor-in-Chief AKLILE TSIGE now takes the
opportunity to talk to Getu on his media business and related issues.

ABN: Just tell us a little bit about yourself. I received various awards for my memorable TV

Getu: Born, grew up and studied in the capital Addis productions at ETV / EBC. In 2008 a French- based TV

Ababa, I graduated in Journalism & Communication from witnessed my reputation from the audience and named

Addis Ababa University. I had served as freelance writer for me “ባለ ንሥሩ ዓይን ጋዜጠኛ - A Journalist with an Eagle

various print media. Moreover, I worked at the Ethiopian Eye”. My three TV shows were translated in French

Radio and Television Agency (currently called EBC) for and aired via the station. With the producer‘s invitation,

twelve years. I had mainlyproduced different TV shows I had the opportunity to pay visits to Germany, Italy,

for Africa Journal, News coverageand 120 Entertainment France and Belgium where I was able to gain insight into

Programs. Europe’s socio - cultural reality and media landscape.

44 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

One of my TVproductions, Getu: Nowadays, Facebook has ABN: Do you think people in
‘Greening Konso’`that depicts the become the largest socialnetwork Ethiopia use the social media
long-standing natural conservation in the world.It’s been 15years to disseminate fair, balanced
culture of the Konso community since the creation of Facebook, and reliable information, or for
in the southern Ethiopian Region a platform that revolutionized constructive and development
attributes to the “Green Hero” social media in the United States purposes?
award I have received. Following and around the world. Facebook
the show-“Greening Konso”, remains immensely popular – and Getu : Of course, Facebook and
UNESCO and the Ethiopian profitable, so, the moment I left Twitter are playing positive as well
Heritage Conservation Authority EBC I had to embark on launching as negative roles in Ethiopia and
as well as the Konso Special my own Facebook page, taking elsewhere in the world. Here in
District Administration extended advantage of the popularity I have our country there are people who
their recognition and awards to me. gained from my TV audience. release fair, balanced and reliable
Currently I, Getu Temsgen – (ጌጡ information that are very important to
ተመስገን) have got over 720,000 ABN:What are the main issues bring about socio-economic as well
followers, viewing my different you cover on your page? as cultural changes. On the contrary,
posts on my popular Facebook there are also people working day
page. Coming soon, I’ll be Getu: I am gathering and and night to fuel violence, conflict
launching- broadcasting news and current and hatred.
a YouTube channel called affairs. I believe I have been
“Yagerbetdimits - የአገር ቤት ድምፅ. disclosing timely, credible and ABN:How do you evaluate the
reliable information of which business development on your
ABN:How could you manage to people are in need. page?
start your business on the social
media (Facebook page)? Getu: The creative - ad copy and

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 45

all visual elements is part of the Getu:I think mine is very fair unreliable demographic data, but
Facebook ad that will catch most and reasonable. I’m a journalist traditional media is more accurate, and
people’s attention. And I don’t who feels social, national and bound to accountability. Therefore,
just want to catch only people’s cultural responsibilities.Let to the best of my knowledge, the
attention. I want to catch people’s others speak on this issue. mainstreaming mediaremains a bit
attention through bringing human- credible than the social ones. I think
touch, and life-related stories ABN: As compared to this requires research.
to them. I am always advising mainstreaming media such as
myself to grow in line with my TV and radio, how is Facebook ABN: What about“ Afalgun”, or
own pace , not to compare myself page going on in terms of Wanted, and gofundme kinds of
to others,Just to focus on own reaching target groups? posts? Do you receive money for such
success. Hence, I’m witnessing announcement? If not, why?
good business development on my Getu:Here are a few of the
page. reasons that there are immense Getu: “What is the essence of life?
differences between traditional I think it’s to serve others and do
ABN:How could you approach and social media: first Social good.” – This’sspoken by Greek
your clients? media reaches a maximum philosopher Aristotle over 2300
Getu:There’re people who audience, while traditional years ago. Volunteering is becoming
recommend others to place their media’s audience is generally increasingly important these days.The
ads. on my page. Many believe more targeted. Second Social greatest thing about volunteering may
that a Facebook page with over media is versatile (you be the benefits it offers to individual
700, 000 followers is one of recipients, their communities, and the
the most accessible channels to can make changes once volunteers themselves. Volunteers are
promote products and services. I published), whereas traditional love in motion.Thus, I’m doing those
don’t go to people and persuade media, once published, is set kinds of services free of charge.
them to bring their ads. or in stone. Third Social media is
announcement to me. immediate, while traditional ABN: Tell us the opportunities
can be delayed due to press and threats (advantages and
ABN: How fair and reasonable times. Fourth Social media is disadvantages) of using Facebook
is your price for posting different a two-way conversation, and page for business in Ethiopia?
advertisements or information? traditional is one-way. And Getu: Facebook is changing the
fifth Social media often has way we think, feel and chat: A better

46 Abyssinia Business Nework መጋቢት ወር 2012 March 2020

Internet communication, Friend
Finder feature helps you to find out
your friends, with their names or
email addresses., Also one of the
biggest advantages of Facebook
isbusiness promotion.

You can start making FB pages for
your brand or company and can use
this advantage to earn money online,
Facebook is the best thing to spend
your time when you don’t have to
do anything and just getting bored,
The best part of the Facebook is
that you do not have to pay money
for its use and it’s the best medium
for communication in the social
networking sites, A platform to
share feelings, life events Through
Facebook, it is very easy to share
your feeling, opinion and what’s
happening in your life.

As far as disadvantages of Facebook
are concerned,people just start living
in this virtual world and spend hours
and hours on Facebook. Due to this,
a new type of disorder has also come
in human life (“Facebook Addiction”
A new disorder), the fight continues
against fake profiles & phishing bots
(Opening an account, making a fake
profile & ID is simple for anyone
on the Facebook. And there is no
limit for these fake profiles. There
are so many cases of harassment
& abuse that are often formulated
by the fake accounts; this may
compel many face bookers to turn
their facesoff this medium due to
lack of credibility, thereby making
promotion of products and services

WEdifficult.

Thank You !

Abyssinia Business Nework መጋቢት ወር 2012 March 2020 47

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40 Abyssinia Business Nework መጋቢት ወር 2012 March 2020