Page 1 - Print Version of Volume 17 - Number 838
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Volume 17 No. 838, SUNDAY, May 22, 2016 Content Matters

Leather Export                                     SUNDAY240 Mon Tue Wed Thu Fri Sat
Revenue Down                                                                                250 240 230 240 230 230
to Record Low                                                                               150 140 150 150 130 130

 Hope for the future lies                        The BattleEight of the(8) birr only Tobacco Titans
in finished leather products
                                                   Japanese listed half a billion dollar for acquisition of 40pc share, the largest ever made for
  and improved quality of                                                                     transfer of public enterprises
          raw leather
                                                                                                                                                                                                                                                         Photo by: Geremew Tigabu
       By Tesfa Mogessie
                                                         By DAWIT ENDESHAW                   dollars.                                 previous Imperial Hotel, described        showing the second highest offer
    FORTUNE STAFF WRITER                                                                                                              the scene as "extraordinary." Indeed,     made by British American Tobacco
                                                       FORTUNE STAFF WRITER                  Japan International Tobacco (JIT), a     no other state owned enterprise has       at 230 million dollars. The American
Ethiopian export revenue from leather                                                        publicly listed company, has made an     attracted such high prize; the closest    Philip Morris International, which
and leather products saw a record low              The offer made by a Japanese              offer of 510 million dollars to acquire  was earned from the total sale of         has recently donated half a million
decline during the last nine months                tobacco company to acquire a slice        40pc of shares of the Ethiopian          Meta Abo Brewery to Diageo, for 225       dollar to the Ethiopian Red Cross
of the fiscal year. Declining by 20pc              of Ethiopia's tobacco monopoly is         National Tobacco Enterprise (NTE). A     million dollars.                          Society, gave the lowest offer of 120
compared to last year, revenue from                not only the highest ever made to a       bidder's representative who was at the
the sector considered a priority by                state enterprise, but it has also soared  headquarters of the Ministry of Public   On Thursday, May 19, 2016, offers                                     (Continued on PAGE 6)
the government stood at 86.3 million               the company's worth to 1.1 billion        Enterprises, located opposite the        from five bidders were opened,
dollars, according to the Leather
Industry Development Institute’s
(LIDI) nine-month report launched
last week.

Officials overseeing the sector
gathered last week at Nexus Hotel
located around Gergi, find the decline

"The decline in revenue is huge," said
Wondu Legesse, general manager of

Tadesse Haile, state minister for
Industry, conceded that the revenue
is considerably lower than the
government's expectation.

The government's plan was to obtain
revenue of 129 million dollars. But
only 66.8pc of the plan was achieved.
Of the total revenue obtained,

                            (Continued on PAGE 5)

Private Sector Recognition Dominates Regional Forwarders Agenda

A businessman prominent in the industry decried state's hold in shipping logistics industry

       By NARDOS YOSEPH                            In what was the first regional summit,    Logistics Services Enterprise (ESLSE)    than a shipping agent which is not        summit in Addis Abeba, the second to
                                                   to be held in the country by an offshoot  has held the private sector under        allowed to have either dry port           be held in Africa after Ghana.
    FORTUNE STAFF WRITER                           of the Fédération Internationale des      its inordinate shade for so long the     or container storage facilities of        "In the past, conflicts were all over
                                                   Associations de Transitaires et           industry is impaired by the monopoly.    its own, Salahadin Khalifa, one of        Africa, we were very reluctant to
Ethiopian freight forwarders have                  Assimilés (FIATA), a powerful global      The country’s 45 freight forwarding      the leaders of Ethiopia's Freight         come," said one of the founding
called for recognition of the role the             lobby for forwarding companies,           companies have urged that it is time     Forwarders Association complained.        members of RAME, who now lectures
private sector in the industry plays               Ethiopia's rather inefficient and costly  to let them have a piece of the pie.     The Association is a local lobby group    in Logistics Leadership at Harvard
in stimulating the economy, while a                logistics industry came under scrutiny                                             established 20 years ago. It has put all
leading figure among them decried                  evoking heated debate.                    The freight forwarding business          its weight in persuading the regional                                 (Continued on PAGE 6)
the near monopoly a state enterprise               State-owned Ethiopian Shipping &          in Ethiopia is treated no better         group, RAME, to convene its annual
holds on the logistics corridor.

Ermias: A Free Man, For Now

Ermias T. Amelga is finally free, after a series of appeals against his release had been rejected and a third new case opened up. He joined his family and
friends on, May 16, 2016 - eleven days after the Second Criminal Bench of the High Court closed the third case. Police were denied any further extension of
the investigation period. A total of 1.1 million Br in bail had already been granted by both the Arada First Instance Court and the High Court, as the prosecutor
failed to charge him. But, following both of these, the police still refused to release him. In the midst of this, a new allegation was brought against him, linked
to a crime committed using a vehicle registered in his name. The allegation came to the High Court's attention on April 29, 2016. Though the court granted
the police eight days to substantiate the allegation, they failed to do so and instead requested more days. PLEASE SEE THE FULL Story ON PAGE 7.

Fixed Time Deposits (2014/15) 	 Dashen (1.46B Br)	  BoA (893.9m Br)                          Nib (1.3B Br)                            United (1.3B Br)  AIB (1.9B Br)           LIB (466.7m Br)  BIB (542.5m Br)

Fortune is a weekly business newspaper published and distributed by Independent News & Media Plc. Tel: 251-011 416 30 20. Fax: 251-11-416 30 39. P. O. Box: 259, Code 1110. Price: 8.00 Br, Djibouti 400 FD, Somaliland 3,000 SL.
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