Page 1 - Print Version Volume 22 Number 1113
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Volume 22 No. 1113, SUNDAY, August 29, 2021 Content Matters

                                                                              T e n ( 1 0 ) b i r r o n ly

    Global                                                     Ethiopia Secures $408m from IMF, Officials Chuffed
   Shipping
Crisis Pushes                                                                 Neighbouring Kenya received over $750m, Sudan $860m
  Container
Procurement                                                    By SAMUEL BOGALE 2021, three weeks after since the inception of SDRs foreign exchange reserve
                                                                                             the IMF Board of Directors                                       assets defined and maintained
     Cost                                                      FORTUNE STAFF WRITER          approved a record-high           in 1969, bringing the total to  by the IMF, representing
                                                                                             456 billion in SDR units         660 billion.                    a claim to currency held
  A Chinese firm                                             Ethiopia has secured a sum    (around 650 billion dollars                                      by member countries.
                                                               of 408 million dollars under  based on current market          “Countries can use the          They are allocated based
 has been chosen to                                            the Special Drawing Rights    prices) to 190 member            space provided by the           on the shareholder quota
                                                               (SDR) programme of the        countries. While the figure      SDR allocation to support       countries hold at the IMF,
 supply 19 million                                             International Monetary Fund                                    their economies,” reads

  dollars worth of                                             (IMF).                        is significantly higher than a communique issued by determined using a set of

shipping containers                                            On the table since March the previous allocation of Kristalina Georgieva, IMF's criteria such as the GDP,
                                                               this year, the allocation 182 billion in 2009, it is one managing director.
     By BERSABEH GEBRE                                         took effect on August 23, of four major allocations Special drawing rights are                 (Continued on PAGE 6)

   FORTUNE STAFF WRITER                                        MINING FOR SUCCESS

The state-owned Ethiopian Shipping                             Fist bumps were in order late last week between Eyob                                                                           Photo by: Sawrawork Tafari
& Logistics Services Enterprise                                       Takalign (PhD) (left), state minister for Finance, and
(ESLSE) is to spend 19 million                                        Takele Uma, minister of Mines & Petroleum and head      While mining remains heavily traditional and inefficient, with
dollars to procure 2,958 containers,                                  of the institution that oversees the mining sector,     artisanal workers accounting for nearly all mined gold, the
up by two million dollars from a                               which has been a boom for federal treasuries over the past     government has succeeded in formalising part of it. Within
similar acquisition it undertook                               year. The occasion was the renovation of the Ministry’s        two years, exports from mining grew by around 2,000pc
earlier this year.                                             headquarters in the neighbourhood commonly known as            to account for a sixth of the 3.6 billion dollars in export
                                                               Wessen, as part of a revamping of federal agencies.            revenues. In the first month of this fiscal year, the sector
A global shipping disruption led                               Takele gave a tour of the headquarters to members of the       secured 38.5 million dollars, a third higher than the 29
to a drastic surge in the cost of                              media and federal officials, including Motuma Mekassa          million dollars from mining for the entirety of 2019.
containers and rising prices of                                (centre), former minister of Mines & Petroleum. The occasion   The Ministry would like to see this success replicated and
commodities across the world.                                  was rounded off with recognition for the federal agency        more. The strategies it has identified are facilitating a
The cost of transporting a 40ft                                employees and blood donation by Takele for the National        market for mining products on the Ethiopian Commodities
container from China to the United                             Defense Forces, a familiar sight these days, mainly by         Exchange (ECX) and developing industrial mining. The major
States has escalated from less than                            government officials.                                          roadblocks are the civil war in the north, particularly in
5,000 dollars in August 2020 to                                The Ministry also released a sector report, showing a          Tigray Regional State, one of three top gold producers, and
over 17,000 dollars a year later                               surprisingly impressive performance over the past two years.   alarming levels of political instability across the country.
this month.                                                                                                                   Poor infrastructure and stubborn levels of informality are
                                                                                                                              not helping either.
The global shortage of containers
began at the end of last year,
caused by a slump in production
by manufacturers in China, which
account for over 90pc of the
market share. The companies cut
production after experiencing a
surplus earlier in March 2020,
when an equivalent of more
than three million empty 20-foot
containers was awaiting buyers
at Chinese ports, and another 1.2
million sat in storage.

Despite the shortfall, the
Enterprises's call for the supply

                      (Continued on PAGE 7)

Expenses (2019/20)	                          Dashen (5.4b Br)  BoA (4.6b Br)  NIB (3.2b Br)  Hibret (3.8b Br)                 Awash (6.6b Br)  LIB (3.2b Br)  BIB (1.6b Br)
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