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CSR Corner:

“Human Rights Due Diligence as part of Corporate Social Responsibility (CSR) Strategy” workshop organized by Fair and Sustainable Ethiopia

A half day interactive workshop was held on “Human rights due diligence as part of corporate social responsibility strategy” of private companies on October 17, 2019 at Harmony Hotel, Addis Ababa.

The workshop created responsiveness and harmony among the participants on the prominence of due diligence by producer companies towards human rights, social accountability and ensuring food security.

In the event, various companies and organizations such as; flower exporters, Celtic, Universal Plastics factory, Solidaridad East Africa, EHPEA and other key stakeholders took part in the interactive workshop.

The organizers; Fair and Sustainable Ethiopia stated that the business doing environment in Ethiopia is exciting but becoming a challenge through time due to the success of companies depends on how they respond to dynamism and predictability of its business doing environment. With this in mind, the topic of Corporate Social Responsibility (CSR) as part of human rights due diligence become crucial to investors, stakeholders as well as customers in the market.

Thus, the workshop was aimed and emphasized in improving the response of investors towards their employees and their surroundings to ensure business sustainability as well as to ensure food security to the surrounding livelihoods.

Due diligence steps to be followed by the companies were reviewed and most common human right risks such as risks to workers’ rights, suppliers and community rights were assessed and mitigation actions were deliberated in depth by the participants.

A tool for businesses to ensure social sustainability and contribute to food security was also presented by Fair and Sustainable Ethiopia which was developed as part of the Follow the Food (FtF) Project. The business tool helps companies and public-private partnerships to gain insight on the consequences of the choices they make, improve their due diligence and social impact assessment, and gain insight how companies can contribute to ensuring food security.  Website: http://www.fairandsustainable.nl/business-tool

As a way forward, the participants and the organizers made a remark that all stakeholders should cooperate to ensure fair and sustainable businesses in Ethiopia and strive to ensure food security and improve livelihoods of communities.

The National Quality Infrastructure Development Project (NQIDP) of Ministry of Industry, financed by World Bank, conducted a Need Assessments and Quality Standard Status of fruit and vegetable production and exports, leather processing, textile industry, honey production and processing in Ethiopia, held at Nexus Hotel October 10, 2019.

On the validation workshop the study team presented their findings along with their proposed recommendation. The study identified the challenges and gaps across the fruit and vegetables value chain that need to be addressed; mainly in relation to input supplies, farming practice, transport services, storage, processing, distribution and marketing.

The study proposed recommendations that would help to improve the fruit and vegetable production and exports standards in the value chain,  especially in the area of  quality infrastructure issues that relates to standards, testing, inspection, certification, calibration.  Hence, the study proposed fruit and vegetables sectoral improvement priority topics and institutions that could contribute in providing the services and addressing the priority topics.

In this regards, Ministry of Technology and Innovation; Agricultural Transformation Agency, EHPEA and Ministry of Transport were identified to provide the services and play major roles in improving the quality standards.

Accordingly, EHPEA was selected to provide training on Global GAP Certification (for pre-harvest and post harvest activities).  In addition to this, EHPEA representatives also advised that EHPEA can also provide onsite and classroom IPM Training and the study team well considered the comments given by the representatives.

The project manager of NQIDP concluded the validation workshop by highlighting that they will consider all the inputs given by participants and key stakeholders identify as service providers to be ready to provide the recommended services.

The Addis Ababa City Administration has lifted the heavy-duty truck restriction for daylight hours on. It is remembered that starting July 8, the administration imposed restrictions on truck movement in the city during the daytime until 8:00PM to reduce traffic in the capital. Medium sized trucks, like those with a capacity of 3.5 tons or less were excluded. Now, however all trucks can move freely in Addis on Saturday.

Semere Jelalu, Traffic Safety and Management Deputy Head at Addis Ababa City Transport Programs Management Office, told Capital that since the ratification of the directive trucks were not allowed to move through the city between 6:30 am and 8pm except on Sunday and holidays.

“Now we have added Saturday and Sunday and holidays for trucks to drive in the day time in the city,” Semere said.

Several businesses said their work was negatively impacted by the directive. Because most intercity transportation requires traveling through Addis Ababa the new law forced those shipping goods across the country, to wait on the edge of the Capital until night. Others like exporters of fresh goods including flowers and meat exporters were disappointed by the city’s decision. They claimed that their products were perishable and suffered from the delay.

Most of the flower farms and abattoirs are out of the city but need to transport their product to Bole International Airport every day for export.

Even though most of the businesses have expressed their opinions, the Ethiopian Bottled Water and Soft Drinks Manufacturing Industries Association (EBWSDMIA) has come up with concrete evidence showing the advantage and disadvantage to the water industry.

According to the information from EBWSDMIA, the study is undertaken by professionals from Addis Ababa University and the outcome submitted to the Ministry of Trade, Ministry of Transport, Office of the Prime Minister and City Transport Bureau.

The study argued that bottlers stock increased at their production site because they did not have ample time to distribute the product since some of the industries were forced to halt one of the three production shifts followed by layoffs of one third of the employees.

They also expressed the concern that it is not easy to do business at night because of security problems, and infrastructure like adequate street lights banks and labor issues.

“The study insists that small trucks up to 3.5 tons of capacity run in the city from 10 am to 4 pm. This means it pushes bottlers to expand the number of small trucks for product distribution which increased the number of vehicles in the road,” Ashenafi Merid, head of the association said.

The study that Capital reviewed recommended that at least medium trucks should be allowed for such kind of business or the hour limits be reduced either in the morning or night-time.
Ashenafi told Capital that the association leaders have gotten the chance to meet and explained the barriers for several city and federal officials including Girma Birru, Macro Economic Advisor of the Prime Minister.
He believed that the current decision of the city administration allowing trucks to move on Saturday is a good contribution for the economy.

Owner and General Manager of Tinaw businesses plc. Mr. Tesfaye G/Hiwot initiated a life skill training for its middle and higher management staff which were provided by Serapta Lifestyle Management plc. The training aimed to improve the life style of employees directly as well as to boost productivity through achieving better health of employees.

The training emphasized on life skills, better life styles, health and welfare, ergonometric aspects of individuals and others. The training delivered at the premise of the farm targeting middle and higher management of Tinaw which then extended to all employees through in-house training. Employees of the farms appreciated the initiative and stated that the training workshop was a life and career changing program which could be interpreted to personal and professional life.

Tinaw Business Share Company was established in 2006, by five shareholders, with the major objective of engaging in various business portfolios in a phase by phase basis with the initial focus on horticulture areas, floriculture in particular. The Company’s head quarter is in Addis Ababa – the Capital City of Ethiopia. The farm is located in Southern Nations, Nationalities and Peoples’ Regional State, Guraghe Zone, Ezsha District, Ziba-botto Village, 175 kms South West of Addis Ababa, at an altitude of 1970 meters above sea level.

The Company started operation on 7 hectares of greenhouse coverage and has undergone subsequent rose flowers expansion projects. Presently, the Company grows seventeen varieties of rose flower on 26.6 hectares of greenhouse coverage and exports to the international market, mainly The Netherlands. The Company has become one of the most competitive companies in the international floriculture business which is characterized by aggressive competition. It generates considerable foreign exchange to the country and has provided job opportunities for 900 workers at present. Noting its competitiveness and the already established management capacity in the floriculture sector, the Company planned to undertake rose flower expansion project.

Apart from rose flowers, the Company has secured 54 hectares of land for vegetables and has started growing for the local market at the initial stage of development with the ultimate plan for export market in phase by phase basis.

To this effect, the Company has put in place the major infrastructural facilities such as water supply along with a modern filtration system, electricity, and drip irrigation lines on 10 hectares open field. The Farm is also staffed with the required professional, and has started growing various vegetables on 10 hectares of land on open field. The flower farm has been engaged in various corporate social responsibility activities for the benefit of the local community.

The Ethiopian Horticulture Producer and Exporter Association (EHPEA) has been implementing liquid and solid waste management interventions in different member farms.  In this regards more than 30 member farms benefited from the construction of liquid waste treatment plants (i.e. wetland technology) and some of the member farms have been using composting technologies to manage their green waste.

Taking into account its success on implementation of liquid waste management, the Association plans to improve the green waste management technologies of member farms by taking various efforts to introduce the technologies.

Accordingly, EHPEA organized a consultative workshop to discuss on the existing solid waste technologies in the country and share experiences of different stakeholders.  The workshop was held on 3^rd of October 2019 at the EHPEA Meeting Hall.

The workshop brought together representative of member farms, concerned governmental institutions, NGOs, consulting firms in the field and high level experts to share their experience in solid waste management in general and green waste management in particular.

On the workshop; EHPEA, Wolijeji Agricultural Industry, Soil and More Ethiopia, Jimma University, SIMBA Bio Energy Solution, Ministry of Water Irrigation and Electricity, Ethiopian Biotechnology Institute and Bekur Engineering Consultants presented their proposed alternative technologies and experience on solid waste management, including the advantages and disadvantages of their respective technologies.

At the end of the presentation, participants made fruitful discussion on the presentations and forwarded recommendations for EHPEA that would help to introduce appropriate and viable waste management technology for its member farms.

The Environment, Forest and Climate Change Commission (EFCCC) organized a half day consultative workshop to discuss and reflect on the Commission’s performance of 2011 EC budget year in the area of environmental Protection and to present its 2012 EC budget year plan for discussion concerned stakeholders. The program was held on 1^st October 2019 at Top Ten Hotel in Addis Ababa.

On the opening, Deputy Commissioner of the Environment, Forest and Climate Change Commission, Mrs. Frenesh Mekuriya, gave a remark on the importance of working together with all stakeholders and the public to realize environmental sustainability and ensure that citizens have the right to live in a clean and healthy environment by enforcing law.

On the workshop it was presented that the Commission has been achieving good results in the area of environmental protection, mentioning the major activities performed by the commission such as; evaluating 13 mega projects and industrial villages in different parts of the countries, supervising 60 private manufacturing industries and 70 flower farms natural environment protection methods and waste managements against the standard parameter of the commission, giving acceptance certificate to 520 Environmental Impact Assessment studies conducted by private consultants for new investments; taking inventory of DDT chemical stocks in different parts of the country & conducted supportive supervision on 70 cities’ solid waste management systems and took corrective actions on the problems.

In the 2012 EC budget year, the Commission deliberated its main activities; to control and supervise waste management and environmental protection works of private companies, governmental institutions and non- profit organizations in the country and take all the necessary action to address problems.

The commission prepared detail supervision plans to ensure the environment policy would be implemented and the Ethiopian people are living in clean environment and protected from any environmental related problems.

In this regard the commission plan to supervise 58 flower farms in the country and to jointly work in collaboration with concerned stakeholders in controlling the environment and implementing the policy.

EHPEA Representatives also suggested that the commission should closely discuss with the EHPEA on the standard monitoring parameters for Gold, Silver and Bronze standards that are clearly stated in the Code of Practice, when evaluating or inspecting the member farms.

It was also advised that the supervision team should closely work with the EHPEA, in order to effectively supervise the selected farms and take corrective measures or actions on farms that do not follow the required standard.

The Deputy Commissioner on his part expressed the commission’s willingness to work closely with EHPEA and strengthen collaboration.

SHER Ethiopia PLC constructed a full-fledged Kindergarten at Adami Tulu Site. Public relation of SHER Ethiopia, Mrs. Yezina Ayalew stated that the company had almost in completion phase of the construction of the kindergarten and they already started registration of students for 2012 Ethiopian year.

The school will receive students from the company’s employees and from the surrounding communities as well. The communities and employees of the company have praised the initiative and stated that the school will help them in sending their children close to the area they work and live. The kindergarten school will be officially inaugurated and start delivery of education in the coming month.

MASHAV received a senior delegation headed by Ethiopia's Deputy Minister of Agriculture, Sani Redi Ahmed. Following a study tour organized by MATC – MASHAV Agricultural Training Center, the parties met to evaluate the ongoing Smallholder Horticulture Project held in Ethiopia in cooperation with USAID Ethiopia. As part of this program professionals from Ethiopia have been also taking part in a tailor-made course on “Avocado Crop Value Chain”  early this week.

The training program was held in the framework of the long term joint cooperation program between USAID Ethiopia, MASHAV and the Ethiopian Ministry of Agriculture and Rural Development, aimed to develop a competitive and sustainable avocado sector.

The Smallholder Horticulture Project (SHP) implemented in four main regions – Amhara, Tigray, Oromia and SNNPR aiming to promote economic growth in rural areas through strengthening commercialization of smallholder farmers in horticulture production in areas with recognized production and market potential.

Currently the project is focusing on developing a competitive and sustainable fruit development sector focusing on establishing a base for avocado export market from Ethiopia. The project is able to promote Ethiopian Avocado in the international market for the last three connective years and the quality of Ethiopian Avocado is becoming competent in European and Asian markets.

The demand of improved avocado seedling is now increasing in the country and there is big interest from the government and the private sector (local and international) to plant /invest and produce Avocado for export market.

The project strengthen six big nurseries and created a capacity to undertake modern seedling production locally. Since then, the project has raised 536,706 grafted improved Avocado seedlings out of which 431,919 (78.46%) seedlings that can cover a total area of 1038.27 hectares have been distributed to 3562 farmers. In addition to this, a total of 500,000 rootstock seedlings are found grown in the project nurseries waiting for grafting in between January and May, 2019.

With regard to capacity building activities, the project has trained 127 nursery technicians out of which 80 of them are found working in the nurseries of the project areas and the rest 47 has already started their own private nurseries. Apart from this, more than 2000 farmers has been trained in different permanent fruit tree management practices such as seedling handling and transportation, field preparation for planting, planting methods, irrigation and other orchard tree management practices. It was also learnt that, local and oversea trainings were also given to 350 experts involving in the different project areas. The project has also imported and distributed 225,000 scion cuttings (Hass variety) to the different project nurseries in two rounds.

DHL and Ethiopian Airlines have appointed Berhanu Kassa as general manager to lead their joint venture as it scales up its operations with three established stations, and a fourth by end of the year.

Kassa, previously director of logistics services at Ethiopian Airlines, takes over the leadership of DHL-Ethiopian Airlines Logistics Services from Pramod Bagalwadi, chief executive, DHL Global Forwarding, Sub-Saharan Africa, who was instrumental in setting up the joint venture.

Kassa’s appointment comes at a time when the country is focused on growing its economy by building industrial parks in key locations to accelerate growth of exports from Ethiopia. “In the past twelve months, we have invested in growing the team to full strength and have established three stations in Addis Ababa airport, and in the major manufacturing hubs of Hawassa Industrial Park and Bole Lemi Industrial Park,” said Kassa.

He added: “Our stations are strategically located for us to be close to where our customers operate, allowing us to achieve time and cost efficiency in our processes. We are also planning to launch a fourth station at the Modjo Dry Port by early 2020 where 95% of the country’s imports and exports pass through.”

Said Bagalwadi: “As the government targets to achieve 11% GDP growth annually under its growth plan, Ethiopia’s focus on export-led industrialization in sectors like energy, transport, and manufacturing and the expansion of physical infrastructure, will see its industrial sector expand by 20%.

“In order for Ethiopian businesses to seize this opportunity and expand globally, they need fast, reliable logistics connectivity to overseas markets, backed by industry expertise and high-quality transport infrastructure.

“We are making available training opportunities in the region to ensure that our colleagues are trained to the highest standards set by DHL globally, and lending our expertise to help enhance local infrastructure.” DHL-Ethiopian Airlines Logistics Services provides air, ocean, road haulage sand customs brokerage.

Ethiopia is also one of the key competence centres for DHL’s Industrial Projects – a unit of DHL Global Forwarding that manages complex logistics projects including deep sea chartering activity and heavy-lift cargo. The team also provides International Supply Chain solutions for customers, to link multiple suppliers from different sourcing locations to various destination markets.

The Hawaasa and Bole Lemi stations mainly serve export from the industrial parks, while stations in Addis Ababa and Modjo will serve both export and import, with the capability to handle international supply chain projects, as well as customs brokerage.