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In the past 15 years, leaders of the metropolitan chamber of commerce have never had as cozy a relationship with the government as seems to be emerging now, writes TAMRAT G. GIORGIS, Fortune Staff Writer
 

A New Found Coziness Between Chamber and Government

     
 
 
   

 Eyesuswork with Trade and Industry Minister Girma Birru . . .

 

. . . Minister of Foreign Affairs Seyoum Mesfin

 

. . . and Minister of Capacity Building Tefera Walwa

 















 

   

Tadelech Dalecha, state minister for Culture and Tourism, was not happy to see the Addis Abeba Chamber of Commerce & Sectorial Association “think small” on its new 200 million Br international trade center, possibly to be built on a vast tract of plot located opposite the CMC residential complex.

She wanted to see the centre include a facility where diverse cultures of Ethiopia and “even Africa” are promoted. She made the suggestion at a luncheon the Chamber hosted for government officials on October 12, 2006, at the Hilton.

It was to be the third luncheon the Chamber had organized over the past six months, promoting its mega project of offering Addis Abeba a modern trade fair structure. The Centre was baptised the “Addis Africa International Trade Centre” by Habtesellasie Tafesse, a.k.a the “father of Ethiopian tourism”, when Chamber leaders met members of the diplomatic corps at the Sheraton.

 
 
 

Provided that it will go as planned, the project will have three phases that are projected to take seven years to complete. It will have three exhibit halls with a total size of 11,000sqm, five permanent demonstration halls and a conference facility that could accommodate close to 2,500 people at a time.

Hoping that construction will begin this Ethiopian fiscal year, the Chamber anticipates spending close to 36 million Br at the beginning.

In many ways, this will be a signature project for the current leadership of the Chamber who will leave behind a monument to their legacy. It will also be a rare opportunity where the Chamber’s historically suspicious and unfriendly relationship with the government could be redefined, if recent developments serve as illustrations.

“I pledge, in my own and my government name, a full support to the Chamber on this project,” Seyoum Mesfin, minister of Foreign Affairs, told the mid-level officials gathered at the Hilton. “It is a significant project in many ways.”

Privately, Seyoum shared with Eyesusork Zafu, president of the Chamber, his rather thwarting encounter with prospective investors from the Middle East, after their visit to the existing Addis Abeba Exhibition Center, itself built by the Chamber in the early years of the military regime.

“You cannot claim to have an exhibition centre,” they were said to have told Seyoum, as the story was related to the gathering by Eyesuswork. “Which makes sense since you have not had meaningful trade until recently.”

But, until new, the Chamber was never prepared to abandon its fixation with the existing exhibition centre, after it was nationalized by the military government. Reinstated by the current government for only couple of months in the early 1990s, successive leaders of the Chamber had pushed for the return of this property, which, ironically, the Chamber was sentenced to pay capital gain tax arrears on.

It was during the last presidency of Brehane Mewa, now in a political exile in the United States, that the Chamber made its leap forward, dreaming about building a new center. In March 2006, the Addis Abeba Provisional Administration, under Mayor Arkebe Oqubay, leased the Chamber a huge plot of land found in front of the CMC residential complex, whose exact size is now a subject of controversy with other developers.  

Aside her complaints that the Chamber “does not recognize state ministers as much as it does their bosses”, State Minister Tadelech’s comment on incorporating more than what the Chamber seem to be prepared for now hit home the critical question the latter has been grumbling about to date.

“We thought we were given a plot of 120,000sqm by the City government,” Eyesuswork told the luncheon. “We discovered later on that this was not the case, when we went to fence our property.”

The Chamber has now a plot of 110,000sqm leased from the city government for 90 years, paying 1.56 million Br up front. Its leaders have a strong desire to expand this to 130,000sqm, for they claim to have developed a structure that requires larger plot. And the design, developed by Selleshi Consult in collaboration with ETG Design and Consultancy, shows the centre to be bordering the main road leading to Ayat residential village, on its main gate, and a narrow gravel road heading to a hill on its left.

“The plot we were first given was much larger; that was how we came up with the design that is on our hand,” said Arega Yerdaw (PhD), CEO of MIDROC Technology Group. He is also serving as one of the eight executive committee members selected by the Chamber to follow the realization of this project. “We cannot implement our design due to the problems we have encountered.”

The problem began when authorities at the city government realized that they have leased couple of plots to private companies such as Blue Nile Trading and Country Trading, if not more others, overlapping with what they gave to the Chamber. Either they would have to relocate these companies or look for a new, perhaps bigger, location to the Chamber; the latter has leaders who seem to be undecided whether to go to a larger plot elsewhere or prefer their case resolved where they are.

“I don’t understand why we can’t have over 500,000sqm,” Eyesuswork wondered at the luncheon.

His was a desire that appeared contradictory to what Arega and another committee member said at the same luncheon.

“We want the plot where we are now,” Arega said, with a firm tone.

“Private interest should not be allowed to override public interest,” the other committee member said, claiming that the Chamber, as opposed to the privately owned companies, represent a collective interest of the business community.

City officials want to see them make up their mind. And this message was clearly communicated to the Chamber leaders by Wubshet Brehanu (PhD), general manager of the Addis Abeba City Caretaker Administration.

“I know that there are some problems here,” said Wubshet, suggesting that the case is being reviewed by the Administration. “However, the request [from the Chamber] has to be reconsidered. Either you go for bigger project or you want us to solve the problem on the existing plot. Your project has to be reviewed afresh, should you want more plots than you have requested now.”

In comparison, his is a mild and cautious support the Chamber is garnering from senior officials of the federal government. Perhaps, the Addis Abeba Chamber of Commerce has never enjoyed such support from government official since the time of Emperor Hailesellasie.

The change of style in leadership by Eyesuswork, a man who often says he would not pick a fight where he is sure to lose, seems to have paid back in transforming the historically confrontational relationship evident during the reign of his predecessors.

“Now they [the government] want to include the Chamber on everything the private sector is required to participate,” said a Chamber’s staff. “We have too few staff to attend all the events we are called to.”

Compared to the years of isolation during Wubishet Workalemahu, Ethiopia’s advertising guru, in the mid 1990s; the confrontational years of Kebour Ghenna, in the early 2000; and the extreme suspiciousn years of Brehane prior to his unexpected departure two years ago, the Chamber is obviously having its honeymoon period with the government.

For the first time in decades, Girma Birru became the first senior minister to have visited the head office of the Chamber, located at Mexico Square, in August 2006. He even addressed a business luncheon later that afternoon held at the Hilton, where he was observed to be generous in his words; he assured the Chamber that his government will travel the extra mile to work with the private sector in creating wealth, provided that there is a clear understanding on their respective roles.

But little is as crucial as Eyesuswork’s lobbying capability in bringing Foreign Minister Seyoum for half an hour appearance on October 12, poaching him from a European delegation he was scheduled to receive that afternoon. He was not alone; an hour after Seyoum had left to meet the Italian high level mission, Tefera Walwa, minister of Capacity Building, appeared for late lunch. He too came from a day long meeting with members of the judiciary, discussing reform of the justice system.

Like Tadelech, he urged the Chamber leaders to “think big” when building the new international trade center. Tefera too would like to see those involved in the project to see Ethiopia of 30 years.

“We’ll not remain too poor,” Tefera said. “We should not do something that will require expansion after 10 years. The project belongs to the nation, it is ours. I’ll do my part to its success.”

It is indeed a new ballgame for the metropolitan Chamber to have attracted not only such high profile attendances at its functions. It has also acquired unqualified support to its project that is marred by disputes with members of the private sector.

 

 
 
 

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