-    To focus on sugar, maize purchases

The newly-established and a European Union (EU)-funded consortium on food security and nutrition worldwide concluded on October 9 its second three-day meeting at the International Livestock Research Institute (ILRI).

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At the House of Peoples’ Representatives session held on Thursday October 19, Prime Minister Hailemariam Desalegn clarified the newly elected president Dr. MulatuTeshome’s presentation of the government’s main guideline for this budget year.

The president had laid out the plan during his introductory speech at the opening of the joint session of the House held on October 7. Responding to queries from the MPs, Hailemariam explained in detail, his government’s plan and deeds from agricultural performance to the ambitious housing project of the city. He also lashed out against the opposition parties claiming that they are headed in the wrong direction. MP’s, including the lone opposition party representative Girma Seifu raised points of concern on the President’s presentation that they think should be amended or commended

Agriculture

PM Hailemariam asserted that the government’s plan introduced in the agriculture sector in the previous mid- year season has managed to mobilize all the Kebeles all over the country and is expected to bear fruit in the next harvest season. “The President’s recognition of farmers and development station workers is commendable as the forecast for the harvest season shows a big boost in production,”

Hailemariam defended the President’s claims, which were questioned by the MPs. “Nowadays regional governments are installing modern irrigation systems on their farms. This has come from years of hard work and we are pushing forward to make it more modern as we want to develop the back bone of the economy,” he pointed as an example. Hailemariam is also confident that the ‘green revolution’ is on the right track and will be achieved in the sector.

Manufacturing

Hailemariam also stressed the need for boosting the manufacturing sector. He said that it is the government’s focal point to help reinforce the economy in a dramatic way this budget year. “We are now intensifying our push to get investors involved in the manufacturing sector. The government is creating a conducive environment for investors that will be involved in the sector,” Hailemariam noted responding to MP Girma Seifu’s inquiry. “We are also calling for investors to use our agricultural products as their major input for manufacturing as that will directly boost the capacity of farmers in the country.

In this scheme we are focusing on facilitating the proper channels so the two sectors can cooperate in a way that helps both,” Hailemariam added. “The manufacturing sector will be vital to the growth of the economy in the near future and the role it plays will be a major one.” “We don’t want to import items that can be manufactured here easily,” Hailemariam said stressing the primary focus the government is giving to developing the sector quickly.

SME’s

As to questions raised in connection to the growth of Small and Medium Scale enterprises, Hailemariam affirmed that SME’s are creating job opportunities benefiting the lower class population. “These enterprises are manufacturing various things. They should be supported more, so that they can grow to a bigger level of manufacturing,” Hailemariam said. Defending the government’s program on SME’s to claims that people are using the loans provided for SME’s for their personal use he said,“some people who are included in SME’s  programs are rotten oranges. The main thing is to differentiate these rotten oranges from the good ones. But the main thing is that most of them are really growing. But there are some that cannot be good enough for the public. But these few cannot be considered as a failure when we see the majority of SME’s.”

Housing

“My government and I believe that the housing projects will greatly ease the housing problem in the city. The government is subsidizing the total investment for the construction of these houses,” Hailemariam said stressing the project will be completed according to plan and is not a way of collecting money from the public to be transferred to fund other mega projects. “For example when we take this year’s statistics, the public managed to save 2.5 billion birr but the government will subsidize the rest of the7.5 billion birr that will be used for the construction of the houses under the 40/60 and 20/80 housing loan schemes. These figures do not include the lease prices of the plots the houses are to be built on,” he said.   “The main aim of the government is to solve the critical housing problem. We have already constructed 285,000 houses in the past few years. We are confident that we will complete the housing project according to our plan in the coming two years as we have looked into the obstacles we faced during previous construction projects and identified the problems that deal mainly with management,” Hailemariam added saying a council has been set up to solve the issue in a professional manner.

The Premier also responded to the criticism of offering units to the Diaspora community that can afford to construct or buy houses in any part of the city, without the support of the housing scheme. “The Diaspora community in China, Philippines and India greatly contributed to the development of their countries. We have to use their methods and try to attract the Diaspora community to our country.   “For instance 300 doctors are planning to construct a state-of-the-art hospital here in the country on a plot allotted for them. This alone will help the country in skilled man power and technology transfer in the health sector,” Hailemariam said. “So we have to offer these Diaspora communities some incentives that will increase their commitment. It’s not the money they send that we want, it’s their expertise. So we should take such kinds of initiatives and encourage it more and more,” Hailemariam added.

He further noted that his government is praised by other governments for its programs and projects that subsidize sectors that support the lower class of the population. “One of these projects is the housing project,” he said.

Migration

The President, in his opening speech had said that focusing on creating awareness should be maximized so as to minimize the migration by creating more job opportunities in the country. Starting from the last budget year the government has aggressively tried to address the issue of migration and creating awareness among the public. Hailemariam said that the government is trying to reverse the severe problem created in the country through different initiatives. “26 percent of the total population is living under extreme poverty. It is not exceptional if people are migrating in large numbers. However the migration sometimes does not relate to economic issues. Even well educated and skilled professionals will migrate because they are not interested to work and develop the country together with the general public,” Hailemariam said. “Although huge milestones have been reached, we did not totally eradicate poverty. We have to work harder and focus on areas where we can be doing more,” he added.

Water

Even though the administration claims to have 80 percent coverage within the city of Addis Ababa, the supply of potable water remains a big challenge for the residents that complain they are sometimes out of water for several days. Despite severe water problems and common cases of water shortages in the city, Hailemariam claims that the water coverage in Addis Ababa is increasing over time and that now 65 percent of the population gets supplies of potable water 24 hours a day. “The other 20 percent of the population gets five days of potable water in a week and the remaining 15 percent get access to water once a week or in a fortnight,” Hailemariam asserted. “As we are working to solve this problem, we are finalizing the study for the construction of the Gerbi Dam,” the Premier announced. “This project [which has been lagging for the last ten years and is located around Sullulta] will solve the problem of water in the city,” he asserted. “This year we have devised a detailed plan to resolve other infrastructural problems in the country step by step.

Our plan is vast and it is back breaking but we are determined to complete what we have started. The public is also supporting us in every project we are implementing. It also criticizes our failure when we are wrong, but we will solve the problem with the public together,” he added.

Export Performance

Hailemariam also gave details on the government’s plan to earn five billion dollars from exports. Last year’s revenue performance was very poor and the country managed to collect 3.1 billion dollars out of the target of 4 billion dollars in revenue. “Last year we intended to earn 4 billion dollars from exports. However, the weaker world economy heavily impacted our performance. For example, the price of our main foreign exchange earner, coffee, plummeted on the international market. Even though our exports have increased in quantity, the low price it fetched on the international market affected the earning heavily. This is beyond our control and we cannot do anything about it,” Hailemariam said further detailing his government’s plan for this year.  “The trend this year also shows signs of a declining price for coffee but we aimed to earn 5 billion dollars this year. Our main focus is the manufacturing industry. Most industries in the country manufacture below their capacity and we are now supporting these industries to manufacture more and export their products more. With this plan we can achieve our target.”

The 2015 Election and opposition parties

Hailemariam gave a stern warning to opposition parties that are ‘trying to destabilize the development activities of the country’. “Registered opposition parties have their ways of undertaking their activities. Illegal parties that are labeled as terrorist organizations also have their ways. The government also has its way to prevent these actions accordingly”, Hailemariam said. “The government will respond in the same way when terrorist groups try to oppose it.  However the government will work with legally registered opposition parties in conducting a free and fair election,” he added advising the opposition parties to back away from their ‘recent activities of creating chaos’. “The government considers it a great opportunity for the opposition parties to exist. Their existence will support us in the endeavor of building a democratic nation. The opposition parties should convince the government that they are committed to the process of building the nation,” he said.

Still, he insisted the opposition parties should agree and sign the code of conduct with the ruling party so as to work together. “Otherwise it will be useless to talk again and again,” he said. “We know for a fact that some opposition parties are trying to create havoc in the country by collaborating with terrorists. This will not help the development strategy of the country,” Hailemariam said stressing that the opposition should not interpret his speech as a sign of fear. “The government has not been afraid of anything and will not be afraid of anything. We want to collaborate with parties that are legally registered, and that’s the whole message,” he cautioned. Hailemariam also said that there are no opposition leaders or activists jailed in the country. “Those arrested are charged with terrorism and terrorism is the most horrible crime against humanity, so they don’t deserve a pardon,” he affirmed, explaining that the government has the responsibility of upholding law and order in the country.

sourced here:  http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3648:hailemariam-fires-back&catid=35:capital&Itemid=27

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Oct 25,2013

ADDIS ABABA, Oct. 24 (Xinhua) — Ethiopia and China have been enjoying extensive cooperation, especially in the agriculture sector, said Tefera Deribwe, Ethiopian Minister of Agriculture, noting Ethiopia is keen to further strengthen the existing cooperation in the sector.

Tefera and Han Changfu, Chinese Minister of Agriculture, on Thursday met in Addis Ababa, Ethiopia, and discussed ways of further strengthening cooperation between the two countries in the agriculture sector.

The two officials signed documents to strengthen the existing cooperation and enhance activities including new initiatives in areas of agriculture research, extension, agricultural vocational training activities, demonstration and training centers as well as deployment of Chinese experts in agricultural technical and vocational training centers.

The Ethiopian minister told reporters that Ethiopia and China have been cooperating bilaterally in the area of agricultural technical and vocational training, whereby Chinese experts have been deployed in Ethiopia since more than a decade back to train Ethiopian development agents.

Currently, about 30 Chinese experts have been deployed in the four regions of Ethiopia, including Ahmara, Tigray, Oromia, and the southern region, where the Chinese transfer knowledge, skill, and technology to Ethiopian experts, according to the minister.

He also stated that under the South-South cooperation, Ethiopia and China have cooperated and established agriculture demonstration and training center, which is designed to serve not only Ethiopia but also other African countries.

The center is at its final stage and it will commence providing training to development agents, farmers and experts in a couple of weeks time, said the minister, adding experts from different African countries will come to the center for training.

“It is mainly skill training center, which will definitely contribute a lot to our capacity building activity in the agriculture sector,” said Tefera.

He further noted that his country is working with Chinese partners to establish African Bamboo Training Center in Ethiopia, which will enable Ethiopia to tap its bamboo resource and potential. “Our resource in terms of bamboo is first in Africa. But, we are not able to tap this huge potential and resource so far. So, we would like to use our resource; to this end, we are given the opportunity to establish this training center and we are working with our Chinese partners,” said Tefera.

He said Ethiopia would like to take the existing cooperation with China in agriculture further forward as the Chinese have agricultural technologies that definitely transformed their agriculture.

sourced here  http://www.shanghaidaily.com/article/article_xinhua.aspx?id=175547

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IMF applauds Ethiopian government’s efforts to reduce poverty

The International Monetary Fund (IMF) applauds Ethiopian government’s efforts to reduce poverty and improve the living standards of its citizens.
IMF country representative Jan Mikkelsen said the public sector led development model of Ethiopia has been effectively reducing poverty.
“We agree that the public sector led development strategy that Ethiopia is applying has led to robust economic growth in Ethiopia and has also led to poverty reduction,” Mikkelsen told WIC.
However, he said, the government needs to give enough room for the private sector to sustain the growth.
Mikkelsen also commended the government for containing inflation to single digits which he said is in line with the IMF views. The IMF and the government agree that policies need to be put in place to keep inflation 7 to 8% where it is now.
“We support efforts to contain inflationary pressure by tightening monetary and fiscal policy to sustain the single digit of the inflation so that it cannot harm the economy” he said.
“The Ethiopian economy continues to grow at a robust pace, poverty continues to fall, and inflation, while still high, has been declining. The expansion in economic activity has been supported by robust export growth and public enterprise investments. Tight monetary and fiscal policies have contributed to the deceleration of inflation, which also reflects declining international commodity prices”.
Mikkelsen said Ethiopia has registered dynamic economic growth in the past, particularly in the infrastructure, education, health and other key sectors.

http://www.waltainfo.com/index.php/editors-pick/11055-imf-applauds-ethiopian-governments-efforts-to-reduce-poverty

Ethiopia and Russia to Boost Cooperation in Agriculture

State Minister for Foreign Affairs, Dewano Kedir, met on Thursday (October 31) with a Russian delegation headed by the Deputy Minister of Agriculture of the Russian Federation, Mr. Ilia Shestakov.

The two ministers discussed on agricultural cooperation within the framework of the outcome of the G8 group meeting and the new “alliance for food security and nutrition in Africa”. Mr. Shestakov, who also met with Minister of Agriculture, Tefera Deribew, during his visit, explained details of the planned agro-machinery park to be built in Ethiopia by the Russian Government.

This, he said, would be would be helpful in providing consultancy and supplies of machinery for the support farmer’s unions which are composed of small-farm holders. The Deputy Minister added that the project will be of great importance overall in modernizing agriculture, improving productivity, transferring technology, delivering agricultural equipment and training agricultural specialists. State Minister Dewano explained Ethiopia’s agricultural policy, focusing on areas where cooperation with Russia is most needed.

The State Minister noted that this cooperation can help Ethiopia’s efforts to ensure food security as well as increase exports of agricultural products and in particular possibility of exporting horticultural products to Russia. In addition to agricultural cooperation and trade, the State Minister stressed that Russian investors could take advantage of Ethiopia’s investment incentives, its wide market and its fast-developing infrastructure.

The State Minister underlined the historic and cordial relationship between the two countries, and was pleased to be able to tell the Russian delegation that a site in Addis Ababa was now ready to erect a monument to Alexander Pushkin. Pushkin, a great Russian author and poet, is believed to have been of Ethiopian descent, and he is, the State Minister added, a symbol of the close and long standing relationship between the two countries.

http://allafrica.com/stories/201311011059.html

China grants scholarships to 52 Ethiopian students

China has granted scholarships to 52 Ethiopian students this year to sponsor their study in civil engineering, architecture and political science in China, according to Chinese embassy in Addis Ababa.

These students, who will leave for China within a month, will be attending courses in undergraduate, postgraduate and PhD degrees, said Song Yanqun, cultural counselor of the Chinese embassy, to journalists.

It is a significant step taken by the Chinese government to honor its commitments made at the Beijing Summit of the Forum on China-Africa Cooperation in November last year, said Song.

China pledged at the summit to increase the number of Chinese government scholarships to African students from 2,000 per year to 4,000 per year by 2009 as part of China’s commitment to strengthening cooperation with Africa.

State Minister Ambassador Berhane confers with a Danish parliamentary delegation 

State Minister Berhane met with a delegation of Danish Parliamentarians led by Mrs. Maja Panduro on Thursday (October 31, 2013), and underlined Ethiopia’ desire to further broaden and deepen the broad and strong bilateral relations the countries enjoyed. The delegation, citing Prime Minister Hailemariam’s participation at the recently concluded Climate Change Conference in Copenhagen, expressed its admiration for Ethiopia’s commitment to green growth. It noted that Danish businesses had been impressed with Ethiopia’s potential during meetings with Prime Minister Hailemariam at the margins of the conference, and referred to the huge opportunities for Danish businesses in Ethiopia and the potential for Ethio-Danish cooperation. Discussions covered issues related to Ethiopia’s role in the African Union, the Inter-Governmental Authority for Development (IGAD) and on ways to realize regional integration in Africa. Ambassador Berhane briefed the delegation on Ethiopia’s activities in support of strengthening the AU and its efforts to build regional integration as sub-region bodies were the building blocks for continental. He detailed the ways Ethiopia was working to resolve conflicts in the region, and suggested Denmark could help Africa most by capacity building for  Africa’s young labor force and by increasing investment in a continent which was going to be the next global growth pole.

http://www.mfa.gov.et/news/more.php?newsid=2658

IGAD, East African Community to merge

The Intergovernmental Authority for Development (IGAD) and the East African Community (EAC)  members’ Foreign Ministers discussed the possible merger of the two regional economic communities in a bid to establish a bigger economic coalition, which will speed up the integration process and ensure greater economic development and prosperity for the peoples of the East Africa Region.
Foreign Ministers of Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan, and Uganda and the Minister of Justice of Burundi, met here in Addis Ababa on October 12 at a side event of the 15th Extraordinary Summit of Heads of State and Government at the African Union.
The Ministers deliberated on a range of issues that are of common interest and concern to the Eastern Africa Region.
At this consultative forum, the merger of the two communities is said to possibly establish a bigger economic coalition which will speed up the integration process and ensure greater economic development and prosperity for the peoples of the Eastern Africa region, according to the information obtained from the Ethiopian Ministry of Foreign Affairs (MoFA).
Dina Mufti (Amb.), spokesperson of MoFA, told journalists at the regular bi-weekly press briefing that the talk of union between these two communities of the same region is the first of its kind. “This is the first initiative between the IGAD and the EAC,” Dina said.
Heads of state of these two communities agreed that the preparation work should be laid out immediately in order to facilitate the union, according to Dina.
Seven members of the IGAD, which has a vision of achieving peace, prosperity and regional integration, have already started working on the integration via the Championship program, which focuses on infrastructure development, according to Dina. Ethiopia, for instance, is trying to improve its [economic] integration with Djibouti, Sudan and South Sudan, according to the spokesperson. “With Djibouti, it is trying to integrate via electric power and railway. We are building roads that connect Ethiopia to Sudan and South Sudan,” he told journalists.
IGAD, which has the objectives of promoting joint development strategies and gradually coordinating macro-economic policies and programmes in the social, technological and scientific fields has eight original member countries. Eritrea, however, isn’t actively engaged.
Some countries are members of both communities.
According to MoFA, the ministers welcomed the increasing trend of consultation and collaboration between the member states of IGAD and the EAC and stressed the importance of fast-tracking regional integration in the East Africa region in line with the Constitutive Act of the African Union and the Abuja Treaty establishing the African Regional Economic Communities.
According to Dina, the Ministers deliberated on a range of issues, including the Westgate Shopping Mall terrorist attack in Nairobi, the decision of their heads of state in relation to the International Criminal Court (ICC), and the significant progress made in Somalia, on both the political and security fronts.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3678:igad-east-african-community-to-merge-&catid=35:capital&Itemid=27

Bole Lemi Industry Zone construction accord signed

The Ministry of Industry signed on Thursday Bole Lemi 2nd round Industry zone construction with various contractors. The construction agreement was signed with 14 contractors and a consultant engineer.

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Fortune: After conducting three rounds of negotiations for its accession to the WTO, Ethiopia is preparing to submit its service offers to members of the WTO. Are you hoping that the accession process will be concluded in 2014?

Anarcha Gonzalez: The short answer would be whenever Ethiopia feels it is ready to do it. The longer answer, on the other hand, will be that any accession is a process.

Accession to the WTO is a process which mirrors the opening up of a domestic economy. If a country quickly opens its economy, it can become a member of the WTO quickly. If it does so gradually, then the process of becoming a member drags on.

For an accession to be successful, the best recipe is to make sure that a nation anchors up its accession to a set of multilaterally agreed rules. The most important thing is that you synergise the accession process with your own view of where you want to go.

Q: According to some political observers, the Ethiopian government is taking time to open up for fear of losing some of its political leverage. How committed do you think the government is to opening up?

It is committed to the accession, I would say. But the difficulty for the Ethiopian government, in my view, is not whether or not it is committed.

The difficult question is rather how it manages the process of opening up with the process of strengthening the industrial base in the country. The government has to work with two parameters.

One is opening up its economy to international competition. This is good, if done in a smart way. That is because it helps to ensure quality, improve standards and ensure there is access to imports. It is also good for consumers because it lowers the cost of purchasing goods.

But all of this can be successful if there is another component, which is a process of making the Ethiopian industry more competitive in the national economy.

What does this mean?

The Ethiopian government has to make sure that if it exposes the industrial sector to greater competition, there is a proper programme to help industries in Ethiopia, most of which are small and medium enterprises, to be more competitive in order to sustain the greater pressure that comes through the opening up of the  national economy. Another is to make sure that they receive benefit from the opportunities that come from abroad.

Q: Opening up needs more skills, compliance with global rules and becoming competitive. Even more than that, it needs giving up some sectors.  To what extent do you say that the Ethiopian government has met these conditions?

They are met only to a certain extent. That is exactly what the Ethiopian government is engaged in at the moment.

A bigger portion of what Ethiopia can do in the coming years is working on a programme that targets boosting the competitiveness of the economy. I think what they have done in terms of infrastructure is also part of the competitiveness drive.

But you do not build this in one year. You do not build this in five years either.  It is a longer term perspective.

Q: One prominent issue in the accession to the WTO is the negotiating capacity of countries. It is natural for these countries to feel weak when they are small. The ITC is also involved in upgrading capacity among African countries. How do you assess the negotiating capacities of countries? Do you feel they are capable of negotiating while still maintaining their safeguards?

If I look back at the first time I came to Ethiopia, which was during the end of the 1990s, and if I compare the capacity of trade negotiators then and now, it has significantly improved. This is because there has been a concerted effort from the side of the international community to ensure that there is training to those who are involved in negotiating.

The WTO spends 20 million dollars every year training civil servants from national governments. The ITC also trains an incredible amount of trade supporting institutions every year. We are improving the negotiating capacity of negotiators, in order to participate meaningfully in any negotiations.

But, having said this, it is pretty obvious that we are far from reaching a point where everyone is embraced. It is a gradual process. We are better than 10 or 15 years ago, but much more remains to be done.

Q: Is Ethiopia benefitting from such initiatives?

Yes, I just spent two hours in the Ethiopian Chamber of Commerce & Sectoral Association (ECCSA). I was discussing with officials about the ITC Reference Centre. It is a centre that contributes to building these capacities. They get materials and resource on trade promotions.

That would be very helpful to them in their negotiating capacity. The answer is very clearly, yes. We are contributing every year with different means and through different products to helping build the capacity of governments, institutions and SMEs.

Q: Certain sensitive sectors often become difficulties in trade negotiation processes. The telecom sector in the case of Ethiopia could be taken as an example. How could countries open them up, when the sectors matter most to them?

In every country that is undergoing the process of accession, or even bilateral negotiations, it is a problem. I myself was a negotiator in Europe and I can tell you that certain sectors are very sensitive.

Agriculture proved very sensitive at the time. So did the automobile industry. This is because these were sectors that were more protected than others, since there is either a vested interest or political interest to protect that sector from international competition.

Ethiopia is no exception. Like every other country, there are sectors of the economy that are more sensitive. Telecommunications is an area that the Ethiopian government is very sensitive about opening up.

Generally, the way it would work is through a process of accommodation on both sides. The principle of the WTO is opening trade. It is by no means trade closing or maintenance of the status quo.

People understand that in this process of trade opening, you have to understand the other party. So you agree to open in a more gradual manner, of course, not fully opening it up. But you assert a certain degree. I do not see anything surprising about Ethiopia’s stance on sectors like telecom.

At the end of the day, what governments need to do is to weigh up the different interests at stake. There is the interest of consumers, that of producers and that of the state.

So, my message is that it is not an impossible thing to do. You certainly can do it. But you have to weigh up the different interests. In any negotiation, it is about explaining to the other side why you draw a red line on the sand and convincing the other party about why you are drawing it and where you are drawing it.

Q: Some opine that it is a matter of ideology and opening up forces countries to cede even their safeguards. Do you agree?

No! I certainly do not agree. The WTO is a sufficiently flexible organisation, housing many different ideologies provided you accept one condition, which is that trade opening is good. That is what unites all members of the WTO.

If you look at their ideologies, some are more conservative, some are more liberal, some are more left-wing and some are more right-wing. In spite of these differences, all fit in to the WTO.

We do not exclude anybody. You have got China, Vietnam, Russia and many others together. Provided you accept that trade opening is good, ideology certainly does not matter. The WTO’s very first article says members believe that trade opening is good for employment, improving living standards and sustainable development. If one does not agree with this, then it is better not to knock at the door of the WTO. But a glance at those who have so far knocked the door reveals that it is not at all difficult to adhere to these principles.

Q: More and more governments in the developing world seem to prefer bilateral trade agreements. Some experts say this trend is outcompeting that of WTO.

Well, I think there is certainly a greater acceleration of bilateral agreements. Where I am not clear is with whether or not this is good for business, SMEs and the like.

Any trade agreement that contributes to levelling the playing field must, in principle, be good for small businesses. But, if these bilateral trade agreements result in scattering up of the playing field, then in my view that is a problem.

And why is it a problem?

The real obstacle to business in today’s world are not tariffs, which are becoming smaller and smaller. The real obstacles are rather non-tariff measures, barriers and certifications.

I hear from many business circles in several countries that their biggest obstacles are regulatory non-tariff measures. If bilateral agreements regulate these non-tariff measures, this is certainly not going to help level the playing field.

This will make the life of SMEs shorter. This is because with bilateral agreements they may have 10 standards to meet.

Is this good news for business?

No, I do not think so. In principle, I support bilateral trade agreements so long as they help to level the playing field. You know, the Chinese have a saying – “The colour of the cat does not matter as long as it catches the mouse”. That’s my view on bilateral agreements.

Q: The SMEs need to sprout and be more competitive. But for this to happen, capacity is crucial. In most African nations, the SMEs are the burden for governments. What is the ITC doing to ensure that SMEs receive their fair share of assistance in building capacity?

We are a unique development organisation in that we provide support for SMEs. We do essentially three things. One is what I call market intelligence.

We map the market for these enterprises; we locate the market opportunities; we indicate the standards and the competitors; we provide them with plenty of information about the market, competitors and standards; we also tell them how prices fluctuate.

We support trade and promotion organisations and we support their associations on the ground. In the Ethiopian context, for instance, it is easier for us to deal with the Chamber since we cannot reach all of the 250,000 SMEs.

Another is working directly with the SMEs. So we work with a group of SMEs in a particular sector in one country to help improve their export competitiveness. Women empowerment, youth employment, improving coffee quality and creating e-platforms to sell products directly to export markets, among others are some of our intervention areas in SMEs.

Q: Although there have been candidates from Africa bidding for the top WTO position, the world has so far not been able to see any African at the helm of the WTO. How representative do you think is the leadership of the WTO?

If I look at the head of the WTO, it has traditionally been from developed countries. But we have also have had two developing countries.

We are now on the second one, from Brazil. Before that it was Asia. But it is true that there has never been a director general coming from Africa.

There were two candidates this time around. They were very good candidates. One was from Ghana and one from Kenya. One is a man and the other was a woman. But they did not make it to the final.

At the end of the day, you can see that the process of selecting a WTO director general is a member-driven process. It ends up where the members want it to end. Time has progressed and that is a good sign.

Sourced here:  http://addisfortune.net/interviews/world-trade-what-it-takes-for-ethiopia-to-join/

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EU, Ethiopia sign 212.4m euros aid deal for roads, health

 European Union on Monday signed a development grant with Ethiopia worth 212.4 million euros to help finance road construction and projects targeting maternal health and drought resilience.

Ethiopia, Africa’s second most populous country after Nigeria, is midway through a five-year economic plan that foresees almost tripling the country’s road network and beginning the building of 5,000 kilometres of new railway lines.

Addis Ababa’s big push on infrastructure is aimed at connecting remote regions and has propelled the economy to double-digit growth for much of the last decade.

“Expanding and upgrading the road network are playing a central role in the country’s economic development, notably in improving access for the rural population to markets and basic service,” Andris Piebalgs, the EU’s Commissioner for Development, said at the signing ceremony.

Once run by communists, Ethiopia’s economy is now sub-Saharan Africa’s fifth biggest economy, leapfrogging Kenya, after a decade of robust growth, but however, remains one of the world’s largest aid recipients.

The package includes 49 million euros earmarked for road building. Another 50 million euros will be to help fight the effects of drought in the country’s arid south and east and 40.4 million euros will go to improving maternal health.

http://www.ngrguardiannews.com/index.php/news/world-news/139351-eu-ethiopia-sign-212-4m-euros-aid-deal-for-roads-health

AIB’s paid up capital surpasses the billion birr mark

The paid up capital of Awash International Bank (AIB) S.C surpassed one billion birr, twice the amount of money that the National Bank of Ethiopia (NBE) will require banks to have by June 2016.

The bank is waiting for the endorsement of the four newly elected members of the board of directors by the NBE, the regulatory body of the financial sector. AIB, one of the leading and oldest private banks in the country, also announced that it registered a paid-up capital of 1.2 billion birr by the end of the 2012/13 fiscal year, according to the annual performance report. The paid up capital of the bank in the preceding budget year was 812 million birr. The growth of the paid up capital of AIB therefore was 28 percent, according to Wole Gurmu, Chairman of the Board of Directors of AIB. Over the last fiscal year, the bank earned a total income of 1.4 billion birr, while the income was 1.1 billion birr in the 2011/12 fiscal years.

The major contributor to this growth is the increase in the interest income and commissions and services.  During this fiscal year, the interest income rose by 33.1 percent from 668.7 million birr to 890.2 million birr. AIB’s expenditures also rose from 580.1 million birr in the previous fiscal year to 836.7 million birr in 2012/13, according to the chairperson’s report. All components of expenses have increased during the fiscal period, the chairman told shareholders at the assembly. “Interest expense increased by 27.3 percent to birr 362.7 million in 2012/13, compared with the preceding year, mirroring the growth in the volume of interest bearing deposits, namely saving and time deposits,” he said. “Salary and benefit expenses increased by 64.6 percent owing to recruitment of qualified personnel both for vacant posts and newly opened branches.” The bank therefore registered a record gross profit of 583 million birr in the budget year, showing an increase of 52.4 million birr (9.9 percent) over the previous budget year. AIB’s net profit after tax increased by 11.3 percent to 438.6 million birr. The earnings per share this year is 456, lower than the preceding year (469) as a result of a significant increase in paid up capital.

During the last fiscal year, the bank’s total assets expanded to 17.8 billion birr, up from 13.1 billion birr in the preceding year. “The expansion in the asset size of the bank was largely associated with significant increases in loans and advances and purchase of NBE bills,” the chairman reported. The board chairman said that among the major achievements of the bank are the launching of the second strategic plan, construction of buildings for branches in Ghimbi and Agaro, production and revision of operational policies and manuals, growth of the paid-up capital, rapid expansion of the branch network, making its total branches 115, the introduction of ATMs and launching of the card payment system, among others.

Meanwhile, four new members of the board of directors including Antonio Carnevali (Eng.), Tabor Wami, Daniel Tewodros and Ephrem Tesfaye, were elected at the 18th Annual General Assembly held on November 16th. Wole Gurmu and Amsalu Bizuneh, Vice Chairman, have completed their term and other two directors didn’t run for the election because of their own reasons. Eight members of the former board including Asegedech W/Mariam, Elias Bedada, Fanta Tesgera (Dr.), Girma Borishie, Kibret Shuma, Kidist Duguma, Yared Abera and Yidnekachew Ayele, were re-elected.   The board will elect the chair and vice chair right after the endorsement of the four newly elected directors.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3758:aibs-paid-up-capital-surpasses-the-billion-birr-mark&catid=35:capital&Itemid=27

Transport Authority sets min. fleet numbers for transporters

The Federal Transport Authority issued a new scheme raising truck fleets to 125 for transport companies serving to and from the Port of Djibouti. The new scheme shall be operational as of the beginning of 2014 and accordingly shall revoke the work permits/licenses of those that have less than 125 trucks in their fleet.
Previously, the government or other importers were dealing with individuals or companies to transport their cargo regardless of their truck fleets. This system forces the authority or other major importers to deal with many transporters on an individual basis to transport their cargo leading to confusion and inadequate management, according to experts.
Sources in the sector told Capital that the new arrangement ratified will allow the Authority to control and harmonize the sector and minimize the number of deals and permits that the authority enters into with transport providers. Associations or individuals, having 125 trucks or more, are the only bodies that can join the new scheme and obtain transport permits as of January 2014.
Sources told Capital that the deadline to get the new license is set for January 8th, but officials at the Authority declined to specify the exact date.
Abelneh Agidew, Public Relations head of the Federal Transport Authority, told Capital that the new scheme aims to avoid the confusion that existed for a long period without any clear data or information.
“The sector has been led by illegal actors and brokers and not by owners and companies that is why we formed the new arrangement,” he clarified.
“After the 2008 Business Process Reengineering (BPR) study we have been working to modernize the public transport sector and now the cargo transport modernization process has commenced,” Abelneh said. “The new arrangement is crucial to go with the country’s development and the international trend,” he added.
He said that for the past year the authority with other stakeholders have been discussing the new arrangement and most of the transport actors have agreed with the merits of the new scheme.
Even though the authority said that 125 trucks is the minimum number of fleet to get the transport license, the reality is that the number of companies or individuals that have that many fleet are very few.
According to sources, transport companies and individuals that have few trucks are currently working to form associations to meet the minimum number of trucks required by the authority.
“We will give licenses and permits to these associations but the number of fleet is not the only criteria as institutional arrangement, professional workers and type of trucks by production date and loading capacity are some of the criteria needed for the permit,” the public relation head explained.
The new law will force transport companies or associations that form to be led by professionals and are expected to compile detailed data and information about their business.
“According to our plan the new registration and licensing process has commenced in the middle of November,” he added.
He said that some of the associations that have formed based on the new law are currently approaching the authority to get their licenses and some of them have also started the licensing process.
According to experts in the sector, there are about 25,000 trucks operating in the country with a capacity to carry 100 quintal and above. However, most of these trucks are older models. Abelneh told Capital that currently the authority is working on a detailed study about the existing number of trucks and their condition.
Different studies undertaken by local and international organizations indicate that today the transport system is one of the major obstacles for the logistics sector. Most of the sector actors are not professional and the sector is not even led by the companies or owners. Brokers based in Ethiopia and Djibouti are the major actors servicing both clients and truck owners.
The government also does not have detailed information or controlling mechanisms for the sector, while it is applying several plans to modernize the sector. For instance, the public transport system is not modern and it has also classified the public transport vehicles (bus, minibus and other public transport cars) into three levels related to their production date and quality. According to sources, trucks will also be classified based on their quality and model when the authority finalizes the study.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3769:transport-authority-sets-min-fleet-numbers-for-transporters-&catid=54:news&Itemid=27

Corruption escalates as traffic proclamation goes operational

As the Addis Ababa Traffic Police office tries to enact the Drivers Competency Certification Proclamation, the latest traffic proclamation issued by the council of Ministers a year ago, residents of the city are grumbling about serious corruption.
Traffic accidents remained among the causes of social and economic chaos, giving the country the highest rate of traffic fatalities per vehicle in the world. Poorly maintained, inadequately marked and poorly lit roads, excessive speed, unpredictable local driving habits, pedestrians and livestock in the roadway, and the lack of adherence to basic safety standards, among others, are the roots of traffic accidents according to reports by different organizations including the World Health Organization (WHO). Many drivers are unlicensed and those licensed lack basic driver training.
In a bid to reduce the toll of traffic accidents, the Addis Ababa Transport Authority is taking several measures.
Recently it slammed the doors of 48 driving license schools after conducting evaluations, allowing only ten to continue operating.
Four months ago, the authority started enforcing the Driving Competency Certificate Proclamation issued recently. This proclamation penalizes drivers without a license, as well as the owners of the vehicles.
According to Assefa Mezgebu (Chief Sergeant), drivers who are caught without a license are subject to a penalty of 5,000 birr, while the owners of the vehicle pay are fined 3,000 birr.
The proclamation was initially used applied by the Oromia Transport Authority. Addis Ababa Bureau became the second tohas later started using use  the proclamation.
Many traffic police, however, are allegedly using the enactment of the proclamation for their own profit, receiving bribes from drivers and owners rather than enforcing it.
Even motorbike traffic police, who were formerly believed to not engage in such practices, are getting into the game as the money being offered has grown, according to sources.
Assefa said that the Addis Ababa Traffic Police Bureau is aware of such rumors. “We informally hear these claims. But no concrete and evident allegations have been brought to the bureau,” he said. If people can file apparent clear evidence, the bureau shall takes legal and administrative measures.
“Anyone who has been asked for money by a traffic police can report to the nearby police station,” he said, noting that . Assefa said that both receiving and extending a bribe, however,  is illegal.
Traffic accidents claimed the lives of 332 people in 2011. During the same period, 1,735 people were injured in traffic accidents. In addition, traffic accidents caused 47.7 million birr of damaged.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3768:corruption-escalates-as-traffic-proclamation-goes-operational&catid=54:news&Itemid=27

Demurrage law ratified

The new trucks demurrage proclamation, which transport operators have been pushing for was finally ratified by the parliament. The new regulation is also expected to stimulate the transport and logistics sector, which faces many difficulties in the import/export corridor of the country. Transport companies and truck owners have been complaining about the transport system and the long delays they face at Djibouti Ports, customs checkpoints, warehouses and loading/unloading areas. However, the new proclamation ratified early this week forces those responsible for the delays to compensate the transporters. In its introduction the proclamation gives a clear explanation about other countries’ experiences with demurrage, which has yet to be implemented here. The Federal Transport Authority, the regulatory body of the transport sector, may also set cargo tariff (if the Council of Ministers’ approves) that was previously set by transporters and clients. “This new demurrage law allows the transporter to accelerate the business and solve the sector’s problem. As transport providers do not ask for a fair price, the authority shall set the tariff for the sector,” the proclamation reads. Due to this transport providers are expected to readjust their prices, when the demurrage proclamation becomes applicable, as it is expected to minimize delays at various points during their trip. The proclamation, which has three parts, indicate that a truck with a loading capacity of 20 or more tons of cargo should load cargo within eight hours and unload it within six hours. Trucks that have a loading capacity of less than 20 tons should load and unload within five hours. According to the proclamation, the time limit referred to the above conditions begins from the time the truck arrives at the place of loading/unloading. The Ethiopian Revenue and Customs Authority (ERCA) also has a responsibility to check the loaded trucks within one hour at the port of entry or exit or transit route, or in less than four hours at the destination customs checkpoint. Currently, trucks that transport goods, especially from the port, need to wait a week on average at the checkpoint or customs station. Ministry of Agriculture (MoA) is also responsible for concluding quarantine tests (trucks’ sanitation and stability) within 30 minutes at quarantine station.  According to the proclamation, MoA is also responsible for conducting animal health tests and issuing a certificate within three hours and giving the animal feed pass certificate within 30 minutes. The law also stated that the Ethiopian Roads Authority (ERA) has to conclude a truck’s weight inspection within 20 minutes, while other relevant government authorities that are responsible for controlling cargo transportation need to conclude their inspections within three hours. Based on the law, all bodies that have a responsibility to control the transportation and warehouses that are considered as loading/unloading areas have to work 24 hours everyday. Senders, cargo consignees or warehouse operators who fail to meet the obligations stated above shall pay a demurrage of 100 birr for the first two hours delay, 150 birr for a two to four hour delay and 200 birr for a delay of over four hours for trucks that have a capacity to carry 20 tons or more, while trucks that have a capacity to carry less than 20 tons will get a demurrage of 75 birr for the first two hours, 100 birr for two to four hours and 150 birr for a delay of over four hours. Government bodies that are responsible for conducting inspections are also included in the demurrage fee if they are responsible for the delay over the stated time frame. According to the new law, responsible government offices shall pay a demurrage fee of 100 birr for trucks with a capacity to carry 20 or more tons of cargo and 75 birr for trucks that carry less than 20 tons. According to the law, the demurrage fee is payable for 10 hours per day. The carrier who has sustained more damages than the demurrage shall have the right to claim the excess on the basis of the contract of carriage and the appropriate law. Any employee or officer of a state warehouse or a regulatory organ that has intentionally or by negligence detained a truck beyond the time limit specified for loading/unloading or for inspection shall be liable to reimburse the demurrage paid by his employer.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3766:demurrage-law-ratified&catid=54:news&Itemid=27

Risk management critical ingredient to end poverty: WB

A new World Bank Group report revealed that effective risk management is a critical ingredient in the fight to end poverty as it unlocks opportunities, prevent crisis and protect the poor in times of disaster and shock.

Opening the launch of the World Development Report 2014 here, WB Ethiopia Country Director Guang Zhe Chen said in pursuing opportunities, people encounter risks of various nature which require preparation and recovery efforts by governments, communities and individuals.

“Better risk management can provide both resilience to withstand adverse events and the ability to take advantage of development opportunities,” he said.

Presenting the Report, the 2014 World Development Report Director Norman V. Loayza said it is focusing on the process of risk management through mainstreaming it with development.

“Risk management can be a powerful instrument for development—not only by building people’s resilience and thus reducing the effects of adverse events but also by allowing them to take advantage of opportunities for development,” he said.

Agricultural Transformation Agency (ATA) Input-Output Marketing Programme Director Dr. Nega Wubneh on his part said that Ethiopia is among countries severely affected by climate change impact.

According to Dr. Nega, Ethiopia’s vulnerability to climate change risks is due to different factors, including its geographic location and social and economic structure as well as dependency of its population on climate sensitive sectors for livelihood widespread environmental degradation.

Dr. Nega further explained that Ethiopia has since recently shown strong commitment to respond to prevailing and emerging challenges of climate change and disasters.

Accordingly, it is engaged in environmental conservation and building a green economy. With regards to disaster management, it has also committed to shift in orientation from crisis management to a multi-sectoral and multi-hazard Disaster Risk Management.

“Amidst the 2010 drought in the Horn of Africa, Ethiopia managed to contain despite the magnitude of the risk. The country has also been working to transform the agriculture through introducing irrigation schemes and agricultural technologies as well as devising ways of improving financial capacity of the sector,” he added.

Appreciating the impressive economic performance of Ethiopia and its achievement in meeting five of the Millennium Development Goals (MDGs), Mama Keita, representing UNECA, highlighted some risk elements Ethiopia may face.

According to her, Ethiopia is still expected to work on poverty reduction, wealth distribution, economic diversification, value addition, improving quality of supply goods and controlling domestic mobility.

http://www.waltainfo.com/index.php/explore/11379-risk-management-critical-ingredient-to-end-poverty-wb-

Prices of Sesame, White Pea Beans Leap 30Pc at ECX

The prices of sesame and white pea beans have escalated by 25pc and 35.7pc, respectively, at the Ethiopian Commodity Exchange (ECX) market, beginning the week before last.

Sesame exporters attribute the price increase to a rumour that there is a shortage in the international market. The price hike in the commodities ranged from between 600 Br to 800 Br.

The price per quintal of sesame stood at 3,600 Br before the increase came in the week before last week. Since then, however, it shot up to 4,500 Br on the ECX trading floor.

On Wednesday, November 20, 2013, and Thursday, November 21, 2013, the price showed a slight decline.

Sesame exporters, like Ahmed Mekonnen, say the price increment is sudden and huge, particularly when compared to the initial price of 2300 Br when sesame first appeared at the ECX two years ago.

The main export destination for Ethiopia’s sesame is China, followed by Middle Eastern countries.

But sesame is not the only commodity to see a price hike at the ECX. White pea beans have also joined it.

The price per quintal of the latter, which ranged from 1,400 Br up to 1,500 Br, has now reached 1,900 Br.

A quintal of white pea beans last year sold for between 800 Br to 900 Br.

Mhrteabe Tetmke, a white pea bean trader at the ECX, attributes the increment to a shortage in the supply of the cereal.

For the ECX, however, the price increase is not sudden. The crops have shown this kind of trend, since they first appeared on its trading floor two years ago. The current price trend in the two commodities is because of the production season.

November is the time for the entrance of new production, but at this time it is common to face some shortages in supply for a limited period of time, says Abenet Bekele, chief strategy officer at the ECX.

“Last year there were speculations about people who hoarded commodities long enough to get a better profit,” Abenet said. “This speculation played a role in the price increase and, in addition, last year’s production was low compared to the year before it.”

As far as the ECX is concerned, huge price increases came when currency devaluation was announced by the government a few years back. Seen in that light, argues Abenet, the current trend is limited to the ECX’s daily limits, which are 6pc and 5pc for sesame and white pea beans, respectively.

The price hike has a positive impact for exporters, farmers and the country’s export earnings, Abenet argues, maintaining that the ECX does not interfere in price variations, other than making sure that the marketing platform is integrated and transparent.

In the previous year, Ethiopia exported 215,000 tons of sesame, 83,000 tons of white pea beans and 237,000 tons of coffee. The first two commodities appeared at the ECX two years ago. Currently, the ECX serves as an exchange platform for six items, including maize and wheat, along with the new entrant, mung beans, whose marketing has not yet become fully operational.

The price increase is only limited to the domestic market, as the international market price is rather stable.

“As far as the international market is concerned, we exporters are losers,” says Ahmed.

He, nevertheless, says the increase can only have a positive impact for farmers.

A researcher, who requested anonymity, says the rise in the price of sesame has positive impacts, but argued that the country is not getting what it deserves from its sesame resource.

“Ethiopia is exporting the commodity without adding value on it,” the researcher argues.

The ECX believes that the current price is short-lived because this year’s production has begun making it to warehouses.

http://addisfortune.net/articles/prices-of-sesame-white-pea-beans-leap-30pc-at-ecx/

New Regulations to Classify Freight Forwarders into Five Categories

Though the regulations were first developed in 2011, implementation was delayed so that the FTA could consult with freight-forwarding companies before finalising the new rules, Fortune learnt.

Some of the outcomes expected from the new system are an increase in competition between businesses, and distribution of work based on the capacity of freight-forwarders, according to Abelneh Agedew, head of promotions and public relations at the FTA.

“It will also allow clients to talk directly to transporters that can meet their needs, as opposed to relying on brokers,” he said.

An expert involved in developing the new system told Fortune that in addition to a decrease in fees due to the removal of brokers, the classification will also allow specialisation.

“Until now, freighters would use the same cars they used to transport chemicals to transport coffee,” he said. “This often proved disastrous to their clients’ business, because the quality of the products were not maintained during the journey.”

Under the previous system, where freight-forwarders were not sorted by the FTA, the companies could not attract clients based on their capacity, and instead relied on their networking and word-of-mouth to get business.

As a result of the inefficiency of that system, only 65pc of the freighters’ capacity was being used, according to Abelneh.

This exacerbated the congestion that has plagued the country’s transportation of goods to and from Djibouti’s port, and plays a part in the country’s logistics being ranked 141st in the world by the World Bank’s latest report, released in June 2013.

The new regulations, however, are aimed at improving the efficiency in the sector, by introducing categories that allow for a better distribution of cargo among transporters.

Under the new regulations, some companies are categorised as Special Level, based on the cargo they transport. These include – plants, live animals, meat, small cars and cranes. The rest, however, are classed under four levels based on criteria that include the number of branch offices they have, and the capacity and age of their vehicles.

To qualify as a Level One company, a freight-forwarder is required to have more than 120 vehicles that are less than 10 years old, each with the capacity to handle 20 to 40 tons of cargo and three branch offices. While Level Two companies’ vehicles must also have the same cargo capacity, they need only 100 and  they can be up to 20 years old. In addition, only two branch offices are required.

Only 75 cars of the same capacity, which can be over 20 years old, are required of companies under Level Three. They can also have just a single office.

While all companies in the three groupings are expected to have their own garage, the Authority allows them to sign a deal with a recognised garage as an alternative.

The least stringent class, Level Four, only requires 50 vehicles of less than 20 tons capacity. Garages and age limits are not imposed.

Since the criteria are quite elaborate, the FTA encourages the freight-forwarders to group themselves into associations in order to reach the desired level of categorisation.

Freight forwarders who talked to Fortune, though welcoming a system they believe was long overdue, nevertheless shared their struggle to form associations with other freighters.

One such individual who formed a Level Four association with two other freight-forwarders told Fortune that forming an association with people who are competitors is difficult.

“There is a lack of trust among freight-forwarders,” he said. “But if we want to survive, we have to work together.”

Previously, his trucks lay idle because he was not as well-connected as other freighters, so forming an association to take advantage of the new system is a minor hassle, he said.

Other freight transporters seem to feel the same way.

Though the Authority had initially planned to start by assigning Level One status to just five entities – four private limited companies and one association – before a gradual full launch, demand from freight-forwarders was much higher than expected, according to Abelneh. More than 20 associations came to register this week alone.

“After they register, the Authority has to check whether they have fulfilled the requirements of the regulations,” said Abelneh. “Then, and only then, will they be certified to whatever Level they aspire to.”

Those vehicles that are too old to be counted in the new classifications will be allowed to transport goods within cities, but will no longer be allowed on cross-country routes, he said.

The Authority plans to complete registration by the end of this fiscal year.

http://addisfortune.net/articles/new-regulations-to-classify-freight-forwarders-into-five-categories/

Government Supervised Private Enterprises Fall Well Short of Targets

The privatisation process has slowed down substantially, with no bids coming in during the last tender

The Privatisation & Public Enterprises Supervising Agency (PPESA) has targeted 104   million dollars in revenue for the entire budget year, from 20 of the 69 enterprises that are still under its monitoring. The 20 are those believed to be involved in export during the year.

“Among these enterprises, 20 had planned to export products, but only 15 did so,” said Asebe Kebede, deputy communication head at the PPESA.

The disappointing export performance is due to low budget allocation by the enterprises, machinery failures and low quality products, according to the official.

“The Agency proposed that the companies be supported by foreign experts, but they did not show any interest in this,” he said.

In addition to transferred companies that it monitors, the PPESA also has 42 others still under its control. It plans to get export revenues of 59 million dollars from the nine enterprises that are currently engaged in exports.

The performance of those enterprises during the past quarter was more satisfactory, with the Agency securing over eight million dollars through these companies, out of the planned 10 million dollars.

The largest revenue recorded in the quarterly report, however, is the 1.34 billion Br earned by the Enterprise from the sale of three companies – Awash Winery, Limu Coffee Plantation and Negede Printing Enterprise.

“This amounts to 86.4pc of our plan,” said Asebe. “Most of the revenue came from companies whose auctions happened in the last fiscal year, but whose payments were made this current budget year.”

Though Awash’s full ownership transfer was completed at the beginning of September, the transfer of the two others is still pending.

“The buyers have to check that everything is in place before they receive the full ownership of the companies and this reason is the main factor for the delay of full ownership transfer,” stated Asebe.

While privatisation had proceeded at a brisk pace initially, it has slowed down in recent years. For instance, the PPESA’s tender in August 2013 to sell five fully government-owned enterprises was kept open for close to two months, however, not even a single bid document was sold, let alone a sale of an enterprise.

Weyera Transport S.C, Transport Construction Design S.C, Addis Abeba Ghion Hotel, Agricultural Mechanisation Service Enterprise and Artistic Printing Enterprise were the companies that were floated in the said tender. Except Weyera Transport S.C, the remaining companies have been floated for tender previously also.

Several possible reasons have been mentioned over the years. According to the World Bank (WB) document, for instance, while only seven percent of state-owned enterprises consider land as a constraint, private enterprises put it as the main obstacle to their operation. This can lead to a decreased interest.

A research by the Agency itself states that buyers think that the minimum prices set for the tenders are very high, even though the Agency argues that it is setting prices based on market prices.

The Agency has currently floated Caustic Soda S.C. and Ethiopian Mineral Development S.C. The result will be known within less than two weeks, according to Asebe.

http://addisfortune.net/articles/government-supervised-private-enterprises-fall-well-short-of-targets/

New Proclamation to Establish Energy Authority

A new proclamation that encourages the private sector to get involved in energy production and reestablishes the former Ethiopian Electric Agency as the Ethiopian Energy Authority was ratified on Tuesday by the House of Peoples’ Representatives (HPR).

The new law amended and replaced the existing proclamation, which allowed for a monopoly of state-owned enterprises in the Ethiopian energy sector.

It also introduced a new regulatory body to the sector, the Ethiopian Energy Authority, vested with the power to issue licenses for generation, transferring, distribution and selling, as well as the import and export of electricity in the country. As per the provision of the proclamation, the new agency is also responsible for issuing permits for private sector players who want to join the energy production sector. The newly established authority has replaced the Ethiopian Electric Agency.

The new authority differs from the old agency in three notable ways: energy efficiency and conservation, mandating regulation and establishment, and the administration of energy funds under its own administrative board.

The proclamation introduces the establishment of an Energy Efficiency Fund, tasked with providing loans and financial support to companies and individuals who invest in energy efficiency and conservation activities. The Authority also has a board with the power to review tariff proposals in relation to the national grid, ultimately submitting them to the government for approval.

It has also been given the mandate to devise directives to identify the competency of potential investors who seek investment licenses, including the review of financial capacity, technical skill and professional experience.

http://allafrica.com/stories/201311250328.html

Chinese delegation arrives in Addis Ababa

A Chinese delegation led by Vice Premier of State Council, Liu Yandog arrived in Addis Ababa on Sunday for a three-day official visit.  The delegation will meet high level officials and expected to discuss on ways of further bolstering the existing bilateral cooperation. Memorandum of Understanding (MoU) is expected to be signed to further boost the bilateral cooperation in culture, science and technology, education and social sectors.

http://www.ena.gov.et/story.aspx?ID=13828

OIB Reported 71.9% Rise in Annual Profit

Oromia International Bank (OIB) posted a 71.9 percent rise in annual profit. The bank’s profit for the year ended on June 30, 2013 totaled 77.5 million birr, Fortune reported.

The Bank’s return on average equities rose to 17.34 percent from 14.8 percent. The bank also managed to mobilize a total deposit of close to 3.1 billion birr, a 44 percent rise from earlier a year, Fortune reported citing the bank’s annual audited report.

The Bank disbursed loans and advances of 1.6 billion birr. Its loan to deposit ratio has is up 52.4 percent compared to the previous year.

Total expenses incurred by the bank has reached 231.3 million birr, registering an increase of 40.9 percent.

OIB’s liquid assets to total assets ratio has declined to 25.4 percent from 31.7 percent; liquid assets to total deposits ratio has fell to 32.5 percent from 42 percent and liquid assets to total liabilities ratio has also declined to 29 percent from 37 percent, according to Fortune.

http://www.2merkato.com/news/alerts/2701-ethiopia-oib-reported-719-rise-in-annual-profit

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Ethiopia, China sign 101.5b Yuan ($16.6 billion) agreement

The governments of Ethiopia and China signed on Monday a financing agreement amounting to 101.5 billion Yuan to support various projects.

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Ethiopia’s new 25 year – $100 billion Energy Strategy

Prominent Ethiopian and foreign experts on Tuesday (November 26) began discussions on a new power strategy to boost electricity production as part of Ethiopia’s plans to become a regional energy exporter. The discussions covered ways to implement Addis Ababa’s 25-year power master plan. According to the Ethiopian Electric and Power Corporation (EEPCo), the new power policy will enable Ethiopia to generate 37,000mw of energy by 2037. Under the new plan, Ethiopia will eventually be able to export over 4,000mw of hydro-power to some nine countries in the East African region. Exports could eventually be extended more widely to northern and southern African nations. This 25-year energy strategy will cost Ethiopia US$100 billion and the expectations are that it will be sourced from both local sources and international funds. As part of the plan, Ethiopia will build over 16,000km of high voltage transmission lines in the next 10 years. Ethiopia’s current power production stands at around 2,300mw and exports 60mw of electricity to neighboring Djibouti and around 100mw to Sudan, providing a considerable boost to the country’s income. According to EEPCo, Ethiopia has the potential to produce some 45,000 megawatts of electricity from hydro-power alone.

http://www.mfa.gov.et/news/more.php?newsid=2753

Ethiopia aims to augment trade with Jamaica 

Ms. Yodit Hylton, Ethiopia’s honorary consul to Jamaica, said on Tuesday (November 26) that Ethiopia intended to increase trade ties with Jamaica using Ethio-Global Trade and Consulting Limited (EGTAC) as an instrument of cooperation between the two countries. She said she would be promoting investment by bringing Jamaican companies to Ethiopia and other African countries. China, Canada and the US are all trade partners of Jamaica and she stressed Africa as a new economic growth pole should intensify its relationship with the Jamaican business community and encourage investors to fill the economic gap. She explained that Jamaican investors could invest in manufacturing and agro-processing industries in Ethiopia as the country provided incentives, cheap labor, and a good investment climate. She said that the distance between the two countries was not an impediment, noting that “Ethiopia Shipping Lines goes all over the world….equipped with the relevant technology to make it possible.”  She said Jamaica could also share technology and successful experience with Ethiopia. Jamaica has had deep-rooted ties with Ethiopia ever since the regime of Haile Selassie, with the Rastafarian Movement providing one of the major links between the two peoples.

http://www.mfa.gov.et/news/more.php?newsid=2756

Chinese Vice-Premier concludes her visit to Ethiopia

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Using agriculture as a springboard Ethiopia is due to make a transition to a growth programme that uses industrialization as the powerhouse of its forward drive. The industrial plants, which have mushroomed throughout the country following the fertile ground created for investment two decades back are living billboards to this breakaway from a sluggish pace of growth.

When we go back in time and assess the history of countries like the People’s Republic of China that catapulted to the pinnacle of growth, we notice that it is by their bootstrap such nation rose to the helm of prosperity pursuing industrialization that presupposes electrification which in turn necessitates harnessing natural resources such as hydro-power fundamental for such purpose.

Mindful of this fact Ethiopia today is firm in the inexorable pursuit of electricity, which could serve a lifeblood to its industries ever expanding.

The country is dead set on breathing fire into its developmental drive harnessing its hydro power, wind, solar, biomass and geothermal potential begging for utilization. Not to compromise the system security during poor hydro logic conditions, thermal generation and other alternative sources could serve as a stand by with very low average plant factor for short term.

If the aforementioned resources for alternative energy Ethiopia is well blessed with are subdued and utilized efficiently and effectively, apart from spurring the country’s growth drive they could play quite a role in materializing the similar ambitions neighbouring countries entertain.

In the 25-year power expansion master plan study it tabled for discussion this week, that is what the Ethiopian Electric Power Corporation (EEPCo) confirmed. According to the corporation, by 2037, fully catering for its local power demands, Ethiopia eyes at generating surplus electricity that could address the requirements of neighbouring countries too.

In the workshop corporation’s higher officials, representatives of the World Bank, experts who have international acclaim, EEPCo had noted that tapping its hydro, solar, wind and geothermal potential Ethiopia is working to generate 37 thousand MW electric energy by 2037 and thereby become the electric tower of East Africa.

The maximum local demand then is extrapolated to be 33 thousand MW. True to the ideal of lending hands for mutual growth and regional integration, the extra 4 thousand MW energy will be shared among Kenya, Sudan, Djibouti and others.

Corporation CEO noted that the main objective of the master plan study is to develop the least cost transmission and generation expansion plan for the next 25 years. EEPCo with the financial support from the International Development Assistance (IDA) had hired a consultant bidding to undertake the highly required power system master plan update study.

According to the CEO, “The contract has bestowed huge responsibility to the consultant to arm the corporation with skilled manpower, software resource and also power system database for further updating of the study by own workforce.”

For the implementation of this noble plan over 150 billion USD is required. As the government single handed can’t make this plan a reality, investors, international and local financial institutions and concerned bodies are expected to lend hands. This is a mammoth undertaking requiring the coordination of resources from governmental, the private sector and financing institutions and other stakeholders who have common interest from their prospective markets.

This approach also helps the country reclaim its greenery and create rural and urban residential areas salubrious for health. Representative of World Bank, Ethiopia Office, second this. The fact that Ethiopia is now highly investing in the energy sector deserves appreciation. Hence the World Bank will back up the intended regional electric network that puts Ethiopia as the nerve centre.

Currently the electric supply and demand of the country shows imbalance. Due to the presence of factories, industries, service giving institutions and other enterprises that highly and non-stop feed on the country’s electric supply, Ethiopian annual electric consumption has increased by 35 per cent.

Presently there is a 2068 MW electric supply in the country.

Malpractices, structural problems in organizational set up, the oldness of terminals & transmission lines as well as skill gaps and shortage of human resource are attributable to the complaints about unfair electric distribution.

As the problems beg for a lasting solution redressing these problems down the road EEPCo envisages to come out potent.

Even if not entailed in the final plan for economic and complex reasons the tapping of nuclear energy is also considered.

Sourced here:  http://www.ethpress.gov.et/herald/index.php/herald/editorial/4999-meeting-the-local-one-ethiopia-s-electric-power-supply-could-address-the-demand-of-neighbouring-countries-too

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China to pour US$1 trillion into African investments

The Chinese government and state-run banks will offer loans of up to US$1 trillion to Africa until 2025 as the continent emerges as China’s newest top destination for investment, according to an analyst with the state-owned Export-Import Bank of China.

At a recent conference in Hong Kong on investments in Africa, Zhao Changhui said his bank would provide between 70% and 80% of the US$1 trillion in loans to Africa.

“For many enterprises in China, Africa is poised to become China’s top overseas destination for commercial activities and investments over the next two decades,” Zhao stated.

“With US$3.5 trillion in foreign reserves, China should not only buy US debt but should inject its funds into other overseas investments,” Zhao said.

The analyst said his bank is seeking cooperation with Africa’s infrastructure projects, including transnational highways, railways and airports. He estimated work on a railway network linking various states in Africa would cost US$500 billion.

Jeff Gable, head of the unit of non-equity research in Africa for Barclays Africa Group, hinted at an area that investors might be interested in examining, saying there is a huge need for the electrification of the railway in Africa. The infrastructure is far from complete in Africa, he remarked.

Another area that might draw funding from the Chinese government is the agriculture sector, according to Zhao.

With fertile lands on the African continent, Zhao said he believed cooperation between China and Africa on agriculture may help alleviate starvation in the continent over the next 10 to 15 years.

This view was echoed by Gable, who pointed out that Africa has the potential to grow into a leading global exporter of grains in the next 20 years, with output likely to climb from US$280 billion to US$880 billion during the period.

According to media reports, China Machinery Engineering signed a deal with the government of Equatorial Guinea in October to develop electric grids in the central African state.

Under the agreement, inked on Oct. 14, the Chinese company will build six new grids and expand existing grids in Equatorial Guinea for US$127 million, with construction expected to be completed in 21 months, according to the reports.

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20131122000004&cid=1102

Telecom expansion project taking shape

- Huawei takes over Addis Ababa’s 4G project
- Firm denials over imported equipment controversy

Ethio Telecom has concluded the task of telecom vendor allocation and proceeded to the launch of the telecom expansion project to realize the government’s Growth and Transformation Plan (GTP) for the sector in the remaining two years.

Abdurahim Ahmed, corporate communications director for Ethio Telecom, told journalists at…

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Taos, New Mexico, Solar Firm Wants To Donate Solar Panels To Ethiopia

By Elizabeth Cleary –  Published: December 15, 2013

A local solar energy company is soliciting donations to fund a project that would bring electricity to a small community in Ethiopia.

The Paradise Power Company (PPC) is a local solar installation company. PPC Solar’s director, Larissa Weinman, said the non-profit Imagine1Day approached PPC about installing solar in the Abada community in Ethiopia, which currently has no electricity. Imagine1Day aims to bring quality education to Ethiopia by building schools throughout the country.

According to its website, Imagine1Day’s goal is for Ethiopia to provide education to all of its young people free of foreign aid by 2030.

The lack of electricity in many of Ethiopia’s rural communities is a major roadblock for Imagine1Day, which installed a primary school in the Abada community a few years ago. But without electricity, it’s hard for students to study in the evenings and for adults to take night classes or conduct workforce training. Solar panels would be installed at the school, and they would generate electricity to power the entire community, which is home to about 2,000 people.

According to Imagine1Day’s website, electricity would power street lamps, making the community safer for women and children. It would allow for modern conveniences, such as food refrigeration and lamps for reading, and would allow people to charge electronics such as cell phones, which would help them stay connected.

PPC is using the crowd-funding platform SeeYourImpact.org to raise $5,000 needed to make solar energy a reality in the Abada community. So far, it has raised just $363, and its goal is raise the full $5,000 by Jan. 31.

Daniel Weinman, PPC Solar’s CEO, said that if PPC hasn’t raised the full amount by then, it will use its own money to fund the project.

“We’re committed to making this happen,” Daniel Weinman said.

He said this is PPC Solar’s first overseas project, and Daniel Weinman plans to travel to Ethiopia in February to oversee the solar installation.

To donate to this cause, visit SeeYourImpact.org/members/Danielwe.

http://www.taosnews.com/news/business/article_96a3b3f2-6386-11e3-9401-0019bb2963f4.html

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Black Rhino Nears Deal for $3 Billion South Sudan Refinery

Ethiopia & South Sudan anticipate future power for petrol swaps

Black Rhino Group, a New York-based infrastructure-development company, may build a $3 billion refinery in South Sudan as Africa’s newest nation seeks to become self-sufficient in oil products.

Black Rhino signed a “framework agreement” in August with South Sudan’s government for the proposed 50,000 barrel-a-day facility, company President Dan O’Shea said. The refinery in the country’s northern Upper Nile state would take about three years to build and cost $2 billion to $3 billion, he said.

The planned refinery “is intended to fill the gap to supply the local market in full,” O’Shea said in a Dec. 9 phone interview from New York. A “significant amount of refined products” could be shipped to Ethiopia, in exchange for electricity that would power the facility. A final accord will probably be signed in the second quarter of 2014, he said.

South Sudan, which exports about 220,000 barrels a day from its oilfields via pipelines across Sudan, is building refineries as it seeks to save foreign exchange it now uses to buy diesel from neighboring countries.

The country imports as much as 40 million liters (10.6 million gallons) of fuel a month from Kenya, Paul Adong Deng, managing director of state-owned Nile Petroleum Corp., said in an Oct. 29 interview in the capital, Juba. About 80 percent of imports are diesel and 20 percent gasoline.

Refineries are already planned in the oil-producing states of Unity and Upper Nile. The first, a 5,000 barrel a day facility in Bentiu, is a joint venture between Nile Petroleum and Russia’s Safinat. Construction will begin by the end of 2013, Russian Ambassador Sergei Shishkin said Nov. 27.

South Sudan has sub-Saharan Africa’s biggest oil reserves after Nigeria and Angola, according to BP Plc data. Its low-sulfur crude, prized by Japanese buyers as a cleaner-burning fuel for power generation, is pumped mainly by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd. and India’s Oil & Natural Gas Corp.

South Sudan seceded from neighboring Sudan in July 2011 and took three-quarters of the formerly united country’s oil output. A dispute between the two nations over export revenue halted South Sudanese production last year, cutting the country’s economy by half to $9.34 billion, according to World Bank data.

To contact the reporter on this story: Mading Ngor in Juba at  mngor@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at  asguazzin@bloomberg.net

http://www.bloomberg.com/news/2013-12-11/black-rhino-nears-deal-to-build-3-billion-south-sudan-refinery.html

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Sowing in row becoming customary among farmers

“We were not aware of the benefits of sowing seed in row method earlier. But now we have witnessed that commendable results are being registered through the method,” said a farmer in Albko Woreda of South Wollo Zone, Mohammed Se’id.
Mohammed recalled that farmers in the area were not willing to practice the method suggested by development agents earlier. There was no belief on the part of the farmers to be successful in applying the method in particular for crops such as teff.
However, the amount of output secured from a quarter of one hectare land increased to 25 quintals from the previous nine quintals following the introduction of the practice.
Mohammed said that he is applying the method for teff, wheat and maize at present as he has become aware of the benefits and the method helped him to increase productivity in particular to double the amount of wheat harvested earlier.
According to Mohammed, applying the method and making use of technologies and agricultural inputs helped him to improve his livelihood.
Another farmer in the area, Abate Teferi, on his part said that he has applied the method to cover his farmland with teff seeds. Most of the farmers in the area have begun applying the method.
Similarly, a farmer in Wurba locality of Shoa Robit Woreda of North Shoa Zone, Hussein Harebu, also said that 40 quintals output was obtained from one hectare of land earlier. Currently, the amount has increased to 80 quintals from the same area of land through making use of the method.
Shoa Robit Town Administrator Habtewold Tege on his part said that 30 per cent of the total area of farmland available in six rural localities of the woreda is already covered with seeds through sowing in row.
Some 1,045 of the over 3,000 farmers in the woreda are applying the method and efforts will further be exerted to further expand the method among farmers.
Head of the Government Communication Affairs Office of the Woreda, Alebachew Abate, also said farmers in the woreda have been practising the method to cover their plots with maize seeds since the last two years.
The Ethiopian Institute of Agricultural Research is conducting research on environmental condition to find solution to problems related to teff growing, Alebachew said, adding, farmers managed to harvest 26 quintals per hectare through utilizing different agricultural inputs and applying the method.
Teff is a predominant staple food in Ethiopia.

http://www.waltainfo.com/index.php/explore/11635-sowing-in-row-becoming-customary-among-farmers

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Over 150 Chinese firms to attend expo in Ethiopia

ADDIS ABABA,  (Xinhua) – More than 150 Chinese enterprises will be participating in the first commodity expo to be opened here Thursday to showcase their products, technology and services.

The 2013 (Africa) China Commodities, Technology & Service Expo will be held till Sunday at Millennium Hall in the Ethiopian capital, where the Chinese enterprises are expected to put on display their products in the areas of agriculture, electricity, automobile, hardware,                 building materials, electrical appliances.

At a press conference on the premises of the Ethiopian Ministry of Industry on Wednesday, Han Shengjian, Deputy Director of Chinese Trade Development Bureau, said the Expo in Africa’s political capital serves as a platform for China-Africa cooperation.

It further deepens China’s comprehensive partnership and cooperation with Ethiopia and Africa in general, the official said.

In his congratulatory message in connection with the Expo, Gao Hucheng, Chinese Minister of Commerce, noted that China is keen to work with African counterparts to consolidate the progress achieved through the Forum on China-Africa Cooperation (FOCAC).

Gao said the Expo, held within the framework of FOCAC, provides a platform to display the Chinese products, technology and services, playing a crucial role in upgrading the Sino-African new strategic partnership.

“China is now willing to work with African counterparts to consolidate the progress made through the Forum, seize new opportunities, identify starting points for mutual benefits and common success, promote a comprehensive, coordinated and sustainable growth of bilateral business cooperation, carry out substantial activities to enrich this new strategic partnership, and make active, continued contribution to the economic development for both sides and the world economic recovery,” said the minister.

Han also revealed that Justin Yifu Lin, former chief economist and Senior Vice President of World Bank, Councilor of the State Council of China and Vice President of All-China Federation of Industry and Commerce, has also written a congratulatory letter in connection with the Expo. Justin Yifu Lin expressed hope that African countries draw upon the developing mode of China to identify and promote industries with latent comparative advantages based on their endowment structure, focus on their limited resources and efforts.

Justin also expressed hope that the Expo could establish a platform for the Chinese manufacturing sectors to combine their strength with                 corresponding sectors in Ethiopia and other African countries,                 supporting the growth of industries with comparative advantages                 in Africa, and achieving a win-win result for both Africa and                 China.

“Ethiopia and China are long-time reliable cooperative partners, “ said Hailemariam Desalegn, Ethiopian Prime Minister, in his message                 for the Expo. “The bilateral relation is faced with huge                 opportunities.”

The Prime Minister hopes that the Expo could become an important platform for China and Ethiopia to carry out economic and trade cooperation, and further promote the exchanges and cooperation between the countries industry and commerce circles thus achieving win-win cooperation.

Also in her message, Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission, said the Expo becomes a platform to promote the exchanges and cooperation between Chinese and African countries.

It also serve as a platform to attract more Chinese enterprises, technology and services into Africa thus achieving common development by complementing the other with its respective advantages, said the chairperson.                

Speaking during the press conference today, Sisay Gemechu, Ethiopian State Minister of Industry, noted that the Expo is an important occasion for the Chinese enterprises and also to the Ethiopian side.

The deputy director of the Chinese Trade Development Bureau noted that in collaboration with the Ethiopian side such Expo would be held on an annual basis here in Ethiopia.

He said Ethiopia has been the venue for the Expo because the country is the seat for the AU Headquarters and that of the UN Economic Commission for Africa.        

http://www.coastweek.com/3650-focus-03.htm

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MeTEC to join forces with Kazakh companies

The Metals and Engineering Corporation (MeTEC)…

11 December 2013 Development News Briefs 

09 December 2013 Developmental News Round Up  

BY Dinfin Mulupi  - 17 December 2013

The recently released Deal Drivers Africa report highlighted trends to expect in mergers and acquisitions (M&A) in the continent in 2014. The report’s research is based on interviews with 100 M&A practitioners operating in Africa, including corporate executives, private equity investors, investment bankers and legal advisers.

The report was published by media company Mergermarket in collaboration with law firm ENSafrica and South African-based bank Nedbank Capital. Here is what to watch out for in M&A activity in 2014.

1. M&A activity on the rise

M&A activity is expected to increase in 2014. Investors will be attracted by the region’s high rate of growth, improved governance and huge wealth of still relatively untapped natural resources.

“Our region is among the fastest growing in the world. This growth is set to continue over the coming years. Considering the sluggish economic recovery in many developed countries, and that M&A activity is essentially procyclical, it is natural that multinational companies that want to expand their businesses through M&A are turning towards high-growth African economies,” said a finance director in Zimbabwe.

2. China’s influence

The growth of M&A activity will be driven by acquisitions by Chinese companies. Most deals will be in the energy, mining and utilities sector as China seeks to secure raw materials to satisfy the huge demands of its own industries. Three of the top 10 deals of 2013 involved Chinese companies. The biggest of these transactions, with a value of US$4.2bn, was China National Petroleum Corporation’s acquisition of a 28.57% stake in Eni East Africa Spa from Eni Spa.

Chinese companies also see the potential to sell their products to the African market, and are looking to set up their own plants in the region by acquiring African companies.

3. Energy is the lead sector

The energy sector accounts for the largest share in terms of both volume of deals and value this year. Nearly all respondents (95%) tipped energy mining and utilities to be among the busiest over the 12 months. A South African head of corporate development said the energy sector has gained tremendous value and foreign investors are flocking in to acquire energy support so they can gain access to the energy resources available.

“Oil, gas and mining assets in Africa are crucial for global companies in terms of securing reserves and ensuring continued production with high margins. Indeed, most deals in extractive industries will have foreign companies partnering with local companies,” said the director of a private equity firm in Togo.

4. The middle class effect

Africa’s burgeoning middle class is inspiring increased M&A activity in the consumer sector as local and global firms capitalise on rising demand. More than half of respondents said the consumer sector will be busiest in terms of M&A in 2014.

“The opportunity presented by Africa’s booming middle class is proving irresistible for global consumer companies, which are increasingly expanding their operations to target brand-hungry consumers. This trend is not limited to foreign companies with domestic consumer companies also growing their business regionally through M&A,” said one Angolan financial director.

5. Outbound activity to Europe

Amongst respondents who expect an increase in outbound M&A from Africa, some 24% take the view that Europe will be the principal destination. This was attributed to favourable valuations in Europe. A financial director in Zimbabwe said outbound M&A activity will be directed towards Europe to acquire technology and distressed assets.

“African companies want to go global and learn the practices of foreign companies so that they can become more competitive in the global market. Considering the distressed situation in Europe and superior technology and famous brands they have, African companies will first prefer European countries for outbound deals,” said a partner at a private equity firm in South Africa.

6. Cross-border acquisitions by African firms on the rise

African companies expanding in the region account for the largest share of M&A deal volumes and this is expected to rise in 2014. The portion of African acquirers has remained broadly steady since 2006, generally accounting for 50%-60% of total deal volume in each year.

“I think African companies are looking to expand regionally and grow their market share so that they can reduce the competition from foreign companies and prevent foreign companies from dominating their markets,” said one partner from a law firm in Nigeria.

“African companies have a lot of cash on their balance sheets, which gives them confidence and aids getting the approval of stakeholders.”

7. South Africa is lead acquirer

South Africa was identified as the region’s most active cross-border acquirer. Notably, South African outbound M&A is expected to rise as South African companies continue to pursue opportunities across the continent.

After South Africa, Nigeria and Ghana were expected to be the next most active cross-border acquirers over the next 12 months in Africa. A managing director in Tanzania attributed this to the two countries’ strong economic growth.

8. Private equity exits on the rise

More than half of respondents expect a spike in private equity exits to increase over the coming 12 months due to the attractiveness of other emerging markets. Despite this, the vast majority of respondents expect an increase in private equity activity over the coming year.

“Price reductions in other emerging markets have given rise to exits in Africa. Valuations in Africa are rising as the demand for African operations increase, leading investors to look for new markets to invest where the valuations are lower and the return on investment is greater,” explained a finance director in Algeria.

Sourced here:  http://www.howwemadeitinafrica.com/report-highlights-2014-trends-in-mergers-and-acquisitions/33515/

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China offers scholarship for 50 Ethiopian university students

ADDIS ABABA, Dec. 19 — The Chinese government through its Embassy in Ethiopia on Thursday offered scholarship for about 50 students of Addis Ababa University (A.A.U.).

The scholarship provides financial assistance of five years to needy students to enable them to pursue their studies at the University. There will be a total of 250 students in five years who will get scholarships.

At the signing ceremony of the scholarship on the premises of A.A.U, Admasu Tsegaye, A.A.U. President, recalled that Addis Ababa University and the Chinese universities had earlier started academic collaboration in different field of studies.

The president said the collaboration with China and the Chinese universities has positive impact as it contributes to the development endeavor of Ethiopia.” We are feeling the impact of our collaboration with the Chinese universities and with the Chinese government,” he said. “Today, we are very happy that the Ambassador offered scholarship for needy Addis Ababa University students. So, this scholarship will assist 50 students for five years. It will provide financial support for the needy and for very good students.”

The president said the collaboration is growing and benefiting the two sides. He also expressed belief that the collaboration between A.A.U. and the Chinese universities would further be strengthened in the future.

“We also started offering courses in Amharic language in Beijing foreign language university. So, the collaboration is a two-way; and so, we are benefiting; both the peoples of Ethiopia and China are benefiting from this type of relationship,” said Tsegaye.

The relationship between the peoples of Ethiopia and China is strong these days, he said.

There are many Chinese companies and industrial zone in Ethiopia, he said, revealing that the university would organize workshop in the near future to facilitate and enable industry- university link. Xie Xiaoyan, Chinese Ambassador to Ethiopia, stated that investing in university students is investing in the future leaders of a country.

Stating that the overall relations between Ethiopia and China are growing, Xie expressed happiness to contribute the education sector in Ethiopia.”So, I am so happy that I can contribute in a limited way to education causes in this country, especially at the Addis Ababa University. We provide financial support for students of excellence, and students in need to further their
studies at the university,” said the ambassador.

“I will continue to do that and this is just one of the steps I have taken. But the bigger picture is the overall relationship between our two countries, especially in the last few years. We have seen growing exchanges in many fields,” he said.

Xie also stated that the students would work for common causes and development of the country. He also highlighted the role of language learning in economic benefit and also in furthering cultural exchanges and better understandings among different peoples. Some of the students who have been awarded the scholarship told Xinhua that they are very happy about the scholarship.

One of the awardees, Getu Tegegn, a Chinese language student at the Addis Ababa University, said all of them feel good and they are happy about the scholarship. It will further strengthen the relations between the two countries, he said.

Mebrahtu Solomon, another student, who also visited China last year, said the scholarship from China motivate the students to further work hard. The Chinese government and the Chinese Embassy give us many scholarship opportunities; and the relationship between Ethiopia
and China is increasing from time to time, he said.

http://english.peopledaily.com.cn/203691/8491012.html

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French Trade minister expected Thursday in Ethiopia

The French foreign trade minister, Mrs Nicole Bricq, is due on Thursday in Ethiopia for a two-day visit aimed at strengthening the economic ties between the two countries, official sources told PANA on Wednesday.

The minister said that the visit was under the framework of the extension of the Elysee summit on “Peace and Security in Africa” held on 6 and 7 December in Paris. This is to strengthen the economic ties with a country that has recorded an average growth rate of 8% over the past few years and whose 2010-2015 five-year plan sets huge investments in terms of infrastructure.

The minister, who will be accompanied by officials of 30 companies, including 9 small and medium size firms and intermediary size businesses, will hold talks with the Ethiopian Prime minister, Haile Mariam Desalegn, the deputy-Prime minister, Debretsion Gebremichael, also minister of Communication and Information technology, and the minister of Finance and Economic Development, Sufian Ahmed.

Bricq will also visit the Hilina enriched food processing center Plc, a partner of the French company Nutriset, that has specialized in the production of food to fight malnutrition.

She will visit the wind power site of Ashegoda, Africa’s biggest wind power station, fully equipped by a French company.

French economic presence in Ethiopia is through direct foreign investments by French companies estimated at over 100 million euro in two sectors – the distribution of oil products (Total group) and viticulture (Castel group).

France is among the main European investors in Ethiopia after the United Kingdom, Italy and the Netherlands.

http://www.africanmanager.com/site_eng/detail_article.php?art_id=21169

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Ethiopia Picked Lazard to Procure its Credit Rating

Ethiopia has picked Lazard Ltd, French investment bank and asset management firm to procure credit rating companies for its debut sovereign Eurobond, Reuters reported today.

In interview with Reuters in October, Ethiopia’s Prime Minister Hailemariam Desalegn said, the country will also consider “not only a Eurobond but other bonds as well”, once it secured its credit rating. a debut sovereign Eurobond next month.

“We chose a French company. The second phase will be to initiate a rating for the country,” Sufian Ahmed, Ethiopia’s minister for finance and economic development, told a business forum attended by a delegation of 30 French firms.

The French delegation included officials from French banks BNP Paribas and Societe Generale, according to Reuters.

Buoyed by massive government spending on infrastructure and a growth in its services and agriculture sector, Ethiopia’s economy is set to grow 7.5 percent in each of the next two fiscal years, according to the IMF.

http://www.2merkato.com/news/alerts/2763-ethiopia-picked-lazard-to-procure-its-credit-rating

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ERA Awarded Chinese Contractor Dessie-Kutaber-Tenta Road Project

Ethiopian Roads Authority (ERA) today signed a 1.5 bln birr contract with China First Highway Engineering Co. Ltd (CFHEC) for the Dessie-Kutaber-Tenta road upgrade project, Walta Information Center (WIC) reported.

The 67.5 km long ten meters wide asphalt road upgrading project will link South Wello Zone to North Wello in the Amhara Regional State.

The Dessie-Kutaber-Tenta has a 24 km asphalt road built during the Italian occupation, which is now in poor condition from years of service. The remaining 34.5 km is a gravel road will be upgraded to asphalt.

“This project is part of the 2013/14 fiscal year annual plan. We believe the project will contribute to the overall economic growth of the area and it’s environs,” Zaid Woldegebriel said during a signing of the agreement at ERA’s headquarters today.

Financing for the project will come from the Ethiopian government and the Kuwait Fund, according to WIC.

“We treasure this opportunity. This project will be very challenging but we will make sure we finish it ahead of time with the required quality,” Yong Sheng, representative of CFHEC, said during a signing ceremony.

Established in April, 1963, CFHEC is an affiliate of China Communications Construction Company which has 15 years presence in Ethiopian road construction. CCCC major recent road projects in Ethiopia include the Addis Ababa – Adama Expressway and Africa Avenue (Bole Road) projects.

http://www.2merkato.com/news/alerts/2762-ethiopia-era-awarded-chinese-contractor-dessie-kutaber-tenta-road-project

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Tsehay Launched Construction on US$ 200 million Real Estate Project

Tsehay Real Estate Plc launched construction of the US$ 200 million International Center, at Yeka Sub City, Addis Ababa, Capital reported.

Qian Tang, a shareholder in Tsehay, said the urban complex will become the second icon of Sino-African cooperation next to the African Union Headquarters. After the copletion of the complex, the Chinese Chamber of Commerce in Ethiopia, Chinese funded organizations, Chinese merchants, a Sino-Ethiopian industrial and commercial organization will move into the complex. This will become the largest urban complex in Ethiopia and an architectural landmark, Tang added.

Tsehay Real Estate plans to complete the construction of the residential buildings within the next two year and eighteen months later, the commercial center, Capital reported quoting Tang.

The construction is being done in cooperation with the Institute of Architecture Design and Research, the Chinese Academy of Science and Qian Tang Construction Plc., Qian Tang told Capital.

“We want to help develop the urban area, create a comfortable living space and boost the real estate industry,” Tang said.

The center will host star hotel, international standard offices, residences, a commercial pedestrian walkway, cinema, fitness amenities and children’s amusement park.

http://www.2merkato.com/news/alerts/2761-ethiopia-tsehay-launched-construction-on-us-200-million-real-estate-project

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Agency Availed 3.6m Hectare for Agricultural Investment

Ethiopia’s Agriculture, Investment and Land Administration Agency availed 3.6 million hectares arable land to investors in the agriculture sector, Ethiopian News Agency reported.

Speaking on a training provided for investors engaged in coffee plantation in Oromia and South Ethiopia Peoples’ States, Agency Representative Asres Argaw said 470,000 hectares land has already been provided for Ethiopian and foreign investors for the cultivation of cotton, palm trees and sugarcane.

The Ethiopian government is working to increase the private sector’s participation in the agriculture sector, Asres said.

Asres said the conducive investment policies and strategies as well as incentives attracted more investors to engage in coffee plantations, a government priority area.

The Agriculture, Investment and Land Administration Agency is a newly established agency aimed at providing integrated support for investors and improve land utilization and production.

http://www.2merkato.com/news/alerts/2759-ethiopia-agency-availed-36-million-hectares-land-for-agricultural-investment

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African centre eyes linking minerals to local industry

The African Mineral Resource Centre, which is launched in Maputo Mozambique during the third African Union African mining ministers meeting today (December 16, 2013) envisages creating linkages between the continents rich minerals and the local industries.

The center secures 15.3 million funding from Canadian government envisages to become the centre of excellence and strategic support provider to African countries in mining related issues.

The envisaged centre of excellence is primarily funded by Canada and Australian governments, who are also known for their investment and the expertise in mining sector globally. Reports show that unless the continent properly manages its mineral resources, which is estimated to have value of $30 billion by 2030, its mineral resources will continue to be curse instead of blessing.

http://newbusinessethiopia.com/index.php/buss/152-investment/565-african-centre-eyes-linking-minerals-to-local-industry

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Ethiopia Welcomes Turkish Investment – State Minister

Members of the Turkish business delegation exploring possible investment opportunities in Ethiopia said they explored vast opportunities for investment in Ethiopia.

During a discussion State Minister for Foreign Affairs, Dewano Kedir, conducted with the delegation, head of the delegation and Board Chairman of a sugar corporation, Mr. Metin Uysal said they were very excited about the opportunities and expressed their enthusiasm to start investment in Ethiopia immediately.

Mr. Uysal also appreciated the support and attention given to them so far and said that Turkey regards Ethiopia as a very important ally. The state minister told the delegation that Ethiopia and turkey witness very strong relationship and has an additional foundation in investment and trade.

The State Minister affirmed the readiness of the government to work closely with Turkish businesses and urged the delegation to start operation in their respective sectors quickly. The fifteen member delegation is composed of business representatives from the steel industry, solar energy appliances manufacturing, mining, textile and garment, food processing and sugar production.

http://allafrica.com/stories/201312200098.html

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Fund Awards Two Grants for Agricultural Infrastructure in Africa

Washington — The African Development Bank’s Agriculture Fast Track Fund (AFT), a new multidonor trust fund created to increase agricultural productivity and reduce poverty, recently announced the recipients of the fund’s first two project preparation grants.

The project preparation grants will help attract investment in agricultural infrastructure projects in Côte d’Ivoire and Tanzania while strengthening links from farmers to markets to tables across Africa, the U.S. Agency for International Development (USAID) said in a December 17 press release.

“As a key supporter of the Agriculture Fast Track Fund, the U.S. government is fulfilling its commitment under the New Alliance for Food Security and Nutrition,” said USAID Administrator Rajiv Shah. “These exciting grants are helping to address food production and food security programs in East and West Africa, and are the first step in leveraging donor funding to catalyze private sector investment in support of Africa’s long-term economic growth and food security.”

In all, six firms from Tanzania, Côte d’Ivoire and Ethiopia were approved for funding under the AFT’s first round of grants, with a total funding amount of nearly $3.2 million.

Created as part of the New Alliance for Food Security and Nutrition and launched in May, the AFT is a nearly $28 million fund to spur agricultural infrastructure development in African countries that are members of the New Alliance, including Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Mozambique and Tanzania.

Launched in 2012, the New Alliance for Food Security and Nutrition is a joint commitment by African leaders, private sector partners, and Group of Eight members to accelerate responsible investment in African agriculture and lift 50 million people out of poverty by 2022.

The AFT finances project preparation grants, enabling firms to finance project design work such as feasibility studies, market analyses and environmental impact and other activities required by banks and other investors to issue commercial loans. The fund is supported by the governments of the United States, Sweden and Denmark.

These are among the first grants to improve African food security and nutrition:

- An award of $551,990 to the National Federation of Food Production Cooperatives to support project preparation for a food production and food security program in Côte d’Ivoire. The project aims to build six warehouses, three rice milling plants and four cassava processing plants, and secure equipment such as drip irrigation systems.

- An award of $220,850 to Darsh Industries for project preparation to set up a tomato processing plant in Iringa, Tanzania. Darsh will build, staff and purchase cargo trucks and equip at least eight collection centers in Iringa to serve as buying and outreach stations for local farmers.

The AFT is currently accepting applications for qualified projects through December 31. To learn more about the AFT, including how to apply for grants, go to the AFT website.

http://allafrica.com/stories/201312191541.html

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Gov’t, employers, employees need to develop dialogue: Ministry

The Ministry of Labor and Social Affairs urged the need to improve dialogue between government, employers and employees and build peaceful industrial relation.

Speaking in a relevant meeting held in Adama Town in Oromia State, the State Minister Dr Zerihun Kebede said establishing peaceful relation between employers and employees is important in ensuring transformation of the country’s agriculture led economy to industry led.

The Minister urged strong dialogue culture need to be developed among the three to realize development.

Peaceful industrial relation director with the Ministry, Zerihun Gezahegn on his part said the workshop is aimed at creating strong and peaceful relation among the three entities and improve production and productivity.

Over 80 participants drawn from the House of Peoples’ Representatives, Employers’ Federation, Confederation of Employees Associations, regional and city administrations and stakeholders are taking part in the three-day workshop.

http://www.waltainfo.com/index.php/explore/11705-govt-employers-employees-need-to-develop-dialogue-ministry-

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Ministry urges stakeholders to work closely to end gender based violence

The Ministry of Women, Children and Youth urged stakeholders to work closely to end gender based violence.

In a relevant meeting held in Gambella Town, the Minister Zenebu Tadesse through a representative said stakeholders should join efforts to end violence against women.

She urged the need to end gender based violence and ensure the social and economic benefit of women.

She urged government agencies and NGOs to contribute share to the efforts of the government towards creating a community that hate and fight violence against women.

State Representative Asheni Asteni on his part said the state government is working hard to end gender based violence and harmful traditional practices in the State.

http://www.waltainfo.com/index.php/explore/11704-ministry-urges-stakeholders-to-work-closely-to-end-gender-based-violence

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Related articles-

• 18 December 2013 News Round Up
• (UPDATED) 17 December 2013 News Briefs

 Temesgen M. Bitew and Tolosa Shagi (pictured)  

  North Holdings to build cement factory               

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• 23 December 2013 News Review (allanapotashblog.org)

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Ethiopia is best known in agriculture. Its over all climate is also conducive to expand sericulture as a major agro-industry. Moreover factors of production like land, labour and skills is forefront for economic development. Sericulture is most suitable for countries or regions having low labour costs, as it is labour-intensive and provides occupation in rural and semi urban areas. The uninterrupted supply of labour force in the country gives an immense opportunity for the development of sericulture and silk industries.

Sericulture will contribute to the growth of a large number of silk industries around the country. The development of industrial sector also contributes to the expansion of employment, output, export and entrepreneurship and in turn help fulfill the socio-economic objectives of the nation. Sericulture industry will also help balance the regional development especially in rural, semi-urban and backward areas in Ethiopia. It is an agro-based industry; it involves the growing food plants for silkworm and harvesting cocoons, reeling and spinning of cocoon for production of yarn etc. Which will later be value added with various processing and weaving. Sericulture also involves improvement of silk yarn, fabric and generating profitable income for rural poor people.

Ethiopia is exporting coffee, and tea products. Sericulture or ready silk has more demand not only in domestic market but also internationally it has a huge demand. Thus, it will a significant economic value and fosters international trade. Agriculture in East Africa is mainly for subsistence. However horticultural products, such as flowers and ornamental plants, and vegetables, have rapidly increased in recent years as non-traditional export products. Expectations are also high for sericulture as a new non-traditional export product to grow fast and contribute to the improvement of income of small-scale farmers.

JAICAF, 2007 reported that sericulture industry is contributing to the economy of 11 countries in East Africa that include Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Seychelles, Somalia and Tanzania, and Uganda. Among these countries, production of cocoons and silk thread from silkworms occurs in Ethiopia, Kenya, Madagascar, and Uganda. Sericulture is an important labour-intensive and agro-based cottage industry. It is mostly a village-based industry providing millions of jobs to rural and semi urban people. For instance, it is providing gainful occupation to around 7.25 million persons in rural and semi urban areas in India. Of these, a sizeable number of workers belong to the economically weaker sections of society. There is substantial involvement of women in this industry.

Silk has a huge demand in western countries. The highest demand is from USA, UK, Italy , UAE, German & Spain. Many silk products are not only in the domestic market but in global markets too.

Sericulture is considered as a subsidiary occupation, even though silk industry can generate employment opportunities to a large section of the society. Sericulture and silk production are labour-intensive at the village level, employing both men and women at all stages of production. In_China, it is undertaken by some 20 million farmers, as well as 500,000 people in the silk processing industry. In India, sericulture is a cottage industry in 59,000 villages, providing full and part-time employment to some six million people from the farm sector, and silk processing industry.

TheWorld Bank estimates that more than 70 per cent of the world’s poor live in rural areas. It not exception to Ethiopia, more than 70 per cent of populous are in rural and semi urban areas in Ethiopia. So far, various strategies have been pursued to address this concern and among the major ones is rural employment creation. The agriculture sector, however, has been contending with a number of factors that have limited its potential for generating new jobs in rural areas. Those factors may include the small land holding size, insufficient capital and investment incentives, the inadequate farm infrastructure, limited market and stagnant prices of agricultural products. It is therefore necessary to focus on a broader spectrum of the rural economy. The establishment of rural based industries like sericulture, in particular, can be very effective in creating new job opportunities and providing supplemental income. Being a rural agro-based labour intensive industry this sector can also play vibrant role in checking migration from rural to urban areas.

Silk has due importance for developing economies primarily because of its contribution to socio economic development. The development of sericulture has become increasingly popular in various countries. Evidences suggest that sericulture has significant importance for socio-economic development. Studies have shown that the sector makes contribution to large scale employment and high income generation. A study conducted in 1998, showed that every acre of sericulture practiced under irrigated conditions had a potential to employ 247 men and 193 women round the year. Studies have further shown that the small scale mulberry farms provided ample opportunities for employment and a potential to solve the problem of seasonal unemployment. Indoor silkworm rearing women participation was as high as 94.67 per cent and that except for the peak period the entire sericulture activity is conducted using family labour. Most of the activities in silk production are informal and menial in nature. Considering the price spread in the whole industry, studies show that 48 of it goes to farming sector.

Sericulture involves both art and science in raising silkworms for silk production. Silk as a weavable fiber was first discovered by the Chinese empress Xi Ling Shi during 2,640 B.C. and its culture and weaving was a guarded secret for more than 2,500 years by the Chinese. Since then Silk has been a profitable trade commodity in China. According to evidences traders from ancient Persia used to bring richly colored and fine textured silks from Chinese merchants through hazardous routes interspersed with dangerous mountainous terrains, difficult passes, dry deserts and thick forests. Though, commodities like amber, glass, spices and tea were also traded along with silk which indeed rapidly became one of the principal elements of the Chinese economy and hence, the trade route got the name ‘SILK ROUTE’. Even today, silk reigns supreme as an object of desire and fabric of high fashion. Being a rural based industry, the production and weaving of silk are largely carried out by relatively poor sections of the society and this aspect of sericulture has made it popular and sustainable in countries like China and India.

Raw silk is of two kinds, namely mulberry and non-mulberry. The distinction arises from the rearing of silk worms either upon mulberry leaves or on other plants. Mulberry sericulture is almost entirely dependent on cultivated plants while vanya sericulture is largely dependent upon forest trees and block plantation. As forest plantation is usually a mixture of the silkworm host plants as well as other plants, it is difficult to clearly indicate the extent of food plants. Considering the vast area of forest plantation, the production of vanya silks largely depends upon the availability of silkworm seed.

Silk industry has provided economic support to many people across the world. Traditionally certain silk patterns and styles are associated with courtship, engagement, marriage, birth, and death. Sericulture industry has a history of over 2000 years and one can still see old silk cloths in museum. However, agricultural history is unknown. At present, the major sericulture producing countries are China, India and Brazil in that order.

In Africa, two types of silkworm are being utilized. That is Mulberry silkworms by Morocco, Algeria, Egypt, Nigeria, Kenya, & Madagascar and another groups are wild silk moths.

Technically the process of sericulture is based on the availability of mulberry leaf and should be ensured before the introduction of the silk worm moth to the project site. Rearing of larvae is not possible unless the feed is readily available in the farm. Hence, planting of mulberry should be carried out before six months from the time of introducing the mulberry moths in order to get adequate leaves for feeding the larvae. The moths will be kept in the multiplication room and will lay eggs. Each moth will lay an average of about 400 eggs. The eggs will hatch into larva after 8-10 days. The larvae will go through different molting stages till it is fully matured and ready to pass into the pupa stage where it will spin silk on itself. The silk worm completes spinning from 48 -72 hours. After this the cocoons will be picked and sun dried to kill the pupa before it breaks out and completes its metamorphoses. Then after, the cocoon will be stored and will be ready for sale. Silk production is totally environmentally friendly business as there is no waste produced by the silk worms.

JAICAF, 2007 reported the East Africa faces the Indian Ocean and is mostly comprised of wet savanna. The cultivated area in East Africa is approximately 19 per cent of all of the sub-Sahara, which has approximately 0.4ha. arable acreage per person. However, the average in East Africa is said to be much lower than the average in all sub-Sahara. In recent years, Africa as a whole has been experiencing increased land pressure due to population growth, and unlike global trends, grain production per person has decreased. Also, human population pressure has led to agricultural land expansion through deforestation, hastening global warming.

In Ethiopia sericulture is at its infancy. However, experts agree that there is a good chance for the sector to grow in Ethiopia and hence stimulate rural employment and economy.

http://www.ethpress.gov.et/herald/index.php/herald/development/5398-sericulture-for-stimulating-rural-employment-industrial-growth

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• Silkworms spin colored silks while on a ‘green’ dyed-leaf diet (eurekalert.org)
• Strive to achieve higher yield, Kavuri tells mulberry farmers (thehindu.com)

Tullow to start mobilization to Chew Bahir  

Tullow will soon drill the Shimela well

The British Oil company that is prospecting for oil in Southern Ethiopia, Tullow Oil, is to start mobilization to Chew Bahir basin at the end of this month. 

Tullow’s drilling expedition drilled two exploration wells – Sabissa-1 and Tultule-1 – in the South Omo basin without much success. Now the drilling crew will soon start mobilization to Chew Bahir where they will drill the third well.

Tullow’s senior corporate affairs advisor, Sisay Zerihun, told The Reporter that the drilling crew will start mobilization to Chew Bahir at the end of this month. The well will be drilled in a locality called Shimela, some 600 kms south of Addis Ababa.

Sisay said access road and other facilities are being built adding that the drilling work will commence exploration in the second quarter of 2014.

“When we reported that Tultule-1 well will be abandoned as a dry well some people thought that we relinquished the whole block but that is not the case. We abandoned the well not the block,” Sisay said. Speaking of the expected result of Shimela well Sisay said, “You can not tell anything unless you drill and see what is in there.”

The South Omo Block is located in the northern portion of the Tertiary East African Rift trend where Tullow Oil and its partners have made five significant oil discoveries in Northern Kenya. The Company and its partners on the South Omo Block spudded the Sabissa-1 well in January 2013 and the well was drilled to a preliminary total depth of 1,810 meters. Hydrocarbon indications in sands beneath a thick claystone top seal have been recorded while drilling, but hole instability issues required the drilling of a sidetrack to comprehensively log and sample these zones of interest. The sidetrack was drilled to a total depth of 2,082 meters.

The well encountered reservoir quality sands, oil shows and heavy gas shows indicating an oil prone source rock and thick shale section which should provide a good seals for the numerous fault bounded traps identified in the basin. Only the lowermost sands appeared to be in trapping configuration at Sabissa-1. Based on the encouragement of the results of this well, the Company decided to drill the nearby Tultule prospect, which appears to be a horst-block structure four kilometers to the east of Sabisa-1. Unfortunately, the Tultule-1 well turned out to be dry and was abandoned.

The Company and its partners have completed a 1,174 kilometer 2D seismic program in the Chew Bahir Basin on the eastern portion of the South Omo Block.

This survey has identified a number of prospects and leads. The Shimela prospect has been identified as the first well in the area and is expected to spud in 2014. A second well location is also being considered for 2014.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1480-tullow-to-start-mobilization-to-chew-bahir

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Japan’s ‘top salesman’ Abe in town      

    

  

Japan’s Prime Minister Shinzo Abe and Ethiopia’s Prime Minister Hailemariam Desalegn in June 2013         

             

- Scheduled to meet the Abebe Bikila’s family

Japanese Prime Minister Shinzo Abe is set to visit Ethiopia on Monday (13th) for a two-day visit.

According to information The Reporter has received from the Ministry of Foreign Affairs (MoFA), the Prime Minister is scheduled to visit the long-standing Japanese Garden in the national palace on Monday, where he will have a brief chat with President Mulatu Teshome (Ph.D.). The PM will also meet with his Ethiopian counterpart, Prime Minister Hailemariam Desalegn, for bilateral talks and the signing of an air service agreement.

The last visit by a Japanese leader to Africa took place in 2006, when then-Prime Minister Junichiro Koizumi traveled to Ethiopia and Ghana.

On his second day in Ethiopia Prime Minister Abe is expected to address the African Union on policy issues. Unconfirmed reports suggest that one of the topics Abe will discuss with Nkosazana Dlamini-Zuma (Ph.D.), chairperson of the African Union Commission, is regarding the crisis in South Sudan.

Japan has been keen to assist the newborn and war-torn South Sudan ever since its independence from Sudan.

Apart from Ethiopia, Abe is also scheduled to visit Mozambique, where Japan has major natural-resource projects under way. The tour will then take Abe on to West Africa.

Abe is well known for “Abenomics” (a portmanteau of Abe and economics), which refers to his bold economic policies. Abenomics was the famous term coined after the Prime Minister introduced a plan in Japan to drastically increase government spending to stimulate the fiscal structure of the government, which although risky led to the country halting deflation (a total decrease in a price of goods and services) after a decade of struggle. Abenomics also looked at the way the central bank of Japan had been operating, and in order to regulate the status of deflation it was necessary for Abe to introduce monetary stimulus packages. The prime objective of the monetary policy designed in Abenomics aims to reduce the real interest rates, which economists tone-down for its negative impact in weakening the Yen.

The Prime Minister’s move to stimulate the economy both in the fiscal and monetary arenas opened the way for critics, while some commentators labeled the plan as the biggest economics experiment the modern world has ever witnessed. Prime Minister Abe also wished to kick start the fiscal policy of Japan in a way aimed at energizing economic growth through increased government consumption and public investment. He has already authorized the introduction of some USD 60 billion (5.3 trillion Yen) in public works spending in line with the 2013 budget. Yet the Abenomic policies remain delicate and open to fierce criticism.

In related news, Prime Minister Abe is poised to pay a visit to the family of Abebe Bikila, the legendary Ethiopian long-distance runner who claimed gold in the marathon at the 1964 Tokyo Olympics. Abebe won in a world record at the time, and is well remembered for his spectacular appearance at the summer games. His biography states that 40 days prior to the 1964 Olympics Abebe was struck down by pain during a training run near Addis. Not knowing the cause he tolerated the discomfort before collapsing. After being rushed to hospital Abebe was diagnosed with acute appendicitis and forced to undergo an operation. Soon after – even in his recovery time – he was jogging in the hospital yard at night.

Prime Minister Abe is the first high-level official to visit Abebe’s family, and it is already being seen as a highly symbolic tribute.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1485-japans-top-salesman-abe-in-town

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Chinese minister pledges support during official visit

  

  Wang Yi and Tedros Adhanom (Ph.D.)

The Chinese foreign minister Wang Yi started his official African visit in Ethiopia last Monday, before moving on to Djibouti, Ghana and Senegal.

The minister held talks with his Ethiopian counterpart, Tedros Adhanom (Ph.D.), in Addis Ababa on Monday as part of his tour of sub-Saharan Africa, and went on to visit the headquarters of the African Union (AU).

Chinese support to the AU and Ethiopia will continue, the minister confirmed, adding that China will extend technical support for the AU headquarter building until 2016.

The two foreign ministers discussed ways of strengthening bilateral relations between the two countries, and also issues relating to peace and security in the region. Wang appreciated Ethiopia’s role in ensuring peace on the African continent. He said the Chinese government is committed to supporting all the efforts to resolve the current crisis in South Sudan.

Tedros stated that the relationship between China and Ethiopia is based on the South–South cooperation, and Chinese assistance is based on projects prioritized by the Ethiopian government.

Major development schemes are being carried out with support from China, which Tedros said has contributed to the successful implementation of Ethiopia’s Growth and Transformation Plan (GTP). He went on to highlight the support of the Chinese government in the economic integration of African countries.

The Chinese Foreign Minister also met and held talks in Addis with President Mulatu Teshome.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1476-chinese-minister-pledges-support-during-official-visit

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 Universal approval greets new Minister of Mines

    

Tolossa Shagi Moti

Written by  Yonas Abiye                        

State minister of mines and former chief of the Ethiopian Geological Survey, Tolossa Shagi Moti, has been sworn in as the new Minister of Mines before the House of Peoples’ Representatives (HPR).

Upon the approval of the Council of Ministers, the Prime Minister presented Tolossa’s nomination for the House’s endorsement. He takes over from Sinknesh Ejigu, who resigned from her office last month and has reportedly been assigned to head Ethiopia’s diplomatic mission in one of the world’s emerging economies, Brazil. It would make Sinkensh the first Ethiopian ambassador to the South American nation.President of the Federal Supreme Court, Tegegn Meles, led the oath ceremony.

Before securing the endorsement Tolossa had served as the state minister of mines since 2011.

Government Whip of the House, Roman Gebreselassie, presented the credentials of the newly appointed minister, whose nomination was endorsed with an absolute majority vote.

After hearing Tolossa’s profile MPs praised the nominee during the discussion session.

According to the profile presented before the House, Tolossa has spent all his educational career and working experience in the geological and mining sectors.

He received his Bachelor of Science in geology from Addis Ababa University in 1982, and Master of Science in applied geology from the Indian Institute of Technology. Tolossa has also completed short-term training at home and abroad in various fields, including geo-science, management and mining resources development administration.

Unlike the conventional trend of the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF)-led government, Tolossa’s nomination gained acceptance because of his educational background and rich working experience, which directly fits the requirement.

From 1983 to 2010 he worked for the Ethiopian Geological Survey, starting as a junior geologist and working up to the post of director general. He also served as a senior geo-technique expert at the Ministry of Agriculture for six years.

For twenty years Tolossa acquired rich experience in the mining sector, notably as an expert in geological survey mapping, mining exploration and geo-technique investigation. The government has prioritized the mining sector as an area for development.

After the EPRDF assumed power in 1991, Ezedin Ali, a mining engineer, was appointed as what was then the Minister of Mines and Energy. After Ezedin none of the following incumbents heading the Ministry of Mines had direct qualifications that meet the technical nature of the mining sector. Ambassador Mahmud Drir was a political science and journalism graduate, while Alemayehu Tegenu and Sinknesh Ejigu were graduates of hydrology and chemistry respectively.

Meanwhile, sources told The Reporter that the newly appointed minister is expected to face “serious” challenges with regards to high staff turnover. However, they indicated that Tolossa’s appointment is expected to be warmly received by the employees, as he knows the sector well and has a strong educational background.

The source also revealed that most experts have left the ministry for private mining companies in search of better pay.

Ed.’s Note: Kaleyesus Bekele has contributed to this story.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1482-universal-approval-greets-new-minister-of-mines

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Former regional president gets 7 years for corruption

  

Yaregal Ayesheshum

By Bezawit Zegeye

Yaregal Ayesheshum, former president of the Benishangul Gumuz Regional State, was sentenced on Friday to seven years in prison and fined 20,000 birr at the Federal High Court 15th criminal bench in Lideta.  

Yaregal and his associates were handed sentences varying from six to 15 years, with fines ranging from 20,000 to 60,000 birr.

The charges brought against Yaregal and the other defendants by prosecutors of the Federal Ethics and Anti-Corruption Commission (FEACC) include abuse of power and corruption, and using their power to gain personal profit. The accusations were leveled two years ago and they were eventually found guilty on Nov 20, 2013, after a lengthy court case.

After the verdict prosecutors of the FEACC argued for aggravating circumstances, while the accused pleaded to the court for favorable terms. After hearing both sides the 15th criminal bench passed the sentences. The former president of Benishangul Gumuz was found guilty on the charge of abuse of power and corruption, which the FEACC had proved without doubt.

The second defendant, Habtamu Hika, the former speaker of the Benishangul Gumuz Regional State council, was found guilty on three counts and sentenced to 15 years imprisonment, coupled with a 45,000 birr fine.

Assefa Gebeyehu, the third defendant, was also found guilty on three counts, and he received a 15 year jail term and 60,000 birr fine. In addition the 15th criminal bench found Gedion Demeke, owner of Gedion Demeke Consultancy, guilty and sentenced him to 14 years imprisonment together with a 60,000 birr fine. The court also sentenced Gezahegn Adregneh, manager of Gade Construction, and Mekebeb Moges, manager of Alkan Construction, who were both found guilty on one count and given six year jail terms with fines of 25,000 birr each.

The FEACC failed in the case against the seventh defendant, Hailegabriel Hika, brother of Habtamu, who was acquitted by the court.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1484-former-regional-president-gets-7-years-for-corruption

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Ethiopia established WTO-TBT  National Enquiry Point

Ethiopia has established the WTO-TBT (Technical Barriers to Trade) National Enquiry Point under the Ethiopian Standards Authority, The Ethiopian Herald reported.

Establishment of central authorities, such the the National Enquiry Point, facilitating free trade is one of the prerequisites of joining the global trading body.

According to Geremew Ayalew, Trade Relations and Negotiations Director at the Ministry of Trade, the World Trade Organization’s principle of transparency requires the establishment of Enquiry Points and Notification Authorities (NA).

In addition to the Enquiry Point, Ethiopia would also establish Notification Authority under the Ministry of Trade in the future, Geremew said.

“The WTO-TBT and WTP SPS (Sanitary and Phytosanitary Measures) agreements are the key multilateral instruments put in place to deal with standards related non-tariff barriers to trade”, Dr. Oswald Chinyamakobvu, standards consultant said at a stakeholders meeting on the Enquiry Point yesterday.

Dr. Chinyamakobvu also said, the WTO-TBT agreement seeks to ensure that technical regulations and standards, as well as testing and certification procedure, do not create unnecessary trade barriers.

The National Enquiry Point will accept trade related queries from WTO member states about Ethiopia’s products. It will also provide local exporters with information relating to compliance requirements when exporting their products, according to Etsegenet Tasew, Acting Documentation and Publication officer of the Enquiry Point.

http://www.2merkato.com/news/alerts/2796-ethiopia-established-wto-tbt-national-enquiry-point

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Diplomats, experts seek improved ties between Nigeria, Ethiopia

DIPLOMATS and experts in international relations from Nigeria and Ethiopia have jointly called for expanding of frontiers of cooperation between the governments, agencies and peoples of the two countries.

Underscoring the need for improved relations between the two countries, speakers during the signing of Memorandum of Understanding (MoU) between Nigerian Institute of International Affairs (NIIA) and Ethiopian International Institute for Peace and Development in Lagos on Tuesday called for strengthening of diplomatic cooperation to include economy, trade and investment, research and education, military as well as abolition of visa fees.

Speaking at the ceremony, Ambassador of Ethiopia to Nigeria, Abdo Alli, noted that the relations between Nigeria and his country are strategic and mutual since both countries enjoyed shared experience running into many decades.

Alli claimed that both countries are the two most populous nations in Africa with many ethnic nationalities and Federal system of government.

He also traced relations between the two nations to formation of Organisation of African Union (OAU), decolonisation of the continent, promotion of peace and security.

The envoy said he was equally looking forward to improved economic, investment and other relations between the two countries.

To show that the future is great, Alli mentioned the increase in cargo and passenger flights from Lagos and Abuja to Addis Ababa and from Addis Ababa back to the Nigerian capital and commercial centre.

He said more Nigerians are investing in Ethiopian economy while others are visiting in search of investment opportunities.

According to him, this would soon bring the chambers of commerce in the two countries together in order to promote trade and investments.

He also expressed his readiness to strengthen parliamentary ties, educational researches and bridge information gaps.

“We are in the right track and I hope we will in the future achieve more,” he said.

Responding Director-General of NIIA, Prof. Bola Akinterinwa, while tracing the processes leading to the event, thanked the envoy for bringing the two bodies together.

He hoped that the signing of the MoU would be the beginning of leading the way for other African countries to move away from dependency on developed countries improve people-to-people and government-to-government cooperation.

He also promised that the MoU would not gather dusts but work effectively and efficiently as aspired by the two research institutes.

But the Executive Director, Ethiopian International Institute for Peace and Development, Mr. Sebehat Negga, in his remark, blamed African elites for the problems bedeviling the continent.

Saying that Africa should not blame developed countries for its problems, he reasoned that most of the elites were mystified after independence and abandoned the needs of their people.

He lamented that Africa is appealing to China to come to Africa “and not China begging Africa to come to China.”

“If Africa is to reshape itself, overcome its problems, we have to do our homework, cooperate on equal basis, according to each others’ values,” Negga said.

Meanwhile, A professor of International Law, Akin Oyebode, at the event, appealed to Ethiopia and Nigeria to abolish visa fees.

Oyebode reasoned that the time has come for Africa to stop going about begging developed countries for help.

He took an exemption to China building and equipping a secretariat for African Union (AU). According to him, Nigeria alone can build such a secretariat for AU.

He hoped the MoU would work to facilitate the strengthening of research cooperation between the two institutes.

A retired Nigerian ambassador, Tayo Akinsulire, also supported Oyebode in this regard, calling for increase in frontiers of cooperation.

http://manchesterwww.ngrguardiannews.com/index.php/news/world-news/142973-diplomats-experts-seek-improved-ties-between-nigeria-ethiopia

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Africa’s Economic Blocs Set To Tackle Trade Barriers

VENTURES AFRICA – In a move that that could eradicate trade barriers and bolster earnings of each partaking country, three African economic blocs are set to form a larger economic market which will include 26 countries in Eastern and Southern Africa, it emerged this week.

“Considerable progress has been made and negotiations have intensified to ensure that we clinch the Tripartite Free Trade Agreement (TFTA) by June 2014,” Dr Richard Sezibera, the chair of the Tripartite Task Force, was quoted as saying on AllAfrica.com.

He said the last three-way gathering was held late last year in Arusha, Tanzania.

The TFTA is a free trade treaty signed by three African economic communities, which include COMESA, EAC and SADC. It has a total of 600 million people and a $1 trillion GDP.

It is believed that COMESA, EAC and SADC would form the single free trade area in the next two years to bolster intra-regional trade.

According to economic experts, it could quicken the regions’ economic growth.

This agreement could also develop the region’s infrastructure which could also boost the economies of individual countries.

It is understood that elimination of trade walls such as import and export fees would permit countries to improve their revenues and enter new markets while paying towards their national advancement.

http://www.ventures-africa.com/2014/01/africas-economic-blocs-set-to-tackle-trade-barriers/

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Ethiopian Consul General in Guangzhou meets with official of the Province

Melaku Legesse met with Chen Yuehua, Deputy Director General of The Department of Foreign Trade and Economic Cooperation of Guangdong Province, on January 8, 2014 and discussed on issues of mutual importance. 

Chen briefed the Consul on the economic performance of Guangdong province and achievements in different economic sectors particularly in trade and in attracting FDI.

Chen noted with satisfaction that the annual export of the province has exceeded a trillion USD last year.

Melaku explained the economic transformation taking place in Ethiopia and the progress on the implementation of the Growth and Transformation Plan of the Ethiopian Government.
The Consul expressed gratitude for the continued support of the Department of Foreign Trade and Economic Cooperation of Guangdong Province and reiterated his confidence that the cooperation with the Department will continue to be further strengthened particularly in encouraging Chinese businessmen and companies to invest in Ethiopia.

Chen assured the Consul that the cooperation will continue to strengthen and expand.

Melaku Legesse has resumed his duties as the Consul General of the Federal Democratic Republic of Ethiopia in Guangzhou in December 2013.

http://www.waltainfo.com/index.php/explore/11984–ethiopian-consul-general-in-guangzhou-meets-with-official-of-the-province

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Arjo-Didesa irrigation project -  Will it escape the summer rain?

 The Arjo-Didesa dam under construction

“The dry season in this area lasts only up to four months. Considering the fact that the rainy season is drawing nearer, our construction work is lagging behind schedule. Therefore, we need to compensate for the time wasted so far by increasing our efforts at least by three fold; otherwise, it will be almost impossible for us to finish the work according to schedule,” said an expert during the visit of Arjo Didesa sugar development project last week expressing his concern over the delay in the construction work of the dam.

He added, “If we cannot work hard to finish the water bed of the dam and divert the river in the coming four months, the summer rain will demolish all our efforts.”

The expert told the visiting delegation that if major construction works of the dam could not be completed before the onset of the rainy season damages would be high. The expert also urged all working force on the project to demonstrate commitment and give due attention to the project so that the basic construction work would be completed in four to five months period.

So far the excavation work on the right and left side of the dam has been completed. The project is also expected to start constructing the water bed of the dam soon. Oromia Water Works Bureau is in charge of managing the project, while a Chinese Constructor is undertaking the construction work.

The construction work involves digging the ground on which the water lies 40 meters deep, and blocking any possible leakage of underground water to the upper surface of the dam’s water bed. Preventing the underground water leakage to the dam surface is very difficult and it requires building a thick concrete bed which is critical for the strength of the dam.

Among the various activities to be accomplished before the onset of the summer season include, building the water bed and 22-meter long channel which will enable to reduce the volume of water while constructing the main dam as well as laying down a concrete canal that transport the diverted water. Arjo Didesa Suger cane Irrigation Development project is one of the projects set to meet the goal in the sugar industry development.

The construction of this dam is, however, is lagging behind compared to that of any other government sugar development projects in the country.

During the visit it was observed that the workers were putting every effort to complete the major construction work before the coming rainy season interrupts it. Unless the dam is completed before the onset of the rainy season damages will be high as a result of the rain. Addis Zemen asked the experts what caused the delay of the construction work over the past two years.

According to the Expert, the western part of Ethiopia receives a longer period of rainy season than any other part of the country, which is one factor that contributed to the delay of construction. Construction work was scheduled to be launched last September but for the rainy season lasted until the month of November, it was not convenient to undertake construction work. The experts also pointed out that the delay in budget allocation by the Ministry of Finance and Economic Development also contributed to the delay in the construction work.

Moreover, shortage of experts and machinery were also among the factors that held back the pace of the construction work particularly in the early days of the project.

As experts explained during the visit to the project, now the project implementers plan to increase the construction work threefold in order to make up for the time wasted in the past. If construction work is to take place at the stated magnitude, it will be possible to complete 80 per cent of the entire project work before the rainy season.

The Didesa Arjo project will have a total of four main dams. When it is completed, the project will become one of the few Mega Sugar projects in country. Out of the 80 thousand hectare of land planned to be irrigated by the end of the project, around 50 thousand hectare will be utilized for sugarcane plantation.

Meanwhile the remaining 30 per cent of the land will be irrigated by farmers in the surrounding areas. According to the project manager, Mengestu Mekuria, although the construction of the dam which was launched in early 2003, only 15 per cent of the construction work has so far been completed.

The manager also noted that the performance of the construction work was by far better this year compared to that of the previous years.

For the project to be realized based on schedule, contractors, consultants and other stakeholders will have to work hard in collaboration. At present there is no significant shortage of skilled man power and machinery, according to the project manger. “There is no problem in terms of skilled man power, however, the site is not suitable for construction work, ”said Mengestu.

He further said Didesa river is a big river that the volume of water could cover the whole surrounding environment of the project during the summer season. The manager also indicated that the project has enough machinery that can meet the existing project requirements.

The project activities are being supervised by the Natural Resource Development and Environmental Affairs standing committee of the House of People Representatives.

Deputy Chairperson of the standing committee, Dr. Gemechu Dinagde said the project was being implemented at a faster pace when compared with that of previous years. “We have seen many improvements signaling changes in the implementation of the project,” said Dr. Gemchu appreciating the commitment demonstrated by the employees in bringing such improvements.

The standing committee also evaluated the project performance so far which according to the chair showed commendable progress. The committee also evaluates all other sugar projects in the country.

In the last few years many dam projects in various parts of the country were alleged for delay in construction. Therefore, the standing committee’s recommendations were vital to the improvements in all the projects. To enable all the sugar projects to meet schedule set in the Growth and Transformation Plan, the close follow up and supervision of the standing committee will have a critical role.

One of the major challenges in the implementation of all mega sugar projects is the nature of environment. One of the issues committee assessed during the supervision is whether the project is environment friendly or not. The project should have little or no impact on the environment so that it won’t contradict the green development strategy set in GTP.

The Deputy Chair of the Standing Committee also noted that the Arjo Didesa Sugar development project will have a paramount significance to the surrounding community as the Didesa river crosses three Oromia zones. The standing committee does also evaluate whether the project is implemented in such a way that employment creation opportunity is well considered in the project.

Water Irrigation and Energy Minister, Alemayehu Tegenu on his part called for the participation of all actors to finish the project within the shortest time possible before the dry season ends. The Minister said the ministry is committed to provide support to the project as necessary.

The fact that Didesa river crosses Jima, Illibabur and eastern Wolega zones, gives an opportunity for the project to receive support from the federal and regional government as well as zonal administrations.

The Arjo Didesa dam will be 47 meters high and 502 meters wide. The volume of water in the dam is estimated to be around two billion cubic meters. The cost of the project is estimated to be 1.3 billion birr.

http://www.ethpress.gov.et/herald/index.php/herald/development/5552-arjo-didesa-irrigation-project-will-it-escape-the-summer-rain

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Biodiversity panel gives indigenous knowledge core role

Indigenous and local knowledge is set to play a major role in biodiversity and ecosystem management, a meeting of an intergovernmental body has heard.

At its second meeting – held in Antalya in Turkey, last month (9-14 December) – the Intergovernmental Platform on Biodiversity & Ecosystem Services (IPBES) decided to extend its focused assessments of such knowledge over the full five years of its work programme.

In addition, the platform will provide funding and technical support to help integrate indigenous knowledge into the assessments.

IPBES was established in April 2012 with a mandate to assess the state of the world’s biodiversity and ecosystems, and help policymakers make well-informed decisions. A founding principle is to integrate indigenous and local knowledge into conservation processes.

“What has been done – and what is rather unique – is that IPBES decided at Antalya to firmly place indigenous and local knowledge within its work programme. And it has not been marginalised within it, but feeds into all the different components of the work programme,” says Douglas Nakashima, head of the Local and Indigenous Knowledge Systems programme at UNESCO (the UN Educational, Scientific and Cultural Organization).

Including indigenous and local knowledge holders in decision-making processes will ensure that those decisions are more appropriate for their communities and their sustainable use of resources, says Nakashima.

“If decisions about how biodiversity should be managed are in line with the aspirations, priorities and understanding of local communities, we would hope for an improved biodiversity management process,” he adds.

An ‘innovative endeavour’

Anne Larigauderie, head of the IPBES Secretariat, says that engaging indigenous communities early on so they can shape its work is an “innovative endeavour” that no organisation has attempted before.

“The Intergovernmental Panel on Climate Change did not do this, for example. Of course, in the case of biodiversity, indigenous and traditional knowledge is even more relevant because of the local dimensions,” she says.

At the Antalya meeting, IPBES also decided on two fast-track assessments to be completed this year. One will be on pollination and its relationship to food security, the other will review the tools available to predict future changes to biodiversity and ecosystem services based on various social and economic scenarios.

In addition, the indigenous people at the meeting formed a group called the International Indigenous Forum on Biodiversity and Ecosystem Services (IIFBES).

This new forum is intended to allow indigenous and local knowledge holders to coordinate contributions to the work programme by reaching out to existing organisations and facilitating access to IPBES structures and activities, says Joji Cariño, director of the Forest Peoples Programme, an NGO that advocates forest management based on indigenous knowledge.

“For example, the Indigenous Partnership for Agrobiodiversity and Food Sovereignty, which has an Indigenous Peoples’ Pollinators Initiative in India, Kenya and Ethiopia, was linked to IPBES, to facilitate its contributions to the IPBES fast-track assessment on pollination and pollinators associated with food production,” she adds.

At the Antalya meeting, IPBES also decided to develop a capacity building programme, including the provision of fellowships and training programmes, designed to ensure that scientists from all regions of the world are engaged at an equal level. The training and fellowships will be targeted at developing world scientists, including young researchers.

The capacity building plans will “allow input from everyone, not only northern countries where most of the funding resources are, but not the biodiversity itself”, says Larigauderie.

“One important principle is that capacity building activities will not be run independently of the work programme, but will form an integral part of the core implementation of IPBES,” she adds.

Nakashima tells SciDev.Net that the platform’s real challenge will be whether it can use its resources and aspiration to produce concrete results.

And Cariño says: “If successful, this will be a hallmark achievement of IPBES to be truly multidisciplinary, embracing knowledge diversity.”

http://www.ethpress.gov.et/herald/index.php/herald/development/5559-biodiversity-panel-gives-indigenous-knowledge-core-role

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Related -

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-     10 January 2014 News Round Up

By Matthew Dalton

Lake Wenchi, Ethiopia—In the green highlands here southwest of Addis Ababa, farmers like Darara Baysa are proud owners of cellphones that run on a network built by China’s ZTE Corp.

Yemeserach Hune

Tigrai Onlne – January 10, 2014

Ethiopia has been working to reach the middle-income status in 20 to 30 years for the last decade. Under a committed leadership and well-crafted policies of a developmental state, a double-digit annual GDP growth has been registered since 2003 under the PASDEP and a preceding poverty reduction plan.

In 2010, when the peoples showed their approval of the progress made thus far and their endorsement of the developmental state direction through ballot box, the government and the ruling party decided to scale-up the developmental efforts and targets to match the public’s hopes and aspirations.

In the week after the election, the late Prime Minister Meles Zenawi publicly promised to come up with an improvised plan that expedites the Ethiopian Renaissance. A few months later an outline of a breath-taking Growth and Transformation Plan (GTP) was presented for public consultations. Ethiopians across the country discussed and provided inputs, which were assembled at the centre and further reviewed by experts. Shortly after that, the government unveiled a fully-worked out 5-years GTP document as a medium term national development framework.

The GTP with almost a Trillion Birr budget and spending more than 60 percent of that on poverty oriented sectors, such as agriculture, education, health care, water and road development is directed towards: “achieving the Millennium Development Goals (MDGs), Ethiopia’s long term vision and sustaining rapid, broad based and equitable economic growth anchored on the experiences that have been drawn from implementing pro-poor and pro-growth development policies and strategies undertaken since 1994″.

The plan aims at four main objectives:

(1) maintain at least an average real GDP growth rate of 11.2 percent and attain MDGs

(2) expand and ensure the qualities of education and health services and achieve MDGs in the social sector

(3) establish suitable conditions for sustainable nation building through the creation of a stable democratic and developmental state; and

(4) ensure the sustainability of growth by realizing all the above objectives within a stable macroeconomic framework.

The plan was met by doubt and scepticism in the media and some part of the elite. But the government was determined. It even made it clear that Ethiopia will maintain at least the 11.2% growth until 2025 and join the rank of middle-income countries.

That will mean a significant shift towards industrialization. As projections show, by 2025, the share the agriculture sector would be only 29% of the economy, while industry and service would take 32% and 39% respectively.

As the GTP mostly consist massive plans of expansion and scaling-up as well as mega projects, many suspected it couldn’t be attained. But the outcome on the ground was the opposite. Even some foreign financers, who previously expressed their scepticism public, are now pledging to provide the largest amount of fund they ever gave to Ethiopia. Because, most of the targets of the GTP and the MDGs are on track and even ahead of target in some sectors.

The production of major crops, which stood at 193 million quintals, is projected to reach 225 million quintals this year and on track to 260 million quintal by 2015. This doesn’t include root crops, fruits and vegetables, spices and the like.

The increase in production and productivity of the agriculture sector is expected to continue at even faster rate, given the surge in the coverage of agricultural extension services, which benefitted 14.3 million farmers, agro-pastoralists and pastoralists in the last year.

The industrial sector continued its stride with about 15% growth rate in the past three years.

The performance in terms of job creation is well ahead of the target for each year. About 700,000 jobs were created through micro and small enterprises (MSEs) and housing projects in the first year of the GTP, while more than 1.1 million jobs were generated in the year 2011/2012.

In the second year, about 1.7 million jobs had been created, among which 50% allotted for women. 343,000 graduates of higher education and technical and vocational institutions are planned to benefit from the new job opportunities.

The job creation continued at similar rate in the third year as well. Close to four million jobs were created across the country in total in the three years of the Growth & Transformation Plan period.

The performance exceeded the target by over a million. The success was attributed to the expansion of micro & small enterprises (SMEs) and a number of on-going huge projects.

The Ministry of Urban Development & Construction (MoUDC) indicated that about one million of the jobs created during the reported period were temporary and it is striving to make the jobs sustainable.

Town administrations have been facilitating loan service, land for manufacturing and marketing, and technical and vocational trainings for micro and small enterprises. The government has decided construction of infrastructure facilities be labour intensive in a bid to create more jobs.

The progress in mega projects is in line with the schedules laid out in the Plan. The progress on the Grand Ethiopia Renaissance Dam (GERD) has now reached 30%, while construction of the Gibe III dam is over 75% complete.

The installation of modern telecommunication links with landlines and broadband services had continued and the number of mobile phone users now exceeded 22 million, while the number of internet subscribers reached 2.5 million. Nearly 90% of villages are connected to telecom service and in fiber optic laying more than 10,000 kms are on the ground linking to the international routes.

The expansion of ICT infrastructures and services to schools and woredas is well underway. The School Net program integrated 1000 schools to the national system enabling for video broadcasting and internet services. The Woreda Net program similarly connected 630 Woredas paving the way to build a transparent and accountable system and increase public participation.

Another key infrastructure, the road development is progressing on schedule with the construction of 86,000 kilometres of road at a cost of some 20 billion birr. Though the government was covering some 90 percent of the cost from its own resources, the 8 bln birr loan of 2013 from World bank ensures the road development will meet the targets set in the GTP by 2015.

The target to build more than 2600 kilometres is expected to succeed by 2015. The detailed design works of most of the routes are already complete and advanced training of thousands of necessary professionals is well underway in higher institutions sponsored by the Ethiopian Railway Corporation.

There are promising developments, including signing MoUs and contracts, for the financing of these with loans from India, Turkey and China to finance railway projects. The new Addis Ababa -Djibouti railway project had been commenced in June 2012.

In education sector, Ethiopia has reached nearly 95% primary level educational attainments with 20 million students in schools. At the tertiary level, thirty one universities staffed with 23,000 thousand instructors are serving half a million university students, while another 370,000 youth are attending technical and vocational education.

Track laying for the Addis Ababa Light Railway Transit project was officially commenced in the third year of the GTP putting an end to all the talks of those who have routinely been claiming that the project is a pipe dream.

The Addis Ababa Light Rail Transit project is an electrified light rail transit system with a total length of 34.25-kms (North-South line 16.9-kms and East-West line 17.35-kms).The two lines which are the North-South and East-West lines use common track of about 2.7-kms with a Standard Gauge of 1.435 meters and double track for the whole route.

Out of the total 32-kms main line of the phase one project, some 7.6-kms is covered with bridges which would be constructed in six locations. Once completed which would be 1 1/2 year, AA-LRT will have a capacity of transiting 80,000 passengers per hour.

One of the special features of the Project is that it performs on steep gradient and sharp curves and the fact that it is environmentally friendly as it reduces carbon dioxide emission. Trains with a capacity to carry around 300 people will start work in the first phase of the project completion. The Addis Ababa Light Railway Transit project, despite its significance, is not the only mega project launched to transform Ethiopia’s economy and advance the social-economic stride.

The 756 kilometer-long electrification project, linking Addis Ababa to the Port of Doraleh in Djibouti, is another priority project of the GTP. The Ethiopian section of the project is now more than 25 percent complete; and Djibouti launched construction of the 100 kms line within its territory last month. With the China Railway Engineering Corporation building the 317km segment from Sebeta to Meiso, the 339km from Meiso to the border town of Dawale, and the third100kms to the port of Doraleh, more than a quarter of the work is completed while the rest is progressing as per plan. The Addis Ababa Djibouti line will have 17 major stations and pass through DebreZeit, Adama, Metehara and Dire Dawa.

Of which, the 107kms from Addis Ababa to Adama will be double track and the remaining 549 kms will be single track. It is now certain that the new Ethiopia – Djibouti Railway line will be finalized within the Growth and Transformation Plan period by 2015.

These project are part of the two-phased plan unveiled in 2010 to construct a 4,850long railway, with 8 main rail routes and expected to connect about 49 towns, under the purview of the newly established Ethiopian Railway Corporation.

A 656 km long rail route that stretches from Sebeta, near Addis Ababa, to Dewele, which is located near the border of Djibouti, is amongst them. Not to forget, the old 781 kms railway line from Dire Dawa to Djibouti that has been maintained and started operations a few months ago.

However, despite what the detractors routinely claim, the main source was not foreign donation. Of the total amount spent, 77 percent was by the government. One of the major works in that regard is the two roads linking the Addis Ababa-Adama Expressway with Addis Ababa City into two directions. The 28.1-km roads Addis Ababa-Adama Expressway is being constructed at a cost of more than 4.2 billion birr allocated by the government of Ethiopia and loan obtained from Chinese Exim bank. Another major example is the construction and renovation of 1,700-kms roads carried out in the Benshangul -Gumuz State with over 172 million birr in the last twelvemonths.

One of the major works in the transport sector is the two roads linking the Addis Ababa-Adama Expressway with Addis Ababa City into two directions. The 28.1-km roads Addis Ababa-Adama Expressway is being constructed at a cost of more than 4.2 billion birr allocated by the government of Ethiopia and loan obtained from Chinese Exim bank. Another major one is the construction and renovation of 1,700-kms roads carried out in the Benshangul -Gumuz State with over 172 million birr in the last twelve months.

Similarly, the capital city Addis Ababa, which has long been horrible in its roads network has seen a major leap unprecedented in her recent history. Addis Ababa has constructed more than 1,219- kms road in the last five years with more than 10 billion birr budget. Now, Addis Ababa’s road coverage has reached 15.64 per cent raising the network to4,148-kms of which 2002- kms is asphalt , 727-kms cobblestone and the remaining1,419- kms is gravel.

In the processes, the city created jobs for more than 50,000 youths and women in cobblestone road construction. The same can be said with regard to other sectors of the transport industry. The government owned Ethiopian Air Lines serving people local and abroad remains as one of the best airline in Africa and continues to be a reputable enterprise in the world.

Now, the Ethiopian Airlines have six dedicated freighter aircraft currently operating two Boeing 777-200 LR freighters, the first to be operated in Africa, with two MD-11, and two Boeing 757freighters out of two hubs — main hub Addis Ababa and Liege, Brussels. The airline operates to 25 cargo destinations in Africa, Middle East, Europe and Asia. Having a vast cargo network — 15 in Africa, seven in MiddleEast and Asia and two in Europe — Ethiopian operates in major trade lanes between Africa and Europe, Middle East and Asia, providing a convenient and reliable cargo service to and from the continent. Boosted by the growth of perishable exports from Ethiopia, the airline is now expanding its cargo network and fleet and aims to set up cargo hubs in Central, West and Southern Africa to cater for the growing need for reliable and affordable air cargo transport to and from the continent. Ethiopian cargo is at the final stage to be one of the seven business units of Ethiopian aviation group.

By 2025, Ethiopian plans to uplift 820,000 tonnes of cargo using 15 jet aircraft. To support the airline’s fast growth and achieve its goal in continuing to be the leading cargo service provider in Africa, existing facilities are also being upgraded and new ones are being built.

Of course, the data above is simply to give you a brief glance based on what I could collect from the media, mostly months old. The progress made so far in terms of all the 7 pillars of the GTP and their wide-ranging significance for the country cannot be sufficiently presented in a short article like this one.

As the President said at the opening session of the parliament: “Ethiopia is undoubtedly moving on the right path towards rapid and sustainable development. The effect of Ethiopia’s progress is also “beginning to have a trans-boundary impact [and] many continue to express their hope to see Ethiopia maintain and continue on the right path of development in a post-Meles era”.

Sourced here:  http://www.tigraionline.com/articles/ethiopia-strides-gtp.html

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Related:

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-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia confident of completing Ethio-Djibouti rail project in GTP period

-     Performance of agriculture; its role in driving the GTP

-     Journey to GTP targets: A look at the sugar projects

-     Take a bow Ethiopia, you’re the African star on MDG’s!

-     Mesfin Industrial Engineering (MIE) helping achieve GTP goals

-     Ethiopia: GTP Gauges

-     State Chief calls for real commitment to achieve GTP

-     Premier hails progress made in GTP implementation

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New Water Services Institution Developed to Tackle Multi-Dimensional Tasks

The new institution seeks to fix some of the current issues stunting major developments in the sector

Hailemeskel Tefera, left, state minister of the Ministry of Urban Housing & Construction and Board chairperson of the WWDSE, and the minister of Water, Irrigation & Energy, Alemayehu Tegenu, were in the midst of an animated discussion about the establishment of the Ethiopian Water Development Engineering Service. 

Hailemeskel Tefera, (Eng.) state minister for Urban Development Housing & Construction, right, and Meberate Tafese (PhD), head of Water Works Design & Supervision Enterprise and member of the Technical Committee, left, trying to explain how the new Ethiopian Water Development Engineering Service Corporation is going to help realize the sustainable development of the country.

 

The Ethiopian water sector is soon to see the establishment of the Ethiopian Water Development Engineering Service. This will replace the Federal Water Works Design and Supervision Enterprise (WWDSE), in two months of time.

The need for undertaking multi-dimensional tasks has necessitated the establishment of the new institution. Under the supervision of the federal government, it will mainly consist of different research institutes and will be involved in various water development and supervision strategies. Also, this corporation will be under the Supervision of the federal government. The current institution, the WWDSE, is only engaged in water development and supervision.

“Establishing a strengthened water sector design and supervision is pivotal to realising the sustainable development of the country,” Hailemeskel Tefera, state minister of the Ministry of Urban Housing & Construction and Board chairperson of the WWDSE, said at a panel discussion on Saturday, January 11, 2014, at the Ghion Hotel. The discussion sought to solicit comments and suggestions on the establishment of the new institution.

Experts, who presented study papers, pointed out some of the barriers faced by the sector. Incompatibility of the institutional setup to the demands of complex projects, a lack of systems, low level technology usage, a shortage of skilled manpower in some specialised fields and limited experience in study, were highlighted as challenges.

Some of the studies pointed out reasons for the delay in the Tendaho and Kessem dam and irrigation projects.

“They could not be completed within the time framework because of the different framework challenges,” one study indicated. “Project management problems, lack of alternate project delivery arrangements and fast track project management, coupled with Institutional setup have slowed down the projects.”

Ethiopia’s national water access reached 61.6 pc (over 52 million beneficiaries) of the population up until late 2012/13. Rural water access has reached 58.7pc (over 43 million beneficiaries) and urban water access has reached 80.7pc.

According to the growth & transformation plan (GTP), a household in a rural area has to have a supply of around 15 litres of safe water per person per day within a 1.5 km radius. Similarly, the GTP defines the clean water supply for urban dwellers – 20 litres of potable water per person per day within a 0.5 km radius. Based on this plan, over 29 million people living in rural areas are expected to become beneficiaries of safe drinking water by 2015.

http://addisfortune.net/articles/new-water-services-institution-developed-to-tackle-multi-dimensional-tasks/

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Hard Work but Dwindling Return

The price of raw leather has been fluctuating since last Christmas and the Ethiopian New Year holiday in September, when a sheep skin sold at 80 Br, on average.

Some like Abera Getachew, right, with ample experience plough through the arduous way and succeeding.

 

Early morning on Tuesday, January 7, 2014 – Ethiopian Christmas Day – Abadir Wayo slaughtered three sheep and a goat for four of his customers. When all was done, he headed to the market around Saris, on the Debre Zeit road, to sell the skins, which he receives as payment for his slaughtering service.

Unlike the previous holidays, Abadir, who works as a daily labourer, did not pay any extra money to his clients for the skins. This is since they are fetching a lower price at market.

‘‘I used to pay an extra 25 Br to 30 Br after receiving the skins,’’ Abadir told Fortune. ‘‘However, currently the sheep skins bring back a relatively low return in the market.’’

Although Abadir did not pay anything for taking the sheep skins, he received an additional 35 Br for his service of slaughtering the goat. This is because goat skin fetches a much lower price than the sheep skin.

At around 9 am, Abadir sold the goat skin for 25 Br to Bekele Ketema, who has been in the business of collecting skins for the last 10 years. However, he did not succeed in selling the sheep skins, since he asked Bekele to pay him 55 Br for each.

Bekele collects raw skins in his booth located around the Saris area. The booth was donated by USAID for skin collectors to sell skins, without affecting its quality, to skin collectors that then supply the skin to leather factories.

Bekele had been collecting the skins since 6 am on Tuesday, and had amassed 70 by the time Abadir arrived. This is a sharp increase from the other holidays, where he often accumulated only around 20 skins a day.

Bekele bought sheep and goat skins for 50 Br and 25 Br, respectively, mostly from households that slaughter the animals for the holiday. He would later sell the skin to factory suppliers, who travel around the city in the afternoon, for 53 Br, he claims.

The price of raw leather has been fluctuating since last Christmas and the Ethiopian New Year holiday in September, when a sheep skin sold at 80 Br, on average, and each goat skin fetched 30 Br. Cattle skin, which can weigh up to 48Kgs, sold for 3.50 Br a kilo at the time.

During the current holiday season, Bekele could not accommodate the needs of Abadir, however, since he was anticipating a lower return from the sheep skins.

‘‘I am surprised by the sudden drop in the price of sheep skin,’’ Abadir told Fortune.

The prices were falling nearly everywhere in Addis Abeba, hence Abadir could not have succeeded with the price he requested. At the area around the premises of the Addis Abeba Exhibition & Marketing Development Enterprise, near Mesqel Square, Taye Bobolibo, another raw skin collector, was buying sheep skin for an even lower price of between 45Br to 50 Br

Kedir Wahid – another skin collector, around the Anwar Mosque area, near Merkato (the largest open-air market in Africa) – bought sheep skin with more or less the same price to that of Taye at the Exhibition Centre.

The reason for the drop in price of raw skin is unclear to the likes of Taye and Bekele. They claim to sell the skins with prices set by their buyers, who later submit it to one of the 29 suppliers in Addis Abeba.

Sheriff Ahmed is Taye’s customer.  He supplies raw skin to tanneries and leather factories. He says that this Christmas sale stands out as different from previous times, as the tanneries and leather factories demand less skin with a higher quality.

Although Ethiopia has a definite comparative advantage, with a large livestock population, easy access to quality hides is lower when compared to neighbouring countries. During the 2011/12 fiscal year, the total population of cattle was 53.3 million, while sheep and goats numbered 25.5 million and 22.7 million, respectively, according to the Central Statistical Agency (CSA).

Ethiopia’s cattle population is far greater when compared to that of Kenya and Sudan, which have a population of 11.7 million and 39.8 million, respectively. When comparing sheep and goat populations, Kenya has 1.7 million and 24.7 million, respectively, while Sudan has 48.9 million and 39.8 million.

Despite having a large population, the proportion of cattle consumed in Ethiopia is only seven percent, compared to 10pc and 20pc for Kenya and Sudan.

The proportion of sheep and goat consumed in Ethiopia is 33pc and 38pc, respectively, compared to 30pc and 29pc in Kenya and 45pc and 30pc in Sudan.

The price of sheep skin has declined, since the demand from tanneries and leather factories is limited at this time, claims an expert working with the Ethiopian Skin & Hides Suppliers Association,

The price of a sheep skin, which is originally bought for 55 Br on average from people like Abadir, is sold for around 75 Br when it reaches the tanneries and leather factories.

‘‘The market of skin depends upon the demand from the factories,’’ says Belete Abadi, an expert on leather industry, who has worked in the industry for several years.

Tanneries do not deny this. Some of them have made the choice of postponing plans to buy skins from the market during the current holiday season.

A managing director of a foreign tannery, which produces finished sheep skins, goat skins and hide products for gloves, shoe uppers, garments and linings, as well as cow hide products for leather goods, admitted that his company will not purchase raw hides and skins from its suppliers, since the company has enough stock in its warehouse.

The company has been utilising 75pc of its capacity, since the demand in the international market is declining. It has the capacity to process 70,000 sheep skins and 1,500 cow hides, annually.

‘‘We cannot be competitive in the international market, if we keep going to buy animal skins locally at a high price,’’ he claimed.

Some tanneries, which collect the raw skins from its customers, found the current price surprising and encouraging.

The higher raw material prices incurred by most of the tanneries operating in the country is in addition to the levy of export tax imposed on unfinished leather products since 2012.

This measure is intended to realise the vision of the government for the leather industry, by introducing a 150pc tax on the export of crust leather.

The last half decade has not been as successful for the leather sector as the government had planned. The government’s plan of collecting close to half a billion dollars in revenue from exports at the end of its previous five-year economic plan, which ended in 2009/10, was not achieved. Only 205 million dollars were collected. Part of the reason for this failure is that 20 of the 26 leather exporters export only crusted leather, while only six export finished leather.

Before the introduction of the export tax, most of the income from leather exports came from crusted leather. This accounted for 67.3pc of the 104.1 million dollars earned during the 2010/11 fiscal year. The plan was to achieve 180.4 million dollars.

Although the introduction of export tax failed to achieve the government plan, as outlined in the Growth & Transformation Plan (GTP), it discouraged the export of crust once and for all. The government envisions earning one billion dollars from the export of leather products by the end of the 2014/15 fiscal year.

In the just ended fiscal year, the country earned only 308,000 dollars from the export of 14tns of crust. Two years before the introduction of the export tax, the country secured 74 million dollars by exporting 4,062tns of crust. But the export earnings from finished products increased to 121 million dollars.

However, this seems not enough for the Ethiopian Leather Industries Association (ELIA), which have close to 50 factories involved in the leather industry as members. The price has to go even lower, the Association says.

Leather factories were unable to clear their unpaid bills, as their input cost is much higher than their final price in the international market, Belete, the expert, claims.

But this is against a new law adopted by Parliament in December, which was expected to reduce the number of middlemen in the market chain. According to the government, their presence is the main reason for the inflated prices.

The amended bill aims to make the process of raw skin sale transparent. With the amended bill, all trading between tanneries and suppliers will be conducted after the former has signed an agreement with the latter.

For Sheriff, the drop in price means an improved opportunity for buying more skins. This would increase his profits, if suppliers are willing to buy.

‘‘My profit is around five Br, whether the price remains the same or not,’’ Sheriff told Fortune.

http://addisfortune.net/articles/hard-work-but-dwindling-return/

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Faltering Flower Fortunes

The flower industry is the fifth most important foreign exchange earner in Ethiopia, after the narcotic crop, khat.

In spite of the challenges, Ethiopia’s flower industry has utilised 1,300ha of land and repatriated 260 million dollars from floriculture and 50 million dollars from fruits and vegetables.

 

Gemeda Dadi, 21, was jobless for three full years before joining Sher Ethiopia Plc -a huge flower firm in Ethiopia, contributing to 65pc of the aggregate Ethiopian horticulture export.

Sher’s headquarters is located in Ziway town in Oromia Regional State, 163km from Addis Abeba. Its entry into the burgeoning Ethiopian flower industry in 2005 was a landmark event, as it became the largest farm in Ethiopia, occupying 500ht. It had already been engaged in Kenya for over 15 years. It is currently requesting for even more land from the Ethiopian authorities.

The Company had created13,000 jobs for residents of Ziway and its environs.

Most of the people Fortune approached are happy with the Company’s investment in social infrastructure.

“Sher has not only been benefiting me, but my whole family,” says Gemeda, who was working in the flower farm on a sunny afternoon, on January 3, 2014.

In 2004, the two Dutch owners of Sher, Gerrit and Peter Barnhoorn, were invited by the Ethiopian government to set up a project in Ethiopia. They were particularly emboldened by the support and encouragement they received from Ethiopia’s late Prime Minister, Meles Zenawi, they say.

Despite its late entry into the market, the Ethiopian horticultural industry has been a success story, marking the nation’s entry into a non-traditional export product. Ethiopia is the second largest exporter in Africa, after Kenya, and ahead of Tanzania, Uganda and Zimbabwe. It is also the fifth largest non-EU exporter to the EU cut flower market.

“It has taken Ethiopia five years to reach half of what Kenya achieved in three decades,” reported Kenya’s Daily Nation newspaper in 2007. “At this rate, Kenya could be overtaken by Ethiopia in a decade.”

This sector earned 94 million dollars for Ethiopia in 2007, while Kenya earned a whopping 364 million dollars.

Ethiopia’s fast progress “left Kenya stunned,” the paper added, despite Kenya’s fourfold revenue.

But it is far from an entirely rosy picture, as the sector is also operating with many challenges. These require government intervention, according to the flower company owners. Ethiopia’s new investment policy lacks an understanding of the sector, in terms of relevant incentives, some say, and there is a lack of access to land for expansion; air freight cost is high.

“We operate under challenges, including power cuts, connection problems and improper cargo services,” Kamal Hussein, Sher’s public relations officer, told Fortune.

Jagdish Mahajan, farm manager and representative of Joytech Fresh – another of the foreign flower companies operating in Ethiopia-shared Kamal’s frustration.

“Whenever the electric is down, all the fans and the cooling room will stop working,” he said. “Hence, the greenhouse temperature will rise, wilting  the plants.”

He and other mangers in the sector lamented being unable to their customers’ needs due to power cuts.

“I am not even sure if we can continue in this frustrating condition,” Jagidish grumbled.

Maranque Plant Plc is another company in the sector facing logistical challenges not of its own making. Located in Alaga Dore, 125 kms from Addis Abeba, in the Arsi Zone of Oromia Regional State, the company faces challenges that it says that reduce its ability to generate more foreign currency and meet the target the government has set.

Although witnessing an increment in its flower cutting in 2013, with 360 million cuttings exported mainly to Japan, the Netherlands, South Africa and the US, it complains of complications in cargo services, among other challenges.

“Our main challenge is the cargo service,” Hebelom Tamerat, export department head at Maranque, told Fortune.

Initially, the Company was using KLM Royal Dutch Airlines, which had direct flight from Addis Abeba to Amsterdam – its main market destination.

When KLM terminated its Addis-Amsterdam flights in March 2013,Maranque was forced to use Ethiopian Airlines (EAL), which has a stopover in Belgium, causing delays.

“Sometimes, we also face delays, due to offloading and improper handling from EAL,” said Hebelom.

Some, like the Sher, which faced the same problem, have even gone to the extent of requesting that the government allows them to purchase their own aircrafts. They will then be able to transport roses more quickly and conveniently.

Although the flower exporters expect remedies for the challenges they face, the response from the Ethiopian Horticulture Development Agency (EHDA), is hardly an indication of remedy coming in the near future.

“The complaints are far too exaggerated,” says Mekonnen Hailu, public relations officer with the Agency. “They have been benefitting from the attractive  incentives the Agency has devised to support the horticulture sector.”

Mekonnen cites the tax holiday period to validate this argument. Initially, only five years was given as a tax holiday period to the companies. This time around, however, it has been extended to seven years. The Agency’s experts, he says, have been providing assistance in technical and environmental aspects.

Tilaye Bekele, executive director of the Ethiopian Horticulture Producer Exporters Association (EHPEA), argues the government could do more. He argued that the lack of a competitive cargo service, in addition to the absence of consolidated services is hampering the performance of the sector.

Out of 120 foreign and local flower companies operating in Ethiopia, 96 are members of the Ethiopian Horticulture Producer Exporters Association (EHPEA).  Seventy-three out of the 120 investors invested through Foreign Direct Investment (FDI), while 11 are joint ventures and 36 are local companies.

http://addisfortune.net/columns/faltering-flower-fortunes/

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Investment Agency Invites Local Manufacturing Companies Into Industrial Zones

The offer doesn’t include foreign companies, as the Investment Agency wants to encourage local ones

Addis Abeba City Administration Cabinet will expects to approve the Land Bank & Transfer Agency plan format.

 

The Addis Abeba Investment Agency (AAIA) is inviting local investors in the manufacturing sector to work on the 330ha of land it has allotted in the Nefas Silk Lafto and Akaki Kaliti districts.

This offer, made only to local businesses, will have leases prices fixed through negotiation, said Kidanemihret Berhe, director of the AAIA.

The Land Bank & Transfer Agency developed plan formats for three industrial zones – one in Akaki Kaliti and two in Nefas Silk Lafto – which have now been submitted to the Cabinet of the Addis Abeba City Administration for approval, according to Masre Yemam, sub-process head with the Land Bank & Transfer Agency.

There are already industrial zones in both the Akaki Kaliti and Lafto districts, each covering 2,800sqm. The companies, which have leased plots in the zones are engaged in the garment, shoes, agro-processing and metal manufacturing sectors. The AAIA says it has invited investors to take plots in the industrial zones for two reasons.

Textile and garment, leather products, agro-processing and chemical products have been prioritised by the new offer, he said.

Agriculture is the primary source of employment for the Ethiopian economy. It contributes 43.2pc to national production and provides employment to more than 80pc of the working population. The manufacturing sector, which grew by 18.5pc in 2012/13, accounts for only 13pc.

The offer is for local investors, the Diaspora and mid-scale enterprises. The latter are those who have graduated successfully from SMEs with capital investment growth. Foreign investors are excluded because the Agency aims to encourage local ones, Kidanemihrei said.

“The AAIA decided to allocate land for investors, taking into consideration the fact that many local investors went as far as to erect warehouses on land leased from other investors,” he added.

The size of the land to be leased for each of the investors will be decided based on the project that they submit to the Agency.

The Agency will evaluate investment projects and transfer them to the Land Bank & Transfer Agency, which will facilitate the process. The proposals will then be sent to the City Administration’s Cabinet for final approval.

Infrastructure, like roads, water, electricity and telephone, have already been installed in the zones. A technical committee under the AAIA is to work on the remaining infrastructural facilities, according to Kindanemihret.

The Agency has responsibilities to promote the investment potential of the city, deliver efficient services to investors and conduct proper follow ups and strengthen the support service to investors.

http://addisfortune.net/articles/investment-agency-invites-local-manufacturing-companies-into-industrial-zones/

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Electronic System to Replace Plastic MobileTop-Up Cards

The foreign currency spent importing the plastic cards will be saved with the introduction of a new paper system

Kifya runs the 31 Lehulu centres and provides one window electronic billing service to 1.1 million bill paying customers to pay their water, electric and telephone bills.

 

Kifiya Financial Technology Plc (KFT) is working with Ethio-Telecom to introduce an electronic airtime distribution service. This will be designed to be a cheaper replacement of the existing scratch cards used for prepaid mobile customers.

Ethio-Telecom’s Corporate Communications director, Abdurahim Ahmed, declined to make any comment, but the service could become a reality in two weeks, according to Eyob Getahun, Public Relations head at Kifya.

When launched, the electronic airtime distribution service will replace the common scratch cards. The very objective of the project is to cut down on the foreign currency spent on the purchase of the plastic mobile airtime cards. Although the paper airtime recharging e-cards will also be imported, their cost will be significantly less, says Kifya.

“The cost of the scratch cards is too high and cards need complex printing and complicated distribution networks,” Eyob Getahun, public relations officer of Kifya, said.  “On top of that, they are not environmentally friendly.”

Unlike with the current scratch card, the pin number would be printed on paper from an e-card terminal. These would be designed to print the numbers from data stored on Ethio-Telecom’s server online, using a private network GSM (Global Station for Mobile Communication). The terminal owner would insert a password and username to print the airtime required, and sell it on the spot.

“Through the studies, it has been proven that the project is viable,” Eyob said. “Kifya will, thus, implement the new scheme soon.”

Abdurahim Ahmed, the corporate communications director at Ethio-Telecom, did not comment to Fortune, despite repeated efforts.

Ethio-Telecom has so far been availing scratch cards worth five Birr, 10 Br, 15Br, 25Br, 50 Br and 100Br only. The new service will, however, provide customers with the option of recharging any amount.

Fortune has learnt that Kifya has recruited new staff from its branches and has been offering them training at its headquarters at the Finfinnee Building, around Meskel Square.

The agreement with Ethio-Telecom is expected to evolve into a scheme in which private vendors will lease airtime from them to distribute to customers.

Established in 2010, Kifya runs the 31 Lehulu centres and provides one window electronic billing service to 1.1 million bill paying customers to pay their water, electric and telephone bills.

http://addisfortune.net/articles/electronic-system-to-replace-plastic-mobiletop-up-cards/

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Ethiopian Red Cross Fundraising For Half Billion Birr Headquarters

The new building will provide a rental income, making the organisation less reliant on foreign aid

Ahmed Reja, left, (PhD), president of the ERCS, was glad that he met people like Tadele Yemer, middle, president of the Ethiopian Employers  Federation (EFF) and Fissehatsion Biyadegelegn, president of the Confederation of Ethiopian Labor Unions (CELU), pledged to support to the project.

The 16-storey building is expected to cost 500 million Birr, but so far the ERCS has only managed to raise 22.8 million Br. These funds were acquired through an SMS lottery game, launched in 2013.

The building will rest on a 4,936sqm plot of land next to the Addis Abeba Spa Services Enterprise along Yohannes St – near Zewditu Hospital. The plot was granted to the ERCS for free by the Addis Abeba City Administration, in 1997.

DMC Construction has been awarded the first phase of construction (structural framework and concrete work) for 187 million Br.

With the reduction in funds from foreign and local charities because of the increasing number of people, who seek assistance, the Society turned to community-based fundraising options, such as the SMS game it already had.

“We are also looking for government support to secure the remaining funds,” Dr Ahmed Reja, president of the ERCS, said during the launch of the fundraising project at the Hilton Addis, on Thursday, January 9, 2014.

The building, when completed, is expected to generate income from rent for the ERCS. Generating income will decrease the organisation’s dependence on foreign aid, which has been declining recently, and increase its capacity to do its humanitarian work, said Dr Ahmed.

“Anyone interested in the project can support this fundraising in kind, financially and even in knowledge sharing, as well as labour,” Ahmed said.

When established on July 8, 1935 in Addis Abeba in the aftermath of the Italo-Ethiopian War (1935-41), the ERCS was pioneered by the Russian Red Cross Medical Team. It aims to work on food security, disaster preparedness, community health, first aid, ambulance services, blood banks and an essential drugs program. It has several projects, including environmental protection and poverty reduction, as well as helping returned refugees, says Frehiwot Worku, the Society’s Secretary General.

The revised charter of the ERCS allows it to collect money from different sources. This includes the proceeds of various income generating programmes they run.

The ERCS is currently based in a building adjacent to Ghandi Memorial Hospital along Ras Desta Damtew Street, which it has owned for the last 40 years.

http://addisfortune.net/articles/ethiopian-red-cross-fundraising-for-half-billion-birr-headquarters/

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Ethiopian Airports Enterprise  plans new Airport for Awassa

In the last Ethiopian fiscal year alone, Awasa, which is the capital city of the Southern Region, is visited by more than 631,000 Ethiopians and foreign tourists that help for the gain of 130 million Br in revenue.

It is indicated that the way of transportation to the city being limited to the road transport only, greatly hinders the great many visitors that might want to have air transport to come to the city. For the building of the airport, the Ethiopian Airports Enterprise has received a land and the design work is being done with the cost of one million Birr which is believed to be completed in four months time.

http://www.waltainfo.com/index.php/explore/11998-ethiopian-airports-enterprise-plans-new-airport-for-awassa 

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Prime Minister Hailemariam Desalegn Confers With Japan’s Prime Minister Shinzo Abe

Japan’s Prime Minister Shinzo Abe arrived in Addis Ababa on Monday (January 13) at the head of a 50-person delegation of senior officials, parliamentarians and business leaders.

Prime Minister Hailemariam and high-level Ethiopian officials welcomed Prime Minister Abe, his wide and the delegation at Bole International Airport before holding discussions at the Jubilee Palace.

Prime Minister Hailemariam noted that “Ethio-Japanese relations, dating back over 85 years, had now reached qualitatively higher levels.”

He underlined and reaffirmed Ethiopia’s contributions to the Tokyo International Conference on African Development (TICAD) and expressed his hopes that Japan would implement the TICAD V Declaration and Plan of Action in collaboration with the African Union.

Prime Minister Hailemariam stressed the importance of increasing Japanese investment in Ethiopia to help Ethiopia maintain the double digit growth it had witnessed over the past decade.

He requested Prime Minister Abe’s support for Japan’s Trade and External Office (JETRO) to open offices in Addis Ababa, the diplomatic hub of Africa, to boost trade and investment ties not only with Ethiopia but also with Africa as a whole.

He said Ethiopia’s rapidly improving institutional capacity, stable macro-economy, and conducive investment climate as well as its friendly and hospitable people and growing market offers attractive business opportunities for Japanese investors.

He urged to Japanese investors to take part in Ethiopia’s manufacturing sector, especially in energy development and railway management as well as in production of rice in the area of agricultural investment in which Japan excels.

Prime Minister Hailemariam appreciated Japan’s immense contribution in technical assistance to Ethiopia’s development, noting that Ethiopia has adopted Kaizen as a philosophy in the nation’s moves to improve quality and productivity, and expressed Ethiopia’s desire to benefit from the Abe Initiative.

Prime Minister Shinzo Abe stressed that Japan would continue to support Ethiopia’s development endeavors, sharing experiences through the Ethio-Japan Industrial Policy Dialogue. He underlined that Japan would like to expand Ethiopia’s Kaizen Institute into a TICAD Human Resource Development Center for Africa.

He promised to consider opening a JETRO office in Addis Ababa after looking at the trade volumes and investment climate changes in Ethiopia.

Prime Minister Abe announced his government’s decision to offer a 520 million yen support to improve the productivity of underprivileged farmers in Ethiopia, as well as Japan’s desire to support Ethiopia in the study for a master plan for geothermal energy, urban water development and to expedite the Aluto-Langano Geothermal project.

He also announced grants of US$11.6 million to assist refugees from neighboring countries in Ethiopia and US$500,000 to the African Union Peace and Security Peacekeeping Training Center.

Prime Minister Abe welcomed Ethiopia’s role in promoting political dialogue and peace keeping in Somalia and South Sudan as well as between Sudan and South Sudan.

He said Japan would support IGAD-led mediation efforts and urged the international community to support the efforts of the regional bloc.

http://allafrica.com/stories/201401140960.html

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Japan woos Africa with funds for peace and security process

Japan’s Prime Minister Shinzo Abe wooed Africa Tuesday pledging financial packages to boost peace and security on the continent, which has become a key trading partner with China.

“In order to respond to conflicts and disasters in Africa, Japan is now preparing to implement assistance of approximately $320 million,” Abe said in his policy speech for the continent at the African Union headquarters in Addis Ababa, Ethiopia.

Abe’s trip to Africa is seen as a move to secure energy resources and boost Japan’s profile.

Abe pledged $25 million to address the crisis in South Sudan, where fighting between government forces and rebels has taken the world’s youngest nation to the brink of all-out civil war.

On Monday, Abe urged warring South Sudanese parties to sign a cease-fire after weeks of violence that has left thousands dead. Japan has some 400 troops posted in South Sudan as part of the UN peacekeeping force there.

“Japan believes mediation from neighboring states such as Ethiopia is vital and should be supported,” Abe said.

In addition to the money earmarked for South Sudan, Abe said Japan would donate $3 million to the crisis in the Central African Republic, which has been engulfed in conflict since last year.

Abe said strengthening business ties with Africa and promoting the private sector was a priority for his government, and pledged to boost Japanese investments on the continent.

He added that Japan would offer a total of $2 billion in loans to the private sector, doubling a 2012 pledge.

Abe’s two-day trip to Ethiopia is his last stop on an Africa tour that has also taken him to Cote d’Ivoire and Mozambique in a bid to bolster Japanese ties and business relations.

China became in 2009 Africa’s top trading partner at 13.5 percent, compared with trade at 2.7 percent with Japan, according to the OECD.

http://www.globaltimes.cn/NEWS/tabid/99/ID/837528/Japanwoos-Africa-with-funds-for-peace-and-security-process.aspx

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Japan provides 500 million Yen to Ethiopia

Addis Ababa, 14 January 2014  (WIC) – Japan has provided 500 million Yen assistance to Ethiopia to support its efforts to transform the agriculture sector, Prime Minister Hailemariam said.
After conferring with the Japanese Prime Minister Shinzo Abe here Monday, the Premier said the assistance will help the country’s efforts being exerted to improve agricultural production and productivity.
Prime Minister Abe has also agreed to establish the African Kaizen Centre, Japan planned to set up in Africa to support the continent’s industrial development.
Prime Minister Abe has also agreed to double the bilateral trade cooperation with Ethiopia, Hailemariam said.
Hailemariam said participation of Japanese companies in Ethiopia is not as it should be.
He called on Japanese companies to invest in Ethiopia and benefit from the prevailing conducive investment atmosphere in the country.
The two parties have signed bilateral air service agreement.
Prime Minister Abe on his part said his government will do everything to further deepen the overall bilateral ties with Ethiopia.
He expressed hope that the Ethiopian Airlines’ flight to Tokyo to be inaugurated soon will strengthen the cultural, trade and investment cooperation between the two countries.
He expressed gratitude for Ethiopia’s role played in building and restoring peace and stability in the Horn of Africa.
Prime Minister Hailemariam and other senior officials welcomed Prime Minister Abe when he arrives in Addis Abeba on Monday afternoon for a two day official visit.
The Prime Minister on Monday visited relatives of Abebe Bikila, the first black person to win marathon in 1960 in Tokyo.
According to ENA, Abebe Bikila was a double Olympic marathon champion, most famous for winning a marathon gold medal in the1960 Tokyo Summer Olympics while running barefoot.

http://www.waltainfo.com/index.php/editors-pick/11999-japan-provides-500-mln-yen-to-ethiopia

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University constructing referral hospital

The University of Gondar is constructing 1,000-bed referral hospital, expected to be inaugurated next June, at a cost of over 350 million birr. Upon completion, it will benefit over five million people in Gondar town and its environs, University President Prof. Mengesha Admasu said.
In an exclusive interview with The Ethiopian Herald, Prof. Mengesha said that apart from providing services for in- and out-patients, the university plans to open, among others, standard eye care and international fistula treatment and training centres.
The construction of the referral hospital is being undertaken with the joint efforts of various bodies—a four-storey building by the government and five-storey by Sheikh Mohammed Hussien Ali Al- Amoudi and US government support.
The construction of the hospital has created job opportunities for over 4,000 citizens, the President added.
Established in 1954 Gondar Public Health College and Training Centre with the mission of supplying middle level health professionals who could run a network of heath centres across the country. It is the country’s oldest medical training institution.
“ We have been serving our country since 1954 and we will continue to make sure our service is passing down to generations as a legacy,” Prof. Mengesha said.

http://www.waltainfo.com/index.php/explore/11993-university-constructing-referral-hospital

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Chinese company to construct oil, gas pipeline stretching from Ethiopia to Djibouti

The Chinese petroleum company, which recently signed a petroleum production sharing agreement (PPSA) with the Ethiopian Ministry of Mines (MoM) to develop the gas filed at Ogaden, signed a Memorandum of Understanding (MoU) on Wednesday January 8, with the government of Djibouti that will allow the company to construct two pipe lines stretching from Ethiopia to Djibouti. The deal comes after strong preliminary studies showing that oil and gas might be discovered in the country’s eastern region.
GCL Poly Petroleum Investment that signed a deal with Ethiopia in November 2013 to develop gas reserves at Calub and Hilala has signed a MoU with Ministry of Energy in charge of Djibouti’s Natural Resources that will allow the company to transport gas and oil products to the port.
The framework document of the agreement will determine the terms allowing the two pipelines, oil and gas, to flow to the port from Ethiopia.
The American oil company, Tenneco, was the first to strongly confirm that there was a huge gas reserve in the area 42 years ago. Now other international petroleum companies are finding that the area is rich with natural resources.
According to the information obtained from Djibouti, the new deal between the Chinese firm and Djibouti is exceptional when compared with other companies who have been interested developing Calub and Hilala natural gas fields. For instance most of the companies have been active in the gas field and only expressed their plan to transport the product via pipeline to the port [Djibouti] but no other country was able to reach this kind of agreement with the tiny horn of Africa country, which is the main hub for Ethiopia’s import/export.
Sources at Djibouti told Capital that this agreement also provides for the construction in Djibouti of a liquefaction plant and gas refinery and storage of crude and refined products and a bunkering center in Obock, located on the northern shore of the Gulf of Tadjoura.
Li Wei, representative of the Chinese multinational and Ali Yacoub Mahamoud, Minister of Energy in charge of Natural Resources, signed the MoU at Djibouti.
Currently, several international companies are assessing the oil and natural gas deposits in of Ethiopia. Previously, companies have been focusing on the southeastern part of the country, while latest assessments indicated that oil and gas reserves are also abundant in other parts of Ethiopia.

http://sodere.com/profiles/blogs/chinese-company-to-construct-oil-gas-pipeline-stretching-from-eth

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Road connecting Megenagna and Tor Hayloch via Meskel Square planned to be completed in five months

A road project, stretching from Megenagna to Tor Hayloch via Meskel Square should be completed by this June if it is not hindered by railway construction alongside the road.
The Addis Ababa City Road Authority (AACRA) says the 8.6 km asphalt road that links the eastern and western part of Addis Ababa should be open by the end of this fiscal year.
Fekadu Haile (Eng.), Director of AACRA says they want to finish the 2.4 billion birr road by the end of June in order to alleviate traffic congestion.
Fekadu told Capital that plans for the road completion do depend on the progress of the light railway transit being constructed by China Railway Engineering Group Limited (CREC).
The road project that goes hand in hand with the Addis Ababa LRT project is divided by five sections and is constructed by two foreign based companies. The Israeli giant, Tidhar Earth Moving Company, has undertaken two sections that link the road project from the Ministry of Mines to the Ministry of Water and Energy. The other three sections that link the western side of the city to the Ministry of Water and Energy, which is in the central area of the city, are being constructed by the Chinese based CRBC Addis Engineering.
“The LRT project is a governmental priority and we will abide by that but we promised contractors that we would finish the road on schedule,” he said.
According to the authority head, most of the design work that combines the road and LRT construction has been completed this past year. He doesn’t foresee the necessity for any redesign.
Fekadu added that the roads linking western Addis to the east side will have several interchanges. The project, which is financed by the government, is expected to end within 18 months.
For the current budget year AACRA has set a target of completing 36 main roads and also undertaking other major projects in main traffic areas.
According to AACRA, in the current budget year, 59.5km and 35km of asphalt roads will be built by private contractors and AACRA’s own taskforce respectively; 19.2km of asphalt roads will also be built in the compounds of condominiums that will be constructed shortly.
Early this fiscal year the authority stated that road coverage will grow to 4,600km at the end of this budget year, up from 4,148km last year.

http://sodere.com/profiles/blogs/road-connecting-megenagna-and-tor-hayloch-via-meskel-square-plann

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UK, Ethiopia Strengthen Investment

Ethiopian minister of Foreign Affairs, Tedros Adhanom (PhD) attended a business lunch on Thursday, January 9, 2014, organized by UK companies investing in Ethiopia in collaboration with the British Embassy in Addis Abeba.

The UK companies, which included Pitards, JCB, Diageo and Stratex were engaged in Ethiopia in leather, brewery, mining and garment businesses.

They also held a side exhibition of their products, Tedros and Greg Dorey, the British Ambassador to Ethiopia, visited.

Addressing the meeting, Tedros noted that Ethiopia with its growing market size, its youthful labor force and its conducive investment climate offers great opportunity to British investors.

He reaffirmed the readiness of his office to support their efforts.

“It is through making your investment endeavors in Ethiopia comfortable that we can lure others to come,” he said.

He said the government is doing its level best to address any problems in telecom and energy supplies, foreign currency, financial services or other investment related issues.

Greg Dorey said the bilateral relations between Britain and Ethiopia were developing steadily with a growing UK investment in Ethiopia.

He noted that more UK investment was in the pipeline to take advantage of the good investment climate in Ethiopia, and he underlined the immense opportunities available in Ethiopia for UK companies in different sectors.

http://allafrica.com/stories/201401140954.html

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Related:

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-     11 January 2014 News Roll

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Land bill endorsed after record debate

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The House of Peoples’ Representatives (HPR), on Thursday, finally endorsed the land bill, almost eight months after it was first presented to the House.