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  • Ethiopia saves 2.6 billion birr form fertilizer purchase

    • Moroccan company to supply 70 percent of the fertilizer demand

    The Ethiopian Agricultural Business Corporation on Thursday announced that it saved 2.6 billion birr from fertilizer purchase for the 2017 harvest year.

    Briefing local reporters in his office CEO of Ethiopian Agricultural Business Corporation, Kefyalew Berhnau, said that the corporation, which was established a year ago amalgamating five state enterprises, has purchased 936,430,000 tons of fertilizer at a cost of 290 million dollars (6.4 billion birr). Compared to last year’s purchase the corporation saved 119 million dollars (2.6 billion birr). Kefyalew said the cost reduction was achieved by making amendments on the procurement procedure, increasing efficiency in procurement, bank procedures (letter of credit process) and bidding process.

    Kefyalew said previously the government used to buy different fertilizers through agents. However, the Ethiopian Agricultural Business Corporation amended the bid document and allowed fertilizer manufacturers to directly participate in the bid. “This has enabled us to get better or lower prices. We also floated the tender early. We hired transporters through open bid that haul the fertilizer from ports to different parts of the country. So, by allowing producers to participate in the bid and increasing our efficiency we managed to save 119 million dollars. The fuel price decline has also contributed to the cost reduction,” Kefyalew said.

    According to Kefylaew farmers would get the fertilizer with lower prices this year. “Farmers would have 250-300 birr discount per quintal of fertilizer. This is a big amount,” he said.

    Kefyalew pointed out the need to cut down the long supply chain in the fertilizer market to secure the products at lower prices.

    Eighty five percent of the Ethiopian 100 million population depend on farming. Last year the Ethiopian government purchased 852,400,000 tons of fertilizer valued at 385 million dollars. The price does not include transportation, bank and insurance costs.

    This year the Ethiopian Agricultural Business Corporation would buy a total of 1.2 million tons of fertilizer at a cost of 400 million dollars (nine billion birr). The fertilizer demand is on average growing at a rate of 20 percent. Out of the total 1.2 million tons of fertilizer required this year 935,430 tons has been already purchased through an open international tender.

    Urea (350,000 tons), NPs (193,000 tons), NPS Boron (338,000 tons) and NPS Zinc and Boron (54,430 tons) were purchased. The remaining amount will also be purchased once the corporation opened letter of credits.

    Kefyalew told The Reporter that the Moroccan fertilizer giant, OCP, would supply 70 percent of the country’s fertilizer demand. The remaining 30 percent is bought from various international fertilizer producers.

    Global leader in the phosphate industry, OCP Group, has partnered with the Ethiopian government aiming to build a 2.5-billion-dollar fertilizer plant in the eastern part of Ethiopia, near Dire Dawa town. Stretched on 100 acres of land, the plant would have an annual production capacity of 2.6 million tons of fertilizer.   

    Kefyalew said that at the moment two vessels are unloading fertilizer at the Port of Djibouti and the third Vessel carrying fertilizer will soon arrive in Djibouti. He said due to the congestion at Djibouti port the government of Ethiopia is looking at alternative ports. “We are looking at Port Berbera of Somaliland and Port Sudan. Particularly Port Sudan is viable to import fertilizer to the northern part of our country,” Kefyalew said.

    As part of this effort a vessel carrying 50,000 tons of fertilizer will arrive at Port Sudan in the coming few days.

    Kefyalew said that the country would continue importing fertilizer until it builds its own fertilizer plants. “The government is looking at various options. One of the options is attracting foreign fertilizer giants who have interest in investing in partnerships or by themselves. There is also an initiative to build fertilizer factories locally by the government,” Kefyalew said.

     The Ethiopian Chemicals Corporation is tasked with building five fertilizer plants. However, Kefyalew said the main contractor, the Ethiopian Metals and Engineering Corporation, did not advance the project as planned.

    Source:Ethiopian Reporter

     

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  • Definition of Entrepreneur

    Definitions by different scholars, sources and their views is described below for your reference.

    Entrepreneur is one who assumes the risk and management of business. Webster dictionary

    Entrepreneur is a person bearing risks of profits (loss) in fixed price contract with the government. The 17th century concept.

    Entrepreneur is a person bearing risks is different from one supplying capital. Richard Cantillon, 1725.

    Entrepreneur is a person bearing risks, planning, supervising, organizing and owning. Beaudeau, 1797.

    Entrepreneur is separated profits of an entrepreneur from profits of capital. Jean Baptiste Say, 1803.

    Entrepreneur is distinguished between those who supplied funds and received interest and those who received profit from managerial capabilities. Francis Walker, 1876.

    Entrepreneur is an innovator and develops untried technology. Joseph Schumpeter, 1934.

    Entrepreneur is an economic man who tries to maximize his profits by innovations. Haggen, 1958.

    Entrepreneur is an energetic moderate risk taker. David McClelland, 1961.

    Entrepreneur maximizes opportunities through systematic innovations. Peter Drucker, 1964.

    Entrepreneur takes initiative, organizes some socio-economic mechanisms, and accepts risk of failure. Albert Shapero, 1775.

    Entrepreneur seen differently by economists, psychologist, business person and politicians. Karl Vesper, 1980.

    Intrapreneur is an entrepreneur with an already established organization. Gifford Pinchot, 1983.

    Entrepreneur is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychological, and social risks and receiving the results- rewards of monetary and personal satisfaction. Robert Hisrich, 1985.

    Entrepreneur is a person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs. Indigo Dictionary of Business, 2002.

    Entrepreneur is an individual who undertakes (from the French entreprendre to undertake) to supply a good or service to the market for profit. Entrepreneurs will usually invest their own capital in a business and take on the risks associated with the investment. The view of capitalist is that the initiative of entrepreneurs creates a society’s wealth and that governments should therefore establish conditions in which their activities are encouraged. Oxford Dictionary of Business, 2002.

     

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  • Ethiopian Takes Delivery of Ninth B787 Dubbed Great Wall of China

    Ethiopian Airlines, the largest airline in Africa, is pleased to announce that it has received its ninth 787 Dreamliner, dubbed "Great Wall of China", on 3 August 2014.

    Ethiopian, an aircraft technology leader in Africa, was the first outside Japan to receive the ultramodern aircraft back in August 2012 and currently operates the largest 787 fleet in the continent.

    "For almost seven decades, Ethiopian has been playing a pioneering role in African aviation by providing its esteemed customers the most technologically advanced aircraft the industry has to offer. The 787 is our core fleet on our fast expanding mid and long range routes. In China alone, we operate this aircraft in our daily flights to Beijing in combination with the 777, Shanghai and now to Hong Kong with the delivery of this 9th 787. In addition to China, Ethiopian 787 flies to India, Europe, the US, Brazil and Africa. Going forward, we will continue to expand our 787 destinations with the aim of providing to our esteemed customers the ultimate on-board comfort", said Tewolde Gebremariam, Chief Executive Officer of Ethiopian Airlines Group.

    Ethiopian 787 offers unique features, which enhance passenger comfort such as greatly reduced noise, higher cabin humidity, biggest windows in the sky, lighting adaptable to the outside environment, wider aisles, more headroom and more seating flexibility.

    Ethiopian is a Pan-African global carrier with the youngest fleet in the continent with an average age of less than 7 years and currently serves 82 international destinations across 5 continents with over 200 daily departures.

    source: ethiopianairlines.com

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  • Advantages of Starting a Business at Home

    There are mainly three places where you can start your business. These are leased space, virtual office and your home. Leased site is where you rent a room or building to start your business. You use virtual office when doing online jobs. Online jobs do not require a certain location. You can do it anywhere if you have computer and internet connection. You can take your office anywhere. You will have flexible working place.

    You can use your home for starting a business if you have ample space. Most small businesses are started at home. This is because it involves less cost and is free of hassles.  There a number of advantages of starting a business at home. In the following section we are going to see the advantages of starting a business at home.  

    Friendly Environment: Your home is the place where you spent most of your time. You like staying at home because your home is more or less equipped with the necessary resources. You get comfort in doing a business at home as same is environmentally friendly.

    Family Time:  When starting your business at home you will get more time for your family. You will be in close contact with your kids as there is no distance between your home and work. By doing at home you will have the opportunity to take care those who need your help. You will also have enough time for your personal issues.

    Proximity: There is no place gap between your work and home. You are free to contact your family at any time due to short physical proximity. This gives you comfort for child care and elderly care. You will be easily accessible to your kids when working at home.

    Business Attire: You do not need to have formal office clothing. This saves money on clothing and dry cleaning. When you work at home you are free to wear anything you like.

    Cost Saving:You will also spend less for automotive maintenance and spare part. You also save cost for fuel, car wear and tear, road taxes and parking fee. This is because of there is no or less travel to work.

    Stress Free: When working at home you will have less stress. This is because your work does not require travel. If you do not travel then you will not have traffic stress and tiredness even before starting your work.

    Improved Health: You will have enhanced health by working at home. This is because you eliminate the stress and tiredness that arise due to long travel. You will get improved mental and physical health by working at home.

    Working Hours: When you start a business at your home you are free to work long hours. You can do even in the late evening. You will not have any travel problem in the evening. You just can go to your bed when you are tired.

    Proper Eating: When working at home you will eat at your home. You will have healthy eating. Eating proper diet will make you free from diseases. If you are free from diseases you will save your medical expenses.

    Watch Your Home: When starting a business at home you will have the opportunity to look at your home. You do not need to employee anybody to care your premise.

    Concentration: Your home is quieter than the downtown. In downtown there are many people working in one building or place. There will be huge chaos when working at crowded place. This will diminish your concentration and focus and in turn your productivity. By working at home you will have full concentration and focus. This will result in increased productivity.

    Less Investment: When starting a business at home you will require less investment than doing in a leased site. This is because you will not have office rent expense. In addition to this you may not require additional office furniture as you are going to use your personal items.

    Long Travel: There will not be any long travel when working at home. This will save your time and travel expense. You will not face any traffic problem.

    Work-Home Balance: Working at home gives you the benefits of work-life balance.  

    Increased Productivity: You will have increased productivity due to less travel and stress. You will not have tiredness due to long travel. You do not waste your time for traveling.

    Therefore, consider the above points as advantage when starting a business at your home.

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