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Full steam ahead as Swiss financier jumps on board

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The Harro market railway project secured a loan facility in the past week for USD 1.4 billion from Credit Suisse, a Switzerland-based financial group.

The line stretches from Awash to Weldia, both in the Amhara Regional State, and is part of the national railway project that extends from Mekele, the capital of the Tigray Regional State, to Djibouti, via Semera, in the Afar Regional State.

GE plans to establish an assembly plant in Ethiopia

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The US-based manufacturing giant, General Electric (GE), is planning to establish a medical equipment assembly plant in Ethiopia.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1537-uk-retail-giant-wary-of-poor-working-conditions

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Investment flow to Africa hampered by negative perception, says Dangote in Davos

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Negative perceptions, often arising from unfounded reports of social and political situations in African countries are blocking foreign direct investments into the region, Aliko Dangote, president of the Dangote Group has said.

The implications, he indicated, were a cramping of these economies and the job opportunities envisaged.

Speaking at the ongoing World Economic Forum in Davos Switzerland yesterday, Dangote said governments of African countries needed to make deliberate efforts to correct these distortions, in order to widen the channels of investment flow.

Speaking during a live telecast of a business platform “Africa’s Next Billion”, alongside other leaders, including Nigeria’s President Goodluck Jonathan and Ghana’s John Mahama, Dangote said the wrong perception of the security and political situation in Africa had made investors, especially from the West, to lose sight of the potentials in the continent, and African countries had also done little or nothing to remedy the ugly situation.

Explaining that the situation in Africa was not as bad as was being painted, the businessman said corporate investors did not check what Africa was truly about, but based their judgments on what they read in newspapers, which was often incorrect.

“For instance, foreign investors wait for elections to be concluded. After then, they try to check the stability of the government of the day, for at least two years, but by then, its more difficult to take any decision because the tenure of the government is coming to an end. By so doing, foreign investors are scared of incoming or incumbent governments and the cycle keeps going on,” Dangote said.

“But then, I don’t think there is anything to be afraid of because no government is against business, every government is pro-business. Most business risks are perceived, not actual risks,” he stated.

He lamented that Africa was not good at telling its own stories, which meant that people often relied on stories they heard from others, to make their decisions, and most times those stories were not true. “People always underestimate Africa,” he said.

He added: “As at today, an American has more access to Africa than myself, taking visa issues into consideration. I would require 38 visas to visit 38 African countries outside of ECOWAS.

“The government needs to make a policy where we don’t supply/export raw materials alone; we want to be involved. We want those factories to be set up and produce here, run it for us for about 4-5 years, then we can take over production ourselves. Majority of our raw materials have been exported, processed abroad and brought back with at least 10 percent higher than the original cost.”

He said that entrepreneurship entails being able to take calculated risks, strong business stamina and a large appetite for work and success, adding that Africa has what it takes for people to do business and succeed.

“In Nigeria, we have one of the most attractive investment policies through framework that the government has put in place to help businesses succeed. If I dreamt five years ago that I would invest in agriculture, I would write it off as bad dream or nightmare, but today, we’re investing $2.3 billion in agriculture, $2 billion in sugar, and $300 million in rice,” he said.

“In agriculture, we’re going to create 180,000 jobs in the next four years in Nigeria. African governments need to invest in infrastructure, education, economic stability,” he added.

http://businessdayonline.com/2014/01/wef-2014-negative-perception-robs-nigeria-africa-of-viable-investments-dangote/?goback=%2Egde_1968968_member_5832254407604998145#%21

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Alecto Minerals eyeing initial drilling at Wayu Boda gold project

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By Giles Gwinnett

The 945.5 sq km project is a joint venture with gold group Centamin, which is required to fund US$1.8 million to maintain an initial 51% interest and field work has started, Alecto said.

The exploration camp has been set up and all the ancillary support equipment for the core drill rig is on site.

Full details of the proposed programme are being finalised and will be announced in due course, it added.

So far, the company has conducted trenching, geophysics, and geological mapping which focused on the northern 15% of the licence areas where there are extensive artisanal workings.

Alecto chief executive Mark Jones said: “The commencement of field work at the prospective Wayu Boda gold project in Ethiopia symbolises the start of an exciting campaign managed by Centamin, which provides Alecto with exposure to the value upside potential present within the licence area without the expenditure.

“Drilling is anticipated to commence in the near future, and we look forward to divulging the full details of the forthcoming drilling programme in due course.”

Earlier on Thursday, the firm said it was confident of increasing the resource at its Kossanto gold prospect in Mali after receiving assays results for nine holes recently completed.

The drilling was carried out on the Gourbassi East target and Jones said the results confirmed the gold mineralisation extends to the south-west of the original resource area.

Shares dipped 10.26% to 1.75p.   Register here to be notified of future Alecto Minerals articles.

http://www.proactiveinvestors.com/companies/news/51522/alecto-minerals-eyeing-initial-drilling-at-wayu-boda-gold-project-51522.html

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Parliament approves loan agreements worth USD half a billion

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The House of People’s Representatives approved loan agreements worth USD half-a-billion on Tuesday, secured from various international financiers for the implementation of vital countrywide projects.

The major project areas include road construction, education, sustainable land use management and development schemes.

Norway gives duty free privilege to Ethiopian exports

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Mahlet Fasil

The Norwegian government says it would allow trade preferences to Ethiopian export products for unlimited period of time. At a press conference attended by representatives of the two countries, it was mentioned that paramount importance will be given to strengthening the trade and investment relations of the two countries.

In 2012, the total trade turnover between the two countries stood at only $58 million USD. Though Ethiopia’s exports to Norway have shown some progress as of late, its imports from Norway declined to $2.7 million USD in 2012 from $4.2million USD in 2004, showing a negative rate of growth by about 35%.

Gashaw Debebe, Secretary General of Ethiopian Chamber of Commerce and Sectoral Association (ECCSA),said during the event organized to brief businesses on the privilege the Norwegian government accorded to Ethiopian exports, strengthening the trade and investment relation of the two countries was important. It is an established fact that trade has proved to be one of the most effective tools to foster development, according to Gashaw. According to him, increased trade between and among developed and developing countries enhances reciprocal-export earnings; knowledge and technology transfer; diversified economic base and acceleration economic growth.

Processed Honey and coffee and flowers are some of the most famous Ethiopian products in the Norwegian markets.

http://addisstandard.com/norway-gives-duty-free-privilege-to-ethiopian-exports/

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Norway to Co-Chair Human Rights and Democracy Sub Group in Ethiopia with the European Union

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Through this role, Norway is actively engaged in human rights and democracy issues in Ethiopia

As of November 2013, the European Union has assumed the role as Co-Chair for the Human Rights and Democracy Sub Group in Ethiopia, after the United Nations Office of the High Commissioner for Human Rights. Norway and EU will Co-Chair the group and regularly bring together partners working on human rights and democracy issues in Ethiopia.

The Human Rights and Democracy Sub Group is a sub-group of the Ethiopian Partners’ Group, which reports to the Development Assistance Group (DAG). Norway has co-chaired the group since 2011. Through this role, Norway is actively engaged in human rights and democracy issues in Ethiopia.

The objectives of the Group are to share information on recent human rights and democracy related events, actions and plans, harmonize efforts to monitor human rights situation and follow-up human rights allegations in the country. Each meeting has a thematic focus and a relevant speaker is invited to introduce a topic. Topics which have been addressed over the last year are:

• Civil Society in Ethiopia

• Resettlement and Villagization

• Federalism, Decentralization and Local Authorities

• Media, Press Freedom and Journalist Culture in Ethiopia

• Ethiopia’s National Human Rights Action Plan • Ethiopia’s Structural and Political Framework focusing on the Constitution and Ethnicity

• Ethiopia’s Universal Periodic Review – 2009 and upcoming 2014 – Civil society’s report

• Religious development in Ethiopia focusing on Islam and relations to the State and the Orthodox Church.

(Embassy of Norway)

http://addisstandard.com/norway-to-co-chair-human-rights-and-democracy-sub-group-in-ethiopia-with-the-european-union-2/

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Busy day for House as three crucial laws passed

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On Tuesday the House of Peoples’ Representatives endorsed three important proclamation bills, namely the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), the African Union Non-Aggression and Common Defense Pact, and the Livestock Marketing law.

The House passed the new tobacco controls with a majority vote after several years of advocacy by various groups, who lobbied the government for legislation to regulate tobacco products in Ethiopia.

Omo Kuraz Sugar Development Project benefiting pastoralists in the area

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Gashaw Aychilihum 01/25/14

The Omo Kuraz Sugar Development Project, which is underway in Southern Nations, Nationalities and Peoples National Regional State, is one of the sugar development projects carried out by Sugar Corporation.

The project, which will have five sugar factories when fully completed, covers a total area of 175 hectares of land for its sugarcane plantation.

Lusoru Kuta who is a native of the project area, South Omo Zone, is one of the beneficiaries of the job opportunity created by the project.

He is among the graduate tractor operators, who were trained at Chancho, Ethiopian Roads Authority Training Center, for three months. The training was fully sponsored by Sugar Corporation to benefit local community youths through working in the project.

Lusoru, a father of a son says, “Before I started working in Omo Kuraz Sugar Development Project, I was a pastoralist. I spent most of my time moving from place to place to look for water and pasture for my cattle.”

After becoming an employee of the Omo Kuraz Sugar Development project, he is now running a settled and a better life. He also pays his younger brother’s school fee. According to the custom of his Gnagatom community, owning large number of cattle is a symbol of hard working and wealth. He is now regularly buying cows and oxen to show that he is a hard worker as well as wealthy.

Like Lusoru, Tsehaynesh Yeltona, 28, is among the pastoralist’s youths benefiting from the project underway in her local area.

Tsehaynesh, according to the custom of her community, was given to be a wife to a man fourfold older than her when she was 12 years old.

Her parents had received 38 cattle and a Kalashnikov (AK-47 rifle) as a dowry out the marital arrangement of their daughter, Tsehaynesh. However, according to Tsehaynesh, she refused to be married to an old man for which she suffered physical and psychological harassment.

Tsehaynesh who is currently married to another person of her preference is working as a receptionist in the sugar development project site at Salamago District. In fact, she says she is paying back from her salary the dowry that her parents had received from the man she was once supposed to marry.

Besides her personal employment at the Omo Kuraz Sugar Development Project, she speaks of the benefits the pastoralist community obtained as a result of coming together through the villagization program.

“The living style of our society was a scattered one and based on moving from place to place to get water and pasture for cattle. Now, this way of living is transforming to a settled and mixed agriculture. The community has started farming using irrigation facilitated by the project. They get potable water in their village any time they need. This has reduced the load of work for women and saved the time they used to spend to fetch water. They are also happy to get grinding mill in their village,” She said.

The Omo Kuraz Sugar Development Project has currently, created job opportunity for about ten thousand citizens like that of Lusoru and Tsehaynesh.

General Manager of the Omo Kuraz Sugar Development Project, Ato Nuredin Asaro, says besides its main goal which is producing sugar the project is benefiting the pastoralist communities in the project area.

The social institutions and infrastructures built by the project in three villages for the community are indicative of the commitment of the project to the local community, he said.

“Prior to the construction of the Sugar Factory number one, what the project did was arranging farmland for pastoralists. In addition, in all the three villages, we build social institutions like water facilities for human and cattle, schools, health centers and grinding mills. These all facilities we have done show that we are committed to make the pastoralist community benefit from the project” he adds.

To make the community benefit more from the project for long time, special attention is given to education, the project manager stresses.

“Currently, many children got the chance of education in schools built by the project. Especially, the number of female students enrolled is very encouraging” Ato Nuredin said.

The Corporation’s Deputy Director General of Public Organization, Ato Damene Darota, on his part said, the pastoralist community residing in the area were not beneficiaries of any development for long time. The Corporation is working aggressively to fundamentally change the long standing problem in lack of development.

South Omo Zone Administrator Ato Moluka Wubneh says the Omo Kuraz Sugar Development Project is bringing bright future for pastoralists living in gloomy situation for a long time.

Pastoralists who resides in villages are benefiting from the social institutions and infrastructures. “In pastoralist areas of our zone, it was difficult to get 20 students in a school. Now in villagization areas, the number of students is increasing dramatically. This shows the success of the villagization,” he adds.

The Omo Kuraz Sugar Development Project has from the outset embraced the local community which has an immense significance in achieving its goals in sugar development.

http://aigaforum.com/articles/omo-kuraz-dev.php

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Weak road contractors to be banned from future projects

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The Ministry of Transport revealed on Tuesday that the government is no longer willing to grant road construction projects to contractors who have demonstrated weak performance or caused delays, which regularly lead to the authorities incurring extra expenses.

The Minister for Transport, Workneh Gebeyehau, appeared before the House of People’s Representatives (HPR) where he responded to several questions posed by members of parliament (MPs).

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One way of ensuring economic strength in any given country is to export more goods services and than what are imported. The on going accession process of the country to joining the WTO was the blistering issue that triggered attendants to vehemently speak out their support on one hand and their concerns on the other. It so happened on the 4th Executive Idea Exchange Forum which was held on December 20 2013 at Eshetu Chole Hall, College of Business and Economics, Addis Ababa University under the theme “Implication of WTO accession for Ethiopian Business” in which high government officials, academicians, business people, development promoters and post graduate students participated.

As the world is becoming a small village as a result of globalization, there seems to be no choice but joining the group and becoming a family. The hypothesis is that the phenomenon of globalization according to some analysts, is the result of the booming technologies in the western world. Some claim that countries in the world would remain dependent on those technologies invented by industrialized countries which in turn gives advantage to the developed countries to continue dominating the rest. Similarly, as some claim the world is becoming one small village and is being ruled by the world’s largest organizations, such as WTO.

The WTO?

According to Geremew Ayalew, Director General of Trade Relations & Negotiation, Ministry of Trade the WTO is an organization having the objective to expand trade in goods and services with the objective of sustainable development. Geremew added that the WTO also aims to raise standard of living, by ensuring a large and steadily growing volume of real income and effective demand.

“From its inception more than 60 years ago to its present form as WTO, this organization is essentially meant for trade,” said Tsedeke Yihunie Woldu, Founder of Flintstone Engineering & Homes. Tsedeke added that contrary to popular belief, WTO may not always lead to more development let alone equitable development. It only leads to more trade among the member countries.

Yabowork Haile, Managing Director, Gasha MFI (Micro Finance Institution), on his part said that the WTO is umbrella international organization for the administration of global rules of trade between nations; it provides the principal contractual obligations; and provides a platform for negotiations amongst member (144) through period rounds.” “WTO is not a charity organization, rather market administering body,” he said.

Where is Ethiopia now in its accession to the WTO?

At the forum there were presentations that supported Ethiopia’s accession to the WTO while others claimed that the country managed to register a double digits economic growth without joining the WTO, so there is no need to rush and join the WTO. Meanwhile it was noted on the forum that the country has started the accession process some ten or so years before.

“Application for Observer Status was made in October 1997 two years after the establishment of WTO; and the formal application for accession was made in January 2003,” said Geremew, while he explaining the country’s status in the process of accession.

According to Geremew, the WTO accession is not an end by itself; it should rather be viewed as a means to accelerate economic development. For example, he said, the per capita of China, Cambodia and Vietnam showed increment after its accession to the WTO; while the per capita of countries such as Nepal and Cape Verde decreased. “Whether we are in or outside the WTO, we are abiding by the rules and regulations of the multilateral business rules internationally,” noted Geremew.

Geremew explained the significance of the country’s being a WTO member by citing the country’s Foreign Affairs & National Security Policy & Strategy (2002), that goes, “… The efforts in our country to bring about rapid development, democracy and good governance cannot be seen outside the regional and global contexts. In the process of globalization, the world economy has become interconnected and an international division of labor has been introduced. It is impossible to operate outside of this context. “ … We cannot attain development and democracy by closing our doors and taking refuge in our mountains. It is only when we accept the fact that we have no choice but to enter the global economy, and when we aim to transform ourselves from the state of dependency to that of being a producer, and a better producer in time.” Geremew further explained about the advantage of being a member to WTO that through fully exploiting the opportunities globalization provides us, lessening the constraints it creates, and becoming active participants in the process of globalization. Hence a policy that fully exploits the opportunities globalization provides us and that withstands the negative effects of the process, is useful and appropriate as is stated in the country’s foreign affairs and national security strategy.

Noting that the WTO is a huge economy of the world, Geremew told the attendants that 98% of the world trade is in the WTO, where seven big powers i.e., the United States, Australia, Canada, the EU, Japan, China and Russia together account for more than 70 per cent of world trade. Besides, he said WTO represents is 98 per cent of global GDP and, 96 per cent of the world’s population.

He, therefore, accentuated on the very need for Ethiopia to join the WTO and benefit from it as the organization is the world’s leading economy. “This signifies that it does not worth staying outside the multilateral system and is time to be part of the rule based family,” he said. Above all, he stressed the significance of joining the WTO by quoting the note from what is referred as the Lamy-Test, “accession should make countries better off, not worse of.”

What are the advantages of joining the WTO?

The forum also discussed the benefits and challenges of joining WTO for the Business sectors. It was noted that exporters will have more predictable access to foreign markets, and the WTO rules restrain arbitrary and discriminatory foreign practices to the business sectors. Plus to this, they will have better information on foreign market development and others.

The accession to WTO has its own positive and negative effects. Noting the potential advantages of joining the WTO, Geremew said that an acceding country will expand its trade in goods and services with the objective of sustainable development; and it also raises the standard of living of its people by ensuring a large and steadily growing volume of real income and effective demand. On top of this, the acceding government will have sustainable and predictable market access; and it can also build the confidence of investors and thereby attract foreign direct investment, FDI. Moreover an acceding country will improve the competitiveness of its local industries.

For domestic producers, more transparency on trade related regulations, having competitive service sectors to support their activities, developing their confidence for having stronger intellectual property laws, and improved access to foreign components and inputs are among the merits that accession to the WTO can offer.

Likewise, Zemedeneh Negatu, EY Managing Partner of Transaction Advisory Service, on his part asked, “how do we say that we are out of WTO, which constitutes 90 per cent of the world’s capital as a global community?” he said joining the WTO is by far better than not doing so. “It is inevitable for us to join WTO in a couple of years time; but we must be smart on our negotiations.” He suggested that job creation is the safety net that the government of Ethiopia has to think of in order to mitigate the impact of joining the WTO. Moreover, effective governmental machinery is needed to support negotiations; accession requires considerable strengthening of institutional infrastructure.

Zemedeneh urged the private sector in the country to be alert to follow what is going on in the global economy and update themselves accordingly. Ethiopia’s private sector needs to create juncture and make partnerships with the global businesses, according to Zemedeneh. Citing Ethiopian Airlines as a good example for its success in competing in the global market, he suggested the private sector to follow suit leaving aside the concern of joining the WTO. “If we do not join WTO, opportunities like AGOA might be taken away by the Americans.”

Tsedeke on his part stated how the country can get benefit from joining the WTO. “The country can_ benefit from WTO accession in four aspects: The accession streamlines government policy towards fair trade ; alerts local businesses from their complacent slumber to be competent in price and quality ; offers consumers and local businesses opportunities to get inputs from foreign suppliers; and finally, if all the three stages go unchecked by vested interests, makes national businesses become competitive enough to enjoy a predictable international market opened up by WTO accession as per the negotiated terms.”

It was also disclosed on the forum that the accession requires alignment of national legislation with WTO rules and commitments. Therefore, identifying conflicts between existing laws, regulations, practices, and preparing new laws and amending existing ones is said to be the responsibility of the government.

What are the challenges the private sector faces from joining the WTO?

Zemedeneh Nigatu of EY said that challenges such as facing stronger competition, having restricted policy space in relation to tariff management and flexibility and the like are what the business sectors should be aware of. In order to lessen the impact the private sector may face as a result of Ethiopia’s joining of the WTO, he suggested that actors in the private sector must be ready to make effective dialogue on trade and trade related issues with the government and international business sectors. And at the same time, the inputs from the private sectors should help identify sensitive economic sectors, and thereby avoid the dependency on policy protection rather to prepare for competition. Adding to this, he said, the Ethiopian private sector needs to upgrade its human capital and give efficient services.

Import quotas, voluntary export restraints, technical constraints, export subsidies and administrative and other regulations (safety regulations, health regulations, and labeling requirements) are the non-tariff barriers one has to look in to apart from the tariff barriers in the accession to the WTO, according to Yabowork.

International instruments like the WTO are hardly in favor of the developing countries, Yabowork said adding that ‘instruments’ including WTO, IMF and the World Bank were established with a sense of retaining Western supremacy in the name of trade. “All the agreements under WTO are signed only when developed countries have gained comparative advantages.” For example,” he said, “when exporting, developed countries give all the reasons to reject imports, even packaging; however, to the contrary of it, during importing Ethiopia may not have the necessary capacity to check all these. Further explaining the possible negative impacts of joining the WTO, Yabowork said, “none of Ethiopia’s industrial products is in a position to compete with any of the products from developed countries. He mentioned as an example the leather industry that would be under threat if the country joined the WTO as it would fail to compete with similar products from the developed world. Noting that Agriculture is not subsidized in our unlike in developed countries, Yabowork, therefore, urged the Ethiopian negotiators to put high bound tariff in it. Otherwise, he added that our agriculture will face a big problem.

Yabowork strengthened his concerns over joining the WTO by mentioning some challenges that await the negotiators. He said not always having equal opportunities for member countries to do their business, the high threat of non-trade impact (economic, social, political especially national sovereignty), huge cost in relation to implementing the complicated trade rules, the threat of being dominated by other country’s products due to the limitedness of our agricultural products that are vulnerable to price fluctuations, and lack of competitive capacity of infant industries among others are the challenges that the Ethiopian negotiators have to bear in mind during their talks with the WTO.

Tsedeke also expressed his doubt that Ethiopian exports will fare better under WTO’s Most Favored Nation (MFN) status than they are doing now with AGOA and EBA. This may lead to the eventual collapse of the nascent private sector, he stressed.

Negotiations in the accession process

“Yes, negotiations will work,” said Tsedeke adding, “the position of the consumer, the workforce and the state enterprises (CBE, ETC, METEC, ERC, etc. ) and the endowment giants ( of EFFORT ), these positions must be well defended and negotiated to yield maximum beneficial terms.” From this may come a strong and better position that can ensure competition among investors and lead to better prices for the consumer and less entry barrier for new investors, particularly local investors who will have finally learned to be as competent as the foreigners, Tsedeke said.

“Currently, Ethiopia cannot negotiate from the position of the national business interest. Given our low productive capacity, this is a very weak position and untenable in the short term,” he added.

“I hope the negotiators will play these cards – the consumer, the labor and the few but strong state enterprises – very well.”

Yabowork also stressed the significance of negotiations on market sensitive crops.

Prof. Fesehatsion, Vice President of International Leadership Institute on his part asked whether intellectuals were made to participate in the negotiation process. The professor also stressed the need to critically analyze the socio-economic benefits and impacts of foreign investments in job creation.

“WTO, basically has been a group of cramps where we have been co-opted to join,” he said. He added that the country must retain its unique features in its effort of acceding to the WTO. Professor Fsiehatsion also said that the contributions made by initiatives such as AGOA as far as job creation is concerned were insignificant.

Sourced:

http://www.ethpress.gov.et/herald/index.php/herald/development/5723-accession-to-wto-where-smartness-will-make-a-difference

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Related posts:

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-    Economic development: The good news from Ethiopia, and what might make it even better

-    Ethiopia’s Course of Development in the Eyes of Mark Lowcock

-    FACES OF Negotiation

-    Food Subsidies Could Stall WTO Deal

-    Trading freely by 2017

-    Ethiopia’s Fourth Round Negotiations with the World Trade Organisation Delayed

-    Single Trade Policy to be Drafted

-    World Trade What It Takes for Ethiopia to Join?

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Full *.pdf file of Ethiopia’s ongoing EITI progress to date and ongoing work plan schedule here:   

http://eiti.org/files/ANNEX_Ethiopia_application.pdf

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Related posts:

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-     Israel Chemicals reportedly near accord with Allana on potash mine in Ethiopia

-     Ministry of Mines Installs New Head

-     Revised bill set to increase gov’t share in mining investment

-     Allana Potash Granted Mining Licence for the Danakhil Potash Project in Ethiopia

-     Why are mining companies losing money?

-     CSO Law Stumbling Block in Mining Transparency Application

-     Denied EITI Inclusion, Ethiopian Ministry of Mines Prepares Own Transparency Guidelines

-     Thriving Mining Sector Sees Rising Share in Ethiopia’s Economy

-     Mining Jackpot Seeks Stable Investment Regime: A Billion Dollar Bet!

-     Israel Chemicals considering potash mine in Ethiopia

-     Mining Licensing to Become Stricter in Bid to Eliminate Abuse

-     Billion Dollar Mining Mountain

-     (UPDATED) Government has slashed large scale mining income tax from 35%  to 25%

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Ambassador Berhane meets the Parliamentary Secretary of Foreign Ministry of Canada

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State Minister Ambassador Berhane met on Monday (January 27) with Mr. Deepak Obhrai, Parliamentary Secretary of the Foreign Ministry of Canada.

Their discussions focused on strengthening the bilateral relations between Ethiopia and Canada.

Mr. Obhrai said he appreciated the growing relationship between the two countries and was looking for additional ways to expand the relationship. He mentioned Canada’s interest in signing a Foreign Investment Protection Agreement with Ethiopia.

Ambassador Berhane said Ethiopia valued its relations with Canada and appreciated Canada’s role in assisting the peace efforts in the region. He described the political relations between the two countries as excellent but suggested economic ties could be improved.

He pointed out that that Africa was set to become the next growth pole of the world economy and Ethiopia was one of the countries on the continent registering fastest economic growth. He urged Canadian companies to do more business in Ethiopia.

Ambassador Berhane welcomed Canadian interest in a Foreign Investment Protection Agreement but he also requested the Canadian government to sign a more comprehensive business agreement that included avoidance of double taxation as well as trade and tourism agreements.

He asked for an increase in the number of flights for Ethiopian Airlines to Canada, pointing out that it was the only African airline to fly there. He said an increase in flights would provide the opportunity to increase economic ties between the two countries.

Ambassador Berhane also briefed Mr. Obhrai on Ethiopia’s efforts to encourage lasting peace and security in the region, in Somalia, between Sudan and South Sudan and in South Sudan itself.

http://www.mfa.gov.et/news/more.php?newsid=2952.

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Dr. Tedros meets the head of General Electric International

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Dr. Tedros met Mr. Jeff Immelt, the Chief Executive of General Electric International Inc. on Monday (January 27).

Dr. Tedros detailed the Government`s aims to transform Ethiopia into an economy which has a modern and productive agricultural sector with enhanced technology and an industrial sector with a leading role in the economy. He explained successful combination of leadership, right policies, and focus on human resources development as demonstrated in the Growth and Transformation Plan.

He also noted the investment opportunities available in Ethiopia, in energy, including hydro, wind, solar and geothermal power, in infrastructure, agriculture, education and in manufacturing sectors. He also encouraged GEI to work together with Ethiopian Airlines to reach out across Africa.

General Electric International is a global leader in providing technology and services to power, rail, healthcare and infrastructure sectors, and has the expertise and capacity to facilitate engagement by private sector investors in infrastructure projects across the world.

Mr. Immelt said he appreciated the Government’s commitment and the environment for investment in Ethiopia. He said training services and manufacturing of equipment for maternal care would proceed as scheduled, and he expressed interest in expanding GEC’s activities and investments in Ethiopia.

During his visit, Mr. Immelt also held discussions with Prime Minster Hailemariam and with Dr.  Kesteberhane, Minister of Health. He said an MOU would be signed with the Ministry of Finance and Economic Development to provide a framework for successful collaboration between the Government, GEC and relevant stakeholders from the public and private sectors, to scope and develop viable and sustainable projects in key sectors of the economy.

http://www.mfa.gov.et/news/more.php?newsid=2961

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Dr. Tedros meets UK’s Minister for Africa

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Foreign Minister Dr. Tedros Adhanom held discussion on Tuesday with UK’s minister for Africa, Mark Simmonds.

Ministry endeavoring to attain GTP in energy sector

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The Ministry of Water, Irrigation and Energy said it is exerting maximum efforts to achieve the target set in the Growth and Transformation Plan (GTP) in the energy sector.
The five-year GTP, which will be concluded by 2015, eyes increasing the electricity generation capacity of the country to 10, 000 MW and its coverage to 75 per cent.
Wide-ranging activities have been carried out during the past three years of the GTP period to generate electricity from various sources and efforts are going on to attain the target within the remaining GTP period.
“The ministry is working day and night to raise nation’s power generation capacity to 10,000MW by 2015 from 2,268 MW now,” Water, Irrigation and Energy Minister Alemayehu Tegenu told WIC recently.
“The overall energy coverage of the country is also expected to reach 75 per cent by 2015 from the present 54 per cent,” he said.
In order to attain the plan set in the GTP, power projects with 8,500 MW power generation capacity are being executed in various parts of the country, the minister said.
According to him, the country has a plan to produce 8,123MW electricity from water, some 153MW from wind, 300MW from solar and 50MW from garbage which, all of them are under implementation.
In addition to the execution of power projects, the ministry has launched solar systems project, which will be used to power 25,000 homes in rural areas of the country.
Since the launch of the project, 23,000 solar systems have been installed, thus benefiting several households, he said.
Moreover, the country has set a plan to build 14, 000 biogas technology plants within the GTP period, out of which 3,500 biogas are being built every year, he said.
The country has also managed to save 100MW on daily bases through distributing power saving bulbs to households, Alemayhu Added.
Ethiopia has exploitable power potential of 45,000 MW from water; 1.3 million MW from wind, and over 7,000 MW from geothermal energy, it was learnt.

http://www.waltainfo.com/index.php/explore/12128-ministry-endeavoring-to-attain-gtp-in-energy-sector

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Italferr to support Ethiopian railway projects

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ETHIOPIAN Railways Corporation (ERC) has appointed Italferr, the engineering subsidiary of Italian State Railways (FS), to provide consultancy services for maintenance and operations on the new 656km Addis Ababa standard-gauge line and the Addis Ababa light rail network, which are both being built by China Railway Engineering Company (CREC)

The €1.23m contract was signed at the head offices of ERC in Addis Ababa on January 28.

Ethiopia, Algeria sign cooperation agreements

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The Third Ethiopia Algeria Joint Ministerial Committee Meeting was held at the weekend with the respective delegations led by Dr. Tedros Adhanom, Foreign Minister of Ethiopia and Mr. Ramtane Lamamra, Foreign Minister of Algeria.

Bureau creates jobs for over 173,000 compatriots

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The Amhara Regional State Technical and Vocational Enterprises Development Bureau said it has created jobs for more than 173,000 compatriots during the past six months.
Bureau Public Relations Head, Zelalem Niguse, told WIC hat some 92, 478 of the jobs created in the past six months are permanent jobs. The remaining 80, 586 jobs are temporary.
In order to alleviate site problems of the enterprises, some 278 sheds built by the state are being distributed among beneficiaries, he said.
All beneficiaries of the job opportunities have received short term training, according to Zelalem.

http://www.waltainfo.com/index.php/explore/12130-bureau-creates-jobs-for-over-173000-compatriots-

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Administration set to expand urban agriculture

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A plan that enables to expand urban agriculture in Addis Ababa City Administration was prepared, according to Trade and Industry Development Bureau of the Administration.
Bureau Urban Agriculture Process Leader, Alemayehu Taye, told WIC recently that the plan would help expand urban farming in all ten sub-cities of the administration.
The plan, expected to involve 11,000 people drawn from 116 Woredas will be realized over the coming six months, Alemayehu said.
In order to attain the plan, training of trainers (ToT) was given for over 900 health extension workers deploy in the metropolis and other 442   executives, he said.
During the past six months, agricultural inputs and counseling service were also given to over 24,000 people engaged in fruits, vegetable and crop development as well as animal rearing, he added.
With a view to expanding urban agriculture in the city, the Addis Ababa City Cabinet approved urban farming policy and strategy last Ethiopian budget year, it was learnt.

http://www.waltainfo.com/index.php/explore/12129-administration-set-to-expand-urban-agriculture-

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Prime Minister Hailemariam holds talks with the Foreign Minister of Denmark

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The Prime Minister met with the Foreign Minister of Denmark, Mr. Holger K. Nielsen on Tuesday (January 28).

Mr. Nielsen is a member of the Folketing for the Socialist People’s Party and before being appoint Minister of Foreign Affairs in December was Minister for Taxation. Discussions focused on bilateral affairs and regional issues.

The Prime Minister explained Ethiopia’s aims to transform Ethiopia into an economy with a modern and productive agricultural sector with enhanced technology and an industrial sector in order to sustain economic development to achieve the goal of reaching a middle-income country. He detailed the investment opportunities available in energy, infrastructure, agriculture and agricultural processing, education, tourism and manufacturing. He underlined the importance of investment for Ethiopia and urged the Danish government to encourage investors.

Mr. Nielsen said he appreciated Ethiopia’s achievements in sustainable growth and said his government was ready to continue its support. He said it would provide special focus on encouraging more Danish investment and especially to help Ethiopia’s declared goal of a green growth strategy to which Denmark also subscribes.

Prime Minister Hailemariam also explained Ethiopia efforts to achieve peace and stability in Somalia and South Sudan. He pointed out that there was real hope that things would continue to improve in Somalia, but there was a need to continue with the fight against Al-Shabaab and it was important that the regional countries together with the international community should prevent any backsliding and that support continue to be given to bolster the Somali national defense forces.

On South Sudan, the Prime Minister said it was important to impress both sides with the need to seriously deal with the issues for the sake of all the people of the country. He said the involvement of neighboring countries was not helpful.

http://www.mfa.gov.et/news/more.php?newsid=2963

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Prime Minister Hailemariam opens the Ethiopia-Finland Business Forum 

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An Ethiopia-Finland Business Forum was held on Tuesday (January 28) with the aim to identify and promote new investment, trade and business opportunities between the two countries.

The forum was attended by Ethiopian Prime Minister Hailemariam, the Prime Minister of the Republic of Finland, Jyrki Katainen, high-level officials, and leading business representatives from both countries.

At the opening session, Prime Minister Hailemariam emphasized that mutual respect and mutual help were the pillars of bilateral relations of the two countries, stressing that all Finnish private and public companies would be welcome to invest in the opportunities that existed in Ethiopia. He noted in particular the possibilities available in areas of trade, investment, agro-processing, green renewable energy, infrastructure, and mining.

Finnish Prime Minister Katainen pointed out that the Forum would offer an opportunity to exchange views to accelerate and expand business and trade relations of the two countries. The representatives of participating companies then met in two sectoral workshops, one on energy and infrastructure, the other covering agriculture, land and forest.

There was agreement that the Forum was an important development for the relationship between the two countries and for the possible partnerships between Finnish and Ethiopian companies to allow a fast-track for business, trade, and investment cooperation.

http://www.mfa.gov.et/news/more.php?newsid=2953

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Amb. Berhane met with Sweden’s State Secretary

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State Minister, Ambassador Berhane Gebre-Christos met with Ms. Tanja Rassmusson, Sweden’s State Secretary for International Cooperation and Development on Tuesday.

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Africa needs agriculture to eradicate hunger & up sustainable food production

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Agriculture must become the engine for growth needed by Africa to eradicate hunger and boost sustainable food production, as stated at an event on the margins of the African Union Summit in Addis Ababa by José Graziano da Silva, director general, Food and Agriculture Organisation (FAO).

Stating that more than one out of every five Africans was still denied the right to food, he called on the region to step up its efforts, because it had the power to change the situation. He noted that a majority of the world’s ten fastest-growing economies were those of African nations.

”The challenge for Africa was to make economic growth more inclusive by targeting agricultural and rural development, women and young people,” da Silva said. About 75 per cent of Africans are 25 years old or younger, and the population is expected to remain largely rural for the next 35 years, with women heading many households.

“Agriculture is the only sector of the economy which is capable of absorbing this workforce,” the director general stated, adding that there was no inclusive and sustainable way forward for the world’s second-largest continent without women, youth and agriculture.

African Year of Agri & Food Security

Governments would have the opportunity to renew their support for agricultural development in 2014, which would be observed as the African Year of Agriculture and Food Security, which would be launched during the African Union Summit, slated to take place in the Ethiopian capital this week.

“The launch of the African Year of Agriculture and Food Security is a step towards a hunger-free and sustainable Africa that Nelson Mandela and many others dreamed of and fought for,” da Silva said, adding that it would build on the efforts of the Comprehensive Africa Agriculture Development Programme (CAADP), launched in 2003.

The African Year of Agriculture and Food Security is being observed parallel to the United Nations’ International Year of Family Farming. “For many years, and in many parts of the world, small-scale farmers, pastoralist families and fisherfolk were viewed as a part of the problem of hunger,” FAO’s director general said.

“That could not be further from the truth. Family farmers are already the main food producers in most countries, and they can do even more with the right kind of support,” he added. Improving access to financial services, training, mechanization and technology could transform subsistence farmers into efficient producers.

”Through methods that increase production and, at the same time, preserve natural resources, family farming would provide a sustainable alternative to input-intensive technologies that have resulted in damage to soil quality, land, water and biodiversity,” da Silva added.

2025 Zero Hunger target

Da Silva praised what he described as “the commitment, at the highest level, of an entire continent” to end hunger in Africa by 2025. The African Union Summit is due to adopt the target this week, in line with the Zero Hunger Challenge launched by United Nations’ secretary-general Ban Ki-moon in 2012.

http://www.fnbnews.com/article/detnews.asp?articleid=34972&sectionid=1

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Ethiopia-India partnership need to fill  trade gap: Ambassador

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Ethiopia and India have long-standing relations in history, culture and people-to-people. Nowadays, the relationship has become more defined in trade, economic and development spheres. But, filling the gap in trade still requires more effort Indian Ambassador Sanjay Verma said.

In an exclusive interview with The Ethiopian Herald, Ambassador Verma said that India is among the top three or four trade partners with Ethiopia. “That is why, trade relations between the two countries reached approximately 1.2 billion USD.”

He also stated that enhancing the trade and economic elements of the relationship is vital which requires more investment in Ethiopia. Moreover, making sure that Ethiopia starts exporting to India because the trade gap is a lot that has to be corrected, the Ambassador added.

In the case of India, for instance, the import is greater than export. India, every year, imports much petroleum, which costs almost 120 billion USD. Thus, this affects the trade balance, he noted.

Likewise, Ethiopia is no different in this aspect and on essential commodities. Because, Ethiopia is a newly developing economy. When the nation start producing, the import substitution may happen, so that the gap offset reducing.

Pertaining to this, Ethiopia might benefit a lot from hydro-electric power, agricultural products, leather and food processing in employing these for import substitution which increasingly contributes immensely to the national economy. With regard to developmental partnership, the Ambassador noted that Indian investors invest almost 3 billion USD. Moreover, the Indian government assists development activities. Predominantly, it is active in providing scholarships, e-network, telemedicine, interlinked with Black Lion Hospital to deliver health services, among others. The cooperation area also includes the defence sector, leather and textile industry, he added.

http://www.ethpress.gov.et/herald/index.php/herald/news/5752-ethiopia-india-partnership-need-to-fill-trade-gap-ambassador

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Official says Ethiopia remains Italy’s strategic partner

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Italian Deputy Minister of Foreign AffairsLapo Pistelli

Italian Deputy Minister of Foreign Affairs Lapo Pistelli who attended the 24th Ordinary Session of the Executive Council of the African Union said that Ethiopia remains strategic partner in dealing with regional, international affairs and his country is ready to broaden areas of cooperation.

In an exclusive interview with The Ethiopian Herald, Pistelli said: “It is clear that Italy and Ethiopia have longstanding bilateral relations. Addis Ababa is not only the capital city of one of the emerging new power of Africa but also a city where the AU is headquartered. Therefore, Ethiopia is playing significant dual role in bilateral partnerships and serving as a hub of multilateral diplomacy of the continent. Ethiopia is our priority country in terms of cooperation and aid policy. Italy provides largest packages of financial support to Ethiopia, Pistelli added.

According to him, Italy considers Ethiopia as the emerging player from the economic perspectives. “Numbers are not that much big in terms of trade volume between the two countries. Thus we are looking forward to re-launch the inter-trade between the two countries.”

In the next couples of weeks, the Deputy Minister of the Italian Economic Development would visit Ethiopia in order to promote areas of cooperation and accommodate new Italian companies to be engaged in the country’s development drive, Pistelli added.

The Deputy Minister underlined that Italy is having strategic cooperation with Ethiopia in regional and international issues. It is a key player in helping the international community to deal with regional crisis particularly in neighbouring countries, he said.

He further indicated that it is interesting that Inter-Governmental Authority for Development (IGAD) has emerged as a multilateral fora to deal with regional crises. “There are some other big actors like United Nation (UN) and European Union (EU) in resolving conflicts. But through time, these organizations are aware of having regional mechanism to deal with crisis efficiently and effectively IGAD being used as proper mechanism to resolve crisis.”

In this regard, the Italian government is co-chairing the IGAD Partners Forum with Ethiopia giving Italy a role in convincing other actors how IGAD plays a relevant role in conflict resolution, he said.

Pistelli also noted that both countries see the world in different perspectives, but they believe that multilateral diplomacy is the best way to deal with complex crisis. “The cooperation shown by both countries at the IGAD Partners Forum held last September was indicative of the existence of closer bilateral ties between the two countries.”

The Deputy Minister underlined that Ethiopia and Italy also take the same stance that the crises in Somalia would be resolved sustainable manner only if countries help from a civilian government defeating Al-shabaab not only from military but political perspectives.

http://www.ethpress.gov.et/herald/index.php/herald/news/5741-official-says-ethiopia-remains-italy-s-strategic-partner

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AfDB adopts new gender strategy

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The Board of the African Development Bank Group last Thursday announced that it has approved its new Gender Strategy for the period 2014-2018

The new strategy provides “genuinely equal opportunity for men and women – in both their contribution to and their benefits from Africa’s economic transformation”.

“This represents a major milestone for the Bank, and it puts in place one of the critical foundations for realizing the ‘Africa at 50’ and ‘post-2015’ development agendas,” said Ms Geraldine Fraser-Moleketi, the Bank’s newly appointed Special Envoy on Gender.

According to Fraser-Moleketi, what is new in the strategy is not just the recognition that “gender equality is a human right, but that development will not happen unless women are fully included in the process”.

The Bank said the gender strategy is closely aligned with its overarching 2013-2022 Strategy, and its core objective of promoting inclusive growth which will broaden the opportunities for both women and men.

The AfDB explains the strategy is built around three mutually reinforcing pillars which were identified as being key to addressing the underlying causes of gender inequalities in Africa. These are strengthening women’s legal and property rights; promoting women’s economic empowerment; and enhancing knowledge management and capacity building on gender equality.

http://www.ethpress.gov.et/herald/index.php/herald/news/5769-afdb-adopts-new-gender-strategy

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Ethiopia’s renewable energy revolution shouldn’t fail to empower its poor

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Large-scale clean energy projects shouldn’t eclipse the urgent need to provide electricity to low-income and rural communities

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Katie Auth in Washington, DC

Will Ethiopia’s renewable energy project light up poor communities? Photograph: Rebecca Blackwell/AP

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The 84 wind turbines erected just south of Addis Ababa, Ethiopia‘s capital, tower above an arid landscape of grassland and unpaved roads, inhabited mostly by small-scale farmers, who – along with 77% of population – lack access to electricity.

The Ashegoda wind farm, launched in November, will produce an estimated 400 GWh of electricity per year, and forms just one piece of the Ethiopian government’s strategy to harness indigenous energy resources for development. When – and to what extent – the country’s rural population will benefit depends on striking a balance between investing in new grid-connected generation and effective strategies for expanding access.

Ethiopia today stands at a crossroads. In 2012, it had the world’s 12th fastest growing economy (pdf). Unlike many industrialised nations, however, Ethiopia has made clear that renewable energy will be a key economic driver, emphasising green growth and clean energy as integral to growth and transformation plan (pdf), a five-year strategy to reduce poverty and spur national development. Recognising electricity as a vital enabler of economic growth and human development, the plan aims to minimise the gap between demand and supply, increase per capita consumption, and generate power for export. Specifically, it sets goals to increase hydropower capacity from 2000 MW to 10,000 MW, double the number of electricity customers, and raise the national electrification rate to 75%. Although its energy transformation has only just begun, two factors critical to Ethiopia’s early success are worth highlighting:

A diverse renewable energy portfolio

Diversification plays a critical role in reducing vulnerability, not only to supply disruptions and oil price hikes, but also to climate change.

Ethiopia is highly vulnerable to extreme weather variability, particularly erratic rainfall.  According to a World Bank study (pdf), climate change will likely increase the frequency of both flooding and droughts in Ethiopia, posing a significant challenge to agriculture, infrastructure, and hydropower generation. Although hydro provides cheap baseload power, over-dependence on the resource can make a country more vulnerable to drought conditions. Ethiopia has committed to developing wind and solar alongside its massive hydropower plants as guarantors against power shortages, especially during the dry season, while investments in geothermal and biofuels complement the intermittent resources.

Committed government partners

Through investment and policy reform, the Ethiopian government has played a crucial role in these early accomplishments. The country currently has the third highest public investment rate in the world (pdf), financed through a combination of restrained government spending and increased borrowing. Although Ethiopia generally struggles to attract investment, renewable project developers have recently noted the government’s willingness to facilitate co-operation.  Prime minister Hailemariam Desalegn has said that trade and investment have a most lasting impact than traditional aid. The government also ratified an energy proclamation  in November 2013 that has eased access for private investors. However, some have criticised the government’s lack of policy support mechanisms, which would provide developers with a more solid framework and financial guarantee.

Renewable energy in sub-Saharan Africa

Despite its recent successes, Ethiopia’s energy push has run up against several major challenges. The Grand Renaissance dam, for example, raises environmental, social, and geopolitical concerns. According to the Ethiopian Electric Power Corporation, approximately 700 farmers lost some or all of their land during construction and development, and some claim government compensation was inadequate. Egypt, meanwhile, worries that the dam will curtail its own water supply, harming agricultural production and reducing electricity output from the Aswan dam – widely considered a symbol of Egyptian achievement.

The greatest challenge, however, will be to ensure that Ethiopia’s current focus on developing large-scale renewable generation projects does not eclipse the urgent need to expand electricity access in low-income and rural communities. Globally, energy access is considered crucial to reducing poverty and facilitating improvements in education, health, and economic productivity. Citing energy access as a prerequisite for achieving the millennium development goals, the United Nations has designed 2014-2024 the ‘Decade of sustainable energy for all‘.

Renewable energy development is gaining momentum throughout sub-Saharan Africa. Aside from hydro, however, much of the focus has been on technologies like small-scale solar for off-grid communities. In contrast, Ethiopia seems to indicate a potential shift towards utility-scale renewables. This large-scale approach – particularly when combined with Ethiopia’s focus on electricity for export – raises crucial questions about the future of electricity access. Even where people do have access, it can often be unaffordable or unreliable. A strategy that combines the kind of large-scale investment seen recently in Ethiopia with small-scale and distributed generation approaches – such as microgrids – could help ensure a more balanced result that will make Ethiopia a model for sustainable development.

Katie Auth is a research associate at Climate and Energy Worldwatch Institute. Follow @Worldwatch on Twitter

http://www.theguardian.com/global-development-professionals-network/2014/jan/30/ethiopia-renewable-energy-project

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Symposium discusses democratic developmental state concepts

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The Symposium brought together scholars, media management and practitioners,

opposition political party members as well as government officials

A day-long symposium on Democratic Developmental State and Mass Media Nexus organized by the Addis Ababa University (AAU) School of Journalism and Communication 2014 Post Graduate class yesterday discussed democratic developmental state concepts.

In his opening remark, AAU President Dr. Admasu Tsegaye said that the University, alongside with its regular duties, has been organizing various symposiums and public forum to discuss current national economic and political issues. It has also held various platforms to nurturing culture debate thereby reach at national consensus on various issues in the effort to assist in the democratization effort. The government and stakeholders as well as media houses are expected to play their due role in the effort to develop culture discussion, Dr. Admasu added.

What is more, the President said that a similar symposium was conducted on the Nile River in connection with the Grand Ethiopian Renaissance Dam. “We found that the symposium was very important to disseminate knowledge about Eastern Nile Basin and issues related to the dam. We are now trying to conduct a similar symposium in Khartoum March 8- 10, 2014 in collaboration with the Khartoum University.”

The core objective of the Khartoum symposium is to start working with Khartoum University on the Eastern Nile Basin. “We are planning to establish academic collaboration with the Universality to work on developmental issue of the Eastern Nile Basin,” Dr. Admasu said .

School of Journalism and Communication Head Dr. Abdissa Zerai told this reporter that the objective of the symposium is trying to see what is comparable and incomparable, to understand various perspectives of the diverse group of people coming from different biological tribes.

“We believe that universities are knowledge-generating institutions. It is one of the tasks of universities to look at very critically how the new concept of democratic development can actually meshes together. It is very important for us to go beyond the sloganeering. What are the problems and challenges in a country where we practice multiparty democracy,” Dr. Abdissa said.

In his presentation: ‘Freedom of the Press in the Environment of Democratic Development State’, Mushe Semu From the Ethiopian Democratic Party (EDP) said the previous press law relatively was good but the current one is very vague and very ambiguous. It violates the public the right to access to information.”

The Symposium, held at Intercontinental Hotel, brought together scholars, media management and practitioners, opposition political party members as well as government officials.

http://www.ethpress.gov.et/herald/index.php/herald/news/5767-symposium-discusses-democratic-developmental-state-concepts

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State Minister Ambassador Berhane meets the Vice Foreign Minister of Japan

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State Minister Ambassador Berhane Gebre-Christos met with Noro Mitsuiya, Vice Foreign Minister of Japan, on Thursday (January 30).

Ambassador Berhane welcomed the Vice Foreign Minister, recalling the recent successful official visit of Prime Minister Shinzo Abe (January 13-14) to Ethiopia to enhance bilateral ties in areas of economic development, industrialization and institutional development and with the Japan’s private sector. Ethiopia, he said, was broadening and accelerating bilateral cooperation in all areas of common interest and concern.

Noro Mitsuiya underlined that Prime Minister Abe’s visit would encourage continuous development of the long-time Ethio-Japanese relationship. Japan, he said, attached great importance to Ethiopia’s efforts to safeguard peace and stability in the Horn of Africa.

Ambassador Berhane pointed out that Ethiopia was committed to help the two parties of the South Sudan resolve their problems for the wellbeing of their people and for the Horn in general.

http://www.mfa.gov.et/news/more.php?newsid=2970

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State Minister Ambassador Berhane Gebre-Christos meets with China’s Special Representative on UN Affairs

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State Minister Ambassador Berhane met with Yang Tao, China’s Special Representative on UN Affairs on Thursday (January 30).

The theme of their discussions focused on bilateral relations and regional issues. Ambassador Berhane emphasized that Ethiopia was dedicated to strengthen and deepen its strategic partnership and cooperation for the welfare of the peoples of the two countries. He stressed that Ethiopia would continue to play a major role in promoting and finding ways of dialogue, negotiation and cooperation to restore peace and reconciliation in South Sudan.  Yang Tao commended Ethiopia’s efforts to encourage the parties of South Sudan to resolve their problems.

He applauded the country’s commitment to strengthen and deepen bilateral ties and its comprehensive strategic partnership with China. He also pointed out that China would continue to boost its bilateral relations with Ethiopia in the future. He also said China would broaden its cooperation with Ethiopia on issues of solidarity, unity and climate change. Ambassador Berhane assured Yang Tao that Ethiopia was ready to join hands with China and other friendly nations to reduce the impact of climate change and to maintain the unity and solidarity of the two peoples, affirmed it would promote and speed up people-to-people relations in order to encourage the feelings of unity between them.

http://www.mfa.gov.et/news/more.php?newsid=2969

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State Minister Ambassador Berhane meets the Kazakhstan Ambassador

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On the margins of the 22nd Ordinary Session of the Assembly of the African Union, State Minister Ambassador Berhane met the Ambassador of Kazakhstan to Egypt and Morocco, and Permanent Representative to the AU and ISESCO, Ambassador Berik Aryn.

The Kazakh Ambassador recalled the official visit of the Kazakhstan Foreign Minister to Ethiopia and noted this had been both successful and fruitful. Ambassador Berik highlighted the similarities between Kazakhstan and Ethiopia, especially their multiethnic composition. He indicated bilateral agreements were being prepared to cover political consultations, trade, investment, education and culture.

Ambassador Berhane welcomed the decision by Kazakhstan government to open an Embassy in Ethiopia and assured the Ambassador that Ethiopian government will give attention and support to its incoming personnel. State Minister Berhane emphasized Ethiopia’s wish to strengthen economic ties with Kazakhstan and pointed out that this decision came at a crucial time as Africa’s economic growth was advancing. He added that the opening of the Embassy would strengthen bilateral relations as well as provide greater access for other African governments.

http://www.mfa.gov.et/news/more.php?newsid=2971

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Ethiopia elected as member of the Peace and Security Council of the African Union

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The Executive Council of the African Union in its 24th ordinary session conducted the election of the 10 members of the Peace and Security Council (PSC).

Ethiopia and Tanzania are elected as members of the PSC for the next two years from the East Africa Region. Burundi, Chad from Central African Region, Guinea, Gambia, and Niger from West African region, Libya, from North Africa and South Africa and Namibia from Southern African Region are also elected.

49 member countries voted out of the 51 member countries since Egypt, Central Africa and Guinea-Bissau were not eligible to due to suspension of membership.

The PSC composed of 15 members of which five members are elected for a three year term while the 10 members are elected for five year term.

According to the Protocol Relating to the Establishment of the PSC, the criteria for election includes, contribution to the promotion and maintenance of peace and security in Africa in this respect, experience in peace support operations would be an added advantage; capacity and commitment to shoulder the responsibility the membership entails and participation in conflict resolution, peacemaking and peace building operations in Africa.

http://www.mfa.gov.et/news/more.php?newsid=2965

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Road construction: promising but sluggish

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The House of Peoples’ Representatives urged different bodies working on the road projects Thursday to run various activities keeping the required quality and the set time frame with a view to meeting the desired change in the country regarding the sector. As learned from the House, though a number of road projects are being carried out across the nation, the projects are suffering from lack of quality and not being readied for service at the intended time interval.

The very sluggish pace witnessed in due course of running road construction has, apart from incurring the public and the government huge cost, the roads get the public desperate enough. Here, the Ethiopian Roads Authority and the Ministry of Transport to which the former is accountable are expected to attach due emphasis to the issue. The road projects susceptible to a quite sluggish pace for instance include the Jimma—Bonga—Mizan—Humbo—Arba Minchi, those which are exposed to a serious lack of quality are also comprise Ginde-Woin—Mekane-Selam—Kombolcha—Shire-Endesellasie—Shiraro—Wukoro—Zalambessa. Worse even, the projects incorporating Ambo — Woliso—Muketuri—Alem Ketma—Hamusit—Estie—Debarq—Limalimo have not yet been started.

If the situation keeps at the same rate, it would be impossible to achieve the intended goals in the Growth and Transformation Plan (GTP) with respect to new road construction, up-grading and maintenance.

Non-accomplishment of road projects, problems of quality, time lag to commence planned road projects and failing to maintain old roads were questions, among others, from members of the house to the ministry.

According to the Ministry, efforts are being made to address the problems encountered related to weak performance of the contractors and other factors. In some cases, the topography of the road site and the society request to modify the original grades of the roads cause unexpected delays. It is also stated that currently, 224 road projects are underway of 140 are well in progress even beyond the plan while 20 projects are running with very slow pace that require stringent effort to bring to workable pace. True, more than 62 per cent of road has been accomplished over the past three and half years including upgrading, maintenance and new road construction while the rest will be done in the remaining one and half year to meet the GTP.

In fact, the topic of construction broadly encompasses the issues relevant to the process of road construction and maintenance, including the design, contracting, implementation, supervision, and maintenance of roads and related structures, such as bridges and interchanges. In many parts of the project sites, not only are cost high and quality low, it is common for suppliers of construction materials and services to have monopoly power, further increasing inefficiency and lowering quality. First, in these situations, it is a combination of transferring work from the public to the private sector and the introduction of competition into operations that is often the best way to decrease inefficiency and improve quality. Second, the contracting out of the works function requires the introduction of competition into the operation of road agencies themselves, either by the greater use of existing private contractors, or by allowing public sector agencies to compete with the private sector.

The road construction needs to be given due emphasis as it has been compromised many failed contractors coming up with poor planning, poor budgeting, and poor resource management. To overcome these problems, risks must be properly defined and the remedies associated with them spelled out in a way that eliminates the incentive of the contractor to bid other than at his best price.

There are options for creating an enabling environment for the road construction, thus leading to more involvement of private contractors and consultants in improved management of road assets. The process, which is of particular importance for economies in transition such as ours, begins with separating the functions of planning and management from implementation of road works. These methods not only help produce gravel roads of equal quality to those produced using equipment-based methods, but they also generate rural employment in a cost-effective manner.

Undeniably, proper road maintenance contributes to reliable transport at reduced cost, as there is a direct link between road condition and vehicle operating costs. On the contrary, an improperly maintained road can represent an increased safety hazard to the user, leading to more accidents, with their associated human and property costs. Generally, roads have significant impacts on both nearby communities and the natural environment.

In sum, it is important to note that keeping the quality of roads and completing them as per the schedule is of paramount importance in helping the nation meets its intended target particularly with regard to the road sector as well as helps the entire society to enjoy modern life wherever they travel.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/5773-road-construction-promising-but-sluggish

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NEPAD accentuates African infrastructural development 

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Peer review mechanism session underway

Prime Minister Haile- Mariam Dessalegn said NEPAD has undoubtedly transformed the global debate about Africa by putting at front and centre the notion of the need for the continent to forge mutually beneficial partnership with the developed and emerging nations.

Addressing the 49th Meeting of NEPAD Steering Committee here yesterday, Prime Minister Haile-Mariam said the journey of the last decade has indeed been particularly rewarding for Africa though, obviously, a lot remains to be done.

“That is why we should continue to further enhance Africa’s collective endeavour to find ways and means to address the seemingly perennial economic, social and political challenges that our continent faces and do so in a manner that will ensure promoting the interest of our peoples,” he said.

The Premier said that assessments of impact and future of Africa’s partnership engagements with traditional partners as well as emerging ones should also be addressed.

“In doing so, it is important that we are mindful of the need to remain focused on making the best out of our partnership and the promotion of the interest of our continent,” Haile-Mariam said.

The Premier also said the need to bring on board newly emerging players whose partnership would go a long way in further solidifying the gains NEPAD has made possible for the continent cannot be overemphasized.

“While appraising and taking stock of the progress thus far made, we should also focus on unblocking policy legislative and regulatory challenges that are standing in the way of enhancing investment and infrastructure,” he said

According to the Premier, attention also needs to be paid to the issue of mobilizing domestic financial resources in the quest to realize ambitious infrastructural development goals.

Dr. Carlos Lopes UN Under Secretary–General and ECA Executive Secretary also said there is no need to emphasize infrastructure in Africa’s transformation agenda as this is now clearly accepted by all.

He noted that infrastructural development could enhance the ability of African countries to establish competitive industrial sectors and promote greater industrial linkages.

“There is also compelling evidence of the huge impact of road improvements of doubling of agricultural production in rural areas,” he added.

http://www.ethpress.gov.et/herald/index.php/herald/news/5740-nepad-accentuates-african-infrastructural-dev-t

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More news:

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-     29 January 2014 Development News Roll

-     28 January 2014 News Items

-     27 January 2014 News Round Up

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Filed under: Ag Related Tagged: Addis Ababa, Africa, African Union, Agriculture, Business, China, East Africa, Economic growth, Ethiopia, Ethiopian government, Hailemariam Desalegn, India, Investment, Millennium Development Goals, Politics of Ethiopia, Sub-Saharan Africa, tag1

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Israel to Finance Wolkayit Sugar Project

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An Israel construction company, Natifa, secured a loan to be used to finance the Wolkayit Sugar development project from an Israeli bank. Reliable sources told The Reporter that Natifa has been negotiating with Israeli banks that could finance the Wolkayit Sugar factory that the Ethiopian Government planned to build in the Tigrai Regional State. Sources said that Natifa secured more than 100 million dollars loan for the project from an Israeli bank. Natifa is working with a local construction company, Yemane Girmay Construction. The public relations department of the Ethiopian Sugar Corporation said it is not aware of the said loan agreement. However, sources said that a loan agreement will be signed by the governments of Israel and Ethiopia in the near future.

Located at Tigray Regional State 1,350 km from Addis Ababa, Western Zone, Wolkayit Woreda, the Wolkayit Sugar project is one of the ten new sugar factories that the Ethiopian Sugar Corporation is building in different parts of the country.

According to the Ethiopian Sugar Corporation, the Wolkayit Sugar project will have one sugar factory with a cane crushing capacity of 24,000 tons a day that enables it to produce 484,000 tons of sugar and 20,827 cubic meter ethanol per annum.

It will have 45,000 hectares of sugarcane plantation field getting its water supply from Zarriema River over which a dam known by the name “May-Day Dam” will be built. The construction work of the dam is currently being carried out by a domestic private company – Sur Construction Private Limited Company. The dam upon completion will have 840 meter width and 135.5 meter height. The dam will have a capacity of holding 3,497,000,000 cubic meter of water. The sugar cane plantation is projected to produce 140 tons of sugarcane per hectare.

http://allafrica.com/stories/201402032017.html

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Ethiopia, Niger sign a General Cooperation Agreement

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Foreign Minister, Dr. Tedros Adhanom and the Minister of Foreign Affairs, Cooperation and African Integration of the Republic of Niger, Mohamed Bazoum, signed a General Cooperation Agreement on Saturday (February 1) with the aim of strengthening cooperation and partnership between the two countries.

 The Agreement as well is intended to address the contemporary challenges and to realize sustainable development in the continent through stronger cooperation in matters of mutual interest in multilateral forums.

Following the signing ceremony, Dr. Tedros commended the desire and commitment of the Government of Niger to sign the Cooperation Agreement with Ethiopia with the view to deepen the bilateral relations of the two countries. He also noted that the Cooperation Agreement would be a foundational basis and framework to coordinate efforts to tackle regional and global challenges. It would help the two countries to work closely in various fields, including trade, investment, peace, and security, he indicated.  Hailing the friendship and the existing relations between the two nations, he suggested that there should be closer collaboration and coordination to expand and strengthen the bilateral relations based on mutual benefit and mutual help. African project of African integration.

Mohamed Bazoum on his part mentioned that the agreement would help the two countries to cooperate and work for the realization of African Renaissance. Niger was fully committed to consolidate its bilateral relations with Ethiopia to hasten and advance development projects, he added.

http://www.mfa.gov.et/news/more.php?newsid=2982

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Gatekeepers of Executive Power Meet in Addis

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Secretaries of cabinets, gatekeepers of the most powerful guys in their respective governments, are in Addis Ababa this week, attending the Africa Cabinet Government Network (ACGN) meeting.

Comprising of cabinet secretaries from 11 African countries, the network held its first inaugural roundtable workshop on Monday, February 3, 2014, at the Addis Hilton Hotel. The meeting will stay until Friday, February 7, 2014, Fortune learnt. Cabinet secretariats from Ethiopia, Malawi, Ghana, Liberia, Sierra Leone, Somalia, Somaliland, South Sudan, Uganda, Zambia and Zanzibar are represented at the workshop. Abdon Agaw Jock Nhial, representing the government of South Sudan, expects to share experiences as the newest nation in Africa.

The purpose of the meeting is to share experience on how secretariats can better support their cabinets in improving their decision making through use of evidence and to expand the Network, according to  Ernest Surrur (PhD), the chair of ACGN.

Ethiopia needs to strengthen its cabinet system, although it has rich history in it, going back to the early 1920s, Getachew Reda, advisor to Prime Minister Hailemariam Desalegn, said during his opening speech.

The program is sponsored by DfID and Adam Smith International.

http://addisfortune.net/breaking-news/gatekeepers-of-executive-power-meet-in-addis/

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USAID Fuels Ethiopian Bamboo Sector With $1.75M Grant

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-  Ethiopia is home to a large proportion of Africa’s bamboo, but is yet to optimise its production -

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Tjada Mckenna, assistant to Food Security at the USAID, Mark B. Feierstein, associate administrator of the USAID and Earll Gart, assistant administrator for Africa, gathered at the facility of African Bamboo in the Vatican area of Mekanisa road on Friday, January 31, 2014.

USAID awarded a total grant of 1.75 million dollars to African Bamboo Plc on Friday, January 31, 2014, at the latter’s headquarters, in the Vatican area of Mekanisa road.

One million dollars of the grant is for developing and testing a heating process to make industrial and commercial quality bamboo using biofuels from organic waste, such as coffee husks and residue from processing the bamboo. The second grant of 750,ooo dollars is said to help the Company prepare feasibility studies and market analyses to attract investment capital and to meet requirements for exports to the United States and the European Union.

African bamboo is one out of a total 475 organisations that applied for the award, which targets supporting innovative projects and integrating clean energy technology into the agriculture sectors of developing countries to improve production.

The Company wants to engage more aggressively in its innovative work in renewable energy and agro-forestry processing now that it has won the award, says Khalid Dury, the general manager.

The Duri family purchased Fortune Enterprise under a privatisation bid in 1998. The Enterprise has 15 years of experience in woodwork. It was in 2012 that African Bamboo was registered in Ethiopia and the Netherlands, establishing a bamboo-based floorboard business.

A study by the International Institute for Environment & Development (IIED), in 2009, revealed that Ethiopia has 959,662ha of highland and lowland bamboo. This equates to two thirds of Africa’s current total bamboo resources. The Benishangul Gumuz Regional State is home to the largest proportion of it.

Many farmers in the highlands manage and harvest highland bamboo in small stands on their farms; they harvest the culms from November to February and from June to September. The buyers of the culms include local furniture makers and consumers who use it for construction materials.

Large scale bamboo manufacturing is little known in Ethiopia, with only two factories currently in operation, and a third currently having its machinery installed.

While Bamboo Star Agro-Forestry, established four years ago, employs 250 people in the Benishangul Gumuz Region, Assossa Zone, and has 393,000ha of bamboo plantations, Adal Industrial Group Plc is also involved in large scale production at its factory in the Sidama Zone of the Southern Region. The Company, established in 1989, first began its relationship with bamboo by producing incense sticks. In 1995, it expanded its use of the plant and started producing bamboo toothpicks. Nine years later, in 2004, the company introduced technology from the Far East and began producing bamboo flooring, curtains, table mats and charcoal briquettes.

African Bamboo follows on from these two, planning to get involved in bamboo production, and is currently installing machinery at its facility. The company intends to produce bamboo panels for outdoor decking, construction and pre-fabricated bamboo houses. It has already entered into agreements for bamboo farming with over 30 cooperatives, benefiting over 2,000 farmers in the Sidama Zone.

African Bamboo plan to export 100pc of its production. While the total investment needed for production is estimated at 250 million Br, the Company has so far been able to get just half of this amount, Fortune learnt.

“We have already secured 52pc of the market in Germany and are hoping to find the remainder in the rest of the world,” Khalid told Fortune.

For USAID’s Mark Feierstein, the award illustrates the commitment of the US government to assist Ethiopia’s five-year Growth & Transformation Plan (GTP) through public-private partnerships.

http://addisfortune.net/articles/usaid-fuels-ethiopian-bamboo-sector-with-1-75m-grant/

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New Enterprise for Ethiopia’s First Express Road under Formation

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If the proclamation and the organizational structure fail to be finalized before the toll road construction is completed (pictured), the ERA will administer the road until the enterprise is established.

The 82Km Addis Ababa–Adama Toll Road is under construction by a Chinese contractor, and due to be completed soon after consuming a total investment of 16 billion Br. Former Prime Minister Meles Zenawi launched its construction in November 2010, heralding the government’s Growth & Transformation Plan (GTP).

The Export-Import (ExIm) Bank of China has advanced a 20-year, $350 million dollar loan to finance the project and the remaining 43pc of the cost will be covered by the Ethiopian government. Beijing Expressway, a subsidiary of Beijing Enterprises Holdings, is the consultant on the project.

The road is scheduled to be inaugurated in May 2014, by Prime Minister Hailemariam, a senior government official in the Ministry of Transport confirmed to Fortune.

The road is the first toll way road for Ethiopia, requiring motorists pay a minimum of 50 Br upon entry of one of the 48 gates in seven stations, sources disclosed to Fortune. Nonetheless, a state-owned enterprise, which will manage the collection of these fees, would have to be established prior to April 2014, and the Council of Ministers will have to vote on the toll fee the public will be charged.

A bill for the establishment of the Enterprise, drafted by experts at the Ethiopian Roads Authority (ERA), was sent to Worqneh Gebeyehu, minister of Transport (MoT), in November 2013, according to an official at ERA, who declined to be identified due to the confidentiality of the matter. The Minister is preparing to table the bill to the Council of Ministers (CoM) for approval this month, Fortune has confirmed from senior officials at the Ministry.

The Enterprise, which will likely be named the Ethiopian Payable Roads Enterprise (EPRE), will be accountable to the Ministry, with an oversight of its operation by a board of directors. A general manager will head it, with three directors responsible for toll management, toll operation and engineering as well as human resources. The establishment of the Enterprise is estimated to cost 202 million Br, Fortune learnt.

The Administration is on headhunt to hire the general manager; and a staff member in the engineering department of ERA is the most likely candidate for the job, sources disclosed to Fortune.

The EPRE will have a total of 760 employees for a start, who will enjoy a monthly compensation of 15pc higher salary scale from what ERA pays its employees, according to those familiar with the bill. The minimum salary an employee would be paid is 760 Br, while the highest could be 16,000 Br, Fortune has learnt.

Three will be three teams under Toll Operations & Engineering Department: Engineering procurement and contact management; road safety and security; and electro mechanical management. However, this directorate has been a cause of contention between officials of the ERA and those at the Ministry.

“The ERA is claiming that the toll operation and engineering tasks should be left to it, as they are the ones making the road,” an official told Fortune.

If the proclamation and the organizational structure fail to be finalized in time before the opening of the road for operation, ERA will administer the road until the Enterprise gets established, said an official, although he expressed confidence that the Enterprise will be established in time. A senior official at the Ministry confirms his view.

The six-lane expressway, which has been under construction for the past three years, is now 82pc completed. Asphalting a section of the road at the entrance to Adama, building offices, traffic signs and lights are works that remain to be done.

The highway will cut down travel time between the two cities to 40 minutes from the current two hours. The toll amount to be has been under study for six months by a special committee at the Authority, according to a senior official at the ERA, who requested anonymity. Charging toll fees and controlling access to the road will both be done by machines. These will be procured and assembled by the contractor, the China Communications Construction Company (CCCC). The money that is collected from the tolls will be used for the maintenance of the road itself, said the official at ERA.

The road has eight tollbooths along with cameras, and will be equipped with lighting throughout the entire 80km stretch. Eight large bridges and 77 smaller ones are also part of the project.

The expressway starts from Tulu Dimtu, 2.8Km from Akaki, and links with Dukem, Bishoftu (Debre Zeit) and Modjo, before reaching Adama. Of the expressway’s tollgates, Addis Ababa and Adama each have one, while the others are to be located at six interchanges.

The current Addis Ababa-Adama road handles 19,000 to 20,000 vehicles daily, which is well above its capacity, according to transport officials. The new expressway can handle 15,000 vehicles comfortably, however, and could be upgraded to an eight-lane road if the need arose.

http://addisfortune.net/articles/new-enterprise-for-ethiopias-first-express-road-under-formation/

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Quality Japanese Leather Producers Invest in Ethiopia

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-  The investment is a massive boost to the government, who target the leather industry as a priority in their GTP

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The arrival of Hiroki, which sells quality leather at high prices in Japan is an opportunity for the burgeoning leather industry, say Ethiopian officials.

Hiroki Co. Ltd, a Japanese-based leather producing factory, is set to start production in Ethiopia in mid-March, with an investment of close to 10 million Br.

The first Japanese foreign direct investment (FDI) to Ethiopia in the leather industry, Hiroki, which already established the Hiroki Addis Manufacturing S.C in September last year, will start producing leather garments, bags, wallets and shoes for export to the Japanese market.

The Company decided to engage in production having studied the marketability of Ethiopian leather, says Youngil Song, president of Hiroki Addis.

“We decided to open a factory in Ethiopia because of the availability of quality leather raw material,” Song said. “It is one of the finest leather in the world.”

Hiruki’s decision to open up a factory in Ethiopia – which will be based in a rented building in Alemgena town, in the Oromia Region, located some 26 km from Addis Abeba – was also prompted by the availability of cheap labour.

Hiruki’s leather jackets are sold at high prices in Japan, costing between $2,000 dollars and $5,000 dollars. Hiroki’s leather specialty shop is located in the Yokohama Motomachi area, which is one of the biggest shopping streets.

The factory targets an annual production of 1,300 pairs of Ethiopian sheep garments, 8,000 bags, 3,600 wallets and 7,000 shoes during the first year of production. The Company will start production with 30 employees, according to Song.

The arrival of three machines from the Port of Djibouti, which the factory expects in three or four weeks of time, will lead to the commencing of production, Song told Fortune.

In three years time, however, it plans to acquire a plot in the Bole Lemi Industrial Zone – the first hub exclusively for export-oriented manufacturers – to build its own factory. When it moves to Lemi, the factory plans to raise the number of employees to over 100.

For the government, which managed to earn $32.1 million dollars in the first quarter of the current fiscal year from the export of leather, Hiroki’s investment is a welcome opportunity.

“Hiroki’s decision to invest in Ethiopia is a welcome decision, as it focuses on high quality products,” says Tadesse Haile, state minister for Industry. “They recognise the unique character of Ethiopian leather.”

Although the $32.1 million dollars earned in the first quarter of this fiscal year has increased by $7.3 million dollars compared to the figure for the same period in the previous year, it still falls short of meeting the target.

The leather industry is one among those in the manufacturing sector that have been given priority under the government’s Growth & Transformation Plan (GTP). However, Ethiopia earned $123.4 million dollars in leather exports in the 2012/13 fiscal year. This was just 64.3pc of the projected target of $192 million dollars.

The decision to start production in Ethiopia is part of Hiroki’s 13-year plan, which also includes introducing products to the European market in 2015.

For Wondu Legesse, director general of the Leather Industry Development Institute (LIDI), Hiruki’s investment in Ethiopia is an opportunity for the emerging leather industry.

“Their quality of leather making is superior,” Wondu said. “They bring expertise and technique to the sector.”

http://addisfortune.net/articles/quality-japanese-leather-producers-invest-in-ethiopia/

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New Maritime Code Fit For a Landlocked Ethiopia

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-  The previous 50-year-old code was still based on having access to the ports in Asseb and Massawa

The Ethiopian Maritime Affairs Authority (EMAA) is in the final stages of  a new national maritime code. It will replace the 50-year-old maritime code, which has been in place, with a few adjustments, up to now.

The process started two years ago and the draft was completed in 2013. It took a year because of the shortage of experts in the sector, said Abebe Tefera, acting director of Legal Service & Collaboration at the Authority.

“The 1960 code was issued while Ethiopia had access to the ports of Asseb and Massawa,” says Abebe. “Thus, it was inapplicable to a landlocked Ethiopia.”

The bulk of the 1960 code, which deals with the administration, registration and usage of the two ports, has now been changed. The older code required cargo registration to take place at the two ports. According to the new code, however, this process will take place at the Authority’s headquarters located around La Gare, in Addis Abeba, along the Ras Mekonnen Street.

Although landlocked, Ethiopia continues to own ships and engage in international maritime commerce. Most provisions of the 1960 code, which assume the availability of ports, needed to be changed by legislating a body of law concerning ships and commercial transactions in a landlocked nation.

“The draft Code has been prepared after relating Ethiopia’s context to international maritime law,” Abebe said.

The new drafted code has three volumes: the first of these deals with maritime safety and security. It focuses on the safety of maritime from natural disasters, such as hurricanes and flood. Another component of the new code, also related to safety, is the carrying capacity of ships. Accordingly, ships must obey the standard carriage of items that is stated on the law, in order to avoid disasters resulting from overloads. The maritime security is also incorporated in this volume from the point of view of avoiding and controlling piracy.

The second volume has contents related to maritime pollution, where the conservation of the high seas from pollution is highlighted.

The last volume concerns issues related to cargo, packaging and the business of ship transportation.

The EMAA is now working to complete the production of reference documents within six months.

Experts have already been for the preparation of the reference, Abebe said. The Authority hopes to finalise the reference and send it to the Federal Transport Authority (FTA), the Council of Ministers (CoM) and finally to Parliament for approval and legislation.

“We hope to accomplish all this before the closure of Parliament by the end of this year in June,” says Abebe.

The preparation of the reference comes in three parts. The first is related to the code with the Constitution, in order to avoid contradictions. The second is preparing legislative intent, which refers to explanatory notes indicating the motives and advantages of the code. Lastly, the code will be translated before it is submitted to the Council of Ministers (CoM) and Parliament. The fourth and final duty relates to the legislative process. The Authority follows up the legislative process until the draft is enacted into law.

The Authority was established in 2007 in accordance with proclamation no. 549/2007. It began operation in November 2008 and is answerable to the FTA.

After the establishment of the Authority, its main and first duty was drafting the new code to replace the previous one.

http://addisfortune.net/articles/new-maritime-code-fit-for-a-landlocked-ethiopia/

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Belgian Men’s Clothing Maker Considers Ethiopia

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Belgian company, Celio International, is looking into opening a textile and garment factory in Ethiopia. Celio, which specializes in men’s clothing,  came to Ethiopia on January 12, 2014 as part of a trade mission.
The Wallonia Agency for Trade and Investment, a Belgian governmental agency in charge of foreign trade promotion and Investment in Wallonia, which is one of the three Belgian regions, sponsored the event.
The Delegation of 12 companies represented by 16 people stayed for a whole week, meeting 50 Ethiopian entrepreneurs.  They were interested in trading opportunities in textiles, manufacturing, sugar, and agribusiness, according to Tom Neijens, First Secretary/ Deputy Head of Mission at the Belgian embassy.
“Some companies will come back to further explore, others already concluded some trade deals,” said Neijens in an online interview. “We are hoping to receive the announcement of a Belgian investment in an important sector soon.”
Neijens added that there are around 10 Belgian companies with investments in Ethiopia. There are many more investors active as traders, coffee bean buyers and involved in agricultural commodities. Most are active in the horticulture and flower business.
In the 2012/13 fiscal year, Ethiopia exported nearly 10,000tns of textiles and garments. In the Growth & Transformation Plan (GTP) textiles and garments are one of the major focal points of the manufacturing sector.
The GTP plans to increase export earnings from the textile sector from the 21.8 million birr garnered in the previous five year; Plan for Accelerated and Sustained Development to End Poverty (PASDEP) to one billion birr. But the sector brought in only 244.6 million birr in the previous years of the GTP which is much smaller than the 600 million birr targeted.
There has been a lot of interest in the Ethiopian textile industry from foreign companies. One of the companies that opened a factory is Ayka Addis. Ayka is based in Turkey and came to Ethiopia with the express invitation of the late Prime Minister Meles Zenawi and that in turn awakened the interest of 50 Turkish textile companies.
Cheap labor attracts many investors to Ethiopia and it is one of the countries that benefits from Barak Obama’s African Growth & Opportunity Act (AGOA) which allows specific countries to export their goods to America without tariffs or quotas.
Textile producers are challenged by lack of electricity, water and other amenities. They also are concerned by slowdowns from bureaucracy as they attempt to obtain credit and  business licenses.
The first Ethiopian textile company was created in 1939. Bahir Dar University is the only university with a Textile Engineering department.
This is the second trade mission from Belgium. In the next few months more than ten Belgian Companies will come for the trade mission. Celio was founded in 1985 by Marc and Laurent Grosman. The company has more than 1,000 stores in 70 countries and sells 35 million items annually.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3999:belgian-mens-clothing-maker-considers-ethiopia&catid=54:news&Itemid=27

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Ethiopian investors see fish farm potential

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Overfishing, water pollution, and lack of awareness are challenges investors face if they hope to develop the nation’s first aquiculture business. They do see a huge potential of about 40,000 tons per year, however.
A recent aquaculture trade and investment meeting with representatives from the Netherlands and Ethiopia, at Siyonat Hotel on January 28, lasted five days and was commissioned by Agri Business Support Facility (ABSF), a part of the Addis Ababa Chamber of Commerce & Sectoral Associations with support from the Netherlands’ Embassy.
“We aim to initiate model fish farms,” said Rachel Tocklu, managing director of Teampro, the consulting company that organized the mission.
“Ethiopians learn more by example than from experimentation. We want to show fish farmers there is a better way to conduct business with higher profits while still preserving the assets of the country,” she said.
Aquaculture in Ethiopia is still in its initial stages. The current production of capture fisheries is estimated at 16,000 metric tons. The main fish species are Tilapia, Catfish and Perch.
The necessary players in the field; fish feed producers, fish farm equipment suppliers, processers and trainers have to be recruited from scratch, creating a large source of employment.
After 2011, the Ministry of Agriculture established seed production centers which can supply potential fish companies. It also facilitated access to credit and provided basic marketing infrastructure such as roads and communication.
The Ministry says that Ethiopia is ripe for the establishment of a fish industry because of the country’s agro-ecologies and climatic conditions. Commercially important fish like Carp are also widely available.  The increasing demand for fish and fish products both locally and abroad and the wide variety of species are other potential positives.
“Orthodox Ethiopians fast more than 130 days a year and fish are an excellent source of protein,” Tocklu said.
Ethiopia’s potential for fishery development is in its 20 freshwater lakes, 12 river basins and 15 reservoirs. According to Wagenigen University, a Dutch institute, 15,156 square kms. of Ethiopia’s land is suitable for aquaculture. There are 180 different species of fish in Ethiopia and 30 of those are native to the country.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3997:ethiopian-investors-see-fish-farm-potential-&catid=54:news&Itemid=27

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Shoes in a Snap

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Local shoe makers are succeeding despite foreign competition

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Nowadays, it is not unusual to see the people of Addis sporting clothes made in Ethiopia. This trend is most remarkable where shoes are concerned, with brands like Solerebels, and Sheba shoes gaining international prominence.

In 2002, Ethiopian shoe manufacturers seemed doomed to fail when Chinese and other foreign shoes galore entered the market. The demand for Ethiopian shoes decreased dramatically when these foreign shoes, which had very nice and flashy designs but low durability were imported to Ethiopia.

But after 2007, things began to look up for Ethiopian shoe manufacturers when they learned from their mistakes and started making attractively designed shoes with all the sturdiness of the older models.

Bermero Shoes is a part of this resurgence. Bermero, located in Piassa next to Oslo Café around Taytu Hotel, opened its doors to customers in 2011. Meron Tezera, 34, part owner and manager of the store, says she and her husband chose the title of their company because of their names. “My husband’s name is Berhanu. We took the first three letters of his name and four from mine to create Bermero,” Meron explained.

The store buys some of the leather it requires from Sheba Leather Industry, according to Meron. They use leather made from sheep, goat and oxen skin. The price of their shoes depends on the quality of leather used as well as the design. For instance, a bag made of export quality leather will cost 1,000 birr while that made of a lesser leather will cost 300- 600 birr.

Like several of the new local shoe manufacturers you can purchase either ready or custom made shoes at the store but they have added an additional twist by being able to make the shoes, or other accessories like phone/tablet bags in around 30 minutes. At Bermero, the customers choose from a variety of options of styles from a display. They select the leather, color, sole and details they want themselves. Afterwards a Bermero employee comes to take their measurements. At least that is how things were going.  “Initially, we were able to meet the demands of our clients,” Meron said. “However, then we started getting so many requests as the shoes became popular, that  we were unable to cope with the orders.”

The popularity of the shoes compounded with the electricity which goes on and off without a moment’s notice has decreased the productivity at the store and now consumers often must wait a week before they can get their custom ordered shoes.

Bermero currently employs 31 people. The shop while located in the center of town and convenient for shoppers is not conducive for the production of shoes. “We have to balance the display area and the work space in a 70 m2 area,” said Meron. “But business is still good. We have a young customer base. Though exported shoes are still serious competition because they are cheaper, there is a reversal in attitude about Ethiopian shoes.” At Bermero, a pair of men’s shoes can be bought for 800- 1000 birr. Children’s footwear costs 400-450 birr and a woman can purchase shoes for 800 birr or less.

While many Ethiopians have changed their attitudes towards local products, there are some who complain that the shoes produced here have imperfect finishing work. One of them is Hannah Abel, a 26 year old aspiring actress. “No two pairs of shoes produced here look exactly alike,” she stated. “While that is not necessarily a bad thing, there has to be uniformity when you produce shoes with the same design. Because uniformity comes with standards and standards denote quality,” She had spent two hours looking at locally made shoes all over Piassa before finally coming to Bermero. After looking at the Bermero shoes for a few minutes, she left for home. “Maybe I will try again another day,” she sighed in disappointment. “I can’t stand shoddy work and nothing I saw today has impressed me.”

Another place where you can buy locally made shoes is Gabrielle Underwear and Shoe Shop found just a few blocks away from Bermero. There the owners buy shoes made in Merkato and Shera Terra. According to the management of the store, agents of the shoe makers bring them products to sell. One such agent is Shimeles Tadesse, 30, who works in association with twenty shoe producers. These shoe makers were affected most severely during  the 2002 foreign shoe invasion. “I learned the business of shoe making at my brother’s knees,” he says. “There is a lot that goes on behind the making of a shoe.” According to Shimeles, first someone cuts the leather into the appropriate shapes and another person assembles all the pieces including the inner lining into the proper pattern. The pieces are then sewn together before being stretched over a molding. After that one person prepares the sole of the shoes while another cleans the upper part of the shoes. Finally, the sole and the upper part are attached together. “There are over 200,000 shoe designs circulating in the city,” Shimeles claims. “And 95pct of them are not designed by the shoe makers. They are copies of foreign shoes. Despite the flaws in the shoes and the unoriginal designs many Ethiopians still purchases these shoes.”

In 2012/13, the leather industry earned USD 123.4 million from leather exports out of which USD 19.2 million was garnered from the export of shoes, according to the Ethiopian Leather Industry Development Institute (LIDI). The leather industry got USD 220 million from 2009/10- 2011/12. This puts a lag on the leather industry which is supposed to earn half a billion dollars by the end of Growth & Transformation Plan (GTP). This is in part attributable to the illegal export of Ethiopian shoes to Sudan and Kenya. These shoes are re-imported to Ethiopia with a higher price. Industrialized shoe manufacturing in Ethiopia started with the formation of Anbessa Shoe Share in 1927. Then in the late 1930s Armenian merchants founded two shoe factories in Addis Ababa. These factories taught a number of shoemakers, who opened their own factories in Addis Ababa and trained their workers. Now, it is believed that there are more than 1,000 enterprises producing leather shoes in Addis Ababa.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4016:shoes-in-a-snap&catid=49:feature&Itemid=48

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Footwear institute signs MoU with Ethiopia for technology upgradation

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Vadodara, Feb 2:

Footwear Design and Development Institute (FDDI) has signed an agreement with Ethiopian government for technology upgradation and promotion of quality education, research and development.

“The total cost of intervention is $ 4 million and similar kind of interventions for other countries like South Africa, Botswana, Namibia, Nigeria, etc, are in the pipe line,” FDDI Managing Director Rajeev Lakhara told PTI.

The institute has also provided overseas training and consultancy in Nepal, Bangladesh, Sri Lanka, Kenya, Zimbabwe and Sudan, he said.

“The institute’s strong alliance with leading international institutions/organisations ensures international level of training on the campus and extends the scope of students/faculty exchange programme in order to equip them to meet the challenges. So far, FDDI has been able to achieve 100 per cent job placement record,” he claimed.

The Gujarat Industrial Development Corporation (GIDC) has allotted 10 acres of land to the institute at Ankleshwar and the construction of the campus is underway.

FDDI, established in 1986 by the Union Ministry of Commerce, provides specialised programmes in footwear design, creative designing of footwear, leather goods and accessories.

http://www.thehindubusinessline.com/economy/footwear-institute-signs-mou-with-ethiopia-for-technology-upgradation/article5645571.ece

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Ethiopia earns over 172 mln USD from mineral export

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Ethiopia has earned 172 .6 million US dollars in revenue from the export of minerals in the first half of this budget year, according to the Ministry of Mines (MoM).
Ministry Public Relations Head, Bacha Faji told WIC that the stated sum of revenue was obtained from the export of gold, tantalum, marbles and gemstones.

According to Bacha, the minerals were supplied by companies and artisanal miners.
The ministry has failed to attain its target of making one billion US dollars due to lack of interest from buyers and the fall in gold prices at the global market, Bacha said.
Currently, there are 147 foreign companies in Ethiopia engaged in exploration, excavation and production of minerals, it was learnt.

http://www.waltainfo.com/index.php/explore/12184-ethiopia-earns-over-172-mln-usd-from-mineral-export-

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Eight companies get export boost

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The Public-Private Steering Committee (PPSC), the upper body of the Ethiopian Competitiveness Facility (ECF) has approved financial support for eight companies last week, Capital learned.
The (PPSC) works to help local companies export their products. Two additional coffee companies are expected to obtain approval from the PPSC, chaired by Tadesse Haile, State Minister of Industry. The meeting involving these companies was  postponed for another time because decision making officials from the Ministry of Industry (MoI) were absent. The companies that got approval on Wednesday January 31 are: Muya Ethiopia, Dire Tannery, Hay Garment, Ethiopia Tannery, Entoto Beth Artisans, Akaki Garment, Zede Engineering and Addis Ababa Tannery. Most of them are textile and garment manufacturers, excluding Zede.
Assegid Assefa, country director of ECF, said that since the second phase of ECF, launched last year, 27 companies, chambers of commerce and business associations have gotten support.
The amount  approved for the companies or associations depends on the project size that the companies or associations submitted. Assegid told Capital that the maximum amount the facility approved is USD 200,000.
The PPSC, which is made up of representatives from the financial sector, private sector, other public institutions and the ministry, will disclose the amount that it approved for the companies after they conclude some suggestions.
He said that almost half of the companies benefiting from the  ECF scheme are similar companies who got the option in the first phase.
The facility that aims to improve productivity and competitiveness in the global market has given support since 2006 when the project launched in Ethiopia with the support of the World Bank. Experts said that the scheme is a good opportunity for companies to tap big markets  in the international market because the program can help companies meet global standards. Very few companies making products for export  and the limitation of industrial companies are major factors that Ethiopian companies have been unable to get the support from the scheme.
ECF is a grant program of Ethiopia aimed at improving the competitiveness of the private sector particularly to develop the export or domestic sales capability of Ethiopian firms by increasing their competitiveness, strengthening market support institutions and market information systems.
The second phase of the ECF is a project operated by MoI and financed by the Department for International Development (DFID) and the Private Enterprise Program  Ethiopia (PEPE). 
According to the country director, each firm benefiting from this grant support is expected to contribute to green growth and to increase female employment and empowerment and export oriented businesses.
The ECF has four windows (schemes); export development window, institution development window, chambers of commerce and sectoral association window and the new window introduced to support firms currently not exporting or indirect exporters.
The objective of this first window is to offer grant finance to eligible privately-owned enterprises in order to accelerate the improvement of their competitiveness in international markets.
It is a firm-level support to priority sectors (leather and leather products, textiles and garments, and agro-processing) through a matching grant scheme.
Eligible private sector enterprises will receive reimbursements in the form of cash grants from the fund to cover a substantial proportion of the implementation cost of an integrated export development plan.
The institution development window aims to assist institutions that enhance the export development capacities of private firms that are exporting or preparing to export so as to better to enable them to expand their exports.  These providers could, for example, provide services to prepare firms for ISO 9,000 certification; provide ISO 9,000 audits; undertake market research; rent design equipment; conduct quality testing or  carry out web searches on behalf of exporters in advance of market investigation visits.
DFID has supported GBP four million for the second phase that will end in December 2015.
The first phase that commenced in 2006 and ended in December 2012 has been financed by the World Bank. USD 7.4 million has been dispersed in the first phase. According to the country director, the financiers undertake the monitoring and evaluation to not the effectiveness of the program. The World Bank evaluation for the first phase indicated that the scheme has attained 93 percent.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4019:eight-companies-get-export-boost&catid=35:capital&Itemid=27

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Ethiopia, EU sign financing accord

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Ethiopia and the European Union have signed a 26.9 million euro financing agreement for four projects.

The agreement was signed by Finance and Economic Development State Minister Ahmed Shide and EU Development Cooperation Director Francesca Mosca.

The assistance is provided by the 10th European Development Fund (EDF) which includes projects Trade Enhancement and Facilitation Programme, Civil Society Fund II, Women’s Breakthrough and Technical Cooperation facility.

The agreement is intended to finance projects aimed at supporting gender equality and women empowerment (6.4 million euro), trade enhancement and facilitation activities (10 million euro), civil society organizations (6 million euro) and availing technical support (4.5 million euro).

Mosca said on the occasion that the assistance will give a further boost to Ethiopia’s initiatives for economic growth and poverty reduction.

“EU-Ethiopia cooperation has yielded good results in the recent past and I look forward to achieving similar effects with these projects. I am particularly happy that the set of projects include due support for Civil Society Organization,as well as for facilitating women’s business start-ups and market linkages,” she added.

State Minister Ahmed on his part said: “The crucial support of the EU in the roads, food security, coffee improvement, water supply and governance sector augments Ethiopia’s effort of eradicating poverty and ensuring fast and sustainable development. The government of Ethiopia appreciates EU for its ever increasing support towards Ethiopia’s growth and transformation as expressed not only by the allocation of substantial development assistance but also by the day-to-day close cooperation to ensure its timely utilization.”

When fully operational, the projects are expected to support the integration of Ethiopia into the world economy in order to enhance the contribution of trade to the country’s growth and transformation.

http://www.waltainfo.com/index.php/explore/12221-ethiopia-eu-sign-financing-accord-

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MB Private Limited Company, “Family Milk”

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In the increasingly competitive market of processed dairy products in Addis Ababa, MB PLC, popularly known under its brand “Family Milk,” has succeeded.   Both supply and demand for dairy products are highly variable in Ethiopia, due to seasonal variations, multiple holidays and, fasting seasons, which significantly decrease consumption.  However, Family Milk has learned to strategically project demand and minimize loss and excess production.  Mr. Mechale Aregaw, founder and General Manager and Mr. Hailu Eshetu, Deputy Manager, have attributed their success through company’s legacy as a family owned and controlled company. Over the past 10 years, the family’s initial equity commitment of 2.9 million ETB has multiplied more than four fold. 

Established in 2006, the company has a dairy processing plant in the capital city of Addis Ababa.  Family Milk has managed to successfully diversify its production base through collection of milk from multiple sources, including individual and commercial farmers, cooperatives and unions, located in and around Semen Shewa, Sebeta, Holleta and Nazret. Its customer base includes retailers, wholesalers, government/NGOs, hotels/restaurants, hospitals and supermarkets in Addis Ababa and surrounding areas. Over the years, the company has progressively extended its product line.  Initially the Family Milk brand included only pasteurized milk and cream.  Subsequently, it has expanded to include ‘ayib’ (traditional Ethiopian cottage cheese), yoghurt, butter and cheese (provolone, mozzarella, feta and ricotta). 

Family milk has become a leader within the dairy industry in its efforts to influence public policy.   It is a leading advocate for the government to play an increasing role in promoting dairy products, particularly for school programs and for maintenance of quality raw milk at collection sites and in the informal market. 

Today, the company employs 114 people and has a production capacity of 15,000 liters of milk per day and produces 5,400,000 liters annually.   Family Milk strives to continuously exceed the expectations of its customers by providing reliable and consistent delivery of high quality products through withstanding the market challenges and expanding rapidly as new opportunities emerge. 

USAID, through its project Livestock Market Development (LMD), currently provides technical assistance to Family Milk in the area of securing supply chain and training of the company’s out-growers.

http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=4802:mb-private-limited-company-qfamily-milkq&catid=126:ask-questions-2

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Ethiopian Investors See Fish Farm Potential

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Overfishing, water pollution, and lack of awareness are challenges investors face if they hope to develop the nation’s first aquiculture business. They do see a huge potential of about 40,000 tons per year, however. 

A recent aquaculture trade and investment meeting with representatives from the Netherlands and Ethiopia, at Siyonat Hotel on January 28, lasted five days and was commissioned by Agri Business Support Facility (ABSF), a part of the Addis Ababa Chamber of Commerce & Sectoral Associations with support from the Netherlands’ Embassy. 

“We aim to initiate model fish farms,” said Rachel Tocklu, managing director of Teampro, the consulting company that organized the mission.

“Ethiopians learn more by example than from experimentation. We want to show fish farmers there is a better way to conduct business with higher profits while still preserving the assets of the country,” she said. 

Aquaculture in Ethiopia is still in its initial stages. The current production of capture fisheries is estimated at 16,000 metric tons. The main fish species are Tilapia, Catfish and Perch.

The necessary players in the field; fish feed producers, fish farm equipment suppliers, processers and trainers have to be recruited from scratch, creating a large source of employment. 

After 2011, the Ministry of Agriculture established seed production centers which can supply potential fish companies. It also facilitated access to credit and provided basic marketing infrastructure such as roads and communication. 

The Ministry says that Ethiopia is ripe for the establishment of a fish industry because of the country’s agro-ecologies and climatic conditions. Commercially important fish like Carp are also widely available.  The increasing demand for fish and fish products both locally and abroad and the wide variety of species are other potential positives. 

“Orthodox Ethiopians fast more than 130 days a year and fish are an excellent source of protein,” Tocklu said. 

Ethiopia’s potential for fishery development is in its 20 freshwater lakes, 12 river basins and 15 reservoirs. According to Wagenigen University, a Dutch institute, 15,156 sqm of Ethiopia’s land is suitable for aquaculture. There are 180 different species of fish in Ethiopia and 30 of those are native to the country.

http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=4795:ethiopian-investors-see-fish-farm-potential&catid=74:top-story

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Addis Ababa: City of Transformation

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Not only is Addis Ababa the diplomatic capital of Africa, it is also one of the fastest growing cities in the world. From market availability to a hip and thriving metropolitan, Addis Ababa has much to offer for any investor rather local or international. As this safe and vibrant city is in full speed transformation, Antoine Lindley takes an insightful look at doing business in Addis Ababa. 

Diriba Kuma, Mayor of Addis Ababa; Henok Assefa, Managing Partner of Precise Consult International; Kidanemariam Berhe, Addis Ababa City Investment Agency; Benyam Bisrat, President of Addis Ababa Hotel Association; Angelo Amara, General Manager of Universal plastic Factory and Chernet Assefa, Deputy General Manager, NA Metal Industry & Engineering give their testimonies on the emerging city of Africa.

Watch the video by clicking on the link below: 

http://www.youtube.com/watch?v=O8NjfNFxXmg

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Irish Companies to bring Agri-Tech

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The technologies would be helpful to boost agricultural productivity and production 

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Two Irish Companies, MagGrow and Auranta, are expected to bring their respective agricultural technologies to Ethiopia and export to other African countries. The technologies would be helpful to boost agricultural productivity and production, Foreign Affairs State Minister Dawano Kedir said. 

After having discussion with the representatives of the companies at the Ministry, Dawano said the new agricultural technologies to be introduced by the companies would help smallholder farmers to increase their productivity by employing better chemical utilization. The technologies would add new options in the effort to increase agricultural productivity and attain the goal set for the sector in the Growth and Transformation Plan (GTP), he added. 

MagGrow Operations Director David Moore on his part said using current spraying methods available in the market only 25-35 per cent of the chemical that is sprayed to grow crops is being absorbed by the plant, with 65-75 per cent going straight to ground becoming waste. The new technology, which is supported by magnetic inserts into the spraying apparatus that impart a magnetic charge into the chemical, and the magnetized chemical is directly drawn to the target plant and attaches to the entire plant, he noted. 

David said the Controlled Droplet Application technology would allow growers to apply small droplets of 40–80 micro meters without spray drift problem. “The technology enables the grower to reduce the chemical and water that they are applying by only spraying what is needed by the plant and, therefore, reduce waste by 70-80 per cent,” he added. The technology could reduce chemical and water requirements by 65-75 per cent, increases yield by 20-40 per cent and could be configured to increase drought resistance, David said. 

Auranta Chief Executive John Cullen also said his company is the manufacturer and developer of non-toxic and organic crop strengthener which enables to prevent crop diseases and makes them grow better. “We are launching these products in North America, South East Asia, Europe and we want to launch it in Africa as well. Our research has shown us that Ethiopia is one of the best countries in Africa to start business,” he said. The technology has shown an increase in the level of yield and quality by 30 up to 40 per cent in European extensive farms, he noted.

Both technologies can be used by small-scale and extensive farmers. The technologies are expected to be officially launched till July after trials and testings are undertaken in collaboration with the agricultural research institutes on smallholder farms.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4803&Itemid=88

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Committees assess sectors performance reports

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The Ethiopian Financial Intelligence Centre says it has almost fulfilled the requirements of the 8th action plans in a bid to stand on its feet dismembering itself from the Financial Action Task Force (FATF) public statement in the near future.

Responding to questions raised by members of Finance and Budget Affairs Standing Committee with regards to the six-month performance report of the centre, Financial Intelligence Centre Director General Gemechu Weyma said yesterday that the centre has exerted much efforts in combating money laundering and countering the financing of terrorism in cooperation with the Federal Police and its partners.

Moreover, the centre has become a member of Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and other international organizations to further intensify the fight against illegal money transactions across the globe, he added.

With regard to familiarizing the youth with anti-money laundering proclamation, he noted that the centre has provided extensive awareness creation campaigns across the nation and succeeded in bringing attitudinal changes as well.

As to empowering women, he said that the centre has established special force that looks after and protects the rights of women. A number of women have also been promoted and hired over the last six months.

In a similar move, Science, Communication and Technology Affairs Standing Committee with the House of Peoples’ Representatives criticized the six-month budget utilization of the Ministry and stressed the need for carrying out compensation tasks in the remaining months of the budget year.

After it listened to the six-month performance report of the Ministry, Committee Chairman Getachew Melese urged the Ministry officials that though 93 per cent of physical performance of the Ministry is so successful, there is a serious problem of budget utilization. Of the total budget, the Ministry has utilized only 53 per cent of budget allocated for the reported period.

Concerning telecom services the public raise varies inquiries in relation to accessibility and quality of the service. The Ministry should take temporary measures until long term solution are implemented. But the problem is remaining to various towns. One the other hand, e-government infrastructural development, citizens charter preparation, comprehensive billing service, community radio service provision, standardization and regulatory of ICT, computer refreshing tasks, high manpower turnover, auditing, IT park, rural telephone expansion, planning tasks in coordination with other stakeholders are among other shortcomings, the standing committee urges the ministry to give serious attention.

State Minister of Information Communication Technology Getachew Negash on his part said that his Ministry is relentlessly working to effectively use the budget in the remaining budget year grappling with various complicated challenges of procurement.

On the other hand, the Ministry is working seriously providing radio, frequencies and other facilitate that curb communication barriers in areas where mega projects are carrying out. Besides, increasing telecom service to rural Ethiopia, the Ministry is signing various agreements with Huawei to improve quality of the service. In addition, it is working closely with the Addis Ababa City Administration to receive land for the construction of 500 telecom sites. It is also undertaking network expansion activities to tackle the problem in a couple of months.

State Minister Peter Gatcot also said the Ministry is making utmost effort to identify reasons behind employee turnover. Most of its workers are leaving as a result of seeking better salary. But, it has been pointed out also that there exists problem of personnel administration, he said.

In a related development, the Public Financial Enterprises Agency said the Commercial, Development, Construction and Business banks of Ethiopia and Ethiopian Insurance Corporation have registered 5.62 billion birr profit. Planned to earn 5.71 billion birr, they could secure over 98 per cent profitability during the last six months (July 1, 2005- December 30, 2006 E.C). Compared to last year’s similar period, the profit has increased by over 29 per cent.

Presenting Agency’s six months performance report to Budget and Finance Affairs Standing Committee with the House of Peoples’ Representatives yesterday, Director General Dr. Sintayehu Wolde-Michael said that the four enterprises total asset has reached 255.62 billion birr. Planned to perform 256.54 billion birr, over 99 per cent of the plan is accomplished. Compared to last year’s similar period, it has shown over 25 per cent increment.

Dr. Sintayeu further said that the four enterprises total liability has reached 239.53 billion birr. It has succeeded over 99 per cent of the plan. It has also shown over 25 per cent increment. Their capital including the reserve has reached over 16 billion birr. Compared to last year’s same period, it has increased by over 20 per cent.

He also said that the Agency has been working hard in the institutions focusing on capacity building, settling good governance in the four financial enterprises and public awareness creation activities.

The four financial enterprises have made profit in the last six months meeting over 98 per cent of the targeted plan.

Budget and Finance Affairs Standing Committee Deputy Chairperson Genet Tadesse on her part said that the agency has done commendable duties in connection with the capacity building, public relation, awareness creation duties and profit making activities and among others.

However, the Ethiopian Insurance Corporation and Construction and Business Bank have registered low performance. The agency has to give due attention to these financial enterprises so as to clear out its budget utilization vibrantly and submit its budget performance report to the House.

http://www.waltainfo.com/index.php/explore/12222-committees-assess-sectors-performance-reports

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EIAR introduces new agricultural technologies among over 19,000 farmers

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The Ethiopian Institute of Agricultural Research (EIAR) said it has introduced new agricultural technologies among 19,280 farmers in the first half of this budget year.

Institute Public Relations Director, Derese Teshome told WIC that newly introduced technologies would help beneficiaries (farmers) improve productivity.

He said training was given to the farmers ahead of the distribution of new technologies so that they can adapt the technologies easily.

Some 5,463 model farmers and semi-pastoralists have received the training in the reported period, he said.

As part of the efforts to transfer knowledge and technologies, the institute has been undertaking adaptation works of 11 new technologies drawn from abroad at research centers in various parts of the country, he said.

During the past six months, the institute has also disbursed 17, 130 quintals of select seed for centers engaged in the multiplication of seed, Derese pointed out.

The institute is endeavoring to boost agricultural productivity by conducting researches in 17 centers located across the country, it was learnt.
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Zone undertaking natural resource conservation activities

Natural resource conservation activities are underway in 37 woredas of North Shoa zone, Amhara Regional State, according to zonal administrator.

The administrator, Eshete Assfaw, told WIC that more than 600,000 farmers are taking part at the 60-day conservation activities.

The farmers participating at the conservation activities being held for the fourth consecutive years are expected to contribute labor worth one million birr, he said.

According to Eshete, similar natural conservation activities carried out in the zone during the past years enabled farmers to harvest three times per year.

The ongoing natural conservation works will also improve productivity of farmers as it directly linked with their irrigation development activities, he noted.

Some 62,000 hectares of land was developed through irrigation last budget year and the development of 72,500 hectares of land is also underway this budget year, he said.

http://www.waltainfo.com/index.php/explore/12228-eiar-introduces-new-agricultural-technologies-among-over-19000-farmers

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Ministry signs Postal Service Agreement with Ethiopian Postal Service Enterprise

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The State Minister for Foreign Affairs, Dr. Yinager Dessie and the General Manager of the Ethiopian Postal Service Enterprise (EPSE), Mr. Gideyi Gebre-Yohannis, signed on Thursday (February,6,2013) a postal service agreement covering both the domestic and international postal services.

The service agreement is mainly for couriers and money transfer services. Dr. Yinager expressed Ministry’s commitment to partner with the EPSE to establish and expand effective communication services. He further indicated that EPSE would enable the Ministry of Foreign Affairs access efficient, secure and effective communication services.

Hailing its improved and outstanding service delivery, Dr.Yinager added that the Ministry attached greater importance to its partnership with EPSE in order have swift communications with international organizations, countries, embassies, Ethiopian Diaspora and other stakeholders. The EPSE would contribute a lot to the Ministry in fulfilling its defined mission, he highlighted.

Mr.Gidey on his part remarked that EPSE would continue to strengthen its cooperation with the Ministry to provide improved service delivery. He underlined that EPSE was expanding its engagement with other ministries to play its role in accelerating the political, economic and social development of the country.

http://www.mfa.gov.et/news/more.php?newsid=2998

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World Bank eyes $1 bln African resource mapping fund

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The World Bank will launch $1 bln fund to map Africa’s natural resources.

World Bulletin / News Desk

The World Bank wants to launch a $1 billion fund in July to map the mineral resources of Africa, using satellites and airborne surveys to fill geological gaps across the continent where a lack of adequate data hampers mining investments.

The World Bank has committed $200 million to the five-year fund, and was meeting with mining companies and governments from sub-Saharan Africa who have expressed interest, a senior bank official told Reuters on Wednesday.

“Times are tough, so the mining companies are counting their pennies, but there is a lot of interest because it is exactly when commodity prices are low and the companies are reducing their investment budgets that having the information to guide their priorities is valuable,” said Paulo de Sa, senior manager at the World Bank’s mining unit.

De Sa met with 10 mining companies on the sidelines of an African mining conference, including Rio Tinto and Ivanhoe Mines, who were interested in the fund.

Initially targeting southern and eastern Africa, De Sa said the fund would aim to collate existing data onto a single, digital platform that would be accessible to the public.

Besides helping to guide exploration investment, African governments could benefit by being able to negotiate better deals when handing concessions to mining companies, he said.

“If they know what they have in their territory, they are in a better position to fine-tune and calibrate the fiscal regime and mining laws,” De Sa said.

When Mozambique, for example, privatised its giant Moatize coal mine, it did not know the true potential of the coal basin until Brazilian miner Vale started exploration work.

De Sa said the bank, which has received expressions of interest from Malawi and Mozambique to assist with geological mapping, hoped to identify copper prospectivity in Zambia, Africa’s top producer of the metal.

“There is a lot more copper in Zambia than what is known, so we hope to identify the areas with more prospectivity and then the government will be able to attract more investment to areas because they know there will be a lot more certainty, a lot less risk,” he said.

The data could also be used by governments when planning infrastructure development or water resource allocations.

De Sa said the mapping fund hoped to unearth up to $1 trillion worth of new mineral resources on the continent.

http://www.worldbulletin.net/economy/128289/israeli-siege-fuel-scarcity-leaves-gaza-fishermen-in-lurch

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Egypt has no plans to take Ethiopia dam file to AU

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The project has raised fears in Cairo that the project could affect Egypt’s historical share of Nile water, which represents the country’s primary water source.

World Bulletin / News Desk

Egyptian ambassador to Ethiopia Mohamed Idris has denied reports of Egyptian plans to lodge a formal complaint with the African Union (AU) over Ethiopia’s massive hydroelectric dam project on the Nile River.

“No official decision has been taken in this regard,” Idris told a Wednesday press conference in Addis Ababa.

Within the last year, relations between Egypt and Ethiopia have become strained over the latter’s construction of a multibillion-dollar hydroelectric dam on the Nile’s upper reaches.

The project has raised fears in Cairo that the project could affect Egypt’s historical share of Nile water, which represents the country’s primary water source.

Speaking in the Ethiopian capital, Idris called for stepped-up cooperation between Egypt, Ethiopia and Sudan on the dam.

“We’ve already agreed on some aspects, while we’re yet to agree on others,” he said.

On Monday, a 45-strong Egyptian diplomatic delegation arrived in Addis Ababa for a five-day visit to Ethiopia.

The following day, delegation members met with AU Peace and Security Commissioner Smail Chergui and AU Infrastructure and Energy Commissioner Elham Ibrahim.

The delegation is scheduled to visit Ethiopia’s northwestern city of Bahir Dar– home of Lake Tana, the source of the Blue Nile– on Thursday.

http://www.worldbulletin.net/news/128326/egypt-has-no-plans-to-take-ethiopia-dam-file-to-au

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Dr. Tedros thanked WIPO for its support to EIPO

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Foreign Minister, Dr. Tedros Adhanom, met with the Director General of the World Intellectual Property Organization (WIPO), Dr. Francis Gurry, on Thursday (February 6).

Dr. Gurry noted WIPO’s readiness to work in close cooperation with Ethiopia in the areas of intellectual property, and said that despite the challenges of multilateralism, WIPO had been able to welcome the signing of the Beijing Treaty on Audiovisual Performance and the Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Visually Impaired due to assistance from counties like Ethiopia.

Dr. Tedros thanked WIPO for its support to the Ethiopian Intellectual Property Office (EIPO) and underlined the need to further strengthen the partnership between the two institutions.

He also discussed Ethiopia’s bid to join the World Trade Organization and the importance of close partnerships to expedite the accession process.

WIPO is supporting EIPO in the Industrial Property Automation System project in the Patents Registry, and currently, the Automation is being extended to the Trademarks Registry System.

WIPO has also supported the establishment of the Technology Innovation Support Center which is helping Ethiopians to access technological information among other initiatives.

The discussions also covered protection offered to genetic products and traditional knowledge.

Dr. Gurry explained the negotiation process of a treaty on protection in these areas. It also offers a database to help developing countries track abusers.

He also noted that countries could learn from others with genetic products on ways to control abuse by implementing export controls and improving design capacities to save products from illegal exploitation.

http://www.ertagov.com/news/index.php/component/k2/item/2270-dr-tedros-thanked-wipo-for-its-support-to-eipo

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Premier: Ethiopia exerting efforts to get patent right for teff

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-  Ethiopia is exerting efforts to get patent right for teff, a local agricultural product and a staple food grain in the country, Prime Minister Hailemariam Desalegn said.

While discussing with World Intellectual Property Organization (WIPO) Director-General Dr. Francis Gurry on Thursday, the Premier said efforts are being exerted to get the right.

The two parties discussed ways of getting patent right for teff, as Ethiopia is the source and producer of the product.

After the discussion, Dr. Gurry told journalists that WIPO will provide training for professionals in a bid to help the country improve the quality of teff.

He said WIPO will also provide capacity building assistance to organizations to minimize wastage.

http://www.ertagov.com/news/index.php/component/k2/item/2271-premier-ethiopia-exerting-efforts-to-get-patent-right-for-teff

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World-first court trial begins as two WA farmers clash over canola

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Two farmers are locked in a court battle over alleged genetically modified canola contamination. Source: News Limited

THE Supreme Court civil trial between two farmers over alleged genetically modified canola contamination starts today.

Kojonup organic farmer Steve Marsh lost certification on 70 per cent of his property in 2010 when genetically modified canola seed and swathes were found on his property.

Mr Marsh is now suing his neighbour Michael Baxter for negligence, alleging it was from Mr Baxter’s farm that the GM canola blew from.

Law firm Slater and Gordon, who is representing Mr Marsh, said as far as it was aware, the case was a world-first to test the legal rights of farmers to choose how and what they farm on their land.

Mr Marsh is seeking damages and a permanent injunction to protect his farm from future contamination.

Mr Marsh will be one of up to 20 witnesses, including international experts.

http://www.news.com.au/national/western-australia/worldfirst-court-trial-begins-as-two-wa-farmers-clash-over-canola/story-fnii5thn-1226822425781

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Arabica Hits 9-Month High On Brazil Weather Worries

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Coffee futures prices saw big gains and sugar also moved higher as markets fretted over potential crop damage amid soaring temperatures and drought in some of Brazil’s top growing areas. Meanwhile, South Africa’s platinum mine strike continues to have only limited impact on prices.

Arabica coffee prices surged to their highest since last May on the back of concerns about potential crop damage and lower output as parts of Brazil experience soaring temperatures and drought. January was the hottest month on record and rainfall was the lowest in more than 20 years, according to the country’s meteorologists. Brazil is the world’s biggest coffee producer and arabica exporter, with arabica coffee accounting for around 75 percent of its coffee production.

Arabica for March delivery touched 144.03 cents a pound in the ICE Futures U.S. exchange in New York on Feb. 6, a level not seen for a most-active contract in nine months and more than 15 percent up on last week’s close at 125.20 cents a pound.

Robusta coffee futures prices also moved higher, touching five-month peaks of $1,879 a tonne on NYSE Liffe this week on the back of the strong arabica rally as well as a lack of selling by top exporter, Vietnam, as the country enjoyed the Tet holiday (Feb. 1-5).

A number of analysts had lowered their crop expectations early this year for Brazil’s 2013/14  crop after heavy rains hit the country’s coffee-growing belt in December. Even so, before the hot, dry weather, many analysts still had expected Brazil to see another record coffee harvest in the current 2013/14 season (Oct. 1-Sept. 30) after record production in 2012/13.

However, some analysts now believe forecasts for the country’s 2013/14 crop may be looking a little high.

Brazil’s Ministry of Agriculture, Livestock and Food Supplies pegged Brazil’s green coffee production at 49.15 million 60-kg bags, according to an International Coffee Organization (ICO) statement on Jan. 17. This estimate was comprised of 38.29 million bags of arabica and 10.87 million of robusta.  According to the ICO release, the Brazilian ministry put the final official Brazilian production figure for 2012/13 at 50.83 million bags, comprising 38.34 million bags of arabica and 12.28 million of robusta.

Bumper harvests in Brazil and elsewhere over the past several months have added to burgeoning global inventories of the beans,  miring the market in bearish sentiment for much of the past 12 months or more. Since the start of 2014, however, arabica has gained  30 percent in value.

The adverse growing conditions in Brazil also provided some support to sugar prices. Brazil is the world’s top producer and exporter of the sweetener.  Also helping prices is another deferral of a decision by India, the world’s second largest sugar exporter, on sugar export subsidies.

Raw sugar for March delivery on ICE Futures U.S. touched an intraday high of 16.38 cents on Feb. 4, the strongest for a most-active contract since Jan. 2. At midweek, ICE March raw sugar settled at 16.06 cents a pound.

Last week, raw sugar had dipped to a fresh three-and-a-half year low of 14.77 cents on Jan. 28 before finishing the week at 15.55 cents a pound.

Refined, or white, sugar futures, were also higher this week, with the March contract on NYSE LIffe settling at $439.55 a tonne on Feb. 5.  The March Liffe contract last week had dropped below $400 a tonne for the first time for a front-month contract since 2009.

Among other softs, cotton for March delivery settled at 85.52 cents a pound on ICE Futures U.S. at midweek, up 12 cents on the day but marginally off last week’s close at 85.83 cents a pound.

Cotton prices are being supported by tight supplies in the U.S, the world’s biggest export of the fiber. The market also is looking ahead to the next World Supply and Demand Estimates (Wasde) report from the U.S. Department of Agriculture (USDA) which is scheduled for release on Feb. 10. The latest USDA data is expected to show a drop in U.S. stocks of cotton.

Cocoa traded at slightly lower levels after touching 28-month highs in New York and London last week, with March cocoa settling at $2,882 a tonne on ICE Futures U.S. at midweek, while London Liffe March contract finished at £1,846 a tonne.  The ICE March contract had reached an intraday high of $2,933 a tonne on Jan. 28 and Liffe March cocoa had hit £1,853.

Analysts said cocoa remains supported by ongoing supply/demand concerns with the market currently watching the dry weather conditions in top grower Côte d’Ivoire ahead of the start of the mid crop harvest which typically begins in that country in May and runs through to August.  Prolonged dry weather could lead to harvesting delays.

http://afkinsider.com/41459/afki-commodities-report-arabica-hits-nine-month-high-brazil-weather-worries/

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Ministry to execute over 2 bln USD WASH Program

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The Federal Ministry of Water, Irrigation and Energy announced that it would execute water supply and sanitation software and hardware activities at a cost of 2.411 billion USD in the One WASH National Programme (OWNP) throughout the country.
Opening the 6th Water Supply, Sanitation and Hygiene (WASH) Multi-Stakeholders Forum held with the theme: “Innovative One WASH for Sustainable Development”, Minister of Water, Irrigation and Energy Alemayhu Tegenu said here yesterday that the programme would be the main instrument for the universal goals that are to achieve 98.5 per cent, 100 per cent, 77per cent and 80 per cent in water supply, basic sanitation, hand washing and open defecation free status respectively.
He noted that an additional 20,000 artisans, experts, technical groups, consultants, contractors and specialists as well as 5,000 junior health professionals are required to undertake water supply and hand sanitation activities in the One WASH Program.
As regards obtaining the huge financial and human resource requirement of the program, he called for development partners, stakeholders and the public at large to play their respective roles towards achieving the program.
UNICEF Ethiopia Representative Dr. Peter Salama, as one of the partners in WASH sector said: “We have now formalized the first ever pool fund for water and sanitation sector in Ethiopia.” The implementation of the ONE WASH National Program would provide a vehicle to reach both the Sanitation and Water for all (SWA) and MDGs Commitments.
At the two-day Multi Stakeholders Forum, State Ministers of Education, Health, Finance and Economic Development Ministries as well as representatives of potential stakeholders of WASH and others delivered keynote speeches.
In connection with the Forum, an exhibition that displays various types of materials and chemicals for the use of purifying water was officially opened to the public.

http://www.waltainfo.com/index.php/explore/12231-ministry-to-execute-over-2-bln-usd-wash-program

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Investing in a country that doesn’t exist: Somaliland’s hard sell

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Photo: Somaliland troops march past during a parade to mark the 22nd anniversary of Somaliland’s self-declared independence from the larger Somalia, in Hargeisa May 18, 2013. REUTERS/Feisal Omar.

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Somaliland, the self-declared republic, is desperate for someone to find vast mineral reserves under its soil. But without international recognition – and the probability of legal battles in the future – it’s a big risk for any country to take. Somaliland too should be careful. Having dodged the aid curse, will they fall victim to the resource curse instead? By SIMON ALLISON.

At the recently concluded Mining Indaba in Cape Town, Somaliland’s energy minister Hussein Abdi Dualeh had possibly the hardest sell of all. It was his job to convince the assembled mining bigwigs that his country was a viable, risk-free environment in which to invest millions and millions of dollars – all on the hope that there might be base and precious metals hidden somewhere under its drab scrubland.

He tried hard. “We have also a unique geographical location,” the minister said in his speech at the conference. “If you have a mineral deposit and if you exploit it, it will be very cheap to take to market…it’s definitely much less costly than a really getting fantastic deposit the middle of continent, which will cost you really huge amount of money to export it…even the small deposit is commercially viable considering the logistics involved in taking the minerals to market.”

It was a good effort, but will it be enough? There are, after all, a few other factors which mitigate against Somaliland becoming Africa’s next mining hotspot.

The biggest problem is that Dualeh’s country is not actually a country. Officially, legally, Somaliland is a territory of the Republic of Somalia. A rogue territory at that, one which refuses to answer to the writ of the central government in Mogadishu. It considers itself independent, and operates accordingly, with all the trappings of sovereignty: the flag, the currency, the national anthem. Dualeh himself is part of Somaliland’s government, which is chosen in free and fair elections every five years (some say Somaliland is the most functional democracy in the Horn of Africa, and there’s substance to this description).

This de facto autonomy is no bad thing: while Somalia proper has been mired in civil war and violence for the last two decades, Somaliland has been stable, secure and relatively prosperous; its self-declared independence a conscious attempt to isolate itself from Somalia’s chaos, and, by and large, it has worked.

But as Somaliland seeks to develop this independence – not formally recognised by anyone else in the world – it is also held back. As miners contemplate entering Somaliland, they have to first ask and answer some tough questions about whether the government in Hargeisa has the authority to grant exploration licenses in the first place; and, once granted, if those will be honoured if and when Mogadishu is in a better position to assert rights of its own.

Already, these problems have crippled Somaliland’s oil sector. For years, oil exploration was dormant as companies fought over ‘legacy contracts’ (those granted in the late 1980s by dictator Siad Barre’s Mogadishu-based regime) and new contracts issued by the Somaliland government. Exploration has now started, but getting to this point was a long and complicated process.

Minister Dualeh claims there are no legacy contracts that could influence the mining sector – but that doesn’t mean there won’t be problems in the future between the two competing centres of power.

Somaliland’s lack of formal independence has also cut it off from another lucrative source of income: aid money. Almost all international aid to Somalia is all channeled through Mogadishu. With the exception of a few minor United Nations programmes, Hargeisa gets nothing.

Not that Hargeisa minds. Dualeh argues that the lack of aid has actually worked in Somaliland’s favour. “That is a blessing in disguise. Aid never developed anything,” he told Reuters’ Ed Stoddard on the sidelines of the conference. “Aid is not a panacea, we’d rather not have it… How many African countries do you know that developed because of a lot of aid? It’s a curse. The ones that get the most aid are the ones with the problems.”

Intrigued by this counter-intuitive position, the Daily Maverick contacted Minister Dualeh and asked him to elaborate. “There wasn’t really any aid opened to us because we weren’t recognised,” Dualeh explained in a telephone interview. “We’re not like Kenya that get 40% [of its budget from] aid money; tangible aid hasn’t been coming our way because of our political status. Aid comes with strings attached but we don’t have any of that. We don’t owe anything to anyone.”

In practice, Dualeh believes that this leaves Somaliland free to make its own decision, unbeholden to any external backer that might not have the territory’s best interests at heart. “We have our own organic solutions to our problems; we have no outside influence; I think a lot of the good things that have happened to us are because we have found our own solutions.”

As an example, Dualeh cites the original decision to break away from the then-Federation of Somalia in 1991. This, he argues, was Somaliland taking its destiny into its own hands. In Somalia proper, on the other hand, decades of foreign meddling has just made the situation worse. “The difference between us and Somalia is that we sat down under the proverbial big tree and we basically stated our independence and tried to find our own solutions through uniting; we found a solution that has resulted in power right now, with no war or conflict.”

Somaliland may have avoided the aid curse, but as Dualeh seeks to drum up investment in the mining sector he would do well to recall the lessons of other African countries, where the curse of vast mineral wealth has proved just as devastating. Dualeh dismisses these concerns. “The resource curse is just a cliché. We’re not taking it lightly, we are trying to avoid it by making sure that we have good governance and good legal regimes to make sure that everything gets sorted ahead.”

In the Horn of Africa – a part of the world not famed for good governance or tight legal regimes – this might just be the one thing that Somaliland has going for it.  DM

http://www.dailymaverick.co.za/article/2014-02-10-investing-in-a-country-that-doesnt-exist-somalilands-hard-sell/

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Read more:

• Somaliland blessed by dodging aid ‘curse’ on Reuters

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Africa needs to link mining with development plans

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Susan Shabangu, South African Minister of Mineral Resources and Jonathan Moore, Mining Indaba MD 

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On the margins of Africa’s largest annual mining conference, Mining Indaba, multilateral development organizations have called on the private sector to join forces with them in ensuring the revenues from mining are reinvested in people.

Issued on the newly created Africa Mining Vision Day, the call comes amidst a downward trend in commodity prices and in particular minerals, which has raised uncertainty on the momentum of the continent’s sustainability agenda.

For instance, during the first four months of 2013, mining stocks fell nearly 20%.

Industry leaders, ministers, policy-makers, members of academia and international organizations will be urging the private sector to play a stronger role in fast-tracking the implementation of the African Union (AU)’s Africa Mining Vision, which aims to ensure the extractives sector can boost social and economic development across the continent.

“AMV Day 2014 would be the first of a long term process of dialogues and partnership building with a view to increasing mutual understanding on how to promote sustainable development in the extractive sector in Africa and the need for mutual benefits between host country and mining companies,” said the hosts and partners.

AMV Day is hosted by the African Union Commission (AUC) and the African Minerals Development Centre (AMDC), housed by the United Nations Economic Commission for Africa (ECA), in close collaboration with the African Development Bank (AfDB), and the United Nations Development Programme (UNDP). It is supported by Australian Aid and the World Bank.

Nearly one quarter of Africa’s Gross Domestic Product (GDP) is now based on extractive resources, the highest ratio among all regions. Between 2000 and 2008 alone, the value created from natural resources in Africa rose from $39.2 billion to $240 billion.

The extractives sector is expected to play a catalytic role for development in many African countries. To that end, the resources from mining need to be reinvested in infrastructure and further growth, while opening opportunities for economic diversification and transformation.

Management of mining revenues will entail the creation of more effective public-private partnerships and closer involvement from other stakeholders, including local communities and governments.

Achieving broad-based, sustainable development means establishing the right environmental safeguards, but also fulfilling a number of economic and social priorities.

For instance, participants will underline that the need to guarantee environmental sustainability, distribute the benefits from extraction effectively, create social safety nets, invest in skills and infrastructure and intensify agriculture to create jobs and bolster food security.

In December, ECA, AUC, AfDB and UNDP launched the African Minerals Development Centre (AMDC) to help implement the Africa Mining Vision.

The new hub will help implement the African Mining Vision, which aims to ensure Africa’s mineral resources can support economic growth and development. It will translate that vision into practical solutions for reducing poverty and involving people in development.

Experts and researchers will be made available to help countries implement the vision, advising governments, businesses and civil society organizations on issues such as licensing, geological and mining information systems, artisanal and small-scale mining and investments in diversification.

The one-day event will look at a diversity of topics, including private sector involvement, building local skills and establishing sustainable business agendas.

http://www.biznisafrica.co.za/africa-needs-to-link-mining-with-development-plans/

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$75 Billion Investment in Ethiopia Infrastructure

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By Cynthia Lasher

 

Approach into Addis Abeba in the late afternoon

A $75 billion 5 year growth plan to invest in Ethiopia infrastructure means constant building in the city of Addis Ababa.  The challenge is to redevelop existing neighborhoods, many which are slums in a metro area that is expected to grow to 5 million in the next 10 years. Plans are underway to convert half of the slums to permanent housing within the next decade.

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Ethiopian irrigation minister invites Egypt for more ‘Renaissance Dam’ talks

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Egypt’s irrigation minister Mohamed Abdel-Motteleb will go to Addis Ababa on Monday, but has already said that Egypt is not ready to compromise on its previous stance to the Ethiopian dam project

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Ethiopia’s Great Renaissance Dam is constructed in Guba Woreda, some 40 km (25 miles) from Ethiopia’s border with Sudan, June 28, 2013. (Photo: Reuters)

Ethiopia’s irrigation minister has invited his Egyptian counterpart to the capital of Addis Ababa for further talks on Monday, in hopes of ending a political impasse between the two Nile countries over a proposed hydroelectric dam.

Al-Ahram’s Arabic news website reported on Sunday that Egyptian irrigation minister Mohamed Abdel-Motteleb had accepted the invitation from Ethiopia’s Alemayehu Tegenu and will travel with members from his ministry’s Nile water sector as well as the country’s foreign ministry.

Ahead of the talks, however, Abdel-Motteleb announced that Egypt’s position on Ethiopia’s Grand Renaissance Dam “is fixed,” a harbinger that Monday’s negotiations may not offer the kind of compromise that Ethiopia may be hoping for.

According to Al-Ahram, Motteleb said that Ethiopia could still achieve economic prosperity without impeding upon Egypt’s access to the Nile.

When completed, the $4.2 billion dam will be the largest in Africa and number 10 in the world in terms of electricity production.

The two countries have been locked in a political feud since news of the dam was first aired on Egyptian TV in 2013, with Cairo arguing that the project will diminish its supply of the river’s water.

Last June Ethiopia’s parliament ratified an international treaty granting upstream countries the right to implement irrigation and hydropower projects without seeking Egypt’s approval.

For decades, Egypt held veto rights over all upstream projects thanks to a 1929 colonial-era agreement in which the UK gave Egypt and Sudan the majority of the Nile’s water rights.

Several rounds of negotiations over the dam have already taken place between Egyptian, Ethiopian and Sudanese water ministers in the Sudanese capital of Khartoum to study the dam’s possible effects and try to generate consensus.

However, the tripartite committee’s success was thwarted last December when Sudanese President Omar Al-Bashir announced his support for the dam during a meeting with Ethiopian Prime Minister Hailemariam Desalegn.

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http://english.ahram.org.eg/NewsContent/1/64/93810/Egypt/Politics-/Ethiopian-irrigation-minister-invites-Egypt-for-mo.aspx

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Ethiopia has much to offer: Diplomat

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Ethiopian officials welcome visitors at the Jeddah International Travel & Tourism Exhibition at the Hilton hotel. — SG photo

Saleh Fareed Saudi Gazette

JEDDAH — Ethiopia and Saudi Arabia have had long standing relations for many centuries in terms of business, tourism, religion and people-to-people contact, according to an Ethiopian Consulate official.
Speaking to Saudi Gazette at the 2014 Jeddah International Travel & Tourism Exhibition (JTTX), which took place from Feb. 4 to 6 at Jeddah Hilton, Deputy Consul General (Business Section) Sherif Keri Osman emphasized the strong historical relationship the two countries have shared since the time of the Prophet Muhammad (peace be upon him).
Describing the depth of his country’s historical and distinguished relations with Saudi Arabia, he said: “I believe we share so many things with Saudi Arabia and we still enjoy a close relationship despite problems that have occurred lately.
“However, both parties are working hard to improve ties.”
He noted that Ethiopians would not face any problems in the Kingdom as long as they respect and comply with Saudi laws.
He said the Ethiopian Consulate in Jeddah participated in a fair to promote the country as a potential tourist destination for Saudis.
“We wanted to sustain the strong influx of Saudi travelers to Ethiopia during our participation at the 2014 Jeddah International Travel & Tourism Exhibition. We are showcasing our nation’s tourism products globally, which has helped enable Ethiopia to promote its natural, cultural and historical attractions to the rest of the world,” he said.
Ethiopia has the potential to gain maximum benefit from the sector but has to do more to promote its tourist destinations, he added.
During the fair brochures and organic Ethiopian coffee were served to visitors at the Ethiopian stand and a discussion was also held with potential tourists and various local travel agencies.
Osman noted investment was also a growing area of cooperation between the two countries.
He said a growing number of Saudi businessmen have invested $369 million in different sectors in Ethiopia.

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20140210195245

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     Egypt, Russia Seal $2B Arms Deal 

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Saudi Arabia and UAE foot the bill for sale of advanced defense systems, helicopters, aircraft and anti-tank missiles.

By Gil Ronen and Ari Soffer

Egypt has concluded an arms deal with Russia worth $2 billion, a senior official source told Egyptian daily newspaper Al-Masry Al-Youm, noting that the Egyptian and Russian sides reached agreement on all details of the agreement over the past few weeks.

The source, who asked not to be named, said the two Gulf kingdoms of Saudi Arabia and the UAE played a “vital role” in sealing the deal.

The official revealed that the first tranche of Russian weapons to Egypt will be delivered before mid-2014. The delivery and payments will both be phased, he explained.

In November, Russia declared that it had received an Egyptian offer to buy advanced defense systems, military helicopters, MiG-29 aircraft and anti-tank missiles with a combined value of $2 billion. The overall cost of the purchase was in fact double, but cash-strapped Egypt would only pay half of that, according to the source. The apparent show of Russian largess was no act of altruistic generosity, however; the Kremlin has been aggressively capitalizing on perceived American weakness in the Middle East to – particularly over crises in Iran and Syria – to expand its own sphere of influence in the Arab world, which until recently was limited to Syria.

According to reports in a Kuwaiti newspaper late last year, one of the objectives of the arms deal was to enable a newly pro-Russian Egypt to achieve military parity with the United State’s closest ally in the region: Israel.

Saudi Arabia and the UAE, along with Kuwait, have been Egypt’s top Arab financiers following the overthrow of Islamist president Mohammed Morsi, with financial and in-kind aid totalling about $12 billion. Since the overthrow of Morsi’s predecessor Hosni Mubarak in 2011, the north Africa state has seen its economy go into a virtual free-fall, and now relies heavily on foreign support.

Saudi Arabia’s intelligence chief, Prince Bandar Bin Sultan al-Saud, reportedly told European diplomats in October that his country plans to scale back its cooperation with the US in efforts to arm and train Syrian rebels, according to the Wall Street Journal.

The decision was said to be the result of Riyadh’s “frustration” with the Obama administration’s foreign policy in the Middle East, and reflects a growing sense of discontent by one of America’s staunchest Arab allies.

That statement came days after the Gulf Kingdom surprised observers by turning down a temporary position on the United Nations Security Council, in what it said was a protest at the Security Council’s ineffectiveness in solving regional conflicts.

Saudi Arabia is also said to be concerned about American overtures to its arch-foe, Iran, and alarmed at what they see as an incoherent and weak American Middle East strategy.

“The Saudis are very upset. They don’t know where the Americans want to go,” WST quoted a “senior European diplomat” as saying.

http://www.israelnationalnews.com/News/News.aspx/177248

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Meles Memorial Library, ICT Centre inaugurated

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Addis Ababa - Meles Zenawi Hub Library and ICT Centre was launched and handed over the Ethiopian Civil Service University (ECSU) as one of ‘Thank You Small Library’ Programme at the university main campus here on yesterday.
The programme was sponsored by UN WTO Sustainable Tourism for Eliminating Poverty (ST-EP) Foundation and the Korean Ministry of Culture and Tourism.
Civil Service Sate Minister Adamu Ayana said that the donation of books, multimedia and other educational equipment significantly contribute to build the capacity of institutions and human resource in various sectors.
ESCU President Dr. Haile-Michael Abera noted that the donation is part of the assistance of ROK government to Ethiopia to build the capacity of civil servants and support the educational training and research activity in memory of the late Prime Minister Meles Zenawi.
Ambassador Dho Young-Shim, Chairperson of the UNWTO- Sustainable Tourism for Eliminating Poverty Foundation and UN MDGs Advocate also said: “I was born when Korea was very poor. Now, it has advanced economy in the world not because of natural resources but because of books .Thus, Ethiopia has also to focus on books.”
South Korean Ambassador to Ethiopia Kim Jong Geun said that since the establishment of the first pilot project in Accra, Ghana in 2007, the Thank You Small Library initiative focuses on establishing small libraries in underprivileged communities where students do not have access to reading facilities.
“ESCU students —brimming with talent, energy and hope— would make a great contribution to Ethiopia’s development by drawing upon the wisdom they acquire from books delivered today,” the ambassador said.
ESCU President and Ambassador Dho Young-Shim on the occasion signed an agreement to set up and manage the UN MDGs. The Ambassador has also handed over 6,000 books to the ESCU President.
According o the Ethiopian Herald, the library and the centre valued at about five million birr.

Delay in transformer provision strangling water projects

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Yergalem transformer burnt after three days of service

Photo: Ministry of Water,Irrigation and Energy

Oromia State–The supply of clean water and sanitation services to the public is among the overriding concern of the government. The preoccupation is well founded. Despite the nationwide increased clean water coverage –67 per cent – the public’s cry for sustainable clean water and sanitation services, more than ever, is getting loud.

As part of its regular schedule, the Natural Resources and Environmental Protection Affairs Standing Committee of the House of Peoples’ Representatives (HPR) last month inspected eight water expansion projects in Oromia and Southern Nations, Nationalities and Peoples’ (SNNP) states. Beginning at Bule-Hora committee members concluded their visits at Sebeta town Oromia State.

The visit was aimed at assessing the progress of various government-run projects. It as well eyed at identifying challenges and replicate best practices.

In general, the Committee was very happy with the projects’ performance. It gave directions and set time frame for the remaining works. It also reprimanded some for lack of commitment and accountability.

“The remaining tasks have to be completed according to schedule. The public’s cry for water has to be heard. We all have responsibility and accountability to the public.”

The Committee also urged all stakeholders to enthusiastically see to the completion of the remaining works. “They have to ensure the completion of the much awaited water projects giving due attention to the significance of public mobilization and participation to create a sense of community ownership.”

Despite the many millions of hard earned dollars invested by the government as well as development partners alike and the completion of the projects’ construction works, except Yergalem (partially) and Alaba, not a single drop of water has reached taps to the despair of the communities. The major problem impeding the projects from going operational is delay in the provision of transformers. Failure of those at hand to effectively serve makes the problem even worse. The problem is also attributed to tardiness in the supply of pipes and fitting ( electro-mechanical), lack of cooperation and coordination as well as negligence in monitoring and accountability.

Berket Melkamu is Bule-Hora Water Expansion Project Resident Consultant. According to him, the three new boreholes are capable of pumping 68 liters per second and also have enough clean water to serve the town with a population of over 91,000. “Initially, the plan was to finalize the construction in one year but was delayed by eight months. Delay in the acquisition of transformers, pipe supply and fitting as well as resolving boundary demarcation are some of the factors affecting the execution of the project.”

Getahun Tagessee, G.T.B Engineering Manager also said the 91 million birr project is 98 per cent complete and designed to serve for 20 years. “Though we settled the payment for the purchase of a transformer six months back, we have not received nor heard appropriate response from EPPCo. But, we have already begun the installation of power lines.”

The same story is true with Yergalem, Meki, Modjo, Bishoftu, Burayu and Sebeta projects. Almost all civil construction works are through. In some cases, the electro-mechanical as well as pipe fittings are completed while some are in the process but no transformers are in sight. More shockingly, of the two delivered for Yergalem, one was burnt-out only after three days of service.

Ethiopian Power Authority (EPA) SNNPS Branch Marketing Head Tadele Merga said the transformer delay was caused due to increased demand. Currently, Metal and Engineering Corporation, is manufacturing transformers. “Hopefully, the problem will be addressed soon. But, I have no information about the burnt-out transformer.”

EPA External Relations Head Miskir Negash also said supplying power to water projects is Agency’s priority. The delay is attributed to the growing demand for transformers. “ It is a matter of time. METC is manufacturing and supplying world standard transformers.”

But he could not fix an exact time. “We will try to prioritize but we cannot give a definite time frame. People have to wait patiently.”

The other complaint voiced by contractors, engineers and water bureaus is lack of cooperation and coordination between sectoral bureaus.

The main water pump was laid at Modjo in the area now demarcated for the new Addis-Djibouti railway crossing point. Now the pumps are dug. They are lying on the ground, waiting for a decision to lay them over or under the railway lines.

Town Water Utility Enterprise Head Yehualshet Demi said the total cost of the water expansion project is over 95 million birr. Almost all the civil and electro-mechanical works are completed. But discussion on right-of-way is still going on between the Water Bureau and the Ethiopian Railway Authority.

“Formal and informal communications have taken over a year. Now, we have reached at a verbal agreement to seal and lay the pumps under the lines. But we are not sure when the decision will be translated into action,” he added. Though we had paid for five transformers years back still none is supplied.

“ The right time for a solution is now. We urge the Committee to help us solve the right-of -way deadlock. We have tried our level best but things have proved beyond the Bureau’s capacity.”

Deputy Mayor Gido Lemma said currently, the town’s water shortage is very severe. “If one goes there right now, one will see many carrying yellow jerry cans in search of water. Some have even reverted back to drinking the contaminated river water.”

“The public demand for clean water is legitimate and the delay is associated with lack of good governance. The public is loosing confidence in us.”

The other serious obstacle is lack of commitment and accountability which is conspiring against the public legitimate right to clean water.

Like other projects, Sebeta also suffers from delay owing to problems related to transformer and pipe fitting works and delivery. The project was expected to be completed in one month but it might take another three months or more, said Ziad Geletu the Resident Consultant.

United Contractors is one of the five contractors responsible for lot 4 pipe fitting works which is lagging behind but also key to the overall project completion. “ So far, only 58 per cent has been accomplished on the site and 14 per cent of pipe fitting is not yet delivered.”

Asked whether the contractor could deliver and complete the fitting within 20 days set by the Ministry and the Committee, he said: “ We have ordered so, but we are not sure when it will be delivered. It might take up to three months.”

The response from the committee and the State Minister was strong. The government is determined to provide clean water for citizens. But negligence and incompetence are becoming hindrances.

“ It was the consultants’ job to monitor contractors to complete projects on time. They should be on the client and the public side not on that of the contractors.”

Water, Irrigation and Energy State Minister Kebede Gerba also reprimanded the contractor and the consultants. “ The Ministry can and should take action. Unless you rise up to your objectives your licences will be revoked.”

http://www.ethpress.gov.et/herald/index.php/herald/news/5908-delay-in-transformer-provision-strangling-water-projects

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Services Shortages Stunt Housing Developments

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The deadline for a number of condominiums has been pushed back due to shortages in electricity and water  

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Water and electricity shortages are hampering the proper and timely construction of condominium houses at the Bole Arabsa site – the biggest of the numerous housing projects in Addis Abeba.

The 20,023 houses are located close to Bole International Airport. They are part of the 50,000 planned to be constructed by the Addis Abeba City Administration during the 2013/14 fiscal year.

Water scarcity has been forcing the project managers to fetch water from as far away as 10 km.

“Big vehicles have been transporting water to the project site,” HaileliulGetye, Kirkos project manager under the Addis Abeba Housing Agency,informed a crew of journalists, who moved to the site with officials from the Ministry of Urban Development & Construction (MoUDC) on Friday, February 7, 2014, to visit the construction of 40/60 and 10/90 condominium houses. “There are times when up to 50 big water tankers are transported within a single day.”

The Agency plans to transfer 26,000 houses under the 20/80 and 14,000 houses, for the first time, under the 10/90 scheme, in 2013/14. Close to 3,000 of these units will be stores for rent.

Divided into three sub-projects, the Bole Arabsa project includes Lideta, Kirkos and Project 15. It has 674 buildings up to seven storeys high. The project covers an area of over 230 hectares.

Although the plan was to finish construction by the end of the 2013/14 fiscal year and distribute the homes to beneficiaries, shortages in transport, water, electricity and other basic facilities has forced the Agency to extend the deadline to the middle of the 2014/15 fiscal year.

Road and transportation issues are also hindering the speed of the construction. Approximately 252 project staff members, 288 contractors, five consultants with full staff and 430 micro & small enterprises (MSEs) with an 8,000 strong labour force, find it difficult to come to the project site, as they live far away, much closer to downtown Addis Abeba, according to Haileleul.

“We have nine city buses providing a transport service, but it still falls far short of meeting the demand,” he lamented.

Working under all this pressure, the project has constructed 65pc of the 10/90 houses, which are all two storey buildings. The construction of the 20/80 houses has reached 55pc completion.

The government planned to construct 95,000 houses in Addis Abeba in the year 2012/13 at a cost of 16 billion Br.

Another site visited by the crew is the YekaAbado project, located close to Sendafa, 40 km from Addis Abeba. Covering an area of 250 hectares, the project started in 2011 and has 570 buildings, ranging from two to seven-storey buildings. The project manager, WerkuAbera, says there are 367 contractors at the site and 570 MSEs, with more than 8,000 members. Some projects are 65 to 89pc completed.

In the 40/60 housing scheme alone, 50,000 houses will be built at a cost of 26.05 billion Br. A total of 10,000 of them will be completed during the 2014/15 fiscal year. The financing will be secured from “different finance sources,” according to the executive summary of activities released by the Addis Abeba City Administration, in July 2013.

http://addisfortune.net/articles/services-shortages-stunt-housing-developments/

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Heineken receives Fermentation tanks

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After a wait of six weeks, Heineken Greenfield Brewery finally received six new fermentation tanks on February 7.

The tanks came to the country via the Djibouti route.

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Heineken entered the Ethiopian market when it purchased Bedele Brewery S.C. and Harar Brewery S.C. for USD 163.4 million in 2011. It expended an additional 45 million Euros to upgrade the two breweries.

It has since started construction of its new Greenfield brewery Kilinto which will start production later this year according to the company’s public relations office. The cost of the factory is over 127 million Euros.

Heineken is not the only international brewery interested in Ethiopia. United kingdom based Diageo leveled the playing field a bit by purchasing Meta Abo Brewery for USD 225 million. The other global giant interested in the game is Bavaria N.V. Brewery which owns 49.9 percent of Habesha Breweries S.C.

The production capacity of the new brewery which stands on a 25ha plot is estimated at 1.5 million hectoliters. Ethiopia’s average annual beer consumption stands at five liters per person annually, while Kenya’s is 12 liters. The Czech Republic tops the list with 131.7 liters a person.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4027:heineken-receives-fermentation-tanks&catid=35:capital&Itemid=27

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Ministry finalizes construction industry draft proclamation

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The Ministry of Urban Development, Housing and Construction presented its final draft proclamation, the first of its kind in the sector, for discussion with stakeholders. The proclamation would help to create accountable and transparent ways of operation in the construction industry.

Briefing forum participants yesterday, State Minister Haile-Meskel Tefera said the new draft proclamation will enable ensure competency and foster quality in the construction industry. It adds to the strategy of collecting all the necessary data related to the construction sector which was missing in the previous working system, he noted. “It could enable us register and evaluate performance contractors, experts and consultants in the sector,” he added.

Haile-Meskel said the new proclamation is mainly vital for the flourishing of professionalism in the industry. The services in the sector need to be rendered with ultimate quality based on ethical standards, he said. As the proclamation helps to fill gaps in quality, timeliness and other present challenges, it would create better benefits for the users, he noted.

In contrast to the previous way, those who want to engage in the construction sector must first have letter of competence before trade license, when this proclamation is ratified and becomes a governing law in the sector. A new registration body is expected to be established to enforce the proclamation. The proclamation allows those engaged in the sector to submit complaints related to registration and other issues to a committee that would be formed.

It also stipulates that any one found operation in the sector without letter of competence would be fined from 150,000 up to 300,000 birr and from seven to 15 years of imprisonment. Those who intentionally make contracts with any one who does not have letter of competence will also face punishment, according to the proclamation.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5913-ministry-finalizes-construction-industry-draft-proclamation

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South creates 590 mln. birr market chains 

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Trade, Industry and Urban Development Bureau of Southern Nations, Nationalities and Peoples’ State said market chains estimated at over 590 million birr were created for micro and small enterprises during the first six months of the current budget year.

The Bureau told ENA that the market chains were created for micro and small enterprises engaged in manufacturing and service sectors.

These micro and small enterprises created jobs for more than 116,000 people.

Meanwhile, 116,350 youth are engaged in micro and small enterprises in the State during the first half of the current budget year, the Bureau said. More than 35 per cent of the stated people are women.

The youth are engaged in manufacturing, construction, food processing, trade, agriculture, and service sectors, among others.

More than 100 million birr loan was distributed among the stated number of youth.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5914-south-creates-590-mln-birr-market-chains

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Arkebe now board chair of Railway Corporation

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The veteran Tigrai Peoples’ Liberation Front (TPLF) fighter, Arkebe Ouqubai has been assigned as Board Chair of the Ethiopian Railway Corporation (ERC) replacing the mayor of the Addis Ababa City Administration Diriba Kuma.

Arkebe was assigned in a letter written by PM Hailemariam Desalegn as the board chairman of the railway corporation three weeks back.
Arkebe was working as an advisor of the Prime Minister with a ministerial portfolio on construction related issues.

Arkebe Ouqubai also got his PhD from the School of Oriental and African Studies in London. The former ERC board chairman, Diriba Kuma, mayor of the Addis Ababa City Administration, has led the corporation, which undertakes the multibillion dollar projects throughout the country for over one year.

The current PM Hailemariam had also led the corporation for many years.

Sources said that Arkebe is responsible for the corporation because there are a lot of decisions to make and it needs a lot of guidance right now and the mayor’s responsibilities at the city did not allow him to follow the corporation’s activities in a proper manner. “This is the main reason for the replacement,” a source who is close to the matter told Capital.

Before the 2005 election Arkebe led Addis Ababa and also served as State Minister of Urban Development. His achievement and leadership capacity in the Addis Ababa city Administration has made Arkebe popular in the country. His close friends describe Arekbe as a workaholic and are confident that he will make remarkable achievements in constructing  the railway system that stretches all over the country.

Diriba is currently board chairman of the state monopoly Ethio-Telecom.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4033:arkebe-now-board-chair-of-railway-corporation-&catid=35:capital&Itemid=27

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Draft regulation by AACRA brings new fines

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The Addis Ababa City Roads Authority has drafted a new regulation to be enforced to make roads safer and more efficient. 

More people are vandalizing public property and being irresponsible in ways that pose a danger to public safety, according to the document.
According to the drafted document, things are happening on sidewalks that are huge safety hazards and constrict traffic flow. Dumping construction materials, washing cars, illegal parking, setting up tents or pavilions for exhibitions, throwing out garbage and vending illegally all make the public’s environment unsafe.

Roads are also being inappropriately used in ways that damage roads and block traffic. Construction sites often close off roads because employees dump construction materials like cement, steel, and soil that is dug up for the project.

Drainage systems through out the city are also under a lot of pressure as it is misused by different establishment owners as well as residences. The document states that often time people dig up the drainage systems so that it will connect with their residence’s sewage system while hotels as well as factories also engage in similar activities to get rid of their liquid waste.

The drafted regulation lists several offences that will be punishable by fines. Among these are dumping solid waste on the streets by residents will be fined 100 birr, similarly, if it is from an industry the fine will be 7,000 birr and from health facilities 5,000 birr.

Dumping construction materials on sidewalks or roads will be punishable by 1,000 birr while selling or moving livestock on roads will be followed by a hefty fine of 8,000 birr.
The document states that individuals who knowingly or unknowingly cause damage to public properties such as street lights, traffic signs or traffic lights will be fined 500 birr. Urinating and defecation will also be punishable by 50 birr.

Posting advertisements without permission from appropriate bodies on electric poles, bridges and other areas is to be punishable by 500 birr.
The regulations will be enforced by the Law Enforcement Office, by the police as well as the road administration.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4032:draft-regulation-by-aacra-brings-new-fines-&catid=35:capital&Itemid=27

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Bidding Process Questioned in National Switch System

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The headquarters of Awash International Bank (AIB), left, and Commercial bank of Ethiopia (CBE), right,

located around the National Theater along the Ras Abebe Aregay Street.

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There are concerns that hidden costs will inflate the bid of the number one listed company beyond its closest rival

Eth-Switch SC – a consortium of all banks, established to provide a national switch system – is close to awarding a contract for the supply and implementation of a National Electronic Funds Transfer (EFT) Switch Clearing Settlement and Reconciliation System to Compass Plus Limited – a British IT vendor.

Some members of Eth-Switch’s bid committee – which consists of officials from the National Bank of Ethiopia (NBE), Nib International Bank (NIB) and the Oromia International Bank (OIB), among others – are expressing concerns, however, with the bidding process, questioning its integrity.

The critics reason that the price offered by the number one listed company, Compass Plus, has hidden costs that will push the price of the project beyond that of the second bidder, BPC Banking Technologies.

An official of the state-owned bank, who disagreed with the tender process, saying that it violates the Federal Public Procurement Directive issued in 2010, withdrew from the evaluation process, citing disagreement, a source close to the case told Fortune.

A group of bank lawyers approached Eth-Switch to rectify irregularities in the tender, Fortune leant. One of these lawyers is a member of the technical evaluation committee.

The hidden costs include – additional payment for ATM machines; additional cards, such as Point of Sale (PoS) and ATM (Visa) cards, and license renewal payments.

Some members went to Sudan to see the switch solution that Compass Plus installed. Upon arrival, however, the members were only shown the switch system that S2M – a Moroccan company – had installed. This was because the system of Compass Plus crashed on four different occasions, sources disclosed.

Compass Plus develops and implements a range of electronic payment technologies, which power all-scale retail banking and electronic payment systems. The Company provides a payment solution called Tranzware. This solution provides several billion transactions a year; driving 20,000 ATMs and 170,000 PoS terminals, whilst supporting over 90 million cards.

BPC offered 17 million dollars, while Compass Plus offered 11 million dollars, for the switch system that is expected to enable all banks in Ethiopia to electronically transfer funds and clear cheques between themselves. This is in addition to sharing each other’s Automated Teller Machines (ATMs).

But the amount of money offered by both of the companies is beyond the financial capacity of Eth-Switch, whose capital is only 80 million Br.

Eth-Switch, therefore, revised the ToR (Terms of Reference) in order to cancel the turnkey aspects of the project. These included the switch system, data centre, transfer of knowledge, hands of holding and training. The revised ToR only requires the switch system, thus reducing the cost of the project by 80pc.

But this caused another disagreement among members of the tender committee.  Some said that if the ToR is going to be revised, into a component level from that of a turnkey level, then the committee must retender, or possibly float a restricted tender to save time.

A restricted tender is conducted if there is a change in the ToR. It is price-based and includes at least five bidders, including the shortlisted ones and others from the previous tender.

Eth-Switch, nevertheless, continued to deal only with Compass Plus. In a letter dated November 27, 2013, it declined BPS’s request, on November 8, 2013, that it be given the opportunity to resubmit an updated financial bid. Eth-Switch also informed BPS that doing so would lead to a violation of the governing terms and conditions of the bid document.

Eth-Switch floated the tender back on February 21, 2012 and 14 IT vendors participated. The bidding committee conducted a technical evaluation and disclosed the first stage result of four shortlisted companies – S2M, M2M, BPC and Compass Plus.

Months later, Eth-Switch disclosed the second stage, where the bid was narrowed down to BPC and Compass Plus.

The financial proposals of the two companies were opened on May 7, 2013.

Compass Plus is close to being awarded the contract, according to sources. Eth-Switch has informed them, however, that the tender process is under review.

http://addisfortune.net/articles/bidding-process-questioned-in-national-switch-system/

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Investment Agency revokes licenses of over 1,000 companies

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The Ethiopian Investment Agency canceled investment licenses of over a thousand companies. The decision came after a warning was posted for a list of 2,497 companies to report to the Agency to avoid having their investment licenses revoked.
“We gave the warning in the beginning of January and now we have revoked investment licenses of companies who were not able to report as the warning stated,” said Aschalew Tadesse from the Public Relations office at the Investment Agency.
Some of those that have had their licenses revoked are; CRBC Addis Engineering Plc’s license for an expansion, East African Pharmaceuticals expansion project, Holland Car Plc and Access Resorts Hotel Plc.
The list of the companies which was posted at the Agency’s office was divided into three main sectors which were tour operation, machinery rentals and agriculture.
The list also includes companies such as Deventus Wind Technology Plc, ELFORA Agro Industry Plc’s real estate development, Boston Partners lodge hotel international standard star designated restaurant expansion project, Jupiter Agro Farms Plc that produces vegetables and flowers for export and St.Mary’s Educational Development Plc higher education institution new project.
“We are currently going through documents of various companies and conducting an evaluation. We are checking to see if everything is done correctly. Accordingly we have put up a notice asking companies who do not have the appropriate and necessary documents to come and report to our office,” a PR officer at the Agency told Capital.
Some of the reasons for the licenses to be revoked include failure to renew the investment licenses as well as not starting the operations for which the license is issued for.
“Some of the companies acquired investment licenses for projects but end up failing to begin operations in the specific time provided by the law. These companies will have to provide a persuasive and acceptable reason in order to keep their license,” the PR officer also said.
The companies on the list are involved in a variety of sectors such as construction, tour operation, hospitals, restaurants, many of which specialize in Chinese cuisine, consultancy firms, higher education institutions, construction machinery rentals, flower farms, hotels and more.
According to the Agency, initially, the companies were given a window of 20 days to be able to fix the problem to stop their license from being revoked.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4035:investment-agency-revokes-licenses-of-over-1000-companies&catid=54:news&Itemid=27

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Exports hit a head wind

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Global economy plays a role but stagnation has been developing over two years

Ethiopia’s exports have bucked a trend and not performed as well so far this year.

For the last several years, the Ethiopian export sector has been growing consistently, though not reaching the targets set by the government. However, for the first time in recent history, the revenue generated from exports, in the 2012/13 fiscal year, declined when compared with the previous year’s performance.

The past six month’s performance is nearly 35pct lower than the target.  During the first half of the 2013/14 fiscal year, which is from July 8, 2013- January 8, 2014, the country earned USD 1.311 billion from exports. But the government hoped to earn USD two billion during this period, which is 65.5pct of the goal. This is surprising because over the past decade exports had been growing and it is concerning because even though figures are still rising, exports were growing at a slower rate over the last 18 months.

In fact exports are 7.3 percent lower than the first six months of the 2012/13 fiscal year. This means that over the past two fiscal years (since 2011/12), even though exports have been rising; they have not been going up as rapidly as they had before. The last six months is the first time that exports have actually declined however.

Not all exports decreased, manufacturing and oil seed exports registered significant growth in the first six months of the fiscal year but agricultural products and mining declined.  year report, the coffee trade has constricted 28 percent by volume and 38 percent by value compared with the past year achievement.

Other agricultural exports that decreased were oilseeds, flowers and pulses, although pulses, like khat, performed better than other farm products. In Ethiopia, the most prominent oilseeds are sesame. These seeds brought in USD 208.8 million over the past six months. This is 76 percent of the target, which was USD 273.2million, although oilseed exports have been growing rapidly over recent years. Pulse exports brought in USD 107 million, 84 percent of targets. Khat, was closer to its goal raking in USD 150 million or 92.6 percent, over the past six months.

Flower exports decreased reaching only 54.8 percent or USD 84.5million but it did grow 2.7 percent, compared with the first half of last fiscal year. Even though the government hopes to expand fruit and vegetable investment and export, its performance is very weak. The government targeted USD 62 million from vegetable and fruit exports in the first six months of this fiscal year, but the actual achievement was 36pct of the target or USD 22.3million. MoT planned to earn USD 1.07 billion from farming in the first six months of this fiscal year. Instead, they earned USD 815.7 million, 76pct of what they had hoped for.

The other sector that registered lower performance in the past six months is mining. In the extraction industry gold has been raking in a lot of money for the nation recently as people have begun finding more of it here and the price on the international market has been increasing. However in the first half of this fiscal year gold exports only met 59 percent of their targets. According to Ministry of Trade (MoT) report, some sectors did see their exports increase compared with first half of the past fiscal year but they failed to meet targets.

Exports were supposed to bring in USD 328 million but instead they earned USD 194 million. Some of the blame lies on the international markets which saw prices for gold and coffee decrease over the past six months. In general, the hard currency generation from mining contributed USD 199 million in the first half year, which is 28 percent lower than the similar period in the past fiscal year. In the first six months of the past fiscal year the country generated USD276.6 million form mining exports.

Changing from an agricultural led economy to an industrial one is a major Growth and Transformation Plan priority and the report indicated that industrial exports did earn more revenue during the stated period but only slightly more and less than half, (47.7 percent) of what they had planned on. The ministry wanted to earn USD 366.5 million from manufacturing, but the sector contributed USD175 million.

Leather and leather product exports on the other hand excelled, amassing USD 9.7 million; higher than the USD 57.4 million in revenue the sector earned a year ago. According to the report, Ethiopia exported USD 57.5million worth of garments and textiles. Yet, the goal was USD 111.8 million, although it is still a 27 percent increase compared with last year.

Last year’s export performance report indicates farming; mining and industrial exports earned a combined USD 3.08 billion. The performance shows a slight decrease when compared with the 2011/12 budget year’s performance that managed to rake in USD 3.15 billion birr in revenue. The performance of the past budget year is also USD one billion less than the target set by the Ministry which is a little over USD four billion.

By the end of the GTP, (June 2015),  the government dreams of USD 10 billion from exports. A large part of Ethiopia’s plan to become a middle income country depends on producing more goods here and then exporting them to other nations instead of relying on imports. Many developing countries face an uphill climb when trying to improve the economic lives of their citizens because the playing field is not level, as a result they end up selling raw materials to foreign investors who then add value to them and earn huge profits or rely on ‘cash crops’ and other natural resources that are then exploited by large foreign corporations who do not offer a fair exchange.

Countries that have successfully developed in the past like China and India have done so by making their own products and exporting them in large numbers. When India first gained independence Ghandi saw this as the only way to achieve true freedom, one economic expert said. The Ethiopian government is counting on exports increasing dramatically and consistently in order to meet their many development goals. For this reason even if exports still rise, when they appear to be leveling off it is a cause for concern.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4034:exports-hit-a-head-wind-&catid=35:capital&Itemid=27

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Coffee Competition Winners Announced

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The competition is being used as a way to find the best coffee producers in the country

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From left to right, Killele Tsegaye, representative of H.H.K. Industrial Plc, Wondesse Lemma representative of Lemma Edito & Children Plc, Hussien Agraw, president of the Ethiopian Coffee Exporters Association (ECEA), and Hailesellasie Ambaye general manger of  Hailesellasie Ambaye Industrial Plc.

Three coffee producers and exporters – from Jimma (in Oromia Region) and Gedeo and Yirgachefe (in the South Region) –were recognized for producing the finest coffees out of 91 competitors.

Lemma Edito & Childern Plc, from Limu Kose in the Jimma Zone, came first, scoring 88.4 points with natural coffee, Second came H.H.K Industrial Plc from Gedio Zone (Southern Region), scoring 87.75 points – also with natural coffee. Hailesellasie Ambaye Industrial Plc from Yirgachefe (Southern Region) achieved 87.6 points with a washed coffee, and came third.

The African Fine Coffees Association (AFCA), in partnership with the Ethiopia Commodity Exchange (ECX), the United States Agency for International Development (USAID) and the Agricultural Growth Program-Agribusiness & Market Development (AGP-AMDe) – announced the 2013/ 2014 Taste of Harvest (ToH) coffee competition winners on Wednesday, February 5, 2014, at the Elily International Hotel, located in the Kasanchis area, along Guinea Conakry Street.

The winner of forth and fifth place was the Mormora Coffee Plantation from Guji (in Oromia Region). The plantation came fourth scoring 87.57 points, with washed coffee. The same company took a certificate scoring 87.5pts with natural coffee.

The top five winning coffees will be promoted next week at the Annual African Fine Coffees Conference & Exhibition (AFCC&E) in Bujumbura, Burundi, and whole coffee samples will be presented on the AFCA website to help promote them.

Based on the call of the AFCA Ethiopia Chapter for the test of harvest competition, 91 washed and natural samples were submitted to the ECX by 42 growers, 24 cooperative unions and 34 exporters.

Judges were selected by the AFCA Ethiopia Chapter Stirring Committee (Members represented from the industry), with a selection criterion of senior experts on coffee quality – representative from the Industry, licensed and qualified graders and experienced for the protocol and TOH events.

In the three-phased inspection, 91 coffee samples were submitted during the first phase. It was narrowed down to the top 36 high scoring coffees, during the second and to the top 13 high scoring coffees during the last one.

The occasion is a coffee cupping competition to identify the finest Ethiopian coffees, in order to promote quality coffee by way of contributing to the development and marketing of the industry.

Established in 2000, the AFCA is a regional association with its secretariat located in Kampala, Uganda.  The organization’s mission is to promote the production, quality, consumption and trade of Africa’s fine coffees in its eleven member countries: Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Malawi, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

The AFCA’s membership includes: producers, millers, exporters, international importers, roasters, policymakers, transporters and trade representatives.

http://addisfortune.net/articles/coffee-competition-winners-announced/

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Turkish Company Secures Half Billion Birr Road Project

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- The new road will reduce the distance between Awash Arba and Debre Berhan by two-thirds -

Ray Ozaltin the board member of Atayol (left) and, Zaid Woldegabriel, ERA’s general director  (right)

on the agreement signing ceremony of Dulecha to Awash Arba road project

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The Ethiopian Roads Authority (ERA) has given a Turkish company a 596 million Br contract for two road construction projects in the Amhara and Afar regional states.

The contract was signed with Atayol Asphalt Contracting, Construction Liquid Fuel Energy, Industry & Trade Company Co Inc, on Friday, February 14, 2014, at the ERA’s headquarters on Ras Abebe Aregay Street, near Mexico Square. Atayol’s website indicates that the company has completed 17 projects in Afghanistan to date, with three further projects ongoing. It shows no other projects elsewhere.

Its project in Ethiopia will be a 53km road from  Dulecha to Awash Arba, both in Afar. This is part two of a 93km road, with the first part – from Ankober to Dulecha – covering the remaining 40km. This section of the road is yet to be awarded to a contractor.

Atayol’s project consists of the upgrading of 10kms of existing gravel road and the construction of 43kms of new asphalt road. The road will be 14m wide in urban areas and 10m wide in rural areas – both including shoulders.

The existing road has been difficult to use during the rainy season, said Samson Wondimu, the ERA’s communications director.

The road is also expected to link the Amhara and Afar regional states economically, over and above being an alternative route to travel to Djibouti, a statement from ERA said. The road could also boost tourism to Ankober, the ancient capital of the kingdom of Shoa, and later the capital of Ethiopia during the reign of Emperor Menelik.

Atayol’s payment will be split 60:40 between Birr and dollars.

Upon completion, the road will minimise the 380km long road from Awash Arba to Debre Berhan, through Addis Abeba, to 135kms.

Although the contract is expected to be completed within two and a half years, Ray Ozaltin – a board member of Atayol, who signed the project agreement representing the Company with Zaid Woldegabriel, ERA’s general director – promised that the Company will complete the road within a year and a half.

For Atayol, which has more than 10 years experience in the sector, with 17 road project deliveries in various parts of the world, the project is its first engagement in Ethiopia.

The International Developmental Association (IDA) – a wing of the World Bank (WB) – and the Ethiopian government will jointly finance the project. The project consultants will be DIWI Germany, a German firm, and the Engineer, Zewde Eskinder.

The road will have bridges, drainage pipes, traffic indicator signs and other structural constructions.

The Authority has worked on the rehabilitation of 728kms of trunk roads and has upgraded 5,023 trunk and link roads. It has also carried out the construction of 4,331kms of new link roads and maintained 4,700kms of asphalt and gravel roads over the past five years.

http://addisfortune.net/articles/turkish-company-secures-half-billion-birr-road-project/

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Decade Wait Over As Lamberet Bus Terminal Commences Operations

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- Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005 -

The recently opened Lamberet Bus Terminal, located at Dessie Ber, in Yeka District.

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The Lamberet Bus Terminal, one of the five planned during the previous Dergue government, which were to be located at the city’s exit points, commenced operation on February 8, 2014, almost a decade after the originally planned time.

The construction of the terminal located at Dessie Ber, in Yeka District, was delayed for a decade because of the escalating price of construction materials. On the other hand, the political upheaval in the aftermath of the May 2005 national elections derailed the plan, since the station was turned into a camp for the Federal Police forces between May 2005 and January 2006. The police did not leave the premises after the unrest died down, leading to a further delay

The 55 long buses and 130 medium and small buses, which are deployed by the terminal on a daily basis will cross three regions-Amhara, Oromia and Tigray, with their final destination being Shire Endaselassie, a town in Tigray Region located 1,087 km north of Addis Abeba.

The Federal Transport Authority (FTA), which administers the terminal, has installed a checkpoint around Legedadi in Oromia Region located 25 km from Addis Abeba to intercept buses working outside of the terminal, says Abeleneh Agedew, head of Promotions & Public Relations at the Authority.

Ten staffers supervise daily deployment of buses, while 19 associations of buses are also working with the terminal staff in the deployment.

The terminal’s management has reserved some buses in case shortage occurs while serving 20,000 to 30,000 passengers each day, starting from 6:00am in the morning to 7:30pm till at night, according to Getahun Cheru, public transport deployment & control coordinator of management of the terminal.

Passengers will not be allowed entry into the terminal without tickets.

The terminal’s management is working closely with the newly resurrected Code Enforcement Services Office and the Addis Abeba Traffic Police to maintain the security of the terminal, according to Getahun.

“Controlling the terminal with only 10 security officers is difficult,” Getahun said. “The management has requested the Authority to assign more staff.”

The eight million Br terminal built by the Nega Mamo Construction Company with is equipped with spaces for passengers awaiting buses, access for the for the disabled, baggage trolleys and toilets for passengers.

Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005.  The Authority received the terminal on December 9, 2013 from the contractor.

As a means of protecting against theft, the terminal requires that passengers must receive tags after their baggage are weighted, says Wondyirad Worqu, a security officer.

Some passengers approached by Fortune complained of the dearth of hotels with affordable prices near the terminal.

“While staying at nights, I have to sleep outside the terminal under the fences,” says Tekliye Habtegebriel a passenger, who came back from the Amhara Region on Wednesday, February 12, 2014. “This robs passengers of comfort and security.”

Although the management used to allow passengers to sleep inside the compound for a few days after the commencement of service, it decided to change this fearing dispute over responsibility in case property is stolen or lost.

“Since we are working with the District Administration on ways of engaging MSEs [Micro & Small-scale Enterprises] in the provision of restaurant and bedroom services, we hope to end passengers’ discomfort soon,” Getahun told Fortune.

For bus drivers like Dereje Hailu, however, the terminal stands out from several others as it allows them to leave buses in the terminal until the next morning while they are not travelling.

According to the Authority, there are 3,694 transport routes across the country. Of these, 139 are served by transport buses with more than 47 seats. There are 1,014 such buses operating on these routes, as well as 42 buses, labeled ‘special buses’ by the Authority from companies such as Selam Bus Line S.C and Sky Bus Transport System S.C.

http://addisfortune.net/articles/decade-wait-over-as-lamberet-bus-terminal-commences-operations/

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State-Owned Financial Institutions Announce Six Months Profit Bonanza

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Sintayehu W.Mikael (PhD), left, director general of the Public Financial Institutions Supervising Agency with the Agency’s Public Relations of Gebre Erkalo.

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The four state-owned financial giants – the Commercial Bank of Ethiopia (CBE), Development Bank of Ethiopia (DBE), Construction & Business Bank (CBB), and the Ethiopian Insurance Corporation (EIC) – together amassed a profit of 5.6 billion Br during the first six months of the 2013/14 fiscal year.

The amount, which is 98.4pc of the planned profit, has surpassed last year’s figure for the same period by 29.4pc, according to a statement released by the Public Financial Institutions Supervising Agency.

The CBE reported gaining 4.6 billion Br out of its plan for a profit of five billion Birr. It accounted for 85pc of the total profit by the three state banks.

During the six months, the DBE planned for a 389.7 million Br profit, but surpassed it by 94.3pc. The bank gained 757.2 million Br profit. The reason is an increase in interest income and non-performing loans.

The CBB amassed 61.6 million Br in profit, while planning to get 60.7 million Br. The profit is 101.5pc compared to the plan. The revenue came from income from commission, interest and service fee.

The cumulative loan registered by the state financial institutions has reached a total of 239.5 billion Br by the end of the reporting period, the report said, showing an improvement of 48.6 billion Br from the same period a year ago.

The insurance corporation, on the other hand, projected a profit of 271.5 million Br for the same period, but gained only 160.8 million Br, achieving only 59.2pc of the plan. The report attributed this to the high provision expense for doubtful loans.

EIC’s premium collection, given for the first quarter of the fiscal year, amounted to 901 million Br, almost 63pc of the planned 1.4 billion Br. The Corporation has paid 262.7 million Br in compensation and commission, 10.5 million less than the previous year.

There was a plan to obtain 3.1 billion dollars worth of foreign exchange through export and remittance, of which the three banks achieved 2.4 billion dollars. This performance was also lower by nearly 22pc than the 3.1 billion dollars collected during the same time a year ago.

The CBE accounted for 2.3 billion dollars of the total collection, while the DBE and CBB account for a 0.04 dollars and 0.06 billion dollars, respectively. Both export and remittance decline have accounted for the lower performance, the report said.

A lot of the remittances sent to Ethiopia flow through back channels, according to the World Bank (WB) and, remittance has averaged 1.3pc of the gross domestic product (GDP) over the last 30 years. Between 1977 and 2003, remittance flows have steadily grown from four million dollars to 47 million dollars a year. After this, the growth climbed sharply towards 172 million dollars and 300 million dollars, in the years 2007 and 2010, respectively.

The CBE remains the dominant operator in the sector, having a total of 780 branches, 85 of which were opened over the past six months. CBB follows with 105 branches.

http://addisfortune.net/articles/state-owned-financial-institutions-announce-six-months-profit-bonanza/

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Crown Plaza Hotel Coming to Ethiopia with IFC Support

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- The hotel will be the fourth of an international standard in Addis Abeba, with a fifth, Marriott, also expected soon -

The area on which the 11-storey hotel is being constructed in Lideta District At the site of the old Etfruit facility.

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The World Bank Group’s International Financial Corporation (IFC) is considering an investment of 19 million dollars for the completion of an international standard hotel in Lideta District. The total cost could add up to as much as 37 million dollars.

If the investment materialises, it will be concluded with Tsemex Global Enterprise Plc and its subsidiary, Tsemex Hotels and Business Plc, both owned by Rezene Ayalew, a local business man, and his children. The request for investment was made by Tsemex’s owners, who have already erected the structure of the 11-storey building in Lideta at the site of the old Etfruit facility, a source close to the business said.

The IFC says that the purpose of its “investment is to help to address the shortage of hotel rooms of an international standard in the capital city, Addis Abeba”. The two sides are working on the deal with the understanding that the hotel will be managed by the International Hotels Group (IHG) and be branded Crown Plaza Addis.

If it works out, Crown Plaza could be the fourth international brand hotel in Ethiopia, after the Hilton, Sheraton and Radison Blu. Sunshine Construction also has a deal with Marriott, which is yet to bring to service the hotel that goes by that name.

The IFC’s experts have travelled from Washington five times, the source said, to determine if the loan should be granted. If the IFC decides to make the loan, Tsemex Hotels and IHG simply need to sign a deal to finalise the full management contract, the source said. This could happen sometime in March. The IFC could make its final decision known on March 17, 2014, according to its website.

The IFC says that the expected development impact of the investment includes providing a modern business infrastructure, migrating best practice, creating employment (for 315 people) and offering business opportunities for local suppliers – “particularly in the areas of food & beverage supply and the provision of services (for example, transportation, security services)”.

As part of the deal, the IFC will not only offer long term financing, but will also “help to raise additional debt financing for the Project; advise the Company on sustainable business and E&S (environmental and social) practices specific to the property development and hospitality business and avail to the Project its experience in financing hotel projects, particularly in Sub-Saharan Africa”.

The IFC had a deal in 2009 with the Ethiopian Commodity Exchange (ECX) to increase loans to Ethiopia’s agricultural producers.  That agreement created access for the warehouse collateral mode of financing.

The following year, it signed a risk sharing agreement with the Nib International Bank (NIB) to enhance the bank’s lending capacity to Ethiopian coffee farmer cooperatives. That agreement enabled the Bank to increase the scale of its lending to 70 farmer cooperatives during the 2010/11 fiscal year, extending 200 million Br in loans on the strength of a 10 million dollars guarantee from the IFC for the risk the programme involved.

http://addisfortune.net/articles/crown-plaza-hotel-coming-to-ethiopia-with-ifc-support/

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Large Italian Delegation Expected for Trade Fair

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- Italian deputy minister cancels trip because of political shake-up, but scheduled meetings will go ahead as planned -

Carlo Calenda

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A delegation of 50 Italian companies are arriving in Addis Abeba, with the head of the Italian Trade Agency, to participate in the 18th Addis Chamber International Trade Fair.

The Italian Deputy Minister for Economic Development, Carlo Calenda, was scheduled to lead the delegation, but his trip has been cancelled following the resignation of the Italian Prime Minister Enrico Letta, on Friday February 14, 2014.

Despite the deputy minister’s absence, however, the Italian delegation will meet with the Ethiopian Chamber of Commerce & Sectoral Association and the Ethiopian Investment Agency, said Matteo Bianca, first secretary and head of the Economic & Commercial Office at the Italian embassy in Addis Abeba.

The visit, organised by the embassy, is the culmination of years of high level talks on economic cooperation between Italy and Ethiopia, Pianca said.

The Trade Fair, which is organised by the Addis Abeba Chamber of Commerce & Sectral Associations (AACCSA), will take place from February 20 to 26 at the Addis Abeba Exhibition & Market Development Enterprise (AAEME), located near Meskel Square.

The AACCSA is expecting at least 122 international companies from 18 countries, including Italy, Kenya, South Africa and the Netherlands, as well as 60 local companies.

“The trade fair will have business to business discussions, a symposium and an exhibition of products and services from different sectors,” said Gashaw Abate, manager of Trade Fairs at the Chamber.

The Chamber expects between 4,000 to 6,000 visitors each day, he said.

“The aim of the trade fair is to facilitate technology and experience transfer” said Gashaw.

The chamber, Gashaw said, has planned a dinner, on Friday February 21, at the Hilton for the Italian visitors.

http://addisfortune.net/articles/large-italian-delegation-expected-for-trade-fair/

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Israel’s agriculture, rural development Minister to Visit Ethiopia

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Israel’s Agriculture and Rural Development Minister, Yair Shamir, is scheduled to pay an official visit to Ethiopia, Ghana and Nigeria.

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He will first go to Nigeria, and then to Ghana beginning March 2 to 4 after which he will finally proceed to Ethiopia.

The Public Diplomacy Coordinator, Embassy of Israel, Mina Okuru, in a statement copied to the GNA said Minister Shamir will be accompanied by a business delegation of Israel’s leading companies in agriculture, irrigation, poultry, fisheries, agro chemicals and large scale agriculture project integrators who are expected to feature in a business seminar and other meetings.

Minister Shamir, who is the son of former Israeli Prime Minister, Yitzhak Shamir, is a former military pilot and a member of the Israeli Parliament. (gbcghana.com)

http://www.waltainfo.com/index.php/explore/12333-israels-agriculture-rural-development-minister-to-visit-ethiopia-

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Related news:  http://www.icl-group.com/newsevents-pressreleases/Article/74f5f969-718e-48a1-93a7-4f5e912b06a7.aspx

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Some five enterprises attract buyers

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Some five of the 11 public enterprises put up for bid attracted buyers, the Ethiopian Privatization and Public Enterprises Supervising Agency (PPESA).

Agency Deputy Public Relations Head, Assebe Kebede, told WIC Ethiopian Pharmaceuticals Manufacturing Factory (EPHARM), Kombolcha Textile Share Company, Bekelch Transport Share Company, Hamaresa Edible Oil Share Company were the enterprises that attracted buyers.

The other state enterprises that did not attract interested bidders were Transport Construction Design S.C, Agricultural Mechanization Service Enterprise, Woira Transport S.C, Bahir Dar Textile S.C, Artistic Printing Enterprise and Ethiopian Mineral Development S.C, he said.

According to Assebe, the agency intends to sell the enterprises in full private ownership.

http://www.waltainfo.com/index.php/explore/12330-some-five-enterprises-attract-buyers

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Ministry working to build capacity of teachers

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The Ministry of Education (MoE) said   efforts are underway to build capacity and competency of teachers so as to maintain education quality.

Communication Affairs Directorate Director at MoE, Desalegn Samuel, told WIC that the ministry is implementing various programs that enable to improve knowledge and skills of teachers at primary and secondary schools.

Teachers are receiving on-job short and long-term trainings. Similar trainings provided for teachers in the past have brought about encouraging changes in building their capacity.

With a view to ensuring education quality, efforts are also underway to provide certification of occupational competence for teachers, Desalegn indicated.

According to director, over 90 per cent of the teachers at government’s primary schools of Ethiopia are diploma holders.

http://www.waltainfo.com/index.php/explore/12331-ministry-working-to-build-capacity-of-teachers-

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Africa Oil to complete 20 wells in Ethiopia, Kenya in 2014

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Africa Oil Corp. (CVE:AOI), a Canadian oil exploration company with assets in Eastern Africa, rose to the highest in nearly two weeks after saying it will complete 20 exploration and appraisal wells in Kenya and Ethiopia this year.
Africa Oil rose 2 percent to C$8.31 at 2:32 p.m. in Toronto, after reaching C$8.54, the highest intraday price since Jan. 29.
The Vancouver-based company said in a statement today that its 2014 exploration and appraisal program has three objectives: to appraise the existing key discoveries, to drill out the remaining prospects in the South Lokichar basin, and to open at least one of the four new basins being tested along trend.
Africa Oil said it currently has seven rigs running and after releasing one in mid-year, it will have six rigs running full time through the remainder of the year.
“This fully funded program should continue to deliver high potential upside value for shareholders through this year and beyond,” Chief Executive Officer Keith Hill said in the statement. (proactiveinvestors.com)

http://www.waltainfo.com/index.php/international-news/12297-africa-oil-to-complete-20-wells-in-ethiopia-kenya-in-2014

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Ethiopia to start Mobile Financial Service

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Ethiopia is embarking on the development of Mobile Financial Service (MFS), stated Debretsion Gebremichael; Minister of Communication Information Technology and Finance and Economy Cluster Head with the rank of Deputy Prime Minister.
A conference was organized on Mobile Financial Services on Thursday February 13th entitled “Catalyzing Transformation through Technology: How Mobile Financial Services Contribute to the Growth of Ethiopia.”
The conference explored the potential of Mobile Financial Services to drive transformation in the country’s financial sector. It was stated that the MFS can enable the rural population to improve their lives while supporting the Growth and Transformation Plan (GTP) through increased savings, agricultural investment and productivity as well as stronger rural institutions and markets.
“MFS has the power to enable the millions of rural citizens to enter the formal economy. These people need to save and borrow resources to build assets, buy and sell to engage in productive activities and send and receive money to reduce vulnerability. All of this requires they have access to the financial sector,” Debretsion stated.
There are currently over 90 million Ethiopians dispersed across 1.2 million square kilometers of land, 80 percent of which are living in the rural areas. Financial institutions have not been able to reach a majority of those people with the back branch to population ration still at 1 to 82,000.
“Clearly the need to find alternative ways of reaching and serving the population is required. While the penetration of mobile phones among the population continues to grow in significant numbers year on year, the government believes that it is possible to take advantage of that technological infrastructure and technology which now lies in the hands of citizens, to deliver financial services,” Debretsion said.
Parallel to the conference was a closed meeting held where decision makers from the office of the Prime Minister, Ministry of Communication Information Technology, National Bank of Ethiopia, Ministry of Finance and Economic Development and Ministry of Agriculture were present.
The main discussion at the closed meeting was said to be what Mobile Financial Service means in a policy context and what concrete steps and actions should be taken by the government to achieve the full economic potential of MFS.
“Achieving this goal, however, is still complex. It requires that we study the vast body of knowledge and evidence from the global community’ successes and challenges in similar endeavors. It requires that we understand our own strengths and remaining challenges,” Debretsion said.
He also stated that the meetings were not just about determining best practices but also what best fit in an Ethiopian context.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4052:ethiopia-to-start-mobile-financial-service-&catid=35:capital&Itemid=27

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Prime Minister Haile-Mariam Desalegn, on February 10, 2014 responded to questions raised by local journalists. On today’s edition The Ethiopian Herald has carried questions raised and responses given in relation to the over all economic development, and ethio-telecom.

Question: Various financial institutions including the World Bank have confirmed that Ethiopia’s economy is growing. However during the past two years they were saying that the economy was growing by a single digit as opposed to the government’s claim that the growth was a double digit one.

Prime Minister Haile-Mariam: Since the past 10 years Ethiopia’s economy has been growing rapidly. When we look at the growth of agriculture in 2004 E.C it was only 4.8 per cent which is way below what was planned. And as a result of the fact that agriculture constitutes the largest share in the country’s economy, the country’s economic growth in the same year was 8.5 per cent. When we look at the figure of this particular year, yes, it is not a double digit growth. Nonetheless, an economy is considered to be growing fast if it is growing by seven per cent and above. Although agriculture somehow showed decline, as a result of the rapid growth registered in industry and service sectors our economy was still one of the fastest growing.

In 2005 E.C since the performance of the agriculture sector improved the economy grew by 9.7 per cent. This is almost close to a double-digit growth. However, we still do not consider it as double digit growth. If the institutions have to make analysis they have to see the economic growth within the specific year not in comparison with the previous years. I am saying this because in 2006 E.C, if we look at the agriculture sector, it has more than any time in the past. The forecasting for the Meher season alone shows that agriculture has grown by 10 to 11 per cent. The contribution of oil seeds, cereals and irrigation was not included. When it is included it is not difficult to imagine that the average growth rate could be even higher. Given the fact that Ethiopia’s economy is heavily dependent on agriculture what has been achieved in agriculture is indicator of the fact that there will be a double digit economy growth.

Judging by the current rapid growth in the agriculture, industry and service sectors as well as the growing influx of investment, we believe that we can achieve our economic growth target for this year.

So, most often the are discrepancies between our forecast and that of the World Bank. As everybody knows the World Bank’s forecasting method is different from what we commonly know. Anyways most of the time they accept ours. Recently there was an incident in which the World Bank confirmed that Ethiopia’s economy is growing by 10.6 per cent. When it comes to final result we don’t have much difference, however, we most often have differences in forecasting, and it is not surprising that the forecasts of the World Bank and that of ours had discrepancies.

Question: The services of ethio-telecom is declining. In fact over the past few days telecom services were totally interrupted. Is the country’s policy to see the telecom sector continue in such situation? Is there any policy change regarding making the telecom industry play a better role in the economy?

Prime Minister Haile-Mariam: Previously we announced that ethio-telecom started a new operation. Particularly in Addis Ababa it started expansion work two months ago. Obviously there will be ups and downs during this expansion work. For instance the interruption of telecom services last week was caused during replacement of old transmitters with new ones. Therefore, such interruptions may occur until the expansion work is completed in six months. So, priority is given to the replacement of network transmitters in areas as Sarbet, Torhailoch and others. where formerly a company called Erickson tried to do expansion work and which are known until today for having serious network problems.

This, however, doesn’t mean that ethio-telecom did not have other problems related to network congestion. Let alone today when transmitters are being replaced even in the past has had network congestion and quality problems. Basically now a direction is designed to alleviate the problem once and for all. So attention will be given to the completion of these activities based on schedule.. That is when change will come in the telecom services.

By the way, the technology that we are applying in the telecom sector is from the company named Huawei, which is also known to be used by countries such as Denmark, Norway and partly England among others.

Therefore, since the technology that we are using is quite similar with the technology the aforementioned countries use, the issue of quality service is to follow the proper completion of the installation of the technology. What we have to know is that the installation of this technology has nothing to do with the question of privatization of the telecom sector. The fact the there is a network congestion has been mentioned before. So, we hope the quality will improve as the work of the installation gets completed.

My government has a firm stand in keeping ethio-telecom as a state owned telecom company for several reasons. As we all know, one of the most juicy businesses is the telecom sector. It is a cash cow. That is why many insist that we privatize the sector. If we were to allow private companies, it is only three companies that would come for the sector. However, now it is 156 countries that are competing for the three areas. And we know why they are dying for it- it is because this is an area where one gets rich very easily. My government, however, strongly believes that this fortune should not be privatized because it is one of the major ways by which we reach out the rural part of the country. It is with the income we generate from the sector that we can redistribute the wealth in the cities to the rural part of the country.

Therefore, we will not transfer the sector to private companies at least for years to come. We know that it is only the government that can make the rural people equally beneficial with that of the urban population from the sector by redistributing the sector’s wealth in cities to the rural part of the country. In many African countries the private sectors that own the telecom sector do not bother about reaching out the rural people because if they do, they may not be advantageous. But we, as government, can make the people in the rural areas beneficial.

Moreover, transportation cost in Ethiopia significantly affects our effort to be competitive economically. And if this cost continues, the country’s economy would lag behind. Therefore, in order to be competent with world economies speed up the construction of the transportation infrastructure, especially the rail way transport is vital. Accordingly, the government of Ethiopia annually allocates birr six billion to the rail way projects from the income generated from the telecom sector.

Even if we take the six billion birr as a net profit and assume the private sector to pay 70 per cent in the form of tax, it is still not sufficient for us to proceed with our developmental activities that we are undertaking as far a the rail way infrastructure is concerned. So, for us, in order to continue our development activities, we are still determined to keep the sector owned by the government. We, therefore, must understand this economic logic. We, therefore, make sure that we will not privatize the telecom sector until we successfully accomplish our objectives with regard to developing the basic infrastructures. I once again assure you that there is no policy change in this regard as well.

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Sourced  here

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Related posts

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-     Manufacturing in Africa:  An awakening giant

-     Allana Potash Announces Strategic Alliance with ICL

-     The burgeoning opportunity in Ethiopia’s factories

-     Revolutionizing Wheat Production in Ethiopia   

-     IMF’s pills for Ethiopia: It Ain’t the Economy, it Is the Lab!

-     IMF’s new report highlights Ethiopia’s inclusive growth

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Ethiopia says flagship Grand Renaissance dam ’30pc complete’

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By ANDUALEM SISAY in Addis Ababa | Thursday, March 13  2014 

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  Zadig Abrha, deputy general director at the Office of National Council for the Coordination of Public Participation

on the Construction of the Grand Renaissance Dam, at a press conference on March 14, 2014

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Written by  GIRMACHEW GASHAW

Nowadays, Ethiopian towns are registering dramatic change in infrastructural development. Besides, improving various towns images, it is possible to create many more job opportunities to a number of unemployed citizens.

Bedriya Woldu,23, is a diploma holder in banking and finance. She graduated in 2013. The other day, while she was scanning a newspaper looking for a vacancy post, she came across an article expressing possible ways of creating own job. After discussing with people more on the issue, she decided to take a bold step on the road of creating own job organized with her friends. Then, she said, “The government helped us to engage in cobblestone laying tasks after facilitating conditions like loan, training and so on”.

“The job is good,”Bedriya said. She earns 2000 birr a month. Her life is turned round. At times, she earns more than that when she works to the best of her knowledge and capacity. She saves money via a traditional and rotatory saving system called “Equib” She cherishes a dream of buying a house.

“The number of youngsters looking for job opportunities is increasing in various newspaper vacancies that made me decide to engage in this activity. Seeing this thing I asked myself, why am I spending my time wandering here and there until I get a job?” When she shared her views with her colleagues they brought her idea.

“In fact, I earn more than government employees” Bedriya said.

Since 2013 she has been working in cobblestone laying task. She has a plan to buy a truck and supply construction materials much needed for infrastructural development.

Aboneh Daredo, 27, has been working on cobblestone laying after he graduated from Arba-Minch University in Applied Chemistry in 2012.

He said “Right after my graduation, I was thinking what I could do to change my life and that of my family. I had already realized that government salary could not bring change in someone’s life. The first thing that I did was, conducting a feasibility study of different ventures and checking the benefit of working with others. And finally, I decided to change myself through creating my own job. No body forced me to engage myself in cobblestone laying work,”Aboneh said.

He said, “Indeed, the task is lucrative. Instead of siting idle, the youth should learn from us and engage in many rewarding activities and ensure the economic growth of the country apart from being self-reliant.” There is a need to change one’s working culture, otherwise, the youth who sit without job become burdens to their nation. I have benefited a lot out of it. And hence I would like to advise the youth in Ethiopia to engage in blue color jobs not to heed old adages that scorn labor. Such attitudes lead a person to poverty.”

He added, “I know how I benefit out of cobblestone laying tasks! I have an open account and saved about 20,000 to 30,000 birr so far. In addition, in my spare time, I supply leguminous products to hotels and shops. It is the cobblestone laying task that served me a springboard to the supply business. Now I have a plan to turn an investor within the shortest time possible.

Of course, the University education has helped me well to manage various tasks—managing time and other resources. It also gives me a chance to think more about something before I set out to do it, Aboneh said. Dawit Fekadu is a General Manager of Baleraiye Association, he said the association was established by four members who graduated from various universities in different field of studies in 2013. Before we engaged in micro and small enterprises, we were attending vocational training.

He graduated from Debre-Birhane University in Journalism and Communications before three years and served in different governmental organizations for the past two years before he engaged in cobblestone tasks. “The salary I earned earlier from the government was not sufficient to satisfy my needs.”

When we start cobblestone carving and laying task we were 40. Our capital was also small but it has reached over 200,000 now. To put it in figure, some 56 members have a capital that exceeds from 10,000 birr at their personal account. At present, the association does have a total of 64 members.

We are benefiting out of it because everybody has begun tasks from zero. We are utilizing the budget the government provided us with in the form of loan allocated to SMEs according to its procedure. And we were told that through time you have to increase your saving to shift your business. As a result, most of our members have been changing life beginning from cobblestone laying and carving. For example, I had nothing while began cobblestone laying. But now I am capable of recruiting the youth to carve cobblestone and support the association.

In the near future, he said, “We are planing to engage in animal husbandry and urban agriculture. Previously, we borrowed 229,000birr. We paid over 85 per cent of our debts. When we finish the recent cobblestone project, we can pay full amount of liability. Now we have 400,000 birr capital before paying the liability.

According to Butajira Town Mayor, Tofik Mossa, during the past six months, the town had created temporary and permanent job opportunities for over 3,000 citizens in areas of manufacturing, service, urban agriculture and construction sectors. In relation to cobblestone tasks, it has made the creation of job opportunities to 700 dwellers possible enough. Moreover, the town administration has created job opportunities to Saudi repatriates. They are now engaging in various MSEs without despising labor.

And some of them are also engaging in trade and service sectors. We have also managed to create job opportunities for university graduates by organizing them in various groups. Regarding input provision and support for MSEs, we provide, financial, material assistance to them. For example, over the past six months, 3.2 hectare land has been transferred to various MSEs so that they could use it for construction shades and showcasing shops. So far, building 20 shades we had transferred them to various MSEs. We facilitate things to them so that they could get loans from various financial institutions, Tofik added.

http://www.ethpress.gov.et/herald/index.php/herald/society/6320-from-little-or-no-penny-to-be-a-millionaire

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By Wondaferash Alemu Tigrai Onlne – March 19, 2014

It has been said time and again that Ethiopia’s natural resources are barely utilized, even though nature endowed her with a large number of mineral resources. Recent geological studies and explorations have confirmed the presence of deposits of platinum, tantalite, soda ash and phosphate rock as well as gemstones such as diamonds and sapphires; industrial minerals including potash; and other precious and base metals.

Ethiopia’s geological setup is favorable for the occurrence of metallic, industrial, and construction minerals, dimension stones, and precious and various types of gemstones. Gold, platinum, tantalum, potash, salt, limestone, marble, granite, iron, bentonite, diatomite, phosphate rock, coal, gypsum, clay, opal, mineral water and construction minerals are the major minerals identified through exploration works carried out so far. A gas condensate field has been also defined in the eastern part of the country and is under development.

Ethiopia’s mineral wealth, combined with its skilled and low cost labor promises a thriving and profitable mining production. However, the revenue from mining and other valuable natural resources that found in the ground account for less than one percent of GDP, yet, that mainly depended on gold which has been produced from placer deposits mainly by the artisanal miners for several thousand years.

Even if gold mining is a relatively better performing sector, Ethiopia earned only about USD 1.7 billion in 2012 from five tons of gold per year. However, according to recent data, Ethiopia’s gold reserves are estimated above 500 tons. The government estimated that production could rise to 40 tons a year from just over four tons in 2012. Development of these resources is a cornerstone of the government’s export-oriented growth strategy and means there is less reliance on agriculture for diversifying the economy.

The first major change of direction in the development of the mining sector took place in 1991, when the government adopted a free market economic policy, limiting the role of the public sectors in economic activity. In accordance with the economic policy, the mineral sector was opened up to private investors in 1991, stimulating large investments, advanced technology and trained manpower.

Liberalized Mining and Income Tax Proclamations in 1993 and supporting Mineral Operations. Regulations in 1994 helped Ethiopia create an environment conductive to private capital investment by local and foreign companies in the mining sector. The Mining Proclamation provided the license holder with a number of incentives such as low royalties, exemption from customs duties and taxes on equipment, machinery, vehicles and spare parts necessary for mineral operations, and a 10-year loss carry forward.

As a result, the sector expanded at double digit rate for consecutive years. Today about 265 domestics and international companies have hold prospecting, exploration and mining licenses for hard minerals.

The second major shift started taking place in 2010 with the launch of the five years Growth and transformation Plan. The GTP set ambitious targets for the mining sector in five aspects. The Geo-science Data Coverage and Mineral Exploration program is one of the main ones. The main aim of this program is to collect, generate and disseminate geo-science data. To realize this aim, various activities have been planned and performed under the GTP.

As disclosed a few months ago, under the five year Growth and Transformation Plan, the Ethiopian Geological Survey has been working to boost the country’s geological mapping coverage from 51 percent in 2009/10 to 80 percent by 2015. On the other hand, coverage of gravity survey, hydrogeological mapping and engineering geology reached 95 percent, 62.6 percent and 20.9 percent respectively. These geological surveys help delineating areas where minerals are found which will facilitate the engagement of governmental organizations and mining companies. Similarly, collecting vital information on minerals, ground water, engineering geology and geo-hazards information enables to identify localities where natural disasters such as volcano, earthquake and landslide could occur.

The other major program of the GTP’s mineral sector development program is the Mineral and Petroleum Investment Expansion Program. Various activities were performed under this program.

The other major area of transformation is the Artisanal Mining and Marketing Promotion Program.

The federal government enacted a Mining Proclamation 678/2010, which is hailed as a model legislation for other African countries as it provided clarity and formal recognition of artisanal mining. Different activities to formalize informal miners and smugglers. Accordingly, the government provided technical assistance provided to traditional miners and legalization of the activities of gold miners, among others. He said over 80 vendors and over 50,000 labourers have benefited from the mining activity. Efforts are underway to mine one quintal of gold valued at over 840 million birr in this Ethiopian fiscal year.

On the other hand, the Geosciences Sector Research and Development Program is aimed to undertake problem-driven research and technology transfer across a broad range of geosciences and introduce appropriate technologies and new methods in the mining sector. New technologies and working methodologies have been introduced; published documents and books have been collected and distributed to all stakeholders. The national scientific instruments inventory of the sector have been accomplished, while the integrated Geo-scientific research in Blue Nile basin and integrated project in same basin and urban geosciences program are on track.

One highly notable progress in the extraction of Ethiopia’s mineral resources is the works to produce fertilizer for the next cropping season. As per the GTP, Ethiopia envisions building eight fertilizer companies in the Oromia Regional state. Out of the envisaged fertilizer producing companies planned to be constructed in Oromia, five are for Dap and the rest are for Urea.

Following a feasibility study conducted in relation to coal deposits discovered in the area last year in Yayu wereda of the Illubabor zone, in the Oromia Regional state the plan to build the eight fertilizer companies was revised. As per the study conducted, two Urea fertilizer factories and one Dap fertilizer factory will be erected in the area. The construction of Yayu fertilizer factory number one and two will reach 65 percent and 33 percent completion rate, respectively, this year. The design work for the Dap factory is already completed, while civil work and equipment production is underway.

It has been also reported that the feasibility study to construct triple super phosphate and single super phosphate factories is ongoing. Meanwhile, the construction of two organic fertilizer producing companies is in progress in two unspecified regions of the country, bringing the total number of factories to be constructed to seven as opposed to the original plan of building eight factories.

In this Ethiopian calendar year, fifty percent of the construction of all fertilizer factories will be completed. Based on the realities on the ground, Ethiopia will produce fertilizer for the 2013/14 cropping season.

According to government reports: The construction of its first-ever fertilizer factory in its history; in Yayo wereda, Illubabor zone, Oromia Regional state, 625km West of Addis Ababa, at a cost of close to 800 million birr is has been started. The first phase of the construction of the Yayo Fertilizer Factory has been completed four months ahead of schedule. The 12 million birr feasibility study conducted by COMPLANT, a firm that studied the potential of Yayo, reported that around 100 million tons of coal was found in the Yayo area. It is estimated that the coal deposit in the area has the potential to produce 300,000 tons of Urea, 250,000 tons of Dap, 20,000 tons of ethanol and 90MW of electric power annually for decades.

Now, the government is taking another major step to transform the mining sector by seeking admission to the Extractive Industries Transparency Initiative (EITI). EITI is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources.

The Extractive Industries Transparency Initiative is a global initiative launched by the then PM of U.K. Mr. Tony Blair in 2002. It is an International multi-stakeholders initiative of governments, companies and civil society working to strengthen governance by improving transparency and accountability in the extractive sector. EITI involves a process by which the payments made by companies and revenues received by governments are published in independently verified reports. The process is overseen and governed by a multi-stakeholders working group represented from government, civil society organizations and extractive companies.

Implementing EITI will help countries to efficiently collect the revenue generated from the extractive industry, supports anti-corruption and good governance agendas of countries and establish citizen trust in public institutions and extractive companies. Citizens would be able to hold government accountable in the use of revenues collected from the extractive companies. A transparent system will bring conducive investment climate and attract more direct foreign investment.

The government of Ethiopia has recognized the contribution of EITI to reduce poverty, fight corruption and establish good governance, transparency and accountability in the country, and has decided to join and implement the extractive industries transparency initiative. The government is also committed to work with the stakeholders for the development of the mining industry and bring sustainable development.

The Ministry of Mines is the government organ that is responsible for the implementation of EITI in Ethiopia. The Minister of the Ministry of Mines is the leader and chairman of the multi-stakeholders “National Steering Committee – NSC” assisted by the state minister of the Ministry of Mines.

The National Steering Committee has 17 members represented from the three multi-stakeholder groups; the government, the civil society and Extractive companies. It includes the Minister and State Minister of Mines who are the chairperson and deputy chairperson of the committee respectively. The NSC is the governing body of the Extractive Industries transparency initiative in Ethiopia. The EITI Implementation Secretariat (IS) is established and hosted in the Ministry of Mines. The secretariat is responsible for the day to day activity of EEITI and will assist and support the NSC.

The objective of Implementing EITI in Ethiopia are: To establish a system through which companies and government disclose the payments and revenues generated from the extractive sector in Ethiopia; To carry out reconciliation and/audit of the disclosed statement of companies and government by independent administrator; To develop a mechanism through which the citizens of Ethiopia access all the information regarding the extractive industry; To establish a forum under which all the concerned parties; the government, the civil society and extractive companies work together for the development of the mineral industry of the country and bring sustainable development; To establish transparency and accountability in the management of mineral resources including oil and gas and to foresee the minerals development of Ethiopia play a major role on the socio economic development of the country for the benefit of Ethiopians.

Sourced here:  http://www.tigraionline.com/articles/mining-sector-ethiopia.html

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By MIKIAS MERHATSIDK

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Kebede Biru, left, neighbor of the Togor family, shared his concern about their farm with Edawo Togor, son, Togor Beriso, father, and Dera Degaga mother, over a cup of coffee while Edawo’s son enjoys his tea.

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Descending down the Awash Valley, near Mount Sodere, lays a vast plain of land. It stretches out across both sides of the tarmac road that ends up at the gates of the Sodere Resort – a weekend hangout for urbanites. Up until recently, this was a landscape reminiscent of the destitution of its occupants, to a biblical proportion. Depending heavily on a sparse annual rainfall, the farming community lived for generations growing teff, sorghum, wheat and corn, just enough for the subsistence of family members.

A businessman from Adama, who has been driving to and from Sodere for almost the past two decades, recalls a place of deprivation, with a sun-scorched terrain sparsely populated by a small farming community.

That has all changed now.

The landscape has transformed beyond recognition, covered with green as far as the eye can see. The scene invokes optimism and promise, suggesting that a community of helpless farmers ought to be pleased. After all, the Wonji Sugar Estate has brought to their doorstep water for irrigation through canals; persuaded them to grow only sugarcane on its behalf and supplied crucial inputs, such as seeds, pesticides and fertilisers. Not only does the company provide them with a market for their produce, it also offers them jobs on their own fields in the meantime, until harvest season comes in a two-year cycle.

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Partial view of the 100ha of land covered with sugarcane in the Hulaga Weleka Kebele.

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That is, however, only the half of the story evident to casual observers.

A closer look reveals a community of close to 400 farmers, in the Hulaga Weleka Kebele, with deep misgivings over the awe-inspiring sight on their doorsteps. Some feel a sense of disenfranchisement from their property, which has been the target of little more than a “land grab” by those in the corporate world – all in the name of national development. The voices shared between one another tell a story of coercion in obtaining close to 100hct of land for the expansion of the sugar estate, where individual consent was an absent luxury. These farmers continue to harbor resentment to their loss, while claiming to be daily labourers on their own farmland.

A powerful sense of loss is felt by the family of Togor Beriso, 72, a father of seven who had been toiling on a two-hectare plot of farmland, located just a few metres off the road to Sodere, for 22 years.

Togor is one of the few farmers in the Ulalga Weleka Kebele of Adama Woreda – in the East Shoa Zone of Oromia Regional State – who has as much as a couple of hectares of land; many have one or two Qerch – a local measurement, equal to a quarter of a hectare. Despite the absence of unanimous consent over their plots, almost all of them have now entered into deals to exclusively grow sugarcane.

The government has spent a huge sum of money building this infrastructure, according to Atakilti Tesfay, general manager of the sugar factory.

“It’s not to grow tomato or onion,” he told Fortune.

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Most of the farmers in the Awash Valley are members of one of the 18 sugarcane producing cooperative unions.

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Grow they have for the last two years, living with a combination of hope and anxiety. But they are not alone in this. Togor, and nearly all of the farmers in the Awash Valley, are members of one of 18 sugarcane producing cooperative unions, all under the umbrella of the Wonji Area Sugarcane Producers’ Cooperatives Union, established in 2001.

The Factory – first established in the early 1950s, in a joint venture with HVA, a Dutch company – has been undertaking major expansion works in order to increase its production, with an investment of around 70 million dollars.

Part of this expansion, commissioned to an Indian company, involves the creation of a canal, diverting water from the Awash River – penetrating the Sodere Palace, to cross the asphalt road to the resort hotel, watering the vast land as far as Wolenchiti town. Farmers located near to where the canal passes are compelled to abandon growing cereals in favour of sugarcane, although a few, such as Mitiku Gedam, 31, find a way to supplement their income by growing vegetables in their backyard.

To date, the Wonji Union has over 3,000 members, with a total landmass of 7,000hct available for sugarcane cultivation.

The first ever harvest for farmers like Togor is yet to come, though it is expected in April or May, depending on how soon the sugarcane is ready for collection. They have waited for two years, earning 300 Br a month for a quarter of a hectare in the meantime, and working their respective plots in exchange for a daily wage of 30 Br. Their monthly pay is based on their past farming revenue, the size of their plots and their current cost of living, according to Atakiliti.

On the days there is no such labour work required, they patrol the estate in shifts to protect it from theft and damage.

On Thursday, March 20, Korbu Bedi, a father of four, was doing just that, half way through his 12-hour duty, idly watching over a 40-foot container in the middle of the sugarcane farm where pesticides and fertiliser are stored. He has half a hectare of land for which the Factory pays him 600 Br a month in compensation, and an additional 70 Br for watching over the container and farm twice a month. He also earns a little more money from his labour service, weeding the farm and moving the sprinklers three times a day, earlier during plantation and again once when the sugarcane is ready for harvest.

Korbu finds it impossible to support a family of six with such a meagre income and thus works as a daily labourer at nearby projects too. He is no different from the other farmers in the area, waiting apprehensively for what the result of a promise made by factory bosses two years ago would be.

“We’ve yet to see the result,” said Togor, sitting in the front yard of his thatched roof house, where his wife, Dera Degaga, is preparing an afternoon coffee. “We’re told a hectare could have 2000 quintals of sugarcane worth 32,000 Br.”

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Tracts of lands of sugarcane plantation are cultivated by farmers in the irrigated lands under the expansion project of the Wonji Sugar Factory.

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Nearby, in his compound, stands a traditionally made silo, empty inside, reminding him of his time farming cereals and grains – now a rare sight in the community. Once herding close to 50 cattle, he has now only three, which were out grazing up on the hill, according to his second oldest son, Edawo Togor, 24, a second year accounting student at Harambie University College, in Adama (Nazareth) town, 22Km north of his village.

On the two hectares of land inherited to his two eldest sons, his family may have produced sugarcane worth 64,000 Br. What comes to the family’s pocket may be nowhere near that amount, however. He and many in the community fear that the costs the Factory incurs in paying them for the 24-month period, as well as for the supply of inputs, will substantially deplete the revenue cooperative leaders have agreed with the Factory to split in half.

There is also an additional percentage that the cooperatives would take in collective savings and for the financing  of future community work.

Kebede Biru, another farmer who has two children, is one of many who fears that they may end up in debt, if their small plots do not produce as much as they have been paid for.

“We feel like we live on credit to be paid from our future income,” Kebede told Fortune.

The feeling of misgiving does, however, run much deeper. A Factory came to their farmland to order them to grow what it wants, but forbids them to use the water provided to their doorsteps for any other purpose than sprinkling the sugarcane. They still have to go to the nearby river to fetch water. Their children wouldn’t dare to feast on the sugarcane either, for a father of a child caught doing that would be subjected to a 100 Br fine, for one piece of stalk. Nor would any farmer dare to refuse to work on the farm, threatened with the potential loss of the plots they have.

“The farmers have an obligation to produce sugarcane and deliver it to the factory,” said Atakalti. “What can we do if somebody says he wants out after all of these investments?”

It is leaders of the Wonji Union who negotiate and sign deals with the Factory, every three years, on behalf of the cooperative members. With some of the cooperatives, such as the one in Dera Kebele, having started much earlier, the ninth agreement was made recently, with expectations that payments will be made at the beginning of April.

“The Cooperative strives to enhance productivity, minimise costs and facilitate markets,” said Teshome Abera, deputy manager of the wonji area Sugarcane Producers Cooperative Union.

This is a Union whose leaders claim to have a capital of close to 16 million Br, while its liquid assets are estimated to have reached three million Birr. The Union plans to build an ethanol processing facility in cooperation with the Factory and export 800 cattle this fiscal year, according to Teshome.

The cattle is planned to be collected from members of the cooperatives, such as Mitiku, who currently herds two oxen and three cows. He is pleased with the project, especially because his land is located in a kebele not known for its fertility.

“It is neither fertile nor wet enough to produce other cereals,” Mitiku told Fortune on Wednesday last week, while busy talking to other farmers inside the office of the cooperative where he is a member.

The Cooperative, whose establishment came after the construction of the irrigation canal in 2012, has 403 members, cultivating a total area of 230ha. Its members work in groups, but their production is measured based on the size of plot each owns.

Mitiku, for instance, has one hectare, from which around 2,300 quintals of sugarcane is harvested in one cycle. He also grows vegetables, such as tomatoes and onions, leasing a plot from farmers whose land was not included in the project, as they are located up on the hills. He does so to support his family and raise additional income. After receiving his last payment from the Factory this time last year, he has built a house with a roof made from corrugated sheets. Now he plans to buy more cattle and send his children to better schools in Adama.

“Our lives have changed for the better after we started the sugarcane production,” Mitiku told Fortune.

His is a story officials at the Ethiopian Sugar Corporation (ESC) say proves what the project is intended to do, in helping to assist both the national ambition and the local farmers.

“As a governmental development project, the main focus is on helping the community,” said Zemedkun Tekle, public relations head of the Corporation under the directorship of Shiferaw Jarso, a senior leader of the OPDO, a party governing the regional state. “The motive of this type of public project is not profit making.”

His Corporation has a grand vision of boosting national production to 2.25 million tonnes of sugar and 1.8 million metre cube of ethanol a year. It also plans to spread the six high yield cane varieties developed through research, in a bid to enhance productivity from 145 to 155 tonnes a hectare. Hoping to create job opportunities for more than 200,000 citizens at the end of 2015, the Corporation wants to realise the national ambition of exporting 1.2 million tonnes of sugar annually.

Developing the production capacity from the current 300,000tns a year is where its managers have dedicated much of their time. They project an increase in Ethiopia’s per capita consumption from six kilograms in 2009 to 11Kg in 2015. This is not only with the desire to close the gap of 200,000tns in demand, but also to make the country a net exporter of sugar.

While there are 10 sugar mills and estates under development, such as the one in Tendaho, Afar Regional State, enhancing the capacities of existing factories was made a priority. Wonji and Fincha are two of the three existing plants where the Corporation has been investing part of the 640 million dollars obtained in a loan from India.

The oldest of all, with an annual production capacity of 75,000tns, Wonji’s expansion was carried out 17km from the oldest mill, by the Indian UTTAM Sucrotech. The Factory is set to have the ability to produce 7,000 quintals of sugar a day, crushing 6,250tns of sugarcane cultivated not only on its own 20,000ha estate, but also by using the small hold farmlands of the thousands of farmers within a 100km radius.

Corporation officials defend the process by which these plots are made available to the Factory as “democratic and based on negotiations and discussions.” Atakilti says there was “continues consultation with the farmers, where every level of local administration was involved”.

“The process has been fully participatory,” Zemedkun agrees.

Neither would the farmers deny the existence of a consultative process before the decision was made to change what they grew on their respective plots. They contend, however, their lack of understanding in what was in store for them and blame their cooperative leaders for coercing with the interests of the estate.

Yet, these are farmers from the expansion project that have not yet started cultivation, due to delays in project implementation, according to Atakilti.

“This may explain their frustration,” he told Fortune. “There may be grievances here and there. It is natural in a project of this scale.”

Indeed, walking through the labyrinth of sugarcane, hardly any of the farmers in the Ulaga Welkawa Kebele feel that what is unfolding before their eyes belongs to them. Rather, it has become a project that has transformed an entire community from producers of what they consume to net consumers; from grains to merchandise sold in the market two kilometres from where they live. Makeshift kiosks are now sprouting up in the midst of the community, carrying items from yeast to edible oil, and soaps and tissue paper to hair oil, demonstrating the change in lifestyle.

One such kiosk, found by the main road, is run by Edawo, who sells a kilo of sugar, the very product that led to the loss of their plots, for 21 Br. How much of this goes back to their pockets is something none are prepared to tell for now.

Nonetheless, they will continue to cultivate sugarcane on their plots for the next two cycles, until the Factory allows them to rehabilitate their plots, growing grains in the fifth year. Even then, they will not be at liberty to pick their choice of grain, but will rather be forced to grow negro-beans, which agronomists believe will help to rejuvenate the land for another cycle of sugarcane plantations.

Sourced here  http://addisfortune.net/columns/sugarcoated/

By Dawit Tariku
Tigrai Onlne – April 24, 2014

In the all-out effort to realize the five-year Growth and Transformation (GTP), the FDRE government has finished the past three years (of the plan) with success. As it’s known, if the plan is to be realized within the planned schedule, it will surely play a major role in transforming the country from Agriculture-led to Industry-led development (strategy). Our country’s developmental government and people, who understood this fact, are exerting huge effort to make the plan successful.

There are many developmental sectors that are included in this plan; the Metal and Engineering Corporation or shortly known as ‘MetEC’ is the one and the main. In this article, I will try to walk my dear readers through the huge developmental works this huge corporation have done with regards to realizing its own goal that was set in the five-year Growth and Transformation plan (GTP).

But first, it’s important to look into the objective behind the corporation’s establishment and what’s it goals looks like. Metal and Engineering cooperation (MetEC); one of the developmental institution that was established to enable the industrial sector play a pivotal role within the Growth and Transformation plan, is a state-owned organization set up under council of ministers provision number 183/2002 with 10 billion birr capital with the aim of facilitating the country’s transfer into industrialization, and to facilitate the ground work for the industrial sector to take over the country’s economy, by coordinating the country’s technological capability and by following the path laid out by the government.

When this grand developmental institution was set up, it was with the objective of laying the groundwork for our country’s agriculture-led strategy to transfer into industry-led strategy. And it has goals outlined to help it realize this objective one of these goals is hugely curbing foreign exchange deficiencies by producing the metal machineries and spare parts that the country used to import from foreign countries (outside).

And with this, it has been able to create job opportunities by facilitating huge investments in its endeavor of ensuring rapid and huge technological transfer through strengthening local manufacturing factories capabilities.

In addition to this, it’s an institution that has the goal to link and support medium-scale and large-scale industries, to strengthen Micro and small Enterprises institutions by linking them with manufacturing and service sectors, to do a collaborative and supportive job in the hopes of taking them into the next development level by shoring up their procedural and technological capability, and to do and get involved in grand governmental industrial projects.

It can be recalled that, when the corporation was established based on the aforementioned objectives and goals, it was by operating many industries under it. And at this current time, these various industries numbers have reached 17. This grand governmental & development institution, by being the driving development engine of our country, it’s successfully carrying out its mission in the huge effort made to guarantee our march towards realizing our renaissance.

Under the government formulated five-year growth and transformation plan, the metal industry development institute, under the metal engineering industry sub-sector, aims to take national product to 104.1 billion birr; and to take metal consumption to 34.72 kg.

By increasing its capability to 95% by the end of the development plan, the corporation has a goal to support investors by locally producing the spare parts needed by the major industrial sub-sectors.

It’s obvious that it’s the five-year growth and transformation plan that will serve as the bridge that would lay the ground work for our country to transfer from agriculture to industry-led economy. And it’s also plainly obvious that in order for this process to be successful, the plans that are clearly laid out (outlined) at every sector should be executed.

In relation to this, it’s expected that the industry will record up to 20% growth annually (as its share) from the outlined goal of increasing National gross product to 11% (basic scenario) or 14.9% (best scenario). And compared to its current state, the economic developments implicates that it’s going very well.

The fact that the industrial sector recorded an 18.5% growth at the end of 2005 is an indication for this development. And with regards to this, out of the major undertakings the metal engineering corporation is supposed to take in the five-year growth and transformation plan, it’s currently carrying out its responsibility of producing power generating and distributing machineries, with flying colors.

So, looking at its three-year performance, it can be said that it’s satisfactory. Although the job description of the corporation concerns with all the power generating infrastructures, it’s currently taking 50% of the contractor responsibility in the construction of the ‘Grand Renaissance Ethiopian Dam’. And up to now, it’s doing things that are making the people and country proud.

Out of the three years performance of the corporation, the actions that stood out are the design improvement works done on the Hydro mechanical and hydraulic steel structure, and the increasing of the GERD power generating capability to 750MW, thereby increasing it to 6000 MW from the planned 5250 MW.

As we can recall, the corporation did this amazing   work only a year after the GERD project was made official. As a result of this design improvement, it was able to save 4 billion birr from the initial budget held for the dam project.

At this time,  there is a huge effort being exerted on producing electric power from alternative sources like wind, Geothermal and solar energies Metal and Engineering corporation, under its ‘Electrical power distributing transformers production and maintenance center’, is producing 20 transformers a day.

In addition to this, it has constructed a huge factory that would produce electric cables and wires in various shapes and sizes. Currently, it is in the process of installing 1200 tons worth of metal. At this time and moment where the dam’s project third year anniversary (since it became official) is being celebrated, the metal installation and concrete filling work is being done rapidly.

With regards to electro-mechanic machineries, two turbines and generators that are needed for the pre-power generating program are being done in collaboration with other manufacturing partners.

As its, known, the government’s main development and growth strategy centers around agriculture and the rural. Thus, in the five-year growth and transformation plan, the government and the people are exerting heavy effort into realizing the plan’s goal of increasing the agricultural output by double.

And the world is attesting to the fact that the government’s huge effort made together with the dedicated farmers and the whole people is bearing success.

The corporation is working hard by taking a huge role in moving up the agriculture and the economic sector. So, here it’s important to mention some of the works the corporation has done within the past three years.

The corporation has provided 5150 tractors, along with their full tools and in various models that would be put to use in small scale farm lands for farming. In addition to this, it has produced and provided 2394 farming tools to the farmers, which are giving huge help for the farmers to increase their production in double. In parallel with this, it’s producing centrifugal pumps along with their spare parts in various volumes.

The government has made it clear in the five-year Growth and development plan that, fertilizers plays an important role in increasing agriculture productivity by double. And in order to realize this, the corporation is currently building ten (10) fertilizer factories with the capacity to produce 300,000 tons each.

On top of this, the corporation is doing a research and experimental works to produce Biofuel, Biomass and synthetic kerosene that would replace the fuel consumption that’s taking its toll on our country’s economy. It’s in the process of preparing the necessary farm lands that would be used to gather the necessary plantations that would help this work start up.

Although, it can’t be said that it had moved into executing the plan, it can safely be said that the corporation is in some places replacing fuel by producing Jatropha plant in high quantity through technology.

This institution, which has a strong belief in its statement ‘our country’s usual buying and borrowing of technology should end’, is doing huge activities to enable our country have its own technology by learning the necessary technologies.

By understanding the level of our country’s technological capability, by studying our country’s actual and potential capability, and by linking the labor force ability and potential, the corporation is working hard to take our country to the needed technological level.

Having our government’s position of ‘our developmental projects should be carried out by our own citizens’; the corporation is carrying out practical works to realize it. Thus, it’s making huge effort to establish research and study centers in many of the industries. These research and creative results of the corporation are promising.

This institution with it ‘yes we can’ attitude not only reflects the government’s adhered path of building the developmental infrastructures by our own capabilities, it’s also playing its own role in enshrining developmental attitudes within the psyche of the public.

Truth be told, it can be safely said that the products and services the corporation is giving (producing), within these past three years of the plan have been thought to be impossible in Ethiopia. Nevertheless, the corporation’s commitment to undertake these activities shows the dedication it has towards realizing the technological transfer.

Especially, seeing as how the corporation is involved (out of the many others) in producing and maintaining engines, generators, solar panels, compact sub-stations and also in the making of wires and cables, it’s easy to see how much the institution is working in the technology transfer aspect.

As its known, transport is important in facilitating development; so the transport industry should be modernized and expanded. With regards to this, the corporation has produced and distributed city buses, Mini-buses and Midi-buses to various parts of our country, and it still is producing.

It’s also producing, both quality and quantity, pick-ups (with double and single cab), station wagons and motor bicycles that would serve governmental and non-governmental organizations, development and investment institutions and investors.

In addition to this, by producing trucks, dump trucks and Demo trucks, it has carrying its responsibility of lessening the problem associated with truck transportation.

Generally the institution by presenting 500 city buses, it has assembled, to Addis Ababa and other regional within three years only, it has made its own contribution of in lessening the country’s transport problem. Also the fact that it assembled 6000 of both heavy and easy construction machineries, and 109 trucks is another of its great works.

Not only this. It’s also involved in the government’s work to solve the country’s transport problem, in the construction of the train facilities for Addis Ababa light rail project and the huge cross–country rail projects and in the electric installation, and assembly and design of Addis light train project.

In addition to this, the rail trucks are being produced by the corporation. Recently, the government has made it official that the Addis Ababa light rail project is more than 50% completed; and at this juncture the corporation’s all-compassing support for this feat to be achieved should applauded.

I think its clear that the time is now to lay the base for the industry centers and the other developmental sectors, in our country’s effort to transfer its Agriculture-led economy to an industry-led one. It’s also obvious that it’s by building the capacity of the construction industry that this developmental aspiration can be realized.

With regards to this, the small and heavy construction equipment that is being produced by the corporation are becoming the solutions. These construction tools are strengthening the social and economic links of the people through expanding further the fast-growing construction industry (in our country) and by linking cities, sub-cities and rural kebeles. Out of its products Loader, forklift, Grader, dozer, roller, Damper, trailer and compactor are the main ones.

In addition to this, out of the works this institution is recording successful results relating to sugar factories construction and expansion works on existing sugar factories. At this time and moment, ten new sugar factories are being built in various regions of the country fastily.

When the construction of these factories is completed, they will be able to produce 250,000 tons of sugar. At the end of the Growth and transformation plan, they will help the sugar output reach to 2.25 million tons of sugar (from the current output of 300,000 tons of sugar).

Of course, notwithstanding the majority of our peoples’ huge effort exerted by standing next to its government, as they understood realizing this plan means taking the country into another whole level, and despite its promising start, it can be recalled that there were forces, that don’t want to see the development of Ethiopia and its people, who said this development aspiration is too broad, and cannot be realized.

Nevertheless, it’s safe to say that the government and the whole people will work to realize this grand transformation plan with all their might, especially looking at their successful three-year performance.

Despite all this very few forces have been seen blackening the aforementioned very small (out of much more) works of the Metal and Engineering Corporation, through unfounded rumors. These sides not only claim that the corporation won’t realize its plan, but also they claim that as the institution is entering in to every sector it will shrink the private sector.

But, what these forces don’t realize; courtesy of their narrow-minded outlook, is that our country was recording double digit economic growth for seven consecutive year, even before the five-year growth and transformation plan (GTP) started.

So, it would be naiveté to think the government would back down from the developmental growth that it’s recording, courtesy of its formulated policies and strategies.

As the corporation is part of this same people and government, there is no reason why it wouldn’t realize its own plan. As anyone has the right to be delusional (at their own peril and prerogative), I think everyone consider these side’s rumor as anything but serious.

In parallel to this, the corporation involvement in the entire developmental sector would not shrink the private sector – in fact conversely, it will strengthen the sector. The truth is the institution focuses and works on working and developing together, unlike what these development hindrances are spewing sitting from their corner.

It doesn’t have a vision to work or develop alone. In fact the corporation main objective is to support and develop other state and private institutions that would facilitate other technological transfers.

As far as I can understand, METEC’s objective is to realize the country’s renaissance by working with these private sectors, not to shrink and put them out of the game.

And currently, the fact that the institution is working together with more than 800 partners confirms this truth. All in all, it should also be mentioned that the corporation is transferring works that it shouldn’t work, to the private sector.

In addition to transferring these works, the corporation is also doing a great work of strengthening many micro and small enterprises. These actions of the institution is strengthening the private sector and building their capacity through industry–led developmental activities for them to help their country.

It’s not shrinking them as what some jobless are blabbering. It’s boosting them. Thus, seeing as how the huge works of the corporation includes not only giving (sharing) some of the works to the private sector, but also activities that would strengthen their capabilities (capacities), the blabber is pointless.

Of course, as the responsibilities entrusted on the corporation on the developmental plan are important, it’s inevitable that the huge projects that it has been and is doing during the past three years will be fully realized within the remaining periods of the plan.

This will enable it to play its own successful role in the successful realization of the five-year growth and transformation plan. The totality of the institutions’ and the other actors of the development plan will create an iron strong base for the effort to realize our country’s renaissance. It will near the time of our renaissance. So, the corporation by continuing with its current great performance, it should further roam into the future by facilitating the road to development.

Sourced:  http://www.tigraionline.com/articles/metec-successes.html

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ADDIS ABABA, May 4 (Xinhua) – Chinese Premier Li Keqiang and his Ethiopian counterpart, Hailemariam Desalegn, vowed here Sunday to strive for new progress in the development of the bilateral comprehensive cooperative partnership.

In his talks with the Ethiopian prime minister, Li lauded the profound traditional friendship between the two countries and the steady deepening of bilateral cooperation, expressing the hope that his visit will further consolidate China-Ethiopia friendship and steer China-Ethiopia and China-Africa relations toward new achievements.

Noting that strengthening bilateral cooperation serves the fundamental and long-term interests of both sides, Li stressed that his country stands ready to make concerted efforts with Ethiopia to maintain the momentum of high-level mutual visits so as to further cement mutual political trust.

The two sides, Li proposed, should prioritize cooperation in infrastructure construction and development of energy and resources while expanding mutual beneficial collaboration in such fields as light rail and highway construction.

Beijing supports Ethiopia’s efforts in establishing special economic zones and industrial parks, and is willing to share experience with Ethiopia in this regard in an unreserved manner and transfer to Ethiopia industries and technologies that suit the development needs of local communities, added Li.

China will continue to encourage Chinese enterprises and financial institutions to invest in Ethiopia’s domestic construction, Li said, adding that Beijing hopes that the Ethiopian side will provide a better business environment and investment facilitation measures for Chinese firms.

Meanwhile, China is also ready to work with Ethiopia to boost cooperation in such areas as culture, education, health, technology and tourism, and enhance bilateral communication and coordination on major global and regional affairs so as to safeguard the legitimate rights of development countries.

For his part, Hailemariam extended a warm welcome for the Chinese leader, saying the comprehensive cooperation between Ethiopia and China has promoted Ethiopia’s economic growth and transformation.

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Thanking China for its long-term, sincere and selfless assistance, he said Ethiopia is ready to further strengthen high-level engagement with China and work with China to map out a future strategic plan for bilateral cooperation.

Ethiopia, he added, welcomes more investment from Chinese enterprises and is willing to provide them with more facilitation measures. African countries will carry out closer cooperation with China under the frameworks such as the China-Africa Cooperation Forum, and join hands with China to play a more active role in global and regional affairs, he said.

After their hour-long talks, the two leaders witnessed the signing of several cooperation deals covering such areas as technology, industry, infrastructure and finance.

“I believe the cooperation between China and Ethiopia will bring real benefit to the two countries and two peoples,” Li told reporters after the signing ceremony. “We are willing to see Ethiopia moving fast and steadily on the track of development and make greater achievements in its efforts of poverty reduction.”

Hailemariam described his country’s ties with China as “strategic,” and hailed the development of bilateral relations over the decades.

China is the largest developing country and Ethiopia is one of the fastest growing economy in the world, he said, adding that the two countries share a “common destiny” and should work together to achieve common development.

At a joint press conference after the signing ceremony, Li pointed out that the destinies of China and Africa, which have always supported each other and treated each other as equals during the course of national liberalization and construction, are closely linked.

“We believe Africa deserves an important place and should have an important role in the international political landscape,” said the Chinese premier.

Noting that China is the world’s largest developing country and Africa is the continent with the highest ratio of developing countries, Li said the two sides are in pursuit of common development.

Cooperation between the Asian giant and the land of hope, he said, will not only bring forth mutually beneficial and win-win results, but also help promote world economic balance and inclusive growth.

China-Africa relations also feature exchanges and mutual learning in terms of civilization and culture, Li said, adding that respect and learning between different civilizations and cultures is conducive to diversity of world civilizations and multi-polarization.

Also speaking at the press conference, Hailemariam said Africa and China share a common destiny, noting that Ethiopia-China and Africa-China relations are built on mutual trust, mutual understanding and mutual benefit on an equal footing.

Ethiopia, he added, is ready to learn from China’s development experience and continue to deepen bilateral strategic cooperation in the fields of politics, international affairs, economy and people-to-people exchange so as to uplift the bilateral comprehensive cooperative partnership to higher levels.

Li arrived here earlier in the day for an official visit to the East African country, during which he is also to pay a visit to the African Union headquarters and deliver a speech there to expound on China’s Africa policy.

The Horn of Africa country is the first leg of Li’s four-nation tour, his first to the promising continent since he took over the Chinese premiership in March last year. He will also visit Nigeria, Angola and Kenya.

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Sourced here  http://news.xinhuanet.com/english/china/2014-05/05/c_126460677.htm

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Statue of emperor Haile Selassie teaching 12 students at the National Museum of Ethiopia in Addis Ababa. Picture: Stephen Scourfield

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There’s a little drum riff, the brass section comes in on the off-beat, then there’s Bob Marley’s unmistakable voice . . .

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Until the philosophy which hold one race superior . . .

And another inferior is finally and permanently discredited and abandoned . . .

Everywhere is war . . .

It’s Marley’s song War, a powerful anthem for equality, and the lyrics are mostly the words delivered by Ethiopian emperor Haile Selassie to the United Nations General Assembly in June 1963.

The emperor had ended his list of unacceptable inequalities across Africa with the words “the African continent will not know peace”, but Marley introduced the word “war”.

Despite his death from cancer, Marley is still the most visible devotee of the Rastafarian movement which, though more associated with his home country of Jamaica, has its roots here in Ethiopia.

Emperor Haile Selassie I took this name as the ruler of what may be described as the world’s original country (the country in which human ancestors developed, and which we first walked out of), but his original name was Tafari, and “ras” means “head” or leader.

He was born in 1892, crowned emperor in 1930, but lived in exile during the brutal Italian occupation of Ethiopia from 1935 to 1941 – some of it staying in the Abbey Hotel in Malvern, Worcestershire, while his daughters attended Clarendon School in North Malvern (I was later nearby at North Malvern Primary School).

During his time in Malvern he attended services at Holy Trinity Church, in Link Top (where, incidentally, my mother and father were married and opposite my grandfather’s pharmacy).

When Haile Selassie returned as emperor of Ethiopia in 1941, he set about modernising the country.

Political opposition, rising unemployment and famine are seen as contributing to him being ousted in 1974 by a Soviet-backed junta led by Mengistu Haile Mariam which, it is believed, finally killed him.

So, how does the music of Jamaica, and Bob Marley in particular, fit into all that?

Many Rastafarians believe that Haile Selassie was God incarnate, or the reincarnation of Jesus Christ.

Indeed, in her book No Woman, No Cry, Marley’s wife Rita, also a Rastafarian, claimed she had seen a stigmata on the palm of Haile Selassie’s hand, resembling the marks left by Christ being nailed to the cross, as Selassie waved to crowds during his visit to Jamaica in 1966.

Other Rastafarians might just see him as God’s chosen king on Earth.

In using his words, Marley furthers the two aspects of the emperor – as head of State and as the living God of Rastafarian belief.

Haile Selassie’s shadow can still be seen in Ethiopia, though some Ethiopians I talk with comment that it may be the long-time ruler Meles Zenawi, who died last year, who did even more in advancing the country than the former emperor.

Haile Selassie’s tomb is alongside that of his wife in the Holy Trinity Cathedral in Addis Ababa.

And the last words to Emperor Haile Selassie – some of the words from that speech to the UN in 1963, used in Marley’s song . . .

. . . until there are no longer first-class and second-class citizens of any nation; that until the colour of a man’s skin is of no more significance than the colour of his eyes; that until the basic human rights are equally guaranteed to all, without regard to race; that until that day, the dream of lasting peace and world citizenship and the rule of international morality will remain but fleeting illusions,

to be pursued but never attained . . .

until bigotry and prejudice and malicious and inhuman self-interest

have been replaced by understanding and tolerance and goodwill;

until all Africans stand and speak as free beings, equal in the eyes of all men,

as they are in the eyes of Heaven;

until that day, the African continent will not know peace.

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Sourced here  https://au.news.yahoo.com/thewest/travel/a/23327284/the-legacy-of-haile-selassie/

A British court has ruled that HM Revenue & Customs acted unlawfully and irrationally in refusing to disclose information on the status of an investigation into the export of a UK-based spyware to repressive regimes.

May 12, 2014

A British court has ruled that HM Revenue & Customs acted unlawfully and irrationally in refusing to disclose information on the status of an investigation into the export of a UK-based spyware to repressive regimes.

HMRC, the body responsible for enforcing export regulations, claimed that it was prohibited from revealing information about any activities relating to the exports of British Gamma International’s FinFisher surveillance technology.

It was repeatedly asked by Privacy International to reveal whether it had started an investigation into Gamma International, following documentary evidence that it illegally exported surveillance technology to suppressive governments including Bahrain, Ethiopia, Egypt and Turkmenistan.

But HMRC refused to provide any details. It said it was “statutorily barred from releasing information to victims or complainants”, the High Court heard.

Justice Green found that HMRC committed a serious error in not providing information about whether it was investigating Gamma International. The court described the actions of HMRC as irrational and inconsistent with the legislation.

It pointed out that “the rationale which justifies the provision of information by HMRC to the press applies in large measure to disclose of information to pressure groups and other NGOs”.

The court also established the principle that NGOs and pressure groups such as Privacy International “acts as guardians of the public conscience”.

Privacy International’s deputy director Eric King said: “For two years we have been asking government to come clean on what they are doing when it comes to the illegal export of FinFisher and to stand up for victims targeted by surveillance technology made on British soil.

“Today’s ruling is an important victory and step in the right direction to holding Gamma International, and the rest of this secretive industry, to account.”

FinFisher is a sophisticated government spying software used by many countries to monitor dissidents, journalists and human rights activists. The products secretly install software in a target’s computers and mobile phone.

 

A Map of the FinFisher servers around the globe which are now found in 36 countries including the UK and US. (Credit: Citizen Lab)

Privacy International explains:

Once the user installs the software, victims’ computers and mobile devices can be taken over, the cameras and microphones remotely switched on, emails, instant messengers and voice calls (including Skype) monitored, and locations tracked. Investigations have revealed that such technology has been used in monitoring and tracking victims who are subsequently subjected to torturous interrogations.

The spyware suite is sold as a “governmental IT intrusion and remote monitoring solutions”. It operates in at least 36 countries according to the latest Citizen Lab report, including Bahrain, Egypt and Turkmenistan.

The judgment said NGOs and pressure groups acted “as guardians of the public conscience”

http://abbaymedia.com/2014/05/12/a-british-court-has-ruled-that-hm-revenue-customs-acted-unlawfully-and-irrationally-in-refusing-to-disclose-information-on-the-case-of-finfisher/