tiret september 2014 issue

www.midroc-ethiopia.com.et TIRET September 2014

TIRETTIRETThe MIDROC Ethiopia Group Corporate Magazine

Free copy

September 2014

Construction Equipment Management


Taking Ethiopia’s agriculture to the highest level

Tel: +251 118-962-396 Fax: +251 111-555-516 E-mail: [email protected]: www.horizonplantations.com


The Chairman’s Message

1

As the month of September marks the beginning of the Ethiopian New Year, let me first take this opportunity to wish the Ethiopian people, the entire community of our investment group as well as all our stakeholders a very Happy, Peaceful and Prosperous New Year.

Celebrating the start of the New Year, it is always good to look ahead and think about what this year may bring us and learn from our past experiences.

The just concluded Ethiopian year was quite a year for all of us at the investment group. We have achieved a lot in the many sectors we are engaged in: Agriculture, Industry, Hotel and Tourism Development, Mining, Transportation, Export Trade and the like.

I have expressed my readiness to invest in areas that are given strategic priorities by the people and government; and I think this plan has worked out. Today, we see my companies contributing in stabilizing prices, assisting mega projects in the country and absorbing new graduates from higher learning institutions.

We have been through many developments in participating in the nation building efforts sometimes in some challenging circumstances. Of course, I understand that there’s still a lot of work ahead.

I once again would like to reassure all the management and employees in my investment group that I am ready to do all what is possible to accomplish all our plans and achieve more in the new year.

I also very well know that all what we achieved are at huge and commensurate cost. We should always be prepared to overcome our challenges through meticulous planning, careful execution of our activities and effective management of our resources. Of these resources, state-of-the-art machineries in our industries and modern agricultural as well as construction equipment come into the picture.

Effective resource management should be at the forefront of our investment activities. If we do that I am optimistic that the year ahead will bring us more success and satisfaction.

So, I encourage all of you to participate in effective resource management in your respective companies and achieve our goals by working together, keeping focused on our priorities and conducting our duties in very professional and principled manner.

Wishing you all good health, joy and success in the coming year and always!

Sheikh Mohammed H. Ali Al-Amoudi

Owner and Chairman MIDROC Ethiopia Investment Group

www.midroc-ethiopia.com.et TIRET September 2014 2


Editor’s Note

3

Since 1996, the year in which the first edition of TIRET was launched, our corporate magazine has been featuring major accomplishments in the group companies and has served as a symbol of synergy and solidarity amongst MIDROC Investment Group companies.

I feel that everybody in our group has the sense of ownership and concern to see TIRET making progress and becoming a good symbol of harmony. Cognizant of this fact, the Editorial Board has initiated change in the content and design of the magazine to realize the supposed change in the publication of the magazine. Therefore, in this issue of TIRET we have attempted to make some reorganization and change in style of story presentations.

To this end, the MIDROC News column of our magazine presents various stories in a more analytical approach and featuring our companies’ major activities this time around.

The Cover Story gives details on the issue of “Construction Equipment Management” which was the main theme of the 18th Consultative Group (CG) meeting of our group companies in a very interesting approach.

We also introduced a new column – Commentary - to facilitate a permanent presentation of scholastic and argumentative articles on various issues of development. In the current issue of the magazine, articles that feature matters of the role of our business schools in our economy by Professor Johannes Kinfu andother commentaries on “Principled Business Communication” as well as “Economic Growth and Economic Development: A Source of Confusion?” by the Editor-in-chief and Ato Siyoum Gebrehiwot.

You will also read an interesting story on how National Oil Ethiopia (NOC) is registering remarkable growth and emerging as an indigenous downstream oil company in Ethiopia and neighboring countries in our Ascending Heights column.

The Health column also features two items on the risks of unhealthy Cholesterol level in our body and the measures that should be taken to beat the problem and another piece titled “Sub-Saharan Africa in the fight against HIV/AIDS”. Finally, we present selected short news items in the News Brief section of the magazine.

As usual, our editorial team invites all our readers to participate in the publication process through comments and constructive suggestions. Enjoy your reading! Mekonnen Teshome Editor-in-chief


Perfect choice for comfort & PleasUre

Main Hotel Line: +251 582 264 566 Ext: 3001 Direct Line: +251 582 20 070Mobile: +251 918 392 929 P.O.Box: 1387 E-mail: [email protected]


TIRET September 2014

CONTENTS

5

DISCLAIMERThe opinions expressed in our various columns are stricly the views of the contributing writers.

MIDROC ETHIOPIA Committed to Development

TIRET is a bi-annual corporate magazineof MIDROC Ethiopia Investment Groupin print since 1996.

PATRONTeklu Haile

EDITORIAL BOARDTadelle Teferra (Chairman)Melaku Beza Asrat BulbulaBrook Debebe (Amb.)Johannes Kinfu (Professor Emer. )Mekonnen Teshome

EDITOR-in-CHIEFMekonnen Teshome

SECRETARIAL SERVICE & DISTRIBUTIONHaimanot NegussieMartha Kassahun

PHOTOGRAPHYDegifie Tekle, Tadesse Demissie,Kibrealem Yalew

GRAPHIC DESIGNKibrealem Yalew

PUBLISHED BYThe Communication & Public RelationsDepartment of MIDROC EthiopiaTel: +251 115 549 969Fax: +251 115 549 936P.O.Box: [email protected]

September 2014 MIDROC EthiopiaAll rights reserved. Reproduction in partor in whole is allowed with a writtenauthorization of the Publisher

MIDROCMohammed International DevelopmentResearch & Organisation Companies.

©

Cover Photo:Ries Engineering S.C. technicians working on a CATERPILLAR Excavatorby Degifie Tekle

Construction Equipment ManagementCover Story 36

MIDROC News 7

Cover Story 36

Commentary 41

Ascending Heights of Success 51

Health 56

News Brief 62

TIRETTIRETThe MIDROC Ethiopia Group Corporate Magazine

Free copy

September 2014



Infinite Race for Quality

Tel: +251 116 189 313/14 Fax: +251 116 189 315P.O.Box: 976 code 1110E-mail: [email protected]


MIDROC News

Sheikh Mohammed takes Ethiopia high into space

Asked about the core areas of his philanthropic activities by Forbes Magazine in June 2013, Sheikh Mohammed H. Ali Al-Amoudi said. “I invest primarily in education and healthcare-related philanthropy directed at improving the health of the wider population (cancer awareness andtreatment in the Arab world; and HIV/AIDS awareness and treatment in Africa). I have strong interests in

supporting sport, primarily football, and also in developing cultural relationships within nationalcommunities and their Diasporas, with a special reference to Ethiopia.”

ESSS Board of Directors’ Chairman, Ato Tefera Waluwa

The installation of the two big telescopes at mount Entoto has been finalized

He made us plan big. He told us to revise our

initial plan of establishing a smaller observatory center and to think about a bigger vision of building a world

class observatory and research as well as training

facilities.

“

”Ato Tefera Waluwa


In responding to the question, Sheikh Mohammedactually stated only the major areas of his philanthropic focus. However, it is public knowledge that he supports all development efforts here in Ethiopia and elsewhere.

For instance, the extraordinary support he has provided to the Ethiopian Space Science Society (ESSS) in the materialization of the Entoto Observatory and Research Center is worth mentioning.

Since the establishment of ESSS in 2004, Sheikh Mohammed has contributed 75% of the finance needed to build the observatory center at Entoto Mountain which is 3,200 meters high above sea level. Currently, construction of the Entoto Observatory andResearch Center and the installation of the two bigtelescopes, each with one-meter diameter lenses, with high-tech telecommunications, has been completed. The Society will have the center officially inaugurated soon.

The telescopes which were bought from the German technology company, Astelco Systems with theiraccessories are fully computerized.

According to Solomon Belay (Ph.D.), Director of Entoto Space and Astronomical Observatory Centre, the outstanding contribution of Sheikh Mohammed has resulted in a key paradigm shift in the country’s Astronomy, Space Science and Technology developments. “Now, Ethiopia has become an emerging state in the global scientific and technological development.”

Acknowledging this huge contribution of Sheikh Mohammed, the International Astronomy Union (IAU) has honored him with Certificate of Recognition.

ESSS has also been conducting various studies to set up a second bigger observatory near the town of Lallibela in northern Ethiopia, on a higher point of 4,200 meters above sea level.

Over the next three to five years, the Society also plans to launch at least three satellites aiming at supporting the country’s agriculture sector through the provision of more accurate information on meteorological and climate change trends.

ESSS Board of Director’s Chairman, Ato Tefera Waluwa says that Sheikh Mohammed is making an extraordinary contribution to the realization of the space science projects of the nation.

According to the Chairman, Sheikh Mohammed has a very profound appreciation of astronomy and is highly keen to see the development of space science in Ethiopia.Ato Tefera recalled that once Sheikh Mohammed said: “As the world is striving to find an alternative place other than the earth to live in, we Ethiopians should be ready to follow suit.”

“He made us plan big. He told us to revise our initial plan of establishing a smaller observatory center and to think about a bigger vision of building a world class observatory and research as well as training facilities. Thenhe provided all the finance and moral support,” Ato Tefera said. Indicating that there is lack of awareness about the advantages of the science of astronomy in Ethiopia, the Chairman said that Sheikh Mohammed clearly understands that Ethiopia can benefit in all sectors of the economy from the advancement of the science.

Facts about Sheikh Mohammed’s contribution to ESSS

• In 2004, he paid Birr 1,000,000.00 as an initial membership contribution• In 2008, he donated Birr 6,000,000.00 for the construction of Entoto Offices• In 2011, he gave about Euro 2,000,000.00 initial budget for the acqusition of telescopes, domes and accessories • In 2012, he equipped the Entoto Observatory and Research Center with office furniture with an outlay of about Birr 3,000,000.00

Nazereth School students at evening space observation event organized by ESSS


Now ready to serve all your catering needs in Addis Ababa

Tel: +251-116-620072 Fax: +251-116-620262 P.O.Box: 121 Code 1250 Addis Ababa, Ethiopia

Website: addiscatering.com


ደርባ ሲሚንቶ ኃ.የተ.የግ.ማ.Derba Cement Plc.

Gilgel Gibe 3 Hydro Electric Project

Bahirdar Stadium

Tendaho Sugar Project

ነገን ዛሬ እንስራ Ready for Tomorrow

Head Quarters Tel: +251 115 549 888 Fax: +251 115 549 808Marketing Tel: +251 115 518 105 / +251 115 540 375 Cement line 8688

Fax: +251 115 541 442 E-mail: [email protected] Website: www.dmc.com.et

Lower cement prices, door to door delivery andconcern for the environment define us.

We further promise to bring about new possibilities in the cement sector: new producttypes, diverse packing sizes, enhancedand improved customer service.

As in the past we will let our deeds do the talking.Take our word for it.

The Grand Ethiopian Renaissance Dam


Derba Transport boosting up fleet capacityDMC inputs and 500 for cement distribution. The main reason for Sheik Mohammed Al-Amoudi to establish DT was to ensure that DMC cement would be delivered at the right price to customers throughout Ethiopia, without affecting the local transport market negatively.

State of the art Fleet Management System and Transport Planning Software will be used by DT, with emphasis on skill development and application of the latest management techniques to ensure that DT will become the premier hauler operation in the country. Driver training in the areas of safety and fuel efficiency will be conducted at a driver academy that is currently under establishment in cooperation with, SIDA, Volvo and the Federal Transport Authority among others.

When DMC goes fully operational, 200 vehicles will be deployed with a daily loading capacity of 8,000 MT at the factory, with no interruption 24 hours.

The full integration of logistics systems between DMC and DT will bring about an unprecedented experience of handling and distribution of cement here in Ethiopia. This will eventually target creating opportunity for customers to track their cement deliveries on-line. DT’s first commercial transport was carried out in June 2011. While presently 757 trucks are operational full deployment of 1,000 trucks is expected to be achieved within the next 12 months. To date, DT has created job opportunities for about 1,500 citizens. Prior to DMC’s production launch, DT and Sheikh Mohammed were assisting the Ethiopian Government in transporting wheat to areas experiencing food shortages. A total of 400 trucks were dedicated for this purpose. DT also provides noteworthy services, other than transporting cement from Derba Factory. These include transport of transformers from Djibouti to Gilgel Gibe III, equipment and cement to the Ethiopian Grand Renaissance Dam site, transport of oil exploration drilling rigs as well as emergency transport of transformers to various destinations in Ethiopia.

Ato Haile Assegidie

Derba Transport (DT) has added 20 Bulk Cement Truck Trailers to its fleet system aiming at delivering quality service to clients of the Derba MIDROC Cement (DMC) factory. According to DMC and DT CEO, Ato Haile Assegidie, the introduction of the new vehicles will greatly improve transport turnaround time with reduced loading and offloading duration. The 34 M3 and 40 MT capacity Bulk Cement Truck Trailers would help the factory render fast and effective service to its customers with efficient bulk handling capacity.

The three axle Bulk Cement Truck Trailers with Volvo FH 440 tractor are made of steel bodies. While speaking about the efficiency of the machines, Ato Haile said that DT will also offer the service of provision of compressors, for discharging cement from bulk trailer to client silo in less than ten minutes, for those who do not have this facility themselves. The company intends to have a fleet of 1000 Bulk Cement Truck Trailers. DT was established in 2011 by Sheikh Mohammed Hussein Ali Al-Amoudi with 200 million USD total investment capital to facilitate transportation of inputs for Derba Midroc Cement (DMC) and distributecement to customers.The fleet has now 750 Volvo trucks with 250 vehicles for


MIDROC Foundation Specialist Plc.

Grade 1 Contractor

Leader in Advanced Foundation Technology

Tel: +251 114 431 464 / 421 876 / 406 620 Fax: +251 114 421 876P.O.Box: 1912 code: 1110 E-mail: [email protected]

Addis Ababa, Ethiopia


People of the Yerer Goro and its vicinity in Addis had to travel long, through the places called CMC and Megenagna (more than 10 km), to reach their neighboring Ayat village with a great deal of difficulty.

The lengthy and twisty travel has now been shortened to six km.

This was officially announced and commended by representatives of the local community, governmentofficials and the MIDROC Ethiopia Construction DeputyGeneral Manager, Eng. Negussie Aberra, when the Ayat Intersection-Yerer Goro modern asphalt road wasinaugurated on May 31, 2014.

The two-lane road which connects the two neighboring villages is 6.6 km long. The road has two bridges, 146meters long each and three big roundabout intersections.

13

Eng. Negussie Aberra and Dr. Tabor Gebre-Medihin at inaugural ceremony

Connecting people through road construction

The 143 million birr road project also involved fairly sophisticated construction technology. It had created job opportunity for over 600 citizens.

According to Eng. Negussie, despite the high price rises in most construction materials after the signing of the agreement with the Addis Ababa Roads Authority, the construction of the road had been finalized with all the quality and standards required.

Contract administration head with the Authority Eng. Ahmedin Hussein also on the occasion said that the construction of the road has totally changed the looks of the locality for the better.

Representative of the residents of the Ayat-Yerer Goro area Worku Bedlu on his part indicated that the constructionof the road would alleviate the transportation problem of the people of the area and beyond. “We are so delighted to see this road completed,” he added.


Partial view of the newly inaugurated Ayat-Yerer Goro roadAto Worku Bedlu, Ayat-Yerer Goro localities represenative

“In addition to changing the look of our lacality, the road would ensure a better life standard to people in the area.”Also on the occasion, the representative presented other concerns of the people like the construction of feeder roads to the newly inaugurated road, installation of street lights and assignment of police forces among others to the Speaker of the Addis Ababa City Council Dr. Tabor Gebre-Medihin who was the Guest of Honor of the naugural ceremony.

MIDROC Construction Ethiopia PLC is a grade one construction company engaged in undertaking similarroad constructions, skyscrapers including the Nani MIDROC Ethiopia Corporate Building near the Ghion Hotel, the Federal Police Head Quarters at Mexico square area and Ethio Agri-CEFT New Head Office building in the Makanissa area. A number of buildings in the premises of the Hawassa University and several other constructions also testify engagement of the company.

MIDROC CONSTRUCTION ETHIOPIA PLC

Grade 1 Contractor

Tel: +251 15 51 08 99 Fax: +251 15 51 22 44 P.O.Box: 16960 E-mail: [email protected] Addis Ababa Ethiopia


Integrated Reporting: Beyond the financial report

A t 1:45 AM on September 15, 2008, the then fourth largest investment bank of the United States (behind Goldman Sachs, Morgan Stanely, and Merill Lynch), Lehman Brothers Holdings Inc.("LBHI") and 22 of its affiliates (collectively, the"Debtors") filed petitions in the United States Bankruptcy Court for the Southern District of New York seeking relief under “Chapter 11” of the US Bankruptcy Code.

The firm filed for the bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies playing a major role in the unfolding of the late 2000s global financial crisis.

It was a puzzle for many why this powerful financialinstitution faced that huge challenge of bankruptcy. As the court-appointed examiner indicated that Lehman executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finance appear less shaky than it really was.

This practice was a type of repurchase agreement that temporarily removed securities from the company’s balance sheet. However, unlike typical repurchaseagreements, these deals were described by Lehman as the outright sale of securities and creates “a materiallymisleading picture of the firm’s financial condition in late 2007 and 2008.

The financial crisis has simply been a particularly sharp reminder that financial measurement alone cannotprovide sufficient insight into corporate performance and business activity.

Therefore, the new concept of Integrated Reporting (IR) initiated by the International Integrated Reporting Council (IIRC) seems to be a remedy for such problems in providing complete information about a business activity in a manner that shows all the necessary financial andnon-financial information including a company’s strategy, governance and performance.

While offering training organized by MIDROC Ethiopia Training and Development Department on “Integrated Business Reporting” for middle level Managementmembers drawn from MIDROC Ethiopia Investment Group on April 29, 2014 at Ghion Hotel, DiligenceConsultancy Service PLC General Manager Tewodros Tilahun cited IIRC defining Integrated Reporting as “a process that results in communication by an organization, most visibly a periodic integrated report, about how an organization’s strategy, governance, performance, and prospects lead to the creation of value over the short, medium and long-term.”

According to Ato Tewodros, integrated reporting would build on the existing financial reporting model to present additional information about a company’s strategy, governance and performance.

Participants attending the training workshop


Horra Food Complex plc

Quality Speciality Loyalty

We have the capacity to produce:

* Wheat Flour 240 tons/day* Pasta (Spaghetti) 1,100 kgs/hr and Macaroni 1,300 kgs/hr* Various Biscuits 1,750 kgs/hr

Tel: 011 367 90 00 Fax: 047 439 11 70 P.O.Box: 5521 E-mail: [email protected] Sebeta Alemgena


and how it creates and sustains value. As IIRC is not aregulator or a standard setter, companies are exploringintegrated reporting with the council voluntarily. Integrated reporting is, in part, an outgrowth of the view that today's corporate reporting will not meet the evolving information needs of stakeholders in the global capital markets. There have been major changes in the way business is conducted, how businesses create value, and the context in which they operate.

Though these changes are interdependent, they reflect trends in globalization, heightened expectations of corporate transparency and accountability, resource scarcity, and environmental concerns, among others. Some stakeholers are asking companies to provide clear information about emerging external drivers (e.g., social and environmental) that affect their businesses, theirapproach to governance and managing risk, and how their business models work.

In response to this growing demand for a broader information set, the IIRC is developing an integratedreporting framework to guide companies in communicating the information stakeholders expect to assess a company’s long-term prospects.

Companies participating in the program benefit by exploring integrated reporting. Key among them is improved internal information that allows management to make better decision of resource allocation leading to potential cost reduction. It would also make the reporting more concise and less complex.

Participants of the above mentioned workshop also share the idea that integrated reporting could have its own advantages.

Ato Dereje Gebre-Mariam who represented the National Mining Corporation PLC says that integrated reporting, ifimplemented properly, seems to be a good instrument that gives a general picture of a business activity and facilitates informed decision.

17

Integrated reporting aims at providing a complete picture of a company, including how it demonstrates stewardship

As a mining company, the National Mining Corporation prepares reports on its activities of environmental protection, social responsibility and the like. However, it is also essential to take into consideration the idea of integrated reporting. “I am of the opinion that if companies implement integrated reporting it would help them get a clear picture of their business activity.”

W/ro. Lishan Haile, an accountant working for MIDROC Ethiopia PLC, agrees with Ato Dereje. She said that after participating in the workshop she has got a valuable idea on the difference between the old way of business reporting and the new idea of integrated reporting.

She said that preparing an integrated report would help a business company to see all its strengths and weaknesses in its implementation of various strategies, governance,performance as well as future prospects.

Integrated reporting would prompt companies to think about their reporting in a holistic manner. This would include, for example, considering the relationships between a company’s various operating and functional units, the financial and nonfinancial capitals that a company uses and the relevance of those factors indemonstrating how value is created.

Some companies are also starting to use integratedreporting concepts to drive their focus on integrated thinking and strategic decision-making. They’re finding that this can lead to stronger cross-functional communications, more productive dialogue amongemployees at all levels across business activities and more meaningful dialogue with external stakeholders.

Integrated reporting is being adopted or explored by companies throughout the world. An increasing number of social reporting requirements driven by local regulatory bodies and stock exchanges have played a key role in giving impetus to this momentum.

In South Africa, for instance, listed companies arerequired to adopt integrated reporting, or explain why they have not complied with the reporting system. Many other

W/ro Lishan Haile, MIDROC Ethiopia PLC

Ato Dereje Gebre-Mariam, National Mining Corporation PLC


countries have enacted or proposed rules on integrated reporting and on incorporating corporate responsibility into a company’s external reporting.

In the US, certain companies have shown interest in reporting more non-financial information voluntarily. Recent research shows that nearly all of the S&P 500 companies made at least, one sustainability relateddisclosure in their financial reports. Only seven of those companies claim to have published integratedreports.

Stakeholders increasingly expect companies to disclose environmental, social, and governance information through reports or other means, such as websites. And, mandatory sustainability disclosure requirements have been adopted or proposed in many countries, includingrequirements on specific topics like carbon emissions.

Investors are taking note, recognizing a correlationbetween sustainability and financial performance. In one study that deals with “high sustainability” companies demonstrated better stock performance, lower volatility, and higher return on assets and return on equity than “low sustainability” companies. So, it is not surprising thatinvestors are increasingly considering nonfinancialfactors, such as resource scarcity, when assessing companies’ long-term prospects.

In fact, some companies have attributed their exploration of integrated reporting to increased questions frominvestors on corporate governance.

Investors are also looking for insights on other factors

that might impact the business. Depending on the sector in which the company operates, these factors may include human resource issues, such as talent attraction and retention, intellectual capital, and environmental or social matters. This increasing demand for more transparency can be an opportunity for companies. There is a growing body of research that shows that greater transparency can improve companies’ access to capital. Voluntary disclosure is also increasing and companies recognize that enhanced reporting of non-financial information provides financial value, drive, innovation and enhance their reputation fortransparency.

As companies consider an integrated approach to reporting, their traditional performance reporting may reflectvarying degrees of integration and different approaches to communicating data. Some companies have produced non-public integrated reports, which have enabled them to test systems and processes internally. Others have incorporated integrated reporting concepts into theirannual reports.

Corporate reporting will continue to evolve with the changing business environment and stakeholder expectations. Adding integrated reporting to management’s agenda and to board strategy sessions may help companies determine how to meet these evolving expectations. The integrated reporting concepts may provide companies a useful framework when considering how to best disclose environmental, social and governance matters that they have decided to report. Companies may also improve their access to capital and achieve strategic business benefits from integrated thinking.

PHARMACURE Plc.Member of the MIDROC Ethiopia Group

Manufacturer and Supplier of High Quality, Affordable Drugs

Tel: +251 116 604 820 Fax: +251 116 604 825 P.O.Box: 5542 E-mail: [email protected] Ababa, Ethiopia


Workplace Daycare at Technology Group Premises

Unavailability of workplace child care center results in employees’ frequent absence, low productivity and high turnover. Companies that have on-site child care centers find itbeneficial both to employees and themselves. The availability of child care centers in companies reduces parental anxiety and stress, creates happiness feeling and enables workers to make some balance between work and family affairs.

Considering these advantages, MIDROC EthiopiaTechnology Group, has recently inaugurated a child care center at its headquarters at Mechare Meda.

The center which is expected to offer a very vital service, chiefly for breast feeding employees has the capacity to serve 20 children of workers at a time. By the time of inauguration of the center, 13 babies had already been accommodated.

The center is equipped with the necessary child feeding, entertainment facilities, toilets, sleeping and resting comforts. Feeding mothers working for the groupcompany access the care and support facilities taking turns.

MIDROC Ethiopia Technology Group Chief Executive Officer, Dr. Arega Yirdaw during the inaugural ceremony said that the opening of the child care center would greatly help feeding mothers to do their job unworriedly and take care of their babies at their workplace.

“The child care service offered by the company would enhance mothers’ crucial role of nurturing their babies.” Dr. Arega said.

He also pointed out that the clinic at headquarters of the Corporate Office is always ready to provide first aid and ambulance services for the children in cases of

emergency. Regarding Corporate benefits most companies obtain comparative advantages by offering on-site childcare as employee benefits outweigh the costsinvolved. A company is able to recruit and retain well trained staff and there is better employee morale boost in the final analysis. There are also lower rates of absenteeism as parents don't need to take time off their work for their babies.

Many on-site day care centers across the world arereported to have increased concentration and productivity on the job. On-site child care reduces stress of parents and eliminates their worries because they find reliable, acceptable and accessible care center. Hence, employees’ attention is on work and not on deterring trepidations.

Moreover, parents know that affordable, dependable and good child care is rarely available at workplaces. Therefore, they are often grateful to a child-care option and consider it as a significant and necessary employee benefit.

When children are at a close attention, parents and children experience minimum or no separation anxiety. Parents can drop in during a lunch break or when the workload allows, for example, for reasons such as nursing or to find out how a child with a cold is faring. In addition, there is feeling of confidence and comfort in knowing a child is cared for by someone who is associated with the company a parent works for.

By having your baby around your work place, you can continue breast feeding fulfilling the nutritional requirements of “exclusive breast feeding for the first six months” as per professional advice of doctors of this modern era. No need, no trouble to pump out breast milk.


POS Service is a modern payment service in which the merchant (Hotels, Restaurants, Supermarkets, Tour and Travel Operators, Hospitals) is able to accept cards for payment using the POS(Point of Sale) terminal installed by Dashen Bank.

Dashen Bank is the only Bank in Ethiopia which has become a principalmember of the three world giant card associations i.e. Visa, MasterCard and Unionpay. All its POS terminals accept cards branded with their affiliate card associations i.e Visa electron, Visa Plus, Maestro and Cirrus cards.


Dashen Bank and the American Express have recently entered into partnership agreement granting the former a license to acquire merchants onto the latter’s network in Ethiopia.

After the signing of the agreement, Dashen Bank President Birhanu Wolde-Selassie said: “To bring on board the valuable ‘American Express’ brand to our product family will enable us to heighten our position as a preferred domestic bank by international customers.”

The partnership is believed to help Dashen to beprofitable by strengthening its growing reputation in addition to ensuring the vision it has set to be an important business hub in Africa.

The launching of the service will also give American Express Card Members the opportunity to use their Cards with Ethiopian merchants acquired onto the American Express merchant network by Dashen Bank. Card Members will also have access to American Express’ worldwide-ATM network.

Peter Wright, Executive Vice President at American Express also commented: “Dashen Bank is one of the top financial institutions in Ethiopia with a provencommitment to excellence and customer service. Our merchant acquiring partnership represents an important step in growing American Express’ merchant network and brand presence in Ethiopia, and we look forward to working with Dashen Bank to grow our mutual business together”.

Merchant acquiring service is the process that enables merchants to receive credit and debit card payments on top

of cash transactions. It enables business to automatically transfer funds, speeds up safe transactions and facilitates multi-channel purchasing using card to a wider customer base by enabling payments to be received over the Point of Sale (POS) terminals.

The main services provided by acquirers to merchants are the capturing, authorization and processing of card payment transactions. The acquirer then settles the funds back to the merchant from the cardholder via issuer through relevant card scheme.

On top of merchants’ transaction on POS terminal, the service also enables the cardholders use their cards on an automated teller machine (ATM) for cash withdrawalpurposes.

Dashen Bank is a leading private bank in Ethiopia, operating a nationwide network of branches, ATMs and Point of Sale terminals (POS). Under the terms of the partnership agreement with American Express, Dashen Bank would begin acquiring merchants onto the American Express network in Ethiopia. Dashen Bank will also beresponsible for managing all aspects of the merchant relationship, from acquisitions to statements and marketing activities.

The bank is a pioneer in the development of the cardpayment system in Ethiopia, in terms of merchant, ATM and branch coverage. Currently the Bank is working with four international card brand schemes i.e. Visa, MasterCard, Union-Pay International and American Express to avail service for it’s own as well as international cardholders.

Networking banking services


Partnering for a better future

Working in partnership and creating exchange programs are said to be significant means of improvement among educational institutions. The experience of reputable universities and colleges across the globe also corroborate this fact. Many of the higher learning institutions have realized their vision of becoming important centers of excellence through strong collaboration and partnership.

It is with this understanding that the Unity University, the biggest private higher educational institution, entered into an agreement of partnership last May with the Addis Ababa University, the oldest and the biggest public higher education institution of the nation.

The agreement intends to create an opportunity for the two higher education institutions to utilize theirresources in common. After the signing of the agreement,President of Addis Ababa University Dr. Admasu Tsegaye and President of Unity University Dr. Arega Yirdaw said the partnership would enable the universities to mutually utilize their capacities and exchange experiences instead of always searching for a partner overseas.

Underlining the fact that at present private universities in Ethiopia do not offer Ph. D. courses, Dr. Arega said that the agreement would allow instructors of Unity University to pursue their education to a higher level at Addis Ababa University.

Dr. Admasu on his part said that the two universities are planning to jointly conduct various researches. “Seizing the opportunity of relationship it enjoys with MIDROC

companies, I hope Unity University would assist in facilitating University-Industry linkage for our students,” Dr. Admasu said.

“So far, universities have been considered as Islandsdoing their business mostly in isolation from the surrounding world. However, this time around, they need to strongly move to relate to the society and industries.”

“The agreement is also expected to facilitate condition for instructors in the universities to contribute their share by practically identifying and solving problems of theindustries.”

Dr. Arega on his part said, “Though the agreement has been signed now, the two universities have alongstanding relationship.” He also indicated that becausethe construction of the Engineering Department Laboratory is still in progress, Unity University is using the Adds Ababa University laboratory at the Amist Kilo campus.

He further indicated that the central idea of the agreement is to make students beneficiaries of the partnership, adding, as the President of the Private Higher Institutions Association, Dr. Arega said that he would do whatever he can to help other private higher educational institutions establish similar cooperation with Addis Ababa University.

Unity University is the biggest privately-owned university in Ethiopia and is also a sister company of the MIDROC Ethiopia Technology Group.

Dr. Admasu Tsegaye and Dr. Arega Yirdaw exchanging the signed document


Bench Events, the organiser of The Africa Hotel Investment Forum (AHIF), the world’s leading conference on hospitality investment in Africa, on July 2, 2014 announced that the Sheraton Addis is going to host the forum of September 29 –October 1, 2014.

Organizers told a press conference held at the Sheraton Addis that the two day conference will take place in Addis Ababa for the first time under the theme ‘Reaching New Heights’. It would attract foreign investors to have a closer look at the country with a forecasted economy of USD 7.5 billion in 2024.

Asked by TIRET Magazine following the pressconference via e-mail, Omar Khoso Carrera, SheratonAddis Marketing Director, East and South Africa Division of Starwood Hotels and Resorts said, “Since Sheraton Addis is the venue for many big city-wide events, we are pleased to have been chosen for this high profile event.” Our divisional executives will be attending the event both as sponsor and as participant, the director said.

Carrera also indicated that the Sheraton believes that the forum would create opportunity for stakeholders in theindustry to exchange experiences and best practices.

“The Sheraton Addis is pleased to host such big events which offer opportunities for knowledge and so many queries which lead to anticipation and perfection,” he added.

25

Sheraton Addis extends hospitality Matthew Weihs, Bench Events Managing Director, during the announcement, also said, “Ethiopia remains to be one of Africa’s ‘best kept secrets’. Few peoplerealise that its economy is growing at more than 7% per year and that it is forecasted to be the third largest economy in Africa by 2025. For the tourism industry, this event is an opportunity to focus attention on what African countries individually, and the continent as a whole, have to offer in both product and opportunity.”

Tewolde GebreMariam, Board Chairman of the Council of National Tourism Organisation and CEO of Ethiopian Airlines on his part said “We have a long term vision to make Ethiopia Africa’s most important travel destination and I am eagerly looking forward to discussing how we deliver that vision with a multitude of business leaders at AHIF.”

The conference will focus on the geopolitical and economic climate across the African continent and thelatest developments in the hotel sector. Big issues such as the importance of conserving Africa’s tourism assets and connecting each of the African countries through efficient, new infrastructure will be discussed. The feasibility ofinvesting successfully in Africa in general and in hospitality in particular will be explored in a series of panel discussions led by a group of experts on eachtopic. Speakers are drawn from the ranks of government, hotel chains, banks and a range of prominent consultants.


Tea Out-Growers Scheme for a Shared Value

Atirsaw Wolde-Mariam is a tea grower in the MichitiKebele, Gimbo Woreda of the Keffa Zone of the Southern Nations, Nationalities and Peoples Regional State.

He has grown tea for well over a decade and had been challenged by several problems such as lack of adequate support from concerned bodies and the low price of tea leaf given by buyers.

However, this time around, Atirsaw said that he is collecting the fruits of his hard work due to the Tea Out-growers Scheme being implemented by the EthioAgri-CEFT PLC, a member of the MIDROC EthiopiaInvestment Group, in his locality.

Growing tea on one hectare, he earns quite significantamount of money weekly selling tea leaf to the tea

The tea out-growers scheme is expected to benefit many farmersGumaro tea estate


processing factory of the Ethio Agri-CEFT in his kebele. Atirsaw is also happy about the technical support he receives from tea experts of the organization.

“We used to receive only 75 cents for a kilo of tea leaf for long but now we are paid Birr 4 for a kilo of exportstandard tea leaf and Birr 2.75 for other grades. This isreally has brought a significant improvement in our lives.” He also says that the management and experts closely work with farmers providing them with technical support and advice supplying inputs such as fertilizer and chemicals with reasonable price as well as the necessary logistics to transport the tea leaf from the plantation to the factory. “Now, as our income increases, our lives have changed for the better and we are thankful for the support andopportunity created by Ethio Agri-CEFT.”

The company launched the tea out-growers scheme in 2004 both at Wush Wush and Gumaro tea estates.

However, tea growing by individual farmers mas not sufficiently promoted and developed to boost production so as to increase export volume and earn foreign currency as Sheikh Mohammed Al-Amoudi would have envisioned it.

Of course, the tea processing factories in Wush Wush and Gumaro have made great strides in substitutingimported teas with their own brands and saving the country’s foreign currency expenditure producing over 66,000 quintals of tea per annum.

Given the constraints to get land for further expansion of tea plantation due to the forest conservation policy of the government and the ever growing demand of the teaprocessing plants for more tea leaf, Ethio Agri-CEFT once again is embarking on the promotion of small-scale out-growers scheme.

To this end, the tea seedling handing over ceremony held on June 13 and 14, 2014 at both the tea estates in the presence of higher government official is a case in point.

The company handed over 2.4 million tea seedlings to over 140 out-growers around both Wush Wush and Gumaro with an outlay of Birr 22.4 million. This would enable farmers to develop additional 171 hectares in addition to the existing 10 hectares.

This brings a glimmer of hope for farmers in the neighborhood of the two tea estates. Chuchu Degefu is a resident of the Gimbo Woreda of the Keffa Zone. Along with her 30 employees, Chuchu was preparing her plot to plant tea when the team of journalists and TIRET’s crew met her on the eve of the seedling handing over ceremony.

“I used to grow maize and other crops, but now I changed my mind to growing tea as I have realized the huge difference between growing tea and other crops”

Chuchu said that her fellow tea out-growers encouraged her to shift to growing tea and now she has prepared 14,000 holes to replant the seedling that she is going to receive from Ethio Agri-CEFT the following day. “I hope my income would considerably increase in the years to come,” Chuchu anticipated.

According to Ethio Agri-CEFT General Manager, Esayas Kebede, the company has set to expand its productioncapacity with frequent promotion of out-growers scheme.

He said that the company would do its level best to benefit farmers from the tea development. In addition to involving the farmers in the tea growing, he added, the company is carrying out various activities to provide other social and economic supports to the community.

“For instance, Ethio Afri-CEFT has built two blocks of classrooms and a laboratory at the prem-


ises of the Wush Wush primary school with over Birr 1.5 million upgrading the school to a high school level.” This has enabled students in that locality access high school education in their own village.

Similarly, the company has built a secondary school with three blocks of classrooms, an assembly hall and alaboratory with an outlay of Birr 2 million in Gumaro.

Guests of Honor, at the seedlings handing over ceremony Oromia Regional State President Muktar Kedir andSouthern Nations, Nationalities and Peoples State Deputy Chief Administrator and Head of Agricultural Bureau Sani Redi, encouraged farmers to widely engage in the tea growing activities and improve their livelihoods.

Representative of Sheikh Mohammed H. Ali Al-Amoudi, owner of the Ethio Agri-CEFT PLC, and Patron of the Company, Jemal Ahmed on his part said that the company plans to expand its current tea plantations five fold and install additional processing plants to ensure mutual benefit with the farmers.

Jemal also pointed out that Sheikh Mohammed H. Ali Al-Amoudi is committed to extending all the necessary support to realize plans set by the company.

Wush Wush and Gumaro which are located in the South Western part of Ethiopia are the largest commercial Tea Plantations in the country. These formerly state-owned plantations together with their respective tea processing plants and the packing factory in Addis Ababa were acquired by MIDROC Ethiopia in 2000.

The Wush Wush Tea Plantation is endowed with ideal ecology for the production of good quality highland tea

and has a total area of 4, 236 hectare covered with 1,253 and 977 hectares of tea plantation and eucalyptus trees (used for steam generation) respectively and the rest of land is used for other purposes. Currently, it produces over 39,000 quintals of black tea per year.

Tea seeds were introduced to Gumaro in 1928 through Gore town which is adjacent to the Tea Plantation. It is believed that The British Consulate in Gore (operational during the time) obtained seeds from India and distributed them to local farmers. Then in 1957, a Lebanese expatriate living in Gumaro, in cooperation with a Belgian, expanded his tea estate to 25ha. In 1981 the Government started an expansion plan and developed it to its present total size of 2603 hectares with 873 hectares for tea plantations, 714 hectares for eucalyptus tree plantation and the rest with infrastructure and natural forest. The current annualproduction capacity of Gumaro is over 27,000 quintals of tea.

The out-growers scheme is expected to significantly benefit the farmers through creating sustainable and secured market, provision of inputs and production services, facilitating financial credit and making them familiar with new technology.

one of the tea out-growers receiving a seedling from theOromia Regional State President Ato Muktar Kedir

Ato Jemal Ahmed and Ato Sani Redi cutting ribbon at the seedling station of the Wush Wush tea estate


Tel.: 0113-69 03 60 / 69 03 63-67 Fax: 0113 - 69 03 84 / 69 03 08 E-mail: [email protected],[email protected] and [email protected] Website: www.ethioagriceft.com P.O.Box: 1006Tea Processing and Packaging Factory Tel.: +251 113 202 393 / 37131 00 Fax: +251 113 712 229

P.O.Box: 2526 E-mail:[email protected]

Committed to integrated farm development

with enviromental sustainability


NYALA MOTORS S.C

VE COMMERCIAL VEHICLES (A VOLVO GROUP AND EICHER MOTORS JOINT VENTURES)

VALUE FOR YOUR MONEY!

- Seat capacity: 32 seats/ 58 seats/ 66 seats- With variant to users (School Bus, Staff Bus Tourist Bus)- Ergonomic driver cockpit- Higher speed accelaration and better gradeability- Larger span suspension for excellent ride- Modularity/straight frame chassis high durability

Exclusively supplied by Nyala Motors S.Cwith 40 years of practical exprience in the industry, we have much to offer

with ample parts supply and dependable after sales serviceAddis Ababa

Tel: 0116 612 711 /62 7196/ 61 3919

Fax: 01 16 27 426 / 61 0379E-mail: [email protected]

P.O.Box: 1194et

BahirdarTel. 0582 203 151Fax: 0582 206 500

P.O.Box: 421

Dire DawaTel: 0251 118 484Fax: 0251 118 482

P.O.Box 50

HawassaTel: 0462 205 470Fax: 0462 205 469

P.O.Box: 475

MekeleTel: 0344 415 713Fax: 0344 415 706

P.O.Box: 188

A TRUE BUSINESS PARTNER! 4 and 5 ton capacity Trucks

- Fuel efficient E483 turbo charged inter cooler engine- Engine output of 115 HP and high torque of 330 NM- Powerful engine ensures better acceleration and speed- Low turning radius for easy manueuverability- Strong suspension with high load carrying capacity


Ato Abraham Abegaz, Nyala Motors CEO

Nyala Motors CEO elected as automotive association chairman

On the establishment of the Vehicles and MachineriesImporters and Assemblers Sectorial Association, theAssociation elected Abraham Abegaz, Chief Executive Officer (CEO) of Nyala Motors S.C, MIDROC Ethiopia Investment Group affiliate company, as its BoardChairman on june 5, 2014.

Eng. Alemayehu Mengesha, Managing Director of RiesEngineering, was also elected as a member of the Board of Directors to lead the association which embraces fourteenmember companies including Equatorial Business Group (EBG) and National Motors Corporation (NMC).

Ato Abraham in his remark raised a few of thechallenging tasks the Association would tackle: “The full percentage payment for a Letter of Credit (LC) from banks, the price defrayal by the Ethiopia Revenue and Customs Authority (ERCA) on the automotives for taxation, the shortfall of foreign currency and thelengthy process at the Ministry of Transport (MoTr) in the registration of new brands are some of the major challenges we are facing,” said Abraham. “This forces us to have excess stock in our warehouses.”

Some of the major objectives of the association are:campaigning for the adoption and implementation ofpolicies that enable the industry to be strong and competitive, working to address the challenges of thecompanies that they face at the local and international levels and tackling problems members could face in the course of their business operations.

Ethiopia remains a relatively small market for automobiles, but in recent years it has shown a sevenpercent annual increase after the Growth and Transformation Plan (GTP) was initiated in 2001.

MIDROC Ethiopia Investment Group affiliate companies in the Association

Ries Engineering S.Co. (RESCO) which has been representing Caterpillar and Massey Ferguson since it started operation in 1961 has now diversified itsoperations adding products of other reputable manufacturers.

Nyala Motors S.C., which was founded in April 1973,represents NISSAN, UD TRUCKS (the former NISSAN Diesel) and EICHER Trucks and Buses.

National Motors Corporation (NMC), which was established in 1993, is mainly representing the Chevrolet and ISUZU brands in Ethiopia.

Equatorial Business Group (EBG), established in 1993,imports and distributes Volvo trucks amd construction machinery, Mazda pick-ups, Chinese automobiles, Cummins generators, OTIS elevators and brand pharmaceutical products for both human and veterinary use.


Tel: +251-114-33 76 56/57/58 +251-114-37 12 67 Fax: +251-114-37 14 75+251-115-50 74 17+251- 115- 507071 Addis Ababa E-mail:- [email protected]. Box: 945 Code 1110Addis AbabaEthiopia

Cost effective Performance Packaging by Design.


The 19th General Managers’ Consultative Group (CG) Meeting of the MIDROC Ethiopia Investment Group companies convened on August 7, 2014 at the Sheraton Addis and discussed issues of “Business Sustainability”.

Opening the Consultative Group Meeting, MIDROC Ethiopia Designate and CG Chairman Ato Teklu Haile said that Business Sustainability has its varied characters.“We in the ‘Group’ have to be open to change, improvement, adapting new skills and change attitudes to achieve our short and long term goals to remain in business.”

“In line with the vision and commitment of MIDROC Ethiopia’s Owner and Chairman, Sheikh Mohammed H. Al-Amoudi, our group companies are making significant contribution to the country’s economic growth. We need to sustain this growth.”

“Exchange of opinions, capability of learning, looking in one direction will enable us to sustain balanced growth. We have to create a happy and energetic team which is ready to work with others and then success will follow,” Ato Teklu said.

According to many scholars in the field of Business Administration sustainability has to do with pursuing business firms’ performance in economic, social and environmental spheres.

Others also relate Business Sustainability with Governance and Creating Value (growth, returns on capital, and risk management).

The CG meeting on the occasion recommended that the companies in the group need to start institutionalizedfinancial synergy in the best way possible.

During the second session of the meeting a presentation on “An Overview of Star Soap and Detergent Industries PLC” was made by the General Manager of the Company, Ato Saeed Ahmed which was followed by a heated debate and discussion on the challenges and prospects of soap and detergent business in Ethiopia in general and that of Star Soap and Detergent Industries Plc in particular.

Ato Teklu Haile, MIDROC Ethiopia Designate and Consultative Group (CG) chairman (left) and Ato Saeed Ahmed, Star Soap and Detergent Industries PLC General Manager (right)

Highlighting “Business Sustainability” 19th General Managers’ CG Meeting


Awassa Chipwood Factory Plc.

Mission for Prominence

Manufacturer and supplier of best quality board with various thicknesses(6mm - 40mm) used for ceiling, partitions, expansion joints, office andhousehold furniture.

Tel: +251 462 206 387 / +251 462 211 513/14/15Fax: +251 462 206 725

P.O.Box 1186E-mail: [email protected]


MIDROC ENERGY HOUSE Electro-Mechanical Services Plc

Grade 1 Contractor

Committed to safe and efficient services with competitive delivery of FIRST-CLASS

Electro-mechanical engineering and installations services.

Your partner in the planning andexecution of

electro-mechanicalprojects.

Tel. +251 115 535 968 Fax: +251 115 535 971 P.O.Box: 27784 code:1000E-mail: [email protected] Addis Ababa, Ethiopia


The effectiveness of a construction activity is highly determined by the optimal and professional management of the equipment deployed.

In addition to labor and materials, the utilization of construction equipment has a direct impact on the overall success of a construction project. The use of construction equipment or earth moving machines can be profitable and time saving if managed properly.

All major infrastructure and other development projects like roads, mining, bridges, tunnels, dams, etc. require the use of heavy equipment to assist most of the construction activities.

36


COVER STORY

These projects typically require a large number of highcapacity equipment, making the initial investment need high.

The piece of equipment one purchases, therefore, is a very important investment. The two main things that are equally important as the investment are; to keep the equipment operational maximizing productivity while aiming to achieve the lowest possible cost per hour or per unit of production. To achieve these goals, one needs to establish proper equipment management systems, says Fekadu Mengistu, Deputy Managing Director of Ries Engineering S.C.


* proper record keeping system to provide information for maintenance planning, productivity, and cost build up,The above requirements are essential to achieve theultimate aim of lowest total cost in the overall life span of the equipment, i.e a combination of highest production and lowest investment and operating costs.

Every type of equipment, simple or complex, has got components that wear out. While normal wear out is expected and predictable, abnormal wear out may be caused as a result of improper maintenance or operating techniques.

By taking a proactive approach to maintenance, equipment break downs could be avoided and equipment can be managed with the lowest possible cost.

While addressing the 18th MIDROC Ethiopia Investment Group and Affiliates Companies Consultative Group (CG) during the March 27, 2014 meeting, Eng. Fekadu said that a proper equipment maintenance management programincorporates the following main programs:

1. Appropriate Preventive Maintenance Program 2. Regular Inspection & Technical Analysis Programs 3. Scheduled Oil Sample Analysis 4. Appropriate Repair Management Program 5. Operators & Technicians Training Programs

Each one of the above provides part of the completemaintenance management program. Each one alone will not give a useful result, but when one is supported with the other they provide a meaningful equipment management tool, according to Fekadu.

A maintenance management program that encompasses all the above programs will allow: - an increase in equipment life, - planning of down times, - increase of equipment operational times and - reduction of equipment operational cost

As equipment ages, equipment down time increases, productivity falls and operation and maintenance cost increases. No equipment management program is, therefore, complete without a well thought and planned equipment replacement policy.

Equipment Management is, therefore, a means towards achieving job profitability and an indicator of the difference between job profit and loss.

In today’s world where competition is fierce, and where profitability is often a challenge, effective equipmentmanagement with the ultimate aim of getting the maximum productivity at the lowest possible cost is a critical issue.

Getting accurate picture of the machine condition will help catch early warning signs to implement repair before failure, which in turn reduces maintenance and repair

Ato Teklu Haile, MIDROC Ethiopia Designate and CG Chairman opening the meeting

Fekadu told the 18th MIDROC Ethiopia Investment Group and Affiliates Companies Consultative Group (CG) meeting, which was held on March 27, 2014 at the Sheraton Addis, that proper maintenance program isimperative for successful equipment management to reduce equipment down time and to minimize operational costs.

The aim of equipment management is to maximizeequipment performance at a minimum cost. It is maximizing the availability and productivity of the machines that we use for various earthmoving activities like clearing and grubbing, top soil removal, excavation, backfill, grading, spreading and compacting byminimizing time spent and reparation costs of the equipment.

According to Eng. Fekadu good equipment management system focuses on a proper decision making process, which includes among others: - Selection of the right fleet of equipment that matches with each other and the job requirement and the best acquisition method, i.e purchase or rent, - Having in place; * trained personnel to operate and maintain the equipment, * proper planning and follow-up system for maximum equipment utilization and productivity, * proper maintenance system to extend the life of the equipment, reduce time and operational cost,

For most of our companies, the equipment we

posses are important in today’s operation.

““Ato Teklu Haile


Tel: +251-(0)11-4 421133Fax: +251-(0)11-4 420667e-mail: [email protected]

Automobiles, Station wagons, Pick-up trucks, Vans, Wagons, Ambulances

Diesel Engines

Tel: +251-(0)11-4 421333 Fax: +251-(0)11- 4 420667www.riesethiopia.com; [email protected]

Asphalt Plants & Equipment


costs. It will also help in monitoring machine misuse and abuse, maintaining and improving machine availability and performance. This would enable an organization to increase profitability.

In summary, a good management of earth moving machines begins with a careful planning and acquisition process. Identifying our equipment requirements in terms of quality and size is very necessary. It is also veryimportant to determine their matching capacity with other related machines, based on the activities to be carried out, site condition, period of project completion and working shifts. Further, planning of equipmentacquisitions goes with activities like manpowerdevelopment for equipment operation, preparation of workshop and tools for maintenance, warehouse and spare parts and planning for stocking consumables like wear items and lubricants.

Once we acquire earth moving machines, we need to keep proper record for the whole life cycle, from receipt to disposal. These records are mainly on productivity, fuel, wear items, and lubricant consumption, as well asmaintenance history. This helps provide information to make right decisions either for maintaining equipment or for disposal.

According to Eng. Fekadu, effective preventive maintenance and inspection are the foundation elements of a good maintenance program and are the two crucial strategies to make the life of our machines longer and maximize our profit.

Using quality fluids and genuine filters, offeringtraining to machine operators and technicians, implementing Repair-Before-Failure concept, good communication and record keeping should also be at the center of equipment management efforts.“What is not maintained is left for destruction,” Fekadu underscores.

MIDROC Ethiopia Designate and Consultative Group(CG) Chairman Ato Teklu Haile on the other hand says

39

that construction equipment management is a problem that is prevailing in most of the group companies.

“MIDROC Ethiopia had prepared a generic maintenance manual especially for manufacturing industries and this was made available to you. It is a beginning of the road, not the end,” he told participants of the CG.

“For most of our companies, the equipment we posses are important in today’s operation and even in crafting our future chapter of success,” the Designate added.

“RESCO can help in managing our equipment.”

With regard to pre and post sales support on earth moving machines, MIDROC Ethiopia Group companies can use the rich experience of Ries Engineering S. Co. (RESCO), one of their affiliate companies. “The company is engaged in the distribution of construction machinery and equipment, agricultural machinery and equipment, diesel power generator sets and associated equipment, motorvehicles and lift trucks, asphalt plant and sprayers. It represents internationally reputed companies like“Caterpillar” Eng. Alemayehu Mengesha, RESCO Managing Director said.

He also said that “the company provides full pre and after sales support to its customers including spare partssupply and maintenance services so that they can get the full value from the machinery and equipment they purchase from the company.”

Companies are also welcomed by RESCO to benefit from its specialized services - Pre-purchase advisory services in specifying machinery types and number, configurations, attachments and the like to enable customers purchase the most suited equipment to their jobs. In addition, the company provides valuable and professional services in assembling, pre-delivery inspection; setting-up and testing newly purchased machinery and equipment and training of customers, operators and technicians on the operation,

Eng. Alemayehu Mengesha, RESCO Managing Director

Eng. Fekadu Mengistu, Ries Engineering S.C. Deputy Managing Director


The need for strengthening our business schools

By Johannes Kinfu (Prof.)

In May 2014, a conference organized by the Association of African Business Schools (AABS), founded in 2005, convened in Nairobi, Kenya under the theme “ManagementEducation in Africa” attempting to link business and business schools to play an active role in sustainable development of the African economy.

The conference that brought together many Business School leaders in Africa and associates from international organizations in Europe and Africa was meant to facilitate a “thought provoking” discussion among colleagues from Business Schools.

Considering Africa as an emerging continent of hope and potential frontier of economic growth, governments,corporate business and stakeholders at large are raising questions of how the skilled manpower needed in business is being developed in Africa and querying the contribution of business schools in Africa to economic development of the continent and to the provision of “Responsible Management Education” so desperately needed in the global risk of “inequality” and social instability.

Very interesting presentations and highly educationaldiscourses were held on how responsible and qualitymanagement education can be provided in African Business Schools.

COMMENTARY


Vision Aluminium Manufacturing Plc.

Tel. 011 416 6007 /33/68 Fax: 011 416 6098 P.O.Box: 20011/100 E-mail: [email protected] Addis Ababa, Ethiopia

Supplier,Manufacturer & Provider of Installation Service of Aluminium

Building System


Business management as a university subject matter wasa later development in England considering that Manchester School of Business started in the 1960s. In African countries, one can say that business schools started right after the independence of most and whenuniversities were set up.

The evolvement of business education vis-a-vis the traditional liberal arts subjects like Economics, Political Science and Philosophy and later on Public Administration, was part of a search for an appropriate curriculum development in business. Business usually encapsulated as commerce or trade was to be treated in traditional liberal arts education system mainly in relation to Economics, Philosophy, and Political Science and Public Administration areas of study. This was part ofinternal academic politics in the acceptance of business as a distinct field of academic study and in search of a place for professional/vocational schools in a university or higher education structure.

Theory and Practice

Within internal academic politics, the question of whether business management is a matter of theory orpractice has been always there. For those with traditional view, business was a matter of doing not just thinking. If the thinking is to be done at all, it must be in relation to economics and political science or public administration at the level of government leadership and decision making.

It took quite a dialogue to convince the academia that innovative thought would require both aspects (theory and practice) and therefore the need to develop a framework for integrating practice and theory through business case studies (as developed by Harvard Business School) was part of the strategy. Butmanagement education requires innovative thinking and not only iterative teaching of past practices. The discourse of the matter is part of the dynamics of business schools’ curriculum even today. In CBA in Ethiopia, this involved the preparation of case studies as teaching materials.

Challenges of Our Business Schools

First, Business Schools in Ethiopia and for that matter in Africa face challenges related to inconsistency due toregime changes and unstable academic administration which inevitably shapes their past, the present, and their survival.

Second, they face constraining teaching/learning environment as a result of traditional liberal arts system and structure which are not conducive to responding to changing learning/teaching needs as they arise.

Third, Business Schools are stuck with past curricula which are not as relevant to the current social, political, and economic realities.

It was also noted that it is important for Business Schoolsin Africa to examine their historical background to point out where or how they came to be and what process of change they have undergone to chart out their future to provide quality and responsible management education.

I think the realities of Business Schools (BS) in otherAfrican countries cannot be different from that of ours.

In Ethiopia, we also see the establishment of traditional Liberal Arts education with the Faculties of Arts and Science of the Addis Ababa University in 1950 (Former Haile Selassie I University). Within the Faculty of Arts, we have Economics, Philosophy, Public Administration and Political Science leading the fields of study.

It was in the 1960’s that we saw the founding of theCollege of Business Administration (CBA) and LawFaculty at a higher education level and structure, with specialized areas of study in functional management(accounting, management, marketing, etc.). It is important to note here that this was prompted by the coming out of the Commercial Code of Ethiopia (in 1960).

In 1970–1980 Ethiopia went through changes in political ideology, a move towards socialist orientation from feudo–bourgeois regime. During this period there was pressure to abrogate the Business School which was thought as propagating feudo bourgeois capitalist thinking. Thus, “The College of Social Science” was founded combining liberal arts education and business studies together under one umbrella.

In the 1990’s the Ethiopian political agenda was changed to mixed economy, and business management studies were brought back under the Faculty of Business and Economics (FBE), bringing Public Administration, Management, Economics, Accounting and Finance Departments under them.

By 2000 there was the political vision to foresee thedistinction between public and private administrationunnecessary, as the major employer was the publicsector and the graduate manpower to reflect the managementfunction scenario.

Starting in 2010 a new strategic planning platform argument led to the restructuring of disciplines. The business management education focus was brought back under the name of College of Business and Economics (CBE) with the basic functional management specialization areaincluding Public Administration, Development, Administration, and Economics.

Business Management as Academic Discipline

Education as an academic discipline (subject of study) had taken quite an uphill struggle to develop and establishitself in a university or tertiary level education. Let alone inAfrica this is true even in the developed world.


and all inclusive stakeholders, like students, teachers and the society at large, to be aware of the needs of the society and economic environment in advance. They must create opportunity for dialogue on the past and present realities to envision future directions.

Thus, they must be ready not only to teach the past and the present but also the future. The past shapes the present, and the present shapes the future. As Daron Acemeglu and James A.Robinson, in their book reflect: “institutions are significant incentive creators of prosperity or poverty”. Prosperity and poverty are determined by the incentives created by institutions and how public policy determines what institutions a nation has”. Business Schools arepivotal institutions in economic and social development or redevelopment.

What should we do then?

Towards mitigating problem appreciated and paving the way for more relevant and “responsible business management” education and to enable BS in Ethiopiacontribute to economic development of the country, the following measures are suggested.

• Teachers’ motivation and commitment to professionalism must be improved through professional development opportunities and appropriate incentive schemes. • Curricula must be reviewed intermittently not only to meet political pressure, but as a matter of principle with creative thinking, sharing and integrating with stakeholders’ needs.

• There must be a continuous regular training of trainers programs to constantly keep teachers on their toes, constantly challenged. In this respect, appropriate regular evaluation mechanisms should be in place.

• Research should be a major component of BS teaching/learning experience to innovate, face challenges, and envision future changes. Research should not be undertaken only for promotion and international competition but also for exploring local challenges and mitigating them.

• BS should be involved in producing teaching and reading materials to supplement textbooks and provide local materials on local business enterprise experiences. Both of the above are important to motivate teachers and heighten their prestige in society and consequently their effectiveness at work.

Fourth, BS remain with staff that lack motivation and commitment to the teaching profession, as a result ofinadequate or low remuneration or incentive mechanism including opportunities for further studies and continuing professional education. Thus, the knowledge difference between students and teachers become symmetrical. Teachers get employed as part timeinstructors in several (3-4 year) colleges to meet living needs. They, thus, have hardly any time to keep one chapter ahead of their students.

Fifth, as a result of the above, the culture of research is low or non-existent. As the interfacing with stakeholders is limited, there is no interaction. Thus, teaching/learninginstitutions remain an island by themselves, devoid of linkage with the community they are to serve.

Sixth, curriculum is not reviewed and even if reviewed, the required teaching or reading materials are notavailable, and budget constraints hinder changes. Thus curriculum content virtually remains grounded on the past. The Higher Education Proclamation no. 35/2005 envisages introducing cost sharing scheme and a five year rolling budget grant or subsidy strategy. In principle, higher education institutions are to obtain 2-3 years budget inadvance. But a Seminar on Financial Management Capacity Building on Higher Education Project revealed the proclamation is far from being implemented. One of the major reasons for no implementation of the proclamation is said to be absence of manpower infinancial management to shoulder responsibility.

Seventh, another problem to appreciate is the lack of a dynamic developmental leadership to bring participative management and to delegate authority with responsibilityand accountability to faculty and departments. Many times Business Schools are criticized for producing business management leaders, but are not capable of having one for themselves. There are reasons for this, and one of them is the miserable remuneration mechanism to attract andretain highly qualified management leadership in the BS. In this regard, at least two of the private Business Schools in Ethiopia that have tried hard to provide manpower skill required in economic development endeavor are the Unity University, and St. Mary University. Even though these have provided manpower skill demanded and were popularized by students, themarket had to take them because of lack of choice.

Strengthening Business Schools

Role of Business Schools in a developing country like Ethiopia must produce qualified manpower to meet therealities of economic growth with “innovative and sustainable” strategies and decision. This impliesdeveloping professionals committed to build their career with integrity, and willing to welcome challenges to the extent of questioning their own decisions.

BS must be ready to revise their curricula. To do this, they must be involved in research, interact with “businesses”


Many car owners were once extremely disappointed to find out that a car manufacturing company overstated the horsepower in some of its models.

Following this disappointment, the company’s national Ministry of Construction and Transportation in 2001uncovered the misrepresentation.

Then after, a class action lawsuit claimed that the company was able to sell more cars and charge more per vehicle because of the false claims. In the end, according to the Business Insider, the auto powerhouse had to pay customers - the settlement was estimated to be between $75 million and $125 million.

It is obvious that unethical and misleading advertisements can lead to bankruptcy and business failure. In addition to financial consequences, the idea of business communication has to do with ethical concerns. Ethical business communication considers realistic and sincere advertising, as well as candid personal-selling tactics; understanding consumers’ psychological emotions. Otherwise, any mistake in communication can lead to the failure of a business. Honesty and openness about product safety and quality are important to consumers.

For instance, in the pharmaceutical industry drugs need to be sold with strict regulation and testing. Manysupplements are sold by small, independent marketers. Large pharmaceutical firms of our globe have now entered the herbal medicine market. However, a number of unethical firms are also operating misleading consumers about herbal products.

Some manufacturers also do not provide enoughinformation to their consumers about differences between products. So, labeling is an important aspect of communications that may raise ethical concerns related to products.

Health warnings are also other concerns of ethical business communication. Cigarette manufactures, for example, were first forced to put health warnings onpackages in the US in 1989 and a new law was adopted in 1994 requiring eight set of messages to be written on cigarette packages.

In non-manufacturing business firms also, communication needs to consider societal responsibilities and obligations

Principled business communication By Mekonnen Teshome Tollera

ensuring that information from the businesses are relevant and truthful.

The issue of Plagiarism

Taking someone else’s work and presenting it as your own without mentioning the source is another ethicalissue. In universities and colleges the issue of plagiarism is common. It has to with copying somebody’s term paper or quoting from a published work without acknowledging it.

The same goes in business, an ethical issue arises when an employee copies reports or takes the work or ideas of others and presents them as his or her own. A manager attempting to take credit for a subordinate’s ideas can be a case in point.

What should we do?

Therefore, every business should have a written policy for ethical communication. The policy needs to put details on what is expected of employees within the business. The policy should clearly communicate the standards that business activity and employees pursue. For example, it should clearly indicate what being honest in communications means, how to deal with customers and other employees fairly and how to report ethical violations that the employee witnesses. It should also outline the consequences of acting unethically within the business. The business organization should also educate the employees about its own ethical standards and organize various trainings for this purpose.

Basically, ethical business communication focuses on three important issues:

1. Honesty 2. Respectfulness 3. Sensitivity to cultural differences

As business communicators, we need to make sure that we are releasing relevant, truthful information in every sense and not deceptive information when communicating with customers and the public to avoid any danger related to public health safety, moral, security and stability.

We also need to avoid plagiarism, misquotation and misrepresentation of data or numbers and deliberatedistortion of visuals. Information released from business organizations should be complete and all vital; must beconveyed appropriately. Withholding crucial information purposely might result in the public conceiving a badimage; we might even be held accountable by law for wrong and misleading communication.

COMMENTARY


Star Soap and Detergent Industries Plc.

YOUR HYGIENE IS OUR CONCERN!

Tel: +251 114 392 036 / 36 88 / 1170 P.O.Box: 5521E-mail: [email protected] Addis Ababa, Ethiopia


COMMENTARY

Economic Growth and Economic Development: A Source of Confusion?

By Siyoum Gebrehiwot WoldemedhinManager, Business Development and Planning Department, MIDROC Ethiopia PLC.

Sometimes, it happens that some people may fail to recognize widely accepted facts. Various reasons can, in fact, be mentioned as sources of such behavior. One reason can be due to lack of access to credible information sources. Lack of traditions in understanding some phenomena with a sense of objectivity can also be taken as one of possible reasons. It is also natural that sometimes people might be caught up with too much nostalgialeading them to disapprove the contemporary widely accepted facts. Failure to recognize widely accepted facts may have, generally, various causes which have roots entrenched in the socio-cultural, political, economical, educational and environmental make-ups.

Due to various reasons as mentioned above, some people may have thus beliefs, among other things, that sound like there is no good economic policy and there is no economic growth in Ethiopia today.

It is my strong belief this piece of writing under no condition should be viewed as condemning those whose beliefs sound like above as I believe people have the right to live up to their own values, beliefs and own judgments. What I rather suggest is that we should not allow these opinions to lead us to some kind of pessimism.

Coming to the main theme of the writing, one of the areas being victimized by failure of recognition by some people (my concern is not the statistics but rather the prevalence of opinion) is matter related to the country’s economic growth. It is observable that there are some who are doubtful of the fact that there has been economic growth in this country.

Citizens who believe there is no economic growth may have been prejudiced by the aforementioned reasons. Let me try to elaborate one of possible reasons for failure to recognize results at the country level.

It could be due to lack of proper comprehension of matters in a way they should be understood. In this regard, one could suspect confusing the word economic growth with economic development. Michael Todaro, one of renowned development economists, defines economic growth as the steady process by which the productive capacity of the economy increases through time to bring about risinglevels of the national output or income.

From this definition it is easy for one to understand that economic growth is merely concerned with increase inannual national output or real Gross Domestic Product (GDP). It is rather a narrower concept as opposed to the concept of economic development which, in addition to economic growth, also includes normative elements like improvement in the standard of living, per capital income, income distribution (equity), education, health and other normative variables. So, just to explain the relationship between economic growth and economic development in common mathematical language, the former is the proper subset of the latter.

Apart from their definitional differences, economic growth and economic development concepts also differ in time frame perspectives they are measured. Economic growth performance of one country is usually measuredannually though it can also be measured on quarterly basis; whereas, economic development of one country is measured on long term basis. Besides, it is customary to measure economic growth with metrics like GDP or GNP (Gross National Product) growth rates; whereas, economic development is measured in HDI (Human Development Index) and others.

Then, the point is that confusing the concept of economic growth with economic development may have led some people not to recognize the country’s sustained economic growth. Here the rational question is then how come.


Lame Dairy PlcRIGHT CHOICE FOR BEST DAIRY PRODUCTS

Freshshola

products

Tel: +251 116 462 444 / 646 37 58 Fax: +251 116 460 092 P.O.Box: 2002E-mail: [email protected] Addis Ababa, Ethiopia

Let us imagine instances of chats when we meet with our friends, families and relatives over cups of coffee, tea or in any other sort of socialization atmosphere. During our chats, some may argue they do not accept the single digit or double digit economic growth of Ethiopia just because no change has come to their living standard or life styles. Likewise, others in the same kind of gathering instances would argue the widely told story of economic growth is not true because they still do not have homes, cars, etc.

Really, such encounters are many in our day to day lives. So here one can see, implicitly or explicitly, the confusionthat could arise between economic growth and economic development. So, wouldn’t it be the case one might be tempted to ponder over, like, confusion between economic growth and economic development the cause for denial?

Though it is good to show how failure to recognize the country’s economic growth may occur, it may also be unfair as well to say nothing on observed economic growth and development realities of the country. Given theinformation, at least, provided by the internationalinstitutions like the World Bank and IMF, one can get sufficient information to fairly say the country is in a good track of economic growth and development.

In fact, most of the source of failure (denial) to recognize attained results for some people is perhaps pronouncedly more entrenched in our socio-cultural and other factors than possible causes emphasized in this brief commentary essay. And the message is simple: as good citizens let our opinions and recognition culture be based on facts, appropriate information and knowledge.


Ascending Heights of Success

Setting new record in national oil industry

Ato Tadesse Tilahun, NOC Chief Executive Officer

National Oil Ethiopia Plc (NOC), Ethiopia’s indigenous downstream oil company, was established ten years ago. The company was legally established in April 2004 and went operational in November 2004. That was the time when the company launched its business activities with the first 11 fuel stations in Addis Ababa and Adama. With that big take off NOC was able to take about 15% of the market share the year after. Now it has established 140 fuelstations across the country.

NOC has secured three aviation depots at BoleInternational Airport as well as in Gambela andAssosa. Actually the latter two are targeting not only the Ethiopian market but also that of the South Sudan. “In

“

“

We want to be the preferred supplier in downstream oil marketing in the

region.Ato Tadesse Tilahun


The recently inaugurated Aviation Depot at the Addis Ababa Bole International Airport

fact at this very moment we are working with the WFP supporting the UN specialized agency in its effort to supply food items to the people of South Sudan. ” NOC Chief Executive Officer (CEO) Ato Tadesse Tilahun says.

The CEO went on to explain the ascending heights of the company : “In addition to its aviation fueling facilities, NOC has put up huge depot in Dukem town, 37 kilometers southeast of Addis Ababa storing all the main fuels (Gasoline, gasoil) as well as ethanol blending plant, Liquefied Petroleum Gas (LPG) storage and cylinder filling processing plant and Bitumen storage yard. NOC is the only local company toconstruct gasoline and Ethanol blending plant in Ethiopia to supply the fuel to the Addis Ababa area and its environs.”

According to Ato Tadesse Tilahun, the company has now become the market leader in the country. “Most of the power generation dam construction projects including the Grand Ethiopian Renaissance Dam, road construction and other infrastructural development projects in the country are supplied by NOC.” This has been achieved due to the visionary leadership and hard work NOC has maintained, the CEO underlined.

Ato Tadesse said that his company has envisioned to be a major player also in the entire eastern Africa region. “We want to be the preferred supplier in downstream oil marketing in the region. So, in materializing our vision, we are now covering all the regions in Ethiopia and the next step would be expanding to neighboring countries: Djibouti, Southern Sudan, Kenya and the Sudan.”

“We also want to further advance and expand our services in the supply of bitumen to road constructionprojects and coal as well as petroleum coke to cement industries replacing fuel oil.”

Ato Tadesse also disclosed that NOC is also aiming at building in land oil refinery in the southern part of the country to supply fuels not only to Ethiopia but also to the neighboring countries. “We have discussed this with our Chairman, Sheikh Mohammed H. Ali Al-Amoudi and agreed in principle.”

Indicating that NOC is the major oil products supplier to key economic sectors and infrastructural projects in thecountry, the CEO said the company is now playing a major role in contributing to the economic development of Ethiopia taking about 35% of the total industry market share.

For instance, as the sole supplier of fuel to the Ethiopian Grand Renaissance Dam Project, NOC provideseffective service supplying over 4 million liters a month by building a 2.5 million liters storage capacity at the projectsite and deploying dedicated special bulk fuel vehicles toensure continuous supply to the project.

About 10 years ago, Ethiopia’s total demand for oil was 1 million cubic meters per year and this year it has reached more than double (2.7 million cubic meters). This figure is expected to triple after ten years. Because of Ethiopia’s high economic growth, NOC is engaged in the expansion and construction activities of depots and retail outlets (fuel stations) across the country, Tadesse pointed out.


NOC aviation fueling staff on duty

“Therefore, we have submitted our request to the Addis Ababa Administration to get plots to construct 10 additional fuel stations in the metropolis; and hopefully we will finalize the construction of 10-15 stations in Addis in the next two years,” the CEO said.

With regard to Aviation fueling service, NOC has now 27% of the domestic market. Just within 4 years of joining the aviation fueling business, meeting all theinternational standards including the International Air Transport Association (IATA).

At the Addis Ababa Bole International Airport, NOC has built aircraft fuel depots with the capacity of 3 million liters. It has also imported and deployed six state-of-the-art refueling vehicles with a total capacity of 332,000liters at a time.

The company in all its operations maintains high safety standards and this is demonstrated by the facilities like water tanker to be used for firefighting and emergency as well as other sophisticated safety gadgets at the BoleInternational airport. It has also boosted its capacity to transport aircraft fuel from the Port of Djibouti. Its total aviation fueling investment has reached over Birr 117 million and is planning to put up additional aviation fuel depots at Kombolcha and Semera airports.

Speaking of its investment and progress in the aviationindustry, the CEO says “So, I wouldn’t be surprised if, by next year or so, we could be market share leader inaviation fueling services in Ethiopia as well.”

Concerning expansion to neighboring countries, the CEO indicated that NOC has secured permits from the government of Djibouti to join the country’s oil market and expecting to receive plots of land to construct service stations and certainly the company would go operational in that country by the end of this year.

“We have also applied for permit to launch operation in South Sudan. NOC will be able to start its activities of supplying fuel to the country directly from Djibouti especially after the completion of the road connecting Ethiopia to South Sudan and thereafter to move to other countries in the region step by step,” Tadesse said.

As to Tadesse, NOC is aiming at be the Customers’ First Choice company by making a concerted effort to have highly trained manpower and equipping itself withmodern facilities. For example, he said, some of NOC’s fuel stations in Addis Ababa have the capacity to serve 12 vehicles and containing 200,000 liters of fuel at a time which one cannot see elsewhere in the metropolis.


In general, NOC has set four priorities as part of its five year strategic plan: ensure continuous expansion of fuel stations across the country, as the demand for aviation fueling is expected to grow fast the company is targeting to invest more in this area, enhance its supply of bitumen asphalt to contractors engaged in road construction in the country and develop the necessary manpower for the company to cope with the dynamics that are observed in the global oil sector.

NOC is also among companies focused to meaningfully discharge its social responsibilities in terms of raising government tax revenue, providing financial supports to national social development projects in the countryincluding the Grand Ethiopian Renaissance Dam andspecial segments of the society needing support such as people with disabilities and the like, the CEO said.


Tel: 011-442 35 56-59 Fax: 011-442 35 50 P.O. Box: 19156 E-mail: [email protected] Addis Ababa, Ethiopia

Big-M Apparel Garment Plc

Quality Guaranteed


Cholesterol is a waxy, fat-like substance found in the walls of cells in all parts of the body, from the nervous system to the liver and the heart. The body uses cholesterol to make hormones, bile acids, vitamin D, and other substances.

The body makes all the cholesterol it needs. Cholesterol circulates in the bloodstream but cannot travel by itself. As with oil and water, cholesterol (which is fatty) and blood (which is watery) do not mix. So cholesterol travels in packages called lipoproteins, which have fat (lipid) inside and protein outside.

Two main kinds of lipoproteins carry cholesterol in the blood:

- Low density lipoprotein, or LDL, which also is called the “bad” cholesterol because it carries cholesterol to tissues, including the arteries. Most of the cholesterol in the blood is the LDL form.

- The higher the level of LDL cholesterol in the blood, the greater your risk for heart disease. High density lipoprotein or HDL, which also is called the “good” cholesterol, takes cholesterol from tissues to the liver removing it from the body. A low level of HDL cholesterol increases your risk for heart disease.

If there is too much cholesterol in the blood, some of the surplus can be trapped in the artery walls. Over time, this builds up and is called plaque. The plaque can narrowvessels and make them less flexible, a condition known as atherosclerosis or “hardening of the arteries.”

This process can happen to blood vessels anywhere in the body, including those of the heart, which are called the coronary arteries. If the coronary arteries becomepartly blocked by plaque, then the blood may not be able to bring enough oxygen and nutrients to the heart muscle. This can cause chest pain, or angina. Some cholesterol-rich plaques are unstable-they have a thin covering and can burst, releasing cholesterol and fat into the bloodstream. The release can cause a blood clot to form over the plaque, blocking blood flow through the artery—and causing a heart attack.

Why cholesterol matters?

When atherosclerosis affects the coronary arteries, the condition is called coronary heart disease or coronary artery disease. It is the main type of heart disease and this can be referred to simply as heart disease. Because high blood cholesterol affects the coronary arteries, it is a major risk factor for heart disease. Risk factors are causes and conditions that increase your chance of developing a disease.

Heart Disease Risk Factors

Risk factors are conditions or behaviors that increase your chance of developing a disease. For heart disease, there are two types of risk factors - those you can’t change and those you can. Fortunately, most of the heart disease risk factors can be changed.

Risk factors you can’t change

* Age - 45 or older for men; 55 or older for women * Family history of early heart disease - father or brother diagnosed before age 55, or mother or sister diagnosed before age 65

Risk factors you can change

* Smoking * High blood pressure * High blood cholesterol * Overweight/obesity * Physical inactivity * Diabetes

Pic:

ww

w.h

owto

low

erch

oles

trol

2.co

m

Health


What affects cholesterol levels?

Various factors can cause unhealthy cholesterol levels. Some of the factors cannot be changed but most can be modified. The factors are:

Those you cannot change

Heredity: The amount of LDL cholesterol your body makes and how fast it is removed from your body is determined partly by genes. High blood cholesterol can run in families. However, very few people are stuck with high cholesterol just by heredity - and everyone can take action to lower their cholesterol.

Furthermore, even if high cholesterol does not run in your family, you can still develop it. High cholesterol is a common condition among Americans, even young persons, and even those with no family history of it.

Age and sex: Blood cholesterol begins to rise around age 20 and continues to go up until about age 60 or 65. Be-fore age 50, men’s total cholesterol levels tend to be higher than those of women of the same age after age 50, the op-posite happens. That’s because with menopause, women’s LDL levels often rise.

Those under your control

Diet: Three nutrients in your diet make LDL levels rise:

- Saturated fat, a type of fat found mostly in foods that come from animals; - Trans fat, found mostly in foods made with hydrogenated oils and fats such as stick margarine, crackers, and French fries; and - Cholesterol, which comes only from animal products.

It’s important to know that saturated fat raises your LDL cholesterol level more than anything else in your diet. Diets with too much saturated fat, trans fat, and cholesterol are the main cause for high levels of blood cholesterol.

Overweight: Excess weight tends to increase your LDL level. Also, it typically raises triglycerides, a fatty substance in the blood and in food and lowers HDL. Losing the extra pounds may help lower your LDL and triglycerides, while raising your HDL.

All adults at the age of 20 and older should have their cholesterol levels checked at least once every 5 years. If you have elevated cholesterol, you’ll need to have it tested more often. Talk with your doctor to find out how often is best for you.

Source: Lowering Your Cholesterol

(Mayoclinic.com)

MAMCO Paper Products

Member of the MIDROC Ethiopia Group

Your Choice

Tel: +251 114 391 009 / 439 14 13 Fax: +251114 391 424 Sales Office 1 Tel: +251 114 654 707Fax: +251 114 655 425 Sales Office 2 Tel: +251 112 132 153 / 654 52 58

E-mail: [email protected] P.O.Box: 5710Addis Ababa Ethiopia



Your Choice





Your Choice





Your Choice





Your Choice





Your Choice





Your Choice




Health

Sub-Saharan Africa in the fight against HIV/AIDS

HIV burden

There are an estimated 24.7 million [23.5-26.1 million] people living with HIV in sub Saharan Africa, nearly 71% of the global total. Ten countries Ethiopia, Kenya, Malawi, Mozambique, Nigeria, South Africa, Uganda, United Republic of Tanzania, Zambia and Zimbabweaccount for 81% of all people living with HIV in the region and half of those are in only two countriesNigeria and South Africa.

There are also more women living with HIV in sub-Saharan Africa than HIV-positive men: women account for 58% of the total number of people living with HIV. There are 2.9 million [2.6 million-3.2 million] children (aged 0–14), 2.9 million [2.6 million-3.4 million] young people (aged 15–24) and more than 2.5 million [2.4 million-2.7 million] people aged 50 years and older living with HIV in sub-Saharan Africa. Of the estimated 1.8 million people living with HIV who were affected by conflict, displacement or disaster in 2006, 1.5 million were living in sub-Saharan Africa. This number has since increased as the total number of people displaced has increased globally.

AIDS-related deaths

The number of AIDS-related deaths in sub-Saharan Africa fell by 39% between 2005 and 2013. A significant decline (48%) was seen in South Africa.

Other countries that recorded major declines in AIDS-related deaths include Rwanda (76%), Eritrea (67%), Botswana (58%), Burkina Faso (58%), Ethiopia (63%), Kenya (60%), Zimbabwe (57%), Malawi (51%) and the United Republic of Tanzania (44%).

This success is directly due to the rapid increase in the number of people on antiretroviral therapy. The region has witnessed an expansion in the coverage of HIV treatment to record numbers of people for the past three years. Last year alone, 1.5 million additional people living with HIV received antiretroviral therapy. South Africa hasthe highest number of people on HIV treatment nearly 2.6 million and has committed to nearly doubling that number in the next few years.

HIV treatment is now available to almost four in tenpeople 37% [35-39%] living with HIV in the region.However, this masks significant differences between countries. For example, 19% of AIDS-related deathsoccurred in Nigeria where only two in every ten people living with HIV have access to treatment. It is no coincidence that between 2005 and 2013 there was no decline in the number of AIDS-related deaths in Nigeria, although there has been a slight decline since the peak in 2008. On the other hand, South Africa with double the number of people living with HIV increased treatment coverage from one person in ten in 2010, to four people in ten by 2013, while also is reducing AIDS-related deaths by 48%.

Within sub-Saharan Africa, 67% [65–68%] of men and 57% [55–60%] of women living with HIV are not receiving antiretroviral therapy.

Even as access to antiretroviral therapy expands in sub-Saharan Africa, significant gaps remain. Chief among these is that only 45% [39-62%] of people living with HIV know their HIV status, underscoring the need to increase HIV knowledge and expand testing. The good news is that an estimated 86% of people who know their HIV status are on antiretroviral therapy and studies suggest that, among those who stay on treatment, an estimated 76% [53-89%] have achieved viral suppression.

TB - HIV - continued need for the integration of services

More than 75% of all estimated HIV incident tuberculosis cases live in just 10 countries, nine of them in sub-Saharan Africa. These include Ethiopia, Kenya, Mozambique,Nigeria, South Africa, United Republic of Tanzania, Uganda, Zambia and Zimbabwe. Significant progress has been reported in the region, where 74% of all notifiedtuberculosis cases were tested for HIV in 2012 (2).

Antiretroviral therapy reduces the risk that a person living with HIV will develop tuberculosis by 66% and HIV treatment lowers the risk of death among peopleliving with HIV who have tuberculosis by 50%.


Antiretroviral therapy coverage among people co-infected with tuberculosis and HIV increased in several countries.

New HIV infections

There were 1.5 million [1.3 million 1.6 million] new HIV infections in sub-Saharan Africa in 2013. However, new infections are on the decline. There was a 33% drop in new HIV infections among all ages in the region between 2005 and 2013 and a 19% reduction since 2010. The number of new HIV infection is falling in every country in the region except Angola and Uganda where increases were recorded. South Africa, the country with the largest number of people living with HIV, recorded the largest decline in new infections in absolute numbers, with 98 000 fewer new HIV infections than in 2010. Since 2010, the number of new HIV infections in Ghana decreased by 43% and by 41% in Malawi.

Among young people aged 15–24 years, the number of new infections has declined by 42% since 2001 in sub-Saharan Africa and by 17% since 2010. Despite gains in preventing new HIV infections, sub-Saharan Africaremains the region most severely affected, with nearly 1 in every 25 adults (4.4%) living with HIV. Three countries Nigeria, South Africa and Uganda represented almost 48% of the new HIV infections in the region.

Mother-to-child HIV transmission rates

The rate of HIV transmission from an HIV-positive mother to her child if she is not receiving any antiretroviral medicines ranges from between 30% and 45% depending on the duration of breastfeeding. By 2009, the overall transmission rate was 25.8% in the 21 Global

Plan countries. Since the rollout of the Global Plan, the rate has further declined to 15.7%. The individual nationaltransmission rates reflect the situation for all pregnant women living with HIV in a country and are not limited to those who receive services. That is, they also include transmission that occurs during the breastfeeding period.

The number of women requiring services to prevent mother-to-child transmission remains high at 1.3 million among the 21 priority countries. Given the slow decline in new HIV infections among women of reproductive age, this number is likely to remain high for the foreseeable future.

Ending AIDS in sub-Saharan Africa: Increasingand Sustaining Investments

As the region with the highest burden of the AIDS epidemic, the majority of the investments for the AIDS response are required here. Preliminary estimates for 2012 indicate that around $6.6 billion was invested in the AIDS response in sub-Saharan Africa, 47% of which came from domestic sources with the remainder coming from international sources. An analysis of countries’ AIDSinvestments, excluding South Africa, clearly indicates that many remain dependent on external resources. At the same time, as African economies grow, domesticinvestments are increasing, demonstrating a widespread commitment to the shared responsibility agenda. However, the significant need for AIDS investments requires that, in the coming years, both domestic and international funding must be not only sustained, but also steadily increased to meet the 2030 targets.

Source: UNAIDS July 2014

Country scorecard: Adult access to antiretroviral therapy, 2013


Buy your Coffee from Cabey plc

Green Coffee Type for Export Washed Sidama

Washed YirgacheffeWashed Limmu

Unwashed JimmaUnwashed NekemteUnwashed Sidamo

Sino Truck

Appointed Agent forSaudi Arabian Airlines

Agent fot Bridgestone Tyre

Coffee ExportTel: +251 114 67 16 96 +251 114 67 20 22

Mob. +251 911 46 18 70Fax: +251 114 67 16 99

P.O.Box: 18192E-mail: [email protected]

Addis Ababa Ethiopia

BridgestoneTel: +251 115 51 11 38Mob. +251 911 20 60 44Fax: +251 114 67 16 99


Saudi Arabial AirlinesTel. +251 115 51 26 93

+251 115 51 26 37Fax: +251 114 67 16 99


Cabey Private Limited Company


Woldiya Stadium construction 60 % complete

Huda Real Estate, a member of the MIDROC EthiopiaTechnology Group, announced that the construction of the Woldiya Stadium is now 60 % complete.

The Stadium named after Sheikh Mohammed Hussein Ali Al-Amoudi is being constructed by Huda Real Estate in Woldiya town of the Northen Wolo Zone in the Amhara Regional State.

According to the Real Estate General Manager, Eng. Tewodros Shewarega, the construction of the stadium, with the capacity of 25, 000 spectators, has entered into the finishing stage.

The stadium has six blocks comprising of a reception area, lobby and shower rooms for referees, special guest areas, dining rooms and kitchen, briefing rooms, first aid facilities, library, a gymnasium, various offices and the like.

As shops are also being built around the stadium, it is also expected to create job opportunities for many people in the town when it is inaugurated after a year.

Equatorial Business Group (EBG) handed over 33 VOLVO Graders to one of its clients.

The handover of the VOLVO graders purchased by the Transport Bureau of SNNPRS took place on Thursday, April 3, 2014 at a ceremony held at the Meskal Square in Hawassa. Speaking at the handing over event, EBGGeneral Manager Ato Tadelle Teferra highlighted EBG’s business by volume and diversity ensuring the receiving officials all the care and support that may be required to make sure the graders are sustainably in use. Ato Lacha Garuma Head of the Transport Bureau of the regional state expressed gratitude to the pledge of support offered by the GM and urged EBG to continue to stand by their side on matters of regular aftersales support.

Also speaking on the occasion was Senior Director for VOLVO Business Ato Daniel Seyoum, to reassure the authorities in the dependability of the business to attend to the call for support as much as possible. The event was attended by officials of the region to whose interest an operator from EBG demonstrated the operational maneuverability and safety of the machines.

EBG hands over 33 VOLVO Gradersto SNNPRS

NOC supports dam construction again National Oil Ethiopia (NOC) said that it bought an 18 million birr bond for the construction of the Renaissance Dam last April, according to Ethiopian Opinion.

From the total amount the 15 million birr bond is bought by the company itself and the company’s employees have bought an 829 000 Br worth of bond.

The remaining 2.3 million birr bond is bought by the NOC gas stations owners and operators. It is indicated that the bond purchase is for the second time. At the start of the dam’s construction NOC had bought an 18.8 million birr worth of bond.

NOC is said to be covering around 35% of the country’s gas distribution network.

NEWS BRIEF

The Abijata – Shalla Soda Ash S.C and the Chinese Company ‘COMPLANT’ on May 28, 2014 signed an agreement granting the latter the task of undertaking Soda Ash Techno-Economic Feasibility Study on Lake Abijata-Shalla.

Soda Ash, known by its chemical name as sodium carbonate, is a versatile product used for different applications. It is used in the manufacture of sheet glass, glass and bottles, soap and detergents, sodium silicate, caustic soda, textile and in the treatment of water.

The share company also has selected an internationallyrenowned firm to undertake a comprehensive Environmental and Social Impact Assessment Study.

The Abijata-Shalla Soda Ash S.C. is a joint investment share company formed by the National Mining Corporation PLC with its partners and the Privatization and Public EnterprisesSupervising Agency.

Abijata – Shalla Soda Ash S.C, Chinese Company enter into agreement

Affiliate Companies Make Donations

Nyala Motors S.C, Ries Engineering S.C. and Equatorial Business Group, affiliate companies of MIDROC Ethiopia, donated automobiles to the Grand Ethiopian renaissance Dam (GERD) project office, also covering all government duties and taxes. The companies donated Nissan Almera Sedan, Ford ECOSPOT Urban SUV and Chery Tiggo brand automobiles on August 7&12, 2014 and last June 2014 respectively. The cars are to be used as reward for the SMS income generation program as part of the endeavor to solicit money for the construction of the GERD. Nyala Motors S.C CEO Ato Abrham Abegaz, Ries Engineering S.C Managing Director Eng. Alemayehu Mengesha and Equatorial Business Group General Manager Ato Tadelle Teferra handed over the automobiles to Ato Zadig Wolde-Gebriel ( Deputy Head of the dam construction pro-ject office), Health Minister Dr. Kesetebirhan Admasu and Water,Irrigation and Energy Minister Ato Alemayehu Tegenu respectively. During the handing over ceremonies the government officials commended the donations made by the companies and urged other companies and the general public to follow suit. The companies also expressed the readiness of theirmanagement and employees to do whatever they can also in the future to support the dam construction effort.


MIDROC ETHIOPIA Committed to Development

Printed by Central Printing Press

tiret september 2014 issue

Documents