Category: Market

Over the past several weeks, a number of articles published within different international outlets have helped to bring increased focus and attention upon Eritrea’s Colluli pot¬ash project. The Colluli project, you may recall, is owned by the Colluli Mining Share Company, which is a 50-50 joint venture between the Eritrean National Mining Company and Danakali, a respected Austra-lian company.

While the individual articles were each interesting and expressed sev¬eral different points, they generally shared a similar, broader message. As a brief summary, the Colluli potash project was described as a “game-changer” for Eritrea’s de¬veloping economy, as it is expected to become one of the world’s most significant and lowest-cost sources of sulphate of potash (SOP), which is considered a “premium grade” fertilizer. In the years ahead, as the world’s population continues to grow significantly, the demand for food will progressively increase. At the same time, however, the avail¬ability of arable land is expected to shrink. Fertilizer is a key compo¬nent to ensure world food security in the future, and SOP is an impor¬tant fertilizer that greatly improves yield and crop quality. Within Er¬itrea, SOP is found in abundance, particularly in the Danakil Depres¬sion region of Eritrea.

The Colluli project is steadily moving along. Eritrea’s Ministry of Energy and Mines issued consent for planned financing for the proj¬ect after all preconditions were met, and the project is expected to be brought into full commercial pro¬duction in 2022. Notably, Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Eritreans stand to benefit greatly for a very long time.

In addition to being interesting and very informative, however, the different articles raised several points worthy of further consider¬ation and general discussion. I will briefly touch upon a few.

Indeed, the Colluli potash project is extremely exciting. It has tremen¬dous potential and is something that should be a source of considerable pride, happiness, and optimism for the people and the country. The project also underscores that Er¬itrea’s prospects for socio-economic growth and sustainable develop¬ment are truly promising and bright. However, it is important to under-stand the basic fact that natural and mineral resources are not the pro¬verbial magic pill or a simple pana¬cea for development challenges. In addition to their great potential ben¬efits and opportunities, they present many significant risks.

For instance, heavy reliance on natural resources may lead to the neglect of other sectors (e.g., agri¬culture or manufacturing). As well, challenges in the diversification of na¬tional income sources can arise, as can the so-called “Dutch Disease”. Natural and mineral resources have often been a factor in conflicts, as well. Unfortunately, across Africa and many other parts of the world, examples of the “resource curse” abound. In order to play a positive role and help establish a strong foundation for sustainable develop¬ment, natural and mineral resources must be managed and exploited sensibly within a well-planned and effectively implemented multidi-mensional program.

Encouragingly, Eritrea’s ap¬proach has generally been cautious and pragmatic, with the nation’s natural and mineral resources repre¬senting only one part of the broader development strategy and frame¬work. Importantly, natural resources have allowed the country to accrue vital foreign capital and strength¬ened the economy through helping to fund vital infrastructure projects or investments in numerous other areas. Professor Abraham Kidane, Economic Advisor at Eritrea’s Min¬istry of National Development and Finance, has described how “to fa¬cilitate proper exploitation of these resources, the government is invest¬ing in training programs, construc¬tion of roads, port facilities, and other infrastructure appropriate for mining.”

Furthermore, long ago, the late Ambassador Araya Desta, Eritrea’s then Ambassador to the United Nations (UN) and later representa¬tive at the African Union, specified aspects of the Eritrean approach, which largely champion sustain¬ability, equality, and environmental friendliness, in a statement to the UN Security Council’s Thematic Open Debate on Conflict Preven¬tion and Natural Resources on June 19, 2013. Desta noted that “[t]he cardinal principle of Eritrea’s min¬ing policy [is that]…all mineral re¬sources are a public property, and that the conservation and develop¬ment of these resources must be ensured for Eritrea’s present and future generations.” Furthermore, Eritrea’s National Development Strategy (2012) spells out that Er¬itrea “…is aware that [its resources] are non-renewable…and they have the potential of being curses rather than blessings for societies. Focus on the mining sector often leads to ignoring more vital and sustainable sectors.” Additionally, the Director-General of the Department of Mines in the Eritrean Ministry of Energy and Mines, Alem Kibreab, has un¬derscored that “…the mining sec¬tor must be developed slowly and carefully to prevent…the resources curse.”

A second important point to con¬sider is that in addition to natural and mineral resources, Eritrea has a number of other sectors with great promise. For instance, the travel and tourism industry has incred¬ible potential to help drive growth, create much-needed jobs, and sup¬port socio-economic development. Although Eritrea has enormous potential through its rich natural resources and cultural heritage, pristine beaches and long, beauti¬ful coastline, warm and hospitable climate, general cleanliness and se¬curity, welcoming people, and con¬siderable archaeological and his¬torical sites, the country is still, for the most part, in the early stages of its development for travel and tour¬ism. However, considerable efforts are being undertaken to develop this sector. Furthermore, the peace initiatives that have been unfold¬ing throughout the Horn of Africa in recent years are a significant and positive development. Peace and stability, for obvious reasons, are prerequisites for tourist visitation and should help to make Eritrea a destination of choice for more and more tourists.

Finally, as has been pointed out on numerous occasions, including by this author, Eritrea’s greatest re¬source and most precious asset, by far, is its people. The human ele¬ment is what will ensure the country develops and that the future is pros¬perous. Notably, every year large investments are made in developing and improving the country’s human capital (e.g., through substantial investments and expenditures on food, health, and education). Long may this continue.

Eritrea’s independence was not won because it had the largest army or the latest, most advanced weaponry and armaments. It was achieved because the liberation forces had great organization and planning, while its ranks were filled with strongly committed, dedicated, and high-quality men and women¬Similarly, while natural or mineral resources can play a positive role, Eritrea’s growth, development, and future prosperity will be based upon and ensured through an edu-cated, skilled, creative, diligent, and strong-willed population.

Source: Ministry of Information Eritrea

COTONOU, BENIN – Benin set up a service early in the COVID-19 pandemic to allow people to register their business online, and now the West African country is the world’s fastest place to start a business, according to a U.N. agency.

Sandra Idossou, owner of a store selling art in Cotonou, Benin, submitted her business application online and received approval and legal documents within three hours.

She said if the e-registration system did not exist and she instead had to go stand in line to start a business, she never would have done it.

To create her business, Idossou went online to monentreprise.bj, a platform in Benin to create and formally start a business. The site was launched in February 2020 by the country’s Investment and Export Promotion Agency, which did not want people to come into their offices during the pandemic.

Applicants fill out the required information, download the required documents and make a payment online. The documents arrive at the agency’s headquarters, where staff verify the information and mail business certificates to those who are approved.

Laurent Gangbes, general manager of the Investment and Export Promotion Agency, said in 2019 the agency was at 28,000 businesses created. In 2020, the figure went to over 41,000. He said the agency now processes an application in about three hours.

The online service helped make Benin the fastest place in the world to start a company, according to the U.N. Conference on Trade and Development.

The businesses must be located in Benin; however, people abroad can use the service if they are in the process of setting up a business inside the country.

Economists like Albert Honlonkou see big benefits for entrepreneurs.

He said the online service reduces costs, reduces delays and avoids corruption. It also avoids carrying papers around and, in the COVID period, it avoids contacts.

The Investment and Export Promotion Agency said it will continue to review the procedures and work with the private sector to further improve the process.

Source: Voice of America

Adal Poultry Enterprise was established more than 20 years ago at the outskirts of the town of Keren. “Good things come to those who are prepared to work hard on their goal,” says Mr. Omer Yessuf, the acting manager of the firm. We have conducted a brief interview with him, and the excerpts follow.

The enterprise was established in the year 2000 with a 600 thousand capital, which has now grown to more than five million Nakfa. Initially, poultry farming was perceived as an impracticable and difficult enterprise considering the losses farmers were experiencing. However, determined to grow and expand in this sector, Adal Poultry Enterprise has been exemplary in the commercial poultry farming sector.

“Initially we started the business with around 2700 chicks bought from private hatching enterprises at small poultry houses. Currently we are operating with around 18 thousand chickens. The chicks were originally imported from countries such as Holland, Germany and Hungary. But with the advent of the bird flu we are limiting our sources in line with the Ministry of Agriculture’s (MoA’s) plan to control diseases. As a result, the diseases have become known and easy to administer,” says Mr. Omer.

Animal feed for the chicken come from different sources. From 2001 to 2011 it was bought from plants such as Dibarwa Animal Feed Plant. But since 2011 the enterprise has been producing feed for its own use. The price of chicken and eggs is greatly influenced by the price of feed at the market. When the enterprise started to produce on its own, it became possible to store feed for a longer period of time and therefore avoid the market price instability, which indirectly influences the price tag of their produce. They also buy milled fish from the Department of Marine resources and calcium from Ghedem Gement Factory.

This has enhanced their ability to manage the content of feed which is tested in a laboratory. Accordingly, they feed the chicken 18 percent milled fish, 12 percent byproduct of sesame, one percent calcium and 70 percent sorghum. They utilize chopped straw from their farm to bed the chicken. The chicken are always locked inside and they must check the floor continuously. Mr Omer says “the floor has to be dry always and if it gets wet it’s an indication that there is an issue”.

Mr. Omer said that during the on-going COVID-19 crisis, the enterprise made big profits as the supply of chicken was very limited and the chicken they produced fetched more remunerative prices. Presently, the firm is earning around one million Nakfa before tax. In the coming year they have a plan to expand their ventures to include chicken production intended for meat. Mr. Omer says this will be very lucrative because these chicken are ready for sale within 45 days.

Mr. Omer holds a firm opinion that any work that began with enthusiasm and zeal bears the fruits of success. In the present scenario, he calls on farmers not to depend only on one type of activity but to add various supplementary enterprises to the existing one to raise the farm’s income and attain the government’s aim of achieving food security. “When we started as a small scale poultry farm for meat and egg production, we also included dairy farm. Currently we have more than twenty cows,” he says.

Moreover, in the context of the enterprise they are operating, Mr. Omer is of the opinion that sanitary practices are key to the success of poultry farming as it minimizes the incidence of diseases. If you can keep the chicken disease free, you can make profit. “After starting the business and we experienced a lot, we have acquired more knowledge on how to keep chicken. We always learn from our mistakes. We have experienced diseases in the past and incurred enormous lose on our business. This was because it takes time to identify the diseases and apply the necessary medication,” says Mr. Omer. In order to avoid this they follow cautious procedures in the feeding system, poultry housing, ventilation and the chicken’s exposure. They also vaccinate the chicken regularly. Though they have no particular vet that they work with, when there is an issue they are helped by experts. Under normal circumstances, all of the feeding and vaccinating is supervised by him. The chicken begin to be vaccinated right from their early age.

Mr. Omer said that they have a plan to expand the capacity of their poultry farm to 50 thousand egg producing and ten thousand chicken intended for meat production step by step in different phases.

When asked why in phases, he said they will invest their savings from the enterprise itself for expansion without financial assistance from other sources. He also said he wants the MoA to launch innovative programs for small scale poultry farmers. He is happy that the government has now initiated programs to assist small scale poultry farmers and interested households which he envisions will further help in the expansion of poultry farms in rural areas.

Mr. Omer offers his advice to interested start-ups who engage in poultry farming. He says that the imported chicken are different from the indigenous chicken which are more resilient. Those who want to invest in poultry must first learn how to manage chicken and consult experts. This will help them avoid unnecessary and unexpected losses.

Mr. Omer concluded by saying that their enterprise is a proof that if one is determined, success is inevitable even under the most adverse conditions. He has high expectation from the government to provide subsidy on the purchase of chicks and feeds for small scale poultry farmers. Besides, he hopes to see a hatchery established for the production of good breed of chicks suited to the different climate conditions in the country.

Adal Poultry Enterprise, which has given job opportunities to around 50 workers, has outlets in Keren and Asmara where eggs are sold at fair prices.

Source: Ministry of Information Eritrea