Zenia Lewis and Witney Schneidman   –  July 24, 2014

 

Editor’s Note: The U.S.-Africa Leaders Summit blog series is a collection of posts discussing efforts to strengthen ties between the United States and Africa ahead of the first continent-wide summit. On August 4, Brookings will host “The Game Has Changed: The New Landscape for Innovation and Business in Africa,” at which these themes and more will be explored by prominent experts. Click here to register for the event.

Trade and investment will be an important topic at this year’s U.S.-Africa Leaders Summit. However, while the fact that the annual U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum, often called the AGOA Forum, is folded into the summit will ensure that the trade relationship is on the agenda, it also means that the trade forum is getting less individual attention than normal. With the African Growth and Opportunity Act (AGOA) legislation expiring at the end of next year and other major players such as China constantly enhancing and adjusting their trade and investment policies as they relate to the continent, the U.S. administration must use the summit and the forum as opportunities to ensure that it isn’t simply rehashing the old stories of the past decade, but announcing new, improved and meaningful strategies for trade and commercial engagement with African leaders.

Trade Trends with Africa’s Leading Partners

Over the past decade, the U.S. has gone from a leading trading partner with Africa to being far surpassed by the European Union and China. The EU has been a major traditional trading partner of Africa, and over the last decade its trade with the continent has more than doubled: In 2013 it amounted to over $200 billion. China started from a smaller base but has seen much more explosive growth—moving from $10 billion in 2000 to over $170 billion in total trade in 2013. Japan trails the U.S. in its total trade with Africa but, unlike Japan, the U.S. has actually seen its total trade decline in recent years, in 2013 amounting to about $60 billion—importing about $40 billion from the continent and exporting around $20 billion. In 2011, the U.S. imported close to $80 billion from African countries—most of which entered duty-free under AGOA or the Generalized System of Preferences—and exported around $20 billion consistently for the last five years. The decline and flat lining in U.S.-Africa trade begs the questions for the administration: What more can be done to see an increase in this commercial partnership similar to what the EU and China are experiencing? What has the U.S. done and what should the U.S. be doing to be a better partner to sub-Saharan Africa?

U.S. Trade and Commercial Engagement Strategy

Right now the U.S. has a variety of strategies, preferences, programs and people on the ground in Africa to promote commercial engagement. AGOA is a trade preference that allows for duty-free export access to the U.S. market for around 6,000 products in eligible sub-Saharan African countries. The USAID trade hubs work to help exporters in sub-Saharan Africa utilize AGOA, but are located in only three different countries (though the West Africa Trade Hub has an additional satellite location and smaller resource centers in many countries in the region). U.S. Foreign Commercial Service Officers (CSOs), which assist U.S. exporters in targeting African markets, are based in four countries on the continent: Ghana, Kenya, Nigeria and South Africa. The U.S. Department of Commerce also announced in April 2014 plans to expand several of its existing offices and double its presence in Africa by opening its first-ever offices in Angola, Tanzania, Ethiopia and Mozambique.

The U.S. also has the Trade Africa initiative, which is a partnership between the U.S. and sub-Saharan Africa to increase both internal and intra-regional African trade, and “expand trade and economic ties among Africa, the United States, and other global markets,” though with an exclusive focus on the East African Community. In 2012, the U.S. Commerce Department launched its Doing Business in Africa campaign to encourage and support U.S. business engagement with the region. The U.S. is working to deepen its commercial engagement with the continent in many ways including integrating the private sector in three of its key initiatives: Feed the Future, Power Africa and the Young African Leaders Initiative. The new CEO Summit, which will include CEOs from Africa and the U.S. in a day long conversation with President Obama and African leaders, should also be a new, helpful strategy for identifying key obstacles to trade and investment as well as identifying strategies for removing those obstacles. These new U.S. approaches could pay significant dividends in the coming years.

Enhancing the U.S.-African Trade Relationship

Both sides stand to gain from a more cohesive and substantial commercial strategy. African exports make up around 2 percent of total world trade and increasing this number (including exports destined for the U.S.) will be positive for African countries. On the other hand, African countries represent an important market for U.S. products and exporters — as the continent’s middle class is growing, there’s more spending power and more growth — meaning more potential for exports in not only consumer goods but also construction, infrastructure, energy, health care, transportation equipment and sectors, where U.S. companies have a lot to offer. In fact, the current level of U.S. exports to Africa, just over $20 billion, translates into support for more than 100,000 American jobs.[1] There is a win on both sides if both sides are interested in making the relationship work with ease.

Changing Paradigm of Partner Engagement with Africa

It’s obvious that the U.S. is not the only partner that has seen the great market potential of Africa, and many others have adapted quickly to engage. China is always the example, with its higher risk appetite, innovative financing and fewer restrictions on its loans and assistance strategies than OECD Development Assistance Committee (DAC) countries like the U.S., and it has managed to engage all over the continent. The Chinese government’s website indicates that it has over 150 commercial attaches located on the continent—making identifying opportunities, partnerships and markets easier than for the U.S., which has a fraction of this number doing the same work (with only four countries housing Department of Commerce offices, holding no more than two officers each). Its Export-Import Bank even has an office on the continent, while the U.S. Export-Import Bank has to watch its reauthorization debated by Congress.

The EU is also changing its strategy with regards to Africa, as evidenced by the Economic Partnership Agreements (EPAs) that it wants to implement with Africa. The EPAs are reciprocal trade preferences that, unlike AGOA, would give the EU an advantage when exporting to African countries—preferences that the U.S. and other regions wouldn’t have. This has been a point of contention for many African countries because EPAs undermine regional integration in the sense that they give European countries even greater trade preferences than afforded to other African countries. The EPAs also give EU exporters preferential access to the disadvantage of U.S. companies and exporters. In July 2014, the first-ever EPAs between the EU and African regions were concluded with six of the 15 countries in the Southern African Development Community (SADC) signing the EPA, and the Economic Community of West African States (ECOWAS) and Mauritania endorsed for signature by ECOWAS heads of state. The U.S. must consider how the EU’s implementation of the EPAs may influence its own trade strategies with African countries and regional organizations.

The Opportunity for Promoting Deepened Trade and Commercial Ties Through the Summit

As the U.S. prepares for the U.S.-Africa Leaders Summit, the importance of their trade partnership is apparent, and the U.S. is clearly attempting to increase its efforts to engage, so having a clear message on what the next steps are for increasing this trade relationship will also be important. The U.S. should focus on announcing and acting on three items: extending the AGOA legislation; clarifying the country’s interests in external trade policy that relate to Africa; and having a more ambitious and cohesive agenda for promoting U.S.-Africa trade.

Expressing a clear commitment to extending AGOA

The renewal of the AGOA legislation prior to its pending expiration will be a major talking point for African leaders during the summit. Legislation is in the process of being drafted on the hill, but hearing from both the administration and Congress that they will support it as well as make efforts to increase the effectiveness of it in promoting African exports will be critical. Trade capacity building, monitoring and reporting, and AGOA country strategies are all items that new legislation should consider. There should also be a clear commitment to extend the legislation for a period long enough to promote investment—10 or more years being a critical requirement for reassuring new investors and getting positive trade development. Announcing this at the summit will show clear signs of the U.S.’s interest in continuing to promote growth, industrial development and deepened commercial ties.

Promoting increased utilization of AGOA through targeted strategies with African countries

AGOA has been a useful tool in promoting trade through allowing sub-Saharan African countries duty-free access to the U.S. market, but many countries are exporting little to nothing to the U.S. using these benefits. Encouraging countries to create AGOA export strategies—for those who have not already—will be important. Finding ways to increase support for trade capacity building efforts and regional integration could be achieved through dialogue initiated at the summit with African leaders that also includes regional organizations and the United Nations Economic Commission for Africa and the African Development Bank. Strategizing with these groups could have powerful effects for enhancing renewed legislation.

Indicating interest in supporting Africa’s trade development without reciprocal arrangements

The EU wants African countries to sign on to the EPAs, as indicated, but the possible negative consequences for the continent have been well documented and the advantage it would give to EU countries is counter to U.S. interests. While such agreements can’t be considered off the table in the future, noting that the U.S. is dedicated to increasing Africa’s trade capacity in the medium term through AGOA and not EPA-like agreements sends a strong signal to African countries.

Pushing forward trade facilitation efforts

The U.S. should also make a point at the summit to reinforce its commitment to supporting a better trade environment in Africa by agreeing to contribute more to the trade facilitation enhancements that are part of the Bali agreement. In essence, the Bali agreement requires countries to make certain changes to increase trade facilitation—create one-stop border shops, increase transparency in the legal and regulatory framework, and increase efficiency regarding processes and fees, and the like. This agreement has become a point of contention in Washington as those who are interested in renewing AGOA want to see African countries do as much as possible to make trading with the continent easier, and do not understand hesitation from African countries to make relevant reforms. Some African countries and other developing countries have expressed concern about the reform obligations placed upon them under the agreement, with worries that the cost of implementing them could be great, and the lack of funds could constrain them in other areas. They want to have specific funding in place to ensure that this will not be an issue.

The U.S. has a clear opportunity to support these efforts. Ensuring that the Bali agreement is effectively implemented would be beneficial to African countries trading with one another and the U.S. as well. The U.S. already provides some assistance through the USAID Partnership for Trade Facilitation, which was launched in 2011 and works to help countries prepare for implementing the agreement. A recent USAID publication, A Comprehensive Approach to Trade Facilitation and Capacity Building provides an impressive and detailed strategy for further engagement. It also recognizes concerns about sufficient donor support. The U.S. could make a great difference through increasing technical support geared towards implementing the agreement and providing increased funding to address African countries’ concerns about the Bali agreement, through vehicles like the African Development Bank’s Trade Fund, for example. The summit could serve as an excellent forum at which to announce specific plans like this that would show a serious commitment to enhancing U.S.-Africa trade.

Moving towards a more cohesive African trade and investment strategy

Lastly, as we can see, the U.S. has multiple programs, preferences, agencies and initiatives working to promote enhanced U.S.-Africa trade, but making a clearer channel of engagement seems to make sense for both sides. Navigating the different programs and initiatives that exist can be daunting for U.S. businesses looking to break into African markets and understanding the assistance available for African exporters in eligible countries under AGOA can be equally unclear. Creating both an online hub for directing businesses on available resources and programs as well as housing a U.S.-Africa trade promotion authority within a specific department could simply make engagement easier for both sides. Announcing and following through on such a plan at the Leaders Summit could be an exciting next step in deepening commercial ties.

The summit will prove an excellent opportunity for so many levels of engagement, and obviously all African countries will come with their own agendas and interests as well. Conversations surrounding trade will take place, but clear and detailed ideas for moving towards an enhanced trading relationship is what will be needed.

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[1]  “U.S. Export Fact Sheet,” U.S. Department of Commerce, International Trade Administration, May 2011 Export Statistics Released July 12, 2011. Online: http://trade.gov/press/press-releases/2011/export-factsheet-july2011-071211.pdf

• Zenia Lewis

  Researcher, Africa Growth Initiative

• Witney Schneidman

  Non-resident Fellow, Global Economy and Development, Africa Growth Initiative

  Witney Schneidman is a non-resident fellow at the Africa Growth Initiative in the Global Economy and Development program. Formerly, a deputy assistant secretary of state for African affairs, he focuses on U.S.-African relations, trade and investment issues in Sub-Saharan Africa and issues related to economic growth and prosperity on the continent.

  Sourced here  http://www.brookings.edu/blogs/africa-in-focus/posts/2014/07/24-deeping-trade-commercial-ties

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Leaders explore joint financing for LAPSSET project

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Written by KENNEDY KANGETHE

The leaders who attended a consultative meeting in Nairobi on Thursday were President Yoweri Museveni of Uganda, Prime Minister Hailemariam Desalegn of Ethiopia and President Salva Kiir Mayardit of South Sudan/PSCU

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NAIROBI, Kenya Jul 31 – Regional leaders are exploring ways to jointly finance the Lamu Port, Southern Sudan-Ethiopia Transport (LAPSSET) corridor project.

In a statement read by their host President Uhuru Kenyatta at the end of the meeting, the leaders noted that the seven components of the LAPSSET project require an estimated $24.5 billion (Sh2 trillion) – for the Lamu Port alone with its 32 projected berths costing $3.1 billion (Sh272 billion).

“With the large sums involved, it was clear to us that a joint approach that is innovative will be required for implementation,” the leaders said.

During the meeting, the leaders explored the complexities of shortening the period between project conceptualisation and the realisation of a sustainable financial model that will deliver implementation.

“We sought to learn from the African Development Bank’s Africa50 Infrastructure Fund approach, and how our joint efforts can help make a compelling business case to private sector players,” they said.

The four regional leaders said their discussion was especially informed by the upcoming Africa-USA Summit on August 4 to August 7 that will allow them a chance to engage with American investors on the LAPSSET project.

“This is a continuation of similar engagements that are being held with investors from across the Middle East and the Indian Ocean Rim,” they said.

The leaders also dwelt on the need for regional peace and security to provide the conditions in which the LAPSSET project and many others will deliver the full benefits of growth and equity to the region’s progress.

The project involves the development of a new transport corridor from the new port of Lamu through Garissa, Isiolo, Mararal, Lodwar and Southern Sudan.

This will comprise of a new road network, a railway line, oil refinery at Lamu, oil pipeline, Isiolo and Lamu Airports and a free port at Lamu (Manda Bay) in addition to resort cities at the coast and in Isiolo. It will be the backbone for opening up Northern Kenya and integrating it into the national economy.

In the 2014/2015 budget Treasury Cabinet Secretary Henry Rotich announced that Treasury had allocated Sh116 billion which would go towards all ongoing and new road projects in the country.

http://www.capitalfm.co.ke/business/2014/07/leaders-explore-joint-financing-for-lapsset-project/

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Transmission Line Built With Br273 Million Complete

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The Alamatta-Mehoni-Mekelle transmission line built with an outlay of over 273 million Birr is completed, said the Ethiopian Electric Power (EEP).

EEP External Relations Head, Misikir Negash said 141km long transmission line carries 230 kilovolt. The project, which is part of the Growth and Transformation Plan (GTP), would help channel the 300 mega watt generated from Tekeze and the 120 MW from Ashgoda Wind Farm to other lines. Of the over 273 million Birr allotted to the project, 85 percent was obtained from the Africa Development Bank as a long-term loan and assistance, and the remaining covered by the Ethiopian government.

The project was executed by Kalpatur, an Indian company, the head said. According to Misikir, the electric power demand of Ethiopia is growing on average by 35 percent as its economic growth is rapid and continuous. Electric power generating infrastructures are being expanded to meet this, he added. The goal of the GTP is to increase the electricity coverage of the country, which is 55 percent, to 75 percent, he noted. Ethiopia has the potential to generate over 1 million MW from water, wind and as geothermal energy.

http://allafrica.com/stories/201408010844.html

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UK extends £17 mln for tax, audit program

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The United Kingdom extended on Friday, August 1, 2014 a grant amounting to £17 million to address constraints related to tax, audit and transparency both at federal and regional levels.

Finance and Economic Development State Minister Ahmed Shide and Julius Court, Head of Office of Department for International Development signed the Memorandum of Understanding.

Speaking on occasion, Ahmed appreciated the support of the government of the United Kingdom. He said the UK has provided 300 million pounds on average every year to support various development activities in Ethiopia.

According to the State Minister, the Department for International Development is the big donor in various development projects and programs of Ethiopia; and the two countries have been working to strengthen their trade and investment relations.

Julius Court, Head of Office of Department for International Development, on his part said the government of United Kingdom will work with the government of Ethiopia on tax, audit

and transparency, in addition to the cooperation the countries have in health, education and infrastructure.
He said the United Kingdom Department for International Development will extend the necessary support for the realization of the program in Ethiopia.

http://www.waltainfo.com/index.php/editors-pick/14379-uk-extends-p17-mln-for-tax-audit-program-

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India’s Allanasons to Invest $20 Million in Ethiopian Meat Plant

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By William Davison Aug 1, 2014

Allanasons Ltd., an Indian food company, plans to invest $20 million in a meat-processing plant in Ethiopia as it seeks to take advantage of a large population of naturally fed cattle and sheep.

The Mumbai-based producer has been allotted land in Adami Tulu in Oromia region, about 170 kilometers (106 miles) south of the capital, Addis Ababa, where it will build a facility to produce 70 metric tons of meat products a day, said Aman Khan, head of Ethiopian operations.

“Ethiopia has the largest livestock population in Africa and the demand for meat proteins continues to increase globally, so we feel it is the right decision to invest in the livestock sector here,” he said in an e-mailed response to questions today. Allanasons is India’s largest exporter of processed food and commodities, according to its website.

The Horn of Africa nation’s estimated livestock population of 49 million cattle, 25 million sheep and almost 22 million goats directly contributes 15 percent to 17 percent of gross domestic product, according to the Ethiopian Agricultural Transformation Agency. Foreign sales earn about $150 million a year, or 10 percent of exports, and another $300 million of livestock may also be illegally exported, it said.

While veterinary and feeding practices should be improved in Ethiopia, the absence of growth hormones and antibiotics causing “major concern” for the industry is an advantage, Khan said. “The quality of meat of Ethiopian livestock should be considered good,” he said.

Officials need to address skilled labor shortages and poor transport infrastructure and cold chain systems to improve Ethiopia’s competitiveness, he said. “We feel that the government should consider supporting the meat industry in a more dynamic way considering the stiff competition,” Khan said.

http://www.bloomberg.com/news/2014-08-01/india-s-allanasons-to-invest-20-million-in-ethiopian-meat-plant.html

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Youth Playing Significant Role in Dev’t of Ethiopia: NPC

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The close to thirty percent youth of the total population of Ethiopia play substantial role in the development of the country, the National Planning Commission of Ethiopia (NPC) said.

Speaking at the 21st anniversary of the official launching of the National Population Policy and the commemoration of World Population Day, Acting Director of Population and Development Directorate of the National Planning Commission of Ethiopia, Fikre Gesso, said the 29.5 percent of the total population, which is 24.7 million, are young people between 15 and 29 years old and play a significant role in the country’s socio-economic and political development.

According to him, the increasing number of youth does not affect the country as they are additional resource. Ethiopia is following a policy of engaging the youth to work place, which is enabling to the growth of local investment and increasing saving culture, Fikre noted.

The government of Ethiopia introduced a youth policy in 2004 with the objective of encouraging the active participation of the youth in building a democratic system and good governance as well as the economic, social and cultural activities in an organized manner, to enable them to benefit fairly and equitably from socio-economic development outcomes, the acting director elaborated.

Deputy Commissioner of National Planning Commission with the rank of State Minister, Getachew Adem, on his part said the country is going through a demographic transition with fewer younger dependents, fewer older dependents and the largest segment of population of productive working age.

The young age dependency ratio of the country has declined dramatically from 88.4 in 1994 to 75 in 2012, leading to the demographic dividend, he said.

According to ENA, the 2014 World Population Day was observed on Wednesday, July 30, 2014 here in Addis Ababa under the motto “invest in young people”.

http://www.waltainfo.com/index.php/explore/14371-youth-playing-significant-role-in-devt-of-ethiopia-npc

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Gambella set to reap 4 million quintals output in EC 2006/7 crop season

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Utmost efforts are underway to reap about 4 million quintals of agricultural output in Gambella Regional State in 2006/7 crop season, according to the regional state agricultural development bureau.

Bureau Agricultural Input and Marketing Process Owner, Alemayehu Tadesse, made the remark at a training organized for agricultural development agents as well as model farmers and semi pastoralists in Itang Woreda.

“Coordinated efforts are being made to raise agricultural productivity in the region to 4 million quintals in 2006/7 crop season from 1.4 million quintals at present,” he said.

He said a lot is expected from agricultural development agents, farmers and semi pastoralists for the attainment of the target.

Deputy Speaker of Gambella Regional State Council, Tito Hawariat, on his part said all stakeholders need to take active part in the efforts to defeat poverty.

More than 1,400 agricultural development agents and 1,800 model farmers and semi pastoralists attended the training, it was learnt.

http://www.waltainfo.com/index.php/explore/14360-gambella-set-to-reap-4-mln-quintals-output-in-20067-crop-season

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Houston Forum Can Open New Chapter in Ethio-American Business Relationship: MoFA

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A forum that can open a new chapter in Ethio-American business and African-American business relationship in general is underway in the US, according to the Ministry of Foreign Affairs (MoFA).

Spokesperson of Ministry of Foreign Affairs, Ambassador Dina Mufti, told journalists that the forum kicked off today in Houston, Texas. The Ethiopian high-level delegation with more than 100 members is led by President Mulatu Teshome.

The delegation would explain the investment and trade opportunities that exist in Ethiopia to their counterparts attending the forum, he added.

According to the spokesperson, two days after the Ethio-American Business Forum will be held Afro-America Leaders’ Conference. Some 50 African leaders will take part in the conference that will discuss US’ contribution to peace and security in Africa, as well as its participation in investment and trade.

The leaders will simultaneously discuss on the possibility of the extension of AGOA, it was indicated.

Meanwhile, a Tigrayan Diaspora Festival aimed at involving Tigray born persons living abroad in the development of the state will be held from July 31- August 6, 2014 in Mekelle, Tigray State, Ambassador Dina disclosed.

He said the festival will open an opportunity to the diaspora to engage in the socio-economic development of the state.

According to him, a symposium that discusses quality of health, quality of education, good governance, investment, and technology transfer will be held during the festival.

http://www.waltainfo.com/index.php/explore/14355-huston-forum-can-open-new-chapter-in-ethio-american-business-relationship-mofa

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Dairying: A way out of poverty

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Posted on July 30, 2014 by Fanos Mekonnen

Ato Nurhussien with the first born cow of his first cow

For many poor households, dairying is considered a powerful pathway out of poverty. Marketing of dairy products, however, remains a major challenge to the realization of this potential. In Ethiopia, this challenge is exacerbated by the absence of structured marketing channels and strict religious observance by Orthodox Christians who do not consume animal products during fasting days and seasons. Despite such challenges, there still exist windows of opportunities to exploit niche markets and create wealth. The ability to exploit these markets to a large extent depends on one’s stamina and innovation in establishing reliable market outlets for dairy products.

We want to demonstrate the credibility of this using evidence from a dairy farmer in Agula’a, a small town located 30km north of Mekelle in Tigray region of northern Ethiopia.

Nurhussien Aligoshu is a dairy farmer who has never had a formal education in agriculture and has had no prior exposure to modern dairy farming. His first experience in dairying was in 2006 when a local organization offered him some seed money to purchase a crossbred dairy cow. Nurhussien was able to expand his crossbred dairy herd from 1 to more than 15 cows in just 8 years. His daily milk sales fluctuate between 30 and 70 litres per day depending on demand. Over the same period, Nurhussien’s monthly income from the sale of milk grew from barely 500 Birr to 15,000 Birr.

In addition to managing his dairy cows, Nurhussien has successfully organized and led a dairy marketing cooperative named ‘Daero‘ (with 30 active members) that has been able to find niche markets for liquid milk. Daero cooperative has approved a binding by-law which stipulates that members are not allowed to sell water-adulterated and coagulated/clotted milk. A fine of up to 500 Birr and cancellation of membership rights are imposed on offending members.

The by-law also requires members to participate in various committees which are assigned with diverse tasks. The marketing committee has the sole responsibility of identifying potential milk and heifer markets. The quality control committee oversees the maintenance of herd records and collection of good-quality raw milk to be delivered to cafés, hotels, and restaurateurs through trusted milk collectors/distributors who have established an elaborated business relationship with the dairy marketing cooperative. The selling of replacement heifers, which earns up to 30,000 Birr per heifer, within and outside Tigray, is also another income source enjoyed by the members.

The successful experience of Nurhussien and his fellow cooperative members clearly demonstrates the potential of dairy in boosting income and creating wealth for people with limited options. Members of the dairy marketing cooperative are able to engage in dairying with a clear vision and have managed to create a low- risk environment for dairy farmers. Success came from their overall cooperation, realistic organizational and institutional interventions, sharing of risks, minimizing of ad hoc milk sales and establishing of reliable marketing links with milk collectors/distributors.

In view of the ever-increasing herd size and volume of milk produced by the marketing group members that necessitated other market outlets, the Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project identified potential clients and facilitated market linkages with large institutional milk consumers. LIVES also collaborates with Nurhussein and other members of the dairy marketing cooperative to test improved dairy technologies such as simplified corn silage using plastic bags.

Written by Yayneshet Tesfay (PhD) with contributions from Dawit Woldemariam and Gebremedhin Woldewahid.

http://lives-ethiopia.org/2014/07/30/dairying-in-wealth/

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These university lecturers will go on to become local trainers and Business Development Services advisors after completing an intensive six-day entrepreneurship training course supported by UNDP.

Aynalem Ayele is a young woman brimming with confidence. “Ayni’s Design,” her small jewelry and clothing design shop in the heart of Ethiopia’s capital, Addis Ababa, offers creative designs of leather products, incorporating cultural motifs and items into everyday products for the young and savvy urban customer.  

Aynalem just completed an intensive six-day entrepreneurship and business training course as part of a UNDP-supported programme to accelerate the development of the private sector across Ethiopia.

As she reflects on expanding her business, Aynalem says excitedly that the training course helped her understand one important thing that other courses did not: “How you calculate ahead your business risks.”

UNDP provided US $6 million to the $26 million Entrepreneurship Development Programme for Ethiopia, launched in 2013 by the country’s prime minister, Hailemariam Desalegn, who remarked that “the acute lack of social capital and particularly that of entrepreneurship skills (…) stands in the way of ensuring rapid industrial growth.”

Girum Tariku, an Ethiopian in his late 30s, joined the programme after having been forced to file for bankruptcy. Following the training, he opened a printing and communication company. He is both the director and a major shareholder of the firm, and provides employment for six young people.

“I took the entrepreneurship training and it really helped me to translate my vision into clear workable objectives,” Girum said. His business, started with less than $1,500, now boasts an expanding capital asset of over around $52,000. Girum speaks of one day becoming a major player in the East African private enterprise scene.

Recent rollouts have helped introduce the programme to budding entrepreneurs and reached out to university lecturers all over the country, providing them with basic entrepreneurship skills during trainers’ workshops.

In addition to financing the scheme, UNDP identified similar programmes in Ghana and brought in trainers from that country to teach participants.

“This country is on the cusp of a major development transformation,” says UNDP Resident Representative Eugene Owusu. “In Africa, Ethiopia is the country to watch!”

The programme is expected to help 200,000 entrepreneurs through skills training and business advisory services over a period of three years.

To ensure the full implementation and sustainability of the programme, 25,000 additional people will be trained as trainers and a further 20,000 as business advisors.

Ethiopia is currently implementing the first of three five-year strategic plans to achieve Middle Income Country status by 2025, and the country is on track to meet the Millennium Development Goals on halving poverty by 2015.

Micro- and small businesses are expected to play a strong role in this transformation and to become a spring board for developing a vibrant private sector.

Around 1 million jobs have been created annually due to the focus on supporting micro and small enterprises in the country, with official reports indicating that 40 percent of the new jobs go to women. Latest official figures place urban unemployment rate at 17.5 percent, while youth unemployment is 23.3 percent.

http://www.undp.org/content/undp/en/home/ourwork/povertyreduction/successstories/supporting-young-entrepreneurs-in-ethiopia/

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Ethiopia sees ‘surge’ in MICE growth

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Sheraton Addis inner grounds

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The Africa Hotel Investment Forum recently announced it was moving its 2014 event to Addis Ababa.

The organisation said the move was prompted by a “surge in interest from sponsors” leading to a need for a bigger space. It will now be held at the Sheraton in September. This reflects growth in the country’s nascent meetings, incentives, conferences and exhibitions (MICE) activities.

The African Union Commission is also based in Addis, in the striking, 100m-tall AU Conference Centre complex, built and funded by the Chinese. The United Nations Conference Centre has a wide choice of events spaces; and international hotels with MICE facilities include Sheraton, Radisson Blu, Hilton and Intercontinental.

A growth in summits and conferences taking place in Ethiopia has prompted Ethiopian Airlines’ in-house tour operator, Ethiopian Holidays, to develop MICE services alongside its leisure products. The operator can capitalise on its leisure portfolio for MICE venues – such as the handsomely-appointed Haile Resort overlooking Lake Hawassa, owned by Olympic gold medallist runner Haile Gebrselassie.

Other venues include the Kuriftu group’s Diplomat restaurant in Addis; its luxury lakeside spa resort in Debre-Zeit; and in Ziway, its excellent Wine House and Restaurant – in partnership with the nearby wine estate run by leading French vintner Castel.

http://buyingbusinesstravel.com/news/3022894-ethiopia-sees-%E2%80%98surge%E2%80%99-mice-growth

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 Ethiopia to finalize Sustainable Tourism Master Plan

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PRESS RELEASE

Addis Ababa, 29 July 2014 – The Federal Democratic Republic of Ethiopia is in the process of formulating its Sustainable Tourism Master Plan (STMP). The STMP is an initiative currently being developed through the technical support provided by the Sub-Regional Office for Eastern Africa (SRO-EA) and the Division for Regional Integration and Trade (RITD), in partnership with the Ministry of Culture and Tourism. The process of formulating the S TMP has entailed extensive field missions across the country, in-depth interviews with key stakeholders drawn from various sectors including public, private, professional organisations, civil society, regional government officials and academia. In addition, two regional consultative meetings have been already been held in Mekele and Dire Dawa and one more is scheduled to take place in Addis Ababa between 30th and 31st of July 2014. It is expected that following the field missions, interviews with stakeholders and the consultative meetings, a zero draft STMP will be prepared within one month which will then be subjected to national validation meeting to pave way for the preparation of the final draft of STMP.

The STMP is part on-going process of the implementation of the Inter-Governmental Authority on Development (IGAD) STMP. The IGAD STMP was informed by a regional tourism study commissioned by UNECA SRO-EA in 2010 and the green light for its formulation approved at the 15th meeting of the Intergovernmental Committee of Experts (ICE) of SRO-EA that took place in Djibouti, between 21st to 24th February 2011, whose main focus was on tourism under the theme Towards a Sustainable Tourism Industry in Eastern Africa. The IGAD STMP has since been completed and was officially launched the IGAD Tourism Inter-Ministerial forum held in Nairobi, Kenya by His Excellency Uhuru Kenyatta in December last year. In his opening remarks the President observed that ‘it is sad to note that our continent’s share of the global tourism industry stands at 52.4 million or 5.1% of
international arrivals, which translates to 33.6 billion US dollars or 3.1% of international tourism receipts.’ The IGAD STMP, among others, strongly recommends that member states align their respective tourism development instruments to the regional framework.

The formulation of the STMP for the Federal Democratic Republic of Ethiopia is indeed timely given the current prioritisation of the industry in the country’s development agenda following the establishment of National Tourism Transformation Council, chaired by His Excellency the Prime Minister, Hailemariam Desalegn, and the Ethiopian Tourism Organisation which is to spearhead tourism product development and marketing. The industry is, further, identified as a key sector in both the 1st and 2nd Growth and Transformation Plans. The identification of the sector as such is due its strong potential to bring about meaningful socio-economic development owing to the fact that such potential remains largely untapped. For instance, in terms of the prevailing cultural and heritage resources, the country is ranked at position 33 globally, above Egypt which is ranked 39th, and is regarded as one of the safest countries in the world. Yet, despite its current challenges, Egypt continues to draw over 9 million international tourist arrivals annually compared to the country’s 550 000 as of last year. Nonetheless, the industry still
contributes 12.3% of the GDP, is a leading foreign exchange earner and a key sector for both domestic and foreign investment valued at ETB 16.38 billion in 2013. The industry is also a one of the leading employers generating over 2.4 million jobs both directly and indirectly.

By embracing the IGAD STMP, which among others, advocates for both inter and intra-regional tourism, the Federal Democratic Republic of Ethiopia is, therefore, undertaking bold steps in the right direction of regional integration through the promotion of trade in services and subsequently towards Continental Free Trade Area.

Issued by:
ECA External Communications and Media Relations Section
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: ecainfo@uneca.org
www.uneca.org

http://www.ethiosports.com/2014/07/29/ethiopia-to-finalize-sustainable-tourism-master-plan/

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Kefi Minerals Preparing Tulu Kapi Mine Licence Application

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LONDON (Alliance News) – Kefi Minerals PLC Thursday said it is preparing a mine licence application for its Tulu Kapi gold project in western Ethiopia, following promising exploration results.

In a definitive feasibility study update, the company said recent drilling and trenching continues to confirm the previously modelled mineralisation, and an independent review of the resource model is underway.

Kefi said this milestone will be followed by a new mine plan and JORC-compliant reserves estimate, which are required to reactivate the Mining Licence Application by the end of 2014 and trigger construction in 2015.

JORC is the Joint Ore Reserves Committee, which provides mineral-resource classification schemes.

The company said reverse circulation infill drilling continued to hit strong gold mineralisation at the site, with results including 9 metres at 4.24 grammes per tonne of gold and 13 metres at 3.21 grammes per tonne of gold.

Last month, KEFI Minerals bought Nyota Minerals Ltd’s remaining 25% in the Tulu Kapi gold project for GBP1.5 million in cash and shares, having bought the first 75% in December 2013 for GBP4.5 million.

Kefi Minerals shares were quoted up 1.8% at 1.40 pence Thursday morning.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

http://www.lse.co.uk/AllNews.asp?code=qm9vl00y&headline=Kefi_Minerals_Preparing_Tulu_Kapi_Mine_Licence_Application

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US-Ethiopian Summit concludes successful and US companies to invest billions in Ethiopia

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Tigrai Onlne – August 04, 2014

A high level Ethiopian delegation have concluded a very successful ‪US – ‪Ethiopia Business and Investment Summit in the United States. The summit was held in the American cities of Houston in Texas and ‪‎Los Angeles the biggest city in the state of California.

Above photo shows the Ethiopian Foreign Minister Dr. Tedros Adhanom and Ethiopian President Dr. Mulatu Teshome at the US-Ethiopian Summit.

The Ethiopian delegation which was led by the Ethiopian President Dr. Mulatu Teshome and the Ethiopian Foreign Minister Dr. Tedros Adhanom had extensive meetings with investors and business leaders in two of the biggest cities of the United States. The main aim of the summit was to show Ethiopia is ready for investing and invite big businesses and investors to come to Ethiopia to invest.

At the Summit Mr. Brien Morgan, managing partner of Detente Group announced a three billion US dollars investment on wind energy in Ethiopia. In addition, KKR Group announced to double its investment on flower investment in Ethiopia. Kohlberg Kravis Roberts (KKR) an American private global investment firm is investing $200 million dollars in Afriflora in Ethiopia. Salim group submitted a proposal to establish a household appliances assembly plant in our country. Many others have shown strong interest to invest in Ethiopia. “The outcome of the summit exceeded our expectations and we are very happy” said the Ethiopian Foreign Minister Dr. Tedros Adhanom after the summit.

Ethiopia is one of the fastest non-oil economies in the world. The Ethiopian economy is growing at a fast pace attracting many investors from around the world.

Chinese and Indians have dominated African investment in general and Ethiopia in particular. Investors from those countries have invested in construction, agriculture, horticulture, textile and other manufacturing sectors in Ethiopia.

Some companies from the United States have been involved in Ethiopia, but compared to the Chinese it is insignificant. America has realized now they are missing a golden opportunity in Africa and they are franticly trying to catch up with Easterners. Some say the Americans have lost already and what they are doing is too little, too late.

The investment of companies from the United States will create thousands of jobs and propel the Ethiopian economy to the next level. Despite the Eritrean regime’s unrelenting efforts to destabilize it, Ethiopia is the most stable country in the Horn of Africa.

The main reason for investors to pour in billions of dollars to Ethiopia is because they know the country is secure and they can trust the government and they have confidence in the Ethiopian system.

http://tigraionline.com/articles/usa-ethio-summit-2014.html

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African leaders seek private investors for LAPSSET project

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Tuesday, 05 August 2014

http://www.africanreview.com/manufacturing/engineering/african-leaders-seek-private-investors-for-lapsset-project

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Ethiopia Draws Asia Manufacturing Interest

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The interior of George Shoe Factory, located in the industrial zone of Addis Ababa, Ethiopia.

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For a long time, economists have discussed East Africa’s chances to “get a foot in the door” of global manufacturing. China, as the world’s leading hub for mass production, has become expensive due to rising labor and energy costs. Meanwhile, East Africa offers a large young and cheap labor force. Until recently though, delays at ports, bad roads, power outages and political instability have prevented a shift from happening. But now, the Ethiopian government is building new industrial mega-zones that have successfully attracted some foreign investors who are moving manufacturing from China.

He Pingting, who goes by the American name Claire, gives a tour of the new factory building of George Shoe PLC. The Taiwanese shoe manufacturer started operating some months ago and recently exported its first container: 15,000 pairs of pink and light-blue women’s shoes made in Ethiopia.

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Workers construct shoes at the George Shoe Factory, located in the industrial zone of Addis Ababa, Ethiopia.

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He Pingting says the main challenge is the language barrier.

“We have so many stitchers. So, there are so many skills they need to learn. But, you know, teach them is a little bit hard because the language. …but no matter, we have a translator here and they’re very collaborative,” she said.

The factory is filled with a scent of glue. Young men and women in blue overalls sit in front of sewing machines and along assembly lines. Seven hundred Ethiopians work under Chinese and Taiwanese supervision: eight hours a day, six days a week for 800 to 1,200 Birr a month, which is about $60 (US), a fraction of a laborer’s wage in China.

Bole Lemi industrial zone

The factory building lies on the outskirts of Addis Ababa in a new gigantic 156-hectare industrial zone, called Bole Lemi.  It is only one of a handful of new planned zones across the country. After the completion of the second phase – another 186 hectares – Bole Lemi may offer up to 100,000 jobs.

Ethiopia is feverishly working on becoming the world’s newest hub for manufacturing and has good chances.

“Pakistan, Indian, Taiwan, Korean, Chinese. All are there,” he said. “You see the under-construction area, sheds are already contracted out. All leased now, all are leased. For instance this one, about 11,000 square meters, the next one 5,500 square meters. And we focus on this area for garment, especially garment, for garment and shoe, glove,” said Shiferaw Solomon, the director-general of the Ethiopian government’s Investment and Industrial Zone Corporation.

Behind Shiferaw Solomon outside the factory building, construction workers are working on two dozen new sheds that are to be ready by the end of August, a bit behind schedule. According to the Ministry of Industry, 20 foreign companies have secured factories at the site.

Fast growing economy

Ethiopia currently has one of Africa’s fastest growing economies. Unlike others, it is not driven by natural resources, but large public investments with foreign money. Shiferaw is optimistic that the government’s new industrial mega-zones and expansion of the textile and leather industry will give the country another push.

“We have abundant lands, abundant labor forces, materials, raw materials. Now, we’re at a stage of opening up,” said Shiferaw Solomon.

Driving out of the industrial zone, he foresees the potential his country has for the entire region. Already a rising political power, with a massive peacekeeping force in Somalia and other parts of the region, Ethiopia – Africa’s second-most populous country with more than 90 million people – is now also heading towards a new economic age.

“I’d like and I hope to see in the future Ethiopia is one of the competing countries, interesting countries and it serves as a hub for African at large,” said Shiferaw Solomon.

But the development comes with a price. Shiferaw says Addis Ababa and the entire country will suffer from power shortages for one or two years when all companies are operating.

http://www.voanews.com/content/ethiopia-drawing-asia-manufacturing-interest/1970953.html

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U.S. energy investment in Africa starts to make headway

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   Author: E.G.Woldegebriel

ADDIS ABABA (Thomson Reuters Foundation) – As Washington hosts the U.S.-Africa Leaders Summit this week, an ambitious but low-profile energy programme announced by President Barack Obama in June 2013 is set to move back into the spotlight.

Power Africa is a U.S. government-led initiative around two-thirds funded by the private sector that aims to double the number of people with access to power in sub-Saharan Africa by 2018, connecting 20 million new customers.

When launched, the programme, focused initially on six countries – Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania – set a target of adding more than 10,000 megawatts (MW) of “clean, efficient” electricity generation capacity.

The U.S government has committed more than $7 billion in financial support and loan guarantees for the first five-year phase, while private-sector financial partners have promised to invest $14 billion, according to the scheme’s website.

Rajiv Shah, the administrator of the U.S. Agency for International Development (USAID), told Reuters ahead of the Aug. 4-6 summit new support for Power Africa would be announced worth “several billions of dollars”, and the programme’s aspirations would be more than doubled, as goals are already being met.

It is also likely to be expanded to other nations, Reuters reported.

So far, Ethiopia appears to be taking the lead in the Power Africa programme. The East African nation hopes to boost its capacity to 10,000 MW by the end of 2015, from the current level of 2,200 MW, in part with funding from Power Africa.

The government’s goal is to reach 37,000 MW by 2037 in order to meet demand from its population of more than 90 million – around half of whom lack access to electricity – and its expanding industries.

HELP WITH GEOTHERMAL

Under the Power Africa programme, the Ethiopian government signed an agreement last October with Reykjavik Geothermal, an Icelandic company, to build a 1,000 MW geothermal power plant in the Corbetti area of southern Ethiopia.

According to Amy Beeler, head of private-sector and energy-sector development at the Ethiopian office of the United States Agency for International Development (USAID), the project aims to generate 500 MW by 2018, with the remainder coming online by 2023. The total cost of $4 billion will be funded mostly by U.S. government agencies including USAID, with some finance from Reykjavik Geothermal. 

The programme has negotiated a power purchase agreement for at least 25 years with the state-owned utility, Beeler said. It is the first time in Ethiopia that an independent power producer will sell electricity to a state utility, and is the largest such scheme in Africa.

According to Beeler, Power Africa is not only about building power plants, but also includes training of engineers and government officials, as well as other infrastructure projects.

Gossaye Mengiste, an official at the Ministry of Water, Irrigation and Energy, said Ethiopia generates just 7.3 MW of energy from its only geothermal plant, Aluto Langano, which dates back to the 1980s. By contrast, the country currently has 171 MW of installed capacity from wind and about 2,000 MW from hydro.

“Although geothermal energy potential is in abundance in Ethiopia, its initial cost is larger than hydro or wind energy, begging the question: is it cost-effective for a poor country like us?” Mengiste asked. That suggests outside help is necessary, he added, referring to the Power Africa scheme.

COMPETITION WITH CHINA?

African nations are increasingly looking eastwards for development partners, and especially to China. Roads and buildings have been constructed with Chinese help, and Chinese-made cars and mobile phones are becoming a common sight.

Chinese involvement in Ethiopia’s energy sector ranges from the controversial 1,800 MW Gibe III hydropower project to a $1 billion credit for a power transmission line for a 6,000 MW hydro dam being built on the Blue Nile.

This has led some to question whether the Power Africa scheme is an attempt by the United States to catch up with China.

Besides Ethiopia, the continent’s most populous country, Nigeria, has also recently signed a memorandum of understanding with the U.S. government under the initiative. But the other four countries in the programme have yet to progress that far.

Michael C. Battle, a former U.S. envoy to the African Union, rejected suggestions his country is in a competition with the world’s second-largest economy to invest in Africa. Battle said Barack Obama’s interest in the continent predated his becoming U.S. president.

“It’s absolutely true that China is doing a phenomenal amount of work on the African continent, building infrastructure projects that are tremendous,” Battle said. In contrast, the main focuses of the U.S. aid approach to Africa have been eradicating disease, increasing educational opportunities, reducing poverty and creating a context for good governance, he added.

The Power Africa scheme is mainly a way for the U.S. government to back private firms that want to invest in the power sector in Africa, according to Battle.

AIM FOR SELF-SUFFICIENCY 

While the U.S. and other nations may have devised strategies to help Africa meet its infrastructure requirements, some development partners say that, in the long term, countries must meet their own needs.

Manabu Momita, a project manager at the Japan International Cooperation Agency, is working on the expansion of the Aluto Langano geothermal project, which is also being funded by the Ethiopian government and the World Bank. The goal is to increase the country’s geothermal capacity by 70 MW.

Momita emphasised that Japan’s assistance should be the beginning of a process that will lead Ethiopia towards self-reliance.

“We’re just starting geothermal development in Ethiopia, but (Ethiopia should not) try to rely on foreign governments’ assistance,” Momita said. Rather it should give “strong support” to its own development, he added.

E.G. Woldegebriel is a journalist based in Addis Ababa with an interest in environmental issues.

http://www.trust.org/item/20140804135508-h2i6m/

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Japan considering introduction of advanced Kaizen in Ethiopia

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- Evaluation confirms successful implementations so far

The philosophy for continuous improvements of quality and productivity, kaizen, made Ethiopia the third generation implementer, after Japan and Singapore, and it is getting new heights as Japan, the sponsoring nation, might consider Ethiopia to advance in kaizen for the next, more complex phase. 

Kaizen was introduced in Ethiopia in 2009 following the enquires of the late Prime Minister Meles Zenawi, which has been in practice from 2012 onwards, is planned to continue for some five years beginning early 2015, according to Tanaka Akihisa, director of he private sector division at the Japan International Cooperation Agency (JICA). He told The Reporter that the next phase of kaizen will see more advanced techniques that will assist the improvements of the manufacturing subsector. “Ethiopians have absorbed kaizen very fast. So we have successful results and for the next phase we will introduce the next advanced kaizen in Ethiopia,” he said.

Ethiopia, since 2012, has made improvements in terms of cost reducing production systems and avoiding rejects, according to Akihisa. The improvements and the enthusiasm from the Ethiopian side in practicing kaizen prompted Japan to boost its management philosophy. The recently aired advertisement via CNN is one that can be mentioned. CNN aired how kaizen is making changes in Ethiopia’s manufacturing sector.

Getahun Tadesse, director general of Ethiopian Kaizen Institute (EKI) told reporters on Friday at his office that the second phase of kaizen implementation would give priorities to the manufacturing, logistics and construction sectors. The export and import substituting commodities will have the upper hand of the Japanese kaizen in the production and quality spectrums. Akihisa cornered that following the evaluation results of kaizen implementation, his government is looking at Ethiopia to obtain the advanced stage, which giant companies like Toyota and the likes have implemented.

Both Akihisa and Getahun signed a terminal evaluation document on Friday agreeing on recent developments. According JICA reports, 250 companies have been trained for kaizen and some 30 companies according to EKI have attained some 37 percent improvements in the production activities.  So far, some 33 thousand management staff and workers are reported attending kaizen trainings and capacity building programs.

Gethaun said that the 33 universities and Technical and Vocational Education and Training (TVETs) institutions are among the targeted ones in the second phase implementation of kaizen. Monetary terms remain undisclosed but as part of official development assistance to Ethiopia, the government of Japan is looking at Ethiopia to champion over some African counties way longer associated with kaizen than Ethiopia in the past. Currently, in addition to establishing a kaizen institute, Mekelle University has initiated a curriculum and master’s level training and in the future the long serving Addis Ababa University (AAU) will include doctoral degree programs specializing in kaizen.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2323-japan-considering-introduction-of-advanced-kaizen-in-ethiopia

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Ethiopia’s 2013-14 Exports Increase 6% on Jump in Oilseed Sales

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By William Davison August 05, 2014

Ethiopian exports rose 5.8 percent to $3.3 billion in the year through July 7 partly due to an increase in oilseed revenue, the country’s second-largest source of export earnings.

The Horn of African nation earned $642.7 million from mainly sesame and niger seeds during Ethiopia’s fiscal year, rising 46 percent from 2012-2013, according to an e-mailed statement from the Trade Ministry, citing data from the Revenues and Customs Authority. Africa’s biggest coffee producer received $718.8 million from sales of the beans, down 3.7 percent from a year earlier, as volumes dropped 4.1 percent.

Ethiopia’s government is trying to attract investment into processing agricultural products and diversifying the economy, with a goal to earn $6.6 billion from farming exports and $1 billion from textile and garment sales by mid-2015. The World Bank in May gave the country $250 million to help develop export-led manufacturing zones and boost the business climate.

Textile and clothing sales climbed 13 percent to $111 million in a nation where retailers such as Tesco Plc (TSCO) and Hennes& Mauritz AB (HMB) have begun sourcing the materials, the ministry said. Earnings from shoe sales jumped 57 percent to $28.8 million, according to the data. China’s Huajian Group is among companies investing in shoe manufacturing in Ethiopia.

The value of gold exports declined 21 percent to $456.2 million in 2013-14, while the sale of the leafy narcotic khat rose 9.5 percent to $297.4 million and shipments of flowers jumped 7 percent to $199.7 million, the Trade Ministry said.

Sesame Sales

The country is the world’s fourth-biggest grower of sesame. Foreign currency earned from sales of the seeds to China has to be deposited at the state-owned Commercial Bank of Ethiopia to secure loans from the Export-Import Bank of China.

Ethiopia’s trade deficit may widen to $8.9 billion in 2013-14 from $8.5 billion a year earlier due partly to the rising cost of imports for a government infrastructure program, the International Monetary Fund said in October.

The government should consider reducing the value of the currency by 10 percent in real terms, which may lead to a 5 percent increase in export earnings, the World Bank said last month. The government could also embark on policy changes to help boost the competitiveness of exporters, including easing “high” start up capital requirements, boosting electricity supplies and freeing up credit and foreign exchange, the Washington-based lender said.

To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net

http://www.businessweek.com/news/2014-08-05/ethiopia-s-2013-14-exports-increase-6-percent-on-jump-in-oilseed-sales

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Ethiopia Earns 245 Million USD from Horticultural Products

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The Ethiopia Horticulture Development Agency said 245 million USD was earned from export of flowers, vegetables and fruits during the just-ended Ethiopia fiscal year.

Agency Director-General Alem Woldegerima told Ethiopian News Agency that of the total revenue earned 199.74 million USD was secured from flowers, 40 million USD from vegetables and 6 million from fruits.

The Director-General, who recalled that the revenue from horticulture during the previous fiscal year was 230.5 million USD, said the performance of the just-ended year has exceeded the previous year by 6.4 percent.

Ethiopian flowers are mainly exported to Europe, according to Alem. He said the major consumer countries are the Netherlands, Germany, Belgium, and Norway.

Saudi Arabia, Japan, and the United States also import flowers. Fruits and vegetable are exported to Somalia and Djibouti, he added.

Currently, vast land is covered by horticulture, the Director-General stated.

Foreign investors are entering the country to invest in the horticultural sector, Alem revealed, adding that Israeli, Indian, Belgian and Kuwaiti investors are the majority of those. Dutch,Ecuadorian and Saudi are also following, it was indicated.

During the past Ethiopian fiscal year, a total of 1,119 hectares of land was given to foreign investors for the development of flowers, vegetables and fruits. Similarly, 100 hectares of land was given to local investors.

Sher Ethiopia from the Netherlands, Black Tulip and Fontana from Kenya and Esmeralda from Ecuador are reportedly either cultivating the land they secured or acquiring land.

According to ENA, more than 80 companies, most of them foreign-owned, are engaged in floriculture in Ethiopia, it was learned.

http://www.waltainfo.com/index.php/explore/14437-ethiopia-earns-245-million-usd-from-horticultural-products 

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Berwaqo to Export Camel Milk

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Berwaqo Milk Processing Plc, a one month old company, is preparing to export camel milk and its byproducts to other East African nations.

Currently the company processes 700 liters of milk every day. Yet it intends to eventually increase this number to 10,000 liters per day.

According to the General Manager and Owner of the company, Amir Muktar, Berwaqo is planning to export 40 percent of its total products to Djibouti, Hargessa and Somaliland. As to the rest of the product, it intends to sell it at Dire Dawa, Harar, Somali and Addis Ababa, Amir
furthered.

He added the company has secured a quality certificate from the Somali State Food, Medicine and Health Care Bureau and is hoping to acquire the same certificate from the Federal office.

Commenting on this he said, “The officials will come here and visit or factory. Hopefully, we will receive the certificate within the coming three days”.

USAID has decided to support the company in creating market for dairy producers and collectors as part of its Pastoral Resiliency Improvement and Market Expansion Project.

According to Capital, after it has been checked for qualifying in environmental compliance requirements, the company will secure a U.S $ 354,000 grant.

Amir commented, “We are pretty sure about the huge demand, camels’ milk is consumed daily to a large extent”. “Fortunately, the milk we collect from farmers is organic. This will help us to compete with other companies in the region.”

In addition to milk and byproducts, Berwaqo is planning to produce cosmetics from camels’ milk, Amir noted. He furthered, “Hopefully, we will start making cosmetics within the next three monts”.

According to Capital, a liter of camel milk is sold for 12 Birr in the local market.

http://www.2merkato.com/news/alerts/3171-ethiopia-berwaqo-to-export-camel-milk

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Unlocking the multi-billion dollar leather potential in Africa

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Africa contributes 21% of the total livestock production in the world yet it earns only 2.67% of the total global earnings from the multi-billion dollars industry.

COMESA Secretary General Sindiso Ngwenya attributes the poor earnings to low level of adoption and use of science, technology and innovation.

“The continent earns approximately US$4 billion from leather and leather products while globally the industry is greater than the sales of cotton, sugar, tea and meat combined earning over US$150 billion,” Ngwenya said. “This is despite being a bi-product of meat processing.”

In his statement delivered during the 4th Fourth Biennial Conference of stakeholders in agriculture and Network of Universities – called RUFORUM in Maputo, Mozambique Friday, 25 July 2014 Mr. Ngwenya said Africa’s supply of raw materials and semi-processed leather products was a low yield earner with minimum profits.

In order to advance Africa’s potential to become competitive in the leather and leather products sector, the Secretary General advocated for involvement of the local universities in enhancing research and technology to add value to the region’s agro-based commodities.

“Improvements in the leather tanning processes and designing of leather products will require research”, he said. “Development of Small and medium Enterprises tools will require research. Reverse engineering will require research. This is in addition to the development of technology to fabricate machinery for the leather industry.”

Ngwenya observed that even though COMESA has, over the last decade, recorded an annual real GDP growth of approximately 6.5 percent this growth has not led to the economic transformation. Low value adding economic activities and trade in raw materials is still prominent in our member states, he said.

In order to address this issue COMESA is developing an industrial policy that seeks to encourage countries to enhance their manufacturing sector and to add value to their primary produce. This is intended to improve the competitiveness of the industrial sector, thereby enhancing the expansion of intra-regional trade in manufactured goods and achieve structural transformation of the economies of its 19 Member States.

“This is easily attainable through the specialized institutions that already have the mandates to spear head these initiatives by working closely with the Universities both in the region and at global level”, he said.

COMESA Leather and Leather Products Institute (LLPI) based in Ethiopia has already developed strong linkages with Universities, Government and the Private sector under the Triple Helix approach which links the three institutions in the advancement of science, technology and innovation for industrial development.

“The development and implementation of the industrial policy will boost employment creation, particularly among our youth and ensure sustainable economic growth and poverty reduction in the region” Ngwenya said. It is estimated that the COMESA region alone has a demand of 365 million pairs of footwear and one billion square feet of leather.

Similarly, COMESA has developed the Seed Harmonization Implementation Plan (COMSHIP) under the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) with a view to developing the seed sector. This is aimed at advancing agricultural development along the value chain.

In order to deal with issues of biotechnology, COMESA is implementing a biotechnology programme alongside other initiatives that all require inputs from regional and international researchers, academics and professionals.

http://www.comesa.int/index.php?option=com_content&view=article&id=1259:unlocking-the-multibillion-dollar-leather-potential-in-africa-&catid=5:latest-news&Itemid=41

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IBM and Dow Collaboration Delivers Sustainable Solutions in Ethiopia While Building Employee Leadership Skills

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-  Company Employees Partner with International Medical Corps to Address Sanitation Issues in Ethiopia

MIDLAND, Mich., Aug 04, 2014 (BUSINESS WIRE) – Dow’s Leadership in Action (LIA) program and IBM’s Corporate Service Corps have come together with the assistance of nonprofit, PYXERA Global , to deliver sustainable solutions in Ethiopia while providing unique leadership development opportunities for participating employees.

Five employees from Dow and three from IBM will participate in a joint global pro bono project with International Medical Corps (IMC) that will promote and support a campaign to improve sanitation and hygiene behavior in the community of Wolayita. IMC delivers health care services to those impacted by war, natural disaster and disease with programs that focus on training and helping devastated populations return to self-reliance. Through this effort, Dow’s team will create a social marketing program to drive behavioral changes required to create sustained resilience – the ability of citizens and government to survive, thrive, or even avoid natural or man-made crises, such as illness, fuel and food shortages, storms or drought. IBM will assess, recommend, and design methodologies that can measure how resilient a community is, particularly in the realm of public health.

PYXERA Global facilitates these types of programs to aid companies entering new geographies. The nonprofit, which identifies high-impact organizations in emerging and frontier economies such as IMC, accelerates understanding of existing needs in these markets.

“Collaboration is instrumental in a project of this scope because no one company holds all the solutions to the world’s problems,” said Michelle Langley, Program Leader for Dow Sustainability Corps, Global Disaster Relief and STEM. “More than 35 percent of the world’s population lacks access to improved sanitation. By aligning strategies and leveraging each other’s employee talent, Dow and IBM can leave a lasting impact on the region.”

“By bringing together the top talent and emerging leaders at IBM and Dow, we are able to strengthen the impact we make on the community as well as deepen the experience for the employees, ultimately building lifelong relationships and sustainable solutions,” said Gina Tesla, Director, IBM Corporate Citizenship.

This project is just one example of how both companies offer unique leadership development opportunities to employees. In addition to the five Dow employees working with IBM, an additional 36 employees are working on projects that address health, education and commerce.

“International Medical Corps will be able to reach Wolayita community far more effectively as a result of this joint effort,” said Deirdre White, CEO of PYXERA Global. “Companies like Dow and IBM are playing a pivotal role in strengthening the ability of organizations throughout Africa to better serve communities. We’re seeing this across a host of issues areas from clean water and sanitation to infrastructure education, healthcare, and technology.”

Employees participating in LIA have worked virtually for several months in preparation for their trip to Addis Ababa, Ethiopia, in August to meet with their NGO partners. Dow and IBM employees have been collaborating during this time, together with PYXERA Global, in preparation for their sanitation awareness project. Both companies are building stronger community ties in the region and instilling long lasting skills for employees.

“When you lead a team there are no manuals or ‘how to’ documents. You have to use your experiences and make the best decisions at the time,” said John Kolmer, Dow Human Resources manager, Global Leadership Development. “This program gives people that real life experience by pushing them out of their comfort zone, and encouraging them to interact with people from different cultures and areas of expertise.”

Dow’s LIA is a collaboration between Dow Sustainability Corps (DSC) and Human Resources. DSC is part of Dow’s approach to meet the world’s most basic needs by matching interested and capable employees with NGOs, social entrepreneurs and local government agencies that need support for sustainable development projects, especially in emerging geographies and areas of growth for Dow. LIA leverages the strengths of DSC and the company’s Human Resources function to generate exceptional leadership development opportunities for participating employees and the NGO partners.

Follow Dow’s Leadership in Action program and project partnership with IBM’s Corporate Service Corps on Twitter by searching #DowLeads and #IBMCSC.

About Dow

Dow /quotes/zigman/224698/delayed/quotes/nls/dow DOW +1.39% combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow’s integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company’s more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com .

About IBM’s Corporate Service Corps

IBM’s Corporate Service Corps team members comprise some of IBM’s most talented employees, and provide skills to developing countries in disciplines that include information technology, research, marketing, finance, consulting, human resources and law. By the end of 2014, IBM Corporate Service Corps will have deployed 800 IBM employees for projects in South Africa, Ethiopia, Angola, Senegal, Tanzania, Nigeria, Ghana, Kenya, Morocco and Egypt. Since 2008, IBM Corporate Service Corps has dispatched approximately 2,500 IBM employees originating from 56 countries on engagements to 37 countries — making this pro bono problem solving program one of the world’s largest.

Follow IBM’s Corporate Service Corps on the CitizenIBM blog at www.citizenIBM.com and on Twitter, at @citizenIBM.

This Press Release contains information that may be or is privileged, confidential, proprietary or subject to copyright belonging to Dow or its affiliates. This information is intended solely for the use of the individual or entity to which it is addressed and any other use is unauthorized. If you are not the intended recipient of this information, this is notice that any retention, disclosure, distribution, copying or other use of this information is strictly prohibited and may be unlawful. Thank you.

SOURCE: The Dow Chemical Company

Dow
Jennifer Kitt , +1-989-636-9230
Media Relations
jnkitt@dow.com

http://www.marketwatch.com/story/ibm-and-dow-collaboration-delivers-sustainable-solutions-in-ethiopia-while-building-employee-leadership-skills-2014-08-04?reflink=MW_news_stmp

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Al Ghandi Auto Opens Representative Office in Ethiopia

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The United Arab Emirates (UAE) based automotive company, Al Ghandin Auto Group, opened a representative office in Ethiopia’s capital, Addis Ababa, for the purpose of serving the East African market. The company intends to go fully operational by the coming October.

CEO of the Group, Graham Turner, commented, “We are one of the world’s biggest General Motors dealers but now, currently the company deals with vehicles, motors, machines and construction equipment. We set up this office to understand what our customers want, explore the market and build our relationships”.

It was five years ago Al Ghandin started working with distributors. Nonetheless, it now sees the need to open an office in order to serve its customers in a better manner. In addition to this, the company is also interested in exploring other investment opportunities in Ethiopia.

Managing Director of Al Ghandi Investment Company, Buti Saeed Al Ghandi, noted the other reason for establishing the representative office is to forward in terms of investment and see opportunities the nation has to offer for the company.

Saeed noted he has met with different Federal Government officials from the Ministry of Finance and Economic Development, Ministry of Trade and the Privatization and Public Enterprises Supervising Authority (PPESA).

Al Ghandi’s representative stated his company wishes to move to the industrial sector in the long run and is planning to acquire an investment license.

Saeed explained, “A lot of the products we are selling, if they tend to get very popular here, we might think of convincing the original manufacturers to come here and do assembly here. That is long term strategy that is how we become part of your economy. We opened the office because we are looking at a very long term objective”.

Al Ghandin Auto Group has give divisions which offer automotive, industrial machines and equipment, car rental and leasing services, and vehicle testing facilities.

http://www.2merkato.com/news/alerts/3166-al-ghandi-auto-opens-representative-office-in-ethiopia 

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Ethiopia to finalize Sustainable Tourism Master Plan

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The Federal Democratic Republic of Ethiopia is in the process of formulating its Sustainable Tourism Master Plan (STMP). The STMP is an initiative currently being developed through the technical support provided by the Sub-Regional Office for Eastern Africa (SRO-EA) and the Division for Regional Integration and Trade (RITD), in partnership with the Ministry of Culture and Tourism. The process of formulating the STMP has entailed extensive field missions across the country, in-depth interviews with key stakeholders drawn from various sectors including public, private, professional organizations, civil society, regional government officials and academia. In addition, two regional consultative meetings have been already been held in Mekele and Dire Dawa and one more is scheduled to take place in Addis Abeba between 30th and 31st of July 2014. It is expected that following the field missions, interviews with stakeholders and the consultative meetings, a zero draft STMP will be prepared within one month which will then be subjected to national validation meeting to pave way for the preparation of the final draft of STMP.The STMP is part on-going process of the implementation of the Inter-Governmental Authority on Development (IGAD) STMP. The IGAD STMP was informed by a regional tourism study commissioned by UNECA SRO-EA in 2010 and the green light for its formulation approved at the 15th meeting of the Intergovernmental Committee of Experts (ICE) of SRO-EA that took place in Djibouti, between 21st to 24th February 2011, whose main focus was on tourism under the theme Towards a Sustainable Tourism Industry in Eastern Africa. The IGAD STMP has since been completed and was officially launched the IGAD Tourism Inter-Ministerial forum held in Nairobi, Kenya by His Excellency Uhuru Kenyatta in December last year. In his opening remarks the President observed that ‘it is sad to note that our continent’s share of the global tourism industry stands at 52.4 million or 5.1% of international arrivals, which translates to 33.6 billion US dollars or 3.1% of international  tourism receipts.’ The IGAD STMP, among others, strongly recommends that member states align their respective tourism development instruments to the regional framework.

The formulation of the STMP for the Federal Democratic Republic of Ethiopia is indeed timely given the current prioritization of the industry in the country’s development agenda following the establishment of National Tourism Transformation Council, chaired by His Excellency the Prime Minister, Hailemariam Desalegn, and the Ethiopian Tourism Organization which is to spearhead tourism product development and marketing. The industry is, further, identified as a key sector in both the 1st and 2nd Growth and Transformation Plans. The identification of the sector as such is due its strong potential to bring about meaningful socio-economic development owing to the fact that such potential remains largely untapped. For instance, in terms of the prevailing cultural and  heritage resources, the country is ranked at position 33 globally, above Egypt which is ranked 39th, and is regarded as one of the safest countries in the world. Yet, despite its current challenges, Egypt continues to draw over 9 million international tourist arrivals annually compared to the country’s 550 000 as of last year. Nonetheless, the industry still contributes 12.3% of the GDP, is a leading foreign exchange earner and a key sector for both domestic and foreign investment valued at ETB 16.38 billion in 2013. The industry is also a one of the leading employers generating over 2.4 million jobs both directly and indirectly. By embracing the IGAD STMP, which among others, advocates for both inter and intra-regional tourism, the Federal Democratic Republic of Ethiopia is, therefore, undertaking bold steps in the right direction of regional integration through the promotion of trade in services and subsequently towards Continental Free Trade Area.

 http://addisstandard.com/ethiopia-to-finalize-sustainable-tourism-master-plan/

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Sheraton Addis lays off over 60 employees

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The Sheraton Addis, the Luxury Collection hotel located off Taitu Street, has laid off over 60 of its employees who have been working there for up to 16 years, The Reporter learnt.

Some workers approached by The Reporter said they had been told to leave the hotel’s premises before dawn as their contracts had been terminated. Most of the employees were working night shifts before they were given their marching orders. They also indicated that they were forcefully escorted out by hotel security in the wee morning hours of July 28.

They also told The Reporter that they had been summoned to the Human Resources Department and given the contract termination papers before they were fully removed from the compound.

They also lamented that they found the hotel’s decision “shocking and overwhelming” as they claimed they “were thrown away from their duty, they have been working for over ten years with all due discipline and commitment.”

The Reporter’s repeated attempts to solicit comments from officials of the hotel were unable to bear fruit. However, it was understood from the letters of termination issued to workers that the hotel’s management decided to lay off these workers in order to keep the company’s image intact, which is frequently tarnished by unhealthy relationships among the management and the workers. The letter of termination, jointly signed by Director of Human Resource Department, Edna Tamondong and by the General Manager of the Hotel, Jean-Pierre Manigoff, also noted that the management’s harsh decision was “intended to safeguard the general safety of the industry.”

http://www.thereporterethiopia.com/index.php/news-headlines/item/2330-sheraton-addis-lays-off-over-60-employees

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ZTE in row with ERCA over taxes worth 920 million birr

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The Chinese telecom company undertaking multi-million dollar telecom projects in Ethiopia, ZTE (H.K) Limited Ethiopian Branch, has filed formal complaint to the office of the Prime Minister as well as the Ministry of Finance and Economic Development (MoFED) regarding 900 million birr tax claim that the Ethiopian Revenues and Customs Authority (ERCA) made against the company and the tax authority’s move to stop payments being made to ZTE by its contractor Ethio telecom.

ERCA claims that ZTE owed 900 million birr in unpaid taxes, penalties and interest out of the total sum of 920 million after the company settled the 20 million birr. Following that, the tax authority proceeded to writing a letter to the finance department of the contractor Ethio telecom to freeze payments that is made to the company.

Earlier this week, Ethio telecom’s corporate communication directorate head, Abdurahim Ahmed, confirmed that his company had received the letter from ERCA. According to Ethiopian Tax Law, ERCA reserves the right to order companies to stop payments or take other necessary measures to ensure tax compliance.

The company on its part did not deny that it was asked to pay only 920 million birr by ERCA, but said that the amount that was originally claimed went through a series of revisions following its appeal to the tax appeal committee. “The tax authority had made an audit on our company and had claimed around 920 million birr on April 21, 2014,” ZTE’s statement said.  But, the total amount of the claim also included penalties and interest payments apart from unpaid back taxes.

In its statement, the company also indicated that it had used its legal right of appeal and tried to prove to the authority’s tax appeal committee that the claims are not correct and that it had been paying its taxes properly and according to the law. According to the statement, the company had the committee acceptance for its part of the argument and the latter had ordered the rechecking of the claims.

“Based on this, we had managed to get a reduction of around 398 million birr and currently the claim had been reduced to around 522 million birr,” the statement explained further. ZTE also argues that, when all the penalties and interest are excluded, the total tax claim would be 157 million birr.

The Chinese telecom giant did not, however, deny that some of its arguments made to the appeal committee, which it claimed to be according to the law, had not been accepted. Nevertheless, it vowed to keep pushing the legal battle against ERCA until its arguments are either accepted or rejected according to the country’s taxation system. Since the formal legal procedure is still going on, ZTE refuses to believe that it is late on its tax obligations.

“We are intending to climb the appropriate legal ladder. Until all these processes are completed, it is our understanding that we cannot be said to be late in our payment,” the statement said.

According to sources, the company is still in negotiation with the tax authority, seeking further reduction of the claims, while, at the same time, awaiting arbitration from both PM’s office and MoFED if there is one.

Though ERCA is granted with the power of regulating and considering tax related appeals from individuals or organization of any tax payers, MoFED and the PM’s office also have an advisory role on such matters of tax dispute and complaints, especially with foreign companies, considering the peculiar types of business they are in, like foreign direct investment.

 http://www.thereporterethiopia.com/index.php/news-headlines/item/2331-zte-in-row-with-erca-over-taxes-worth-920-mln-birr

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Israeli construction suspected of tax evasion

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- Travel ban imposed on owner

Tidhar Excavation and Earth moving Ltd., an Israeli company taking part in the 2.6 billion birr road project that is expected to supplement the ongoing Light Railway Transit (LRT) project, is suspected of illegal tax evasion activities worth some 52 million birr, The Reporter learnt.

Investigators of the Federal Ethics and Anti-Corruption Commission (FEACC) told the Federal High Court Second Criminal Bench on Wednesday that three employees of the Ethiopian Revenues and Customs Authority (ERCA) Large Taxpayers Office suspected in the alleged tax evasion charges were arrested the same day while the owner and general manager of Tidhar, Menashe Levy, who is also suspected of the same charges, was banned from leaving the country but not arrested.

The investigators explained that the alleged tax evasion happened when Tesfa Hadush, leader of the tax audit team, and a two-member team, Muhammad Agmass and Anteneh Gezehagn, were assigned to do Tidhar’s tax audit for the business operation between the periods of 2008 to 2012. The audit, conducted in December of 2013 for one month, ended with auditors finding out that the company owed some 52 million birr in back taxes and notified it of its obligations.

According to the FEACC investigators, the story does not end there. The three soon approached Levy with another proposal, to reduce the 52 million to 6.1 million for a price of 3 million. After negotiations, the Menashe allegedly reached an agreement with the three to pay 1.8 million, 600,000 each, and have the taxes reduced to the proposed amount. Hence the four personalities were said to have evaded some 46 million birr in taxes and damaged the country.

Investigators asked for some 14 additional days to complete their investigation, during which time the suspects were ordered to remain in custody. In addition to that, they asked the court to issue a travel ban on the general manager until such time that he is placed under arrest. After hearing the justification, the court rejected the suspects’ right to make bail and granted the investigators 10 days to complete their investigation and institute charges.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2332-israeli-construction-suspected-of-tax-evasion

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Beverage producers ordered to cut price

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The Ministry of Trade last week ordered beverage producers to cut the recently surged market prices on their respective products.

In a meeting MoT called last week with beverage producers of soft drinks, beer and bottled water, the manufacturers were told to make sale adjustments to its sales prices before June. They were also told that the price adjustments that saw the surging of sale prices in the past couples of months are “irrelevant.”

The meeting, chaired by Trade Competition and Customers Protection Authority Director General, Merkebu Zenebe said “some producers have made irrelevant and inappropriate price increments. Before we go to legal action, we urge them to take correction mechanisms. Otherwise we are forced to pursue legal action.”

During the meeting at the MoT conference hall, soft drinks, beer and water products’ prices are said to have surged in connection to the government’s announcement of salary increments for civil servants listed out in detail.

Both officials of MoT and the authority explained that they gathered evidence from retailers that they were indeed forced to increase sale prices following their buying prices.  They blamed producers and suppliers for increasing the sales prices of each product.

A senior advisor at MoT, Nuredine Mahamed told the meeting that “the current price adjustment has been made with no economic reason.” He added that the price of beer since last month has shown over an eight percent increase and the increment has been witnessed boldly since June.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2327-beverage-producers-ordered-to-cut-price

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 Ethiopia: Low Income Farmers Benefit From Irrigation

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Over 30,000 farmers have benefited from irrigation development in Oromia, Amhara, Tigray and Southern Nations, Nationalities and Peoples states of Ethiopia, said the Participatory Small-scale Irrigation Development National Program Coordinator.

The International Fund for Agriculture Development (IFAD) supports the participatory small-scale irrigation development national program that was started six years ago in the four states. The program aims to support farmers with less than USD 30 cents daily income and poor household farmers in the states. A four-day workshop and field visit was recently conducted in Tigray State to evaluate the implementation of the program and exchange experiences. National Program Coordinator, Jemal Ali, said 114 irrigation schemes are being carried out with 535 million birr in all the states. He added that fruitful works were carried out in the just-ended Ethiopian fiscal year, though there were implementation gaps in the past years. In the past year, 64 irrigation schemes that can cultivate over 8,800 hectares of land have gone operational. Over 1.5 quintals of crops which benefited over 30,000 farmers were cultivated with those, and the beneficiaries have become food self-sufficient, according to the coordinator.

The remaining irrigation schemes will be completed by March, 2015.

According to the coordinator, they will have a capacity to develop over 12,000 hectares of land.

http://allafrica.com/stories/201408040202.html

By Juliet Eilperin – August 5, 2014

A group of African and U.S. firms on Tuesday will announce an additional $7 billion in spending to promote agricultural development in Africa, nearly doubling an Obama administration initiative aimed at mobilizing private money to ease hunger and poverty on the continent.

The commitments — which are being made as part of this week’s U.S.-Africa Leaders Summit and include a $5 billion pledge by ­Coca-Cola to source more of its products from Africa by the end of the decade — highlight how U.S. food aid policy has shifted under President Obama. Rather than relying primarily on federal funds to support small farmers overseas, the administration has enlisted African companies and major multinationals to help address some of the development challenges Africans still face.

In an interview, U.S Agency for International Development Administrator Rajiv Shah said the New Alliance for Food Security and Nutrition — the private-sector-oriented program Obama launched at Camp David in 2012 — was attracting new investment “because this way is working.”

“We have been able to do some extraordinary things to dramatically reduce hunger through the commercialization of the agriculture sector,” Shah added.

The initiative attracted $3.5 billion when it launched, with the majority of the money coming from large international companies. The new commitments bring it close to $15 billion. Two-thirds of the firms participating are African, and these companies account for roughly half of the program’s pledges.

Tuesday’s financial commitments include an array of initiatives, including plans by Coca-Cola to secure more reliable sources of mango puree in Kenya and Malawi and promote orange and pineapple concentrate production in Nigeria; $5 million from the Global Shea Alliance to provide storage facilities for women in communities that collect and process shea butter for Western food and cosmetic brands; and $1.2 million from Agriaccess Ghana Ltd. in support of training for local sorghum farmers.

Carl LeVan, an African-politics professor at American University and author of the new book “Dictators and Democracy in African Development,” wrote in an e-mail that the administration’s approach to food aid has benefits, as well as potential risks.

“Partnering with the private sector will increase the volume of aid, and it has the potential to improve the impact and efficiency of assistance, especially where corporations like Coca-Cola already have infrastructure and experience in Africa,” LeVan wrote. But he added that “private interests do not always line up with foreign policy objectives,” such as when multinational firms did business with South Africa under apartheid, or when they purchase land in Africa even if it means displacing villagers.

Shah said he is aware of the skepticism some Africans have of corporate investors, noting that each year the U.S. government publishes a report on the deals it helps secure under its food assistance programs. “We have to work hard to build trust and transparency with civil society and small farmers,” he said.

The administration has a separate initiative called Feed the Future, which launched in 2010 and receives about $1.1 billion a year in federal money. Rep. Betty McCollum (D-Minn.) announced Monday that she is working on bipartisan legislation to make the program permanent. It has provided assistance to 7 million small farmers in Africa, Shah said, and ensured that more than 12 million children there are “adequately nourished.”

In many instances, the United States has leveraged its aid dollars to push for new agricultural policies. In Ethi­o­pia, the government liberalized its regulations to allow private players — including DuPont, a participant in the administration’s New Alliance program — to develop and distribute seeds to farmers. Tanzania opted not to impose a ban on agricultural exports after working with U.S. officials. And Ni­ger­ian President Goodluck Jonathan said in a statement that his government “ended corruption of four decades in the fertilizer sector” by developing an “electronic wallet system” that allows farmers to get subsidized seeds and fertilizers though coupons they receive on their cellphones.

Vice President Biden emphasized the importance of cracking down on corruption while speaking to African activists and non-profit organizations Monday at the summit, calling it a “cancer.”

“Widespread corruption is an affront to the dignity of your people and a direct threat to each of your nations,” Biden said. “It stifles economic growth and scares away investment and siphons off resources that should be used to lift people out of poverty.”

Transparency International rates all countries in Africa as moderately to highly afflicted with official corruption. Botswana got the nonprofit organization’s highest rating for the continent last year, with a score of 64 out of a possible 100. Somalia scored the worst among African nations, with eight points.

Humanitarian aid groups have generally praised Obama — who took office shortly after rising food prices led to serious shortages in the developing world — for placing an early emphasis on alleviating hunger. But they have also cautioned against an overreliance on private companies to address the needs of the poor in Africa, as well as some anti-terrorism policies that have constrained humanitarian assistance activities in conflict zones.

Oxfam America policy director Gawain Kripke said the president and his deputies “deserve credit” for making agriculture and food security “a trademark, branded priority for this administration.” But Kripke warned that depending on corporations to provide the financial resources to lift the agricultural sector in Africa does not substitute for government aid, because “a lot of small farmers aren’t commercially viable or aren’t commercially interesting.”

Separately, several aid groups have questioned why the administration had not done more to modify a legal prohibition that bars organizations from conducting any transactions with groups on the federal terrorist list — even if it is minimal contact, such as paying a road toll, to deliver food assistance to civilians. Officials from Somalia — a country that suffered a famine in 2011 and still faces food shortages — said this week they are concerned these prohibitions will again impede assistance efforts there.

“They haven’t made a reasonable attempt to balance the humanitarian need for food assistance with the security needs,” said Kay Guinane, director of the D.C.-based Charity & Security Network.

Anne Gearan contributed to this report.

Sourced here  http://www.washingtonpost.com/politics/africa-agricultural-initiative-gets-7-billion-boost-from-private-companies/2014/08/04/276214d2-1be3-11e4-ae54-0cfe1f974f8a_story.html

Filed under: Ag Related, Economy, Infrastructure Developments Tagged: Africa, Agriculture, Business, East Africa, Economic growth, Ethiopia, Fertilizer, Investment, Kenya, Millennium Development Goals, Potash, Sub-Saharan Africa, tag1, United States

US-Africa Summit An ‘Eye Opener’ For U.S. Business Community

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By Dana Sanchez

 http://www.whitehouse.gov/photos-and-video/photogallery/us-africa-leaders-summit” width=”621″ height=”350″ />

President Barack Obama and Africa leaders participate in the U.S.-Africa Leaders Summit at the U.S. Department of State in Washington, D.C., Aug. 6, 2014. Official White House Photo by Chuck Kennedy

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Top African officials suffer from summit fatigue, but the recent U.S.-Africa Leaders Summit wasn’t like other summits dominated by politicians and bureaucrats, according to an editorial by William Wallace in FinancialTimes.

Thousands of Africans flew in and dozens of meetings were going on at any given time across Washington, D.C. on the sidelines of the main events. It was an eclectic carnival of players, Wallace writes.

For the U.S. business community this was an eye opener. You do not always have to know the president of a country these days to get things done. There is a dynamic array of other potential African partners, most of them in the private sector, and most of them, businessmen and women.

Donald Kaberuka, president of the African Development Bank, refuted the widely held belief that the U.S. is waking up to Africa’s commercial potential only because China is so far ahead. “It was not a political meeting,” he said. “It was not even a catch-up meeting. It was business people leading the way.”

Kaberuka said companies such as Coca-Cola, IBM, GE and JPMorgan have begun shifting their agendas on Africa towards a more healthy mix that places investment and trade higher on the agenda.

Others at the summit commended how Power Africa, an initiative launched by U.S. President Barack Obama in 2013 to bring U.S. expertise to bolster electricity generation, is targeting attention on a critical shortfall, according to Wallace.

Little reminder was needed of the flip side of the transformation the continent is undergoing such as the inadequacy of the public health response to Ebola. But, if the goal was to shift U.S. perceptions of Africa as simply a repository of disease, poverty and war — a place needing handouts, then the US-Africa summit made a healthy start, Wallace wrote.

American perceptions of Africa have long been swayed by the loudest U.S. constituencies with vested interest in the continent. More often than not, these have been non-governmental organisations — the human rights lobby — and faith-based groups. They played a central role for example in focusing U.S. attention on the plight of the Southern Sudanese during Sudan’s civil war.

The effect has been to distort the complex mix of realities in Africa’s 55 states – seen, as these have often been, through the lens of activists with a narrow agenda – and also to divert resources, Wallace wrote.

U.S. envoys to Africa admit to spending disproportionate amounts of time dealing with flashpoints such as South Sudan and the threat of terrorism coming from countries such as Somalia. They don’t spend much time on commercial opportunities that emerged as African economies have grown and a new class of business consumers.

For a few days in Washington, D.C. that changed.

The first U.S.-Africa summit, attended by nearly 50 African heads of state, took on issues from Islamic extremism to corruption but the dominant theme was Africa’s business potential and the role U.S. companies could play in creating jobs and in mobilizing the needed funds.

It may not quite qualify for what U.S. secretary of state John Kerry called a “pivotal moment in history.” That would be Aug. 4 1914, when the World War I began, not Aug. 4 2014, one delegate quipped.

But there was a shift away from Washington’s habitually paternalistic tone, heralding what Obama described as a “partnership of equals that focuses on African capacity to solve problems, and on Africa’s capacity to grow,” according to FinancialTimes.

http://afkinsider.com/69019/us-africa-summit-africa-shows-potential-drive-global-growth/

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Unpacking Power Africa: A good opportunity for the private sector?

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BY Kate Douglas

Efforts by the US to boost political and commercial ties with Africa came under the spotlight this month when President Barack Obama hosted some 50 African leaders for the first US-Africa Leaders Summit in Washington DC. Alongside a number of discussions around opportunities for better business partnerships between the two regions, the Summit generated about US$37bn in financing deals and investment in Africa.

At the heart of the US commitment for better engagement is Power Africa, a private sector-led initiative aimed at doubling electricity access in sub-Saharan Africa where an estimated 600m people lack access to reliable electricity. The initial set of Power Africa partner countries – Nigeria, Ethiopia, Ghana, Kenya, Liberia and Tanzania – are said to be paving the way for investment and growth through utility and energy sector reforms.

Obama announced the initiative last year (alongside a commitment of $7bn of US government resources) during a visit to the continent. The goal was initially to add over 10,000MW of power generation capacity to give an additional 20m households and businesses access to electricity. But at the Summit, Obama announced a tripling of the original target to 30,000MW and new connections for at least 60m. He also pledged a further $300m in grant assistance a year to expand Power Africa’s reach.

An additional $6bn in new private sector commitments was also revealed, bringing total private sector investment under Power Africa to over $20bn, with companies like General Electric (GE) and African investment company, Heirs Holdings, leading the way.

Alongside this are pledges in both technical and financial support by entities such as the World Bank, African Development Bank (AfDB), Overseas Private Investment Corporation (OPIC) and the Government of Sweden.

Power Africa is already involved in a number of energy projects, ranging from a loan guarantee for the Kiwira River Hydro Project in Tanzania to providing transactional and technical advice to move the proposed Corbetti Geothermal Power Plant project forward in Ethiopia. In northern Kenya, US government finance institution OPIC has approved up to $250m in financing under Power Africa to support the development, construction, and operation of the 310MW Lake Turkana Wind Power project.

Currently Power Africa has just over 40 private sector and financial partners, with roughly a third being African. However, according to Peter Ballinger, director of business development at OPIC, Power Africa projects are complex in nature and are not for anyone to just come in and invest.

“We are really looking to work and partner with companies that have experience, have done this before, and bring something to the table whether it’s a new technology, or additional capital, or some sort of wherewithal,” he told How we made it in Africa.

According to USAID, which houses the Power Africa website, the first step in becoming a Power Africa partner would be to express interest through the website. A Power Africa team member will then reach out to discuss how best an investor can get involved.

“If there appears to be a strong fit, your organisation may be invited to provide a letter of commitment expressing your support for Power Africa and setting forth the specific activities you intend to pursue in furtherance of Power Africa’s objectives,” states the website.

The thinking behind Power Africa

During the Summit, Obama reiterated the view that Africa needs sustainable development through trade, as opposed to aid, and that the US is looking to increase commercial ties as equal partners.

The US has been somewhat slow to engage with Africa’s growth story, falling behind China and the European Union as the continent’s largest trading partners. Within 15 years, trade between China and Africa has risen from just $10bn in 2000 to over $200bn in 2013, with China’s involvement in the continent extending to the construction of large infrastructure projects such as roads and ports.

At the Summit, Jeff Immelt, CEO of GE, summed up the sentiment that US companies “kind of gave Africa to the Europeans first and to the Chinese later, but today its wide open for us”.

Both sides set to benefit

According to Ballinger, the Power Africa initiative is a win-win for both the US and sub-Saharan Africa – the continent needs increased energy generation, while US companies have the opportunity to make good returns from these projects.

“US companies [bring] experience and technology and equipment to projects. So for companies like GE, yes, supporting Power Africa was a strategic business decision on their part,” noted Ballinger.

“So American companies I think will very much benefit from the groundwork that the US government has laid through Power Africa with our Power Africa countries.”

Role of public-private partnerships (PPPs)

Africa has a significant infrastructure deficit and the private sector can play an important role in closing this gap, as noted by Stuart Kufeni, CEO of the SADC Development Finance Resource Centre, which houses the Public-Private Partnership Network.

“Most of these infrastructure projects are huge and our governments can’t raise that kind of money in total, so they need the private sector’s participation in those projects. For instance, now from 2013 to 2017, we are looking at projects [in Southern Africa] in the region of US$65bn for infrastructure alone. There is no way our governments can raise that much,” Kufeni told How we made it in Africa last year.

In addition to financing, the private sector also has the expertise to develop these large projects.

At the Summit, Tony Elumelu, chairman of Heirs Holdings, said the private sector can play a key role in solving Africa’s power deficit. Nigeria recently took steps to privatise its power sector, and Elumelu said this allowed his company to acquire a major power asset last November, with a then output of 150MW of electricity. Just nine months later they had tripled this to 453MW.

“This is what the private sector can do,” noted Elumelu. “So learning from this… we [the private sector] have a role to play in helping to reform the power space.”

Balancing good returns with high risk

OPIC’s Ballinger said the Power Africa projects are good investment opportunities for the private sector, but they are not without risk.

“Many of these projects are highly risky, and so I think investors have an expectation of rate of return that they need, certainly they also have to service the debt, long-term debt, through organisations like OPIC. And then they have got to deliver on their contract to the off-taker which in almost every case is a government entity like… TANESCO in Tanzania or KenGen in Kenya.”

The complexity of PPP deals means there can be challenges, such as meeting tight government deadlines to conclude contractual and financing agreements.

“So governments have to understand that when you are putting together a very complex public-private partnership, that giving them six months to reach financial closure… sometimes it’s too tight for international financial institutions to commit, especially on these larger energy projects, which are very complex in nature.”

http://www.howwemadeitinafrica.com/unpacking-power-africa-a-good-opportunity-for-the-private-sector/42451/

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Some 8,000 MW power generating projects under well way

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Construction of the hydropower dams with an aggregate capacity of generating 8,000mw power is well in rogress, the Ministry of Water, Irrigation and Energy said.

The Minister Alemayehu Tegenu told ENA that construction of hydropower dams is being undertaken to realize the target set in the five year pan, which is increase hydropower generating capacity to 10,000mw from the current  2,268mw.

Gilgel Gibe III, is one of the preojects being undertaken. Some 86 percent of the construction of the dam has so far completed. Up on completion, the dam will generate 1870mw power.

Other projects that are being constructed in various parts of the country are also well in progress, he added.

Despite its huge potential for hydropower, 45,000mw, Ethiopia has developed and use only 2,268mw power, Alemayehu stated.

Alongside constructing new hydropower dams, expansion of existing dams such Tekeze and Gelgel Gibe II are being carried out.

The dams being built in various parts of the country will help to increase citizens access to electricity and wearn additional revenue from its sale.

The master plan has been also prepared which enabling to the country brings the solution to generate the power and empower the wise utilization of abundant resource in the country, he mentioned.

The ministry has been working in order to accelerate energy development to meet the domestic electric    power need and export to the neighbor countries, he indicated.

Beyond the political and economical benefits, Ethiopian energy development effort helps to create East African power pool Integration.

Recently, the construction of over 1,000 km Ethio-Kenya electric power lines have been finalized and expected to generate close to 2,000 MW, he added.

Ethiopia has also signed a memorandum of understanding with South Sudan and Yemen to export electric power.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2130:some-8000-mw-power-generating-projects-under-well-way&Itemid=260

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KIG to Produce Ethiopia’s First Cranes Soon

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The five months old crane manufacturing company, KIG, is set to begin production in a month time after receiving machinery and inputs.

KIG has already installed eight production cranes at its production plant that lies on 6,000 square meters. The installed production cranes each have a 20 tones capacity. Yet, according to KG’s managing director, Kahsay Gebregziabher, production has been stalled because of delivery delay in sheet metals and other machineries KIG has ordered.

Kahsay noted, three months ago his company ordered five containers from Germany and Italy. The freights each had 25 tons of sheet metals bought for U.S $ 600 per ton and were expected to be delivered in a month time. However, it was only three of them that arrived at the
Modjo Dry Port, according to the managing director.

Production started two months ago, as per the plan. The company has also ordered production machinery, which it still has not taken delivery of.

In addition to these, according to Kahsay, KIG has a 23 Million Birr order from the Metal and Engineering Corporation (MeTEC) for 10 cranes.

According to Fortune KIG was established with a capital of 300 Million Birr by KG Engineering and Lucernini, an Italian company. The cranes it plans to produce has a capacity ranging from 10 tons to 50 tons and are going to be sold from three Million Birr to 22 Million Birr, respectively.

According to Kahsay, his company is the second of its kind in Africa and has the potential of exporting its products to other African nations.

The production capacity of KIG initially will be five cranes a month.

http://www.2merkato.com/news/alerts/3203-kig-to-produce-ethiopias-first-cranes-soon

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Ethiopians in Canada contributing to national development

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Ethiopian Diasporas residing in Canada are contributing to the development of the country, Ethiopian Ambassador to Canada, Birtukan Ayano has said.

The Diaspora has contributed close to 456,930 USD for the construction of the Grand Ethiopian Dam (GERD) being built over River Nile, last Ethiopian fiscal year alone.
According to the Ambassador, they have also pledged to provide 46,000 USD.

Activities are being undertaken to further mobilize the Diaspora in a bid to increase their contributions to the country’s development.

The Canada- Africa Business Summit to be held in September 2014 will be a good opportunity for Ethiopia to introduce the investment opportunities, she added.

High level officials from the Ethiopian Ministry of Foreign Affairs will promote investment opportunities at the Summit.

Canadian companies including Alana Potash are engaged in Ethiopia in mines exploration and development. Nine Canadian companies conducted assessment in Ethiopia last fiscal year.

Discussions have already started between Ethiopia and Canada to sign investment protection agreement, the Ambassador said.

Trade relation between the two countries is low with an annual 141.3 million Canadian dollars.

http://www.waltainfo.com/index.php/explore/14619-ethiopians-in-canada-contributing-to-national-development-

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KENYA-ETHIOPIA 400MW POWER PROJECT TAKES OFF

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A 686Km high-voltage line to bring 400MW of power purchased from Ethiopia into the Kenyan national grid is set to take off with the signing today of the funding deal with the International Development Agency (IDA), the concessionary-lending arm of the World Bank Group.

The Sh54billion transmission line is part a regional strategy to pool power that will gradually include Uganda and then Tanzania.

The power will come from the controversial Gibe III dam in Ethiopia whose construction has not been without hitches as pressure-groups raised the spectre of adverse downstream effects of damming a river that feeds into Lake Turkana.

Ethiopia is estimated to have 45,000MW of power and first sought guarantee from Kenya that it would take up the power if the nation undertook to put up the HEP dam.

The African Development Bank has already given Sh30billion toward the project while the French Development Bank (ADB) through its infrastructure-arm Proparco and the Government of Kenya will also partially fund the project whose total cost is put at Sh94billion.

Two High-Voltage Direct Current converters will be put up at Suswa in Kenya and Wolayita Sodo in Ethiopia.

The project will be implemented by the Kenya Electricity Transmission Company (Ketraco) and the Ehtiopia Electric Power Corporation (EEPCO).

Kenya will buy the power at 5 US cents per Kilowatt Hour which is much lower than most power producers sell their power to monopoly distributor Kenya Power. Lake Turkana Wind Project for example, proposes to sell power to Kenya Power at 7 US cent/Kwh.

The power will transmit at 600Kilovolts much higher than the beefed up 400Kv line being built from Mombasa to Nairobi to bring power from the likes of Rabai Power station, Kipevu III and the proposed 600MW coal-fired plant in Kilifi.

Indeed, Ketraco is embarking on a stabilization project of the national grid so that it can handle these high voltages.

The power will come in direct current form which is much cheaper to transmit over long distances and sees lower dissipation rates (wastage).

Two high-voltage DC converters will be built at Suswa and Sodo. The Sodo one will convert generating alternating current into direct current for transmission and at Suswa the DC will be converted to AC and injected into the national grid.

The route from Ethiopia, according to project documents will be:from Ethiopia into Kenya approximately 90 km West of Moyale town and traverses Marsabit, Samburu, Isiolo, Laikipia, Nyandarua and Nakuru. From Moyale the transmission line route runs adjacent to the Great North Highway (Marsabit – Moyale) in a southerly direction avoiding Marsabit National Park. From Marsabit area the route runs southwards at a maximum distance of 500 m parallel to the main Isiolo – Marsabit Highway to Laisamis.

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Recent Visits of President, Prime Minister to USA Described as Fruitful

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Government Communication Affairs Office announced that the recent visits of President Mulatu Teshome and Prime Minister Hailemariam Desalegn to the United States were successful.

In a press briefing Communication Minister Redwan Hussein gave on August 15, 2014 said the Ethio-US investment forums held in Houston and Los Angles in the presence of President Mulatu Teshome have aroused the interest of big US corporates in doing business in Ethiopia.

The US-based energy company Chevron has, instance, expressed interest in carrying out oil exploration in Ethiopia; and the cut-flower company, KKR , has requested additional 200 hectares of land to expand business, according to the minister.

Other US companies are also reportedly keen to invest in hotel, resort, tourism and the services sector in general, he added.

He stated that the forums were effective in selling the idea that Ethiopia is a country where one can undertake business and get profit.

Redwan further indicated that the forums also paved way for local producers to access US markets and facilitated the collaboration of companies of the two countries in working together in export products.

He also stated in the forum held in Los Angeles the Ethiopian diaspora had a chance to know more about their country’s ongoing development. The minister said in the forum many young Ethiopian diaspora expressed their desire to take part in the development endeavours underway in the country.

In the U. S-Africa Leaders Summit, which was held in from August 4-6, 2014 in Washington DC, Ethiopia’s rapid economic development and its resilient green economy were among the key concerns of the summit that acknowledged Ethiopia and identified it as the most successful country in natural conservation, and in small-scale farming development that brings changes in the lives of low-earners,   Redwan elaborated.

Due to the above factors, President Obama invited the Ethiopian Prime Minster to share his country’s experience for the summit, the minister disclosed.

According to him, Ethiopia was also identified as exemplary country for the summit’s another agenda of “invest in health” and it was selected to co-chair the meeting with the US.

He further stated the summit also appreciated Ethiopia’s efforts to ensure lasting peace in the continent and is among the six African countries engaged in active deployment of peacekeeping forces.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2134:recent-visits-of-president-prime-minister-to-usa-described-as-fruitful&Itemid=260

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Tsehay to Start Sales in October

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The Chinese real estate company, Tsehay Real Estate Plc, is going to start selling units in the coming October on one of the buildings it is 70 percent complete.

On Thursday, August 14, 2014 the company invited what it called potential buyers, to visit its site around CMC area after announcing it has thus far spent 600 Million Birr on it 12 storey project. According to Deputy General of Tsehay, Yijung Wang, these building that are at different stage of completion will be available for sale when they reach 70 percent completion.

The buildings Tsehay is constructing have multiple types of units. They range from two bed rooms with 140 square meters to five bedroom penthouses of 275 square meters. All of its building will have 646 units out of which 300 of them will have two bedrooms and one guest
room of 144 square meters. They will also have access to parking area for only one car and additional parking place for an extra cost. In addition to this, ground level units will have gardens and units starting from the first floor will have terraces.

According to Wang, all buildings will be completed by April 2016 but residents will have access to their units as every building’s construction is completed.

Tenadam Zewse, Senior Advisor to Tsehay, commented buyers will have to make a 70 percent down payment for the unit they wish to acquire. He added the prices begin at U.S $ 1,100 per square meter and increase as the units get higher on the buildings. This is, according to
Tenadam, because units on top of the building will have better quality and view.

The real estate company is going to start erecting four more building by the coming October, Wang noted. These buildings are going to be for commercial purposes and will be built on 10,000 square meters.

Tsehay Real Estate Plc was established in 2012 by China Geology Corporation Overseas Construction Group (CGCOC) and Red Fox International Business Company.

http://www.2merkato.com/news/alerts/3204-ethiopia-tsehay-to-start-sales-in-October

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Turkish investors top list for quality

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Getahun Negash

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The newly restructured Ethiopian Investment Commission announced that Turkish Foreign Direct Investment (FDI) to Ethiopia is leading the group of emerging economies that have shown interest in investment opportunities in Ethiopia.

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DOW Chemical Co. to open office in Addis Ababa

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Ross McLean

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One of the leading chemical giants in the world, DOW Chemical Co. on Tuesday announced that it is going to open a country office in Addis Ababa.

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Electric Services installs transformers to reduce power cuts

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Alemyehu Tegenu, Minister of Water Irrigation and Energy

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In a bid to curb the recurrent power cuts, the Ethiopian Electric Services has installed 248 transformers in Addis Ababa and the regional states. 

The new transformers are believed to augment the existing old transformers which can hardly cope with the ever- increasing power load. In an exclusive interview with The Reporter, Alemyehu Tegenu, Minister of Water, Irrigation and Energy, said that there was no shortage of electric power in the country. Alemayehu said the cause for the power cuts is related to the old power distribution lines.  According to him, the power distribution network and the electric transformers are over-loaded.

Alemayehu said the power consumption trend in the country is changing. “Previously residents of Addis Ababa used biomass fuel. Now people use electric power to cook. The rapid investment activity needs more energy. The existing power generation capacity is adequate to accommodate the existing demand. However, the aging distribution system is unable to handle the ever-increasing power demand,” Alemayehu said.

Electric transformers in Addis Ababa are exploding in every nook and corner. Residents of Addis Ababa question the quality of the transformers. However, Alemyaheu said that the problem got nothing to do with the quality of transformers. “All the transformers are tested before they are installed. The problem is that there is a high power demand that the transformers at times are unable to accommodate. The power load is too high for them.”

According to the minister, to mitigate the power cuts the Ethiopian Electric Services has installed 248 supportive transformers all over the country. A Chinese power company, China Hydro, hired by the Ethiopian Electric Services has installed 170 of the supportive transformers. “We have noted some improvements and we will install more supportive transformers based on the need assessment we undertake.”

Alemayehu said the old transmission lines are being replaced with the new ones, adding that hundreds of new substations are being installed. “We have built new substations in Sebeta, Sululta and Akakai towns,” he added.

The country now has an installed generation capacity of 2,268 MW from hydro, wind, geothermal and thermal energy. The electric power demand is increasing at a rate of 32 percent every year. Every year more than 700 MW of new power demand is created due to the flourishing manufacturing sector. According to the minister, the current demand for electric power is more than 2000 MW.

The Ethiopian government is currently building power plants with a total installed generation capacity of 8450 MW. The Grand Ethiopian Renaissance Dam (6000 MW), the Gilgel Gibe III (1870 MW), Genale Dawa (254 MW), Adama II wind power project (153 MW) and the 70 MW geothermal power development project in the rift valley are the ongoing power projects that will rescue the country from power crisis.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2386-electric-services-installs-transformers-to-reduce-power-cuts

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Ethiopia and Japan Held 14th Round Industrial Development Policy Dialogue

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Japan and Ethiopia held a five days dialogue that lasted from August 11 to 15 on Industrial Development. The dialogue was held in Addis Ababa and it was the 14th Round of Policy Dialogue on Industrial Development.

According to Walta Information Center this Dialogue was referred to in the Joint Communiqué by Prime Minister Mr. Shinzo Abe and Prime Minister Hailemariam Dessalegn issued on the occasion of the state visit of Japan’s Prime Minister to Ethiopia in January.

The Dialogue has been held since 2000 when the late Prime Minister Meles Zenawi Professor Kenichi Ohno and Professor Izumi Ohno from the National Graduate Institute for Policy Studies requested for it.

The Dialogue has been conducted as part of a technical assistance project by the Japan International Cooperation Agency (JICA). This infers it has been coordinated closely with the “Kaizen” initiative that the Ethiopian Government is implementing across the country with
assistance of Japan. This is also the platform that created the “Champion Products approach,” which is a tool for promoting trade and increasing exports.

The Dialogue attracted many high level officials and was headed by Newayekiristos Gebreab, Economic Advisor to the Prime Minister.

Topics such as the positioning of “Kaizen” in the next GTP2, a direction of scaling up industrial capacity to achieve industrial development and a light manufacturing vision were discussed. In addition to this points Ethiopia should note were also raised.

Other than these, the dialogue also covered topics such as the situation of the “Latest Comer” countries, namely Myanmar, Cambodia and Bangladesh, was was introduced and an active exchange of views and discussions were conducted on policies to encourage more FDI based on other countries’ experiences or the necessity to implement industrial policy step by step.

http://www.2merkato.com/news/alerts/3200-ethiopia-and-japan-held-14th-round-industrial-development-policy-dialogue

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Acacia seeds as a source of protein

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By Johanna Rendle-Short

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I listened with interest to a recent ABC (Australia Broadcasting Corporation) radio program talk about how Australia’s wattle, the acacia tree, could be used as a source of protein in Ethiopia.

http://www.thereporterethiopia.com/index.php/living-and-the-arts/lifestyle/item/2365-acacia-seeds-as-a-source-of-protein

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Belgian Ambassador Calls For Consolidated Economic Relation

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Ethiopia and Belgium should strengthen their economic relation by using the strong diplomatic tie they have developed,  Belgium’s Ambassador to Ethiopia said.

In an exclusive interview with ENA, Ambassador Hugues Chantry said though the countries have long-standing diplomatic relation, their economic tie is weak.

Belgium imports coffee and horticultural products from Ethiopia, while Ethiopia imports agricultural chemicals and machinery, he said, adding that the trade exchange is still way below the desired level.

The ambassador said his country is committed to using the strong diplomatic relation that exists between the two countries as a leverage for creating better trade and investment ties.

Belgian businesspersons who invested in Ethiopia are few and the capital flow of those engaged in textiles and flowers is not more than 20 million Euros, he added.

Efforts are being exerted to encourage businesspersons to engage in various investment sectors in Ethiopia, according to the ambassador.

The Ethiopia Embassy in Brussels has for instance been promoting the wide investment opportunities in Ethiopia, in collaboration with Belgium Chamber of Commerce, he elaborated.

Subsequently, Belgian investors have carried out feasibility studies in areas of green development, water development and civil engineering, and some have shown interest to invest in Ethiopia, Ambassador Chantry added.

The fast growing Ethiopian economy has the potential to attract many investors, he stressed, adding that he has therefore been encouraging Belgian investors to benefit from the low labour cost, natural resources, peace and security in the country.

On other hand, the ambassador appreciated the role Ethiopia has been playing in bringing peace and stability in the Horn of Africa.

He said his country would provide all the necessary support for Ethiopia’s effort through the European Union.

Ethiopia and Belgium established political and diplomatic relations in 1906.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2104:belgian-ambassador-calls-for-consolidated-economic-relation&Itemid=219

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Filed under: Ag Related, Economy, Infrastructure Developments, News Round-up Tagged: Addis Ababa, Africa, Agriculture, Allana Potash, Business, East Africa, Economic growth, Ethiopia, Investment, Millennium Development Goals, Sub-Saharan Africa, tag1, United States

By Asrat Seyoum and Wudineh Zenebe

New foreign policy direction has been in the works in Ethiopia during the past few years. It is a slow evolution to the so-called ‘economic diplomacy’ and by now, the focus of the Ethiopian diplomatic mission abroad is one matter and one matter alone: attracting investment.

Ethiopia ready to join COMESA free market area

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The government of Ethiopia has finalized preparations to join the Eastern and Southern African Common Market (COMESA) free market area, the Ministry of Trade said.

Trade Relations and Negotiation Director-General at the Ministry Geremew Ayalew told ENA that the country has been searching for markets for the increasing market demand of its industries.

The competence of Ethiopian industries has been growing and the industries are in their stage of producing items meeting international standards, he said.

The rapid and consecutive development of the country and involvement of foreign-based companies which led to technology and knowledge transfer enabled industries build their capability.

The country has been engaged in various dialogues with various countries and entities to meet this increasing demand for market, he added.

The government has been making arrangements using bilateral agreements, sub-regional free markets like COMESA, and international markets through negotiations with WTO.

The nation has so far signed bilateral trade agreements with 16 African, Asian, European and North American countries. These agreements are aimed at expanding markets, he said.

He mentioned the agreement signed with Sudan to create free market area between the two countries as an example.

Promoting expansion of trade and economic development, fostering advancement of economic activity, increasing productivity and financial stability; and providing fair conditions of competition for trade between the two countries are the main objectives of agreement.

The nation has also searching markets using sub-regional free markets like COMESA. And the country has finalized preparations to join the free market, including the ratification of the free market area arrangement by the parliament, he said.

Under this arrangement, the countries agree to eliminate tariffs, quotas and preferences on most (if not all) goods that they trade among themselves.

The consultations to accede to the WTO are also another thing the country is engaged in. Consultations have been undertaking since 2003.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2182:ethiopia-ready-to-join-comesa-free-market-area&Itemid=260

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Premier Calls For Extension of African Growth and Opportunity Act

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Prime Minister Hailemariam on Thursday, August 28, 2014 called on American Senators he met here in Addis Ababa to support the extension of African Growth and Opportunity Act (AGOA).

The PM held talks on agricultural development in Ethiopia, food processing, empowerment of women and health with US Agriculture Deputy Minister Krysta Harden and other five female senators. The parties also discussed tourism, aviation, roles and benefits of women.
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During the discussion the premier asked the support of the senators in extending AGOA, which hugely contributes to the agriculture and foreign trade of Africa.
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The delegation leader, Senator Debbie Stabenow, appreciated the agricultural extension model introduced in the country and the effort being exerted to familiarize new technology.

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The senator said she had visited successful female agricultural experts prior to meeting the premier.

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She further said the delegation was pleased with the visit they made, adding that boosting the contribution of women to growth and peace through creating female leaders is essential.

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The senator indicated that they are willing to assist the continuous growth of the country and in the provision of education for women in cooperation with Ethiopia.

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With respect to the extension of AGOA, Senator Stabenow said support is voiced at both Congress and Senate, although decision would be reached later.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2186:premier-calls-for-extension-of-african-growth-and-opportunity-act&Itemid=260

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US-African summit bears fruit for Ethiopia

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Foreign direct investment (FDI) from the US to Ethiopia has been increasing after the latest US-Africa forum earlier this month. In his latest press briefing, Redwan Hussein, minister of the Government Communication Affairs Office, stated that the interest of US based companies is growing.

Even though most of the investment interest in Ethiopia is still dominated by growing economies like China, India and Turkey, Western Europe and the US have been taking notice of Ethiopia in recent years.

Redwan said that the latest Ethio-US Business and Investment Summit in Houston and Los Angeles attracted US based multinational companies who are interested in investing in Ethiopia. Several companies involved in mining, agriculture, tourism and energy among others may now want to get involved in what has become one of the world’s fastest growing economies.

“Chevron, one of the top three companies in the world, has showed an interest to begin oil exploration in the country,” Redwan added.

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“Previously the US companies were not that much interested in investing in Ethiopia, a country with a small economy, but now they are assessing the investment directions in the country,” he explained.

Other companies that are already engaged in investment are also interested in expanding their business. “There are also many companies that would like to construct five star hotels,” the minister added.

He said that the US-Africa Business Forum has also been a good opportunity for the country to promote itself. During the recent event held in Ethiopia between the US government and African countries, several US based energy firms stated that they are interested in engaging in the power sector and some of them have already contacted the relevant government offices to engage in the sector.

“We will strongly follow up and support the investors, who will be part of our development and interested to come into Ethiopia,” Redwan said.
He mentioned that the US-Africa event has been also very successful for the country, while it has presented its experience about development.

Top government officials including Mulatu Teshome (PhD), president of Ethiopia, and Prime Minister Hailemariam Desalegn attended the investment summit and US-Africa events.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4477:us-african-summit-bears-fruit-for-ethiopia&catid=35:capital&Itemid=27

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Japan to provide loan for geothermal power, other projects: Ambassador

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Japan has plans to provide loan for Aluto-Langano Geothermal Power Plant and other power generation projects.

According to Ambassador Markos Tekle, Ethiopia’s Ambassador to Japan, the Japanese government used to largely extend aid to Ethiopia in the forms of assistance and technical support.

This has now changed as the country has been registering rapid economic growth and its ability to refurbish loans is strengthened, he said, adding that as a result Japan has plans to extend loan to Ethiopia so that it could complete different projects.

Among the projects that would benefit from the loan are the Aluto-Langano Geothermal Power Plant and other hydro-power projects, the ambassador added.

Ambassador Markos further stated that the Japanese government is also willing to give additional loan to other projects based on the request of the Ethiopian government.

Trade and investment tie between the two countries has been growing as the relationship between the two countries has been strengthening, he noted.

Following the visit of the Japanese Prime Minister Shinzo Abe to Ethiopia, the interest of Japanese investors to engage in the Ethiopia market has grown, according to the ambassador.

Because of the increasing desire of Japanese investors to do business in Ethiopia, the Ethiopian Embassy in Tokyo has been organizing exhibitions and seminars to attract big Japanese companies, Markos stated.

Japanese, through Kaizen institute, are also providing support for the improvement of product and productivity in Ethiopia and to make the country’s industrial policy better, the ambassador added.

At present, 24 Ethiopian students have completed their education in Japanese universities and are doing internship in various companies, it was indicated.

Bilateral Cooperation Director with the Ministry of Finance and Economic Development (MoFED) Kokeb Misrak for his part said Japanese developmental assistance for

Ethiopia through Japan International Cooperation Agency (JICA) has been growing from time to time.

Infrastructural development, agriculture and rural development works as well as education are among the sectors that have been supported by JICA, he explained.

http://www.waltainfo.com/index.php/explore/14748-japan-to-provide-loan-for-geothermal-power-other-projects-ambassador

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Accountability, focus of Post MDG discussions

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Accountability was underlined as being extremely crucial at a meeting on the Post MDG Agenda at the UNECA on Thursday August 21st.

The round table meeting had present African stakeholders, which included academicians, government representatives’, the private sector and women and youth groups.

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According to the stake holders that participated in the in the discussions, Africa’s role in the formulation of the Millennium Development Goals (MDG’s) has been very limited which has resulted in weak ownership and slow progress by many African countries.

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The round table discussion is part of a substantial proactive effort to ensure African ownership of the forthcoming global development agenda that will replace the current Millennium Development Goals (MDGs). The event led by the African Union High Level Committee (HLC) on the Post-2015 Development Agenda comes as a result of a request, made by the AU Heads of State Summit held in Malabo from 26-27 June 2014, to explore the “emerging issues of accountability”.

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This includes the need for a data revolution – a central issue to monitor, evaluate and assess progress, which are, in turn, key aspects of accountability”, according to the Decision of African Union at the Malabo Summit.

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According to Anthony Maruping, Commissioner of Economic Affairs at the ECA, statistics will be very important because timely statistics are crucial to be able to see the extents of achievements.

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“Africa has indeed been a visible presence in the Post-2015 development agenda and as early as 2011 the continent initiated consultations to articulate its priorities for the successor global development framework” Dr Abdalla Hamdok, ECA’s Deputy Executive Secretary, stated speaking on the Common African Position (CAP), which reflects Africa specific needs and goals that need to be included in the Sustainable Development Goals (SDG).

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“The consultations are intended to build on existing accountability frameworks, so to design and formulate an accountability framework suitable for the post 2015 development agenda”, reiterated Hamdok. Such a framework is expected to provide alignment from the global to continental to national levels,” he further said.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4471:accountability-focus-of-post-mdg-discussions-&catid=35:capital&Itemid=27

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Political, Economic Stability Luring Multinationals Into Ethiopia

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VENTURES AFRICA – President Mulatu Teshome of Ethiopia has expressed satisfaction at the country’s economic success, noting that a stable political environment and enabling investment atmosphere is attracting a pool of international firms into the country’s business landscape.

According to the President, the number of foreign companies coming to set up shop in Ethiopia has increased recently unlike some twenty years ago when Ethiopia was a chief recipient of aid.

“Conducive condition for investment, abundant resources, political stability and economic development are the main reasons that attract more investors to Ethiopia. Cheap labour, power and raw material supply make Ethiopia preferable for investment compared to other African countries,” the President said.

He further noted that foreign companies can easily enter into the EU and US markets once they set up in Ethiopia because of its beneficial relationship with these regions which allows it to enjoy various duty and quota free agreements.

Also, the President has disclosed the move of his government in giving priority to the manufacturing and agriculture sectors such as leather, textiles and agro‐processing. Investors in those areas are therefore welcomed.

Information from the World Bank is consistent with the President’s claims; for instance Ethiopia’s economy has grown at an average of 10.9 percent per year over the past decade while poverty has reduced by 9.1 percent over the past half-decade. Also, Ethiopia is on track for achieving most of the eight Millennium Development Goals (MDGs) and has already achieved the goal for Child Mortality.

http://www.ventures-africa.com/2014/08/political-economic-stability-luring-multinationals-into-ethiopia/

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East African Bottling SC to invest $ 250 mln on new projects

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East African Bottling Share Company stated that it will be investing more than USD 250 million in the next five years in Ethiopia to increase the company’s capacity. “We are just finishing our strategic plan for the next five years and it has been approved, so we will spend more than 250 million dollars in Ethiopia during the next five years, which will allow us to increase our capacity and satisfy our customers across the country,” stated Xavier Selga, General Manager of East African Bottling Share Company bottler of Coca Cola.

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According to the General Manager, the company is in the process of launching a new production line in September 2014 and by 2015 and will be investing in a new production plant as well. He also stated that the company will be investing in trucks and coolers so as to be able to transport and supply its products in different areas of the country.

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The company is also working with Coba Impact, an Indian recycling company, to carry out recycling of plastic bottles.

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“We are working to empower 2,000 women in the recycling industry. We want to make sure that the environment in Ethiopia is more sustainable and we can also help these women economically. Right now we are training the women and explaining the routine and giving them the tools,” Selga stated.

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Recently, soft drink manufacturers have been facing some problems regarding the shortage of one of the most important inputs to their products; sugar. According to Misikir Mulugeta, Brand Manager, Coca-Cola Ethiopia, the shortage of sugar has not affected Coca Cola so far and the company’s products are still well supplied to the market.

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In related development, on Friday August 22, the Coca-Cola Africa Foundation (TCCAF) and World Vision announced a new Replenish Africa Initiative (RAIN) project to extend clean, sustainable water and sanitation to communities in the Tigray region of northern Ethiopia.

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The Tigray project, with a commitment budget of USD 1 million, is the third RAIN project in Ethiopia and expands a partnership which has been on-going since 2007.

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“We plan to implement a range of activities including boreholes, drinking water infrastructure, building of ventilated pit latrines and formation of school clubs to promote behavior change in sanitation as well as raise awareness about the health benefits of safe water handling and hygienic practices,” said Margaret Schuler, National Director of World Vision Ethiopia.

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Replenish Africa Initiative (RAIN) is a commitment of The Coca-Cola Company to provide access to safe drinking water for two million Africans by 2015.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4475:east-african-bottling-sc-to-invest–250-mln-on-new-projects&catid=35:capital&Itemid=27

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Corporate Income Tax Targeted in Bid to Boost Manufacturing Sector

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The manufacturing sector only achieved 30pc of the government’s plan during the last fiscal year

Sufian Ahmed

A government committee is finalising a draft amendment to reduce the 30pc corporate income tax levied on manufacturing industries.

The committee, drawn from the Ministry of Finance & Economic Development (MoFED) and the Ethiopian Revenue & Customs Authority (ERCA), has been at work for the past two months, according to an official close to the issue.

The corporate income tax is a flat rate of 30pc tax, which is levied on the service and manufacturing industries. The amendment, however, concerns only those in the manufacturing sector.

The draft will pass through the Council of Ministers and Parliament in less than two months’ time, says a source close to the case.

The 30pc rate was the subject of discussion during a two-day training programme for the private sector, given by Ahmed Abtew, Minister of Industry, at Millennium Hall, on June 30 and July 1, as well as the second Public Private Consultation Forum, chaired by Prime Minister Hailemariam Desalegn, on July 2, 2014 – also at Millennium Hall.

After the suggestions from the various businesspeople, officials from the ERCA, MoFED, Federal Investment Commission (FIC) and Ministry of Industry (MoI) held a meeting. At this time, they agreed that the rate must be reduced, according to an official who was part of the meeting.

The suggested rate will be somewhere between 20pc to 25pc. This could improve the private sectors’ engagement in the manufacturing sector, the official said. The sector only achieved 30pc of the government’s plan during the last fiscal year, 2013/14, according to data from the MoI.

“Tax rate reduction and investment incentives should not be confused; each has its own principle,” says an anonymous tax law expert. “Reduction in tax rate should be inclusive of all sectors, so that the tax system could be simple to understand and implement.”

In addition to the proposed tax incentive for the manufacturing sector, an overall tax review is in process by the MoFED and ERCA, including Income Tax, Excise Tax, Turn Over Tax (TOT) and Value Added Tax (VAT). This, too, could be approved by Parliament during the first quarter of the current fiscal year, according to an official from the ERCA.

The ERCA – created in 2008 as a result of the merger of the Ministry of Revenues, the Ethiopian Customs Authority and the Federal Inland Revenues – experienced a major tax revision of customs during the last quarter of the last fiscal year. The revision includes incentives on the import of semi processed products by the local manufacturing sector, in a bid to encourage manufacturers.

http://addisfortune.net/articles/corporate-income-tax-targeted-in-bid-to-boost-manufacturing-sector/

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Filed under: Ag Related, Economy, Infrastructure Developments, News Round-up Tagged: Addis Ababa, Africa, Agriculture, Business, East Africa, Economic growth, Ethiopia, Investment, Millennium Development Goals, Sub-Saharan Africa, tag1, United States

Holetta central Biotech Laboratory

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Genetically modified organisms are created by the scientific intervention of man, mixing the genes of different organisms to get certain qualities in one. For example, Bt cotton, a popular GMO crop, has the genes of a bacteria added to it so that the cotton plant can produce toxins that kill pests. As with cotton, the same technology has been employed in different food crops as well. There is also the Golden Rice, which has been engineered to be rich in vitamin A.

GMOs are shrouded in controversy, however, with those in favour arguing that they could transform the food security of the world, while those against speak of the risks to the environment and biodiversity, as well as the exploitation of farmers who will be dependent on expensive seeds from companies such as Monsanto.

Ethiopia’s bio-safety proclamation of 2009 did not close the door on GMOs, but made entry very difficult. It required that the government of a GMO’s country of origin was responsible for any damage caused in Ethiopia – a guarantee that no government wanted to give, say sources. These sources declined to say how or why, but there has been a strong pressure from government to amend the law fast.

The push to change Ethiopia’s stringent proclamation and to ease the environment for access to the controversial GMOs came from the highest level in government, according to sources. Government agricultural researchers, who found it hard to partner with “sister institutions from foreign countries” under the existing law, also see the amendment as something that needed to happen.

The existing law had very strict rules for GMO transportation and storage in Ethiopia. Someone involved in the transport, storage or processing of GMOs must have adequate insurance to cover any possible harm caused by GMOs and can only transport the GMOs after special training by the Environmental Protection Authority (EPA) and with a license for drivers or pilots. After release to the environment and commercialisation, one has to monitor and present an annual report to the EPA for (Directive No.3/2009) at least 150 years for GM trees, 30-150 years for GM perennial crops and 30 years for annual crops. A researcher who recommends the use of a GMO could be imprisoned for up to 15 years if it is imported for research and study, and commercial release causes any problem to the environment or the general public. In addition, the proclamation treats low risk activities, like contained use for research and teaching, in the same way as commercial planting/environmental release. The jurisdiction to administer issues in relation to GMOs is also given to the EPA, now a Ministry, under the law.

This law did not allow Ethiopian researchers to collaborate with researchers in other countries on GMOS, said Endale Gebre (PhD), Director of Biotechnology Research at the Ethiopian Institution of Agricultural Research (EIAR).

The amendment states that any person can engage in transactions destined for the release of GMOs to the environment by obtaining an Advanced Informed Agreement from the MoFEP. Any applicant can engage in any contained use transaction with a special permit from the Ministry. This bill, which was submitted to Parliament’s Forest and Natural Resource Standing Committee at the end of July 2014, was drafted by the Ministry of Forest & Environmental Protection (MoFEP), Ministry of Agriculture (MoA), Ethiopian Institution of Agricultural Research (EIAR) and the Ministry of Science & Technology.

Allowing the use of GMOs is not a choice, but a necessity, argues Endale, stating that Ethiopia’s population is projected to reach 140 million in 2025, although he adds that only 20pc of arable land is cultivated in Ethiopia. The current law disappointed researchers, foreign exporters, investors and NGOs, says Endale.

“Enter the age of BT in Ethiopia,” says Maryam Mayet, who reviewed the amendment on behalf of a local NGO, Melka Ethiopia.

GMOs are the only solutions to mitigate food insecurity, which might occur as the population grows, says Abay Yimer (PhD), a researcher at the Institution for Science & Sustainable Development (ISSD). Abay downplays the risks, saying that 400 European researchers have undertaken studies at a cost of 200 million dollars over the past 10 years, proving that risks from GMOs were no different from the risks posed by the use of pesticides, herbicides and fertilisers.

“Currently, there is shortage of cotton production in Ethiopia and Ethiopian imports cotton from Tanzania and China every year,” says Endale. “Applying biotechnology in cotton production would minimise cost and save foreign currency.”

And the most common technology in cotton, as well as other food crops, is adding some genes of a bacteria, Bacillus thuringiensis, to produce the so-called BT crops, with the ability to produce the bacteria’s natural toxin. In cotton, the pest that is the target of the toxin is the bollworm.

It was in 2009/2010 that the Ethiopian Institution of Agricultural Research stared constructing a Central Biotech Laboratory in Holetta town, complete with a molecular lab, plant biotech, livestock biotech, microbial biotech and genetic engineering facilities. All laboratories are now working except the Genetic Engineering, which has not been able to do so because of the stringent laws. The research institute, a government body, built the genetic engineering lab, complete with most facilities except a green house which will be completed in six month, despite the government’s own law making it nearly impossible to dabble in the practice through its stringent requirements, which put the researchers at risk of harsh punishment.

Research conducted in the other labs included such crops as cassava, sweet potato, cowpea, groundnut, banana, rice, sorghum, wheat, plantain and millet, as well as fruits and vegetables, such as citrus fruit, grape, mango, plum, cucumber, tomato, eggplant and peppers. Cash crops, like sugarcane, cacao and coffee, are also included. The institutes are conducting research on GMO enset (false banana) – a source of the staple food, kocho, for many in Ethiopia’s south – in Nairobi, Kenya, in collaboration with other researchers at the International Institution of Tropical Agriculture Laboratory (IITA).

When Ethiopia drafted its stringent bio-safety law in 2009, the Ethiopian consumer association was one of those involved in the process. However, during the production of the new draft, the association was excluded, despite efforts to be part of the process, said Gebremedhin Birega, the Assocation’s director.

Consumers should be aware of what they consume and have the right to get organic and GMO free products, he says, adding that Ethiopia is making the amendment in the interest of other countries, such as the United States, China and India, who are home to the world’s largest GMO company, Monsanto, and the largest producers of BT cotton.

More in line with that argument is the interpretation of the amendment given by Maryam Mayet, who believes that the government had some foreign exporters to Ethiopia in mind when drafting the new amendment. The amendment has inserted a definition for foreign exporters, and she thinks that “a special definition for such an actor must denote some intention that such an actor – a foreign exporter – will play a key role in this shift towards an openness to GM experimentation” in Ethiopia.

Her argument is enhanced by another element in the amendment which says that the objective of the amendment is to “enhance access to and transfer technologies, including modern biotechnology, that serve for conservation and the sustainable use of biological diversity.”

“And we know that the main arguments of industry as to the benefits of GMOs on the environment especially is insect resistant GM crops. Enter the age of Bt cotton for Ethiopia.” She said

The amendment includes several articles where the definitions and requirements, as well as risks and accountabilities, have been made more lax and where licenses to operate will be easier to obtain in Ethiopia. A possible interpretation of the phrase “into the environment” could mean “cultivation”, which would eliminate the need for an Advanced Informed Agreement for “food, aid food, greenhouse experiments, aqua-culture, animal feed or other inputs for animals, and medicines for humans or animals”, according to Maryam.

“The overriding imperative of these amendments are to signify a major shift in Ethiopia’s policy on GMOs, from a precautionary approach to an openness to, at the very least, experimentation in contained use conditions,” she said.

The United States government, through the US Agency for International development (USAID), is already working to build “the leadership capacity of the Ministry of Agriculture and Regional Bureaus” to harness “biotechnology for agriculture in collaboration with the Ethiopian Academy of Sciences, the Ethiopian Institute of Agriculture Research, the USDA Mission in Ethiopia and the Institute for Science & Sustainable development”, according to a press communiqué from USAID.

Attending the meeting, which was held at the Hilton Hotel on August 21 and 22, 2014, was Diran Makinde (Prof), Director of the AU-NEPAD African Bio-safety Network of Experts (ABNE), who spoke of the success of BT cotton farming in several countries, including the neighbouring Sudan. He argued that national regulations could be harmonised with international regulations for bio-safety, adding that the full range of potential risks needed to be assessed and managed.

Ethiopia’s state minister for Science & Technology, Mohammed Ahmed, told the meeting of his government’s recognition of the role of science and technology, and that “biotechnology alone cannot solve the Ethiopian agricultural challenges.Public policy should appeal more to pragmatism and less to ideology when seeking solutions to Ethiopian agricultural challenges”.

The Ministry of Agriculture believes that “Biotechnology should be a big project, in order to improve the economic growth of the country” and that it “will be a solution for low and insufficient agricultural productivity and also for economic growth”, according to Aster Stifanos, an advisor at the Ministry, who spoke on behalf of minister Teferea Derebew.

The Ministry of Forest & Environmental Protection (MoFEP) is expected to defend the amendment before Parliament sometime in October.

It was in 2009/2010 that the Ethiopian Institution of Agricultural Research stared constructing a Central Biotech Laboratory in Holetta town, (above) complete with a molecular lab, plant biotech, livestock biotech, microbial biotech and genetic engineering facilities.

Sourced here  http://addisfortune.net/articles/biosafety-bill-to-open-door-to-gmos-in-ethiopia/

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AFRICA INVESTMENT-Garment-making finds new low-cost home in Ethiopia

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By Aaron Maasho – ADDIS ABABA, Sept 5 / 2014

(Reuters) – As basic wages soar in China, low-end manufacturing is starting to shift to cheaper locations around the world, and frontier African nations such as Ethiopia are positioning themselves to reap the benefits.

With rock-bottom wages, cheap and stable electricity and improving transport infrastructure, the continent’s most populous nation after Nigeria is building a reputation for producing clothes, shoes and other basic goods.

The sector is still in its infancy in what was for decades a Communist-run economic backwater. Bureaucracy and poor transport links mean business costs aren’t quite as low as they might be.

But state investment in factory zones and the arrival of firms from Turkey, India, the Gulf and China suggest industrialisation is finally taking root in the east African giant, where many still rely on subsistence agriculture.

“We have to move because of manufacturing’s development in China, due to the high increase in wages and in raw materials,” said Nara Zhou, spokeswoman for Huajian, a Chinese company that makes over 300,000 pairs of boots and sandals a month for retailers such as Guess from a factory near the capital.

“Ethiopia enjoys stability, the government is eager to industrialise and there is also the low labour cost here – a tenth compared to China,” she added.

HIGH GROWTH RATES

For years, investors gave Ethiopia a wide berth, wary of the heavy role played in the economy by a government that shuns the liberalisation seen in other African nations and which has retained its monopoly on telecommunications and bar on foreigners in the financial sector.

However, in the last few years the commercial logic of factory production has started to outweigh those concerns, and the wider effects are dramatic.

The government is projecting gross domestic product (GDP) growth at 11 percent a year, and even though the International Monetary Fund is more sober its 8.5 percent forecast for this year indicates Ethiopia is one of Africa’s – and the world’s – fastest-growing economies.

Despite the government’s socialist roots, there is no minimum wage, letting firms such as Huajian pay salaries of $50-$70 a month – still higher than the average per capita income.

“Almost every young person in this locality now works here,” said Desta, one of 7,500 employees at Ayka Addis Textile and Investment Group, a Turkish-owned factory 20 km (13 miles) west of the capital.

“We all struggled to make ends meet beforehand. We can now afford proper healthcare or sending a child to school,” Desta, who did not give his surname, added.

CHEAP POWER

With 90 million people already and annual population growth forecast to exceed 2 percent until 2030, the government is desperate to attract labour-intensive investment and jobs.

To this end, it says it has introduced incentives such as tax holidays and subsidised loans to investors with interest rates as low as 8 percent – below even the 9.75 percent benchmark rate in South Africa, the continent’s most developed economy.

Ethiopia is also investing heavily in hydropower to boost the scope of a grid that offers electricity at 5 U.S. cents per kilowatt hour, compared with 24 cents in neighbouring Kenya.

“The availability of power and the cost is cheaper than any other country in the world. We are providing power, land and labour all very cheaply,” said trade and industry minister Tadesse Haile, who wants Ethiopia to export $1.5 billion of textiles a year in five years, from just $100 million now.

Other east African nations such as Kenya and Uganda are also chasing textiles investment but cannot compete on input costs against Ethiopia, where wages are 60 percent lower than the regional average, said Jaswinder Bedi, Kenya-based chairman of the 27-nation African Cotton and Textile Industries Federation.

“Ethiopia is a new player,” Bedi said. “They are growing and they are growing rapidly.”

BOTTLENECKS

Even so, bureaucracy and transport impose a major cost on companies, leaving Ethiopia languishing at 141 in a World Bank global trade logistics index published last year.

Importing or exporting a container takes on average 44 days, compared to 26 for Rwanda, another landlocked East African nation.

“Our logistics costs are second to input,” Ayka Addis chief executive Amare Teklemariam told Reuters. “It affects the competitiveness of the company.”

To this end, the government says it is pouring funds equivalent to two thirds of GDP into new infrastructure every year, expanding the road network to 136,000 km by next year, from just 50,000 km in 2010.

It also has grand plans to build 5,000 km of railway lines by 2020 from less than 800 km at the moment.

“Infrastructure development is something Ethiopia is working seriously on,” Tadesse said.

http://www.reuters.com/article/2014/09/05/africa-investment-idUSL5N0R61WH20140905

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Yara Plans $2.5 Billion Gas-Based Fertilizer Plant in Africa

By William Davison

Yara International ASA (YAR), the largest publicly traded nitrogen-fertilizer seller, said it plans to build a $2.5 billion plant in west or east Africa once gas projects come on-stream toward the end of the decade.

Yara has held initial talks with governments in countries such as Tanzania, Angola, Ghana, Nigeria and Mozambique about building a “considerable and world-class” urea factory to produce for African and foreign markets, Chief Executive Officer Joergen Ole Haslestad said in an interview yesterday in Ethiopia’s capital, Addis Ababa.

“We would very much like to participate in greenfield fertilizer production developments,” he said. “This is probably three to four years down the road before it will materialize.”

Mozambique may become the world’s third-largest gas producer in 2018 after companies such as Eni SpA of Italy and Woodlands, Texas-based Anadarko Petroleum Corp. begin output from reserves estimated at 250 trillion cubic feet. Tanzania, which has the biggest reserves in east Africa after Mozambique with 46.5 trillion cubic feet, expects that figure to exceed 100 trillion cubic feet within the next two to three years, Energy Minister Sospeter Muhongo said in February.

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Joergen Ole Haslestad, Chief Executive Officer of Yara International ASA.

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Latin America

Yara acquired Brazil’s Galvani Industria Comercio e Servicos SA for $318 million last month to expand further in South America. It bought Bunge Ltd.’s operations in Brazil for $750 million in December 2012 and OFD Holding Inc. from Omimex Resources Inc. for $425 million in November last year.

“Obviously the west part of Africa is good for Latin America where have big operations,” Haslestad said about the export possibilities from the planned fertilizer plant. “So we can take advantage of that.”

Yara, based in Oslo, plans to add to its existing seven African bagging and warehousing facilities by opening a $20 million unit close to the harbor in Dar es Salaam, Tanzania’s commercial capital, in October. It plans a similar venture in Ghana once the economic situation improves in that country, Haslestad said.

The West African nation has turned to the International Monetary Fund for help in rescuing its currency, which has lost 37 percent against the dollar this year.

A decision on whether to proceed with potash extraction at Yara’s majority-owned project in northeast Ethiopia will probably be made early next year, he said. Production of sulphate of potash for export could then begin three years later from what would be a $1 billion project, according to Haslestad.

“There will be resources enough for having mining operations there for the next 30 to 40 years,” he said.

The company expects to see sales grow “gradually” in Africa, which is the world’s fastest-growing fertilizer market, he said.

Yara rose 0.2 percent to 309.60 kroner at 3:49 p.m. in Oslo, extending the gain this year to 19 percent.

http://www.bloomberg.com/news/2014-09-02/yara-plans-2-5-billion-gas-based-fertilizer-plant-in-africa.html

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Under Construction: Uganda’s First Fertilizer Plant

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By Godfrey Olukya

http://in2eastafrica.net/tororo-fertilizer-plant-set-to-be-launched/” width=”620″ height=”350″ />

Tororo fertilizer plant

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More than 1200 local Ugandans and about 100 Chinese workers will be employed at Uganda’s first phosphate factory, under construction by a Chinese company, the Ugandan president promises.

President Yoweri Museveni launched construction in August of Sukuru Phosphate Project in Eastern Uganda Tororo district, promising jobs. He appealed to area residents to produce more food that they can sell to a large population of employees working in the factory.

Siraj Sinde lives near the site where the factory is to be established. “We welcome the project,” Sinde told AFKInsider. “It is going to get us jobs. Many youths here are unemployed and therefore such a project is appreciated.”

Until now, Uganda and neighboring countries have had to import fertilizer from other countries at exorbitant prices, according to a statement from the Ugandan government. With the $620-million factory, the country plans to change that.

Although phosphates were discovered in Eastern Uganda in 1960, the resource wasn’t exploited because the government said it had no capital to establish a factory to make fertilizers.

Ministry of Energy official Micheal Kizza blames Idi Amin’s dictatorship and subsequent regimes for making it difficult to get investors interested in exploiting phosphates. During Amin’s brutal rule from 1972 to 1979, Asians and other foreign investors were expelled from the country.

Museveni helped restore sanity and foreign investors started coming back, Kizza said.

“The Chinese expressed interest in exploiting the phosphate by making fertilizers and the government made an agreement with them,” Kizza said.

It is the only phosphate project in Uganda. Apart from making fertilizers, other byproducts of the mineral will also be manufactured at the site.

“I am glad to come here to start the construction of this project,” Museveni said on Ugandan national TV. “You people of Tororo will get jobs. You can grow more food and sell some to the workers. If I was here, I would get rich because I would sell my milk to the workers and earn money.”

The $620-million plant will include a complex of factories with an annual production of 300,000 tons from the phosphates plant, 300,000 tons from a steel plant, 200,000 tons from the sulphuric acid plant, 100,000 tons from a rare Earth factory, 300,000 tons of gypsum from a gypsum plant and 12-megawatts of electricity from the waste heat power-generation plant, according to a government statement.

The plant is expected to start production in December 2016 and to employ more than 1,200 Ugandans. The mineral deposits at Sukuru Phosphate Project are expected to last more than 100 years and generate $350 million annually, the Ugandan government says.

Museveni performed a groundbreaking ceremony with Lv Weidong, president of Guangzhou Dongsong Energy Group Co. Ltd.

In his speech, Museveni said the government spent more than $40 million to explore minerals in the country in a geological survey. He said the minerals belong to the state and proceeds will be used for strengthening infrastructure and education.

Museveni congratulated the Chinese company for overcoming hurdles that threatened the start of the construction, including corrupt government officials who wanted to bribes.

“I would like to congratulate these investors. They did what they told me within a short time. They will bring us other investors. These people have built a lot of capacity. They can help us also build our capacity,” Museveni said in a statement.

Prime Minister Amama Mbabazi said phosphates offer Ugandans opportunities, especially
in the agricultural sector which accounts for 30 percent of total economic output.

http://afkinsider.com/69632/uganda-getting-first-fertilizer-factory/

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American And Canadian Investors Meet Ethiopian Government To Explore Phase 2 Of Power Sector Transformation

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Powering Africa: Ethiopia will take place from 20-21st November 2014 in Addis Ababa

The Powering Africa Ethiopia Executive Meeting connects Ethiopia’s government and energy ministries with international and local power and infrastructure developers and financiers seeking new investment opportunities within the region.

Government Finalizes Preparations to Support Commercial Farmers

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Ministry of Agriculture announced that it has been making preparations to solve the challenges investors in commercial farming face.

The ministry is striving to engage more investors in farming cotton, wheat and the likes, it was also indicated.

Agricultural Extension Director- General with the ministry, Tesfaye Mangiste, said the government encourages investors that fill the demand and supply gap of agricultural produces.

Preparations are this Ethiopian fiscal year finalized to address well ahead the problems commercial farmers raise and provide inputs, experts and training to further motivate farmers, he added.

More than 183 investors are currently engaged in cultivating wheat and efforts are underway to increase the number of investors in the sector by expanding on their experiences, the director-general pointed out.

The ministry called on investors to effectively make use of the policy and benefit themselves and the country.

Even if many investors are engaged in the agricultural sector, the government would give special support to investors cultivating cotton and wheat in the present budget year, it was pointed out.

A consultative forum that brings together investors, associations and unions would be created to solve the problem of market raised by wheat producing farmers.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2226:government-finalizes-preparations-to-support-commercial-farmers&Itemid=200

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Relations between Ethiopia, European Union Register Significant Growth

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The relations between Ethiopia and the European Union (EU) have been showing significant growth as their friendship is based on mutual benefits and is strategic, Ethiopia’s Permanent Envoy and Plenipotentiary to EU said.

The envoy, Ambassador Teshome Toga, told ENA that Ethio-EU relationship is based on mutual benefits and on strategic principles.

Ambassador Teshome, who pointed out the close working relationship Ethiopia, has developed with the European Union Commission and the EU Parliament, said the country has been receiving huge support from the union for its development activities.

He also said the trade relationship is strong and 40 percent of Ethiopia’s export goes to EU member countries while foreign direct investment flowing from the union to Ethiopia has been increasing.

Ethiopia is benefiting from the development aid extended to 79 African, Caribbean and Pacific countries, the envoy said, adding that the union would further give 200 million Euros to Ethiopia for human rights and related issues through its development fund.

The support of the union to Ethiopia is strong and comprehensive as the EU appreciates the role Ethiopia has been playing in bringing about sustainable peace and stability to Africa, and East Africa in particular, Ambassador Teshome elaborated.

The peace keeping role of Ethiopia in Somalia and South Sudan has for instance been winning support in various ways, he added.

According to the envoy, the European Union has allotted 745 million Euros that would be used for agriculture, food security, infrastructure building, education and health from 2014 to 2020.

Out of the 28 EU member countries 20 have embassies in Addis Ababa.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2224:relations-between-ethiopia-european-union-register-significant-growth&Itemid=260

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Ethiopia’s Trade Relations with Middle Eastern Countries Growing

Ethiopia’s trade relation with Middle Eastern countries is growing, according to Ambassador Abdulkadir Rizku.

In an exclusive interview with ENA, Ethiopia’s Special Envoy and Plenipotentiary for United Arab Emirates Abdulkadir stated that demand for the agricultural products of Ethiopia in the Middle East market has been growing.

He also said investors in the region are making Ethiopia their investment destination.

The ambassador said Ethiopia decided to open its embassy in Abu Dhabi in January considering the fact that the city has a good market for any trade and investment.

Investors have channeled their capital into the country as the embassy carried out promotional works that explained the investment opportunities in Ethiopia to big businesspersons in Abu Dhabi and the surroundings, Ambassador Abdulkadir explained.

The ambassador recalled that a 35-person business delegation led by the country’s Economy Minister, Sultan bin Saeed Al Mansoori, visited Ethiopia in March to discuss about the investment opportunities in Ethiopia.

As a result, Emirati investors are currently engaged in exporting agricultural, horticultural and floricultural products as well meat and fattening animals.

The embassy is also working to protect the rights of Ethiopians living in the area, according to Ambassador Abdulkadir who added that associations of communities and coordinating office for mobilizing support for the Grand Renaissance Dam have been established.

In these regard, the embassy has facilitated the effort of the Ethiopian Diaspora to pledge 216,000 USD and deposit over 80,000 USD, he concluded.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2227:ethiopias-trade-relations-with-middle-eastern-countries-growing&Itemid=199

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EEP says Gibe III 87 % complete

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Some 87 % of Gibe III hydropower project has been completed, according to the Ethiopian Electric Power (EEP).

Once completed, the Gibe III project under construction on Omo River in Ethiopia will generate about 1,870 megawatt (MW).

Work on the project is being expedited,’ external relations head at EEP, Miskir Negash, told WIC. “Electrical and mechanical works are nearing completion,” he said.

Upon completion, the project housing 10 turbine units with a power of 187 MW each will increase the electric energy coverage in the country by 94 percent, he said.

According to him, two of the ten turbine units will begin generating electric power this Ethiopian budget year.

Installation of electric transmission line is also underway in conjunction with the construction of the project, he said.

In addition to improving their socio-economic benefits, the project protected residents of the area from frequent flooding, he said.

According to Misiker, over 7,500 Ethiopians and 120 foreigners are taking part at the project.

Gibe III hydropower project was commenced in 1999 EC, it was learnt.

http://www.waltainfo.com/index.php/explore/14870-eep-says-gibe-iii-87-complete-addis-ababa-5-september-2014-wic-some-87-of-gibe-iii-hydropower-project-has-been-completed-according-to-the-ethiopian-electric-power-eep-once-completed-the-gibe-iii-project-under-construction-on-omo-river-in-

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Ethiopia in Category 1 in Aviation Safety Assessment of FAA

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Following months of examination, the US Federal Aviation Administration (FAA) has reportedly confirmed that the Ethiopian Civil Aviation Authority (ECAA) is in category 1 in the aviation industry.

The Ethiopian Civil Aviation Authority told ENA that FAA’s official letter has reaffirmed that Ethiopia has maintained its status of belonging to category 1 in the aviation industry.

The Ethiopian Civil Aviation Authority is in the stated category for its operational organization, air space licensing and supervision as well as flight safety, it was indicated.

According to State Minister of Transport Getachew Mengiste, the certification by FAA has enabled the Ethiopian Airlines to secure flying permits to the US, Europe and other continents without difficulty.

He added that the air traffic of the country has registered over 20 percent growth on average during the previous years.

Authority Director-General Colonel Wesenyeleh Hunegnaw on his part said Bole International Airport alone has been accommodating over 200 airplanes in a day. Duration of landing and takeoff have also fallen under three minutes, he added.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2225:ethiopia-in-category-1-in-aviation-safety-assessment-of-faa&Itemid=200

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Filed under: Ag Related, Economy, Infrastructure Developments, News Round-up Tagged: Africa, Agriculture, Allana Potash, Business, East Africa, Economic growth, Ethiopia, Investment, Millennium Development Goals, Potash, Sub-Saharan Africa, tag1, United States

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Ethio-Canada business summit opens in Toronto

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Alongside the first Canada-Africa 2014 Business Summit, the Ethio-Canada Business and Investment Summit also opened on Monday in Toronto.

This four-day meeting is co-organized by Wafa Marketing and Promotion PLC, the Ethiopian Embassy in Canada and Ethiopian Chamber of Commerce and Sectoral Associations in collaboration with the Canadian Embassy in Ethiopia, Ethiopia’s Ministry of Mines, TFO Canada, and CCAfrica.

It is specifically showcasing the value of doing business in Ethiopia.

It also aims at bringing together the two business communities to build more comprehensive and closer bilateral ties based on mutual benefit and common prosperity, deepen business-to-business ties through success stories from business persons and industry experts.

The summit in addition briefs Canadian investors on Ethiopia’s current and future economic trajectory, investment landscape and opportunities.

Ambassador Taye Atske-Selassie, Director-General of American Affairs in Ethiopia’s Foreign Ministry, opening the meeting, called for the continued growth of the bilateral ties of the two nations.

Ambassador Birtukan Ayano welcomed the role of Ethiopia as a Country of Focus within the auspices of the Canada-Africa Business Summit.

She said: “Ethiopia is poised to become a new frontier for FDI in Africa,” adding that this Summit would encourage and help Canadian investors to participate in Ethiopia’s rapid and sustainable economic growth and tap into the tremendous investment potential of the nation.

She stressed Ethiopia has a lot to offer Canadian development partners including a vibrant and trainable labor force, easily accessible and cheap utility services and a decade of double digit economic growth.

Permanent Representative to the AU, Ambassador David Usher said that this Summit could be seen as a reflection of the need for a growing cooperative economic partnership.

He also noted Ethiopia’s fast growing economy underlined the need to renew the strategic partnership of the two countries.

The current economic growth in Ethiopia, he said, was already generating an increasing business interest from Canadian companies.

Zemedneh Nigatu, Managing Partner of Ernst and Young, presented reasons of investing and doing business in Ethiopia with the theme “Investing in Emerging Ethiopia.”

He detailed ten reasons including Ethiopia’s growing economy and macro-economic stability, demographic advantages, rapid urbanization, its role as a manufacturing hub of Africa, massive infrastructure development, and energy infrastructure development, untapped agricultural resources, tourism, and favorable operating business environment.

The Ethio-Canada Business and Investment Summit is also showcasing panel discussions, question and answer sessions, and deliberations on Ethiopia as a Country of Focus within the Canada-Africa Business Summit.

http://www.ertagov.com/news/component/k2/item/3157-ethio-canada-business-summit-opens-in-toronto.html

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Eleven Companies in Tight Run to Win 900,000tn Fertiliser Tender

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Farmers are recommended to use one quintal of DAP and one quintal of Urea for a hectare of land in which the quantity varies based on the type of the soil.

(Editor’s note:) The 1-1 urea-DAP application is found to be inappropriate in many of the soils after testing and trials, thus the operation of numerous blending plants in various parts of Ethiopia will mix fertilisers in future to match crop and soil requirements more adequately. The blends will feature much more potassium and other nutrients than has been the case to now.

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- The tender has been split into 11 different lots, in order to avoid overlaps

The government will shortly announce the companies it has selected for the supply of nearly 900,000tns of fertiliser.

A total of 11 companies have responded to the August 2014 tender by the Agricultural Input Supply Enterprise (AISE), only one of them making an offer for each of the two kinds of fertiliser the Enterprise wants, Urea and NPS. This is the second year in a row that the enterprise is buying NPS, a replacement for DAP, which it dropped two years ago.

The Enterprise seeks to procure 521,000tn of NPS and 373,000tn of Urea. NPS has become favoured over DAP, because it has everything DAP has and Sulphur, according to Amarech Bekelle, communications directorate at the Enterprise.

The financial opening, on September 10, 2014, showed that the lowest offer for Urea was 381.5 dollars a tonne – nearly 90 dollars cheaper than the 470 dollars the previous year. NPS was also slightly cheaper, going down from 435 dollars to 416 dollars a tonne. The highest offers now for Urea and NPS were 458 dollars and 632 dollars.

The least offer for Urea, 381.5 dollars, came from Yara Switzerland Ltd – a Swiss based international grain and fertiliser trader with a history of financial awards to Ethiopian officials through yara International, of which it is a subsidiary. Its first awardee was the late Prime Minister Meles Zenawi, who received 300,000 dollars. Then followed another prize of 30,000 dollars to Eleni Gebremedhin(PhD), former CEO of Ethiopian Commodity Exchange (ECX). Its latest award of 60,000 dollars, about 1.2 million Br, went to Tekalign Mamo (prof.), state minister for Agriculture and advisor to the Minister, early this month. Yara has been a regular in Ethiopia’s fertiliser market for many years.

The lowest bid for NPS, 412 dollars, was made by NAMPGC Holding Corporation – a Chinese international grain and fertiliser trader.

From the total 11 lots, Yara offered the lowest price for eight of both Urea and NPS, NAMPGC Holding Corporation for two lots and CHS Europe SA, a Swiss based company, for the remaining one lot. The tender was floated in five lots for NPS and six for Urea.

The price of a tonne of Urea stood at 321.88 dollars in the international market on August 31, 2014, according to YCharts – a provider of financial information based in Chicago and New York (US). This is an 18 dollar increase from a month ago, July 31, but a decrease of 53 dollars from the same time a year ago.

The auction was divided into 11 different lots to avoid overlaps in the delivery to the Enterprises and at the Djibouti port, said Amarech.

The Agricultural Inputs Supply Enterprise (AISE) is a public enterprise established in 1985 and accountable to the Ministry of Agriculture (MoA). The Enterprise has 31 million Br in assets, including 22 warehouses, seven distribution and sales outlets and 36 vehicles. It managed to achieve a net profit of 35.4 million Br during the 2011/12 fiscal year and 35.6 million Br during the following year.

The AISE buys and distributes agricultural inputs, including fertilisers, farming chemicals, different kinds of seeds, plant and animal medicines and vaccines, and laboratory equipment.

The Enterprise imported 552,000tn in 2010/11 and 560,000tn the following year. Its import s in 2012/13 was down to 477,000tns.

The government is constructing four fertiliser factories in the Tigray, Amhara, Oromia and Southern regional states, with annual capacities of 25,000tns each.

The fertiliser steering committee will select the companies that will make the supplies in a short period of time, after analysing the financial offers and the companies that produce the fertilisers, said Getenesh Ashenafi, director general of the Enterprise. The committee is composed of representatives from the Ministry of Agriculture (MoA), the National Bank of Ethiopia (NBE), the Commercial Bank of Ethiopia (CBE) and the Ministry of Finance & Economic Development (MoFED).

http://addisfortune.net/articles/eleven-companies-in-tight-run-to-win-900000tn-fertiliser-tender/

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Tecno Group favours Ethiopia ahead Nigeria for third assembly plant

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China-based handset manufacturer, Tecno Group has concluded plans to build a factory in Ethiopia to enhance its presence in African market, investigations have revealed.

BusinessDay learnt that Tecno, which already runs two factories in the Ethiopian capital, chose Ethiopia for the ‘third phase’ mobile phone assembly and production plant ahead of Nigeria because of what industry sources linked to security challenges facing Nigeria.

It is not clear whether the Tecno Group would still consider Nigeria for assembly plant in the future.

According to AllAfrica, an online news report, the “Ethiopian government has already dedicated an investment area for the establishment of an ICT park to support the development of ICT. The foundation stone preparatory to the plant was laid for Tecno Group in the park which is under construction.”

Although the group vice president of the mobile phone brand, Arif Chowdhury, had last year assured that the company would build its African plant in Nigeria, it is not clear whether the company would live up to this promise or it has made a u-turn.

On the planned plant in Nigeria, Chowdhury says in a report that “Nigeria is Tecno’s biggest market in terms of volume, and Lagos will be the location of the plant because Lagos is not just the commercial nerve centre of Nigeria but also the economic capital of Africa.”

The company is still waiting for the right policies of government on duty structure for mobile phone imports to finalise their plans in building the plant, he says.

But reports indicate that the Tecno Group has made significant progress in its factory construction in Ethiopia where it started operations in 2009, and has employed about 400 workers.

Nigeria, the largest market in Africa with largest population, must have over time influenced Tecno’s business growth, a situation analysts believe would have influenced the company’s choice of where to set up its third African assembly plant.

http://businessdayonline.com/2014/09/tecno-group-favours-ethiopia-ahead-nigeria-for-third-assembly-plant/

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Lavrov to talk oil, Ukraine next week

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A delegation of eight giant companies headed by the Russian Foreign Minister, Sergey Lavrov, will visit Ethiopia on Wednesday, September 17. Sources told Capital that Lavrov will come to Addis Ababa for a one-day official visit. The purpose is to strengthen economic and political ties between Ethiopia and Russia.

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According to the information obtained by Capital, Lavrov will meet with Prime Minister Hailemaraim Desalegn, Foreign Minister Tedros Adhanom (PhD) and other senior government officials and discuss bilateral issues. He is also expected to hold talks with Dr. Nkosazana Dlamini Zuma, Chairperson of the African Union Commission. He first came to Addis Ababa in 2006.
The visit of Lavrov, apart from the business talks, will focus on the embattled region of Ukraine.

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According to sources, Russian energy and oil and gas company executives will be part of the business delegation that include officials from Gazprom.

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In July this year, officials of GPB Global Resources, a unit of Russia’s state-owned Gazprombank Group, said that the company may invest about USD 60 million searching for petroleum in northeastern Ethiopia. The company announced it won approval from the Ethiopian government for a production-sharing agreement that covers seven years for exploration and 25 years for production. Investment for exploration will focus on conducting surveys and drilling test wells in a 42,000 square kilometer (16,200 square mile) area in the Afar region that forms part of East Africa’s Rift Valley.

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Russians are not new to the Ethiopian oil exploration sector. During the socialist era, Soviet Petroleum Exploration Expedition (SPEE) was prospecting for oil and gas in the Ogaden Basin in the 1980s. Russians were involved in the mining sector too. It was Russian Geological Survey that discovered the Kenticha tantalum deposit in Borena Zone, Oromia Regional State. They also discovered the Legedembi primary gold reserve, which MIDROC Gold is currently mining. Russian companies also want to develop hydropower projects in Ethiopia. Sources said the Russian delegation will meet the minister of Water, Irrigation and Energy, Alemayehu Tegenu, to discuss the investment opportunities in the energy sector.

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There are currently more than 30 Russian companies investing  in Ethiopia. Russian companies are also interested in the Ethiopian national railway network development. Russia is a major arms supplier to the Ethiopian army. The Ethiopian Air Force and ground forces are equipped with Russian military artillery.

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Ethiopia exports agricultural products to Russia. So far Russians buy Ethiopian flowers from the Netherlands. Ethiopian Airlines is in the process of starting passenger and cargo flights to Moscow.

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According to the official website of the Ministry of Foreign Affairs, Ethiopia and Russia have longstanding historical relations going back to the period of the Russian Czar Machilovich, the father of Peter the Great, in the 17th century. Historical records indicate that Alexander Pushkin, a renowned Russian writer, was a grandson of Abraham Hannibal, an Ethiopian who was presented to Peter the Great by Suleiman the Magnificent. He was baptized in Vilnius, Lithuania, by Peter the Great on his return from defeating the Swedes.

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Other early contacts between Russia and Ethiopia include the visit of an Ethiopian delegation sent by the Emperor Menelik II to Russia, and visits of several Russians to Ethiopia during Menelik’s reign, at least one of whom was given the title of Dejazmatch for his travels on behalf of the Emperor along Ethiopia’s southern boundaries. These contacts laid the foundation for close relations of the two countries, based on mutual respect and friendship between the two peoples. And it is notable that regardless of the differing political systems that existed at various times, relations between them have continued to be close and friendly.

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One demonstration of that friendship has been that Russia has always, and without fail, stood with Ethiopia whenever the sovereignty of Ethiopia was threatened. Russian solidarity with Ethiopia was first illustrated when the Russian Red Cross Society came to Ethiopia in 1896, at the time of the Battle of Adwa when Italy attempted to attack the country. It made an outstanding contribution in the provision of medical supplies at Menelik Hospital and care to the Ethiopian patriots on the battlefield and subsequently. Again, during the fascist invasion of Ethiopia in 1936, Russia was one of those countries which stood in solidarity with Ethiopia. It has done so on every occasion throughout the 20th century whenever Ethiopia faced challenges to its sovereignty and its core national security interests. In short, the bonds that exist between Ethiopia and Russia have stood the test of time and have proven their strength time and again.

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In recent years, there have been increased visits of high level officials between the two countries. Major visits have included former Prime Minister Meles Zenawi’s trip to Moscow in December 2001 and the then Foreign Minister Seyoum Mesfin in November 2007. Prime Minister Hailemariam Desalegn (the then Deputy Prime Minister and Minister of Foreign Affairs) and Alemayehu Tegenu, Minister of Water, Irrigation and Energy, visited Russia in August and October 2011 respectively.

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From the Russian side former Russian Prime Minister, Mikhail Kasyanov, came to Ethiopia in September 2002; and Russian Foreign Minister Sergey Lavrov came here in September 2006.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4541:lavrov-to-talk-oil-ukraine-next-week&catid=35:capital&Itemid=27

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Aluto-Langano Geothermal Plant to go operational in April

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The Ministry of Water, Irrigation and Energy said the Aluto-Langano Geothermal Power Plant with installed capacity of 70MW would go operational this fiscal year.

Energy Study and Development Follow-up Director Gosaye Mengistie told ENA over 78 per cent of construction of the geothermal plant has so far finalized. It is expected that the plant will commence operation in April.

Launched in 2013, the expansion of the Aluto-Langano Geothermal Power Plant will increase the country’s generation capacity from geothermal to 70MW power from the current 7MW.

The expansion project is financed by 12 million USD grant from the government of Japan, 13 million USD loan from the World Bank and 10 million USD from the government of Ethiopia, the Director added.

Located in the Rift Valley Lakes Region, the Aluto-Langano Geothermal Power Plant is the first geothermal power plant in Ethiopia. The plant was established in 1998 as a pilot project to test the geothermal resources in the area, according to Gosaye.

The nation has set target to generate 1,000MW from two geothermal plants, Tendaho and Corbeti geothermal plants, in the coming few years, he added.

The Tendaho power plant due to be undertaken in Afar state, north eastern part of the country, will have a capacity to generate 100MW.

The nation has also signed agreement with a US- Icelandic private developer Reykjavik Geothermal (RG) to construct Africa’s largest geothermal plant. The Corbeti geothermal project the country due to built with 4 billion USD will be

Africa’s largest geothermal plant, with 1,000MW installed power.

Construction of this plant, which will be undertaken in two phases, each with 500MW installed capacity with an eight to 10 year period.

These projects are part of the government’s plan to raise power generation capacity to 10,000MW by 2015, in order to meet the growing demand.

It is estimated that Ethiopia has a potential to generate up to 5,000MW from only geothermal.

“Although the nation has huge potential for geothermal energy, it doesn’t so far benefit from it. We set target to undertake various activities and change this situation,” he said.

Twenty two power generator sites, with huge geothermal potential have identified so far in the rift valley system, he added. Activities are being undertaken to develop this potential.

“First we have been conducting survey on about 18 places with huge geothermal potential. But now the number of places identified as having with huge potential has reached 22.”

Places like Dalol, Tendaho, Abi, Tiye, Meleka, Dafan, Fentale, Gedemesa, Tulu, Moye, Aluto Langano, Corbeti, and Abaya are among the places identified with huge geothermal potential.

Development of renewable energy will have economic and environmental benefits, said the Director. These projects will help the nation realize the vision to build green economy by 2025.

Utilizing the country’s potential for geothermal energy would help address the increasing demand for electricity, he added. It is estimated that the country’s demand for electricity increases by 25 to 30 percent annually.

http://www.waltainfo.com/index.php/explore/14994-aluto-langano-geothermal-plant-to-go-operational-in-april-

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Ethiopia Establishes National Kaizen Council

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Addis Ababa September 16/2014 – A National Kaizen Council that aims at disseminating the Kaizen philosophy throughout Ethiopia was established here on Wednesday, September 16, 2014.

Speaking during the establishment of the council, Prime Minister Hailemariam Dessalegn, who is also chairperson of the council, said Ethiopia has the capacity to implement Kaizen philosophy assisted by its numerous educational institutions.

The premier stressed that the council should be a champion of change in disseminating Kaizen philosophy and creating nationwide mobilization.

Regional Kaizen councils need to take a lead in disseminating Kaizen philosophy in their respective areas, he added.

The Prime Minister also underscored the need to mobilize the required human resources by designing curricula that incorporate Kaizen philosophy at different levels of education.

According to Hailemariam, the council should give priority to creating awareness among the general public and making the public clearly understand the essence of Kaizen. The mass media need to play big role in instilling Kaizen philosophy among the public.

The Prime Minister finally declared Meskerm, this first month of the Ethiopian year, ”Kaizen month”.

Industry Minister Ahmed Abitew on his part said the establishment of an Ethiopian Kaizen Council, in addition to the formation of Kaizen Institute earlier, shows the country’s commitment to the realization of Kaizen philosophy.

Ahmed added that the Ethiopian Kaizen Institute has played substantial role in transferring, implementing, sustaining and owning the Kaizen philosophy, despite its only two years existence.

According to him, the steady assistance of Japan International Cooperation Agency (JICA) and the Ethiopian government are the reasons for this success.

The minister said 79 industries have implemented the Kaizen philosophy and  20,467 management and frontline workers trained and organized under 3,590 Kaizen Promotion Teams (KPTs) during the past two years.

He further cited JICA’s evaluation report as saying that Ethiopia’s Kaizen project is one of the best in Africa and the achievements can be bases for JICA’s human resource development project in Ethiopia.

Director-General of the Ethiopian Kaizen Institute (EKI), Getahun Tadesse, told ENA that the institute has undertaken significant change in work place relations and modernized work practices that ultimately improve product and productivity.

The philosophy also brings success in increasing productivity, decreasing wastages, improving work place safety and quality of production, he added.

Sugar Corporation and the privately-owned Peacock Shoe and Awash Leather companies have made significant change by implementing Kaizen, according to the director-general.

The Ethiopian Kaizen Council, chaired by Prime Minister Hailemariam Dessalegn, consists of ministers, university presidents, Ethiopian Chamber of Commerce and Sectoral Association, Media CEOs and professional associations.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2272:ethiopia-establishes-national-kaizen-council&Itemid=260

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First Ethiopian science museum opens in Addis

The first Science Museum of Ethiopia, which is said to help promoting science and research in the country, has been opened Monday at the Addis Ababa Science and Technology University.

The University has established the museum and Engineering and Mathematics Center, in cooperation with Israeli aid agencies based in the US.

Minister of Education Shiferaw Shigutie said on the opening ceremony that the museum levels up students understanding for science, and as a result contributes for the industry led economic policy of the nation to be followed in the near future.

The Addis Ababa Science and Technology University president Dr. Tarekegn Tadesse said for his part that students at all levels can make use of the museum with the center, for upgrading their knowhow in science.

The center built with 16 million Birr displays different research results and indicates the level of science at present, he added.

Students and educators can visit the museum and the center to help advance their knowledge and expertise in science, it was indicated.

http://www.ertagov.com/news/component/k2/item/3153-first-ethiopian-science-museum-opens-in-addis.html

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ERA Awards Two Chinese Companies 5b Br Road Projects

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-  The two projects are part of the ERA’s Fourth Road Sector Development Program (RSDP IV)

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The 220Km asphalt road from Dire Dawa to Dewalle will be constructed by CGC Overseas Construction Group for 3.99 billion Br.

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The Ethiopian Roads Authority (ERA) has awarded two contracts worth five billion Br to two Chinese companies for the construction of two roads in eastern and southern Ethiopia.

CGC Overseas Construction Group will contruct a 220Km asphalt road from Dire Dawa to Dewalle for 3.99 billion Br, while China Tiesiju Civil Engineering Group Co Ltd will be paid 1.1 billion Br for a 107Km asphalt road from Konso to Yabelo.

The CGC’s road will have a 10m carriageway in urban areas and 15m elsewhere. It is expected to finish the road within three years from September 2014, with the consultancy of Shandong XinQiDian Overseas Consulting Ltd Co.

Fifteen percent of the project’s finance will be covered by the Government of Ethiopia and the remaining by the Export Import (EX-IM) Bank of China. The 3.73 billion Br loan was approved by the House of Peoples Representatives (HPR), on June 26, 2014.  The loan, which has a two percent interest and a seven year grace period, is payable in 20 years.

CGC Overseas has been operating in Ethiopia since 2003. It has so far completed five projects and is currently working on eight others. The completed projects include a 22Km asphalt road from Chole to Magna, the Dodola Junction to Goba road and the Dera to Gololcha Mechara road, all in the Oromia region, as well as a road project from Kombolcha to Mekaneselam.

The China Tiesiju Civil Engineering Group Co Ltd will make an asphalt concrete road from Konso to Yabelo, a 107Km distance it is expected to complete in three years and five months.

The road has a 10m carriageway in rural areas and 19m in urban areas. It includes 340 drainage pipes and five bridges, along with other structural works. It will be consulted on by the joint venture of Omega Consulting Engineers Plc, a local firm, and a Ugandan firm, Prome Consultants Limited.

China Tiesiju has already constructed an asphalt road from Yabelo to Mega for 770 billion Br. The Yabelo-Mega 100Km long road is part of the 1,000Km Mombasa-Nairobi-Addis Abeba Road Corridor.

The first contract was signed between Zaid Woldegabriel, the ERA’s general director, and Qin Lijing, deputy general manager of CGC Overseas Ethiopia, at the ERA’s headquarters on Ras Abebe Aregay Street, near Mexico Square. But the second project signing ceremony was put back until the coming week because of the absence of the representatives of the contractor who were at project sites.

Qin Lijing, deputy general manager of CGC Overseas Ethiopia (left) promising to Zaid Woldegabriel, the ERA’s general director, to deliver the road on time.

The Dire Dawa-Dewalle road will improve the road link with Djibouti and help to transport raw materials and finished products to and from the industrial zone soon to be constructed at Dire Dawa, as well as simplifying the traffic flow of the route, according to Ziad.

The above two projects are part of the Fourth Road Sector Development Program (RSDP IV) of the ERA, for which implementation costs are estimated to reach 125.3 billion Br. Out of this, 84.5 billion Br is allocated for federal projects, 14.4 billion Br for regional ones and 26.4 billion Br for weredas.

The RSDP was formed as part of the government’s Growth & Transformation Plan (GTP), and is in charge of the rehabilitation of 728Km of trunk roads, the upgrading of 5,023Km of trunk and link roads, the construction of 4,331Km of new link roads, the heavy maintenance of 4,700Km of paved and gravel roads and routine maintenance of 85,649Km of road network. The ERA has rehabilitated, upgraded, constructed and maintained 41,664Km of roads as of June 2013, at a cost of 81.8 billion Br, of which 60.6 billion Br was on federal roads.

The ERA expects the total road network in the country to reach 136,044Km by the 2014/15 fiscal year, from the 48,793Km coverage it had in 2010. Ethiopia’s road density has increased from 24Km in 1997 to 78Km in 2013, with total roads growing from 26,550Km in 2009/10 to 100,000Km in July 2014.

http://addisfortune.net/articles/era-awards-two-chinese-companies-5b-br-road-projects/

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Roads Authority Plans 600km of New Roads at Cost of 6.6b Br

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-  The authority has a long-term plan to increase the road coverage in the city to 25pc by 2020

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The Bole road which extends from the Mesqel Square to the Bole Bridge along with the Africa Avenue.

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The Addis Abeba City Roads Authority (AACRA) has allocated 6.6 billion Br to add just over 600kms to the city’s road network during the current 2014/15 fiscal year. The plans for the year include the temporary expansion of the crowded Akaki Kaliti-Tulu Dimtu road.

The city currently has 4671km of road, which it wants to increase to 5275km – a coverage increase from 17.5 to 19.8pc, with a long term plan of 25pc coverage by 2020, according to Fekade Haile (Eng), head of the Authority, who spoke during a press conference at his office on Tuesday, September 09, 2014.

The authority has secured 6.12 billion Br from the Addis Abeba City Administration (AACA), 43 million Br from the Road Fund and a loan of 204.2 million and 178.2 million Br, respectively, from the Government of China and in aid from France.

The Authority will, however, require an additional 3.8 billion Br to complete its projects for the year, according to Fekade.

Fekade Haile (Eng) AACRA

“We are planning to ask the city administration to transfer unused budgets from other sectors to us at end of the fiscal year,” said Fekade.

The City Administration has allocated a 27.5 billion Br budget for the 2014/15 fiscal year for 10 sector offices. The Addis Abeba Water & Sewerage Authority (AAWSA) received 4.3 billion Br followed by the Housing Development Project Office, with 1.6 billion Br. The Education and Health bureaus got 1.4 billion Br and 1.1 billion Br, respectively.

The Authority’s expected 50 million Br from the Road Fund, which is only used for the maintenance and rehabilitation of existing roads, but got only 43 million Br, with Fekade blaming the shortfall to an outdated formula that the city started applying in 2006.

The AACRA will undertake its projects for the year using its own resources and by hiring contractors. Its projects include 49.66kms of new asphalt roads, all of which will be given to contractors, 35.75kms in the expansion of existing roads by itself and 26.64kms of asphalt roads at condominium sites.

It will also undertake the expansion of the Kaliti Akaki–Tulu Dimtu road project and the reconstruction of the Akaki Bridge. Additionally, it will undertake various projects around the light rail transit. It will also make 450kms of cobblestone roads, as well as increasing the number of people working at the cobblestone quarries to 50,000. The Authority says that it will complete the construction of 21 main bridges during the current fiscal year.

The Authority is still facing challenges to resolve right of way issues, including relocation of residents from project areas and the payment of compensation, which are delaying some of its projects. A taskforce will be established with the support of the city administration to solve the problem, Fekade said.

When the AACRA, which today employs 1,980 people, was established in 1999, Addis Abeba had 2,777km of road, with 11.8pc coverage.

http://addisfortune.net/articles/roads-authority-plans-600km-of-new-roads-at-cost-of-6-6b-br/

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Mexico working to deepen economic ties with Ethiopia

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The government of Mexico will work to expand the existing diplomatic relation with Ethiopia into economic cooperation, Mexican Ambassador to Ethiopia Alfredo Miranda said.

Speaking in a meeting organized to celebrate the 204th anniversary of Mexican Independence, the Ambassador said in spite of strong diplomatic ties, the economic cooperation between the countries doesn’t reach the desired level.

The two countries in the future should focus on implementing previous bilateral agreements to boost economic ties, he said.

Foreign Affairs State Minister, Ambassador Birhane GebreChiristos noted that Ethiopia is the first African country to start diplomatic relation with Mexico.

Mexico is among the few countries in the world that opposed the Italian invasion of Ethiopia.
He urged Mexican investors to come to Ethiopia and utilize the favorable investment atmosphere, business and investment opportunities and untapped resources.

Ethiopia and Mexico has enjoyed diplomatic ties for the past 65 years.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2271:mexico-working-to-deepen-economic-ties-with-ethiopia&Itemid=260

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Tigray undertakes watershed development on 1,300 hectares

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Watershed development was carried out on 1,300 hectares of land in Tigray regional state last Ethiopian budget year.

The development activities were carried out in all 186 kebeles (district) of the Regional State, Michael Miruts, public relations coordinator at the regional state agriculture and rural development bureau told WIC.

According to the coordinator, more than 22.7 million people organized in more than 90,000 teams took in the ecosystem-based approach for development.

In addition to fencing the over 267.9 hectares of land available in the regional state, some 174 million tree seedlings were planted in the reported period, he indicated.

He said the bureau is taking care of the 25 million seedlings planted in 670 Meles parks established in the regional state in 2005 E.C.

http://www.waltainfo.com/index.php/explore/14996-tigray-undertakes-watershed-development-on-1300-hct-

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Industrial minerals ‘widely’ used for manufacturing

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Industries are ‘widely’ using industrial minerals as inputs for the manufacturing of various products so as to lead the way for the nation’s vision to develop industry-led economy, the Ministry of Mines (MoM) said.

Potash, limestone, granite, marble, coal and minerals used to produce cement are the main industrial minerals being widely used in the country, according to Bacha Fuji, PR and Communications Director with MoM.

These minerals are being used by industries for the production of cement, marble, ceramic, paper and glass as well as fodder for cattle and poultry.

The country has huge potential for potash with 1.3 billion tons reserve. It is currently being used in industries engaged in chemicals, textiles, paints, detergent, glass and ceramic production.

In addition to being used as input for industrial products, these minerals are helping the country earn foreign currency. Last year alone the nation earned 541 million USD from export of these minerals, according to the Director.

Industrial mineral deposits in Ethiopia occur in various geological formations and are being used in a wide set of industries prominent among those being glass, ceramic and cement industries.

The main minerals available in large quantities include soda ash, potash, diatomite, bentonite, clay, common salt, gypsum, anhydrite, feldspars, talc, kyanite, magnetite, dolomite, graphite, quartz, mica, apatite, pumice, silica sand, kaolin, phosphate and silica.

The Ethiopian Geological Survey (EGS) has been generating, collecting and managing geo-information of the country for the last four decades.

It is working to identify major mineral reserves of the country and prepare a map which includes areas of mineral reserves and best locations for development, according to Tamru Mersha, PR and Communications Director with EGS.

According to him, the government has prioritized to develop industrial minerals that can be developed using small capital.

Development of minerals which improve soil fertility, such as phosphate, potash and limestone is also a task to which the government has given due attention, Tamru said.

http://www.ertagov.com/news/component/k2/item/3138-industrial-minerals-‘widely’-used-for-manufacturing.html

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COMESA – Australia Begin to Implement Mining Agreement

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COMESA and the Government of the State of Western Australia have begun to implement a Memorandum of Understanding (MoU) they signed in January this year on cooperation in various fields of development.

The MoU signed by Premier Colin Barnett of the State of Western Australia (WA) and COMESA Secretary General Sindiso Ngwenya in Lusaka, Zambia proposed to establish a framework for cooperation covering mineral and petroleum resources, agriculture, vocational training and capacity building.

The two principals and their technical officers met Thursday 4 September 2014 in Perth Australia and developed a draft work programme to implement the key pillars of the agreement. The meeting was held in the side-lines of the “African Down-Under (mining) conference” that took place from 3 to 5 September 2014. In the agreement, six focus areas are identified in the minerals sector; they include fiscal frameworks and mineral policy, strengthening human and institutional capacities, collection and management of Geo-scientific information, research and development, environmental and social issues; and linkages, diversification and cluster development.

A Joint Working Group (JWG) of experts drawn from COMESA and WA presented the draft work program for operationalizing the MOU which is expected to be finalized by the end of this month and implementation to begin in October.

The key priority areas identified include strengthening the legal and institutional framework of COMESA Member States, capacity building, and taxation and fiscal frameworks.

“We need to strengthen the legal and institutional frameworks of our member states to create the enabling environment to unlock the full value of our minerals and other natural assets and their full integration into local economies,” Mr Ngwenya said. “This was a crucial prerequisite for unlocking the value of minerals in the value chain thus contributing to regional economic transformation.”

He disclosed that COMESA has already started mobilizing resources to implement the articles of the agreement and that the United Nations Economic Commission for Africa (UNECA) had promised to support the initiative. He further said that request for additional funding has been made to the African Development Bank and the Africa Legal Resources Centre and favourable responses were expected.

He appealed to the Government of Western Australia and the Federal Government to also provide funding for the program to ensure its objectives are realized.

Premier Barnett said WA will work with COMESA States to ensure the host countries get a fair return on their natural resources and putting in place legal framework to secure the tenure of mining enterprises and environmental conservation. This include safety in the mines.

“We want to share our mining experience of 120 years with African States so that they do not make the mistakes that we did,” the Premier said.

The agreement with WA was borne of the fact that despite the often spectacular performance of mining in many African economies, the region continues to be the least developed in the world and its people remain the poorest. Further resource rich countries experience high levels of conflict and strife a situation that is described as the “Resource Curse”.

“It is a proven fact that successful resource driven economies have to employ six core elements to benefit from minerals resources,” Mr Ngwenya said.

These are; building the institutions and governance of the resources sector, developing infrastructure, ensuring robust fiscal policy and competitiveness, supporting local content, deciding how to spend a resources windfall wisely and transforming resource wealth into broader economic development.

The agreement with WA acknowledges that institutions that support mineral development in Africa are generally weak due to human skills deficiency and financial constraints and therefore inappropriate to effectively facilitate the role of minerals in development.

Further, the fiscal frameworks have largely been blamed for the failure of Governments in Africa to benefit from the boom in mineral prices during the last decade. In addition, mining expect a fair return based on risks taken while Governments wish to maximize the value of mining investment to fund social and economic infrastructure, as well as other national development priorities.

However, the capacity to negotiate mineral development agreements, and to monitor and regulate the exploitation of mineral resources is highly challenged. This has led to weak policy formulation and implementation, poorly managed regulation of company mining operations and mineral development contracts that do not deliver the full development benefits from mineral resources.

There is also need for research and development capacity in the COMESA region to support beneficiation and value addition to mineral products and the development of linkages and clusters in the sector. This is a key per-requisite for industrialization and the evolution of new products from mineral commodities.

http://www.comesa.int/index.php?option=com_content&view=article&id=1321:comesa-australia-begin-to-implement-agreement&catid=5:latest-news&Itemid=41

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30m Br Ethio-Swiss JV Set to Pilot Plastic Flakes for Export

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-  Production foreseen to create jobs through 604 SMEs to be involved in collection of waste

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The company was established in 2012, with a capital of 104 million Br, by Swiss and Ethiopian owners to recycle plastic products. Over the past two years, it has been producing plastic bottle preforms and closures using Polyethylene terephthalate (PET) – waste plastic bottles – which it recycled at its own plant. The new plant rests on a 5000sqm plot in Kality, Addis Abeba, whereas the existing factory is located in the Hana Mariam area.

Coba has been using up to 1,600kgs of waste plastics a month – supplied in jumbo bags holding 40kgs to 45kgs – for its operations so far. The commencement of the plastic flakes production could push its demand up to 15,000kgs a month, says Gabriel Amara, the Company’s general manager. The new plant has a production capacity of 700kgs of flakes an hour.

The Company has signed a memorandum of understanding with the Addis Abeba City Administration Cleansing Management Agency (AACA CMA) and the East African Bottling Company (EABC) – the maker of Coca Cola – to organise 604 small and micro enterprises (SMEs) to collect and supply waste plastic materials, including bottles.

The agreement made between the parties is a PET recycling project for which the EABC will spend 700,000 Br for the provision of safety materials, such as gloves, mouth masks, push carts and aprons, for the SMEs that will collect the waste plastics materials, said Anteneh Tegegn, the director of EABC’s Human Resources, public relations and legal department.

The EABC proposed combining this project with their Women Empowering Project, said Coba’s recycle head, leading to their involvement within three districts of Addis Abeba.

Coba will provide green bags for organic waste and blue bags for plastic waste. It will buy the plastic waste for three Birr a kilo, increasing the price to 3.60Br when the SMEs start issuing receipts.

The two companies together with the Cleansing Management Agency gave a one day training on solid waste collection to representatives from 604 SMEs on August 20, 2014, at the Hager Feker Theatre. The training addressed effective time usage, discipline, quality materials provision and business development.

The money from the EABC is now being used in the Arada, Lideta and Yeka districts, says Anteneh.

“The program will be continued in other districts and regional towns, such as Hawassa, Bahir Dar, Mekele and Dire Dawa,” Anteneh added.

The challenge to the plastic bottle collection, according to Nigussie Estifanos, collecton department head at Coba, is that bottles come with water, milk and even rocks in them, which exaggerates the weight of the bottles. Coba will resolve this issue through training, he said.

http://addisfortune.net/articles/30m-br-ethio-swiss-jv-set-to-pilot-plastic-flakes-for-export/

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World Bank Extends 4.1b Br Water, Sanitation Loan

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-  The loan will help Ethiopia to achieve the GTP target of 100pc access to safe water

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The Ethiopian One National WASH Program under the WASH Implementation Framework (WIF) has received a 4.1 billion Br loan from the World Bank (WB) to improve access to water, sanitation and hygiene.

The program was launched in September 2013 to modernise water and sanitation services, improve health, decrease school drop-out rate and make financing for WASH more effective, according to Abiy Girma, the One WASH Coordinator at the Ministry of Water, Irrigation and Energy (MoWIE).

The World Bank’s money will be used for the construction of water and sanitation facilities in Ethiopia, excluding Addis Abeba.

“We will construct toilets for health centres, public schools and upgrade our water supply by constructing new water wells,” said Abiy.

The WB already provided five million dollars to the project in January 2014 because of a government push; the five million dollar loan is part of the approved 4.1 billion Br effective from July 2014, according to a source who requested anonymity.

The four line ministries – Ministry of Health (MoH), Ministry of Finance & Economic Development (MoFED), Ministry of Education (MoE) and Ministry of Water, Irrigation & Energy (MoWIE) – are the core actors who signed the Memorandum of Understanding (MoU) on the integrated implementation of a water supply, sanitation and hygiene program in Ethiopia and WASH Implementation Framework in 2013.

“The policy and strategy of the project was designed in 2005 and it passed through many ups and downs because of a lack of commitment from the government’s side,” said the source.

The core policy document of the Ethiopian WASH program, the Universal Access Plan (UAP), aims to achieve 98.5pc and 100pc access to safe water and sanitation, respectively, by 2015.

To implement the project, a taskforce was organised with members from the four ministries, Civil Society Organisations and the DAG Water Technical Working Group,  chaired by Yohannes Gebremedhen, the director of the Water Supply & Sanitation Directorate at the MoWIE.

“The government has gaps in implementing this project. No meeting has been held by the steering committee since the launch of the project and planned regional offices are not yet open,” said the source.

The loan from the World Bank will be provided in four phases for four years, says Abiy.

“We are moving towards implementation after we have secured the money,” he said.

The project was designed for the coordination and implementations of the multi-donor consolidated WASH account, approval of harmonised and integrated annual WASH plans and budgets, coordination of operational WASH structures, preparing harmonised guidelines and core materials for capacity building and facilitating tools and procedures necessary for integrated planning, reporting and monitoring, said Abiy.

This national strategy was launched with the intention to harmonise, align, integrate and accelerate the WASH implementation, in order to achieve the Millennium Development Goals (MDGs) and Growth and Transformation Plan (GTP) targets.

http://addisfortune.net/articles/world-bank-extends-4-1b-br-water-sanitation-loan/

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Alecto update on Ethiopia JV

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Alecto Minerals says it has been formally notified by its joint venture partner Centamin that, following the completion of the recent exploration programme, it will continue to satisfy the initial expenditure commitment at the company’s 945 sq. km. Wayu Boda gold project in Ethiopia.

Under the agreement, Centamin is required to fund exploration costs of US$1.8m over a two year period in order to maintain an initial 51% interest in the project.

The JV agreement also extends to the company’s 1,954 sq. km. Aysid Metekel gold project which is located in the Aysid-Metekel region of north-west Ethiopia. Centamin has already indicated that it will satisfy its initial expenditure commitment for the Aysid-Metekel project of US$1.2m over two years to maintain its initial 51% interest in the Aysid-Metekel project.

Centamin has an option to fund up to a further US$5m of work at the Aysid-Metekel project and US$6m of work at the Wayu Boda project to increase its interest in each of the projects up to 70%.

Alecto chief executive Mark Jones said: “The fact that Centamin would like to continue fulfilling the initial expenditure commitment for the Wayu Boda project of US$1.8m is excellent news and, considering that the results and analysis from their recent exploration programme are yet to be received and assessed in full, we are encouraged by their decision.

“Our positive experience with Centamin, with them already having committed to the initial expenditure commitment for the Aysid-Metekel Project, endorses our company-wide joint venture strategy and provides us with exposure to exploration upside without capital expenditure, and we look forward to providing updates regarding both projects at the appropriate time for both ourselves and Centamin.”

http://www.stockmarketwire.com/article/4885484/Alecto-update-on-Ethiopia-JV.html

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Filed under: Ag Related, Economy, Infrastructure Developments, News Round-up Tagged: Addis Ababa, Agriculture, Business, Economic growth, Ethiopia, Fertilizer, Investment, Millennium Development Goals, Sub-Saharan Africa, tag1, United States, World Bank

FTF’s Jim Barnhart (above, far left) visits Ethiopia’s first fertilizer blending factory, operated by a local cooperative union.

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Million Belay (PhD) is director of Melca-Mehiber, a local NGO engaged in the conservation of biodiversity and indigenous knowledge in Ethiopia. On top of that, he is also one of well-known anti-GMO activists in Ethiopia.

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What If You Could IPO An African Country? These Are The Three To Bet On

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VENTURES AFRICA – Record number of firms in Africa are lining up for a potential initial public offering (IPO) in 2015. Baker & McKenzie, a leading law firm, said 30 firms were preparing to list this year. Last year, the 24 IPOS by African domiciled companies were a 33 percent rise in volume and, at just over $2 billion, nearly 225 percent increase in value from 2013.

In sub-Saharan Africa, South Africa, Nigeria and Kenya offer the highest projected IPO values and the best markets for accessing local and foreign investors, particularly spurred by the exit strategy and investment activity of private equity investors focused on the continent. With the boom in private equity fundraising for Africa, the outlook is very bright.

But risks remain with specific African markets disproportionately exposed to the global volatility. Some economists and investors fret that the low oil price, low gas price, and strong US dollar could burden specific African markets in the near term and possibly long term depending on how prices shift by mid-2015 and through 2016.

What if a Country went for an IPO?

All things considered, what would it be like to IPO a country in the current market? Walk with me for moment…The factors used for evaluating an IPO are very transferable to evaluating a target country for an IPO or investment:

• Why go public? (Translated: Why open the market at this moment?)
• What will the company do with the money from the IPO? (Translated: What will the country do with the new foreign direct investment (FDI)?)
• What is the competitive landscape for the company and its relative position? (Translated: How does Country A in sub-Saharan Africa match up against Country B-Z?)
• What are the growth prospects? (Translated: What is the upside growth potential of the country?)
• What is the current profitability? (Translated: Is the country actually turning foreign direct investment into greater returns (i.e., GDP per capita, income growth, etc)?
• What is management like? Does the management team have prior experience running a publicly-traded company and/or a history of success in business ventures? (Translated: Do the leaders of the country have sufficient experience and qualifications to run the country?)
• What are the past operating results? (Translated: What has been the country’s past performance?)

With all the IPO factors translated to be applied to a country, we can formulate a list of the best countries to IPO (or translated: the countries that would garner the greatest value in the public market based on a cross section of factors). This week’s article highlights the top 3 countries on that list:

Rwanda

Rwanda – often called the “Singapore of Africa” – is an investor favorite for all the reasons that would make it an ideal IPO candidate. The country still requires significant investment, particularly in infrastructure. Fully (as lot has been done to date) bridging the infrastructure gap in the county is an instance gateway to unlocking further value in the country’s manufacturing and financial sectors among others.

Rwanda is definitely the little giant in the competitive landscape…its population of more than 11 million is bigger than NYC (~8.4 million) but not by much. Yet it is booming from an economic productivity perspective, best indicated by 7-plus projected growth in 2014 and 2015. On a per capita (PPP) basis, the GDP has grown north of 165 percent in the last 20 years from $575 in 1995 to approximately $1530 in 2015. The smart investor will ask what the distribution on that investment dividend is and statistics show that a significant portion, hovering around 40 percent, still goes to the top 10 percent of the country.

But management, aka Paul Kagama and crew, are making great strides to change that number and lift more people out of poverty. Economic management may be the country’s strongest IPO characteristic. Kagame & Co. have built Rwanda’s brand as a tourism location, an emerging financial and technology hub, and an up and coming bilingual (French and English) services hub. The country is one of Africa’s most technologically advanced countries with a consistently easing environment for doing business. All these factors considered point to an amazing upside for potential investors. Leadership is dedicated to and capable of driving the country towards achieving significant growth in target sectors and has a demonstrated track record, as the numbers indicate.

The caution is to not overpay for the small giant. But this article did not promise a pricing range for the IPO.

Nigeria

Nigeria is an IPO candidate taken from a different view than Rwanda. The country requires significant amount of investment, particularly in infrastructure, similar to Rwanda.

Nigeria may have one of the highest return upsides for capital. The country, due to its size, has Facebook potential:

(1) it has a population north of 175 million,

(2) it is Africa’s biggest oil exporter and (usually forgotten) has the biggest gas reserve in Africa; and

(3) it has one of the most technologically advanced and entrepreneurial populaces in Africa. And from a financial standpoint, the naira is significantly undervalued with a low oil and gas price environment hanging above its head…in other words, any investor is buying in at a cheap foreign exchange rate with all expectations of a higher naira value in the future.

On a per capita (PPP) basis, GDP has grown north of 330 but has a long way to go on a dollar value, especially considering the wealth of resources in the country. As an oil and gas behemoth, the country has not captured the full value in the resource exploration and production value chain. Why is that? That question leads us to the underlying risks (or more so challenges) in Nigeria.

The country has strong leaders. But a consensus has yet to be found among leadership on addressing terrorism in the country, managing oil production in a low price environment, and realizing value in the gas sector. Local entrepreneurs have strived in the euphemistically described “burgeoning wild west” of Nigeria but greater internal financial structure and security from management could push this country’s stock to the front of the pack as an investment opportunity. Its financial, energy and industrial sectors combined could and should be unrivaled by the competition.

Nigeria is a major buy in any market, but especially with a low naira valuation. Expect a low valuation in the current environment with great stock appreciation over time.

Ethiopia

Ethiopia is the equivalent of an early stage IPO – probably before it could get an ideal offer price but still with an immense upside. The country requires significant investment, specifically in its numerous business sectors…although infrastructure is a big need for the country, the country’s leadership is already making great strides in investing in that space.

If Nigeria has Facebook potential, then Ethiopia has WhatsApp potential: (1) it has a population approaching a 100 million and (2) it is one of the world’s fastest growth countries but it lacks (1) the natural resources of other booming African countries (ala Nigeria) and (2) the technological infrastructure of other emerging economies (ala Rwanda). It is euphemistically the emerging app with great upside but many investors are still wondering how success (monetizing in technical terms) will look like in the long run. The country is generally unaffected by changes in oil and gas prices, except for the pseudo tax break it receives on its oil import bill in a low price environment.

Ethiopia banks its growth on a multitude of consumer-driven industries, including manufacturing, financial services and consumer products. The growth is steady but may not have the consistent opportunity to have a 15 percent boom year (i.e., oil rising above a $100 in next six months will not add 33 percent to 66 percent to the revenue line like it could in a Nigeria and Angola). Still, on a per capita (PPP) basis, the country has grown north of 125 percent in the last twenty years.

The country’s management consistently provides strong (not always favored) leadership with the economic management of the country. Criticism is expected on the iron-fist nature of the ruling party. But a lot of credit should be equally handed out for the leadership’s ability to combat terrorism, manage security, and drive growth. There is ample room for improvement with currency management, financial (including debt) management, and guiding the development of the technology and (overall telecom) sector.

All things considered, Ethiopia may not get the ‘Nigeria’ price at this stage…but you may be very surprised how close it will get. It has an upside that is immense albeit not fully spelled out.

Ghana and Angola

Ghana and Angola are tricky countries. One (Ghana) has a significant mining sector with some oil and gas potential. One (Angola) is an oil behemoth that could use growth in non-oil sectors. Both countries are gradually boosting their financial services sectors and have great upside in that sector. Yet one (Ghana) has a currency suffering in the current environment (largely due to some economic miscues) and one (Angola) could soon feel pain if the oil price does not recover. In a dream world, investors probably like to merge the two countries and IPO them together.

But, unable to M&A two countries (or just because it sounds ridiculous to discuss countries in this sense), Ghana and Angola stand as the tricky two countries tied for fourth place on this list (or the honourable mention countries as the first three countries were not ranked). Per capita and GDP growth numbers remain strong and the upside is simply massive because of a growing financial sector supplemented by a strong mining (including oil & gas) sector, major infrastructure improvements, quickly improving energy sectors, and committed leadership. Leadership, for reasons not to be overly indulged, can also be the catch-22 as the International Monetary Fund (IMF) has been critical at differing stage of both countries’ leadership from a financial and economic management perspective and an openness in the market perspective.

http://www.ventures-africa.com/2015/02/what-if-you-could-ipo-an-african-country-these-are-the-three-to-bet-on/

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Ethiopia to construct 11 new universities

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Addis Ababa February 05/2015 –

 The Ministry of Education announced plan to construct 11 new universities during the second growth and transformation plan period, which will begin in the next Ethiopian fiscal year.

Oromia, South Ethiopia and Amhara are among the regional states the universities will be built with the aim of increasing access to higher education, according to the State Minister Dr kaba Urgessa.

Up on completion, these universities will increase enrollment capacity to 600,000 in regular program alone and raise number of higher learning institutions to 42.

Design of the buildings, selecting specific areas for the construction and conducting surveys on the selected areas are being underway, Kaba said.

Construction of the universities is expected to be completed within two years and priority will be given to science fields.

Training of lecturers for these universities will be started next academic year, so as to equip them with skilled labor, he added.

Constructing and equipping these universities will be carried out in accordance with the lessons learnt from the previous practices, the Minister said.

http://www.ena.gov.et/en/index.php/social/item/359-ethiopia-to-construct-11-new-universities

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Ethiopia undertakes activities to boost ties with foreign countries

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Addis Ababa February 5, 2015 –

Prime Minister HaileMariam Desalegn said activities that help to protect the national interest and improve ties with neighboring and other countries undertaken during the past six months.

While presenting his government’s 6 months performance report to the parliament, HaileMariam said activities have been carried out to strength bilateral relation with foreign sovereigns.

He mentioned bilateral talks carried out on various levels with Djibouti, Kenyan, Sudan and Egypt governments so as to boost political and economic ties.

HaileMariam said that his government has been striving to build lasting peace in Somalia.

Ethiopia, as the chair of IGAD, is working to provide peaceful resolution for the crisis in South Sudan, he added, it has been playing its role for the successful conclusion of the peace process.

Following consecutive discussions with the Egyptian authorities and deployment of public diplomacy delegation, the bilateral relation has now shows progress, according to HaileMariam.

The Premier also expressed his hope that the relationship between the two countries will be enhanced further and the suspect on the Egyptian side regarding the Grand Dam will be resolved soon.

http://www.ena.gov.et/en/index.php/politics/item/361-ethiopia-undertakes-activities-to-boost-ties-with-foreign-countries

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“Doing Business in East Africa” held in Washington D.C.

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Addis Ababa, 5 February 2015 (WIC) –

The Ethiopian Embassy along with the Embassies of Kenya and Tanzania and in collaboration with the US Commerce Department, have organized “Doing Business in East Africa,” an after hour Networking Series.

The information exchange event was intended to give the opportunity to network with US trade officials and members of the African diplomatic community. It also envisages an opportunity to hear about the latest momentum around Africa-US trade.

Included in the program was the opportunity to hear important announcements about Trade Winds Africa, the largest ever US- government-led trade mission to Africa, it was learnt.

Ambassador Girma Birru, Special Envoy and Ambassador Extra-Ordinary and Plenipotentiary of Ethiopia to the US, made a remark on the Networking event for the “US Business Development Conference and Trade Mission to Africa in September 2015.

Ambassador Girma noted that although there are some disparities among countries, the recent economic performance of the East African region has been remarkable by international standards. The region is one of the fastest growing regions in the continent, with average GDP growth of 5% in 2013-2014, compared to the sluggish global economic performance of 2.4% during the same period and cited Ethiopia as the third growing success economy in the world.

The region has abundant agricultural and other natural resources and provides ample opportunities for U.S. businesses. With a total population of about 320 million, the region is also a big market for food and other consumer products, he underlined.

Recognizing this immense potential, and as a follow-up to the very successful U.S. – Africa Leaders Summit, convened by President Obama in August 2014, Ambassador Girma punctuated “we are very pleased that the U.S. Department of Commerce is organizing a “Business Development Conference and Trade Mission” to 8 African countries in September 2015″.

The Trade Mission will offer you a unique opportunity to explore, first-hand, the vast business and investment opportunities that exist in Africa in the various areas, the Ambassador Extra-Ordinary and Plenipotentiary, added.
In reference to the African Growth and Opportunity Act (AGOA) which he said has served as the cornerstone of U.S.-Africa commercial relations, AGOA, he underscored has contributed to economic development in the 40 countries that benefit from this program through market access, job creation, and closer commercial ties with the United States.

Increasing number of American companies is recognizing the opportunities that exist in the continent partly through this preference program. Imports of American products (such as Boeing planes by Ethiopian Airlines) have contributed to job creation in the U.S. as well, he proclaimed.

However, he exclaimed AGOA is set to expire at the end of September, 2015. With a new Congress and many issues competing for legislative attention, it appears that AGOA’s reauthorization will not be as seamless as expected, Ambassador Girma expressed his opinion.

Given the necessary lead-time that U.S. buyers need for placing orders (such as in the textile industry), African governments and the private sector are quite concerned the delay in reauthorization of AGOA could result in unnecessary disruptions in commercial transactions between the two sides, the Special Envoy added.

It is paramount, therefore, that a call for action on AGOA needs to be taken by all concerned, particularly the U.S. business community, to ensure the uninterrupted continuation of this landmark trade relation between the U.S. and Africa he emphasized.

“I would like to take this opportunity to express our continued commitment to collaborate with the U.S. Government and the private sector to make the September Trade Mission to Africa a success, thereby contributing to the strengthening of our economic ties,” the Ambassador concluded.

Earlier Antwaun Griffin, Deputy Assistant Secretary of Commerce for US Operations made a welcoming remark. Ambassador Robinson Njeru Gthae of Kenya and Ambassador Liberata Mulamula of Tanzania, to the US have also made speeches pertaining to the occasion.

Present on the event were Ambassadors, Michael Lally, Executive Deputy Assistant Secretary of Commerce for Europe, the Middle East and Africa and John Saylor, Chairman of Virginia-Washington DC, District Export Council, Ambassador Robert Perry, Vice President, Corporate Council on Africa, Jude Kearney Chair Africa Practice, Greenberg Traurig, LLP, Marta Alonso, Verification of Conformity Manager & CCCS Supervisor, BIVAC North America, Bureau Veritas and other invited guests.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17472:qdoing-business-in-east-africaq-held-in-washington-dc&catid=52:national-news&Itemid=291

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Government working to keep stability of macro-economy: Premier

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Addis Ababa February  5, 2015 –

Prime Minister HaileMariam Desalegn said his government is working to keep the macro economy stable so as to maintain the economic growth.

During the past four consecutive years, the nation has managed to grow by 10.1 percent in average.

This year, the economy is expected to grow by 11.4 percent. The industry sector is expected to contribute the lion’s share, 23.7 percent.

Agriculture and services sectors are expected to grow by 8.7 percent and 9 percent respectively.

While reporting his government’s 6 months performance to the parliament, the Premier said “We need to have a stable macro-economy in order to sustain the ongoing economic growth.”

Fiscal and monetary policy measures taken so far helped to keep the inflation in single digit, he said.

Since increasing amount and type of export items is important to improve foreign currency earnings, the government has been working to expand this sector.

Because of this, the revenue earned from export market has increased by 60.3 million USD in this half year from the previous year same time, he said.

The increase in the revenue earned from the export market will help the nation to step by step be free from foreign assistance, HaileMariam said.

Parallel with this, improving domestic saving is important to diversify financial sources, he added. Gross domestic savings has reached 22.5 percent at the end of last fiscal year.

Improving amount of tax collected from domestic sources has also being carried out to improve government’s revenue.

In this regard, 69.5 billion Birr revenue was collected from tax and non-tax items during the six months, he said. Although the performance exceeds the previous year same time, it is below the target.

HaileMariam said activities need to be done to improve and expand tax collecting system so as to increase the revenue.

http://www.ena.gov.et/en/index.php/economy/item/360-government-working-to-keep-stability-of-macro-economy-premier

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Ethiopia launches mobile money schemes to extend banking reach

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* Millions have little access to branches or services

* Schemes will allow payments via mobile phones

* Mirrors model pioneered in neighbouring Kenya

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By Edmund Blair

ADDIS ABABA, Feb 4 (Reuters) – Ethiopian banks and microfinance firms are launching mobile money services, helping reach swathes of the population that now have little access to branches or services, the mobile technology providers and banks said.

The launch of the services, which allow customers to make payments or receive money via a mobile that is linked to a bank account, mirrors technology used in other African nations that has drawn millions of people into the financial system.

Netherlands-based BelCash is offering a technology called helloCash, while MOSS ICT, mainly owned by an Ireland-based firm, is rolling out M-Birr in the nation of 96 million people.

In both cases, Ethiopian banks and institutions will offer the service to customers and hold the cash deposited, in line with government policy that bars foreign firms or banks from investing in the financial sector or the telecoms industry.

“One of the things that the government wants to do is ensure there is financial inclusion,” said MOSS ICT deputy general manager Kidist Negeye, adding M-Birr would help reach rural areas. “Another aspect is the mobilization of domestic savings. The government wants to increase the number of deposits.”

The central bank approved the roll out for M-Birr, which will be offered by five micro finance firms, in December. It already has 5,000 to 6,000 users and expects to add 13,000 in February. Kidist said the potential was “in the millions.”

BelCash’s helloCash service could have 2-3 million users this year and 10 million by 2017 or 2018, the firm’s chief executive Vince Diop said, adding that BelCash would receive a fee for each transaction made.

Two of Ethiopia’s 16 private banks, Lion International Bank and Cooperative Bank of Oromia, as well as a microfinance firm, have signed up for helloCash. Two more banks have yet to submit applications to the central bank, he said.

The pilot project was under way and commercial services should start in about two months, Diop said.

Bankers say Ethiopia has no more than 1,500 ATM cash machines, while there was just over 2,200 bank branches as of June, or one for every 40,000 people, the central bank says. Only one in 10 people have a bank account.

In addition to branches, which are expensive to set up, banks plan to authorise thousands of agents, such as shops or merchants, in line with new regulations. Such agents will be able to take deposits and hand out cash via the mobile system.

Ethiopia’s initiative mirrors the model pioneered in Kenya, where there are now 27 million users in the nation of 45 million. Safaricom, a unit of Britain’s Vodafone , was first with such a service, launched in 2007.

http://mobile.reuters.com/article/idUSL6N0VE44020150204?irpc=932

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Pittards to boost production by threefold

Pittards PLC, British company investing in Ethiopia, disclosed it intends to increase its production capacity by threefold in the coming two years.

According to Pittards Project Manufacturing General Manager, Tsedenia Mekbib, the company made investment in Ethiopia’s manufacturing sector for the first time in 2011 after it bought the government owned Ethiopian Leather Company.

In the past fiscal year Pittards earned USD 4 Million from the export of 100,000 pairs of gloves, Tsedenia explained. She furthered the company is working to boost Ethiopia’s foreign currency earnings by 60 percent.

Currently Pittards manufactures industrial and fashionable gloves, leather garments and jackets.

Its factory, upon establishment, had 80 employees. Yet this figure grew to 700 workers and it is still trying to increase the number of employees to 1500.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17440:pittards-to-boost-production-by-threefold&catid=52:national-news&Itemid=291

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BIG PICTURE – KEFI Minerals advancing rapidly to mine development in Ethiopia

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By Ian Lyall

Since taking control of the asset, KEFI’s team has presided over a 50% rise in the resource base with an increase, rather than fall in the grade

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Disease Detection Gets A Boost With Plans For A CDC In Africa

In 1946, a malaria outbreak across the Southern U.S. catalyzed the formation of what would eventually become the U.S. Centers for Disease Control and Prevention.

Then in 2002, China’s CDC began its operations just as an outbreak of Severe Acute Respiratory Syndrome, or SARS, took hold.

Now, as the worst Ebola outbreak in history winds down, African health officials announced Monday they will partner with the U.S. to establish a continentwide African CDC.

The idea for an African CDC first came to light at the 2013 African Union Special Summit on HIV and AIDS, Tuberculous and Malaria in Abuja, Nigeria. If Ebola wasn’t the specific catalyst for forming the African CDC, the epidemic definitely sped up the timeline, U.S. health officials said Monday.

The African CDC will initially set up shop in Addis Ababa, Ethiopia, which is home to the African Union. That should happen later this year.

Soon after, five regional centers will open at undetermined locations across the continent. Field epidemiologists will staff each location and “will be responsible for disease surveillance, investigations, analysis and reporting trends and anomalies,” the CDC said Monday in a statement.

In the event of a health emergency — such as Ebola — the office in Addis Ababa will act as a central command post, organizing and deploying teams of medical workers.

Some of that disease surveillance and emergency dispatching is already happening, says Dr. Thomas Kenyon, director of the U.S. CDC’s Center for Global Health. The African CDC will “take advantage of existing structures to make it additive to what’s already there,” he tells NPR.

In other words, the African CDC won’t create an epidemiological infrastructure from the ground up. It doesn’t need to. What it will do is link together agencies and laboratories in various countries that aren’t always great at talking to each other. “Countries that might be weak in one diagnostic area can benefit from a neighbor who might have a lot of capability in that area,” Kenyon says.

To help make this happen, the U.S. CDC is donating both brainpower and troops on the ground. The Atlanta-based organization says it will provide “technical expertise” and help in the African CDC’s long-term, strategic planning. It will also embed two public health leaders at the temporary headquarters in Addis Ababa and about 10 to 12 epidemiologists and support staff.

The CDC already trains hundreds of African epidemiologists each year, Kenyon says, and the establishment of an African CDC will help coordinate that force.

Of course, all of this comes at a cost. But how much funding it will take to get the African CDC off the ground isn’t something either side is touting. Those figures are still being worked out, Kenyon says. But the 54 member states of the African Union will ultimately be responsible for funding the organization.

“I think we’re all going to have to do our part,” Kenyon says, “but the leadership and real commitment will have to come from African governments themselves.”

http://www.npr.org/blogs/goatsandsoda/2015/04/14/399427210/disease-detection-gets-a-boost-with-plans-for-a-cdc-in-africa

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Empowering women major part of cooperation between Ethiopia, Canada

Addis Ababa: April 15, 2015 –

http://www.fanabc.com/english/index.php/news/item/2726-empowering-women-major-part-of-cooperation-between-ethiopia,-canada

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Ethiopia’s election crucial manifestation of democracy in the country: Dr. Hailemikael Abera

Addis Ababa, 15 April 2015 –

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18676:ethiopias-election-crucial-manifestation-of-democracy-in-the-country-dr-hailemikael-abera&catid=52:national-news&Itemid=291

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National strategy looks into monopoly of logistics operation 

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Ethiopia puts up a new national logistics strategy that will lead the sector’s development for the coming several decades.

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The strategy that is developed by Nathan Associates Inc. a US based company, with the support of United Nation Development Program (UNDP), is showing directions on how the logistics sector should be developed and expanded.

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The strategy document that was officially handed over to officials of the government by UNDP on April 9 includes a diagnostics study, a blueprint of actions, intervention and implementation plan, according to Mekonnen Abera, Director General of Ethiopian Maritimes Authority Affairs (EMAA).

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The goal of the Ethiopian National Logistics Strategy is to enhance Ethiopia’s economic growth through increasing trade, especially for value-added commodities, and through the reduction of transport costs by increasing efficiency. The strategy is structured to improve the export competitiveness of Ethiopian products and availability of imports for industry and consumers at competitive prices within reliable delivery times.

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The logistics sector, particularly the import/export stream, is said to be one of the hurdles that slows down the country’s growth. The Ethiopian government has been undertaking several restructuring measures on the sector while expanding and modernizing the infrastructures in the meantime. Despite the efforts, the sector is still in its early stages compared to international practices.

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Workneh Gebeyehu, Minister of Transport, who received the document, told Capital that the new strategy will be implemented in association with other policies and strategies. Mekonnen, on his part said that EMAA has been following up the development of the strategy.  “EMAA has setup a Logistics Transformation Office (LTO) that will be in charge of this task and the realization of the strategy’s implementation. UNDP has already committed resources for the setting up of LTO,” he said in a speech at the handover ceremony. According to the EMAA head, a major achievement in this context is made with the establishment of a high level government body, National Logistics Council (ENALCO) that is responsible to oversee the entire logistics system in the country.

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The council was formed under the direct leadership of the government. It is chaired by the Deputy Prime Minister and Transport Minister, Workneh Gebeyehu who is its Vice Chairman, and various ministers, business community and logistics service providers that assume responsibilities in the council to spearhead the logistics sector development. EMAA serves as a permanent secretary office, while LTO serves as the expertise arm of ENALCO providing professional and technical support to facilitate the accomplishment of the planned logistics transformation strategies.

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Sources told Capital that the document stated that granting of a monopoly to Ethiopian Shipping and Logistics Services Enterprise (ESLSE) for arranging ocean and inland transport of goods imported using a letter of credit, as well as for the operation of the dry ports where these goods are cleared has resulted in an inefficient system that increases the cost and reduces the availability of consumer goods.
The strategic document that Capital had access to indicated that given the capacity of the private sector to perform the same services in a competitive market, there is little justification for continuing this monopoly.

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Since the implementation of the multimodal system, the private sector has requested to be allowed to perform and be part of the logistics operations, while the scheme is fully controlled by ESLSE.
Workneh told Capital that the recommendations that were listed in the strategy document shall be implemented in harmony with the country’s policy.
He declined to give any details whether the private sector will be let to activate the multimodal scheme. “We will disclose that if we have any news about the issue,” the logistics Chief added.

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He said that the country’s logistics sector is tied in quandary but the government is working to revive it. The strategic blueprint document stated that there is a clear need to separate two unique flows of Ethiopian cargo.
There are cargos whose owners want to clear as fast as possible and owners cooperate with the system operators to minimize the likelihood of delays. There are, on the other hand, cargos owners whose seem to want to use the port facilities (and dry ports) as storages.
These long-deposited cargo generate additional burden on the temporary storage facilities, as they create additional cargo pile ups and reduce terminal capacities. Such behavior is observed in container cargos as well as break-bulk cargos.

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The earlier these cargo flows are separated, the lesser will be the impact on the cargo that is wanted quickly by its owners.  “This reduces the impact on the port, trucks assignment, highway congestion, dry ports operations and final delivery. The cargo can be temporarily stored outside the Port of Djibouti and transferred slowly, during off peak times to different storing facilities around Ethiopia. The segregation will also allow services to be tailored to fast clearance cargo, such as reliable and predictable customs clearance, expedited transfer from Djibouti to the dry ports and final delivery,” the strategy document reads.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5072:national-strategy-looks-into-monopoly-of-logistics-operation-&catid=54:news&Itemid=27

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Ethiopia to invest $240 million on road construction

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As part of its fourth road sector development plan, Ethiopia is to construct three road projects costing more than $240 million, totaling 262.6 kilometers.

The first road project to be constructed is the 83.4 kms Sodo-Tercha  asphalt concrete project in Southern Ethiopia  signed with China Railway Seventh Group Limited with a total outlay of  USD $84 million.

The project is expected to pass through mountainous range, take 42 months to finish, be 19 meters wide in rural areas and 10 meters wide in urban areas.

The second one  located in Northern Ethiopia is the Bilbela-Sekota road project signed with China first Highway Engineering Company, expected to cost USD 102 million, be 98.7 kms long and take 39 months to complete. It’s also expected to be 14 meters long in urban areas and seven meters long in rural areas.

The Third one is the 80.5 kms Dichito-Gaielfi roundabout- Beleho  in north East of Ethiopia to be implemented  by a local construction company  Defense Construction Enterprise. The project will see 63.5 kms of it built with Cement Concrete Rigid Pavement, while the rest 17 kms will be with standard asphalt basis.

It’s anticipated to take 1170 days to complete, be 10 meters wide in urban areas, 7 meters wide in rural areas, and be vital in connecting Landlocked Ethiopia with Tadjourah Port facilitating export-import trade of Ethiopia and the economy of the areas on its route.

All Three road projects expenses will be fully covered by the Ethiopian government.

http://www.newbusinessethiopia.com/index.php/component/k2/item/309-ethiopia-invest-240-million-on-road-construction/309-ethiopia-invest-240-million-on-road-construction

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British’s KEFI to produce 29 tons of gold and silver in Ethiopia 

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 April 14, 2015

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BY ANDUALEM SISAY GESSESSE

KEFI Minerals Limited of British set to start production of close to 28.8 tons of gold and silver in the coming 11 years. The company and Ethiopian Ministry of Mines signed a large scale gold and silver production agreement last night in Addis Ababa, Ethiopia. 

The company will start production in Ganji Zone, Tulu Kapi area of Oromia Region of Ethiopia, according to Harry Anagnostaras – Adams, non- executive chairman of KEFI Minerals Ethiopia Limited.

“It will take real determination and responsibility from our side and we will do it,” said Mr. Adams said after signing the agreement.

He noted that six months is needed to access the around $152 million total financing from the banks specialized in mining. “…Through Nyota Minerals and our shareholders we are more confident and raise the capital required. We reduced the amount of capital from our initial Tulu Kapi project and also reduced the number of households to be resettled from 460 to 260 households by redesigning the area,” he said.

“We have involved Ethiopian experts in designing to create new livelihood. Whatever the compensation is required we will pay,” Mr. Adams added.

From Golden Prospect to Nyota and KEFI, the Tulu Kapi gold exploration went through different companies since 2005 with a total investment of $42 million, according to Dr. Kebede Belete, KEFI Minerals Country manager for Ethiopia.

Before KEFI has taken over Tulu Kapi’s project in Ethiopia 18 months ago and has been in similar mining project in Saudi Arabia for the past seven years.

“The agreement we signed will create jobs for 700 people and generates $1.06 billion foreign currency for the country in eleven years with additional $130 million income for government. They will also train our people and we also agreed that they will protect the environment. It will be a good model for other mining companies and open doors for others,” said Tolossa Shaggi Minister of Mines of Ethiopia.

“We hope that other companies will follow KEFI’s suit and engaged in development of Ethiopia’s minerals,” he said indicating that in the coming two years his ministry expects at least a minimum of three companies engaged in gold exploration to acquire production license.

From 15-20 years we plan to continue production from 15 to 20 years,” Dr. Kebede said indicating the initial production area is 7 square kilometers.

Mr. Adams on his part noted that the overall gold reserve potential is unknown. “What we know is what is already identified … Sometimes one has to go underground to estimate the additional. Our ambition is to be an example. The minister encouraged us to do further,” Mr. Adams added.

Ethiopia has been earning up to $500 million annually from its mineral exports. Out of this, gold covers the major share. So far MIDROC Gold Company of the Saudi- Ethiopian tycoon Al-Amoudi was the only one engaged in large scale gold production in Ethiopia with 5 tons per annum. The rest around 7 to 8 tons per annum is produced by thousands of artisan (traditional) gold producers.

http://www.newbusinessethiopia.com/index.php/component/k2/item/304-british-s-kefi-to-produce-29-tons-of-gold-and-silver-in-Ethiopia

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Ethiopia keen to expand Africa-Japan industrial cooperation

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Addis Ababa, 14 April 2015 –

Ambassador Berhane Gebre-Christos, State Minister for Foreign Affairs, meeting a delegation of the Japan External Trade Organization (JETRO) headed by Hiroyuki Nemoto, Director-General for Overseas Planning Department of JETRO on Tuesday (April 14), reiterated Ethiopia’s firm commitment to build and promote cooperation between Japan and Africa in industrialization, MoFA reported.

Ambassador Berhane, underlining historic ties with Japan, emphasized it was a country Ethiopia valued highly and was ready to pursue shared benefits.

He noted that Ethiopia has made huge headway in socio-economic development coupled with encouraging FDI inflows and an improved investment landscape.

He said it was time for Japanese companies to invest in Ethiopia, and become part of the impetus for the resurgent Ethiopia, not least in area of establishing industrial zones.

Ambassador Berhane, pointing out that Ethiopia was implementing Japan’s Kaizen Management Principles in order to enhance productivity and quality, expressed his hope that the engagement of Japanese companies would encourage Ethiopia’s developmental agenda.

Director-General Hiroyuki Nemoto stressed JETRO was keen to work with the Government of Ethiopia and emphasized that JETRO’S extensive experience in attracting Japanese companies to industrial zones in countries like Bangladesh, Myanmar and India would help support  Ethiopia’s industrial development policy.

He noted that JETRO was intending to be a promoter of two-way trade between Africa and Japan and said it would support African infrastructure development, local industries and human resource development.

JETRO is a Japanese government linked organization focusing on promotion of trade and investment between Japan and the rest of the world.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18665:ethiopia-keen-to-expand-africa-japan-industrial-cooperation&catid=52:national-news&Itemid=291

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Ethiopia envisions USD 1bn revenue from textile export in GTP II

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The Ethiopian government extends attractive incentive packages to boost production of the manufacturing industry subsector in an attempt to make the nation a major exporter of textile products.

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The government’s incentive is provided for private sectors so as to attract more investment in the sector with 100 percent duty free importation of machineries and equipment.

Similarly, duty free importation of spare parts of 15 percent of capital goods for the first five years of operation, the possibility to hire expatriates free from income tax provided they stay for no more than two years, and reconciliation of VAT for materials purchased locally during the project period is possible if declared in six months time are included among the incentives provided by the government.

During the second phase of the growth and transformation plan, Textile Industry Development Institute (TIDI) said that they have targeted USD one billion in annual revenue from textile and garment export.

Silesh Lemma, Director-General of the institute, at a workshop held at Intercontinental Hotel last week organized to sensitize manufacturers over Ethiopia’s plans for the sector said that they are working to be a leading country in light manufacturing in Africa which will lay the foundation for heavy and high tech industries by 2025.

According to the director, more than 152 new investments are expected during GTP II while at least USD one billion is anticipated from the sector’s export coupled with more than 170,000 job opportunities.

The Director-General also indicated that the Development Bank of Ethiopia (DBE) extends a 70 percent loan against 30 percent equity contribution in-cash by the investor (in-kind contribution policy revision is underway) for green field investment. In addition, DBE further extends a 60 percent loan against 40 percent equity contribution in cash or in kind.

In order to realize the ambitious plan, the country is building over ten industrial zones all of them are state developed.

Textile Industry is considered as a number one priority by the Government’s Industrial Development Strategy even during the current GTP which ends in June 2015.

However, the sector’s performance has not been to the satisfaction of the government during the GTP period with annual earnings from export not exceeding USD 100 million with shortage of raw materials, inefficiency, and lack of technological applications, among others affecting the sector. But the government insists that the future for the sector is bright.

http://www.yarnsandfibers.com/news/textile-news/ethiopia-envisions-usd-1bn-revenue-textile-export-gtp-ii#.VS1Sb_nF-So

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US Extends Ethiopia’s Agoa Market Access for 10 Years

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The Ethiopian Investment Commission Director General Fitsum Arega recently told The Ethiopian Herald that Ethiopia has been given another 10 years extension opportunity for accessing US market duty and quota free.

He also said that African Growth and Opportunity Act (AGOA) has been extended which is big news for the country. I congratulate those companies which are manufacturing in Ethiopia and supplying to the American market. And we are grateful to the US government for allowing the extension, he added.

In the past we haven’t utilized the opportunity to the maximum extent. But we believe in the years to come the Commission will work with other ministries on the construction of industrial parks to attract and allow more manufacturers to settle and manufacture in Ethiopia and access American market through the AGOA opportunity, Fitsum added.

He said that Ethiopia is also accessing European market tax free and without quota limitation as well.

It was learnt that AGOA was going to phase out in December 2015 but the US government allowed its extension for Ethiopian manufacturers to export tax and quota free.

http://allafrica.com/stories/201505211352.html

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Ethiopia plans four new wind farm projects

Addis Ababa: May 21, 2015  –

http://www.fanabc.com/english/index.php/news/item/2997-ethiopia-plans-four-new-wind-farm-projects

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Ethiopia signs deal with Khartoum to import oil via Port Sudan

Juba – 21 May 2015

Ethiopia has signed a deal with Sudan to import oil products through the country’s Red Sea outlet of Port Sudan.

The executive director of the Ethiopian Petroleum Supplier Enterprise Haile Mariam signed the agreement with Sudan’s investment minister Mustafa Osman Ismail in the Sudanese capital Khartoum late Wednesday.

“Sudan is keen to build smart partnership with Ethiopia to improve economic activities between the two neighbors,” Ismail was quoted by the state-run Sudan News Agency as saying Wednesday.

Mariam said an Ethiopian bank would be established in Sudan to address the problems of remittances, investment and commercial exchanges between the two countries.

Ethiopia, facing growing energy demands, lost its port of Massawa following the secession of Eritrea in 1991.

Depending on the port of Djibouti, land-locked Ethiopia wants to diversify its sea routes.

Ethiopia imported a total of 42,502 b/d of oil in 2010, according to figures provided by the Abidjan-based African Development Bank in 2014.

It also imported up to 85% of its oil supply from the Sudan in 2012, before canceling its contract, according to media sources in Ethiopia.

Mariam did not say where the oil would come from. Ethiopia has been linked with the Kuwait Petroleum Corporation and other Middle Eastern oil firms.

Ethiopia has been improving its road network that links it with eastern Sudan where Port Sudan is based.

http://www.platts.com/latest-news/shipping/juba/ethiopia-signs-deal-with-khartoum-to-import-oil-26098407

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Cornerstone lay for railway in Jima

Addis Ababa: May 21, 2015  – 

http://www.fanabc.com/english/index.php/component/k2/item/2982?Itemid=674

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Ethiopia: World Bank Supports the Expansion of Efficient and Safe Transportation Systems

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WASHINGTON, May  19, 2015 –

The World Bank Group’s Board of Executive Directors today approved a US$370 million credit, to help the government  of Ethiopia further expand its transportation system and provide safe and efficient roads to its citizens.

The limited size and poor quality of roads has been a major constraint to economic growth and poverty reduction in Ethiopia. To address this challenge, the Government of Ethiopia, (GoE) with support from several development partners including the World Bank launched the Road Sector Development Program (RSDP) in 1997. Under RSDP, Ethiopia’s road network has more than tripled from 26,550 km to 99,522 km today, and 70 percent is now in good or fair condition compared with 22 percent at the start of the program. Despite these achievements, the road network has not kept up with the needs of Ethiopia’s fast growth and economic transformation. The sector also still faces several constraints including high traffic congestion and high accident rates.

The new Expressway Development Support Project, is designed to help Ethiopia overcome some of these challenges. Specifically, the project will support the construction of the 57 km Batu/Zeway- Arsi Negele portion of the Modjo- Hawassa new high capacity highway, connecting the southern region to central, northern Ethiopia and the Djibouti port, the country’s main trade route, while the corridor forms essential part of the Trans East African Highway that connects Ethiopia to Kenya and southern Africa.

The development of the 203 km Modjo-Hawassa expressway is a collaborative effort among the GoE and several development partners, and sets a positive example of harmonization and cooperation among traditional and non-traditional development partners. The African Development Bank (AfDB) is financing the construction of 57km, the Korea EXIM Bank 37 km, and the remaining 52km will be financed by the China EXIM Bank.

The project will also set the framework for expressway development through the preparation of a strategic master plan and the provision of institutional capacity building. In addition, it will provide road safety and institutional development support to the Ministry of Transport.

“The project will help to modernize the roads network and promote cost sharing and recovery of operational, maintenance and part of investment costs. It will also play an important role in supporting economic growth, while providing a high quality road for users and reducing road accidents.” said Guang Zhe Chen, World Bank Country Director for Ethiopia.

The project is consistent with the Bank Group’s Country Partnership Strategy (CPS) for                FY 2013-16, which aims to foster competitiveness and employment by supporting a stable macroeconomic environment, increasing productivity, increasing and improving delivery of infrastructure, and enhancing regional integration. The project will also help in facilitating domestic trade.

“The project contributes to the overarching goal of transforming Ethiopia’s economy by improving the quality of roads serving areas with high potential for tourism, light manufacturing, agro-processing and producing key export oriented agricultural products.” said Tesfamichael Nahusenay, World Bank Senior Transport Engineer.

The Ethiopian Roads Authority will be responsible for the implementation of the expressway construction, the framework for expressway development and institutional strengthening components. It will also implement activities on behalf of the Ethiopian Toll Roads Enterprise. The Ministry of Transport will implement the Road Safety and the institutional development support to the transport sector.

http://www.worldbank.org/en/news/press-release/2015/05/19/ethiopia-world-bank-supports-the-expansion-of-efficient-and-safe-transportation-systems

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Africa Focus China’s CREC to complete section of Ethiopia’s key railway project

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ADDIS ABABA, May 19 (Xinhua) —

The Sebeta/Addis Ababa-Adama- Mieso railway, which is a section of Ethiopia’s key railway project of the Addis Ababa-Djibouti railway being built by the China Railway Group (CREC) is nearing completion.

As the track-laying activity is approaching to completion, a grand ceremony was held on Monday in Adama town about 99 km south of Ethiopia’s capital Addis Ababa, where senior government officials, diplomats, Chinese and local staff of CREC as well as residents of Adama town celebrated the landmark chapter of the project.

The Sebeta/Addis Ababa-Mieso railway project covers a total length of 329.145 km. The Ababa-Adama section is a double track with 115 km length while the Adama-Mieso is a single track covering 214.145 km.

The standard-gauge railway, which is one section of the first Ethiopia’s national railway network, has been contracted by CREC with a total cost of nearly two billion U.S. dollars.

With the designed speed of 120km/h, the electrified-railway connects Addis Ababa with important cities of Adama, Dire Dawa, and Djibouti Port, and is the main transporting corridor for imports and exports of Ethiopia and the inland of East Africa.

Stating that the project is the first modern railway in Ethiopia, Prime Minister Hailemariam Desalegn said the project is a blood-line of the country’s economy.

“In addition to its contribution to facilitation of transportation in the country, the project plays significant role in sharing experience and transfer of technology and skills from the Chinese to Ethiopians, which in the future will enable Ethiopian professionals carry out such infrastructure projects in the country on their own,” he said.

Stating that more than 80 percent of the project has been completed so far, Getachew Betru, CEO of the Ethiopian Railway Corporation (ERC), noted that the speed and works on the construction of the project show that it would be fully completed as per the contract schedule and standard.

Getachew called on all concerned parties and the local community to continue to display the usual collaboration and provide support to the undertaking of the project towards its successful completion, and then test-ride and handover ceremony.

Reiterating that the railway facilitates Ethiopia’s imports and exports via the Addis Ababa-Djibouti corridor, Arkebe Equbay, Minister Advisor to the Prime Minister and also Board Chairman of ERC, highlighted on the role the project plays in the country’s economic performance.

He noted that the project also contributes to economic integration in the sub-region, and is a model one from which good experience has been gained for future railway projects to be carried out in the country.

Appreciating the commitment and collaboration of Ethiopians and the Chinese towards the success of the project, La Yifan, Chinese Ambassador to Ethiopia, hailed the project’s role in strengthening friendship and also taking the relations between Ethiopia and China to a new height.

He reiterated that the project helps technology and skill transfer between the Chinese experts and Ethiopian counterparts.

Commenced in February 2012, the Sebeta/Addis Ababa-Mieso Railway Project is expected to be fully completed in few months.

CREC is also carrying out the 475-million-U.S. dollar Addis Ababa electrified railway project, which started test-ride early February this year in the capital of the East African nation.

CREC, which is one of the world’s top 500 enterprises with 300, 000 permanent staff, has overseas projects in 68 countries and regions.

While working on different projects in Ethiopia, CREC has been supporting the local people, especially those who are by the projects sites, where the Chinese company has undertaken development programs in water supply and road development.

http://www.focac.org/eng/zxxx/t1265289.htm

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Nation’s registered growth – reflection of public’s transformed mindset

Addis Ababa: May 20, 2015  –

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China hands over two standard schools to Ethiopia’s capital

Addis Ababa: May 21, 2015 –

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Ethiopian Minister of Education, Shiferaw Shigute, has hailed China’s support to Ethiopia’s education sector and to the endeavor to ensure education access to all school-age children in the East African nation.