Birhane Mewa, formerly served as president of the Addis Ababa Chamber of Commerce and after his relation with the TPLF led regime strained, he was forced to leave his country to the United State of America in which stayed for 18 years. After the regime was changed four years ago, he came back again. Currently, he is in the process to establish a pharmaceutical Industry with 22 million US Dollar investments. He recently made interview with local media. While he explained by compare and contrast of the establishment of chamber of commerce’s, he said that, firstly in the imperial era the chamber was established as the Chamber of the Addis Ababa Traders later on it was named as the Ethiopian Traders Chamber.
That time the chamber was independent because it had an objective in advising the government in which rendered recognition.
When the Dergue assumed the power, it changed the system. Being the member of the chamber became obligatory. Therefore, when traders wanted to get license, they were obliged to be member of the chamber. In addition, the person was required to pay monthly contribution in cash. The leadership of the chamber were removed and replaced by the new ones who are loyal to the statuesque.
Out of the 11 members of the boards of the chamber 9 of them were from the government corporations. From the business men, it was Wubshet Workalemahu who was the renowned advertising company owner appointed as vice president. He was the only person from the private entity.
That time, Birhane Mewa was the vice president of the Ethiopian Private Manufacturing Industry and in order to strengthen the chamber, he served as vice-president. Later on, Kihbour Gehna, the renowned economist became president of the chamber. Again after fierce competition Birhane himself reelected as a president. The objective of the establishment of chamber of commerce is to generate ideas that can be an input when the government prepares draft laws with regard to the business so that the laws do go in line with the interest of traders.
The second objective of the chamber is providing service to the business community. It established a radio station to disseminate valuable information and ideas regarding business to the public which received international award. The award was given by South Africa named as “The Best Chamber in Africa”. As to Birhane, while he was in his presidency, the EPRDF regime pursued a divisive policy.
As a result, misunderstanding and conflict was prevailed between the Addis Ababa Chamber of Commerce and the chambers of the towns established in the regions. Hence, when Birhane Mewa became president his priority task was creating enabling environment to all chambers to come together and narrow their differences.
He exerted great effort to change the attitude of towns’ chambers regions towards the Addis Ababa Chamber of Commerce and to look them as partners rather than foe. To that end he provided some trainings and technical support to strengthen them. In addition to that, there was a plan to repatriate the chamber properties and land holdings taken by the government.
Now the place which would serve as exhibition center is reinstated to the chamber by the current government. The size of the land is more than 100 thousand meter square and the construction of the center is undergoing.
Asked how he could define the border of the role of the private sector and that of the public, in his response Birhane said that, in the fundamental principle, free market economy regards the private sector as the back bone. The private sector plays crucial role.
The TPLF led regime when it was in power did not recognize the private sector as partner. To perpetuate its power it created its own so called private entities which move in his orbit such as endowments. And later they named as the government development organizations. Even today those so called private entities manipulated by parties are existed. They are not only supported by the government to compete with the private sector but also to play a dominant role in the sector. To that extent, they were supported by information; finance, bureaucratic system and such practice weaken the true private sector. Such practice still witnessed and the problems created that time still existed. They are intermingled with media and political parties. There also numerous business firms which have affinity with parties. There are also opportunist traders which are backed by the party and have privilege to get loan access from banks. They are also allowed to import goods free of tax and sell in advantageous price.
To tell the fact as to Birhane, there are few business entities grown up by their own effort with professional integrity. As to Birhane, marriage between political parties and business entities is not an outdated practice. Even it came today by changing its feature. Whenever one asks with regard to a business firm he can trace it by asking “who is behind that business”. Therefore, the legible private sector should be represented by the chamber of commerce. The business entity should be free from political party affiliation. When trader is defined, it has to comprise actors from retailers in the traditional market up to the factory and bank owner. They have common interest. They need the chamber which defend their interest. Nevertheless, still conducive environment is not created to chambers to empower themselves. Conflict and misunderstanding among various chambers is prevailed. There are still unresolved problems. It should be understood that the fate of the nation’s economy is determined by the strong and empowered private sector.
The private sector includes the foreign investment. But the local private sector is more valuable than the foreign one. When severe situation occurs, the foreign investor might repatriate his capital to somewhere else because he has his own country. But the local investor has no other country than his native country. Foreign investor has the right to repatriate its profit to the country of origin. He will take his capital by foreign currency. The local investor has very little interest to repatriate his profit to other country therefore; paying attention to local investor is vital. True private sector is created naturally. If you go to Mercato you come across with crowded people unable to pass by but all you see are exchanging their goods and services through purchasing and selling. No one is government employee and salaried and the private sector emerges in such activities.
Creating conducive environment to the business is vital and in addition to supporting the sector inspection is needed. There is affinity between the private sector and the political parties even in the USA. The sector finances various parties and assumed the practice as legal bribe. Corruption is official but they call it as “lobbying”. But when you examine, it is corruption they do not consider as crime but at the same time there is supervision. In Ethiopia political parties establish their business and derive their income.The established business entities have a duty to support the parties which politically sponsored. But what is worse is when parties themselves engage in business. What prevails in here in Ethiopia is the last one which is immoral and illegal. Therefore, parties must be completely banned from such activities.
In the USA when business firms offer money to the parties, they should get permission from the government. Individuals also can provide money to the parties in accordance with law of the country. The revenue authority should be informed about the provided money in addition, it has to be audited.
By ABEBE WOLDEGIORGIS
THE ETHIOPIAN HERALD THURSDAY 17 MARCH 2022
