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Sodere special report May 2, 2017


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US Embassy Unhappy with Ethiopian Airlines Staffs, Spouses over Childbirth Medical Bill  

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Some employees allegedly do not disclose the purpose of their travel clearly

The US Embassy in Addis Abeba is not happy with employees or spouses of the Ethiopian Airlines who travel to the United States, give birth while on visitors` visa and return home with outstanding hospital bills.
The Embassy has served a notice to the management of the Airlines, urging its employees travelling to the United States to disclose to consular officers should they have received medical care while in the US previously.
The Embassy has compiled a list of all the Airline`s staffs or their spouses who gave birth there, sources disclosed.

It also threatened to deny them entry permanently should they provide information in falsehood upon application for renewal. “Obtaining a visitor visa to get medical care in the United States, including for childbirth, is allowed under United States law,” said a spokesperson for the US Embassy in Addis Abeba, in an email sent to Fortune, while declining to comment on the particular case in relations to the Ethiopian Airlines. “But, travellers are expected to pay for the medical care they get.”
Anyone who applies for a visa must disclose the purpose of their travel clearly during visa interviews and should pay for a planned expense, including medical treatment, according to the Embassy.
Mostly cabin crews, women employees, and spouses of employees of the national carrier obtain visas to the United States with the aim of delivering there and hoping to get an automatic American citizenship for their children. “We know such problems exist,” said a person close to the Ethiopian Airlines Employees Union.

“It is very normal. To make a child an American citizen, we have seen many employees travel to the United States to give birth.” The management of the Airline declined to comment despite repeated efforts for a response. The notice to Airlines comes at a time when the American government has become stringent in issuing visa requests.

A few months ago, the current US Administration banned entries from seven highly Muslim populated countries in the Middle East and Africa, after applying new security checks before granting visas to visitors.

Trump`s Administration, whose decision with immigration is challenged in a court of law, blamed its predecessor of not properly screening people travelling to there.

A diplomatic cable sent to all American embassies told consular offices to apply stricter security checks, according to a story in The Washington Post.

An employee of the Airlines believes that getting a visa to the US has never been easy. “Unlike other embassies, the chances of acquiring a United States visa is unlikely,” said this employee who has worked in the Airlines for over seven years.

“Now, with the existence of such problem, it will be severe.”

However, the US Embassy in Addis Abeba granted more than 18,000 non-immigrant visas in 2016, up by 125pc from 2007, according to data from the Embassy.

Last year, the United States issued over 10 million visas globally, according to the Bureau of Consular Offices, under the States Department.

However, the Embassy in Addis Abeba issued 10,900 immigrant visas in 2016, while denial rate reaches between 40pc and 60pc, according to data from the Bureau. “Misleading a Consular Officer to get a permit can result in future visa denials and even a permanent ineligibility to get visas,” said the spokesperson.

The Embassy told the Airline that if employees and their spouses provide truthful information on past deliveries and proper closure of outstanding bills, their applications for renewal will be treated according to the US immigration laws, sources disclosed. The Airlines` Human Resource Department has advised employees for caution. BY

SAMSON BERHANE FORTUNE STAFF WRITER

Gize Mizan movie

Ethiopia still struggling to acquire Teff patent

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By Eskedar Kifle, Capital Ethiopia

Despite hard work Ethiopia is still struggling to get the patent for the Teff grain back, according to the Ethiopian Biodiversity Institute. According to Melesse Maryo (PhD), Director General of the Ethiopian Biodiversity Institute, the government is working on returning patents on different genetic materials that were taken out of Ethiopia without authorization.

“There are a lot of issues and it is something I don’t want to talk a lot about, but we are working to get back the patent on Teff. There is a lot of pressure by the parliament and there are a lot of activities around the process of getting back these patents for different grains that were stolen,” said Melesse.

There have been several reports over the years on how the rights to the genetic varieties of teff, and the traditional knowledge of harvesting methods still belong to a Dutch company, Vennootschap Onder Firma (VOF). The Director General further stated that several countries such as Germany, although contributing greatly through financial assistance, have also been involved in several violations by taking out genetic materials from Ethiopia without authorization.

Some countries have been cooperative in returning patents, he also underlined. “There is an example where some years ago, in the US, beer factories were hit very hard because the barely used by the breweries was affected by a virus and the crops were failing.

They took genetic material from Ethiopia that could fight the disease and saved their crops. They did this without any payment or legal process. Through the Nagoya protocol, we are bringing back these stolen genes and getting them patented,” Melesse said.

Ethiopia currently hosts two gene banks in the country that are under the Ethiopian Biodiversity Institute and on Monday, April 24, 2017, the International Livestock Research Institute (ILRI) inaugurated facilities for gene bank and bioscience research. It is stated that the facility will help protect crucial components of the planet’s biodiversity-diverse grasses and legumes that feed the world’s food animals.

Ethiopia: PM office banned others and allow Belayneh Kindie company to export grain

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One company monopolizes maize exports

By Muluken Yewondwossen

Grain exporters are unhappy with the government’s decision to only allow a single company to export maize to east and southern African nations.

Because of the drought, last fiscal year, exporters were banned from exporting grain. Then, a recent order came from the Prime Minister’s office giving permission to Belayneh Kindie Import and Export plc to export maize to COMESA members.

For the past three months the company has been exporting maize while others have been left in the dust. Ethiopian exporters who were banned from exporting grain are expressing concern to the government because they feel they are being neglected while a single company is solely permitted to export the product.

Sources said that the exporters have taken the issue to the Prime Minister’s Office and the Minister of Trade. Uganda and Tanzania are major consumers of maize, which is staple diet for south eastern and eastern African countries. However the drought significantly reduced their production so they began importing it.

However, now forecasts indicate that production will improve in Uganda and Tanzania and they could even start exporting the product. In addition to maize, Ethiopia banned sorghum exports last year and did not lift that until recently According to a source the government realized that there was an overproduction of maize.

As a result it allowed one company to export maize from the farm it owns and from other commercial farms. The Agricultural Transformation Agency said that the country has produced about four million metric tons of maize, with some surplus. Recently after the Regional Grain Trade Facilitation Forum which was held in Addis Ababa, the Eastern Africa Grain Council (EAGC ) announced that trade deals in terms of 51 contracts amounting to 275,000 metric tons estimated at USD 55 million were signed at the Ethiopian capital to export grains (maize and pulses) from Ethiopia to eastern and southern Africa.

Since there is a high demand in eastern and southern Africa exporters are looking for permission from the government. This included Belayneh Kindie, who is the leading sesame exporter as well. Sources claimed the exporters have followed proper procedures.

The government stated that it would allow exports if the maize came from their own farm or they purchased a contract from commercial farms “We have asked the government to allow us to export the product that we brought from our farms and commercial farms but there has not been progress yet,” exporters claimed.

Due to high maize demand in the region the product has been crossing the southern Ethiopian border via illegal traders. Belayneh was allowed to export the product about three months ago, and for the past two and half months other exporters asked the government to allow them to export it as well. At the Forum hosted by EAGC in partnership with the Addis Ababa Chamber of Commerce and Sectoral Associations and held on March 7 Ethiopian exporters raised the issue, but they did not get a response from officials who attended the event at Hilton Addis.

In its statement EAGC said; presently, the eastern and southern Africa region is experiencing a scarcity of rainfall and drought conditions leading to a shortage in availability of food grains, including maize and pulses. “The situation has concerned the authorities to the extent that some have initiated interventions restricting exports,” the statement reads.

It added that some grain traders and processors have also had their operations affected due to the shortage of grains. The statement has also disclosed that in the recent harvest season, Ethiopia experienced a bumper harvest estimated at over 4,000,000 metric tons of maize in addition to beans and other pulses. “EAGC is gunning her efforts to ensure efficient and sustained trade amongst grain players within eastern and southern Africa.

This is through corporate engagement and facilitation of collaborative platforms of both governments and the private sector, which include Business-to-Business (B2B), Government to Government (G2G) and Business to Government (B2G) linkages,” Gerald Masila, EAGC Executive Director, said.

Preliminary estimates from the State Department of Agriculture (SDA) note that imports from Uganda, Tanzania, and Ethiopia will be about 295,000 MT, 360,000 MT, and 1,400 MT, respectively, through June 2017, with imports from Uganda and Tanzania expected to be higher than normal due to anticipated below-average 2016 short rains, and an average 2017 long rainy season harvest in Kenya.

Capital attempted to obtain further information from top officials at the Ministry of Trade, but the Minister and his deputy responsible for the issue are in Seattle to attend the Specialty Coffee Conference and Exhibition. Weyneshet Endashaw, representative of the Grain Trade Directorate of Ministry of Trade, at first agreed to an interview with Capital about maize exports, but changed her mind when a reporter arrived. EAGC reports estimates from the Agricultural Transformation Agency of over 1,000,000 metric tons of white maize surplus e available for export, a record bumper maize harvest amid a regional drought that poses a major challenge to the region’s food security outlook. In 2016, an estimated 40 million people in eastern, southern and Central Africa faced hunger due to similar conditions.

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Ethiopian company sells shares to build the “‘the biggest mall in Africa”

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Hedasse Grand Mall Avails Shares with Highest Promoters’ Fee

Shares will have a total value of three billion Birr

Hedasse Automotive & Machinery Market S.C availed 2.99 million shares worth three billion Birr for public subscriptions to build a grand mall in Addis Abeba, whose exact location remains undisclosed.

The company has also offered to charge potential subscribers of shares the highest, 17pc, as promoters’ fee, meant to cover administrative and promotional cost during the period of formation.

If succeeded, promoters will raise over half a billion Birr in promoters fee.

Most share companies floating initial public offerings (IPO) charge service charges of five percent to 10pc, thus making Hedasse’s the highest fee to date. Ahmedin Mohammed, one of the 11 promoters and president of the share company, says such high fees is crucial to cover “operational cost of the project.”

From the fees collected from prospective shareholders, 15pc of it will be deducted for VAT, while six percent goes to corporate social responsibility and eight percent to service commission reserved to shareholders who bring others to buy shares, Ahmedin told Fortune.

The company was initially founded two years ago by 30 individuals and currently has 215 shareholders. With par value of 1,000 Br, minimum number of shares up for subscriptions is 600 shares while the highest is at 2,400 shares.

Hedasse started to sell shares on February 5, 2017, but it officially offered IPO on April 19, 2017, at the Sheraton Addis Hotel. The company aspires to work in three different industries; automotive market, manufacturing and a grand mall, which is hoped to incorporate no less than 5,000 stores, and claimed by promoters to be “the largest mall in Africa.” “We’ve been doing research, market analysis and the design of Hedasse grand mall for the past two years,” says Ahmedin, who is an importer of spare parts and machineries.

Ahmedin is currently constructing a spare parts manufacturing plant worth 109 million Br in Qaliti, along Debrezeit Road. He is also among those who initiated the idea of importing 1,000 meter taxis.

The new company intends to construct a three-storey grand mall on a 250,000sqm plot, accompanied by two four-star hotels, and four residential apartments.

It will also have a parking space with the capacity of about 8,000 vehicles. Dereje Mekonnen, a general manager of the project, states that different international construction companies have shown interest to take part in the project.

He also compares the grand mall with Mall of Africa located in Waterfall city, South Africa, which lies on 550,000sqm and has 2,500 shops. “We hope to be dubbed ‘the biggest mall in Africa,” Dereje said.

The entire project will have two phases; the first phase will incorporate the shops and is expected to be finalized within three years and will be able to create permanent job opportunities for about 35,000 citizens, promoters say.

Phase two will converge on the construction of the apartments and the hotels, according to Anemaw Abera, media and promotion manager for the company.

Hedasse is in the process of acquiring the land for a lower rate, negotiating on the fixed lease price with the city administration and is hoping to get one of the nine reserved areas for development in the city, according to Ahmedin.

“Even if the location has not been acquired yet, it is not a concern for me as the investment we make is safe in a blocked account,” said Raiwa Mohammed, who bought shares in the company and runs a car decor shop around Sebara Babur area, in Gullele District.

The company has opened such accounts with all the commercial banks operating in the market. An interested shareholder buying the lowest share makes nine percent initial payment of the shares wanted, together with 50pc of the promoters fee, before being registered as a shareholder.

People close to the issue raise concerns of over ambition, particularly in relations to the ability of promoters to raise all the required capital.

They relate the case of Addis Africa International Convention & Exhibition Center (AAICEC), which took over three years to sell the 300,000 shares it availed for public subscription, mainly due to the low interest from the public. AAICEC realised its plan after the involvment of the city administration which bought shares worth one billion Birr out of the total three billion Birr. “Hedasse will surely benefit if the government gets involved,” a consultant in project development told Fortune.

BY REDIET BAYE FORTUNE STAFF WRITER

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