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China thinks manufacturing clothes is so last decade.

As labor costs in the “world’s factory” continue to rise dramatically, global fashion brands are looking elsewhere to source apparel. In addition to established hubs like Bangladesh and Vietnam, the garment game is ripe for new players: Myanmar (Burma), Haiti and Ethiopia, among others, are looking to rejuvenate a once-thriving trade or even build one entirely from scratch.

China will shed approximately 85 million manufacturing jobs in the coming years, which, some development experts say, could be a golden opportunity for economic development à la South Korea. The standard narrative: Start at the bottom with low-skill, basic textile manufacturing (like T-shirts) and work your way up to more complex garments (like suits), then to more complex goods like electronics. Improved quality of life and a rising consumer class will naturally follow, creating sustainable and natural growth.

As in China, garment assembly will then be seen as low-brow. “You don’t make tanks out of textiles,” says Derek Scissors, a scholar at the American Enterprise Institute.

But whether China’s successors can actually follow the “textile to tank” model is a point of serious contention. Some argue that new entrants can survive only by offering the lowest costs — read: unlivable wages and minimal, if any, rights. Footloose garment brands, apt to flee to wherever labor costs are lowest, make nurturing an industry with highly skilled workers, robust infrastructure and effective legislation extremely difficult.

It’s harder to unlearn bad habits, so the best shot at a sustainable industry may be Ethiopia, which is essentially a blank slate. Despite dire infrastructure shortcomings, Ethiopia’s access to a continental market with six of the 10 fastest-growing economies and one of the world’s largest cattle (leather) stocks makes “China 30 years ago” an attractive long-term investment. The Chinese and Turkish certainly seem to think so. Huajian Shoes and Akya Tekstil, two of the world’s largest apparel makers, are planning multibillion-dollar “apparel-cities” fit for up to 60,000 workers and 50 different manufacturers each.

H&M, the Swedish apparel giant, has staked an early claim in Ethiopia as well. By partnering with nonprofit Swedfund, they’re championing a “responsible” way forward with three new sustainable factories, and growing. The move to set an ethical foundation in a new entrant mirrors that of Gap in Myanmar this past June. Once called an “outpost of tyranny” because of its brutal military dictatorship, Myanmar underwent vast democratic reforms in 2011; stifling economic sanctions from the West were eased a year later. Now the country’s garment industry is on track to bring in $1.7 billion of export revenue in 2014 — compared with $900 million in 2012.

And companies are doing it, supposedly, with a conscience. By partnering with USAID and local NGOs, Gap is trying to avoid the plunder-and-bail reputation of the garment industry. “We want to lend resources in such an important time for the country,” to set a precedence of humane working conditions and work with the government to build institutions to protect best practices, Debbie Mesloh, Gap’s senior director of government and public affairs, told OZY.

But some are calling BS … literally. “There’s a great deal of bull in the world of corporate social responsibility,” says Scott Nova, director of the Worker Rights Consortium. “The idea that a brand would move into a country to make the world a better place is absurd. They do it because it’s cheaper,” he says.

Indeed, according to the country’s own manufacturers association, Burmese workers make as little as $30 per month, below the World Bank’s $1.25/day poverty threshold. And early reports show Ethiopian garment workers earn between $37 and $53 per month, making them the world’s two lowest paid (Bangladeshi workers earn approximately $68).

Few can ignore the data, but some experts argue that low wages — once a characteristic of all now-developed economies, most recently Taiwan, South Korea and Hong Kong — are a necessary initial sacrifice to attract investors. If job seekers voluntarily choose to work for low wages in a factory, that means it’s the best of a series of bad options, says Benjamin Powell, director of the Free Market Institute at Texas Tech University. “If we were to impose laws on these countries mandating higher pay and working conditions, it would take away the very reason companies chose to come there, thus leaving them trapped in an even worse poverty,” he told OZY.

In Haiti, where 80 to 90 percent of its exports come from apparel, there’s some hope for development with labor standards. Conditions in Haiti have improved significantly, argues Arianna Rossi, research and policy officer at Better Work, an arm of the International Labour Organization that specializes in the garment industry. The minimum wage was raised in May of this year to $5 a day and Better Work’s most recent report shows factories are complying almost across the board — 37 percent are even receiving at least $6.75.

To be sure, garment hasn’t proven the jobs creator it was touted to be. A 2-year-old industrial park in northern Haiti, Caracol, financed to the tune of $124 million by the U.S., has led to only 3,000 jobs, instead of the projected 60,000. That’s despite duty-free access to the United States via the HOPE II trade agreement and serious promotion from the State Department, former Secretary of State Hillary Clinton and former President Bill Clinton.

Still, companies are coming to the realization that “treating workers better is good for business,” Rossi says, citing a Better Work research project as proof of concept.

Experts like Nova aren’t sold. For one, if the garment industry was a way out of poverty, wages shouldn’t have declined over the past decade across the world and, on average, constitute about a third of a “living wage.”

Whether the garment industry is good for national and individual economic development or not, countries like Haiti, Myanmar and Ethiopia are rolling out the red carpet for fashion’s name brands. If they’ll have buyers’ remorse remains to be seen.

Sourced here  http://www.usatoday.com/story/money/business/2014/10/27/ozy-garments-not-made-in-china/17999231/

Regional integration has been a core element of African countries’ development strategies since their independence. The Africa-wide development agenda, as championed by the African Union (AU), is based on regional integration and the formation of an African Economic Community (AEC). This was laid out in the 1980 Lagos Plan of Action for the Economic Development of Africa and the Abuja Treaty of 1991. The Africa regional integration roadmap considers the Regional Economic Communities (RECs) as the building blocks of the AEC. The AEC is to be formed in six phases over 34 years, as outlined below.

At its 18th Ordinary Session in January 2012 in Addis Ababa, on the theme “Boosting Intra-African Trade,” the Assembly of Heads of State and Government of the AU adopted a decision and a declaration that reflected the strong political commitment of African leaders to accelerate and deepen the continent’s market integration. The Heads of State and Government agreed on a roadmap for establishing a Continental Free Trade Area (CFTA) by the indicative date of 2017.

As highlighted in the roadmap, the CFTA is set to build on the Tripartite FTA negotiations, which would create a free trade area among the 26 countries of the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC).  Since the formal launch of the negotiations in 2011, significant progress has been made, and leaders have expressed confidence that the negotiations will be successfully concluded by the end of 2014, with the agreement to be fully implemented by 2016.  The 26 Tripartite countries represent close to 60 percent of the AU’s GDP and population, and an FTA among them would constitute a fundamental building block for the CFTA.

The 18th AU Summit in early 2012 opened the discussions on a second bloc of combined RECs (ECOWAS, ECCAS, CEN-SAD, and AMU) to emulate the TFTA. Initial consultations took place in April 2013, and the first negotiation meeting on the second bloc occurred in December 2013. A formal Memorandum of Understanding outlining how decisions will be made and establishing coordination mechanisms still needs to be signed, along with the launching of work on technical studies and key institutional preparatory work on the formation of this second bloc.

Rationale for a CFTA

During its 19th Ordinary Session in July 2012, the AU adopted a decision that highlighted the gains from the CFTA for intra-African trade, through the High-Level African Trade Committee and the consultations of the Committee of Seven Heads of State and Government, which addresses the challenges of intra-African trade, infrastructure and productive capacities.

The creation of a single continental market for goods and services, with free movement of business people and investments, would help bring closer the Continental Customs Union and the African Common Market envisaged in phases 4 and 5 and turn the 54 single African economies into a more coherent, larger market. The larger, more viable economic space would allow African markets to function better and promote competition, as well as resolve the challenge of multiple and overlapping RECs, helping thereby to boost inter-REC trade. Moreover, the sheer size of the single market would provide a more conducive environment for industrial diversification and regional complementarities than what is viable under existing individual country approaches to development.

The United Nations Economic Commission for Africa (UNECA) calculates that the CFTA could increase intra-African trade by as much as $35 billion per year, or 52 percent above the baseline, by 2022.  Imports from outside of the continent would decrease by $10 billion per year, and agricultural and industrial exports would increase by $4 billion (7 percent) and $21 billion (5 percent) above the baseline, respectively. If coupled with complimentary trade facilitation measures to boost the speed and reduce the cost of customs procedures and port handling, the share of intra-African trade would more than double over the baseline, to 22 percent of total trade by 2022.

Looking at the potential impact on the EAC for instance, one can see the potential for significant gains from a CFTA. Despite significant increases in intra-community trade within the EAC, the levels of trade between the EAC and other African countries, particularly those outside of the Tripartite area, remains limited.  There has been renewed interest in expanding trade and investment links further afield.  For example, Nigeria – which officially became the largest economy in Africa in 2014 – and the ECOWAS sub-region could present a significant export market for EAC businesses.  In 2012, EAC exports to ECOWAS amounted to $132 million, for a market of close to 300 million people.  West Africa currently relies on extra-African imports of coffee and tea, and the EAC could be in a position to tap into this market, if high tariffs and weak transport links can be addressed.  In May 2014, Kenya and Nigeria signed trade pacts aimed at deepening trade ties, following high-level political meetings and several large Nigerian business delegation visits to East Africa.  Trade with neighbouring Central African States (ECCAS) has shown significant growth, with exports to the region expanding by close to 40 percent between 2010 and 2012, from $1.2 billion to almost $1.7 billion.[1]  The CFTA would further open doors to West and Central Africa, through the reduction and eventual elimination of tariffs and improved trade facilitation and infrastructure.

Current Status of the CFTA

The January 2014 AU Heads of State meeting reaffirmed the commitment to the CFTA roadmap, and highlighted the need to launch the CFTA negotiations in 2015.

The second meeting of the Continental Task Force on the CFTA took place in Addis Ababa in early April 2014. The meeting put forward draft objectives and guiding principles for negotiating the CFTA, which were presented to the Extraordinary Session of the Conference of AU Ministers of Trade (CAMOT) in Addis Ababa between April 23 and 28 this year. The session was attended by officials from member states, six RECs (including the EAC), and private sector organisations (East African Buisness Council, CBC, Federation of West African Chambers of Commerce).

Key recommendations from the ministers included the following:

• The AU Commission should prepare Draft Terms of Reference of the CFTA-Negotiating Forum based on best practices in the RECs and/or the Tripartite FTA and submit a draft for discussion at the next meeting of senior trade officials.

During the June AU Heads of State Meeting in Malabo, the High Level African Trade Committee (HATC) called on member states to maintain the momentum in the CFTA time table, and authorised trade ministers to meet as often as needed to ensure the launch remains on track.

The Role of RECs

Even though member states have the sole mandate to negotiate and agree to international trade agreements, the RECs can play an important role in facilitating the negotiations and building national-level capacity and ownership, especially if the CFTA structure is to build on the Tripartite FTA as well as ECOWAS and ECCAS FTAs (CFTA acquis).

In terms of the implementation strategy for the broader Boosting Intra-African Trade (BIAT) initiative, the April Extraordinary Session of the CAMOT recommended the following:

• The AU Commission, REC Secretariats and UNECA should continue their consultations with all Member States in order to ensure ownership;

• There is need for more coordination between AUC and RECs including the exchange of information on integration so that regional processes will feed into continental processes;

• Member States and REC Secretariats should designate national and regional focal points and establish the technical working groups for the BIAT/CFTA in line with the July 2012 Summit Decision.

Opportunities and challenges

Negotiating an agreement of this magnitude will be an enormous undertaking, and will require the political will of leaders across the continent. Important issues to be considered include:

• The AU includes many smaller least-developed countries, as well as economic powerhouses such as Nigeria and South Africa. It will be important that the CFTA negotiating framework allows for all member states to effectively participate and the negotiations reflect the interests of the poorest countries on the continent. Capacity building on the key technical issues will be a vital component to ensure all countries can effectively engage

The way forward

The meeting of trade ministers in December will be a critical milestone as the AU Commission will present key negotiating principles for consideration prior to the January 2015 High Level African Trade Committee, currently chaired by the President of Ghana, John Dramani Mahama.

To ensure the successful launch of the negotiations by June 2015, there will be a need for further thinking on the key technical issues and structure for the negotiations, as well as a concerted drive to engage with the private sector and the public at large across the continent to ensure this will not be just another Addis-driven “top-down” political exercise.

Author: Ilmari Soininen is a senior consultant with Saana Consulting and a grant officer with the DFID Trade Advocacy Fund.  He is based in Addis Ababa, Ethiopia. He can be reached on twitter @IlmariSoininen.

Sourced here  http://www.ictsd.org/bridges-news/bridges-africa/news/the-continental-free-trade-area-what-is-going-on

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Norway to Double Development Assistance to Ethiopia

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2418:norway-to-double-development-assistance-to-ethiopia&Itemid=260

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UNDP, Israel partner to enhance knowledge transfer for Ethiopia’s development

UNDP Ethiopia and Israel’s Agency for International Development Cooperation (MASHAV) are exploring a bilateral cooperation to help Ethiopia access technical knowledge and innovation in the fields of agriculture, entrepreneurship, private sector development and gender mainstreaming.

Ilan Fluss, Deputy Head of MASHAV said that: “The partnership with UNDP is very important one for MASHAV. UNDP is a central development partner. This agreement will enable MASHAV to transfer its expertise in areas such as innovation, entrepreneurship and food security in a more effective way for the benefit of the people of Ethiopia, a very important country for Israel. MASHAV will be happy to create more partnerships with other development partners.”

The embassy of Israel in Ethiopia has been working for the last year together with UNDP in the process that led to this signing.

Both MASHAV and UNDP seek to build upon and strengthen their existing development efforts which support Ethiopia to achieve its development agenda. Within this MASHAV-UNDP collaborative framework, support to Ethiopia will continue primarily on enhancing agricultural systems that add value to agricultural production thus fueling entrepreneurship and private sector growth.

This new bilateral cooperation will be guided by UNDP and MASHAV’s common focus on needs-driven and impact-oriented interventions through skills enhancements and facilitating technology transfers.

Ethiopia is one among 140 countries across the world where MASHAV is supporting capacity building efforts through training, study and exposure visits.

UNDP’s support to Ethiopia focuses on promoting partnerships, innovation and results in the areas of economic growth and poverty reduction, climate resilient green growth and democratic governance and capacity development.

“We are very happy to explore this new partnership initiative with MASHAV as it will help UNDP expand the scope and reach of development initiatives in Ethiopia, particularly given our shared focus on innovation and building resilience,” said UNDP Ethiopia Country Director Mr. Samuel Bwalya.

http://www.waltainfo.com/index.php/explore/15778-undp-israel-partner-to-enhance-knowledge-transfer-for-ethiopias-devt-

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East, Southern Africa To Launch Free Trade Zone

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VENTURES AFRICA – In a move that will certainly heighten regional trading and integration regionally and continentally, ministers from the regional blocs of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC) have endorsed the launch of a tripartite Free Trade Area (FTA).

This development arose from the recent Tripartite Sectoral Committee of Ministers in Burundi and the FTA is to be launched in December during the tripartite summit of Heads of State and Government in Egypt.

In a statement released after the meeting, the ministers released the economic configuration of the FTA saying it will encompass 26 member states from the 3 blocs, a total population of 625 million people and a GDP of $1.2 trillion which is roughly half of the membership of the African Union and 58 percent of the continent’s GDP.

“The Tripartite FTA popularly known as the Grand Free Trade Area, will be the largest economic bloc on the continent and the launching pad for the establishment of the Continental Free Trade Area (CFTA) in 2017. It offers significant opportunities for business and investment within the Tripartite and will act as a magnet for attracting foreign direct investment into the tripartite region. The business community, in particular, will benefit from an improved and harmonized trade regime that reduces the cost of doing business,” read the statement signed by Sindiso Ngwenya, COMESA Secretary-General and Chairperson of the Comesa-EAC-SADC Tripartite Taskforce.

Chairperson of the ministerial meeting, Chiratidzo Mabuwa, who is also the Deputy Minister of the Zimbabwean Ministry of Commerce and Industry described the agreement as a “milestone in regional and continental integration.”

In her words; “Africa has now joined the league of emerging economies and the grand FTA will play a pivotal role in the transformation of the continent. We have made significant progress in negotiations on trade in goods, and we now need to expedite negotiations on trade-related areas, including trade in services, intellectual property and competition policy to ensure equity, among all citizens of the wider region.”

All concepts of economic development in Africa point to regional integration as an important lever. The idea of “One Africa” has been in the works for decades especially because most of the continent’s markets are small and isolated by multiple trade barriers.

Regional economic blocs have a stronger voice continentally and internationally. If Africa can pool its resources together, countries that were hitherto small and weak can take bold steps on the global scene particularly in trade negotiations. With this Free Trade Area, Eastern and Southern Africa may be taking the critical first step in birthing One Africa.

http://www.ventures-africa.com/2014/10/east-southern-africa-to-launch-free-trade-zone/

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 Horn of Africa pipeline gets World Bank funds

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The World Bank is to pour millions of dollars into financing a planned oil pipeline to exploit discoveries in the Horn of Africa region.

The funds are just part of an $8bn financial assistance package pledged by the bank and other global financial institutions to improve the region’s business prospects and socio-economic conditions.

A joint trip by the World Bank, European Union, African Development Bank, African Union Commission, Islamic Development Bank and the Intergovernmental Agency for Development to the area this week laid out a road path to economic improvement in the region’s countries, according to upstreamonline.com.

The World Bank has itself pledged $1.8bn to boost economic growth, reduce poverty and spur business activity in the eight countries in the region, including the major oil producers of Sudan and South Sudan. Emerging hydrocarbons nations Uganda and Kenya are also included, as are Somalia, Eritrea, Ethiopia and Djibouti.

The World Bank’s private sector arm, International Finance Corporation , will provide $600m, some of which will go towards funding the pipeline linking Uganda and Kenya.

The pipeline has been planned for some time, with the Kenyan coastal town of Lamu to host export facilities.

“A new World Bank Group paper forecasts that the Horn will undergo dramatic and lasting change when oil production starts in Kenya, Uganda, and possibly Somalia and Ethiopia,” the bank said in a statement.

The EU will provide some $3.7 bn in funding up to 2020, with the African Development Bank chipping in $1.8bn and the Islamic Development Bank pledging up to $1bn to its four member countries of Sudan, Somalia, Djibouti and Uganda.

http://www.punchng.com/business/energy/horn-of-africa-pipeline-gets-world-bank-funds/

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Chinese Company to Build Road for Omo Kuraz Sugar Factory

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A 79-kilometer asphalt road which would help to transport the products of Omo Kuraz Sugar Factory is going to built with 1.66 billion birr.   

The Chinese company Sino Hydro Corporation concluded an agreement today with the Ethiopian Roads Authority to construct the road.

Speaking during the signing ceremony, ERA Director-General Zaid Woldegebriel said the new road would be built in South Omo Zone where there is no infrastructure.

Besides helping to move the products of the sugar factory, the new road will stop the traffic movement around Mago National Park thus protecting the wild animals in the vicinity.

The road will also link many kebeles and villages in the zone, it was indicated.

According to Zaid, Sino Hydro has a respectable record for carrying out over 10 projects during its decade long stay in Ethiopia.

The Chinese company has agreed to complete the road within two years .

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2411:chinese-company-to-build-road-for-omo-kuraz-sugar-factory&Itemid=260

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Tourism master plan to help Ethiopia be top tourist destination:IGAD

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Ethiopia would be one of the top five tourist destination countries in Africa if it properly implements the Sustainable Tourism Master Plan, being formulated to boost the sector, IGAD said.

The master plan would help the nation to realize its goal of becoming one of the top five tourist destinations by 2020, advisor to the preparation of the master plan at IGAD Dr Ray Muntida told ENA.

The master plan tabled yesterday for discussion to gather additional inputs to be incorporated in the draft sustainable tourism master plan (STMP).

The STMP is an initiative currently being developed through the technical support provided by the Sub-Regional Office for Eastern Africa (SRO-EA) and the Division for Regional Integration and Trade (RITD), in partnership with the Ministry of Culture and Tourism.

He expressed hope that the nation would achieve the target before the deadline because of its stability, fast economic growth and interlink between the master plan and growth and transformation plan of the country.

The nation needs to continue the infrastructure development and the strong commitment of the government and the private sector to realize the goal, he noted.

The master plan is part of the on-going process of the implementation of the Inter-Governmental Authority on Development (IGAD) sustainable tourism master plan (STMP).

Ethiopia is the first country in the bloc to prepare national master plan, he added, Uganda is expected to be next in preparing a national master plan.

ECA has covered the cost for the formulation of the national master plan, in which the process has entailed extensive field missions across the country, in-depth interviews with key stakeholders drawn from various sectors including public, private, professional organizations, civil society, regional government officials and academia.

The IGAD STMP was informed by a regional tourism study commissioned by UNECA, SRO-EA in 2010 and the green light for its formulation approved at the 15th meeting of the Intergovernmental Committee of Experts (ICE) of SRO-EA that took place in Djibouti, between 21st to 24th February 2011, whose main focus was on tourism under the theme Towards a Sustainable Tourism Industry in Eastern Africa.

The IGAD STMP has since been completed and was officially launched the IGAD Tourism Inter-Ministerial forum held in Nairobi, Kenya last year.

The tourism industry in Ethiopia is identified as a key sector in both the 1st and 2nd Growth and Transformation Plans of the country.

The identification of the sector as such is due its strong potential to bring about meaningful socio-economic development owing to the fact that such potential remains largely untapped. For instance, in terms of the prevailing cultural and heritage resources, the country is ranked at position 33 globally, above Egypt which is ranked 39th, and is regarded as one of the safest countries in the world.

Yet, despite its current challenges, Egypt continues to draw over 9 million international tourist arrivals annually compared to the country’s 550 000 as of last year. Nonetheless, the industry still contributes 12.3 percent of the GDP, is a leading foreign exchange earner and a key sector for both domestic and foreign investment valued at 16.38 billion Birr in 2013.

The industry is also a one of the leading employers generating over 2.4 million jobs both directly and indirectly.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2415:tourism-master-plan-to-help-ethiopia-be-top-tourist-destinationigad&Itemid=260

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ECA becomes 3rd largest UN duty station

 

A new office facility, that makes ECA the third largest UN duty station after New York and Geneva in terms of building portfolio, inaugurated today at the ECA compound in Addis Ababa.

The facility will house UNOAU, UNAMID, UNICEF, UNOPS, WHO and UNHCR representation to the African Union Commission and ECA.

Speaking on the occasion Ethiopian Prime Minister Hailemariam Dessalegn noted that the continent was struggling against colonialism and apartheid during the establishment of ECA in 1958, Africa is now witnessing development.

Today, Africa has liberated itself from colonialism and embarked upon an era of development, stability and good governance, he noted.

“It is for this reason that I am hopeful that this building would herald the consolidation and realization’ of this new chapter- an era of African Renaissance.” he said.

“Africa is now in a new beginning, as is witnessed in the good performance of many African economies” he added.

Despite the progress, Africa still faces major challenges related to its ‘institutional weakness’, he added, the Ebola crisis is an example.

He expressed view that an ‘effective’ support from the international community would help Africa attain development.

“I am of the view that with a more effective international partnership for development, Africa has a great possibility in attaining its renaissance.”

In his keynote speech, UN Secretary-General Ban Ki-Moon on his part said the opening of the new facility would help to bring the UN staff together thereby harmonize UN operations, saying “Most of all, it means the United Nations is better placed to deliver better results.”

“With the completion of the new facility, we take an important step towards a future of dignity, prosperity and peace.” Ban said.

Noting the ECA compound has a rich history, the Secretary-General said Africa Hall, a gift from Ethiopia upon establishment of the ECA in 1958, has seen memorable events, including the founding of the Organization of African Unity more than half a century ago.

“Thanks to this new facility, we have been able to cater for growing demand for office space and increase the number of staff working in the compound to more than1, 000.” said Executive Secretary of ECA, Carlos Lopes.

Although, the facility wouldn’t allow bringing all UN staff into the compound, it will house UNOAU, UNAMID, UNICEF, UNOPS, WHO and UNHCR representation to the African Union Commission and ECA, he added

Ethiopia has donated the building at the current ECA compound, known as Africa Hall for the ECA upon its establishment in 1958.

Established as one of the UN’s five regional commissions, ECA’s mandate is to promote the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa’s development.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2408:eca-becomes-3rd-largest-un-duty-station&Itemid=260

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Dr. Tedros visits Kuwait over the weekend

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Foreign Minister, Dr. Tedros Adhanom, led an Ethiopian delegation including the Ministers of Finance and Agriculture to Kuwait over the weekend.

Dr. Tedros delivered the “Food Security Project Proposal” from Prime Minister Hailemariam Desalegn to Sheikh Sabah Al-Ahmed Al-Jabir Al-Sabah, Amir of the State of Kuwait, in accordance with the discussions the two leaders had held at the Africa- Arab Summit last year.

The Amir welcomed the proposal, noting that food security was crucial to Ethiopia, to Kuwait and to the international community.

Dr. Tedros congratulated the Amir of the State of Kuwait in his designation in September as a ‘Humanitarian Leader’ by the United Nations Secretary General and of the State of Kuwait as a ‘Humanitarian Center’.

Dr. Tedros said the Amir and Kuwait which allocates 1.3% of its GDP to humanitarian aid, fully deserved the recognition, noting their support to the socio-economic development of Africa and of Ethiopia.

Dr. Tedros said Prime Minister Hailemariam was keen to boost socio-economic partnership with the State of Kuwait.

The Amir confirmed that Kuwait would remain committed to support the socio-economic efforts of Ethiopia to tackle poverty.

During his visit Dr. Tedros and his delegation also met with Sheikh Sabah Khalid Al-Hamad Al-Sabah, First Deputy Prime Minister and Minister of Foreign Affairs.

Sheikh Al-Sabah appreciated the role of Ethiopia in working for peace and stability in the Horn of Africa and welcomed the positive dialogue between Ethiopia, Sudan and Egypt concerning Grand Ethiopian Renaissance Dam.

He expressed interest in starting preparations for the joint Ministerial Commission meeting, and also explained he was ready to support efforts of the Kuwait private sector to utilize investment opportunities available in Ethiopia.

During the visit to Kuwait, Ethiopia’s Minister of Finance, Sofian Ahmed, and Minister of Agriculture, Tefera Derbew, held talks with the Directors of the Kuwait Fund for Arab

Development and the Investment Authority as well as the Kuwait Ministers of Finance, Oil and Agriculture on food security and socio-economic development.

http://www.waltainfo.com/index.php/editors-pick/15764-dr-tedros-visits-kuwait-over-the-weekend-

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Japan to strengthen support to Ethiopia’s development endeavors

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Japanese Prime Minister Shinzo Abe said his country will strengthen the support it extends for the development endeavors of Ethiopia.

While receiving Speaker of the House of Peoples’ Representatives of Ethiopia, Abadua Gemeda, the Premier said Japan will continue to support Ethiopia’s efforts towards development through JAICA and other international agencies.

Commending Ethiopia’s efforts in building lasting peace in the Horn of Africa, Prime Minister Abe said Japan will continue to extend support to this end.

Remembering the talks with Prime Minister Hailemariam Dessaegn on the sideline of the recent UN Summit in New York, Abe said his government will work to further deepen the bilateral ties between Ethiopia and Japan.

The Prime Minister said his government will consider the request from the Ethiopian government to host the 6th Tokyo International Conference on African Development scheduled for 2016.

Lauding Japanese support extended to Ethiopia’s development activities, Speaker Abadula requested Japan to enhance the support it provides for the successful implementation of Kaizen in Ethiopia.

He also requested for increased Japanese support to Ethiopia’s efforts to ensure durable peace and stability in the area.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2414:japan-to-strengthen-support-to-ethiopia’s-development-endeavors&Itemid=260

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Ethio-South Korea relation deepening

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President Dr Mulatu Teshome said that the bilateral relationship between Ethiopia and South Korea has been growing.

While discussing with departing South Korean Ambassador to Ethiopia Kim Jong Geun yesterday, the President noted the ties between the two countries in economic, social, political and cultural areas have been deepening.

The President stressed the need to deepen ties in investment and trade to further boost the relationships, according to a high level official who attended the meeting.

The departing Ambassador for his part said that the bilateral relationship between the two countries is further strengthening.

He noted that 20 South Korean companies are investing in Ethiopia in various areas, including industry and infrastructure development, among others.

According to the Ambassador, South Korea is preparing to provide assistance for construction of the Modjo- Hawassa highway.

After a decade of closure, Ethiopia, which sent 6,000 soldiers to support South Korea during the Korean War, re-opened its Embassy in Seoul last year.

The South Korean government has launched a job-training program for 300 descendants of Korean War veterans in Ethiopia, which expected to further deepen bilateral ties between the two countries.

http://www.waltainfo.com/index.php/explore/15753-ethio-south-korea-relation-deepening

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Nyota Minerals’ cash sufficient to progress its Ethiopian opportunity

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Nyota Mineralswww.nyotaminerals.comNyota Minerals (ASX, AIM: NYO) is a mineral exploration and development company dual listed on the AIM Market of the London Stock Exchange and the Australian Stock Exchange that is focused on the exploration and concurrent development of Tulu Kapi, its flagship project in Western Ethiopia.The company is actively exploring several priority targets proximal to Tulu Kapi as well as regional gold targets in the northern blocks which Nyota believes have the potential to become future standalone projects. 

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Thursday, October 30, 2014 by Proactive Investors

Ethiopian mine developer Nyota Minerals (ASX:NYO, LON:NYO) kept busy during the third quarter despite it being the rainy season in Western Ethiopia.

Despite the rains, a significant site visit was able to go ahead in October to familiarise a contractor plus existing and potential new project management with the proposed alluvial operations, chief executive officer Richard Chase revealed.

Reviewing third quarter operations, Chase said the company completed the sale of its stake in the Tulu Kapi project, and made the annual renewal applications for its Northern Block exploration licences.

Nyota received A$1.3 million from the sale of 25% of Tulu Kapi, giving it a cash balance at the end September of A$1.33 million.

This cash position, combined with the company’s significantly reduced overhead costs, is expected to allow it to pursue its Ethiopian alluvial gold opportunity as well as having funds to assess new project opportunities, the company said.

http://www.proactiveinvestors.com.au/companies/news/58567/nyota-minerals-cash-sufficient-to-progress-its-ethiopian-opportunity-58567.html

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Stratex, Thani complete formation of new East, North African company 

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JOHANNESBURG  – Aim-listed exploration and development company Stratex on Monday announced that it had completed the formation of a new East and North Africa-focused exploration company in partnership with Thani Emirates Resource Holdings.

Stratex and Thani’s assets in the region were now combined into a new company named Thani Stratex Resources (ThaniStratex), in which Stratex held 40% and Thani 60%.

“Stratex is very pleased to have closed this deal which combines its assets in Ethiopia and Djibouti with those of our joint venture partner in Egypt,” Stratex nonexecutive chairperson Christopher Hall commented.

He explained that further exploration to evaluate the potential of the company’s properties in the region was going to require significant funding beyond Stratex’s resources, which did not fit in well with the company’s business model.

“By entering into [a] partnership with Thani, with its experience and record in the region, we have ensured that we do justice to this exciting portfolio of properties where we see a clear analogy with the rift-related, epithermal gold province in Argentina.

“We also gain indirect exposure to Egypt where Centamin has demonstrated the geological potential through the development of the Sukhari mine, with in excess of ten-million ounces of resource and, in time, other jurisdictions in the region,” Hall said.

The concessions being transferred to the newly formed ThaniStratex included the Blackrock licences, in Ethiopia, the Okilla, Assal and Dimoli Khan licences, in Djibouti, and the Hodine and Wadi Kareem licences, in Egypt.

“Planning is well advanced for further drilling at Blackrock, in northern Ethiopia, and an initial drill programme at Oklila, in Djibouti, where the surface sampling of the Pandora structure has returned some of the best results we have seen in the region,” Hall noted.

Stratex and Thani would each contribute $1-million in working capital to assess and add value to priority projects, while third-party investment would be sought in the future to further advance ThaniStratex’s portfolio prior to a planned listing on an appropriate stock exchange.

Meanwhile, Stratex executive director responsible for East Africa David Hall had been appointed CEO of ThaniStratex and had consequently stepped down from the board of Stratex.

http://www.miningweekly.com/article/stratex-thani-complete-formation-of-new-east-north-african-company-2014-10-27

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Ministry distributes over 6.6 mln improved bio-mass wood saver stoves

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More than 6.6 million improved bio-mass wood saver stoves have been distributed during the past four years, the Ministry of Water, Irrigation and Energy (MoWIE) said.

This is out of the plan to distribute 7.1 million stoves during the past 4 years of the Growth and Transformation Plan (GTP) period, Bizuneh Tolcha, Public Relations and Communication Directorate Director at MoWIE, told WIC.

In addition to avoiding the emission of 6.7 million tons of carbon, the distribution of the wood saver stoves helped to protect destruction of 96, 361 hectares of forest for firewood, he said.

The stoves have also played a significant role in improving the livelihoods and health of the beneficiaries and saving their time, Bizuneh pointed out.

In related news, some 900,000 solar energy technologies were also distributed in the reported period, according to the director.

Moreover, over 8,000 bio-gas plants were built during the past 4 years of the GTP period, Bizuneh added.

MoWIE has been endeavoring to widely use alternative energy technologies to reach out areas where there is no access to modern energy, it was noted.

http://www.waltainfo.com/index.php/explore/15770-ministry-distributes-over-66-mln-improved-bio-mass-wood-saver-stoves-

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 Canada: Okanagan surgical team bound for Ethiopia

KELOWNA– A group of Okanagan doctors, nurses and Rotary Club volunteers are part of a 21 person, all Canadian team heading to Ethiopia.

As part of Rotoplast Canada, the team will take over a hospital in the community of Bahir Dar for two weeks to perform life changing surgeries on mostly women and children.

They will repair cleft lips and cleft palates as well as provide burn treatment and gynecological surgeries.

In Africa’s tribal culture, people with physical injuries and abnormalities are often shunned.
Children may not be allowed to go to school and husbands often leave wives who are damaged by multiple pregnancies.

The team isn’t just providing medical care, it’s also providing an education component for local medical workers.

The goal is to open a satellite burn treatment centre in Bahir Dar within the next three years.

It means people outside of major centres in Ethiopia will have on-going access to treatment.

The team expects hundreds of people to show up for surgical screening.

Doctors will only be able to treat between 60 and 80 patients during the two week stay but many more locals will have access to long term treatment thanks to the training and equipment left behind.

The mission is partially funded by Rotary International which mandates that the program be sustainable.

The team leaves for Ethiopia on November 4th.

http://sodere.com/profiles/blogs/canada-okanagan-surgical-team-bound-for-ethiopia

Your chance to access the world’s fastest growing fertilizer market

Argus FMB Africa Fertilizer 2015 will be held on 18-20 February in Addis Ababa, Ethiopia.  The 2015 event offers you the chance to network over 3 days with the industry’s most senior executives. It is your opportunity to meet the market – from leading producers to major buyers and distributors, and all categories of essential service providers. The 2014 conference attracted over 450 attendees from 70 companies and over 60 countries at the conference in Marrakech. 

Book today and save $170 with the early bird discount. Offer ends Friday, 12 December.  Register here

Attendees by region	Previously registered companies included: Transammonia, OCI Nitrogen, K+S Kali, Yara, IFD, BPC, IFA, PotashCorp, Helm, Africa Finance Corporation, AFAP, Sinochem, FBN Bank, Maaden, SGS, Koch Fertilizer, Louis Dreyfus Commodities, OCP Group, Sinochem, Ameropa, Agrium, Keytrade and many more…

Key reasons to attend:

• Learn: Hear the latest market developments from industry experts and analysts during two mornings of insightful discussions
• Explore: Our exhibition space features the latest technology, equipment, logistics and service providers from around the world
• Discuss: This year’s event will focus on bulk blending versus processing, multi-nutrient application and soil mapping in Africa
• Meet: Major producers, traders, policy and financial advisers, distributors and NGO’s, throughout Africa and beyond
• Visit: Tullo Bollo, Ethiopia’s first ever blending facility

Recent video: Mounir Halim the Business Development Manager at Argus FMB gives an overview of fertilizer development within Africa and who you’d meet attending the 2015 conference.

For further information about the 2015 Argus FMB Fertilizer Africa conference, please contact us using the details below:

+44 (0) 20 89797 866
fmb.conferences@argusmedia.com

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Sourced here  http://www.argusmedia.com/Events/Argus-Events/Europe/Fert-Africa/Agenda

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Million Belay (PhD) is director of Melca-Mehiber, a local NGO engaged in the conservation of biodiversity and indigenous knowledge in Ethiopia. On top of that, he is also one of well-known anti-GMO activists in Ethiopia.

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ADPI launches study on new Ethiopian mega airport project

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The expansion of the passenger terminal of the Bole International Airport is expected to cost some USD 250 million

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Hired by the Ethiopian Airports Enterprise, ADPI, a French consultancy firm, recently commenced study on the mega hub airport development project. 

http://www.thereporterethiopia.com/index.php/news-headlines/item/2718-adpi-launches-study-on-new-ethiopian-mega-airport-project

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World Bank Extends 600 Million USD for Productive Safety Net Program

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Addis Ababa Oct 31/2014 – The World Bank extended today 600 million USD loan for the implementation of the fourth Productive Safety Net Program (PSNP 4).

The loan agreement was signed by Sufian Ahmed, Minister of Finance and Economic Development, and Guang Zhe Chen, World Bank Country Director for Ethiopia here in Addis Ababa.

The minister said on the occasion the program, which has been implemented during the last ten years in different phases, has benefited many farmers.

The program not only provides day- to-day support to the needy but also plays effective role in enabling them to extricate themselves from poverty and secure assets, he noted.

The program implemented throughout the country over the years has succeeded in extricating over 6 million Ethiopians from poverty, the minister said, adding that it is the biggest in Africa.

Sufian said the last three phases have proved successful and many farmers have graduated from the program as they became self-sufficient.

World Bank Country Director Guang Zhe Chen said on his part since its launch nearly a decade ago the program has made remarkable contributions not only to food security and Ethiopia’s progress in meeting many of the MDG goals, but to reversing land degradation.

PSNP has played a key role in mitigating the risk of economic and climate related shocks by introducing soil and water conservation activities, small irrigation, and integrated watershed management.

“None of this would have been possible without the vision and strong commitment of the Government,” he added. “This commitment is clearly demonstrated in the provision of close to USD 500 million from the country’s own resources to the PSNP over five years, with a large share of that being cash contributions on budget. This sets a standard for other African countries to match and is an important step towards a long term and sustainable safety nets systems for Ethiopia,” Chen underscored.

According to the country director, PSNP 4 builds on the program’s past success and further contributes to reducing poverty and promoting shared prosperity for Ethiopians.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2435:world-bank-extends-600-million-usd-for-productive-safety-net-program&Itemid=260

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PM relieves ERA head

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Zaid Woldegebriel

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Prime Minister Hailemariam Desalegn relieved Zaid Woldegebriel of his duties as director general of the Ethiopian Roads Authority (ERA) effective immediately.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2723-pm-relieves-era-head

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“Ethiopia Best Coffee Growing Country”

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A team of coffee industry experts has ranked Ethiopia first among top 10 coffee growing countries of the world. The global coffee experts praise the product of Ethiopia – said to be the birthplace of coffee – for its special aromas and top quality.

According to AllAfrica, the group was asked by Thrillist.com for their opinion about the word’s best coffee growing countries. The experts gave Ethiopia 25 points, while Kenya and Colombia stands second and third respectively with 12 and 10 points. Some experts explain Ethiopia’s top position from the fact that “coffee is native to Ethiopia, it rarely incites climate or disease-born chaos. Coffee still grows wild all over Ethiopia, and there are thousands of undiscovered varietals in Ethiopia.”

Ethiopia is the largest producer of coffee in Sub-Saharan Africa; the country is the fifth largest coffee producer in the world next to Brazil, Vietnam, Colombia, and Indonesia, contributing about 7 to 10 percent of total world coffee production. Coffee production is important to the Ethiopian economy with about 15 million people directly or indirectly deriving their livelihoods from coffee.

Ninety five percent of Ethiopia’s coffee is produced by small holder farmers on less than two hectares of land while the remaining five percent is grown on modern commercial farms. Coffee is a major Ethiopian export commodity generating about 25 percent of Ethiopia’s total export earnings.

http://www.your-bizbook.com/en/Club-Africa-News/ethiopia-best-coffee-growing-country

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Ethio-Egyptian business forum to kick off tomorrow

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- Anticipates to boost trade volume to USD 1 billion 

The Ethio-Egyptian business forum will be held from November 2-3 at the Sheraton Addis in the presence of senior government officials and major Egyptian companies.  

http://www.thereporterethiopia.com/index.php/news-headlines/item/2719-ethio-egyptian-business-forum-to-kick-off-tomorrow

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Ethiopia Wants to Share Rich Experience of Indonesia in industry, President Mulatu

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President Mulatu Teshome said Ethiopia and Indonesia should strengthen their relationship in the industrial sector.

While confering with the departing Indonesian Ambassador to Ethiopia, Ramli Saud, the president said Ethiopia wants to share the rich experience of Indonesia in the industry sector, particularly in manufacturing.

The countries that are registering rapid economic growth could perform better if they work together, he added.

Appreciating the effort of the ambassador for facilitating the signing of the technical cooperation agreement between the countries, President Mulatu urged the ambassador to promote the investment opportunities and alternatives in Ethiopia.

Ambassador Saud, who served his country for four years in Ethiopia, said draft agreements on elimination of double taxation and on opening flight services to Jakarta are in pipe line.

According to him, during his tenure the trade exchange between the countries has jumped to 380 million USD from 70 million.
An Indonesian soap factory and a food factory have been operating in the country, he said.

Other investors are also doing feasibility studies to work in textile and paper production, Ambassador Saud revealed.

The ambassador said Ethiopia is changed for good and he attributed the change to the political stability in the country, security, and encouraging legal frameworks to investors, among others.

To boost the people-to-people relationship of the two countries the embassy teaches the Indonesian language at its embassy and Ethiopians are also in Indonesia on scholarships, Ambassador Saud stated.

Ethiopia and Indonesia established diplomatic relations in 1961.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2433:ethiopia-wants-to-share-rich-experience-of-indonesia-in-industry-president-mulatu&Itemid=260

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President of Ethiopia to open Bamboo and Rattan Summit

-  Summit to share Ethiopia’s bamboo sector success and promote Ethiopia’s policy framework as a basis for green growth with bamboo

His Excellency President Mulatu Teshome of Ethiopia will open the INBAR – Ministry of Agriculture Summit on “Bamboo and Rattan in the Green Economy” in Addis Ababa on Wednesday 5^th November. He will be joined by the Ethiopian State Ministers of Agriculture and Environment, senior representatives of FAO, UNEP and the EU, senior government representatives from Ghana, Cameroon and China, business leaders, policy experts and environmentalists, to help set an agenda for bamboo development in the years to come.

Ethiopia is at the vanguard of bamboo-based development in Africa. With over a million hectares of natural bamboo forests, the country is blessed with a huge bamboo resource base of which it is pioneering the use to protect the natural environment, grow livelihoods and develop a greener economy.

Although Ethiopia has only had a formal bamboo sector since 2012, earlier work by INBAR and other development partners and investors helped raise awareness of bamboo’s potential, and pilot businesses have shown the way for development with bamboo. These days the sector attracts major investors who see bamboo not as potential, but as practice, with clear and growing international markets for bamboo as green products – and that will help develop rural and urban livelihoods as well. This rapid growth has been, in large part, due to the Government’s implementation of its Short and Medium-Term Strategic Plan of Bamboo Development, part of its bamboo sector strategic framework, which has focused attention and investment in an unprecedented way.

The Summit is organized by INBAR and the Ministry of Agriculture of the Government of Ethiopia, and supported by:

Summit location – Sheraton Hotel, Addis Ababa

Date – 5 November 2014

Time – 09.00 – 18.00

http://www.inbar.int/2014/10/president-of-ethiopia-to-open-bamboo-and-rattan-in-the-green-economy-summit-in-addis-ababa/

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Midroc Gold Announces $250 million Gold Extraction Plant

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By Bereket Gebru – Oct. 30, 2014

Anyone who gets a chance to visit the Grand Ethiopian Renaissance Dam (GERD) is envied by everyone around them. Even those who have travelled well across the country and around the world long for the chance to pay a visit to the project that symbolizes the prosperous future that awaits Ethiopia. Considering the high excitement and anticipation all Ethiopians have associated with the dam, their longings are all understandable and positive in intent.

It was twenty-one months ago that I first got the chance to visit what is set to be the biggest dam in Africa. As expected, my friends tried to contact me and give them an account of the progress in construction while I was still there visiting. I did the best I could to give them a sense of what it is like to be there and supplemented that with pictures when I got back. What I understood at the time was that I would have asked for the same thing from someone who had been there, had I not got the chance. So, I wrote an article entitled “Hope in the making” incorporating a comprehensive account of the tremendous work I witnessed a sling shot away from the Ethio-Sudanese border.

I am now very glad I wrote that article because it has led the way for me to get back to the GERD project site. Twenty-one months on, I have been given a chance to be part of a team put together to report on the progress of the construction of the dam. My previous article on my then visit played a pivotal role in my nomination for the assignment.

As can be expected, my friends were almost pissed that I got a second chance to report on the project before they could see it even once. But in all fairness, one of the major requites of working in the media is the presence of opportunities to report on some of the most fascinating and highly regarded stories. Although this obviously comes as an issue they would also like to witness, I also have aspects of their jobs that I would love to experience.

With that in mind, I have prepared this article for all those out there who have not come across the chance to witness the progress in the construction of the GERD. To give a clear picture of how far along the project has come in the last twenty-one months, I have used comparative analysis of some aspects of the construction process.

To give a clear picture of the vast activities being carried out by the project, I have classified activities into groups and reported on the changes over the time gap between my two visits. When I first went to the project site, all there was to see of what is to become the foundation of the dam was a small rectangular sample of small height with the rest of the area going through some serious digging and explosion. There were frequent dynamite explosions with numerous boring machines and dump trucks swarming the area. At the time, engineers working on the project told us that all efforts were geared towards reaching at the bedrock on which the foundation would be laid.

Nowadays, the area that was marred with explosions and digging is occupied by two sets of huge structures on the left and right side of the river. According to the briefing we had, the explosion and digging sections of the project are nearly over with only two to three months of it remaining. The structures on either side of the river make up the foundation of the dam.

Foundation of the RCC GERD dam

The bigger of the two structures located on the right bank of the river harbors ten huge stair like bodies that would be used to bury penstocks. These structures make up the ten protruding sections on the famous GERD plan. Not noticeable from the back of the dam where administrative offices are located, the top of the dam spanning quite a number of football fields comes as a surprise for someone going on top of it for the first time.

Getting on top of the huge structure on the right of the river, one comes across teams of humans and machines piling on the Roller Compacted Concrete (RCC) from which the dam is made. Activities taking place here build on the height of the dam and human accounts of the activities claim that visible changes are evident on a daily basis. Considering the technique use to construct the dam does not involve iron reinforcements, piling on batches of RCC held together by bidding mortar is said to take a much shorter time. Moreover, the fact that the dam’s width goes narrower from 125m at the foundation to just 8m at its peak means its construction speed would pick up momentum as its height goes up.

Another feature of the top of the dam’s right section are the inspection galleries. Located at the upstream, middle and downstream sections of the dam are three tunnels running from the right end of the dam all the way to the back of the dam where the power houses are being built. These three tunnels are used for monitoring the dam and correspond to the dam’s three zonings that have different mixes.

Yet another of the structures being built on the right bank of the river is the power house for that side of the dam. Expected to be fitted with two of the ten generators set for that side of the dam this year, the power house is tipped to be able to produce 108 MW of electricity in less than a year. The start of production of electricity from the dam would no doubt be a huge milestone in the whole process of realizing the project and it is exciting to know that we might be just under a year away from it.

Going on to the left side of the river’s bank, various activities have also taken place within the twenty-one months it took me to get another chance to visit the project. On my first visit, there was a big hype about diverting the course of the Blue Nile within the near future and how it would be a significant step in building the dam. This time it has been quite a long time since that has been accomplished and the fuss has shifted to yet another diversion – diverting the river to its natural course.

With the diversion of the river to a new course set artificially, what used to be the river’s bed has gone dry making it easy for the builders to carry out their activities. Accordingly, various diggings and explosions have taken place on the former river bed to get to the bed rock up on which the foundation of the dam is situated. The six protruding structures depicted on the dam’s plan which are used to bury penstocks are being built on this side of the dam.

The other noticeable structure on this side of the dam includes the four box culverts fitted to its upstream end. These box culverts are gateways fitted at the front end of tunnels running across the width of the dam’s left side. Once the construction of this side of the dam gets to a certain point, the re-diversion of the Blue Nile to its natural course would follow in order to make room for construction activities that would connect the two sides of the dam which are presently separated by the river’s adopted artificial course. As has been pointed out above though, the dam has been erected on the river’s natural course. That is when the box culverts would come in handy by allowing the river to go through them and maintain its flow.

Saddle dam

Another one of the structures in the project to be included in my observational accounts is the Saddle dam – a 5.2 km long, 50m high and 17.2 million m³ volume rock filled dam being built to close the only route of escape for water to be accumulated by the GERD. During my previous visit, the location was marred with long and deep stretches of digging accompanied by a heavy traffic of the machineries transporting the huge amount of soil and rock.

This time around, I was pleasantly surprised to see that the dam is gaining height over the surrounding land especially at its right end. On its left end, a modern approach is being implemented. This modern approach is called curtail grouting and it has been used at Gilgel Gibe I in Ethiopia. The technique as applied at the GERD involves 80cm wide dig to the bed rock that would be filled with a plastic diaphragm wall to prevent water from penetrating through. According to Engineer Semegnew Bekele, the project manager, one million m³ of the 5.7 million m³ rock and soil needed to complete the Saddle dam foundation has already been filled. The Saddle dam is also fitted with emergency spill way. The overall change in the construction of the Saddle dam within the twenty-one month gap was impressive.

The power transmission line from Beles

Yet another one of the changes I observed was the new power transmission line at the project site crossing over the mountains nearby. The Grand Ethiopian Renaissance Dam project has been using diesel generators ever since its onset. However, their remaining days seem to be numbered as the giant power transmission lines hovering over them clearly indicate.

We were briefed that the huge power lines are part of the 240km 400kv power transmission line drawn from Beles. The 400kv capacity of the lines is also proof of the tremendous advancements in the carrying capacity of the power transmission lines in our country. Those lines would help replace the diesel generators at the project site by bringing electric energy from Beles while upon the generation of electricity by the GERD, the same lines would be used to transmit electricity out of the hydro-electric power project.

The 500 kv power transmission line

Although not part of the project site at Guba, the 500kv power transmission line extension project spanning nearly 600km including cities like Dedessa and Holeta is also part of the GERD project aimed at transmitting the power generated by the GERD to various parts of the country and other neighboring countries. The two power transmission lines stated above obviously mark the dawn of a better day for electric energy transmission in Ethiopia as they enable the country transmit energy over long distance to our neighbors without energy wastage.

Housing

Still another section of the changes I have observed during my recent trip to the GERD project has to do with housing. The last twenty-one months saw the construction of numerous housing and service provision units at the project site by the Metal and Engineering Corporation (Metec). With various sorts of designs accommodating different forms of services, the houses cater to the needs of the vastly increasing number of workers at the site. Equipped with Air Conditioners, ventilators and toilets with showers the houses are cozy homes providing relief from the suffocating heat of Guba’s harsh outdoors. The fact that the houses have malaria nets fitted to their beds also helps protect workers from malaria infections.

With the lowland vicinities of Guba characterized by suffocating heat and threats of malaria infection for most of the year, activities to identify and develop alternative settlement spots for those who would take the responsibility of running the dam once its construction is over have been underway.

Accordingly, ten kilometers away from the construction site of the dam at Guba, a site on the adjoining mountains has been identified and numerous housing and service provision units have already been built with more along the way. Situated at the top of a huge mountain overlooking the project site and the future dam along with a section of the lake to be formed in front of it, the permanent housing site is immensely picturesque. Rising up to 1500m above sea level, according to experts working on the project, the mountainous permanent housing curbs the suffocating heat and malaria threats of the Guba valley which is located just 500m above sea level. With these facilities in place, those who would operate the Grand Ethiopian Renaissance Dam once it starts functioning fully would live under better conditions.

Tree clearing activities

In a bid to make the future reservoir free from trees that might have a toxic effect on the water, a vast tree clearing activity has been carried out between the time gap of my two visits. According to Semegnew Bekele, project manager, the Metal and Engineering Corporation (Metec) took on the project under whose sub-contracting schemes were involved various micro and small enterprises that mustered over thirty thousand workers. The efforts of such a huge work force are evident a long way from the project area as we saw fields and mountains as far as eighty kilometers away stripped of their tree cover on the Asosa-Guba road.

Resettlement

Engineer Semegnew Bekele stated that the environmental and social impact assessment researches have indicated a sparsely populated settlement in what would become the reservoir in front of the dam. He further explained that the Resettlement Action Plan (RAP) of the GERD project was discussed with local authorities and local residents.

The resettlement activities would settle people into villages and provide them with various social services they have been deprived of. Accordingly, settlers would be provided with electricity, schools, health facilities, clean water and other social services. The result of discussions with local authorities and residents, according to Engineer Semegnew, were positive as they have understood the developmental package the resettlement is accompanied by.

Other major changes

In addition to the above stated bundle of activities, there have also been other major changes with significant implications on the project and even the country as a whole. These major changes include:

Work force and machineries

Twenty-one months ago, Engineer Semegnew Bekele told us that there were about 5,000 employees with more than 1,200 machineries operating on the project site. This time around, he stated that there are about 9,000 workers including 400 expatriates. He further explained that the number of expats has gone down now that the 400 kv power transmission line work from Beles has been completed. Regarding the machineries, he pointed out that there currently are 2,300 of them operating on the project.

Local capacity building

While briefing us on various issues related to the construction of the dam, Engineer Semegnew duly noted that cost-reduction is at the centre of the construction activities. He further explained that cost–reduction entails building on the capacity of local construction and industrial establishments to produce imported materials locally.

One of the most notable import substitution successes achieved over the past twenty-one months has been the production of the formerly imported low heat of hydration cement locally. In addition to the two other types of cement used, low heat of hydration cement is currently being produced and supplied to the project by Mesebo and Derba cement factories – Ethiopian cement factories. The quality of cement produced in these factories is once again checked at the project’s laboratory upon arrival prior to its use in the construction process.

The other major capacity building success has to do with the box culverts. The box culverts used in other Ethiopian dams have always been supplied by foreign companies but the GERD has changed that reality as the Ethiopian Metals and Engineering Corporation (Metec) has produced those at the left end of the dam.

In addition to the above stated milestones in national capacity building, the GERD project has immensely pushed up the capacities of local engineers. By creating awareness and familiarizing local engineers with state of the art technological methods such as curtail grouting and roller compact concrete (RCC) building, the project is contributing a lot towards human development. As the project also accepts university fresh graduates from all over the country on apprenticeship basis, its contribution as a technological gallery and knowledge transmission platform is tremendous.

As the project has also created the necessity for the construction of roads and other business establishments, the capacity of local contractors has hugely been affected positively by the dam project. The increased activity along towns on the way to the GERD has also helped build the capacity of various business establishments. With time passing by, the GERD has increasingly realized its potential as a great capacity building tool.

Conclusion

As I have tried to depict above, there have been significant progresses made within the twenty-one months time between my two visits to the GERD. Some of these changes could have separately been taken as huge project undertakings on their own, had they not been part of the Grand Ethiopian Renaissance Dam (GERD) project.

The already completed work on the 240km long 400kv power transmission line from Beles is one of such significant undertakings which could have been taken as a huge project on its own. The work on the 500kv power transmission line is another. The housing units built by the Ethiopian Metal and Engineering Corporation and the permanent housing on the mountains nearby being built by Salini can also be cited.

Finally, I would like to remind others who have read this article to come up with their own accounts of the progress they have witnessed on the GERD. As clearly put by Engineer Semegnew Bekele, “it is the project of the people.” He also noted that visitors to the project site are warmly welcomed as they help raise workers’ morale with their genuine concern and appreciation for the project and those involved besides helping express the grandeur and significance of the project to their fellow Ethiopians up on their return. Therefore, I say let’s report on the progress for all those who have got the chance to visit the project that has marked Ethiopia on the international arena. For all those who have not yet got the chance, I hope it comes soon enough.

Sourced here  http://aigaforum.com/articles/GERD-round-two.php

The government is importing four million quintals of wheat for 2.4 billion Br in the current fiscal year; it is also in the process of procuring two million quintals more, out of a total plan for 6.5 million quintals for the entire year

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-  Increase in wheat harvest still struggles to meet demand

In the current fiscal year 12.6 million hectare land is harvested for crops including teff, wheat, maize, barley and sorghum of which 1.6 million hectares or 12.7pc of the total is harvested with wheat.

Atlaw Desta, 38, feels excited as he looks upon his 10ha of fully green wheat, which gives him hope of a high yield during the November-January harvest. The father of four has been farming 15ha of farmland for the last 10 years at a place named Gimbiti, Limu and Bilbilo Kebele, some kilometers away from Bekoji, Arsi. The area is Ethiopia’s largest wheat-producing region along with Bale, with both areas located in Oromia Regional State.

Atlaw covers 10ha with wheat and grows cabbage and sesame on the other five hectare. His farm is among the largest in Gimbete, where most farmers have one to two hectares at best, and where some have holdings as small as one or two qert, a local measure equal to a quarter of a hectare. Most of them harvest wheat.

Nationally, wheat has been harvested on 1.5 million to 1.6 million hectares of land yearly between 2009/10 and 2013/14. In 2009, the area used for harvesting wheat was 1.6 million hectares, which decreased to 1.5 million hectares in 2012/13. However, wheat yield has been somewhat unpredictable, increasing from 30 million quintals in 2009/10 fiscal year to 31 million quintals in 2012/13 (while the plot decreased), but showing a 0.5 million quintals reduction from 31.5 million quintals yield in 2011/12. For 2013/14, which will be harvested between November and December 39 million quintals are expected.

Yield production of wheat increased from 19ql per hectare to 24ql per hectare in the last years following the use of improved seed, fertilizers and pesticides, according to expects..

The Central Statistics Agency (CSA) projection shows an increase in both the size of harvested land and the yield to 1.6 million hectares and 39.3 million quintals, respectively. There is a potential of irrigation wheat farming on an additional one million hectares, of which not more than 200,000ha is currently under use, according to Tadesse Dessalegne (PhD), technical coordinator of East African Agricultural Products, Wheat Regional Centre of Excellence, a research institute established by Ethiopia, Kenya, and Uganda.

Atlaw is using the same 10ha, but expects a higher yield of 600ql from the previous year’s 480ha.

During the last four years the average yield of wheat per hectare increased from 19ql to 24ql, according to Tadesse. The higher yield expectation this year is a result of a good rainy season, improved seeds, as well as DAPS and Urea fertilizers, according to Matios Ashamo, coordinator at Areka Agricultural Research Centre in the Southern Regional State.

The number of farmers who used improved seeds also reached 10pc during the last harvesting season, Tadesse said.

Atlaw’s optimism is also affected by the reports of government import of wheat.

The government is importing four million quintals of wheat for 2.4 billion Br in the current fiscal year; it is also in the process of procuring two million additional quintals out of a total plan for 6.5 million quintals for the entire year, according to Etenesh Gebremichael, public relations& trade information head at the Ethiopian Grain Trade Enterprise (EGTE).

EGTE was re-established in 2009 by incorporating the Ethiopian Oil Seeds & Pulses Export Corporation. In May 2013, another Agency, the Strategic Food Reserve Agency (SFRA), was established with overlapping responsibilities. The SFRA buys from the domestic market and from its reserve supplies the domestic and export markets. The EGTE does basically the same thing in addition to being authorized to import grain.

The government imported 17.7 million quintals of wheat spending 15.5 billion Br between 2009/10 and 2013/14.

Following a shortage of wheat at flour factories, the EGTE is distributing wheat at a subsidized price of 550 Br per quintal to 288 flour factories across the country starting in August 2014,.

Gadissa Gobenna, a farmer for the past 21 years, sows wheat on 40ha of land in Ambo, in West Shoa zone of Oromia. Last year, he sold a quintal of wheat to wholesalers for 1,200 Br.

The price of wheat nearly doubled between 2009/10, when it was sold for 574 Br per quintal, and 2013/14, when the average price was around 1,040 Br. The prices Atlaw managed during the year varied from 970 Br to 1,200 Br. The good harvest and the imports could bring the price down to 800 Br this year, Atlaw fears.

Atlaw gets 40ql per hectare and his expenses for that size of land is about 5,720 Br for seeds, DAP and Urea fertilizers, and chemicals for fungus and toxins.

In his interview with Fortune last August, Minister of Trade, Ali Siraj stated that the government would not import more wheat unless it sensed a gap in supply seeing the harvest between October and November.

“We expect good yields during the October to December wheat harvest, but if we feel there is a gap, we will import more wheat after we have seen the harvest,” he said.

However, within a month of that interview, the Ministry of Finance & Economic Development (MoFED) announced an international auction for the supply of two million quintals of wheat by mid-September 2014. According to an official from EGTE who wants to remain anonymous, in the previous year the government had expected a good harvest and had avoided imports, which led to the supply shortage; this latest order was intended to avoid that kind of mistake”. The other main reason for the new import is to avert a shortage until the farmers collect the new harvest.

Tadesse says that as demand continues to grow, Ethiopia would not still stop importing wheat even if yields increased. The number of flour factories has also grown from 204 in 2009/10 to 288 in 2013/14.

In the current fiscal year, 12.6 million hectares of land are being harvested for crops including teff, wheat, maize, barley and sorghum of which 1.6 million hectares or 12.7pc of the total is harvested with wheat. The government forecasts a total yield of 300 million quintals this year, up from 253 million quintals last year, according to data from the Ministry of Agriculture (MoA).

According to CSA’s projections, Oromia will produce the highest amount of wheat, 23 million quintals from 837,000ha, followed by Amhara, where the yield is expected to reach 11.2 million quintals of wheat from 529,649ha. The least yield will be from the Harari region, where a yield of 1590ql of wheat is expected from 72ha.

According to Asrat Gebretsadik, representative of communications of the MoA, the high rate of population growth (2.9pc) is the main reason for increasing imports despite of a growth of 25pc in domestic harvests.

The increase in production does not match the increasing demand for wheat and, in urban areas, for bread, says an expert from Food & Agriculture Organization (FAO) who has conducted research on wheat. Places in the areas known as the wheat belt could produce upto 80ql a hectare, he says, which is possible, since there are areas that are already producing 90ql per hectare.

Sourced here  http://addisfortune.net/columns/the-wheat-paradox/

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Ethiopia-Egypt trade deals to ease River Nile row

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Egypt and Ethiopia have signed a series of trade agreements which could help smooth diplomatic tensions over use of the River Nile waters.

The countries fell out over Ethiopia’s plans to construct a $4.3bn (£3.4bn) hydroelectric dam on the river.

Egypt was apparently caught by surprise when Ethiopia started diverting the Blue Nile to build the Grand Renaissance Dam in 2013.

The river is a tributary of the Nile, on which Egypt is heavily dependent.

Ministers from both countries signed more than 20 bilateral on deals on trade, health and education at a meeting in Ethiopia’s capital, Addis Ababa.

At the signing ceremony, senior government officials vowed to continue talks on how to resolve a three-year dispute over the dam, which remains a sensitive issue, says the BBC Emmanuel Igunza in Addis Ababa.

Egypt’s Foreign Minister Sameh Shoukry said discussions would aim to achieve a win-win situation for all countries.

Despite reassurances from the Ethiopian government that their water project poses no threat to Egypt’s share of the Nile, Egyptians are asking what effect it will have on their already depleting water resources, our correspondent says.

At the height of the tensions last year, Egyptian authorities were said to be considering military action over the dam.

They have however agreed to commission a team of international experts to assess the impact of the project on the water levels of Africa’s longest river.

http://www.bbc.com/news/world-africa-29878714

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Ethiopia and Ireland signed agreements on transport and trade

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Addis Ababa – President of Ireland Michael D Higgins has witnessed the signing of three significant bilateral treaties between Ireland and Ethiopia.

The three agreements were signed this morning by Minister of State for Development, Trade Promotion and North South Co-operation Sean Sherlock.

The signing followed this morning’s meeting between President Higgins and Ethiopian Prime Minister Hailemariam Desalegn.

A double taxation agreement will encourage the growth of trade and investment between Ireland and Ethiopia.

A bilateral transport agreement will clear the way for direct flights by Ethiopian airlines from June 2015 between Dublin and Addis Ababa.

It will be the first-ever direct scheduled route between Ireland and Africa.

A bilateral co-operation agreement will provide a framework for a five-year development partnership, estimated to be worth €136m, focused on health, nutrition, agriculture and governance.

Speaking after the signing of the treaties, President Higgins said they would act as a catalyst in moving forward to a whole new set of achievements in different areas.

He also said the bilateral treaties would now provide a framework for ever more contact between Ireland and Ethiopia.

http://diplomat.so/2014/11/03/ethiopia-and-ireland-signed-agreements-on-transport-and-trade/

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EU to support horn of Africa

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Egypt, Ethiopia study possibility for establishing industrial zone: Abdel Nour

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-  Both countries seeking to increase volume of trade to $5bn, says minister of industry and foreign trade

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Minister of Trade and Industry Mounir Fakhry Abdel Nour

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A potential Egyptian-Ethiopian industrial zone is being studied, Minister of Industry and Foreign Trade Mounir Fakhry Abdel Nour said on Sunday. The minster added that the Ethiopian government is welcoming the development.

According to state-run news agency MENA, the minister’s statements came during a press conference held with Egyptian reporters in Ethiopia.

The minister pointed out that the targeted trade volume between both countries is over $5bn, which not a large figure is considering the capabilities of both countries. He added that Ethiopia exports meat and coffee to Egypt, while Egypt has a competitive advantage in the fields of chemical, fertilisers, automotive, and engineering industries.

Between 2004 and 2013, the volume of trade increased by 21%, edging up from $41m to $165m. He added that Egypt’s share of the trade is around 77.5%.

Abdel Nour said that Egypt is prepared to offer any assistance to Ethiopia to develop its small and medium enterprises.

The foreign trade minister said that around 60 projects are owned by solely Egyptians in Ethiopia while 43 are partnerships between Egyptians and Ethiopians.

Officials from 11 Egyptian ministries headed to Addis Ababa, Ethiopia to attend the fifth Egyptian-Ethiopian commission meetings earlier this week, including the ministers of investment, electricity, culture and education.

http://www.dailynewsegypt.com/2014/11/02/egypt-ethiopia-study-possibility-establishing-industrial-zone-abdel-nour/

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Ethio-Egyptian Economic Forum held in Addis Ababa on November 2nd

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The Ethio-Egyptian Economic Forum gathered 40 Egyptian and 65 Ethiopian Business delegates for a highly constructive and brotherly exchange on November 2nd 2014 in Addis Ababa. The Forum aimed at further strengthening the commercial ties and making economic partnership at the center of the cooperation between the two countries.

http://www.andalem.com/news-and-insights/item/165-ethio-egyptian-economic-forum-held-in-addis-ababa-november-second

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Locally Produced Custom Fertilizers Will Help Farmers Double Yields in Ethiopia

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USAID Ethiopian State Minister of Agriculture Mitiku Kassa and Oromia Regional State Vice President Abdulaziz Mohamed cut the ribbon to officially open a new fertilizer blending facility.

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In June 2014, Ethiopia’s Ministry of Agriculture inaugurated the country’s first-ever fertilizer blending factory as part of the government’s effort to support in-country production of local fertilizer blends customized for Ethiopia’s soil. Three more similar factories will soon open in other regions of Ethiopia, making these custom fertilizers available to more than 11 million smallholder farmers.

While many farmers take fertilizer and other agricultural inputs for granted as part of the process of maximizing crop production, poor smallholder farmers often lack access to these important tools. Locally produced fertilizers from these new factories will reduce costs for local farmers who could purchase only imported fertilizer previously, and the new custom blends have the potential to help farmers increase yields by up to 100 percent compared to conventional fertilizer application.

The new factory in Ethiopia’s Oromia region was backed by the Agricultural Transformation Agency, which provides innovative and results-oriented support to a range of partners in the Ethiopian agriculture sector, as well as the U.S. Agency for International Development (USAID), which awarded a $1.2 million Feed the Future innovation grant for construction. Local partner Becho-Woliso Farmers’ Cooperative Union collaborated on the development of the Oromia factory’s operational plan, and all four fertilizer blending sites will rely on farmer cooperatives to run the factories on a commercial basis with support from regional government officials.

“Improved inputs, such as fertilizer and seeds, are a proven factor in agricultural productivity,” USAID Mission Director Dennis Weller said at the inauguration event in Oromia. “The U.S. Feed the Future initiative has awarded over $4 million in grants for improved inputs to help transform Ethiopian agriculture and benefit smallholder farmers.”

In concert with Feed the Future, the Government of Ethiopia has conducted more than 40,000 new fertilizer demonstrations in the four target regions to facilitate adoption by smallholder farmers. The Ministry of Agriculture is working with other partners to open factories in the Amhara, Tigray, and Southern Nations, Nationalities, and Peoples’ regions of Ethiopia following the inauguration of the Oromia factory.

Tekalign Mamo, State Minister of Agriculture, who oversees the national soil fertility survey, believes the establishment of this new factory signals a new future for Ethiopia’s agribusiness sector. “It’s a dream come true,” he says.

http://feedthefuture.gov/article/locally-produced-custom-fertilizers-will-help-farmers-double-yields-Ethiopia

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By Crusoe Osagie

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Allana Potash Provides Update on Optimization Studies and Project Progress

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https://uk.finance.yahoo.com/news/allana-potash-provides-optimization-studies-120000192.html

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Premier Urges Partners to Support Ethiopia in Industrial Development

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2454:premier-urges-partners-to-support-ethiopia-in-industrial-devt&Itemid=260

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A Candidate for the top job at the African Development Bank (AfDB)

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Come December 31, 2014, Ethiopia will likely declare its fielding of a candidate for the top job at the African Development Bank (AfDB), the continent’s most important financial institution, gossip disclosed. After a tenure of two five-year terms as president of the AfDB, which is owned by 78 nation-states including 20 out-of-region countries, the institution’s current high-profile chief executive, Donald Kaberuka from Rwanda, is on his way out.

Back in 2005, Rwandan president Paul Kagame had thrown his full support behind the last-minute candidacy of his former Finance Minister Kaberuka, using his private jet to shuttle across the continent and elsewhere to campaign among the bank’s shareholders. Kaberuka in turn is known to have significantly raised the bar for future holders of this prestigious office. The AfDB presidency is a very powerful office, since it includes not just the function of President, but also those of Chairperson of the Board of Directors, as well as Chief of Staff of the Bank. Since the position is exclusively reserved for natives of the continent, it is not surprising that heads of state across the continent a scrambling to each field a credible candidate of their own.

Although Ethiopia is a founding shareholder of the bank, the country has no historical record of submitting a candidate of its own, gossip claims. The closest it got, recalls gossip, was back in the mid 1990s, when Tekalign Gedamu, a prominent banker during the Imperial era and later vice-president of the AfDB, aspired to try his luck. Alas, gossip claims, he was too much at odds with the rebel-cum-rulers of the time to win their endorsement, and hence an opportunity was lost for Ethiopia.

But hark!!, a once-in-a-generation opportunity has now availed itself again, in the persona of none other than Sufian Ahmed, minister of Finance & Economic Development (MoFED), who has recently been touted by public-relations-stunted magazines across the continent as one of the likely candidates for the office. Indeed, an incident in the back corridors of a recent summit by African heads of state affirmed his candidacy, when Prime Minister Hailemariam Desalegn confided his plan to put forth his candidature, gossip disclosed. However, he was countered at the meeting by Goodluck Jonathan of Nigeria, who also disclosed a plan to have one of his own run for the office.

Both countries will have their respective candidates announce an intent to run for the office at the end of this year, gossip says. The contest will be hard-fought, since others – from Cape Verde to Senegal and the countries of the SADC – will likewise do their utmost to have their own preferred candidates get (s)elected during the Bank’s annual meeting scheduled for May 15, 2015 in Abidjan, Cote d’Ivoire, according to gossip.

Yet, no candidacy worries Ethiopian authorities more than the challenge which may come from the Senegalese Makhtar Diop, who is now World Bank’s vice president for Africa, gossip disclosed. Unlike Sufian, Diop speaks both working languages of the AfDB and is at ease with himself in navigating through the corridors of international financial institutions. Others see a more formidable challenge coming from Cristina Duarte of Cape Verde, whose candidacy may turn out to be strong should Senegalese President Macky Sall withdraw his own candidate in support of her, gossip observed.

Come March 2015, Sufian and his contenders will have to submit written statements of vision for the Bank, in English and French, gossip disclosed. He may bank on Ethiopia’s on-going economic transformation as a rallying ground to win support – particularly among shareholders such as China, India and Turkey where this resonates – and may declare a significant part in that transformation as long-serving finance minister, claims gossip. He may declare his desire to help replicate such economic miracles in every member state, where he knows many of the ministers from his years serving the Bank as a board member, claims gossip.

For a change, Ethiopian authorities are showing their resolve to see one of their own come out on top, someone who is supported by current governors from East Africa, the continent as a whole, as well as non-regional members, gossip disclosed. Nonetheless, their candidate has couple of limitations in his claim for the office. For one, Sufian is not a French speaker, although this is not a formal necessity, claims gossip.

However, gossip sees Sufian as an introvert by nature, who will need to spend millions of dollars transforming his persona, hiring coaches, strategists and campaign organizers. A shrewd political operator may often keeps himself from saying more than what is absolutely necessary, Sufian, however, does overplay this tactic, to the frustration of his promoters and to his own disadvantage, claims gossip. He lacks colour and charm, claims gossip.

Natural gregariousness and an abundance of cash resources thus appear to be a forte reserved to Akinwumi Adesina (PhD), Nigeria’s Minister of Agriculture & Rural Development, gossip observed.

While heads of state from Nigeria and Cape Verde have already begun their campaigns to solicit support for their respective candidates, Prime Minister Hailemariam and his top lieutenants at the foreign office appear to prefer holding their collective breaths, waiting for the right time to strike, gossip claims.

http://addisfortune.net/columns/a-candidate-for-the-top-job-at-the-african-development-bank-afdb/

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At UN conference, top officials urge greater development assistance for landlocked countries

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Secretary-General Ban Ki-moon (front, left) accompanied by Heinz Fischer, President of Austria and Yury Fedotov, Director-General, UN Office in Vienna, arriving for the Second UN Conference on landlocked developing countries (LLDC), in Vienna, Austria. Photo: UNIS Vienna

News Tracker: past stories on this issue

Senior official urges high-level participation in UN conference on landlocked developing countries

http://www.un.org/apps/news/story.asp?NewsID=49234

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Nation Showing Leadership in Using Bamboo for Green Development

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2455:premier-urges-partners-to-support-ethiopia-in-industrial-devt&Itemid=260

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East Africa Internet Exchange Point To Launch Next Year

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By Emmanuel Iruobe

VENTURES AFRICA – Talks about regional integration and moves to boost intra-African trading have become popular on the continent as stakeholders fully realize the economic goodies embedded in a totally connected Africa; in this spirit, members of the East African Community (EAC) are gearing up to the launch of a regional East African Internet Exchange Point (EAXIP), scheduled to go live next year.

EAXIP, as championed by the East African Communications Organization (EACO), will interconnect the EAC member countries via internet links in order to keep the region’s internet traffic local and further reduce the cost of internet services. The exchange point provides a physical network access area through which major network providers connect their networks and exchange traffic. With an exchange link of this kind, costs associated with traffic exchange between Internet Service Providers will be reduced as well.

Joseph Tiampati, ICT Principal Secretary disclosed some information suggesting that the countries have already started drafting policies, regulations and the necessary operational framework to ensure the smooth execution and running of the initiative which will first be implemented in five EAC countries before it is extended to seven other countries within the region.

“In a bid to support the growth of Internet Exchange Points (IXPs) within the country and beyond, the government of Kenya has already put in place several measures to promote the growth of electronic commerce and by extension, the growth of e-government services,” he said.

In addition to reducing the cost of internet connectivity, other benefits that should accrue from floating of this infrastructure will be improved privacy and cyber security, reduced connectivity latencies, increased bandwidth and internet penetration.

“The increased uptake of online services such as e-government services, e-commerce, e-banking, e-learning, e-health not to mention the world renown mobile money services are just a few of the areas that are increasing becoming the movers of our economies,” Tiampati further remarked during the Eastern Africa Regional Interconnection Policy and Regulatory Framework workshop in Nairobi.

The workshop, a sequel to the African Union-Eastern Africa Internet Exchange and Regional Internet Carrier Workshop that held in May, was held to review the alignment of policies and regulations while formulating a road map to establish policy frameworks and finalize cross-border policies by the EAC, EACO and the Intergovernmental Authority on Development (IGAD).

In line with the consensus reached at the end of the Internet Exchange workshop in May, further moves will be made to facilitate regional interconnection for the East African region.

http://www.ventures-africa.com/2014/11/east-africa-internet-exchange-point-to-launch-next-year/

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ZTE, ethio telecom at loggerheads

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Ericsson hopes to get new contract

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ZTE’s loss is apparently Ericsson’s gain as ethio telecom is set to award part of the expansion project originally intended for the Chinese company to the Swedish telecom giant Ericsson.

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This has come about as a result of ZTE not starting their part of an expansion project for over a year. It was part of a 50/50 deal with Huawei Technology for a country wide project but only Huawei commenced the expansion project.

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After ZTE failed to start the project, ethio telecom wrote a letter of warning, however no progress was made.

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A week ago Capital reported that Ericsson, who introduced mobile technology in the early 2000s to the country, was in negotiations with the state telecom enterprise to be part of the current big expansion expected to be completed by the end of this fiscal year.

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Sources told  Capital that Ericsson will handle the expansion project that was allotted for ZTE. Meanwhile Huawei, which has almost finished the 4G telecom expansion in the capital city, will continue based on the original deal.

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Other sources also stated that the state monopoly is considering claiming compensation for damage because of the ZTE’s delay in starting the project on schedule. Andualem Admasse, CEO of ethio telecom, declined to comment about the issue.

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Meanwhile sources stated that the government will transfer the ZTE contract to Ericsson if the negotiation is fruitful however, ZTE officials who responded to Capital’s questions via email stated that they are still in discussions with ethio telecom about commencing the expansion project.
“We are negotiating on a specific commercial contract (SCC) based on the signed frame agreement,” ZTE explained.

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ZTE further stated that the expansion couldn’t begin on time because the SCC was not finalized. They say that there are many other reasons for the delay but ZTE cannot disclose them because of a signed NDA (non disclosure agreement) with the customer, ethio telecom

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The current vendor financing expansion project is worth USD 1.6 billion. ZTE has undertaken the previous expansion project which was finalized in 2010 at the total cost of USD 1.5 billion.

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Currently, ethio telecom is testing the 4G data network. Sources said that the enterprise is expected to make 4G Internet available for interested consumers before the end of the fiscal year.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4692:zte-ethio-telecom-in-loggerheads&catid=54:news&Itemid=27

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Green Fuel Solution announce plan to operate in Ethiopia

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Inclusive & sustainable industrial development key to African prosperity

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African countries should adjust to a new model of industrialization, an inclusive and sustainable development, based on their own national conditions to bring prosperity for their people, Ethiopia’s minister of industry said Wednesday.

After the industrialization of many European and Asian states, African developing countries are now striving hard to achieve their own inclusive and sustainable development, a new path to industrialization, which, compared to the old model of growth, in long term, would cause less environmental problem while significantly promoting poverty reduction and employment.

“African leaders have to commit themselves for industrializing their country to bring prosperity for its citizen, so if that is the only way, they have to adjust themselves to inclusive and stainable development.” Ahmed Abtew, minister of industry in Ethiopia, told Xinhua during an UN forum.

In the past 20 years, his country has created capacity for industrialization in urban area, he told Xinhua.

“Now is time to give more focus for industrialization,” he said, adding that “without the industrialization development, no one bring prosperity for its citizens.”

There is no doubt that industrialization is the strongest momentum of the economy growth for developing states in the world, however, in the past, industrialization often comes with some negative effects on the increasingly vulnerable environment.

In the context of the UN post-2015 agenda, high level officials, experts gathered in Vienna from Tuesday to Wednesday, discussing the implementation of inclusive and sustainable industrial development(ISID), a new model of growth for developing counties, also the United Nations Industrial Development Organization(UNIDO)’s new mandate.

UNIDO is an UN organization which provides assistance for developing economies to achieve industrialization.

Abtew told Xinhua, his county has years of experience in developing sustainable industrialization, a strategy in line with the ISID program.

Together with partners, including UN agencies and private sectors, UNIDO is trying to scale up the investment for the ISID to meet the demand of its member states, the main thrust behind the partnership business model is the mobilization of external partners and resources.

“Industrialization will promote employment, one of the big issues you are facing, really very tough.” He said.

Ngouille Ndiaye, Senegal Minster of industry and Mining, told Xinhua, his country currently is faced with tough employment pressure, especially among the youth.

“Industrialization will promote employment, one of the big issues you are facing, really very tough,” he said, adding that Senegal has just started implementing the ISID program.

When asked his view of the industrialization of African states, he said: “I think they (African states) need to follow, they have no choice…we are in the global market, and there are a lot of global and regional policies.”

UN Secretary-General Ban Ki-moon on Tuesday said at the forum’s opening that “the overarching imperative for our planet’s future is sustainable development. We have a vision of a just world where resources are optimized for the good of people. Inclusive and sustainable industrial development can drive success,” adding that “For industrial development to be sustainable it must abandon old models that pollute. Instead, we need sustainable approaches that help communities preserve their resources,” he said.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/141105/inclusive-sustainable-industrial-development-key-african-pro

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http://www.iede.co.uk/news/2014_5569/unido-forum-expresses-cautious-optimism-ethiopia%C3%A2%E2%82%AC%E2%84%A2s-economic-strides

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Update: Allana Potash Releases Optimization Update

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Ethiopia striving to improve transparency in extractive industry: President

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2457:ethiopia-striving-t-improve-transparency-in-extractive-industry-president&Itemid=260

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Mining renewable energy systems 70% cheaper than diesel power

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Mining companies were not traditionally considered a good fit for renewable energy. A closer look shows that this is not true anymore. Numerous renewable energy systems already power mines today, and experts from both worlds – mining and renewables – agree that a boom in this field is ahead.

Mining companies have been facing price pressure for the last few years. Many high-yield mining locations are already exhausted, the material that is extracted today is more difficult to access and it also requires more energy in reduction and purification processes afterwards. The amount of energy per unit is increasing, and so are electricity and diesel prices, whereas the prices for renewable energy, wind and solar, have been falling considerably during the last few years. This is why mining companies are paying more and more attention to renewable energy topics. There is a big demand for information on both sides.

“The objective of THEnergy is to accelerate the application of renewable energy in the mining sector by providing missing information,” points out Dr. Thomas Hillig, founder of THEnergy. One of the key elements of the platform “Renewables & Mining” (www.th-energy.net/mining) is a plant database for renewable energy systems near mines. It contains wind, PV, CPV, CSP and solar thermal plants. “Successful examples in the same industry are very often the catalyst that lays the basis for a breakthrough. They eliminate existing doubts to a large extent,” explains Hillig. By using the platform mining companies also get to know which renewable energy players are already experienced in this field. For renewable energy companies the platform is a good source to discover who the progressive first movers are in the mining industry.

The platform also collects background information such as technical overviews and business models. On a monthly basis, reports and white papers will be published. Finally, a blog allows for discussions among experts and players that are new to the field.

The best business case can be observed for hybrid power plants. In mining, these are solar or wind power systems that are combined with or integrated into existing diesel power plants. Wind and solar energy are often more than 70 percent less expensive than electricity from diesel, especially in remote areas where transportation makes up a large share of the total diesel cost.

http://www.miningreview.com/mining-renewable-energy-systems-70-cheaper-than-diesel-power/

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 Ppc Limited – Ppc Increases Stake In Ethiopia To 51%

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PPC is pleased to advise of the successful acquisition of the Industrial
Development Corporation’s 20% stake in Ethiopian based Habesha Cement Share
Company (“HCSCo”) for a purchase consideration of USD 13 million
(“Acquisition”). PPC’s initial 27% stake in HCSCo, acquired in July 2012,
now rises to 51% while the balance of the shareholding in HCSCo is held by
over 16 000 local shareholders.

HCSCo has begun the construction of a 1.4 million tonnes per annum facility
35 km north-west from the bustling city of Addis Ababa. Project costs for
this factory are approximately $135 million and commissioning of the plant
is anticipated in 2016.

“We are very excited about our increased investment in Ethiopia; a country
with a population of 91 million people that is set to reach 100 million by
2018 and having a growth rate that is expected to remain above 8% in the
medium term.

“This Acquisition will provide further momentum to our growth strategy on
the continent. PPC has, in addition to the HCSCo project, signed EPC
contracts for projects in Rwanda, the Democratic Republic of the Congo and
Zimbabwe; all with construction underway,” commented Bheki Sibiya,
Executive Chairman.

Financial close of this Acquisition is expected in December 2014
once all conditions have been satisfied.

http://www.sharenet.co.za/v3/sens_display.php?tdate=20141105070500&seq=2

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Ethiopia strengthens its information and communication technology policies with UNCTAD support

On 23-25 September 2014, UNCTAD delivered a workshop hosted by the Ministry of Communication and Information Technology (MCIT) of Ethiopia in the capital Addis Ababa on the production of information economy statistics, which was attended by 20 participants from the national statistical office and the MCIT.

With the objective of increasing the availability and quality of data that can support national information and communication technology (ICT) policy making, Ethiopian stakeholders agreed during the workshop to join efforts to develop official information economy statistics and to include such statistics in the national statistical plan.

“At this time, national coordination of ICT statistics [in Ethiopia] is very important“, one of the participants said.

Recognizing the importance of ICTs as tools for economic development and social inclusion, Ethiopia has put in place a National ICT Policy and Strategy and is drafting legislation to facilitate e-commerce. The (MCIT) of Ethiopia is being assisted in these endeavors by UNCTAD, which is reviewing Ethiopia’s cyber-legislation and developing statistics to measure progress in the information economy.

In May 2014, UNCTAD reviewed drafts of the Ethiopian Electronic Transactions Proclamation (ETA), the Ethiopian Electronic Signature Act (ESA), the Ethiopian Computer Misuse Proclamation, and the Ethiopian Data Protection Proclamation. The government has expressed its appreciation to UNCTAD for having helped to incorporate new ideas, and reorganize and validate the documents. The drafts are currently under consultation and will be finalized with the Ministry of Justice.

UNCTAD’s work on ICT and Law Reform is financed by the Government of Finland. The statistical workshop was supported by the Swedish International Development Agency (Sida), through a trust fund project building the capacity of developing countries to benefit from ICT.

Quick link:   Information and Communication Technology for Development

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http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=874&Sitemap_x0020_Taxonomy=Information and Communication Technologies;#1450;#Technology and Logistics;#20;#UNCTAD Home

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Demand for second-stage land certification in Ethiopia: Evidence from household panel data

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Author:

Sosina Bezu & Stein Holden

Publication date:

Saturday, 1 November 2014

Type:

• Research paper

Producer:

External to ACUI

Project theme:

Urban Land Tenure and Markets

Full document download:

demand_for_second-stage_land_certification_in_ethiopia.pdf

Abstract:

Ethiopia has implemented one of the largest, fastest and least expensive land registration and certification reforms in Africa. While there is evidence that this ‘first-stage’ land registration has had positive effects in terms of increased investment, land productivity and land rental market activities, the government is now piloting another round of land registration and certification that involves technically advanced land survey methods and computer registration.

This ‘second-stage’ land registration differs from the registration system employed in the first round that used field markings in conjunction with neighbors’ recollections to identify plot borders. We use panel data from 600 households in southern Ethiopia to investigate household perceptions of and demand for such a new registration and certification.

Our study revealed relatively low demand and willingness-to-pay (WTP) for second-stage certificates. The WTP also decreases significantly from 2007 to 2012. Our findings indicate that farmers do not believe that the second-stage certificate enhances tenure security relative to the first-stage certificate except in instances in which first-stage certification was poorly implemented. The demand for second-stage certificates appears to come primarily from governmental authorities, as it can provide a better basis for land administration and produce accessible public documentation of land-related affairs.

By Sosina Bezu & Stein Holden in Land Use Policy, Volume 41.

http://urban-africa-china.angonet.org/content/demand-second-stage-land-certification-ethiopia-evidence-household-panel-data

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Post-harvest losses are estimated to remove as much as 50% of crops from the food supply in developing countries. Moisture, infestation and rotting are major problems for farmers and processors, leading to reduced income and aggravating hunger.

Research and private sector organisations are coming up with solutions to combat post-harvest losses. These are a few of them:

Pics bags

Up to 50% of cowpeas, an important food crop in west and central Africa, are lost to weevil infestation. The Purdue Improved Cowpea Storage (Pics) bag – first developed in 2007 by Purdue University – provides a cheap solution.

The bag consists of two inner polyethylene plastic bags and an outer nylon sack. This reusable triple layer bag sells for $2 and seals the contents from oxygen, killing insects inside.

More than 3.2m Pics bags were sold across west and central Africa between 2007-2013, and farmers have started using them for other crops too.

“This technology has also contributed to price stabilisation,” says Sara Farley, chief operating officer and co-founder of the Global Knowledge Initiative (GKI), which researches post-harvest opportunities.

“Where consumers used to purchase cowpeas for as little as $20 per 100kg bag, the market price has stabilised at $40,” says GKI report Reducing Global Food Waste and Spoilage.

Solar bubble dryer

Farmers often depend on drying crops in the sun. Variable weather conditions make this risky, and crops may be exposed to vermin or contaminants.

In September 2014, GrainPro, the International Rice Research Institute and Germany’s Hohenheim University launched the solar bubble dryer. With a transparent polyethylene cover over a plastic floor, it’s like a bubble that traps solar radiation, with moisture expelled through mains power or solar-powered ventilators.

At $1,700 for the version, or $2,200 for the solar-powered version, the dryer is not cheap but will be a worthwhile investment for some.

“It’s especially beneficial to smallholders in developing regions where rapidly changing weather is contributing to massive food losses,” says Victor Dela Casa, a spokesperson for GrainPro

C:AVA

Cassava is a staple crop in Africa, but has a short shelf life after harvesting. One way of reducing losses is to process it quickly into high-quality cassava flour (HQCF).

The C:Ava project, led by the Natural Resources Institute (NRI), is working with partners in Ghana, Tanzania, Uganda, Nigeria, and Malawi to both improve yields and develop processing capacity for more than 90,000 cassava growers. It has trained farmers to grow different cassava varieties, and introduced graters and presses for on-farm pre-processing of raw cassava roots into wet cakes with a longer shelf life.

“We think it is important to consider post-harvest losses both from a physical loss perspective and from an economic loss perspective,” says Andrew Westby, director of the NRI. “The project has focussed on skill development to enable farmer enterprises to process products for higher value markets.”

Mud silos

These have been used in some parts of Ghana for hundreds of years, but are still not widespread. Constructed of local grasses and mud, these storage units contain several compartments for crops, and can store up to about 1.5 metric tonnes of grain. If well maintained, they can last up to 50 years.

Recently, a project led by the US-based Opportunities Industrialisation Centers International (Oici) has been introducing the silos to parts of Ghana where they are not traditionally used. Oici’s research has found that mud silos reduce losses to almost zero, provided grains are well dried and treated before storage to prevent rotting or infestation.

To date, Oici has constructed almost 6,000 mud silos in Ghana, costing less than $25 each. But while cheap and effective, further scaling up depends on raising awareness and acceptance in communities, and identifying appropriate local materials.

Intervention modelling tool

Development organisations or other actors trying to reduce post-harvest losses need to work out where to invest their efforts. A tool launched in July, also by the NRI, may help.

The graphical modelling tool identifies which interventions will be most effective for losses along a whole value chain. Users can experiment with investments in loss reduction, and a panel displays corresponding changes in loss values.

“It’s intended as an imaginative way of getting people to think about key factors affecting investment in loss-reduction projects,” explains Rick Hodges, visiting professor of grain post-harvest management at the NRI.

“It doesn’t make decisions for the user, but shows how three important factors – efficiency, adoption rate and investment – interact.”

Gum arabic coating

Modified atmosphere packaging slows decay, but is relatively expensive. Researchers at the Centre of Excellence for Post-harvest Biotechnology (CEPB) at the University of Nottingham Malaysia have come up with a cheap alternative: edible coatings, made of gum arabic.

CEPB’s research found that applying a solution with a 10% gum arabic edible coating delayed tomato ripening and meant the fruits could be stored for up to 20 days without deteriorating.

Gum arabic is derived from acacia trees native to the Sahel. This makes it a potentially sustainable tool for farmers in that region to use in post-harvest handling, though widespread use depends on the development of production and distribution channels, and raising awareness among smallholder farmers.

Read more like this:

• 10 ways development can support family farmers

• Six innovations revolutionising farming

• Three practical steps to go from hunger to abundance in Africa

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Sourced here  http://www.theguardian.com/global-development-professionals-network/2014/oct/27/farming-post-harvest-loss-solutions-developing-world

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Kenya – Ethiopia highway to be ready next year

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Road construction in progress. A 505-kilometre highway linking Kenya and Ethiopia is expected to be ready next year.

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The tarmacking of the main road linking Kenya with Ethiopia is expected to be completed by end of next year, official said.

Marsabit Governor Ukur Yattani said the 505-kilometre Isiolo-Marsabit-Moyale road was 60 per cent complete and that work was continuing well.

“Construction is ongoing. By the end of next year, we will have connected Addis Ababa to Nairobi on tarmac road, a thing that will change the economy of this place,” Mr Yattani, whose county is the largest and occupies 15 per cent of Kenya’s landmass, said.

The road is expected to cost $517 million (Sh46 billion) and is funded by the African Development Bank, the European Union and the Kenya Government.

The Governor said the road would ease travel to Nairobi, which used to take four days but has since been reduced to one.

Create jobs

“Petrol stations will come up. We also have lodges, cottages, banks and other institutions. The road will be a game changer,” Mr Yattani told journalists at his office.

Mr Yattani said: “Our worry now would be how to control the influx of people.”

“We will open ourselves to competition. We encourage it. People should come and create jobs to our people,” Mr Yattani said.

Separately, Laisamis MP Joseph Lekuton told the Press he was happy with the road construction progress.

“The contractor has done a great part. We are hopeful it will be completed on time. We need it like yesterday,” Mr Lekuton said by phone.

http://www.africareview.com/Business—Finance/Kenya-and-Ethiopia-highway-to-be-ready-next-year/-/979184/2513430/-/dk0g64z/-/index.html

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Ethiopia targets $1bn coffee yield

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By Tinishu Solomon

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Ethiopian President Mulatu Teshome says the country’s coffee industry has to increase exports to reach a $1 billion annual revenue target.

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Despite a steady increase in coffee production in recent years, Ethiopia’s supply to the global market has not exceeded a target of 200,000 metric tonnes.

Speaking at the 3rd International Ethiopian Coffee Conference, Teshome said in 2013/2014 exports were lower than in 2010/11 where coffee exports reached 196,118 metric tonnes and the country earned close to $842 million.

Official statistics show that the amount of coffee exported in the 2013/14 Ethiopian fiscal year was 190,837 metric tonnes.

“We must now break this one time export income record by supplying more quality to the global market surpassing the near 200,000 metric tonnes registered so far and generating export income reaching $1 billion,” he said.

The annual conference is focusing on how to promote and increase the quality of Ethiopian coffee.

Research shows that about 10 percent of Ethiopia’s coffee production comes from the age old practice of gathering wild coffee beans in forests, while 35 percent comes from partially tended wild bushes, and 50 percent is produced in small plots as a secondary crop.

While the growth of Ethiopia’s coffee industry in the past few years has largely been attributed to its modernisation, only five percent of the East African country’s coffee is produced on plantations dedicated to coffee production.

Officials of United States say they are keen to support the cofee sector in Ethiopia.

“The U.S. is working to help identify new markets and private sector partners and investors, including from the U.S.,” US deputy chief of mission, Peter Vrooman, said.

“Our dual purpose is to not only ensure the expansion of the coffee industry in Ethiopia but also the greatly improved livelihoods of a legion of small coffee growers whose entire families will benefit.

Ethiopia exports 24 Arabica coffee varieties to a limited number of foreign destinations. Seven countries, including Japan, Georgia, Germany, Saudi Arabia, USA, Belgium and France, alone buy over 70 percent of Ethiopia’s coffee.

http://www.theafricareport.com/East-Horn-Africa/ethiopia-targets-1bn-coffee-yield.html

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Chinese Company Interested in Building Huge Factory in Ethiopia

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The Chinese company, Media Group, which is engaged in producing electronics and household goods disclosed that it wants to invest in Ethiopia.

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Representatives of the company are on a two-day visit here in Ethiopia to identify sectors in which they could engage and carry out feasibility study.

Prime Minister Hailemariam Dessalegn held discussions with the leader of the delegation and former World Bank Chief Economist, Professor Justin Lin.

During the discussion, the PM said his government will provide all the necessary support for the company, including establishing industrial parks, if it starts work in the country.

The company will be profitable if it invests in Ethiopia since the country has abundant labor force and market opportunity in addition to the prevalent peace and security, the premier noted.
The manufacturing sector should be the motor of the economy in enabling the nation to become a middle-income country, he further indicated.

Professor Lin on his part said Media Group is one of the leading Chinese electronic and household goods manufacturers and has the desire to invest in Ethiopia.

The company has plans to build a huge factory in Ethiopia and to export its products to African and other countries, the professor added.

Upon going operational, the company will contribute to the transformation of the manufacturing sector in Ethiopia, according to Professor Lin.

Media Group is the second huge private company in China with sales exceeding 25 billion USD in a year.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2474:chinese-company-interested-in-building-huge-factory-in-ethiopia&Itemid=260

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Ethiopia, South Africa sign cooperation agreement in science, technology

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Ethiopia and South Africa signed here today a cooperation agreement in science and technology.

During the signing ceremony, Science and Technology Minister, Dammitu Hambessa, said the collaboration of the two countries would enable them to boost their capacity in science and technology and enhance their growth.

The agreement will also contribute to the success of the agricultural led industrial policy of Ethiopia, according to her.

Ethiopia and South Africa will cooperate in poverty reduction, agriculture, animal and plant research, health research and training, it was indicated.

According to Dammitu, such agreements will have huge contribution to the enhancement of the slow science and technology growth in Africa, besides the benefits the countries draw from them.

South Africa’s Minister of Science and Technology, Naledi Pandor, said on her part the countries will work to fill the gaps in human resource and technology by exchanging students and researchers.

The collaboration will have its own contribution to the building of the capacity of Ethiopian researchers and the technology as South Africa has organized science agencies, many researchers and research works, the minister pointed out.

http://www.waltainfo.com/index.php/explore/15946-ethiopia-south-africa-sign-cooperation-agreement-in-science-technology

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 Kigali, Addis Build Cooperation Framework

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By Collins Mwai

The management of the cities of Kigali and Addis Ababa, Ethiopia, are in the process of signing a framework of cooperation between the two cities.

The Ambassador of Ethiopia to Rwanda, Gegefe Bula Wakjira, told The New Times that discussions on the agreement are at an advanced stage.

He said the agreement intends to strengthen the working relations and mutual ties of the two countries at City administration level as well as benchmarking opportunities and interests.

Amb. Wakjira said he had held discussions with the City mayor Fidel Ndayisaba on progress on the issue.

“We want Addis Ababa to learn from Kigali and they (Kigali) could learn from us too,” the envoy said.

The agreement comes at a time when the country is building its profile to become a reputable host for international meetings, conferences and exhibitions through a marketing strategy has been designed to market the country at an international level, highlighting the availability of the infrastructure and services such as exhibition spaces and hotels.

The initiative, dubbed “Meetings, Incentives, Conferences and Exhibitions,” is in line with diversifying the current tourism product offering while complementing existing gorilla tourism, eco-tourism, cultural and community-based tourism products that are the mainstays of Rwanda’s economy.

Hosting global events:

A Convention Bureau has since been created to the effect to get in touch with international conference organisers and centres to see how to Rwanda can host events.

The Ethiopian capital is a major host of numerous international organisations, and is United Nations third largest duty station after New York and Geneva, as well as the African Union host city.

“Almost every day, there is a conference hosted there which has caused a boom in the hospitality sector, Kigali can draw lessons and best practices in this area to add to the ongoing efforts,” Amb. Wakjira said.

He added that the city was on the right track to achieve these goals going by the rapid development in recent years.

Ndayisaba referred to the agreement that is being drafted as a formalisation of cooperation mutual ties as the two countries have had a close relationship over the years.

“Though the agreement is still being drafted, in principle, we have agreed. It will provide a formal platform to share our best practices with the Ethiopian capital in different areas,” Ndayisaba said.

The development trajectory of the two cities have similarities and challenges, hence the importance of the close cooperation, he added.

http://allafrica.com/stories/201411060329.html

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Djibouti Plans LNG, Oil Terminals to Develop Regional Trade

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Ethiopia’s Prime Minister Says Natural Resources Can Catalyze Africa’s Development

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http://www.afdb.org/en/news-and-events/article/ethiopias-prime-minister-says-natural-resources-can-catalyze-africas-development-9866/

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China Mounts Business and Technology Expo in Addis Ababa

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Chinese ambassador to Ethiopia Xie Xiayon talking with Chinese Premier Li Keqiang regarding the details of the latter’s visit to Africa in May.

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The Chinese Ministry of Commerce is currently holding a business and technology expo in Ethiopia’s capital Addis Ababa, Xinhua News Agency reported.

The 2014 “(Africa) China Commodities, Technology and Services Expo,” which began on Monday and will run until Wednesday, features more than 100 Chinese companies showcasing their products.

The expo is aimed at enhancing business cooperation among China, Ethiopia and other African nations, according to the Xinhua report.

The showcase is geared toward creating opportunities for businesses and buyers to personally interact, as well as allow for discussions on information and technology dialogues.

Xie Xiayon, Chinese ambassador to Ethiopia, said during the opening that the expo is an effort to further promote the exchanges and cooperation within the business communities where China, Ethiopia and other African countries belong.

The officials also spoke of the growing relationship between China and Ethiopia.

“Our countries have made many fruitful achievements through cooperation in politics, economy, trade, culture, education, science, technology and other areas. Ethiopia is China’s important strategic partner in Africa,” Xie said.

The ambassador reiterated the six areas Chinese Premier Li Keqiang mentioned during an African visit in May which should be pursued in order to strengthen cooperation between China and Africa.

Industry, finance, poverty reduction, environmental protection, cultural exchanges and peace and security are these six areas, according to the ambassador.

Meanwhile, Tadesse Haile, Ethiopian minister of industry, said that Ethiopia and China are benefitting from great bilateral relations.

The two countries, the minister said, share many ideas that can be used to promote accelerated and sustainable economic development.

http://en.yibada.com/news/china-mounts-business-and-technology-expo-in-addis-ababa-7855

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Dalol begins supplying coal, pet coke

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Dalol Oil SC, which is one of the four Ethiopian owned oil companies, announced that it will begin supplying alternative energy products for the manufacturing sector. The company that began operating in the beginning of 2012 has stated its intention to begin importing coal and petroleum coke (pet coke) in the current budget year.

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Currently, National Oil Ethiopia (NOC) is the only supplier of these two products, and now Dalol will be the second.
According to Serkalem G.Kirstos, CEO of Dalol Oil, the company began importing bitumen/asphalt last fiscal year in addition to the usual lubricant and petroleum (fuel) import.
During its second year of operation the oil firm registered significant profit even though it is usual to take a loss for five years in that industry.
The CEO said that the new energy supplies that the company introduced in the past budget year has played a major role in the company’s success.
In the past budget year the company has supplied bitumen for the Ethiopian Road Construction Corporation (ERCC), Addis Ababa City Roads Authority (AACRA) and Tidhar Group, an Israeli company that constructs roads in Addis Ababa and some other parts of the country.
The product of coal and pet coke is an alternative energy source for the manufacturing sector, like cement factories, which require a significant amount of energy for their production.
The annual report that the oil company released at the general assembly indicated that Dalol supplied 7,500 barrels (1,463 metric tons) of bitumen for its clients.
In the past budget year the company distributed 37.4 million liters of petroleum, which is an increase of 210 percent growth compared with the 2012/13 budget year.
The company that imports the lubricant from Saudi Arabia’s Petromin, a sister company of Saudi Aramco, a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia, has also shown significant growth in terms of the supply compared with the preceding year.
The total volume of lubricant that the company supplied in the past budget year was 206.7 metric tons, which is 750 percent higher than the 2012/13 achievement.
As of the end of the past fiscal year the non-current assets of the company reached 22.1 million birr and the current assets are set at 198.2 million birr.
According to the annual report, the oil company has undertaken 700 million birr in sales. Despite financial constraints the company has been very successful.
The external audit report stated that the company has registered about 10.5 million birr in profits before tax. The net profit after tax for the year was 8.5 million birr, which accounted for a loss during its first year of operation.
The CEO told Capital that even though the company registered good performance for the stated year, financial constraint has been a challenge for the company’s growth. He said that the company should expand its capital to go through on big capacity projects. To accomplish this, the company has decided to expand its capital.
The annual report indicated that the company has plans to put 22.5 million birr worth of subscribed but unpaid shares for interested buyers.
It stated that it has begun negotiations with interested companies and individuals to sell  the stated amount of shares.
The total paid up capital reached 41.7 million birr, while the subscribed shares are 64.1 million birr.
At the general assembly held at Global Hotel, the board of directors chaired by Dereje Walelegn proposed that the expansion of the company’s capital to 400 million birr aiming to boost the company’s operation, which is highly capital inducement.
Currently, ten oil station are operating under Dalol, and out of this two are company owned dealer operated (CODO), which are owned by Dalol and operated by investors, while the other eight stations are controlled under a dealer owned dealer (DODO) arrangement or fully owned by investors.
Serkalem expects this will expand to 15 stations and four CODO stations this year including one in Addis Ababa.
Serkalem was the general manager of Continental Petroleum and the Managing Partner of Habitable Business Solutions which works on the environment. He was also commercial manager of NOC. His contribution in introducing alternative sources of energy like Petroleum Coke in Ethiopia, for the first time when he was at NOC, is considered to be a huge success. He is the second CEO of Dalol since it began operating.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4699:dalol-begins-supplying-coal-pet-coke&catid=35:capital&Itemid=27

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We are open for business: Previously closed Ethiopia flutters eyes at African investors

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Ethiopia’s construction boom is a visible part of its fast-growing economy. (Photo/File)

ETHIOPIA is now courting new investors from as far as South Africa to participate in the growth story of one of the continent’s emerging economic success stories. 

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ZTE at Risk of Losing Ethiopia Telecom Contract

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Ethiopia Already Giving Pieces of ZTE’s Business to Huawei Amid Pricing Concerns

http://online.wsj.com/articles/ethiopia-warns-zte-it-could-lose-telecom-contract-1415899137?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB11151172388113754324204580274711861476610.html

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Israel Chemicals CEO: We’ll fire 600 in Israel, invest overseas

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Will the  Israeli cabinet and the Knesset call Borgas’ bluff, and how serious is ICL really about it’s Ethiopian interests? Minimal financial commitment in Danakil indicates little more than posturing thus far.

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The threats follow the Sheshinski 2 Committee’s recommendations for increasing government revenue from natural resources.

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AUC and KfW Sign a Financing Agreement for the Geothermal Risk Mitigation Facility

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East Africa Targets Cross-Border Debt Sales to Fund New Railways

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By Emily Bowers Nov 13, 2014

The East African Community plans to allow bond sales across four markets in the bloc as investors look to fund projects such as railways that will link up the region.

The framework will allow for the sale of “multi-jurisdictional, multi-currency” debt from within or outside the four-country group, Paul Muthaura, acting chief executive officer of the Capital Markets Authority in Kenya, the region’s biggest economy, said at a conference in Cape Town today.

The group that also includes Uganda, Tanzania and Rwanda is set to expand 6 percent this year, faster than the sub-Saharan African average of 5.1 percent, according to the International Monetary Fund, as governments in the region invest in roads and energy projects. Kenya sold infrastructure bonds last month for the first time in a year.

A railway linking Mombasa, Kenya with Kigali and Kampala is project that may be funded with debt, Muthaura said. Another is the Lamu Port and New Transport Corridor Development to Southern Sudan and Ethiopia project, which will include an oil pipeline and refinery, he said.

‘‘As we see many domestic issuers in any one of the EAC markets moving into the others, they want to be able to capital raise relevant to their pipeline of projects in different countries,’’ he said. One ‘‘regional entity’’ has been approved for a bond sale, Muthaura said, without giving details.

‘‘They’re just looking at the markets to find the right timing for the issuance,’’ he said. ‘‘There are ongoing engagements with other potential issuers. We’re hoping to see that once an actual issuance hits the market, we hope it will have a very catalytic effect.’’

Kenyan shilling sovereign debt returned 0.8 percent this quarter, compared with a loss of less than 0.1 percent among 16 emerging markets tracked by Bloomberg indexes.

http://www.bloomberg.com/news/2014-11-13/east-africa-targets-cross-border-debt-sales-to-fund-new-railways.html

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Ambassador Sinknesh Ejigu presents credentials to the president of Brazil

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The newly appointed Ambassador of Ethiopia to Brazil, Chile and Argentina, Ambassdor  Sinknesh Ejigu presented  her  credentials to the president  of Federal Republic of Brazil, Dilma Roussef  on Monday , November  10, 2014.

On the occasion of presenting her credential, Ambassdor Sinknesh convey the good wishes of Ethiopian President Dr. Mulatu Teshome for the well being of the president of Federal Republic of Brazil and  prosperity for its  people.

Ambassador Sinknesh also congratulated president Dilma for re –election as the president of Brazil and emphasized her appointment will bolster the existing bilateral relations between the two countries.

Ambassador Sinknesh appreciated Brazil’s pro-poor policies and its dramatic economic growth and development, which has positive inspiration in sharing the best practices of Brazil to eradicate poverty for many developing countries like Ethiopia.

President Dilma on her part admired Ethiopia’s role in promoting peace and security within the horn Africa and African continent using IGAD and AU.

During their conversation both parts agreed to work hard in the areas such as technology transfer, investment, tourism and culture further strengthen the relationship between the two countries.

http://www.waltainfo.com/index.php/explore/16050-ambassador-sinknesh-ejigu-presents-credentials-to-the-president-of-brazil

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ABB to power new railway line in Africa

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Zurich, Switzerland, November 12, 2014 – ABB has won orders worth around $16 million to supply traction substations and auxiliary power supply for a new rail corridor in Ethiopia. The Awash-Kombolcha-Weldia line is part of a five-year growth and transformation plan being implemented by the Ethiopian Government to provide efficient mobility, facilitate trade and strengthen the economy. The order was booked in the third quarter.

The contract was awarded by Yapı Merkezi Construction and Industry Inc., a leading Turkish transportation infrastructure company. The project is scheduled for completion in 2017.

ABB will design and supply engineered equipment packages for five 230/25 kilovolt (kV) traction substations, eight section posts and about 30 auxiliary substations. Key products to be supplied include a range of high and medium-voltage switchgear, traction transformers rated at 25 megavolt-ampere (MVA), power factor correction (PFC) transformers, FSK II+ railway circuit breakers and auxiliary power supply equipment.

The 400-kilometer Awash-Kombolcha-Weldia railway line will connect the northern and eastern traffic corridors of Ethiopia via Kombolcha and Weldia/Hara Gebeya in the north. The line will also connect to the line linking Addis Ababa, the Ethiopian capital, to the port of Djibouti. This will enhance passenger travel and trade, reducing travel time to the port by 50 percent.

“These substations will enable the efficient supply of electricity to power the network’s expansion and ensure reliable operation and performance of this rail network,” said Claudio Facchin, head of ABB’s Power Systems division. “ABB has a wide range of technologies and a strong track record of providing innovative solutions for the rail sector, serving communities all over the world. This order also shows our increased focus on expanding in Africa.”

ABB has a range of power and automation products and solutions for the rail industry and a vast global installed base. Increasing concern for the environment, rapid urbanization, the need to move more people and freight faster, and volatile fuel prices make rail a strategic focus sector for the company.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility, industry, and transport and infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in roughly 100 countries and employs about 145,000 people.

http://www.abb.com/cawp/seitp202/50f9170821686424c1257d8d004d5ff1.aspx

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President urges Ethiopian professionals to adapt technology, effect knowledge transfer

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President Mulatu Teshome said Ethiopia will work hard to get out of foreign dependency by gradually making transformation in technology and knowledge.

The president made the statement while visiting the Adama I and II wind power generating projects along with China’s Ambassador to Ethiopia Xie Xiaoyan and other officials.

He noted on the occasion that the main objective of the visit is to witness the ongoing constructions that ensure that the country can build green economic development and nation building by utilizing renewable resources.

According to Mulatu, Ethiopia has the potential to generate 1.3 million megawatt electric power from wind. Even if the country currently produces 100,000 megawatt from the sector, this will hugely speed up the growth of the country, he added.

Commenting on the relatively short height of the stand of the windmills in Ethiopia, the president pointed out that it was due to the difficulty in transporting them.

Attention should therefore be given to the problem and Ethiopian professionals have to produce those locally, he stressed.

Ethiopian engineers should not only design and produce similar components but adapt those to produce better items, Mulatu stated.

As it was possible to substitute big construction equipment that require huge foreign currency for the construction of the GERD, the production of wind power generating materials should also be given due attention, President Mulatu said.

China’s Ambassador to Ethiopia Xie Xiaoyan on the occasion said the longstanding Ethio-China relationship has been consolidated in all spheres.

Wind power generating projects play a vital role in supporting the effort in building green economy by using renewable power source, he added.

Head of  Adama II Wind Power Electric Generating Project, Solomon Tadesse on his part said 83.6 percent of the project is finalized. The project, which is expected to generate 153 megawatt, costs 345 million USD.

The Chinese government covers 85 percent of the cost and the rest is covered by the Government of Ethiopia, it was indicated.

According to ENA, the project is expected to get finalized by the end of the current Ethiopian budget year.

http://www.waltainfo.com/index.php/explore/16049-president-urges-ethiopian-professionals-to-adapt-technology-effect-knowledge-transfer

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Sub-Saharan Africa will overtake Europe as second-largest mobile internet market by 2020

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A new forecast nominates 2020 as the year that half the world’s population is connected to mobile internet, and the forecaster, GSMA Intelligence, says Sub-Saharan Africa will lead the boom.

The number of mobile internet users globally is set to reach 3.8 billion by 2020, up from 2.2 billion total users in 2013.

Sub-Saharan Africa is set to lead the boom, having been the world’s fastest-growing mobile region for the last five years. 49% of the population in this region will be accessing the internet via mobile by 2020, overtaking Europe to become the world’s second-largest mobile market after Asia Pacific.

As 3G and 4G connections gain availability in developing regions such as Sub-Saharan Africa, the number of 2G mobile internet subscribers is set to shrink from 900 million to 800 million, while the number of mobile broadband users doubles.

Communications technology provider Ericsson expects mobile data traffic in Sub-Saharan Africa to grow 20-fold between 2013 and 2019, twice the expected global growth rate over the same period (from 37,500 terabytes a month in 2013 to 764,000 terabytes a month by 2019).

The six largest markets of the total 46 countries together account for over half the region’s unique mobile subscriber base. In order of size, these are: Nigeria, South Africa, Ethiopia, Kenya, Democratic Republic of Congo and Tanzania.

The GSMA’s ‘Digital Inclusion’ report states the following four challenges as being critical for mobile operators, governments and NGOs to deal with this mobile internet boom:

• Extension of network coverage into remote areas,
• lowering the cost of mobile ownership by not imposing heavy fees,
• improving illiteracy and a lack of internet awareness, and
• ensuring availability on a variety of devices in many languages.

The GSMA has released a Code of Conduct for Mobile Money Providers, outlining how businesses can provide safe and responsible digital financial services. Mobile network operators to have endorsed the code represent money deployments in 51 countries and include Airtel, Avea, Axiata, Etisalat, Millicom, MTN, Ooredoo, Orange, Telenor, Vodafone and Zain.

GSMA director general Anne Bouverot described mobile as “the gateway to the internet” for billions of people across the world who are currently unable to get online.

“Mobile technology is already playing an invaluable role in the social, economic and environmental development of the developing world; the mobile internet has the potential to trigger a new wave of growth and innovation if we can remove the barriers to digital inclusion.”

http://sodere.com/profiles/blogs/sub-saharan-africa-will-overtake-europe-as-second-largest-mobile

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Israel Chemicals posts 8% rise in Q3 sales

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The company has earmarked $435 million for investment in its Catalonia potash works.

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http://www.globes.co.il/en/article-israel-chemicals-posts-8-rise-in-q3-sales-1000985711

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Ethiopia earns close to $1 Billion US from pulses, oilseeds

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The President of Federal Democratic Republic of Ethiopia Dr. Mulatu Teshome said Ethiopia has earned close to 1 billion USD from pulses, oilseeds and spices in the 2013/4 fiscal year.

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Addressing the participants of t the 4th International Conference on Pulses, Oilseeds and Species, the president said   the sector contributed 920 million USD to the export earnings of the country with a share of over 28 per cent.

The growth trajectory that we have had observed in the last four years is very encouraging, notwithstanding that the country earns from the sector is still below what it would have potentially endowed, he added.

The president also said that Ethiopia has endowed with untapped and immense investment opportunities in the areas of agriculture with favorable climate which is suitable for the production of Pulses, Oilseeds and Spices.

He urged stakeholders to participate in the sector and do their level best in contributing to Ethiopia’s strong economic performance through value addition of Ethiopian pulses, oilseeds and spices.

He also called up on investors to invest in Ethiopia where there is availability of vast, virgin, fertile and cultivable land, abundance of trained and easily trainable labor force.

Ethiopia’s trade performance has improved since the commencement of GTP I in the 2010/20111 fiscal year. However, our exports remained dominated by agricultural primary commodities, and the observed performance was substantiated by increasing the volume of export, and not through value addition, the president underscored.

According to the president, the government is fully committed not only to boost the sector’s potential but also its operational capacity by making it more vibrant to meet the needs of international markets.

The conference is organized under the theme of “Global Partnership for Sustainable Market Growth” with the objective of boosting the sector and make benefit more the economy and all the stake holders in the value chain.

Ministers, ambassadors, stake holders and Ethiopian business partners were in attendance in this a two days conference.

http://www.waltainfo.com/index.php/editors-pick/16046-ethiopia-earns-close-to-1-bln-usd-from-pulses-oilseeds-

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Doing Business in most parts of the world becoming easy

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Ethiopia is placed 132 out of 189 countries for ease of doing business, according to a new report.

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Singapore and New Zealand took the top spots, while Libya and Eritrea are labeled as the worst in the Doing Business Report, published by the World Bank and International Finance Corporation.

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Joining Singapore and New Zealand on the list of the top 10 economies with the most business-friendly regulatory environments are; Hong Kong, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.

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The report finds that 85 percent of economies in Europe and Central Asia implemented at least one regulatory reform aimed at making it easier for local entrepreneurs to do business in 2013/14, a larger percentage than in any other region.

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“Since 2004 the Doing Business report has captured more than 2,400 regulatory reforms making it easier to do business. In the year from June 1, 2013, to June 1, 2014, 123 economies implemented at least one reform in the areas measured by Doing Business” the report reads.

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Doing Business 2015: Going Beyond Efficiency shows that in the past year, economies in Europe and Central Asia further improved the regulatory environment for local entrepreneurs, adding to the gains recorded in the past decade. For example, 10 years ago, starting a new business took a Macedonian entrepreneur 48 days. Today, the process can be completed in 2 days.

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The report further said that 21 economies, including 6 in Sub-Saharan Africa and 6 in the OECD high-income group, implemented 3 or more reforms reducing burdensome bureaucracy or improving legal and regulatory frameworks. Globally, more than 80 percent of the economies covered by Doing Business had an improvement in their distance to frontier score, “it is now easier to do business in most parts of the world” according to the report.

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“Sub-Saharan Africa, the region with the largest number of economies, accounted for the largest number of regulatory reforms in 2013/14, with 39 reducing the complexity and cost of regulatory processes and 36 strengthening legal institutions.

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Sub-Saharan Africa had the second largest share of economies implementing at least one reform and the second largest average improvement in distance to frontier scores. Latin America and the Caribbean and South Asia remain the 2 regions with the smallest share of economies implementing regulatory reforms as captured by Doing Business.

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The report also stated that online access to credit reporting systems is growing in the developing world. “Ethiopia’s central bank established a credit information center to allow banks to submit data and inquiries electronically. A pilot program was launched in August 2011 with 3 commercial banks, and by April 2012 the online system was fully implemented.”

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“Today 17 Ethiopian banks are registered as data users and provide monthly updates. The objective for the online system is to preserve and distribute 5 years of historical data on the repayment status of all loans.”
Among the 21 economies with the most reforms making it easier to do business in 2013/14, 10 stand out as having improved the most in performance on the Doing Business indicators: Tajikistan, Benin, Togo, Cote d’Ivoire, Senegal, Trinidad and Tobago, the Democratic Republic of Congo, Azerbaijan, Ireland and the United Arab Emirates.

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“Together, these 10 top improvers implemented 40 regulatory reforms making it easier to do business. Among these 10, only Cote d’Ivoire featured among the 10 top improvers in last year’s report.”
However the report states that being recognized as top improvers does not mean that these economies have exemplary business regulations; instead, it shows that these economies have placed serious efforts in regulatory reform in the past year and made the biggest advances toward the frontier in regulatory practice. “Many of the 10 top improvers still face many challenges on their way to international best practices in business regulation, including high bureaucratic obstacles, political instability and weak financial institutions” the report reads.

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This year’s Doing Business report launches a 2-year process of introducing important improvements in 8 of the 10 sets of Doing Business indicators. These improvements provide a new conceptual framework in which the emphasis on the efficiency of regulation is complemented by an increased emphasis on its quality. In the area of dealing with construction permits, for example, Doing Business will measure the quality of building regulations and the qualifications of the people reviewing the building plans in addition to the efficiency of the process for completing all the formalities to build a warehouse.

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Doing Business 2015 is the 12th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. The report presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies. Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4697:doing-business-in-most-parts-of-the-world-becoming-easy-&catid=35:capital&Itemid=27

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 Strategic Document Prepared to Make Ethiopia Major Fruits, Vegetables Exporting Country

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A strategic document that envisages making Ethiopia a major fruits and vegetables exporting country in the coming ten years by consolidating irrigation development is readied, according to Ministry of Agriculture. 

Small Farmers Horticulture Development Head, Solomon Dagne, said studies have proved that Ethiopia can attain impressive achievements in irrigation development by utilizing its suitable farm land, reliable water resources and productive human resource.

According to him, the Ministry of Agriculture has prepared a strategic document that enables the country to become fruits and vegetables exporting nation by using its potential resources in irrigation development within ten years.

The head, who noted that the demand for Ethiopian fruits and vegetables has been growing at the international market, added that its annual income from the products has jumped from ten million to 30 million USD.

Regional states that require special support would be made to extensively engage in irrigation development and to supply their products directly to foreign markets and local industries in the coming years, according to Solomon.

Ethiopia has 4.2 million hectares of irrigable land, out of which only half is utilized to produce annually more than 203 million quintal produces in the sector, he indicated.

http://213.55.98.22/enae/index.php?option=com_k2&view=itemlist&task=date&month=11&year=2014&limitstart=30

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Farmers turn to fruit farming for juicy returns

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Written by Harrison Agundo for Farmbizafrica

As the market for traditional crops become saturated and diseases ravage traditionally lucrative crops like maize and wheat, farmers keen on maximising their income are turning to fruit farming which has seen them more than triple yields and incomes.

From yellow and purple passion fruits, Red Royale pawpaws, bass avocados and apples, vanguard farmers have found gold mines in these fruits with demand coming from both local and international markets.
In Kenya for example a health conscious middle class with an affinity for spending are driving the demand for fruit farming as are soft drink companies who prefer to buy from farmers rather than import the highly priced fruit pulp.

Among the fruits though, passion fruits- both the yellow and purple varieties are a notch higher in the popularity. “Passion fruits are lucrative and easy to make money from. I have been able to expand my orchard relying mainly from the passion fruits proceeds,” said Charles Mureithi, a high school teacher and a fruit farmer in Dimcom village in Sipili, Laikipia district.

Charles Mureithi a farmer in Laikipia is among pioneer farmers in fruit farming with an orchard that has mangoes, avocados, apples, oranges, loquat and cherimoya. The passion fruits however stands out. The over 1200 vines are his cash cow.

“Business is good as far as passion fruits are concerned. Infact i am increasing acreage under cultivation of my passion fruit and have already secured four more acres. A quarter of my household spend is catered for by proceeds from passion fruits sales,” said Mureithi who also teaches Swahili at Lanai Day Secondary School.

When he was testing the project three years ago with only 150 passion trees, he could earn Sh80,000 with a kilo fetching Sh30.

And with the lucrative nature of passion fruit business, a group of seven local farmers have moved and expanded their orchards to meet the rising demand for the fruits from neighbouring towns.

“I have been able to educate three students through high school using passion fruits returns. I can comfortably advise that one may well retire and rely on fruits farming in old age”, said a middle aged Joseph Gatama, another of the local farmers. A bishop with a local church, Gatama has 250 passion trees on his three-acre farm. “Every two weeks, we are able to sell Sh2,300 worth of passion fruits and I expected to earn more as the newly established orchard comes to maturation,” he said.

He remembers a year he was able to make Sh60, 000- a pricey sum for rural farmers- from sale of passion fruits. Locally the passion fruits have two picking seasons the August November and the April-May-June season. The November season has bigger and more fruit that the May one, according to local farmers. However, with the dry conditions that punctuate the semi-arid Laikipia district, the local fruit farmers have to invest heavily in water systems to cushion their valuable fruits.

“We have to construct underground water tanks to store surface runoff for use as irrigation water. A full tank, of five metres wide by five metres depth is able to sustain the orchard till the rainy season,” added Mureithi, who has since constructed such a tank of his flat piece of land. On his part, Gatama-with a similar storage facility on his farm- has purchased a water pump and invested in pipes to ferry water to the plants. “An initial investment of less than Sh100,000 is easily recouped once the harvesting season arrives. We are unable to meet demand for fruit as buyers arrive on our farms seeking fresh ripe fruits,” said Mureithi.

http://www.farmbizafrica.com/index.php?option=com_content&view=article&id=1393:farmers-turn-to-fruit-farming-for-juicy-returns&catid=22:finance&Itemid=160

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High value agriculture places smallholder farmers in big boys’ league

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Jacob Muhia stands amid the splendour of his lush small farm, in what he attributes to heeding to the advice of local agricultural officers that the future is in higher value intensive agriculture.

Muhia’s quarter acre of tillable land is awash in high value crops like tomatoes, peppers, cabbage and bananas. Barely a foot of soil is unplanted. The plots are fertilized, chemically treated and regularly watered. The produce, in this time of high commodity prices, fetches close to Sh350, 000 on the market over the year, an enormous return for the land available. “We can make money on this,” Muhia said. “Input prices are high but for now, we expect to make money.”

For Mutuku, this lush jam-packed small-scale farm plot is exactly what he hopes for the future. Mutuku has been encouraging smaller farmers to quit growing low-return crops like corn and move into higher value ones that will pay enough to give the farmer money to buy other food and essential commodities and services. One of his campaigns is to convince dairy farmers to support local dairy processing enterprises that will pay five times as much for their milk as the open local market will pay.

“I am encouraging small holder farmers to grow crops that will insulate them from food insecurity, crops like sweet potatoes, cassava and beans that are drought resistant and would provide a good diet,” he said. “There is no need for food insecurity here. Beyond that, growing high value crops and value-adding are strategies that make these small holdings viable.”

It is a vision in sharp contrast to the one presented by market development specialists who insist small-scale farms in Kenya and Africa are too inefficient to produce required food and must be consolidated to create bigger units and economies of scale. In Rome in June last year, delegates to the United Nations world food summit affirmed that small-scale agriculture needs better and affordable access to seeds, fertilizer, chemicals and other inputs to become more productive and intensive.

The Kenya National Federation of Agricultural Producers agreed. It represents 1.4 million farm households, most with less than two acres of productive land. “The cost of inputs is too high and the only way to deal with that is to have subsidies on inputs to help farmers plant,” said federation general manager Lucy Mwaugi. “Otherwise, small-scale farmers cannot make money.”

In the countryside east of Nairobi, not far from Muhia’s successful intense farming space, John Waithaka’s small farm offers proof of that reality for most of Kenya’s more than one million small farms. His half acre in Kiamwangi has corn, bananas and beans and two dairy cows.

The crops help feed the family. The cows and their combined 20 kilograms of milk per day, worth about Sh250, produce what little cash the family has to buy other food and amenities. “You cannot have that little income, depend on the production for family food and survive,” said Frances Kiarie Njoroge, who led a tour of the farm and is vice-chair of a group of community farmers looking for answers.

“We need better solutions, adding value.” At a community meeting of the local farmers, Njoroge said input costs have risen so high and food prices have soared so much that small farmers cannot afford inputs and cannot afford the high cost of foods needed to supplement their family diets. All in the room agreed.

While a few small farmers embrace intensive money making strategies, the vast majority of Kenya’s army of small producers remain caught in the vicious cycle of high food prices, limited production and high input costs that make their lives marginal. “The current situation of high food prices and input costs are a loss for farmers,” Njoroge said at the community meeting. “We are not benefiting.”

http://www.farmbizafrica.com/index.php?option=com_content&view=article&id=1383:high-value-agriculture-places-smallholder-farmers-in-big-boys-league&catid=20:crop-types&Itemid=142

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Posted on Friday, November 14, 2014

By Fetsum Berhane

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Highlights:

- Ethiopia’s is 132nd of the 189 economies, 4 points above the 136th Kenya, in the overall global ranking of ease of doing business.

- Ethiopia also ranks 14th of the 47 Sub-Saharan Africa economies while Kenya is right next her at 15th.

- Ethiopia has slipped 3 points from the 2014 ranking while Kenya improved its ranking by 1 point.

- Ethiopia has got a better ranking than Kenya in five indicators: Dealing with Construction Permits, Getting Electricity, Registering Property, Enforcing Contracts and Resolving Insolvency.

- Kenya ranks better in five indicators: Starting a Business, Getting Credit, Protecting Minority Investors, Paying Taxes, Trading across Borders.

The time of reports has now arrived. “Doing Business 2015”, the flagship report of The World Bank, compares business regulations for domestic small to medium sized firms in 189 economies. Economies are ranked from 1 to 189 by the ease of doing business and are evaluated based on how business regulations are to the best global practices.

The “Doing Business” report aims to illustrate the ease or difficulty of opening and running a small to medium-size business with respect to relevant regulations. The report provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations relevant to domestic small to medium-size businesses.

The ten indicators used in this ranking are: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. The report emphasizes that the ranking and the indicators “do not measure all aspects of the business environment that matter to firms and investors or that affect the competitiveness of the economy. Still, a high ranking does mean that the government has created a regulatory environment conducive to operating a business”.

The report also presents the indicators and rankings of Ethiopia in comparison with the indicators of a good practice economy, or those of comparator economies in the region.

Six economies were selected by the report as comparator economies. These are (with global and regional ranks, respectively): Eritrea (189, 47), Kenya (136, 15), Rwanda (46, 3), Uganda (150, 22), South Africa (43, 2) and Egypt (112).

In light of their comparable GDP and ranking level, HornAffairs opted to provide you a comparison table of these two nations of the Horn. The full list of the ranking and the report can be found here and here.

Indicators measure the ease of:

*Starting a Business – all procedures (officially required or commonly done in practice) to start up and operate —as well as the time and cost required to complete these procedures.

*Dealing with Construction Permits – the procedures, time and cost for a business in the construction industry to build a warehouse in the largest business city, connect it to basic utilities and register it so that it can be used as collateral or transferred to another entity.

*Getting Electricity – All procedures to obtain a permanent electricity connection and supply for a standardized warehouse, as well as the time and cost to complete them.

*Registering Property – procedures necessary for a business to purchase property from another business and transfer the property title to the buyer’s name.

*Getting Credit – assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions

Protecting Minority Investors – measures the protection of minority investors from conflicts of interest through one set of indicators and shareholders’ rights in corporate governance through another.

*Paying Taxes – measures the taxes and mandatory contributions that a medium-size company must pay in a given year as well as the administrative burden of paying taxes and contributions.

*Trading Across Borders – the time and cost (excluding tariffs and the time and cost for sea transport) associated with exporting and importing a standard shipment of goods by sea transport, and the number of documents necessary to complete the transaction.

*Enforcing Contracts – the efficiency of the judicial system in resolving a commercial dispute before local courts.

* Resolving Insolvency – the time, cost and outcome of insolvency (bankruptcy) proceedings involving domestic legal entities.

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Africa Economy to Grow 50% by 2019 on Demand Jump, Deloitte Says

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By Amogelang Mbatha Nov 18, 2014

Africa’s gross domestic product may expand by 50 percent to $3.7 trillion by 2019, boosted by an emerging middle class and increased household demand, according to Deloitte.

“Rising consumer demand, aligned with annual growth of around 8 percent is likely to add around $1.1 trillion to African GDP by 2019, with Ethiopia, Uganda and Mozambique among the fastest expanding markets,” the auditing company said in an e-mailed report today.

Sub-Saharan Africa is forecast to grow 5 percent this year, driven by infrastructure investment, a buoyant services sector and strong agriculture production, the International Monetary Fund said last month. Middle-class households in 11 leading economies in the region are set expand to about 40 million by 2030, with the biggest growth seen in Nigeria, the continent’s largest economy, according to a report by Standard Bank Group Ltd.

While growth in demand for consumer products, including luxury items and smartphones offered opportunities, different regulations in individual markets were hurdles to set up businesses and companies need long-term strategies for investment in Africa, Deloitte said.

“Where there are challenges, there are also opportunities to innovate,” it said. “Given the potential for growth the continent offers, the business opportunities in Africa could outweigh the risks.”

Mobile-phone penetration is set to rise to 97 percent by 2017 from 72 percent, with about 334 million smartphone subscribers, the company said.

http://www.bloomberg.com/news/2014-11-18/africa-economy-to-grow-50-by-2019-on-demand-jump-deloitte-says.html

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Ethiopia and Somaliland Sign Trade and Infrastructure Agreement

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Ethiopian and Somaliland governments have signed trade and infrastructure agreement after a high level Ministerial delegation from Ethiopia led by the Minister for Finance arrived in the country on Thursday.

The ministerial delegation accompanied by a number of Somaliland ministers including; Ministers for Foreign Affairs, Finance, Presidency, Trade and International Investment have jointly paid visit to areas including; the Port, Oil Storage Tanks and the Airport of Berbera city and the road between Wajaale and Jigjiga.

Minister for Finance of Ethiopia Sufyan Ahmed who signed this agreement stated that this bilateral agreement will enhance the economy of the 2 countries Somaliland and Ethiopia and that the appointed technical committee will make sure the accomplishment and the realization of the provisions of the signed agreement.

The leader of the Ethiopian delegation has also told that the Somaliland and Ethiopia have long and historical relation.

Somaliland Foreign Minister and International Cooperation Mr. Mohamed Younis Bihi who signed this bilateral agreement for Somaliland explaining the aim of this bilateral agreement between Somaliland and Ethiopia to the media has noted, “We have agreed to cooperate together and in the issues pertaining the construction project of the Berbera Corridor –the road between Berbera and the border town Tog-wajaale. We have also discussed how Ethiopia will implement electricity project aiming at expanding its hydro-electricity to Somaliland regions.”

“We have also discussed on how Ethiopia will partake in using and developing Berbera Port and use its business and trade activities through Berbera Port. We both discussed on issues related to the security, trade and investment.”

He added that the parties have nominated a joint technical committee which will commence their operation on 8th December, as FBC reported.

http://www.waltainfo.com/index.php/editors-pick/16110-ethiopia-and-somaliland-sign-trade-and-infrastructure-agreement

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Road Links Gojjam to Wollo for the First Time

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Two phase project is completed unveiling new 319Km road despite delays due to weather fluctuations

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New 319km road connecting Gojjam & Wello for the first time.

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A new 319Km road, connecting Gojjam and Wollo for the first time was inaugurated yesterday, November 15, 2014. The road shortens the former road distance to the Port of Djibouti through Mille, with nearly half the area crossed getting its first road access.

The project was beset by characteristic problems. A recent report claimed Ethiopian government projects, including water, road and building projects were affecting it.

The report by the Construction Sector Transparency Institutive (CoST), of which Ethiopia and several other countries are members, was presented at the Elilly Hotel a few weeks ago. It indicated that the redesigning of projects after they had already been started was one of the main reasons accounting for Ethiopia spending more and taking longer to finish projects than other countries. The report raised concerns about “the feasibility and design stage, as well as the tender evaluation process and contract implementation” aspects of various projects examined in Ethiopia.

The Gojjam-Wello road project started as a gravel road to be completed in four years. However, the traffic flow in the area led to a redesigning into asphalt concrete, extending the project period to seven years, according to Dereje Hailu, Communication officer at the Authority. Other reasons for the delay of the project included weather fluctuations, claims Samson Wondemu, communications head of the Ethiopian Roads Authority (ERA).

The Komobolcha – Mekaneselam – Gindewoyne project was undertaken by the Chinese contractor, CGC Overseas Construction Group (CGCOC), with a joint consultancy by Li International Limited, a local firm, and Indian firm LEA Associates South Asia.

As Fortune went to print, the road was expected to be inaugurated by Deputy Prime Minister Demeke Mekonnen, in the presence of Workneh Gebeyehu, Minister of Transport, as well as parliament members and representatives from the city administrations. The total cost of the road project was 1.9 billion Br, paid for by the government.

The construction took place in two phases. The first phase saw the completion of 189Km of road extended from Kombolcha to Mekaneselam. The second phase comprised 139Km connecting Mekaneselam to Gidewoyne. It included a 260 metre high bridge, located 270Km from Komolcha town, which is expected to serve for the coming 60 years. The road also includes drainage pipes, bridges, and other structural works.

“The main advantage of the road is linking Gojjam, known for its crop production, and Wollo, a place designated for the industrial zone,” said Samson.

The road will link the road that currently extends from Addis Abeba to Mekelle, through Dessie, with the road from Addis Abeba to Bahir Dar, through Dejen and Mota. It will also cut the road distance by half from Dessie to Gojjam, avoiding the detour through Addis Abeba or Woldiya.

CGC Overseas has been operating in Ethiopia since 2003. It has completed five projects and is working on nine others, including a 220Km asphalt road from Dire Dawa to Dewalle. The Dire Dawa to Dewalle project will cost 3.99 billion Br in financing from the EX-IM bank of China.

The CGC Overseas completed projects include a 22Km asphalt road from Chole to Magna, the Dodola Junction to Goba road and the Dera to Gololcha Mechara road, all in the Oromia region.

http://addisfortune.net/articles/road-links-gojjam-to-wollo-for-the-first-time/

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COMESA Experts Discuss Agriculture, Environment and Natural Resources

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Technical experts on agriculture, environment and natural resources from COMESA Member States began meeting today in Kinshasa, D R Congo.

The three days meeting will discuss among others, the Food Security Situation in the COMESA Region including the regional food balance sheet.

A report on Implementation of the COMESA Comprehensive Africa Agriculture Development Programme (CAADP) will be presented. So far 14 COMESA countries have signed CAADP Compacts and eight have finalized their National Agriculture Investment Plans.

Others programme reports to be discussed includes, the Implementation of Livestock and Fisheries, the Cassava Custer, Sanitary and Phytosanitary issues, Gender Mainstreaming in Agriculture, Natural Resources, Climate Change and Environmental Programmes and the Alliance for Commodity Trade in Eastern and Southern Africa.

A report on Fertilizer in the COMESA Region will be presented and a ceremony to launch the Joint Fertilizer Harmonization Programme conducted. Heads of Delegation from Member states will present reports on the status of implementation of the Agricultural development programmes at country level.

The key cooperating partners with COMESA on agriculture and environmental programmes will also present their reports as well. The consolidated report of the technical committee will be presented to the Ministers responsible for agriculture; environment and natural resources meeting that will take place on 14 and 15 November 2014.

The meeting of technical officers was opened by the Permanent Secretary in the Ministry of Agriculture and Rural Development in D R Congo Mr Ali Hubert Ramazani on behalf of the Minister H.E. Jean Chrisostome Mukesyayira. COMESA Director of Investment Promotion and Private Sector Development Mr Thierry Kalonji addressed the delegates on behalf of the Assistant Secretary General Amb. Kipyego Cheluget.

http://www.comesa.int/index.php?option=com_content&view=article&id=1372:comesa-experts-discuss-agriculture-environment-and-natural-resources&catid=5:latest-news&Itemid=41

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MetEC to Deliver Five Spare Part Factories to Southern Regional Government for 235m Br

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Factories to form part of 42 similar workshops for four regions and Dire Dawa

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The MetEC which was established 20 years currently has 15 semi independent and integrated manufacturing companies operating in more than nine sectors including vehicle assembly and plastic and machinery manufacturing.

The Metal & Engineering Corporation (MetEC) is preparing to hand over five spare part manufacturing workshops to the Southern Regional State. The factories cost the regional government 235 million Br.

The Corporation made a deal last year with five regional governments to convert them into factories producing spare-parts for flour mills and vehicles. The five regional governments include; Oromia, Harari, Ahmara, the South, and Dire Dawa City Administration, according to Michael Desta, head of public and foreign relations at MetEC.

The Southern regional government will transfer the workshops, each of which will employ 100 workers, to the Small & Micro Enterprises (SME).

“We will fully transfer the workshops to the region in the coming two months,” said Michael.

MetEC is currently installing machinery at these workshops, located at Dilla, Hawassa, Hosaena and Arbaminch.

As part of the deal with the five administrations, MetEC will deliver a total of 42 workshops, at a total cost of close to two billion Birr. To date it has transferred 20 workshops to the Amhara, Tigray, and Oromia regional states.

“We are currently only receiving the commitment to pay the money from the regional states in order to hand over the workshops,” said Desta. “The regions will pay the total money for the MetEC in five years.”

The MetEC provides mechanical and technical training to employees at the workshops, says Michael. The machines are manufactured by Hibret Manufacturing & Machine Building Industry (HMMBI), one of the MetEC companies engaged with manufacturing industrial machinery and spare parts.

The remaining workshops currently under construction will be delivered to the regions before the end of the current fiscal year, says Desta.

He went on to explain that the MetEc has three aims in the construction of the workshops: increasing the country’s manufacturing industry, creating job opportunities and to manufacture spare parts locally.

Established 20 years ago, MetEC currently comprises 15 semi-independent and integrated manufacturing companies. These companies operate in more than nine sectors, including the assembly of vehicles, plastic and machinery manufacturing.

“Phase two of the construction of additional work shops will be begun as soon as the current phase has been completed,” Michael told Fortune.

http://addisfortune.net/articles/metec-to-deliver-five-spare-part-factories-to-southern-regional-government-for-235m-br/

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PM appoints new Minister of State for Ministry of Mines

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Alemu Sime

- Asfaw Dingamo to lead Ethiopian Petroleum Development Enterprise  

Prime minister Hailemariam Desalegn recently appointed a second minister of state for the Ministry of Mines, Alemu Sime.

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Nation Working to Realize Digital TV Transformation

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Preparations are well underway in connection with the one billion Birr project to institute digital TV in Ethiopia.

Speaking at a consultative meeting between broadcasters and other stakeholders on a draft action plan for transition into digital TV, Zeray Asgedom, Director of the Ethiopian Broadcast Authority said the meeting is crucial in facilitating the transition and exchanging information.

According to FBC, he added the government is supporting the installation of technological inputs to enhance the transition and is working in collaboration with the private sector in this regard.

http://www.waltainfo.com/index.php/explore/16115-nation-working-to-realize-digital-tv-transformation-

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Chinese consortium to operate LRT

 

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A consortium of China Railway Engineering Corporation (CREC), a Chinese contractor currently building the Addis Ababa Light Rail Transit (LRT) system, and Shenzen Metro Group, operators of the railway system of the Chinese city Shenzen, has been selected by the Ethiopian Railways Corporation.

(ERC) to handle the operation and maintenance of the LRT for the next five years.

Head of public relations at ERC, Dereje Tefera, told The Reporter that the new consortium has won the limited international bid that the corporation floated to hire an experienced rail operator for the flagship LRT project which is currently under construction in Addis Ababa. In return, ERC will pay the consortium USD 116 million for these services over the next five years, according to Dereje. The deal also covers the regular maintenance of the LRT system apart from its day-to-day operations.

“The formal contract signing ceremony is expected to be held soon,” Dereje said. Initially, the consortium is expected to bring 290 Chinese professionals to Ethiopia to work with 396 Ethiopians on operation and maintenance. However, this number is agreed to slowly decline over five years where, in the second year of the project, the 48/52 ratio of Chinese professionals to Ethiopians is expected to go down to 24/76. Further down the road, in the third year of the project, for instance, the ratio is expected to slide to 13/87 marking a gradual take over by Ethiopian professionals by the  end of the fourth year. Dereje also said that by the fourth year the role of the Chinese should be minimized to an advisory level making way for Ethiopians to handle operation of the rail system completely.

According to the terms of the contract, Shenzen Metro is expected to implement all the technology that it is currently employing to operate the rail system of the city of Shenzen. On the other hand, the USD 475 million LRT project, which according to the contract terms is expected to be completed after two months, looks to be on its way to outlive its project time. Had it been for the contract, the project should be completed in January and currently the project should have been on its last stages. However, since the project has not yet used all its alloted time, officials of the corporation still assure that the project would be completed on schedule and that there will be no delays. And, it is also noted that ERC reserves the contractual right to ask for compensation if indeed the project was not completed in the scheduled time frame.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2786-chinese-consortium-to-operate-lrt

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Ethiopia, Kenya and Somalia agree on mega projects on River Dawa

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Ethiopia, Kenya and Somalia have agreed to construct a multipurpose dam and a hydro power station on River Dawa in Mandera County, which is aimed at harnessing and promoting sustainable use of the resource.

The three countries also proposed construction of a bridge to link Kenya and Ethiopia on the river, which will promote cross-border movement across the seasonal river.

The countries representatives who met at Sarova Panafric hotel in Nairobi during a three day meeting organized by IGAD also called for cooperation in the management and sustainable use of River Dawa.

Kenya was represented in the forum by Mandera County Governor Ali Roba, who said the projects will help utilise the river to the benefit of citizens. “Harnessing the water from the river can solve the persistent drought that the region has been experiencing. We are optimistic that the process will be successful since each of the States is very positive about the proposal,” Roba said.

The meeting was called to discuss the cooperation in the management and sustainable use of River Dawa.

During the meeting, which ended on Thursday, the three countries formed a technical team which will conduct a feasibility study of the proposed projects and share its finding. The process will be steered by IGAD.

River Dawa is a seasonal river which flows cumulatively for nine months, and traverses through the three countries.

 http://www.waltainfo.com/index.php/explore/16078-ethiopia-kenya-and-somalia-agree-on-mega-projects-on-river-dawa-

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Sesame exporters warned of price speculations

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The price of sesame dropped to USD 500 from 1,200 per ton in one month. Following the turn of events, exporters have been hesitant to supply, preferring to wait for the price to improve.

However, for industry players like Philippos Philippas, president of the UK-based Huyton Inc. Group, exporters are trending unhealthy. If they persist to do so, he told The Reporter that they will face loss in waiting and speculating for the price to rise up. 

Philippas, who attended the 4th international conference organized by the Ethiopian Pulses, Oilseeds and Spices Producers and Exporters Association (EPOSPEA), said that Ethiopian exporters should be cautious not to replicate the same mistakes of the Sudanese – the third largest producers in the world. It is to be recalled that last year the Sudanese ended up exporting about 285,000 tons of sesame, which was way lower than what they originally planned.

“The global consumption is about 1.4 million metric tons and the availability is going to be about 1.7 million tons. Hence, there will be a surplus and that surplus will pressure the prices. The point I want to emphasize is that last year the sellers pushed the prices up. As a result, consumption was reduced worldwide. I don’t want the buyers to do the same now”, Philippas warned.

Following the delayed rain and drought in China, which stands the 40 percent buying nation of Ethiopia’s sesame, some exporters are not worried by the current low market price. In September, sesame was sold at USD 2,200 per ton. However, in October the price went down to USD 1,700. Philippas estimated that the latter price will remain to be the market price of Ethiopia for the year. However, Haile Berhe, president of EPOSPEA, differs in opinion. The prices are known to be fluctuating for years and exporters will behave accordingly, he argues.

The orchestra of the sesame market seems to get louder when China said that it will ship close to 850,000 tons for the year. That again annoys Philippas who strongly criticized the Chinese side for not providing the realistic volumes they will buy. For Philippas, the best China will buy is set at a maximum of 650,000 tons. The Sudanese production for this year also was questioned. It intends to bring some 600,000 tons of sesame this year. Yet, half of the total produce is destined for local consumption in Sudan.

Ethiopia this year expects to harvest 350,000 tons of sesame. Previously, the government was bullish to produce and export 500,000 tons. Realizing the unrealistic plan, the target was reset to 350,000 or less. The concluded budget year production stood at 270,000 tons. According to Assefa Mulugeta, director general of the export promotion directorate general, this year harvest will be challenged due to the heavy rainfall and windy weather condition witnessed affecting the major producing regions in northern Ethiopia.

Huyton Inc. Group was associated in supplying coal to the Ethiopian Petroleum Enterprise (EPE) since 2011. The contract was terminated after the government had bought 800,000 tons of coal form Huyton in three years. However, the group sticks on supplying in wheat and barley for the beer industry. Huyton mostly is known for being one of the major buyers of sesame, shipping out some 40,000 tons a year.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2776-sesame-exporters-warned-of-price-speculations

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DSGE says it received a wide variety of proposals to deliver funds

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This year diplomatic bazaar lands on November 22nd

Formerly called The Ambassador’s Heads of Missions Spouses and Diplomatic Spouses Group, The Diplomatic Spouses Group Ethiopia (DSGE) said it has received a number of project proposals to deliver funds.

Announcing that the annual bazaar is to take place at the Millennium Hall on November 22. Announcing the date at the residence of the Brazilian Ambassador on Wednesday, Leelie Selassie, president of DSGE said that last year the group raised 200,500,000 birr for the project proposals submitted.

Despite the number of proposals presented to the group, some are selected on the basis of having a direct relationship with the mission of the group. “Our primary target groups are women, children and most vulnerable citizens in Ethiopia,” Selassie, wife of the US Ambassador to the African Union (AU), said. According to the group, the diplomatic bazaar has extended its way of funding projects while the number of proposals being presented to the group grows year after year. Every year, the DSGE holds a fundraising event showcasing handicrafts, national dishes and products from participating diplomatic missions. “We keep our efforts to the end as much as the number of requests from the charities keeps growing,” Erica Usher, chair, project matrix and wife of the Canadian Ambassador, said.

Releasing 100 percent of the funds to the charity organizations registered in the country, the group has financed more than 25 charities found in parts of the country. Moreover, more than 800 vulnerable children receive school supplies to attend class. Sangeeta Verma, wife of the Indian Ambassador on her part said that the capacity of the group is gaining strength as the cultural exchange between participating countries is also deepening towards better understanding. As a result, reaching out the charities that need support.

Funds include equipment, furniture, and small-scale constructions and rejects funding salaries, rent, utilities, transportation, food and running costs. According to the committee, DSGE has been active in organizing similar events in the country for over 25 years in embassies and the AU compound before moving to the Millennium Hall in 2009. Tickets are available at Addis Ababa Hilton.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2771-dsge-says-it-received-a-wide-variety-of-proposals-to-deliver-funds

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City’s Housing Construction Projects Booms, Gravel Suppliers Struggle to Meet Demand

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Nana’s trading gravel production site, located in Akaki Kaliti district.

A Loader is putting rocks to be processed into the crushing machine.

A crushing machine imported from China, crushing rocks into gravel.

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As part of its plan to solve housing shortages Addis Abeba City Administration (AACA) is building 120,000 condominium houses. Building materials are vital, especially gravel. In fact, the material was the subject of discussion in a meeting, chaired by Abate Sitotaw, deputy mayor of AACA, which took place at the Ghion Hotel on October 21, 2014. Gravel producers and suppliers for the city’s housing projects also attended.

The city needs 1.3 million cubic metres of gravel this fiscal year for its housing projects, excluding necessary supplies for the 40/60 housing scheme. Total demand for the next five years amounts to between five and six million cubic metres, the meeting was told. Currently this supply comes from only a few of the 260 gravel suppliers in Addis Abeba, and adjacent Oromia towns. The meeting was attempting to find a solution for the lack of gravel supply for its projects.

The AACA held suppliers responsible for not providing its housing projects with enough of the right quality of gravel, despite their agreement to do so. Meanwhile, suppliers blamed the administration for not paying them in time, as well as raising issues with the accessibility of gravel production sites.

Adugna Kebede, general manager of gravel supplier Nana Trading Plc, has been working with the Addis Abeba Housing & Construction Agency (AAHCA) for the past three years. The company’s production site is located in Akaki-Kaliti District, Debre Zeit Road, seven kilometres west of Tirunesh Beijing Hospital.

It owns two excavators, one loader, four freight track vehicles and a crasher machine, and has a production capacity of 650 cubic meters to 700 cubic meters per day. However, as a result of problems, ranging from the lack of finance to limited production area, the company is not producing as much as it potentially could, Adugna claims. Nana now produces 320 cubic metres of type 02 gravel per day, which it supplies to the Agency. It also produces other kinds of gravel, used for building construction and cobblestone roads.

Currently the company has a deal with the AAHCA to deliver 20,000 cubic metres to 25,000 cubic metres of gravel over two months for three projects, which Adugna says they may not be able to deliver. One contractor at the site of Project 16, near where Nana operates, says he is unable to meet the delivery deadline because of input shortages.

The project, which has approximately 240 blocks of G+4 and G+7 buildings, is planned to reach 70pc by the end of the fiscal year.

“We are now receiving 80 cubic metres of gravel a day, which is 48 cubic metres less than we need,” said the contractor.

The project site has quarries surrounding it, but Nana uses another quarry three kilometres away from where It transports the rocks to the crushing site. Four to five truck loads of rocks make one truck load (16 cubic metres) of gravel. So crushing machines should be installed near quarries. However, it takes six months to a year to move the machines and install them at a new site, Adugna says.

Adugna also wants the city to pay him in advance or give him a loan. However, he says “they are not even making timely payments for gravel already delivered; sometimes we even have to wait longer than a week.”

The imbalance between demand and supply of gravel production is a problem acknowledged by the AAHCA, as well as by producers. However, the Agency believes there are enough producers around the city, but that they are not providing enough.

“Most of the suppliers who get incentives from the Agency, in terms of access to land and machinery, are not helping to overcome our problem,” said Negus Tekelaye, AAHCA’s construction input project office head.

This happens for various reasons, he says. Primarily, those producers who get direct support prefer to sell their gravel to the private sector. Others simply pass the land they get from the administration, as an incentive, to third parties, without ever going into gravel production. The private sector preference instead of working with the government could be due to the fact that private companies pay promptly and cut a better bargain, says Adugna.

The AAHCA pays 250 Br to 300 Br for 16 cubic metres of gravel. The fact that the Agency transports the gravel itself the price ranges according to the distance between the gravel production site and the construction area: the farther the distance, the cheaper the price.

Private company prices range from 300 Br to 350 Br for 16 cubic metres, based on the distance between the construction area and the production site; the farther the distance, the higher the price.

A businessman, requested anonymity, who has 10 years experience in the sector, and co-owner of a gravel producer company in Addis Abeba, Gulelle District and Sululta town, 40Km north of Addis Abeba, complained that his company has the capacity to crush 250 cubic metres an hour, but now does that in a day because of problems such as electricity shortages, delays in payment and lack of credit facilities. He cites these as major challenges for the sector.

“Previously, I used to supply the Agency as they use larger quantities than private customers; however, due to the lower price they offer, compared to private developers, I now supply only private customers,” he said.

The price currently offered by the Agency was set five years ago. He believes it no longer suits current production costs.

Despite the complaints of suppliers, Negus says they receive all necessary direct assistance from the Agency, yet still fail to deliver. The Agency says it will solve the problem by identifying those actors and penalising them.

http://addisfortune.net/articles/citys-housing-construction-projects-booms-gravel-suppliers-struggle-to-meet-demand/ 

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Somalia Reaches River Water Sharing Agreement with Ethiopia, Kenya

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A conference that took days and held in Sanova Panafric Hotel in Nairobi, Kenya, in which the agenda was spearheaded by the Intergovernmental Authority on Development (IGAD), an agreement was struck between Somalia, Ethiopia and Kenya to device mechanisms to share the waters of the rivers that run through those countries. The agreement also includes building dams. However, the final details of the agreement have not been released to the media.

Kenya’s Mandera district commissioner Ali Koba said the agreement notably pertains river water sharing, especially draught seasons when the water flow of the rivers is low.

A technical committee consisting of the three countries has been set up to oversee the river water sharing project and its implementation.

This is the first time the three countries reached an agreement of this kind.

http://www.raxanreeb.com/2014/11/somalia-reaches-river-water-sharing-agreement-with-ethiopia-kenya/

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John Page | November 20, 2014

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On Thursday, November 20 the United Nations celebrates the 25th Africa Industrialization Day. But perhaps “celebrate” is not exactly the right word. Africa’s experience with industrialization over the past quarter century has actually been disappointing. In 2010 sub-Saharan Africa’s average share of manufacturing value added in GDP was 10 percent, unchanged from the 1970s. At the same time, manufacturing output per person was about a third of the average for all developing countries, and manufactured exports per person about 10 percent. Thus, I pose the question: Is Africa’s failure to industrialize in the 25 years since the first African Industrialization Day due to bad policy or bad luck?

About four years ago the African Development Bank, the Brookings Institution and the United Nations University-World Institute for Development Economics Research (UNU-WIDER) came together to try to answer a seemingly simple but puzzling question: Why is there so little industry in Africa?

We called our program of research Learning to Compete, because this was the greatest challenge faced by African industry. Among the projects that we sponsored were 11 detailed country case studies—eight from sub-Saharan Africa, one from North Africa and two from newly industrializing East Asia—done by researchers from the countries involved. The case studies are now available here. They make discouraging reading for anyone interested in African industrialization.

The eight sub-Saharan countries—Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Senegal, Tanzania and Uganda—were all among the region’s early industrializers and are also all among the stars of the region’s growth turnaround. Tunisia—along with Mauritius, which we did not study in detail—is one of the brighter lights in the African continent’s industrialization story. The Asian countries—Cambodia and Vietnam—were chosen because they are emerging Asia’s newest industrializers.

The country studies describe the range of public policies used to promote industrial development and the evolution of industry in each country. Most seek to identify the factors that have constrained industrialization and the nature of public actions designed to relieve those constraints. What is striking about the eight sub-Saharan African countries is that, despite considerable diversity in geographical location, resource endowments and history, they share remarkable similarity in their experience with industrialization. The Asian and the Tunisian stories begin in very much the same place as these sub-Saharan countries with an early drive for state-led import substituting industrialization but diverge substantially in terms of industrial policies and performance in later periods.

Bad Luck

Africa’s failure to industrialize is partly due to bad luck. The terms of trade shocks and economic crises of the 1970s and 1980s brought with them a 20-year period of macroeconomic stabilization, trade liberalization and privatization. Import competition forces inefficient firms, both public and private, out of business. Uncertainty with the outcome of the adjustment process and low or negative economic growth meant that there was little private investment overall and practically none in industry. Political instability and conflict also caused investors to hold back. When Africa emerged from its long economic hibernation around the turn of the 21st century, African industry was no longer competing with the high-wage industrial “North,” as it had in the 1960s and 1970s. It was competing with Asia. From the point of view of industrial development the timing of the region’s economic recovery was unlucky to say the least.

Bad Policy

But the failure to industrialize was also due to bad policy. The eight sub-Saharan countries enacted remarkably similar policies for industrial development: state-led import substitution, Structural Adjustment and investment climate reform. Import substitution sowed the seeds of its own destruction. High protection and heavy import dependency meant that African industry was poorly prepared for international competition. The tendency of many African governments to assign a leading role to the state in creating and operating manufacturing firms simply made the problem worse. Investments were often made with little regard to efficiency, and the managerial capacity of the state was badly overstretched. While the reforms of the Structural Adjustment period paid off in terms of better macroeconomic management and faster overall growth, the rapid liberalization of trade and some ill-advised conditions—such as freeing up the import of second-hand clothing for resale—probably caused a more severe contraction of industry than was desirable. But, hindsight is always 20/20. The key issue looking forward is: Do the policies African governments now have in place prepare Africa to turn the corner in industrial development?

Around 2000, the World Bank and many bilateral donors shifted their focus in spurring industrial development to the “investment climate”—the policy, institutional and physical environment within which private firms operate. Investment climate reforms reflect the priorities and dogmas of the aid community. Given the importance of development assistance in the eight sub-Saharan economies, it is perhaps unsurprising that all have implemented investment climate reforms since 2000. Our country studies, however, strongly suggest that the donor agenda on the investment climate is both poorly implemented and insufficient.

Although in principle improvements in the investment climate are supposed to cover the whole range of issues from macroeconomic management, to infrastructure and skills, to the policies and institutions that most closely affect private investors, in practice the investment climate agenda has centered too narrowly on regulatory reform. Setting new priorities for the investment climate is certainly possible—and we make some suggestions how to do that in a forthcoming book, Learning to Compete, that summarizes the results of the project—but, by themselves, changes in the investment climate are unlikely to be enough to overcome the challenges faced by African economies trying to compete in global industry.

Learning from Success

What is the alternative? Beginning with Japan and moving through the “Four Tigers,” Indonesia, Malaysia, Thailand and spectacularly then on to China, East Asian economies all followed quite similar industrial development policies with striking results. The source of their early industrial dynamism came from rapid growth of export manufacturing, based on an “export push”—a coordinated set of macroeconomic and structural policies designed to boost industrial exports. East Asian countries also actively supported industry more generally, developing programs to encourage diversification and increase firm-level productivity. Today, Cambodia and Vietnam—the two countries that we studied—are taking the same path. Industrial growth in both has been explosive.

The two African countries—Mauritius and Tunisia—that went their own way in terms of policies for industrialization emulated the East Asian model. While it is fair to say that neither country’s industrialization story is an unqualified success—both have had some difficulty in making the transition from low-end manufacturing toward more sophisticated and technology-intensive goods—relative to the rest of the continent they are the “leopards” of industry. Perhaps it is time to think again about investment climate reform.

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• John Page

  Senior Fellow, Global Economy and Development

  John Page, formerly chief economist for Africa and director, poverty reduction at the World Bank, currently studies industrial development, poverty and migration in Africa. He has also worked on the Middle East and East Asia.

• Sourced here  http://www.brookings.edu/blogs/africa-in-focus/posts/2014/11/19-africa-failure-industrialize-page

Filed under: Economy, Infrastructure Developments, Opinion