The United States Government, through the United States Agency for International Development (USAID), signed a partnership agreement on November 13 to improve urban emergency preparedness and response in Addis Ababa.

14 November 2013

USAID will provide technical assistance to the city government of Addis Ababa that will make a significant difference in minimizing the effects of a disaster, including saving lives, protecting property, and helping the city recover more quickly from a disaster.

USAID and the Government of Ethiopia are expanding their partnership to include a focus on urban disasters in Addis Ababa through the city’s Fire and Emergency Prevention and Rescue Authority (FEPRA).  The partnership will include training on the U.S. National Incident Management System (NIMS) for managers and first responders to increase capacity for preparedness and response for urban disasters including firefighting, urban search and rescue and earthquake scenarios.

NIMS, a framework for disaster response and preparation currently used in the United States, makes it easier for governmental and private sector agencies to work together to prevent, respond to, recover from, and mitigate the effects of disasters.  Through this agreement, USAID will help the city government of Addis Ababa to develop city-wide emergency operation plans, establish disaster management teams, develop standard operating procedures for effective resource management, and develop a more integrated communication system for city-wide emergency preparedness and response.

“We are extremely happy to see this expansion of our cooperation with the Ethiopian Government in disaster management,” said USAID Ethiopia Mission Director Dennis Weller.  “We believe that FEPRA will be a strong and capable partner in improving disaster preparedness and response, benefiting all residents of the City of Addis Ababa.”

NIMS uses the Incident Command System which is globally recognized as a best practice for emergency response, providing organizational structure and processes at the field level to help regional and local governments more rapidly and effectively respond to disasters.  The Incident Command System functions in disasters of any type or size, allowing personnel from a variety of agencies to fit rapidly into a common management structure.

Since 2008, USAID has supported a technical assistance partnership with the Government of Ethiopia to improve disaster response and preparedness capacity.  The U.S. Forest Service has been implementing the partnership in collaboration with Ethiopia’s Disaster Risk Management and Food Security Sector Early Warning and Response Directorate and this agreement expands the partnership to the City of Addis Ababa.

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   11 November 2013  By Bono

On 8 November, Bono presented the ONE Africa Award, which each year honours an African civil society organisation, before an audience of media leaders and journalist at the conclusion of the African Media Leaders Forum in Addis Ababa. 

Incredibly I’ve been coming to Ethiopia for more than half my life.  I say “incredibly” because in truth I still think of myself as 25.  It’s a rockstar’s disease – we are encouraged not to grow up.

But I’ve been visiting here since the mid-1980s, and I really think there’s never been a more exciting time.  You can feel it.  It’s electric, and rockstars love electricity. I heard a local band last night with lots of electricity and talent – Jano.

It’s great to be here at a moment of transformation here in Addis, and here in Africa generally.  Economically, socially, culturally, medically, technologically.  Huge transformation.

And the rest of the world is starting to see it.  The world is waking up to how extraordinarily wealthy the continent of Africa is in terms of its people, not just its resources.  And that’s a big shift in the north, because all we heard for years and years was how poor you all were.

And being honest, I was complicit in this; dramatising the situation to make sure that the poorest people didn’t get forgotten. And again, to be brutally honest, to break through our own indifference.  Some used a kind of poverty pornography to break through the noise to get our own governments to do less of what hurt, and more of what helped.

We fought to cancel cold war debts. We fought for funding for HIV/AIDS. We thought it absurd that what was a manageable disease for rich people was a death sentence for poor people.

We weren’t remotely interested in charity by the way, we were interested in justice.  In our heads, you don’t need charity if justice is done. Now the meaning of justice in the 21st century may not have changed—but the ways of achieving it sure have.

Which is where we get to another transformation.  The transformation of the media, and the technology that’s turbo charging it.

None of this is news to you because—well, you write the news!  Traditional models of journalism are changing.  This is true not just in Africa, of course, but where I come from as well.  When almost everyone’s got a phone—and everyone with a phone is a broadcaster—what does it even mean to be a journalist today?

I know it’s a little early in the day to get existential on you, but bear with me a moment.  The demand for information and the flow of information are unstoppable.  We know this.  But what’s still in short supply is what you provide.  Analysis.  Intelligence.  Interpretation.

In other words: not just volume of information, but quality of information.

This, if you want to know my view, is what it means to be a journalist today.  Using your professional insight to turn information into knowledge.

People, citizens, fact-based activists, the “factivists”, are depending on that.  They’re demanding access to information that affects their lives.  Economic development, social progress, human health – all this depends on open data.  Not raw data, necessarily, but open data. Dug up in many cases by your efforts and made useful, made intelligible, by your analysis.

That’s how the transformation of media is helping drive the other transformations.  The quality of governance depends on the quality of civil society, and the quality of civil society depends on the quality—the accuracy, the relevance—of information.

I’d like to pause on an issue that ONE has been working on, with the great Mo Ibrahim, to make sure that at least some of the wealth under the ground in resource-rich countries like Ethiopia ends up in the hands of the people living above it.

We were responding to civil society groups over here demanding transparency – demanding that we join with them in tackling corruption north and south of the equator.

ONE, working with Publish What You Pay, were thrilled to get a law passed in the US and the EU that forced all oil companies on those stock exchanges to reveal who they’re paying, for what, and where. Project by project, no exemptions.

We were thrilled.  The oil companies were not. In fact the American Petroleum Institute has taken legal action to challenge this.  In the US, they sued the SEC, presumably because they want to carry on their dealings in the dark.  The court ruled in their favour. For the moment.

Are they blocking this because they understand a very simple equation?

Transparency plus insight equals transformation.

Why do oil companies not want the public to know how much they are paying for drilling rights?  Why is opacity so important to big business?

Capital flight is always at night, in the dark. Phantom companies, with more wealth than some governments, can’t stand the daylight that would unmask who owns them.

We now know corporate and government corruption is killing more kids than any disease. But guess what?  There is a vaccine and it is transparency.

We used to be known as the ‘get the cheque’ people.  We’re still that, but now we are also the ‘follow the money’ people. And by we, I really mean YOU.

Which brings me to another equation:  the relationship between freedom of information, stability and security. A little bit of a hot button topic at this conference.

I know where I stand on this, and over the week as I meet with the leadership I’ll be respectfully raising it.  As I did with Prime Minister Meles, whom I was honoured to call a friend. The great thing about friendship is you can agree on some things and disagree on others.  And we did.

Where I stand is that information, and the knowledge that flows from it, has enormous power to challenge inequality. Of course, it has enormous power to challenge everything—the whole order of things—which is why countries have often tried to control information.  And when that doesn’t work, governments have tried to control journalists.

This is not good politics. Actually this is just not good.  Full Stop. It’s also not the right thing to do.  And let’s face it, today it’s becoming a physical impossibility, wherever you are in the world.

To try and pretend the revolution in information technology isn’t happening is like King Canute putting up his hand to try and stop the waves. You can’t stop the waves, they are tidal waves.  I would encourage this government, which has done such incredible work on human development, to surf these waves. Not to fear journalism, but to encourage it.

Ethiopia has a story worth telling.  A story the rest of the world should hear.  The story of business leaders creating jobs, fighting and winning market share against the obstacles. The story of activists campaigning – and more and more succeeding – to keep their government honest.  The government’s story of incredible success in halving extreme poverty and hunger in the last twenty years.

This government needs all these stories to be told.

Thank you.

Sourced here:  http://www.one.org/international/blog/bono-information-and-the-knowledge-that-flows-from-it-has-enormous-power-to-challenge-inequality/

-  Dallol power plant, which would be primarily used for potash production, included in plan as indicated in map below

-  Solar power also being considered and a US partnership has been awarded three100MW solar power projects to be installed in East Ethiopia. One of those projects would meet Allana Potash’s, and possibly neighbour Yara’s, requirements. Allana’s CEO has recently hinted in this article http://business.financialpost.com/2013/11/06/allana-ceo-farhad-abasov-ethiopian-opportunity/ that solar may well be at least part of the project’s power source.

Map showing the geothermal sites in Ethiopia

• Demand could reach 37,000 MW by 2037

 A two-day workshop on the next 25 years Ethiopian Power System Expansion Master-Plan study, which envisages that power demand could reach 37,000 MW by the end of 2037, kicked off here yesterday.

The Ethiopian Electric Power Corporation with the financial support from the International Development Assistance (IDA) hired Parson Brinkerhoff UK through bidding to undertake the highly required power system master plan update study.

Corporation CEO Mehiret Debebe said the main objective of the study is to develop the least cost transmission and generation expansion plan for the next 25 years.

“The contract has also bestowed huge responsibility to the consultant to capacitate the Corporation with skilled manpower, software resource and also power system database for future updating of the study by own workforce,” he said.

The study began a year ago. The consultant has already submitted the load forecast report which proved with scientific rigour and model that the expectation of high demand could reach over 37,000 MW by the end of the study period, which is 2037.

Currently, the country produces some 2,300 MW while many hydropower, wind and solar energy generation projects are underway.

In the interim report presented at the workshop, the Corporation and the consultant have documented their findings as to how Ethiopia’s power system shall develop in the coming years to meet reliably the anticipated demand with the least cost investment.

According to Mehiret, the final recommendation plan centres on huge hydro power development, which the country is abundantly endowed with, and as energy mix incorporates wind, solar, biomass and geothermal plants.

In addition, not to compromise the system security during poor hydrologic conditions, the consultant has proposed thermal generation operating almost as standby with very low average plant factor for short term. High Efficiency Combined Cycle gas turbines with higher plant factor are also proposed after 2025 when the candidate hydro resources in pipeline with lower cost of generation are exhausted.

“This is an indication to the need for identifying other potential projects for further consideration in the future plan update activities as we believe that Ethiopia has more than 45GW hydro potential,” the CEO said. Though not incorporated in the final plan due to economic and other complex reasons, nuclear power plants were also examined as possible candidates.

“We have to give serious attention to recommendations which are within ten years horizon”, he said. “According to the plan, we need to finalize feasibility studies for Gibe IV, Gibe V, Upper Dabus, Birbir, and Genale Dawa V and others within a very short time.”

He said: “We need to implement with a sense of urgency; more than 15 hydro plants with a total capacity of about 10,000 MW on top of the ones which are currently under construction.”

The plan also indicates that 900 MW wind, 300 MW solar and 1,000 MW geothermal are needed within the 10 years period. Moreover, more than 16,400-kms extra and high voltage transmission lines need to be laid.

The 25 years Expansion Plan requires more than 150 billion USD for its implementation. This is a huge task requiring the coordination of resources from governmental, the private sector and financing institutions and other stakeholders who have common interest from this prospective market, Mehiret said.

http://www.ethpress.gov.et/herald/index.php/herald/news/4982-25-year-power-expansion-master-plan-study-tabled-for-discussion

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Related articles

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• Ethiopia, China Sign 101.5 Billion Yuan ($16.6 billion) Agreement
• US companies awarded 300MW PV project in Ethiopia (allanapotashblog.org)
• Earth, wind and water: Ethiopia bids to be Africa’s powerhouse (allanapotashblog.org)
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Menelik Alemu, Ethiopia’s ambassador in Geneva, and Geremew Ayalew, chair of a national technical committee for WTO at the Ministry of Trade (MoT), in Bali, Indonesia, on Wednesday, December 4, 2013. Currently negotiating Ethiopia’s entry to the world’s police on trade rules, Menelik is scheduled to address the Ninth Ministerial Summit of the WTO, where many delegates say a deal is within reach, on Thursday afternoon. (Pictured, above)

Ethiopia sees itself joining the WTO in 2015, and the proposed deal this week, known as the “Bali Package” is crucial to least developed countries such as Ethiopia, for it is to agree on agricultural subsidies, trade facilitation and support to least developed countries. A disagreement from one single country could stall a consensus among the 159 member countries. India, in particular, is seen as a major force that could halt talks at the multilateral trade talk platform this week, due to its strong position against banning agricultural subsidies to its farmers.

Some of its citizens were vocal inside the Nusa Dua Conference facility this morning, protesting the ongoing meeting and demanding it to stop the talks.

“USA; Hands Off Our Food!” decried one of their placards.

But it is delegates from the least developed countries who are opposed to agricultural subsidies. In fact, the United States (100 billion dollars), the European Union (80 billion euro) and India are major countries blamed for such subsidies deemed to have distorted exports of primary goods from poor countries.

Yet, most delegates from developing economies and least developed countries are fearful of a draft agreement on trade facilitation. A deal, if reached, would force them to lift entry barriers to trade. Praised by its proponents for its potential to add an estimated one trillion dollars to the world economy, trade facilitation allows the free flow of good and merchandises among member countries, with countries required to change their systems that impede free flow of trade.

“It is about reforms,” said Yonov Frederick Agah, deputy director of the WTO, speaking to journalists here in Bali. “And reform, in any circumstances, is always controversial. There are countries that want to do certain things, but they want to do it in their own sequence, time and money.”

Time and money is indeed what countries such as Ethiopia, which is one of the 25 countries still in the accession process, lack in their bid to join an organisation that was formed in 1995, and is created to treat the rich and the powerful equal to the poor and the weak. The weak are however in a constant look out for support in the form of enhanced capacity to negotiate better deals.

The European Union (EU) claims the moral high ground in its support to least developed countries.

“We are already the biggest donor in respect to aid for trade and trade facilitation,” Karel de Gucht, EU Trade Commissioner, said in an exclusive interview with Indonesia’s daily, The Jakarta Post. “We are going to continue this and we have earmarked 400 million euro for that purpose, for five years.”

It is not clear if part of this money goes to a newly established funding facility under Enhanced Integration Framework (EIF), which is chaired by Ethiopia’s Ambassador to Switzerland, Menelik Alemu. In addition to helping Ethiopian trade negotiators enhance their skills in trade talks, with an outlay that may eventually grow to three million dollars, close to 300,000 dollars is immediately available to finance programmes that support small scale farmers and those active in the hospitality industry, Geremew Ayalew, chair of a national technical committee for WTO at the Ministry of Trade (MoT), told Fortune.

Sourced here:

http://addisfortune.net/articles/food-subsidies-could-stall-wto-deal/

Ethiopia enters crucial phase of WTO accession bid

Geremew Ayalew, head of the National Technical Committee for the WTO, Menelik Alemu, Ethiopia’s ambassador in Geneva, Azanaw Tadesse, counsellor for WTO in Geneva and Lesanework Zerfu, head of multilateral trade relations at the Ministry of Trade.

The Ninth WTO Ministerial Conference held in Bali, Indonesia . 

Menelik Alemu, centre, Ethiopia’s ambassador in Geneva, at the Ninth WTO Ministerial Conference. 

Ethiopia is about to enter into the most crucial phase of trade talks, having reached the stage of submission for its offers in services, which its negotiators declared had been finalised last week.

It is one of the two critical documents that it has to submit to the World Trade Organisation (WTO), in order to start negotiations on market access. Offers in services comprise of negotiations on issues such as telecoms and finance. These are areas of the economy that the Ethiopian authorities are known to be reluctant to open up – to domestic and international competition, respectively.

The country’s four trade negotiators, led by Ethiopia’s Ambassador to Switzerland, Minelik Alemu, were in Bali, Indonesia, last week, attending the ninth ministerial summit. Here, ministers from close to 200 countries have gathered.

Traumatised by failures to reach an agreement over the past 12 years, trade negotiators have whittled down issues of contention to just three: trade facilitation, food security and support to members from the least developed countries. Yet, even such mellowed issues were not free from sharp disagreements. India’s trade negotiators had held the WTO captive, denying what was required to pass rules – an explicit consensus from all of its members.

“The WTO is a good platform for trade talks,” said the EU’s Trade Commissioner, Karel de Gucht, speaking to journalists during the middle of ‘behind closed doors’ negotiations in Bali. “That is what is at stake.”

His voice of apprehension was echoed by his American counterpart.

“If we can’t get deals in this round, it will be hard to get into agreements on the more sophisticated issues,” Michael Froman, a United States Trade Representative, told journalists.

For over a decade, the legitimacy of the WTO has gone through a process of delegitimisation. In the eyes of Keith Rockwell, its chief of international relations, however, the organisation’s dispute settlement process and trade laws review mechanism remain solid and relevant.

Since a summit in Doha, Qatar, in 2001, where trade negotiators agreed to make deals considerate of agriculture and the development aspirations of poor countries, they have failed to strike a deal during five rounds, from Cancun to Geneva. Some spied a solution in avoiding contentious issues and focusing rather on the soft ones, described by experts as “low-hanging fruits”. However, ambassadors designated to the WTO in Geneva, its headquarters, were not able to come to terms with each other on the three issues, thus leaving the tough talks to their respective ministers.

One such minister is India’s Anand Sharma, who resolved to suggest that he would rather see, “no agreement, than to have a bad agreement”.

His country passed a food security act last year, pledging to offer welfare to 800 million of its poor by stockpiling food reserves in the same way Ethiopia does with its national food reserve, according to an Ethiopian trade negotiator. The problem with India, as a full member, is that the WTO has rules that punish countries which subsidise food aid at more than 10pc of total national production, for it is deemed as “trade distortion”.

India is not alone in its protest of this as unfair and damaging to the basic right of food for its population. The Social Movement for an Alternative Asia (SMAA) – one of the most vocal NGOs active against the WTO – described the whole negotiation as a “sham”.

“Why should humanity beg the WTO for a peace clause to guarantee the right to food?” The organisation questioned at the end of the summit on Friday night, while ministers were fine-tuning the last version of a text they were to agree upon. “The whole negation of the Bali Package is nonsense.”

India was asking for a “peace clause” to be granted, as an indefinite extension of the penalty until a permanent agreement had been reached. It also called for the review of prices used to determine the total cost of production, which are based on statistics from the late 1980s.

Although EU delegates said food security is not their issue, they joined the US and others in rejecting India’s demand and offered to limit the “peace clause” to only four years.

“They fear that leaving it open until a permanent solution is sought is a recipe for no agreement indefinitely,” a trade expert working for the WTO told Fortune anonymously.

Many delegates expressed their fears that another collapse of talks in Bali would mean that member countries resort to bilateral and regional trade deals. This could undermine the relevance of the multilateral – all inclusive and explicitly agreed – platform.

Despite such resistance from India, most delegates, – and Roberto Azevedo, the new director general of the WTO – declared their optimism that a deal in Bali was “within reach”.

“We are too close to success to accept failure,” said Azevedo, opening the summit on Tuesday, December 4, 2013. “It is all or nothing now.”

As the meeting drew in on its closing stages, India got what its negotiators held their position for. It was a price US and Pakistan paid to salvage the entire deal from collapsing, allowing them to be exempted from penalty over the coming four years for subsidising their poor farmers. Should there be no permanent agreement after four years, it was agreed that the exemption will continue for another term.

Despite India’s compromise, an unexpected rejection came in the eleventh hour from Cuba during a roll call. This was due to its delegates’ unhappiness on the way the process was conducted and because a mention of lifting embargo was taken out from the text, according to Rockwell.

“Disappointment” was the word used by Rockwell, during the early hours of the morning on Saturday, after negotiators from Cuba, supported by Venezuelan, Nicaraguan and Bolivian delegates, rejected the proposed text trade experts like to call “the Bali Package”, despite a consensus by the remaining 155 countries.

It is a package comprising of 15 documents, which consumed more than three hours of the ministers’ time to read, before midnight on Friday, and worked them up and “beyond the call of duty”, according to Rockwell. Delegates from the developed economies, the ASEAN, Arab and African groups had all accepted the package, however, to the delight of ministers from the least developed countries, for it would provide duty-free and quota-free access “for all products originating from LDCs”.

It is one of the four items agreed during what is known as the Doha Round. Most crucial to developing countries is the agreement reached to make preferential rules of origin “easier for them to identify products as their own and qualify for preferential treatment in importing countries”.

The objection from Cuba “is not a major trade issue between countries,” said a person knowledgeable of the process. “It is rather a political issue between the US and Cuba.”

With hardly anyone knowing what was to come, trade negotiators had continued their talk behind closed doors to resolve the objections raised in the final stretch of the summit.

Their efforts eventually paid off, with Cuba dropping its threat to veto the package, and a historic deal was reached, to conclude the marathon negotiation session.

While an agreement was reached, the other issues on trade facilitation – an agreement that would compell member countries to open their borders to the easy and fast transit of imported goods, and support for the least developed countries, like Ethiopia – were overshadowed by the issue of food security throughout the whole summit.

“There is nothing in the Bali Package for the people,” decried a statement issued by Pablo Solon, executive director of Focus on the Global South. “It delivers a legally binding agreement on trade facilitation that will open more borders for transnational corporations, and empty promises to the least developed countries.”

But, the EU’s Trade Commissioner argued that the promises from developed economies are not empty. He disclosed, in Bali, 400 million euros of support for five years to go to poor countries that will incur costs while facilitating their customs procedures and opening up their borders for imports.

“Much of these issues are about capacity,” said a trade expert working for the WTO. “Countries, like Ethiopia, with an observer position have the right to seek technical assistance from the WTO and other supporting facilities.”

One such support to poor countries comes through the Enhanced Integrated Framework (EIF) programme, with a fund to finance the capacity of their negotiators. It is chaired by Ethiopia’s Ambassador in Geneva, who addressed the WTO summit last week, on behalf of Mekonnen Manyazewal, chief of the National Planning Commission under the rank of a minister, and Ethiopia’s chief negotiator.

He failed to appear at the summit at the last minute, despite airline and hotel bookings, for reasons that remain undisclosed. In his absence, Minelik announced his country’s readiness to submit its offers on services to start the fourth round of talks, in its bid to join the organisation.

Joining the WTO is a long and arduous process for many countries. There are many, such as Sudan, Algeria and Bhutan, who started the accession process long before Ethiopia, but remain observers. Yemen, on the other hand, joined WTO this week as its 160th member, after 13 years of negotiations. It took China 15 years before it joined in 2001.

With some political reluctance, the Ethiopian government submitted its application for membership in 2003, under Girma Birru, Ethiopia’s current ambassador to the United State and a chief trade negotiator then. It begun its accession process two years later, with the government submitting a “memorandum on foreign trade regime” – a series of voluminous documents listing all of Ethiopia’s laws dealing with trade. However, the toughest phase began in February 2012, after it submitted initial offers on goods, listing all tariff rates for imported goods.

Ethiopia’s average weighted tariff rate of 17pc has not caused any distress to its negotiators, as the WTO rules allow countries to issue up to a 35pc tariff on agricultural imports and 50pc on industrial goods.

“That will no doubt give us a lot of policy room for manoeuvring,” said an Ethiopian trade negotiator, speaking anonymously.

Based on these offers, member countries, through a working group chaired by the Dutch citizen, Steffen Smidt, can enter into cutthroat negotiations with Ethiopia bilaterally and as a whole, according to the trade expert. So far, it is trade negotiators from Canada, the European Union and the United States who have carried out readings of the offers and returned with questionnaires that totalled into the hundreds.

“We’re very supportive of Ethiopia’s accession bid,” Froman told Fortune during a press briefing in Bali.

He met Prime Minister Hailemariam Desalegn and Trade Minister Kebede Chane in Addis Abeba during the summer, where he pledged his country’s support.

“It’s one we follow very closely,” he told Fortune.

However, reforms in telecoms and the financial industry are “very vital to the integration” of Ethiopia to the multilateral trade forum, according to Froman.

But, experts in international trade rules see the benefits that come from reforming domestic laws in order to become compatible with the WTO rules of transparency and predictability as being far more important to the national economy than simply joining it.

One of the texts agreed by member countries of the WTO last week, under trade facilitation, requires each country to upload online “a description of its importation, exportation and transit procedures, including appeal procedures that inform governments, traders and other interested parties of the practical steps needed to import and export, and for transit; the forms and documents required for importation into, exportation from, or transit through the territory of that Member and contact information on enquiry points.”

Accepting membership to the WTO has far more of an implication in rewriting all national laws to be complaint to WTO rules and translating them all into one of the international working languages.  This is as well as making it available to be viewed by anyone interested, according to the trade expert at the WTO.

Indeed, Ethiopia’s Council of Ministers is currently reviewing the nation’s customs laws and is soon to refer it to Parliament for approval. There have been several amendments designed to comply the country with WTO rules, according to a senior trade official.

However, it is the combined offers on goods, services and the protection of intellectual property rights that will help the working group produce a draft report to be submitted to the Council of the WTO, comprised of ambassadors of member countries designated to it, according to the trade expert in the WTO.

“Ethiopia is firmly convinced that trade is an engine of growth,” Minelik told the summit. “Completing the accession to the WTO is consistent to Ethiopia’s development plans.”

He was short of disclosing when the offer on services will be sent to the working group, though.

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Related articles-

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• WTO agreement condemned as deal for corporations, not world’s poor | World news | theguardian.com (theguardian.com)
• BREAKINGVIEWS-WTO’s small victory saves it from irrelevance – Reuters (in.reuters.com)
• WTO agreement condemned as deal for corporations, not world’s poor | World news | theguardian.com (theguardian.com)
• WTO Poised for Biggest Success in Years (the-american-interest.com)
• Historic ‘first’: Trade deal struck at WTO summit (worldnews.nbcnews.com)
• In Bali, Ministers put the world back into the WTO (thehindu.com)
• Food Subsidies Could Stall WTO Deal (allanapotashblog.org)

David Simon: ‘There are now  two Americas. My country is a horror show’

•        
  • David Simon
  • Sunday 8 December 2013        

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Authority signs road project  contract agreements

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The Ethiopian Road Authority (ERA) signed 6.5 billion birr three road project contract agreements with China Communications Construction Company Limited (CCCC), China Railway No.3 Engineering Group Co. Ltd of Ethiopia Branch and China Railway Seventh Group CO. LTD.

Speaking at the singing ceremony held at the ERA Head Office yesterday, Director General Zaid Wolde-Gebriel said that ERA signed a contact agreement with CCCC to design and build the Addis Ababa- Adama Toll Motorway Phase II, Lebu-Akaki- IT Park Outer Ring Road, with China Railway No.3 to build Gashena -Lalibela– Sekota Road, Contract-1: Gashena-Bilbala, and with China Railway Seventh Group to undertake the construction of Zagora- Gassay road projects.

The Director General said: “We have already completed three and half of the Five-year Growth and Transformation Plan ( GTP) progarmme. We are doing our level best. At this time ERA has accomplished about 62 per cent of the GTP in three years and six moths.”

He expressed conviction that these projects would be completed ahead of schedule.

CCCC representative Zhou Yongsheng on his part said that the Addis- Adama road project would be completed within two months time.

China No.3 Engineering Group General Manager, Zhao Sanbao said: “Lalibela is very important town and so is the road to local development. Our company would do its level best to mobilize more resource to complete the project on time.”

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5637-authority-signs-road-project-contract-agreements

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Ethiopia, WB sign $110m financing agreement

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Corporation confident of achieving 70 percent of its GTP

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The Ethiopian Sugar Corporation is confident that it would achieve 70 per cent of its Growth and Transformation Plan (GTP).

The five-year GTP of the sugar sector eyes building 10 new sugar factories and raising nation’s average annual sugar production capacity to 2.25 million tons.

In order to attain the target, the Corporation is undertaking expansion projects on the existing sugar factories while it is constructing new sugar factories at various parts of the country.

After assessing its three years performance in the GTP, the Corporation is convinced that it would attain 70 per cent of the high case scenario in sugar development sector.

“The Corporation would achieve 70 percent of its GTP through commencing sugar production in seven of its factories under construction,” Corporation’s director general, Shiferaw Jarso, said while opening a meeting organized to evaluate this Ethiopian fiscal year’s 6th month performance of the Corporation. According to him, the first phase of Tendaho sugar factory is expected to enter production in the current Ethiopian budget year while the second phase of Tendaho, Beles 1 and 2, Kuraz 1, Kessem and Arjo Didessa sugar factories would commence production in 2007 E.C. Over 92,000 job opportunities would be created in the remaining two years of the GTP period, the director general said. On the other hand, Wolkit, Beles 3, as well as Kuraz 2 and sugar factories are expected to enter production in the first year of the second chapter GTP which is in 2008 E.C, he said. The Corporation has now reached a stage of saving the foreign currency the nation was using to import sugar and is eyeing to earn 376 million US dollars annually by starting export of sugar as of 2007 E.C. In addition to the sugar development, the Corporation is working to generate 197MW energy and produce 134,000 cubic meters of ethanol from the sugar factories by the end of the GTP period. Heads of the corporation, sugar factory and sugar projects are in attendance of the two-day meeting organized to evaluate 6th month performance of the Corporation.

http://www.waltainfo.com/index.php/editors-pick/12019-corporation-confident-of-achieving-70-percent-of-its-gtp-

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Ethiopia working to harness 5.3 mln hectares irrigation potential

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The Ministry of Water, Irrigation and Energy said it is striving to harness its massive 5.3 million hectares of irrigation potential.

The Ministry’s public relations and communication director, Bizuneh Tolcha told WIC that the government has given due attention to its irrigation potential which lacked policy and strategic direction two decades before.

Before 1992, not more than 61 thousand hectares of land were developed through irrigation schemes. A change in government and policy direction meant the sector witnessed a huge transformation. In just two decades, the country managed to develop over 298 thousand hectares of land through irrigation schemes.

By the end of the growth and transformation plan (GTP) in 2015, the country expects to harness 14.5 percent of its irrigation potential, a big leap compared to the 2009/10 budget year where the country managed to harness just 2.4 percent of its irrigation potential.

Bizuneh said the ministry is currently undertaking 15 irrigation development studies, design preparations and construction projects, out of which the ministry expects to finalize nine during the current budget year and four within the GTP period. The remaining two are expected to be finalized within two years after the end of the GTP.

http://www.waltainfo.com/index.php/explore/12017-ethiopia-working-to-harness-53-mln-hectares-irrigation-potential

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Training provided for farmers to improve agricultural productivity

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Training has been provided for more than 325,000 farmers in Arsi Zone of Oromia State in a bid to improve agricultural productivity, the Zonal Agriculture and Rural Development Office said.

Office Head, Gosa Tsegaye said recently that the training was focused on water and soil conservation, land management, irrigation development, input utilization and seedling care, among others.

The zone is undertaking various activities to improve agricultural production and productivity, he said.

Helping the farmers utilize better inputs, such as select seed, fertilizers and compost as well as modern technologies are among the measures the zone took.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5644-training-provided-for-farmers-to-improve-agricultural-productivity

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ECAA expecting quality assurance certificate from FAA

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The result of the International Aviation Safety Assessment conducted on the Ethiopian Civil Aviation Authority (ECAA) by the United State Federal Aviation Administration (FAA) is expected to be official soon, the Authority said.

Authority Director-General Wosenyeleh Hunegnaw (Col.) said that the Authority is expecting a quality assurance certificate from FAA based on the recent audit, which will enable the Ethiopian Airlines continue to fly to the U.S.

An FAA team of experts spent five days in Addis Ababa assessing the Authority’s working procedures and the qualifications of its experts.

FAA grants permits to airlines of a country to fly to the U.S. if the regulatory body of that country qualify the FAA audits.

Ethiopian Airlines started flying to the U.S in 1998 after ECAA was certified by the FAA as category one.

There are three categories of permits, category one means passing the audit without a remark. Countries in this category comply with the International Civil Aviation Organization’s operational safety standards.

Category two permit will enable airlines to fly with restrictions. The deficits should be rectified within a specific period. Airlines based in countries listed in category three will not be able to fly to the US.

If the regulatory body of a country fails to meet the requirements of FAA, all carriers based in that country will not be able to fly to the US.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5642-ecaa-expecting-quality-assurance-certificate-from-faa

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Libya keen to re-establish ties with Ethiopia

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The transitional government of Libya is desirous to re-establish the bilateral ties with Ethiopia, the visiting Libyan parliamentary delegation led by the Deputy Speaker Dr. Ezzidine Mohammed Al -Awami said.

While conferring with the Speaker of the House of Peoples’ Representatives Abadula Gemeda here last Wednesday, the Deputy Speaker said the transitional Libyan government is keen to re-establish the partnership with Ethiopia.

He also expressed his country’s keenness to work together with other African countries on peace and security issues.

The Speaker appreciated Ethiopia’s efforts exerted to build peace and stability in the region.

Speaker Abadula Gemeda on his part appreciated Libya’s willingness to renew ties with Ethiopia.

He affirmed that Ethiopia is willing to share its best practices on good governance and democratic system building to Libya.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5646-libya-keen-to-re-establish-ties-with-ethiopia

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Commission steps up Nat’l Human Rights  Action Plan implementation

Finnish delegation, local stakeholders and media personnel discussing human right and democracy

The Ethiopian Human Rights Commission ( EHRC) says it is stepping up efforts in implementing the National Human Rights Action Plan in all federal and state governments’ organs.

Opening a half-day discussion on human rights and democracy yesterday, Commissioner Ambassador Tiruneh Zena informed Finnish delegation, local stakeholders and media personnel that EHRC is not only playing enormous role in the preparation and implementation of the first ever action plan of the commission, but also engaging in setting up the national human rights forum across the country.

As to the progress that has been achieved so far by EHRC, he noted that all federal and states have drawn their respective action plan in a bid to discharge their responsibilities and a steering committee has been established by the Prime Minister to oversee the implementation of the plan.

Citing the importance of getting involved all stakeholders such as governmental, non- governmental organizations, mass organizations, among others, he underlined that this huge organization would enhance awareness creation campaigns to eliminate harmful traditional practices like early marriage , FGM, polygamy and the like that still prevail in Ethiopia.

Regarding challenges encountered in implementing the national and international human rights law, Ambassador Tiruneh pointed out that disproportionate use of force, delay in bringing the suspect to the court, human rights abuses in some detention centres of the country and the like have been observed through monitoring practices of EHRC.

Finnish Ambassador Ms. Sirpa Maenpaa on her part said that her country would provide every assistance to Ethiopia in its endeavours of respecting and promoting universal and national human rights as well as creating democratic and accountable societies across the nation.

During the discussion, representatives of Federal Ethics and Anti-Corruption Commission, the Office of Ombudsman and others have briefed participants about their respective activities with regard to ensuring and protecting human rights to the delegation and a number of questions were raised in line with human trafficking, election, free use of media and others by the delegation.

The National Human Rights Action Plan was launched at a meeting held at UNECA last October.

http://www.ethpress.gov.et/herald/index.php/herald/news/5616-commission-steps-up-nat-l-human-rights-action-plan-implementation

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Finnish delegation lauds nation’s commitment to improve citizens  well-being

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Under-Secretary of State Anne Sipiläinen

Finnish high level decision-makers and opinion leaders visiting Ethiopia said they are very impressed with the government’s pro-poor investment.

At a reception held at the Ambassador’s residence in honour of the delegates yesterday, Under-Secretary of State Anne Sipiläinen said: “I am really impressed by what I saw in Bahir Dar as well as in Addis Ababa. The changes are positive because the government’s expenditure, the polices and programmes are all pro-poor.”

Girls and boys are going to school, the health situation is improving, access to clean water and sanitation is very high and then what is really important is young girls and boys are being educated better than earlier times as well as a lot of job opportunities for the youth, for instance in agribusiness, have been created, added Sipiläinen.

“I had never been out of Addis Ababa, but what I saw up North is wonderful. I am really impressed, it is so beautiful. I have been to Ethiopia many times and can tell the difference. Every time I am here, the change I am witnessing is amazing. The country ‘s potential to grow is huge. ”

“Ethiopia is an African power. And I believe it will be a very active player in regional as well as global politics. Finland values the country’s relations. Hence, our Prime Minster and a high-level delegation will visit Ethiopia soon.”

MP Riitta Myller also said: “Though it is only three days I am here, I am impressed with what I saw. Almost all children are going to school which is the basic for any country’s development. Access to health services, water and sanitation is also there. Finnish experts working in Ethiopia told me that the government budget gives priority to education and health care services. I also heard that there are big differences between city and rural schools.”

She said that the water and sanitation projects the delegation visited are doing well and witnessed that the communities are part and owners of the projects. It is not like somebody is giving them. It is rather they are making it but get some support, which is a very good idea.

“We visited the women shelter for Saudi returnees. It is sad that happened. But I appreciated what is being done to rehabilitate the returnees. ”

Durate Company CEO Kari Karppinen on his part said: “I am here representing the Finnish private sector. This is my first visit to Ethiopia and I am enjoying every minute of it. I didn’t expect to see this much hotel, transport and other construction to be going on.”

To have a rapid development you need infrastructure, education, conducive investment atmosphere as well as transparency, among others. Most of all quality of education. “I think the Ethiopian government understands that.”

The two countries have a lot of business opportunities. “We have an experience in manufacturing. I am actually convinced about the ample business opportunities here. There are several Finnish companies already here whom I can partner to enter the market.”

The 19-member delegation is comprised of parliamentarians, students leaders and journalists. The four-day visit is organized by the Ministry of Foreign Affairs of Finland with the aim to provide the delegation a comprehensive picture about Ethiopia and the opportunities and challenges it faces with the promising economic growth and challenging social problems.

The delegation had the chance to have a close look at grass-roots experiences and the conditions under which Finnish-funded programmes and projects are being carried out in Amhara State. They visited Amhara CoWASH, Tana Beles Watershed, REILA (Responsible and Innovative Land Administration in Ethiopia and Agro-BIG (Agro-Business Induced Growth) programmes as well as primary schools, trade and entrepreneurship schemes. In the capital, they met with key representatives of Human Rights Commission and discussed democracy, equality and equity situation in Ethiopia and also visited the AU.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5623-finnish-delegation-lauds-nation-s-commitment-to-improve-citizens-well-being

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Investment booming  in Gondar

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The investment is booming in various sectors, specially in hotel and service sector construction in Gondar

The favourable conditions created by the government added to its vicinity to Ethio-Sudan border, both local and foreign tourist inflow, investment, specially hotel and service sector are booming in the historical city of Gondar. To speedup the city’s all-round development, its administrators, developers, service sector and other stakeholders are working inexhaustibly and jointly to sustain its development, City Mayor Getnet Amare said .

In an exclusive interview with The Ethiopian Herald, Mayor Getnet said that 119 investors have received land from the city administration over the last three years. Some of the investors have entered production phase while some are under construction and some of them are at the initial stage.

Getnet further indicated that 84 investors have shown interest to engage in the manufacturing sector but are not provided land. According to him, the City Administration has reclaimed land from 71 investors who failed to launch their projects.

The City Administration prepares industrial zones paying compensations and laying the necessary infrastructure facilities, he said. “So far, it has facilitated and created conducive investment climate for investors to develop land according to their project proposals. Hence, the investment is booming in various sectors, specially in hotel and service sector construction, Mayor Getnet said.

So far, three industrial zones have been prepared. The fourth is identified and readied for use. As land is very expensive, the administration considers the investors’ land use proposal and early engagements whenever a request is submitted by investors.

Furthermore, most investors are engaged in milk and agro-progressing, plastic, detergent factories in the City.

Meanwhile, Getnet said the city is hosting the 4th Ethiopian Cultural Festival Week January 14 -17, 2014. ‘Timket’, Ethiopian Epiphany, which is one of the biggest and most fascinating annual holiday’s celebrations of the year in Ethiopia would ”also be celebrated January 19, 2014. Apart from its religious significance, ‘Timket’ has a great significance in attracting tourist from all over the world.

The modern city of Gondar is popular as a tourist destination for its many picturesque ruins in the Royal Enclosure, from which the Emperors once reigned. The most famous buildings in the city lie in the Royal Enclosure , which include Fasilides Castle, Iyasu’s Palace, Dawits’ Hall, a banqueting hall, stables, Mentewab’s Castle, a chancellery, library and three churches. Near the city lie Fasilides bath, home to an annual ceremony where it is blessed and then opened for bathing; the Qusquam complex built by Empress Mentewab, the 18th century Ras Michael Sehul’s Palace and the Debre Berhan Selassie Church.

Downtown Gondar shows the influence of the Italian occupation of the late 1930s. The main Piaza features shops, a cinema and other public buildings in a simplified Italian modern style still distinctively of the period dispute later changes and, frequently neglect villas and flats in the nearby quarter that once housed occupation officials and occupiers are also of interest.

Currently, its population has reached about 300,000 and administrated by 12 Sub-cities, a satellite town and 11 rural kebeles.

http://www.ethpress.gov.et/herald/index.php/herald/news/5629-investment-booming-in-gondar

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Dry land food, water security project launched

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World Vision Ethiopia and the World Agroforestry Centre yesterday launched a 15 million USD Food and Water Security project aimed at improving the livelihood of dry land community.

Speaking at the event, World Vision Ethiopia Director Margaret Schuler said that the five- year project will be implemented focusing the most vulnerable communities of Tigray and Rift valley areas.

“We are thrilled with this project because World Vision’s programmes are designed to improve the well being of children and strengthen household and community resilience.”

According to her, the project would focus on semi-arid regions of Ethiopia to transfer rural households from subsistence farming to sustainable rural development by increasing food and water security, better access to markets.

Speaking through his representative, Agriculture State Minister Sileshi Getahun said concerted efforts are being made in Ethiopia to expand watershed management and carry out effective water and moisture retaining works.

According to him, these efforts have significantly contributed to cope with the challenges of climate change. Sileshi also said taking the threats of climate change to its development, Ethiopia is implementing a green economy strategy.

“By implementing the green growth strategy, Ethiopia avoids locking in old technologies and ensure its economy grows in a sustainable manner.”

Sileshi further noted that the active involvement of development partners in the area of environmental protection has a long lasting effect. As part of this joint initiatives, programmes like Tree for Food Security, Africa Rising Sustainable Intensification of Trees are worth mentioning.

“The harmonization of new and ongoing development initiatives and projects into a comprehensive nation wide strategy will help in avoiding redundancy of activities and the misuse of resources,” he added.

Presenting his research, Dr. Denis Garrity, UN Dry lands Ambassador Distinguished Board Research Fellow, World Agroforestry Centre, indicated that the project will have a long term effect in selected areas to increase productivity of commercial staple crops, water use efficiency, decrease food dependency and increase the availability of nutritious food.

According to him, if proper action is taken, the African dry lands have a great investment potential.

The project is funded by the government of Netherlands via the General Directorate of International Cooperation (DGIS).

http://www.ethpress.gov.et/herald/index.php/herald/news/5617-dry-land-food-water-security-project-launched

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Ethiopia,  Ghana sign General Cooperation Accord

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-  The General Cooperation Agreement covers a wide range of political, economic and social spheres including foreignpolicy, trade, investment, agriculture, science and technology.

Foreign Minister Dr. Tedros Adhanom and his Ghanaian counterpart Mme. Hanna Tetteh signed a General Cooperation Agreement in Accra Monday.

According to the Ministry of Foreign Affairs, Dr. Tedros and his delegation arrived in Ghana Sunday on a working visit to strengthen Ethio-Ghana relations. The General Cooperation Agreement covers a wide range of political, economic and social spheres including foreign policy, trade, investment, agriculture, science and technology.

In a welcoming address, the Ghanaian Foreign Minister noted that Ethiopia and Ghana had pioneered continental unity in post-colonial Africa. She said the common positions taken by the two countries at the international arena had contributed to peace, security and conflict resolution.

Mme. Tetteh also underlined the need for focusing on areas of mutual interest and to share best practices. In this regard, she mentioned the Ethiopian Commodity Exchange which, she, said was a continental success story that Ghana is keen to learn from.

Dr. Tedros thanked Mme. Tetteh for the invitation to visit Ghana and for the hospitality he and his delegation had received. He recalled the fruitful discussions they had on the sidelines of the AU Summit in Addis Ababa during the 50th Anniversary celebrations of the OAU/AU and how those discussions had now led to the General Cooperation Agreement, and he underlined the importance of taking appropriate measures to implement the agreement.

Dr. Tedros also stressed the need for further action to take the agreement to a higher level and said the agreement should serve as a basis to form a Joint Ministerial Council and facilitate the engagement of the two country’s respective institutions. He said that he and his Ministry was ready to facilitate an experience sharing visit to have a look at Commodity Exchange operations.

Dr. Tedros also said that relations between the two countries was driven by their common desire to promote peace, security, stability and development in Africa.

On Monday, Dr. Tedros visited the Kwame Nkrumah Memorial Park and the burial ground of Former President John Ata Mills. He and his delegation were also driven to the Akosombo Hydro Electric plant inaugurated in 1966 to generate 500MW. Since then, it has been upgraded on several occasions and now generates 1,020MW.

On Monday evening, Foreign Minister Hanna Tetteh hosted a dinner in honour of Foreign Minister Dr. Tedros and his delegation.

http://www.ethpress.gov.et/herald/index.php/herald/news/5602-ethiopia-ghana-sign-general-cooperation-accord

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Japan reaffirms fulfilling TICAD-V commitments

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Japanese Prime Minister Shinzo Abe

Prime Minister Haile-Mariam Desalegn 

 Chairperson of the AU Commission – Dr. Nkosazana Dlamini Zuma

Japanese Prime Minister Shinzo Abe reiterated that his government, without fail, would carry out each and every one of the commitments made at Fifth Tokyo International Conference on Africa Development (TlCAD- V) which took place in Yokohama in June 2013.

During a visit to the African Union Headquarters yesterday, Prime Minister Abe said that through the entire TlCAD process, many Japanese have acquired a predisposition to conjure up images of Africa in bright colours and a considerable number of Japanese believe that Africa is the hope for Japan.

Pertaining to fostering Africa’s private sector development, Abe noted that in a bid to realize the continent’s brilliant future, within five years, Japan would double loan which currently stands at 1 billion USD .

Capitalizing on Kaizen approach, he underscored that it is a managerial technique for Africa to rediscover its indigenous state. In due course of time the Ethiopian Kaizen Institute would expand the content of its programmes and be launched as the first human resource development centre for business and industry in Africa.

“ If Africa interacts deeply with Japan and Japanese companies, it will surely be easy for it to leverage its original strength thus Africa will be able to acquire definite seeds towards the future,” he added.

With regards to Japan‘s diplomacy towards Africa, Prime Minister Abe indicated that the axis would focus on two groups: young people –who with no doubt will shoulder the responsibility for the future Africa – and women, who will give life to Africa’s future generations.

Japanese industrialization

Prime Minister Haile-Mariam Dessalegn on his part said that Africans have always looked with keen and deep interest at the industrialization of Japan. The strong link between education and industrialization in Japan has attracted African intellectuals since the early 20th century. He went on saying that one such scholar was the well-known Ethiopian author, Dr. Kebede Michael. He found the history of your country so interesting and relevant to developing countries like Ethiopia that he wrote in the early 1950s a book entitled The Modernization of Japan.

According to him, Dr. Kebede depicted the key elements of Japan’s development strategy and argued that countries like Ethiopia should learn from Japan and concentrate on basic education and technical training to build local technological capacity.

Chairperson of the AU Commission Dr. Nkosazana Dlamini Zuma also recalled that during the TICAD V meeting of June 2013, the Prime Minister promised to visit the continent, a sign that Japan values its relationship with Africa and recognizes its potential. “This potential is expressed in the continent’s over one billion people, the majority of whom are youth and women, as well as its abundant natural resources in the form of land, water, forests and oceanic resources.”

She said during the occasion of the 50 th Anniversary of the OAU/AU in 2013, Africa committed to speed up investment in people, science, technology, research and innovation and infrastructure; and to benefit natural and mineral resources, and to invest in agriculture and agri-businesses.

Japan plays an important role in global affairs, as an example of how a country can develop, using its most precious resource, which is its people, she said. “In its relations with Africa, we cooperate on human resource development, in particular the generous support Japan gives to the Pan African University,” the Chairperson said.

Press briefing

Meanwhile, Abe told journalists: “50 years ago, Athlete Abebe Bikila come over to Tokyo all the way for Africa where in the Tokyo Olympics and he achieved two consecutive victories which no-one a person has accomplished. Here we are half a century later Africa is no longer somewhere far away. African countries are about to blossom the world greatest potential as we speak. Africa has really changed not only in sport but other aspects such as culture and economy and other aspects.”

The Prime Minister also said: “Japan is here in Africa in protecting the environment, creating industries, developing human resources not only to access resources but to be as a partner to grow together with Africa for the future and this is the Japan way also here in Ethiopia.”

Abe pointed out that Ethiopia and Japan have more than 80 years historical relations. “Recently, Ethiopia has been enjoying a spectacular growth close to 10 per cent and it is in the process of rapid development,” Abe added.

He further pointed out that Japan would like to transfer some know-how working together with Africa and this would lead to a bright future for the continent as well. In addition, Japan contributes to regional and world peace and stability as well.

Regarding the South Sudanese conflict, Abe said that his country is pleased with the mediation by neighbouring states including Ethiopia and hopes this effort should be supported and Japan is ready to provide additional assistance. “We are preparing and continue to undertake the initiative to uphold the efforts of all the African themselves to bring about peace and stability in the continent.”

Prime Minister Abe reaffirmed that Japan would continue to assist in Ethiopia’s development endeavours, sharing experiences through the Ethio-Japan Industrial Policy Dialogue.

The Japanese Prime Minister paid a two -day official visit to Ethiopia as a part of his week- long visit to Africa and Middle East.

http://www.ethpress.gov.et/herald/index.php/herald/news/5601-japan-reaffirms-fulfilling-ticad-v-commitments

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Italian business delegation hold talks with Ethiopian counterparts

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A delegation of Italian business persons held talks with Ethiopian counterparts here last Wednesday.

During the occasion ,the Ethiopian Chamber of Commerce and Sectoral Associations Secretary General Gashaw Debebe said the prevailing conducive investment atmosphere is attracting more Italian companies to Ethiopia.

The number of Italian companies investing in Ethiopia is increasing, he said, adding, the Ethiopian Embassy in Rome is contributing quite a lot in this regard.

The trade relation between the two countries has also increased, he said.

He said the trade flow between the two countries has reached 391 million USD in 2011.

The Italian companies that are visiting the country are desirous to invest in various sectors in Ethiopia, delegation leader Gerardo Mario said.

He said they are interested to invest in manufacturing, leather and leather products, textiles, exploration of mines and agro-processing areas.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5641-italian-business-delegation-hold-talks-with-ethiopian-counterparts

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 First National Model MSEs Exhibition opens in Addis Ababa

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The First National Model Micro and Small Enterprises Exhibition and Bazaar was opened yesterday in Addis Ababa, Ethiopia, The Ethiopian Herald reported.

The objective of the expo is to create market link and share experiences among federal and state micro and small enterprises, according to the paper.

Over 168 model micro and small enterprises from Southern Nations, Nationalities and Peoples, Tigray, Oromia Amhara, Harari regional states and Addis Ababa and Dire Dawa city administrations are participating in the event.

Artifacts, agro-processing products, designs, textile products, beverages, consumer products, wood and metalworks are on display at the six-day exhibition.

The exhibition and bazaar was organized by the Federal Micro and Small Enterprises Development Agency.

http://www.2merkato.com/news/alerts/2802-ethiopia-first-national-model-mses-exhibition-opens-in-addis-ababa

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Can agriculturally-based direct foreign investment promote sustainable development? A review  of African cases

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Three-quarters of the world’s population living below the $2 per day poverty line not only live in rural areas but also depend on agriculture for their survival. Given such global poverty, it is sad to note that the Official Development Assistance (ODA) given by foreign governments and international financial institutions, particularly for the agricultural sector of the developing countries, have declined by almost 70 percent between 1970 and 2007. More recently, due to expectations of rising food prices, demand for biomass for energy use, and the agricultural commodities needed for industry, the inflow of Foreign Direct Investments (FDI) for agriculture in developing countries has increased substantially. More particularly, private investors from industrialized and emerging countries have become very active in using long-term leases to secure large areas of agricultural land (also known as land grabbing, which has also led to water grabbing) in Africa.

An analysis of the existing literature indicates that two contrasting perspectives, through which investigators tend to view agriculturally-based investment in developing countries, are emerging. Optimists tend to put a premium on foreign investors as a vehicle for promoting infrastructure, environmentally sound technologies and who contribute to spillover effects on local economies of developing countries. Pessimists on the other hand argue that agriculturally-based foreign investments are exploitative and give little benefit to local populations. More specifically they argue that large-scale foreign industrial agriculture not only victimizes pastoralists and small scale farmers in developing countries, but also severely degrades the quality of topsoil, damages local waterways and ecosystems as a result of using detrimental fertilizers and intensive farming techniques.

The issue is not whether or not FDI is on board. What is crucial from a policy-making point of view is whether or not FDI agricultural projects are meeting the sustainable developmental needs of the developing countries. Based on these assumptions, the purpose of the study was to review the literature and establish the effects of agriculturally-based foreign direct investment on sustainable development in some African countries. A review of the literature indicates from a socio-economic perspective that FDI in nine African countries not only created manual jobs at a very low rate but also the foreign investors have diversified the agricultural production by introducing new mono-crop varieties.

In addition, some investing companies have operated more efficiently than domestic companies in terms of asset utilization. Environmentally, the export earnings of the African case studies have increased because the investors added values with the dissemination of technology to produce more efficient, safe and clean products. On the other hand, the FDI in agriculture have rented the land to large cooperatives at a very low rate so that the local people have lost access to resources such as land, water, wood, medicinal plants and the common areas that were used for grazing. The natives were pushed from higher-value lands into marginal lands. The compensation given to the displaced villagers was insufficient to restore livelihoods lost due to dislocation. The land under FDI contributed to loss of a critical biodiversity and the local people living adjacent to foreign leased lands have been contaminated by all forms of pesticide, herbicide, and chemical fertilizer filtering into the ground water. Thus, to ensure that the investors’ agricultural production practices are in line with the goals of sustainable development as designed by the host country, a well-planned, transparent assessment structure needs to be mapped out by both the host country and investing company.

  (Taken from a study abstract which was published)

http://www.ethpress.gov.et/herald/index.php/herald/development/5612-can-agriculturally-based-direct-foreign-investment-promote-sustainable-development-a-review-of-african-cases

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Belarusian Amb. Presents credentials to Amb. Berhane

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February 21 2014

Shirts bearing the name of U.S. President Barack Obama are a common sight in Corbetti, a village located in Ethiopia’s Rift Valley.       Jacey Fortin

Jacey Fortin

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Fortin is the IBTimes Africa Correspondent based in Addis Ababa, Ethiopia. She joined IBT in February of 2012, and has previously worked as an editor and reporter for…      Continue Reading

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Ethiopian  Planned Second Dam Might Inflame Nile Water Controversy with Egypt

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According to the Amharic newspaper Addis Admass source, the Ethiopian government has completed plans for a second major Dam on the Nile river while disputes with Egypt has already grown over the first GERD dam.

An inside government source confirmed to the newspaper that Ethiopia wants to build another dam as well as initiate an irrigation project on the Nile to feed its growing population. Since over 85% of the Nile waters flowing to Egypt originate from Ethiopia, cairo leaders have previously blocked international funding for Ethiopian dam projects since the 1970s. Ethiopia has so far used only 2% of its own Nile water sources while Egypt has dominated the water for decades. But the current Ethiopian ruling party has managed to improve its relations with the West, Sudan and China to its favor. Half a dozen African nations and Sudan have supported the Ethiopian dam. With over 90 million people, Ethiopia has become the second largest country in Africa and its leaders seek to end foreign aid dependency.

The inside government source claimed that executive members of the EPRDF ruling party has been angered by the hostile comments from the Cairo government since January this year, which they see as racism because Ethiopia was never consulted during the construction of Aswan Dam in Egypt. The executive has put pressure on the young Ethiopian PM to take a stronger stance. According to the source, Ethiopian military officials have also detected increased Egyptian agitation for rebel groups in horn of Africa, including on Ogaden rebels and Somalia.

Some leftist members of the Ethiopian ruling party have blamed the United States foreign policy for tilting the balance of power in Africa by continuing to give F-16 jets and billions in military aid to Egypt. They attribute these western policies for emboldening Cairo to bully Nile Basin African countries.

http://somalilandsun.com/index.php/regional/5066-ethiopian-planned-second-dam-might-inflame-nile-water-controversy-with-egypt

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Turkish firm plans ‘major business event’ in Ethiopia next year

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“Our company is planning to bring 50 private companies from all business sectors [to Ethiopia],” project director Yusuf Kirdar told Anadolu Agency on Thursday.

The Meridyen International Fair Organization, a major Turkish event organizer, is planning to hold a “major business event” in Addis Ababa in 2015.

“Our company is planning to bring 50 private companies from all business sectors [to Ethiopia],” project director Yusuf Kirdar told Anadolu Agency on Thursday.

“The trade fair that is being planned is exclusively Turkish,” Kirdar said on the sidelines of the 18th Addis Chamber International Trade Fair (ACITF), which kicked off Thursday.

Kirdar indicated that his company had facilitated the participation of several Turkish firms in last year’s event.

“We’ve brought together 21 companies from various sectors, ranging from manufacturers to exporters, for this trade fair,” he said.

According to Kirdar, Turkish companies were entering the Ethiopian market “in droves.”

“We’re doing good business here,” he asserted.

Headquartered in Sisli, Turkey, the company is currently holding exhibitions in several countries.

At the opening of the ACITF on Thursday, Ethiopian State Minister for Industry Haile Siraj said the annual event was “a platform for companies to share experiences with their foreign counterparts and initiate business linkages and investment through joint-venture arrangements.”

First launched in 1995, this year’s ACITF will include 188 participant companies from 17 countries.

http://www.worldbulletin.net/turkey/129336/5802-new-companies-established-in-turkey-last-month

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World Bank Supports Road Improvements and Maintenance in Ethiopia

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Computer rendering of Addis Ababa – Nazret Expressway Road

WASHINGTON – The World Bank’s Board of Executive Directors today approved funds to help Ethiopia upgrade the country’s road system, strengthen road maintenance and reduce travel time along inter-regional corridors.

The Road Sector Support Project is supported by a US$320 million IDA credit* as part of the $US385 million total project cost. The government of Ethiopia will contribute $US65 million. The project aligns with Ethiopia’s Growth and Transformation Plan (GTP) and supports economic expansion by improving the quality of roads serving areas producing exportable agricultural products. By helping secure access to all-weather roads, the project will also help Ethiopia achieve its goal of halving the proportion of the population living below the poverty line.

“Ethiopia has experienced strong economic growth and has achieved substantial progress on social and human development over the past decade,” said Guang Zhe Chen, World Bank Country Director for Ethiopia. “Upgrading and maintaining the country’s road sector is an important part of our work in Ethiopia. Today’s project will help to enhance trade, create new markets, and provide improved access to education, medical services, and food security to the country’s poor.”

The Government of Ethiopia formulated the first phase of the Road Sector Development Program (RSDP) in 1997. Since then, the size of the road network has increased from 26,550 kilometers to 85,966 km, and the roads operating in good condition has risen from 20 percent to 70 percent. Today’s funds will build on these accomplishments and will be used to upgrade about 258 km of the Nekempte – Bure road, which provides an important link between the Oromia and Amhara regions. The upgraded road will help to reduce travel time and facilitate the marketing of wheat, vegetables and other agriculture crops.

The project also aims to enhance Ethiopia’s road asset management practices by supporting the maintenance of selected roads covering about 200 km; the Government will fund a further 200 km of road under a parallel financing. The funds will also be used to provide technical assistance to strengthen road asset management capacity, and prepare a road asset management strategy.

“Today’s project will benefit women and children by providing them with improved access, access to much needed education and medical facilities, including pre and post-natal care,” said Tesfamichael Nahusenay Mitiku, World Bank Task Team Leader. “Improved road conditions will also reduce the time that women spend transporting products to market, and will bring new opportunities for employment within small-scale, road-side commercial operations.”

At the center of the new operation is the adoption of an Output and Performance Based Road Contracting (OPRC). The road asset management system is expected to reduce the whole-life cost of road infrastructure, provide increased budget certainty for investment and recurrent expenditures, and improve the quality and sustainability of the network for road users.

http://nazret.com/blog/index.php/2014/02/20/world-bank-supports-road-improvements

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New grants support further geothermal development in East Africa

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21/02/2014

New agreements will be signed next month for geothermal development projects in Kenya and Ethiopia, according to the African Union’s infrastructure and energy commissioner.
Commissioner Elham Ibrahim said five grants have already been awarded under the Geothermal Risk Mitigation Facility (GRMF) for East Africa, which encourages public and private sector support for geothermal development.
Ibrahim was speaking during this month’s ministerial session of the second high level meeting of the Africa-EU Energy Partnership (AEEP) in Addis Ababa.

GRMF grants amounting to $22M have already been awarded to five projects in Kenya and Ethiopia, according to Out-Law.com.
In 2012, GRMF said it had about $62m available for cost share grants. A ‘developer manual’ provides detailed information about the facility, including how to apply for funding.
Meanwhile, US companies are also being encouraged to enter East Africa’s rapidly-expanding geothermal market. In 2012, the US Agency for International Development and the Geothermal Energy Association (GEA) launched the US-East Africa Geothermal Partnership, which is implemented by the US Energy Association.
In October 2013 Reykjavik Geothermal, whose Icelandic geothermal expertise is backed by US investors, signed a deal with Ethiopia to build a 1000 MW geothermal power plant, Africa’s largest, in the volcanically-active Rift Valley. The company said that, when complete, the project will be Ethiopia’s biggest foreign direct investment, run by its first privately-owned utility.

http://www.powerengineeringint.com/articles/2014/02/new-grants-support-further-geothermal-development-in-east-africa.html

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More than 50 Italian companies at the Addis Chamber International Trade Fair

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More than 50 Italian companies will be participating to the Addis Chamber International Trade Fair (ACITF), to be held at Addis Ababa Exhibition Center from 20 to 26 February 2014.
According to a press release the Italian Embassy in Addis sent to WIC, the Italian Trade Agency will coordinate Italian companies’ participation to the Fair in an “Italian Pavilion” and the delegation will present their products, technologies and services in many sectors such as machinery, construction, engineering, power and energy generators, water treatment, agroindustry.
The purpose of this business mission, which comes after a number of high-level talks on economic cooperation between Italy and Ethiopia, is to further explore trade and investment opportunities offered in Ethiopia, the release emphasised.
According to the press release, the Italian companies will directly engage with Ethiopian business counterparts: “B-to-B” meetings will be organized during the Fair.
The Italian companies will have the opportunity to meet Ethiopian institutional and business counterparts at a networking event called “Italian Night” that will be organized in the evening of Friday 21 February at Hilton Hotel.
Sisay Gemechu, Ethiopian State Minister of Industry, and Elias Geneti, President of the Addis Chamber of Commerce, have confirmed their presence and will address welcoming messages and presentations on business opportunities in Ethiopia to the Italian companies, it stated.

http://www.waltainfo.com/index.php/explore/12417-more-than-50-italian-companies-at-the-addis-chamber-international-trade-fair

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Nation to nurture over 5 billion seedlings

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The Ministry of Agriculture (MoA) said that 5.1 billion various seedlings will be nurtured this Ethiopian budget year.

Public Relations Head of MoA, Tarekegn Tsige, told WIC that the seedlings to be distributed for regional state will have a significant contribution towards improving soil fertility.

In a related development, there is a plan to sieve the porous soil found on over 1.4 million hectares of land and develop it, he added.

According to Tarekegn, soil and water conservation works were carried out on 13.7 million hectares of land in the first three years of the Growth and Transformation Plan (GTP) period.

http://www.waltainfo.com/index.php/explore/12400-nation-to-nurture-over-5-bln-seedlings-

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Administration to build 50,000 condos

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A cornerstone was laid yesterday for 50,000 condominium houses to be built under the 20/80 housing program at Koye-Feche site, Akaki kaliti sub city.

Mayor of Addis Ababa City Administration, Diriba Kuma, laid the cornerstone for the condos to be built on 732 hectares of land, next to Tirunesh Beijing Hospital.

The administration has allocated 5.35 billion birr for the construction of the houses which is expected to create job opportunities for 45,000 unemployed compatriots.

The houses will benefit more than 200, 000 households when completed in 2008 E.C.

http://www.waltainfo.com/index.php/editors-pick/12390-administration-to-build-50000-condos-

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Whipping up Expectations

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UC Davis researcher Doug Cook and Asnake Fikre of the Ethiopian Institute for Agricultural Research (pictured, above) examine a chickpea field in Ethiopia.

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A new research effort in Ethiopia seeks to improve the productivity of chickpea varieties by harnessing the genetic diversity of wild species.

The federal Feed the Future Initiative is the latest rebranding of the U.S. government’s global hunger and food security initiative.

Chickpea is the third most widely grown legume crop in the world, following soybean and bean, and it has the ability to capture and use atmospheric nitrogen, thus contributing to soil fertility.  This five-year, $4 million research program could be important in the developing world, where the chickpea provides a crucial source of income, food security and nutrition to poor farmers.

The potential gains in chickpea productivity are significant in Ethiopia, the largest chickpea producer in Africa and the sixth largest in the world. More than one million rural Ethiopian households cultivate chickpea, and the Ethiopian Agricultural Transformation Agency has planned to double the country’s chickpea production between 2010 and 2015.

“This project aims to develop the chickpea for increased resilience to climate stress and other high-value traits by expanding the range of genetic adaptations available to breeders,” said Doug Cook, a UC Davis professor of plant pathology and director of the project. “Ultimately, we plan to improve the yield, climate resilience, nutritional value, and nitrogen-fixing properties of chickpea varieties selected in consultation with local farmers.”

Through this project, known as the Feed the Future Innovation Lab for Climate Resilient Chickpea, the researchers will combine advanced genomic technologies with analysis of plant traits to identify new and desirable genes harbored by chickpea’s closest wild relatives. They will then introduce these novel genes into Ethiopian breeding programs.

Cook noted that UC Davis’ role will be to provide scientific leadership and overall project coordination among domestic and international partners. The UC Davis team has expertise in molecular biology and genomics and, together with partners, will drive efforts to understand the molecular-genetic basis of agronomic traits, ultimately delivering the corresponding genes through breeding into improved chickpea varieties.

The project provides a key opportunity to engage Ethiopian scientists and farmers in a global research effort to improve chickpea productivity. In addition to UC Davis and the United States Agency for International Development, the research consortium includes the Ethiopian Institute of Agricultural Research, the University of Southern California, Florida International University and Turkey’s Harran University.

It also builds on a global network of partnerships, with allied research activities occurring in Turkey, Australia and Canada. These efforts, along with funding for related research by the U.S. National Science Foundation, all combine to add approximately $8 million in funding and significantly enhance the project’s technical capacity and expertise.   UC Davis

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Sourced  here

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Related posts

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-     Africa and India cultivate agricultural research ties

-     Pawe soybean research glimmering new hope for ensuring food security

-     Revitalizing agriculture in semi-arid areas-role of research

-     Creating Plants That Make Their Own (Nitrogen) Fertilizer

-     As wheat yields fall in Kenya, farmers turn to beans

-     Linking Ethiopia’s bean farmers to formal markets

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Power  generation projects  being accelerated to realize GTP goal

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Gibe III Hydro-power project is 82 per cent complete

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The Ethiopian Electric Power said that the construction of Ethiopian Grand Renaissance Dam, Gibe III, Genale Dawa (GDIII) and other Wind Farm Power Generation projects is being accelerated to realize the Growth and Transformation Plan energy sector goals.

Briefing journalists on the progress of ongoing mega power generation projects yesterday, Ethiopian Electric Power External Public Relations Head Miskir Negash said extensive efforts are underway to realize the GTP in the power generation sector aspiring to increase national power supply.

According to Miskir, the construction of Grand Ethiopian Renaissance Dam, Gibe III and GDIII has been accelerated with a view to increasing power supply and coverage of the country within the GTP period. Accordingly, the construction of GRD has reached 32 per cent. Currently, concrete filing works is underway predominantly. So far, the project has created 7,000 job opportunities and the number would increase as more works are commenced. Works are being undertaking day and night.

With regard to Gibe III project, Miskir indicated activities are underway to launch first phase power generation of the Project within a year. In so doing, two power units are equipped and would be made available with facilities to commence power generation in the early moths of 2007 E.C, he added.

He also noted that various construction phases of Gibe III, which is expected to increase the current energy capacity of power supply of the country by 94 per cent are nearing completion. Gibe III high kilo volt electric transmission line has already been completed while the power house concrete work is underway as well.

Concerning Genale Dawa (GDIII), Miskir also said that the project has reached 48.5 per cent. DGIII Hydroelectric, whose 60 and 40 per cent cost is covered loan from Chinese Bank and the Ethiopian government coffer respectively, will have an installed capacity of 254 MW when it goes fully operational.

He further indicated that the construction of Adama II wind farm project has also been accelerated with the capacity of generating 153 MW. The project is 40 per cent complete. The 230 KV electric transmission station and 33 KV tower works have already been finalized. The total cost of the project is 345 million USD provided by Axiom Bank of China and the Ethiopian government, he added.

Asked about the frequent power interruption in Addis and other areas, Miskir said that the problem is highly related with the low quality of transformers and other man-made causes like acts of vandalism on transmission lines.

Indicating that the Power is working with Metal Engineering Corporation (METEC) to make quality transformers available, he underlined that the problem would be overcome sooner and he called up on the public to prevent vandalism.

http://www.ethpress.gov.et/herald/index.php/herald/news/6121-power-generation-projects-being-accelerated-to-realize-gtp-goal

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Tourism generates over 1.38 bln USD in six months

Over 1.38 billion US dollars revenue was obtained from tourism in the first half of this Ethiopian budget year, according to the Ministry of Culture and Tourism.
Public and International Relations Directorate Director with the Ministry, Awoke Tenaw told WIC that the revenue was earned from 370,754 foreign tourists who visited the nation.

The number of tourists increased by 36 per cent compared to that of same period the previous year. The income has also increased significantly, he added.
The activities carried out to extend tourists’ period of stay, promote tourist sites and participation at international tourism trade fairs and exhibition contributed for the increase in revenue, he said.

According to Awoke, the average number of days tourists stay here has now increased to sixty days from six some six years ago.
The country had also participated in the trade fairs and exhibitions organized in Britain, France, Japan and Brazil, according to the director.

http://www.waltainfo.com/index.php/explore/12489-tourism-generates-over-138-bln-usd-in-six-months

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President calls on US companies to invest  in Ethiopia

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President Dr. Mulatu Teshome said Ethiopia is desirous of engaging US companies in various investment sectors in the country.

During talks with Corporate Council on Africa (CCA) delegation Thursday, the President said that Ethiopia is interested in engaging US companies in the manufacturing, power generation and infrastructural development.

The President briefed the delegation on investment opportunities in the country.

CCA President Stephen Hayes on his part expressed US companies’ interest to invest in Ethiopia in the manufacturing, power generation, infrastructural development and information technology as well.

He said the prevalence of peace and stability, manpower and the country’s rapidly growing economy are factors that attract many companies.

Also yesterday, the delegation held discussion with the Ministry of Foreign Affairs (MoFA) on best business and investment opportunities in the country.

As to Ministry Spokesperson Ambassador Dina Mufti, to empower Africa the Corporate Council make Ethiopia one of its targets and came to look business opportunities in the country.

Accordingly, the delegation had discussion with various business corporate and governmental bodies. The delegation was briefed on the investment opportunities by ministry officials.

Ambassador Dina also indicated that the two countries enjoy century-old bilateral relations. Predominantly in Ethiopia, US involves in the education and health sectors. However, in investment compared to China and Turkey the role of US is minimal. So, they have to work to fill this gap and they are acting to do so, he added.

The Council is committed to work in Ethiopia, Hayes said, adding East Africa has the highest priority.

The Corporate Council on Africa has 182 member companies. It predominantly works to interlink US and Africa in trade, business and economic aspects.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6141-president-calls-on-us-companies-to-invest-in-ethiopia

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Herbicides factory  80 per cent complete

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The Adamitulu Pesticides Share Company said that 80 per cent of a herbicides factory being constructed in Oromia State at a cost of over 40 million birr has been completed.

Company Deputy Manager Lema Bogale told ENA that installation of machinery and equipping the factory with essential materials are being carried out.

The factory will begin pilot production within two months thereby supplying products to farmers and investors engaged in the agriculture sector, he added.

Upon completion, the factory is expected to produce up to 6,000 liters of “2, 4-D” herbicide, which is effective in killing broad-leaved weeds, per day.

Widely used to control broad-leaved weeds, some grass and woody plants, ‘2, 4-D’ (2,4-Dichlorophenoxyacetic acid) acts as a hormone plant growth regulator.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6140-herbicides-factory-80-per-cent-complete

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A glimpse into the progress of the GTP

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Last week, the Council of Ministers of the Federal Democratic Republic of Ethiopia, in its 63rd session, evaluated the past three years’ performance of the Growth and Transformation Plan (GTP) and passed various decisions. According to a press release issued by the Council, the evaluation of the Ministers basically focused on activities undertaken in the areas of economic and social development, infrastructure, democracy and good governance during the implementation period of the GTP over the past three years.

It was learnt from the Council of Ministers’ release that three years after its launching, the Plan has enabled the nation to undertake encouraging poverty alleviation activities that outpaced Sub-Saharan countries. The Council’s press release further indicates that the country’s gross domestic growth rate reached 9.7 per cent in the past fiscal year. The contribution of agriculture, industry and service are 7.1, 18.5 and 9.9 per cent respectively. Due to the efforts made to bring changes in the economic structure, the contribution of agriculture is reduced to 42.9 per cent in 2013 from 46.5 three years before. The industry and the service sectors are raised to 12.4 and 45.2 per cent respectively from 10.3 and 44.1 in 2010.

The Council also stated that the number of people living in poverty has been reduced to 26 per cent in 2013 from 29.5 per cent three years ago, moving in a right path to reduce the level of poverty to 22.2 per cent in 2015. National saving has also risen to 17.7 per cent in 2013 from 5.2 per cent three years before, showing a marvellous achievement beyond the 15 per cent plan to attain in the GTP period. Road infrastructure also rose to 58, 338 kilometres in 2013 from 48, 800 kilometres in 2010. In social services, the number of elementary schools (Grades 1-8) reached 34, 495 in 2013 from 26, 951 and the number of students reached 17.4 million from 15.8 million in 2010. The number of secondary schools also reached 1,912 from 1,335 in the same period. In addition, the number of health centres increased to 3, 100 from 2, 142 three years ago.

The Council of Ministers noted that the registered economic growth is by far better than the 5 per cent economic growth rate that Sub-Saharan Countries have registered. Ethiopia has managed to attain this encouraging economic growth amid global market challenges.

This indeed is good news for Ethiopians who have shown their commitment and readiness for the success of the GTP, which holds the hopes and aspirations of millions of citizens. One has to go back and recall for few minutes the flesh of the GTP in order to compare if we really are making a progress and moving forward in implementing the Plan according to the set schedule.

To start with, two scenarios have been considered during the implementation period of the five-year Growth and Transformation Plan. These are: the Base Case Scenario and the High Case Scenario. In the Base Case Scenario, it is planned to maintain the annual average economic growth of 11 per cent attained. In the High Case Scenario, it is envisaged to double the 2002 E.C agriculture production and general economy by 2007 EC. To this end, it is planned to attain an annual average economic growth of 14.9 per cent and complete the activities geared towards enabling the industry sector take the lead in the country’s economy.

To help the agriculture sector continue to be the source of the country’s economic growth, the Plan stresses the need to strengthen the efforts geared towards ensuring market-oriented trend and the provision of improved production to local and foreign markets. In addition, according to the Plan, it is important to encourage the participation of investors in the agricultural sector and provide incentives to estate farm developers; give due attention to areas with high development potentials and encourage farmers and investors to actively engage in the production of agricultural products that have high market demand.

In addition, with a view to making the industrial sector play a key role in the economy, the Plan stresses the need to ensure rapid development in the industrial sector; bring about sustainable technological growth in the medium and large industries; attach due emphasis on the growth of Micro and Small-Scale Enterprises (MSEs); make the industrial sector export-led; give due attention to industries that could substitute imported goods; and make institutions of higher learning as well as technical schools industrial development oriented.

In the infrastructure sector, it is planned to undertake the construction of new rural roads in all states connecting each rural Kebele with highways; carry out the construction of national railway; promote the use of renewable energy sources such as water and wind; and further strengthen the ongoing efforts to provide quality, modern and integrated telecommunication services to the general public at a reasonable price across the nation.

Concerning the promotion of social development activities, the Plan indicates that utmost efforts would be exerted to tackle constraints that limit school enrolment of children and women; gear the training programmes of higher education institutions towards programmes on science and engineering and make the quality of education comparable with that of similar foreign institutions of higher learning.

With regard to the expansion of health services, the GTP eyes at undertaking basic prevention and control health services involving the general public; promoting quality hospital services across the nation; ensuring that medical institutions are equipped with the necessary manpower and materials; improving the skills, composition and administration of the human power in the health sector and exerting efforts to address the brain drain of medical professionals.

The five-year GTP also touches upon other issues such as raising the capacity and benefits of women and the youth; social security, culture and tourism, as well as environment and climate change. It also attaches special emphasis on accelerating capacity building and good governance efforts. In this aspect, the GTP focuses on effectively implementing government policies and strategies by building the capacity of the civil service, supporting the judicial system to continue with the reform activities that it is undertaking; carrying out intensive good governance activities to ensure transparency and stamp out corruption; exerting unreserved efforts to ensure democratic culture in the country and carrying out integrated activities to raise the public awareness on the Constitution and legal system of the country.

In light of the above brief recollection of the GTP and the evaluation of the Council of Ministers made recently, one can say that the implementation of the GTP over the past three years is indeed successful as it witnessed the fulfilment of the set targets in the majority of the development sectors. When the government launched the GTP three years ago, some said that the GTP is ambitious. Other sceptics also doubted its attainability. But, the success registered over the past three years demonstrated that the Plan is achievable and within our reach.

Here, one important fact should be emphasized. The demonstrated and well-proven commitment of the government to successfully implement the Five Year Growth and Transformation Plan would not bring about the much desired result if not supported by the full participation of the public at large. The success of the Plan heavily depends on the active involvement of the entire public. The participation of the people from all walks of life is indispensable in the implementation of this Plan, which is believed by many to make the nation food self-sufficient and contribute a great deal in the efforts exerted to pull the country from the abyss of poverty.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6146-a-glimpse-into-the-progress-of-the-gtp

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A matter of survival for Ethiopia that has low water storage capacity

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“The Nile River, its natural resources and environment are assets of immense value to all the riparian countries,” this excerpt is one among the statements that furnish with a preface or introduction in the modern Nile agreement— Cooperative Framework Agreement (CFA)— which is made between the Nile Riparian countries.

In line with this, Ethiopia has commenced the construction of Grand Ethiopian Renaissance Dam (GERD) on the major tributary of Nile, Abay, in Benshangul-Gumuz State. As a signatory state of the CFA, Ethiopia has proved a great commitment for an equitable use of the waters and without harming the water flow to downstream nations. This has been evidenced as the nation invited downstream nations, Egypt and Sudan, to study the impact of the dam. Forming International Panel of Experts (IPoE), the three countries— Egypt, Sudan and Ethiopia — have made rigorous studies examining the construction site first hand. After that, IpoE concludes as the dam poses no major threat to downstream nations.

Still, unlike other nations in the world that have built hydro power dams along cross-boundry water courses found in their territory without consulting the respective riparian countries, Ethiopia is persistently cooperating with countries that share waters of the Nile and has received encouraging response from the nations including from downstream Sudan. In addition, the international community has also understood the significance of the low cost energy source in opening more rooms for cooperation among the Nile riparian countries.

Yet, Egyptian scholars and politicians seem living in an isolated island. They are neither cooperating with the riparian countries nor respecting what the international community is advising them. Still, they are proponents of colonial “treaties”, which lost place when then Tanganyika got independence in 1961 which Uganda and Kenya followed suit. But, Egypt is daydreaming to retain a so called treaty that was made to share Nile waters unfairly between Sudan and Egypt. Some politicians and scholars are having busy days to revive these “treaties”, if at all they could be referred that way. The aimless campaigns, however, have not been welcomed by most. They are being told that cooperation is the only way out and there is enough space to do so. They have repeatedly heard that the dam benefits downstream countries.

In fact, it is foolish to perceive as these Egyptians have failed to understand the hard fact, they know the dam benefits them and brings no significant threat. So, why do they waste their time and why do they walk on a wrong path? The thing emanates from various sources but the major one seems from wicked desire to control all the waters and indirectly put influence on the upper riparian nations, which is so impossible. Such mindset never work for the upstream water sources, let alone for downstream Egypt.

Apart from that, they have also desperately engaged to making the dam an issue of survival.

The reality is, however, the dam could not and will not affect the flow and volume of the water. Rather, it will allow a regular flow and volume all year round. The reality is, however, generating clean energy is a matter of survival for Ethiopia since 97 per cent of its water resources are cross-boundry, meaning Ethiopia has not yet assured good water storage capacity. That is why, the dams which have been built over the past days and still under construction, including GERD, are too crucial to lift its millions of citizens from poverty increasing the national water storage capacity.

As FDRE Minister of Water, Irrigation and Energy Alemayehu Tegenu in a recent radio panel clearly has put it, cooperation is the only means to use the waters. And people of Egypt need to understand this fact. The construction of GERD is well under way and over 30 per cent complete, as the Minister reiterated on the same occasion.

Provoking Nile riparian countries, Ethiopia in particular, with badly charged terms such as “all options are open” serves no purpose. In addition, these few Egyptian politicians and scholars could not buy public acceptance by purposely misdirecting the people of Egypt. It is time to tell the reality for their people—i.e., the fact that the dam brings benefits for Egypt and Egyptians in many ways. And the internal instability of Egypt could be settled not by amusing the public’s attention to wards GERD, but through finding genuine solution. There is enough space for cooperation and to engage in a win-win base.

 http://www.ethpress.gov.et/herald/index.php/herald/editorial/6145-a-matter-of-survival-for-ethiopia-that-has-low-water-storage-capacity

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Egypt has no alternative, but to  quickly start discussions: Ambassador Dina

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Ethiopian will continue promoting the principle of the equitable and fair utilization of the Nile River, MoFA Spokesperson Ambassador Dina Mufti said.

While briefing journalists on current issues, Ambassador Dina stressed Ethiopia’s firm stand on the fair use of the river among the riparian countries. “The upper riparian states have the right to use the Nile for their development as far as it doesn’t cause any significant harm on the lower riparian countries and that is why Ethiopia is building the Grand Ethiopian Renaissance Dam (GERD),” he said.

Ethiopia will continue building the dam and Egypt’s request to pause the construction of the dam is unacceptable, he added.

The government of Egypt has no alternative but to move quickly and start discussions with all Nile countries about using the waters in the best interest of all, he said. Ambassador Dina added that Ethiopia would continue to play its role towards contributing to the peace and stability of the Horn of African region.

In addition to finding solution for the current crisis in South Sudan, Ethiopia is playing its part for the prevalence of durable peace and security in Somalia through deploying its troops, he said. According to Ambassador Dina, rival factions of the Sudan People’s Liberation Movement (SPLM) are here in Addis Ababa, Ethiopia for further peace talks.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6147-egypt-has-no-alternative-but-to-quickly-start-discussions-ambassador-dina

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An up-and-coming Ethiopia’s international relations

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Over the last two decades, Ethiopia has been highly engaged in keeping the momentum of internal stability along with bolstering overall national development as a pathway to get rid of poverty. Besides, Ethiopia is enriching its international relations in general and has remained committed and more concerned about regional peace and security in particular.

Its pragmatic and scientific international policy has enabled the country to demonstrate its roles in many regional and continental development and security issues. To this effect, Ethiopia has become a very real force for peace initiatives in the East African region, indeed.

The premise on which Ethiopia’s policy is based mainly with neighbouring countries is focusing on developing the culture of dealing with contradictions through discussion and negotiation while reducing its vulnerability to danger and to address security threats appropriately.

In a recent past, Ethiopia’s dedication for the peaceful East Africa region is evidenced by what it is doing and has done in Somalia, Sudan and South Sudan. It does brokering effort to resolve the disputes between Sudan and South Sudan. It has sent troops to the joint UN-AU peacekeeping force in Darfur (UNAMID) to help maintain peace and stability in that troubled region. Ethiopia has also deployed 4,000 troops in Abyei for the UN interim security force for Abyei (UNIFSA). Again, it has cooperated with the Somali government to fight terrorism and extremism. It has been playing a vital role facilitating dialogue and providing support to enable the Jubaland administration and the Federal Government of Somalia to work jointly in building the Federal States of Somalia.

Ethiopia maintains diplomatic links with many Asian, European, American and Latin countries. The increasing continental and international meetings, conferences and forums also witness for the booming international relations of the country.

It should be understood that the success of Ethiopia’s development and democratization has positive contribution not only to Ethiopia but to all neighbours as well; and that a policy that is free of arrogance and greed would contribute to changing the entire region.

Ethiopia is always keen in playing its role to facilitating negotiations mostly with the regional organization, IGAD. Such chances of success in any peace process are much higher when regional organizations and neighbours are constructively engaged.

It is also Ethiopia’s firm conviction that no country in the region can prosper or live in peace while its neighbours are facing difficulties in security, that it is one of the basic reasons why Ethiopia continues to strengthen collective security architecture of the region and beyond.

The Ministry of Foreign Affairs has not long confirmed that Ethiopia keeps on playing a glaring role in ensuring peace and security in neighbouring countries as it is highly concerned with internal stability and development.

Because of Ethiopia’s political and diplomatic efforts, neighbouring Somalia is today enjoying relative peace after 20 years of crisis.

In a move to restoring peace in South Sudan, diplomatic endeavour is under way in which Ethiopia plays a front-line role with IGAD and other countries of the region such as Kenya. It is to be recalled that Ethiopia contributed a lot for the independence of South Sudan few years back.

Moreover, it is serving as a hub for African Centre for Strategic Studies that aims at countering terrorism and extremism in the horn of Africa. This indicates that the country is highly solicitous with the peace of the Horn and eager to see unprecedented economic, social and political development among all nations of East Africa. This, in fact, enables the nations to create a trustworthy trade, investment linkages thereby improving the livelihood of their respective citizens.

In sum, diplomacy plays a significant role in spelling out the priorities of the government. It also defends the government policy choices as per the national interest mainly to bring well-defined progress in various aspects -be it economic or political. Bilateral and multilateral cooperation and agreements with other international organizations also remains amicable.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6130-an-up-and-coming-ethiopia-s-international-relations

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Filed under: Ag Related Tagged: Agriculture, Economic growth, Ethiopia, Grand Ethiopian Renaissance Dam, Investment, Millennium Development Goals, Politics of Ethiopia, Sub-Saharan Africa, tag1, United States

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Ethiopia says flagship Grand Renaissance dam ’30pc complete’

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By ANDUALEM SISAY in Addis Ababa | Thursday, March 13  2014 

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  Zadig Abrha, deputy general director at the Office of National Council for the Coordination of Public Participation

on the Construction of the Grand Renaissance Dam, at a press conference on March 14, 2014

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Israeli Strategy to make Ethiopia a Leading Nation in Exporting Fertilizer

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Djibouti (HAN) March 22, 2014

The Israeli Chemicals Limited (ICL) Africa and Allana Potash signed partnership agreement to mine potash fertilizer and supply to farmers in Ethiopia and Africa as well as other countries. The accord would help Ethiopia to introduce new fertilizer to farmers and considerably increase productivity, the Ministry of Agriculture said.

Israel Chemical Limited (ICL) of Africa has extended half-a-million USD support to Ethiopia’s fertilizer company. The grant-aid agreement was signed on Monday by State Agriculture Minister Professor Tekalegn Mamo and Mr. Yoran Chon, ICL General Manager.

During the occasion, Chon said Ethiopia can be a leading nation in Africa in exporting fertilizer when the factory starts production by utilizing its potash resource.

The General Manager who appreciated the all round effort Ethiopia is making in agriculture said he supports the effort the country has been making to produce fertilizer.

Professor Takelagn said on his part Ethiopia is for the first time making preparations to produce fertilizer dubed Mitin and supply it to farmers.

He also thanked the company for not only the financial but technical support too.

Last Month, Israel Chemicals said, it would partner with Canada’s Allana Potash to develop a potash mine in Ethiopia in a deal which includes ICL taking a stake in Allana.

The feasibility study for the Danakhil project in the Dallol region of northeast Ethiopia indicates it will produce about one million tons of potash annually within five years.

Sources: Tasfaye Abera – @HAN & Geeska Afrika Online Market Reporter

http://geeskaafrika.com/?p=1916

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Dr Tedros receives Chairman of Allana Potash 

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Foreign Minister Dr Tedros Adhanom held talks with Senior VP – Business Development of Allana Potash, Mr. Nejib Abba Biya and representative of the Israel Chemical Limited on Friday (March 21). Mr. Nejib announced that his company is establishing a joint venture with Israel Chemical Limited (ICL).

The representative of the Israel Chemical Limited pointed that his company already invested 25 million USD and is conducting a feasibility study in Afar region for the exploration of potash, noting the total investment reaching 650 million USD. He explained the detailed plan of the company concerning its future activities, emphasized his company’s readiness to erect a plant in the region with the technology needed and pledge to satisfy local demands.

Dr Tedros appreciated the willingness of the joint venture to invest in Ethiopia and added that the government of Ethiopia is committed to support and encourage all the endeavors by the respective companies. He also used this opportunity to call upon Israeli companies to invest in Ethiopia in particular in priority areas.

Israel Chemicals Ltd.  is a multi-national manufacturing concern that develops, produces and markets fertilizers, metals and other special-purpose chemical products. ICL serves primarily three markets: agriculture, food and engineered materials. ICL produces approximately a third of the world’s bromine, and is the world’s sixth-largest potash producer, as well as the leading provider of pure phosphoric acid. It is a major manufacturer of specialty fertilizers and specialty phosphates, flame retardants and water treatment solutions.

http://www.mfa.gov.et/news/more.php?newsid=3138

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Egyptian company taps largest gold reserve in Ethiopia

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An Egyptian company, Ascom Precious Metals Mining, has discovered what is said to be the largest gold ore reserve ever discovery in the history of gold exploration in Ethiopia. 

http://www.thereporterethiopia.com/index.php/news-headlines/item/1776-egyptian-company-taps-largest-gold-reserve-in-ethiopia

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Mining Transparency accepts Ethiopian application for candidacy

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- Human Rights watch denounces the decision  - World Bank applauds Ethiopia’s move

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The international mining transparency body, Extractive Industries Transparency Initiative (EITI), on Tuesday accepted Ethiopia’s application for candidacy.

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http://www.thereporterethiopia.com/index.php/news-headlines/item/1773-mining-transparency-accepts-ethiopian-application-for-candidacy

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Ethiopia, UAE to sign investment protection pact

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The governments of Ethiopia and the United Arab Emirates (UAE) are negotiating to sign an investment promotion and protection pact. 

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http://www.thereporterethiopia.com/index.php/news-headlines/item/1769-ethiopia-uae-to-sign-investment-protection-pact

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Eight months of textile export earns over USD 75 mln

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Turkish giant to establish a factory with an outlay of USD 175 mln 

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The Ethiopian Textile Industry Development Institute disclosed Thursday that it has enjoyed an encouraging response from the export performance of the textile sector after amassing USD 75.28 million in the first eight months of the fiscal year from the international market.

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http://www.thereporterethiopia.com/index.php/news-headlines/item/1772-eight-months-of-textile-export-earns-over-usd-75-mln

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“PINE” MARKETS HERALDED AS BUSINESS OPPORTUNITY OF THE DECADE

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Strong economic growth in Asian and African markets presents major opportunities for global business

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“PINE” Markets Heralded As Business Opportunity Of The Decade

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Following the economic crisis that crippled the world’s economic powerhouses and slowed growth in the BRICs (Brazil, Russia, India and China), attention has turned to new markets as global businesses seek to find the next major business opportunities of the decade.

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Analysts are increasingly agreeing on the importance of the PINE countries as new economic powers. The Philippines, Indonesia, Nigeria and Ethiopia are demonstrating impressively strong growth in what remain difficult economic circumstances globally.

The Philippines is the fastest-growing economy of the emerging PINE markets, growing its GDP by 7.2% last year. Neighboring Indonesia has been similarly excelling, exhibiting growth of 5.7% in the last year, which is expected to continue to grow at over 6% this year. These levels of GDP growth are stronger than that expected for China in 2014.

Growth in the South Asian emerging markets is being fuelled by attractive exports, and an increasing ease of doing business. The continued expansion of these markets is attracting the attention of major international companies, enthused by the growing size of the middle classes and the generally positive business conditions.

The PINE countries are within the business portfolio of Lamudi, a major global online real estate marketplace. Paul Philipp Hermann, Co-Founder at Lamudi, commented on the implications of this impressive growth for the company’s operations in Asia: “Lamudi is only the latest of a growing roster of companies with an international reputation such as Shell, Allianz, HSBC, Dell and more, who are targeting emerging markets such as the Philippines and Indonesia for investment.

In our experience, both Indonesia and the Philippines are not only great places but exciting places to do business. We are looking forward to a very bright future in these locations and are convinced that the PINE markets offer the major business opportunity of the next decade”.

Whether people are looking for properties for rent or for sale, the internet platform Lamudi enables customers to easily find or sell their house, apartment, commercial property or land online. At the same time, property providers and agents get a trusted online presence through a personalized webpage.

Key characteristics of Lamudi are the diverse property offers, the intuitive website set-up and the high security standards which filter-out fraudulent property offers. The business platform operates under a high level of transparency through professional photos, updated listings, detailed descriptions, reports and rankings for 100% of its properties in each market. The Lamudi platform helps brokers to manage their inventory fast, easy and stress-free.

http://www.globalbankingandfinance.com/pine-markets-heralded-as-business-opportunity-of-the-decade/

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Ethiopia: Chinese are Building a Huge Industrial Village

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Djibouti (HAN) March 22, 2014 

The Chinese shoe factory Huajian Group says it would build a huge industrial zone in Addis Ababa. Factory president Xiang Hurong who held talks with Foreign Affairs Minister Dr. Tedros Adhanom here in Addis said the village industry to be built at Lafto Sub-city is far wider than the Eastern Industry Zone at Dukem. He said construction is expected to begin in two months.

The company which built a factory in Dukem town had created 3,500 permanent and temporary jobs, the president added. The new industrial village would create from 30 to 50,000 jobs to citizens, according to Xiang Hurong. It will mainly focus on shoe production.

In a related development, Dr. Tedros Adhanom held talks with his Cuban counterpart Mr. Bruno Rodriguez. The officials conferred on ways to strengthen Ethio-Cuba relations.

They have confirmed that they would jointly strive to boost relations in the heath sector. In his facebook: The Foreign Affairs Minister Dr. Tedros said, So glad to receive from President of Huajian the final design of the construction of a light manufacturing special economic zone for shoe “Shoe City”. Preparations are well underway to start construction in few months. The total investment will be 2.2 Bln USD. Please see the attached beautiful design of the “Shoe City” which looks like a shoe. #Ethiopia poised to become a hub for shoe manufacturing. The investment is expected to create 30 to 50 thousand jobs.

Sources: Tasfaye Abera – @HAN & Geeska Afrika Online Market Reporter

http://geeskaafrika.com/?p=1912

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South African based firm bids for 250m airport expansion project

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- Plans to “immaculate” the capital

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The South Africa-based Ngoyama Okpanum and Associates group is bidding to have a stake in the Bole International Airport expansion project that will require some USD 250 million, The Reporter learnt.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1752-south-african-based-firm-bids-for-250m-airport-expansion-project

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Transnet to rail in for railway operations

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South Africa’s biggest transport system operator, Transnet SOC Limited, is dealing with the government of Ethiopia to have a business stake at Ethiopia’s upcoming railway system, The Reporter  has learnt. 

http://www.thereporterethiopia.com/index.php/news-headlines/item/1775-transnet-to-rail-in-for-railway-operations

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World Bank provides 6.2 bln. birr loan

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State Minister Ahmed Shide (right) and World Bank Country Director for Ethiopia Guang Zhe Chen exchanging loan agreement document

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The Ministry of Finance and Economic Development (MoFED) and the World Bank yesterday signed an agreement providing for 6.2 billion birr loan to finance the 258-kms Nekemte-Bure road upgrading project and assist in Ethiopian Roads Authority (ERA) institutional capacity building. The agreement was signed by State Minister Ahmed Shide and World Bank Country Director for Ethiopia Guang Zhe Chen.

Ahmed said the project is aimed at improving the 258-kms Nekemte-Bure road which provides a strategic link between Amhara and Oromia states and forming part of the state road link to Sudan.

He also said the project helps to enhance the institutional development of ERA, reduce travel time and cost along the selected inter-regional corridors.

According to Ahmed, the project will also help to support the sustainability of the federal road network.

“The Bank is one of the first development partners to work with the government/ ERA in the drafting of the Road Sector Development Programme (RSDP) which was launched in 1997,” said the Country Director. Since the launching of the programme, the Bank has provided 1.70 billion USD for upgrading and the expansion of 3,725-kms of road network which constitutes about six per cent of the country’s classified road network, he added.

“I am happy to note that 79 per cent of these road projects are complete and are facilitating the overall economic development of the country,” Guang Zhe Chen said.

The project will help to enhance trade reduce travel time, create new markets and provide improved access to education, medical services and food security to the country’s poor thereby contributing to the GTP, he said.

Indicating the fact that helping to upgrade Ethiopia’s road network is not new for World Bank, the Country Director said that this project is different in its special approach to asset management.

In the approach, contractors selected to undertake the project and will be responsible for its maintenance for a period of six years after its completion.

“We believe that this type of contract will lead to an improvement in quality and greater control of the final cost of the work, both critical issues for the government”, he added.

The project is expected to be completed within four years.

http://www.ethpress.gov.et/herald/index.php/herald/news/6347-wb-provides-6-2-bln-birr-loan

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CNR Dalian locomotives exported to Ethiopia

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• 17 Mar 2014 – Addis Abeba tram supplier selected
• 28 Jun 2012 – Ethiopian Railways Corp awards northern construction contracts
• 16 Feb 2012 – Contract signed for final section of new Djibouti – Ethiopia railway
• 10 Feb 2012 – Contract awarded for Ethiopian electric railway
• 11 Sep 2009 – Grand designs from Ethiopian Railway Corp

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Singapore allures Ethiopian businesses with cheap credit

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Top left Cody Lee, bottom left G. Jayakrishnan, Sisay Gemechu state minister of Industry and

Gashaw Debebe, secretary general of ECCSA have attended Ethio-Singapore business forum

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On a formal business trip to Sudan and Ethiopia, the Singaporean chamber of commerce,formally known as Singapore Business Federation (SBF,) advised their Ethiopian counterparts to invest in Asia’s financial capital-Singapore-if they want to get their hands on cheap credit available to companies with branch offices there.
Cody Lee, SBF director for the Middle East and Africa, told members of the local business community that credit, which he learned to be the biggest problem for Ethiopian businesses, could be accessible far more easily in his home country. Further more, he also advertised cheap credit at a rate of 4 percent interest, which can be secured by simply establishing a branch office in Singapore and operating a credible business.  He also indicated that members of the business community have the opportunity to expatriate this credit freely to their country of origin.
Compared to Ethiopia’s bank rates, Singapore offers businesses at an extremely lesser interest rate, and from this, Ethiopian businesses can benefit highly in light of the recent shortage of credit and business loans, Lee argued. Many local businesses in Ethiopia are in desperate need of credit services and many of them blame financial institutions for failing. Lee seems more aware of the situation in Ethiopia and used the gap in the financial sector to pitch Singapore as a favorable business location.
Heading some dozens of Singaporean businesses, SBF held a forum and a business-to-business session on Thursday at Ghion Hotel. Such a gathering was held last year as well. This time around, however, Singaporean businesses were more mindful of what they could tap into in Ethiopia, Lee said. As representative of the businesses, Lee is keen to know and talk about the challenges his countrymen based in Ethiopia are facing. Inconsistencies between the federal and regional governments affected Singaporean businesses engaged in agricultural activities. Frequent changes of laws and regulations of the country again make it hard to invest, according to many expatriates. Yet, such hurdles are not unique to Ethiopia, Lee reiterates.
The bilateral trade between Singapore and Ethiopia remains at its lowest. Gashaw Debebe, secretary general of the Ethiopian Chamber of Commerce and Sectoral Association (ACCSA,) outlined how Ethiopia’s export to Singapore has been fluctuating over the past seven years between USD two million and 11 million. The import trade has been gaining momentum since 2011, registering USD 19.5 million.  G. Jayakrishanan, director of International Enterprise for the Middle East and Africa, agrees that bilateral trade between the two states is merely USD 30 million, “weak to talk about but possible to flourish,” he said.  International Enterprise is a governmental agency responsible for running the external economy of Singapore across the globe. Lee argues that business relations dwarfed following the coming of Dubai, which took most African businesses for granted, and the proximity has provided cost effective opportunities for the later.  However, recently, Ethiopian Airlines launched trial flights to Singapore, which is one of the reasons some Singaporean manufacturers want to engage the government in negotiations to venture in agro processing. But Lee preferred not to name the companies until the deals are sealed.
According to Lee, SBF gave more emphasis to Sudan than Ethiopia as the latter has closer ties with the country; businesses in Singapore seem to be exploring new destinations. Sudan is one of the new markets that Singaporeans have never ventured into. But, it is also stimulating for countries like Singapore with less resource endowments such as energy to have a closer look at what can they get out of resource rich countries in Africa. Jayakrishnan said that his country, though blessed with untapped deep-sea oil Riggs, is yet to graduate from dependencies on imports of oil and gas. Until recently, the tiny island nation drank water imported from Malaysia via pipes.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1771-singapore-allures-ethiopian-businesses-with-cheap-credit

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OIA inaugurates modern eye care centre

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The opening of the centre will strengthen the bilateral ties between the two countries

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The Indian- based Overseas Infrastructure Alliance (OIA), a development partner of Ethiopia in electric power, sugar production and transport sectors, yesterday inaugurated a modern eye care centre at Zewditu Hospital.

President Dr. Mulatu Teshome, Health Minister Dr. Kesete-Birhan Admasu, Indian Ambassador Sanjay Verma and other invited guests attended the inauguration ceremony.

The centre plans to increase its capacity, in phases, to treat 100,000 patients and perform 10,000 sight restoring surgeries in about three years.

Speaking at the inauguration ceremony, Centre Lead Ophthalmologist Dr. Rashmin Gandhi said that besides its plan to treat 100,000 patients within three years, the centre is also ready to introduce Mobile Eye Care Clinics in the remote areas.

Dr. Kesete-Birhan said that the inauguration of the centre will move the health sector a step forward in addressing the availability of tertiary eye care in Ethiopia. As to the Minister, in addition to providing internationally standardized eye care services the centre is believed to produce professional human power.

“To produce many eye specialists, we have launched the programme in Gondar and Jimma Universities which was previously limited only at Addis Ababa University,” the Minister said.

President Dr. Mulatu also said that the opening of the centre will strengthen the bilateral ties between the two countries. “The launching of OIA India Eye Care Centre, which was built under a successful public-private-partnership between our two countries, is a true affirmation and the consolidation of mutually beneficial relationship that we have been successfully promoting for the past several years,” the President said.

With a 15-bed dedicated state of the art and ultra-modern ophthalmology facility based in the campus of Zewditu Memorial Hospital in Addis Ababa, OIA Eye Care Centre will offer relief to patients suffering from conditions such as cataract, glaucoma, diabetes related eye problems and plastic surgery around the eyes. The facility also has an in-house training centre for surgeons, paramedic and administrative staff to build the local human resources and has been built in technical collaboration with an Indian centre of excellence which provides medical advisory and consultancy services.

http://www.ethpress.gov.et/herald/index.php/herald/news/6373-oia-inaugurates-modern-eye-care-centre

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Ethiopian President desires U.S. Companies to invest Ethiopia

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Djibouti (HAN) March 22, 2014

The President of federal Ethiopia, Dr.Mulatu Teshome said it is Ethiopia’s desire that US companies invest in Ethiopia in various areas.

While conferring with a delegation of Corporate Council on Africa (CCA), the President said Ethiopia is interested on US companies to engage especially in manufacturing, power generation and infrastructure development.

The President briefed the delegation about investment opportunities in the country. CCA President Stephen Hayes on his part expressed US companies’ interest to invest in Ethiopia in manufacturing, power generation and infrastructure development as well as information technology. He said the peace and stability, human power and the country’s rapidly growing economy is attracting attention of many companies.

CCA is a non-profit, membership-based organization established in 1993 to promote business and investment between the United States and the nations of Africa.

CCA has more than 160 member companies, which represent nearly 85 percent of total U.S. private sector investments in Africa. Its members range from America’s smallest to largest corporations The former Ethiopian Ambassador to Turkey, Dr. Mulatu Teshome Wirtu (Oromo nation) was last October, 2013 sworn in as the new President of Ethiopia. Ambassador Mulatu served in various ministerial positions before he was appointed as an Ambassador under the current administration. The President of Ethiopia is also the executive member of the Oromo Peoples’ Democratic Organization (OPDO).

Sources: Tasfaye Abera – @HAN & Geeska Afrika Online Market Reporter

http://geeskaafrika.com/?p=1919

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Meet deliberates on urban landholding registration proclamation

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 Involving the public in landholding adjudication sections and villages would further

enhance public decision making and facilitate land administration’s implementing role 

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The Ministry of Urban Development and Construction said the proclamation providing for registration of urban landholding (No.818/2014) will ensure the rights of Ethiopians to immovable property they build on the land as provided under Article 40 of the Constitution and their right to use land in urban areas.

Opening a day-long consultative meeting with stakeholders on Urban Land Registration Legal Framework held at Desalegn Hotel yesterday Minister Mekuria Haile said that Urban Landholding Registration would create nationwide vibrant landholding system and ensure citizens’ wealth creation capacity. The registration also attracts developmental investors to urban areas and provide reliable information for the country’s economy which will be utilized for the required services, especially to give citizens, possession right security and accelerate, social and environmental development of citizens, the Minister added.

Mekuria further said that the legal framework will further facilitate registration of rights, restrictions and responsibilities relating to land and immovable property to enhance the contribution of land and immovable property to the development of free market economy system.

The Minister added that as it is declared,involving the public in landholding adjudication sections and villages would further enhance public decision making and facilitate land administration’s implementing role.

Urban and Land Related Property Registry and Information Agency Acting Director General Solomon Kebede on his part said that implementing legal cadastre principles such as registration of possession, getting the consent of the possessor during transactions, making registration of possession would have a paramount importance. He added that legal cadastre will enhance the social and economical development of the country.

The proclamation providing for registration of urban landholding (No.818/2014) will take effect following endorsement by the Council of Ministers.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6375-meet-deliberates-on-urban-landholding-registration-proclamation

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Working to ensure food security

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Ethiopian scientist Segenet Kelemu is working to improve the resistance and productivity of forage grasses, which are used to feed the animals (and so to produce milk and meat).

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http://www.thereporterethiopia.com/index.php/living-and-the-arts/society/item/1758-working-to-ensure-food-security

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Water sanitation, hygiene project launched

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A water sanitation and hygiene (WaSH) project would be carried out in 20 towns of Oromia,Amhara, Southern Nations and Nationalities and Peoples, and Tigray states with 33 million birr donated by WaterAid.

The capacity building project aims at increasing the efficiency, effectiveness and relevance of WaSH service provision in the twenty towns through strengthening utilities and municipalities as well as improving coordination, according to a press release issued by WaterAid today.

A survey commissioned by WaterAid Ethiopia showed that the water supply coverage of the towns ranged from 31 to 70 percent. Almost a third of the population has partial or no access to piped water, it was pointed out.

In addition, most of the towns do not conduct regular water quality assessment and the main cause for this is lack of infrastructure investment and capacity to plan and manage the available resources, the release added

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6364-water-sanitation-hygiene-project-launched

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Bureau targets to help 1.5 million mothers deliver in health institutions

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The Southern Nations, Nationalities and Peoples (SNNP) Health Bureau plans to help 1.5 million mothers deliver in health institutions assisted by trained professionals this budget year.

This was disclosed at the opening of a performance evaluation conference of the State’s health sector in the first half of this budget year.

State Deputy Chief and Bureau Head Kifle Gebre-Mariam said that over 150,000 mothers gave birth in health institutions in the reported period. This is more than double compared to that of same period last year.

Kifle said the target is to increase the performance tenfold and help 1.5 million mothers get access to the service in the remaining period.

Representatives of all zones and special woredas, including Hawassa, attended the conference held in Soddo town.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6363-bureau-targets-to-help-1-5-mln-mothers-deliver-in-health-institutions

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Filed under: Ag Related Tagged: Addis Ababa, Agriculture, Allana Potash, Business, CCA, China, Djibouti, East Africa, Economic growth, Ethiopia, Fertilizer, India, Investment, Millennium Development Goals, Potash, Sub-Saharan Africa, tag1, United States, World Bank

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Investment Agency to Report Direct to the Prime Minister

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-  New bill see the evolution of powerful investment board with composition not yet defined.

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Fitsum Arega, director general of EIA.

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The administration of Prime Minister Hailemariam Desalegn is soon to introduce a sweeping restructuring at the Ethiopian Investment Agency (EIA), hoping to transform it from a mere permit and licensing entity to a nucleus where the attraction of foreign direct investment (FDI) is directed, source disclosed to Fortune.

A bill has been tabled to Parliament last week, introducing amendments to the existing proclamation, which includes provisions that open industrial development zones to private investments. This has been an area that was exclusively given to the state or carried out in a joint venture with it.

The bill sees changes including the redrawing of the Agency’s governance structure from reporting to the Minister of Industry direct to the Prime Minister, these sources confirmed.

The flow of FDI to Ethiopia remains one of the lowest in the world, even when compared to Ghana and Kenya, as well as India’s six billion dollars and China, which had 10 times larger than India’s. And its share to the GDP is seen on a decline lately. At two percent, what Ethiopia gets from the inflow of foreign capital to its GDP was far less than China’s 3.9pc and Vietnam’s 5.7pc.

“It’s clear that there is an opportunity to improve the promotion of incoming foreign investment,” says a study carried out by the World Bank in 2012, surveying what impedes investment to Ethiopia.

One significant drawbacks is the federal agency entrusted with this task “has limited influence and autonomy in the investment promotion sphere, and there is limited coordination with regions,” according to a new study conducted by Monitor Deloitte, a subsidiary of Deloitte, one of the four largest global audit and consulting firms. Jointly commissioned by EIA and the Agricultural Transformation Agency (ATA), the firm has completed a 45-page study and presented it to the Prime Minister’s Office few weeks ago.

Many of the changes soon to come to the Agency led by Fitsum Arega, a young technocrat who climbed the stairs of power, is advised by recommendations from this study, according to those involved in the process. The study is seen as an icebreaker to roll the changes at the Agency, although there was a desire to do that earlier, according to an aide in the Prime Minister’s Office.

With its designation changed from “authority” under the Proclamation enacted in 1996 to “agency” under the yet to be amended law, and to “Commission” under the proposed amendment, the governance structure of the investment agency is one of the changes under the bill.

In a return to the trend under the investment law that was repealed and replaced by the recent one eight years ago, the bill includes three organs that comprises the investment administration with the addition of investment board to the list under the proclamation to be amended.

Nonetheless, details on the board composition, its powers and duties as well as meeting procedures are not included. These were present in the repealed proclamation years back. It was the Prime Minister who was chairman of the board, a practice which will soon see a comeback.

“EIA is unable to influence or take key decisions in the investment process, and is perceived to lack autonomy,” finds the study by Monitor Deloitte.

The Agency is not currently, “visible or influential enough, and requires more authority and power,” according to the study. It is a federal agency, with an old and shabby headquarters on Africa Avenue (Bole Road), undermined by uncoordinated decentralisation of the duty to chase foreign capital for the realisation of the nation’s potentials, the study finds. Besieged by poor logistics that limited its staff provide in-house services, the investment process at the Agency is not “sufficiently transparent and efficient.” Many of its 250 staffs are “lacking skill and expertise,” while they are paid an amount Monitor Deloitte finds “too low.”

“Employees have limited knowledge on the government’s policies, economic and sector priorities and the overall strategy of the Agency,” says the confidential study.

Neither has the Agency equipped with information technology infrastructure, which the study sees will take it more than a year to acquire.

The study strongly recommends that the federal investment agency should be made, “more visible in the national architecture, and requires backing from the highest government office in Ethiopia to execute its mandates in other states.”

The Administration appears to have bought these recommendations. In a separate brief presented to MPs, alongside the bill, authors of the restructuring suggest that “monitoring and supporting to directly administer the development of the industrial zones through a board that shall be led by the Prime Minister will speed up” and attract industrial investments within a short period of time and increase the manufacturing of export goods.

The board will have the authority to write directives outlining the duties and rights of investors in these industrial zones. The bill has introduced a significant change from the existing proclamation, granting the board powers – such as granting of new or additional incentives other than what is provided under any previously existing regulation – which are currently assumed by the Council of Ministers, the highest executive organ in the federal government, also chaired by the Prime Minister.

Under the bill, the investment board can authorise the opening up of investment areas for foreign nationals, otherwise exclusively reserved for domestic investors. Members of the private sector and those in the academia have been calling for a progressive investment regime that allows opening of restricted areas and additions of incentives.

This is a move from a relatively stringent and strict investment regime to a discretionary investment regime, for experts in the area. A lecturer at the Addis Abeba University (AAU) in public finance and investment sees the existing investment regulation as restrictive and highly technical.

“It micro-manages the sectors,” he told Fortune. “Foreign investors have had to tip toe through these restrictions.”

However, if the proposed amendment is to be ratified and become part of the law, it will enable the regime to be flexible enough to treat individual investment issues separately in accordance with the nation’s policy priorities. Such an open ended power scheme should not be left without caution, the lecturer reckoned.

“Anything discretionary can also be arbitrary,” he told Fortune. “As good as it may get, the decision making process should be anchored around the fundamental policy objectives of the country.”

He sees the evolution of a board overloaded and become bogged down in entertaining large number of investors’ claims and appeals.

However, the bill tabled to Parliament tries to emulate the experiences of Rwanda, where the president has so much say, as in Malaysia and Nicaragua.

http://addisfortune.net/articles/invest-agency-to-report-direct-to-the-prime-minister/

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KKR Makes Maiden African Investment

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Kohlberg Kravis Roberts has moved into, for it, uncharted territory with its first-ever investment in Africa.

The private-equity giant has taken a stake in Ethiopia’s Afriflora, which grows roses for sale in the European market. Nor is KKR alone: P.E. investment in sub-Saharan Africa jumped 43% last year, to US$1.6 billion.

KKR will invest about US$200 million from its European fund in Afriflora. The money will be used to increase the company’s size by two-thirds and to add some 5,000 employees. The farm’s founders, a Dutch family named Barnhoon, will continue to manage the operation and will remain investors in the company.

“We see Africa as a long-term attractive investment destination,” KKR’s head for the continent, Kayode Akinola, said. “The potential is astounding. But the work to get there is going to be considerable.”

KKR added Kayode from Helios Investment Partners last year. He will join Afriflora’s board, along with another KKR executive, Matteo Bozzo.

https://www.finalternatives.com/node/27234

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Minister of Agriculture visits Japan

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Ethiopian Minister of Agriculture, Tefera Derbew, visited Japan from 27 to 31 May upon the invitation of the Government of Japan.

According to a statement the Embassy of Japan sent to WIC today Tefera was accompanied by Fitsum Arega, Director General of the Ethiopian Investment Agency (EIA).

During his visit, Tefera met with several, Ministers and high ranking Japanese government officials, such as the Minister and the Senior Vice Minister of Agriculture, Forestry, and Fisheries, the Vice Minister of the Ministry of Foreign Affairs, the President of the Japan International Cooperation Agency (JICA), and the Executive Vice President of the Japan External Trade Organization (JETRO).

The main event during his visit was the Agro-Business Seminar and B2B Session on 29 May, which was co-organized by JETRO and the Embassy of Ethiopia in Japan.

More than 200 participants from related Ministries, private companies, business people, and Development Partners attended the Seminar. Tefera made a keynote speech at the Seminar, and also chaired one of B2B sessions.

The agenda included food value chains in Ethiopia, Trade and Investment potential in the Agriculture and Agro-Processing Sectors in Ethiopia, the status of private sector investment and future trends in Ethiopia, and B2B meetings.

Tefera also visited the suburbs of Tokyo to see Japanese style suburban farming, and made several visits to various agricultural laboratories, such as the National Agriculture and Food Research (NARO) center and the Japan International Research Center for Agricultural Sciences (JIRCAS).

Tefera, expressing his appreciation for the invitation from the Government of Japan, concluded that this visit was meaningful and successful for both countries, and that each program during this visit would further strengthen the bilateral economic relations between Ethiopia and Japan, through the enhancement of Agricultural relations. He also expressed his gratitude to the Japanese companies that showed interest in doing business in Ethiopia.

http://www.waltainfo.com/index.php/explore/13675-minister-of-agriculture-visits-japan

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Ethiopian, Japanese Companies Agree for Joint Venture

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Participants of the recent Ethio-Japan Agro Business Seminar held in Tokyo agreed for joint ventures in food and agro business areas, the Ministry of Foreign Affairs said.

Over 115 Japanese and Ethiopian companies engaged in agro business, flower and sesame production took part in the seminar, a press release the Ministry sent to ENA said.

Agriculture Minister Tefera Derbew said on the occasion that trade relation between Ethiopia and Japan is not as such strong.

But Ethiopia’s export of agricultural products to that country is showing progress over the past few years.

Japan is among the major development partners of Ethiopia, said Ethiopian Ambassador to Japan, Markos Tekle. The development endeavors supported by JICA demonstrated this fact.

The seminar helps to strength relation between companies of the two countries in food and agro business areas, he said.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=5106&Itemid=88

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US-backed scheme lines up investors for African energy projects

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Private Sector Involvement on the Spot Light During Ministerial Meeting

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The US-Africa Ministerial Meeting focused on issues of private sector involvement, new approach for rural electrification, energy efficiency and how to continue working with Obama Power Initiative.

During a joint press conference Alemayehu Tegenu, Water, Irrigation and Energy Minister, said the Ethiopian government has highly benefited from hosting the meeting and further commented it was successful.

Alemayehu also spoke of the issues that were discussed during the meeting. He said discussions were made on the issues of private sectors’ participation, new approach for rural electrification and energy efficiency.

According to the Minister, participants of the meeting assessed and explored with US Secretary of Energy, Ernest Moniz, on how to continue working with Obama Power Initiative. He added, “Totally, I can say the objective of our conference is fully completed in a very successful way”.

On his part Moniz said, “We were very pleased that the collaboration was excellent. The meeting was extraordinarily successful. The Prime Minister’s presentation emphasizes the risks in Africa from climate change were well spoken”.

The meeting stressed on the tremendous resources in Africa- renewable resources, natural gas being developed strongly and oil as well.

Moniz further noted the issue of climate was well discussed for Africa’s clean energy resource should be developed.

http://www.2merkato.com/news/alerts/3013-ethiopia-private-sector-involvement-on-the-spot-light-during-ministerial-meeting

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U.S. Works With Ethiopia on Renewable Energy

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United States of America has disclosed that it wants to work on renewable energy production in cooperation with Ethiopia.

The country’s Energy Secretary, Ernest Moniz talking to Premier Hailemariam Desalegn in Addis Ababa, at AU Headquarters said that Ethiopia will be exemplary to Africa allowing the private sector to participate in renewable energy production.

He also expressed that Ethiopia has performed successfully on development projects carried out in cooperation with the United States.

Moniz said United States will continue working in providing finance which is the impediment for the private sector’s participation in renewable energy production.

Prime Minister Hailemariam Desalegn expressed that Ethiopia still needs the support of United States on rural electrification, capacity building and integrated infrastructure development.

Ethiopia has the capacity to generate 37 thousand megawatts of energy from water, wind, solar and geothermal sources by 2037.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=5107&Itemid=88

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Import Solution as Malt Factory Faces Barley Shortage

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-  The rapid growth of Ethiopia’s beer industry has led to the increased demand for malt

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The newly expanded Assela malt factory, which is having a hard time getting malt barley from local sources, is turning its eyes towards the international market.

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The Assela Malt Factory’s investment of 300 million Br, intended to halt the import of malt, has ironically forced its management to import 260,000qls of barely at an estimated cost of 272.5 million Br, Fortune learnt.

Located on the outskirts of Assela town in the Arsi Zone, Tiya Woreda of the Oromia Region, the factory assumed that it would get its inputs from the surrounding areas, famed for their barley production.

However, the contemplated amount of barely supply in the expansion project is not flowing all year round. This has presented the Company with the risk of running out of stock in two months time.

“The domestic supply has basically stopped, yet the factory needs 40,000qls of malt barley every month to continue production,” said Amare Wakjira, managing director of the Assela Malt Factory. “We need to have a secured channel of supply; otherwise the situation is not sustainable.”

The factory normally gets more than 90pc of its domestic barley inputs through traders who collect the crop from smallholder farmers in the Arsi zone of Oromia Regional State and the Sidama zone in the Southern Regional State. Nonetheless, the factory tries to encourage farmers’ cooperatives and unions to supply it directly, according to its strategic plan.

But the domestic supply has not proven to be reliable, especially in recent years. Consequently, the factory has imported barley in the past, most recently last year.

Even though the extraction amount of imported barley is better, the locally produced barley also has its own merits in terms of better taste, experts in the industry agree.

The Company currently buys a quintal of local malt barley at a cost of 900 Br to 1,050 Br, depending on the quality of the product. Whereas, the management plans to import barley from abroad at around 1,048 Br a quintal, including transportation costs up to the factory gate, Amare said.

Officials from the Agricultural Bureau of Oromia Region have various reasons for the shortage of malt barley, according to him.

“They believe that there is a hoarded harvest by the farmers and we are looking into this possibility with them,” the manger told Fortune.

If the supposedly hoarded product does not materialise, the management has decided to order the import of around 260,000qls of barley, which will see it through until the next harvest season in January. But this will go ahead after the approval of the board of directors of the Company, which is expected to happen within a month.

The Malt Factory needs more than 600,000qls of raw malt barley to produce 360,000qls of malt in a year.

“If we didn’t import the barley and produce malt, the beer factories would import the malt directly, with which they are covering more than 60pc of their demand already,” the manager of the factory, which employs about 260 workers, noted.

According to data from the Ethiopian Revenue & Customs Authority (ERCA), 5,425tn of malt was imported in 2003 at a cost of 2.8 million dollars. This number had grown more than 15 fold by last year, forcing the country to spend 47.3 million dollars on the import of malt.

Established 30 years ago, the factory has been the sole supplier of malt to the local beer industry, the production capacity of which has reached about four million hectolitres. This, in turn, has raised the demand for malt by the industry to 99,540tns, in 2011/12.

This was before the coming of the Gondar Malt Factory of the Tiret Endowment Investment Organizstions (TEIO). Established with an investment of 670 million Br, in Gondar, in the Amhara Regional State, the factory has a production capacity of 16,200tns of malt a year. Close to three quarters of its produce is for its  sister company, Dashen Brewery.

There are five companies, namely – BGI Ethiopia, Harer Brewery Share Company, Bedele Brewery Share Company, Meta Brewery Factory and Beer Garden – that buy malt from the factory.

Assela Malt Factory sold close to 220 quintals of malt worth 345 million Birr to these five companies in 2011/12. BGI Ethiopia, producer of Saint George beer, was the main buyer, taking 56pc of the total sales in 2011/12.

Barley is the fifth most important cereal crop in the country after maize, wheat, teff and sorghum, and it is produced on about one million hectares of land. Of the total barley production of 1.7 million tonnes in 2010/11, Arsi and Bale contributed close to 20pc.

Yet, this has not resulted in a sustainable supply of barley to the malt factory in the locality. Nega Wubeneh, senior director of Value Chain Programs at the Agricultural Transformation Agency (ATA), criticises the uncoordinated value chain in crop production for this.

There are also farming differences between wheat and barley on the level fields of the Arsi and Bale lands, according to Nega.

Since the production of wheat is more economically reasonable, with higher yields in amount and price, farmers prefer to plant wheat. Therefore, high yielding malt barley seeds must be distributed and buyers should give a better price for the farmers with future market if possible, to change the trend.

There are at least two projects that have been initiated by two international brands operating in the country to help solve the malt barley shortages.

Deageo – owner of the Meta breweries and Heineken breweries, which acquired the Harar and Bedele beer factories – have started production improvement programs of malt barley on small holder farms in tthe Sebeta and Arsi areas of the Oromia Regional State. This has been done in collaboration with the Ministry of Agriculture and the ATA over the last two years, even though the results are not enough to satisfy the factory’s demand.

http://addisfortune.net/articles/import-solution-as-malt-factory-faces-barley-shortage/

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HPR Ratifies Loan Agreements

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The House of Peoples Representatives (HPR) ratified on Thursday (June 5) three draft bills.

The HPR , in its 36th regular meeting, endorsed the 50-million-Euro loan agreement between Ethiopia and France. The loan would be used for the implementing the project for installation of high electric power transmission lines.

The agreement, besides enhancing the social and economic development of the country by significantly increasing electric power  qualitatively and quantitatively, will hugely contribute toward achieving the power expansion and distribution goal of the Growth and Transformation Plan.

Furthermore, it would remarkably boost power supply to industrial areas and enable villages without power supply to access electricity.

The House also ratified over 20-million-Euro loan agreement for the execution of the dry waste disposal project of Addis Ababa city.

The agreement signed between Ethiopia and France would enable to construct dry waste disposal area for the city. The loan agreement will help move the over 50-year-old disposal site from Qoshe-Repi.

Similarly, the HPR approved the 208.5-million-USD loan agreement between Ethiopia and the International Development Association.

The loan would improve the program in road sector and support the organizational structure of the sector, it was indicated.

All the loan agreements were ratified after the House checked that they are consistent with the loan strategy of the country.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2161:hpr-ratifies-loan-agreements&Itemid=260

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Norway Extends 17.4 million USD to Ethiopia

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The government of Norway yesterday donated over 17.4 million USD to Ethiopia through UNICEF and UNFPA to support the adolescent and youth development program.

Norwegian Ambassador to Ethiopia Odd-Inge Kvalheim signed the agreement with representatives of UNICEF and UNFPA.

The finance is aimed to fund the second phase of the program being implemented by the government of Ethiopia and the two partners.

Over 400,000 at risk adolescents and youth between the age of 10-24 will be benefitted from the four year program being carried out in 30 selected woredas of Addis Ababa and five regional states, namely Amhara, Oromia, Tigray, Afar and South Ethiopia.

The Norwegian government extends this fund seeing the encouraging results gained from the implementation of the first phase of the program, said the Ambassador.

Director of the Federal HIV/AIDS Prevention and Control Bureau Birhanu Feyssa on his part said the fund will help to reduce vulnerability of at risk youth and adolescents for new infections.

UNICEF Representative for Ethiopia Peter Salama said Ethiopia has managed to reduce prevalence of new HIV infections to 1.3 percent, which he said is encouraging.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2159:norway-extends-174-mln-usd-to-ethiopia&Itemid=260

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Garment Growth With Middle Eastern Company’s $80m Deal

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-  With sector performance little over a half of GTP targets, continued growth is crucial

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Upon joining the growing textile sector of the country, the Company has been granted a loan amounting to a quarter of its establishment cost, by the Development Bank of Ethiopia (DBE).

The Company, which has already secured 100ha of land in Mekelle, the capital of the Tigray region, 780km north of Addis Abeba, in order to erect its factory, is expected to commence construction in a few months, according to Taddese Haile, state minister at the Ministry of Industry (MoI).

Delegates of the Company, which supplies its products to renowned international stores like Target, Gap and Wal-Mart, were in town last week for final talks with government officials from the Ministry and the Ethiopian Textile Industry Development Institute (ETIDI).

The construction of the integrated garment factory is planned to be undertaken in three phases. The first phase of construction, which will be dedicated to garment production, is expected to be finalised a year after its commencement. The finalisation of this phase will cost the Company 30 million dollars.

Established in 1990 with a turnover of 100 million dollars in 2013, the company secured the loan from the DBE two weeks ago. To secure the loan, it has provided the Bank with the necessary documents, including the 30pc equity from the total investment cost of the first phase of the project, Sileshi Lemma, director general of ETIDI, told Fortune.

The Company, which will export almost all of its products to its already established markets, has requested a bonded warehouse customs duty service when it becomes operational.

The government has accepted the request in principle, according to sources.

Ten new factories with a combined production capacity of 100tns a day are also expected to start production during this fiscal year. An additional three new projects are expected to start production by 2014/15, according to Sileshi. This is in addition to six ongoing expansion projects in the textile industry.

Among these, the most recent to join the sector wass SVP Textiles Plc, from India.

The Company have started the construction of a 10-billion Br textile plant on a 50ha plot within the Kombolcha Industrial Zone, in Kombolcha town of the Amhara regional state, this year.

Despite all this development, the industry that now comprises of 115 textile factories and 40,000 workers, was only able to earn 52pc of the 111 million dollars that it was supposed to achieve in the first half of the year, according to the Institute. The target for the year is set at 317 million dollars.

The underutilised capacity of existing factories is still a big problem in the industry, according to an expert, who talked to Fortune on condition of anonymity. Factories in the textile sector are currently only utilising around 60pc of their production capacity, he said.

Around 99 million dollars worth of textile products were exported in the last fiscal year. This number is expected to reach one billion dollars by the end of the Growth & Transformation Plan (GTP) period, which is only one year away.

With a per capita fiber consumption of roughly one kilogram – far below the world average of 8.7 kg and the African average of 3.2kg – the country has great potential, which needs to be used properly, according to a research conducted by the African Growth & Opportunity Act (AGOA), three years ago.

http://addisfortune.net/articles/garment-growth-with-middle-eastern-companys-80m-deal/

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Samsung’s First Printer Assembly in Africa Inaugurated

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Last Monday witnessed Tana Communication Plc and Samsung Electronics East Africa inaugurating Samsung’s first printer assembly plant in Africa.

During the inaugural ceremony Tana’s CEO, Sium Adugna, said that in addition to creating job opportunities the plant will facilitate Ethiopia’s efforts in knowledge and technology transfer.

Sium further noted the establishment of the plant will minimize the production of printers which in turn will make Samsung printers competitive in Ethiopia.

Through his representative Robert Nigeru, Iso Samsung Vice President, said the opening of the plant is a sign for Samsung’s commitment to build Africa’s information and communication technologies capacity.

Robert further noted, his company will bring printer assembly engineers from Korea in order to equip local talent with necessary skills for running the assembly.

The products of the assembly are the first printer models of ML-2160, SCX- 3405W, ML5015ND and SL-M3820D which are Mono and Multi function printers.

Currently the plant has the capacity of assembling 70 printers per day.

http://www.2merkato.com/news/alerts/3014-ethiopia-samsungs-first-printer-assembly-in-africa-inaugurated

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Ethio-South African Business Forum Opens in Addis

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A three day Ethio-South Africa Investment and Business Forum opened June 01 in Addis Ababa with representatives of over 25 South African companies involved in education, health, infrastructure, manufacturing and agro-processing taking part in the discussions on possible cooperation in trade and investment.

In his welcoming address, Endalkachew Simie, Deputy Secretary General of Ethiopian Chamber of Commerce and Sectorial Association, noted that Ethiopia and South Africa had a longstanding bilateral relationship which has been strengthened by bilateral agreements in different areas including education, tourism and agriculture. In addition, he noted, imports and exports between the two countries have been growing in value and in volume.

Endalkachew said the Forum would contribute towards increasing existing economic ties between the two countries.

Stanley Subramoney, Chairman of the NEPAD Business Foundation, said Africa was at a critical juncture and the continent currently provided a new edge of opportunities. He noted that intra-Africa trade was increasing and pushing back the frontiers of poverty.

Ethiopia’s Agriculture Minister, Tefera Deribew, stressed the Forum could help elevate existing Ethio-South Africa social, economic, and political relations to a higher level through fostering strategic economic alliances and solid business partnerships.

He underlined the Ethiopian government’s commitment to make the country a real destination for Foreign Direct Investment, emphasizing that the country enjoyed a conducive business environment, political stability, sound economic policies, and macro-economic stability.

Fistsum Arega, Director General of the Ethiopian Investment Agency also noted the government’s full support and the incentives available for investment in the priority sectors. He South African businesses to make use of Ethiopia’s quota-free and duty-free access to European and other markets.

http://www.waltainfo.com/index.php/explore/13647-ethio-south-african-business-forum-opens-in-addis-

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With the African continent home to the majority of the world’s fastest-growing economies, urban consumer markets and a wealth of natural resources, it’s perhaps not surprising that some of the world’s largest corporations, from Monsanto to Unilever, are rushing to get a slice of the action.

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The Berlin Conference (1884-1885) was a landmark moment in the western colonization of the African continent

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Ethiopian-born Canadian entrepreneur Nejib Abba Biya was hoping to operate a mining facility in his homeland, but his plans were thwarted by one thing — a lack of energy to power the mine. That is when he trained his sights on geothermal energy as a reliable, renewable power source.

He is now an architect of a deal supported by the U.S. Government to build and operate the largest geothermal facility in Africa. Once completed, the project will generate enough electricity to power 5 million homes.

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In 2008, when the price of potash—a type of salt and key component of manufactured fertilizers—began to skyrocket around the world, Nejib Abba Biya, an Ethiopian-born Canadian entrepreneur, explored the possibilities of opening a mine to harvest this product in his native country.

When his company engineers conducted a feasibility study in 2009, however, they discovered that a power shortage would prevent the project from moving forward. That is when Nejib trained his sights on geothermal energy as a reliable, renewable power source. Ethiopia has vast, yet underutilized, reserves not only of geothermal energy, but natural gas as well.

“Wind farms work in the evening when there is wind. Solar works during the day. Hydropower plants work effectively when you have rain and the rivers are full,” said Nejib, who has founded and run several mining and technology companies in Canada and Africa. “But a geothermal energy plant works all the time.”

Natural geothermal steam (fumarole) rises from the ground in a ravine within the Corbetti Caldera.

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Fast forward five years and Nejib is now an architect of a deal between Reykjavik Geothermal, a U.S.-Icelandic private developer, and the Government of Ethiopia to build and operate the largest geothermal facility in Africa. The 1,000-megawatt facility will be built by Reykjavik Geothermal in partnership with Rift Valley Geothermal, a local business where Nejib is the CEO.

Once completed, the project will generate enough electricity to power 5 million homes. If used exclusively for residential use, this would result in enough electricity for 30 million people who currently do not have access to power. The initial agreement to negotiate a deal was announced this past September. Currently, the Government of Ethiopia and Reykjavik Geothermal are conducting final negotiations.

“This project will set a new benchmark for large-scale projects financed by the private sector and will help Ethiopia unleash its full energy potential,” said Reykjavik Geothermal CEO Gudmunder Thoroddsson.

This initial project agreement marks a milestone for Power Africa, an initiative announced in June 2013 by U.S. President Barack Obama that aims to leverage U.S. expertise in energy technologies, private sector transactions, and policy and regulatory reform to support sub-Saharan African nations’ energy plans. Power Africa facilitates complex energy transactions like the Corbetti project by providing technical assistance or financing.

In Ethiopia alone, two-thirds of its citizens have no electricity, and with an annual per capita income of just $471, very few can afford a generator. For the average person, that means cooking food on an open fire and not having light for their children to study.

What Is Geothermal Energy?

Heat is a form of energy, and geothermal energy is comprised of the heat from within the earth. Most resources of geothermal energy are in active volcanic regions. The energy ranges from hot springs found just below the surface to the extremely high temperatures of molten rock called magma. Generally, geothermal power is produced by pumping water into the earth’s crust and then conveying the heated water or steam back to the surface. Geothermal energy has the potential to play a significant role in moving the world toward a cleaner, more sustainable energy system.

Opening the Door to Private Investment

“In Africa, one of the biggest hurdles to economic development is the lack of access to electricity, something that Power Africa is addressing,” said USAID/Ethiopia Mission Director Dennis Weller. “It makes perfect sense that Ethiopia is one of the Power Africa countries. With its abundant renewable energy resources and its geographic location, Ethiopia can export power to neighboring countries to help reduce poverty and expand economic growth throughout the region.”

Power Africa strives to double the number of people with access to power in sub-Saharan Africa by unlocking the substantial wind, solar, hydropower, natural gas and geothermal resources. For the first five years, the U.S. Government has committed more than $7 billion in financial support and loan guarantees in addition to the coordinated support and expertise of 12 U.S. Government agencies. Power Africa is also targeting Kenya, Tanzania, Nigeria, Ghana and Liberia.

The geothermal project in Ethiopia is exactly the type of project envisioned by the initiative.

Located at Corbetti Caldera (a caldera is a volcanic crater) in the central Rift Valley of Ethiopia, the $4 billion project will be built in two stages—the first 500 megawatts should be operational by 2018 and an additional 500 megawatts by 2021. The site is located approximately 240 kilometers south of the nation’s capital, Addis Ababa.

Throughout Africa, too few energy projects make it past the initial planning stage. Even though all of the key components are there—energy resources, technology, expertise, high demand—the investments that would bring all of these together rarely come to fruition.

“Early on, Power Africa identified Corbetti as a priority transaction that could showcase the initiative’s innovative model: combining private sector expertise and investment with U.S. Government tools to mitigate risk and build local government expertise,” added Weller.

USAID is working with Government of Ethiopia officials to adopt industry standards that will help attract investors, reduce the tremendous risk that comes with a massive project like this, and lead to other power projects long after Power Africa investment ends.

Nejib says that private investors and commercial lenders are expected to be the major financial sources for the Corbetti project. “Obama’s Power Africa initiative facilitates the process of making funds available from U.S. financial institutions, but other banks will be involved in the project,” he added.

“The Corbetti agreement is a significant signal to the private sector and international investors that the Ethiopian energy sector is looking at new ways to meet its power requirements. This is also a critical objective of Power Africa: working in collaboration with African governments to institute appropriate reforms to create the right enabling environment for private sector activities,” said Weller. “The Corbetti deal has blown the doors open for private investment in Ethiopia’s power sector.”

Nejib understands what the project means for his homeland. “Ethiopia is one of the fastest growing economies in the world. We have the potential. If we concentrate and work hard, we can achieve much more than this. We are talking about becoming a middle-income country, but we can go further if we utilize our resources,” he said.

Potential for Growth in Energy

The Corbetti project will be part of the Ethiopian Government’s plan to generate 30,000 megawatts of electric power from renewable resources. According to Thorleifur Finnsson, the head of project development for Reykjavik Geothermal, the project will be one of the lowest cost and most technologically advanced geothermal facilities in the world. Electricity generated from the new power plant will be used for domestic consumption and exported to neighboring countries.

The Ethiopian Government is negotiating a 25-year deal to buy energy from the Corbetti plant. “This project will make Ethiopia’s power generation more reliable, secure, flexible, and competitive to industries, hydro processing and other service and commercial sector users,” said Mihret Debebe, former CEO of the Ethiopian Electric Power Corporation.

The plant will employ hundreds of people for the construction phase and several hundred full-time staff after completion. Reykjavik Geothermal will initially drill several kilometers below the earth’s surface. This requires massive amounts of water and the company is prepared to install pipes to bring water 15 kilometers from Lake Awasa. Excess water will be available to the community—water that is now far away.

“We will endeavor to give hope and tangible assistance to the immediate community,” said Nejib.

For residents living in the Caldera, their only sources of water are Lake Awasa and a small amount of condensation from steam dripping off tree and plant roots.

Mohammed Dasse lives with his large family in the Caldera. Every three days, a family member takes 12 hours to travel 15 kilometers to Lake Awasa, gather water, and journey the 15 kilometers back home.

Badhasso Dubee is also one of 10,000 people living in the Corbetti Caldera who could benefit from the project. A farmer with three wives and 30 children, he said, “I have never had electricity in my life. Nobody in Corbetti has it. We cook with wood because we can’t get gas, but the wood gives off smoke that is dangerous to breathe. At night, there is little we can do because there is no light.”

Both Mohammed and Badhasso say they are looking forward to benefiting from the Corbetti project.

Nejib Abba Biya, left, talks with Reykjavik Geothermal CEO Gudmunder Thoroddsson and U.S. Ambassador to Ethiopia Patricia Haslach about the new geothermal agreement with the Ethiopian Electric Power Corporation.

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Will Electricity Generate an Economic Renaissance?

“Ethiopia is blessed with all sources of renewable energy sources, but, geothermal is by far the one that could also create spin-off industries such as manufacturing for its parts, tourism and hospitality, cosmetic and skin care pharmaceuticals and so forth, as we witnessed in Iceland,” said Nejib. “This geothermal project will create several hundred jobs, including high skilled jobs. Last but not least, the transfer of skill and knowledge from this project could propel further growth of the industry.”

Clean energy, like that from the Corbetti project, can power Ethiopia’s growth by bringing new businesses, new jobs and improving quality of life, while leapfrogging old generation technologies that pollute the environment, harm public health and contribute to global warming.

“To become a middle-income country, we must develop sufficient and sustainable energy from renewable sources, for it is impossible to bring about growth without energy,” said Ethiopian Prime Minister Hailemariam Desalegn in October 2013 while inaugurating the 120-megawatt Ashegoda wind farm project in northern Ethiopia.

 

Sourced here  http://www.usaid.gov/news-information/frontlines/energy-infrastructure/making-powerful-impact-ethiopia

Drake Bennett is a staff writer for Bloomberg Businessweek in New York.

By Drake Bennett  – July 03, 2014     Photographs by Daniel Shea for Bloomberg BusinessWeek

Robb Fraley, Monsanto’s chief technology officer

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Europeans finance the Awash – Weldya railway project

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Seven financial institutions along with the Ministry of Finance and Economy Development (MoFED) and the Ethiopian Railway Corporation (ERC) are going to sign a loan agreement to construct the railway project that has been awarded to a Turkish company.
The signing ceremony was consecutively postponed, though it has been set to be held here in Addis Ababa in the presence of top government officials.
The signing ceremony will take place in the beginning of the coming budget year that will start on July 8. It will enable the Turkish construction giant, Yapi Merkezi to commence the 400 km railway project connecting Awash to the northern town of Weldya (Hara Gebeya), a section of the larger railway network running from Mekele via Weldya and Semera, to Port Tadjourah in Djibouti.
The Turkish EXIM Bank already has approved USD 300 million for the railway. It is the largest ever amount the bank has provided for one project in a country. “It is the first time one project has received this big a loan in Ethiopia from the side of Turkish and European financial firms,” Emre Aykar, chairman of Yapi Merkezi, told Capital at his head office in Istanbul.
The total amount that will come from Europe for the stated project is USD 1.4 billion.
He said that his company has created a link between European financial institutions and Ethiopia.
“We have managed to convince different European financial sources like SACE Group, Italy, EKF (Eksport Kredit Fonden), Denmark and others from Sweden, Austria and two from Switzerland,” Aykar said.
He said that during the current rainy season the company will focus on the establishment of camps, soil investigation and other related works and the ground work will commence in September.
The company has signed a USD 1.7 billion contract with the corporation to undertake the project.
The loan agreement ceremony was expected to take place in May, but some procedures with the banks and MoFED contributed to the delay, the chairman said.
Yapi Merkezi has handled big projects in places like Dubai, Saudi Arabia, Morocco, Algeria and Sudan.
The company officials stated that the current railway project in Ethiopia is a breakthrough for the company as they hope to expand their activity.
“We have big interest to be part of the country’s development,” Aykar said.
The project is expected to end within 40 months.
The China Communication and Construction Corporation (CCCC) will build the Mekele to Weldya part of the rail line. The estimated USD 1.5 billion cost is financed by the Chinese EXIM bank and covers some 260kms.
The section that stretches from Mekele to the Port of Tadjourah, Djibouti, covers a total distance of 675kms, and is expected to link the northern part of the country. The Indian EXIM Bank has also pledged USD 300 million for the Asayita to Port of Tadjourah segment of the Mekele-Port of Tadjourah railway line.
The Chinese contractors, China Railway Engineering Corporation (CREC) and China Civil Engineering Construction Corporation (CCECC) are currently constructing the Sebeta-Mei’so-Dewele railway line. For the 657km project, the Chinese Export Import (EXIM) Bank has provided the majority of the USD 2.3 billion needed.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4434:europeans-finance-the-awash-weldya-railway-project-&catid=35:capital&Itemid=27

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Djibouti Scraps DP World Port Concession Citing Corruption

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Djibouti’s government said it rescinded DP World (DPW)’s concession at the Doraleh Container Terminal after finding evidence of corruption and has begun arbitration proceedings.

The agreement was canceled after an investigation that showed an accord signed with the company “unfairly favored” Dubai-based DP World, according to a statement e-mailed by Consulum, a London-based communications consultancy, on behalf of the government. Talks aimed at resolving the matter have broken down and the state will seek damages for losses it has incurred, it said.

DP World rejected the accusations and will “vigorously defend our position during arbitration,” the company said in an e-mailed response to a request for comment. “We are disappointed that the government has chosen to take this action after working so closely with us as partners over the past 14 years.”

Djibouti’s $1.2 billion economy relies on services related to the country’s location on the Red Sea, one of the world’s busiest shipping lanes. Transport accounts for a third of gross domestic product in the Horn of Africa nation, which is targeting doubling capacity at Doraleh to 3 million containers a year by 2015. DP World is the world’s third-biggest ports operator.

The government will take “all necessary steps to ensure the continued smooth running of its ports,” it said in the statement. The terminal is the country’s largest employer.

30-Year Concession

DP World and Djibouti’s government established a joint venture in 2006 with the signing of a 30-year concession to operate the container terminal, which the company describes as “the most technologically advanced” depot in Africa. The facility, inaugurated in 2009, has a 1.05 kilometer-long (0.66-mile) quay and the capacity to handle eight super-post-panamax cranes, according to its website.

The government offered DP World the opportunity to continue running the port until the arbitration tribunal ruling.

“Whether or not DP World accepts that offer, Djibouti has measures in place to avoid any disruption to the increasing number of customers using its facilities,” it said.

Djibouti, slightly larger than New Jersey, hosts a U.S.-led military task force at Camp Lemonnier, a base and staging area for tracking and launching assaults on al-Qaeda militants in Yemen and Somalia.

http://www.bloomberg.com/news/2014-07-08/djibouti-scraps-dp-world-terminal-concession-citing-corruption.html

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UN Report Finds African Growth Lacking, Unsustainable

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-  Development of productive capacities and structural transformation, two key components of poverty reduction and job creation, are lacking

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Taffere Tesfachew (right), director for Africa, least developed countries & special program presenting the report prepared under his overall supervision, which was commanded by Mekonnen Mayazewal (middle), commissioner of the national planning commission of Ethiopia with Samuel Bwalya (left), UNDP, country director to Ethiopia.

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A report about Economic growth in Africa released on Thursday July 3, 2014, by the Conference on Trade & Development (UNCTAD) – a UN economic think tank- revealed that the growth narrative of Africa over the past decade is lacking two of the vital elements for generating productive employment and laying the foundation for sustained poverty reduction.

To the delight of Mekonnen Manyazewal, commissioner of the national planning commission, who is also working on the second generation of the Growth and Transformation Plan (GTP 2), the report also calls for priority to be given to a substantially increased allocation to the public sector.

Characterising the nature of the recent growth in Africa as contributing to the slow progress in poverty reduction, the report says that “Africa’s recent growth has not led to the development of productive capacities and structural transformation”, which are the two vital aspects of poverty reduction and employment generation.

Structural transformation is a shift of resources and policy focus from traditional sectors to modern sectors, from traditional activities to modern activities and from low productivity and limited technology to high productivity and advanced technology, according to Taffere Tesfachew, director of the UNCTAD division for Africa, least developed countries and special programs, who presented a summary of the report last Thursday.

The fast growing economy of Africa is basically consumption driven, which makes it import dependent and difficult to sustain, according to Teffere.

“Consumption driven growth is difficult to sustain,” Taffere said, during his presentation of the findings of the report at the launching ceremony. “It is time to shift to investment driven growth.”

Given the fact that the continent is in the early stages of its development, the structural change observed in Africa defeats the normal expectations, according to the report. The high and steady growth of the continent is not backed by a shift from low productivity activities to high productivity activities, it says.

The structural transformation concern of the report has, however, overlooked an important element that precedes it, for Eyob Tesfaye (PhD), a macroeconomic analyst who was also in attendance on the launching of the report.

“Intra-transformation within the sectors has not been undertaken yet,” he told Fortune. “For instance, the agricultural sector, which is still backwards, rain fed and powered by low technology, needs to be transformed.”

The share of manufacturing has declined, with the services sector dominating African economies, it states. It has declined from an average of 14pc for the period between 1990 and 1999 to 11pc during the period between 2000 and 2011, according to the report.

“The continent has experienced a deindustrialisation over the past two decades, as evidenced by the fact that the share of manufacturing in total value added fell from 13pc in 1990 to 10pc in 2011,” it reads.

Highlighting the problem on the supply side in the African growth narrative, the report considers the dominant role played by the services sector as unusual. This is worrisome because it is mostly driven by low productivity activities in informal and non-tradable services, it claims.

“Africa’s recent growth is fragile and is unlikely to be sustained in the medium to long term if current trends continue,” it concludes, calling for investment driven growth backed by high productive and tradable services.

In what Taffere has called “the untold story” in the African economic growth trend, the degree of inefficiency in the use of the capital accumulated in the economy has declined in Africa.

Measured by the incremental capital-output ratio (ICOR), Africa’s capital productivity increased significantly from the 7.4pc it was for the decade between 1990 and 1999 down to 4.1pc after the following ten years.  An economy with a higher ICOR has lower efficiency or productivity of capital, in economic terms.

Ethiopia has also benefitted from this untold story, according to the report.

Ethiopia is in third place in the list of countries where the accumulated capital had a very high productivity in the period between 2000 and 2011, the report identified. Angola and Equatorial Guinea are the first and the second, while African countries, such as Liberia, Mozambique, Nigeria, Rwanda and Sudan, are also among those with high productivity of capital.

This is neither for all African countries nor for the public investment areas, though.

“Although there has been an improvement in the efficiency of total investment in Africa, more works need to be done, particularly in the area of public investments,” it comments.

The inability of the economic growth to generate jobs has led to Taffere concluding that the growth narrative of Africa is in essence a “jobless growth”.  The African economies are not absorbing the 15 million new entrants every year, he said. The growth of employment in the predominantly youth populated Africa is 2.8pc, with many of the new jobs created coming from the informal sector, which is difficult to sustain and less productive.

Here again, Ethiopia is singled out by Taffere in his presentation. Ethiopia has created about 1.4 million new jobs over the past decade, registering a 3.4pc growth in employment – 0.6 percentage points more than the average growth for Africa, he said.

The employment growth account of Ethiopia, however, is due to the casual employment opportunities being created by the booming construction sector in the country, according to Eyob Tesfaye (PhD), a macroeconomic analyst who was also present at the launching of the report.

The report person at the helm of Ethiopia’s national planning commission, Mekonnen, commended the findings of the report in many respects. Highlighting what Africa should take from the report, underlines the need for the provision of institutional support to domestic investors, which the report considered as an aspect not accorded with adequate attention in the growth of Africa.

Mekonnen, rather questions the nature of the leadership and the state in Africa as a challenge to the implementation of the recommendations of the report. He calls for the developmentalist model of state and government for the proper mobilisation and channelling of resources to the appropriate directions.

“The UN system is serving as the intellectual voice for Africa,” he said. “We will give the report adequate weight and eternalise in our future plans.”

http://addisfortune.net/articles/un-report-finds-african-growth-lacking-unsustainable/

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MIGA Vice President Visits Ethiopia

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Michel Wormser, Vice President and Chief Operating Officer of the Multilateral Investment Guarantee Agency (MIGA) the political risk insurance and credit enhancement arm of the World Bank Group will visit Ethiopia from July 8-11. Wormser s visit underscores MIGA s continued support to the country s development goals through private sector investment.

The aim of Wormser s visit is to identify areas where MIGA can help the country mobilize capital for important projects including those in the infrastructure, energy, agribusiness, and manufacturing sectors and other job-creating enterprises that can help the country meet its development objectives. Wormser will meet with government ministries and private sector entities.

MIGA has supported private sector investment into Ethiopia in agribusiness and manufacturing. The purpose of my trip is to underscore our willingness to continue to support foreign direct investment in Ethiopia and identify priority areas where MIGA s support can be the most helpful in advancing the country s development agenda, said Wormser.

http://www.hispanicbusiness.com/2014/7/8/united_states_miga_vice_president_visits.htm

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Canadian Investors with 367 million CAD Engaged in Ethiopia

Canadian investors with a total capital of 367 million Canadian dollars (CAD) have secured licences to invest in Ethiopia, according to the Canadian Ambassador to Ethiopia.

The trade exchange between Ethiopia and Canada has also reached 141.3 million CAD.

In an exclusive interview with ENA, Ambassador David Usher said the investors are engaged in importing machinery, leasing construction equipment, education, health, consultancy, tourism and information technology.

In addition, 12 Canadian companies have secured mineral exploration licenses in the country, of which two have substantial assets, he said.

Many Canadian investors are also showing huge interest to engage in the various investment sectors in Ethiopia, according to Ambassador Usher.
The trade flows are, however, modest despite the half-a-century old relationship of the countries, he said.
According to the ambassador, joint consultative forums are being organized with the Ethiopian Ministry of Foreign Affairs to boost the trade exchange between the countries.

Ethiopia imports aircraft and parts, machinery, precious stones, metals (coin) electrical machinery from Canada. Canadian merchants, on the other hand, import mainly coffee, tea and spices, oil cereals and other agricultural products, it was learned.

The direct flight of Ethiopian airlines three times a week to Toronto has highly contributed toward raising investment and cultural ties, according to Ambassador David Usher.

Canada applauds Ethiopia for its open door policy towards refugees on all its borders alongside showing great effort to bring stability in the Horn of Africa, he pointed out.

Canada has raised its developmental support to Ethiopia to 210 million CAD in the current year, it was indicated.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2333:canadian-investors-with-367-mln-cad-engaged-in-ethiopia&Itemid=260

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Chinese premier vows closer cooperation with Ethiopia

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BEIJING, July 8 (Xinhua) – Chinese Premier Li Keqiang met with Ethiopian President Mulatu Teshome in Beijing on Tuesday, vowing closer cooperation.

Li recalled his trip to Ethiopia in May, during which he reached broad consensus with the Ethiopian side on friendly cooperation.

China hopes to help with Ethiopia’s transportation and power infrastructure through a regional aviation center, manufacturing center and a demonstration center of development and poverty reduction, Li said.

He proposed more projects including economic and industrial zone, expanded energy exploration, personnel training and agricultural cooperation, to set an example for China-Africa cooperation.

Hailing cooperation between China and Africa, Li said China hopes to work with African countries and the African Union to build railway, highway and aviation networks.

Mulatu, on his first China trip since taking office last October, said Li’s Ethiopia visit has promoted bilateral ties to a new level.

Ethiopia-China relations are based on mutual understanding, trust and mutual benefits, he said.

Calling China a best cooperation partner, he vowed joint efforts with China to implement the achievements of Li’s visit to promote greater progress of bilateral ties as well as Africa-China cooperation.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/140708/chinese-premier-vows-closer-cooperation-ethiopia

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COMESA Member States Provide Greater Clarity with New Guidelines

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-  The draft document has now been tabled for approval by the board of commissioners

Member states of the Common Market for East & Southern Africa (COMESA) have finalised a draft document entitled “Merger Guidelines”, after a validation workshop held on July 1-2, 2014. It has now been tabled for approval by the board of commissioners in August of this year.

Aimed at providing merger guidance for companies within the common market, the guidelines have been prepared in response to calls for greater clarity and legal certainty in the supranational merger control regime of the regional competition law dubbed COMESA Competition Regulations. The enforcement of said law was announced in January 2013, following its ratification by the council of ministers established under the treaty that established the common market, according to the guidelines document.

The regulation has established a separate entity, named the COMESA Competition Commission, which has the power to apply the part of the regulation that deals with trade between member states and promotes competition within the common market. The commission has a board as its supreme policy body. Launched in December 2008, the commission officially commenced operations on January 14, 2013. It is composed of the secretariat, headed by a director, which is responsible for investigation; the Committee of Initial Determination (CID), responsible for making initial determinations on notification and complaints, and a Board of Commissioners also mandated with the adjudicative functions.

The board shall consist of not less than nine and not more than 13 Commissioners appointed by the council of ministers of the common market on the recommendation of the secretary general. The first board was appointed in the year 2011.

It was through this commission that  the current guideline was prepared with financial assistance from the International Finance Corporation (IFC) of the World Bank (WB).

The first draft of the guideline was publicised in April 2013, in order to collect  comments from stakeholders. The draft is designed to clarify parts of the COMESA competition regulations, in force since 2004, which deal with mergers and acquisitions.

Following the submission of the initial deliverables by the consultants, which included the revised draft merger control guideline, the Commission, in collaboration with the IFC, organised a regional workshop, which took place in April 2014, in Johannesburg, South Africa. Here, the Member States deliberated on the guidelines produced by the Consultants.  Since then, the consultants, in collaboration with a steering committee, have been working to perfect the document taking into account inputs from the member states and other stakeholders.

The draft was finalised last week during a workshop organised by the commission in collaboration with the Ethiopian Trade Practices & Consumer Protection Commission (TPCPC). The draft has now been sent to be approved by the supreme policy organ of the commission, the board of commissioners, who are scheduled to meet in August this year, according to George K. Lipimile, director and chief executive officer (CEO) of the Commission.

In addition to the representatives from the national competition authorities of the COMESA member states, the workshop was attended by a cross section of competition law experts and practitioners from the region and beyond, according to Lipimile.

“The merger control guideline is expected to be in line with international best practices and should meet the expectations of the users,” he said.

Among the detailed clarification on the regulations provision concerning merger is the meaning attached to merger control by the regulation. Accordingly, the merger control mandate of the commission – based in Lilongwe, Malawi – concerns those mergers capable of having a regional dimension, with an appreciable effect on trade and which restricts competition.

It also provided much more detailed clarifications on the control of merger, notification of a proposed merger, merger proceedings and considerations of a merger, which are generally provided in the competition regulations. Further detail clarifications and explanations are made under the guideline on the matter of what constitutes a merger to territorial nexus; from pre-notification consultation and comfort letters to the notification process; from assessment of the merger and merger assessment considerations to analytical approaches and methodologies.

http://addisfortune.net/articles/comesa-member-states-provide-greater-clarity-with-new-guidelines/

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Ethiopia Defies IMF Warning In New Budget

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VENTURES AFRICA – Ethiopia’s parliament Monday, approved a 178.6 billion-birr ($9.2 billion) budget for 2014-2015 in which more than 64 percent of the total amount is earmarked for development spending against the advice of the International Monetary Fund (IMF) to cut its public spending.

The 2014-2015 budget- a 15 percent rise from the previous year- which will boost spending on education, health and road building defies the IMF’s warning that Ethiopia’s huge spending is suffocating private lending. In 2013, the IMF warned that the expanding public expenditure as well as the government’s tight monetary policy, to bring down inflation, could imbalance macroeconomic development by depriving the private sector access to credit and foreign currency.

However, Ethiopia’s intervention over the past decade has boosted the economy with the IMF forecasting that its economy will grow to 8.5 percent in 20014/15 from 8 percent in 2013/13. The government embarked on Infrastructural projects like hydro-electric dams and other power projects to offer cheap electricity and also focused on expanding the network of roads and railways.

With its latest budget, the East African country, which is second in population to Nigeria in Africa, aims to expand its road network to 136,000 km (84,500 miles) by 2015 from less than 50,000 km in 2010.

There are also plans to build 5,000 km of railway lines by 2020. The capital will soon have its own metro, a rarity in Africa.

The budget, which was unanimously passed by the parliament, also sees a 6.7 percent rise in Defence spending, from 7.5 billion birr in the previous budget to 8 billion birr. Ethiopia has the largest army in the Horn of Africa, it is also a key U.S ally in the region and is fighting al Qaeda-linked insurgents in Somalia as part of an African Union mission. It has also deployed peacekeepers in South Sudan.

http://www.ventures-africa.com/2014/07/ethiopia-defies-imf-warning-in-new-budget/

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ECX to Launch Commodity Traceability, Online Trading Projects

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The Ethiopia Commodity Exchange (ECX) said it would implement commodity traceability and online trading projects this Ethiopian fiscal year.

ECX Interim Chief Executive Officer, Shimelis Habtewold, told a press conference on Tuesday July 8, 2014 that the traceability project will be realized with an outlay of 1.3 million USD in collaboration with USAID.
The traceability project is expected to provide buyers with origin and processing information on commodities traded, in addition to creating market access to ECX members and clients.
Similarly, the online trading project will be implemented with an outlay of 3.8 million USD in collaboration with Investment Climate for Africa (ICA).

According to the CEO, “when the project begins service, it will enable market actors to participate directly in trading from remote online trading centers established in different parts of the country, including Humerra, Gondar, Adama, Hawassa and Jimma.”

Online trading is envisaged to increase access to ECX and its service. In addition, it will build the capacity of various stakeholders groups and increase efficiency, it was pointed out.

Meanwhile, the total value of the traded commodities in the just-ended fiscal year reached 26.2 billion birr from the sale of sesame, coffee and white pea beans during the last budget year, it was learned. The amount exceeded that of the previous year by 7.3 billion birr or 38 percent.

The number of ECX members which was 100 upon its establishmnet has now reached into346, and 14,725 clients as well as 10 percent farmer cooperative unions reaching out to 2.7 million small farmers.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2330:ecx-to-launch-commodity-traceability-online-trading-projects&Itemid=260

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Kenyan Exchange to Sell Shares in Africa’s Second Bourse IPO

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Kenya’s stock exchange will become the second publicly traded African bourse with a share sale that was planned at least five years ago.

Nairobi Securities Exchange Ltd. will hold an initial public offering from July 24 to Aug. 12 and list stock on the market, it said today in an e-mailed statement. The FTSE NSE Kenya 25 Index has climbed 15 percent this year, compared with a 17 percent gain in the MSCI FM Frontier Markets index.

“We are putting our money where our mouth is,” Head of Market and Product Development Donald Ouma said by phone today. “We are saying capital markets are the best place to raise long-term capital.”

Kenya’s stock exchange first announced plans for selling shares in 2009. The market has been seeking ways to deepen trading and attract listings from companies in East Africa’s largest economy. The 62-member all-share index has a value of 2.14 trillion shillings ($24 billion), according to data compiled by Bloomberg.

“We are also looking into new products and services such as derivatives and real-estate investment trusts, and we are better suited to do so as a listed entity,” Ouma said.

JSE Ltd. (JSE), the operater of the Johannesburg Stock Exchange and Africa’s first listed exchange, gained 11 percent this year, compared with a 12 percent increase in the FTSE/JSE Africa All Share Index.

http://www.bloomberg.com/news/2014-07-08/kenyan-exchange-to-sell-shares-in-africa-s-second-bourse-ipo.html

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Malfunction at factories creates severe sugar shortage

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A sugar shortage hit major manufacturing industries, including soft drink manufacturers after two of the nation’s three sugar factories ceased production of sugar due to mechanical and sugar cane failure. Wonji Shoa and Finchaa Sugar factories stopped production slashing the quotas of manufacturing industries by two thirds forcing them to stop or minimize production significantly.
Sources told Capital that, machines at Wonji Shoa Sugar Factory were broken and are currently under maintenance. The other sugar factory Finchaa, also faced a crop failure, forcing the factory to stop production.
Soft drink companies are also slashing working hours as the corporation is not providing them with enough sugar for production.
Sources at one of the soft drink companies told Capital that their company is reviewing a plan to lay off some of their employees if the problem persists.
The country has faced a shortage of sugar from time to time. The shortages have led to the price of sugar increasing over the limit set by the Sugar Corporation in recent years.
The three state-owned sugar factories Wonji Shoa, Metehara and Finchaa produce 2.8 million quintals of sugar per annum, while the demand has reached 4.6 million quintals per year.
However, as part of the five year Growth and Transformation Plan (GTP) 12 new factories are to be constructed making the country a sugar exporting state.
Ethiopia expects seven of the sugar factories to start operating by end of 2015.
The Sugar Corporation said that once commissioned the seven factories will significantly boost the country’s sugar production capacity to 1.58 million tons – a five-fold increase. This is however lower than the 2.25 million tons the country would have produced if all 10 sugar factories came into operation.
Sugar production has been one of the cornerstones of the government’s plan to increase the country’s competitive advantage in agro-processing sub-sector.
The factories that are expected to be fully operational by the end of next year are Tendaho – 1 and 2, Omo-Kuraz-1, Kesem, two of the Tana Beles factories and Arjo- Dedesa.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4444:malfunction-at-factories-creates-severe-sugar-shortage-&catid=54:news&Itemid=27

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Government urged to foster sugar development endeavor

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Native residents of the Omo-Kuraz Sugar Development Project surrounding areas requested the government to foster the sugar development effort so that they can significantly benefit from the development.

In the discussion held at Jinka town of South Omo Zonal Administration between clan leaders, elders, women and the youth of the project surrounding areas comprised of Boddi, Murssi and Mieinnit nationalities and the leaderships of Sugar Corporation as well as the SNNP regional government, the resident participants requested the government to foster the sugar development activities in order to maximize their social and economic benefits.
Some of the participants of the discussion represented from South Omo Zone disclosed that they are eagerly waiting to see the sugar factories under construction in their area commence sugar production like that of Wonji Shoa Sugar Factory which they have paid a visit to earlier.
According to the Bodi community just from the outset of the development process they have got access to infrastructures and social services. Moreover, the project has enabled them introduce themselves with farming so that they have started enjoying their own harvest.
On the other hand, the Murssi nationalities from South Omo Zone and the Mieinnit nationalities of Keffa and Bench-Maji zones who came from areas where the project activities have not reached yet asked the government to accelerate the sugar development activities which will enable them improve their living condition like those residents of other areas where the project’s activities are already underway.
Disclosing their firm commitment to overcome whatever challenges they might face in the process of realizing the late Prime Minister Meles Zenawi’s development vision which he shared them while he had visited the area, they declared their readiness to contribute their part for the realization of the sugar development effort.
Moreover, the participants noted that the development endeavor has brought all nationalities which were used to view one another as enemies rather than friends stand together in fostering the development effort.
The sugar development work has, therefore, brought about a strong social link to them, they also mentioned.
Director General of Sugar Corporation at the level of Minister, Sheferaw Jarsso, while presiding over the discussion forum, on his part, said that the points raised in the meeting showed the encouraging results achieved in the sugar development activities.
In addition to creating access to canal schemes, the government’s effort to ensure infrastructures and social services accessibility to all areas irrespective of the command areas clearly demonstrates the government’s firm commitment in benefiting the local community, he further added.
He at last called up on the native residents to play their part in facilitating the sugar development endeavor.
On the other hand, Tagesse Chaffo, Vice President of the SNNP Regional Administration, reminding the government’s effort in making the natives the first beneficiaries when diverting the Omo River, disclosed that both the federal and regional governments execute any development activity at any area giving priority to the benefit of the natives.
Moloka Webneh, Head Chief of South Omo Zone, on his part, said that the reflections of the participants during the discussion showed the evasion of suspicions and fears which were used to be noticed earlier on similar discussion forums. The villagization program under execution has native residents to access various infrastructures and social services.
The Omo-Kuraz Sugar Development Project is found at South Omo, Keffa and Bench-Maji zones of SNNP Regional State in which five sugar factories in total will be constructed with 175 thousand hectares of sugarcane plantation field.

http://www.waltainfo.com/index.php/explore/14071-government-urged-to-foster-sugar-development-endeavor-

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Major shoe company comes to Ethiopia

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US based footwear producer, Brown Shoe Company, will establish an office in Ethiopia to buy domestic footwear products for its international market.
Recently large shoe makers have seen Ethiopia’s potential and invested in the country and there are some international garment companies like H&M but this is the first time a global shoe company has entered the Ethiopian market.
Wendu Legesse, Director General of the Leather Industry Development Institute (LIDI), told Capital that the company is expected to open its office in the coming fiscal year which starts next week.
Wendu said Brown Shoe mainly exports to China but now is encouraging Chinese firms to produce footwear in Ethiopia.
Leather industry experts are hopeful this will bring more leather technology and experience into Ethiopia.
“This is a good example of how international producers can contribute to Ethiopia,” Wendu added.
According to LIDI’s head, the Brown Shoe’s investment will not only increase production but will also bring international knowledge and standards.
He said that the company will not only open an office here, but will also provide laboratory service and capacity building.
“Brown Shoe has provided scholarships for seven experts who worked at LIDI and four of them are already taking the training,” the director general said. LIDI is the government institution responsible for overseeing the leather industry. It also has a training center that provides higher education in leather technology.
The government’s goal is to bring in half a billion dollars from leather exports by the end of the Growth and Transformation Plan (GTP). Currently that target is not on track to be met because experts explain that the number of companies expected to invest in Ethiopian leather has been less than expected.
Even though the GTP ends in a year government officials are hoping that as more large companies enter the market they will still be able to meet the leather earnings target. The government is not only encouraging footwear producers to invest in the country, but companies who have the potential to export the products.
For example international footwear companies like Huajian Shoe Company, and Gorge Shoe Corporation are coming to Ethiopia and joining the sector and they have the potential to produce a large amount of leather products.
According to Wendu, another global footwear producer, Stella, which makes 52 million pairs of shoes every year has demonstrated an interest in investing in Ethiopia.
“Stella paid two visits to the country and is interested in investing here. We are also encouraging synthetic leather shoe producers, who produce sneakers and sports footwear, to invest in the country,” he added.
Brown Shoe Company, based in Missouri, is a USD 2.6 billion footwear company with worldwide operations. It owns the 1,100-store Famous Footwear chain, 100 specialty retail stores in the United States, Canada and China under the Naturalizer name, as well as Shoes.com, the Company’s e-commerce subsidiary. Brown Shoe’s wholesale divisions own and market leading footwear brands including Naturalizer, LifeStride, Via Spiga and Sam Edelman. The company also markets licensed brands including Franco Sarto, Etienne Aigner, Dr. Scholl’s, Carlos by Carlos Santana, Fergie Footwear and Vince branded footwear.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4438:major-shoe-company-comes-to-ethiopia-&catid=35:capital&Itemid=27

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