State enterprises to import goods through Berbera port

[Fyr]

By Kaleyesus Bekele

 

All the state enterprises in Ethiopia are to start importing goods through the Somaliland port of Berbra as of November 2005. The head of the Ethiopia Customs Authority, Damtew Demis, told The Reporter that the authority was preparing itself to render service of the state enterprises, which he said, will start using the Berbera port early in November. Damtew said the authority will soon build a branch office, warehouse and residential houses for its employees in the border town of Togochale, about 770 km east of Addis Ababa. The Ethiopian Roads Authority is finalizing the construction of the Jijiga Togochale Road, which is about 68 km. The Ethiopian Telecommunications Corporation and the Ethiopian Electric Power Corporation are installing telephone and electric powerlines all the way to Togochale. The Ministry of Infrastructure last February ordered the state enterprises to use the Berbera Port. Recently, officials of the Ministry of Revenue, Customs Authority, the Ethiopian Shipping Lines the Maritime and Transit service enterprise and the national Bank of Ethiopia vistid Somaliland at different times. Damtew said the Somaliland authorities were trying their best to improve the port facilities. Ethiopian banks are also interested in doing business in Somaliland. One of the private banks, Wegagen, has already undertaken a feasibility study in Togochale and Hargessa, the capital of Somaliland, that would enable it to open a branch office. Other banks are also anticipating to open branch offices in Somaliland. Officials of NBE confered with executives of the Bank of Somaliland on the possibilities that the Ethiopian banks could operate in that country.

 

EthiopianReporter

[Fyr]

Ethiopia to build dry port in Togochale

 

* Ethiopian banks eye Hargeissa

 

By Kaleyesus Bekele

 

With a view to use Berbera Port in Somaliland, the Ethiopian government is planning to build a dry port in the small border town of Togochale, located 768 kms east of Addis Ababa. The government of Ethiopia some months ago ordered state-owned enterprises to start using Berbera Port. The letter dispatched by the state minister of Infrastructure, Haile Assegide, last February, instructed state-owned enterprises, particularly those with marine business, to study how they can facilitate imports through the Berbera Port. The Ministry of Infrastructure also ordered the Ethiopian Telecommunications Corporation (ETC), the Ethiopian Electric Power Corporation (EEPCo) and the Ethiopian Roads Authority (ERA) to speed up the infrastructure development on the route to Togochale. Accordingly, ETC is installing telephone lines all the way to the border town. EPPCo is also erecting electric poles in the area and ERA is upgrading the gravel road from Jijiga town to Togochale. A senior government official told The Reporter recently that the ongoing infrastructure development project would be completed within sixty days. The officials said the state enterprises would soon start using Berbera Port. Following Ethiopia's interest over the past few years, the Port of Berbera developed significantly from the decrepit and abandoned place it was in the early 1990s. After the peaking of Ethiopian interest in Berbera, a group of experts from the Ethiopian Shipping Lines travelled to Hargeissa last February to examine the situation. The Ethiopian Customs Authority is contemplating to build warehouses and offices in Jigiga and Togochale. Abayneh Telela, Jigiga's customs office operation head, told The Reporter that exports to Somaliland were growing. Abayneh said businesspeople in Jigiga were exporting milk, cattle and "khat" to Hargessa. In the past two months the businesspeople exported 84,960 liters of milk worth 8455 USD, 3,294,285kg of khat worth 8,593,773 USD and 4,764 oxen worth 571,680 USD. Ethiopian Banks, which noted the increasing business transactions between the Ethiopia and Somaliland, are contemplating to open branch offices in Hargeissa. One private bank, Wegagen, recently undertook a feasibility study in Hargeissa. Experts of the banks, who described the market as being viable, are preparing themselves to open a branch office in that town. Recently a team experts of the National Bank of Ethiopia visited Hargeissa. The team conferred with officials of Somaliland on the possibilities of Ethiopian banks could open branches in Hargeissa.

 

EthiopianReporter

[Suldaanka]

In the past two months

the businesspeople exported 84,960 liters of milk worth 8455 USD,

3,294,285kg of khat worth 8,593,773 USD

and 4,764 oxen worth 571,680 USD

Just two months and 8.5 million dollars worth of Qaad were imported into Somaliland? That means 50 million dollars down the drain every year.

 

What did Somaliland export to Ethiopia to recoup this huge lost of hard currency?

 

Somaliland's ministry of commerce needs to do something about this. Because you can not call this trade, this is one way traffic.

 

Hopefully their use of Berbera port will tilt this huge trade deficit.

[Fyr]

The fact that trade through Berbera hasn’t really commence as of yet is the main reason for this huge trade gap. It’s going to take some time before we even see a slice of trade surplus coming out of this trade deal with Ethiopia, so let us give this deal some time before we start to question the fairness of the deal.

[Suldaanka]

Before the Ethiopians introduced their tough anti contraband regime, the small town of HertaSheekha was a bustling center of trade. Somaliland small business owners benefited a lot from this.

 

Now that Ethiopia wants to formalise trade with Somaliland by opening trade offices in Hargeisa and establishing customs on the main trade route border town of Togwajaale. What can Somaliland export into Ethiopia? We know that all the previously contraband goods are now being formally taxed by Ethiopia which makes them not as cheap as they were before when they reach Ethiopian markets. Which in turn reduces the profit margin of Somaliland traders.

 

Ethiopia maxaynu u diri karna oo dhulkeena laga helaa?

[N.O.R.F]

The road between Barbera and ethiopia is bearly complete, this vital link will bring need trade bothways. It is very important for the Somaliland officials to control what passing through its borders and out of the country. I just hope we are not undercharging them for the use of the port.

 

Ethopia is developing with the help of countries such as Isreal. Many members of their govnt are British Educated. I just hope S/land gets its act together before long and implement a recognised structure with respect to Economy/Development.

[kidd]

I believe this administration should inform its citizens about these trade agreements. It should be discussed in an open and public manner instead of behind closed doors. How come the citizens of the country have no voice on these agreements? Why the administration is not making these agreements civic? The people of Somaliland support fair trade agreement; yet Khat/port trading seems to everyone one sided deal. It is obvious that it will only weaken our economy and have major effects of our health and environment. Strong national economies are necessary to our development and should be thought about it nattily.

[Rahima]

What did Somaliland export to Ethiopia to recoup this huge lost of hard currency?

Don’t you think Suldaanka that that is the least of the problems?

 

The qaad crisis is the main problem here. How much qaad is that?

 

Somalia in general needs to tackle this problem, but especially SL. You and I both know that the culture needs to be changed. The damage of qaad chewing sessions every casr is serious and ultimately is probably one of the main impediments for SL. A great number of the men are hooked and many women sell it to survive.

 

This SLs should be your main concern not dollars. Find ways to eradicate its usage and develop other forms of survival for the average family.

 

Lives are more important.

[Suldaanka]

Yes indeed.

 

But..

 

If you look back in the recent history of the use of Qaad in Somaliland for example. There has been a significant change in the scale and nature of its use over the past thirty years. This is due to a number of accumulated social factors whether economical, political or environmental deterioratation . I am not here to venture into any of that because they are well known.

 

But what I am trying to say here is that, most people that chew are driven to the edge for them to use Qaad. Therefore, as long as the prevailing underlying causes exist, I don't think the problem of Qaad can be solved. It is a social problem, and thus it is linked to other social problems.

 

An old adage goes: Idle hands are devils's Tools. Qaad currently serves as a solution to the high unemployment rate. But definately its other costs are horrendous.

 

In coming back to your question, the Qaad problem is a multifaceted one. It has many different ways of looking at it. My comment above that you quoted, I was addressing the "double lost" of the Qaad problem as far as Somaliland is concerned. You see, Ethiopia has similar problems, but Qaad grows in its territory, so whatever money is spent of Qaad goes back to its citizens. But for Somaliland, the money that is used for importing Qaad is a dead money *To borrow that Ad on TV about rent*. In that view, I was merely trying to find ways of minimising the effects Qaad has on Somaliland by at least getting back the hard currency from Ethiopia. At least by that, the country will not get poorer *50 Million* is a lot of money. hope you are not lost in that maize.