ADDIS ABABA, ETHIOPIA (Addis Fortune) – The global financial crisis and the resultant production cut in emerging economies, compounded by the foreign reserve crunch in Ethiopia, has threatened the supply of power transformers by state power utility, the Ethiopian Electric Power Corporation (EEPCo).
The power monopoly has a limited supply of the transformers, such that orders placed by private building owners are being delayed, sources disclosed.
Apparently, there are requests made by the private establishments to the sole power supplier in the country to provide transformers of different capacity, but they have been placed on the waiting list, a source who says he is among those waiting to get a transformer, told Fortune on condition of anonymity.
“There is a current demand-supply problem now that our suppliers in India and China are affected by the global financial crisis,” Kebrom Kahesay, Sales and Marketing Work Process executive officer, said.
Mehret Debebe, general manager of EEPCo, also agrees that the problem that has knocked on most companies’ door globally has visited his corporation as well.
“We cannot say that the crisis has not got to our corporation,” Mehret told Fortune.
The electric power supplier’s establishment dates back to the time of Emperor Menelik II, who is credited for the start of power supply in Ethiopia from a generator he acquired to light up his palace.
At the moment, EEPCo is using its discretion in supplying transformers on the basis of the purposes of the buildings. Special purpose buildings, like hospitals and enterprises that produce export commodities, are being prioritized.
A customer, who claims to have completed the necessary payments, says he has been waiting to receive the 210 Kilovolt Ampere (KVA) transformer requested from the electric power supplier. Normally, the transformer would sometimes be supplied at the state power utility’s own request.
In the interim, the customer claims to have incurred 500,000 Br to 700,000 Br cost in acquiring a generator.
As a temporary solution to the problem, nearly 500 used transformers in the stores of the corporation, uninstalled from different spots due to replacements or change of arrangements, such as road constructions, are under maintenance.
“These transformers could help to narrow the supply-demand gap,” Kebrom told Fortune.
The nation’s sole electric power supplier has already placed a special order to import nearly 4,000 transformers with less than 40 days to go before the delivery, according the Sales and Marketing Work Process Executive Officer.
With about 1.7 million customers, of which 40pc are dwellers in the capital, EEPCo produces 800Mw of power daily, a supply short of the normal demand by 80Mw, and that of peak hours by 150Mw. Demand is also on the increase by 13pc every year.
Though the introduction of electric power in Ethiopia dates back to Menelik’s time, generation and distribution of power has a history a little over six decades old.
In mid 1940s, an Italian company, Campani Nazionale Imprezi, was allowed to generate, distribute and sell electricity in Ethiopia. However, the situation changed in 1955 after the formation of the Shewa Electric Power, allowing the government of Ethiopia to take over the generation, distribution and sale of electricity to Addis Abeba and its surroundings.
The Ethiopian Electric Light and Power Authority (EELPA) was then formed in 1963 for this purpose.
EELPA, in the past decade, has undergone restructuring to become EEPCo.
EDITOR’S NOTE: Addis Fortune reports that Foreign currency shortage has forced Coca Cola bottling plant in Ethiopia to shut down. It is to be noted that Woyanne-owned or affiliated companies, such as Al Amoudi’s MOHA, are not facing the same problem. Importing material for building a large stadium in Mekelle is also not affected.
ADDIS ABABA (Addis Fortune) – The newly operational production unit (left) with a capacity to fill 30,000 bottles per hour stays idle as East Africa’s door (above right) stays closed and trucks lined-up empty (below right)
For the first time in nearly half a century, bottlers of Coca-Cola and sister beverage brands closed their plant on Thursday, March 12, 2009, sending 1,000 workers on a forced annual leave, but with full pay.
The plant, located in Addis Abeba on Dejazmach Balcha Aba Nefso Street, and one of the two operated by East Africa Bottling Share Company (EABSC), was closed after instructions given last week to the Acting General Manager, Izan Bombom. The management told Fortune that the closure would be “temporary;” however, no one seems to know when production will resume.
The plant was quiet on Friday; machines were no longer running, and medium-sized distribution trucks, flourishing the company’s logo, were parked idle inside the compound. The scene outside was more revealing. The line of heavy trucks and trailers, that had been waiting for their load for the past three weeks had not yet disappeared.
But there were no workers to load them. Only a very few management staff members were still in their offices, and security personnel were guarding the facility when Fortune visited the complex.
Employees hope that this is just a temporary drawback.
“I expect to get my job back very soon,” an employee in the Supply Chain Department of the company, told Fortune. “In case this is not an alternative, I am hopeful that the company will do something for us.”
The supreme body of the company, the Board of Directors, are scheduled to meet next Tuesday, March 17, to discuss the crises, in addition to the regular agenda of reviewing EAB’s performance for 2008, sources disclosed.
The news of the closure of the plant was shocking to some of the shareholders. Dereje Yesuwork (Jambi) and Munir Duri, were two of the five shareholders informed about it by this newspaper when approached for comments.
“It can’t be true,” Dereje reacted on the night the plant was closed.
The company said it was forced to stop bottling beverage brands — Coca Cola, Fanta, Coca-Light, Sprite, Orange and Fanta Ananas (Pineapple) — and shutdown the plant because it is unable to import raw materials for production due to the shortage of foreign currency the country currently suffers from.
Recently, Ethiopia was confronted with a depilated amount of foreign currency in its reserve. This is what the International Monetary Fund (IMF) described as a positioning “into critical territory.” Ethiopia’s gross reserve, amounting to 906 million dollars in 2007/08, was the lowest recorded since 2004. Although modestly improved lately, and reaching an amount that could pay for seven weeks of the nation’s imports, commercial banks are no longer at ease with processing requests for letters of credit for imports of goods.
EABSC is one of the victims.
Restructured to its current format in May 1995, after businessmen bought the factory from the Privatization Agency for 10 million dollars, East Africa Bottling has been in continuous expansion. Its original shareholders – Negussie Hailu, Munir Duri, Bereket Haregot, Kassim Hussien and a fifth shareholder sold all or part of their shares to newcomers. Today, 73pc of the company is owned by the South African Beverage Company (SABCO), while Negussie Hailu, Munir Duri, Dereje Yesuwork and Abinet G. Meskel, own the remaining 37pc. The latter two are close confidantes of the Saudi tycoon, Sheikh Mohammed Ali Al-Amoudi, who, together with his wife, owns MOHA Soft Drinks Industry, bottlers of the competing soft drink, Pepsi Cola.
East Africa Bottling has grown so much ever since the mid-1990s. Its current capital is 400 million Br. Its expansion project, that cost 12 million dollars spent on procurement of two plants and a bottle washing machine, helped it enhance its production capacity from five million crates in 1995 to 21 million crates last year.
It was unable to fill a single crate of soft drinks beginning last week.
“Due to the current shortage of foreign currency, we are now faced with quite a shortage of crown cork,” said the management in a statement faxed to Fortune a day after the closure of the plant.
The management said that although it tried to substitute imported raw materials with locally produced ones, it was not able to substitute all of its requirements. Neither was the company permitted to receive loans of million of dollars from its major shareholder, SABCO, nor supply on credit for six months offered by Coca Cola International, as authorities from the central bank are reluctant to commit the country into debt, sources disclosed.
“The shortage is forcing us to temporarily stop the production of Coca Cola products,” EABSC said. “We are using this opportunity to maintain our machines and fleets.”
But there are many affected by this decision, in addition to the work force of the plant. Immediately hit are the 761 distribution vending shops, and the drivers and their assistants of the 250 trucks EAB contracted for deliveries. Around 35,000 outlets, scattered throughout the country will also be unable to serve Coca Cola and its sister brands for an unknown period. This will affect an estimated 150,000 beneficiaries involved in the value chain of the bottler, according to East Africa’s management.
And its customers are the most disappointed.
“Almost every customer asks for Coca,” a cafeteria owner around Piassa area, on Arbegnoch Street, told Fortune.
One of these could be Hagos Sahle, a Lada-taxi driver. He cannot spend a day without consuming Coca Cola.
“I am addicted to it,” Hagos told Fortune. “I don’t know what I am going to do.”
Industry observers see a wider effect of the problem than that simply confined to East Africa Bottling. Although bottlers of Pepsi Cola are still running their plant, owing to their opening of letters of credit earlier, they could face tough time in the months ahead should the forex crunch persist.
“We are alright so far,” Getachew Birbo, chief executive officer of MOHA, told Fortune. “We have planned our imports for up until June to July. And we’re supported by Dashen Bank; should there come the need, we’ll depend on the owner of our company.”
The two giant bottlers share the 40 million crates provided to the market almost equally. Nevertheless, Ethiopia’s soft drink market is estimated to reach at 100 million crates, 38pc of which is believed to be in the south. Both have series limitations in their capacity to satisfy this market, which is growing annually by 25pc, according to industry experts.
Industry observers believe it is just a matter of time before other beverage companies find themselves in the same position as the soft drinks bottlers, due to empty stock of raw materials. They anticipate that the breweries are next on the line.
On the invitation of British prime minister Gordon Brown, Ethiopia’s dictator Meles Zenawi — also known as the “butcher of Addis” — is currently visiting the United Kingdom. Meles will make another trip to London on April 20 next month to participate in the G20 meeting.
This is a good opportunity for Ethiopians in Europe and human rights groups to file charges of torture and war crimes against Meles Zenawi, since there is a tone of evidence against him.
Section 134 of the Criminal Justice Act 1988 of U.K. authorizes the prosecution in Britain of any person who commits an act of torture anywhere in the world, as defined in the UN Convention Against Torture 1984, which Britain has ratified and pledged to enforce.
Under Section 24 of the Police and Criminal Evidence Act 1984, ordinary citizens have the power to arrest a person who has committed a crime.
EPPF, Ginbot 7, ONLF and other Ethiopian opposition forces have a strong presence in London. The genocidal dictator is coming to a place where they can outgun him using the U.K. law as their weapon. Go after him.
Chief Judge Iftikhar Chaudery of Pakistan who was thrown with other judges by the former western loved dictator Musharraf is now reinstated to its former position by the organized protest which is a lesson to our own country. The protesters went out in force yesterday on the streets of Pakistan and planned to stage a huge demonstration today and the Pakistan government has back down after consulting with its western supporters.
U.S. Secretary of State Hillary Clinton was heard saying yesterday that the struggle in Pakistan is with the extremists and she wanted the government to focus on fighting Taliban and Pakistanis extremists. It is a shame that for her throwing judges to jail or the struggle to free them as was demanded by the majority of Pakistanis is not an issue that has to worry her.
Ms. Clinton on her recent visit to Asia she made it also clear that she is not standing for human rights and rule of law and cajoling with dictators to get their help in fighting the world economic crisis and do business as usual. Now in Pakistan she affirmed that what she needs is a partner to fight American war. Is this the change the Obama was talking about on his campaign ?
On March 21, citizens in huge numbers are coming to Pentagon in D.C. to demand the end of war in Iraq, Afghanistan and Middle east and force the Obama Administration to focus on the big economic crisis at home. A bankrupt USA has not the means to fight multiple wars and people are demanding their tax dollars not to be spent in any kind of war.
For the world dictators who are suffocating their people with the help of USA military machine and tax dollars they should learn a big lesson from the Pakistanis mobilization that succeeded in forcing the release of their judges. Similar actions can be taken to secure the Ethiopian judge, Birtukan Mediksa, who is now behind bars for three months.
Members of the party she is leading, UDJP, tried to stage protest rally in Addis Ababa recently and the TPLF regime denied permit. The next step is to come out and challenge the authorities like the Pakistanis did and face the consequence. If the current leadership of UDJP is not be able to stage a protest it officially has to stop calling itself an opposition party and be disbanded.
The call in western cities for Judge Birtukan release has not produced any result so far because it is not supported by similar actions back home out of fear by current leadership of UDJP. Persons like Yackob Hailemariam are good only on radios and televisions lecturing law and scared to practice law on the streets of Ethiopia.
The grassroots supporters of UDJP should be supported by the masses of Ethiopians in a huge demonstration to demand for the unconditional release of Judge Birtukan Mediksa and all political prisoners. The financiers of Meles Zenawi will back down when they see an angry crowd that condemn both the ethnic apartheid rule of TPLF and their evil hands.
In the Winter of our discontent, we complained about the wasted years of antagonism, discord and strife among pro-democracy elements of the Ethiopian Diaspora. We deplored the years of infighting and useless bickering which had given much delight and merriment to the ruthless dictators. We expressed collective regret over our shortsightedness and inability to see the big picture, and to work collaboratively for the great cause of freedom, democracy and human rights in the motherland. We chafed about lost opportunities to become effective instruments for the protection of human rights in Ethiopia. We found ourselves gripped by a pervasive sense of powerlessness and political paralysis. Then we had our “Aha!” moment, that moment ringing with the “fierce urgency of now”. We we declared, “We must learn from past mistakes, overcome our differences and march forward together to the exhilarating drumbeat of freedom, democracy and human rights in Ethiopia.”
We are now in our Spring of hope and renewal. Our hope comes from a new sense of unbridled optimism guided by the principle that Ethiopians united can never be defeated. Our renewal comes in the form of a new consciousness: 1) that we can do things much better than before and differently, and by harnessing our resources worldwide, we can effectively promote the cause of freedom, human rights and democracy in Ethiopia; 2) by remaining divided and fragmented, we would be effectively aiding and abetting in the continuing criminal enterprise of the ruthless dictators. This Spring, for many pro-democracy Ethiopians throughout the world, is a time for a new commitment to the cause of freedom, democracy and human rights in Ethiopia. The seeds of goodwill planted in dialogue and consultation in the Winter are now sprouting as seedlings of collaborative action, cooperation and worldwide consolidation in the struggle for the protection of human rights in Ethiopia. This Spring, pro-democracy Ethiopians can be heard all over the world saying, “Enough talk. Shake hands. Let’s get busy!”
Fired Up and Ready to Rumble!
We are fired up and ready to rumble! Everywhere we turn, we find an overwhelming consensus among pro-democracy Ethiopians that building respect for human rights and the rule of law will help ensure the dignity to which every Ethiopian is entitled, and stem the arbitrary powers of dictators, reduce intolerance and political violence. Validation of this truth comes from all sectors. The refugees who fled the persecution of the ruling dictators in Ethiopia testify to it. Former political prisoners, dissidents, exiled journalists, human rights advocates and all who believe in democracy, freedom and the rule of law say in a single voice that it is time to act. The victims of war crimes and crimes against humanity call upon us in exile to champion their cause and alleviate their suffering.
Spring Into Action
Ethiopians in exile are excited about the prospect of working together to help alleviate human rights violations in Ethiopia. There is unquestionably massive consensus among pro-democracy Ethiopian exiles to forge a common human rights agenda. But there are issues that bear directly upon the practical formulation and implementation of such an agenda. We are wrestling with two such issues now: 1) determining the most effective method to bring together divergent elements in the worldwide Ethiopian exile community to work and act together in common cause, and 2) identifying a set of actions and outcomes that can be taken to produce tangible and quantifiable results in improving the human rights situation in Ethiopia. These two questions require careful and thoughtful consideration.
Bringing together groups and individuals that have often been at odds with each other, or have not worked together much in the past is not an easy task. Harmonizing different organizational styles and practices requires careful balancing. But we believe we have made significant strides in seating diverse Ethiopian pro-democracy elements at the grand table of human rights dialogue and consultations. We are making good progress in our coalition-building efforts and in beginning to develop a comprehensive strategy to achieve the multiple purposes of advocacy, education, mobilization and action in support of Ethiopian human rights issues. We are going through a natural period of “acclimatization” learning about each other and our unique organizational styles and methods. But we do our best to practice what we preach. Our dialogues are open, civil and intellectually engaging. Our communications are transparent, and all input from participants are integrated in our deliberations. We build upon each other’s strengths.
Identifying a set of advocacy issues and developing an action plan for implementation of a human rights agenda presents its own challenges. We have a sense of our unique assets and resources which can be used to achieve our purposes. We are acutely aware that our issues can be paired with some extraordinary opportunities that were not available to us in the past. For instance, in the U.S. context, the change in administration offers fresh opportunities to revisit the issue of human rights in Ethiopia. We believe the blank check given to the dictators during the Bush era is likely to be a thing of the past. We also believe the continuing, sustained and flagrant human rights violations will figure prominently on the Congressional radar screen. We hope to harness our energies and resources and employ different strategies to advance the cause of human rights in Ethiopia.
There is no question pro-democracy Ethiopians in exile are fired up and ready to act on improving human rights in Ethiopia. The action items are self evident: 1) Human Rights Monitoring: We must work to ensure the regime conforms its conduct to the standards of international human rights conventions which are part of the constitutional law of the regime. Such efforts span a wide variety of activities ranging from factual investigation to documentation and reporting. 2) Advocacy: We must develop a multi-pronged approach to advocacy. There is consensus that advocacy at the highest levels of international policymaking should be a priority. We are also aware of the importance of utilizing resources at the local levels in seeking policy changes at the national level. 3) Release of All Ethiopian Political Prisoners: Recent official reports indicate that a large number of political prisoners continue to languish in the ruling regime’s prisons. Impressive public demonstrations have been held recently to call international attention to the plight of political prisoners in Ethiopia. Additional steps can certainly be taken to champion the cause of Ethiopian political prisoners. 4) Accountability: There is substantial evidence of war crimes and crimes against humanity committed in Ethiopia. In the past year alone, Amnesty International and Human Rights Watch have published reports documenting such violations of international law. There is also evidence in the form of a certified list of criminal suspects in the post-election massacres in 2005.
There are other related issues which are integral to the success of the foregoing tasks. There is a critical need for human rights education and awareness in the Ethiopian exile community worldwide. One of the reasons why international human rights advocates speak on our behalf has to do with our lack of knowledge and expertise to speak for ourselves on important human rights issues. There is also a need to engage “silently concerned” exiled Ethiopians in the global human rights effort. This requires developing a clear and convincing message and creating practical ways of participation and engagement by such individuals. Increased awareness and access to accurate information on human rights is one of the best methods of mobilizing those who remain marginalized.
We Can Move Mountains!
From our efforts in supporting H.R. 2003 and predecessor bills, we have learned that a well coordinated advocacy campaign can produce significant results in terms of generating wide support for human rights in Ethiopia. The power of advocacy, we believe, lies in the simplicity and purity of the advocacy mission, the passion and commitment of the advocates and supporters and the clarity of vision about the task ahead. We believe in empowering every Ethiopian to become a human rights advocate, and to feel emboldened to take action even when confronted with seemingly impossible obstacles.
We expect bumps in the road. Despite good intentions, grassroots advocacy campaigns will hit snags from time to time. Sometimes efforts may be disjointed and progress may not be visible in linear fashion. But such is the nature of grassroots advocacy. The alternative is to hire the fat cat lobbyists of “K” Street in Washington, D.C. and feed them a princely sum of $50,000 per month. As we have seen, even fat cat lobbyists can be defeated and routed from the legislative battlefield by a disciplined and tenacious army of fleas. We are fired up and ready to rumble! We can move mountains!
WASHINGTON DC – Ethiopians Demesse Tefera and Hirut Mandefro co-opted the Irish theme by winning the men’s and women’s titles at the 21st St. Patrick’s Day 8K downtown yesterday.
Tefera, 27, twice New York Road Runners runner of the year and currently living in Silver Spring, led from the start and was alone by a mile and a half; he broke the tape in 24 minutes 19 seconds, nearly half a minute ahead of runner-up Will Viviani. Mandefro, who lives in Silver Spring with the same Ethiopian contingent as Tefera, ran 27:06 and beat training partner Muluye Gurma (28:40) by a quarter-mile.
The winners earned $300 for their efforts and have set their sights on Saturday’s National Half Marathon, which awards $1,000 for first place.
“They’re both full-time runners,” said the group’s agent and coach, Jonas Mekonnon. “It’s not an easy way to make a living.” Gurmessa Kumsa, also in the group and the race winner two years ago, started yesterday but was not among the 4,319 finishers because of an injury.
Viviani, a Yorktown High School graduate who returned to Arlington after seven years in Eugene, Ore., shared hugs with friends and family after his 24:44 second-place finish. “I was by myself after halfway,” Viviani said, “so that was hard. I’m a 5K guy, trying to move up to 10K. So this was a good race for me.”
ADDIS ABABA, ETHIOPIA (Addis Fortune) – The global financial crisis and the resultant production cut in emerging economies, compounded by the foreign reserve crunch in Ethiopia, has threatened the supply of power transformers by state power utility, the Ethiopian Electric Power Corporation (EEPCo).
ADDIS ABABA (Addis Fortune) – The newly operational production unit (left) with a capacity to fill 30,000 bottles per hour stays idle as East Africa’s door (above right) stays closed and trucks lined-up empty (below right)
On the invitation of British prime minister Gordon Brown, Ethiopia’s dictator Meles Zenawi — also known as the “butcher of Addis” — is currently visiting the United Kingdom. Meles will make another trip to London on April 20 next month to participate in the G20 meeting.
Tefera, 27, twice New York Road Runners runner of the year and currently living in Silver Spring, led from the start and was alone by a mile and a half; he broke the tape in 24 minutes 19 seconds, nearly half a minute ahead of runner-up Will Viviani. Mandefro, who lives in Silver Spring with the same Ethiopian contingent as Tefera, ran 27:06 and beat training partner Muluye Gurma (28:40) by a quarter-mile.