Ethiopia’s Finance Ministry has announced that the proposed partial privatization of Africa’s biggest and leading aviation company, Ethiopian Airlines, has been put on hold.
The move comes just after the same measures were recently taken to also hold the planned privatization of Ethiopian Shipping and Logistics Service Enterprise.
While presenting Ethiopia’s Finance Ministry’s three-month performance report in a press conference yesterday, the country’s Finance Minister Ahmed Shide said the plan is put suspend the privatization move as the company continues to be profitable and competitive in the global aviation industry.
“We do not believe that this is the time to privatize the company while it appears robust,” he said.
He further added that even during the challenging time of the COVID-19 pandemic, the Airline has remained vibrant and afloat. Ahmed said Ethiopian Airline is brand carrier and has made investments in hotels and other services.
Meanwhile, the Ministry forecast Ethiopian economy to register 8.5 percent growth in the 2013 budget year.
With the implementation of home grown economy alongside several measures that have been taken to reduce the impact of COVID-19 pandemic, the country’s economy has still shown a significant growth.
The Minister stressed that while the pressure of inflation and foreign currency still loomed, the government will continue to implement the combined fiscal and monetary policy.
The various measures that were taken on fiscal, monetary and other administrative actions to further reduce the negative impacts of the coronavirus pandemic, have a significant contribution to maintaining the economy.
More than 80 Billion Birr was collected from government revenue- tax and non-tax revenues- loan and grant. Close to 500 million USD was generated from export market in the first three months of the Ethiopian budget year. Improving the incentive packages, excise tax and custom related issues have taken the lion’s share for the better performance, as to him.
Tanzania Inaugurates $59m Leather Factory, To Produce 1.2 Million Shoes Annually
Tanzania’s President John Magufuli on Thursday inaugurated the $59m leather factory in Kilimanjaro region, saying the new facility will end importation of leather goods.
The Kilimanjaro International Leather Industries Company Limited is a joint venture between the Public Service Social Security Fund (PSSSF) and the Prisons Corporation.
Speaking shortly before he inaugurated the factory, Magufuli said construction of the facility would help to expand the market for hides and skins in the east African nation.
“Livestock keepers are throwing away hides and skins of their animals for lack of markets. With the construction of the new leather factory this will now be history,” he said.
In Africa, Tanzania has the second largest herd of livestock after Ethiopia, and produces 3.9 million bovine hides, 2.5 million goat skins and 2.3 million sheep skins annually.
Magufuli said Tanzania’s demand for shoes stood at 54 million pairs annually, while the country’s five leather industries were producing a total of 1.715 million pairs each year.
“In the next one to two years, I hope Tanzanians will stop wearing imported shoes. We should start cultivating the habit of buying locally made goods,” said the president.
Hosea Kashimba, PSSSF Director-General, said the initial production capacity for the new factory was 1.2 million pairs of shoes annually and 184,500 pieces of other leather products, including belts and wallets.
Kashimba said the factory had created 3,000 direct jobs and 7,000 indirect jobs.
Statistics from the Ministry of Livestock and Fisheries show that Tanzania had 25 million cattle and 16.7 million goats.
Kashimba said Karanga Prison provided land for the industry while PSSF which was managing the project provides the machinery and buildings under the consultancy of Tanzania Industrial Research and Development Organization (TIRDO) who were paid Sh2 billion.
He further noted that the machinery was imported from Italy to a cost of Sh60 billion (Euro23.6 million).
Uganda Establishes First Free Zone at Entebbe Airport
The government of Uganda through the Uganda Free Zone Authority (UFZA) has finalised plans to establish the first public free zone at Entebbe International Airport. The free zone is projected to boost export-oriented investment in the country.
The project will be implemented by the National Enterprise Corporation (NEC) on a five acre piece of land acquired from the Uganda Civil Aviation Authority (UCAA) at the Entebbe International Airport premises.
Under the arrangement, the project targets sectors which include food processing, mineral processing, warehousing, storage and simple assembly, where all operators in the public free zone will process their products for onward export through Entebbe International Airport.
The development of the Public Free Zone projected to cost UGX 48billion will, on completion house seven production units and trade houses such as offices of the Uganda Free Zones Authority, Uganda Revenue Authority, and other government offices to promote enterprise. The Government of Uganda (GoU) has already awarded UGX 12.5 Billion for the first phase of the project.
Speaking at the site handover event, Hez Kimoomi Alinda, the Uganda Free Zones Authority Executive Director, said the project is expected to contribute cargo volumes, create hundreds of direct jobs and significantly improve Uganda’s exports.
“On completion, the project will support increased production quality assurance and value addition to commodities that are widely produced by the masses to improve household incomes, create employment and eliminate poverty as well as improve the value of Uganda’s exports,” he said.
Alinda was speaking while handing over the site for the construction of the Entebbe International Airport Free Zone at which he said they had acquired five acres from the Uganda Civil Aviation Authority for the development and contracted National Enterprise Corporation, the commercial arm of the UPDF for the construction.
Somali Petroleum Authority Appoints Independent Directors
The Somali Petroleum Authority (SPA) has announced the appointment of six Independent Directors to its Board, each representing a Member State and one Independent Director representing the Federal Government – following the approval of the Prime Minister and the Council of Ministers.
The announcement follows the appointment of Ibrahim Hussein as Chairman and Chief Executive of the SPA, representing the Federal Government, and is in line with the provisions of the Petroleum Law.
The Board will oversee all the SPA’s activities to ensure that it develops a sustainable and competitive industry in the interests of all Somali people, in keeping with its mandate.
The newly appointed Board Members to the SPA are Asha Osman Ahmed, Vice Chair and Board Member representing Banadir Regional Authority;
Ibrahim Ahmed Layte, Board Member representing Hirshabelle State;
Abdulkadir Aden Mohamud, Board Member representing Galmudug State;
Ibrahim Abdulkadir Mohamed, Board Member representing South West State; Ahmed Haji Abdi, Board Member representing Jubaland State;
Abdihafid Ali Dirir, Board Member representing Somaliland State; and
Mahad Mohamed Sh. Hassan, Board member representing the Federal Government.
There are nine positions on the Board of the SPA representing seven Members States and two representing the Federal Government. The Board focuses on the SPA’s long-term objectives and priorities to be one of the world’s leading petroleum authorities, promoting the development of a sustainable oil and gas industry. Specifically, the Board will ensure that the regulatory and fiscal regime being developed will apply the principles of equality, openness, accountability, transparency and non-discrimination in the interests of all the Somali people. The Board is committed to upholding the highest standards of health and safety for people in all activities relating to the exploration of petroleum in Somalia, as well as maintaining world-class environmental standards. Moreover, the Board will work to maintain sound risk management, internal control systems and reviews on the efficacy of these annually.
In June 2019, The Ministry of Petroleum and Mineral Resources announced details of the Petroleum Ownership Management and Revenue Sharing Agreement between the Federal Government and its Member States, which delivers by far the highest percentage of potential revenues from the industry to non-Federal institutions of any comparable agreement. The structure of the Board, with seven of its nine members representing the Member States, will underpin the SPA’s commitment to develop the petroleum industry in the interests of all the Somali people.
Commenting on the appointment Ibrahim Hussein, Chairman and Chief Executive, said: “We are very excited to welcome new colleagues onto the Board of the newly established SPA, as together we work to develop the country’s petroleum industry. The structure of our Board will ensure that all the Member States are able to help shape the development of the industry in the interests of the whole country. The SPA is committed to rigorous standards of corporate governance in order to achieve our goal of attracting international investment to maximize the economic recovery of the country’s oil and gas reserves. This will enable Member States to significantly increase investment in education, transport, agriculture and healthcare infrastructure.”
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