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Israel investment conference to showcase Ethiopia

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A high profile Ethio-Israeli investment conference is scheduled to take place next Monday in Tel Aviv. The conference, which will be held at the Dan Panorama Hotel, will be organized by the Ethiopian Embassy in Israel and headed by Ambassador Helawi Yoseph.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2089-israel-investment-conference-to-showcase-ethiopia

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Southwest Technologies, partners to launch data center in Ethiopia

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Southwest Technologies and its partners announced they are set to launch a data center in Ethiopia to make Ethiopia a hub for IT in Central Africa on Tuesday at the Sheraton Addis.

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Infrastructure coordination office to be established

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A new draft bill proposing the establishment of a federal coordinating agency for integrated infrastructure with a mandate of execution of infrastructure development works in accordance with road masterplans and the development of a formula for the assessment of compensation for properties has been presented to the House of People’s Representatives (HPR).

http://www.thereporterethiopia.com/index.php/news-headlines/item/2088-infrastructure-coordination-office-to-be-established

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Giant car dealers unite to voice common industry issues

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Some of the renowned car and machineries importers have sustained in the industry over half a century in Ethiopia.

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Power Africa goes off-grid in Addis Ababa

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Solar panels are installed in Rema, a village 150 miles northwest of Addis Ababa, Ethiopia, where many rural households still do not have access to electricity. U.S. President Barack Obama’s Power Africa initiative will invest in off-grid and small-scale energy projects to bring electricity to rural areas. Photo by: Stiftung Solarengie / Bread for the World / CC BY-NC

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The U.S. Department of Energy Tuesday announced a new framework for investment — “Beyond the Grid” — a partnership with 27 “investors and practitioners” who commit to direct $1 billion towards off-grid and small scale energy projects in sub-Saharan Africa, in support of President Barack Obama’s Power Africa initiative.

The announcement could help assuage some environmentalists’ and pro-poor advocates’ fears that Power Africa investments lean too heavily on conventional and grid-connected energy projects and threaten to increase carbon emissions while neglecting rural communities that are often the most impoverished and underserved.

U.S. Energy Secretary Ernest Moniz announced the new framework Tuesday at the U.S.-Africa Energy Ministerial co-hosted by the governments of Ethiopia and the United States in Addis Ababa. U.S. Agency for International Development Administrator Rajiv Shah, African Development Bank Director Alex Rugamba, U.S. National Security Council Senior Director Gayle Smith and other notable public figures are participating in sessions that span topics related to access to energy for women, governance and natural gas utilization, among others.

“With close to 600 million people without access to modern-day electricity, it is clear that centralized grid access is not a comprehensive solution for these countries in one of the world’s least urban continents. But through solutions including off-grid and small scale energy projects, we can bring electricity to these rural areas,” Secretary Moniz said in a statement.

Overseas Private Investment Corp. President and CEO Elizabeth Littlefield presented Wednesday a set of guidelines for power purchase agreements, intended to make them more “bankable” in the eyes of potential investors. A multi-agency effort to produce those guidelines — which Devex detailed in March — arrived at a set of “key elements for attracting financing to energy projects,” according to a statement from OPIC.

“Bankable power purchase agreements are key to unlocking private and public sector capital needed to build generation capacity across the continent — which is the goal of Power Africa,” said Littlefield in a statement released ahead of her address at the ministerial.

Read more on U.S. aid reform online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

About the author

Michael Igoe

Michael Igoe is a Global Development Reporter for Devex. Based in Washington, he covers US foreign aid and emerging trends in international development and humanitarian policy. Michael draws on his experience as both a journalist and international development practitioner in Central Asia to develop stories from an insider’s perspective.

https://www.devex.com/news/power-africa-goes-off-grid-in-addis-ababa-83621

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Where to Invest Around the World, 2014 Edition

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Do you work at a company that does business overseas? Or maybe you’re an investor hoping to buy a chunk of the growth in emerging markets? Either way, you’re probably wondering where the right places are to invest for the next five years. It’s an especially tough question today, given the geopolitical and financial risks plaguing the global economy. But a detailed consideration of all the things that can happen between earning a return abroad and bringing it home can offer a useful place to start.

Last May, I presented the first edition of the Baseline Profitability Index (BPI), which brought together eight factors to predict the total pretax return investors might expect in countries around the world: economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates. (In the original article linked above, I list my data sources.) In each case, I estimated how likely a given factor was to affect an investment, and then how costly the effect might be.

The idea of the BPI is to see how all of these factors might affect a foreign direct investment — the kind a private equity firm might make — over five years.

To my knowledge, it’s the first publicly available tool that explicitly takes a holistic approach to forecasting investment returns. It’s not perfect, because it doesn’t account for the interactions between all of these factors; just looking at them individually already involves many layers of complexity. But it’s a start.

In just the past 12 months, quite a lot has changed in the global investing environment. Some struggling economies have found their feet, notably in Europe, while others around the world have fallen victim to conflict. A few have improved their economic institutions, too; neighbors Greece, Macedonia, and Turkey all bolstered legal protections for investors, and nearby Azerbaijan strengthened its property rights.

Thanks to the availability of new data, four countries joined the BPI this year: Cyprus, Ethiopia, the Democratic Republic of Congo, and the Republic of Congo. It also lost a few: Benin and Tunisia (whose sovereign debts are no longer rated by Standard and Poor’s); and Ukraine (whose economic forecast from the International Monetary Fund is currently in flux).

Before I get to the results, I have three notes: In the 2013 edition, I used the International Property Rights Index as a gauge of the likelihood of government expropriation. The index is valuable, but covers fewer countries and does so more idiosyncratically than other sources. This year, I decided to use the property rights component of the Heritage Foundation’s Index of Economic Freedom. In the rankings below, I have recalculated the 2013 numbers using last year’s edition of the Heritage index. Also, the World Bank changed its methodology slightly for measuring protection of investors and then revised all previous years of data; these changes are reflected in the 2013 rankings as well.

Finally, the Chinn-Ito index I used to evaluate capital controls has not been updated, so I’m using the same values as last year. Some countries did indeed change the ease with which money could be moved across their borders; Cyprus, Ghana, and notably Ukraine made it more difficult, while Argentina and Venezuela made it easier. Hopefully a future update will include the effects of these new policies.

Comparisons across the first two years of the BPI tell plenty of interesting stories. Botswana originally ranked second last year, but using the Index of Economic Freedom puts it in first place for two years in a row. Four other countries in sub-Saharan Africa join it in the top 20, with strong prospects for growth and, in Ghana and Rwanda at least, friendly business climates. East Asia performs even better, locking down seven of the top 20 places. India maintains its sixth position in large part because of the potential for real appreciation in the rupee; this may now be more likely than ever, thanks to Narendra Modi’s supposedly reform-minded government and the strong hand of Raghuram Rajan at the central bank.

China’s case is one where the switch to the Index of Economic Freedom is noticeable. It ranked 21 in the original 2013 BPI and slipped to 43 after the change. The index takes a dim view of Chinese property rights, perhaps because of the country’s nominally communist system. China’s expectations for growth dimmed significantly as well, pushing it still further down the rankings to 60th place in 2014.

Several countries made even wider jumps between the two years of uniform data. The biggest movers in the right direction were Jamaica, Japan, and the Philippines. Forecasts for faster growth, a better credit rating, and an increase in political stability helped the Philippines. In Japan, the 2013 BPI foresaw a real depreciation in the exchange rate, which indeed came to pass thanks to the huge expansion of the money supply encouraged by Shinzo Abe’s government; with this risk somewhat lessened going forward, Japan became more attractive for investment. Jamaica had a bit of both: a slight increase in its growth forecast and a suggestion that its currency was ripe for appreciation.

The deepest drops in the BPI were by Cape Verde, Egypt, Turkey, and Uruguay. Cape Verde suffered downgrades in both its economic forecast and its credit rating; Standard and Poor’s cited the country’s rising budget deficit — in part a consequence of lower growth and tax revenues — in cutting the rating. In Egypt, expectations for the economy worsened markedly as the army’s coup heightened the general level of uncertainty, while the likelihood of being shortchanged by a local partner rose. Turkey actually improved some protections for investors, but its security situation and its growth forecast both became gloomier. The political tribulations these economies have suffered in the past year did them no favors in terms of attracting investment. Meanwhile, peaceful, pot-smoking Uruguay also saw some erosion in the rule of law and a decrease in expected growth. I’ll let you draw your own conclusions.

Once again, the BPI suggests that not every fast-growing country is a perfect target for foreign investment. Many other factors determine just how much of that growth will be transformed into a cash return back home. Plenty of them are not included in the BPI, but it still contains much more information than a simple economic growth forecast.

We won’t know how predictive the BPI has been of investment returns until a few more years have passed. Even then, it might be tough to compare its forecasts to the profits earned by multinational corporations and private equity funds. But at the very least, the BPI synthesizes the many factors that can affect an investment; as a first approximation, it should at least help investors to ask the right questions.

http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=5089:where-to-invest-around-the-world-2014-edition&catid=99:special-report-2

Full content original article (registration required) here:  http://www.foreignpolicy.com/articles/2014/05/29/where_to_invest_around_the_world_2014_edition_bpi

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Filed under: Ag Related, Economy, Infrastructure Developments, News Round-up Tagged: Addis Ababa, Africa, African Development Bank, Agriculture, Business, East Africa, Economic growth, EEPCO F.C., Ethiopia, Investment, Sub-Saharan Africa, tag1

Najib Balala, Kenya’s Mining secretary and Seamic’s chairman (right) and the African Union Commission (AUC) senior industry adviser Frank Mugyenyi address the press during the Governing Council meeting of Southern and Eastern Africa Mineral Centre (Seamic) at the Intercontinental Hotel in Nairobi on June 4, 2014. 

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By NEVILLE OTUKI
Posted  Saturday, June 7   2014

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By Hailu Dagne
Tigrai Onlne – June 05, 2014

Last week at the concluding ceremony of the celebration of the 23^rd anniversary of the Victory of May 28 at the Addis Ababa Stadium, His Excellency Prime Minister Hailemariam Desalgne delivered the big news that Ethiopians and friends of Ethiopia have been expecting for long.

The Prime Minister disclosed that Ethiopia reached food self-sufficiency at national level, after two decades of work to augment production and productivity. Ethiopia’s annual crop production has reached over 25 million Metric tons (250 million quintals). Therefore, Ethiopian didn’t face much difficulty when a major drought struck the Horn of Africa three ago.

The Prime Minister pointed out that the success was made possible as the programs designed to ensure food security at household level have been realized during the last two decades, as farmers have shifted towards producing high income generating products and effort would next be exerted to boost the manufacturing and industry sector by creating strong local investors.

The stereotypical description of the country as destitute and an example of famine in publications such as the Oxford English Dictionary is now erased through the unstinting efforts over the last two decades, the Prime Minister noted.

Indeed, Ethiopia have come a long way in the past 23 years by bringing major changes in the agricultural sector that has been on decline for decades.

It is well known that, in order to engage in any kind of economic activity, one brings together the four factors of production, namely capital, labor, land and entrepreneurship or management. In Ethiopia, we observe that there is an acute shortage of capital. This is expected to remain a constraining factor over the short and medium term. By contrast, labor is abundant as Ethiopia has a large working population. Also, there is an adequate supply of land.

Rapid economic growth can be realized only if we can adopt a strategy that promotes the economic uses of our limited capital resources and more extensive application of our labor and land resources particularly the former. If we pursue a development strategy that does not make much use of labor and land resources in economic activity, the contribution of such factors of production to Ethiopia’s development will be forestalled, thereby causing a pace of development that is well below potential. If, on the other hand, we rely too heavily on capital as a basis of our development effort, then our efforts will be curtailed by the limited availability of this resource. Our development strategy that is centered on agriculture and rural development promotes a judicious use of factors of production.

Some eighty-five percent of Ethiopia’s population lives in rural areas and is engaged in agricultural production. Although capital is especially scarce in rural Ethiopia, the bulk of the land is in the hands of the rural population. Thus, strategies that promote the use of the country’s labor and land resources while relying less on capital should embrace rural development and agricultural production that provides the basic livelihood of most of Ethiopia’s rural population. Such a focus will allow the extensive and/or intensive use of both labor and land without the need for much capital. Agriculture is a sector in which our resource potential can be used to a high degree for rapid and sustained economic growth.

As various researches and reports of scholars and international institutions show, a large part of the economy is characterized by semi-subsistence agriculture with exceedingly low incomes and hand-to-mouth livelihoods. Agriculture, although the dominant sector of the economy, is constrained by age-old production practices and structural problems. It has failed to provide moderate and sustained incomes for many who are engaged in the sector. Nor, has it provided a basis for the accelerated development of other sectors. Indeed, it has even failed to satisfy national food requirements.

Decades of neglect and absence of appropriate development policies and strategies was one of the main reasons for the situation. Previous policies did not address the major structural constraints of the economy and in fact there even were all too many cases where policies were detrimental to economic development introducing imbalances that tended to impede rather than promote economic well being. The agricultural sector fared particularly badly and policies tended to exhibit a bias against this important sector of the Ethiopian economy. Clearly, in the absence of proactive and well thought out policies, it is not possible to attain accelerated development or to improve the condition of the Ethiopian people almost half of which subsist in absolute poverty. Due to the tragedy resulting from decades of inappropriate economic policy, although an agrarian economy, Ethiopia has failed to attain food self-sufficiency; forcing millions to seek food assistance.

One of the major indications of the downward path of the agricultural sector before 1991 is the performance in cereal production.

Cereal production per person has dropped by an average of 4 kilograms per year since the 1960s. Despite the existence pockets areas with above average production, the overall trend of cereal production has been down across the country. Since food availability in Ethiopia is strongly determined by the country’s own production of cereals (having little capacity to purchase food on international markets), cereal availability has been declining at an average of 3.3 kilograms per person per year.

In the late 1980s, the country was producing less than 150 kilograms of cereal per person. The level required for a minimum subsistence diet is approximately 240 kilograms per person per year (FAO 1990). For the sake of comparison, let’s take Niger: Only 20 percent of Niger’s land area receives enough rain for un-irrigated farming to take place, yet it produced an average of 330 kilograms per person per year between 1960 and 1990-at least double Ethiopia’s output in the early 1990s.

Of course, cereals are not all that matters. The cultivation of other kinds of food, such as pulses (varieties of beans) and root crops (such as cassava), serves to supplement cereal production. Unfortunately, these crops have fared little better than their cereal counterparts. Although few data exist on root crop production, pulse and oilseed production in 1989 stood at less than 75 percent of its 1979 level. As a result, the availability of cereals plus pulses and oilseeds still declined by an average of 2.7 kilogrammes per person per year up to the early 1990s.

Indeed, since 1977 there has generally been more cereals available than were domestically produced. But that was because of imports, both commercial and food aid. However, even that option was difficult, given chronic foreign exchange constraints, commercial imports only reached 215,000 tons during 1985. Food aid, on the other hand, increased significantly after 1984 and made an important contribution to food availability in the critical years of 1985,1988, and 1991. In each of those years aid deliveries reached roughly 1 million tons of cereal, representing more than 20 percent of national production.

However, it should be remembered that with a total population of over 45 million people, food aid contributed during crisis years cannot meet all need. Assuming that all of the 1.2 million tons delivered in 1985 reached the mouths of the 6.9 million most vulnerable people, then aid represented 175 kilograms of cereal per starving person. This would have been sufficient to keep each vulnerable person alive (albeit at a suboptimal level of food consumption) for almost 1 year.

That downward spiral started to change after May 28, 1991. The EPRDF-led Transitional government observed the level of foreign aid dependency and the root factors for the low level of growth in the agriculture sector.

In order to change this grim picture, the Transitional Government of Ethiopia (TGE) embarked upon the Economic Reform Program at the beginning of the transition period, recognizing the heavy dependence of the economy on agricultural production which has resulted in erratic GDP growth rates.

The Agricultural Development-Led-Industrialization (ADLI) strategy was a strategy based on broadening the agricultural production base through improved productivity and increased land utilization over the medium and long-term periods particularly in the lowlands.

Accordingly, several policies of adjustment were implemented based on the new policy framework. One of the major ones was Agricultural Reform.

The Government gave the highest priority to agricultural development. Measures were taken to improve ways of providing agricultural services, notably through extension and provision of modern inputs to the farmers. In the past, farmers were discouraged from increasing their output due to policies of forcible extraction of marketable surplus at fixed producer prices. That policy has been removed and a decentralized grain marketing system, has been introduced, where by farmers can sell their products in a competitive market.

The Transitional government economic direction have been successfully completed, signifying that the policy measures taken were suitable. According to the Ministry of Economic Development and Cooperation, Gross Domestic Product (GDP) growth, which in the year 1990/91 and 1991/92 fell to an even low level of -5.5 and -3.2 percents respectively, rose in 1992/93 to 12.3 percent and grew by 1.3 percent in 1993/94 in real terms in relation to the previous year.

The growth trajectory continued for most of the next decade. However, it didn’t bring about the needed level of change due to several factors. One of the major reasons was that the growth rate fluctuated highly. Moreover, the growth strategies and interventions were not sufficiently articulated, therefore there effectiveness was undermined. Therefore, after the renewal movement of the EPRDF in 2001, an elaborate scientific policy framework of Rural and Agricultural development was designed.

The policy laid down the fundamentals of the direction in a very clear manner. It has underlined that:

The world today is one where nations are economically interconnected. Whether it be through international trade, foreign aid or other resource flows, there is no country that is not economically linked with the world at large. Foreign aid, is the most dependent form of this global connection. Such nations as rely on foreign aid, can reduce this dependence. But the economic independence that this implies will remain within the context of global interconnectedness, not outside of it.

Different countries play varying roles in this integrated global economy. Some forge their economic relations with other countries on the basis of well-developed and self-reinforcing domestic markets, progressively improving technology and growing capital. Such countries tend to enjoy a prominent position and reap maximum benefits from being part of the global economy. Others, lacking large and self-reinforcing domestic markets, are vulnerable to external shocks. Still others lag behind their global partners, with neither a developed human and financial capital base nor a diversified economy, and limited if any technological developments. The result is that they are in a dependent position within the global economy relying on foreign aid for their very survival.

Therefore, it was pint out that in the current global environment; our country is one that depends on foreign aid. In order to improve our position within the global economy, eliminate dependency and more readily partake of the gains from global economic growth, we must ensure rapid and sustainable national growth; constantly improving the level of technology and capital formation within the country. Furthermore, in the process of national economic growth, the domestic economy should be consolidated and a large domestic market created. This would allow us to withstand external shocks that occur due to variable conditions in the international economy that are outside of our control. The rural and agriculture-centered development strategy will help us attain this.

The policy also explained that:

The rural and agriculture-centered development strategy is our best option for ensuring rapid and sustainable economic growth. It is a strategy that will continuously promote technological development and application as well as greater capital accumulation. Thus it will directly improve our position in the global economy and increase the gains we derive from the integrated world economy. It is a unique strategy that will extricate the country from reliance on external assistance for the most basic commodity; i.e., food, transforming our role from recipients of aid to participants in global economic development. As such it will strengthen our economic independence.

Our aim, through the rural and agriculture-centered development strategy, is to increase agricultural production rapidly and on a sustainable basis. Since some 85 percent of the population are engaged in agricultural production, the income of (output from) the vast majority of the population will increase.

The policy was immediately accompanied by detailed manuals and implementing agencies. To implement the Rural and Agricultural Development policy, 25 agricultural vocational training colleges (ATVT’s) have already been established all over the country and gradated more than 71,000 agricultural development agents are graduated in animal science, plant science and natural resource. Moreover, 8,780 farmers training centers (FTCs) have been built and many farmers are getting trained in various agricultural practices, extension services and on how to adapt new agricultural technologies that enhances agricultural productivity.

As a result, for the first time in centuries, the agricultural sector embarked on a virtuous circle of growth bringing dramatic changes in the lives of Ethiopian farmers.

The next seven years saw, the agriculture sector registered an 8 per cent average growth consecutively and the number of farmers who used agricultural extension packages reached more than 8 million. That was a direct result of the government’s strong commitment to agriculture and rural development as demonstrating by allocating more than 10 per cent of the county’s total budget.

Therefore, in 2009/2010, the total land covered by the main crops rose several folds to 11.25 million hectare, while agricultural productivity reached to 200 million Quintals.

The average productivity of the main crops has increased from 12.1 to 17 Quintals per hectare. The foreign currency required from both agricultural and industrial products reached $1.45 billon US dollar.

In 2011, the first year of the GTP, the overall growth rate of agricultural value added was 9 %. The total volume of production of major food crops (cereals, pulses and oilseeds) registered in 2010/11 was 221.8 million quintals. This exceeded the production level of the previous year by 19.36 million quintals. The average productivity of major food crops during the same period was 16.5 quintal per hectare, which is 1.12 quintal/ha higher than the productivity in 2009/10 and 1.0 quintal/ha less than the target for the same year. The land covered by these major food crops was 13.45 mln ha.

A total of 818,050 tons of chemical fertilizer and 1028.4 thousands improved seed have been distributed in 2010/11. In addition, 3034 thousands of hectares of land were covered with organic manure in the same period. Efforts were also made to improve the genetic potential of livestock through crossbreeding.

The recent report of the GTP confirmed that the progress is on track. In the last fiscal year, Ethiopia registered a 10 percent increase in crop. The Central Statistical Agency (CSA) report also stated that 254 million quintal yield is expected this fiscal year from 12 million hectares of land. That is another 23 million quintal increase from previous year’s produce on almost the same amount of land.

However, as the Africa Economic Outlook pointed out last year:

Despite all the progress in the past decade, the sector’s potential remains enormous. While the Agriculture sector’s share of the GDP is about 44%, accounts for about 80% of employment and 70% of export earnings; Ethiopia has only cultivated 15% of its arable land potential so far. And, the increased productivity in the past decade has not still reached the top in sub-Saharan Africa.

This indicates that there are still enormous untapped opportunities to increase both production and productivity of farmers by promoting labor-intensive modern farming practices. It also indicates the potential to put more land under cultivation both through re-settlement programs and large private commercial farms.

The report underlined that: Ethiopia’s double digit economic growth over the past eight years has defied standard thinking that it should significantly reduce reliance on agriculture.

Indeed, researches indicate that, with this trajectory of growth, the Agricultural crop production is projected to more than 71 million tons in 2030.

At that time, Ethiopia will truly be the bread basket of Africa!

Sourced here:  http://www.tigraionline.com/articles/ethiopia-food-sufficiency.html

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Latest Budget Besieged by Threats of Deficit, Inflation

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The questioning of the Finance Minister could run on for several days after the budget is presented to Parliament

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Sufian Ahmed, minister of Finance & Economic Development

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The Council of Ministers has approved a budget bill for the coming Ethiopian fiscal year, comprising of close to 179 billion Br. The Council has passed the bill for Parliament to ratify. Sufian Ahmed, minister of Finance & Economic Development (MoFED), is expected to defend his government’s policy of an ever increasing fiscal expansion.

The bill is due to arrive in Parliament in a week or two, according to people familiar with the legislative process. Delegated by the Prime Minister, the Finance Minister will give a budget speech. This will then be followed by a question time, which may extend to three days, according to an MP who has served in the Finance & Administrative Committee.

Sufian will have to explain to MPs about the macroeconomic context in which the latest federal budget, representing a 15pc increase from the current fiscal year, is designed, according to experts. It is a budget tabled from an administration wary of the inflationary trend, thus prides its accomplishments in the current fiscal year, taming it to single digits.

“It is amazing to see a government approving a new budget without us fully using the one that has already been approved,” said a businessman in the manufacturing sector.

His is a sign of frustration at the methods the administration of Prime Minister Hailemariam Desalegn used to contain inflation, whose unintended consequences were a slowdown in the economy and a cash strapped private sector. Critics point to a deliberate policy of tightening disbursement of approved budget where inflation has been arrested, but at the expense of growth in gross domestic product (GDP).

Both the International Monetary Fund (IMF) and the African Development Bank (AfDB) have projected expansion in GDP by 7.5pc in 2014/15 – much lower than the 11.2pc average growth targeted in the five-year Growth and Transformation Plan (GTP). Contrary to the views that an “economy shrinks when government grows too large,” the administration appears to be taking the policy of stimulating growth by increasing public expenditure, of which 70 billion Br is allotted to capital expenditure.

The federal government has several mega projects, such as roads, railways and electric power generation and transmissions, which take up much of its annual budget. However, subsidies to regional states claims 51 billion Br and financing to achieve the millennium development goals get 15 billion Br – an amount that has not changed much from last year.

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The amount of budget that the Council of Ministers has approved for coming Ethiopian fiscal year.

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Macroeconomists fear a boost in the budget without a parallel growth in GDP is a recipe for budget deficit, which may cause inflation in the economy. Although the proposed budget is lower than the 201.1 billion Br projected in the GTP document, and its growth rate is three percentage points down from its average record since 2011, those who follow Ethiopia’s macro economy caution that inflating the federal budget deficit from the 3.3pc of GDP registered in 2013/14 fiscal year is inevitable.

For a country whose domestic and external debt is ballooning to over 20 billion dollars, representing 25.7pc of the GDP, the concerns are that the administration may get compelled to print money to finance its deficit. Doing so would certainly push up the inflation rate of 9.10pc, registered in April 2014, to double digits, thereby eroding gains achieved in overcoming poverty.

Ethiopia has an economy ravaged by inflation in recent years, with an average of nearly 20pc in the eight years since 2006, where the peak of 64.2pc was recorded in July 2008. The inflationary pressure seen during these years has “undermined poverty reduction and the overall economic development effort by adversely affecting investment and the wellbeing of the urban poor,” a policy document issued last year by the MoFED conceded.

In order to alleviate inflationary pressure on the urban poor, the administration has had over six billion Birr expenditure since 2008, where it had bought wheat and edible oil to be distributed to the market through a highly subsidised rate.

Economists generally agree that persistent budget deficits – as in the case of Ethiopia –generate macroeconomic imbalances. Ethiopia has a history of budget deficit averaging at 3.45pc of the GDP ever since the EPRDF took power in 1991, reaching a record high of 6.6pc in 2003. The increase in budget deficit and the potential resurgence of inflation are the major threats to the economy next year, according to a macroeconomist who spoke to Fortune anonymously.

However, with hardly any detail on the budget now sent to Parliament, it is yet to be clear on the size of the budget deficit and the plans the administration has in financing them.

http://addisfortune.net/articles/latest-budget-besieged-by-threats-of-deficit-inflation/

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Chinese Ethiopia Visit Stirs Investment Interest

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The delegation of businessmen were especially interested in joining the hotel sector, which had left them disappointed

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Girma Temesgen, Ethiopia’s Consul General in Chongqing, China.

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A group of Chinese businesses and businessmen are talking to a major British consultancy firm about huge investments they are considering in Ethiopia. This came after they visited the country in early May 2014. A group of leather companies are also expected to come sometime between now and September.

A delegation comprising of 23 companies, all in the manufacturing sector, including electronics, machinery and chemicals, came to Ethiopia for a visit that lasted from April 29 to May 4. The group – which came in the company of Girma Temesgen, Ethiopia’s Consul General in Chongqing, China, covering southwest China – was selected from a larger group of businesses that the consulate had been talking to with the assistance of China’s government and Chamber of Commerce, Girma said.

The group was able to see first-hand what the consulate had been telling them in words, said Girma, a career diplomat who had previously been a director at the Ministry of Foreign Affairs (MoFA)for 20 years and who opened Ethiopia’s Consulate General in Frankfurt, Germany. After their visit, five of the group had crystallised their interests in three areas. These included Liu Yudi, Chairman of the Chongqing Shandong Chamber of Commerce and owner of several landmark buildings in Chongqing city; Dong Yintong, owner of several companies in real estate, transport and coal mining, who also owns two ships to transport coal, and Ram Jianguo, owner of Kailt Machines Plc, manufacturer of agricultural machines, pumps and engines, as well as the owner of a financing company, the Chongqing Beibei Rongde Micro-Credit Co Ltd.

These business people and two others have expressed the possibility of investing in a city upgrade and the construction of a five star hotel in Addis Abeba, as well as the development of an industry park. They have already heard from one consulting company about turning these into concrete businesses in Ethiopia, Girma said. This week they will also be hearing from a British consultant.

The city upgrade they have in mind considers taking some parts of Addis Abeba and rebuilding the entire area into a city complex, with a complete set of facilities – schools, hospitals and entertainment.

Their desire towards building a five-star hotel, Girma said, was borne out of their disappointments with their stay in Ethiopia, despite paying high room rates. They have told the Ethiopian consulate in Chongqing that they want to model their hotel after the Yu Zhou Hotel, where Chinese officials, including those at the highest level, stay when they are visiting that part of the country, Girma said, stating that he is yet to visit the hotel. This hotel, though, might not be bigger than Dreamliner Hotel in Addis Abeba, say some who know both hotels.

The leather industry group expected to visit in the near future was supposed to come to Ethiopia along with the 23 that came in May, Girma said. The local government officials from Bishan County that were to accompany them had to stay due to tight schedules, however, and the entire group decided to stay. Bishan County has been traditionally known as a shoe making community for centuries. Currently, there are 991members of the footwear association, Girma said. Twenty to 25 of the well-known companies have already been confirmed as part of the delegation, he said. Seven of them are companies that deliver products to international brands, according to him.

The consulate covers a region of China with a population of 150 million. Its tasks include seeking investment, technology transfer, trade and tourism opportunities for Ethiopia. It also follows on the complaints of Chinese companies from South-West China already in operation in Ethiopia – these include companies involved in the construction of the Addis Abeba light railway and the Sebeta-Meiso railway, as well as a road construction project from Mekenejo to Dembi Dolo and another company installing transformers to take the electric power from the under construction Gereat Ethiopian Renaissance Dam (GERD)to the national grid. Some of the complaints these companies had raised to the consulate included the delayed installation of electric poles for the railways and farmers who were not leaving road construction sites because compensation was not delivered on time.

The consulate office has arranged years for 76 companies to visit Ethiopia over the past two and half.

“Whether they decide to invest or not, arranging for all these to visit the country is not a simple thing,” Girma said. “Over the next four to five years, southwest China could be a big source of investment in Ethiopia.”

http://addisfortune.net/articles/chinese-ethiopia-visit-stirs-investment-interest/

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Lifan Motors Has a Long Road Vision in Ethiopia

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The company is facing fierce competition from used cars, with brands like Toyota remaining popular

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Employees of Lifan Motors working with diligence and attention at one of the 17 plants of the Company located in China.

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Lifan has recently moved into a new plant at the Eastern Industry Zone in Dukem, 37kms outside the capital, Addis Abeba. The company says, however, that it is in business in Ethiopia more as a long-term investment as opposed to an immediate profit, which at present, it is making only from the after-sale service it offers to customers.

Ethiopia, or Abyssinia – as a translation from the Chinese of one of the presentations at its convention last week put it – is, actually a very small market for Lifan. The third Global Distributor Convention of Lifan Motors, organised every three years, took place at the Jiuzhai Paradise Intercontinental Hotel in Juizhai, China, on June 4, 2014. Attending were distributors, dealers and journalists from over 30 countries, as well as ambassadors, including Girma Temesgen, Ethiopia’s Consul General in Chongqing, China, where Lifan Motors is also based.

“When talking about the positive roles played by Chinese partners, it would be unfair not to mention the contribution of Yangfan Motors,” said Girma. “It was the first Chinese private automotive assembling, marketing and after-sale service company in Ethiopia.”

The late prime minister, Meles Zenawi, himself had a great role in convincing the Chinese company to invest in Ethiopia, he later told Fortune. The Company undertakes production in Ethiopia and five other countries, including Russia, Azerbaijan, Myanmar, Iran, Iraq and Uruguay, with Russia serving it with the sale of tens of thousands of cars a year and Ethiopia, according to company founder and chair, Yin Mingshan, with a low market that has stiff competition from old cars. Lifan says it sold 70,000 cars in Russia between 2011 and 2013.

The one-day convention, marked by bold and loud videos of Lifan’s existing and upcoming models, was accompanied by equally bold speeches from Yin and other top executives of Lifan Motors, which tried to elevate the confidence of their partner distributors and dealers, several of whom would be recognised by various awards for their achievements in 2013.

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Lifan cars undergoing the finishing stage of assembly process before getting ready for the market.

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The Company reported, during the convention, that the year 2013 was a time when it achieved a total sales revenue of a little over one billion dollars, “up 23.37pc year on yea, or 7.6pc against the industry average”. That same year, it says it exported 60,000 cars, with its sedans claiming 12pc of the export market in their category. The export volume was 12 times the 4,990 it exported in 2007 – its cumulative exports since then reaching 210,000 cars.

“Lifan motors grew to be the third largest automobile exporter with a self owned brand in China,” said Mark Timber, Lifan Group’s vice president.

Lifan is working to boost its quality and credibility by partnering with the Massachusetts Institute of Technology (MIT), in R&D, and the German, Bosch, for electronic supplies, according to Yin.

The Company, which is listed on the Shanghai Stock Exchange, has 23 plants, with six of them located outside China, Mark said. Ethiopia, one of those countries where Lifan has semi-knockdown or assembly plants, has recently seen a boost with government orders, despite the lukewarm market. It has been delivering 125 Lifan 520 sedans and two X60 SUVs over the past four months, all ordered by the Public Procurement Property Disposal Service

There is production every day at the assembly plant, however minimal, says Biniam Mengesha, sales and marketing manager at Yangfan Motors, Lifan’s Ethiopia subsidiary. The profit making repair service receives up to 120 cars a week at the Company’s two garage’s near Kera, in Kirkos District.

Lifan came into business in Ethiopia in 2007 in partnership with Holland Cars, a partnership that ended on bad terms in 2009. Since then, it has continued solo as Lifan Motors in Ethiopia, while Holland Cars went downhill over the following years, with the founder, Tadesse Tessema, eventually fleeing the country amidst claims of undelivered vehicles.

Lifan has sold about 3,000 cars in Ethiopia since, about 45pc of which were Lifan 520 sedans, according to Yared Seifu, sales and marketing deputy manager at Yangfan. The X60 SUV has sold more than 300 units since its launch in May 2012; this model, first launched in April 2011, had sold 100,000 units by the end of 2013. The company is now receiving orders for the Lifan 530, launched in March 2014, while the 730 is expected to follow, although the date has not yet been fixed for it.

Lifan’s short term plan for Ethiopia includes leasing 10,000sqm of land in Addis Abeba to build its own office and showroom building, says Liu Jiang, Yangfan’s general manager. Although the company has a long-term plan of manufacturing Lifan cars in Ethiopia for export to the African market, current sales of 600 to 700 cars a year and high logistical costs of 3,000 dollars a unit are limiting the company’s ambitions, Liu says, expressing hope that the figure could go down with the Ethiopian Shipping & Logistic Services Enterprise (ESLSE) charging less and increasing sales in the market, which could reduce the unit cost. Lifan’s brand, he says, is not yet strong enough to beat the competition from used cars, with such brand names as Toyota, he adds.

“While customers know the value of a used Toyota car, they cannot put a price to a five year old Lifan car,” he said. “There is also a huge established service capacity for the used cars, which gives buyers a level of confidence in them.”

Both Liu and company founder, Yin, argue that it is the government that has to do something to discourage the sale of used cars in Ethiopia, so that makers of new cars could succeed.

“Ethiopia’s market is not more than 10,000 units a year, and most of it is in used cars,” Yin Mingshan said.

Yin, now 76 years old, established the company after retiring from government work. Now he is building it into a kind of empire with a presence in some 50 countries worldwide. North America and Western Europe are the only markets that Lifan has not yet set foot in. But Yin says his company will venture into both markets in the recent future.

He is said to be prepping his son, Yin Xidi, and daughter, Yin Suowei, both board members in the Company, for leadership positions, although he said during a press conference that he will only let a fit person to take over from him, child or otherwise.

http://addisfortune.net/articles/lifan-motors-has-a-long-road-vision-in-ethiopia/

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New Association to Put Ethiopian Automotives on the Right Road

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The new association, established with 14 members, will focus on improving the processes within the sector

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Rolf Gautschi (far left), general manager of Orbis Trading; Melkamu Assefa (left), the CEO of Marathon Motors; Abraham Abegaz (middle), CEO of Nyala Motors and Chris De Muynck (right), managing director of MOENCO

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The Automotives and Machineries Importers & Assembly Sectoral Association was established with an official launching ceremony at the Sheraton Addis Hotel on Thursday, June 5, 2014.

The Association was established with fourteen members who then selected four members of the board of directors and a chairman.

Abraham Abegaz, Chief Executive Officer (CEO) of Nyala Motors S.C, is the chairman of the Association. Alemayehu Mengesha (Eng), CEO of Race Engineering; Bekele Haile, owner of B.H Trading and Manufacturing Plc; Rolf Gautschi, general manager of Orbis Trading & Technical Centre S.C, and Chris De Muynck, managing director of MOENCO, are members of the board of directors.

“The formation of the association took a two years process,” said Abraham Abegaz. “It has finally got recognition and certification from the Ministry of Trade (MoT), as well as the Documents Authentication & Registration Office (DARO).”

Ten aims were listed in the Association’s structure document, including campaigning for the designing and implementation of policies that will support the Industry’s strength, to work on the challenges the companies are facing locally and internationally and to solve problems that appear in the business process among the members.

“To be a member of the Association, the companies should have a license of sole distributer or assembler of automotives and machineries,” said Melkamu Assefa, the CEO of Marathon Motors Engineering and founding member of the Association.

There are nine companies assembling vehicles in Ethiopia, including Mesfin Industrial Engineering; Maru Metal and Automotive Company; Bishoftu Automotive Industry; and Adama Agricultural Machinery Industry, with cars accounting for 80pc of production, according to recent data from the Metals Industry Development Institute (MITI).

The association members include prominent companies in the business, such as the Equatorial Business Group, Belay Ab Motors, the Automotive Manufacturing Company of Ethiopia (AMCE), Tana Engineering Plc and National Motors Corporation Plc.

In addition, members of the association include the sole distributers of Mercedes Benz, Hyundai, Nissan and UD trucks, as well as assemblers of branded automotives such as Toyota.

“The full percentage payment for a Letter of Credit (LC) from banks, the price defrayal by the Ethiopia Revenue & Costoms Authority (ERCA) on the automotives for taxation, the shortfall of foreign currency and the sluggish process at the Ministry of Transport (MoTr) in the registration of new brands are some of the major challenges we are facing,” said Abraham. “This forces us to have excess stock in our warehouses.”

According to Abraham, the main target of the Association is to address these major challenges that the companies are currently facing.

Ethiopia remains a relatively small market for automobiles, but in recent years it has shown a seven percent increase in open economy and consumer demand after the Growth & Transformation Plan (GTP) was designed and implemented in 2011.

Ethiopia imported 1,940 trucks in 2011/12, up from 1,008 in the 2010/2011 fiscal year, according to the Federal Transport Authority (FTA), which says 10,404 vehicles were imported during 2012/13. However, it notes an estimated 1,500 additional vehicles were likely to have been smuggled in.

The target is in line with the country’s GTP for 2011-2015, which calls for 85pc local content in locally produced cars by 2015.

http://addisfortune.net/articles/new-association-to-put-ethiopian-automotives-on-the-right-road/

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Jinka Airport Given Green Light With Construction Contract

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The Ethiopian Airports Enterprise is also looking to construct new airports in Hawassa and Robe

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Wondeme Teklu, head of the communication affairs office at the Enterprise.

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The Ethiopian Airports Enterprise (EAE) has awarded a 571.7 million Br contract to Afro-Tsion Construction Plc for the construction of the country’s 18th airport at Jinka, 587kms south of Addis Abeba.

The Enterprise contracted the project to Afro-Tsion on May 27, 2014, and the contractor was handed over the land, located three kilometres away from Jinka town, on Thursday June 5, 2014.

Afro Tsion, a grade one general contractor, was established in 1990 and is engaged in road and bridge construction, infrastructure and real estate development and water works. The contractor has previously worked on the construction of numerous projects, such as Mekele University, Oromia Regional Offices, Gondar University, Assela Malt Factory, Jimma University, Awash International Bank Project (Adama Branch Office Building), water works at Gewanie and Awash Arba water supply projects.

The Transport Construction Design Enterprise (TCDE) – a fully fledged state owned consulting firm, which  deals mainly in the design and construction supervision of roads, bridges and airports – is the consultant for the construction of the Airport. The TCDE was established in August 1987. Before this, the TCDE had been a division under the Ethiopian Roads Authority (ERA) for about 30 years, serving as a consultant.

“The construction will only include the landing part of airport, which will be finalised within two and half years,” said Wondeme Teklu, head of the communication affairs office at the Enterprise. “The passenger terminal is under design and will be ready for construction next year.”

According to Wondeme, the airport will lie on a three million square metre plot of land and the landing area will be 2.5kms in length and 60ms in width. It  is designed to serve the Boeing 737 model of aeroplane.

Currently, the Enterprise administers 17 airports all over the country; three of these are gravelled airports – Semera, Pawe and Robe Goba. Among the total airports, four of them are international – Addis Abeba Bole, Dire Dawa, Bahir Dar and Mekelle Alula Aba Nega.

The Enterprise selected Jinka for the construction of the airport for two reasons, according to Wondeme: the economic growth of the city and high tourist flow towards Jinka.

According to the Growth & Transformation Plan (GTP), the Enterprise planned to have a total of 21 airports before the end of 2014/15 fiscal year.

“We floated a tender for the construction of the Hawassa and Robe Airports as well,” said Wondem. “As for the construction of the Hawassa, Robe, Semera and Jinka passenger terminals, we will auction tenders soon.”

According to Wondeme, the construction of the passenger terminal of Jinka, which will be built next year, will have the capacity to accommodate 178 passengers at a time.

The Ethiopian Airports Enterprise (EAE) was formally established as a public enterprise in January 2003, by the Council of Ministers (CoM), with a capital of two billion Br.

Before the Enterprise’s establishment, the former Civil Aviation Authority was responsible for administering the economic and technical regulations, airport services and aviation security. But later, the government decided to handle the three responsibilities separately by forming the Ethiopian Civil Aviation Authority and the EAE. Airport security has continued with the National Security & Intelligence Affairs.

The Enterprise provides two services: aeronautical (runway, taxiway and flood lights) and non-aeronautical (restaurant, hotels, banking and shopping) to generate revenue. Currently, the Enterprise generates a net profit of 900,000 Br annually and shows an average annual increase of 10pc.

http://addisfortune.net/articles/jinka-airport-given-green-light-with-construction-contract/

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Billion Birr Construction of Additional 40/60 Houses Commenced

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Approximately 860,000 people are registered across the three housing schemes – 10/90, 20/80 and 40/60

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Experts laboring in the preparation of the land for the construction of 6,551 houses at Ayat Bole site

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In addition to the ongoing construction of low cost houses, the Addis Abeba Saving Houses Development Enterprise (AASHDE) has embarked on the construction of new condominium houses at a cost of more than one billion Birr, Fortune learnt.

This project, which is located at the Ayat bole site, will see the construction of about 6,561 houses on a 49ha plot of land under what is known as 40/60 housing scheme. This is the ninth site for the construction of houses under this scheme.

The construction of 6,048 houses under this scheme are taking place at eight sites in four districts in city as of June 2013. The construction progress reached an average of 19.15pc in April, 2014. The highest progress achieved is at sites in Lideta District, with 45.4pc of construction completed, with the lowest progress at a site in Kolfe Keranio District, progressing by 12.4pc.

City residents registered under this scheme must save 40pc of the value of the houses within five years and the government arranges a loan for the remaining 60pc from the Commercial Bank of Ethiopia (CBE). They achieve this by mortgaging the house to be transferred to the user upon completion.

The new construction site will accommodate a total of 133 blocks with a varying number of storeys. Eighty of the buildings will have seven floors with a basement, while 35 of them will be nine storey apartments with one basement. The remaining 18 will have twelve floors with two basements.

The construction of the 12 storey buildings will be conducted by nine grade one contractors, and those with nine storeys will be erected by 16 grade two and two grade one contractors. The grade three contractors will participate in the construction of the seven storey blocks of the new site, according to Yohannes Abayneh, head of Communications at the Enterprise.

Fifty-one contractors have signed a construction agreement with the enterprise out of the total 57 contractors that will erect the apartments, according to Yenus Muhammed, general manager of the branch two office of the Enterprise. These are on the way to commence construction, while the remaining six are soon to sign a contract with the enterprise, he said.

A soil compatibility study has been finalised and the contractors are making the land ready for construction. Some already started the construction last week, Yohannes told Fortune.

It will take a year and half to complete the condominiums with 12 storeys and the nine storey blocks are due to be finished within 15 months. The third category of buildings are supposed to be finalised within close to a year’s time, according to Yenus.

The average cost to construct each of the 12 storey blocks is estimated at around 17.3 million Br, whereas 13 million Br and 11 million Br will be spent on each one of the nine storey and seven storey apartments, respectively.

Upon their completion, the houses will accommodate almost 33,000 people, said Yenus.

Currently, about 164,779 individuals have registered and opened a blocked saving account at the CBE for the 40/60 housing scheme.

The houses under this scheme are designed to have one to three bedrooms, the cost of which varies accordingly.

Those with a single bedroom will cost a total of 162,000 Br and requires a monthly saving of 1,033 Br, while the two bedroom houses are estimated at a value of 250,000 Br with a monthly saving of 1,575 Br. The houses with three bedrooms are worth 386,000 Br, with a monthly saving requirement of 2,453 Br. The monthly saving shall be made for five consecutive years and account for the 40pc of the total value of the houses.

For the current fiscal year the enterprise has allocated a budget of 1.25 billion Br for the construction of the new houses and the ongoing projects. It has also planned to start the construction of 13,881 houses at nine sites under the same scheme, according to Yohannes.

According to the current data obtained from the Addis Abeba City Administration, the estimated demand for houses stood at 311,432, whereas the total housing supply was only 70,000 units – indicating an outstanding housing demand of 233,143 units. The supply of housing units is only 22.5 pc of the demand.

In addition to the 40/60 housing scheme, two other schemes – 10/90/ and 20/80 – are also under implementation by the government, with the aim of replacing substandard accommodation in the city on top of satisfying the housing demand of the city’s residents.

For these three schemes, around 865,000 people have been registered and started saving through blocked accounts they opened at the CBE.

Along with the 40/60 schemes, the construction of 122,000 houses under the 20/80 scheme and 24,000 houses under the 10/90 scheme are also underway.

http://addisfortune.net/articles/billion-br-construction-of-additional-4060-houses-commenced/

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MetEc to produce 100MW electric power from waste

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Metal and Engineering Corporation (MetEc) has signed a memorandum of understanding with the Addis Ababa city administration and the Ethiopian Electric Power Service to produce 100 MW of electric power from Addis Ababa’s waste.

MetEc has also signed an agreement last week with the Canadian company that provides the technology for generating electric power from waste. MetEc is expected to begin operation next month once it finalized the agreement with the Canadian company.

The waste power generators will be located at the Akaki-Kaliti and Bole-Arabsa solid waste sites.
The project’s 75% power will be generated from Addis Ababa’s solid waste and the remaining 25% is known to be from the city’s liquid waste. MetEc is preparing to receive fourteen hectares of land for the project.

The finance source for the project will be provided by the Canadian company. The amount of electric power generated depends on the amount of waste available.
Once the project is finalized and when power generation is started, Ethiopian Electric Power Service will issue the payment for the project through MetEc.

It is remembered that a British company named Harvard had began operation to generate electric power from the waste located at the Repi area of Addis.

http://www.waltainfo.com/index.php/explore/13714-metec-to-produce-100mw-electric-power-from-waste-

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Nation to Plant Eight Billion Seedlings

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In the coming Ethiopian rainy season 8 billion tree seedlings are to be planted, all over the country, announced the Ministry of Environment and Forest.

Preparations are being made in cooperation with the regional governments to accomplish seedling planting program at the beginning of the rainy season, said Public Relations Director of the Ministry, Birhanu Ayalew.
Implementing Climate Resilient Green Economy, the goal of making Ethiopia ‘middle income nation’ by 2025 is still on the right track, he said.

According to the director protection and reforestation works have been done with the public participation.

http://www.waltainfo.com/index.php/explore/13713-nation-to-plant-eight-billion-seedlings

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Taiwanese Shoe Factory in Ethiopia Starts Marketing

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George Shoe Corporation, a Taiwanese shoe factory in Ethiopia, has offered its first 10,000 pairs of shoe for international market.

Established by Taiwanese investors 15 kilometers to east of Addis Ababa at Bole Lemi Industrial Zone,George Shoe factory is producing 4,000 pairs of shoe a day now. The factory makes 16,000 pairs when working in full capacity, explained on a visit paid to the factory by officials from Ethiopian Ministry of Industry (MOI).

State minister of MOI, Sisay Gemetchu said that George Shoe is the top in Ethiopia offering quality products and in quantity as well.
The Ethiopian government has been providing incentives to the investors for the accomplishment of their plans, he said.

The Company’s General Manager, O.K. Kaul acknowledged the Ethiopian government support to his company’s endeavor. The factory’s produce bears ‘Made in Ethiopia’ brand, he said.
This company produces 5 million pairs of shoes a day in China.

http://www.waltainfo.com/index.php/explore/13711-taiwanese-shoe-factory-in-ethiopia-starts-marketing

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PM Inaugurated Butajira Gubre Road

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Butajira-Gubre asphalt concrete road built with the principal of 800 million Birr was inaugurated by Ethiopian Prime Minister, Hailemariam Desalegn.

Construction of the road cutting the 1,300metre high Zebider mountain ranges by indigenous Sunshine Construction Companyhas indicated that local contractors’ capacity is growing, said the premier.

Ethiopian Transport Minister, Workineh Gebeyehu also appreciated the efforts of local contractors in saving the nation’s foreign exchange by winning more similar contracts these days.

The road shortens the former Butajira-Addis Ababa-Wolkitie 250 km distance to 82 km. Formerly it was necessary to cover a distance of 250km through Addis Ababa and Alemgena to travel from eastern town of Butajira in Gurage Zone to reach the zone’s capital, Wolkitie.

Sunshine Construction Company General Manager, Samuel Taffese urged the government to continue encouraging and supporting local contractors. The 82 km Butajira-Gubre asphalt concrete road is said to make the economic and social contact of formerly isolated east and west Gurage communities easier

http://allafrica.com/stories/201406090154.html

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Ethiopian Road Sector Creates Over Half Million Jobs

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The road sector has created more than 500,000 jobs during the Growth and Transformation Plan (GTP) period, the Ethiopian Roads Authority announced.

This sector is among those which create massive employment and has contributed a lot to reduce the number of the unemployed in the country, said Authority Communication Director, Samson Wondimu.
According to the director, 68 percent of the construction, maintenance and standard improvement works planned in the GTP were also attained.

The number of kebeles road networked has jumped over 61 percent from 40 percent during the GTP period.
Over 49 road projects have also gone operational, while the participation of consultants and contractors increased to 92 percent of the targeted plan.

http://www.waltainfo.com/index.php/explore/13712-ethiopian-road-sector-creates-over-half-million-jobs

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Land issue dominates Public Private Consultative Forum

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Solomon Afewerk and Kebede Chane

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Written by  Neamin Ashenafi

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The Ethiopian Public Private Consultative Forum (EPPCF) of the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) opened its eighth forum on Thursday at the Hilton Hotel focusing on the issue of protection of property rights.

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Ethiopia to fill Gibe III dam, rejects renewed calls for halt

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Ethiopia has rejected renewed calls for suspension of the construction of Gibe III dam as it prepares to start filling the reservoir of the hydroelectric dam being built in the lower valley of the Omo River

Ever since the country launched the Gibe III project, some groups have been calling for the halt of the construction citing environmental and social concerns. However, the construction has continued unabated with over 84 percent of the project so far completed

“We expect to start filling the reservoir in few months and begin dry commissioning afterwards,” Fekahmed Negash, boundary and transboundary rivers affairs director at the Ministry of Water, Irrigation and Energy, told WIC.
Fekahmed rejected a renewed call by the World Heritage Site Committee asking Ethiopia not to fill the dam ‘until a comprehensive social and environmental study of the developments is completed’.
“Building the dam is our sovereign right. Telling us to suspend the construction amounts to trampling this right,” Fekahmed said. He said five environmental impact assessment studies conducted on Gibe III project commissioned by independent organs support Ethiopia’s position that the project will cause no ‘significant harm’

The organs include the African Development Bank, World Bank, European Bank and two studies commissioned by the Ethiopian Electric Power Corporation.
Omo River contributes to 80 percent of the Turkana Lake, a rift valley lake whose large swaths are located within the Kenyan territory. Omo River joins the Turkana Lake, a UNESCO registered world heritage site, inside Ethiopia.
Last month the World Heritage Site Committee called for Lake Turkana, the world’s largest desert lake, to be listed as a ‘World Heritage Site in Danger’, a move that might put pressure on the Kenyan government.
Independent studies say the Lake level has declined 15 to 20 m during the last century. The lake’s water level indicate wide variations but evaporation poses the biggest loss of water.
“The level of water has been declining for years even before the launch of this project,” Fekahmed noted. “By storing and regulating the water in a cooler climate and inside a gorge, Gibe III dam reduces the amount of evaporation loss,” he added

The Ethiopian Ministry of Culture and Tourism has extended an invitation to heritage conservationists in Kenya who are expected to visit the dam site. In the past, a 26-member Kenyan delegation, including parliamentarians, had visited the project. Kenya has since expressed its support for the project

“Both Ethiopia and Kenya are working together to preserve the ecosystem of the Turkana Lake and jointly administer it,’ Fekahmed explained.
“Those calling for the suspension of the project could come and work with us instead of coming out with orders that defy our sovereign rights,” he added

The 1,870 MW Gibe III hydropower plant is expected to nearly double Ethiopia’s current power generating capacity. Ethiopia plans to export a portion of that electricity to Kenya with a power purchase agreement already signed between the two neighboring countries.
Gibe III is the tallest Roller Compacted Concrete (RCC) dam in the world standing 243 meters tall, which will have the capacity to hold as much as 14 billion cubic meters of water.

http://www.waltainfo.com/index.php/editors-pick/13777-ethiopia-to-fill-gibe-iii-dam-rejects-renewed-calls-for-halt

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Isareli Foreign Minister To Visit Ethiopia In Five-nation African Tour

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ADDIS ABABA, June 12 (BERNAMA-NNN-ENA) — Israeli Foreign Minister Avigdor Liberman will travel to Ethiopia during a 10-day “strategic visit” to five African countries, according to an announcement on the Israeli Foreign Affairs Ministry’s website.

It said Liberman will be meeting high-ranking government officials of Ethiopia, Rwanda, Ivory Coast, Ghana and Kenya. The minister began his tour on Tuesday.

During his stay in Addis Ababa, the Israeli foreign minister is expected to meet President Mulatu Teshome, Prime Minister Hailemariam Dessalegn and Foreign Minister Dr. Tedros Adhanom.

Liberman will hold collaborative financial-business seminars in the five countries, according to the website. The purpose of his visit is to develop economic ties between Israel and these countries.

The minister will be accompanied by a delegation from the Israel Export Institute, including representatives from some 50 Israeli companies and chairman of the African lobby in the Knesset, Simon Solomon.

Liberman was quoted as stressing the need to strengthen Israeli security and diplomatic, political and economic relations with Africa.

He has expressed commitment to further strengthen Israel’s relations with Africa in humanitarian assistance, investment and the fight against terrorism.

http://www.bernama.com.my/bernama/v7/wn/newsworld.php?id=1045631

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This is a generation that has to sacrifice – Ethiopian PM, Hailemariam Desalegn

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Ethiopian Prime Minister, Hailemariam Desalegn. Photo©Bruno Levy for TAR

Prime Minister Hailemariam Desalegn on the government’s pact with the youth to provide jobs, how to provide representation for opposition supporters, and South Sudan’s missed opportunities.

The Africa Report : What is driving industrialisation in Ethiopia?

Hailemariam Desalegn: We are using our comparative advantage. We have a young population. Land is abundant. We have cheap electricity, and we support priority industrial sec- tors in terms of financing, at least partially, from our policy banks.

The most important thing is changing the mindset.

Developmental states in Asia were very active in managing corporations. is there that administrative capacity here?

In Japan, you had one ministry of trade and industry which was very strong. But if you look at South Korea, there are a number of institutes that support this process. We have chosen the Korean model, as we don’t have the capacity to run things through one ministry. So we have institutes to push skills development and technology transfer, to support these priority sectors in textiles, leather, food and beverages, chemical industries and metals.

We are trying to have teams that are assigned to just a few industries that can follow them carefully from the beginning to the maturation of those indus- tries. Since we don’t have much capacity at this time, we opted for bringing professionals from outside. The Korean Development Institute is helping us. India is supporting us in textiles and leather. We have institutional links with those countries who have been successful.

In south Korea, a generation sacrificed itself for industrialisation. Are Ethiopians ready for this?

You don’t need to take all Ethiopians along with you, but you need a major portion, especially the young. Look at our education system. Our higher education enrolment is 70% in engineering and science, and 30% in social science. So 70% are going for industrialisation. Similarly, nearly all those who can’t get into higher education go to technical and vocational training. There is an indoctrination process about where Ethiopia has to go and how this generation has to sacrifice to bring productivity up. The most important thing is changing the mindset. We want to bring everybody into the movement where they think about productivity and quality, which is the basis of being competitive. And we will go further in this, to high schools later on, to bring the young people into this mindset as our national agenda.

Funding the state infrastructure drive is tough. What are your options?

Firstly, we are mobilising domestic finance. If you take China and the other recent develop- mental states, their main source of finance was domestic savings. We have an encouraging trend in Ethiopia. We thought that our savings would increase from 6% of GDP [gross domestic product] to 15% by the end of the Growth and Transformation Plan [GTP]. But, remarkably, it has already passed that figure, reaching 17.7% today, before three years of the GTP had elapsed. So we have revised our plan to make it 20% by the end of the GTP [in 2015]. This is the time to squeeze our people, to have more saving and less spending.

We are constructing the $4.6bn Grand Renaissance Dam from these savings. People wanted to contribute for free, but we said: ‘You have to build the culture of saving, and you have to buy bonds.’ But that is not enough. We still have a shortfall in terms of financing, so we are also attracting investment from Brazil, India, China, Turkey, Japan and Korea. We are getting their savings invested here at preferential rates. We also want to go for commercial loans. We have to get a credit rating, so we are working on that, which is going smoothly.

we are also attracting investment from Brazil, India, China, Turkey, Japan and Korea

Do you think soldiers are the best people to spearhead industrialisation, thinking of the Metals and Engineering Corporation (METEC) in particular?

In many countries, military organisations that have very good laboratories and workshops only use them for military use, not for development purposes. So we wanted to use the capacity we have in the military sectors for civil development. METEC is using that capability and discipline – in the history of mechanical engineering, much has come from the military. That doesn’t mean that METEC will be the only institution that does this, but it will be a leader. Then the private sector has to link with it. METEC is working now with big private sector engineering companies and also smaller ones, which helps spearhead the process.

Looking forward to the 2015 elections, are you expecting the opposition will gain more seats in parliament?

As far as the elections are concerned, we want to focus on the process. We have to make the process democratic, free, fair and credible in the eyes of our people. Then the result is up to the people. I cannot predict that this many seats are going to be given to the opposition or the Ethiopian People’s Revolutionary Democratic Front (EPRDF).

Do you feel that the process is democratic?

Our institutional process and our laws and regulations are perfect. It is not the law that hinders but the implementation of these laws. Therefore, we have put in place the code of conduct of all parties. Strictly abiding by this code of conduct will help the process to be more democratic, free and fair and also credible.

If there is a similar outcome to 2010, where only one opposition candidate won a seat in parliament, do you think that may affect the credibility of the government?

I don’t think so because if the decision is taken by the people, all of us have to agree to it. We have to accept it whether it is sometimes irritating to some of us.

Would it be useful to have an opposition in parliament that could give constructive criticism?

The code of conduct is designed in a way that it helps the shortcomings of the parliamentary election. In Addis, for example, the EPRDF has dominantly won. But out of the 3 million people in Addis, something like 400,000 voted for the opposition. The 400,000 have a voice that has to be heard, but how can you make it? In that sense, we have an inter-party dialogue mechanism. Those parties who competed in the election can come together before the parliament discusses bills or policy issues.

We always wish to have a strong opposition so that it will become a mirror to us. We need somebody from outside criticising us because that helps us to improve, but we are not lucky to have such an opposition.

They don’t have their own clear policy. They do not properly evaluate the basis of this government and what it has achieved so far, against all the odds in the region. They seek some kind of violent mechanisms to sweep the EPRDF away so that they will come to power. This is wishful thinking.

Are you concerned about the regionalisation of the conflict in South Sudan?

In the Intergovernmental Authority on Development (IGAD) region, we have already agreed that we are committed to avoid any regionalisation of the conflict. There will be a deterrent and protection force that is going to be deployed to South Sudan from the region. Sudan and Uganda also agreed not to be part of this force from IGAD. That avoids any kind of regional conflict. The only thing is we have to exped- ite the implementation of this deterrence and protection force.

What is Ethiopia’s position on the Ugandan intervention? Has it complicated the situation?

It has not complicated it. It has been helpful because had it not been for Ugandan intervention, you would not see a government standing now. It would have collapsed very quickly. There are views from both Sudan and Uganda, differing views that might lead to some problems on the ground, so we want to see a phased withdrawal of Uganda and the non-involvement of Sudan in the armed composition of IGAD.

We have deployed 100 technicians and bureaucrats to South Sudan.

There was much euphoria when South Sudan became independent. Are you disappointed with how things have turned out?

We were expecting this to happen. We are not disappointed. We have been suggesting to them that this might come because they have forgotten their direction. What their policy is towards a new state has not been properly spelled out. Who is going to lead the process has not been properly [put] in place and institution building has been ignored. We have deployed 100 technicians and bureaucrats to South Sudan. We have signed a number of agreements to support them in institution building. We have agreed and signed a number of agreements on common infrastructure development. We pushed them, but nothing has happened. We have learned our lesson from our mistakes. We wanted to share our experience with them. After rebels become a government, a proper transition has to take place.

How are the Ethiopian-led African Union Mission in Somalia (AMISOM) offensives going?

I think the game has changed since AMISOM troops and Ethiopia joined. In cooperation with other existing AMISOM troops, we have liberated a number of towns and villages from the yoke of Al-Shabaab. That is only a military achievement. We need to have humanitarian support to those liberated areas quickly. This is our demand. There is some movement, but it is not enough.

Are you concerned that because of the visibility of Ethiopian troops in this offensive there will be reprisals at home?

We were always a target for Al-Shabaab. The most important thing is that our people have to be vigilant. Our security sector also has to be active in this regard. This is our day-to-day business.

http://www.theafricareport.com/East-Horn-Africa/this-is-a-generation-that-has-to-sacrifice-ethiopian-pm-hailemariam-desalegn.html

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New Customs Proclamation Proposed

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A new customs proclamation aimed at establishing modern customs legal framework which encourages development of manufacturing industries and investment is proposed to the parliament.

The proclamation will help to provide effective and speedy service needed in the international trade, Muferihat Kamil Government Whip with the rank of State Minister told the parliament.

It will help to bridge gaps observed in the customs proclamation the country is currently using since 2001E.C. The need for more modern customs legal framework to support development of industries and investment make introducing new proclamation necessary, she said.

The MPs raised various question on the draft proclamation that need clarification and it referred to the Budget and Finance Affairs, and Law and Administrative Affairs Standing committees for further scrutiny.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2203:new-customs-proclamation-proposed&Itemid=200

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Authority to Launch Market Information System for Industrial Products

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Trade Competition and Consumers Protection Authority announced that it will launch a market information system for international industrial products.

Director of Market Information, Compilation, Interpretation and Dissemination with the Authority, Etissa Deme, told ENA that preparations are finalized to launch a market information system that will enable the Ethiopian business community to get market prices of all products elsewhere in the country.

He also stated that the proposed market information system will incorporate free SMS and a website to disseminate market information.

Currently the Authority provides market information on about 700 agricultural products.

The director said discussions are in progress with market information providers so as to deliver prices of international industrial products for the consumer.

According to him, the Authority gets market information from Addis Ababa, Amhara, Oromia, Tigray and SNNP regional states market information centers. It is currently working to access market information from other regions.

Etissa said the Authority will disseminate the daily market information of Addis Ababa market information centers and the weekly market data of the regional market centers through SMS and its official website, in addition to utilizing the media and cooperatives.

The director disclosed that the website will be developed with the support of Bahirdar University.

The website, in addition to providing current market prices of products for business communities, will also inform the public about levels of products and internationally-banned items.

To this end, the Authority is working together with Ethiopian Conformity Assessment Enterprise (ECAE) and Ethiopian Standardization Authority (ESA), it was indicated.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2204:authority-to-launch-market-information-system-for-industrial-products&Itemid=200

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Projects With Over 9.9 Billion Birr Capital Licensed in Amhara State

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Some 833 projects with over  9.9 billion birr combined capital have received licenses to undertake different investment projects in Amhara State during the current Ethiopian fiscal year, the State Industry and Urban Development Bureau said.

Speaking at a problem identifying consultative meeting in Debrebirhan, Bureau Deputy Head Ato Melaku Alebel said there were shortages of infrastructures in some towns and gaps in creating awareness on the abundant human resources available in the towns.

To encourage investors, the bureau has designed 19 investment alternative projects in all zones of the state and 11 industrial villages equipped with sufficient infrastructures are readied in 18 towns, he added.

In order to alleviate the existing problems, the bureau has even opened branch office in Addis Ababa to support investors after holding consultative meetings, Melaku said.

On the other hand, close to 1,800 hectares of land seized illegally in North Wollo Zone was taken away and distributed among 5,578 youth, according to Ato Wodaj Miskir, expert with the zone.

Similarly, 1,825 hectares of land illegally occupied in Lasta woreda was given to youth, elders and women last Ethiopian year, it was learned.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2202:projects-with-over-99-billion-birr-capital-licensed-in-amhara-state&Itemid=250

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Primary Education Net Attendance Reaches 94% in Gambella

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Primary education net attendance in Gambella State has reached 94 percent, the state education bureau said.

Activities carried out over the past four years enabled the state to increase access to primary education, according to Tut Jock, Bureau Deputy Head.

The villagization program being implemented in the state during the past few years has helped the regional government provide educational infrastructures for villages.

Construction of schools and raising awareness of parents about sending children to school helped to raise the rate to 94 percent from the 72 percent at the beginning of 2003E.C.

The state has also managed to narrow gender disparity in primary education, he said. Currently number of girls attending primary education is almost equivalent to boys.

The state is working to improve access to primary education and achieve the goal set for the growth and transformation plan, to reach primary education coverage 100 percent.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2190:primary-education-net-attendance-reaches-94-in-gambella&Itemid=251

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Great Lakes Private Sector Responsible Investment Roundtable Held in Addis Ababa

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Great Lakes Private Sector Responsible Investment Roundtable was held here on Wednesday to explore how responsible investment can contribute to inclusive business and sustainable development, and to share concrete examples of success stories from Africa.

Speaking on the occasion, Prime Minister Hailemariam Dessalegn said speakers are expected to share their perspective on the current context and investment climate in the Great Lakes Region.

A responsible private sector and its investment activities can greatly contribute to peace, stability and economic development in the region, according to him.

The PM explained that focusing investment on productive sectors like agriculture, manufacturing, ICT, energy and infrastructure sectors where the countries of the region have comparative advantage is of paramount importance.

Special Envoy of the UN Secretary-General for the Great Lakes Region, Mary Robinson, said on her part the aim of the roundtable is to exchange ideas on how to boost investment and economic opportunities in the Great Lakes Region in sustainable manner.

Supporting regional economic development and integration in the Great Lakes in a manner that respects and promotes human rights goes to the very heart of what thirteen governments of the region committed to doing when they signed the Peace, Security and Cooperation Framework for eastern DRC and the region here in Addis Ababa a little over one year ago, she elaborated.

She emphasized that women and youth should be involved and remain critical for any responsible investment in the region.

Female participation in economic life is a tool for empowerment and an essential component of building strong economies and stable and just societies, increasing stainable development, and improving human rights and quality of life for women and girls, Mary concluded.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2194:great-lakes-private-sector-responsible-investment-roundtable-held-in-addis-ababa&Itemid=260

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Nyota Minerals selling interest in Ethiopia gold project

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Nyota Minerals selling interest in Ethiopia gold project

Nyota Minerals (ASX:NYO) has entered into a conditional agreement to sell its remaining 25% stake in the Tulu Kapi Gold Project in Ethiopia to KEFI Minerals for £750,000 (A$1.34 million) in cash and 50 million KEFI shares.

Proceeds from the sale will be used to further evaluate the Northern Block Licences, including the potential for near term cash flow from mechanised alluvial mining, and on other opportunities in Ethiopia.

The company noted that KEFI had completed a new mineral resource estimation in March and it would have been required to contribute to Tulu Kapi pro-rata to its shareholding, or suffer dilution of its shareholding.

Financing options were insufficient to fund Nyota’s 25% of the new budget, or £325,492, its evaluation of the Northern Blocks as well as working capital requirements.

This led to the decision to sell its interest in Tulu Kapi.

http://www.proactiveinvestors.com.au/companies/news/55557/nyota-minerals-selling-interest-in-ethiopia-gold-project-55557.html

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Ethiopia, Israel keen to deepen ties

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Ethiopia and Israel have agreed to further deepen all-round relations between the two countries.

Israel’s Foreign Minister Avigdor Liberman is in Ethiopia where he met with Ethiopia’s Foreign Minister Tedros Adhanom (PhD). He is also scheduled to meet Prime Minister Hailemariam Desalegn and President Mulatu Teshome (PhD) later today.

The two Foreign Ministers today signed a memorandum of understanding at the Ministry of Foreign Affairs in Addis Ababa.

According to Hilawe Yosef, Ethiopia’s Ambassador to Israel, the memorandum of understanding incorporates political, economic and security cooperation.
At a joint press conference held after the signing, Tedros said Israel’s Foreign Minister has reiterated the country’s readiness to strengthen its support to Africa in fighting terrorism.

The security cooperation between Ethiopia and Israel includes intelligence sharing, Tedros added.

“Today’s discussion is on how we can further deepen our cooperation,” Tedros said.

Liberman, for his part, said the two countries have agreed to hold regular consultations between their ministries.

“We are in the best page of our bilateral relations which goes as far back as two thousand years during the Solomonic era,” Liberman said.

The visit also aims to boost economic ties between the two countries. More than 40 Israeli private businesses from the Israel Export Institute also accompanied Liberman, who is visiting Ethiopia for the second time in that capacity.

The businesses are drawn from various sectors including agriculture and water technology, energy and mining, life science, information technology, banking, homeland security, infrastructure, consultancy and aviation.

Earlier the two foreign ministers opened an Ethio-Israel business forum at the Sheraton Addis. The two day forum, jointly organized by Israel’s embassy in Addis Ababa and the Ethiopian and Addis Ababa Chambers of Commerce and Sectoral Associations, are aimed at boosting business to business ties between Ethiopian and Israeli companies.

The Israeli foreign minister, who is on Africa tour, will also visit Rwanda, Ivory Coast, Ghana and Kenya.

http://www.waltainfo.com/index.php/editors-pick/13816-ethiopia-israel-keen-to-deepen-ties

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Ethiopian, Israeli Business Discussing

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The Israeli business delegation that accompanies the Foreign Minister Avigdor Liberman has started discussion with Ethiopian business persons on possible partnership.

Speaking on the occasion, Ethiopian Foreign Minister Dr Tedros Adhanom said in spite of the age-long relation, the trade and investment tie between the two countries is low.

A number of multinational companies are being attracted to Ethiopia because of the successive economic growth of the country over the past decade, he said.

The government will extend support for Israeli companies with the desire to increase their involvement in the economy, he said.

For his part Minister Liberman said the economic cooperation between the two countries doesn’t improve as desired.

Ethiopia is among the strategic partners of Israel in Africa and he affirmed that he will exert maximum effort to lobby on Israeli companies to be able them engage in Ethiopia.

The annual trade relation between the two countries has reached 112 million USD in 2013 from 46 million USD in 2004.

The trade balance is in favor of Ethiopia. Ethiopia has exported items valued at 93.6 million USD, while the balance is import from Israel.

Sixty four of the total 200 licensed Israeli companies with an aggregate capital of 7.1 billion Birr to do business in Ethiopia have so far started operation, according to Fitsum Arega Director-General of the Ethiopian Investment Agency.

The companies are engaged in agriculture, particularly in sesame, horticulture and floriculture production, he said.

Israel is the second largest destination for Ethiopia’s sesame production next to China.

Arava Power Company is among the 50 companies accompanied the Foreign Minister to identify investment and business opportunities in Ethiopia.

The company is conducting feasibility study to develop energy from geothermal and solar with 300 million USD, according to Company Co-Founder Yosef Abramowitz.

The Company is engaged in similar investment area in Rwanda, the Founder said.

Mekorot Development and Enterprise is another company desirous to invest in Ethiopia. The company is interested to invest in Ethiopia in water technology, said the company’s business development vice president, Zvi Pinczowski.

The company is assessing the possibility to partner with Ethiopian businesses working in the area, he said.

Israeli companies are coming to Ethiopia to search investment and business opportunities in the country, according to Kebede Abera, Business Diplomacy Director General with the Ethiopian Ministry of Foreign Affairs.

Similar business delegation has visited Ethiopia three months ago to identify business and investment opportunities in the country.

The delegation led by the Israeli Agriculture Minister has shown interest to engage in the agriculture sector, he noted.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2223:ethiopian-israeli-business-discussing&Itemid=260

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Liberman Says Israel Will Strengthen Trade, Investment Relations with Ethiopia

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2228:liberman-says-israel-will-strengthen-trade-investment-relations-with-ethiopia&Itemid=260

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President Says Ethiopia’s Membership to EITI Would Ensure Transparency

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2225:president-says-ethiopia’s-membership-to-eiti-would-ensure-transparency&Itemid=260

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EU – Ethiopia On Track to Meet MDG’s

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EU ambassador to Addis Ababa, Chantal Hebert told reporters that Ethiopia has become effective in eradicating extreme poverty, reducing child and maternal mortality; and making primary education accessible to children, controlling malaria, HIV/AIDS and other sexually transmitted diseases (STDs) and in sustainable environmental protection .

According to Ambassador Chantal Herbert, Ethiopia is on the right track to meet most of the Millennium Development Goals before 2015 .She also indicated that Ethiopia has become successful in job creation and in encouraging entrepreneurial ventures and improving lives of its people. Allocation of 70 percents of the nation’s budget to poverty reducing sectors such as education, health and infrastructure has helped to the achievement of the success; she added .

She also reminded that if the economic growth of the country continues with the current pace, Ethiopia will be able to achieve a middle income nation status by 2025. According to the ambassador EU had provided 680 million Euros worth development support to Ethiopia from 2008 to 2013. It has also approved a development support of 745 million Euros from 2014 to 2017. Accordingly, EU provides Ethiopia a development support of 200million Euros annually.

http://allafrica.com/stories/201406171355.html

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Minister Observes Big Improvement in Justice Organs

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The role of justice organs in building a democratic system and ensuring the prevalence of good governance has shown big improvement, according to Ministry of Justice.

A consultative meeting that evaluates the performance of the ministry and regional justice bureaus during the GTP and discusses the plan for the coming five years is underway here in the capital.

Speaking during the opening ceremony, Minister of Justice Getachew Ambaye said justice organs are helping create a stable system by ensuring the supremacy of law and respecting and ensuring the respect of the constitution and the constitutional order as well as reducing crime.

Improvements have been witnessed with respect to making the economic growth of the country and peace become reliable, and good governance prevail in the justice system, according to Getachew.

Justice organs are in particular showing improvement from time to time in providing fast and localized justice for the public, he noted.

Justice State Minister Birhanu Tsegaye said on his part that justice organs were able to register satisfactory results by involving citizens.

Though impressive achievements are registered in delivering efficient justice and in ensuring the supremacy of law, rent seeking is observed in some quarters, he pointed out. In this respect an integrated system should be put in place to stop the practice, Birhanu underscored.

According to him, building a justice army and introducing structural changes as well as establishing a nationally integrated justice system are the tasks ahead in the coming years.

The three-day consultative forum is expected to assess the performance of the strategic plan of regional justice bureaus.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2226:minister-observes-big-improvement-in-justice-organs&Itemid=260

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Over 5.6 Billion Tree Seedlings Readied for Planting Across Nation

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2227:over-56-billion-tree-seedlings-readied-for-planting-across-nation&Itemid=250

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Draft customs proclamation proposed

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A draft customs proclamation aimed at establishing a modern legal customs framework which encourages development of manufacturing industries and investment has been proposed to the House of People’s Representatives.
The draft proclamation replacing the current 622/2001 customs proclamation is expected to provide effective and speedy service in the facilities of the authority and give the Director General of the Ethiopian Revenue and Customs Authority (ERCA) more power.
The new proclamation will also introduce structural adjustments in the functions of the authority and its human resource management. It also ensures the ‘free movement of goods for those organizations identified as Authorized Economic Operators (AEO), eases Post Clearance Audits (PCA), and decentralizes the activity of the authority.
The amendment introduces new ways in which customs officers can go to inspect the place where the goods are. Such practice saves costs and time and will help to further fuel the booming economic achievements of the country reads the clarification of the proclamation.
The proposed proclamation also gives the director general of ERCA the mandate not to institute criminal charges based on various conditions. The draft proclamation states that if the alleged offender cannot follow the proceedings due to old age or chronic disease, if it is believed that the proceeding of the case in court will harm national interest or international relations, if instituting proceedings may cause an unbalanced side effect or if the charge has not been instituted in time and thus has lost its relevance the director general may decide that criminal charges not be instituted.
The proclamation will also help to bridge gaps observed in the customs proclamation the country has been using over the last five years. The need for a more modern customs legal framework to support development of industries and investment has made the introduction of the new proclamation necessary.
The draft proclamation was referred to the Budget and Finance Affairs, and Law and Administrative Affairs Standing committees for further discussion.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4364:draft-customs-proclamation-proposed&catid=35:capital&Itemid=27

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Sudanese factory in Ethiopia inaugurated

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A Sudanese factory worth $ UD 5million built in Addis Ababa was inaugurated (June 12). The factory is engaged in manufacturing of electric poles, adhesives, water tankers, and dishes among others and created employment opportunity for 300 peoples. Speaking at the inauguration of the factory, State Minister for Industry Dr. Mebrhatu Melese said the factory, built by Albaz Industrial Company, will have a big share to enhance infrastructure and construction works in the country. The state minister noted that with the establishment of the factory the country will save over 2 million USD foreign currency annually. According to Dr. Mebrhatu the Ethiopian government has been providing production sites and multiple forms of assistance for both local and foreign investors. On his part, the owner of Albaz Industrial Company, Mohammed Hassen expressed his plans to expand the factory.

http://www.mfa.gov.et/news/more.php?newsid=3234

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Kessem sugar project takes farmers, private sector under its wing

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Kessem sugar development project underway in Afar regional state is expected to boost Ethiopia’s sugar production when completed at the end of this year, but beyond that the multi faceted development project has taken local farmers and private businesses under its wing.

When completed, the sugar factory will produce 260,000 tons of sugar annually when it starts operating at full capacity. The projects will cultivate 20,000 hectares of sugarcane plantation in Kessem and Bolhomon areas.

So far over 5,500 hectares of land has been covered with sugarcane plantations, according to Miruts Weldai, deputy head of the project’s farm operations. They plan to cover another 7,000 hectares of land during second round plantations expected to commence this month.

The project has brought unique opportunities for local farmers and private farms. In March 2014, Ethiopian Sugar Corporation, who owns state financed sugar projects in the country, signed the first ever out-grower agreement with a private company – Amibara Agricultural Development plc.

Based on the deal, Amibara, a private agriculture farm, will supply sugarcanes to Kessem sugar development project for three years. The company, whose farm is located in close proximity to Kessem project, will cover 6,000 hectares of land with sugarcane plantations.

Since the deal was signed, over 3,300 hectares of land has been covered with plantations, Miruts told WIC.

Besides offering job opportunities for locals, the project is providing trainings in sugarcane farming skills to local farmers.

The training aims to equip local farmers with the required skills which to cultivate sugarcanes on their plot and supply them to project’s crushing plant in an out-grower deal.

Farmers are being organized in cooperatives with whom the Kessem sugar factory will negotiate out-grower deals.

Such arrangements are not new for the corporation, in February 2014, Wonji-Shewa Sugar Factory struck its ninth out-grower deal with farmers’ cooperatives agreeing to purchase a quintal of sugarcane for 50 birr.

Kessem sugar plant, whose construction is being carried out by the Chinese Complant Group Inc, is expected to start crushing in November 2014. The irrigation dam on Kessem River is also nearing completion. The state owned Federal Water Works Construction Enterprise is carrying out the construction.

http://www.waltainfo.com/index.php/explore/13807-kessem-sugar-project-takes-farmers-private-sector-under-its-wing

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Albazz to manufacture chemicals locally

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Joining hands with Falcon Chemicals LLC, Albazz Industries PLC plans to begin making construction chemicals primarily using local materials.
Albazz CEO Mohammed Hassan said most of the raw materials which will go into products like paint, coatings, adhesives and construction chemicals are found in Ethiopia. Producing these chemicals will create jobs, save foreign currency and reduce imports significantly.
He explained that the products can be used for factories such as Carpentry, Joineries, Furniture factories, Paper & Packaging Industry, Paper converting industries, Bottle labeling, Printing & Cigarette industry.
Mebratu Melesse, State Minister of Industry, said some of the products, like paint, will be used in the government housing program.
Falcon manager, Mitika Gocunlda also said that other products will be used as glass replacement plastics which will reduce costs of materials used in telephone poles by 50 percent.
Falcon Chemicals LLC was established in the United Arab Emirates in 1976. The company has diversified into several business sectors with a marketing network spread across the Middle East, Africa, India and the Far East.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4362:albazz-to-manufacture-chemicals-locally&catid=35:capital&Itemid=27

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Workshop Urged for Comprehensive National Logistics

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During National Logistics Strategy Study workshop Mekonnen Abera, Ethiopian Maritime Affairs Director, urged for a comprehensive national logistics strategy for Ethiopia to achieve the aim of becoming a middle income country.

Mekonnen during the workshop noted Ethiopia is still highly inefficient despite making remarkable efforts to alleviate challenges in the logistics system. He continued and said the sectors underperformance is holding back the nation’s competitiveness.

According to the Director, the study is aimed at reviewing the overall logistics system, developing blue print for a more efficient and effective system, identifying required for transformation and desgining the implementation approach.

The workshop focused on reaching consensus among key players in the sector on the major bottlenecks identified in the first phase of the study.

The study was sponsored by the United Nations Development Programme and conducted by NATHAN Associates Inc. the firm presented its findings in the transport and road operation, port and corridor performance, railway operations and terminals and air cargo operations.

The findings revealed truck fleet in Ethiopia is old, inadequate by modern standards, slow and expensive to operate. It added for the new standard gauge Addis Ababa-Djibouti railway succeed, there must be convenient and cost effective connections for the shippers.

The study also indicated the general air cargo terminal at the Bole International Airport suffers from delay in removing goods.

http://www.2merkato.com/news/alerts/3046-ethiopia-workshop-urged-for-comprehensive-national-logistics

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European banks to finance Ethiopian railway constructions

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European banks have decided to finance Ethiopian railway constructions.

According to the Reporter, Credit Suisse and the Turkish export and import bank (ExIm bank) are the two that have agreed to finance the railway lines.

Credit Suisse has helped in convincing and organizing the European banks to finance the constructions and on June 20, 2014 Credit Suisse is expected to sign an agreement with Ethiopian finance and economic development ministry.

The European banks have agreed to finance the 400 km railway line that stretches from Woldia to Awash which is part of the lengthy Mekelle to Djibouti’s Tajura port railway line.

The banks will finance 85% of the 1.7 billion dollar project cost and the remaining finance is expected to be covered by the Ethiopian government.

Some commented that the European banks agreeing to finance projects in Ethiopia have a huge significance for the country and such situations haven’t been seen in the country’s recent history.

The Mekelle-Djibouti railway line construction is divided into three parts. The first leg of the construction which stretches for 260 Kms from Mekelle to Woldia is to be constructed by the Chinese construction company CCCC with 1.5 billion dollar finance from the Chinese ExIm bank.
The second one being the Woldia-Awash line mentioned above and for the third and final leg of the construction from Awash to Tajura port of Djibouti finance hasn’t yet been secured.

http://www.waltainfo.com/index.php/editors-pick/13802-european-banks-to-finance-ethiopian-railway-constructions-

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DHL to build world class facility

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DHL announced its plan to build a world class facility inside the Addis Ababa Bole International Airport.

The logistics company is currently in negotiation with the Ethiopian Airports Enterprise and Ethiopian Airlines to build the facility within the premises of the airport.
“We are looking at a potential location. Once we do the necessary contracts, we then start the construction,” stated Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa. Once completed the facility is expected to feature a service center and country office.
“We are very committed to investing in Ethiopia. It is taking longer than we expect but we have to respect the environment we work in,” Charles stated.
“Ethiopian Airlines and Ethiopian Airports Enterprise have their own stand of what they want and where they want us to be. We are trying to make sure we find a marriage that works. It is going to be a big investment, millions of dollars. We don’t put up that kind of money unless we are sure it is a good investment,” he added.
DHL is currently upgrading all our infrastructure in several countries in Africa and Ethiopia is part of the jigsaw puzzle.
DHL stated that East Africa and Ethiopia are key regions for growth within Sub-Saharan Africa. For the past three year, the East African community has sustained a high GDP growth, outpacing a number of Sub-Saharan countries. The International Monetary Fund (IMF) has forecasted a GDP growth of around 7.5 percent for Ethiopia in 2014.
“We have been very pleased with our progress over the last quarter, which is both a reflection of the country’s economic development but also of our employee’s passion for the business and taking it forward,” said Essete Gebriel, Country Manager for DHL Express Ethiopia.
She also stated that the company is doing significant work in increasing connectivity for Small and Medium Enterprises (SMEs), helping them to understand the paperwork, legislation and expertise needed to grow beyond Ethiopia’s borders.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4357:dhl-to-build-world-class-facility-&catid=35:capital&Itemid=27

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First Lady led Ethiopian women investors to Turkey

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An Ethiopian delegation led by First Lady, Mrs. Roman Tesfaye consisting of women business persons’ is on tour in Turkey to share experiences with Turkish investors and create market link. The delegation paid a visit to two leather producing factories in Istanbul called Tergan and DeRman which are in the business for over 40 years. On the occasion, First lady, Mrs. Roman briefed the Turkish investors about Ethiopia’s potential in leather input, government incentives and cheap human labor. Both factories said that the briefing was insightful. The owner of Derman factory, Mr. Ibrahim Aidewan said Ethiopia is now on top of his list for investment. The representative of Tergan leather producing factory said he sees the opportunity to directly import inputs from Ethiopian Tanneries. The visit organized by office of the First lady of Ethiopia and confederation of Businessmen and Industrialists of Turkey (TUSCON) aims to create market tie between Ethiopian and Turkish investors as well as enhance trade tie of the two countries.

http://www.mfa.gov.et/news/more.php?newsid=3236

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Half of Turkey’s African investment is in Ethiopia

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Ethiopia is now Turkey’s biggest African investment, Aykut Kumbaroglu who works with African Countries for Turkey’s Ministry of Foreign Affairs said. There are currently over 350 Turkish companies investing USD three billion in Ethiopia. This is half of the USD six billion the nation invests in sub-Saharan Africa.  Turkish officials say this has come as a result of their encouragement to invest in Ethiopia.
Aykut pointed out that the leaders of both nations have made reciprocal visits and their relationship is strong.
Ethiopia reopened its embassy in Ankara in 2006 and different Turkish offices have based their regional office in Addis Ababa including Turkey’s Anadolu News Agency.
Top diplomats in the Ethiopian Embassy at Ankara, told Capital that Turkish companies are now focusing on Africa. “Ethiopia is a gateway for their vision,” the diplomat explained.
The Ethiopian diplomat said that Turkey is now changing and they are transferring to the service sector from industry and because of this they are growing in Ethiopia.
“Our embassy and the government in Addis Ababa are aggressively lobbying Turkish companies to come to Ethiopia and this combined with the current Turkish investment in Ethiopia is creating a push, pull effect to enhance the already blossoming trade between the two nations,” the diplomat explained.
Ayalew Gobeze, Ethiopia’s Ambassador to Turkey, said even though economics is one of the main aspects of the two nation’s relationship there are other aspects as well.
Ayalew said that the number of Turkish investors asking to invest in Ethiopia is rapidly growing. “We are also working strongly to expand the number of Turkish investors in Ethiopia, because they will come into Ethiopia with benefits including new technology and knowledge,” the recently appointed ambassador and one of the top ruling party officials added.
“But when we encouraged the Turkish investment in the country we have to be responsible to facilitate the smooth bureaucratic process to expand the FDI,” he explained.
The interest of Ethiopian investors is also growing to work with the Turkish business community.
According to the 2013 data, the trade between the two countries has reached USD 420 million from USD 27 million in 2000.
Ethiopia is the first sub Saharan Africa country to begin modern diplomatic relations with Turkey at the start of the 20th century when Turkey opened its consulate in Harar.
Turkish officials say the two countries are working in many sectors including education, health and security.
Turkey has been training the Ethiopian Federal Police and several Ethiopian police officers are taking  training in Turkey.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4365:half-of-turkeys-african-investment-is-in-ethiopia-&catid=54:news&Itemid=27

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LG Hope College to open in November

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LG electronics announced that, LG Hope Technical and Vocational Education and Training College will begin operation in November this year.
Home and office equipment servicing, electronic communication and multimedia equipment servicing, and information communication technology are the subjects the colleges will give to its students. The college will also be supported by the Korean International Cooperation Agency and World Together NGO.
The three departments will have 25 trainers each and it will take three years to accomplish the training. Ten percent of the quota will be given to the Korean War Veteran decedents and low income groups for free of charge.
Executive VP of LG Kim Young said that the opening of the college will help the country by providing well trained personnel for the industry.
He also added, “the plan is to make the college one of the best academic and training centers of technology transfer and innovation.’’
The 12,000 sqm school is be located around the area commonly known as Summit and is expected to be completed in September.
In related news LG signed an MOU with the Foundation for Global Compact to strengthen its commitment to development challenges such as poverty, environmental degradation, and peace.
Kim said at the signing ceremony that “LG is committed to sharing its corporate social responsibility experience with the international community, and  encouraging other businesses to enhance their commitment to the UN Global Compact to tackle challenges to development through sustainable action.
LG is a global business enterprise with a 67 year history. It has played a significant role in the inception and development of Korea’s chemical and electronic industries. It has 200 offices around the world with 213,000 employees.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4356:lg-hope-college-to-open-in-november&catid=35:capital&Itemid=27

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GERD coordination office to launch SMS lottery game

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Office of the National Council for the Coordination of Public Participation on the Construction of the Grand Renaissance Dam said it will begin SMS lottery game soon to raise funds for the construction of the dam.
According to the office the lottery game is prepared for every Ethiopian to easily contribute to the dam.
Winners will be awarded a house, a car and other materials.
The car to be given for the winner has been provided by Nyala Motors, an exclusive distributor of motor vehicles and equipment.

http://www.waltainfo.com/index.php/editors-pick/13812-gerd-coordination-office-to-launch-sms-lottery-game

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eLearning comes as game changer for Africa’s education

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Challenging the norms in East Africa, many young women are tapping into their entrepreneurial potential. From developing apps and software, to founding non-profit organisations, women in East Africa are attracting African and global attention for  successfully changing patriarchal societies.
Women in East Africa are often the key home care providers, juggling working, maintaining the family home, cooking and importantly, helping their kids to learn. Whether doing their best to ensure their children have access to education, or actually taking on the role of teacher themselves, there is no doubt that women are playing a central role in raising eastern Africa’s young people. Reach out to the Wives of the Soldiers (ROWOSA) is a project by women, for women. The Uganda-based organization assists wives of soldiers who lack employable skills and opportunities to earn a sustainable income, thereby securing their financial independence. Through technology-supported programmes, these women can learn a variety of skills including sewing, computer science, baking and farming. With lifelong skills, these women can not only ensure the effective financing of a household with a double income, but also pass the skills onto their own children, improving their future prospects.
From startup accelerator Nailab in Kenya, mobile communications enterprise Text to Change in Uganda and then north to elearning centre Camara Ethiopia, East Africa has a plethora of innovative operations opening up and changing lives in communities.
“The initial idea for the e-learning events was sparked in 2004 when I heard about optical fiber cables being laid in Ethiopia,” says Rebecca Stromeyer, founder and CEO of Integrated Communications Worldwide Events, which runs the annual elearning Africa conference.
The eLearning Africa Report 2014, launched this week by Edward Ssekandi, Vice President of the Republic of Uganda, claims that eLearning opens window on Africa’s education future.
“The mood of optimism among Africans is unmistakable,”says the Report. “Our survey… confirms that African eLearning professionals are feeling confident about the future. This is more good news for the continent because the combination of education and technology is clearly a powerful driver for growth.”
The report repeats the late Nelson Mandela’s view that “education is the key to everything”. It emphasises, however, that the prospects for African education will depend increasingly on good communications and connectivity.
“If education is the key to everything, the key to the education of the future is infrastructure”.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4366:elearning-comes-as-game-changer-for-africas-education-&catid=54:news&Itemid=27

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PM inaugurates two roads

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Butajira-Gubre asphalt concrete road built with an investment of 800 million birr and Alaba-Alemgebeya-Welbareg that cost the government 712.7 million birr were both inaugurated by Prime Minister, Hailemariam Desalegn. Construction of the Butajira-Gubre road was done by cutting through the 1,300 metre high Zebider mountain ranges by a local company Sunshine Construction indicated that local contractors’ capacity is growing, said the premier during the inaugural ceremony.
Ethiopian Transport Minister, Workineh Gebeyehu also appreciated the efforts of local contractors in saving the nation’s foreign exchange by winning more similar contracts these days.
The road shortens the former Butajira-Addis Ababa-Wolkitie 250 km distance to 82 km. Previously it was compulsory to cover a distance of 250km through Addis Ababa and Alemgena to travel from the eastern town of Butajira in Gurage Zone to reach the zone’s capital, Wolkitie.
Sunshine Construction Company General Manager, Samuel Taffese urged the government to continue encouraging and supporting local contractors.  The 82 km Butajira-Gubre asphalt concrete road is expected to make the economic and social contact of formerly isolated east and west Gurage communities easier.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4360:pm-inaugurates-two-roads&catid=35:capital&Itemid=27

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Access to Potable Water, Sanitation Improving in Ethiopia

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The Ethiopian Ministry of Water, Irrigation and Energy announced that access to clean drinking water and sanitation is being improved through the concerted efforts exerted over the past years.

The activities helped the government to raise clean water and sanitation coverage to 68.5 percent and 67 percent respectively. Over the past five years, the country has been working for the improvement of access to drinking water and sanitation in rural and urban areas. Hygiene Coordinator with the Ethiopian Ministry of Health, Dagnew Tadesse said that more than 39,000 health extension workers deployed across the country are working to increase knowledge of households in handling liquid and solid waste.

Access to potable water, Sanitation improving in Ethiopia The Ethiopian Ministry of Water, Irrigation and Energy announced that access to clean drinking water and sanitation is being improved through the concerted efforts exerted over the past years.

The activities helped the government to raise clean water and sanitation coverage to 68.5 percent and 67 percent respectively. Over the past five years, the country has been working for the improvement of access to drinking water and sanitation in rural and urban areas. Hygiene Coordinator with the Ethiopian Ministry of Health, Dagnew Tadesse said that more than 39,000 health extension workers deployed across the country are working to increase knowledge of households in handling liquid and solid waste.

http://allafrica.com/stories/201406170216.html

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Vitamin-A Boosting ‘Special Banana’ To Undergo Human Trials In America.

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VENTURES AFRICA – Australian-grown genetically modified bananas, targeted at combating Vitamin-A deficiency among children in East Africa, is set to undergo its first human trials in the United States.

The banana, which has been modified to have high alpha and beta-carotene that converts to Vitamin-A in the body, will help prevent thousands of East African children from premature death and early blindness as a result of Vitamin-A deficiency.

According to reports on the project, the genetically-modified banana portrays a darker orange colour than the regular cream colour bananas are known to have.

The project, led by Queensland University of Technology (QUT) Professor James Dale, was supported by The Bill and Melinda Gates Foundation with $10 million.

Dale explained that although bananas grown in the highlands and East Africa usually posses largely reserves of Vitamin-A, this farm produce had low levels of micro-nutrients, particularly pro-vitamin A and iron.

Ugandan researcher Stephen Buah, one of the five Ugandan PhD students who has been working with other researchers at QUT says about 30 percent of children under the ages of 5 suffer from Vitamin-A deficiency.

“We’re aiming to increase the level of pro-vitamin A to a minimum level of 20 micrograms per gram dry weight,” Dale said.

If the experiment works out, there is a plan to start growing this special variety of banana in Uganda by the year 2020.

Farmers would start growing this special crop once constituted authorities stamp an approval for commercial cultivation. When field trials are in place, the same process could be applied to crops in other East African nations.

Researchers hope to get conclusive result on the project by the end of this year.

http://www.ventures-africa.com/2014/06/vitamin-a-boosting-special-banana-to-undergo-human-trials-in-america/

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U-Turn Over Transport Companies’ Privatisation Ban

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The deals will now be processed on the condition that priority is given to public projects

The Ministry of Finance & Economic Development (MoFED), last week, reversed its ban on the transfer of two state owned transport companies to private companies. The decision came on the condition that the new owners will give priority to public projects.

The ban came in response to the demand from the Ministry of Transport (MoT) to retain Bekelcha Transport S.C and Weyra Transport S.C under state ownership, in order to use their trucks for the transportation of imported equipment for ongoing government projects, including housing projects, according to Wondafrash Assefa, public relations head of the Privatisation & State Enterprises Supervising Agency (PPESA).

“Following the call from the MoFED to cancel the sale of the companies, the Agency wrote a letter requesting that the Ministry allow the transfer of the companies since the decision is not good for the image of the Agency,” said Wondafrash. “We invested in the auction of the companies; it would be a loss for the Agency.”

It was in response to this request that the MoFED agreed to lift the ban. The Agency’s legal department is now working to include the precondition in the deal. It will require them to give priority to transport cargo for ongoing state projects, Wondafrash said.

Tikur Abay Transport S.C, an affilate TIRET, had a successful offer of 325.9 million Br for the acquisition of Bekelcha, which the PPESA’s board approved on March 29, 2014. The approval for the acquisition of Weyra Transport by Trans Ethiopia Plc, an affilate of EFFORT, for 268 million Br was pending at the board when the process was halted by the MoFED.

“Tikur Abay paid 35pc down payment for the company some days before the MoFED cancelled the ban, while the reminder has just been sent to Trans after the ban was lifted,” said Wondafrash.

Both transfers could take place before the end of the fiscal year on July 7, 2014, according to Wondafrash.

There was no offer for two other state owned transport companies, Comet and Shebelle, both of which were offered for sale in the last round of tender for 2012/13.

In an unsuccessful privatisation year, the PPESA only managed to attract successful offers for five enterprises, including Weyra and Bekelcha, although its intention was to sell 20.

The PPESA is planning to make up for that through the aggressive promotion of the enterprises as a strategy.

A villa in the Bole District, owned by Batu Construction S.C, was also approved by the Agency to be sold to Abate Kone (MD), who offered 11.8 million Br. The Agency has also approved the transfer of Hamaressa Edible Oil S.C and Ethiopian Pharmaceutical Manufacturing S.C to buyers who have already made the down payment, although after a small delay,  Wondafrash said.

The Agency has another round of tender now in process, the fifth for the year, involving seven companies, five of which have previously failed to attract any buyers. Bilito Siraro Farm and the warehouse of the Ethiopia Fibre Products Enterprise are up for sale for the first time. The other five – the Ethiopian Mineral Development S.C, Bahir Dar Textile S.C, Kombolcha Textile S.C, Agricultural Mechanization Service Enterprise and Transport Construction Design S.C – are being offered for the fifth time within the same year. Financial opening will take place early in the next fiscal year, on July 23, 2014.

http://addisfortune.net/articles/u-turn-over-transport-companies-privatisation-ban/

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 Keeping Agricultural Revolution Mobile

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Opinion

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By Jonathan Ferziger

Israel’s Foreign Minister Avigdor Liberman is seeking deals in the world’s fastest-growing economies for companies including defense contractor Elbit Systems Ltd., irrigation equipment maker Netafim Ltd. and billionaire Idan Ofer’s Israel Chemicals Ltd. Photographer: Uriel Sinai/Getty Images

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Israel’s government is leading 50 executives this week on a tour of Africa in a bid to diversify business interests amid the threat of international boycotts and irritation over new corporate taxes.

Foreign Minister Avigdor Liberman is seeking deals in the world’s fastest-growing economies for companies including defense contractor Elbit Systems Ltd. (ESLT), irrigation equipment maker Netafim Ltd. and billionaire Idan Ofer’s Israel Chemicals Ltd. (ICL) Ofer was in Ethiopia last month to inspect his latest investment in a $642 million potash mining project. The company is looking to turn around the worst stock return this year on the Tel Aviv benchmark stock index.

Israeli companies and politicians are “sensitive to the issue of isolation,” said Terence Klingman, head of research at Psagot Investment House Ltd. in Tel Aviv. There’s a push to spread the export base to “countries that are more agnostic about the state of Israeli-Palestinian relations,” he said.

International funds that manage more than $1 trillion have divested from Israeli companies as Palestinians have turned to economic sanctions in their campaign to end Israel’s 47-year-old occupation of the West Bank. About 350,000 Israelis live in settlements there amid 2.3 million Palestinians.

Norway’s $880 billion sovereign wealth fund, the world’s biggest, excluded Africa-Israel Investments Ltd. from its portfolio because the Tel Aviv-based company has construction and real estate activities in Jewish West Bank settlements. PGGM, the Dutch asset manager with $200 billion, rebuffed Bank Hapoalim Ltd. (POLI) and other Israeli lenders last year. U.S. Secretary of State John Kerry said Israel risked “being an apartheid state” in comments he later apologized for.

Non-Traditional Partners

Attempts to “boycott, divest and sanction Israel” are driving business from traditional trading partners in the U.S. and Europe toward Africa, Asia and Latin America, Prime Minister Benjamin Netanyahu said at the annual Washington conference in March of the America-Israel Public Affairs Committee.

Tel Aviv-based Israel Chemicals was among the companies targeted by the Israel Divestment Campaign in an effort to get the California Public Employees’ Retirement System to sell off its shares in 2010. The campaign failed. Israel Chemicals, which harvests minerals from the Dead Sea, declined to comment on the sanctions campaign.

The company said it will seek more international ventures and may reduce domestic operations when it bought a $23 million stake in Ethiopia’s Danakhil mine being developed by Toronto-based Allana Potash Corp. (AAA) Last year, Potash Corp. (POT:US) of Saskatchewan suspended a proposed takeover of Israel Chemicals opposed by Finance Minister Yair Lapid.

Worst Performer

Israel Chemicals shares have tumbled 26 percent in the past 12 months, the worst among 25 stocks on the Tel Aviv index. They were down 0.2 percent at 29.50 shekels at 12:24 p.m. in Tel Aviv. The stock has been hurt by falling potash prices and the government’s review of its royalties policy. A state panel on May 18 recommended a new windfall tax of 42 percent on all quarried materials.

Ofer, worth an estimated $5.4 billion by the Bloomberg Billionaires Index, isn’t the first wealthy Israeli to invest in Africa. Dan Gertler, whose fortune is estimated at $2.5 billion, owns stakes in copper, iron, manganese and cobalt mines in the Democratic Republic of Congo, complementing his diamond trading business. Beny Steinmetz, whose wealth is estimated at $4.1 billion, is the target of a corruption investigation into his iron-mining activities in Guinea. He has denied wrongdoing.

Exports Quadruple

Israel’s sub-Saharan exports amounted to $1.4 billion last year, almost four times the total of $374 million in 2003, said Shauli Katznelson, who directs the economic division at the Israel Institute for Export and International Cooperation in Tel Aviv.

While the World Bank has cut its growth estimate for sub-Saharan Africa this year to 4.7 percent from 5.3 percent, and for 2015 to 5.1 percent from 5.4 percent, Katznelson sees good prospects for Israeli businesses. Of the region’s 52 countries, Nigeria, Angola, Kenya, Tanzania, Ghana and Ethiopia are likely to be most fruitful, he said.

“When you look at the map, you see growth in the sub-Saharan countries that is even greater than in Asia and that offers a great deal of opportunity for Israeli companies,” Katznelson said.

To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net Amy Teibel, Gwen Ackerman

Sourced here:   http://www.businessweek.com/news/2014-06-16/trillion-dollar-rebuff-spurs-african-road-trip-israel-markets

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Geology and Mineral Information Systems Experts to meet in Addis Ababa

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 Experts working in the area of African geology and mineral information Systems will assemble in Addis Ababa, Ethiopia from July 8-10. The meeting will take place amidst a growing consensus among experts that there is a lack of geological map coverage at appropriate scales across many African countries. In addition, there is a generally limited capacity currently available to fill these gaps through for example, field mapping, geophysical data acquisition and processing, and spatial data management among others.
According to the African Minerals Development Centre (AMDC), the lack of minerals resource potential information is cited as putting African countries at a disadvantage when developing policies as well as negotiating contracts under the relevant legislation, and the lack of data also reduces the levels of investment in minerals exploration and mining activities including related upstream and downstream economic activities. Furthermore minerals are essential for development not only in terms of beneficiation, the generation of foreign currency or foreign direct investment but also to provide building and construction materials in support of infrastructure investments, as inputs for manufacturing, and for agriculture e.g. agro-minerals and as inputs to fertiliser production.  In addition, there are gems and semi-precious stone that also provide opportunities for income supplements, livelihoods, new industries and the creation of skilled labour.
The meeting will discuss mineral resource classifications, the role of Public Private Partnerships (PPPs) in leveraging resources for filling geology and minerals information gaps and the role of geology and minerals information in areas raised by the AMV, such as defining mineral exploration blocks for auction as well as leasing or tenure.
Beyond these issues, there is a need to define the principles and practices that inform the management of geology and minerals information and international interventions supporting the collection, management and dissemination of these data.
Not to editors: In 2009, African heads of state adopted the African Mining Vision (AMV) which identified the level and quality of resource potential data as a critical constraint and factor for the success of realising the vision.  In December 2011 the Action Plan for Implementing the AMV was adopted by the Second African Union Conference of Ministers Responsible for Mineral Resources Development.  The Plan set out actions that would build a sustainable future for Africa’s extractive industry.  This included actions in the area of geological and mining information systems with the goal of developing a comprehensive knowledge of Africa’s mineral endowment.

http://www.uneca.org/media-centre/stories/geology-and-mineral-information-systems-experts-meet-addis-ababa#.U6L6Io1OW70

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Ethiopia Secured U.S $ 100 Million Loan

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Ethiopian government secured a U.S $ 100 Million promised loan from the Korean Export Import (EXIM) Bank. The loan is extended for financing part of the Modjo-Hawassa highway project.

The loan agreement was signed earlier and it was on Monday, June 9, 2014 the agreement was
given a green light from the House of Peoples’ Representative through a ratification bill.

Modjo-Hawassa highway is a 218 Kilometers road and it is going to be constructed in two
phases. The first phase will cover a total distance of 93 Kilometers and stretches from
Modjo to Ziway. This phase is also divided in to two lots.

From the total cost of the construction, which is U.S $ 350 Million, U.S $ 128.5 Million is already secured as loan from the African Development Bank for the construction of the first lot.

The loan obtained from the Korean EXIM Bank is going to be used for the second lot that stretches 37 Kilometers. This lot is going to extend from Meki to Ziway.

The loan from the Korean EXIM Bank will be paid in 40 years with a period of grace for 15 years.

http://www.2merkato.com/news/alerts/3050-ethiopia-secured-us-100-million-loan

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Major Italian Companies Take Part in Specialized International Trade Exhibition

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2238:major-italian-companies-take-part-in-specialized-international-trade-exhibition&Itemid=260

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Ethiopia Wants to Work with Israel to Fight Terrorism: Hailemariam

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2231:ethiopia-wants-to-work-with-israel-to-fight-terrorism-hailemariam&Itemid=260

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Ethiopia Keen to Learn from Israel’s Best Practices in Agriculture: President

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

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

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Ethiopian Airlines and Agence Française de Développement sign €50 million loan agreement

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Ethiopian Airlines and the Agence Française de Développement (AFD) signed a loan agreement of 50 million euros on June 20, 2014 at the Ethiopian Airlines Headquarters. The agreement is aimed at financing the construction of the new state-of-the art cargo terminal.

Chief Executive Officer of Ethiopian Airlines, Tewolde Gebremariam, and Mr. Christian YOKA, AFD Regional Director signed the agreement at Ethiopian Headquarters on 20 June 2014 in the presence of H.E. Ms. Brigitte Collet, French Ambassador to Ethiopia.

“Infrastructure development is one of the four pillars of our fast, profitable and sustainable growth strategic roadmap, Vision 2025. This loan from AFD will enable us to build our new cargo terminal, which is being constructed in 2 phases, and when completed will have 1.2 million tons annual capacity, making it one of the largest in the world. The new cargo terminal is part of our Ethiopian Cargo Vision 2025, which aims first and foremost to support our country’s fast growing export of perishables such as flowers, fruits, vegetables and meat. As part of our Ethiopian Cargo Vision 2025, we plan to operate 18 dedicated freighters serving 37 international cargo destinations by 2025.
I wish to thank our longtime partner AFD, the French Government, and the French Embassy in Addis Ababa for their continued support. Our Academy expansion is also being undertaken thanks to the financial support of AFD. We look forward working for a successful and continued partnership with AFD”, said Mr. Tewolde G. Mariam, Chief Executive Officer of Ethiopian.

“This credit agreement is the second of its kind after the one signed for the expansion and upgrading of Ethiopian Airlines multinational aviation training center which is nearly completed partially in operation. The new agreement shows our commitment to further support Ethiopian in its growth plan,” said Mr. Christian YOKA, AFD Regional Director for Ethiopia, Sudan, South Sudan, Somalia and Eritrea.
Ethiopian Cargo currently has dedicated freighter services to 26 cargo destinations in Africa, the Gulf, Middle East, Asia and Europe, using 6 dedicated cargo freighters including B777-200Fs. Ethiopian Cargo is an award winning cargo service provider and is ranked 43rd by revenue out of the top 50 global cargo operators.

http://world.einnews.com/article/210362129/Zvi7fL52S08ZKnKg

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Nation Keeps Inflation Rate at Single Digit

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The government of Ethiopia has managed to keep the general inflation rate at single digit for the last 15 months, the Central Statistics Agency said.

The inflation rate was recorded at 8.70 percent in May 2014, a 0.4 percent decrease from the previous month, Household Research and Price Statistics Director at the Agency, Alemayehu Teferi told ENA.

Inflation Rate in Ethiopia averaged 19.69 percent from 2006 until 2014, reaching an all time high of 64.20 percent in July of 2008 and a record low of -4.10 percent in September of 2009.

Inflation rate dropped to single digit since March 2013. This demonstrates that efforts exerted to keep the inflation rate at single digit during the growth and transformation plan period is successful, he said.

The drop in the inflation rate is a result of various measures taken by the government to stabilize the market, he added.

Various measures including subsidizing some products such as wheat and edible oil, and removed taxes on flour and grains, price freeze and adopting contractionary monetary policy were taken by the government to address the challenge.

Food inflation dropped to 6.3 percent, showing a 1.7 percent drop from the previous month, while non-food items inflation raise to 11.4 percent from a 10.3 percent in April.

The drop in food inflation contributed for the drop in the general inflation rate. The inflation rate increase in non-food items doesn’t much affect the general inflation because of low contribution, the Director added.

It is expected that the inflation in the coming two months is expected to show a slight increase because of the possible shortage of food items following the main rainy season, he explained. But the inflation will return to the current level starting from September.

Demand increase and shortage of supply, creating artificial shortage by hiding items and increasing amount of increase in money supply are the main factors in Ethiopia for rise in inflation.

It will be fine for better performance of the economy and the society if inflation rate be able to keep at this level, he said.

The Director suggested that government agencies should prioritize to make sure that demand and supply are going parallel rather than focus on only monetary control.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2246:nation-keeps-inflation-rate-at-single-digit&Itemid=260

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House passes new investment proclamation

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The House of People’s Representative today (June 20) passed a new legislation on investment. The new proclamation amended the name of the Ethiopian Investment Agency to be named as Ethiopian Investment Commission. The new proclamation has also introduced changes in the organization, duties and responsibilities of the Commission .Accordingly, the proclamation envisages the establishment of a new Investment Board headed by Prime Minister Hailemariam Desalegn. The Investment Board will have the authority of controlling and administering industrial zones. The new proclamation also introduced changes in areas of investment open for domestic investors and in the administration of industrial zones. Berhanu Mekuye , Chair of the Industry Affairs Standing Committee said that the promulgation of the new law will have an important impact in enabling to fully benefit from Ethiopia’s growing investment attraction. The establishment of the Board that will be chaired by the Prime Minister is said to have an important role in addressing policy issues from local and foreign investors in a swift manner.

http://www.mfa.gov.et/news/more.php?newsid=3249

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Ethiopia and Canada Keen to Strengthen Ties

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During the 4th Ethio-Canada Bilateral Consultation officials of Ethiopia and Canada affirmed they will strengthen ties in the areas of trade and investment and also cement former deals.

According to the Foreign Minister American Affairs Director, Taye Aske Sellasie, Canada is the third top development partners of Ethiopia and it has been assisting Ethiopia in various development initiatives which are in line with the Growth and Transformation Plan (GTP) as well as the Millennium Development Goals(MDGs).

Taye further noted the Consultation was aimed at looking the gaps and major achievements secured by Ethiopia with regard to the eight MDGs it is working on by the bilateral assistance it gets from Canada.

Taye also marked representatives of the two countries will discuss ways on how to enhance trade and investment.

The Canadian Ambassador to Ethiopia, David Usher, on his part noted Canada has been providing support to Ethiopia on different sectors. He also appreciated achievements made by Ethiopia.

Usher further noted Ethiopian Airlines’ flight to Canada three times a week is the best opportunity to cement and investment relation of the two countries.

As per the delegates of Canada, they aspire to increase Canadians participation in the mining sector. In addition to this, they expressed their interest in empowering women in the sector via training. Currently, as the data from the Ministry of Mines indicate, there are 11 Canadian licensed investors in Ethiopia participating in the mineral and petroleum exploration.

In relation to trade relation the balance of trade the two countries is in favor of Canada even if there is some improvement.

http://www.2merkato.com/news/alerts/3058-ethiopia-and-canada-keen-to-strengthen-ties

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Also see:  http://www.theglobeandmail.com/globe-debate/read-and-vote-does-harper-have-a-sensible-foreign-policy/article19215855/

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Ethio-German Economic Relations Growing, Says Ambassador Cyrus

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The economic relationship of Ethiopia and Germany has registered growth, according to Germany’s Ambassador to Ethiopia.

Ambassador Lieselore Cyrus said the relationship of the two countries with respect to investment would further be consolidated.

The Ambassador appreciated the development activities she saw during her four years stay in Ethiopia and promised to work for the further strengthening of the relationship of the two countries.

President Mulatu Teshome held talks with the departing German ambassador on Friday June 20 at the National Palace.

During the occasion, he appreciated the ambassador for her efforts in further improving the strategic relationship of Germany and Ethiopia.

He said there is strong desire on the part of the two countries to further strengthen bilateral relations.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2250:ethio-german-economic-relations-growing-says-ambassador-cyrus&Itemid=260

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Uganda, Ethiopia to remain leaders in East African coffee sector

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Uganda and Ethiopia will remain the pre-eminent coffee exporters in East Africa over the next decade, according to foodanddrinkinsight.

We highlight Tanzania as the country best-placed for coffee production growth in the region, though government initiatives will boost production across the region.

Aside from Ethiopia, East African coffee producers have seen either stagnation or outright declines over the last 20 years.

Production in Uganda and Kenya peaked in the late 1990s, while output in Tanzania failed to sustain a level above 1mn bags for at least two consecutive years.

In contrast, Ethiopia has significantly increased production since the early 2000s, raising output by more than 125% between 2000/01 and 2012/13 to 6.3mn bags.

Ethiopia and Kenya produce arabica coffee almost exclusively, while Uganda predominantly focuses on robusta production. Tanzania farms both crops.

Though East Africa is one of the world’s largest producers of arabica coffee beans, with total production of around 17mn bags, it remains well behind Brazil, which produces between 35mn and 40mn bags in any given year.

The main reason behind the recent stagnation in Ugandan, Kenyan and Tanzanian coffee production is falling or stagnant yields. Both Kenya and Tanzania have suffered from declining yields while area harvested has remained largely static.

Uganda, on the other hand, has seen volatility in its yields, which have averaged around the 6,500 hectogram per hectare (hg/ha) level for the last 50 years.
Tellingly, Ethiopia has also seen yields fall over the last 20 years and has only boosted output by devoting a significantly greater area to coffee production.

http://www.waltainfo.com/index.php/explore/13862-uganda-ethiopia-to-remain-leaders-in-east-african-coffee-sector-july-2014

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Int’l Agriculture Promoting Exhibition Opens

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A five-day Specialized International Exhibition in Agriculture and Food (AGRIFEX) opened here on Thursday June 19, 2014 at the Addis Ababa Exhibition Centre.

During the opening of the exhibition, State Minister of Agriculture Dr. Gebregziabher Gebreyohannes said the aim of such kinds of exhibitions is to create opportunity for investors who engage in the agro-processing with a view to connecting manufacturers with beneficiaries in a short period.

The Government of Ethiopia encourages the private sector to engage in agro-processing which boosts the economic growth of the country as agriculture is the backbone of economy.
Meanwhile, Fabio Santoni, delegation leader of the eight Italian companies which took part in the exhibition, told Ethiopian News Agency that Italian companies are ready to transfer their knowledge in agro-business to Ethiopians in order to help rural development.
He said the aim of the exhibition is not to sell equipment but assist in technology transfer, training and management capacity so as to enable Ethiopian agro-business enterprises become competitive in the global export market.
A total of 76 companies, including 36 foreign agro-business companies from India, Namibia, Egypt and Sudan, are taking part in the 7th Specialized International Exhibition in Agriculture and Food Exhibition organized by the Addis Ababa Chambers of Commerce and Sectoral Associations.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2245:intl-agriculture-promoting-exhibition-opens&Itemid=260

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Ethiopia and Israel to Strengthen Ties

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Ethiopia and Israel agreed to further strengthen their ties through economic, social and security cooperation.

After holding talk with the Israeli Foreign Minister, Ethiopia’s Foreign Minister, Dr. Tedros Adhanom, told journalists the visit of Avigdor Liberman, Israel’s Foreign Minister, with 50 business tycoons will open a new chapter in the bilateral economic cooperation of the two countries.

Tedros furthered during the discussion he learned Israeli investors are keen to invest in Ethiopia. He added, as a means to further streghten the two countries relation, they have discussed to open Ethiopian Jewish Community Heritage Museum in Gonder and Shire.

In addition to these, Tedros disclosed he has also discussed with his Israeli counterpart on security issues at national and regional levels to fight terrorism.

Liberman on his part noted the two nations will further work on economic, social and security issues. He furthered Israeli business tycoons are keen to invest in Ethiopia and use the conducive investment climate.

According to Liberman the business delegation from the Israel Export Institute are keen to identify investment and business opportunity in Ethiopia and establish mutually beneficial business relationship.

The business delegates also had business to business summit with their Ethiopian counterparts and discussed areas of investment where they can create joint ventures.

Ethiopian Chamber of Commerce and Sectoral Associations President, Solomon Afework, revealed the Israeli business delegates are involved in agriculture and water technology; energy and mining; life science; information technology; mining industries; homeland security; infrastructure industries; consultancy and aviation.

http://www.2merkato.com/news/alerts/3054-ethiopia-and-israel-to-strengthen-ties

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Over 100 SMEs participating at Omo Kuraz sugar project

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Some 108 small and micros enterprises (SMEs) with a total of 1,100 members are taking part at the Omo Kuraz sugar development project, public mobilization office of the project said.

Omo Kuraz sugar development project is being implemented in the Southern Nations, Nationalities and Peoples (SNNP) Regional State by Sugar Corporation.

The project comprises the construction of five sugar factories, sugar cane plantations, housing units, and roads.

Some 108 small and micros enterprises consisting of 1,100 members are participating at the project, small and micro enterprises jobs creation team leader at the office, Tesfaye Jemu, told WIC.

Construction, manufacturing and service sectors are the areas where members of the enterprises are currently engaged in, he said.

As a result of the launch of the project, each enterprise managed to save up to 500,000 birr.

Sugar Corporation is working in partnership with the (SNNP) Regional State to build the capacity and increase the participation of the enterprise in the project.

According to Tesfaye, residents around the project site are getting safe drinking water, electricity and road facilities, which were not present in the past.

http://www.waltainfo.com/index.php/editors-pick/13845-over-100-smes-participating-at-omo-kuraz-sugar-project

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Ethiopia and Djibouti Committed to Strengthen Ties

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During a bilateral talk between Ethiopia and Djibouti on Thursday, June 19, 2014, representatives of the countries have announced they are committed boost their bilateral relations. The bilateral relation is said to enhance the socio- economic benefits the peoples of both countries will get.

Solomon Abebe, Foreign Ministry African Affairs Director General, said the relation of the two countries is remarkable and also noted there is an increase in people to people integration.

Commenting on the meeting Solomon said, it was aimed at evaluating the implementation of goals and strategic plans adopted by the 12th Joint Ministerial meeting held in Addis Ababa.

According to the Director General the two nations have reached on a consensus to outline action plans in order to address common problems in the areas of security, education and health.

Djibouti’s Director for Bilateral Relation, Yachin Houssein, on his part appreciated the two countries relationship to be strong in every aspect but noted they should work on exchanging information on epidemic and addressing human trafficking.

Houssein furthered the two countries have tight bilateral relations in economic integration, political and social levels. He added this is expected to be further strengthened.

Commenting on the meeting Houssein said, the meeting will lay down major strategic guideline for the 13th Joint Ministerial meeting.

http://www.2merkato.com/news/alerts/3056-ethiopia-and-djibouti-committed-to-strengthen-ties

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Heineken to Open New Brewery in Ethiopia

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Africa One of World’s Fastest-Growing Beer Markets

By Bart Koster

AMSTERDAM— Heineken HEINY -0.14% Heineken N.V. ADS U.S.: OTC ^$35.90 -0.05 -0.14% June 20, 2014 11:28 am Volume (Delayed 15m) : 16,019 P/E Ratio 22.77 Market Cap $41.51 Billion Dividend Yield 2.04% Rev. per Employee $315,612 06/20/14 Heineken’s Ethiopia Plans High… 06/20/14 Heineken to Open New Brewery i… 05/11/14 What Is the Outlook for Twitte… More quote details and news » HEINY in Your Value Your Change Short position NV will next month open a new brewery in Addis Ababa, Ethiopia, in what is the Dutch brewer’s latest push to expand in Africa, one of the world’s fastest-growing beer markets.

The brewery in Kilinto, on the outskirts of Addis Ababa, will be Heineken’s third plant in the East African country and will have an annual capacity of 1.5 million hectoliters.

The facility, which will produce local brands such as Bedele and Harar and possibly Heineken’s premium lager beer in the future, is meant to bolster the brewer’s footprint in the Ethiopian capital, said Siep Hiemstra, the president of Heineken’s operations in Africa and the Middle East, in an interview.

“We couldn’t serve the Addis Ababa region from our existing two breweries,” he said. “So this will strengthen our position in the country.”

Heineken’s expansion in Ethiopia, Africa’s second-most populous country, highlights the growing importance of the continent for the world’s top brewers.

Africa is one of the world’s fastest-growing beer markets thanks to its rosy economic prospects and emerging middle class. This has made the region a battleground for global brewers like Heineken, SABMiller SAB.LN +0.18% SABMiller PLC U.K.: London ^GBp3401.00 +6.00 +0.18% June 20, 2014 4:29 pm Volume : 4.06M P/E Ratio 0.26 Market Cap GBp54.56 Billion Dividend Yield 2.80% Rev. per Employee GBp199,383 06/10/14 Here Are Brewers’ Dream World … 05/22/14 Treasury Wine Rejects KKR Offe… 05/22/14 Africa, Latin America Pep Up S… More quote details and news » SAB.LN in Your Value Your Change Short position PLC and Diageo DGE.LN +0.05% Diageo PLC U.K.: London ^GBp1854.00 +1.00 +0.05% June 20, 2014 4:29 pm Volume : 3.00M P/E Ratio 0.18 Market Cap GBp46.54 Billion Dividend Yield 2.13% Rev. per Employee GBp398,662 06/20/14 Heineken to Open New Brewery i… 06/08/14 His Nose Is the Most Valuable … 06/04/14 Diageo Turns to the Web in Chi… More quote details and news » DGE.LN in Your Value Your Change Short position PLC, as they seek to counter a slowdown in mature markets in Europe and North America.

“Competition is intensifying and that sharpens the game,” Mr. Hiemstra said, referring to Heineken’s main competitors.

Heineken traditionally has a strong position in Africa, having opened its first brewery in Congo in 1923. The Dutch brewer currently has leading market positions in more than a dozen African countries, including Nigeria, its second-largest market after Mexico. It employs around 15,000 people in Africa.

In 2013, Heineken reported revenue of €3.07 billion ($4.18 billion) in the Africa and the Middle East region, which led to an operating profit of €665 million ($905 million), about 21% of the group total.

“Margins in this region are 1.5 times higher than the Heineken average,” Mr. Hiemstra said.

Mr. Hiemstra said Heineken is looking to further capitalize on Africa’s growth prospects through acquisitions and joint ventures. The primary focus, however, is to grow organically, for example, by building new breweries like the one in Addis Ababa, he added.

Mr. Hiemstra, a Heineken veteran who joined the brewer in 1978, said Heineken aims to use as much local resources in Africa as possible. By 2020, the company targets that 60% of the raw materials used to produce beer, like barley and cassava, will be sourced from local farmers. In 2013, the company used 48% from local sourcing.

“Through investments in local workers and local resources we create goodwill with national and regional authorities,” Mr. Hiemstra said. “It shows that we’re not only here to make profits, but that we also want to improve the local economy and social conditions.”

http://online.wsj.com/articles/heineken-to-open-new-brewery-in-ethiopia-1403276971?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702303850204579636232302826254.html

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Public Enterprises and Labour Associations Signed Agreement

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Government public enterprises signed an agreement with their respective labour associations a deal to implement Industrial Development Strategy (IDS) on Thursday, June 19, 2014.

During the occasion Dr. Zerihun Kebede, State Minister, noted the implementing IDS is not beneficial only for employers and the employees yet to the government too.

Zerihun added “The common and individual interest of the major actors (government, employers and employees) are the springboard of cooperation and conflict. Understanding the interests of the three parties is of paramount importance in the process of ensuring industrial peace. Thus their needs have to be treated separately”.

In related news the Ministry of Labour and Social Affairs reminded dialogue plays a pivotal role in boosting productivity of organizations and cultivating positive relations among employers and workers. Commenting on this the State Minister said social dialogue is a scientific method being used in the developed world to settle disagreement between employers and workers.

Zerihun also said in order to have uninterrupted production, minimize industrial dispute and boost workers moral one needs to ensure harmonious industrial relations. Commenting on this he said dialogue is a better way to achieve harmonious relations than rules and regulations.

Fekadu Gebru, an official from the Ministry, made a presentation in which he affirmed the stance of the State Minister. By his presentation entitled, Social Dialogue as a Toll for Industrial Peace, he said social dialogue is the key to creating conducive working environment that accommodates the interest of both employers and workers.

Fekadu added in order to achieve industrial peace there needs to be a reconcile in the needs of the employers and workers, better productivity and better payment respectively.

George Okutho, Country Office Director for Ethiopia and Somalia ILO, also said improving workplace cooperation between employers and workers for the primary objectives of achieving higher productivity and competitiveness should be collective objective for this year and years to come.

Okutho further noted his organization will continue to help Ethiopia in it’s capacity building needs. Nonetheless, he continued, progressively there should be a shift from ad hoc actions.

http://www.2merkato.com/news/alerts/3057-ethiopia-public-enterprises-and-their-labour-associations-signed-agreement

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The results from an extra drill hole show strong gold mineralisation at Tulu Kapi, with best results of 12m at 4.23 gross tonnage.

The group has completed field work and classified 90% of the minerals as reportable resources and reserves.

Managing Director Jeff Rayner said Kefi could now update resources, reserves and mine planning to re-activate its mining licence application by the end of 2014 and start construction in 2015.

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Four things you should know about agriculture and food in Africa

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BY Kate Douglas | 20 June 2014

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The World Bank estimates that Africa holds 60% of the world’s uncultivated arable land. Coupled with a youthful workforce and water resources, the potential for agribusiness in Africa cannot be ignored.

This week, the 24th annual International Food and Agribusiness Management Association (IFAMA) World Forum and Symposium, held in Cape Town, explored the opportunity for increased crop and food production on the continent, as well as some of the obstacles that need to be overcome.

How we made it in Africa looks at some of the key points raised at the event.

1. An investment of US$55bn needed in agriculture

“Africa exports US$45bn worth of agriculture produce. Unfortunately it imports $81bn worth of agriculture produce,” said MD Ramesh, Olam International’s president and regional head for southern and east Africa.

He noted that 70% of Africa’s population relies on agriculture for their income, and that a considerable portion lives in poverty, with little or no support to help increase productivity. In order to feed Africa and the world, significant investment will be required to meet Africa’s agricultural potential.

“Our calculations say it will take about $55bn worth of investments in the agricultural sector in Africa to transform agriculture on the continent,” explained Ramesh.

2. Informal markets dominate

Some 90% of all food in Africa (excluding South Africa) is purchased through informal markets, according to David Tschirley, professor at Michigan State University’s Department of Agriculture, Food and Resource Economics.

While there is an increasing demand for formal retail shopping and processed food, driven by rising incomes, Tschirley said that informal food markets will not become obsolete in the next 10-30 years. Nevertheless, his projections suggest that informal trade will decrease from 90% to around 65%.

Tschirley noted that traditional retailers will have to modernise their services alongside consumers’ demand for better quality products.

“So we need transformation not just in the modern sector, but also in this traditional sector… there needs to be a whole food system supply chain transformation.”

3. Technology can leapfrog infrastructure deficit

Lack of access to finance and market related information is a major limitation that small-scale farmers face in rural Africa. However, mobile penetration and innovations in mobile money technology can help reduce these challenges.

Thad Simons, IFAMA’s board president and senior executive advisor for Novus International, said mobile phones can assist the agricultural supply chain.

“In Kenya [Novus International] actually communicates with all of our poultry farmers – of all different sizes, across the country – through text messaging. The SMS system allows us to provide information to them on things like price of eggs and meat in Nairobi. But more than that, if [farmers] asked a question with regard to their productivity, if they started to see a problem with their flock, we can address those. It’s a way of delivering a service without necessarily going to the remote location where the farmer is,” Simons explained.

4. Majority of arable land situated in only a few countries

According to Milu Muyanga, assistant professor at Michigan State University’s Department of Agriculture, Food and Resource Economics, most of sub-Saharan Africa’s arable land lies in just a handful of countries.

“Most of these countries are fragile states… we are talking about DRC, Republic of Congo, Cameroon, Mozambique, and Zambia.”

While these countries hold the greatest potential for crop land expansion, Muyanga noted that much of this arable land is inaccessible due to poor infrastructure.

http://www.howwemadeitinafrica.com/four-things-you-should-know-about-agriculture-and-food-in-africa/40675/

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Dr Maximilian Martin, exclusive for Addis Standard

Ethiopia is part of a new set of high-opportunity countries with exceptional potential for modernization, the “EMICs” (Ethiopia, Myanmar, Iran, and Colombia). All are high-stakes countries with a history of expansion and empire, conflict, a considerable proportion of young and educated job seekers, high potential for growth and turnaround, strong foreign direct investment (FDI) and trade promotion strategies, and broad regional importance.Ethiopia’s success in modernization could have far-reaching positive geostrategic implications and further synergistic effects with development efforts in the Horn of Africa, and impact investors can contribute to make this preferred future happen.

With double-digit growth between 2004 and 2010, averaging 8.7 percent annually over the past five years mainly thanks to the expansion of agriculture and services, Ethiopia has recorded impressive economic growth rates and emerged as the “African Tiger.”Given the country’s geostrategic importance, its largely untapped reserves of coal, gold, oil, and gas, inherent richness in renewable resources, immense potential for agricultural production, a 93-million population with a young labor force, Ethiopia’s ambition to become a middle-income economy by 2025 is in principle achievable.

The country is thus pursuing an ambitious Growth and Transformation Plan that has the purpose of poverty eradication, and has started laying the corresponding building blocks, in particular the physical and institutional infrastructure to transform the economy and address the low levels of human development. This is also needed: Ethiopia’s ranking in the World Banks’ Trade Logistics Index has slipped from 104^th in 2007 to 141^st in 2012; 67 percent of the population lacks access to electricity; 61 percent of the population is illiterate and 37 percent undernourished, reducing the workforce by 8 percent.

Most of the economic growth of the country in the past decade has been driven by ‘big push’ public investment though, and the current opportunity for modernization can only be seized if the private sector and capital markets are developed in ways that manage to attract capital and drive wider positive impact for the country.

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Transitioning from public to private funding is needed in other parts of the world as well

While the specifics differ, Ethiopia is not alone in facing the challenge how to best fund and graduate from public investment. In several G7 countries, for example, a study by Accenture and Oxford Economics projected a public services expenditure gap between expected demand for services and the ability to pay through the year 2025. The results were startling: for Canada, the gap was USD 90 billion; France, USD 100 billion; Germany, USD 80 billion; Italy, USD 30 billion; the UK, USD 170 billion; and the US, USD 940 billion. Private capital will be critical to addressing this emerging gap, and at the level of the G7, active steps are being taken to engage capital intentionally investing for both social impact and financial return.

The amounts are smaller, but capital is needed to deliver on the country’s middle-income ambitions in Ethiopia as well. One of sub-Saharan Africa’s fastest growing non-petroleum based economies over the past decade the country has one of the world’s lowest rates of GDP growth to foreign direct investment (FDI). FDI inflows to Ethiopia have kept steadily increasing, responding to long-term growth opportunities in sectors such as agriculture, infrastructure, consumer goods, manufacturing, or oil and gas.Between 2005 and 2011, FDI in Ethiopia more than doubled to USD 1.2 billion, mostly originating in India, China, Europe, the Middle East and the US, including the Ethiopian diaspora.

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Does it make sense to welcome impact investment?

For the G7, the so-called market for social impact investments—defined as investments made with the intention to generate measurable social and environmental impact alongside a financial return—holds great promise as a tool to grow the economy and fund the provision of public goods. The practice of impact investing has grown into a USD 42 billion market since the inception of the foundational term “impact investment” in 2007—of which 70 percent are currently invested in emerging markets. The market is estimated to advance to USD 400-1000 billion by 2020. At a time when the reputation of mainstream finance has been called into question around the world in the aftermath of the global financial crisis, impact investing could provide a major opportunity to demonstrate a new role for finance and financial innovation to enable sustainable growth and the stewardship of society’s assets in the twenty-first century.

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The fundamental impact case is sound

For Ethiopia, the question is, how can impact investing help removing the roadblocks on the way to becoming a middle income country. In terms of fundamentals, the country offers exciting opportunities for impact investors to create economic as well as social value. Its economy still dominated by agriculture, the country is looking to diversify and will need to raise the added value on its main exports while at the same time improving the performance of its transport and logistics system, as well as finding a way to further modernize and expand the industrial sector.

To locate the capital needed to develop the country, Ethiopia has been generally creating a more investment friendly environment and is opening up some sectors for investors, including agriculture and horticulture and the textiles and garment industry. The fruit of several years of efforts, with increasing investments in to the industry, the garment and textile industry is now gradually emerging as a new source of growth. For example, Swedish multinational retail-clothing firm H&M and British retailer Tesco are opening sourcing offices. Recently, the India-based Shri Vallabh Pittie (SVP) Group has started setting up a USD 550 million spinning mill in Amhara and that could employ up to 13,000 Ethiopians, targeting exports to Germany, Italy, Sweden, Turkey and the United States.

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There is work ahead on improving the investment climate

Today, the overall Ethiopian investment climate is mainly limited by three bottlenecks: governmental restrictions, a fairly undeveloped banking sector and macroeconomic instability. As the World Bank and the International Monetary Fund (IMF) have recently commented on the role of the industry in Ethiopia, the country would need to adjust policies to expand the private sector in order to meet the goal of reaching middle-income status by 2025.Due to declining scores for investor protection, taxation, contract enforcement, and resolution of insolvency, the World Bank’s Doing Business report for 2013 ranked Ethiopia at 127 out of 185 countries. The process for receiving business licensing has been described as “labyrinthine” by the Economist and a potential bane for investors. While bureaucratic corruption is much less of an issue compared to many of Ethiopia’s neighbours in sub-Saharan Africa, and the regulatory system is generally fair, structural inefficiencies, state monopolies and oligopolistic wholesale sectors need to be tackled to raise foreign investment. As for the banking sector, liquidity issues have become apparent as debt sales are highly regulated and high levels of collateral are required on all loans, thus limiting access to capital for small and middle enterprises.

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Several pathways to driving impact could complement each other

At the G7 level, there is consensus that different groups of investors play a role in the emerging impact investing market, ranging from philanthropic investors such as foundations, angel and venture stage investors, private and institutional investors, financial services institutions, and—importantly—government, which can provide a guiding hand. Next to large-scale projects such as the two major hydro power investments, or capital intensive projects such as the development of a high speed train to facilitate import and export, impact investors with their longer-term investment outlook and desire to achieve both financial and social returns have the potential to play a benign role in the investment landscape. The realities of the small and medium enterprise and social business landscape in Ethiopia matter though. Besides Oliberté, which has recently opened its own ethically responsible textile and garment factory in Addis Ababa, there are still few examples of impact investments and track record is limited. Impact investors moreover need to come to terms with the perception that social enterprises present a trade-off between impact and financial sustainability.

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The endgame is inclusive growth

Next to agriculture—accounting for nearly 50 percent of GDP, 85 percent of employment and most of the export earnings—, helping ensure that social and environmental performance in the emerging textile and garment industry will aim higher than in sourcing hotspots such as Bangladesh will be a key theatre to assess real progress. As Ethiopia transitions from a largely public to a more private investment strategy, government can play an important role in enabling and stimulating the impact investment market. Just like in other markets, this can take many forms, including government co-investing or sharing risk with private investors, creating investor requirements for impact investing, or even making impact investments directly in enterprises or intermediary funds. In addition, government can leverage its own procedures and expenditures to drive market development, for example through internal procurement and investment policies, or by providing resources to encourage the development and investment readiness of the social enterprise sector. If we are serious about inclusive growth, we need to use all pathways—it’s now time to make impact investible in Ethiopia.

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Maximilian Martin, Ph.D. is the founder and global managing director of Impact Economy, an impact investment and strategy firm based in Lausanne, Switzerland, with overseas operations in North and South America out of New York and Buenos Aires, working with professional investors and companies. Impact Economy provided the report Status of the Social Impact Market: A Primer, which was prepared to provide a shared baseline for the participants of the inaugural 2013 G8 Social Impact Investment Forum and to anchor members’ work on new market-building efforts for social impact investing.

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Editor’s Note: Identified by Dr Martin, the EMICs were unveiled at the fourth edition of the Impact Economy Symposium & Retreat in Switzerland on June 13-15, 2014 where a group of key influencers, thought leaders, and practitioners from the worlds of investment, business, government, and philanthropy explored the most effective solutions, innovations, and opportunities that have surfaced in the promotion of impact.In this exclusive Addis Standard series, Impact Economy’s Dr Maximilian Martin covers content covered at the conference. Addis Standard is one of the seven global official media partners of the symposium.

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Sourced here:  http://addisstandard.com/making-impact-investible-key-to-removing-roadblocks-on-the-way-to-middle-income/

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Africa Bamboo center to be established in Ethiopia

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                                                                                                                         Sileshi Getahu

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- Bamboo resource in Benishangul Gumuz under threat

Ethiopia, home to 67 percent of the overall bamboo and rattan forest in Africa, is to become home to the continent’s first bamboo and rattan research and demonstration center with the aim of promoting the resource, its various value addition options and untapped economic value across Africa.

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ENAPHA to Establish a Medical Zone in Addis Ababa

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Addis Ababa, Ethiopia - Ethiopian North American Health Professionals Association (ENAHPA) will establish a medical zone in Addis Ababa, Ministry of Foreign Affairs disclosed.

Diaspora Engagement Affairs Directorate-General with the Ministry, Feisel Aliyi, told ENA that the planned medical zone will help Addis Ababa become center of medical tourism.

The Directorate-General said ENAHPA and Intergovernmental Authority on Development (IGAD) have signed agreement that will enable the medical zone to be East Africa’s center of excellence in cancer treatment and peoples of IGAD member states to benefit from the center.

He pointed out that cancer patients from East African countries, including Ethiopia, have been travelling to European countries and Bangkok to get better medical treatment expending huge cost. The establishment of the center will stop the travel and save hard currency, Feisel said, further noting that the centre will also provide advanced medical treatment that is not currently available in the Region.

According to the Director-General, the center will attract the attention of many African countries since it would be using advanced medical technology and highly qualified professionals.

The establishment of the center is exemplary to the Ethiopian Diaspora, and was fully supported by the government as it is in harmony with the Diaspora Policy.

ENAHPA has over 300 Ethiopian health professionals living in North America and Europe.

http://www.ethiosports.com/2014/06/21/enapha-to-establish-a-medical-zone-in-addis-ababa/

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Import mogul to turn manufacturer

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The sister company of AL-SAM Plc, Repi Soap and Detergent SC and Wilmar International Limited (Wilmar), a leading Singapore agribusiness group, have signed a joint investment agreement for the upgrading of an existing manufacturing facility of Repi, and the building of a new integrated manufacturing complex in the Sebeta town of the Oromia Regional State.

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Good governance, efficiency golden threads to speed up societal transformation

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Prime Minister Hailemariam noted that the promotion of good governance and efficiency were golden threads that would speed up the move towards the transformation of the society, lift over millions out of poverty and expedite national renewal and sustainable development.

Reiterating the significant contribution of civil servants as a staunch force in the advancement of development and transformation goals of the nation, he emphasized, the Government was wiling and committed to support Civil Servants so as to tackle their housing and transportation problems.

Speaking at the 8th annual Civil Service day on the 23 of June 2024, he announced that there would be salary increment for civil servants with the view to lessen their challenges.

in Addis Ababa in the presence of Prime Minister Hailemariam Desalegn, , high-level government officials from Federal and Regional governments as well as other officials from various government agencies.

The day was celebrated with the theme “We ensure rapid and sustainable development and good governance with an organized army of transforming civil servants.”During the celebration,

Coordinator of Good Governance Cluster with the Rank of Deputy Prime Minister and Minister of Civil Service, Aster Mamo, on her part said that the developmental activities of the country had shown notable progress in all fronts.

Coordinator of the Finance and Economic Cluster with a Rank of Deputy Prime Minister and Minister of Communications and Information Technology, Dr. Debretsion Gebre-Michael also noted that democracy, development and good governance were inextricable so that the major threat to the democratic developmental state was rent-seeking.

He underlined that the Government had been taking various measures and extending efforts to consolidate developmental politics as well as dislodge rent-seeking and its adverse consequences to the nation’s march towards a climate resilient green economy.

According to MoFA, in-depth discussions and deliberations had been made on the principles of good governance and developmental politics.

http://www.waltainfo.com/index.php/explore/13892-good-governance-efficiency-golden-threads-to-speed-up-societal-transformation-

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New mining rules will enforce transparency

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The Ministry of Mines will create a new law to force mining companies to become more transparent

The ministry recently became a candidate for Extractive Industries Transparency Initiative (EITI), a global coalition of governments, companies and civil society organizations working together to improve openness and accountable management of revenues from natural resources. Its goal is to mandatorily boost the transparency initiative for the companies.
Tolosa Shagi, Minister of Mines, said that the ministry is now working to table the new law for the parliament to ratification. For mining companies to join the sector they will have to abide by the new law.
“We have a plan to amend the mining proclamation as soon as possible, if a company does not wish to follow the  transparency initiative it means they have different values than us and we don’t want to deal with a company like that,” the minister said.
“Definitely the law will be ratified in the coming year,” he said.
He said that his ministry is also implementing the transparency initiative scheme on mining companies. “Currently, 35 international and local companies are included in this scheme,” he explained.
“We are now working to be a full member on the initiative that includes 44 countries. The inclusion under the initiative will benefit the country and the sector development, we are working hard to minimize the time before we become a full member at EITI and we hope to finish the process within a year,” he said.
Reputable companies that are free from corruption and illegal activities will be interested in investing in  the mining sector and the scheme will create trust between the developers, the public and as well the government. He said that the initiative will facilitate finance to enhance transparence, sustainable development and good governance in the sector.
Countries that joined the initiative have registered good change since they became a member of the EITI. According to the minister, at the current level Ethiopia has not suffered from the mining sector. “There are not that many companies involved in mining and most are in the exploration process but we have to prepare during the early stages to prevent illegal activity because the sector is now growing significantly,” Tolosa said.
EITI is an international organisation that has developed a standard assessing the levels of transparency around countries’ oil, gas and mineral resources. This standard is developed and overseen by a multi-stakeholder board, consisting of representatives from governments, extractive companies, civil society organisations, institutional investors and international organisations. The EITI Standard is implemented in 44 countries. It consists of a set of requirements that governments and companies have to adhere to in order to become recognized as ‘EITI Compliant’
EITI also assists in strengthening accountability and good governance, as well as promoting greater economic and political stability. This, in turn, can contribute to the prevention of conflict based around the oil, mining and gas sectors.
Experts said that Ethiopia’s membership in the EITI would help the country ensure transparency in the extractive industry.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4394:new-mining-rules-will-enforce-transparency-&catid=35:capital&Itemid=27

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Ethiopia attracts FDI amounting to 953 million USD in 2013

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Ethiopia has attracted an unprecedented sum of Foreign Direct Investment (FDI) amounting to 953 million USD in 2013, a United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2014 indicated.

According to the report launched globally today under the title ‘Investing in the Sustainable Development Goals’, Ethiopia’s industrial strategy is attracting Asian capital to develop its manufacturing base.

In 2013, the Chinese Huajian Group opened its first factory for shoe production and announced plans to establish a two billion USD hub for light manufacturing.

Earlier the year, a joint venture between UAE’s Julphar and a local company, Medtech, inaugurated its first pharmaceutical manufacturing facility in Africa in Addis Ababa.

The report indicated that Julphar’s investment in the construction of the plant is estimated at around 8.5 million USD.

It also cited the 4 billion USD geothermal project signed between Ethiopia and Reykjavik Geothermal, an Icelandic company in late 2013.

The deal contributed to a 10-year high record of announced green-field FDI from developed countries in 2013.

Continental outlook

FDI flow to Africa continued rising to reach 57 billion USD in 2013 registering a 4% growth compared to the previous year driven by international and regional market-seeking and infrastructure investment, the report said.
Ethiopia’s strong performance aided the Eastern Africa region to record a 15% increase in FDI flow amounting to 6.2 billion USD.
However, the trends in FDI flows vary by sub-regions with flows to North, West and Central Africa showing a decline of 15.5%, 14% and 18% respectively. FDI flow to Southern Africa almost doubled in 2013 jumping to 13.2 billion USD from 6.7 billion USD in 2012, according to the report.

The report also identified that developing economies are becoming less dependent on natural resources with a drop in the share of extractive industries. Consumer-oriented sectors such as services and infrastructure developments are beginning to drive FDI growth in Africa, the report noted.

http://www.waltainfo.com/index.php/explore/13889-ethiopia-attracts-fdi-amounting-to-953-million-usd-in-2013

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Ethiopia, Kenya Top in East Africa in FDI – UN

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Ethiopia and Kenya have become top in the East Africa Region in attracting Foreign Direct Investment (FDI) in 2013, said the United Nations World Investment Report 2014.

FDI growth in these two nations has helped the region’s FDI growth by 15 percent as a whole and generated 6.2billion USD, indicated in the report.

It is stated that the industrial strategy in Ethiopia, which especially creating enabling condition for Asian investors, has contributed for the FDI growth in the country.

Ethiopia, Myanmar, Mozambique, and Cambodia are mentioned in the report that they used FDI for building Climate Resilient Green Economy.

Compared to South Africa and Nigeria, top in the continent in attracting FDI,Ethiopia and Kenya need to work more on the sector.

FDI in developing nations has grown by 57 percents; and 778 billion USD invested here.

http://allafrica.com/stories/201406250155.html

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Ethiopia’s economic ties with other countries deepening: MoFA

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Ethiopia’s economic ties with other countries is deepening, according to the Ministry of Foreign Affairs (MoFA).
Spokesperson of MoFA, Ambassador Dina Mufti, cited the recent visit by Israeli business delegation led by Israel’s Deputy Prime Minister and Foreign Minister, Avigdor Liberman, as a case in point.
He also mentioned the fourth Ethiopia-Canada bilateral consultations and the Ethio-Djibouti ministerial meeting held in Addis Ababa last week as an example for the strong ties Ethiopia has created with different countries.
An Israeli business delegation, representing over 40 business firms have explored the investment potentials in Ethiopia, which according to him would play a key role in boosting the two countries’ economic relations.

The fourth Ethiopia-Canada bilateral consultations also identified new areas of cooperation for the coming year, he said.

The Ethio-Djibouti ministerial meeting held last week would also play its part to further consolidate the age long relations between both countries, Ambassador Dina said.

Regarding the Cooperative Framework Agreement (CFA), the Spokesperson said that the Cabinet of Tanzania has referred the treaty to the parliament for approval.

Rwanda, Ethiopia, Uganda, Tanzania, Burundi and Kenya signed the (CFA), he said. South Sudan is also expected to ink the deal soon.
Parliaments of Ethiopia and Rwanda have already approved the deal.

http://www.waltainfo.com/index.php/explore/13890-ethiopias-economic-ties-with-other-countries-deepening-mofa-

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Ethiopia, Djibouti Preparing Strategic Plan for Economic Integration

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Ethiopia and Djibouti are preparing a mutual strategic plan in a bid to build economic integration, Ethiopian Ambassador to Djibouti, Suleiman Dedefo said.

In an exclusive interview with ENA, the Ambassador said the strong trade relation and trust built between the countries is leading to economic integration.

Experts’ committee will be formed soon to monitor implementation of the strategic plan, he said.

Ambassador Suleiman further stated that the trade relation between the two countries is beyond competition; it is rather a complementary one that intends to ensure the mutual benefit of the peoples of the two nation.

The Ambassador noted that Djibouti has provided over one million USD to support construction of the Grand Ethiopian Renaissance Dam, a multibillion hydropower project being built to generate over 6,000mw power.

For his part, Djiboutian Ambassador to Ethiopia Mohammed Idriss Farah said Ethiopia is one of the strategic partners of Djibouti.

Because of the strengthened and growing people to people and economic ties, the two countries have reached the stage to enter into economic integration, he stated.

The Ethio-Djibouti railway network, electricity supply, road and other infrastructure developments to interconnect the two countries manifest the strong relation, he added.

He indicated that the two countries are closely working in fighting terrorism, contraband trade and other cross border crimes.

According to reports, Djibouti is one of the major destinations for Ethiopia’s export items. It has imported items valued at over 138 million USD from Ethiopia during the first half of the current budget year.

Cement, food items, agricultural and industrial products, vegetables and fruits, chat, livestock, bottled water and beverages are the major items which Djibouti primarily imports from Ethiopia.

Some 90 percent of Ethiopia’s export trade activities of are being carried out via the port of Djibouti.

http://allafrica.com/stories/201406241529.html

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New single window system to streamline international trade

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Plans are in the works to establish a new government office for controlling international trade using a single electronic window.
Federal offices who have a stake in international trade are drafting the new law that will establish a new office under the federal government to accelerate international trade by streamlining it and eliminating the current system of forcing investors to deal with several bureaucratic processes.
Late last year Beker Shale, Director General of the Ethiopian Revenues and Customs Authority (ERCA) and William Asiko, CEO of the International Climate Facility for Africa (ICF) inked a USD 7.3 million deal to establish an electronic Single Window (eSW) system for international trade.
Even though ERCA will spearhead the project, it will also include several ministries and federal offices that play a role in international trade such as the National Bank of Ethiopia.
Setting up the Single Window System will make international trade more efficient by reducing export, import and transit procedures and the time and costs of clearance document preparation. The system will help to make the country’s businesses more competitive, attractive to investment opportunities and stimulate economic development.
The new endeavor is receiving some financial support from the International Finance Corporation (IFC), a member of the World Bank Group.
The first draft has already been completed and now all the stakeholdersare meeting to revise the law establishing the new federal office.
The affiliated government offices for international trade (import/export) have signed a memorandum of understanding (MoU) to enable the eSW until the legal framework is endorsed to govern the system by a single entity.
Melsew Hailemariam, communication expert of the Ethiopian electronic single window service international trade project, told Capital that government offices including National Bank of Ethiopia, ERCA, Ministry of trade, Ministry of Industry, Ministry of Transport, Ministry of Agriculture, Investment Agency and Ethiopian Chamber of Commerce and Sectoral Associations are involved in the process.
According to Melsew, the MoU will support the implementation of the electronic single window service until the legal framework establishing the independent entity is endorsed by the parliament.
The MoU is part of process facilitating the implementation of the eSW project that is currently in the final stages. The communication expert stated that the project will be fully applied by the coming fiscal year. The MoU will be replaced after the formation of the new entity, which is also expected in the coming fiscal year.
A consultancy firm assigned by IFC is currently undertaking a study to identify the best way to form the entity and who will be responsible for running it.  For instance Kenya has recently formed a similar international trade controlling body called Kenya Trade Network Agency (KenTrade) that is directly responsible to the President. KenTrade is mandated to facilitate cross border trade and establish, manage and implement the National Electronic Single Window System.
eSW which will provide a single electronic point of access for traders to lodge all trade related information and discharge all regulatory obligations for import, export and transit clearance. Hopes are that the  eSW will lead to appreciable gains in productivity and competitiveness for the Ethiopian business community and the capacity of international economic integration of Ethiopia.
It is also expected that the eSW, by providing customs and all other government agencies involved in the clearance of goods with access to a shared data repository and modern information systems facilities, will increase the efficiency of their operations, especially in areas such as risk management, allowing them to focus on generating additional revenue and improved controls, through better targeting of risks leading to greater compliance and facilitation of trade.
The eSW is the second cooperation project between the two parties. Back in 2012, the ERCA and ICF implemented another project to modernize tax administration by creating an online filing system for large tax payers and establishing a call center at ERCA.
The Investment Climate Facility for Africa (ICF) is a donor funded, private sector focused development institution whose purpose is to enhance the economic prospects of African society by working with businesses and governments to improve the investment climate in respective African countries. ICF works with African governments to create a conducive legal, regulatory and administrative environment for businesses, both big and small, to invest, grow and create jobs.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4396:new-single-window-system-to-streamline-international-trade&catid=54:news&Itemid=27

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Work on Addis Ababa Airport Expansion Project Commences

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Consultancy bid results to be announced next week The Chinese construction firm, China Communications Construction Company (CCCC), last week commenced work on the Addis Ababa Bole International Airport expansion project.

A senior official of the Ethiopian Airports Enterprise told The Reporter that CCCC started fencing the construction site and has embarked on earth-breaking work.

The enterprise plans to expand the Addis Ababa Bole International Airport passenger terminal at a cost of 250 million dollars. The loan was secured from the Export-Import (EXIM) Bank of China. The project is aimed at transforming the passenger terminal into a state-of-the-art terminal and boosting its capacity. CCCC, which has built a number of highways in Ethiopia, is the contractor. The design of the new passenger terminal was drafted by a Singapore company called CPG Airports.

To hire a consulting firm that would supervise the construction work, the Ethiopian Airports Enterprise has put up a tender. Thirty-eight companies bought the bid document. Only five of them submitted bid proposals and the enterprise bid committee has been evaluating the technical proposals presented by the five international consulting firms. Reliable sources in the enterprise told The Reporter that a French company has won the technical evaluation.

Another French firm ranked second and an Italian company was ranked third. Sources, who declined to disclose the names of the companies, said that the financial bid would be opened next week and automatically the winner will be revealed. The incumbent will also undertake a study on the new mega airport planned to be built out of Addis Ababa.

The Addis Ababa Bole International Airport passenger terminal expansion project includes the construction of a new passenger terminal as an extension of the existing Terminal 1 (domestic and regional terminal) and Terminal 2 (international terminal) with all related equipment and the construction of a new VIP passengers’ terminal.

The new terminal will house boarding areas, lounges, recreation centers, shopping malls, offices and other facilities. New boarding gates, boarding bridges, and new parking areas are parts of the expansion project. The new parking area will serve passengers and staff members. A major component of the expansion project is the VIP terminal.

The first of its type in Ethiopia, the VIP terminal will be dedicated to leaders, senior government officials, diplomats and other dignitaries. The VIP terminal will have various saloons, lounges, conference rooms, recreation centers, duty free shops, an IT center and an exclusive parking lot. At present the two terminals accommodate 6.5 million passengers every year. When the new terminal is completed it will accommodate 25 million passengers per annum.

The Ethiopian Airports Enterprise owns and operates 18 airports, 15 of which are asphalted. To cope with the fast growth of Ethiopian Airlines, the Ethiopian Airports Enterprise is building new airports in different parts of the country. The enterprise will soon inaugurate the Jimma and Assosa airports it has recently built. It will also soon embark on the construction of a new airport in Hawassa town. The enterprise is also contemplating to build a giant international airport (mega hub project) in a lowland area outside Addis Ababa.

http://www.waltainfo.com/index.php/explore/13882-work-on-addis-ababa-airport-expansion-project-commences

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Ethiopia eyes over $47mln from meat exports during Ramadan

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Ethiopia eyes to earn $47.48 million from meat and animal exports to the Middle East countries, which will observe the start of the holy fasting month of Ramadan next week.

“The rising demand for meat during the month of Ramadan has been a business opportunity for us for a long time,” Kelifa Hussein, deputy head of the Ethiopian Trade Ministry’s Live Animals, Hides and Skins Department, told Anadolu Agency.

“We export both animals and meat to Somalia, Egypt, Djibouti, Saudi Arabia and the United Arab Emirates (UAE) and export meat to Turkey and Hong Kong,” he said.

According to Hussein, the Ethiopian revenues will exceed the planned $21 million, Anadolu News Agency Reported.

“Ethiopia earned $176 million from export of live animals during the last eleven months,” he said.

Secretary-General of Ethiopian Association for Meat Producers and Exporters Abebaw Mekonnen said Ethiopia anticipates earning $26.48 million from export of 5405 tons of meat to different countries during Ramadan.

“Saudi Arabia and UAE are target markets for 90 percent of our products. We export the remaining 10 percent to Kuwait, Oman and Egypt,” Abebaw told.

“The country earned $66.8 million from meat exports during the last 11 months. The revenue is estimated to increase to $70 million during the month of Ramadan,” he said.

Previously, the Ethiopian Airlines used to transport only 24 tons of meat per flight.

Now, Abebaw said, there is a plan to increase the amount to 60 tons per flight.

Ethiopia has the largest livestock population in Africa with 53.8 million heads of cattle, 25.51 million sheep, 22.79 million goats, 2.17 million camels and 49.3 million poultry, according to the Central Statistical Agency of Ethiopia.

http://www.waltainfo.com/index.php/explore/13887-ethiopia-eyes-over-47mln-from-meat-exports-during-ramadan

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Omo Kuraz -I to begin sugar production after two months

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Omo Kuraz -I sugar factory will begin sugar production after two months, according to coordinator of project.
Omo Kuraz -I is among the five sugar factories to be built under the Kuraz sugar development project.

The factor is being constructed in the Southern Nations, Nationalities and People (SNNP) Regional State by the Metals and Engineering Corporation (MetEC).
“Civil construction works of Omo Kuraz -I sugar factory is now 98 per cent complete,” project’s coordinator at MetEC, Major Molla Tamiru, told WIC recently.
Installation and erection of the factory have also reached at 68 per cent, he added.

According to the coordinator, concerted efforts are underway to finalize the construction of the factor and enable it begin trial production after two months.
The construction of the factory has so far created jobs for 2,000 in habitants of the area, including people from Bodi, Bacha and Mursi tribes, he pointed out.

http://www.waltainfo.com/index.php/explore/13879-omo-kuraz-i-to-begin-sugar-production-after-two-months

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Premier Announces Pay Raise for Civil Servants

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Prime Minister Hailemariam Desalegn has announced that Ethiopian civil servants will soon get a salary increase in addition to preferential access to 20pc of the condominium houses under construction by the government.

“If members of the public service wish to organize themselves in associations for the construction of houses, the government will provide them with land,” Hailemariam proclaimed.

He announced this at the opening ceremony of the World Civil Service Day, held at the African Union meeting hall on Monday.

The premier also proclaimed that only members of the public service would participate in the draw for 20pc of the condominium houses under construction by the government. This is to avert the housing problems facing government employees, he said.

Intended to improve the working as well as the living condition of civil servants, the salary increment will be effective from July 2014 – the first month of the next fiscal year.

The increase will be made with consideration to the government’s financial capacity, in a way that avoids awakening inflation or disturbing the stability of the economy, Hailemariam added.

http://allafrica.com/stories/201406240374.html

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Two More Cement Factories for Ethiopia by October

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Chemicals and Construction Materials Development Institute announced two more cement factories will commence production in four months time. The factories are Ethio Cement and Dangote.

Samuel Halala, the Institute’s Director General, said 90 percent of Ethio Cement’s construction is completed while 75 percent of Dangote is finalized.

The Director General added upon commencing production the two factories are expected to push the nation’s capacity to 15.7 Million Metric Tons which currently stands at 12.2 Million Metric Tons.

Following the cement shortage in the country, some two and three years ago, many investors managed to engage in cement production, Samuel added. He furthered some 18 of the 24 projects licensed for cement production have already commenced production.

Private investment’s increment in the area is enhancing the nation’s aim of meeting local demand and also exporting cement to neighboring countries.

Ethiopia has collected a total of U.S $ 7 Million from exporting cement in the first 10 months of the current fiscal year.

Ethiopia plans to earn U.S $ 20 Million from exporting cement in the coming budget year.

http://www.2merkato.com/news/alerts/3066-two-more-cement-factories-for-ethiopia-by-october

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Five new parks underway

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Even though there have been many roads and buildings constructed in the last ten years, there have not been many parks.

As part of the Growth and Transformation Plan, the Addis Ababa Beautification Park and Cemetery Development Agency (BPCDA) planned to construct five new parks. These included: Ledeta, Basha Wolde, Nation and Nationality Square, and the parks beside Economic Commission for Africa and the Holland Embassy.
So far only the 12,000sqm Ledeta Park has been completed, at a cost of 26 million birr.
The other four parks are below forty percent complete. There has recently been the beginning of reconstruction of two parks Ethio-Cuba and Akaki Kaliti.
Including the two parks that are being refurbished Addis Ababa has allocated 300 million birr.
Akaki is 62,518sq.m and is being built at a cost of 59 million birr. The 27,226s.qm Ethio-Cuba is the cheapest at 9 million birr.
BPCDA Deputy Manger Dereje Ejeta told Capital,  “We didn’t have any problems with planning, the difficulty we faced was that there were few people with experience in building parks here, we wasted almost two years posting tenders repeatedly trying to find the right contractor, now the issue has been resolved and all of the parks are under construction.”
Most of the parks will cost two birr to enter. Some criticize this because they say there really are not a lot of amenities there to justify the fee.
Over the last nine months BPCDA has brought in a profit of 2.5 million birr from entrance fees, weddings, food service, and photos. Last year it earned around the same amount. The eleven old BPCDA administered parks have received 371,359 visitors.
Some of the new parks will feature shops, swimming pools, tennis courts, cafeterias and fountains. The agency is waiting for a response from a government construction agency to tender out the    redesigns of    Afincho Ber, Hamlae 19, and Behare Tsegae  parks.
Among Addis parks Behare Tsegae is the biggest at 60 hectar. It was established forty nine years ago and it provides an area for weddings, park photos and a restaurant.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4387:five-new-parks-underway&catid=35:capital&Itemid=27

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Authority to Construct Road to Interconnect Omo-Kuraz Sugar Factories

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The Ethiopian Roads Authority here Wednesday signed contract agreement amounting to 2.5 billion Birr with the Chinese Communications Construction Company (CCCC) for construction of 102km road on Omo River.

The road project aimed at linking the six sugar factories under the Omo-Kuraz project with each other and main roads, Authority Director General Zaid Weldegebriel said.

The construction of the road to be finalized in three years, will be carried out in two phases. The first phase that covers 41.7km will run from the Omo no-6 junction to the junction to no-4.

Construction of a 200m bridge over the Omo River will be undertaken in this phase of the project expected to consume 108 billion Birr.

Up on completion within three years, the road will link people living in both sides of the river and the sugar factories with each other, Zaid said.

The second phase of the project that covers 60.6 will be carried out with an outlay of over 1.4 billion Birr. Construction of 157 small bridges will be carried out in this phase of the project, according to Zaid.

This road will interconnect the Omo no-4 and no-6 sugar factories with Hana- Jinka and Sawla Maji main roads.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2281:authority-to-construct-road-to-interconnect-omo-kuraz-sugar-factories&Itemid=260

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East Africa Bottling to Replace Production Lines at the Cost of 30 Million

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East Africa Bottling S.C. announced it is going to replace two of its production lines which are found in Addis Ababa at a cost of U.S $ 30 Million.

East Africa is undertaking aggressive expansion works which it called 2020 vision. The whole project is anticipated to double the production capacity of the current lines and cost the company U.S $ 500 Million.

The two lines that are announced to be replaced will be brand new lines with the latest technology. Commenting on this CEO of the company, Xavier Selga, said the new lines will use less energy and have greater efficiency with minimal environmental impact.

East Africa has already built two additional lines in Addis Ababa out of which one is dedicated to packaging the company’s products in plastic bottles. It is these two lines that raised East Africa’s number of production lines in Addis Ababa to five.

Replacement work has also been carried out by the company at it’s two of production lines in Dire Dawa. This is said to have enabled the company to increase its production from two million cases to seven million cases.

According to Selga East Africa is on the process of constructing a plant in Bahir Dar, which will be its third plant, at the cost of U.S $ 20 Million. He further noted, his company is waiting to officially inaugurate its new water product, Dasani, which it has already introduced.

http://www.2merkato.com/news/alerts/3074-ethiopia-east-africa-to-replace-production-lines-at-the-cost-of-30-million

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Ethiopia’s First Oil Blending Plant to Start Production

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Ethiopia’s first ever oil blending plant commenced production on Tuesday, June 24, 2014. The plant is erected by Naztech Petroleum Investment Group at the city of Galan in the Oromia State.

The oil blending plant is the first of series investments that are going to be made by Naztech in Ethiopia.

The plant is said to produce different lubricants using the latest standards of the American Petroleum Institute (API) and it is also in line with Ethiopia’s objectives of indigenizing its oil and gas industry.

Upon commencing production, Naztech is expected to produce passenger car lubricants, diesel engine oil-automotive, two stroke motor oil-automotive, automotive specialty, gear lubricants, industrial lubricants, greases and marine lubricants.

http://www.2merkato.com/news/alerts/3073-ethiopias-first-oil-blending-plant-to-start-production

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LIDI Stated Value-Added Leather and Leather Products Revenue Increasing

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Ethiopian Leather Industry Development Institute (LIDI) proclaimed Ethiopia’s foreign currency revenue from export of value added leather and leather products has been growing.

During the 11 months of the current fiscal year Ethiopia has managed to collect U.S $ 122 Million from the export of leather and leather products. According to the Ethiopian News Agency the sum collected exceeds the same period of the previous year by 10 percent.

Birhanu Serjebo, the Institute’s Corporation Communication Director, said Ethiopia is following the path of exporting finished leather and leather products by adding values to them.

BIrhanu further noted Ethiopia has exported to different nations shoes, gloves and outfits made from leather, the dominant being shoes. Out of the total revenue over U.S $ 90 Million goes to finished leather products, he added.

According to the Director Ethiopia’s aim for this year was to collect U.S $ 347 Million from the sector. He attributed the failure to lack of modern raw leather and hide system.

http://www.2merkato.com/news/alerts/3077-ethiopia-lidi-stated-value-added-leather-and-leather-products-revenue-increasing

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Tana-Beles sugar project ‘on schedule’

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Tana Beles sugar development project is progressing as per the schedule, the project consultant said.

Hassen Abdu (Eng.), representative of Acute Engineering, a local consulting firm, told WIC that civil works has been completed for two of the three sugar factories planned to be built under the Tana-Beles Sugar Development Project.

Ethiopian Sugar Corporation (ESC) expects the two sugar factories each with the capacity to crush 12,000 tcd (tons of cane per day) to go operational during the first months of 2015. The third factory is slated to go operational in the second phase of the Growth and Transformation Plan period (GTP II).

Adgeh Mekuria, deputy director general of the project, confirmed to WIC that the crushing plants will undergo testing in 12 months.

“We expect the factories to start producing sugar next year [Ethiopian calendar],” Adgeh said.

The crushing plants, currently under construction, are located in Amhara region some 576 km north of Addis Ababa. The project will cultivate 75 thousand hectares of land with sugarcane plantations. A portion of the plantation will be within the Benishangul Gumuz region.

At full capacity, the three sugar factories are expected to produce 726 thousand tons of sugar and 62.4 mln liters of ethanol from cane by-products.

The project will also offer seasonal and permanent job opportunities to over 69 thousand people, Adgeh said.

Currently, Ethiopia produces some 300,000 tons of sugar per annum while the demand for sugar stands at around 500,000 tons.

Ethiopia’s massive investment in sugar development projects across the country could see the nation produce 1.58 million tons of sugar annually by mid 2015, according to announcements made by the ESC in May this year.

http://www.waltainfo.com/index.php/explore/13913-tana-beles-sugar-project-on-schedule

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Norway supports Ethiopia’s green economy development

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Government of Norway made a 60 million dollar financial support to Ethiopia’s efforts of building green economy. The support will be used to forest development projects aimed at reducing carbon emission.

Belete Tafere, Minister for Environment and Forestry on the occasion noted that the financial support will have an important contribution to Ethiopia’s efforts to expand forest coverage with a view to build green economy and development of ecotourism.

Tine Sundtoft, Minister for Climate and Environment of Norway noted that Ethiopia and Norway hold strong position on climate change.

She hailed Ethiopia’s commitment and effort to combat the challenges of climate change and affirmed that Norway will continue to support these efforts.

Ethiopia and Norway has prepared draft projects on climate change to be implemented from 2013-2020.

http://www.waltainfo.com/index.php/explore/13912-norway-supports-ethiopias-green-economy-development-

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Global Cities, Present and Future

2014 Global Cities Index and Emerging Cities Outlook

Today more than ever, global cities need to run just to stand still. Urban leaders who wish to provide their citizens with the benefits of becoming a global power­house must fire on all cylinders, all the time.

Globally integrated cities are intimately linked to economic and human development. By creating an environment that spawns, attracts, and retains top talent, businesses, ideas, and capital, a global city can generate benefits that extend far beyond municipal boundaries.

At A.T. Kearney, our Global Cities Index (GCI) examines a comprehensive list of 84 cities on every continent, measuring how globally engaged they are across 26 metrics in five dimen­sions: business activity, human capital, information exchange, cultural experience, and political engagement (see Appendix: Global Cities Index Methodology). Since we began the GCI in 2008, we’ve continually refreshed our metrics to reflect emerging trends, analyzed how cities evolve along each of them, and developed insights about how a city can become more global.

Moreover, our companion Emerging Cities Outlook (ECO) builds on those insights and comple­ments the GCI. Just as the GCI tracks major cities’ actual performance, the ECO measures their potential to become even more global in the future. Specifically, the ECO examines the likelihood that 34 cities in low- and middle-income countries will improve their future global positioning, based on how quickly they’ve been catching up with the top performers on a number of leading human capital, business activity, and innovation indicators.

We’ve consistently tracked the evolution of 60 global cities over the past six years, to which we’ve added 24 more over the subsequent three editions. Taken together, the GCI and the ECO paint a revealing portrait of the global cities of today and tomorrow (see figure 1).

From a bird’s-eye perspective, we have observed the following trends:

But first, let’s take a closer look at the results of the GCI for 2014.

Global Cities Index 2014 Overview

As in every previous edition, New York and London lead the ranking, followed this year by Paris, Tokyo, and Hong Kong (see figure 2). Among the top 20 cities, seven are in the Asia Pacific region (Tokyo, Hong Kong, Beijing, Singapore, Seoul, Sydney, and Shanghai), seven are in Europe (London, Paris, Brussels, Madrid, Vienna, Moscow, and Berlin), and six are in the Americas (New York, Los Angeles, Chicago, Washington, Toronto, and Buenos Aires). Cairo is the leading city in Africa, remaining in the top 50 despite Egypt’s political and economic turbulence.

Beijing, in eighth position, breaks into the top 10 for the first time, thanks to an increase in the number of Fortune 500 companies, international schools, broadband subscribers, and museums. And Buenos Aires becomes the first Latin American city to join the top 20, based on the strength of its human capital and cultural scene, both of which reflect the city’s long-standing cosmo­politan tradition.

City highlights

Istanbul posted the largest jump, from 37th to 28th, as Turkey’s commercial capital recovers its prominence as a center of political, business, and cultural activity at the crossroads of Europe and Asia. Meanwhile, Boston and Zurich fell the most, dropping six positions from 15th to 21st and from 25th to 31st respectively. While much of Boston’s decline is attributable to a change in the metric that assesses the richness and quality of its culinary offering, its level of political engagement and its music and theater scene have also failed to keep up with those of other cities. Zurich’s relative decline is most noteworthy on the metrics of performing arts events and the number of international news bureaus located in the city.

The 2014 GCI includes 18 new cities (six in the Middle East and North Africa, four in the Americas, three in Europe, three in sub-Saharan Africa, and two in Asia Pacific) to improve the index’s global representation. Budapest, Prague, and Vancouver open the ranking of the new cities, coming in at positions 46 through 48, with Tunis, Lahore, and Kinshasa closing the classification of new cities at numbers 81 through 83.

Regional highlights

In the United States and Canada, New York (1) outscores all the other contenders on every dimension except political engagement, where Washington (10) edges it out. In general, U.S. and Canadian cities are stronger on information exchange than on any other dimension.

In Latin America, cities tend to be well rounded across all areas, although São Paulo (34) spikes in business activity and Santiago (58) in information exchange.

Among the top-ranked cities in Northern and Western Europe, London (2) is the strongest in human capital and cultural experience, while Paris (3) is slightly ahead in business activity and information exchange and Brussels (11) leads the pack in political engagement. In Southern and Eastern Europe, Madrid (15) presents a balanced profile, and Moscow (17) stands out for its rich cultural offering.

In the Middle East and Northern Africa, Dubai’s (27) position as a flourishing crossroads of trade makes it the leader in business activity, although the number of large firms setting up shop in Abu Dhabi (62) and Riyadh (65) could help those capitals to close in quickly. Dubai also leads in human capital and cultural experience, but Riyadh makes a stronger showing on the metrics of foreign-born population and, especially, top universities and inhabitants with tertiary degrees. Cairo’s (49) major strength is political engagement, and, interestingly, Casablanca (78) offers the most symmetric profile in the region—although its scores are uniformly low. In sub-Saharan Africa, Johannesburg (59) leads in four out of five dimensions—and stands out in information exchange vis-à-vis its regional peers. In political engagement, however, Nairobi (68) and especially Addis Ababa (80) can take pride in their weight as important centers of regional politics.

Singapore, at ninth place in the GCI, is clearly in a league of its own among cities in Southeast Asia, with no close rivals in business activity, human capital, or information exchange. Culturally, Bangkok (42) is the best performer in the region, and in political engagement Singapore, Bangkok, Jakarta (51), and Kuala Lumpur (53) lead Ho Chi Minh City (70) and Manila (63) by a large distance. Cities in South Asia on our index mostly stand out along the dimension of information exchange. That said, outward-looking Mumbai (41) far outstrips its peers in business activity and human capital.

Shanghai, at number 18 in the index, is the only city in mainland China that comes even close to Beijing (8). In fact, it bests Beijing in human capital, given its larger foreign-born population, greater number of inhabitants with tertiary education, and high number of international schools, while also performing well in business activity. Elsewhere, East Asia is home to some stellar performers—most notably Tokyo (4) and Hong Kong (5). Seoul (12) scores excellently on most dimensions, though it lags in human capital due to its small foreign-born population and the low number of international schools.

With Melbourne (25) on the rise and Sydney’s (14) solid performance, Australia places two cities in the top 25. Melbourne’s rise can be chiefly attributed to an increase in information exchange, coupled with improvements in cultural exchange and business activity.

Six Years in Retrospect

Over the six years we’ve been conducting the GCI, we can observe a number of changes along the five dimensions (see figure 3):

• Human capital scores among the original 60 cities have shown the largest increase (16 percent), and the distance between the highest- and lowest-ranked cities in this dimension is less than on any other. The average score has increased for all human capital metrics, but mainly in the number of inhabitants with tertiary degrees and the size of the foreign-born population.
• Business activity scores between 2008 and 2014 have risen by a more moderate 4 percent, with a mild tendency to diverge. This divergence is chiefly driven by the increase in the number of top global companies based in emerging countries—particularly China, but also India, Brazil, and Russia—and the countervailing decline in the European Union and the United States.
• Although the range of information exchange scores has widened slightly as a result of varying degrees of freedom of expression and broadband penetration, the overall number has risen by 6 percent. This increase is caused not only by the spread of information technology, but also by a change in some of the metrics (for example, including a city’s presence in Google and its access to international television news networks) to better reflect current information flows.
• In cultural experience, the results have shot up by 13 percent, and differences among cities have shrunk considerably—largely as a result of the change to a more inclusive metric to evaluate cities’ culinary offerings.
• Finally, political engagement stands out as the only dimension where scores have actually decreased, and they have done so by 13 percent. Further analysis reveals that the top cities along this dimension have significantly increased their performance in the metrics of the number of think tanks, international organizations, and political conferences. However, the majority of cities have remained stagnant and, thus, have pushed down the average score.

A perspective on select cities’ evolution since 2008

Some cities have advanced considerably in the GCI since 2008, while others have temporarily lost their footing. The changes can be observed in figure 4 (which, unlike figure 2, discounts the effect of the 24 cities added since 2008).

Buenos Aires and Mumbai have both risen 13 positions in this ranking of the original 60 cities:

• The score for Buenos Aires increased by nearly 40 percent between 2008 and 2014. The Argentine capital has seen large improvements in its cultural exchange and human capital scores, where it now ranks eighth and 11th respectively. There have also been smaller but still significant increases in business activity and information exchange—more than enough to offset the decline in international political engagement, possibly resulting from Argentina’s more fiercely independent foreign and economic policy.
• Mumbai’s score has gone up by 73 percent. Nonetheless, Mumbai’s overall result places it in the range of hotly contested positions in the ranking, so it would be well advised not to take its foot off the accelerator. India’s commercial capital has registered the largest increases in the areas of information exchange and human capital, followed by business activity, where it is now among the top 20 of the original 60 cities. The city remains weaker in cultural exchange, where a small improvement still led to a fall in the ranking, and in international political engagement.

Furthermore, while Beijing’s climb up the rankings has been less noteworthy—largely because it started from a position of strength, where movements are less brusque—the 20 percent growth of its score has firmly ensconced it among the top contenders. The increasing global importance of Chinese companies has helped catapult Beijing to fourth place on the business activity dimension, at just a hair’s breadth below Tokyo. This, together with some improvement in scores for human capital (where, nonetheless, it has dropped four places) and cultural exchange, has been more than enough to offset declining relative performance in information exchange and international political engagement.

Bangkok, with a 16 percent drop in score and a 15-position slide down the table of the original 60 cities, represents the flip side of the coin. In 2008, Bangkok seemed destined to rise. The Thai capital ranked among the top 20 cities in business activity, human capital, and international political engagement—and was in 22nd place overall. Since then, and coinciding with a long period of political uncertainty, scores in all three of these dimensions have flagged, in information exchange the city has also dropped markedly, and despite an improvement in the cultural experience, Bangkok is now in 37th place among the original cities.

San Francisco, Mexico City, and New Delhi have slipped seven places in the ranking, despite only modest decreases in score for the first two and a small gain for the Indian capital.

San Francisco (which moved from 15th to 22nd place) developed faster in information exchange than in any other area, translating a strong increase in score into a finish among the top 20—perhaps unsurprising given its location next to Silicon Valley. Its higher score in cultural exchange, on the other hand, was insufficient to keep it from dropping two positions, and its numbers decreased on the other three dimensions.

Mexico City (now in 32nd place among the original 60 cities, down from 25th place in 2008) significantly increased its human capital score in 2014, but only enough to propel it two positions up the chart in this very competitive dimension. Meanwhile, its scores stagnated or fell across all other areas, with a particularly noticeable drop in its ranking in information exchange.

New Delhi, having slipped from 41st to 48th place among the 60 original cities, actually increased its scores across every dimension except information exchange. Unfortunately, its improvement in human capital and cultural experience was not enough to keep up with similarly ranked cities.

It did, however, move up three notches on business activity, while India’s increased exposure on the world stage brought the city up to 14th place in international political engagement.

Mainland China’s integration in the global economy is reflected in advances in the index. Indeed, as Beijing, Shanghai, and Guangzhou climb the ranking, other key cities in Asia (such as Hong Kong, Taipei, Singapore, and Seoul) have remained stagnant or declined in relative terms.

Singapore is having a harder time than Tokyo in maintaining its position, as declining scores in business activity and human capital threaten the city’s ranking among the top 10 in these two heavily weighted components. It has, however, increased its score in the very competitive dimensions of cultural experience, and, especially, information exchange—just not by enough to hold its place in the ranking.

Tokyo’s improvement in human capital marks a bright spot and has allowed it to break into the top five on this dimension, even though its scores have declined on every other dimension—as has its ranking on each of them, save cultural experience.

A Preview of the Future: Emerging Cities Outlook

As the examples cited above will attest, cities that wish to improve or maintain their global positioning must focus especially on strengthening business activity and human capital. As physical distances become less relevant and global competition intensifies, cities in emerging economies will increasingly jockey for position with one another and with cities in higher-income countries.

Our Emerging Cities Outlook (ECO) measures the likelihood that cities in low- and middle-income countries will improve their global standing over the next 10 to 20 years (see figure 5). We do that by calculating how long it would take any given city, provided that it progresses at the same rate as between 2008 and 2013, to reach the global leader in each of 10 leading indicators of business activity, human capital—and also innovation, which is crucial to attract talent and business (see Appendix: Emerging Cities Outlook Methodology). Of course, externalities can cause improvement rates to change rapidly—and swift advances are more difficult to sustain as scores improve—so caution is advised.

Two Southeast Asian cities, Jakarta and Manila, head up the list of emerging cities most likely to progress. Although both cities are currently in the lower half of the GCI on the dimension of business activity, their rapid improvement on the ECO’s leading indicators would allow them to reach the business leaders faster than any other low- or middle-income city in the world except São Paulo. Furthermore, Jakarta is moving up quickly in the area of human capital—particularly in measures of stability and security, but also in addressing income inequality and environmental concerns—as well as across several important innovation indicators. Manila, too, is bolstered by a relatively sharp increase in human capital indicators, with an especially notable improvement in healthcare quality and availability. Another Southeast Asian capital, Kuala Lumpur, is also among the top 10 cities in the ECO; Kuala Lumpur is the city that will most quickly catch up with the leaders in terms of the ease of doing business. Jakarta, Manila, and Kuala Lumpur’s strong showing on the ECO signals that major cities throughout eastern Asia are laying solid groundwork to advance as global cities and eventually dispute the top positions in the GCI.

Moving to Africa, Addis Ababa is the third most likely city to advance its global positioning. While its absolute numbers in the area of innovation are quite low, it improved its performance on the leading innovation indicators by a very large percentage between 2008 and 2013. At current rates of improvement, the Ethiopian capital is also among the cities closing in fastest on the world leaders—despite current distances—in income equality, healthcare, and business transparency. The next sub-Saharan city on the ECO is Nairobi, in ninth place, where IBM is already building a research laboratory.

Rio de Janeiro and Bogotá join São Paulo as Latin American cities among the top 10. São Paulo is already very strong in business activity on the GCI, and if it were to continue to improve at the present rate, it would catch up with the leaders relatively quickly. However, in the leading human capital indicators—particularly stability and security—it will take a long time for São Paulo to bridge the gap. Meanwhile, Bogotá is progressing rapidly toward the leading cities in human capital, second only to Cape Town, on the strength of improvements in stability and security, respect for the environment (thanks to initiatives such as the Transmilenio bus system and the construction of bicycle paths), and healthcare.

New Delhi, in fifth place, is the South Asian city best poised to improve, followed by Mumbai in eighth position and Bangalore in 11th, as Indian cities appear to be reaping the benefits of the country’s booming global services industry and its greater openness to the global economy. The distance from world innovation leaders is shrinking rapidly, and significant advances in human capital and business activity are also being made.

As for China, Beijing’s 12th place position on the ECO reflects the fact that the city is already in eighth place on the GCI, where it is very difficult to move up the ranking. Other mainland Chinese cities where healthcare—a key leading indicator of human capital—is not improving as quickly as in Beijing are much less likely to improve their global position in the short to medium term, although the rapid increase in patent filings in nearly all of them is a promising sign for the future.

In the Middle East, Abu Dhabi, Doha, Dubai, Manama, and Riyadh have not been included in the ECO, as they are located in high-income countries.

Lessons for Policy Makers and Business Leaders

By focusing on the elements that contribute to the generation, attraction, and retention of global capital, people, and ideas, the GCI and ECO can be powerful tools in the hands of policy makers and business leaders. Urban economic development planners, by examining the indexes’ metrics, can find many insights that can inform their improvement plans and investment decisions in order to better benefit from the global economy and compete against other cities in the region. Likewise, executives at multinationals will find many elements to help them choose the most suitable locations for regional headquarters, research centers, and operational hubs—not just now, but looking several decades into the future.

The overview of the GCI and ECO show that today more than ever, global cities need to run just to stand still. Urban leaders that wish to provide their citizens with the benefits of becoming a global powerhouse must fire on all five cylinders (business activity, human capital, information exchange, cultural experience, and political engagement) all the time. To do so requires a deep commitment and broad consensus among governing parties, opposition, civil society, and business leaders. It also requires the complicity of subnational and national leaders to advance on those metrics that are affected by policies beyond the competence of municipal authorities. And it requires everyone to be in it for the long haul.

Business leaders must be a driving force to create a vision for a global city and get their city to embark on the journey to become more global. Companies need to be an active promoter and participant in the collective effort to create an environment that offers a better future for all of society.

Working together, with determination, discipline, and a long-term vision, a world of greater human and economic development is within the grasp of cities in regions and continents around the world.

The authors wish to thank Alan Berube, senior fellow and deputy director at the Brookings Institution Metropolitan Policy Program, and Diana Frison of A.T. Kearney for their valuable insights and contributions to this paper.

¹ Standard deviation has decreased by 5 percent since we began conducting the GCI in 2008.

Appendixes

Global Cities Index Methodology

A.T. Kearney’s Global Cities Index ranks metropolitan areas according to 26 metrics across five dimensions:

• Business activity is measured by headquarters of major global corporations, locations of top business services firms, the value of a city’s capital markets, the number of international conferences, and the flow of goods through ports and airports (weighting: 30 percent).
• Human capital evaluates a city’s ability to attract talent based on the following measures: size of foreign-born population, quality of universities, number of international schools, inter­national student population, and number of residents with university degrees (weighting: 30 percent).
• Information exchange examines how well news and information circulate within and outside the city, based on: accessibility to major television news channels, Internet presence (capturing the robustness of results when searching for the city name in major languages), number of international news bureaus, freedom of expression, and broadband subscriber rate (weighting: 15 percent).
• Cultural experience measures diverse attractions, including number of major sporting events a city hosts; number of museums, performing-arts venues, and diverse culinary establishments; number of international travelers; and number of sister-city relationships (weighting: 15 percent).
• Political engagement assesses how a city influences global policy dialogue as measured by the number of embassies and consulates, major think tanks, international organizations and local institutions with international reach that reside in the city, and the number of political conferences a city hosts (weighting: 10 percent).

As a compendium of analyses published in 2013, the 2014 GCI may represent data as far back as 2010. Thus, today’s current events can be expected to show up in our next set of rankings. A panel of academic experts and corporate executives informed and tested the global rankings.

Emerging Cities Outlook Methodology

The Emerging Cities Outlook examines 34 cities located in countries that the World Bank classifies as low or medium income. It measures how quickly cities are evolving along 10 leading indicators that are most likely, over time, to influence a city’s ability to attract, retain, and generate flows of ideas, capital, and people—and, given that rate of evolution, how long it would take a city to catch up with the GCI leader in each of those indicators.

Indicators can be grouped into three categories:

• Business activity analyzes the evolution of a city’s GDP, changes in its infrastructure (such as roads, public transportation, housing, and water supply), the ease of doing business in the country where it is located, and perceptions regarding public-sector transparency.
• Human capital looks at trends in stability and security, healthcare availability and quality, income equality, and environmental sustainability.
• Innovation is included in our ECO for the first time this year, given its criticality as a catalyst to attract business and talent. In this area, we examine progress in the number of patent filings per capita and changes in a basket of select additional metrics (such as number of new businesses created, volume of venture capital deals, gross expenditure in R&D, and ease of obtaining credit).

Sourced here  http://www.atkearney.com/latest-article/-/asset_publisher/lON5IOfbQl6C/content/global-cities-present-and-future-gci-2014/10192

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Statement by an IMF Staff Mission on the 2014 Article IV Consultation with Ethiopia

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An International Monetary Fund (IMF) mission led by S. Kal Wajid visited Addis Ababa June 11-25 to conduct discussions for the 2014 Article IV Consultation with Ethiopia.

At the conclusion of the mission, Mr. Wajid issued the following statement:

“The Ethiopian economy continues to experience robust growth and single-digit inflation. The mission projects real GDP growth in the 8-8.5 percent range for 2013/14 and 2014/15. The expansion in economic activity has contributed to poverty reduction and progress toward achieving the Millennium Development Goals. Deterioration in the trade balance this year was partly offset by higher net inflows from services and transfers. Strong external loan and higher foreign
direct investment, however, allowed for a modest increase in gross international reserves. Sizeable investment spending of public enterprises continues to absorb a large share of domestic financing and constrain credit available to the private sector.

“Going forward, the mission recommends continued cautious monetary policy stance that keeps money growth consistent with preserving the gains on inflation and achieving robust economic growth. The stable inflation conditions are ripe for developing market-based instruments of indirect monetary control. In this respect, there is a need to gradually raise nominal interest rates to activate
the Treasury bill market for more flexible liquidity management. There is scope for improving the market functioning and price setting mechanism for the exchange rate. This may entail greater exchange rate flexibility not only to help to clear the foreign exchange market but also to promote the competiveness of the traded goods sector. The mission supports the National Bank of Ethiopia’s
objective of gradually raising foreign exchange reserves to 3 months of imports.

“The mission stresses the importance of obtaining comprehensive financial information of major public enterprises for establishing an overall fiscal anchor. The consolidated fiscal position is required to assess the fiscal policy impact on macroeconomic developments and debt sustainability. The continued large borrowing of the public sector with large share from domestic banking
system is crowding out the private sector. In this respect, to further support private sector development and employment creation, there is a need to reduce public sector borrowing by either prioritizing investment projects or attracting more external financing at appropriate terms.

“Ethiopia’s public sector led development strategy has delivered robust growth and rising living standards. To sustain these achievements, adapting policies to provide greater scope for the private sector will be important. In terms of the next Growth and Transformation Plan, consideration should be given to mitigating constraints to private sector development and improving export competiveness.Concerted efforts are needed for improving efficiency of trade logistics, increasing access to financial services, ensuring a competitive exchange rate, and providing a predictable regulatory environment for businesses. Harnessing the transformation power of private enterprises will be increasingly important as Ethiopia transition from agricultural to industrial based economic growth.

“The IMF Executive Board is expected to complete the 2014 Article IV consultation in September 2014.”

Source: IMF Press Release

http://www.2merkato.com/news/alerts/3080-statement-by-an-imf-staff-mission-on-the-2014-article-iv-consultation-with-ethiopia

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Tigray to cultivate over a million hct of land in Meher

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More than 1.3 million hectares of land would be covered with seeds in the upcoming Meher (production) season, the Tigray Regional State Agriculture and Rural Development Bureau said.

Bureau Public Relations Coordinator, Michael Miruts, told WIC today that the land would be covered with main crops such as maize, teff, sesame, rice and sorghum, among others.

He said various agricultural inputs essential for the development activities are under distribution.

Out of the 749, 823 quintals of fertilizer required for the development activities, some 362, 777 quintals have so far reached in the hands of the farmers, he said.

He said farmers are using more than 13.1 million quintals of compost and 31 million quintals of animal manure.

According to Michael, 49, 889 quintals of select seed were also prepared, of which 9,100 quintals have already been reached in farmers’ hands.

Some 12,462 kilograms of herbicides and 128, 870 liters of insecticides are being distributed to beneficiaries, he said.

The region expects to reap 47. 8 million quintals of agricultural outputs the land that would be developed during the Meher season, he said.

http://www.waltainfo.com/index.php/explore/13925-tigray-to-cultivate-over-a-million-hct-of-land-in-meher

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Ethiopia’s Electric Power Export Growing

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Ethiopia’s effort to create power integration in Eastern Africa consolidates its economic benefits and the capacity to generate power, according to Ministry of Water, Irrigation and Energy.

Water, Irrigation and Energy Minister Alemayehu Tegenu told ENA that the power integration not only strengthens the relations among the countries, but also increases the foreign currency earning of Ethiopia.

As a result, the country has earned over 32 million USD during the past nine months, the minister disclosed.

The mega power projects Ethiopia has been building and the growing power demand of the countries in the region shows that the benefits Ethiopia gets from those would grow continuously, Alemayehu elaborated.

Beyond economic benefits, the power integration effort would have pivotal role in stabilizing the region and in strengthening the political and social relationships of the countries, he said.

Due to the above considerations, Ethiopia is contributing its part for the strengthening of power integration, he added.

Currently, Ethiopia provides 100 megawatts electricity to Sudan and up to 50 megawatts to Djibouti.

Electric power transmission lines with the capacity of carrying 2000 megawatts are also being extended to Kenya to supply power to the country.

The minister added that beyond East Africa, Ethiopia has been undertaking preparatory works to export electricity to Yemen via Djibouti, and electric power will soon be supplied to South Sudan and Somalia.

The electric power export does not affect the domestic electric supply, the minister stressed, adding that there is sufficient power.

He attributed the current power interruption to network problem in addition to the growing demand for power.

The minister further noted that Ethiopia produces 2,000 megawatts of electricity and that can definitely meet the current demand of the country.

According to Alemayehu, the current problem is caused by defects on transformers and inability of electric cables to carry loads as well as other factors.

To alleviate the problem, the ministry, in collaboration with Metals and Engineering Corporation (MetEC), is producing from 30 to 35 transformers in a day, the minister stated.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2292:ethiopia’s-electric-power-export-growing&Itemid=260

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Civil service reform bearing fruit, says ministry

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The civil service reform programs which are being implemented are beginning to bear fruits, Ministry of Civil Service (MoSC) said.

Various types of reform programs such as business process reengineering (BPR), Balanced Scorecard (BSC), Citizen’s Charter and Kaizen philosophy have been implemented with a view to improve public service delivery.

“There are improvements in service delivery and productivity of civil servants,” Mohammed Seid, communications and external relations director at MoSC, told WIC.

“Public satisfaction is also growing,” he said adding that there remain works to fully implement all the civil service reform programs.

“The progress the country has achieved in all fronts is one testimony to the success of the civil service reform being programs implemented,” Mohammed said.

However, he said the ministry will strengthen its effort and build the capacity of civil servants and better engage the general public to further improve public service.

http://www.waltainfo.com/index.php/explore/13914-civil-service-reform-bearing-fruit-says-ministry

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Ethiopia, Nigeria sign agreements to deepen all-rounded cooperation 

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Prime Minister Hailemariam Desalegn and Nigerian President Goodluck Jonathan jointly announced (June 25) that both Ethiopia and Nigeria had agreed to comprehensively deepen mutual cooperation in the fields of trade and investment, tourism and agriculture as well as security.

The two sides signed a memorandum of understanding on diplomatic training and agricultural cooperation.

Both leaders also recognized the necessity to jointly promote development and prosperity of their peoples through the consolidation of bilateral ties in the priority areas including trade, investments, agriculture and air transportation, the establishment of enabling factors for cooperation and the re-activation of investment friendly regulatory frameworks.

To realize sustainable economic growth and development, both sides committed to remain seized to extend their support to the promotion of regional and global peace and security. They also denounced all forms of terrorism and extremism as well as this growing threat to African countries.

During a joint press conference with President Jonathan, Prime Minister Hailemariam said that terrorism was “a global phenomenon that has to be tackled together in unison. It should not be left to this or that region or this or that country. We have to bear in mind the genesis of this terrorism.” He also noted that the increasing surge of suicide bombing by terrorists was a testimony for their elimination from their strongholds, stressing that much remained to sustain the momentum on the fight against terrorism.

He detailed that the East African region had resolutely fought terrorism attaching special importance to a comprehensive cooperation over the last decade, adding that the cooperative security mechanism had considerably incapacitated Al Shabab insurgents. He said that the current situation pressed Al Shabab insurgents to resort to suicide bombing, noting that this cooperative security of the region and the ideological bankruptcy of the threat accelerated the fading away of terrorism and extremism. He said that terrorism or the killing of humanity “has nothing to do with religion or political ambition.”

He suggested that countries vulnerable to terrorist attacks, including Nigeria and Ethiopia, must lead the process of combating the indiscriminate killing of humanity and remain committed to continue the fight against terrorism until its stoppage.

With regard to industrialization, the Prime Minister stressed the importance of sustained cooperation and support in the agenda of the resurgence of African industrialization to take root in the continent, adding that this cautious move would save Africa from becoming “a dumping site for foreign producers.

”President Jonathan on his part stated that Nigeria had a lot to draw lessons from Ethiopia’s experience in the fight against terrorism.

He recognized that Ethiopia-Nigeria economic ties had not enjoyed steady developments, stressing that the urgency of strengthening cooperation in the areas of agriculture, power and commerce would enable the two nations to generate jobs for youths and advance the cause of development.

He also appreciated Ethiopia’s commendable efforts in the development of power generation, agriculture, commerce and industry.

http://www.mfa.gov.et/news/more.php?newsid=3265

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President Mulatu: close engagement of Chinese business people expedites win-win development

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FDRE President Dr. Mulatu Teshome held discussions (June 26) with the business delegation of the People’s Republic of China headed by Wang Chuchang, Head of Chinese Cultural Academy, at the National Palace.

Discussions focused on ways to scale up the already existing economic ties to a new high through the close engagement of the two friendly countries’ business communities.

President Mulatu stressed that the proactive engagement and participation of the Chinese business community in the fields of medicine, mining and manufacturing would inject new impetus to further consolidate Ethiopia-China comprehensive partnership to achieve mutual benefits.

He also noted that establishing Chemical and Medical Equipment Producing industries would offer enormous profits.

The Chinese business delegation promised to bring their enterprises to Ethiopia in order to engage in the selected priority areas of investment including mining, manufacturing and establishing Chemical and Medical Equipment Producing industries in Ethiopia.

http://www.mfa.gov.et/news/more.php?newsid=3266

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Authority to construct road to interconnect Omo-Kuraz sugar project

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The Ethiopian Roads Authority on Wednesday signed contract agreement amounting to 2.5 billion Birr with the Chinese

Communications Construction Company (CCCC) for construction of 102 km road on Omo River.

The road project aimed at linking the six sugar factories under the Omo-Kuraz project with each other and main roads, Authority Director General Zaid Woldegebriel said.

The construction of the road to be finalized in three years will be carried out in two phases. The first phase that covers 41.7km will run from the Omo no-6 junction to no-4.

Construction of a 200m bridge over the Omo River will be undertaken in this phase of the project expected to consume 108 billion birr.

Up on completion within three years, the road will link people living in both sides of the river and the sugar factories with each other, Zaid said.

The second phase of the project that covers 60.6 will be carried out with an outlay of over 1.4 billion Birr. Construction of 157 small bridges will be carried out in this phase of the project, according to Zaid.

According to ENA, this road will interconnect the Omo no-4 and no-6 sugar factories with Hana- Jinka and Sawla Maji main roads.

http://www.waltainfo.com/index.php/explore/13927-authority-to-construct-road-to-interconnect-omo-kuraz-sugar-project

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Omo Kuraz, 3 universities sign MoU

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The Omo Kuraz sugar development project has recently signed a Memorandum of Understanding (MoU) with 3 universities based in the SNNP Regional State.

The agreement was signed with Hawassa, Arba Minch and Mizan Tepi universities, general manager of Omo Kuraz sugar development project, Nuredin Asaro told WIC.

According to the agreement, the universities will produce skilled manpower as well as provide short and long-term training for employees of the project, he said.

An agreement was also signed with Jinka, Bonga, Wolaita and Mizan Tepi technical and vocational colleges, Nuredin added.

He said the colleges have agreed to train middle-level manpower equipped with the necessary skills in sugar development.

According to Nuredin, Arba Minch University is undertaking preparations to launch masters program in sugarcane development, while Semera University eyes to become a center of excellence in the same area.

http://www.waltainfo.com/index.php/explore/13924-omo-kuraz-3-universities-sign-mou

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Crown Paints To Spend $8m On Setting Up Ethiopia Plant

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VENTURES AFRICA – Nairobi Stock Exchange (NSE)-listed firm, Crown Paints Kenya Ltd has proposed a Sh701 million ($8 million) factory for Ethiopia in 2015, following commencement of production at its Tanzania plant in January.

“We want to establish a large plant in Ethiopia,” said Rakesh Rao, Crown Paints’ Group Chief Executive as the company expands its operations in the East African market.

Rao noted that the Ethiopian market was special. The company had therefore opened discussions with the government as it continues consolidating its presence in East Africa. The paint maker also has plants in Arusha, Tanzania and Kisumu, Kenya.

Crown Paints described its Sh300 million ($3.4 million) investment in the Tanzanian factory as part of its strategy to increase regional market income and reduce its reliance on its Kenya, a market accounting for 92 percent of the paint maker’s total sales.

The new Tanzanian plant, which will be funded through debt, will be fitted with the capacity to produce one million litres of paint per month.

The company will from August spend Sh263 ($3 million) to establish a manufacturing plant in Kisumu as a supply base of economy grade paints for the Great Lakes market.

http://www.ventures-africa.com/2014/06/crown-paints-to-spend-8m-on-setting-up-ethiopia-plant/

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Authority signs agreement to build 20km roads with over 1 bln birr

Addis Ababa City Roads Authority (AACRA) on Thursday signed contract agreements with 5 contractors for the construction of 20km asphalt roads at a cost of more than 1.1 billion birr.
AACRA signed the agreement with CRBC Addis Engineering plc, Yemane Girmay General Contractor, Macro General Contractor Trading Plc, Aser Construction plc and Melcon Construction.Engineer Fekade Haile, general manager of AACRA and heads of the contractors signed the agreement at a ceremony held at the authority’s head office.
Engineer Fekade on the occasion said the 20km asphalt roads to be built by the authority would link Arabsa, Yeka Abado and Tulu Dimtu condominium sites with main roads.The cost for the construction of the roads will be covered by the Addis Ababa City Administration, he said.
According to the manager, the contractors will begin the construction of the roads within the coming 15 days and finalize them on February 2015.

The construction of the roads would create 10,000 jobs, it was learnt.

http://www.waltainfo.com/index.php/explore/13936-authority-signs-agreement-to-build-20km-roads-with-over-1-bln-birr

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Tullow Oil To Begin Kenyan Oil Production In 2017

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VENTURES AFRICA – Tullow oil has placed a 2017 time frame, in line with the government’s target, to commence oil production after describing the oil as that of a “high quality and of international marketable standard.”

“The government of Kenya is looking forward to have its first oil in 2017,” said Tullow’s CEO, Paul McDade.

Having discovered eight commercially viable wells in Kenya since 2012, the British company can sell part of its stake in Kenya oil blocks to potential buyers from Europe and eastern part of the world.

To meet its 2017 target, the company has to construct a 1,330km underground heated pipeline between Holma in Uganda and Lamu through Lokichar in Kenya. This will ease transportation of Kenyan and Ugandan oil through a single pipeline.

“The quality of oil Uganda and Kenya has are compatible and can pass through the same pipeline” said Tullow vice president, for south and east Africa, Gary Thomson.

President Uhuru Kenyatta has set this plan rolling by inviting locals to buy a stake in the pipeline in other to get the full value of the infrastructure.

“We have started working with 50km corridor which will narrow to 2km and later 200m” Mr Thomson disclosed.

http://www.ventures-africa.com/2014/06/tullow-oil-to-begin-kenyan-oil-production-in-2017/

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

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

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

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

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

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

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

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

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

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

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

What Is Geothermal Energy?

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

Opening the Door to Private Investment

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

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

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

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

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

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

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

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

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

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

Potential for Growth in Energy

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

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

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

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

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

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

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

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

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

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Will Electricity Generate an Economic Renaissance?

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

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

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

 

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

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President Obiang Asks for Greater Investment in Agricultural Sector

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Equatorial Guinea’s President, Obiang Nguema Mbasogo said that Africa should reorient itself to ensure its independence and security of African states through the safe production of its own consumer goods.

“Africa cannot be content to continue with the current dependence on the economies of the developed world. Africa is sailing upstream against a dependency that prevents them from moving toward sustainable development. Africa should rethink its relationship with the developed world to reduce as far as possible the gap that prevents access to development,” said Obiang.

“The development of agriculture can greatly reduce this dependence,” he said. “Africa can ensure food security and significantly reduce hunger in our countries. Africa should heavily invest in agricultural development to transform itself in order to accelerate growth to increase production and productivity,” said Obiang.

According to a press release African Press Organization sent to WIC, President Obiang proposed to the African Union the establishment of a program that focuses on the organization and exploitation of markets to promote trade and food security and to eradicate hunger, malnutrition and rural poverty. This will also reinforce the fight against climate change and agriculture.

He said that Equatorial Guinea is already investing in its agricultural sector. “As part of our diversification plan, Equatorial Guinea currently focuses on [agricultural] production to achieve these goals. It is imperative to ensure the security and stability of our states, since agriculture is the most vulnerable sector in times of instability, war and terrorism.” said Obiang

“It’s no coincidence that this session focuses on the issue of agriculture and food security in Africa. We cannot talk about the development of Africa if there is no agricultural development to ensure food security and avoid lifelong dependence on imports of consumer products.”

He noted that Africa counts on the support of organizations focused on agriculture and ways to improve the sector, and urged continued support for those organizations.

“The African Union must recognize and financially support the structures of non-governmental organizations, businesses and institutions created in Africa to support agriculture, such as the New Partnership for Africa’s Development (NEPAD).”

Obiang linked democratic and economic development. “Africa must contribute to a democratic development aimed at achieving economic development of society and the welfare of its citizens. It must be a democracy that seeks conflict reduction, he said.”

Obiang also urged his fellow Africans to prioritize South-South cooperation, a cooperation that respects the principles of equality.
“The last decade has marked considerable advancements of the African states. Many of them aspire to economic emergence in the near future. Nonetheless, the continent continues to be a victim of endemic diseases and insecurity that require a unified solution of the states.”

Obiang said it was a great honor for Equatorial Guinea to host the 23rd African Union Summit at “a moment that is crucial for the world nations as they struggle to find solutions to economic crises, security, hunger and poverty, and climate change that affect the world.” He said,  “The participation of the heads of state and numerous guests in this summit shows the interest and commitment that Africa and its partners have to find solutions to current issues.”

A session on agriculture and food security under the slogan “Transforming Africa’s Agriculture, for Shared Prosperity and Improved livelihoods, through Harnessing Opportunities” was held in the afternoon.

http://www.waltainfo.com/index.php/editors-pick/13967-president-obiang-asks-for-greater-investment-in-agricultural-sector

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Bank Loan Approved for Ethiopia-Djibouti Link Road

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The road is part of the fourth Road Sector Development Program, which has been ongoing since July 2010

Downtown Dire Dawa

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The Budget & Finance Standing Committee tabled the bill for the loan approval to asphalt the 210km gravel road to the committee on June 2, 2014.  The standing committee discussed the bill with three experts from the Ministry of Finance & Economic Development (MoFED) and one expert from the Ethiopian Roads Authority (ERA) on June 12, 2014.

The road, which will have a 15m wide carriageway in the town section and 1Om carriageway in the rural section, is to be constructed by the CGC Overseas Construction Group LTD (CGCOC) – a Chinese company which has been operating in Ethiopia since 2003. Previous CGC projects include a 22km asphalt road from Chole-Magna in the Arsi Zone of Oromia and the Dodola Junction-Goba and Dera-Gololcha Mechara roads, both in Oromia.

“The company will construct the road because it came with the deal of finance from the Chinese bank,” said Samson Wondimu, communications head at the ERA.

The consultant is yet to be selected.

The road will strengthen the economic linkage between Ethiopia and Djibouti, and will help to transport raw materials and finished products from the industrial zone to be constructed at Dire Dawa. It will also simplify the traffic flow of the route, according to Samson.

Construction will begin in September 2014. The loan, payable in 20 years, has a two percent interest and a seven year grace period.

This road is part of the fourth Road Sector Development Program (RSDP IV), which has rehabilitated, upgraded, constructed and maintained 41,664km of roads since it was implemented in July 2010 up to June 2013, at a cost of 81.8 billion Br, of which 60.6 billion Br was on federal roads. Ethiopia’s road density has increased from 24km in 1997 to 78Km in 2013, with total roads growing from 26,550km to 85,966Km during the same period.

http://addisfortune.net/articles/bank-loan-approved-for-ethiopia-djibouti-link-road/

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House Ratifies 691 Million USD Loan Agreements

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The House of People’s Representative yesterday ratified six loan agreements for a total of 691 million USD credit signed with various international organizations.

The credit accords were signed to finance road projects, to expand basic infrastructures in urban areas and job creation.

The first agreement the parliament ratified was the 380 million USD credit accord signed with the International Development Association to enhance industrial development.

The other agreement ratified by the parliament was the 187 million USD credit secured from the China import- export bank to finance the Dire Dawa-Dewale road at the eastern part of the country.

The 100 million USD loan signed with the Korea Import- Export Bank for construction of the Mojjo-Hawassa Road, is another agreement ratified yesterday.

The parliament has also ratified the 33 million USD loan secured from the OPEC Fund and Arab Bank to finance the second phase of the Arbereket-Gelemso Micheta road project.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2287:house-ratifies-691-million-usd-loan-agreements&Itemid=219

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Oilseed overtakes coffee as Ethiopia’s top export earner

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Export of oilseeds has become the biggest foreign exchange earner for Ethiopia overtaking coffee, the country’s number one export item for decades.
A ten-month performance report obtained from the Ministry of Trade (MoT) reveals that Ethiopia obtained just under 585 million USD from export of oilseeds, knocking coffee off its perch for the first time. In contrast, coffee generated 489.28 million USD during the same period.

The country exported over 404 thousand tons of oilseeds during the first ten months of the budget year, a rise of over 10 per cent compared to the same period last year. The revenue obtained also showed a growth of 52 per cent compared to the same period last year.

The achievement is over 95 per cent of the revenue the ministry projected to obtain during the period.
However, the picture is rather gloomy for coffee. The ministry projected to obtain 822.08 million USD during the first ten months but achieved about 60 per cent of the target.

When compared to the previous budget year, export performance of coffee in the first ten months of this budget year showed a decline of 8.7 per cent and 15 per cent in amount exported and revenue generated, respectively.
The overall export performance saw the country earn 2.6 billion USD during the ten months of the budget year, registering a growth of 4.8 per cent from last year.

http://www.waltainfo.com/index.php/explore/13969-oilseed-overtakes-coffee-as-ethiopias-top-export-earner

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Ethiopia: Africa’s Third Largest Recipient of Foreign Direct Investment

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The report, released last Tuesday, also indicates the FDI flows to southern Africa almost doubled

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Brunno Casella of UNCTAD, (right) with James Wakiaga, economic advisor at UNDP Ethiopia, on launching the UNCTAD World Investment Report on June 24, 2014.

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The World Investment Report released on Tuesday, June 24, 2014, revealed that Ethiopia was the third largest recipient of foreign direct investment (FDI) in Africa in 2013, with a 240pc increase from the amount in 2012. The country has also registered a significant increase in their Foreign Direct Investment (FDI) stock – the amount of investment from aboard held within the economy.

The report released last Tuesday, June 24, 2014, by the economic think tank, United Nations Conference on Trade & Development (UNCTAD), stated that the FDI inflow to the country had reached 953 million dollars in 2014, up from the 279 million dollars it was in the previous year.

Its foreign direct investments inward stock also reached close to 6.1 billion dollars in 2013, up from 941 million dollars in 2012.

The net sales value of cross border merger and acquisition (M & A) in the country has also increased by more than double to 366 million dollar in 2013, from 146 million dollars in 2012.

Though the amount of FDI inflow in the form of M & A has increased a considerable amount in the year, the major part of the country’s investment inflow comes from green field projects, according to the report.

The country was a destination for foreign investment projects worth 4.5 billion dollars, which is a dramatic performance increase from the 441 million dollar value of green field investment projects the country hosted in 2012.

On the regional basis in Africa, which increases its share of reception by five percent, the East and the South showed a significant increase as recipients of investments from foreign sources. The flows to Southern Africa almost doubled to 13 billion dollars, mainly due to record high flows to South Africa and Mozambique, while the inflows to Ethiopia and Kenya lifted the regions FDI by 15pc to 6.2 billion dollars, the report finds.

“Ethiopian industrial strategy may attract Asian capital to develop its manufacturing base,” it reads.

Investment in light manufacturing from China, Turkey and India has the major share in the increase of the amount of foreign investment into Ethiopia.

With a continuing significant increase of the inflow this year, the robust economic growth and the growing middle class of Ethiopia, has contributed to the attractiveness of Ethiopia as a preferred destination of cross boarder investors, said Bruno Casella from UNCTAD, who presented the major findings of the report on Tuesday while announcing its official release.

“Ethiopia is closer to FDI than other parts of Africa,” he said.

Two days after the release of the UNCTAD’s report, the International Monetary Fund (IMF) Staff Mission on the 2014 Article IV Consultation with Ethiopia has also released a statement confirming the findings of the world investment report.

“Strong external loan and higher foreign direct investment allowed for a modest increase in gross international reserves,” says the statement, which also predicts the real gross domestic product (GDP) of the country between eight and 8.5pc for 2013/14 and 2014/15.

The current 1.5 trillion global FDI inflows is projected to rise to 1.6 trillion dollars in 2014, 1.75 trillion in 2015 and 1.85 trillion in 2015, according to the report.

http://addisfortune.net/articles/ethiopia-africas-third-largest-recipient-of-foreign-direct-investment/

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Institute to Equip Market with 100,000 Trained Manpower

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The Ethiopian Textile Industry Development Institute (ETDI) announced it is preparing to supply up to 100,000 trained personnel by the coming year.

According to Bantihun Gesesse, ETDI’s Public Relations and Communication Director, there is an increase in the number of investors that are engaging in the textile industry. He furthered, the figure today stands today at 130 textile factories.

Explaining the need for the trained personnel the communication director said the textile factories need sufficient well trained manpower. To achieve this technical and vocational institutions are supplying the market with manpower for facilities that are in their localities.

Bantihun further noted there are 145 instructors of technical and vocational institutes that were trained as trainer of trainers. In addition to this over 1,360 received a basic tailoring and other types of training.

According to Bantihun, during the past 11 months of the current fiscal year Ethiopia has received total revenue of U.S $ 103 Million from exporting textile and garments. He added this shoes an increase of 10 percent when compared to the same period of last year.

http://www.2merkato.com/news/alerts/3086-institute-to-equip-market-with-100000-trained-manpower

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Nation to Establish Parks to Produce Value Added Agricultural Products

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The Ministry of  Industry announced that it is conducting an assessment to establish integrated agriculture and industry parks to produce value added agricultural products.

The State Minister, Dr. Mebratu Melese told ENA that the parks which will have industries will be established in main growing areas. The assessment is needed to identify areas that are main growers of cash crops and fruits and vegetables.

The industries will be established in areas that are main growers of sugarcane, fruits and vegetables, sesame and coffee, among others.

The parks are expected to be established in the coming budget year, he said, adding, it will be one of the priority areas in the second phase of the growth and transformation plan.

The assessment is being conducted in collaboration with the government of Italy and UNIDO.

Dr. Mebratu said it is important for Ethiopia to export value added agricultural products. Establishing companies which will engage in this area is fundamental in this regard.

Establishing integrated agriculture and industry parks, which include construction of industries, will help the country’s effort to export value added agricultural products. Establishing these is one of the measures taken by the government to promote the area.

The country is losing ‘huge’ amount of foreign currency because of the country’s dependence on only raw output export, he said.

The government is trying to fill this gap by establishing industries in main cash crop producing areas and promote private investment, Mebratu added.

Establishing such kind of industries near farms will help farmers get access to sustainable income source and industries get inputs sustainably.

The industries will also create jobs for local communities and infrastructure will be developed in those areas.

“Establishing the industries will have two benefits, first the farmers will have access to reliable and sustainable market. Second, the industries will produce value added products. More jobs and enterprises will also be established through time.”  he said.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2297:nation-to-establish-parks-to-produce-value-added-agricultural-products&Itemid=200

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Seven Sugar Factories to be Operational Next Year

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The Ethiopian Sugar Corporation announced that seven of the 10 sugar factories set to be planted during the five-year growth and transformation plan period will be fully operational at the end of coming fiscal year.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2296:seven-sugar-factories-to-be-operational-next-year&Itemid=200

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Indian meat processor to build plant in Ethiopia

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An Indian company with interests in food production, marine products, retail and pet foods will start construction of its meat processing and exporting plant in Ethiopia in the beginning of July.

http://www.daijiworld.com/news/news_disp.asp?n_id=244902

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Close to 22,500 Condos Handed Over to Addis Ababa Residents

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