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Allana Danakhil Project Due Diligence Meeting held in Chonfar

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Ethiopia: Long Term plan to be the leading Nation in light Manufacturing

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Addis Ababa February 15, 2015 – Public Diplomacy and Regional Future Infrastructure Investment News.

Ethiopia and Swedish agro technological Processing Workshop was held successfully at Sheraton Addis Ababa. The Regional Future Infrastructure Investment workshop was organized by four renowned Swedish Companies in cooperation with Ministry of Foreign Affairs and the Embassy of Sweden. Dr Mebrahtu Meles State Minister of Industry and Jan Sadek , Ambassador of the Republic of Sweden to Ethiopia made an opening speech both stating the long standing Ethio-Swedish diplomatic relations and appreciating the fast economic growth Ethiopia is registering.

Dr. Mebrahtu stated Ethiopia’s long term plan to be one of the leading nations in light manufacturing. He noted that the long standing cooperation that exists between the two countries is expanding to include areas of trade and investment. He cited the recent engagement of H&M and Erickson in Ethiopia as example to the increasing interest of Swedish companies in Ethiopia.

Appreciating the fact that Swedish investors are currently picking Ethiopia as their investment destination, Jan Sadek recalled Swedish involvement during the Imperial time in primary education and noted more than 6000 schools were built throughout Ethiopia by the Swedish development cooperation. He also appreciated the stride that Ethiopia is making in registering double digit economic growth.

He expressed his hope that the workshop would create conducive environment for mutual learning in agro-processing .During the deliberation Swedish companies gave an experience sharing presentation. De Laval shared its over 125 years of innovation and experience in dairy business, supporting dairy farmers and managing their farms while Tetra Pak world’s leading food processing and packaging solutions company and Alfa Laval another leading global provider of specialized products and engineering solutions through key technologies of heat transfer, separation and fluid handling explained their company best practices. VIP Company which has already made investment in Ethiopia in renewable energy and afforestation shared to the participants about Paulownia Forest Project, a fast growing multipurpose tree, a tree that gives everything from household green charcoal to ethanol, biomass honey and hardwood timber, which are key for development of an agro-industry complex.

Swedish companies such as Volvo, Scania and Atlas Copco attended the workshop through their local agents and retailers. On the Ethiopian side, Ethiopian Sugar Corporation, Ethiopian Investment Commission, Food, Beverage and Pharmaceuticals Industry Development Institute and Meat and Dairy Technology Development Institute presented to the Swedish side about agro-processing opportunities and current development level of the sector in Ethiopia.

http://www.geeskaafrika.com/8067/8067/

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Ethiopia, Djibouti to establish committee for speedy movement of commodities

 Addis Ababa: February 15, 2015 – Ethiopia and Djibouti agreed to establish a joint committee to enhance port and customs service so as to quicken transportation of commodities to Ethiopia.

http://www.fanabc.com/english/index.php/news/item/2236-ethiopia,-djibouti-to-establish-committee-for-speedy-movement-of-commodities

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Ethiopian Intelligence Network: Who is behind the growth?

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Ethiopia is a low income country with a population of just under 92 million people. The country has since 1991 been under one party rule of the Ethiopian People’s Revolutionary Democratic Front (EPRDF). Dissidents who use the internet to criticise the one party rule have been accused of promoting terrorism and have been subjected to strict surveillance.

According to Human Rights Watch, the increasing technological ability of Ethiopians to communicate, express their views, and organise, is viewed less as a social benefit and more as a political threat for the ruling party, which depends upon invasive monitoring and surveillance to maintain control of its population. Ethiopia regularly blocks websites, undertakes surveillance of websites and social media, and charges journalists over content published offline and online.
The country’s laws provide for legal sanctions against individuals for content they publish online, or the ‘illegal use’ of telecoms services. Such charges have often been framed as ‘promoting terrorism’, which can attract a 20 year jail term. Thus, the country has been creating a speedily expanding, state-of-the-art surveillance state, with tacit Western back up.
Rumors of the extent of Ethiopia’s digital surveillance and censorship state have echoed around the information security community for years. Journalists have spoken of being shown text messages, printouts of emails, and recordings of their own telephone conversations by the Ethiopian security services. From within the country, commentators connected growing telecommunications surveillance to the increasing presence of East telecommunications company ZTE.
On the external front, analysis of the targeted surveillance of exiled Ethiopians has turned up surveillance software built and sold by Western companies, such as FinFisher and Hacking Team. Observers of the country’s national Internet censorship have reported keyword filtering of websites and blocking of Tor nodes that reveal a sophisticated national firewall conducting deep packet inspection. Ethiopia’s position as an American ally also gives it the opportunity to purchase technology made in the West to carry out its campaigns of censorship and surveillance. Ethiopia has also bolstered its surveillance capabilities with drones built by Israeli company Bluebird Systems.
However, it is widely believed that Ethiopians have not developed the surveillance network using the available resources in the country. Indeed it is even futile to think that a third world country like it, which does not have enough resources to feed its poverty stricken population will invest heavily in surveillance technology.
There are many who believe that West is funding such programs. However, on a more detailed look, it looks as if East technology is behind the program.
Screenshots of extra fields on ZTE’s ZSmart customer relations management tool appear to show that Ethiopia’s telco administrators can check customers against a “blacklist,” and digitally record calls with the press of a single button.
These features could simply be a result of Ethiopia’s censorship team quickly adopting new techniques — or it could mean that Ethiopia is one of the few countries that benefits from the direct export of Great Firewall technology. In the case of Ethiopia, there have been reports that East is training the surveillance team for as period of six months and then using it for own proxy intelligence. Whether or not the activities of such companies represent cybersecurity concerns – these rapid changes in Africa’s media and telecommunications sphere are an overlooked and illustrative example of the impacts and influences of a rising East, which warrant greater study and attention from policymakers and civil society in Africa and elsewhere, in particular those who are keen to ensure both increased cooperation and connectivity and free and secure communications among citizens.

http://www.newdelhitimes.com/ethiopian-intelligence-network-who-is-behind-the-growth123/

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Africa to miss out on coffee earnings due to production drop

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Africa’s share of global coffee production is dropping at a time when consumption is growing and farmers need government support to ensure the continent does not miss out on potential higher earnings in the future, delegates at a coffee conference said on Thursday.

Coffee is an important crop on the continent, bringing in hard currency and creating jobs in producer nations from Rwanda to Ivory Coast. The continent’s share of world coffee production slipped to 14 percent in the 2012/13 crop year from a quarter in 1989, the Kenyan minister of agriculture Felix Koskei told a regional conference.

Producers on the continent, who grow both Arabica and Robusta, produced 16.7 million bags of coffee in 2012/13 from 19.1 million bags in 1989 even as global production rose to a high of 146.8 million in 2012/13, Koskei said. “The decline in our production is happening against a backdrop of an increase in world coffee consumption which is growing at an average of 2 percent,” Koskei told the annual conference of African Fine Coffee Association (AFCA).

Over the medium-term, Africa could miss out on a potential boom in prices from a projected shortage of coffee, said Abdullah Bagersh, chairman of AFCA’s board. Delegates at the meeting in the Kenyan capital blamed poor policies by government that do not take farmers’ welfare into consideration. In Kenya’s coffee growing central highlands, some coffee estates have chopped down their trees in favour of real estate, which has been offering better returns.

Kenya is pursuing initiatives to boost production, including the establishment of a trademark for Kenyan coffee, to give it an identity and spur demand among end consumers, who are usually willing to pay more at western coffee chain outlets than bulk traders and roasters. Abdullah, whose own country of Ethiopia has been held up as a model for others on the continent due to its growing annual output, said governments needed to support the industry in a robust manner.

http://www.brecorder.com/agriculture-a-allied/183:pakistan/1151614:africa-to-miss-out-on-coffee-earnings-due-to-production-drop/

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Top Seven Cities for Doing Business in Africa

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VENTURES AFRICA – It’s pretty hard to miss the buzz that has been on about the African economy, with large markets and a huge consumer market-base, Africa has become one of major hub of business in the world. The African continent is deemed the world’s fastest growing with 5 to 6 percent growth rate for the several years. With a steadily growing population (it is predicted that a quarter of the population will be African in 2050), this renewed attraction to Africa is rather well-needed as it creates a two-way chain to both Africa and the companies as they are able to take advantage of the large markets available in Africa to boost their goals.

A research by hotel booking platform Jovago, revealed these top seven business destinations. They particularly stand out in their regions in terms of their strategic locations, economic sectors and peculiar cultures. Without doubt, Africa is home to great countries with abounding opportunities for business to flourish.

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Lagos

Nigeria’s GDP has been growing since 2012 and approaching $594.3 in 2014 and is also predicted to increase by 7.3 percent in 2015 making it the first economy in Africa. The former capital of the most populous country in Africa, Lagos is also noted to be a magnet of foreigners looking to establish business in Nigeria. The strategic location and sheer size of the population makes the hustle and bustle even more animated. If you looking for an African city to invest in or are you interested in being a part an African business revolution, well, Lagos is the place to get started. Lagos is also noted for its business centres and luxury hotels, Victoria Island which is home to a number of the Nigerian tycoons.

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Abidjan

The economic capital of Ivory Coast is one of the largest French-speaking city in Africa and has experienced remarkable growth after a decade of political instability. The improvement of the Abidjan harbour signifies a positive growth in their economy. Abidjan is also re-hosts the
African Development Bank (AfDB) Group. It has had significant economic growth as it now ranks sixth of the twenty-three African stock exchanges and the construction of the “Third Bridge”, the Henri Konan marks a significant innovation in supporting its growing population. Ivory Coast has managed to maintain a steady increase in its GDP per capita it is also predicted to experience a 7.9 percent increase in 2015.

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Casablanca

The economic capital of Morocco is quite notable in African business now. It became the first African investor in Central and West Africa. Technical cooperation agreements, cultural as well as several trade agreements have helped to intensify trade and investment to confer on Morocco’s position second transmitter African FDI in Africa after South Africa. The strategies used by large Moroccan economic operators, such as Youssoufia Phosphates, Attijariwafabank the bank, the airline – Royal Air Morocco (RAM) etc. attest to the real and significant breakthrough Moroccan companies in African markets.

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Johannesburg

S.A’s Johannesburg bustles with its relatively healthy financial stance and the government’s activeness in reducing the occurrence of crime and the improvement of infrastructures. It is as though the city is getting ready for a wave of international investments. Jo’burg as fondly called is notable as the traditional place for business in Southern Africa and also for the strong industry and economic growth.

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Nairobi

Kenya’s largest city and capital stays relevant not only because of it being an amazing tourist destination but also for its business acumen. With a GDP of $62.7 in 2014 which is predicted to increase by 6.2% in 2015, Kenya stands out in East Africa. Nairobi is home to a myriad of both local and international businesses. The Nairobi Stock Exchange also boasts to be one of the largest in Africa which is pretty impressive and their Commercial Bank, the biggest within the region. Nairobi is also home to a number of African headquarters of international banks, companies – Pfizer, The World Bank and The Sage Group amongst others. The Kenyan Airways also play a key role in making the city an African hub.

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Addis Ababa

This strategically located largest and capital city of Ethiopia – often regarded as “the political capital of Africa”, it hosts the Africa Union. This city also sets the pace for its African counterparts as it launched its newly developed railway depicting its advancement in infrastructural development. Last year, a GDP of $49.9 was registered and this is predicted to rise by 8.5% in this year with strong business links with China. Ethiopia is the only African country on the People’s Choice list of Top 10 Best Tourist Destination for 2015 which reflects its business inclination.

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Kampala

With a population of over 2 million inhabitants, Kampala is the largest city in Uganda which is referred to “pearl of Africa”. The discovery of oil in 2006 ushered in a rise in investments, Uganda’s tourism sector is also worthy of note as it has witnessed an influx of travellers from around the world and became a major source of revenue between 2013 and 2015. It has had a steady rise in its GDP since 2012 which is predicted to increase by 6.3% by 2015 at $26.9.

Getting back to the question, what these cities have in common, as you must have noticed, their size and strategic location makes them quite peculiar and attractive for investors. Their population, another key element not only provides investors with the huge market they seek but also with manpower at a much more affordable rate. The cities are easily in the top 7 business destinations for several reasons other than these which are specific to each of them. Jovago.com is present in all these 7 destinations with a large choice of business hotels to help you make your travel even easier than you think possible.

*** GDP is estimated in billions

http://www.ventures-africa.com/2015/02/top-seven-cities-for-doing-business-in-africa/

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Czech firm builds brewery in Ethiopia

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- New energy-efficient facility will have a Czech brewmaster

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The firm ZVU Potez, a Czech-based supplier of technology for the chemical, food and energy industries, has completed the implementation of a brewery in Maychew, Ethiopia. The contract is worth €27.6 million.
The modern facility for Raya Breweries will be inaugurated Feb. 15 with the participation of senior representatives of the Czech Republic.

The brewery has a capacity of 600,000 hectoliters per year. The project included the delivery of complete technology for the brewery plant as well as a boiler room, transformer stations, water treatment and sewage treatment plants, and a diesel generator serving as a reserve energy source.

The overall implementation lasted 24 months from the signing of the contract. “A first phase included the training of local personnel, and other phases will continue after the opening of the brewery,” Vladimir Čepelík, CEO ZVU Potez, said in a press release.

“We will acquaint them with our modern facilities and also we also offered them our specialist for further consultation.”

The brewery in the northern Ethiopian town of Maychew, approximately 650 km from the capital Addis Ababa, will create approximately 150 to 200 new jobs.

Czech master brewer Ladislav Pařízek will remain there to oversee production.

See also:  http://www.thereporterethiopia.com/index.php/news-headlines/item/3155-raya-to-hit-bars-supermarkets

The technologies used are among the most advanced energy-saving solutions in the field of brewing, according to ZVU Potez. The plant captures CO2 during fermentation for further processing and also includes a system for reducing energy consumption. Energy created during the production process will be used to heat water. ZVU Potez subsidiary DIO Hradec Králové was also involved in the project.

“The African continent is very interesting for us. Currently we are developing additional business opportunities there and evaluating the potential of each individual investor. … Our extensive experience in the brewing industry … allows us to penetrate the markets from South America to East Asia,” CEO Čepelík said.

http://www.z-nyala.com/?p=5121

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Local company requests license for aluminum exploration

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Inter Africa Extrusion, a local aluminum manufacturer, has submitted an application for an exploration license in the Southern Nations Nationalities and Peoples Regional State (SNNPR) to prospect for aluminum; a rare mineral in Ethiopia.

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According to the general manager, Haimanot Abate, his company has partnered with a Chinese firm and had carried out surveys in some areas of the SNNPR and an application has been submitted to the Ministry of Mines. “We are well aware of the availability of aluminum in the area after the survey,” Haimanot told The Reporter.

The company, which used to import aluminum from Gulf countries, is now manufacturing aluminum locally. “In fact, we could not meet the growing demand,” Haimanot told The Reporter. He further stated that the growing demand drove the owner to establish the manufacturing plant with an outlay of 45 million birr initial capital. Consequently, the company raised its capital to 55 million birr.

Though the company gets the scraps locally the company is still importing the raw materials from Dubai. “The only reason we import is for the sake of quality,” he said. The manufacturer is already engaged in the 40/60 housing scheme and has started assembling doors, windows and partitions for the Senga Tera and Kality sites.

In order to satisfy the ever growing demand of aluminum in Ethiopia Tracon Trading, a local company signed a joint venture agreement last year with the Dubai-based Al Ghurair Group. That joint venture was realized to establish aluminum refinery plant on the outskirts of the capital with an estimated capital of USD 50 million to produce 25,000 to 30,000 tons of aluminum annually.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3148-local-company-requests-license-for-aluminum-exploration

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Ambassador says Ethio- Kuwait economic tie growing

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 Addis Ababa: February 15, 2015 – Cooperation between Ethiopia and Kuwait, which began diplomatic relations in 1997, has been increasing from time to time, Kuwaiti Ambassador to Ethiopia Rashed Al Hajri said.

Among Gulf countries, Kuwait is the third largest trading partner of Ethiopia next to Saudi Arabia and UAE.

The annual trade volume between the two countries grows from 3.6 million USD in 2009 to 338 million USD in 2013.

Ethiopia exports live animals and agricultural products to Kuwait, while it imports 70 percent of its total consumption of diesel, airplane kerosene and benzene from the later.

Agreements reached between the two countries and efforts of the joint ministerial committee for the implementation and success of these agreements are the major reasons for the enhancement of the ties, Ambassador Al Hajri noted.

He said: “Among the issues that help to place the relations on a strong foundation are the 14 agreements signed by the two countries. These agreements helped for strengthened bilateral relations.”

According to him, the Ethio-Kuwait joint ministerial committee has “a paramount” importance in strengthening the economic cooperation between the two countries.

Saying: “as the two countries have multi-dimensional relations and have agreements in trade and investment, Kuwaiti investors have began to invest in Ethiopia’s agriculture sector. Officials of the two countries are striving to improve this economic tie.”

The 3rd Afro-Arab Summit, hosted by Kuwait in 2013, also helped the two nations boost cooperation. Kuwait has pledged to extend one billion USD soft loan under the Kuwait Fund to support Africa’s development projects in five years period and Ethiopia is among the beneficiaries.

Kuwait has been extending support for Ethiopia through the Kuwait Fund for Arab Economic Development especially for the road sector development.

He said: “regarding with development projects, the support through the Kuwait Fund has been given by considering the objectivity and necessity of the projects and it plays its own role to support the provision of social services in both rural and urban areas. It continues to support huge projects.”

The support through the Kuwait Fund has been mainly extended to finance major road projects of the Ethiopian government.

So far, over 150 million USD support has extended to road constructions and rural electrification projects through the Kuwait Fund.

The construction of Wukro – Zalambesa, Nekempte – Bedele, and Dessie – Kutaber – Tenata road projects in Tigray, Oromia and Amhara regional states respectively are among the projects financed by Kuwait Fund.

http://www.fanabc.com/english/index.php/news/item/2235-ambassador-says-ethio-kuwait-economic-tie-growing 

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Mobile survey platform to give farmers data to boost yields

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By SCOLA KAMAU, TEA Special Correspondent

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In Summary

•GeoPoll, the global mobile survey platform, has partnered with Control Union, a global leader in agricultural certification, food safety and sustainability to boost agricultural productivity in Africa.

•For a start, the project will benefit countries such as Uganda, Tanzania, Kenya, Ethiopia, Nigeria and Ghana, before expanding to key markets in Asia including Indonesia and the Philippines.

•Target value chains include coffee, cocoa, cotton, palm oil, rice, tea, tobacco and fresh fruits and vegetables.

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About one million farmers in Africa will benefit from a global mobile survey platform that will give them access to data in emerging markets by way of SMS or voice recording, including market prices and standards requirements.

GeoPoll, the global mobile survey platform, has partnered with Control Union, a global leader in agricultural certification, food safety and sustainability to boost agricultural productivity in Africa.

“Accessing information from the most remote farming communities will no longer be a barrier when asking or answering consumer questions,” said Johan Maris, the managing director of Control Union.

For a start, the project will benefit countries such as Uganda, Tanzania, Kenya, Ethiopia, Nigeria and Ghana, before expanding to key markets in Asia including Indonesia and the Philippines.

Target value chains include coffee, cocoa, cotton, palm oil, rice, tea, tobacco and fresh fruits and vegetables.

Farmers across Africa have remained poor due to lack of information on how to add value to their crops and where to sell their produce. Value addition tends to occur mainly outside of Africa.

In the Ugandan Nile perch trade, for example, nearly 70 per cent of the final sale value is added outside of Africa in the retail stages of the value chain. Of the 30 per cent value accrued in Africa, the largest portion is retained by foreign-owned processing plants based in Uganda.

This leaves only 10 per cent to be divided between factory agents, fishermen and the many middle-men along the value chain, a study by Nordic Africa Institute shows.

The lack of access to international markets has left farmers in the hands of brokers, local manufacturers and exporters who determine the farm gate price.

“Farmers can be assisted in meeting these challenges through extension services, training in good agricultural techniques and capacity development programmes,” said John Mutunga, chief executive of the Kenya National Farmers’ Federation. “They also need access to finances that will enable them to buy seeds, fertilisers and machinery.”

The mobile survey platform opens at a time when African countries are focusing on emerging markets as a destination for agricultural produce, given the strict standards required by European markets.

European Union governments have stepped up efforts to test fresh produce for the presence of pesticides such as dimethoate and other organophosphate chemicals blamed for the rise in cancer cases in Europe and Africa.

Last year, the EU market threatened to lock Kenya out of its market, claiming that horticultural produce from the country had pesticide residues above the recommended levels.

http://reliefweb.int/report/world/mobile-survey-platform-give-farmers-data-boost-yields

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ECAE undertakes inspection of Urea, NPS at port Djibouti

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- Port Sudan is excluded

- The Ethiopian Conformity Assessment Enterprise (ECASE) has started inspection of fertilizers at the Port of Djibouti.

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General manager of the Enterprise, Teshale Belihu, said that the inspection is primarily done on Urea and NPS (Nitrogen Potassium, Sulfur) fertilizers. Agricultural Input Supply Enterprise (AISE) is the major body that ordered the inspection since it is the sole importer of the agricultural inputs.

According to Teshale, the enterprise has been conducting inspection only at the Port of Djibouti which unloads 894,039 tons of fertilizer. Amarech Bekele, communications director of AISE said that the fertilizers are mainly purchased from the Norway-based Yara while the rest are imported from Witraco, Helm AG and India Agro. “Yara supplies 371,500 tons of NPS and 200,000 tons of Urea while the rest are supplied by other companies,” Amarech told The Reporter. It has been three months since a memorandum of understanding was signed between the two enterprises for the inspection to be carried out at the Port of Djibouti.

Nevertheless, Port Sudan that expects some 50,000 tons of fertilizer from Witraco and the Hamburg-based Helm AG has been excluded from the inspection by ECAE. “We are not responsible for that. It’s excluded in the agreement,” Teshale told The Reporter. According to Amarech, Port Sudan has been excluded for the time being and it will be transferred to the ECAE or another enterprise. “Since the majority of fertilizer import is via Port Djibouti our focus will be there,” she said.

ECAE is an impartial public enterprise that involves in product inspection, certification and accreditation since 2011. It launched 9000 standards of which more than 160 are compulsory Ethiopian standards to be applicable in food and food item production. And inspecting the agricultural inputs and fertilizers falls under these compulsory specifications, Teshale said.

The government has reportedly paid USD 431.9 million to purchase the fertilizers and is constructing four fertilizer factories in Tigray, Amhara, Oromia and the Southern Nations, Nationalities and Peoples’ regional states to produce some 30,000 tones of fertilizer annually. AISE, a public enterprise, was established in 1985 to purchase and import fertilizer, farming chemical, seeds, medicines and vaccines under its accountability to the Ministry of Agriculture.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3150-ecae-undertakes-inspection-of-urea-nps-at-port-Djibouti

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Projects with 21 bln birr capital licensed in half year

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Addis Ababa, 14 February 2015 –

Over 200 new and 53 expansion projects with 21 billion birr combined capital were licensed during the past six months, Ethiopian Investment Commission (EIC) said.   

Some 108 of the total projects have gone operational, Fitsum Arega, EIC Director-General    told journalists here yesterday.   

Over 2,000 investors from 42 countries have also contacted the commission during the past six months to explore investment opportunities in Ethiopia, he added.   

According to the Director-General, the finalization of the first industry park proclamation for Ethiopia is a big achievement which would make the country a hub of industrialization in Africa in the years ahead.   

According to ENA, the proclamation that aims at mainly transforming the manufacturing industry sector in general and light industries in particular is expected to be endorsed by the House of Peoples Representatives.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17651:projects-with-21-bln-birr-capital-licensed-in-half-year-&catid=52:national-news&Itemid=291

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Swedish Company to Invest US $200 million on Forestry in Ethiopia

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The Swedish based agro forestry company VIP disclosed it is keen to invest in Ethiopia’s forestry. The announcement was made during a press briefing organized by the company and Ministry of Foreign Affairs (MoFA).

Managing partner of VIP, Akal Mamo, during the event said, “As per our desire, we were working for the past seven months to prepare memorandum of understanding (MoU), which we expect to be signed soon with Ministry of Forestry and Environmental Protection (MoFEP)”.

VIP intends to start a project it dubbed Paulownia Forest Project. The project will enable the company to produce fast growing multipurpose trees which naturally provide ethanol, that serves for hardwood timber.

The project is expected to cost USD 200 million and it is planned to be undertaken in degraded lands of Oromia State, Amhara State, Tigray State and Southern Nations Nationalities and Peoples State, Teka explained.

During the press briefing presentation of three companies that are known to engage and interested to invest in the sectors of diary, milk and sugar took place.

According to Fortune, forestry as a sector contributes 90 percent of Sweden’s GDP.

http://www.2merkato.com/news/alerts/3579-swedish-company-to-invest-on-forestry-in-ethiopia

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Will The U.S Abandon Its Trade Pact With Africa?

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By Emmanuel Iruobe

VENTURES AFRICA – Arguably, one of the factors responsible for Africa’s improved trading over the past decade has been the Africa Growth and Opportunity Act (AGOA), a piece of legislation that was approved by the U.S Congress in May 2000. It was granted to assist the economies of sub-Saharan Africa grow economic relations with the world’s greatest economy.

The act facilitates duty-free entry into the U.S for certain goods, and the result had been an expanded access mostly for textile and apparel goods and a surge in foreign exchange earnings. It was initially set to expire in 2008 but, again, the U.S Congress extended the Act till 2015.

Last year, at the U.S-Africa Leaders’ Summit, a number of African heads of state pushed for the pact to be extended by a further 15 years and suggested that the range of products covered by the act be expanded to include agricultural products. The rationale for this is clear; U.S bound exports from sub-Saharan Africa under the AGOA totalled about $26.8 billion in 2013 alone according to Reuters. This fulfils the exact reason the act was enacted in the first place.

Lesotho and Kenya can be said to be the biggest beneficiaries of the deal as their economies have been diversified and strengthened largely as a result of the trading opportunities created by the act. Nigeria, the continent’s biggest economy, has also seen trade flows blossom to $18 billion since the act enactment.

South African President Jacob Zuma, at the summit, emphasized the need for another extension, saying; “Almost 95 percent of South African exports receive preferential treatment under AGOA. We strongly believe that by endorsing the extension of AGOA, the U.S. will be promoting African integration, industrialization and infrastructure development – I’m sure the Americans would not want to lose this opportunity.”

Diverse criticisms have emerged over the years from elements in the United States. Their main argument being that a further extension could damage America’s interests in the long run.

Dr Carlos Lopes, Executive Secretary of the UN Economic Commission for Africa, explains the points-of-view of the critics in a 2013 article, in which he wrote; “The Act’s opponents argue that Africa’s impressive growth in the 21st century means the continent no longer needs special treatment. They also claim that it is China and other countries who have been investing in Africa which have been the main beneficiaries from the removal of restrictions and that, in some cases, they are simply re-exporting their own products through African countries.”

“Evidence, however, shows that while African countries have certainly gained, as intended, the most from AGOA, the benefits have not by any means been all one-way. In the first decade since it came into force, US exports to sub-Saharan Africa tripled to $21 billion. As the US commerce department estimates that 5,000 American jobs are created or sustained for every $1 billion worth of exports, this trade is helping support over 100,000 jobs in the US. The US trade department has also insisted that proper safeguards are in place to prevent abuse of the rules,” he added.

This is a win-win for both regions, making the case for further extension all the more necessary. Apparel and footwear companies continue to champion the largest support as several hundred thousand jobs were created via AGOA. But, with the uncertainty surrounding the renewal of AGOA, further investments will be likely stall and the already created jobs may be in jeopardy.

If the extension succeeds, it will benefit both regions. American exports and jobs will increase as African countries develop their economies in new sectors. This will bolster the US’s global influence even more.

The European Union, keen to escape its present economic uncertainties has already set up an Economic Partnership Agreement with 35 African countries. This is essentially a framework for free trade agreements. If this materializes and the AGOA fails to scale, the United States may remain at a permanent competitive disadvantage with respect to Africa, which happens to be the new investment frontier for global businesses.

In the run up to current AGOA expiry date of September 30, the world will be watching to see how the US treats its growing ally.

http://www.ventures-africa.com/2015/02/will-the-u-s-renew-its-trade-pact-with-africa/

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Giant Chinese Corporation Seals 339m Br Power Contract

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- Project foreseen to improve electric networks in eight urban centres

Azeb Asnake (Eng.), CEO of EEP.

Power distribution sub-stations in eight towns are going to be rehabilitated and upgraded with a finance of 339 million Br from the World Bank’s (WB) International Development Association (IDA).

This is according to the agreement the Ethiopian Electric Power (EEP) signed with the Chinese firm China Electric Power Equipment & Technology Co. Ltd. (CET) on February 5, 2015, for the project, which is expected to be finalised within a year and a half.

CET took the project, which covers the distribution, rehabilitation and upgrading of electric networks in Addis Abeba, Adama, Dire Dawa, Hawassa, Bahir Dar, Dessie, Jimma and Mekelle. The project also includes installing automated technologies for control supply systems and performing quality control on the electric distribution system.

“The aim of the projects is to solve the problem of power outage occurring in those towns. It is mainly caused by the capacity problems of the distribution systems,” said Misikir Negash, external relations director at the EEP.

Misikir attributed the problem of power outage to the age and capacity of the transformers and sub-stations currently in operation. The new expansion will enable the power distribution stations to accommodate the increasing power to the distribution and national grid system, according to Misikir.

In the coming two years, the power utility monopoly is expecting the power supply upsurge from Gilgel Gibe III, which has the capacity of producing 1,870Mw, and currently in the final stage to start power supply by the end of the current fiscal year. The Great Ethiopian Renaissance Dam (GERD), which will have a total power supply capacity of 6,000Mw, is also expected to generate power by the end of 2015/16 fiscal year.

When the Growth & Transformation Plan (GTP) was designed in 2009/10, the total electric power capacity of the country was 2,000Mw. Five years later, in 2014/15, it reached 2,268Mw, and the plan is to reach 10,000Mw after six months at the end of the GTP period.

“Two decades ago, the number of towns, both rural and urban that got electric power was 320. But now the number has increased to 6,000,” Misikir said.

Power transmission lines have currently reached 13,000Km; the plan for 2014/15, according to the GTP, is 17,787Km. Electrification service coverage reached 55pc in the 2013/14 fiscal year, against a target of 70pc. The GTP’s electrification target is 75pc by the end of 2014/15.

CET is a wholly-owned subsidiary of State Grid Corporation of China, which received a 1.2 billion dollar payment from EEP to connect the power generated from the GERD to the national grid on 2013.

The company, which will work on the 500Kv transmission and transformation project at GERD has a presence in 80 countries across the world and took projects with a total outlay of 3.2 billion dollar as of January 2014.

“After the finalisation of the project, the transmission capacity of the sub-stations of the eight towns will double,” Meskir told Fortune.

Ethiopia has the potential to generate 50,000Mw of hydro power, 10,000Mw of geothermal and 1.3 million megawatts of wind power where the aggregate demand for electric power reached 7,589GWh in 2013/14 by rising from 4,984GWh in 2010/11.

http://addisfortune.net/articles/giant-chinese-corporation-seals-339m-br-power-contract/

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Ethiopia’s green economy plan

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One of the sticking points in global climate negotiations is the role of developing countries. As the biggest emitters historically, it is the industrialised nations that need to reduce their carbon, but they won’t do it unless developing nations make commitments too. And developing countries won’t do anything to disadvantage themselves in their efforts to industrialise.

There are several flawed assumptions behind the stalemate, including the idea that decarbonising is a bad thing that we won’t do unless we absolutely have to, like a child being told to tidy their room. The fact that a decarbonised economy would be more energy secure, healthier and actually sustainable seems not to have registered. Another assumption is that poorer countries can’t afford to limit their carbon emissions, and that they need to prioritise economic growth and come back to environmental action later.

Through the logjam there are, however, a few points of light and reason. One of them has been Ethiopia. Under the leadership of the late Prime Minister Meles Zenawi, it has taken climate change entirely seriously and adapted its development model accordingly, setting itself the goal of achieving “middle income status by 2025 in a climate-resilient green economy.”

I was reminded of this vision recently by the news that Ethiopia have just switch on the continent’s biggest wind farm. Since Ethiopia’s experiment is still hardly known, I though it might be worth looking at in a little more detail.

The Ethiopian government knows that the conventional development model has consequences, however taken for granted it may be elsewhere. “Following the conventional development path would result in a sharp increase in GHG emissions” says the 2011 green economy strategy document. Furthermore, it “could result in unsustainable use of natural resources, in being locked into outdated technologies, and in losing an ever-increasing share of GDP to fuel imports.”

Instead, the strategy outlines four main areas of focus:

• Agriculture: Improve food security and welfare of farmers while reducing emissions, by improving crop and lifestock production. Emissions can be reduced through sustainable intensification, which aims to improve yields on existing land rather than expanding it. Degraded land will be restored as part of a soil preservation strategy, rather than clearing new forest land for crops. Organic techniques will be used where appropriate, alongside more efficient use of fertilisers and better control of residues.

• Forestry: Re-establish forests and protect existing ones, creating carbon stocks and capitalising on REDD initiatives, while raising production in forest products such as honey and shade grown coffee. The country has been losing forest for fuel wood, so moving people from wood-burning stoves to biogas or electric is a priority. Degraded grazing land will also be restored and reforested.

• Power: The country is largely hydro powered as it is, and it expects to be entirely renewable by 2015. It also needs to expand power generation considerably, and recognises this as a “fundamental bottleneck to growth.” Future generation will be renewable, with wind, geothermal, solar, further hydropower projects and even landfill gas. The country is the first in Africa to invest heavily in wind power, and this meshes well with existing capacity – hydro drops off at the end of the rainy season, but wind speeds increase in the dry season. By investing in renewable energy now, Ethiopia intends to be a net exporter of electricity in the region.

• Transport, industrial sectors and buildings: leapfrog to modern and energy efficient technologies. Renewable based electrification will replace the widespread use of kerosene lamps. There’s an electric rail strategy, particularly within Addis Ababa and between the capital and the seaport in neighbouring Djibouti. “Shifting transport from road to rail would not only decrease transport costs and improve the trade balance through reduced import of fossil fuels, but would also lower emissions, congestion, air pollution, and traffic accidents.”

None of this, you will notice, ignores economic growth – and nor should it. As a poor country, Ethiopia needs growth far more than we do in Britain. Ethiopia is one of the world’s fastest growing economies, and it has no plans to abandon that momentum in exchange for sustainability. This is about building it green first time round, rather than following the usual fossil-fuel based industrial model and then hoping you can patch it later.

How successful Ethiopia are remains to be seen, and with acute poverty there is a real challenge to make this green growth inclusive. It could also be derailed. There has been fairly widespread support for the vision, but with the death of Zenawi last year, it is unclear how the policies will fare in his absence. But if the commitment survives the power transition, Ethiopia will remain one of the most progressive nations in the world when it come to climate change.

http://makewealthhistory.org/2013/11/11/ethiopias-green-economy-plan/

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Packaging giant Tetra Pak eyeing Ethiopia for investment

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Tetra Pak, one of the world’s biggest foods packaging company, is looking for investment opportunities in Africa. Ethiopia is on the list of countries the company is keen on exploring for a possible venture.

The company will send a high level delegation to assess opportunities the coming May 2015, Capital learnt.
Tetra Pak made its ambition known during the first Ethio-Swedish Agro Technology Forum of the dairy, sugar and energy sectors that was held at the Sheraton Addis Hotel on Tuesday, February 10. The event brought together major actors in the agro processing, dairy and energy sectors such as Tetra Pak, De Laval, Alfa Laval and Valley International Projects (VIP).
The Swedish company currently has two production facilities in Africa, South Africa and Kenya.
“The government is ready to support industries that are linked to the agricultural sector. The raw commodities that we are currently exporting are expected to go through a transition to become processed and value added so that they can be linked to the global value chain,” stated Dr. Mebrahtu Melese, State Minister of Industry when addressing participants of the Ethio-Swedish forum.
He also stated that companies such as Tetra Pak should really consider investing in the country to take advantage of the opportunity in the market as well as to enable the agro-processing sector export value- added products.
Swedish Ambassador to Ethiopia Jan Sadek said farming, food production and food packaging have been one of the most important pillars for Sweden’s economic development. He also said that innovation, invention and research within agro-techniques, in particular by companies such as Alfa Laval, De Laval and Tetra Pak, were instrumental in developing Sweden’s agro business and related services.
“I believe that agriculture and dairy here in Ethiopia, as it was the case in Sweden, have a potential both for the domestic economy, livelihood, biological diversity, energy production and more. We know that these areas have an important role in the current Ethiopian Growth and Transformation Plan and they are also likely to remain important in the future to come,” the Ambassador stated. He further said that the forum was an occasion to share experiences, create ties between Ethiopian and Swedish stakeholders and the beginning of a mutually beneficial business opportunity.
“Today, our cooperation is more about development, environment, peace and stability, of course trade and investment. Sweden wants to encourage a broader cooperation with Ethiopia with increased trade and investment relations and knowledge transfer,” the ambassador said.
The Forum was organized by the Ethiopian Embassy in Stockholm, the Ministry of Foreign Affairs and Valley International Projects (VIP).
VIP, a company that is also engaged in Agro-forestry stated that it has an interest to invest in the forestry sector in Ethiopia. The company has a plan to launch a project called a Paulownia Forest Project involving a fast growing tree that can provide a byproduct for energy.
According to estimates, the project could cost around USD 200 million and is planned to be carried out in Oromia; Amhara; Tigray, and Southern Nations, Nationalities and Peoples Region.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4932:packaging-giant-tetra-pak-eyeing-ethiopia-for-investment&catid=35:capital&Itemid=27

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Travel: Ethiopia’s come a long way

By Helen McGurk 

Remarkable landscapes, a wealth of wildlife viewing opportunities and fascinating historical sites are drawing foreign visitors to Ethiopia

Once ravaged by famine and poverty, Ethiopia has come a long way in the last 30 years.

Upmarket tour operators Kuoni and Scott Dunn have both tipped the destination as a place to visit in 2015, while an African safari contact recently told me: “Everyone in the industry seems to be heading to Ethiopia for their holidays.”

One woman who clearly recognised the East African country’s potential some time ago, is 64-year-old Susan Aitchison, a Scottish woman who arrived in 2007 to teach at a local school, and was so struck by Ethiopia’s beauty, she decided to open a restaurant.

Named Ben Abeba (Ben means hill in Scottish, and in Amharic translates as flower), the restaurant employs young people from the local area and aims to give visitors an insight into Ethiopian culture and hospitality. There are daily demonstrations of Injera (local bread) making, traditional coffee ceremonies and music and dancing most evenings.

Since opening in October 2011, Ben Abeba has climbed to the top of Trip Advisor’s Top Restaurant list, and with tourist numbers expected to increase this year, interest is set to gather pace.

Susan and Habtamu are in the process of building four guest bungalows, due to open later this year, set amongst more than 50,000 trees and plantations of banana, papaya, pomegranates and guava. Twelve more accommodation units are also in the pipeline, along with a conference centre and meeting room.

For those hoping to plan a visit, April to June, and October to February are considered the best times to go. Kuoni currently offer a nine-night Highlights of Northern Ethiopia tour, including a city tour of Addis Ababa, and trips to the Blue Nile Falls, Lake Tana, Gondar, Lalibela and the Bale Mountains National Park. Departures on October 5, and November 9, cost from £2,424 per person, including flights.

http://www.newsletter.co.uk/news/features/travel-ethiopia-s-come-a-long-way-1-6580003 

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 Government to set cotton price to stabilize market

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The continuous criticism cotton producers and textile factories throw at each other regarding the very low price offered for locally produced cotton has led the Ministry of Industry to set the price.
Previously, the government imported cotton to fill the gap in supplies and to stabilize the price, but the new option encourages farmers to produce more and supply it to the textile factory at a fair price.

The textile factories, who are major buyers of local cotton, lament the inconsistent prices.  Consequently, they were forced to change their production cost several times. Producers  argue that the cost of labor, the high price of agriculture machineries, uncertainty in market, and weather conditions have  deterred them from  offering consistent prices to local producers.
The supply chain of cotton to market is also elongated resulting in lower earnings by farmers and channeling significant profits to brokers.  Brokers buy a kilo of cotton under 30 birr from farmers and sell it to factories from 40 to 60 birr.
“It is right for the government to stabilize the cotton market,” Tadesse Haile, State Minister of Industry said at a meeting with cotton producers held at Ghion Hotel on February 9.
“We are aware of brokers who set the price of cotton randomly and that discourages textile factories which causes them to incur additional costs. If it has not been for that interference, we sometimes may experience cases where farmers produce plenty and find few buyers.”
So we have to mediate the situation by setting a price that is fair for both farmers and factories. And we don’t want to keep on importing cotton. We need all locally produced cotton to be consumed by our factories. And setting a price will help us realize that.”
Tadesse further noted that his Ministry is in discussion with stakeholders to draft a regulation prohibiting the involvement of brokers on the delivery line of agricultural products to the market, because that interference has significant impacts on the industry.
“Our agricultural products, especially those that are used as inputs for other industries, must be supplied at a fair price. Otherwise our effort to transform agriculture into an industry will face a big challenge. So we have to move the brokers who disturb the price. We only need producers and factories to deal with the products.”
According to Tadesse, his ministry commissioned a research on BT Cotton, one of the different genetically modified cotton variety that is reputed to rendering high yields.  The industry ministry has submitted a draft bill along with a synopsis of the research for ratification by parliament.
“We need more cotton to maintain our growing industry, and using GMO is one of the alternatives to boost production,” he stated.
Though producers do not agree on the notion of shorter cotton supplies, the current bulk demand for cotton in Ethiopia is estimated around 100,000 tones while the supply is around 65,000 tones.
Second rate quality of local cotton, lack of modern agricultural methods, poor irrigation systems and shortage of labor hampered the cotton industry from expanding.
The Ethiopian Cotton Producers, Ginner and Exporters Association (ECPGEA) Vice President Abreham Tadesse criticized the government for not giving proper attention to the industry.
“There is 250,000 hectares of land available for cotton plantation but only 10 to 15 percent of it has been cultivated so far, and this shows  underutilization of  the resource,” the vice president corroborates his argument.
He argues that GMO cotton is not the solution to increase production.  “We can still manage to scale up production without GMO cotton if government gives proper attention to cotton farming like it did to sugar farms.’’
Yet an agricultural researcher, Dr Million Belay, Capital requested to give scientific views on the issue opposes the Ministry of Industry’s plan to allow the use of BT Cotton.
Dr. Million Belay, Director of Melka Werer Agricultural Research Station told Capital, “the Industry Ministry tells us the experience of Sudan and other cotton producers who made a good production by applying BT Cotton, and they argue that the chemicals that are used to kill cotton pests demand more finance while BT Cotton has its own immune system to combat pests.”
“However, my institution disagrees as the condition in other countries and in Ethiopia is so different; the soil type and other related and relevant matters must be studied.  No one gives an ear to our suggestion and the bill is in the final stages of ratification,” Dr. Million sadly commented.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4939:government-to-set-cotton-price-to-stabilize-market&catid=54:news&Itemid=27

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Nation identifies 5 corridors for horticulture development

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Semera February 16, 2015 -

The Ethiopian Institute of Agricultural Research said five development corridors said to be favorable for horticulture development in the country have been identified.

Addis Ababa- Oromia, Hawassa- Arba Minch, Awash- Dire Dawa and Harrar, Bahir Dar- Nile Gorge and South Gondar, as well as Mekele- Raya and Alamata are the corridors.

Some 50,000 hectares land has allocated in these areas for flowers, vegetables and fruits as well as coffee production, the Director-General, Dr. Fantahun Mengistu told ENA.

The horticulture development corridors need to be identified so as to further boost horticulture development thereby improve its contribution to the nation’s development, he said.

Favorable ecosystem and nearness to various transport systems including air transport are the criteria used to select these areas, he added.

http://www.ena.gov.et/en/index.php/economy/item/404-nation-identifies-5-corridors-for-horticulture-development

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Omo Kuraz project satisfactorily responding to native pastoralists demand for development

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Addis Ababa, 16 February 2015  - Pastoralists living around Omo River have been leading their lives wondering from place to place in search of grazing land and water for their cattle.

As they are residing in remote areas of the nation, they knew neither social services nor infrastructures prior to the inception of Kuraz Sugar Development Project. Now things are changing and their demand for development is getting satisfactory response from both the federal and regional governments of the nation.

It was through the villagization program that pastoralists gathered for the first time at three villages of Arebijo area had started getting social services few years back when the Omo Kuraz Sugar Develoment Project was kicked off at Selamago District of South Omo Zone. And, witnessing the fruits of the sugar development project, pastoralists of same zone together with those at Keffa and Bench-Maji zones have started requesting both the regional and federal governments of the nation to foster the activities of the Omo Kuraz Sugar Development Project and reach where they are around and thereby they too become beneficiaries of social services and infrastructures as their fellow pastoralists at Selamago.

Hence, responding to the demand of these pastoralists, the project together with the regional and federal government have made social services and infrastructures available to pastoralists living at Gurra and Maki villages at which they started living together through the villagization program they had joined voluntarily. Furthermore, construction of social services at a village called Haillowa One is at its final stage while contractual agreements are signed with the constructing institutions so that they could start building similar service giving institutions at Haillowa Two village too.

As these all pastoralists were not acquainted with farming earlier , the project , giving training on how to till a land and harvest crops , has made available irrigable plot of land upon their request so that they can run farming business along with their cattle rearing job. And, it was pastoralists who have first started living at three villages of Arebijo that started farming and are now harvesting for a third round. At this village 2,400 hectares of irrigable land is made available to native pastoralists while irrigable land preparation work is underway to others gathered at Gurra, Maki and Haillowa villages.

Besides these the project, working hand in glove with the regional and federal government, is making irrigable land, social services and infrastructures available to those gathered at villages very far from the command area of the project.

On the other hand, pastoralists are benefitting a great deal from the market link created due to the constructed roads and other infrastructures which have helped them sell their herds with much better price as never before.

The Omo Kuraz native pastoralists have not only became beneficiaries of the above facilities but also got job opportunities at the project itself and those participating institutions of the project’s various activities.

Ollilu Charnielay is a native from Murssi nationality. He had went through a tractor machines operating training program at Chancho Tractor Training Center in 2013 and is now working as a regular employee of sugarcane plantation division of the project. His role in the division is land leveling and furrowing of cane cultivation field of the project using tractor machines. Asked to share about his opinion of the project, he said “I am very happy of working at this sector which is believed to contribute a great deal in doing away with the poverty our nation is leveled for”. Ollilu had no any idea about tractor machines before his training.

The other tractor operator employee of the project who shared his view about the project is Kassahun Metachew. He is from Dimmie nationality. Going through the same training program as Ollilu, Kassahun is working at the cane cultivation division of the project and is eager to see the sugar factory under construction producing sugar.

We found Metachew Deneke at Gura Elementary School. He is from the Dimmie nationality and is now working as a director of the elementary school built at Gurra village. He speaks the language of Boddis’ fluently. According to him currently 43 students are enrolled. Among them 18 are children while 15 are aged. And, what surprises him more is the enthusiasm the latter are showing for learning. The school is providing them with exercise books and pencils besides feeding their lunch. “We also have special incentive to female students; we provide them with edible oil every month as long as they attend the school with no interruption”, Metachew went on saying

Gatapai Zoggi is from Boddi nationality and we found her while she was getting the service of the flour mill constructed at Tikawoch Village of Gurra and asked her to share her relfections on her new way life. She and the villagers at Tikawoch have started getting services from potable water, flour mill, school and clinics of both human and cattle constructed at their village. “As I am attending the school regularly, I am now-a-days getting edible oil every month besides the lunch service during school days” She says.

These pastoralists living around the Omo Kuraz Sugar Development Project had paid a visit to Wonji Shewa Sugar Factory last year where farmers around it used have a long history of working with the sugar mill as sugarcane out growers. And, following their visit natives of the Omo Kuraz Sugar Development Project have time and again been requesting the project to let them work as out growers of sugarcane like those farmers around Wonji Shewa Sugar Factory. The project accordingly has allotted 1,072 hectares of irrigable land to 1,430 pastoralists each acquiring one hectare of land on which they are to grow sugarcane on 0.75 hectares and other crops on the rest 0.25 hectares. These pastoralists will also get professional assistance from the project including fertilizers and pesticides supply.

Till now more than 36,000 citizens have got job opportunities in the project itself and the participant companies of the project. And, 158 micro and small scale enterprises have become beneficiaries by taking part in the construction and service giving jobs. Moreover, both the regional and federal governments of the nation are working their level best in paving ways so that native pastoralists will step by step go up the ladders of various positions in the project. And, currently 30 native pastoralists are working in the project as irrigation experts after going through a training program at Arbaminch University while many in number are now working at different positions of the project.

Hence, as never before pastoralists around Omo Kuraz Sugar Development Project need no one to tell them what is best to their future unless he/she would dare want to run his/her obscured agenda.
Omo Kuraz Sugar Development Project command area encircles some woredas of South Omo, Keffa and Bench-Maji Zones. It is one among other projects Ethiopia has identified as a very promising one for the sector and it will in the end have 175,000 hectares of land for its cane cultivation. Five sugar factories will be constructed here three with 12,000 TCD and the rest two with 24,000 TCD.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17691:omo-kuraz-project-satisfactorily-responding-to-native-pastoralists-demand-for-development-&catid=52:national-news&Itemid=291

By Amen Teferi
Tigrai Online, February 16, 2015

The Ethiopian Prime Minister’s Visit to Djibouti

Last week, the Ethiopian PM Hailemariam Desalegn was in Djibouti on a three-day official visit. His visit to Djibouti has brought to light the strong interest the two countries have in further consolidating their relation to the level that some groups or individuals may find as something unexpected. Hailemariam and his counterpart the Djiboutian president are much optimistic about the integration of two sisterly countries. Ethiopian PM has even declared, “Political integration is not that difficult” and asked members of the Federal House of Representatives to support his government in realizing this goal.

His visit has markedly opened a new chapter, which would infinitely deepen the multifaceted, social, economic, historical and cordial relationship of the two countries. Thus, it had received special attention and spurred diverse interpretations form various corners.

According to Hailemariam countries in the Horn cannot have surefooted development without establishing economic integration among themselves. He also underscored that Ethiopia’s development is inextricably knotted with the peace and security of the region; thus he expressed the readiness and unwavering commitment of his government in strengthening the existing ties of the two sisterly countries.

Moreover, he said, “Any foreign aggression or assault aimed at undermining the basic national interest of Djibouti and its people would simply get on the nerves of Ethiopia.” In this regard, he chose to be unusually explicit, for he has unequivocally declared the importance Ethiopia has attached to its overall relationship with Djibouti.

In short, the PM visit to Djibouti was meant to highlight the ever-deepening bond of the two countries, in social, economic, political spheres and their interest in further expanding cooperation in the military sector.

Hailemariam emphasized the fast growing infrastructural development being undertaken by Ethiopia is meant to facilitate the economic integration between Djibouti and Ethiopia pointing that the two countries have pioneered the move to economic integration by establishing the energy alliance in the Horn.

In related news, AU commissioner for the infrastructure sector was last week on record lauding Ethiopia’s effort in taping its renewable energy resources and commended its endeavor in developing its national road and railway network that would also ensure solid economic integration among in the Horn of Africa and beyond.

As the current trends are obviously indicating, we will in the near future witness the death of a national economy per se. The chance is as P.M Meles had once said, we are bound “to swim or sink together.” We cannot see a developed and prosperous Ethiopia, Djibouti, Sudan, Somaliland or Eretria etc without having regional economic integration.

As we all know, poverty, marginalization, and hopelessness are key triggering factors for a protracted conflict in this region. These were factors favorable for the insurgent groups that until recently were proliferating in the Horn.

However, the existing sporadic conflicts witnessed in the pastoralist communities living in the peripheries of various countries in the Horn will gradually dry out with the ongoing socio-political and economic transformation happening in these communities. Djibouti can be cited as a good example to the transformation pastoralist societies in the region.

Djibouti

Hundred years ago, Djibouti was just a camp of pastoralist traders. The great grandfathers of the current Djiboutian generation had been pastoralists. When the pastoralist mode of life has changed and the people began to have a settled life, the current conflict situation will give way to lasting peaceful life.

For instance, the abundant natural sources -fertile land and water- have so far remained untapped in the Somali region of Ethiopia. Nevertheless, following the relative peace witnessed in the past few years, the Somali region is experiencing very impressive progress in all sectors of developments that would ultimately contribute to create enduring peace and security in the Horn.

On the other hand, we know that after the discovery of oil in Sudan, i.e. Northern Sudan Republic, has become giant economy in the Horn. It was enjoying the luxury of being oil producer with a potential of emerging as a giant economy in the Horn. Later, with the emergence of the southern Sudan as a new independent state this situation has swiftly changed. With the new dramatic turn of events or the separation of the Southern Sudan that elusive luxury has suddenly gone. Abandoning all other sectors of the economy, including farming, Northern Sudan has begun to rely on oil and found herself in difficult situation confronting with new challenges.

The point is things are pushing in the direction of integration. The oil rich land locked southern Sudan now contemplating to use the port of Djibouti. And this would only be possible if only it has a land link with Djibouti that of necessity must go across Ethiopia. This in turn will help Ethiopia to integrate with its neighbor and continue to engage in the regional developmental efforts, which is supported by the current favorable regional and global conditions.

Though the geopolitical importance that the Horn had been enjoining during the cold war period is now fading away, the giant global economies of China and India are energizing the developing economies of Africa They are aggressively penetrating into the huge market of the sub-region. With the emergence of the Asian big economies-china and India- the Indian Ocean has increased its strategic importance. Thus, the Horn (Africa in general) is getting more attentions of the big economies. Impressive economic growth in Africa is attracting various investors from all over the world. Regional stability is imperative for this robust economic trend to continue.

Thus, the power interconnection with Djibouti could clearly indicate not only the potential of Ethiopia to emerge as a huge powerhouse in the region, where many of its neighbors badly need the cheaper electric power Ethiopia could offer, but also the inevitable economic integration the countries in the Horn would embrace. It is to be recalled that Kenya and Sudan had also signed hydroelectric power supply agreement with Ethiopia.

Diesel is an expensive source of electricity. Therefore, the Ethio-Djibouti hydroelectric power interconnection would definitely ease the burden of business operators in Djibouti, Kenya and Sudan. Considering the fact that small enterprises operating in Djibouti are, on average, incurring 30 thousand Birr per month for their electric bill, hence, it would be attractive for Djibouti to purchase extremely cheaper and clean electric power from Ethiopia. This and other new development in the Horn would led to an energy based economic integration or interdependence in the Horn region.

One can rightfully expect that Egypt will soon join this interconnection and soon we will see Ethiopia serving as “the power hub of the North-eastern Africa,” as the late PM Meles Zenawi had envisioned.

In the near future, we will surely have an organization named as “Multilateral Commission for the Horn of Africa” that is mandated to foster closer cooperation and strive to resolve common concerns the countries in the region. And seek ways to improve public understanding of such problems and to support proposals for handling them jointly, and to nurture habits and practices of working together among the Horn countries. With this, it will herald that time for conflict has gone and the time for cooperation has come.

Hailemariam’s recent visit to Djibouti would reassure us that economic integration of the two countries will be realized so sooner than many can expect. The leaders of both countries have reflected their strong commitment to redefine the stereotypic and longstanding features of the region, which is war and hunger. This exciting change of political disposition has prompted me to appraise the current standing of the Horn in light of the basic percepts endorsed by the foreign policy of Ethiopia.

Ethiopian Foreign Policy

To begin with, the foreign policy of Ethiopia is not formulated by reiterating hollow grandeur, which is driven by such hypocritical vanities that the past regimes used to harbor.

Following the introduction of the new foreign policy, Ethiopia has achieved huge diplomatic success and excellent neighborly relationship with many of its neighbors. It has also played indispensable role in pacifying the Horn. Ethiopia has leading role in brokering and restoring peace in Sudan and Somalia. It is also instrumental in the ongoing negotiation process being carried out under the auspice of the regional body called IGAD. The vigilance and dedication it has shown in the negotiation or arbitration process to end the civil war in South Sudan is simply admirable. Ethiopia’s foreign policy would enable it to forge strategic bilateral relationship with all its strategic partners. Ethiopia was active in appraising the strength and weakness of our continental organization AU and has played significant role in framing AU’s fifty years vision.

The Ethiopian government has adopted a new broader definition of national security. Therefore, its primary focus is not a military defense or regime stability. The redefinition of its foreign and security policy is primarily driven by an inward looking assessment of its basic national interest. It has adopted realistic, rather than idealistic disposition, in the formulation of its foreign and security policy. The policy is born out of the conviction that one’s national security cannot be guaranteed by having a well-trained and armed defense force, but by establishing a vibrant democratic system, which would at the same time serve as an essential prerequisite to create sustainable and all-inclusive development.

As history of the region can indicate, the undemocratic states in the region have failed to be representatives and therefore contain all the seeds for both the intra and inter-state conflicts. Beggaring one’s neighbor is a nuanced or finely developed political art of the Horn. Hence, like every other state in the region the policy Ethiopia was pursuing in the past can be characterized by a policy of regional destabilization. The bid for regional power was aggression, which is still true as far as the Eritrean regime is concerned.

Consequently, we have very fragmented regional diplomatic landscape and weakened regional organization. The current Ethio-Djibouti relationship clearly signifies a detachment from the past political culture that had been nurturing aged old intractable conflicts and war, which had constantly been destabilizing the Horn. The strong economic tie among countries in the Horn is the product of the changed attitude born out of the general democratization effort undergoing in the region.

Following the demise of the notorious Derge regime, Ethiopia has taken courageous steps that had helped her to relive herself from the overwhelming historical challenges that have remained unsolved for ages. In the period after 1991, the country has embarked upon huge national projects that have created the momentum to spur sustainable development.

Ethiopia has begun this remarkable process by overhauling the longstanding political system that had been strangling the Ethiopian people for so long a time. This has created a venue where the voices of the voiceless have gotten unique attention. Marginalized ethnic groups in Ethiopia have courageously worked to redefined “Ethiopianess” anew. We behold this enticing event taking over where the deplorable situation that has engulfed the country for ages have started to dissipate and made Ethiopia hospitable to its citizens and attractive to its neighbors.

The political change that has effected a notable economic and social transformation not only changed the way Ethiopians view themselves, but also the perception they had towards their neighbors. In appreciating the perception of the later, it is worth examining the foreign and security policy and strategy adopted by the FDRE government.

The policy is not, as it has been the case in the past, formulated by recanting the objective reality and reiterating a tangentially created hollow grandeur. The new policy has insulted itself from such hypocritical vanities that characterize such policies adopted by the past regimes. It rather has take on a new broader definition of national security with an inward looking stance. Thus, its primary focus is not a military defense or regime stability; but democracy, good governance and development.

In view of this policy, it is not the nature of the state in the neighboring countries that would mainly dispose Ethiopia vulnerable to any foreign aggression, but the absence of democracy and sustainable development within.

As the past successive regimes of Ethiopia had failed to develop a viable political and economic formula to govern the internal affairs, they were also unable in establishing a regional cooperation in the conflict ridden Horn of Africa.

The Horn of Africa is one of the most fragile crisis regions in the world. And that is reflected in the regionalized civil wars and inter – state rivalry in this sub-region. The net result of these failures indeed was a protracted internal strife and regional instability.

The Horn used to be a very complex or hard to analyze, thus creating a confused picture in the mind of scholars who tried to grapple with issues of the sub-region. The region was characterized by a diverse complexity of issues that would baffle even the most intelligent of the towering talents who attempt to study the inflexible conflict in the region. However, recent development has changed the unruly character of the Horn and it started to be intelligible. Thus, scholars are suggesting an energy-led (water and oil) economic cooperation and integration would be a viable scheme to bring a lasting peace in the Horn of Africa. I would say that the foreign and security policy and strategy of the Federal Democratic Republic of Ethiopia has in its way the same flight deck.

Before anything, the policy EPRDF formulated has surely dispelled the misperceptions of the past regimes, and is informed by the objective reality of the country to ensure the benefit of the people of Ethiopia and the sub-region as well. This unprecedented economic growth in Ethiopia has evidently shown a spillover effect on the rest of the region.

The government, apart from ensuring the political system of Ethiopia to be hospitable to its citizen, has also devised an economic policy that has brought a fast and sustained economic growth which could serve in turn as strong catalyst or vehicle for regional security, cooperation and integration.

According to the foreign policy of Ethiopia, ending up an internal strife and regional conflict could not be possible without having a meaningful economic integration in the sub-region. That was the message conveyed by the late Prime Minister Meles Zenawi in the speech he had delivered at the inauguration of the power interconnection of Djibouti with Ethiopia. His message was that “the success of achieving stability in an individual country of the Horn would substantially depend on the overall stability of the Horn in general.”

Of course, most of the states in the region are still undemocratic and truly not representatives in nature. Therefore, many of them contain within themselves the seed of internal political conflicts. Absence of democracy and good governance has indulged countries in the sub-region into intra and inter-state conflict.

Sourced here  http://www.tigraionline.com/articles/djibouti-ethiopia-unity.html

Woldia-Hara Gebeya-Mekele Railway Project commences

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A ceremony is underway in Quiha, Tigray marking the commencement of the Woldia-Hara Gebeya-Mekele Railway project.

http://www.fanabc.com/english/index.php/component/k2/item/2259?Itemid=674

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Ethiopian Electric Power Completes 2.1 Billion Birr Project

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Addis Ababa February 19, 2015 - Electric transmission lines and distribution stations built with an outlay of 2.1 billion birr are readied for operation, Ethiopian Electric Power (EEP) said.

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AORA Solar’s Ethiopia Pilot Project Takes Step Forward
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Members of the team pose in front of the Tulip. From Left to right: Yenehiwot Mesfin (AORA Project Services Consultant), Tafesse Asrat Abera (Adama Science and Technology University), Getahun Moges Kifle(Director General, Ethiopian Energy Authority), Zev Rosenzweig (President and CEO, AORA Solar), Miheret Debebe (Senior Adviser to the Ministry of Water, Irrigation and Energy), Gosaye Mengistie Abayneh (Ministry of Water, Irrigation and Energy), J. Barry Kulick (Senior Vice President – Africa, AORA Solar) Rob Sinclair (AORA Consultant, Nottawasaga Institute), Mintesnot Gizaw Terefe (Addis Ababa Science and Technology University).

http://www.solardaily.com/reports/AORA_Solars_Ethiopia_Pilot_Project_Takes_Step_Forward_999.html

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Government Financial Enterprises hit 6.28 billion Birr profit

 Addis Ababa: February 19, 2015  – Government Financial Enterprises Agency said that the four financial enterprises (the Commercial Bank, Development Band, the Construction and Business Bank and the Ethiopian Insurance Corporation) have earned 6.28 billion Birr profit during the last six months of 2007 E.C fiscal year, attaining 93.02 per cent of their six month plan.

Compared to last year’s same period, 11.74 per cent increment has been registered.

The Agency added that the three banks have generated over 3.09 billion USD contributing a lot for the foreign currency reserve of the country showing a 3.15 per cent increment.

During the stated period, the four financial enterprises have loaned 19.12 billion Birr to clients. The Commercial Bank of Ethiopia and Development Bank of Ethiopia have given 15.30 and 3.13 billion Birr loans respectively during the six months of the reported period.

In a press conference aimed at presenting the Agency’s six months performance report held at the Agency Head Office yesterday, Agency Director General Dr. Sintayehu Wolde-Michael said that the four financial institutions have registered 312.23 billion Birr total asset. Compared to last year’s similar period, the assets have shown 22.15 per cent increments.

Dr. Sintayehu said the enterprises capital including the reserve has increased to 18.32 billion Birr. It performed 88.7 per cent of its plan. Compared to last year’s similar period, it has shown 13.86 per cent increment.

The Director General further said that the Commercial Bank of Ethiopia has registered 5.44 billion Birr profit in the last six months of the 2007 EC. Compared to other banks, it accounts 84.35 per cent of three financial enterprises total asset. Its deposit has also reached 260.47 billion Birr. Currently the bank has opened 909 branches all over the country.

Dr. Sintayehu said that the Development Bank of Ethiopia has made 599.42 million Birr profit during over the last six month.

Construction and Business Bank has also earned 21.29 million Birr profit. It has accomplished 23.47 per cent of its plan. Presently, its branches have reached 116 in the country.

The Ethiopian Insurance Corporation has also collected 215.86 million Birr in the last six month of 2007 E.C, he said.

http://www.fanabc.com/english/index.php/news/item/2269-government-financial-enterprises-hit-6-28-billion-birr-profit

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Sudan keen to enhance cooperation with Ethiopia: President al-Bashir

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Addis Ababa, 19 February 2015  - President Omer Hassan al-Bashir of Sudan reiterated on Wednesday (February 18) that Sudan was keen to lift existing bilateral relations, and most importantly its economic ties with Ethiopia, to a higher level.

Speaking at the celebrations of the 40th anniversary of the Tigray People’s Liberation Front (TPLF) in Mekelle, capital of Tigray Regional State, President Omer al-Bashir said “Our keenness to participate in this anniversary, as in any other events in Ethiopia, is confirmation of the particular relationship between Ethiopia and Sudan.”

The President emphasized that Sudan was ready to enhance and diversify relations within the framework of the shared strategic vision of the two friendly countries.

He said the Sudan was ready to turn the shared borders of Ethiopia and Sudan into an epicenter for comprehensive economic integration.

Both countries are engaged in numerous joint projects aimed to provide cross-border links with roads and railways as well as creating a free zone area along the border to facilitate movement of people and commodities and boost trade.

The celebrations were attended by Ethiopia’s President Dr. Mulatu Teshome and Prime Minister Hailemariam Desalegn as well as President Paul Kagame of Rwanda and President Hassan Sheikh Mohamud of Somalia, Prime Minister Kamil Abdelkadir Mohamed of Djibouti, Prime Minister Ruhakana Rugunda of Uganda, and Dr. Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission.

Also present were representatives of the European Union, US, China and South Korea.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17756:sudan-keen-to-enhance-cooperation-with-ethiopia-president-al-bashir-&catid=71:editors-pick&Itemid=396

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PM Lays Cornerstone for Bangladeshi Factory to be Built with 200 Million USD

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Mekele February 19, 2015 – The government would give special attention to industrial parks that have been constructed in the country as they have immense contribution to industrial development, Prime Minister Hailemariam Desalegn said.

The PM laid a cornerstone today at Quiha, Tigray, for a garments and textile factory to be built with an outlay of 200 million USD by the Bangladeshi Dulal Brothers Company.

Industrial parks have been built in all states because they play huge role for the integrated effort of the government to transform the economy from agriculture-led to an industrial one, Hailemariam stated.

The premier appreciated Dulal Brothers Company for seizing the favorable investment environment in the country and pledged that federal and regional governments would provide all the necessary support for the company.

Dulal Brothers Managing Director, Abdul Jabbar, said on his part the company would contribute to Ethiopia’s agro-processing and manufacturing sector development.

Upon its completion after a year, the factory would create jobs for 5000 people, Jabbar added.

Dulal Brothers operates in 20 countries, it was learned.

http://www.ena.gov.et/en/index.php/economy/item/420-pm-lays-cornerstone-for-bangladeshi-factory-to-be-built-with-200-million-usd

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New Mobile Money Service Launched in Ethiopia

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VENTURES AFRICA – A threefold partnership between Lion International Bank, Somali Micro Finance and Ethiopia-based BelCash Technology Solution PLC has birthed the official pilot of the HelloCash mobile money services in Ethiopia.

The mobile money platform will provide financial services to all Ethiopians, enabling existing and potential customers of Lion International Bank and Somali Micro Finance to execute key financial transactions spanning deposits, withdrawals, money transfers and payments. The pilot deployment of the service is underway in three selected parts of the country with locations that contain a desired mix of agent outlets and branches.

A unique competitive advantage for the HelloCash mobile money services, which differentiates it from most other mobile money services, is its deliberate design that accommodates interoperability and shared infrastructure features. Indeed, the system is designed so that multiple banks and other Monetary Financial Institutions (MFI) can be interconnected and offer the mobile money service to their respective customers. This way, the partnering financial institutions are able to share each other’s agents and branch networks in order to serve each other’s customers in a cost effective manner.

This arrangements creates a win-win scenario for all stakeholders involved as customers of any partnering bank will be able to approach any agent or branch in order to conduct financial transactions regardless of which particular bank the customers belongs too, this translates into added convenience for the customer. Also, the sharing of agent networks allows partnering banks to optimize their investment as well as increase nation-wide service coverage.

With this unique configuration, the partnering financial institutions believe they will establish a formidable network of upwards of 20,000 agents across the length and breadth of Ethiopia within the next 3 years. The ripple effect will cascade all over the country and start a sure trend that will end in a higher financial inclusion index especially at the grassroots.

Mobile Money continues to spread across Africa as an alternative to traditional banking which is usually impeded by gaps in infrastructure and financial inclusion. The Harvard Business Review reports; “While U.S. consumers are just being introduced to Apple Pay, mobile money services like MPesa and MTN Money have been flourishing in African markets. More people have mobile money accounts than bank accounts in at least nine African countries, up from four in 2012. And the continent as a whole leads the world in the adoption of financial services on the mobile platform.”

http://www.ventures-africa.com/2015/02/new-mobile-money-service-launched-in-ethiopia/

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soleRebels Footwear’s BETHLEHEM ALEMU Launches Republic of Leather

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By Maria Nene

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February 18, 2015 –

soleRebels also dubbed as the Nike of Africa is the first African brand of shoes to be acknowledged internationally. This year the leather company launched the Republic of Leather luxury footwear line.

Although soleRebels shoes are widely acknowledged throughout Africa, they are mainly made and manufactured in Ethiopia. The unmistakable handicraft and passion of creative artisans from the African country is clearly spelt out in each pair of shoes. soleRebels is world renowned as it’s the first African footwear brand to be recognized by the World Fair Trade Federation (WFTO) as a Fair Trade certified footwear company.

soleRebels is the brain child of Bethlehem Tilahun Alemu who started the company in 2005. The fresh college graduate formed the company after realizing that her home country Ethiopia had many charity brands but none of their own.

The company not only provides fashionable footwear, it has also provided employment to several Ethiopians and educated the community as a whole. The quality leather that is used for the shoes is carefully selected in Ethiopia and crafted by this team. The brand employs the use of e-commerce to ensure that it spreads not only in its home country but also worldwide.

The Republic of Leather aims to deliver the best quality luxury leather shoes for both men and women which will be delivered to the consumer after only 21 days once you’ve ordered.

The proprietor of soleRebels and Republic of Leather, Bethlehem Tilahun Alemu has been able to employ over 600 creative Ethiopian artisans who make approximately 70,000 pairs of shoes daily. The brand has exported to over 45 countries. For her efforts Bethlehem has been recognized by many establishments which include The African Business Awards which named her Outstanding African Business Woman in 2011, last year the UN named her as a Goodwill Ambassador for Entrepreneurship, CNN also named her as a top 12 female entrepreneur in 2014, in 2013 The Guardian readers chose her as one of Africa’s Top Women Achievers among many others.

http://www.chicamod.com/solerebels-footwears-bethlehem-alemu-launches-republic-leather/

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First Modern Denim Factory in East Africa Begins Trial Production in Ethiopia

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 Addis Ababa: February 18, 2015 – The first denim factory in East Africa has begun trial production in Ethiopia.

Kanoria African Textiles Spinning Manager, Dina Karen, said the factory built in Bishoftu has started trial production.

The manager said the factory is the first of its kind in East Africa in terms of using modern technologies and producing fashionable jeans.

The factory fully owned by Indians is being built with over 43 million USD, the manager said, adding that the construction of the factory that began a year ago has started its trail production with 70 workers. It plans to increase the workers to 350 on going operational.

The favorable investment atmosphere in Ethiopia and the wide market have encouraged the owners to invest in the country, Karen stated, adding that expansion would be carried out next.

Senior Industrial Engineer and Representative of the Ethiopian Textile Development Institute that supporte the factory, Teklay Gebre-Egziabher said the factory will have huge contribution in boosting the foreign currency of the country and popularizing its national brand.

The factory has the capacity to produce 12 million meters of denim annually, he added.

Another factory that produces inputs for this one will be built soon around the capital city, and the produces will be mainly exported, according to Teklay.

There are more than 130 big and medium textile factories in Ethiopia.

http://www.fanabc.com/english/index.php/news/item/2257-first-modern-denim-factory-in-east-africa-begins-trial-production-in-Ethiopia

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Ethiopia sees horticulture boom

By Tinishu Solomon

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Ethiopia’s horticulture sector, according to the country’s recently released total export revenue, remains a top earning product for the East African country.

 

Ethiopia generated a total of $114 million from flower exports during the first six months of its fiscal year, says the Ethiopian Horticulture Development Agency (EHDA).

From the total revenue, $90 million was secured from the export of 289 million flower cuttings and over 20,000 tons of roses and summer flowers in the fiscal year, beginning July 2014.

EHDA also said close to 77,000 tons of vegetables, fruits and herbs were exported in the same period, generating $23 million.

The first half of the current budget year performance has registered a 7.2 per cent increase as compared to the same period last year.

Total revenue from horticulture exports in the 2013 and 2014 fiscal year was $106.15 million.

As in previous years, the Netherlands is the top export destination for Ethiopian flowers, accounting for 80 per cent of the country’s total flower exports.

Other markets include Germany, Norway, Saudi Arabia, Belgium, the United Arab Emirates (UAE), France, Italy, Japan and the US.

According to the agency, countries such as UAE, Somalia, Djibouti, Saudi Arabia and Yemen were the major importers of Ethiopian fruits and vegetables.

Flower plantations cover up to 13,000 hectares, while horticulture farming is on the rise.

This has created a significant export and earnings growth, the agency said.

The country, the fifth leading flower exporter in the world, earned over $245 million from horticultural exports in the last fiscal year ending July 7, 2014 – which exceeded revenue generated in the previous budget year by more than 6 per cent and earned $230.5 million.

http://www.theafricareport.com/East-Horn-Africa/ethiopia-sees-horticulture-boom.html

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Alecto to look for new partner in Ethiopia as Centamin withdraws

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By Philip Whiterow February 18 2015 –

Alecto added it was still confident of the prospectivity of the licences and would look for a new partner.

Alecto Minerals (LON:ALO) has been given notice by Centamin (LON:CEY) that it is pulling out of their joint venture in Ethiopia.

As a result, Centamin’s rights in the Wayu Boda and Aysid Metekel licences will revert to Alecto, which will now assume ongoing commitments at the two tenements.

Alecto added it was still confident of the prospectivity of the licences and would look for a new partner.

Results from Centamin’s 2014 drilling programme, which included 25 diamond drills holes at Wayu Boda, and the analysis of surface work carried out during the year will be handed to Alecto when complete.

Alecto’s flagship project is Kossanto in Mali, with the Ethiopian licences at a much earlier stage of exploration.

It is also owns the Kerboulé Project in northern Burkina Faso.

http://www.proactiveinvestors.co.uk/companies/news/77391/alecto-to-look-for-new-partner-in-ethiopia-as-centamin-withdraws-77391.html

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Ethiopian to launch Manila services

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 Addis Ababa: February 19, 2015  – Ethiopian Airlines plans to launch new services to Manila’s Ninoy Aquino International Airport in the coming months.

Ethiopian Airlines will open up new service to Manila at the end of June. It will fly a one-stop route via Bangkok, Thailand using Boeing 787-8s, and follows the airline’s other new Asian route from Addis Ababa to Tokyo in April.

Ethiopian plans 3X-weekly flights, on the back of a recently signed Philippines-Ethiopia ASA agreement.

The Philippines Civil Aeronautics Board (CAB) said the new routes are part of a drive to open new connections between the Philippines and the Middle East/Africa, and that the service will offer new transit options for Filipinos traveling to both regions.

“These flights offer opportunities for the enhancement of our air connectivity and the development of our aviation network, especially [in] the emerging markets and growth areas in Africa,” said Philippines Civil Aeronautics Board executive director Carmelo Arcilla.

http://www.fanabc.com/english/index.php/news/item/2263-ethiopian-to-launch-manila-services

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National target to improve crop production attainable

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Addis Ababa February 19, 2015 – The Ministry of Agriculture said the target set regarding improving crop production will be attained. The nation targets to harvest 267 million quintals yield this year.

Ethiopia has been working to improve crop production productivity thereby ensure food security, State Minister of Agriculture, Wondirad Mandefro told ENA.

Improving the agriculture sector, which contributes about 47 percent of the country’s GDP is among the priority agendas of the government in the first five-year growth and transformation plan period. The sector helps the country to register fast economic growth over the past decade.

Increasing knowledge of small holder farmers about modern agricultural technologies and provision of professional supervision by extension workers have been carrying out during the past four years to improve production and productivity, he added.

Producing and disseminating modern agricultural technologies, improve utilization by farmers of inputs such as select seed and fertilizers as well as row cultivation are among the activities the government has been engaged.

Because of these efforts production of major food crops has been growing every year. Production of major food crops increased between 2010/11 and 2013/14 by over 48 million quintals.

Since this is the last year for the five-year growth and transformation plan period, the nation is expected to achieve the target set regarding production of major food crops, harvesting 267 million quintals yield.

Pre-harvest assessments indicate that the nation could harvest more than the target, 268 million quintals output, a one million quintals surplus, if it is successful.

Utilization of modern technologies has also helped to increase amount of major food crops harvested per hectare. Farmers are now harvesting 21 quintals output per hectare from 17 quintals in 2010.

Increasing utilization of improved technologies such as fertilizers, select seed, farming tools and water combined with the effort of agricultural extension workers helped to attain the target, he said.

Some years ago, there was a resistance from farmers to try new technologies, but because of concerted activities most of the farmers are desperate to utilize modern agricultural technologies, he said.

Utilization of improved seed and fertilizers as well as row cultivation were among the activities which were not accepted by the farmers.

Grouping farmers in teams consisting five members enables agriculture extension workers supervise the farmers on utilization of technologies, he said.

These groups and supervision of extension workers helped to change attitude of farmers regarding agricultural technologies, Wendirad said.

He expressed believe that productivity will be further improved in the years ahead, since the efforts being exerted towards it will continue strengthened.

http://www.ena.gov.et/en/index.php/economy/item/419-national-target-to-improve-crop-production-attainable

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The arrival of the meher harvest improves food security in Ethiopia

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 Addis Ababa: February 17, 2015 – The 2014 meher harvest (October – December) improved the food security and nutrition situation in most parts of the country.

In SNNPR, admissions of severely malnourished children (SAM) to Therapeutic Feeding Programs (TFP) decreased by 12.6 per cent from 4,091 admissions in November to 3,660 admissions in December (over 93 per cent reporting in both months). TFP admissions in SNNPR have been gradually declining since October 2014. The December 2014 admissions were 25 per cent lower than the admissions during the same time in 2013, and were the lowest when compared to admission rates in the past four years.

Similarly, the admission rates of SAM cases to TFP sites decreased by 28.3 per cent in Oromia, from 13,386 admissions in November to 9,601 admissions in December 2014 (over 87 per cent reporting in both months). However, the December 2014 caseload was 28.5 per cent higher compared to the same time the previous year and the highest compared to the admissions in the past four years.

However in Amhara, TFP admissions in December were 9.7 higher than November admissions, but 15.3 per cent lower when compared to the same time in 2013. The nutritional situation is particularly concerning in woredas that received poor kiremt rains in North Gonder and Waghimra zones. As per the request of the Amhara regional early warning bureau, DRMFSS’ Emergency Nutrition Coordination Unit’s (ENCU) is mobilizing partners to strengthen emergency nutrition responses in both zones, and the situation is being closely monitored. The December number of people admitted to TFP sites was inconclusive in Afar, Somali and Tigray regions due to low reporting rates.

The Regional Emergency Nutrition Coordination Units (RENCU) and nutrition partners finalized 21 bi-annual nutrition surveys in Afar, Amhara, Oromia, SNNP, Somali and Tigray regions. ENCU conducted quality assurance and cleared 18 of the 21 surveys. The GAM prevalence ranged from 4.9 in Halaba special woreda of SNNPR to 11.7 in Sekota Zuria woreda of Amhara region. The SAM prevalence was below 1 per cent in 15 of the 18 surveyed areas. The crude and under-5 mortality rates were below the national and sphere standard emergency thresholds.

http://www.fanabc.com/english/index.php/news/item/2250-the-arrival-of-the-meher-harvest-improves-food-security-in-Ethiopia

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Government Drafts a Directive for Salt Production, Trade

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Directive likely to be stiffly resisted by traditional land holders in Afar

The Ministries of Trade, Mines, Industry and Health are jointly drafting a directive for the production and trading of salt, partly spurred by a salt shortage the country had faced – in 2010.

The draft was initiated by three major reasons according to Ali Siraj, state minister for the Ministry of Trade (MoT). The first one is the shortage that the country faced by the sudden disappearance of salt in the market in 2010.

“This kind of incident should not repeat itself in the future,” Ali stated.

The second reason, he said, was that salt was used by every household every day. Thirdly, excess production and shortage had to be managed by effectively using the resources that the country has.

“The directive defines both the price and market chain of the salt produced in the country depending on the production cost and the transportation cost,” Ali told Fortune.

The country consumes 300,000ql of table salt and 30,000ql to 40,000ql for industrial consumption per month especially for the leather industry.

The country also spends up to 10 million dollars a year for the importation of chemicals, such as chlorine, which could have been extracted from the salt extracted domestically, but which is not happening because of poor technology, Ali says.

It was in 2003 that the country adopted a proclamation that made iodization of salt mandatory for table salts through proclamation number 204/2003. Since then, all salt sold in the country’s market is iodized.

The draft will be further discussed by a committee organized from Ministry of Mines, Ministry of Health, Ministry of Water, Irrigation and Energy and the Ministry of Industry according to Amakel Yimam, Public relations and communication affairs office head at MoT.

According to the Ministry of Mines website, prior to the independence of Eritrea, about 200,000tns of salt was obtained from the Red Sea for human consumption.

The directive will maintain the prices that have been set in 2012 by the Ministry of Trade. Accordingly, the price at the production site 160 Br, and then sold to wholesalers for 200Br to 300 Br.

“The price does not require to be adjusted frequently as the product does not have direct relationship to the international market unless there is an increase in the price of fuel, which is used in the extraction process for water pumps and generators,” Ali said.

But the salt trading in the country is said to be problematic starting from acquiring land for the production to the delivery of the salt to the local markets. The majority of the Ethiopian salt comes from Afar region, where two of the production sites are located- Dobi and Afdera. The other place is Somalia where only an insignificant amount is extracted.

The Ministry has made a study in the previous year and decided to prepare the directive in order to have solutions for those problems observed. But an anonymous official in the Ministry does not have hope in the effectiveness of the directive.

“The directive is being prepared only for formality; it will never see the light of day as the administration in Afar are warning the government to pull its hands off the salt trading system,” he said.

A salt trader at Afdera says that production is much higher than the demand, but it could not be exported because it is not feasible.

http://addisfortune.net/articles/government-drafts-a-directive-for-salt-production-trade/

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EU increases assistance to Ethiopia to 1 billion Euros

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 Addis Ababa February 23, 2015 – Considering proper utilization of funds extended to support projects by the Ethiopian government, the European Union has decided to increase amount of financial assistance.

The EU has decided to increase the yearly 200 million Euros support to one billion Euros for the coming five years starting from this year, considering the proper utilization of assistance, Head of EU Delegation to Ethiopia, Chantal Hebberecht told ENA.

According to her, the EU has been monitoring the utilization of funds allocated for specific projects by Ethiopia and it confirmed that the funds have been spent for the intended purposes.

EU has confirmed that the support allocated for projects in natural conservation, agriculture, education and health has been spent properly, she added.

In addition to the proper utilization of funds, the nation’s effort to alleviate poverty is also another reason for EU to increase its support to Ethiopia.

She noted that Ethiopia has been undertaking successful activities regarding poverty alleviation, reducing child and maternal deaths, realize universal access to primary education, and control malaria, HIV/AIDS and other sexually transmitted diseases.

Allocating 70 percent of its budget to education, infrastructure, health institutions and poverty alleviation projects, helped Ethiopia achieve the MDGs, he added.

Germany, France, UK and Italy are among the leading countries in extending development assistance to Ethiopia.

EU, among the biggest development partners of Ethiopia, is also the destination for 30 percent of Ethiopia’s coffee, leather, horticultural and floricultural exports.

UK, Sweden, Germany and Netherlands are among the leading foreign direct investment sources for the country, with more than 300 projects with a combined capital of 60 billon USD.

Twenty of the total 28 members of the EU have embassies in Addis Ababa, the capital of Ethiopia.

http://www.ena.gov.et/en/index.php/politics/item/434-eu-increases-assistance-to-ethiopia-to-1-bln-euros

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Canadian companies discuss business with Ethiopian counterparts

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 Addis Ababa February 23, 2015 –

A delegation of Canadian businesspersons led by Senator Don Meredith is discussing with Ethiopian businesspersons about business and investment opportunities and possible partnership.

Canadian companies operating in ICT, real estate, hospitality and tourism, finance and mining are attending the forum.

The Ethio- Canada business forum being held here is part of the ongoing efforts to promote business and investment opportunities in Ethiopia to Canadian companies, said Birtukan Ayano, Ethiopian Ambassador to Canada.

It is expected that the visit will give the companies the opportunity to understand the business and investment opportunities in Ethiopia.

Birtukan said Canada is among the strategic partners of Ethiopia saying “Ethiopia counts Canada as one of its key development partners, a partnership which has resulted in highly successfully poverty alleviation programs.”

Senator Meredit said that they understand that there is a conducive atmosphere for Canadian investors to open businesses in Ethiopia in various areas.

He added that labor, peace and stability, which are important for investment, are attracting Canadian companies towards Ethiopia.

“We looking to invest in ICT, Agriculture, energy, house and infrastructure as well as financing sectors here in Ethiopia,” he said.

Canadian Ambassador to Ethiopia, David Usher for his part said that the Embassy has been bringing a group of business persons in the past years to promote business opportunities here in Ethiopia.

“We brought groups of Canadian companies to look and do business in Ethiopia,” the Ambassador said.

Gathering businesspersons of the two countries has importance in creating opportunity for both sides and events such as this one are critical in this regard, he added.

According to Taye Atskeselassie, American Affairs Director at the Ministry of Foreign Affairs, the relationship between the two countries is growing.

There is a smooth relationship between the two and Canadian support to Ethiopia has been consistent, the Director added.

http://www.ena.gov.et/en/index.php/politics/item/433-canadian-companies-discuss-business-with-ethiopian-counterparts

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Ethiopia steams ahead with vision for a modern national rail network

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Addis Ababa, 23 February 2015  –

Ethiopia is in the race to become the first sub-Saharan country after South Africa to lay down an electrified rail network that will link 49 towns and cities.

It has already completed one of sub-Saharan Africa’s first light rail mass transit systems, in the capital, Addis Ababa.

The country-wide scheme is part of a grand experiment in nation building through infrastructure that was launched by the regime of the late Meles Zenawi and is being continued by his Ethiopian People’s Revolutionary Democratic Front party under the leadership of the Prime Minister, Hailemariam Desalegn.

The blueprint for Ethiopia’s modernization is contained in its five-year Growth and Development Plan. The two main elements are an increase in agricultural output to earn export revenue and to prevent a recurrence of the famines of the 1980s, and the construction of modern power and transport systems.

The goals of the infrastructure programme are to increase generating capacity fourfold to 10GW, to construct 16,000km of paved roads and to lay 2,500km of standard gauge electrified rail track – a target that was later increased to about 5,000km.

There is a good deal of interdependence among these aims: for instance, the plan to build an electrified network depends on schemes such as the Grand Ethiopian Renaissance Dam to supply the necessary power.
In 2010, when the present five-year plan was launched, the stated aim was to increase freight capacity by at least five million tons. The cost of constructing the network was put at about $2.5bn over seven years. Both of the productivity and the cost have since risen dramatically.

Growing ambition

For nearly a century Ethiopia has had only one railway: a 1,000mm narrow-gauge link between Addis Ababa and the port of Djibouti that was constructed by the French in the 1920s. Ethiopia is a landlocked country, so this link is the principal route by which goods come and go. However, that line relies on diesel locomotives and partly owing to its poor load bearing capacity it transports only 240,000 tons of freight a year.

In the first decade of the 20th century, the principal aim of the Ethiopian government was simply to rehabilitate this line. Although aid was forthcoming from the European Union, and operators from as far afield as Turkey, South Africa, Italy and Kuwait were hired to build the upgraded line, there was never enough money or enough commitment to make a difference.

The catalyst that allowed the expansion in vision from the upgrading of a single line to the construction of a modern national network was, inevitably, the intervention of Chinese contractors backed by Chinese money.
Back in 2010, when the plan for a national system was laid, the Ethiopian government looked for a foreign company to supply the engineering expertise to build it, holding talks with companies from India, Russia and China.
In the end, only the Chinese persisted, and the initial contract for the Addis Ababa light rail system and a new standard gauge link to Djibouti went to the China Railway Engineering Corporation (CREC), backed with capital from the Export and Import Bank of China. The work was later shared with China Civil Engineering Construction Corporation.

The two projects combined are expected to cost close to $2.8 billion, a sum that will be covered by the Ethiopian government and a loan from the Export-Import Bank of China.

The 780km standard gauge electrified link to Djibouti is now due to be completed in October this year. When it is, the line is expected to haul 11.2 million tons of freight in its first year of operation, rising to 24.9 million tonnes by 2025 – considerably more than the entire national capacity envisaged in 2010.

The Ethiopian government is presently bringing other sections of the network to market. For example, the Turkish contractor Yapi Merkezi was awarded a $1.7bn contract to build the section from the town of Awash to the northern city of Weldiya, with a total length of 389km.

If the country does succeed in becoming a middle income economy with a unified national market, it will be a powerful example to other countries in the region of what infrastructure-led development can achieve.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17841:ethiopia-steams-ahead-with-vision-for-a-modern-national-rail-network&catid=71:editors-pick&Itemid=396

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Agriculture Investment in Africa: Top Countries to Focus On

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VENTURES AFRICA –

Africa’s agriculture sector struggles to access financing and attract investment. Microfinance organizations remain active in the space. But private equity firms and banks are still slowly coming around to the potential of the agriculture space.

Fears over sustainability, education and policy justifiably remain: (1) many African countries do not have an extensive track record of sustained success in the agriculture space; (2) a significant amount of workers in the agricultural space do not have more than primary level education; and (3) policy is ever changing as leadership changes through elections. But there is great hope is the changing landscape for African agriculture, as highlighted by a few of Africa’s rapidly emerging economies with great agriculture opportunity.

Cote D’Ivoire

It is easy to forget that Cote d’Ivoire was embroiled in a civil war less than five years ago. And that sentiment is the best thing about this emerging market. It is a sign of changing perceptions about the country and the growing tailwinds pushing it forward.

The International Monetary Fund estimates that the West African nation’s economy will grow 8% in 2015 after expanding approximately 8.7 percent in 2014. The 2015 projection is lower than the previously stated estimate of 10% from the Ministry of Economics and Finance as investors are already beginning to show tentativeness with investment due to an upcoming election. The fears may be based in some relevant history. But the investment outlook is very positive for the country, especially in the agriculture space.

The unexpected drop in commodity prices and subsequent production is reflected in the results from the oil and mining sectors and their depressed effects on the larger economy. Yet growth expectations in 2014 were achieved through successful investments in infrastructure and very favourable returns in the agriculture space.

Continued growth should be expected in agricultural. A euphemistically described “food basket”, the country is the largest producer of cocoa still with high upside. A few companies are beginning to test the chocolate space with an interest in bringing value back onshore. But the process of making a local chocolate company that can compete globally depends on foreign investment (that is not there yet). Other agricultural products, including coffee, palm oil and cashew nuts, should continue to play a major a role in buoying the agricultural space. Price exposure is an issue but the country’s constantly improving infrastructure base, particularly in transport, and consistently high farming efficiency ensure that small price movements will not burden the country.

Ethiopia

Ethiopia is an agricultural hub in its own nature in East Africa. Its GDP growth in 2014 was approximately 10.6% and is expected to rise to nearly 11 percent in 2015. Research suggests that agriculture will growth approximately 7% in 2015 and possibly as high as 9 percent in 2016.

The country is a top-coffee exporter. A lot of the value however is lost the minute the country exports the raw beans. A bump in local production and packaging by emerging local brands still has great upside potential, especially with brands, including Starbucks and Dean & DeLuca, lurking around the country for the next big brand.

The country is also a major producer of oilseeds, grains and spices, which now account for nearly $750 – 800 million in export revenue. Again the lack of local processing and packaging ensure that the food products exit the country as cheap raw products and enter local western markets as more valuable processed goods after being processed in a local environment or in another western country.

The Agricultural Transformation Agency (ATA), led by former Wall Street banker Khalid Bomba, continues to highlight annual productivity gains as high as 6.5 percent, similar to the message from Ethiopian officials.  The number is more like 3 percent in the past year. Regardless of the exact number, the country is making great leaps for a population that requires a greater rate of production to feed itself let alone take a greater share of the larger global food market.

Tanzania

Tanzania, similar to Ethiopia, is a country whose local population could use a boost in agricultural production. According to the United Nations Food & Agriculture Organization (FAO), low and middle-income Tanzanians still consume more than 65 percent of their calories from street food. This statistic is an improvement over the last two year but still a disturbing reality of the local market.

Tanzania is the ideal locale in Africa to capture a greater share of the global food market. Refusing to give similar large scale land concessions to foreign investors, such as Saudi Arabia, as has been seen in Ethiopia, the country has strategically supported local farmers and seen strong growth in the commercial farming space. All that said, the country struggles to achieve the annual productivity gains that other countries are seeing with large scale and government-backed training schemes.

Coffee, tea, and oilseeds possess the greatest upside as the story of bringing the value chain onshore remains consistent across all countries on this list. Tanzania however may be better positioned to grow its processing and packaging space as several companies already perform a significant amount of such services internally as well as for other local companies.

Honorable Mention (2)

Malawi

Malawi is conundrum for agriculture investors. The country is a very attractive agriculture investment opportunity such that it should be a top three agriculture opportunity. The agriculture sector is expected to grow nearly 6% in 2015 and 2016. It possesses an enabling environment that shows strong production results and is strategically located to access multiple markets, including Mozambique and Zambia. But the politics of the country has not been favorable to business. The currency struggles to find a baseline as investors remain unsure about the country’s leaders to maintain a consistent economic policy over an extended period. The Green Belt Initiative and the National Export Strategy both drafted in 2012 provide a framework for a succession of Malawian leaders to follow. Confronting corruption allegations is also key if the country is to maintain IMF support.

Cameroon

Cameroon is strategically situated among countries that could use its exports: Chad, Central African Republic, Gabon, and Nigeria. Agriculture accounts for more than half of the country’s non-oil export revenues and is expected to grow approximately 4 percent in 2015 and 2016. The number could be drastically higher but productivity gains are still hard to come by. Increased investment in training and a push for improving the business environment for commercial farming is a start but the current efforts are only a start.

http://www.ventures-africa.com/2015/02/agriculture-investment-in-africa-top-countries-to-focus-on/

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Keangnam wins Mojo-Hawassa Expressway bid

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The Ethiopian Roads Authority (ERA) awards the first lot of the Mojo-Hawassa Express way project for the South Korean construction firm, Keangnam Enterprises Limited, Capital has learnt from the Ministry of Transport.

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Minister of Transport Workneh Gebeyehu said the Korean company has won the bid for the first lot of the entire 209 kilometers road.

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The project that will be financed with a loan secured from the South Korean government and a state funding is expected to commence in the current fiscal year. However, Keangnam Enterprises and ERA did not sign the official contract so far.

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The project that will be constructed in different phases will connect the Southern Nations, Nationalities and Peoples Regional State (SNNP) capital of Hawassa to the central part of the country with a comfortable toll road.

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ERA has repeatedly expressed disappointment at the weak performance of the Korean construction firm, Keangnam in the past several years for delaying projects it took from the authority. Samson Wondemu, Public Relations Head of ERA, told Capital that Keangnam will handle the project phase that stretches from Meki to Batu (formerly known as Zeway).

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The African Development Bank (AfDB) has approved a USD 126 million credit for the first phase of 56kms Mojo-Meki road section, which is segment one of the entire project. The local government will contribute USD 99.10 million to fund costs, local taxes, resettlement compensation and other expenses. AfDB also provided a USD 2.44 million to help the Ethiopian Roads Authority (ERA) build its capacity.

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According to Samson, a toll road project stretching from Mojo to Meki is on bid.
The 209 kms Mojo-Hawassa Highway project will be implemented in two phases. In phase I, construction of a 93kms new asphalt road will be carried out between the towns of Mojo and Zeway.

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Keangnam Enterprises has been engaged in several road projects in Ethiopia in the past 16 years. The company has constructed the Mojo-Awash Arba, Ambo-Gedo, Azezo-Metemma, Hirna- Kulubi, and Alaba-Humbo projects, while the Jimma-Bonga-Mizan road project is being constructed at the moment. The Chinese government and the World Bank have promised to finance the remaining 116km toll road from Batu to Hawassa, which is the second phase of the Mojo- Hawassa toll road project.

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The Batu-Hawassa project is also divided into two contracts- Zeway-Arisi Negele and Arisi Negele-Hawassa.
This road forms a fragment of the cross country Mombasa-Nairobi-Addis Ababa highway project. The Mombasa-Nairobi-Addis Ababa road facility is expected to boost local agri-business and regional trade among nations it passes through.
The existing Mojo-Hawassa road, which is dilapidated, forms the road link in the route from Cape Town to Cairo.
Workeneh said the government is in the process of implementing the Adama-Awash toll road, which is a continuation of Addis-Adama toll road in the Addis-Djibouti corridor.

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The Addis-Adama toll road, the first express way for the country, commenced operation in September of last year.  Workneh said that the Adama-Awash project shall be commenced in the coming budget year.  He said the government is approaching financers for the realization of the project.
The Ministry of Transport is also exploring for possibilities to include the Addis-Adama toll way and the Lebu-Akaki-IT Park (Goro) outer ring roads in the toll roads system. The Akaki-IT Park road project, that will connect the express way with the Northern and North eastern parts of the city, will cover 14.5kms, while the 13.6km Akaki-Lebu project will connect the Addis-Adama toll road with the Western and South-western parts of Addis.

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The Addis Ababa – Adama road corridor was constructed with 11.2 billion birr with a loan secured from China’s EXIM Bank. Currently, over 9,000 vehicles use this road every day on average making a daily average earning of 350,000 birr.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4959:keangnam-wins-mojo-hawassa-expressway-bid&catid=35:capital&Itemid=27

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Nation’s Annual Fertilizer Consumption Reaches 1.2 Million Tons

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Addis Ababa  – Ethiopia’s annual fertilizer consumption has reached 1.2 million tons.

http://www.ena.gov.et/en/index.php/economy/item/427-nation-s-annual-fertilizer-consumption-reaches-1-2-million-tons

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Ethiopian agriculture minister opens Argus FMB Africa Fertilizer Conference

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Addis Ababa - Ethiopia’s agriculture state minister, Mitiku Kassa, has opened the sixth Argus FMB Africa Fertilizer conference in Addis Ababa, Ethiopia, on 18 February.

Boosting agricultural productivity is a key priority of the Ethiopian government and the country is now the second biggest grain producer in sub- Saharan Africa, having doubled output since the early 2000s. Ethiopia is an important consumption centre of fertilizer in its own right.

The Argus FMB Africa Fertilizer conference is the largest fertilizer event in Africa, attracting over 400 delegates from across the fertilizer supply chain in Africa and internationally. Representatives from over 50 different countries attend the conference, which focuses on the steps needed to boost production and consumption of fertilizer in Africa, against a backdrop of wider efforts to increase crop yields throughout the continent. As the second biggest grain producer in Africa, Ethiopia is an important market for fertilizer and has also become a hub for distribution throughout east Africa.

Conference delegates have visited the new bulking blend facility on Tuesday, 17 February, which has been organized by the ATA, Agricultural Growth Program-Agribusiness and Market Development, and Yargus Manufacturing.

The state minister has been joined on the speaker panel by ATA chief executive Khalid Bomba and State minister and ministerial adviser on agriculture professor Tekalign Mamo, who outlined initiatives to boost the fertilization of soils in Ethiopia and to increase agricultural productivity. Other keynote speakers at the event include Argus chief operating officer Neil Bradford, and the Executive Vice President of OCP Group of Morocco.

Argus FMB is a leading provider of price assessments, market outlooks, consultancy and conferences for the global fertilizer industry. Argus FMB conferences have provided opportunities to address issues of policy and regulation and uncover emerging trends for the last 30 years. They also provide a platform to meet and do business with leading global producers, traders and distributors.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17774:ethiopian-agriculture-minister-opens-argus-fmb-africa-fertilizer-conference&catid=52:national-news&Itemid=291

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Tapping spice resources for export market vital: Ministry

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Addis Ababa, 23 February 2015 -

The Ministry of Industry said exploiting the untapped spices resources for export market is essential for earning foreign currency which supports other economic sectors.

At the opening ceremony of the workshop which reveals the strategic development study on spices industry prepared by the Ministry of Industry in collaboration with the Addis Ababa Science and Technology University, Industry State Minister Dr. Mebrahtu Melese said that though Ethiopia has various agro ecological zones which could grow more than 100 species of spices, the utilization of the sub sector is negligible. As a result, the nation has not been able to benefit from the sector as it deserves.

According to Mebrahtu, traditional production system, lack of value chain and market integration, among others, are various constraints to tap the resources. As to him, the strategic study revealed at the workshop could be a vital input to tackle the inherent problems of the sector.

He further said that the government has already employed multidimensional approach to modernize the sub sector gradually and to that end capacity building to the actors in the sector, provision of technology and credit facilities have been provided.

In addition, investors involved in the production, processing and marketing have been provided support to become competent in their endeavors and some of them have been able to take part in experience sharing journey abroad.

Spice Sub Sector Industry Strategy Plan Preparation Team Leader Dr. Atsede Asefa on her part said that the Ethiopian spice industry is hindered constraints faced in the process of production, processing, lack of post harvest handling technologies and value chain.

To combat these problems and make the country competitive at the international market all the stakeholders in the sub sector industry, growers, handlers, brokers, processors and exporters need to participate in promoting the proper practices at each stage of the value chain and thrive for satisfying local and international customer requirements in a coordinated approach to tap the market at optimal level.

According to a recent report, in the country 73.3 million hectares of land is suitable for agriculture out of which 3.7 million hectares of land already enclosed for local and foreign investors for the production of spices with better technology and the necessary inputs, she added.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17833:tapping-spice-resources-for-export-market-vital-ministry&catid=52:national-news&Itemid=291

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South Boulder Mines looks to publish Colluli Potash PFS in first quarter

Monday, February 23, 2015

South Boulder Mines’ has confidence in potential of Colluli Potash

South Boulder Mines (ASX:STB) has significant project milestones ahead for its Colluli Potash Project in Eritrea with completion of all pre-feasibility study work streams and publication of the PFS economics in the first quarter.

The company also expects to complete a high quality definitive/bankable feasibility study (“DFS”) in third quarter.

Adding to the interest, the DFS work has already presented attractive optimisation opportunities that will enhance the final feasibility case.

“After the key PFS information is published, we intend to make progress on a number of key commercial and corporate fronts that will support the development of Colluli and clearly demonstrate a significant level of major investor, infrastructure developer and end user interest in Colluli,” chairman Seamus Cornelius said.

He added the company will seek shareholder approval at an AGM before 31st May 2015 to change its name to better reflect its activities as an emerging producer of premium potash and agricultural chemicals from the Colluli resource.

Cornelius noted that Colluli will compare favourably with any of the more common emerging muriate of potash projects from any perspective including capital expenditure, operating costs and mine life.

The project has a unique composition of potassium bearing salts in solid form, suitable for the production of both potassium sulphate (SOP) and potash of magnesia (SOPM).

These are premium potassium fertilisers with limited primary production globally due to resource scarcity.

Moreover, the considerable size, shallow depth and consistency of the deposit make Colluli highly amenable to economically viable open cut mining. It is also in close proximity to the Red Sea coast, allowing easy access to end markets.

Recent Activity

Earlier this month, South Boulder completed metallurgical testwork for the project, which eliminated the need for fine grinding from the process plant circuit.

It also identified a number of internal plant configurations and the company kicked off optimisation work to further enhance DFS process design and internal plant configuration.

Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.

Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.

Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.

A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.

The company previously noted the PFS is on track for completion in February.

In addition, AMC Consultants is working on a final resource report.

Colluli Potash Project

Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.

It contains over 1 billion tonnes of potassium bearing salts suitable for the production of potash fertiliser in the Danakil depression, an emerging potash province where over 4 billion tonnes of measured and indicated potassium bearing salts have been identified.

The company continues to work with the equal partner Eritrean National Mining Company (ENAMCO) to develop the Colluli Potash Project.

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Cashed up

South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million in January through the placement of 10 million shares at a 6% premium to market.

Milestones ahead

– Completion of all PFS work streams;
– Publication of the PFS economics in Q1; and
– Completion of a high quality DFS in Q3.

http://www.proactiveinvestors.com.au/companies/news/60846/south-boulder-mines-looks-to-publish-colluli-potash-pfs-in-first-quarter-60846.html

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Dead Sea Works employees call strike

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The workers committee is demanding cancellation of all layoffs at Israel Chemicals and the resumption of talks.

Workers at Israel Chemicals (TASE: ICL: NYSE: unit Dead Sea Works have decided to begin an all-out strike after management did not respond to demands by the Histadrut (General Federation of Labor in Israel) and workers committee to remove the threat of layoffs for hundreds of employees. The strike is also in solidarity with 140 planned layoffs at sister Israel Chemical company Bromine Compounds. Strikes have also begun at Bromine Compounds and the power station in Sedom protesting the hundreds of planned layoffs at Israel Chemicals.

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Dead Sea Works workers committee chairman Armand Lankri said, “We are prepared to fight at any price for against the management’s demands. It is due to the hard work and dedication of its employees that Israel Chemicals has succeeded and is profitable, and management’s intention of harming employees and firing them is absurd, aggressive, and above all unnecessary. I call on management to cancel the layoffs and begin talking with us.”

Israel Chemical Israel general manager Avner Maimon said, “Striking the bromine factory in Sedom is an extreme step that sacrifices the 400 employees of Dead Sea Magnesium on the altar of this extremist and violent struggle of the Bromine Compounds workers assisted by chairman of the Dead Sea Works workers committee Armand Lankri. Closing the bromine factory may lead to irreversible damage within 72 hours that will result in closure of the Dead Sea Magnesium plant and to safety and ecological dangers. Thus Dead Sea Works management has urgently turned to the Labor Court to prevent the grave risk of this dangerous step by the chairman of the workers committee of the Dead Sea Works.”

http://www.globes.co.il/en/article-dead-sea-works-employees-call-strike-1001011600

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Ethiopia to Showcase Success on Addis Int’l Conference on Financing for Development: MoFED

 Addis Ababa: February 21, 2015 – Ethiopia will showcase its success to the world on its experience in financing its rapid and sustainable growth, industrial drive and infrastructural development at the 3rd International Conference on Financing for Development, according to MoFED State Minister.

http://www.fanabc.com/english/index.php/news/item/2279-ethiopia-to-showcase-success-on-addis-int-l-conference-on-financing-for-development-mofed

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8th All-African Leather Fair 2015 opens

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Addis Ababa, 21 February 2015 - The Ethiopian Leather Industries Association (ELIA) launched the 8th edition of The All-African Leather Fair yesterday here at the Millennium Hall.

On his opening address, State Minister of Industry Tadesse Haile said that the government has identified the leather industry to be one of the priority sectors due to its potential in employment generation, to generate export earnings, and its strong linkage to the agriculture and other economic sectors.

The country is endowed with unexploited resources and is strategically using its geographical location near to the European and Middle East market offering the best option for businesses, he added.

Tadesse also said that among the stakeholders, local and foreign leather industries are key players in transferring technologies, in creating job opportunities, in exporting competitive leather products and in earning a considerable amount of foreign currency for the country.

He said adding that investment is also a key element for rapid economic growth and creation of a strong and competitive industrial base.

According to Tadesse, Ethiopia is among the top ten countries in the size of livestock population in the world. Livestock is an important source of raw material for the development of the leather industry which has been accorded high priority in our export sector.

Ethiopia ranks second in Africa next to Nigeria. The country has a major economic comparative advantage in terms of availability of low cost electric power, cheap labor and access to major duty free markets.

President of the Association, Yigzaw Assefa said on his part that nearly 200 exhibitors are participating at the 8th All African Leather Fair, of which 49 are overseas. Including 1,500 foreign participants, more than 10,000 visitors are expected in this three-day trade fair. A comprehensive range of products relating to leather industry such as finished leather, footwear, leather garments, leather goods like gloves, wallets, bags, components and accessories to the leather industry will be exhibited.

European Union Delegation Head to Ethiopia Ambassador Chantal Hebberecht said that the leather and leather products industry shows great potential based on the impressive livestock resources at Ethiopia’s disposal. The livestock resource made up of more than 100 million cattle, sheep and goats, represents a potential of some 20 million hides and skins renowned for their quality at international level.

Ambassador Chantal also said that export earnings from leather and leather products almost doubled within a decade and are expected to continue to grow. Among the first Ethiopian export items, the leather sector is the only one exploring semi-processed and manufactured goods and it has expanded on average by 14 per cent over the past 5 years creating jobs for millions of Ethiopians.

Among foreign participants there were Kenya Leather Development Council, and Cihan Import & Export, while on the side of local participants, Anbessa Shoe Share Company, Sheba Leather Industry P.L.C. and Mahlet Lathers.

These participants remarked on their part that the trade fair would help them get substantial knowledge and information by sharing experiences and best practices with national and international industries, visitors as well as other stakeholders helping them benefit from the worldwide network of the leather market.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17807:8th-all-african-leather-fair-2015-opens&catid=52:national-news&Itemid=291

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COMESA says countries should learn from Ethiopia’s leather industry

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 Addis Ababa Feb 21, 2015 – The common market for Eastern and Southern Africa (COMESA) lauded Ethiopia for giving due attention to the leather industry.

http://www.ena.gov.et/en/index.php/economy/item/430-comesa-says-countries-should-learn-from-ethiopia-s-leather-industry

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Ethio-German Relation Strengthened by People-to-People Ties, Ambassador Joachim

 Addis Ababa: February 21, 2015  – The Ethio-Germany relationship is being consolidated by people-to-people ties beyond the diplomatic relations, according to Germany’s Ambassador to Ethiopia.

Monday, February 23, 2015  – edited by cambodine

In a few months’ time, the African Development Bank (“AfDB”) Board of Governors will vote to decide the successor to President Donald Kaberuka whose presidency comes to an end on August 31, 2015.  Having first gained international prominence for undertaking sweeping economic reforms as finance minister in a post-genocide Rwanda, Kaberuka has had a highly successful ten years of service as AfDB president.  Under his leadership, the AfDB made major improvements in delivery of critically needed infrastructure and technical advice, both of which contributed substantially to the sustained economic growth that Africa has seen during that time.

Today, the AfDB is increasing its impact by using new models of financing projects through investments in infrastructure funds and partial risk guarantees.  Both help to attract private capital, which is absolutely critical to fill the infrastructure gap in Africa.  It is a model that both Power Africa and Trade Africa have adopted.  Indeed, when the Obama Administration was in the early stages of conceptualizing these initiatives, it reached out to Kaberuka for his ideas and support.  Kaberuka quickly embraced the initiatives and mobilized a senior team of experts to work with the U.S. government, creating an effective partnership that lasts today.

Set out below are the eight individuals who are looking to follow in Kaberuka’s sizeable footsteps.  The ideal next AfDB president will be a global visionary, an inspirational leader, and an outstanding manager of a large, multinational bureaucracy of some 1,500 employees involved in billions of dollars in projects across the continent.  The next AfDB president is taking the helm at an especially critical time in the Bank’s history as s/he will be spearheading ongoing implementation of the AfDB’s Strategy for 2013-2022.  With a special emphasis on fragile states, agriculture and food security, and gender, the Strategy aims to achieve sustainable and inclusive growth through infrastructure development; regional economic integration; private sector development; governance and accountability; and skills and technology.  Regional economic integration through the regional economic communities was an objective of particular interest to Kaberuka who recognized the need to change the fact that Africa continues to trade more outside Africa than within Africa.

• Akinwumi Adesina (Nigeria).  Described as “a man on a mission to help Africa feed itself,” Adesina is one of the leading proponents of transforming Africa’s agriculture sector.  In his current role as Minister of Agriculture and Rural Development of Nigeria, he has introduced a variety of innovations to improve access to financing and inputs as well as eradicate corruption and other market inefficiencies.  He also is one of 17 global leaders appointed by UN Secretary-General Ban Ki-moon to the Millennium Development Goals Advocacy Group.  In addition, he has served as the Vice-President for Policy and Partnerships at the Alliance for a Green Revolution in Africa and was the 2013 recipient of Forbes’ prestigious African of the Year award.

• Sufian Ahmed (Ethiopia).  Over the course of his two decades of service as Finance Minister of Ethiopia, Ahmed has overseen the transformation of the Ethiopian economy into one of the continent’s fastest growing.  Since 2006, the Ethiopian economy has averaged double digit annual growth and seen particularly impressive growth in its power and infrastructure sectors.  Ahmed’s most recent accomplishment is overseeing Ethiopia’s debut issuance of a Eurobond.  The oversubscribed bond raised $1 billion that will be used to expand the country’s power, sugar factories and manufacturing sectors.  He also is leading the government’s negotiations for Ethiopia’s first-ever Power Purchase Agreement for the 1,000 MW Corbetti geothermal power project.

• Jaloul Ayed (Tunisia).  Ayed is a well-renowned banker with experience in both the public and private sector.  He currently serves as the President of the MED Confederation, “a newly created alliance which aims to promote socioeconomic cooperation in the Mediterranean region.”  Prior to this role, he was the Tunisian Finance Minister and “served in the two interim governments that were formed following the Tunisian revolution.”  His private sector experience includes 18 years with Citibank, setting up the investment banking arm of the Moroccan BMCE Group and founding Argan Invest, which is Morocco’s largest private equity platform.

• Kordjé Bedoumra (Chad). In his over twenty-five years with the AfDB, Bedoumra held leadership positions (including a tenure as Secretary-General) across a range of “areas including transport, power, water and sanitation, telecommunications and finance.”  In his current capacity as Chad’s Minister for Finance and the Budget, Bedoumra is playing a leading role in helping the country to realize its ambition to double its domestic oil production and unlock other mineral resources.  Bedoumra also serves as Chad’s representative on the Board of Governors of the International Monetary Fund.  If elected, he would be the first president from the Central Africa region in the bank’s 50-year history.

• Cristina Duarte (Cabo Verde). In the nearly ten years that Duarte has served in her current role as Minister of Finance, the country has graduated to middle-income status and has been commended for “good governance, sound macroeconomic management, trade openness and increased integration into the global economy, as well as the adoption of effective social development policies.”  Cabo Verde also has been recognized for its “significant efforts” in the areas of democracy, human rights and inclusive economic growth.  In addition, Duarte’s experience with various international organizations — such as the AfDB, the World Bank and the United Nations — is complemented by private sector experience including serving as a Vice-President for Citibank in Angola.  If elected, Duarte would be the first woman president in the bank’s 50-year history and also the first from a Lusophone country.

• Samura Kamara (Sierra Leone).  Kamara is the Minister of Foreign Affairs and International Cooperation of Sierra Leone.  He has extensive experience in development economics at the sovereign level (as Central Bank Governor and then Finance Minister) as well as the international level (having served on the Board of Governors of the Islamic Development Bank and the African Development Bank).  Kamara has played a senior role in representing Sierra Leone before the African Union as well as the United Nations.

• Thomas Sakala (Zimbabwe).  Having first joined the AfDB in 1983, Sakala is another candidate with extensive experience with the institution.   His last official position was as Vice-President for Country and Regional Programmes and Policy which involved oversight of the division responsible for “dialogue and programming of AfDB’s operations in the Regional Member Countries; policies and operational resources; procurement and fiduciary services; and partnerships and cooperation.”  In his capacity as Vice-President, he also was “a member of the Bank’s Senior Management Team and [contributed] to its overall Strategic Orientation.”  He stepped down from this position in October 2014.

• Birama Boubacar Sidibe (Mali).  Sidibe is a veteran of development financing institutions.  Currently the Vice-President of Operations at the Islamic Development Bank, Sidibe was with the African Development Bank for 23 years where he “held various technical and managerial positions covering operational as well as corporate areas.”  Between these two tenures, he served as the Managing Director of Shelter Afrique, “the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.”  (Shelter Afrique is “a partnership of 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.”)

Over the next few months, we will follow with great interest as the eight candidates articulate their vision for the AfDB and make the case for why they should be selected to lead one of the most important institutions in Africa.

Sourced here  http://www.natlawreview.com/article/depth-look-candidates-african-development-bank-president

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A senior associate in the White Collar Defense & Investigations practice group, Mipe Okunseinde’s practice focuses on the range of compliance issues arising under anti-corruption laws, international trade controls, and related federal laws and regulations. Ms. Okunseinde assists companies in conducting internal investigations and represents companies in enforcement actions by the BIS, DOJ, FTC, OFAC, and other U.S. federal government agencies. In addition, she advises clients on addressing commercial, legal, and other considerations relevant to proposed transactions, entering…

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Senior International Advisor

Earl Gast is a senior international advisor for Africa.  Mr. Gast, a non-lawyer, was the Assistant Administrator for Africa at the United States Agency for International Development (USAID) prior to joining the firm.  In this role, he oversaw a large and varied portfolio that provided $7 billion in assistance to 49 African countries.  Prior to this appointment, Mr. Gast served as the USAID’s Mission Director in Afghanistan, overseeing the Agency’s largest overseas program, which was providing $4 billion in assistance to increase stability through…

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Construction of Awash- Hara Gebeya railway line launched

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Addis Ababa February 25, 2015 –

Construction of the Awash- Weldia- Hara Gebeya railway project, which is part of the railway system that will connect northern and north eastern part of the country with port of Tadjoura, officially launched today.

Construction of the 370km long railway line is expected to be finalized within three and half years.

The project, in which its construction is being carried out by a Turkish company, Yapi Merkezi, will consume 1.7 billion USD.

Yapi Merkezi has completed the Dubai Metro Project, Casablanca tramline and Ankara – Konya high speed rail line that make the company a world brand in rail systems.

The contract agreement for the construction of the railway line was signed two years ago and the plan was to finalize the project in December 2015.

But construction of the project forced to be delayed because of problems related to securing funds from development partners.

Now the nation has managed to secure the money needed to finance the project, most of it from Exim Bank of Turkey and the remaining from other EU countries.

The partnership between the EU countries to extend the support to this project is a result of the nation’s policy that prioritizes economic diplomacy, said Prime Minister Hailemariam Desalegn during the occasion.

The railway, which will operate using renewable energy, is a manifestation of Ethiopia’s target to build environmental friendly projects that use renewable energy and minimizes expenditure on oil, he added.

The Mekele- Woldia- Hara Gebeya- Semera- Tadjourah Port railway project is one of the eight railway routs identified by the government as important to boost the transportation network within the country and with neighboring countries and ports.

A few days ago a cornerstone was laid for the construction of a 220km railway line between Mekele- Hara Gebeya- Weldia, which is part of this railway system. Construction of this project will be completed within three and half years and is expected to consume 1.5 billion USD.

Construction of these and other railway infrastructures that will boost domestic transportation system and enables the nation reach ports makes Ethiopia the leading African country in railway developments, Hailemariam said.

http://www.ena.gov.et/en/index.php/economy/item/445-construction-of-awash-hara-gebeya-railway-line-launched#

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Ethiopia becoming one of Africa’s leading countries in railway transport network

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Addis Ababa, 25 February 2015 –

The 1,500 km railway line being built in Ethiopia puts the country as one of the leading countries in Africa in railway transport network, Prime Minister Hailemariam Desalgen said.

PM Hailemariam made the remark while laying the cornerstone for the construction of the 375 km Awash-Kombolcha- Woldia-Hara Gebeya Railway Project today in Kobolcha town.

In addition to reducing environmental pollution and fuel expenditure as it uses renewable energy, the route is significant for mobility of goods and people, he said.

Transport Minister, Workneh Gebeyehu, on his part said that the government of Ethiopia will invest 1.7 billion US dollars obtained from Turkish Exim Bank and EU member countries for the project.

The railway project to be built by Yapi Merkezi, a company based in Turkey, will be finalized within three and half years, he said.

ERC Board Chairperson and Adviser to the Prime Minister with the Rank of Minister, Dr. Arkebe Equbay, said the new railway line will connect northern Ethiopia with central region.

With a running speed limit of 120 kilometers per hour, the railway line would help transport 750,000 passengers and 8.5 million tons of goods per year, Dr Arkebe said.

A cornerstone for the construction of Mekelle –Woldia-Hara Gebeya railway line at a cost of 1.5 billion US dollars was laid last week, it was noted.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17883:ethiopia-becoming-one-of-africas-leading-countries-in-railway-transport-network&catid=71:editors-pick&Itemid=396

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Second phase of AALR to continue during GTP II

Addis Ababa: February 25, 2015 –

http://www.fanabc.com/english/index.php/news/item/2309-second-phase-of-aalrp-to-continue-during-gtp-ii

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EPHARM to Have New Factory for $100m

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Ethiopian Pharmaceutical Factory (EPHARM) embarked on a new factory that is being built in Sebeta town on a 40,000sqm land.

The construction, which will cost the factory up to 100 million dollars is said to follow the international standard of good manufacturing standard (GMS), which will allow it to sell the products competitively to other countries generating foreign exchange according to Mohammed Nuri (MD), EPHARM’s board of director’s chair.

The factory, which celebrated its golden jubilee last Saturday, will see its workers, which are now less than 600 increased to 1,500 when the factory becomes operational.

As the six-month report of the Ministry of Industry (MoI) for the half fiscal year of 2014/15 indicates, the performance of pharmaceuticals and medical equipment production capacity has reached 62pc. And according to the Ministry of Trade’s (MoT) 2013/14 fiscal year report, 64.3 million dollars was gained falling back from the planned 110 million dollars. This performance is only 59pc of the plan.

The government, in its five-year Growth and Transformation Plan, had planned to source 50pc of medicinal demand from local production but it achieved below 20pc.

http://addisfortune.net/articles/epharm-to-have-new-factory-for-100m/

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State Minister Dewano meets a Canadian Trade Mission

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Addis Ababa, 25 February 2015 –

State Minister for Foreign Affairs, Dewano Kedir, met on Tuesday (February 24) with a Canadian Trade Mission led by Senator Don Meredith.

The meeting followed the successful two-day Ethio-Canada Business Forum held (February 23-24) in Addis Ababa.

The bilateral discussions covered the overall importance of the business forum, the Trade Mission’s plans for investment in Ethiopia, the political will for stronger and more business cooperation and the potential and possible opportunities the Government of Ethiopia could offer Canadian companies.

Senator Merdith described the two-days of business meetings as the foundation for further cooperation.

He said cooperation in trade and investment between the two countries would help Ethiopia create much needed jobs for its youth and for Canadian companies to benefit from the opportunities available.

The representatives of the Canadian Trade Mission, he said, had been very satisfied with the discussions held with high-level government officials and were enthusiastic about the prospect of investing in Ethiopia.

The Senator also appreciated Ethiopia’s political commitment and its vision to reduce poverty and improve the welfare of the people.

Dewano Kedir on his part noted that Ethio-Canadian ties in the sphere of business had been minimal and stressed the need to tighten this bond of economic cooperation.

State Minister Dewano, who detailed the opportunities and potentials available, noted that Ethiopia was a staunch promoter of peace in order to set the stage for economic development, for the country and indeed the region.

He added that the country was moving ahead with clear policy directions and determined to wipe out poverty and backwardness.

The Canadian Trade Mission came to explore the business opportunities offered by Ethiopia at the two-day Ethio-Canada Business Forum as part of the events marking the 50th Anniversary of Ethio-Canada Friendship.

Twenty seven representatives of Canadian companies as well as high-level Government officials and leaders of business organizations in Ethiopia attended the forum, exchanging views on how to expand and carry forward business cooperation between the two countries.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17882:state-minister-dewano-meets-a-canadian-trade-mission&catid=52:national-news&Itemid=291

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Ethiopia, Czech Republic Agree to Boost Relations

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Addis Ababa February 25, 2015 – 

Ethiopia and Czech Republic have expressed their desire to boost cooperation.

Foreign Affairs State Minister Berhane Gebrekiristos held talks today with Czech Republic Deputy Foreign Minister Peter Drulak.

During the occasion, State Minister Berhane said Ethiopia and Czech Republic have a desire to improve their cooperation in different spheres.

The state minster, who recalled that the relation between the countries has exceeded half a century, stated that the cooperation should be consolidated in trade, agriculture, and industry as well as other sectors.

The cooperation of the countries in beer, textile and leather processing has to be extended to security issues in the region, he added.

Deputy Foreign Minister Drulak said on his part the discussion would help bolster the relations of the two countries to a higher level.

Czech Republic would support Ethiopia’s peacekeeping effort not only as a country but also as a member of the European Union and North Atlantic Treaty Organization (NATO), Drulak pointed out.

Preparations are underway to arrange working visits of leaders of the two countries in order to consolidate relations and sign in parallel different memorandums of understanding, the deputy foreign minister added.

http://www.ena.gov.et/en/index.php/politics/item/446-ethiopia-czech-republic-agree-to-boost-relations  

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Public Transport to Sudan Very Close

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For the Ethiopian Side, either Addis Abeba, Bahir Dar or Gonder Will Host the Origin and destination stations

Ethiopia is soon to begin cross border public passenger transport with Sudan. This follows a bilateral agreement made between the two countries a year ago.

To realise this, a memorandum of understanding (MoU) had been signed between the two countries to launch a commercial road passenger transport to be operated to and from the cities of the two countries back in 2013. During the agreement, MoU on areas of railway, trade, harmonisation and mutual assistance in customs operation had also been signed.

A discussion that will include a delegation of officials, stakeholders engaged in transportation sector and private investors of both countries will be held, Kassahun Hailemariam, director general of the Federal Transport Authority (FTA), told Fortune.

“The next step will be agreeing on the terms of implementing the operation; issues like destination and origin of each vehicle that will travel from Ethiopia to Sudan and vice versa will be decided after we had discussed with our counterpart in Sudan,” added Kassahun.

On Ethiopia’s part, three alternative locations have been chosen as origin and destination areas, namely, Addis Abeba, Bahir Dar and Gonder. Subsequently, one of the aforementioned locations will be selected on the basis of the demand from local private investors, the interest of the Sudanese and the number of passengers expected from the above locations. The price will be also set after a discussion between the two counterparts.

A technical committee has already dealt with other issues over the past year. For instance, where passengers have to stop for meals, the weight of baggage allowed per passenger and the type of vehicles eligible for this sort of travel. As far as the types of vehicles are concerned, buses at a minimum level are expected to have an air conditioning (AC) system.

“This area will be left to local public transport providers and if any public transport associations manage to provide us with the kind of vehicles we need, the door is open for all,” noted Kassahun.

There is no way that few associations will monopolize the service. Selam and Sky buses, operated by different share companies, have their own air-conditioning system. These buses are considered as a high quality means of transportation, in comparative terms.

Moreover, “since we are going to deal with cross border transportation, issue like visa and emigration will be arranged according to the law; there will be no change on the matter,” said Kassahun.

Different stakeholders from both countries are scheduled to meet on February 25, 2015, and facilitate the commencement of the service; this meeting will focus on clearing the paths that will lead to launching the service, said Abelneh Agidew, communications director at the FTA.

“We are hoping that the transportation service will begin in the current fiscal year,” Kassahun told Fortune.

As far as trade and economic relation is concerned, the presence of Sudanese owned projects has reached 289 projects at different levels with 13.7 billion Br. Sudanese are the first foreign companies from Africa in terms of both the number of projects and volume of investment.

http://addisfortune.net/articles/public-transport-to-sudan-very-close/

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KEFI bolsters Ethiopian team with mine operations veteran

 Addis Ababa: February 25, 2015  -

http://www.fanabc.com/english/index.php/news/item/2308-kefi-bolsters-ethiopian-team-with-mine-operations-veteran

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Revenue in Oromia surpasses GTP target

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 Adama February 25, 2015 – 

The Oromia Revenues and Customs Authority announced that it has already met the target set in the five-year growth and transformation plan (GTP) period.

The Authority has collected 29 billion Birr revenue during the past four and half years, a 9 billion Birr increase compared to the target, said Authority Director General Yohanes Dinkayehu.

The Authority has collected 7 billion Birr during the first six months of this fiscal year, which he said exceeded the target by 1 billion Birr.

http://www.ena.gov.et/en/index.php/economy/item/443-revenue-in-oromia-surpasses-gtp-target

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South Boulder Mines Colluli potash resource swells to 1.28Bt

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Wednesday, February 25, 2015 by Proactive Investors

Colluli is one of the largest potassium sulphate resources globally, with a Pre-Feasibility Study for Potassium Sulphate production on track for completion in February 2015.

South Boulder Mines (ASX:STB) has delivered a significant increase in 2012 JORC mineral resource at its Colluli Potash Project in Eritrea to 1.289 billion tonnes with an average grade 10.76% K2O.

The mineral resource estimate was carried out by AMC Consultants and is as a result of previous work conducted by Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH (Ercosplan).

The review was carried out in preparation for the allocation of the maiden Reserve for Colluli, which will also be completed by AMC.

Paul Donaldson, managing director of South Boulder, said: “This is an excellent outcome. As well as 210 million tonnes of uplift in the Mineral Resource estimate, 97% of the Mineral Resource now sits in the Measured and Indicated categories.

“There is no question about the size and potential of the Colluli resource.

“It will form the backbone of what will become a significant project in the future. This work verifies this as one of the largest potassium sulphate resources globally.

“It is also appropriate that we change our resource grade reporting from % KCl to % K2O at this juncture, due to the combination of salts in the resource which favour the production of potassium sulphate (SOP) and is the focus of our pre-feasibility study.”

Highlights

Resource highlights include 97% in the Measured and Indicated categories:

– Mineral resource of 1.289Bt, average grade 10.76% K2O;
– Contained K2SO4 (Potassium Sulphate) equivalent1 of 260Mt;
– Resource uplift of 210Mt mineralised material; and
– 97% of mineral resource in Measured and Indicated categories.

The Colluli deposit comprises:

– Measured mineral resource: 303Mt at 10.98% K2O;
– Indicated mineral resource: 951Mt at 10.89% K2O; and
– Inferred mineral resource: 35Mt at 10.28% K2O.

Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.

The project hosts one of the largest potassium sulphate resources globally, with a Pre-Feasibility Study for Potassium Sulphate (SOP) production on track for completion in February 2015.

South Boulder and the Eritrean National Mining Company (ENAMCO) are equal shareholders of the Colluli Mining Share Company (CMSC) which will develop the Colluli Potash project.
Colluli resource composition

The resource comprises three potassium bearing salts; sylvinite, carnallitite and kainitite.

These salts are suitable for the production of potassium chloride and/or potassium sulphate and potassium magnesium sulphate.

Potassium sulphate and potassium magnesium sulphate are high quality potash fertilisers that carry a price premium over the more common potassium chloride.

Potassium sulphate and potassium magnesium sulphate have limited production centres globally.

Substantial upside for the project exists from the exploitation of other contained products within the resource such as high purity rocksalt, kieserite (magnesium sulphate), gypsum and magnesium chloride.
Colluli located 75 kilometres from port

The Colluli potash project is situated in the Danakil region of Eritrea, 300 kilometres south-east of the capital city, Asmara, and 180 kilometres from the port of Massawa, which is Eritrea’s key import/export facility.

The project intends to construct an export facility at Anfile Bay which is located 75 kilometres from the Colluli mine site.

The Colluli resource is located around 70 kilometres from the coast making it one of the most accessible potash deposits globally.

It is favourably positioned relative to key growth markets for potassium-bearing fertilisers, commonly known as potash, and is the shallowest known potassium bearing evaporite deposit in the world with mineralisation starting at 16 metres.

This makes the resource amenable to open cut mining methods.

Recent Activity

Earlier this month, South Boulder completed metallurgical testwork for the project, which eliminated the need for fine grinding from the process plant circuit.

It also identified a number of internal plant configurations and the company kicked off optimisation work to further enhance DFS process design and internal plant configuration.

Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.

Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.

Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.

A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.

Cashed up

South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million in January through the placement of 10 million shares at a 6% premium to market.

Next key catalyst

– The PFS for potassium sulphate production is on track for completion in February 2015.

Milestones ahead

– The Maiden Reserve which will be completed by AMC Consultants.
– Completion of a high quality DFS in Q3.

http://www.proactiveinvestors.com.au/companies/news/60905/south-boulder-mines-colluli-potash-resource-swells-to-128bt-60905.html

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Addis Hosts Argus FMB Africa Fertilizer Conference

 Argus FMB Africa Fertilizer Conference was held in Addis Abeba from February 18 to 20, 2015.

The conference attracted over 400 delegates from across the fertilizer supply chain in Africa and internationally. Representatives from over 50 different countries attended the conference, which focused on the steps needed to boost production and consumption of fertilizer in Africa according to Mitiku Kasa, state minister of Agriculture during his opening speech.

The conference, which is said to provide a platform to meet and do business with leading global producers, traders and distributors of fertilizers, has made the participants visit the fertilizer blending factories that the country is now building.

Ethiopia, which had embarked on soil fertility assessment and identified the contents that are missing in the specific areas is constructing four fertilizer blending factories which will bring the number of fertilizer blending factories in the country to five.

A fertilizer-producing factory is also being built in Yayo, in western Ethiopia Illubabur Zone, which is one of the five factories that the government plans to construct with 2.8 billion dollars.

http://addisfortune.net/articles/addis-hosts-argus-fmb-africa-fertilizer-conference/

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Ministry of Health focuses on quality, equity in GTP II

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Addis Ababa, 25 February 2015  –

The Ministry of Health said that it will work its level best to ensure quality and equitable health service in the second Growth and Transformation Plan Period, GTP II.

It also stated that the nation has achieved 95 per cent of the envisaged health service coverage in the first GTP period.

In an exclusive interview with The Ethiopian Herald, Health Minister Dr. Kesete Birhan Admassu said that Ethiopia has done very well in terms of translating its Growth and Transformation Plans into reality and achieving goals and targets in the health sector.

The prominent target, the Ministry set for itself at the launching of GTP I, was to achieve the Millennium Development Goals. Ethiopia was hence well on track in achieving all the three health related MDGs. In fact, it has achieved MDG-4 which is about reducing child mortality. Thus, the Ministry has achieved the set goal three years ahead of schedule, he added.

Dr. Kesete Birhan further said: “We are also doing well in terms of arresting communicable diseases. Ensuring access to health facilities is the other target we set for ourselves. Therefore, today, Ethiopia has achieved 95 per cent health service coverage. That means, we have built and furnished around 3,500 health centers. We have also multiplied over the number of primary hospitals in the country. In the course of the GTP period alone, we have constructed around 200 hospitals which have become operational. This has tremendously increased access to hospital services,” he added.

Recalling that the country was beset by the dearth of manpower in the past, Dr. Kesete Birhan said that the other target the Ministry eyes at is increasing the number of health workers in the country.

“In this regard, we have redoubled efforts particularly in areas where we have acute shortage of human resource.” Regarding midwives for instance, over the last four years, the Ministry has given midwifery courses to 6,000 health workers that have been deployed at the various health centers and hospitals around the country.

“We have also a plan to increase the number of medical schools. We have now 28 public medical schools that train medical doctors. Currently, the number of medical doctors stands at the 6,000 mark. The steps taken in this regard have significantly improved the doctor-population ratio. Pertaining to new graduates, who are expected to join the task force down the road, starting form 2015, we will have at least 3,000 medical doctors graduating every year, he added.”

Justifying that the Ministry would give special emphasis to ensuring quality and equity of production in the next GTP, Dr. Kesete Birhan said: “While we improve access to health service, we believe fine-tuning accessibility with quality is mandatory. Therefore, in the upcoming five years, the focus will shift to improving the quality of health care service starting from the community level and the health post up to tertiary hospitals. We will have key performance indicators that would show whether the service we are providing to the public is of acceptable quality,” he added.

And the Ministry will also focus on equitable treatment, it will narrow down the disparity between urban and rural areas (even far flung corners of the country) as well as between the poor and the rich segments of the community. The Ministry is thus gearing up to outreach all Ethiopians with an unprecedented stepped up effort, the Minister said.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17870:ministry-focuses-on-quality-equity-in-gtp-ii-&catid=52:national-news&Itemid=291

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Plan to raise daily individual water consumption to 100L to be implemented

 Addis Ababa: February 24, 2015 –

http://www.fanabc.com/english/index.php/news/item/2294-plan-to-raise-daily-individual-water-consumption-to-100l-to-be-implemented

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Ethiopian women cooperative increases incomes thanks to FAO-Eataly partnership

 Addis Ababa: February 25, 2015  –

http://www.fanabc.com/english/index.php/news/item/2306-ethiopian-women-cooperative-increases-incomes-thanks-to-fao-eataly-partnership

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Insurers Seek Central Bank Approval to Form Reinsurer Firm

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Currently, local insurers cede up to 30pc of premiums to foreign reinsurers

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The Association of Ethiopian Insurers has submitted a request to the National Bank of Ethiopia (NBE) two weeks ago for the approval of the formation of the first reinsurance firm with a one billion Birr subscribed capital.

The establishment was initiated following the issuance of the Reinsurance Company Establishment Directive by the NBE in April, 2014, according to Kiros Jirane, president of the Association of Ethiopian Insurers and CEO of Africa Insurance SC.

After the issuance of the directive, the Association established an organizing committee that is chaired by Kiros for the establishment of the reinsurance firm. The committee has 15 members composed of 13 chief executive officers of the insurance firms and two from the Ethiopian Bankers Association (EBA), including the presidents of Addis International Bank and Bunna International Bank.

Reinsurance, which is also known as “insurance for insurers” or “stop-loss insurance”, is a practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions.

Reinsurance companies will be formed as share companies, wholly owned by Ethiopian nationals and organizations. No shareholder shall have more than a five percent share in the company. The capital of the company will be at least 500 million Br, which ought to be fully paid up in cash and deposited in a blocked bank account, according to the directive issued by the central bank.

The company will have 100,000 shares with a pure value of 10,000 Br each. The initial investment cost of the project, including fixed investment, preoperational expenditure and working capital is estimated at 32.6 million Br, according to a feasibility study conducted by the Ethiopian Insurance Corporation (EIC).

The absence of local reinsurers means that 25pc to 30pc of the premiums collected by domestic insurers had to be paid up to foreign reinsurers in the form of reassurance premium, according to the feasibility study by the EIC. The study by the EIC includes organization of the company, underway capacity, and implementation schedules.

In the 2012/13 fiscal year, the 17 insurance firms in the country paid 1.2 billion Br premium for the reinsurers from the 4.8 billion Br they collected from their clients, according to a data from the NBE.

“Members of the association have already promised 620 million Br for the establishment and the remaining money will be raised from availing shares to the market,” Kiros told Fortune.

The four new insurers including, Berhan Insurance S.C, Lucy Insurance S.C., Tsehay Insurance S.C and Bunna Insurance S.C are not included in the establishment of the reinsurance firm as they are not members of the insurers association; they have been told to be members before the end of February 2015.

“We are awaiting board approval to be a member of the insurer association and become the founding members of the company,” Alemseged Abreham, the CEO of Lucy told Fortune.

The organizing committee requested the NBE for the approval of the firm and to open a closed account for the firm two weeks ago, which will be used to collect the establishment capital and it is waiting for a response from the NBE, according to Kiros.

The organizing committee is also in the process of establishing an office to run the project and to update the feasibility study that was conducted by the (EIC) and Public Finance Enterprise Agency, on July, 2012 about the prospects of reinsurance firm establishment. From 13 individuals who submitted their CVs for the manager position of the project office, we will select and hire one after evaluating the documents in the coming two weeks, said Kiros.

The insurance industry had an aggregate capital of two billion Br by the end of 2013/14 fiscal year, an increase of 500 million Br from the preceding year. The number of insurance firm branches has also grown to 332 by adding 59 new branches during the last fiscal year, 55pc of which are located in Addis Abeba, according to data from the NBE.

The major global reinsurers include Munich Re, Swiss Re, Hannover Re, and so on. Ethiopian insurance companies mainly rely on Munich Re, Kenya Re and Swiss Re.

The company will be fully operational in the coming six to 12 months, according to Kiros.

http://addisfortune.net/articles/insurers-seek-central-bank-approval-to-form-reinsurer-firm/

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Indian Denim Factory Begins Yarn Production

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Factory expects to start denim fabric production in a month for local and export market

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Kanoria Africa Textile Plc, established by Indian owners, began yarn production last week in preparation for the planned commencement of denim fabric manufacturing in May 2015 at its plant in Bishoftu (Debre Zeit) in Oromia.

The company obtained on investment license two years ago and built its factory on a 155,000sqm plot in Bishoftu with installed capacity of 10 million metres of fabric peryear. The factory, which Jay Soyanter, Marketing Vice President of the company, says will employ 600 people, and will produce both yarn and denim for textile and garment factories. It is the factory established with a capital of 35 million dollars.

The factory will sell its products in Ethiopia as well as export to African, Asian and South American markets, says Soyanter. Kanoria will use cotton procured from the local market and imported from Indian and Pakistan.

“There is a big potential for the investment of garment and our company wanted to meet the denim fabric demand of the country, which were mainly imported from Pakistan, Bangladesh, Turkey and Sri Lanka,” said Soyanter.

The company is looking forward to the commencement of operation over the next four to five months of the five textile factories, among those are A.N.F Garment Factory, established by Pakistani owners and Atraco Textile Factory, both located at the new Bole Lemi textile zone in Addis Abeba.

In Ethiopia, there are 130 medium and large-scale textile and garment factories, of which 37 are owned by foreign investors while the remaining are owned by domestic investors.

From the foreign textile factories, Ayka Addis, established with a capital of 140 million dollars by Turkish owners, has the largest production capacity with 20tns of yarn and 40tn or 70,000 pieces of garment a day. Ayka Addis employs 10,000 people.

The second largest textile factory, Almeda Textile Plc, established in February 1996 by the Endowment Fund for the Rehabilitation of Tigray (EFFORT), with a capital of 594 million dollar, employs 2,500 people. It has a yearly production capacity of 7,020tn of yarn, 16,751,100tn of grey fabric, 15,387,000tn of processed fabric, and about one million pieces of basic shirt equivalent garments, says its owner, EFFORT.

Another garment and textile factory , MAA garment and textile factory, owned privately by Kebire enterprises under Midrok Ethiopia Plc, has a production capacity of 10 tones of spun fiber per day and 6,000 kilogram of dyed products per day. MAA garment was established in June 2004 and has 1,300 employees.

“The new denim factory is beneficial in terms of transferring technology advancements and knowledge to the country, saving foreign currency, meeting the high demand for denim fabric and creating employment opportunities,” said Bantihun Gesese, Ethiopian Textile Industry Development Institute Corporate communication Director.

Ethiopia’s textile and garment sector has been a poor performer over the past years, with one of the major problems being the poor supply of cotton, and others being poor planning and management, according to earlier government reports.

In 2013/14 Ethiopia made 111.3 million Br from the export of textiles and garment, which showed an improvement of 12.5pc over the previous year, although it was just 31.8pc of the target of 350 million dollars. Bantihun says that the 14 million dollars earned from export during the month of January 2015 was a result of the increased attention from the government.

http://addisfortune.net/articles/indian-denim-factory-begins-yarn-production/

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FAO launches new project to support Ethiopia’s livestock sector

Addis Ababa, 24 February 2015 –

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17848:fao-launches-new-project-to-support-ethiopias-livestock-sector&catid=52:national-news&Itemid=291

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French Firms Recommend Several Urban Centres for Ethiopia

French firms, hired by the government, reported that the existing urban system in Ethiopia was dominated by the primacy of Addis Abeba and characterized by low urban infrastructure and services, poor housing and weak governance; secondary cities played a minor role in supporting regional development.

The Ministry of Urban Development, Housing & Construction (MoUDHC) has hired an international firm to conduct the first national urban study, the study which costs 51.9 million Br will be finalized in the coming three months.

The 51.9 million Br study, financed by the World Bank, is titled “National Urban Development Spatial Plan”. It is being carried out by a French consultancy, Egis international, in association with IAU-IdF and Urba Lyo. Egis is a French based company that is engaged in engineering and consulting in the sector of transport, urban development, building water, environment and energy, having 12,000 employees over 100 countries. The company has been giving various consultancy services on road construction, design and supervision in Ethiopia for the last 20 years.

The plan endeavours to assess the existing problems and anticipate opportunities, challenges and problems the future might convey regarding location, size and function of key urban settlements across the country, how they are linked together, how they interact with their hinterlands, according to Gabriel Deribe, country manager of Egis International.

The company submitted part of the study titled “The Existing Situation and Diagnostic Report” in December, 2014, to the Ministry of Urban Development, Housing & Construction (MoUDHC). This study incorporated 12 cities, including Addis Abeba, Mekelle, Bahir Dar, Komblocha and Welkite. The study was presented to the Prime Minister and regional authorities for discussion on January 31, 2015.

In order to break the trend of the dominance of Addis Abeba and the secondary importance of other urban areas, the study suggested a polycentric urban development scenario where few major urban areas will be the base for the growth of their respective hinterlands with a focus on manufacturing and service economic activity.

“The urban scheme is supported by complementary corridors that connect the main secondary cities so facilitating the inter-regional exchanges of goods and services. These cities are expected to be providing services for their large hinterlands supporting rural/agricultural development. Combined with higher productivity, this scenario allows Ethiopia to accelerate the process of reaching middle income status,” Gabriel said.

The study is conducted based on the Urban Planning Proclamation No. 574/2008, which considered National Urban Development Plan Scheme in order to bring balanced and integrated development, stated member of the study technical advisory committee. Regional urban studies have been conducted taking into account their demography and hinterland, infrastructure provision but this study is the first to be conducted at the national level, he added.

The Study took the existing urban organization of the country, the demography and economic trends, committed and planned projects, and the policy regime and targets of the government into consideration, explained Gabriel. Various ministries participated in the study which will be an input and drive to their policy and strategy focus as well as the country’s next Growth & Transformation Plan. But for the successful implementation of the study key challenges in poor designing, rudimentary physical planning, ineffective management should be addressed, the Egis’ study cautioned.

Egis was among the 21 companies that had responded to the expression of interest notice announced on September 29, 2012. Six were shortlisted, including Khatib & Alami Consulting Engineering, which is a 50 year-old Lebanese company and Niras International, a multi disciplinary consultancy company established in Denmark in 1956. After winning the technical and financial evaluation, Egis signed the contract on January 9, 2014.

http://addisfortune.net/articles/french-firms-recommend-several-urban-centres-for-ethiopia/

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Alisha establish marble processing plant

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Addis Ababa, 24 February 2015 -

Alisha Mining Plc, an Indian mining firm, established a marble processing plant in Ethiopia at an outlay 2.5 million US dollars. The plant is set up at Burayu city, Oromia State, which is located west of the capital city and sits on 20,000 square meters.

General Manager of the Indian firm, Ahan Shailesh Hingrah, noted the company imported latest marble cutting machine (Gangsaw) and polishing machines from India and China.

According to The Reporter, the company has finalized the construction of the processing plant and already installed all the machineries.

According to the manager, the plant started production on Tuesday, February 3, 2015. The plant is said to have a capacity of producing 360,000 square meters of polished marble in a year. The factory produces marble slabs that have the size of 2.52 meters by 1.37 meters.

Hingarh commented, “We are producing high quality marble slabs and have started storing it for potential customers. Once we start promoting the company we will have many customers and we do not want to run out of stock. We already have 2000 square meters of marble slab in stock.”

Two years ago Alisha Mining acquired a marble quarry near Mendi town, Benshangul Gumuz State. Currently the quarry is producing 2,400 to 3,000 cu.m of marble blocks every month. The marble blocks are then transported to Buray where they will be cut into slabs and refined by a 16 head polishing machine. “Our marble quarry is of high quality. So we are producing very high quality marble,” Hingarh commented.

Other than marble slabs, the processing plant manufactures marble floor tiles that are of different size. “We are producing high quality marble products which can be supplied to hotels, real estate and residential houses. The marble quality is so high that it resembles the materials that the Taj Mahal is made of. So buyers in India have shown interest to buy our products,” Hingarh explained.

He furthered the aim of the company is to generate six million US dollars in a year. The company intends to export 40 percent of its production and channel the rest 60 percent to the local market. According to the general manager buyers in Spain, India, Saudi Arabia and China have already shown interest. “We have started receiving orders,” he said.

Currently the company has employed 30 Ethiopian nationals and the management intends to increase the number to 100 in three months of commencing operation.

Alisha has a future expansion plan. Hingarh explained the company is going to import two additional Gangsaw machines. “We also have a plan to install machines through which wastage of marble can be used for raw materials for paint and we want to install machines which can make monument from marble which have a huge demand in Europe.”

In addition the marble manufacturing business the Alisha’s parent company is intending to invest in real estate business, the general manager explained. It is already in the process of constructing high rise building in the capital of Ethiopia. It has occupied a plot of land around Wollo Sefer in order to construct 15 storey multipurpose building. The building is going to be commercial center and apartment.

In addition to this Alisha Mining is keen to invest in coal and iron ore exploration and production investment projects.

Hingarh noted the total investment in Alisha Mining has been done by its shareholders and no loan has been taken from banks.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17847:alisha-establish-marble-processing-plant&catid=52:national-news&Itemid=291

Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries BASED IN Germany. The core markets of Commerzbank are Germany and Poland.

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Commerzbank finances more than 30 percent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. In total, Commerzbank boasts approximately 15 million private customers, as well as one million business and corporate clients.

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The bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2013, it generated gross revenues of more than EUR 9 billion with approximately 54,000 employees on average.

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The Commerzbank opened a representative office in Ethiopia in October 2007. The office’s main target is to maintain close contacts with the National Bank of Ethiopia, local banks and other institutions. The office will also perform representative functions and carry out market research.

Commerzbank’s Chairman of the Board of Managing Directors Martin Blessing on February 6, visited Ethiopia and met with officials of the country. During his visit he talked to Capital’s Groum Abate about the purpose of his visit and what office have been doing so far.

Capital: What is your main purpose of visit?

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Martin Blessing: Personally, it’s my first time in Ethiopia. But Commerzbank started doing business here in 1958, so for 57 years. We opened an office here in 2007, and actually it has been a very successful development. If you look at the numbers of your country, its growth has been fantastic over the last couple of years. And as one of the major trade banks in Europe but also globally, we are happy to be here in Africa. We have just opened our 7th office in Africa last week in Abidjan, and being in Africa we see one of our most successful places.

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Capital: What is the main area of focus for your bank here in Ethiopia?

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Blessing: Commerzbank was actually founded in 1870 to promote trade. So the DNA of the bank is trade services, so we try to be present in countries where there are interesting opportunities for trade related services. We normally do business with other banks – you have a good banking system here – and we basically try to help companies to import and export through the banking system by providing financial services. Eastern Africa and your country in particular are very interesting – and we wish to use your country as the hub for some of the neighboring businesses.

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Capital: Your main focuses have been small and medium enterprises in Germany, so do you have any plans to support this in Ethiopia, to some sorts of assurances and such?

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Blessing: We help them in becoming international companies by providing export help. We do pure business financing of these companies here in Ethiopia because we believe that the banks in Ethiopia are better at deciding who has the good credit and doesn’t have such a good credit. Therefore our competitive advantage is the international focus and housing of exports and knowing the global market, while a local lender here in the Ethiopian market means the Ethiopian banking system is much better equipped to do this than we are.

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Capital: Do you facilitate large loans to the government and other large projects?

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Blessing: If there are large international trade projects: Yes. What we could also help with is in providing access to markets that is needed or wanted. These are the kinds of things we do. But what we mainly focus on as a bank is the trade business. So, a lot of trade from what you import here from Europe and Asia is basically managed through Commerzbank. And these are some of the things we will continue to do in the future.

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Capital: You met with the minister of finance and economic development, what were you talking about?

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Blessing: We talked about the development of your country. How the economy is growing. What the different investment plans are. How the banking system is structured and developed. How the banking system might develop in the future. Whether we can provide additional services, not only in trade but, for example, access to capital markets – there were a range of topics that we debated. Actually, I learned a lot about the structure of the Ethiopian market and the government’s plans to develop your country.

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Capital: Do you help German companies to invest here?

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Blessing: That is actually part of our business model. We try to give as much support to German companies that want to go international. I mean we can’t force them to invest, we can only offer to help and offer knowledge about the country, and that is something we would definitely do if some companies wanted to invest in other markets – we also provide consultancy for them.

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Capital: If the banking sector opens up to foreigners, would you consider coming here?

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Blessing: At this point in time, I can’t accurately answer your question because I know that your government is basically focusing on projects in investment – that is still high on the agenda. On the other hand, I also have the feeling that the banking market here is not fully opened yet.

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Capital: You operate formal banking businesses in other African countries…

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Blessing: In Africa, we are mainly doing trade services so we have those certain office. We don’t do booking services in African but we also do a lot of capital market business for different companies and governments within Africa. But in terms of booking hubs, we are not currently doing that in Africa.

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Capital: You mentioned being involved in the capital market, do you plan to involve in the euro bond Ethiopia is going to issue in the future?

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Blessing: Well we are always happy to provide services when we can, but we believe that, in terms of acquiring business banking is a conservative industry so your clients don’t like it when you talk too much about future potential businesses so the likelihood of winning that business is diminished the more you talk in advance about it. But, of course, we are in the business of making money and deals so we are always interested in making more deals in general and if we think we can offer good services, we will try to convince clients and future clients the same.

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Capital: Do you have any specific projects you are involved in Ethiopia?

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Blessing: Nothing that I could basically mention here

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Capital: But you have one?

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Blessing: Well, we are involved in several transactions but, as we say, there are certain bank secrecies so I never talk about certain names and companies specifically. If they are not already public, I never talk about individual transactions.
So we are very happy to be in your country. If we look at the growth, for Ethiopia within the last couple of years, it’s higher than the Chinese growth rate and most European countries would be happy if they had 20% of your growth rate. So we are quite optimistic that the country has bright future, and will continue to develop. We are happy to be here and that we can support the country and the businesses in this country.

Sourced here  http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4963:commerzbank-testing-the-waters-in-ethiopia&catid=37:interview&Itemid=61

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Israeli labour union threatens major strike ahead of election

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- Israel Chemicals faces escalating labour and political reaction to it’s job cuts while it remains uncommitted to Ethiopian project

Israel’s main labour union threatened on Thursday to shut down a large part of the economy just days before a parliamentary election unless one of the largest companies in the country reverses a plan to reduce its workforce.

The head of the Histadrut labour federation said a weeks-long dispute with potash maker Israel Chemicals (ICL) reflected wider problems and would be expanded into a general strike in all of southern Israel unless the job cuts are nulled.

“We need to cause shockwaves here,” said Avi Nissenkorn, whose federation represents hundreds of thousands of public sector workers, in an interview with Army Radio.

ICL, a maker of fertilizer and speciality chemicals, is Israel’s second-largest traded company and is controlled by conglomerate Israel Corp.

Opinions polls show a tight race ahead of the March 17 election, campaigning for which has been dominated by economic issues like high living costs and workers wages.

Prime Minister Benjamin Netanyahu’s office would not comment on the threatened general strike.

Nissenkorn accused the government of neglecting Israel’s arid south — roughly half the country — and instead focusing economic support on commercial centres near Tel Aviv.

Tens of thousands of workers from government offices and private sector business would stay home if the strike goes into effect on March 12 as planned, the Histadrut said.

Nissenkorn called on the government to wield its “golden share” in ICL — one of the top three suppliers of the crop nutrient potash to China, India and Europe — to prevent the lay-offs.

ICL, which has exclusive rights to mine minerals from the Dead Sea, said it was determined to implement an efficiency plan that includes cutting 140 of 900 jobs at its bromine unit and 140 of 1,250 at its primary potash-producing Dead Sea Works.

The bromine unit has been closed since workers left their posts at the start of the month. Employees at the potash plant joined the strike a couple of weeks later.

ICL declined to say how much the strike had affected its business and accused the workers’ groups of using “violence, aggression and brutality”. “ICL’s management will not allow the committees to take over the factories,” it said in a statement.

The strike had been planned to coincide with the election to try to gain more political support, the company said.

http://www.reuters.com/article/2015/02/26/israel-election-strike-idUSL5N0W02WA20150226

Related story:  http://www.globes.co.il/en/article-histadrut-declares-work-dispute-in-southern-israel-1001013993

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Outcome from the Innovative fertilizer solutions conference in Ethiopia

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Written by Tadesse M.

As one of the world’s leading fertilizer producers, SABIC seeks improved crop yields using more efficient “smart” fertilizers, while at the same time protecting the natural environment.

Bringing that story to a wider audience is why SABIC recently sponsored the Argus FMB Africa Fertilizer 2015 conference, which took place in Addis Ababa, Ethiopia, February 18-20.

Led by Khaled Al-Mana, Executive Vice President, Fertilizers, the SABIC team took part in discussion sessions and special meetings with leading African and international producers, major buyers and distributors, and all categories of service providers.

The conference focused on the latest market developments, exploring relevant business opportunities and issues such as bulk blending versus processing, multi-nutrient application and soil mapping in Africa.

SABIC is one of the top producers and exporters of urea, as well as ammonia, diammonium phosphate (DAP) and nitrogen/phosphorus/potassium (NPKs) fertilizers. It produces around seven million metric tons (MMT) of fertilizers annually.

In addition, with a strategic 30 per cent equity in the Maaden phosphate fertilizers project in northeast Saudi Arabia, SABIC has access to additional quantities of over one million MT annually of DAP.

“Being one of the leaders in terms of fertilizer production is not enough anymore,” stated Al-Mana. “We will increase our effort to develop and market new fertilizers, which reduce runoff into rivers and streams, feed the plant only when it needs to be fed, and emit fewer greenhouse gases into the atmosphere.”

SABIC participated as a platinum sponsor in the Argus conference and showcased a booth that hosted industry leaders and experts, providing them with information about SABIC and its fertilizer business.

Africa is rich in both natural and human resources, with fertile land, water access and high-caliber people. Development efforts have focused on the agricultural sector, which is where meeting the challenge of food scarcity will be met.

“SABIC’s sponsorship of the Argus meeting was just one example of our commitment to support the fertilizers industry in particular, and the agriculture sector in general, in this part of the world,” Al-Mana said, adding “this conference is a strong opportunity to further engage this growing potential market, and we are determined to seize it.”

SABIC’s efforts aim at finding solutions that contribute towards building a better future for the people in Africa, Al-Mana added.

SABIC has just opened its newest Africa office in Ethiopia, joining those already operating in Egypt, Kenya, Morocco, South Africa and Tunisia.

http://www.africasciencenews.org/en/index.php?option=com_content&view=article&id=1477:outcome-from-the-innovative-fertilizer-solutions-conference-in-ethiopia&catid=49:food&Itemid=113

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Commission stresses public role in fighting corruption 

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Addis Ababa, 27 February 2015 –

The Federal Ethics and Anti-corruption Commission said the role of public wing and mass participation is pivotal in fighting corruption.

The Commission discussed six month performance with participants drawn from various institutions and the public sector here yesterday.

Commissioner Ali Suleiman on the occasion said that the struggle against corruption and impropriety cannot be achieved without the combined effort of the government and the society at large.

Presenting the six month performance report, Research Team Chief Adviser Begizew Yaregal said the Commission has been undertaking diverse activities as per the fiscal year plan and achieved most of them with the participation of the public and its entire staff.

According the report, after conducting detail investigation of corruption offenses, over 74.3 million Birr, over 26,000 square meters of land, three vehicles, three buildings and three residential houses and other properties have been reclaimed over the last six months.

Serious shortage of manpower, continuous turnover, delay in responding to investigation and corruption offenses with various institutions, among others, are some challenges the Commission encountered thus far, as to the report.

The participants suggested a well-defined communication and education platform which is required to enhance citizens’ awareness towards anti-corruption move.

It is also conveyed that the Commission needs to check some malpractices in the service-providing institutions such as Electric Power and Water for recurrent supply interruption that eventually resulted in public dissatisfaction.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17918:commission-stresses-public-role-in-fighting-corruption-&catid=52:national-news&Itemid=291

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Ethiopia to build research center to boost rice production

Addis Ababa, 27 February 2015 -

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17922:ethiopia-to-build-research-center-to-boost-rice-production-&catid=52:national-news&Itemid=291

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Ethiopia Plans to Revive Biodiesel Production

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Ethiopia is an unlikely setting for a revived “food versus fuel” debate. As a country once overwhelmed by famine, it may seem odd that the Ethiopian government would be in favour of anything associated with food security risk. But the case for biofuels in Ethiopia is strong and it’s growing stronger.

Like many countries, the Ethiopian government was eager to realise the potential of jatropha, a biofuel crop with “green gold” credentials, ten years ago. Opinions soured in 2007 and 2008 when the global food price crisis struck and biofuel production was identified as one of the root causes. This, coupled with disappointing jatropha harvests, prompted a swift exit by Ethiopia’s biodiesel developers.

The government is keen to revive interest in biofuels and is pinning its hopes on the private sector to finance new projects. It is offering tax holidays and free land leases for up to seven years to biofuels developers. According to Nadew Tadelle who runs the recently created biofuels private enterprise unit at the Ministry of Water and Energy, the government hopes biodiesel production may reach 450m litres a year within the next five years, up from virtually zero currently.

A 15,000 litre-per-day biodiesel processing facility was scheduled to be commissioned in February. It’s the first of several planned processing units by African Power Initiative (API), with backing from Saudi Arabia’s Al Romaizan family and Pegasus Capital in the US. It plans to reach a total processing capacity of 2m litres per day by 2020.

Already, the project covers 1m acres of degraded land, which will be extended to 4m acres in the future. “We will buy seeds from the people,” says API’s Marcos Bitew. “This project is bringing together everyone – capitalists, the Ethiopian government, the development people.” The company will pay farmers for seeds at a fee determined by the price of diesel.

Ethiopia is particularly keen to substitute biofuels for imported diesel. “Every fuel is imported and so currently around 75 per cent of our export earning goes towards the import of oil,” says Tadelle. Ethiopia’s fuel bill weighs heavily on its current account and foreign currency reserves. It currently has reserves to cover only 2.2 months’ worth of imports – almost half the 4.3 months it had in 2010-11.

The Ethiopian government is carrying out demonstration projects in the hope of attracting international investment. According to Michael Tesama, head of projects at Ethiopia’s biofuel directorate, 24m jatropha seeds have been distributed this year and there are already around 100m jatropha trees in Ethiopia. “We want to show the farmers how they can collect the product and at some point we will show this to private investors,” says Tesama.

It is well established that jatropha can grow in Ethiopia, even in arid areas. It’s been grown for non-biodiesel purposes for many years and is referred to locally as “ayderkie” and “yedinber shimagilie”, meaning “drought resistant” and “border mediator”, indicating its use as a hedge.

However, biofuel crop cultivation is only allowed on “marginal land”, which tends to be very arid. While jatropha can grow in arid areas, yield and the oiliness of seeds can be badly affected. Indian biofuel company Emami Biotech found that while its jatropha trees planted in Ethiopia’s Oromia region in 2009 survived, they grew very slowly. The company was allocated 11,000 hectares and planned to invest $83m in jatropha plantations, but the project was abandoned in 2011.

The UK’s Sun Biofuels had a similar experience in the Benishangul Gumz region. It was granted 80,000 hectares in 2006 to grow jatropha but abandoned its plans three years later citing low rainfall and poor soil quality as the main reasons for bad harvests.

API is confident that biofuel yields will be sufficiently high for its biodiesel project. “Our yields are very high. Even if we got small yields per tree, the sheer scale [of the project] will make up the difference,” says Marcos Bitew. The project’s partners are working with Yale University Green Chemistry Department on research and development.

The government insists that only marginal land is used for biofuels cultivation so that it does not compete with agriculture. However, the definition of “marginal” is far from exact.

“They do not have a stated criteria for what is marginal land,” says Brigitte Portner from the Centre for Development and Environment at the University of Bern. “Marginal land in their sense is just land that is not being used agriculturally but in most cases it is used – it’s just that it’s being used by pastoralists to graze cattle or the local people use it to collect firewood. It’s just that it’s not intensive agriculture there.”

It’s also difficult to enforce rules on where biofuels can be cultivated. Food crops tend to take precedence over biofuels as they command a higher price, but research by the Environment for Development initiative found that cash crop production can be negatively affected by biofuel crops as growers allocate up to a third of their land to biofuels.

This can wipe out the trade balance benefits of biofuels as cash crops are targeted at the export market. The researchers found that “although both exports and imports show a decreasing trend following biofuel expansion, the decline in exports is greater than imports, indicating worsening of the trade balance”.

This may pose a national policy dilemma, but for individual farmers biofuels may help food security. Research has found that calorie intake is higher in households that also produce castor beans, a biodiesel crop. These households also experience 25 per cent shorter periods of food shortage between harvests, as biofuels can be grown when food crops cannot. At a micro level at least, biofuel crop cultivation may be a complement, rather than competitor to food in Ethiopia.

http://onlineethiopia.net/2015/02/ethiopia-plans-to-revive-biodiesel-production/

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Diageo’s Meta Abo tripled production

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Addis Ababa  February 26, 2015 – 

http://www.ena.gov.et/en/index.php/economy/item/449-diageo-s-meta-abo-tripled-production

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Statement on the UK’s development relationship with Ethiopia

February 26, 2015 -

Ethiopia is delivering impressive progress towards the Millennium Development Goals meaning the needs of the country are changing as it experiences strong economic growth and increasing domestic revenue.

Recognizing Ethiopia’s growing success, the UK will now evolve its approach by transitioning support towards economic development to help generate jobs, income and growth that will enable self-sufficiency and ultimately end poverty.

This will go alongside additional funding for specific health, education and water programmes – where impressive results are already being delivered – resourced by ending support for the Promotion of Basic Services programme.

The UK remains firmly committed to poverty reduction in Ethiopia. This transition in approach does not affect the amount of aid DFID will provide to Ethiopia in 2015/16.

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Montero declines participation in Ethiopian graphite project

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26th February 2015

TORONTO  – TSX-V-listed Montero Mining and Exploration on Thursday announced that it had declined participation in the Moyale graphite project, in Ethiopia.

Montero had in August entered into a binding agreement with Ethiopia-based Hulager General Import and Export to acquire up to an 80% interest in its fully owned Moyale project. The agreement provided Montero six months to complete legal and technical due diligence to its satisfaction and was also subject to regulatory approval.

“The Moyale graphite project is a property that merits exploration with good geological and metallurgical characteristics but did not meet our due diligence criteria. We continue to focus on our high quality REE [rare earths element] and phosphate assets and advance these via strategic partners,” Montero president and CEO Dr Tony Harwood said.

Toronto-based Montero is focused on the Wigu Hill REE project, in Tanzania, and its phosphate properties in South Africa.

http://www.miningweekly.com/article/montero-declines-participation-in-ethiopian-graphite-project-2015-02-26

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Experts discuss reducing negative impacts of pesticides

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Addis Ababa, 26 February 2015  -

Various experts drawn from the Ministry of Agriculture, Birdlife International, Ethiopian Wildlife and Natural History Society (EWNHS), Horn of Africa Regional Environment Centre and Network as well as other Non Governmental Organizations extensively deliberated on how to reduce the negative impacts of pesticides on migratory soaring birds and other biodiversity in the Central Rift Valley Ecosystem of Ethiopia.

They as well discussed the safe use and mitigation of pesticides in a recently held four-day workshop at the Haile Resort, Hawassa.

During the workshop, EWNHS Executive Director Mengistu Wondafrash told participants that migratory soaring birds, along the flyway of Rift Valley/ Red Sea, are under threat due to illegal hunting, poor waste management, tourism, agricultural intensification and the like.

According to Mengistu, birds are good indicators of climate change. Hence their flyway should be protected from any dangers with a view to conserving and perpetuating the biodiversity and ecosystem of world.

“Globally banned pesticides like persistent organocholorine such as DDT and Endosulphan are being used across the country. As such bans are often ignored due to lack of awareness and information,” he added.

Regarding the level of awareness of the side effects of pesticides in Ethiopia, Mengistu noted that as it did not go deep into society, extensive awareness building is crucial for smallholders.

Presenting a paper on challenges associated with obsolete pesticides, an expert from the Ministry of Agriculture Shimelis Hassen pointed out that inadequate storage and poor stock management, donation or purchase in excess of requirement, product bans, pest resistance, weak enforcement, among others are the main reasons for the stockpiling of obsolete pesticides.

“So far Ethiopia has avoided and disposed of 3,050 tons of obsolete pesticides in cooperation with international donors,” he reiterated.

At the workshop, Dr. Bayeh Mulat on his part presented a paper on Integrated Pest Management (IPM) as a means to reduce negative impacts of pesticides in the environment as part of Sustainable Agriculture. In his paper, he noted that IPM is the best option to reduce the harmful effects of pesticides throughout the country.

A number of research papers on Pest and Pesticide Management, Registration and Monitoring of Pesticides in Ethiopia, Policy on Safe Use and Legal Frameworks, among others were presented for discussion in the course of the workshop.

At the end of the workshop, the experts agreed to enhance awareness raising activities towards the negative impacts of pesticides on human beings, the environment and migratory soaring birds, promote the concept of safe use of pesticides and Integrated Pest Management (IPM), among others.

It was learnt that the Rift Valley/Red Sea flyway is the second most important flyway for migratory soaring birds in the world. Among over 1.5 million soaring birds of 37 species, five are globally threatened.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17897:experts-discuss-reducing-negative-impacts-of-pesticides-&catid=52:national-news&Itemid=291

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Amhara distributing 300 mln qtls of fertilizer for 2007/8 harvest season

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Addis Ababa, 3 March 2015 -

The Amhara Regional State Agriculture Bureau said it is distributing 300 million quintals of fertilizer for the 2007/8 harvest season.

Bureau Crop Development and Technology Promotion Business Process Owner, Dr. Shimelash Yeshaneh, told WIC today that the fertilizers being distributed to farmers are urea and sulfur-coated urea.

Some 1.5 million of the total number of quintals of fertilizer are urea, he pointed out.

According to Dr. Shimelash, DAP fertilizer will be fully replaced by sulfur-coated urea and won’t be utilized this harvest season as it was proved less productive.

Wide-ranging activities are underway to develop various crops on more than 4 million hectares of land in the 2007/08 EC harvest season, Dr. Shimelash indicated.

More than 3.6 million farmers are expected to participate in the development activities, he said.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17962:amhara-distributing-300-mln-qtls-of-fertilizer-for-20078-harvest-season&catid=52:national-news&Itemid=291

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Dr. Tedros meets Prince Fahad Bin Mugrin Bin Abdul Aziz of Saudi Arabia

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Addis Ababa -

Dr. Tedros held discussions with a delegation led by Prince Fahad Bin Mugrin Bin Abdul Aziz of Saudi Arabia and owner of Recon International Africa Company.

The delegation included Emrullah Turanli, Chair of Tasyapai, Turkish giant in construction and infrastructure development.

Prince Fahad on the occasion noted Recon International Africa and its partner Tasyapai’s interest to invest in Ethiopia in infrastructure development particularly in rail way, airports and road construction.

In addition, the two partnering companies are interested in hydroelectric power generation, hospitality sectors.

Dr. Tedros in his remark noted the historical and unique relations between Ethiopia and Saudi Arabia and emphasized the need to further strengthen it through trade and investment.

Dr. Tedros said “despite an increase in Saudi investment it is not as one would expect it to be given the historic bilateral relation and geographical proximity between the two countries.” He added that Ethiopia’s fast growing economy and its around 90 million population combined with countries of the region provides huge market opportunity for investments in Ethiopia.

He said Ethiopia is making huge investment in railway; road and power generation because of its firm belief that developed infrastructure would make the economy more competitive.

He underlined that the sectors chosen by the two companies are key areas of development stressing that the Ministry of Foreign Affairs and other relevant offices would avail support to bring the projects to a successful end.

Dr. Tedros highlighted that despite an increase in Saudi investment it is not as one would expect to be given the historic relationship and geographical proximity between the two companies.

Recon International Africa is currently making huge investment in Djibouti, South Sudan, Somalia, Kenya and Uganda in construction of roads and building of houses.

The delegation is undertaking discussion with Ministry of Transport on ways to engage in the construction of the new airport in Mojo, Oromia Regional State.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17944:dr-tedros-meets-prince-fahad-bin-mugrin-bin-abdul-aziz-of-saudi-arabia&catid=52:national-news&Itemid=291

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Manufacturing: Ethiopian unit of Dutch brewer Bavaria to start sales

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Ethiopian greenfield brewer Habesha, majority-owned by Dutch brewer Bavaria NV, said it plans to start selling beer in the second quarter of this year to tap rising domestic demand that has attracted global brands.

http://www.theafricareport.com/East-Horn-Africa/manufacturing-ethiopian-unit-of-dutch-brewer-bavaria-to-start-sales.html

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Government hints diminishing interest in beverage industry

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The expansion project was carried out at an outlay of USD 119 million

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CEO of Diageo Global delighted over investment in Ethiopia

Following the coming of giant international breweries to the country, the beverage industry in Ethiopia has been showing growth in the past couple of years which in turn is attracting international business figures like Ivan Menezes, Chief Executive Officer (CEO) of Diageo Global, seen here schmoozing  –  http://www.thereporterethiopia.com/index.php/news-headlines/item/3225-master-brewer-mingling-with-locals  – who were in town this week to oversee his subsidiary in Ethiopia. However, this fast-paced expansion exhibited in this industry might no longer be the case in the foreseeable future.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3215-govt-hints-diminishing-interest-in-beverage-industry

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First test shows Kenya’s huge water find too salty to drink – TRFN

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By Katy Migiro and Chris Arsenault

NAIROBI/ROME, Feb 27 (Thomson Reuters Foundation) –

Tests on a vast aquifer found in Kenya’s drought-wracked Turkana region show the water is too salty to drink, a government official said on Friday.

The 2013 discovery of underground lakes the size of the U.S. state of Delaware, according to satellite imagery, was hailed as a chance for the arid northern region to finally feed its people.

At the time of the discovery, Kenya’s water minister said the “newly found wealth of water opens the door to a more prosperous future for the people of Turkana and the nation as a whole”.

But the first test results from Lotikipi, the largest aquifer which is close to Kenya’s border with South Sudan, have been disappointing.

“The water is not fit for human consumption,” said Japheth Mutai, chief executive officer of the government-owned Rift Valley Water Services Board, which is responsible for providing water in the region.

The underground water would have to be desalinated — an expensive and energy intensive process — before it could be used for human consumption, livestock or irrigation, Mutai said.

The test well, drilled 350 metres underground, showed salt levels seven times higher than the safe limit allowed by the World Health Organization (WHO), he said.

“The numbers don’t look good,” Mutai told Thomson Reuters Foundation on Friday. “It is causing a lot of anxiety.”

More than a third of Kenya’s 41 million people have no access to clean water.

The country’s north is particularly poor as droughts regularly decimate livestock which traditional nomadic herders depend on for survival.

Currently one in four people in Turkana — 135,500 people –require food assistance due to repeated poor rains and conflict, the World Food Programme’s spokeswoman Challiss McDonough said. Malnutrition rates are above the emergency level of 15 percent.

A stable water supply from the 250 billion cubic metres of water thought to be in Turkana’s underground lakes could help mitigate these recurring hunger crises.

The government is “still holding out hope” that other wells in Lotikipi will find cleaner water, Mutai said, and more drilling is underway.

The U.N.’s scientific and cultural agency, UNESCO, which backed the initial satellite imaging that led to the discovery of the water, is seeking funds for a national groundwater mapping programme.

“What we did is only a small part in Turkana and the government would like to expand the mapping for the whole country,” said Abou Amani UNESCO’s regional hydrologist.

http://in.reuters.com/article/2015/02/27/kenya-water-aquifer-idINL5N0W128920150227

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Companies eye oil shale in Ethiopia

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Foreign oil and gas companies have expressed their keen interest to tap into oil shale deposits in Ethiopia, it was learnt. 

Reliable sources told The Reporter that two foreign companies recently approached the Ethiopian Ministry of Mines and are holding discussions to acquire oil shale exploration concessions in south western part of Ethiopia. The sources declined to reveal the names of the companies saying that the negotiations are at an early stage.

Oil shale also known as kerogen shale is an organic-rich fine grained sedimentary rock containing kerogen (a solid mixture of organic chemical compounds) from which liquid hydro carbons called shale oil can be produced.

Ethiopia has a huge reserve of oil shale in different localities. Delbi Moye, Illubabur zone in the Oromia Regional State is one of the localities known for rich oil shale deposit. According to the Ministry of Mines, the oil shale reserve in the south western part of the country is estimated at one billion tons.

Some years back oil shale production was not considered as a viable solution for the oil thirsty world as the price of fuel was low and the oil shale production technology was expensive. However, while the price of oil sky-rocketed and was hovering around 115 dollars a barrel, companies came up with a new oil shale production technology called “fracking” which is cost effective.

Fracking (hydraulic fracturing) is a well stimulation technique in which rock is fractured by a hydraulically pressurized liquid made of water, sand and chemicals to release oil from the rocks.

In the past four years American companies have been producing increasing amount of oil shale and this plumped the price of oil in the global oil market. Drilling shale oil wells is cheaper and takes less time. It takes at least two month and 50 million dollars to drill a regular oil well while it takes only a week and 1.5 million dollars to drill an oil shale well. In a recent mining conference held in Addis Ababa Kestela Tadesse (PhD), petroleum licensing and administration director with the Ministry of Mines, said that North American and European countries are producing gas and oil from oil shale by applying modern technology. “There is no reason why Ethiopia can’t produce petroleum products from the oil shale,” Ketsela said.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3223-companies-eye-oil-shale-in-Ethiopia

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Ethiopian health minister: We will discuss EU support, but we take no prescriptions

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Published: 02/03/2015 -

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Dr. Kesetebirhan Admasu [Georgi Gotev]

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Ethiopia is the champion of country ownership in development. A program designed in Brussels may not necessarily fit into the local context in Africa. This is why Ethiopia doesn’t accept prescriptions from its development partners, Ethiopian health minister Dr. Kesetebirhan Admasu told EurActiv in an exclusive interview.

Dr. Kesetebirhan Admasu has been Minister of Health of the Federal Democratic Republic of Ethiopia since 2012. He has many years of work in Ethiopia’s health sector under his belt, has overseen its reform, and has led the implementation of the country’s flagship program, the health extension program.

He spoke to EurActiv’s Senior Editor, Georgi Gotev.

Can you describe Ethiopia and its main challenges in the field of healthcare?

Ethiopia is one of the oldest countries in the world. We have a population of 90 million people, which makes my country the second most populous in Africa, after Nigeria. Ethiopia is also one of the fastest growing economies in the world. It has recorded double digit growth over the last ten or so years, and now it is the fourth largest economy in Africa.

When it comes to health, our system is organised in three tiers. At the base of the pyramid we have what we call a primary health system. It is comprised of one health centre and five satellite health posts, for a population of 25.000 people. Over the last ten years, we have massively expanded the access to primary health care. We constructed around 16,000 health posts and 3,500 health centres.

This means that on average, 95% of Ethiopians live within 30 minutes of walking distance from a health facility.

Do Ethiopians need to pay for medical treatment?

We have two systems in place. (The first is for) those who can afford pay out of pocket, but we are trying to change this in the near future. We are testing a community-based health insurance scheme which is been piloted in close to 200 districts around the country, covering a population of around 20 million. We have a long way to go before we reach the entire population, but the preliminary results are very encouraging.

The second system is that we have a set of services that are exempted from user fees, for instance family planning, immunisation, treatment for malaria, for TB and HIV. Regardless where you live, the government provides the budget for these services, and of course development assistance through various mechanisms also helps pay for those services.

At the same time, we have a system to protect the poorest of the poor. If you are categorised as an individual living under the poverty line, you are entitled to free services at all levels of the system, and it is the local authorities who pay for the services you receive.

But we believe we need to change this and we need to bring the insurance system in place. Two years ago, our parliament passed a proclamation introducing an insurance scheme for citizens in the formal employment sector. All citizens in this sector contribute 3% of their salaries, and the employer also contributes 3%.

In Ethiopia, the biggest employer is the government. But Ethiopia is a rural country, and a majority of Ethiopians work in the informal sector. We need to cover this significant portion of the population and this is why we started this pilot program.

What challenges has the Ethiopian health system dealt with recently?

Ethiopia has done remarkably well in achieving all the health-related MDG goals. Ethiopia has reduced new HIV infections by more than 90%. At the peak of the HIV epidemic at the end of the 90s Ethiopia had really suffered from high incidence of HIV infections. But because of the concerted efforts we have made, new HIV infections have gone down.

Malaria has been a huge problem in Ethiopia, causing a lot of deaths in the past, but over the last ten years we didn’t have a single epidemic in the country.

We have also reduced TB, which has been one of the top killer diseases in Ethiopia. We have also done very well in improving child survival, in fact Ethiopia has achieved its MDG goal three years ahead of schedule and child diseases have been cut by more than two third. We have also reduced maternal mortality by 69% for the last 20 years.

All this was possible because of the innovative health service delivery model we have introduced in the country, which is considered by many as a model for Africa and the rest of the developing world.

One example: training doctors takes a lot of time, training nurses and midwives can take four or five years. The best way to avail services and have a huge return on investment is to train low-level heath workers who can provide some of the basic services such as immunisation, family planning and treatment of some common diseases.

That was why the country decided to introduces its new cadres, called the health extension workers. We have trained and deployed 38,000 health extension workers. Those are government-salaried high school graduates with one-year training in essential health skills, and they are recruited from the same communities where they go back to serve. And all of them are females. Introducing a female health extension worker in every village has helped the country improve health outcomes.

If you take, for instance, family planning, in 2000, only 6% of married women were using modern family planning services. Today, 42% are using modern family planning methods. I can give you a number of examples of achievements thanks to these health extension workers.

You mentioned innovation, and this reminded me that actually you are called Mr. Innovation.  How was it possible to achieve such results in such a short time?

In Ethiopia, there are a few things we do differently. The first one is that we are the champions of country ownership in development. Even though it is with good intentions, there are things that are designed and prescribed to poor countries like in Africa, but a program designed in Brussels or Paris or New York or London may not necessarily fit into the local context in Africa. So we don’t accept prescriptions from our development partners, regardless of whether they are well intentioned or not. We truly believe in country ownership, meaning countries designing their own strategies, coming up with their own ambitious plans.

Country ownership is translated into primarily national plans. In Ethiopia, when we develop our national plans, we engage all our development partners. We set targets and we are always told: these are too ambitious, they cannot be achieved. But we always say that if we put all our efforts in these ambitious plans, we might end up achieving those ambitious goals.

I can give you an example. In 2003, we had a huge malaria outbreak in the country. And many people died. In Ethiopia, malaria is seasonal, meaning it happens just after the rainy season, when farmers have to harvest their produce. So having a generalised epidemics costs not only the lives of people, but it also affects the economy.

In 2005 we said OK, we are going to scale up the delivery of mosquito nets to every household in the country. So the target was to distribute 20 million mosquito nets to 10 million households, two at least per house.

At the time, we had no committed money, we had no infrastructure to deliver so many mosquito nets throughout the country, but we believed that by having such a massive intervention, we would be able to significantly reduce the epidemic.

Some partners said that this is silly. But at the end of the year, we managed to distribute 18 million mosquito nets, two million short of the target, but nevertheless a massive achievement in its own right.

A similar example is when we said we will construct 3,500 health centres in the country in just five years. People were asking, “How is that possible?” After five years, we constructed 3,000 health centres, 500 short of the target, but again, it was a massive achievement.

We told our partners, the European Development fund, GAVI, the World Bank, if you help us raise capital for 1.500 health centres, we will be able to mobilise resources to match those numbers. That was how it was possible to construct this massive number of facilities in such a short time.

But what makes Ethiopia unique is that we engage communities. We organise people, particularly women, to build on the social and cultural networks we have. Three years ago, we started a new initiative called the ‘Health Development Army’. This is an army of 3 million women volunteers across the country, that is organised in small groups, to talks about their health, to talks about the health of their children and how they can rally support to improve the health of the community members.

By using this army of women, we managed to increase the uptake of critical services around the country, especially those who for historic reasons have not been well taken care of, like (being able to) give birth in health facilities. Five years ago, only 5% of women were giving birth in health facilities. Why? Because of tradition, because of culture and religious reasons, women like to give birth at home. But in rural Ethiopia, the likelihood of a woman dying from pregnancy-related complications is very high.

Despite all the efforts we made, the service didn’t really pick up. But when we introduced this Health Development Army, the innovations came from them. In Ethiopia women have coffee ceremonies during labour, have a porridge-eating ceremony after birth. Unless these things are availed in the facilities, they believe something wrong can happen to the baby and the woman. So the women from the Health Development Army said, “If you let us avail these cervices in the health centres, women will come.” And this innovation is now working.

You said “we don’t accept prescriptions”, but you work with donors. Since we’re having this conversation in Brussels, can explain what your relationship with the European Commission is?

We work with donors. Ethiopia has received unprecedented support from its development partners. When you deliver, when you demonstrate that plans you have developed, the strategies you have set in place, the policies you have designed to deliver, donors always support you. This is what we always try to demonstrate whenever we discuss with donors our track record. We deliver, we account for every support we have received, and we are also accountable to the community we are serving.

I’m here as part of the ACP health ministers’ meeting. We have deliberated the progress ACP countries have made toward the MDG goals, we have discussed the post-MDG health-related issues, what should the priorities should be, and how we can further increase our collaboration.

I have also met with Commission officials to discuss bilateral support. The EU has been supporting the Ethiopian health system, particularly during the emergencies in the past, but two years ago they, also started supporting maternal and child programmes in Ethiopia. We are discussing support for the health sector in the eleventh EDF. We will continue to work with officials here to support our own plan.

When the EU provides sector support, it means there are no prescriptions. Your plan is good enough to be supported, and what we expect to deliver is results. So it’s a result-based financing arrangement we are discussing to put in place.

http://www.euractiv.com/sections/development-policy/ethiopian-health-minister-we-will-discuss-eu-support-we-take-no

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Bridge built over Awash River inaugurated

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Addis Ababa, 28 February 2015 –

A new bridge built over the Awash River along the Ethiopia-Djibouti road at a cost of 240 million birr obtained from the government of Japan inaugurated today.

Transport Minister, Workneh Gebeyehu, said at the inauguration ceremony that the new bridge will play a significant role for the mobility of goods to and from Port Djibouti.

Ethiopian Roads Authority Public Relations Director, Samson Wondimu, on his part said the new bridge, which replaced the old one, has 9.3 meters width and 145 meters length.

According to Samson, the bridge was constructed by Japanese based Sato Kiyo, with the consultancy of Central Construction, which is also a Japanese firm.

With a capacity to carry out 40.8 tons and allow two vehicles to cross at a time, the new bridge serves 22, 000 vehicles daily, it was learnt.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17934:bridge-built-over-awash-river-inaugurated&catid=52:national-news&Itemid=291

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Countdown to the 18 COMESA Summit

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The biggest annual event in the COMESA calendar is set to take place this month in Ethiopia when Heads of State and Governments of the 19 Member bloc of countries hold their 18th meeting. The COMESA Summit will convene on 30th and 31st March 2015 at the Africa Union Commission Headquarters in Addis Ababa.

The Summit which is also referred to as the Authority is the supreme policy organ of the COMESA and meets once a year. It is responsible for the general policy direction and control of the performance of the executive functions of the organization. During the Addis Summit, the Prime Minister of the Federal Republic of Ethiopia H.E. Hailemariam Desalegn will take over the reins of COMESA Chairmanship from the incumbent H.E. Joseph Kabila Kabange, President of the Democratic Republic of Congo.

The theme for this year’s Summit is “Inclusive and sustainable industrialization”. This theme was chosen through consultations between the COMESA Secretariat and the incoming Chair of the Authority the Prime Minister of Ethiopia. The main thrust of the theme is to address industrialization in a holistic way. This is by focusing on all factors that influence and impact on industrialization such as infrastructure.

Preceding the Summit will be the Council of Ministers meeting. This forum is the second in the hierarchy of COMESA policy organs. Its mandate is to monitor COMESA activities, including supervision of the Secretariat. This forum also holds the mandate of recommending policy direction and development and its decisions are binding to all Member States.

The curtain raiser of the policy organs fora will be the 34th Meeting of the Administrative and Budgetary Committee which kicks off on 20 March 2015. This will be followed by the Intergovernmental Committee (IC), the COMESA Business Council (CBC) forum, the Council of Ministers, EPA Council of Ministers and the 14th Meeting of the Ministers of Foreign Affairs.

The Intergovernmental Committee will bring together Permanent or Principal Secretaries designated by each of the 19 Member States. It is responsible for the development of programmes and action plans in all fields of co-operation except in the finance and monetary sector. Owing to its heavy workload, this meeting will run for three days beginning from 22 to 24 March 2015.

The IC will review progress reports on Trade and Customs, Infrastructure (Airspace Integration; River Nile Projects; and Construction of the Border Markets), report on financing COMESA Programmes from COMESA Institutions and Co-operating Partners, Progress Report on the Implementation of the COMESA Micro Small and Medium Enterprises Strategy, Co-operation among Member States in the Manufacturing of Essential Drugs, Draft COMESA Industrial Policy, Draft COMESA Monitoring and Evaluation Policy Directive.

The COMESA Business Council which is the voice of the private sector in COMESA will host a two day open forum whose key theme is Combating Illicit Trade- Taking Action for Industrial Competitiveness. This meeting will be co-hosted with the Ethiopia National Chamber of Commerce.

http://www.comesa.int/index.php?option=com_content&view=article&id=1442:countdown-to-the-18-comesa-summit&catid=5:latest-news&Itemid=41

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Using Alternative Ports Proving Beneficial to Nation:Businesspersons and Maritime Authority

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Addis Ababa Mar 05, 2015 –

http://www.ena.gov.et/en/index.php/economy/item/476-using-alternative-ports-proving-beneficial-to-nation-businesspersons-and-maritime-authority

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Enhancing agricultural growth key to reducing poverty

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Addis Ababa Mar 05, 2015 – 

Ethiopia should further consolidate the agricultural growth to continue reducing poverty, economists said.

The economists ENA have interviewed said that the achievement gained in poverty reduction since 2000 is mainly originated from the consistent economic growth driven by agricultural growth.

According to the latest World Bank poverty assessment, poverty in Ethiopia fell from 44 percent in 2000 to 30 percent in 2011, which translated to a 33 percent reduction in the share of people living in poverty, underpinned by high and consistent economic growth.

Associate professor at the Civil Service University, Dr. Teshome Adugna told ENA that measures taken by the government towards reducing poverty has brought tangible result.

He suggested that it is important to open industries that produce value added agricultural products, since these kind of industries create more market for farmers and encourages the transformation to industrialization.

In addition from the agricultural growth, the huge public investment by the government on poverty reduction projects and provision of basic services contributed for the reduction, he said.

The allocation of 70 percent of the government’s budget for poverty reduction projects and the increase in life expectancy to 60 years from the previous 41 displays this fact, according to him.

Another economist, Mohamed Adem said that the government need to change the rain fed crop production system to a more modern one in a bid to enhance the development.

Further improving public investment on poverty reduction projects and basic services also need to be undertaken to enhance the growth thereby reduce poverty, he added.

Special priority should be given for people who are more vulnerable to poverty and help them to get away, he said.

According to State Minister of Finance, Dr Abreham Tekeste, the government has set target to pull more people out of poverty in the coming five years through the second growth and transformation plan.

Ensuring fair distribution of wealth, expanding provision and expansion of basic services, creating more jobs and enabling situation for giant industries to operate in the country are among the activities.

 http://www.ena.gov.et/en/index.php/economy/item/472-enhancing-agricultural-growth-key-to-reducing-poverty

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Institute to conduct research on aflatoxins, toxin contaminates grains

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Addis Ababa March 05, 2015 –

http://www.ena.gov.et/en/index.php/economy/item/473-institute-to-conduct-research-on-aflatoxins-toxin-contaminates-grains

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In over-built potash sector, tiny segment commands premium

Excess production capacity over-hangs the price of potash, but its premium form may offer upside that investors have yet to cash in on.

Sulfate of potash (SOP) is a chloride-free fertilizer suited to sensitive crops such as fruits and nuts. Standard SOP traded over five years to mid-2013 in northwestern Europe for 20 percent more than granular muriate of potash (MOP), but that premium averaged 50 percent in 2014 as supplies became short and MOP prices fell, said Paul Burnside, manager of fertilizer analysis at consultancy CRU.

“Demand has proved to be very sticky and consumers have accepted that SOP prices aren’t going to fall,” Burnside said.

Global SOP production is 5 million tonnes annually, but demand may be 10-12 million, according to Potash Ridge Corp , a company developing a 645,000-ton Utah mine.

“You can take all the SOP projects on the drawing board and it won’t make a dent in that demand-supply deficit,” said Chief Executive Guy Bentinck during the Prospectors & Developers Association of Canada convention.

Norwegian nitrogen producer Yara International owns a 17 percent stake in IC Potash, which plans a $1 billion SOP mine in New Mexico.

“We see strong growth for SOP and an underlying weakness in supply,” said Yara’s Bernhard Mauritz Stormyr.

Yara and Allana Potash are also gearing up their own potential SOP production.

Major producers include Compass Minerals International , which produces SOP from salt water ponds in Utah and Belgium’s Tessenderlo Chemie NV, which combines sulfuric acid with MOP to make SOP.

New production could force out higher-cost supplies and, if the premium falls enough, expand demand as consumers switch to SOP from MOP, Burnside said.

Investors aren’t excited about SOP yet.

Shares of IC Potash and Potash Ridge have plunged 28 percent and 68 percent since mid-2014. Potash Ridge cut jobs and management salaries.

“Juniors have not received much attention from investors given general market apathy, particularly for those with capex in the billion-plus range,” said analyst Spencer Churchill of Paradigm Capital.

Compass is expanding production to match U.S. demand, but further volumes could dramatically change market dynamics, said Keith Espelien, senior vice-president of plant nutrition.

The biggest fertilizer company, Potash Corp, isn’t convinced about SOP.

“Right now the premium is there,” said Chief Executive Jochen Tilk in late January. “Will it be there down the road? We really don’t know.”

http://www.reuters.com/article/2015/03/04/mining-pdac-potash-idUSL1N0V12XN20150304

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Ethiopia: Allana seeks partner to produce premium potash

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Canada’s Allana Potash Corp said on Tuesday it will talk with Norwegian fertilizer producer Yara International and three other companies about sharing costs and output in its plan to produce premium fertilizer in Ethiopia.

A partnership would involve Allana’s plan to produce sulfate of potash (SOP), a niche, premium product that is in short supply, unlike the commodity muriate of potash (MOP).

We want to move pretty fast on this because we think there’s a huge latent potential there

Yara would be a logical partner since it is pursuing its own SOP project in Ethiopia and owns land that adjoins Allana’s.

Both projects would depend on the same road, port and power infrastructure to be built.

Allana released a positive pre-feasibility study on Monday for SOP production at its Danakhil site, where it also plans to build a $642-million mine to produce 1 million tonnes of MOP annually.

Chief Executive Farhad Abasov said the company will decide within weeks whether to structure its 1-million-tonne, $787-million SOP project as a joint venture, subsidiary, or spinoff.

It will then talk to Yara about combining projects, but is also speaking to two other fertilizer producers and an industrial company.

“There are a lot of synergies as you can imagine” with Yara, Abasov told Reuters at the Prospectors & Developers Association of Canada convention in Toronto.

“It probably makes sense to combine it and produce, say, 1 million tonnes for both companies.”

Yara released a study last month confirming potential for 600,000 tonnes of SOP annually at its site. It could not immediately be reached.

SOP is a chloride-free fertilizer useful for sensitive crops like fruits and nuts.

The company would sell its SOP to China, where SOP sells for more than double the MOP price, Abasov said.

“We want to move pretty fast on this because we think there’s a huge latent potential there.”

Allana aims to secure financing for MOP construction by mid-2015, and start building a mine by next year.

MOP production could start by 2018, with SOP output following a year later.

Allana signed a partnership for the MOP mine last year with Israel Chemicals Ltd.

Allana’s MOP mine would face competition from new capacity built by Potash Corp of Saskatchewan, Germany’s K+S AG and others.

Concerns about too much global MOP capacity make SOP a useful option, Abasov said.

http://www.theafricareport.com/East-Horn-Africa/ethiopia-allana-seeks-partner-to-produce-premium-potash.html

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Histadrut, ICL negotiations fall apart

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Meanwhile ICL’s situation continues to deteriorate…. 

Talks between Israel Chemicals Ltd. and Histadrut labor federation, attempting to stave off a general strike in the South and a wave of planned layoffs, break down after one day.

THE DEAD SEA WORKS in Sdom, the world’s fourth largest producer and supplier of potash products, is owned by Israel Chemicals Ltd.

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Negotiations between Israel Chemicals Ltd. and the Histadrut labor federation, attempting to stave off a general strike in the South and a wave of planned layoffs, broke down on Wednesday after just one day.

The Histadrut blamed ICL for refusing to backtrack on its plans to fire 140 workers from its Bromine Compounds plant in Ne’ot Hovav (formerly called Ramat Hovav), which the company says is unprofitable. The layoffs go into effect on Sunday.

For its part, the company management said it was not aware that talks were over until it heard about it in the media.

“The unions entered the negotiations as part of a game of deceptions, and they left it once the show was over,” the company said.

The decision, the company warned, is detrimental to all the company’s employees who are spending their days striking instead of getting paid.

ICL said it offered generous compensation or an early retirement package to those getting laid off, but warned that failure to reform the plants would lead to their closures, which would leave far more people without work.

The Histadrut once again turned to Prime Minister Benjamin Netanyahu, who is acting finance minister, to ask him to use the state’s “golden shares” in the company to strike the agreement. Israel holds shares with special voting rights, but the company argues they are not relevant for the issue at hand.

Last week, after staging massive protests and blocking traffic in several southern cities, the Histadrut declared a general labor dispute in the South. Legally, that will allow it to put the entire region on a general strike starting on Thursday, March 12.

http://www.jpost.com/Business/Histadrut-ICL-negotiations-fall-apart-392965

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PM resists pressure to intervene on Israel Chemicals

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Netanyahu will not take any action perceived as favoring Israel Corporation, regardless of the political price.

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Prime Minister Benjamin Netanyahu is resisting pressure from Israel Corporation (TASE: ILCO). Before going to the US, he refused to hold a discussion, or to promise to hold one later, on anything to do with Idan Ofer and Israel Corporation’s interests, despite alleged hints to him by various parties that such readiness would lead to concessions by Israel Chemicals (TASE: ICL: NYSE: ICL) management, which would be presented as a victory for the workers and a retreat by management from its positions, thereby halting the workers’ demonstrations and restoring quiet to the south. Two weeks before the elections, this couldboost support for Netanyahu and the Likud.Nir Gilad is representing Israel Corporation controlling shareholder Idan Ofer to the government. Sources close to Netanyahu stated that before leaving for the US, given the battles leading to changes made by the past two governments to rectify several historic distortions that had created major advantages for Israel Corporation, and in view of the sensitivity on social issues on the part of the public, which would be aware of any underhanded action in favor of the wealthy, the prime minister said that he had no intention of granting favors to Israel Corporation and its leader in any matter or at any political price whatsoever.

This includes any oral promise that, if re-elected, he would consider the possibility of amending the Law for the Encouragement of Capital Investment. Ofer and Gilad believe that amendments to the law dating from Yuval Steinitz’s term as Minister of Finance are harming Israel Chemicals and its subsidiaries. Netanyahu also refused to express any willingness to discuss the possibility of revisions in the level of royalties deviating from the exact formula included in the arbitration ruling given two years ago, even if recommended by the Sheshinski 2 Committee, although these have not yet reached the Knesset. Nor will he, if elected, intervene or expedite the proceedings for extending the license date or granting a new franchise on better terms ahead of the expiration of the current franchise in 2030.

At the office of the Ministry of Finance Accountant General and the Budget Director, staff work has already begun on setting the terms for the franchise termination date, due to the company’s need to make long-term investments. Netanyahu, his confidants say, said this even though he is well aware of the enormous political price that the demonstrations in the south, which have also reached the central region, are liable to cause for the Likud.

Before his trip, Netanyahu charged Minister Silvan Shalom with coordinating efforts to bring about a solution and a lull in relations between Israel Chemicals management and the workers. Shalom held meetings with all the parties representatives of the Histadrut (General Federation of Labor in Israel) and the factory in the south all of whom he has known for many years, including Nir Gilad, appointed Accountant General by Avraham Shochat of the Labor Party, who was Minister of Finance in the government of Yitzhak Rabin. Gilad remained in his position after Shalom became Minister of Finance. As far as is known, Shalom repeated during his meeting with Gilad that no talks would take place beyond the matter itself, and that any matter that would have to be brought up for discussion concerning Israel Corporation would be dealt with at the proper time. According to Shalom’s officials, Gilad accepted the position of the minister, who had been asked to mediate between the workers and management, and indeed refrained from mentioning other matters.

The efforts by Shalom, who formulated five principles accepted by the parties as a basis for meeting, did lead to the beginning of renewed negotiations between the parties, but yesterday these talks also fell apart. Nevertheless, Netanyahu, in his role as minister of finance, was a party to the matter, and led the discussions that were followed at the beginning of last week by a letter sent by Ministry of Finance legal advisor Yoel Briss to Israel Chemicals CEO Stefan Borgas. The letter contained legal wording asking for information “for the purpose of considering the use of the state’s rights in Israel Chemicals conferred by the state’s special share in the company.”

This is a way to pressure the company by threatening to use the state’s golden share in Israel Chemicals, according to which the company cannot independently make decisions to close production lines or detract from the production of chemicals from the Dead Sea. There is an internal dispute on this in the Ministry of Finance. Accountant General Michal Abadi-Boiangiu, Deputy Attorney General Avi Licht, and Briss support the use of the golden share to prevent Israel Chemicals management from closing production lines, a possibility resulting from layoffs at the Bromine Compounds subsidiary. Government Companies Authority director Ori Yogev and apparently also budget director Amir Levy oppose this option, while director general Yael Andorn, who led the Ministry of Finance’s opposition to Israel Corporation’s demand for cancelation of the golden share in Zim Integrated Shipping Services Ltd., including an appeal to the Supreme Court against the ruling by the Haifa Labor Tribunal, which accepted a significant proportion of the demand by Israel Chemicals and some of its workers to cancel the golden share, is undecided.

The main problem with carrying out the threat to use the golden share is that the company, according to its official statement, does not plan to close any production lines or detract from the production of products from the Dead Sea. It is aiming at introducing streamlining involving employees enjoying high salaries, who will be retired with good terms. The company is also maintaining the independence of its personnel decisions, particularly in view of the fact that it has already “paid” heavily for those decisions in previous negotiations with the workers and the Histadrut.

It is known that pressure is being exerted on Netanyahu simultaneously by senior people in Likud, party officials, local council heads in the south identified with Likud, and company workers, who are warning that if the government does not act quickly to intervene and end the crisis to the workers’ benefit, it could have a very bad effect on voting for Likud in the south and among workers all over Israel. “You’re burning the south,” they threaten Netanyahu, “and the south will burn Likud.” At the same time, Histadrut officials, headed by chairman Avi Nissenkorn, although they say they have no political motives, are busy trying to weaken Netanyahu in the elections and strengthen Isaac Herzog’s Zionist Union party.

http://www.globes.co.il/en/article-pm-resists-pressure-to-intervene-on-israel-chemicals-1001016286

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Ethiopia to build oil, gas pipeline

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Ethiopian Ministry of Mines announced that the country is preparing to build an oil and gas pipeline to export its natural gas produce abroad.    

Various studies have confirmed that there are about 4 trillion cubic meters of natural gas deposit in the Kalub and Hilala areas of Somali region.

Ethiopia and Djibouti had signed a memorandum of understanding for the pipeline building project.

According to ENA, a company is also engaged in a study to build a pipeline for transporting oil import from Djibouti port into the country. This pipeline is hoped to reduce the country’s expenditure in oil import via vehicles.

Djiboutian ambassador in Ethiopia told ENA that the newly built port at Tajura will be instrumental for Ethiopia’s other exports.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17974:ethiopia-to-build-oil-gas-pipeline&catid=52:national-news&Itemid=291

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Chinese Company to Build Textile, Garment Factory with Over 15 Million USD

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Addis Ababa March 04, 2015 – 

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Shaoxing Mina Textile Company said it would build a textile and garment factory in Sebeta, Oromia Regional State, with an outlay of over 15 million USD.

Company CEO, Wei Chang Jun said a dying and printing factory that has been under expansion on five hectares of land will also be completed within months as 95 percent of the equipment have already been imported from Italy and South Korea.

This was disclosed after President Mulatu Teshome held talks today with CEO Wei Chang Jun here in Addis Ababa.

The president said on the occasion Ethiopia has been giving prime attention to supporting investors that engage in the manufacturing sector.

The country has favorable investment atmosphere, cheap labor, market and geographical location, he added.

President Mulatu noted that the Sebeta railway and the expressway planned to connect the town with the capital city will further enhance investment.

The textile and garment factory plans to export its products to Europe, USA, Thailand, Turkey and other African countries, it was learned.

Upon going fully operational, the textile and garment factory would create 5,000 jobs.

http://www.ena.gov.et/en/index.php/economy/item/471-chinese-company-to-build-textile-garment-factory-with-over-15-million-usd

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Newly Established Research Center to Assist Gov’t Development Goals

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The center, which is to work under EDRI, will have a wide focus area and will collaborate with a number of stakeholders working on implementing Ethiopia’s Climate Resilient Green Economy strategy.

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Newai Gebreab, executive director of EDRI and economic advisor for Prime Minister

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An Environment and Climate Research Center (ECRC) to engage in undertaking policy oriented research inside the Ethiopian Development Research Institute (EDRI) as an input for policy makers, was officially launched last Monday February 23, 2015.

The center was established in partnership between the EDRI, Environment for Development Initiative (EfD) and Global Green Growth Institute (GGGI). It will be built upon EDRI’s long-running collaboration with EfD in Environmental Economics research.

The establishment of the center was initiated more than a year ago within EDRI with the main aim of helping attain the target of the government of reaching middle income country status by 2025 in a green and climate resilient way by providing research based findings, according to Haileselassie Medhin, (PhD) coordinator of establishment process of the center and researcher at EDRI.

ECRC’s core functions include undertaking policy-oriented research on the economics of climate and environment in Ethiopia, conducting real-time impact evaluation of the Climate Resilient Green Economy (CRGE) strategy’s implementation process, and serving as an interaction hub for research and policy, according to the statement from the center.

It is overseen by a steering committee (SC), which has three members including Newai Gebreab, executive director of EDRI and economic advisor to Prime Minister Hailmariam Dessalegne in the rank of minister, Gunnar Kohlin (PhD) director of EfD and Myung Kyoon Lee (Prof) director of Knowledge Services Department at GGGI.

The center will also have a National Advisory Committee (NAC) with representatives from government offices and non-government stakeholders involved in the design and implementation

of the CRGE strategy including ministries, government agencies, universities and research institutions, civil society and the private sector.

The Centre expects to involve more than 40 fulltime and par time researchers in the planning and implementation of its programs, most of them are PhD holders and trained in different international academic institutions, according to Haileselassie.

The CRGE strategy was initiated in 2011 with the ambition of making the country, which has a low carbon emission, a middle income economy by 2025. And has been driven by seven sectoral teams involving 50 experts from 20 leading government institutions under the leadership of the Prime Minister’s Office, including the Environmental Protection Authority, and the EDRI.

“The center will finalize the plan which will lead to implementation by July, 2015 and will be fully operational by the beginning of the 2016,” Haileselassie told Fortune. “The center by itself will source its budget from different institutions by proposals of the researchers,’’ he added.

The Norwegian government, through the GGGI, will contribute 500,000 dollars for the planning phase, according to Melaku Gebreeyesus, Advisor of GGGI in Ethiopia. EfD will also make a significant core support to the center, and also continue its support to specific research projects, according to Haileselassie.

Research focus areas of the center include sustainable environment, sustainable agriculture, forestry, industrial and climate policy, urbanization, water and energy. The center will work with the Ministry of Environment and Forestry, Ministry of Irrigation, Water and Energy, Ministry of Industry and local and international universities.

The combination of EfD’s academic excellence and a rich network of local and international scholars, GGGI experience in global policy process, and EDRI’s critical mass of highly qualified researchers and central place in Ethiopia economic policy research will be instrumental for the center to achieve its objectives according to Haileselassie.

The ECRC functions will be delivered as four main programs: Policy Research and Impact Evaluation program, Policy Interaction and Communication program, Data Management and Knowledge Repository program and Capacity Building program; each overlooked by the director of the center.

As of last Wednesday February 25, 2015 Haileselassie, who played a critical role in the establishment of the center, was assigned as a director of the ECRC.

EfD currently has research centers hosted by academic and research institutions in nine countries including Ethiopia. It has been working with the EDRI for the past 10 years since the institute was

established while GGGI has been supporting the Government of Ethiopia in both the Green Economy and Climate Resilient components of the CRGE strategy.

http://addisfortune.net/articles/newly-established-research-center-to-assist-govt-development-goals/

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 Petroleum Price Fall Confuses Demand, Supply for Ethiopia’s Transporters

 

Ethiopia sees 12% 12% increase of supply of fuel annually.

Asrat Dergu, a minibus driver for the past 12 years, always travels from Adama (Nazareth) to Kality terminal in Addis Abeba three times in day, transporting commuters in his 15-seat vehicle specifically named High Roof.

He has been driving this minibus for the past three years; as the owner of the vehicle is his close friend. But in the past two months, the schedule of his daily trips was reduced to two, following the fuel shortage in the towns located on his way from Adama to Kality.

He fills his vehicle twice a day, totaling 40lts but now he is facing a problem of refueling at Modjo, Bishoftu (Debre Ziet), Dukem, Akaki, and Kality.

“I spend one or two hours a day in the long queues at the gas stations, so I always miss my turn,” he explains.

Following the global price decline, gas prices were adjusted twice in Ethiopia since December 2014, which saw most of the gas stations getting closed for fear that the price would decline even more, causing them to lose money on gas already purchased before the price decline. This has become a challenge for drivers across the country such as Asrat.

The Ethiopian Petroleum Supply Enterprise (EPSE) buys fuel from international suppliers such as the Sudanese Sudan Petroleum Corporation, Saudi Arabia and KPG from Kuwait. It sells to the nine distributors in the country. The Enterprise supplies fuel based on the assessment of demand of the country and maintains and administers the national petroleum reserve. In 2012, EPSE succeeded its predecessor, Ethiopian Petroleum Enterprise, with a paid-up capital of 500 million dollars in kind and cash. The National Petroleum Reserve Depots Administration also preceded the EPSE.

The nine distributors who receive fuel from the enterprise are Oil Libya, Total, National Oil Ethiopia (NOC), Yetebaberut Beherawi Petroleum (YBP), Kobil, Dalol Oil S.C., TAF Oil S.C, Nile Petroleum, and Wadi Alsundus. The last two are Sudanese Companies. A tenth company, licensed by the ministry of trade (MoT) is soon to join.

During the 2013/14 fiscal year, the nine petroleum companies distributed 2.6 million tonnes of fuel, worth 48.9 billion Br. Of the total amount, 207,819tns was benzene, worth 4.2 billion Br, 256,739tns of kerosene, worth 5.2 billion Br and 1.7 million tonnes of diesel,worth 32 billion Br.

From the nine distributors, four are major distributors in the country including NOC, Oil Libya, Total and YBP, accounting for 90.4pc fuel distribution of the country. They distributed 190,836tns of benzene and 1.36 million tonnes of diesel in the 2013/14 fiscal year. But the frequent shortage at gas stations mean that people like Asrat may lose revenues of up to 800 Br a day, by his own estimation.

The recent notable decline in the international oil price is considerably affecting the transporters and businesses in Ethiopia. The price of oil was 76 dollars in 2008. This year, the average price of oil drawn in June, 2014, at 111.8 dollars per barrel, declined to 97 dollars in September, 2014. Now the international price of oil stands at 56.85 dollars.

The Ethiopian government makes price adjustments of gas every month. The government has made five price adjustments on fuel prices in 2014. In September 2014, the price of benzene was 20.47 Br per litre. This price reached its peak of the four at 20.99 Br per litre in May 2014. Then, when the global market showed a decrease, the price went down to 19.95 Br per litre, as adjusted in November 2014 to 19.41 Br per litre. As of the December adjustment, it currently stands at 17.43 Br.

The current price adjustment has regulated the price of diesel, to be sold at 16.10 Br per litre from 17.49 Br. Similarly, benzene is arranged to be sold at 17.43 Br, down from 19.41 Br, while kerosene has gone down to 14.13 Br, from 15.40 Br. The price for a litre of each kind of gas by the beginning of September 2015 had been 19 Br for diesel, 20.99 for benzene, and 16 Br for kerosene.

“Last week, I had been searching for fuel in the towns between Addis Abeba and Ambo and Hawassa and Butajira. But I could not find any in the Total, NOC, or YBP stations that I went to. It worries me that I could run out of fuel before reaching Addis Abeba,” said Solomon Mulatu, a distribution minibus driver for a food company selling traditional Ethiopian food items and spices.

“After passing a couple of towns, I managed to get diesel at Butajira, where I had to pay 18 Br even though the actual price is 16.10 Br,” claims Solomon.

Ali Siraj, state minister of Trade attributes the problem to the miss-match of demand and supply of fuel in the country.

There is a problem of fuel in the country following three main reasons said Ali, one is the increase of economic flow of the country, the expansion of the transport sector and the increasing demand of fuel by the mega projects.

The demand of fuel is increasing at a 12pc rate annually and we are increasing the supply in line with the growth of the demand, stated Ali.

During the first six months of the current fiscal year, the nine distributors distributed 1.3 million tonnes of fuel with a total cost of 25.9 million Br, where the largest market share went to NOC with 33pc, Total followed with 23.1pc market share and Oil Libya came in third with 22pc while Nile was last with a 0.84pc market share. Between January 9, 2015, and February 8, 2015, 252,198tns of fuel was distributed,where the last six months average supply was 221,000tns.

“We are confused as to where the fuel is going as the distribution is increasing,” said Alemayehu Tsegaye, public relation officer at the EPSE. “We are in the process of forming a committee to asses where the fuel went after we received continuous claims from many people, especially from the regional towns.”

“The current problem is mainly caused by the increased demand of fuel by the mega projects in the dry season because most of the projects become operational after the end of rainy season,” said Ali.

Last year, the government spent three billion dollars on petroleum import, according to Ali, nearly all of the 3.2 billion dollars collected from exports. That has not abated the worries of the drivers.

“I spend an hour and a half daily at the fuel stations to get benzene, which led me to losing at least 100 Br in daily income,” said Tariku Bezabeh, a taxi driver from Dire Dawa.

Ali attributes this to limitations in distribution, the number of fuel stations as well as the limited number of distributers.

The problem in Ambo is related to the existence of one fuel station only as the others are closed following the disagreement between the suppliers and the dealers, according to Ali. In Adama, the problem is mainly occurring because there are a limited number of fuel stations in the town as it is the Ethiopia Djibouti corridor, said Ali.

The number of vehicles in the country has increased from 132,000 to 520,000 within the past 10 years, which cannot be accommodated by the existing nine distributers and 654 filling stations, he claims.

In neighboring countries, the profit margin of fuel is no less than one Birr while in the Ethiopia’s case, it is five to nine cents, which is the main reason for the private investors not joining the sector, said an official from one of the nine distributers.

Furthermore, the existing companies such as YBP, one of the major fuel suppliers operating with 100 dealers across the country, are facing a problem of limited vehicles to transport the fuel to regions.

“We have a problem of vehicles to transport the fuel to the regions of the country,” claims Tesfaye Mekonnen, CEO of YBP.

As a sustainable solution, the government is licensing 140 additional fuel stations and two distributers, which will be fully functional during the current fiscal year, stated Ali. In addition, the government is also working on the establishment of suppliers by the private sector with foreign innovators with a joint venture.

“There is a major problem of planning and coordination in the import and distribution of fuel,” said another official from one of the distributers who preferred to stay anonymous. “It is known that the mega projects need more fuel at this time and it is obvious to the importing Enterprise and distributers.”

As a solution, the government is planning to increase the consumption of fuel mixed with ethanol to 20pc from 10pc. In addition, the finalization of the Djibouti to Ethiopia fuel pipeline will be a sustainable solution for the fuel problem we are facing and may solve the problems faced by the likes of Asrat and Solomon.

http://addisfortune.net/articles/petroleum-price-fall-confuses-demand-supply-for-ethiopias-transporters/

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Adama Hotelier Joins the Petroleum Distribution Business

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The new venture by the owner of Sisay International Hotel will become the 10th distributor in the country

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All Way Petroleum Plc, the tenth petroleum supplier, is going to start petroleum distribution within two weeks.

The company, which has an authorized capital of 30 million Br, is owned by Sisay Woldyes, owner of Sisay International Hotel, located in Adama. He is also one of 100 dealers who work with Yetebaberut Beherawi Petroleum S.C (YBP).

The company secured the license in July 2014 from the Ministry of Trade (MoT) and it will commence distribution on March 9, 2015, Sisay told Fortune.

The depot of the company is located in Adama, 99Km south east of the capital, in Oromia Regional State on 20,000sqm plot of land. All Way has 16 depots, each having a capacity of 50,000lts, which will be used for benzene, diesel and kerosene. The MoT requires that a supplier have a reserve capacity of at least 500,000lts of fuel.

“We are registering dealers who are going to work with us,” said Desalegn Alemayehu, general manager of All Way.

With the addition of All Way, the number of oil distributing companies in the country has reached10, including National Oil Company (NOC) established in 2003, YBP found in 2002, Dalol Oil, established in 2009, Oil Libya, Total, who has been in the business over for 60 years, Kobil, Wadi Al Sundus, Nile Petroleum and TAF Oil S.C.

The 10 distributers receive fuel from the Ethiopian Petroleum Supply Enterprise (EPSE), which has been supplying fuel to the local market as the only body that buys fuel from international suppliers such as the Sudanese Sudan Petroleum Corporation, Saudi Arabia and KPG from Kuwait since its establishment in 2012, a result of the merger of the Ethiopian Petroleum Supplier Enterprise (EPSE) and the National Petroleum Depot Administration (NPDA).

“New distributers are encouraged by the government as the sector has only nine distributers while neighboring countries such as Kenya have 30 distributers,” said Ali Siraj, state minister for Trade. “As the sector demands huge investment, local companies are not motivated to join the sector.”

During the 2013/14 fiscal year, the nine petroleum companies distributed 2.6 million tonnes of fuel worth 48.9 billion Br. Of the total amount, 207,819tns was benzene, worth 4.2 billion Br, 256,739tns of kerosene worth 5.2 billion Br, 1.7 million tonnes of diesel worth 32 billion Br.

From the nine distributors, four are major distributors including NOC, Oil Libya, Total and YBP, accounting for 90.4pc of the fuel distribution of the country and the remaining is covered by the other five companies.

“To encourage new entrants into the sector, the government is working on the possibility that the private investors can work with foreign companies through joint venture,” Ali told Fortune.

During the six months of the current fiscal year, the nine distributors distributed 1.3 million tonnes of fuel at a total cost of 25.9 million Br, where the largest market share went to NOC at 33pc, followed by Total at 23.1pc and Oil Libya at 22pc. Nile came in last with 0.84pc of the market share. Between January 9, 2015 and February 8, 2015 the distributed fuel accounted for 252,198 tons.

The price of fuel was adjusted by the MoT last month, which regulated diesel to be sold at 16.10 Br, down from 17.49 Br. Similarly, the price of benzene went down to 17.43 Br, down from 19.41 Br, while kerosene went down to 14.13 Br from 15.40 Br. This was followed by a problem of fuel supply in the market.

Fuel distribution was controlled for long by longstanding companies until 2002, when NOC and YBP entered the market.

Prior to the aforementioned date, only four suppliers, Mobil, Agip, Shell and Total were operating in the country over 30 years with license from the then Ministry of Trade and Industry.

http://addisfortune.net/articles/adama-hotelier-joins-the-petroleum-distribution-business/

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Ethiopia’s $5bn project that could turn it into Africa’s water powerhouse

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Government, PetroTrans to start court battle

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The Hong Kong-based Chinese oil and gas company, PetroTrans, and the Ethiopian government are going to start court litigation at the International Arbitration Court of the International Chamber of Commerce over terminated natural gas development project.

The Ethiopian Ministry of Mines and PetroTrans will for the first time appear before the Geneva-based International Arbitration Court (IAC) of the International Chamber of Commerce on March 15.  Reliable sources told The Reporter that legal counsel for both parties will appear before the arbitration court and the hearings will begin on March 15.

According to sources, the Ministry of Mines is represented by a prominent Ethiopian lawyer, Zewdineh Beyene Haile (PhD, JSD), Managing Partner at Dr. Zewdineh Beyene Haile Law Office. The law office specializes in the fields of international arbitration, private equity investment, petroleum and energy, construction, banking and finance, real estate, public-private investment projects and project financing. PetroTrans is represented by a Swiss law firm, Lalive. PetroTrans first filed the arbitration case to IAC in December 2012. So far the court has been considering claims and counter claims submitted by the two parties as well as various motions and counter motions. Sources said thousands of pages of documents have been presented to the court by the parties.

PetroTrans and the Ethiopian government embroiled into disagreement following the latter’s decision to terminate the petroleum development agreement signed by the two parties in 2011. In July 2011 the Ethiopian Ministry of Mines awarded the Calub and Hilala gas fields found in the Ogaden basin in South East Ethiopia. The ministry also granted PetroTrans eight oil exploration blocks in the Ogaden basin. The petroleum exploration and development agreement was signed by the then Minister of Mines Sinknesh Ejigu and John Chin, founder and president of PetroTrans.

All the concessions were previously held by the Malaysian oil and gas giant, Petronas. In 2011, the ministry put up an international tender after Petronas relinquished the concessions and pulled out of Ethiopia. PetroTrans won the tender and took over all the concessions measuring 93000 sq.km of vast arid land.

While PetroTrans was undertaking preliminary work on the project the Ministry of Mines revoked the petroleum development license in June 2012 saying the company was not expediting work on the project.  At that time Sinknesh told The Reporter that the company was engaged only in paperwork. “We do not tolerate a broker company anymore,” Sinknesh said.

This is an allegation PetroTrans utterly denies.  In a statement sent to The Reporter in December 2012 the company said it was analyzing and interpreting the geological data that were collected from the concession by other companies. We hired consultants that were doing the work. We were about to start field work when the ministry terminated the agreement,” the company said.

The company previously said it took the case to the arbitration court following its repeated attempts to amicably resolve the problem with officials of the Ministry of Mines failed. After revoking the license officials of the Ministry of Mines declined to talk to executives of the company.

Both officials of PetroTrans and the Ministry of Mines declined to comment.

After snatching the gas fields and the eight oil exploration blocks from PetroTrans the Ministry of Mines awarded all the concessions to another Chinese company, Poly GCL in November 2013.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3255-gov’t-petrotrans-to-start-court-battle

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Lack of trucks blamed for Djibouti port congestion

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Domestic cargo, fertilizer, and food aid shipments to Ethiopia are facing hold-ups due to congestion caused by the massive quantities arriving in Djibouti port and non-availability of trucks.

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Currently there are 7 vessels at the anchorage waiting for berth while 3 others are alongside, suffering from lack of trucks. Another batch of four vessels is expected in the coming days, rendering the port to become even more congested, according to the Port of Djibouti.

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Djibouti Port management expressed the seriousness of the situation, ie dry bulk vessels’ congestion at the anchorage due to long stay of ships, which are at berth and stated that the main reason of this congestion is the lack of trucks to uplift the direct delivery of bulk cargo.

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During a meeting held in Djibouti on February 25, Saad Omar Guelleh General Manager of Djibouti Port said that the transport problems should find sustainable solution. The meeting gathered more than 20 executives both from Ethiopia and Djibouti, involved in the Maritime sectors such as transporters, operators, receivers, and representative of the Ethiopian embassy.

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“It is our common concern to find joint solutions to clear the vessels. The Port committee is ready to support all with maximum possibility.
We must avoid demurrage fees for our Ethiopian recipients and the ship owners,” the port said in a statement.  “The Port also accepts all alternatives to release the vessels and speed up the operations by using outside warehouses. The Port of Djibouti would like to prevent and avoid the unnecessary cost for our customers,” further reads the statement.

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Explaining how serious the situation is, the statement notes ‘the bulk terminal warehouses are full and additional vessels are coming. We remain by protesting to our client that our facility is underutilized. At this moment, we have problem and grain is coming. We require around 300 trucks per day for our all activity that lifts 12,000mt/day. If we get more trucks, it is better.’

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The General Manager further said that alongside vessels are suffering and the anchorage is becoming congested. “This situation is becoming difficult and if it continues it will affect the Port’s image. We should work hard and find solution within one week. The Port is ready to give you all necessary support and facilitate to berth the vessels and store the cargo both inside or outside warehouses at your convenience so as to avoid unnecessary costs,” added the general manager.

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According to the management, it is very important for the Port of Djibouti to know in advance the planning of the vessel coming by commodity for the next three months minimum, so as to prepare suitable berth. While, the owners of the commodity on their part need to get the transporters ready and available on time, the Port also needs to know which commodities are in priority for Ethiopia be it aid cargo, domestic cargo, fertilizer and wheat or others commodity so as to plan accordingly.

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The Port of Djibouti also calls out to the Ethiopian Embassy in Djibouti, Ethiopian Road Authority and Ministry of Transport and all concerned parties to urge transporters and others to serve the vessels appropriately.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4987:lack-of-trucks-blamed-for-djibouti-port-congestion&catid=54:news&Itemid=27

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Ethiopia to manufacture prototype tractor

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The Center of Excellence for Engineering (CEE) a national welding training center under the Ministry of Education, disclosed that it will start manufacturing prototype tractors. The center will also train engineers in manufacturing molds of different parts of tractors.

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Wondwossen Kiflu, State Minister of Education, said, “Our agriculture must be supported by modern agricultural tools and we want our engineers to design and make tractors here.’’

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Wondwossen made the above remark on 21 February at a certificate awarding ceremony to 33 welding professionals that were trained by the German economic cooperation organization GIZ Ethiopia.

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The Swedish charity organization Industries for Africa will assist CEE technically and financially to materialize the center’s dream of manufacturing tractors locally.
The prototype tractors will be released after a year and half, according to plans of the center. Then after, CEE will have more manufacturing units across the nation in order to assemble tractors abundantly. “After making the sample tractors, we will talk to other stakeholders to support us to intensify the work,” Wondwossen said.
“It is a reason to be proud as a nation that we will start the production of tractors. That helps our farmers who use traditional methods of farming to use modern technologies that save energy and increase production,’’ he added.

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Currently tractor parts are imported and assembled in Ethiopia. When manufacturing the tractors locally  begins, farmers will have a big opportunity to have their own tractors at lower cost not to mention that saving on foreign currency.
Assefa Kidane, CEE Manufacturing Expert told Capital that the center is not targeting just on manufacturing prototype tractors but it also plans to manufacture prototype milling machines.
According to Assefa, small enterprises will have a lead role in manufacturing and supplying the tractors to regions when mass production begins.

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“When we finish fabricating the sample tractors, we’ll train small enterprises how to manufacture it and then they will make and sell it to the farmers with fair price.”
“We hope that when small enterprises start manufacturing the tractors, a lot of jobs will be created for many people.  Beyond that, using other traditional tools for agriculture will be history as farmers can buy tractors for reasonable price. And this will help the country to increase its agricultural production.’’

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Recent evidences of mechanization showed that there are around 12,000 tractors in the country. This amount is very small relative to 80 percent of the population that is engaged in agriculture. Availability of home made tractors with low coast will boost the demand of farmers to buy it and that increases their production.
Recently, Ursus SA, a Polish producer of agricultural machinery, concluded a deal with the Metal and Engineering Corporation (MetEC) to provide a tractor assembly line for Ethiopia.

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The company signed a deal with MetEC to supply 3,000 tractors back in September 2014.

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During the initial stage the company will deliver 180, 80, and 50 horse power tractors to Ethiopia in addition to 110 and 140 horse power tractors that will be delivered later.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4984:ethiopia-to-manufacture-prototype-tractor&catid=54:news&Itemid=27

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Ethiopia to offer new National Stadium tender

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The Federal Sports Commission of Ethiopia has revealed it will accept tenders next month for the delayed Olympic-sized 60,000-seater national stadium in Addis Ababa dubbed Adey Abeba.

“The process is open to both local and foreign contractors and should take no more than a month to complete,” NasirLegesse, director of the Information and Communication Directorate, at the sports authority told Zawya Projects in an exclusive.

He added that the largest stadium in Ethiopia, which will be built over 67,000 square meters at an estimated cost of $100 million (2,033 billion birr), is financed by the Ethiopian Government and will take an estimated two years to complete.

The design, currently being finalized by local firm MH Engineering plc, is expected to take its inspiration from international stadiums such as the Beijing National Stadium, (the Bird’s Nest), said Legesse.

He nevertheless declined to comment on the reason for the retendering and selection of the new design firm in October 2014.

Previous joint-bid design winners, German firm Laboratory for Visionary Architecture (LAVA) and local firm JDAW Consulting Architects and Engineers were ousted from the project; JDAW has filed a lawsuit before Ethiopian courts seeking to have an injunction against the sports commission.

The new project will overtake the pole position from the country’s current Addis Ababa International Stadium, which has a 30,000-seat capacity.

http://www.thereporterethiopia.com/index.php/sports/item/3229-ethiopia-to-offer-new-national-stadium-tender

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Checkered flag for direct Ethiopian floriculture sale in European markets

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The Ethiopian Horticulture Producers and Exporters Association (EHPEA) got recognition from the Global Partnership for Safe and Sustainable Agriculture (Global GAP) for its adherence to a high standard code of practice in floriculture production.

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Global GAP applauded EHPEA upon the successful recognition of its Code for Sustainable Flower Production Silver level version 4.0 as an acceptable trade practice of international standard. Global GAP announced in a statement, that the EHPEA Code for Sustainable Flower Production Silver level version 4.0 is successfully recognized as an equivalent of a GLOBAL GAP certificate.

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Tewodros Zewdie, Executive Director of EHPEA, told Capital that EHPEA and Global GAP have been working for a year to conclude the recognition process.
According to EHPEA, the letter signed by Dr. Kristian Moeller, Global GAP Managing Director, declared that EHPEA has the right to contract Certification Bodies (CBs) that have achieved indicated ISO accreditation.

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See also:  The 6th HortiFlora trade show to see large participation

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Gebremichael Habte, Fresh Produce Business Expert, told Capital that the new recognition will minimize the cost of certification that was paid to foreign certification companies. “Now local producers do not need to obtain additional certification from abroad certification bodies to sell their product in European markets,” he added.

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The recognition given by Global GAP holds as long as the conditions that dictate the Silver level version 4.0 production procedures remain unchanged.
Gebremichael advised that producers should make the best use of this opportunity to supply their product for European retail markets directly. According to the expert, the agreement will also insist local certification companies to expand their capacity.

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Global GAP’s roots began in 1997 as EuroGAP, an initiative by retailers belonging to the Euro-Retailer Produce Working Group.
British retailers working together with supermarkets in continental Europe become aware of consumers’ growing concerns regarding product safety, environmental impact and the health, safety and welfare of workers and animals.

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To reflect both its global reach and its goal of becoming the leading international G.A.P. standard, EuroGAP changed its name to Global GAP in 2007.
Their solution to the product safety question led to harmonize their own standards and procedures and develop an independent certification system for Good Agricultural Practice (GAP).

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The standards helped producers comply with Europe-wide accepted criteria for food safety, sustainable production methods, worker and animal welfare, and responsible use of water, compound feed and plant propagation materials.
Harmonized certification also meant savings for producers, as they would no longer need to undergo several audits against different criteria every year.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4981:checkered-flag-for-direct-ethiopian-floriculture-sale-in-european-markets-&catid=54:news&Itemid=27

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Ethiopia producing sufficient plastic pipes meeting local demand

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Addis Ababa –

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Ministry of Industry disclosed that local plastic factories are meeting the countries demand for plastic pipes.

Yonas Abate from the Ministry said they are working with the Ethiopian Customs and Revenues Authority and Ministry of Finance and Economic Development to implement an import substitution scheme for plastic pipes.

The plastic sector has made remarkable growth in the past five years, jumping from an annual output of 28,656 tones of product five years ago to 61,656 in this year. Impressive achievement has also been registered by the sector in creating job opportunities and linking markets.

Some of the producers told fanabc.com that power shortages and lack of notification for demand on the side of the government, which is the biggest customer of their products, are some of the challenges in the sector.

There are currently close to 200 plastic factories in Ethiopia.

http://www.fanabc.com/english/index.php/news/item/2364-ethiopia-producing-sufficient-plastic-pipes-meeting-local-demand

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Turkish Akgun Group ready to muscle up its plant

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Oyap Ethio-Industry and Trading Plc. an Akgun Group subsidiary, is scaling up its PVC manufacturing to have stronger presence in the local and international market domains.

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Oyap Ethiopia Industry and Trade, a PVC profile manufacturer based in Burayu town in the western outskirt of Addis Ababa, is undertaking an expansion work to double its production. The expansion will be completed in the coming three months, according to the company’s officials.

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The company that was established ten years ago is a pioneer PVC producer.
“We are producing 20,000 meters of PVC per day. This will be doubled after three months,” Ufuk Akgun, a board member of Akgun Group said. The company head said that they are working to be the leading PVC producer in Africa with views of expanding its reach of international markets.

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Currently, the company is supplying its product for governmental and private construction projects in the country. “Our production is higher than the local demand. Due to this we are exporting the product to other countries,” Akgun said.
“When the expansion is completed, the company will introduce double glassing material that is produced locally,” he said.

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According to Akgun, the company vies to supply its products, which are produced according to western standards, for the government housing project. Previously, the government has been using imported PVC materials for its housing projects.
Akgun said that Oyap also has a plan to raise its capital to 40 million dollars in the coming couple of years. “We will undertake another expansion on the PVC manufacturing plant that will be completed in the coming one and half year,” he added.
“Our target is to be the leading PVC producer in Africa,” Akgun added. “We are going to install high-tech machineries on the latest and the coming expansions,” he said.

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The company wants to supply markets in neighboring countries on its immediate market reach widening plan, and it also plans to export to European and North American markets in the mid-term.

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Currently, Oyap-Ethio Industry and Trading Plc. and Akgun Construction, a sister company of Oyap, investment in Ethiopia has reached USD 10 million.
Akgun Construction, a member of the Akgun Group based in Istanbul, is the construction wing of the Turkish company that mainly operates in Germany and Turkey.

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The two companies that are under Akgun Group, a multi-billion dollar company, are the first companies that established an industry zone in Turkey about three decades ago. Akgun has businesses in Europe, US and Asia.

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Akgun Group is waiting the green light from the government to embark on setting up a giant industry zone in Sendafa, Northeastern outskirt of Addis Ababa.
“We have already accumulated the adequate finance for the project that will take place in phases,” he said.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4988:turkish-akgun-group-ready-to-muscle-up-its-plant&catid=54:news&Itemid=27

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Ethiopia’s apple production hampered by absence of seed propagation

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A crop researcher with the Ministry of Agriculture (MoA) lamented that the potential apple growing land situated in the highlands of Ethiopia remains uncultivated. 

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Asnake Fikre, Crops Research Director with MoA, told Capital that the government does not have the capacity to propagate apple seeds and it wants investors to distribute the seeds to farmers. “We firmly believe the works that have been done to start off the production are too small. We know that farmers do not get the seeds in the market because no company is interested to propagate it.”

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In Ethiopia, areas situated 1,900 meters above sea level are said to be suitable for growing apple but the country continues to import the fruit from India and South Africa instead of using potential areas in the South and Northern regions.
Currently, a kilo of apple is sold for 60 Birr in the market. Chencha, Arbaminch, supplies a small portion of the local apple consumption.

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Related article  http://eco-opia.org/2013/04/21/ample-apples/

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Asnake further mentioned the long gestation period apple trees will take before it comes to fruition.  “There is a strong tendency among farmers to choose cereal crops that give harvest in a short time and it is hard to convince them to shift to growing apples using some of their land.  But if they wait patiently for two years, apples could bring them more income.” He added that the government is conducting researches and assisting farmers to scale up the production of temperate fruits including apple.

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Getaneh Seleshi, a researcher at Holeta Research Center, said that the government is not giving sufficient backing to encourage more apple producers to go into the business. “Importing fruits that can be grown locally doesn’t make sense. The government must intensively work to convince farmers that apple production can bring large money.’’

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In related news, Israel’s Agency for International Development Cooperation (MASHAV) gave training to farmers and development agents in Bosena Warana Wareda in Debrebirhan to motivate the farmers to venture into the apple business.

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Ofer K kahani, MASHAV agriculture expert said, “We help the farmers in Butajjira and Debrebirhan to grow apples through providing trainings. We are also attempting to lure Israel investor to invest in apple farming in Ethiopia”.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4980:ethiopias-apple-production-hampered-by-absence-of-seed-propagation-&catid=54:news&Itemid=27

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GCAO Preparing Legal Framework for Public Advertisements

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Addis Ababa – 

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Government Communication Affairs Office (GCAO) said it is working to formulate a legal framework for public advertisements.

GCAO held a consultative meeting with stakeholders on challenges and solutions to advertisement works under the theme “equitable and accessible public advertisement for media development”.

During the occasion, GCAO State Minister, Ewnetu Blata, said the aim of the meeting is to identify gaps and opportunities so as to use them as inputs for the legal frame work that would be prepared by the office.

Some 40-50 federal offices spend more than 70 million birr annually for public advertisements, he added.

When the legal framework is fully implemented the private media will also benefit from subsidy and transparency, it was indicated.

http://www.fanabc.com/english/index.php/component/k2/item/2366?Itemid=674

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Ethiopia Beats Coffee Export Target with Higher Than Planned Revenue

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Country gains 307.5 million dollars with an actual export of 73,227.9 tns while expecting 269 million dollars from 73,593.5 tns of coffee

Country gains 307.5 million dollars with an actual export of 73,227.9 tonnes while expecting 269 million dollars from 73,593.5 tonnes of coffee

The half fiscal year of 2014/15 saw a success in terms of achievement in the export of coffee although it leaves uncertainty in the future of the coffee market.

The country’s plan for the first six months of the budget year was to export 73,593.5tn of coffee and gain an income of 269 million dollars. The actual export was 73,227.9 tonnes, from which a higher than targeted revenue of 307.5 million dollars was gained.

“The gain from the export exceeds the plan because the international coffee price was better in the export period,” said Getahun Bikora, coffee marketing director at the Ministry of Trade (MoT).

This year’s plan of the Ministry is to export 235,950tn of coffee to gain 862.5 million dollars.

“The new coffee is yet to come to the market and it will increase the volume of the coffee that we export,” said Getahun.

At the beginning of the fiscal year 2014/15, Ethiopia, which supplies less than five percent of the world’s coffee, was said to benefit from the plague on the Brazilian coffee. The production of Brazil’s coffee was said to decrease significantly although it only decreased by five percent.

“We did not benefit from the coffee market as we expected when we heard of the Brazilian coffee issue although we have achieved our target,” Getahun said.

The performance of the coffee that is exported according to the plan is 99.5pc and the income performance shows a performance of 114.3pc. The seventh month export of coffee was planned to be 90,483tn while 79,365tn of coffee was exported, showing 88pc performance. The gain from the seventh month export was planned to be 330 million dollars while the amount gained was 339.4 million dollars, which is 102pc of the planned performance.

In the three weeks of the eighth month, 9,120tn was exported, bringing in an income of 42 million dollars.

Ethiopia expects to produce 461,620tns of coffee this year, of which it expects to export 239,950tns for 862.55 million dollars, showing an increase of 23.6pc in volume and 20pc in revenue from the previous year.

In 2013/14, the country planned to export up to 277,500tn but has done only 190,876tn with the planned revenue falling down from the planned one billion dollars to only 717 million dollars.

The international price of coffee has been declining since mid January. The international market price of coffee on February 3, 2015, per pound was 163.6 American cents and it dramatically fell down to 137.6 American cents per pound on March 3, 2015.

“The major thing we should do is to make the price of the Ethiopian Commodity Exchange (ECX) line up with that of the international market and craft a subsidizing policy to increase the amount of export,” said Getahun.

The international coffee price is yet expected to fall well up to 120 American cents a pound, which the Ministry sees as a future challenge in the coffee market as the international coffee market does not depend on fundamental issues of demand and supply but rather on the technical issues that govern the market. These issues could be political or such.

Ethiopia stands fifth in the world with a production of 379,500tn a year, having the world’s supply share of 4.5pc in 2012/13. Out of this, the amount Ethiopia exported was 3,134 bags, which amounts to 47.5pc (180,262tn) of the total production.

The other top producers of the world are Brazil with 34.46pc share of the total coffee with three million tones of production. Next comes Indonesia with 8.75pc share having 0.76 million tonnes, followed by Vietnam and Columbia having the world’s share of 7.99 and 7.17pc with 0.69 million tonnes and 0.62 million ton as the International Coffee Organization (ICO) data indicates.

The Ethiopian coffee lacks competitive advantage in the market as it has many constraints in the marketing and producing process as experts in the sector state. Lack of traceability, quality of production and its being challenged by illegal trade are said to affect the country’s benefit from the sector.

http://addisfortune.net/articles/ethiopia-beats-coffee-export-target-with-higher-than-planned-revenue/

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BCIMR, A Djibouti Bank, Opens Office in Ethiopia

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The Bank represents about 60pc of the market share in Djibouti in teras of loans and deposits

The Bank represents about 60pc of the market share in Djibouti in teras of loans and deposits.

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Red Sea Trade & Industry Bank (BCIMR) of Djibouti opened a representative office in Addis Abeba on February 26, 2015, which was marked with an inauguration at the Sheraton Addis Hotel in the presence of Jean Pierre Gianotti, the Bank’s director general.

BCIMR is a subsidiary of Bred Banque Populaire Group (BPCE group). The French banking group bought BCIMR from BNP Paribas in July 2007. BPCE owns 51pc of the bank whereas the Djibouti government has 33pc of the share and the remaining 16pc is owned by Yemeni bank. The Bank says in its website that it operates in all market segments such as personal, business, public sector and institutional, mainly in Djibouti, Somalia, Ethiopia, Eritrea, Sudan, Yemen, and UAE. BCIMR offers its customers loans and financing, deposit and cash management, payment, trade finance, local and international guarantees.

Specializing in Trade Finance, the BCIMR offers a wide range of services to banks that cover all banking operations related to the treatment of flows in relation to international trade, according to its website. The Bank gives services such as foreign exchange transactions, Letter of Credit (L/C), international guarantees, transfers and receptions of multi-funds (SWIFT, cheque, etc.). Currently, most of the private banks in Ethiopia are clients of BCIMR, according to Ahmed.

Ahmed Abdou Mohsein, the office representative in Ethiopia, says that most of the banks in Ethiopia have a correspondent banking relation with BCIMR. Among these banks are Abyssinia, Awash, Dashen and Wegagen. The representative office will help to communicate and manage delays and documents easily and quickly, said Atakilt Admasu, International Banking Director at Wegagen.

Furthermore, the office will also provide information and facilitate investment opportunities in Ethiopia for Djibouti investors as it advances its presence in Ethiopia, said Ahmed.

It took around three weeks to furnish and open the representative office, which is located along Africa Avenue in front DH-GEDA Tower, said Ahmed, who makes all the staff of the office together with a secretary. The office received its trade license in January 2015 from the Ministry of Trade. The representative office will help its clients to save their time and money, stated Ahmed. The Addis Abeba representative office will serve as an intermediate office where clients can communicate with the Bank without leaving the country, he explained.

The BCIMR represents an average of 60pc market share in Djibouti in terms of deposits and loans and 85% of signed commitments. It has funded large regional projects such as the electrical interconnection between Djibouti and Ethiopia in collaboration with the French Development Agency.

http://addisfortune.net/articles/bcimr-a-djibouti-bank-opens-office-in-ethiopia/

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Addis Ababa, Ethiopia among Cities of the Future with a bright potential

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Addis Ababa, 8 March 2015 –

According to the annual “Wealth Report” released by global real estate consultancy Knight Frank on March 5, Ethiopia’s capital is among four cities in the world dubbed as “Cities of the Future”, based on the wealth creation opportunities they will present in the future.

The report says, “The cities featured on this spread are not those about to be listed among the world’s top 10 or even top 20 most important cities. Indeed, none of them yet boasts any billionaire residents, according to data from Wealth Insight, but their Hgh-Net-Worth Individual HNWI (millionaire) and UHNWI (Ultra High Net Worth Individuals) populations are rising, and they are locations whose influence we believe is growing strongly at a regional level. Even if they are unlikely to be on the second-home list of most UHNWIs, they should certainly be on their radars in terms of the wealth creation opportunities they will present.
Africa’s fastest-growing economy, Ethiopia, benefits from not only the political importance of Addis Ababa but also the 3.8% annual growth rate of the population within the capital. In addition to natural growth, there is vast rural urban migration, which planners predict combined could lead to the size of the city surging by 2040 to over 8.1 million.
Wealth creation has seen a near doubling of the population of HNWIs since 2007 to a little over 1,300, with one of the strongest forecast growth rates for the coming decade – with an expected expansion to 2,600 by 2024. The city is understandably witnessing severe growing pains, with public investment in transport including an overhead rail network, and construction dominating GDP growth. Relocation of existing residents to accommodate new infrastructure has caused severe stresses on some sectors of the city’s population.

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The Great Ethiopian Renaissance dam under construction on the Blue Nile is Africa’s largest hydroelectric scheme and could provide energy security – a vital component for economic development.

With the presence of the African Union headquarters (pictured to right), and the headquarters of the United Nations Economic Commission for Africa, as well as a number of continental and international organizations, the city is commonly regarded as the political capital of Africa, lending a strong diplomatic and political edge to its growing economic strengths.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18040:addis-ababa-ethiopia-among-cities-of-the-future-with-a-bright-potential&catid=71:editors-pick&Itemid=396

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Credit Facilities Overlook Medium Enterprises in Ethiopia

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The World Bank says, from the total number of medium Enterprises, only 1.9pc have access to loans

Desalegn Ambaw (left) state minister of Ministry of Urban Development, Housing and Construction, talking with Guang Zhe Chen (right) country director of World Bank at the Ethiopia SME finance event

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The World Bank (WB) group study on small and micro enterprises (SMEs), which was released on February 19, 2015 at Hilton hotel, indicates that medium enterprises are more credit constrained than micro and large enterprises in Ethiopia.

The findings of the study on demand side shows that SMEs in Ethiopia perform much worse than large firms, they are rejected for loans and more likely to avoid loan applications due to high collateral requirements, which is more severe in medium enterprises than micro enterprises.

The supply side of the study shows that medium enterprises are underserved by micro finance institutions, which cater to micro firms excluding medium firms. Large banks refuse to serve micro and medium firms for fear of lower returns and higher risks.

There is no a credit constraint at micro enterprises level because Micro finance institutions lend them. But after these micro enterprises are transformed into a middle level enterprise, reaching around 1.5 million Br capital, they are hindered from obtaining more capital for their larger projects because of their inability to meet the collateral requirements of banks, Abozench Negash, public relations officer of the Federal Micro and Small Enterprises Development Agency told Fortune.

At the same time, such middle level enterprises are unable to take credit from micro finance institutions due to the institution’s lesser capacity to render higher credit for middle level enterprises, Abozench said, adding that the agency had given emphasis to such constraints and is working with the Development Bank of Ethiopia for it to start access to credit for middle level enterprises.

Showing that in 2007/2008, 96 pc of all firms in Ethiopia’s industrial sector were micro and over half of all engaged persons were on microenterprises, the study conducted on 6,000 Ethiopian firms from 2000 to 2011 showed that large enterprises are the net job creators than medium firms. The findings from the demand side showed that in the manufacturing sector majority of paid employment is found in large enterprises.

According to the study, the reason preventing medium and micro enterprises from creating more jobs is financial constraint; credit constraint in Ethiopia is slightly higher than the Sub Saharan Africa average. The study showed that in 2012, 56 pc of the medium and micro enterprises in Ethiopia thought credit as their most important constraint than the average in Sub Saharan Africa which is 55 pc.

The banking sector in Ethiopia continues to be highly profitable and ranks higher than the Sub Saharan Africa average in profit. However, medium and medium enterprises lending in Ethiopia is on a lower side comprising only 7 pc of bank portfolio. The findings also showed that the manufacturing sector plays a limited role in overall Ethiopian economy comprising only 4.2 pc of GDP in 2012/13 and the service sector created nine times more jobs than the manufacturing sector during the period 2009/2011.

According to the findings, medium enterprises are rejected for loans, with only 1.9pc of them being able to access loans. The access rates by micro, medium and large firms are six percent, 20.5pc and 35.5pc, respectively. Fifty-seven percent of medium firms are fully credit constrained, a rate higher than in any other size group.

In 2011 among firms applying for a lone 57.3pc of the applications submitted by micro firms and 87.9pc applied by medium enterprises were rejected, the report showed.

The study recommended fostering medium and micro enterprise finance culture among banks and stakeholders, promoting innovation in financial products and lending technologies by providing incentives to commercial banks and promoting policies aimed at addressing the limitations of the current collateral regime based on accurate diagnosis of the insolvency of debtors among others to curb the financial constraint of small and micro enterprises.

The investigations and the recommendations of the research have a factual ground, however, the collateral constraints are only one among the multiple problems on the financing of medium enterprises as most of medium enterprises fail to fulfil the minimum credit requirements before reaching the collateral requirements, Eshetu Fantaye, chief executive officer of Bunna International Bank s.c, commented on the research.

SME agencies should support medium enterprises to fulfill the precredit application requirements such as credit history, tax clearances, organized financial statements, legal personality, project feasibility study and budget plan on which most medium enterprises fall short of achieving and attracting the hub of commercial banks, Eshetu added.

http://addisfortune.net/articles/credit-facilities-overlook-medium-enterprises-in-ethiopia/

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Netanyahu intervenes in Israel Chemicals crisis

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The prime minister has instructed the Ministry of Finance to seek clarifications on alleged violations of the State’s golden share.

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The Ministry of Finance is demanding that Israel Chemicals (TASE: ICL: NYSE: ICL) management provide clarifications about activities that apparently contravene the conditions of the government’s golden share. The allegations were first made yesterday by the heads of Israel Chemicals workers committees including at Bromine Compounds to Prime Minister Benjamin Netanyahu.

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The workers committees assert that Israel Chemicals did not ask the state for permission to move its activities overseas even once over the past seven years, although, according to the workers committees, this is required under the golden share terms.This morning, Netanyahu spoke about the crisis at Israel Chemicals and said that he had instructed, “The Accountant General at the Ministry of Finance to undertake a broad examination of the issue and the company’s position on the terms of the golden share in light of the company’s actions in recent years and its investments in Israel, as well as its future work plans and the recent layoffs of employees.”Shortly afterwards, Ministry of Finance legal advisor Adv. Yoel Briss today sent a letter to Israel Chemicals (TASE: ICL: NYSE: ICL) CEO Stephan Borgas demanding information about the transfer overseas of the company’s activity and that of its subsidiaries. Among other things, Briss asked for information about the moving of production lines, marketing set-ups, assets essential to the existence of Israel Chemicals, know-how and technology, other substantial activity or the conducting of such activity, and the transfer of “key service factors.”

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RELATED ARTICLES

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PM resists pressure to intervene on Israel Chemicals

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Briss is also asking whether the company plans to change the ratio between its activity in Israel, that of its subsidiaries, or that of the entire group to overseas activity.

Briss’s letter following an initial letter dated February 23 asking for information and explanations about the layoffs plan announced by Israel Chemicals. Today’s letter follows a series of assertions aimed at Prime Minister Benjamin Netanyahu concerning the breaching of the golden share terms raised yesterday by the workers committees at Israel Chemicals and at Bromine Compounds.

Israel Chemicals stated, “There is no connection between the state’s golden share in Israel Chemicals and regular management of the enterprises and the need for cutting costs at the company’s plants. The streamlining plan is designed to strengthen and safeguard the existing of the plant in Israel, while ensuring the company’s competitiveness against its major competitors in the global markets in which it operates.”

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Also see:  Israel Chemicals faces new market reality

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Combative atmosphere

The heads of Israel Chemicals workers committees attended a Likud activists meeting in Holon last night attended by many of the party’s leading activists. Dead Sea Works workers committee chairman Armand Lankri had been scheduled to take part in the major “change of government” rally in Tel Aviv organized by left-wing parties. Following Lankri’s change of plans there were allegations of political payback. Lankri who heads the Likud party in Dimona told “Globes” that he announced the cancellation of his participation in last night’s rally last Sunday after it became clear to him that the event would have a distinct political orientation. He said that contacts to set up a meeting with Netanyahu took place throughout last week. Lankri also stressed it was more important to meet Netanyahu because that was in the best interests of Israel Chemicals remployees.

The meeting with Netanyahu was also attended by Bromine Compounds workers committee chairman Avner Ben-Senior and Dimona Mayor Benny Biton and Minister of Energy Silvan Shalom. Netanyahu reportedly told those present that he would instruct the Ministry of Finance to send a letter today seeking clarifications about the golden share, and discuss the situation at Israel Chemicals at the start of today’s cabinet meeting.

http://www.globes.co.il/en/article-israel-chemicals-accused-of-golden-share-violations-1001016700

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Ethiopia’s Growing Economic Diplomacy

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http://africanleadership.co.uk/ethiopias-growing-economic-diplomacy/

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Addis Abeba Gets 100,000 cubic metres More of Water a Day

The Addis Abeba Water and Sewerage Authority (AAWSA) Water and Sewerage Development and Rehabilitation Project office has completed and availed two ground water sources and expansion of Legedadi and Dire dams that are to be inaugurated on Sunday March 8, 2015.

The first of these projects is Akaki well field, which can generate 70,000 cubic meters of water a day. The project, undertaken with financial support of 1.8 billion Br from the Chinese ExIm bank, has a total of 24 water wells. The project also included 266.3Km of main line installation, 10.5Km distribution line installation, 25.8Km of collection lines. It also included construction of six water tankers that have the capacity of holding from 1,000 cubic meters of water to 5,000 cubic meters of water.

This project has enabled one million people to get adequate water supply by bringing 100,000 cubic meters of water into the system.

The project was contracted to CGC Overseas Construction Co. Ltd, a Chinese state owned Construction Company that has been involved in water and road works in Africa.

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

Recently, it was awarded a 220Km asphalt road construction that will stretch from Dire Dawa to Dewalle, for which it will be paid 3.99 billion Br.

The governmental Water Works Design & Control Enterprise did the supervision of the project.

The second project was the expansion of two previously used dams – Legedadi and Dire dams,increased their joint capacity by 30,000 cubic meters of water a day on their existing joint capacity of 165 cubic meters a day. It has benefitted 300,000 users.

“A recent study indicates that the current demand of the city is 670,000 cubic meters of water a day; our supply still stands at 498,000 cubic meters a day,” said Tesfalem Bayu, the Project Offices head.

Fourteen thousand cubic meters of water was let into the system from different pocket area wells that were constructed in places that could not benefit from the new expansions and projects, according to him. This happened because of the limitation of the scope of the new projects.

In order to overcome the disparity between the demand and supply of water in the city, the project office is processing other projects that can let additional water supply to the system.

One of these projects is Akaki water well, which is expected to be completed by June 2015. This project is expected to let 70,000 cubic meters of water into the system and currently, it has reached 96pc completion with the remaining works being electromechanical and network installation works, Tesfalem said.

Another project in Legedadi is also expected to join the system with 40,000 cubic meters of water a day within two months’ time and it is said to benefit up to 400,000 users. Twenty water wells will also be drilled in pocket areas in the short run.

As a long-term plan, the project office is working on the study and design of Legedadi phase two, which will generate 86,000 cubic meters of water by itself.

Gerbi and Sibilu dams are also parts of the plan that can generate 73,000 cubic meters and 428 cubic meters of water a day, respectively. The former is said to take three years for construction and the latter four to five years.

In order to solve the distribution and quality problems, the office has established a customer forum that meets four times a year and discusses the problems thoroughly. The workers are also given phones through which the customers can notify problems related to cuts which allow the workers go to the place and fix any problems.

“Regarding the quality issue, the water that we let into the network contains chlorine so that it can be able to resist any contamination,” said Fekadu Zeleke, AAWSA’s water supply and distribution deputy manager. “We are also working on having high powered generators to avoid water cuts in case of electricity shortage.”

The projects that are completed are set to be inaugurated by Prime Minister Hailemariam Dessalegn.

http://addisfortune.net/articles/addis-abeba-gets-100000-cubic-metres-more-of-water-a-day/

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Ethiopia: $95m water supply system inaugurated

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Ethiopia has inaugurated a $95 million deep well water supply system capable of producing 70 thousand cubic meters of water per day for the capital Addis Ababa.

Financed by the EXIM bank of China, the Akaki water supply system would boost the city’s potable water supply to 464 thousand cubic meters which satisfies 70 percent of the over four million residents of the city.

The water system is meant to pump clean water to additional 700 thousand residents of the city where clean water shortage was the case for long time.

“We are embarking into industrial development and industrialization and we need necessary infrastructure that suits to our industrial fast growth and I think water is one of the infrastructure”, said the country’s prime minster Hailemariam Desalegn on Sunday while inaugurating one of the grand water projects.

Launched in 2005, the water system project has 26 water wells.

Chinese company, CGCOC carried out the water project which was completed ahead of schedule.

At present, clean water demand in Addis Ababa has increased to 670 thousand cubic meters per day and the high demand is caused by reconstruction activities, growing population and infrastructure development across the city.

With another water project to be inaugurated in two weeks time, the Addis Ababa Water and Sewerage Authority would increase the total water supply to the city to 504 thousand cubic meters.

http://en.starafrica.com/news/ethiopia-95m-water-supply-system-inaugurated.html

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Generating power to transform Ethiopia

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When completed, the Grand Ethiopian Renaissance Dam will eventually generate 6000MW of electricity.

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The basis of any country’s economic prospects is energy. Does it have adequate power supplies to fuel growth?

In the case of Federal Democratic Republic of Ethiopia, no effort is being spared to slash the current electricity deficit and ensure a surplus that will sustain investment and domestic consumer demand long into the future. The present 2000MW supply does not reflect the vast bounty available.  Only 35% of the population has access to grid power.

In the government’s Growth and Transformation Plan (GTP), there is a high emphasis on hydropower resource development, but with an eye also on renewable sources such as solar, wind and geothermal given their cost competitiveness.

Power generation improved by around 230% between 2008 and 2012, with six hydroelectric and wind power projects coming online. These were Tekeze (2009, hydroelectric, 300 MW), Gibe II (2010, hydroelectric, 420 MW), Tana Beles (2010, hydroelectric, 460 MW), Amerti Nesha (2011, hydroelectric, 97 MW), Ashegoda (2012, wind, 30 MW), and Adama I (2012, wind, 51 MW).

It cannot be repeated enough, but Ethiopia has enormous potential for hydro-power and geothermal energy generation. This is crucial for industrialization of the country.  Several studies have so far been carried out to estimate Ethiopia’s potential and to develop short, medium and long-term investment plans for the power sector. The government is in the process of implementation.

According to the five-year GTP, the country’s installed electricity generating capacity is expected to reach 10,000MW 2014/15 financial year. By this time, electricity coverage is expected to reach 75%.

The centerpiece today is the $4.7 billion Grand Ethiopian Renaissance Dam (GERD) which is being paid for by Ethiopians themselves. Formerly known as the Millennium Dam, it is being constructed in the Benishangul-Gumuz region of Ethiopia, on the Blue Nile River, about 40km east of Sudan. The project is owned by Ethiopian Electric Power Corporation (EEPCO) and ultimately will deliver 6000MW.

GERD is expected to be completed by July 2017 and will not only serve Ethiopia, but Sudan and Egypt as well. Both countries depend on the Nile River for their water although 85% of the river flows in Ethiopia.

The dam’s construction is expected to create up to 12,000 jobs. Approximately 20,000 people will be resettled during the course of the project.

The reservoir and dam will offer major benefits to Ethiopia, Egypt and Sudan. Egypt has for a long time held the major ownership of the water from the Nile River and prevented Ethiopia from constructing a dam. Egypt depends on the Nile for 90% of its water needs.

The main and saddle dams will also create reservoirs with an impounding capacity of 74 billion cubic metres. The regulated flow of water from the dam will improve agriculture and the impact from evaporation of water from the dam will be minimal compared with other dams in Ethiopia, which will help in water conservation.

A tripartite committee was formed in January 2012 to promote understanding and look into the benefits and impacts the project would have on the three countries.

Abundance of water resources, means that Ethiopia will become the top regional power distributor within the next the 15 years or so.

Potential hydro-power generation is estimated at 45,000MW while geothermal sources will add another 5000MW. The country is also suitable for exploiting renewable alternatives like solar and wind, particularly in the rural areas.

Closely associated with electricity, is the need to guarantee safe water supplies.

Ethiopia has huge run-off and ground water potential. However, it currently utilizes only a small portion.

Access to safe potable water in urban areas was 81.3% in 2012/13. Access in the rural areas was about 66.5%  during the safe period. The overall average of access to potable water supply was 68.45% in 2013/13.

A huge project deemed to satisfy safe water demand in the towns and rural areas was launched by the country’s first five year development plan. Accordingly, the national access to potable water supply is expected to be 98% by the end of 2014/15.

http://www.busiweek.com/index1.php?Ctp=2&pI=2877&pLv=3&srI=53&spI=20&cI=11

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Kessem Irrigation project 99% complete

Addis Ababa: March 9, 2015 –

The 2.6 billion Birr irrigation project of Kessem is 99% complete and has started operations, resident engineer of the project Jegsa Deyisa stated.

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Adama II wind farm to be completed in June

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Adama Mar 07, 2015 –

The Adama II wind farm that will generate 153mw power from wind will be fully completed this Ethiopian fiscal year, project official said.

Of the total 77 turbines installed so far, 20, each with a capacity of 1.5mw, have started to generate electricity, resident engineer, Tahgot EndeMariam told ENA.

Installation of 24 turbines will be completed and the farm will fully start power generation in June, he said.

Construction of the project, launched in 2005E.C, has reached 90 percent.

Three of turbines of the project, which will have 102 turbines started to generate electricity on trial basis in October 2014.

Thirteen- km transmission lines connected the project with a 230kv grid through the Koka substation, which is close to the major industrial centers of Adama, Mojo, Debre Zeit, Dukem and Addis Ababa.

The Adama II project is an extension of the Adama I wind farm, with an installed generating capacity of 51mw power.

The project would enable industries in Adama town and its environs get reliable power supply.

In spite of its potential to generate power from wind, the nation has managed so far to generate 171mw power from Adama I and Ashegoda wind farms with installed capacity of 51mw and 120mw respectively.

Up on completion, the 345 million USD project being underway in Adama town, 98km east of Addis Ababa, will increase the country’s power generation capacity from wind to 324mw.

http://www.ena.gov.et/en/index.php/economy/item/483-adama-ii-wind-farm-to-be-completed-in-june

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METEC manufacturing railcars for Ethiopia’s railways

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http://www.ena.gov.et/en/index.php/economy/item/482-metec-manufacturing-railcars-for-ethiopia-s-railways

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One out of Five Enterprises Draws Interest in latest privatization Endeavour

 After failing to privatize five public enterprises during the past half fiscal year, Privatization & Public Enterprise Supervising Agency (PPESA) has now been able to get an interest for the government’s share in the Ethiopian Crown Cork & Can Manufacturing Industry S.C. (ECCCMI), with an offer price of 206.2 million Br.

Crown Cork has 75pc of government share in it, with the remaining privately held.

The Agency had a financial opening on March 5, 2015, three state enterprises, including ECCCMI, Agricultural Mechanization Services Enterprise, and Bilito Siraro Farm. There were Bahir Dar Textile S.C. and Kombolcha Textile S.C. on offer, but cork was the only to get any offer.

The company that offered to purchase ECCCMI is called Fairfax Africa Fund Llc. It is a U.S. based investment firm. This is the same company that was participating in a tender to provide Enterprise Resource Planning (ERP) for Ethiopian in 2009 with Zemedeneh Negatu, Managing Partner of Transaction Advisory Service at Ernst & Young, working as a point man for the company.

The company had shown its interest to purchase the share of Crown Cork and as per this interest, it submitted its proposal to the board that was assigned by the agency to look after such cases.

“According to their proposal, they insisted to be treated as a local company so they make their payment as per the payment procedures set for local investors,” said Aseb Kebede, vice head of public relations office at PPESA.

As far as the transfer of public enterprises is concerned, the Agency has a precondition for domestic and foreign companies, which bid for the enterprises. For local companies, PPESA requires 35pc down payment and the remaining within five years, while foreign companies pay a 50pc down payment, and the rest within three years.

Ethiopia fits the high growth potential that Fairfax Africa Fund is looking for, especially in agro industry and manufacturing, which is the reason for its offer for the Crown Cork & Can Manufacturing Company, according to an email David Johns, Director of Fairfax African Fund, sent to Fortune.

“Our bid for Crown Cork includes a group of Ethiopians as partners and therefore we submitted the bid as a joint foreign Fairfax and Ethiopian investors’ partnership with Fairfax Africa Fund as the main bidder, according to statement sent to Fortune via email.

“For now, we have been helping them in facilitating and advising on matters related to the tender,” Zemedneh told Fortune.

If the company has become successful in acquiring to purchase Crown, we will have a stake in their investment.

According to Zemednhe, Fairfax African fund will spend up to 500 million Br, including the offered price to expand and reestablish the company.

The Agency’s board will soon make a decision on their proposal, said Aseb told Fortune.

During the first half year, it was reported that the PPESA lost the expected revenue of 1.3 billion Br from the transfer of enterprises to private holders; though the period was marked with a profit of 398.4 million Br profit from 27 public enterprises that are under its administration.

The Agency made 7.6 billion Br from the sale of goods and services from the 27 enterprises that it manages, down from a target of 8.6 billion Br. In addition, it has managed to make 17.3 million dollars from export from five of the enterprises under it.

http://addisfortune.net/articles/one-out-of-five-enterprises-draws-interest-in-latest-privatization-endeavour/

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Entrepreneurs awarded for positive impact on economy, environment

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Addis Ababa  March 06, 2015 –

The United Nation Development Program (UNDP) awarded six Ethiopian entrepreneurs said to sustain positive impact on the economy, community, environment, and society.

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http://www.africa.undp.org/content/rba/en/home/ourwork/povertyreduction/successstories/ethiopia-cultivating-agriculture.html

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Asec inks Ethiopia cement plant management deal

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CAIRO –  Asec Engineering and Management, a subsidiary of Egypt’s Qalaa Holdings (formerly Citadel Capital), has signed a plant management agreement with Ethiopia’s National Cement Share Company.

A leading cement plant Operations & Management (O&M) service provider in Egypt and the Mena region, Asec Engineering said the one-year contract, which is renewable for a five-year term, comes close on the heels of its successful foray into Mozambique market.

As per the deal, the company will provide full technical assistance to National Cement Share Company, one of the largest producers of cement in Ethiopia, for the operation and maintenance of the cement plant.

The Egyptian firm will also utilise its knowhow and expertise to help National Cement Share Company to boost production volumes, cut production costs, and improve product quality.

Located in the city of Dire Dawa, 450 km east of the capital Addis Ababa, the plant boasts a production capacity of one million tons of clinker per annum.

On the contract win, Asec Engineering CEO Khaled El Sebaie, said: “This is a result of the continued efforts of Asec Engineering and its ambitious plans to expand its business into Sub-Saharan Africa after its successful contract with Cimento Nacional Company in Mozambique.”

Under the contract, Asec Engineering will also introduce and implement systems for all aspects of production, quality, maintenance, warehousing and human resources, among other areas, he stated.

In addition to other regional contracts, the company also operates and maintains 10 cement production lines across 7 Egyptian plants representing 25 per cent of total cement production in the country.

http://tradearabia.com/news/IND_277198.html

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Study recommends outsourcing shipping operations

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A new study conducted to boost the logistics and shipping activities of the country has made recommendations that the government has to consider partnering with the private sector.

The study that is expected to transform the current shipping and logistics system was delivered to the government earlier in the budget year and it raised several options of make do.

According to the country’s law of shipping and multimodal service scheme, these services are state monopolies of Ethiopian Shipping and Logistics Services Enterprise (ESLSE). Sources said that the new study mentioned that working in joint venture and letting in the private sector to the business should be the directions to modernize the system.

According to sources, the government is now considering a policy amendment on the national logistics strategy. “A new policy shall be developed after the evaluation of the study,” sources told Capital.

Currently, the study is being reviewed by relevant state stakeholders and the government is to come up with a viable strategy, according to sources.

Sources said that the government is considering outsourcing the shipping lines’ management for private companies like  it does in the power and telecom sector.
Recently the government outsourced the management of Ethio Telecom to a French company and the Ethiopian Power Utility to an Indian firm.

Outsourcing management of an organization is not a new administration plan, but it was not tried here. “Outsourcing the management has been stated as a recommendation in the latest study,” sources said.

According to experts knowledgeable of the sector, they do not expect the government to give a decision to invite the private sector to invest in joint ventures or fully privatize the sector.

“Possibly the government can invite companies to invest in the sector separately or give a management contract for the shipping sector only,” experts told Capital.

According to sources, international logistics companies have shown interest to invest in the sector. Some of them have already expressed their interest to establish dry ports or depot in the country, an operation fully controlled by the government.

Chief Alemu Ambaye, Deputy Chief Executive of Shipping Sector at ESLSE, said that he does not have any information on the issue.

Mekonnen Abera, Director-General of Ethiopian Maritime Authority also declined to comment on the situation.

According to sources, government is now considering to come up with a new policy.  Even though the import-export business had registered significant growth in the past years in relation with the economic growth and commencement of huge state projects, the logistics sector is not growing at a pace parallel to developments in other sectors, according to experts.

In the past few years, however, the government has made several changes including the amalgamation of three state-owned logistics and shipping enterprises under a single body to invigorate the sector.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5008:study-recommends-outsourcing-shipping-operations&catid=54:news&Itemid=27

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Addis’ first seven star hotel

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Addis Ababa is to get another world class hospitality image before the end of the year when the AU Grand Hotel managed by Westin Hotels and Resorts inaugurates its seven star hotel in the African Union (AU) compound.

The multibillion birr investment owned by the billionaire Sheik Mohamed Hussein al Amoudi will be inaugurated before the coming European Christmas, according to an insider source. 

MIDROC Ethiopia Project Office Contracting and Management Services Plc. (MEPO), which is a collaborative partner of the MIDROC Group that develops, constructs and manages property, undertakes the construction of the hotel which is in its final stages. A two year prior cost estimation of the seven star hotel was USD 350 million. “The project cost can jump by more than 20 percent by completion of the work than the previous estimate,” the source added.

The hotel that will be the fourth international brand on the country after Hilton, Sheraton and Radisson Blu will also have several extraordinary facilities that shall serve heads of states and top officials.

“The project will be one of the top investments for the billionaire in Ethiopia,” sources at MIDROC told Capital.

On his initial investment in Ethiopia, Sheik Mohamed had established the five star luxury collection hotel Sheraton Addis at a cost of over USD 200 million. It is now approaching a two decades service mark.  Until now, no other similar facility is erected in the capital or elsewhere in the country.

MIDROC has been negotiating with one of the prominent hotel chains owner in the world, Westin Hotels and Resorts, to lease out the management of the new hotel. Westin is part of the Starwood’s Hotels and Resorts chain. It was acquired by Starwood in 1994.

Especially in the last decade, Westin has focused on expanding globally and since 2005 its number of hotels has grown from 120 in 24 countries to over 192 in 37 countries by 2013.

Sources told Capital that Sheik Mohamed had got the contractor replace the cladding recently to stay in tip-top shape with the Westin brand. Installation of the polarized glass has also commenced.

Sources also said that the billionaire has ordered MEPO, which congregates professionals from different countries, to finalize the project before the end of 2015.
For the interior work, the contractor has ordered several European companies including from Spain and Italy to supply superior quality equipment. “The improvements made on the design and replacing the cladding has  forced the contractor for more work,” the source said.

“Despite the adjustment that needs to be embodied, the project will be accomplished in the original timeframe,” sources at MEPO told Capital.
When it opens, the hotel will be the first seven star luxury facility in the country.

The African Union Grand Hotel (AUGH) is a complex, multipurpose hotel that is designed to cater presidents, diplomats and business travelers. It has suites, standard rooms, meeting rooms, restaurants and bars, swimming pool and spa, grand club, a multipurpose ballroom, business center and parking lot.

The hotel has 610 rooms including 27 presidential and 31 ministerial suites. AUGH will also have 3,500 seating capacity conference hall, which will be the biggest conference facility under a hotel business, and another one with a capacity of 2,200 seats for banquets. The hotel will also have eight medium-sized meeting rooms.

The hotel is mainly intended to accommodate high government officials who come to the capital city for meeting as well as various other reasons.

Initially, the Addis Ababa City Administration had allocated 90,000 square meters of land to MIDROC, but based on the company’s request an additional 12,000 square meter was given by the city administration for a security area and parking lots.

Sheraton Addis, the other luxury hotel owned by Sheik Mohamed, is also managed by Sheraton Hotel and Resort, which was formed in 1937 and is one of the luxury brands under Starwood.

Sheraton Addis has 294 rooms and 33 suites. This hotel has 11 conference rooms, and the biggest Lalibela Hall can accommodate 1,500 people at once.

Sheraton Addis shared the business with Hilton hosting major events and it became a  preferred  retreat for top government officials who visit the country.
MEPO has six ongoing projects including AUGH. MEPO will soon start 11 new projects which also includes an expansion project of Sheraton Addis.
Sheik Mohamed has over 70 companies in Ethiopia in different sectors.

Currently, interest of international hotel brands who aspire to join the hospitality industry is increasing.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5009:addis-first-seven-star-hotel&catid=35:capital&Itemid=27

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American Company to Build Electric Car Assembly Plant in Ethiopia

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Addis Ababa Mar 09, 2015 –

http://www.ena.gov.et/en/index.php/economy/item/487-american-company-to-build-electric-car-assembly-plant-in-ethiopia

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Corporation constructs, repairs over 7, 800 km of roads

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The Ethiopian Road Construction Corporation (ERCC) said it has built and renovated 7, 819 km of road at a cost of 1 billion birr during the past seven months.

ERCC Public Relations Head, Demeke Chane, told WIC today that the roads built and repaired across the nation by the corporation have a significant contribution for the economic growth of the country.

Shekosh-Kebridehar, Kebridehar-Denan, Denan-Gode, Gambella-Itang-Jikawo, Wezka-Gidole, Beseka-Baipas are among the road projects executed by the corporation in the reported period, he pointed out.

The authority has set a plan to build and repair more than 2,900 km road in the remaining months of this budget year, he said.

Ethiopian Road Construction Corporation (ERCC) is a new government development agency established under the Ethiopian Roads Authority (ERA), it was noted.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18078:corporation-constructs-repairs-over-7-800-km-of-roads&catid=52:national-news&Itemid=291

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Ethiopia eyes Chinese meat market

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Unhappy of the meager turnover by the current meat and dairy export, the Ethiopian Meat and Dairy Technology Institute (EMDTI) is poised to export its products to Chinese market to boost up the income expected from the sector.

Targeting to get USD 250 million from meat and dairy export in the last fiscal year of 2013/14, the sector however brought in USD 76 million.

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The sector is crippled by a failure to expand the market, low quality chain management, lack of emphasis on veterinary care for animals, to name a few.

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To fulfill the huge deficit in the income, Ethiopia has now started looking at other markets in Asia.

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Dr. Tekeba Eshete, Vice Head of EMDTI told Capital that the institute is negotiating with Chinese  higher officials and companies to enter into the Far East market.

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“We are discussing with the Chinese government to export meat and they have welcomed our idea. Now, what is left for the experts is to examine the quality of the meat.”

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The quality assessment covers a range of quality assurance benchmarks including the health facility in abattoirs, traceability and live animals registration.

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The Ministry of Agriculture has started a pilot project that incorporates traceability and livestock registration in some rural areas and this project is expected to be applied fully throughout the nation in less than two years time.

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“It is a great opportunity to enter the largely populated Chinese market and I hope the Chinese technical committee will conduct the evaluations soon so we can commence the export of meat to the Chinese market’’ he added.

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He also said that EMDTI is looking forward to entering other Asian markets giving much emphasis to exporting good quality products.

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Saudi Arabia and United Arab Emirates import large amounts of Ethiopian meat while Sudan, Egypt, Somalia and Yemen also import smaller amounts.
Workneh Ayalew, Livestock Value Chain Director with Agricultural Transformation Agency, hailed the EMDTI initiative to expand the export of meat.

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“It is good to search other markets and good progress has been made so far, but protecting livestock  for good quality export is an issue that all stakeholders should care about.’’

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Recently, a national roadmap was prepared to handle the traceability and registration of livestock on a regular and mandatory basis. Yet, the plan is only in a draft form and it waits for ratification by parliament.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5004:ethiopia-eyes-chinese-meat-market-&catid=35:capital&Itemid=27

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City has allocated 8 bln birr for this year housing dev’t project: Report

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On its 2nd ordinary session the Addis Ababa City Administration reported that positive results are registered in areas of housing development, MSEs, employment opportunities, road construction, health sector, and others.

Presenting the Administration half year performance City Mayor Diriba Kuma said that as one of its prime focusing areas, the Administration has prepared 640 hectares of land to build additional condos. As part of this programme the Administration has allocated 8 billion Birr for this year housing development project.

Deriba also said so far the Administration has constructed and transferred 105, 000 condos. The report indicated that, though there are positive results in the housing development activities, the problem associated with contractors, lack of consultants and others were identified as a challenge, according to the report.

Concerning Micro and Small-scale Enterprises, the Mayor said that the sector is becoming the source of income for thousands of citizens and serving as a basis for industrialization.

Within the last six months the Administration together with other stake holders have created job opportunities for 103, 978 citizens out of whom 63,500 are permanent jobs.

In the health sector, the report indicated that expansion projects in four hospitals are being undertaken and 16 health stations are under construction.

In the area of road construction and maintenance, expansion projects have shown progress during the reporting period.

The report also indicated that the road network has increased from 4,671-kms into 4,801 -kms and the construction of new roads and expansion project have increased from 17.5 per cent into 18 per cent.

Regarding the transportation sector, the City Administration together with stakeholders is trying to address the gaps reported and registered in various ways.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18069:city-has-allocated-8-bln-birr-for-this-year-housing-devt-project-report&catid=52:national-news&Itemid=291

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Abay posts 93 million birr profit

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Abay Bank S.C announced a 93 million birr gross profit made in the first six months of this fiscal year.

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The total capital of the bank reached 579 million birr, the paid up capital reaching 486.7 million birr and total outstanding loan standing at 2.12 billion birr.

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The bank’s President Mesenbet Shenkut said, “Services tailored to the low rank seating community groups gives us the way to perform well by promoting financial services in remote areas and we are strengthening our effort to do better.”

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“We know that at the end of 2016, the National Bank will require us to have 500 million birr paid up capital and we currently have a paid capital of 486.7 million birr. We will make decision at the next general meeting which will take  place after two weeks how we can achieve the boundary line.’’
Selling more shares or raising shareholders’ deposits are the two options the general assembly will discuss to meet the National Bank requirement.

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Abay also announced that it will soon start interest free banking service to serve better Muslim customers who does not want to take interests from their saving account.

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Mesenbet said that the bank is acknowledged by the National Bank of Ethiopia to offer the interest free banking service and it remains with the adjustment of some technical issues to launce the service.

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“Since we have branches all over the country, the new service will attract many Muslims that want the free interest banking system.”

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The president also indicated that the bank is planning to give special privilege loans to carbon emission reduction projects. “As citizens,  we want to make a contribution to reduce the impact of climate change and what we are planning now is to give long term loans for those who request us to support carbon reducing projects.’’

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Recycling projects which are known for reducing carbon emission are projects that will be given precedence in the carbon reduction projects financing plan, Mesenbet said.

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Abay Bank started its operation in November 2010 with a subscribed capital of 174.5 million birr.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5006:abay-posts-93-million-birr-profit&catid=35:capital&Itemid=27

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Breweries need to work with farmers for their barley demand

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The Ethiopian Institute of Agricultural Research (EIAR) called on breweries to enter into more purchase agreements with farmers in order to save foreign currency on imported malt.

Beer production has increased significantly in recent years and currently seven million hectoliters of beer is being produced in the country.

To produce beer amounting to that, breweries need 196,000 tons of barley grain every year. Yet, only 40 percent of the demand for barley grain is filled by local supply.

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Local production of good quality barley grain is hampered by traditional production methods, unavailability of quality seeds, poor soil fertility, and lack of market linkage.

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Dr. Berhane Lakew, a National Research coordinator at EIAR, explains “Ethiopia’s barley production has increased by 15, even up to 20 percent, we are entertaining a paradoxical situation. We have one million hectares of land suitable for growing barley that can be used for malting but our production lags behind the demand due to technical problems that are surrounding us.”

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“Breweries have gained good results by supporting some farmers to produce quality barley crops but this work has not been expanded to all producers.  Making more agreements with farmers is a big assignment companies have to complete if they want to buy locally and reduce their costs. On the other hand, regional agricultural bureaus must work tirelessly to link farmers with companies” Dr. Berhane said.

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He also added that researching new barley malt technologies, promotion of package-based extension schemes for the production of barley malt, and  introduction of incentive mechanisms are crucial to boost the production.

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Farmers state that minimal support they get from government organizations on soil research is one of the factors that is contributing to low quality grain production. This in turn attracted fewer breweries. Tewabu  Derba, a farmer from Holeta said,  “I have a hectare of land which produces up to 40 quintals of malt barley.  But the soil losses its fertility over time and that affects the quality of the grain I produced, and I lose buyers. If the government helps us to improve the fertility of the land and create a market linkage for us the problem can be solved.” Tewabu also called on breweries to work with farmers and support them by providing technical support.

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Tarkegne Garumssa, Raw Material Development marketer at Heineken Brewery said “There is a good progress that is being seen from breweries regarding working with farmers.  For example, our company supports 6,000 farmers to harvest quality malt barley. But farmers still face several challenges such as acquiring large farmland and obtaining improved seed”.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5003:breweries-need-to-work-with-farmers-for-their-barley-demand-&catid=35:capital&Itemid=27

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Cash-strapped Gerbi dam waits Eximbank’s rescue

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A portable water harvest project the Addis Ababa Water and Sewerage Authority (AAWSA) sought to develop on Gerbi river seats on the shelf as the fund required to start the construction is not obtained. The authority finalized study of the project last year.

The dam which will be constructed on Gerbi River, located in North East of Addis Ababa and a tributary of Abay River, has an estimated capacity of generation for 20 years. And it has a capacity to generate 73,000 metric cube water per day. The project is expected to take three up to five years to be constructed and has an estimated cost of 1.5 billion birr.

Tesfalem Bayu, Projects Manager of AAWSA told Capital that the Chinese Eximbank received the detail proposal of the dam but it has not yet approved the loan yet.

“We have finished the detailed study of the dam and we are searching a finance to commence the construction. We are expecting to obtain part of the money from loan that is expected to be secured from Eximbank.’’

The manager, however, declined to give a perspective how much the government will dedicate for the  project.

AAWSA is also going to call a tender for detail study of Sibilu dam, another project on its assignment list, which will be erected on Sibilu River.

The dam will have a capacity to generate 480,000 cubic meter of water per day and with this additional capacity interruption in water supply could be totally stamped out, according to the authority’s forecast.

“Sibilu will be one of the dams that solely serve Addis Ababa. We are looking for a consultant who would make design of the dam and after that we will know how much money and time it will consume” said Tesfalem.

AAWSA also announced that an additional 114,000 cubic meters water is added in to the city’s provisions with a 1.8 billion birr  loan from Eximbank.

The added volume increases total supply of water to the city to 464,000 cubic meters per day. The project will be officially inaugurated today March 8, in the presence of high government officials.

The additional capacity is feed by 24 wells that were dug in Akaki to generate 70,000 cubic meters per day.

The latest increase in AAWSA’s water supply capacity can ease the thirst for water by the metropolitan to some degree.

An additional 206,000 meter cubic water is needed to meet Addis Ababa’s daily demand of 670,000 cubic meters of potable water.

The development and enhancement project was supervised by Water Works Design and Supervision Enterprise.

Tesfalem said that excavation of 19 wells is in the pipeline at the ground water harvest site in Akaki with a one billion birr fund secured from the World Bank. Currently, Addis Ababa sustains itself on the four sites- Legadadi, Dire, Gefersa Dams and the Akaki Wells.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5007:cash-strapped-gerbi-dam-waits-eximbanks-rescue-&catid=54:news&Itemid=27

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With their emerging markets and rising regional influence, the cities of Belgrade, Panama City, Addis Ababa, and Yangon may soon become global financial capitals and havens for the super-rich, global real estate consultancy Knight Frank predicted in its annual Wealth Report last week.

The report documents the patterns of high-net-worth individuals — those worth over $US30 million — to predict how global wealth will evolve in the next decade.

While many of the world’s multimillionaires and billionaires live in the financial capitals of London, Tokyo, and New York, many have begun migrating to cities with emerging markets and untapped opportunities to make even more money.

Belgrade, Serbia

As the financial and business center of southeastern Europe,Belgrade saw a steady 12% rise in its population of high-net-worth people from 2007 to 2014. The number of super-rich people in Belgrade is expected to grow by 72% over the next decade, especially as tax incentives and grants continue to spur foreign direct investment.

Panama City, Panama

Panama has benefited immensely from its strategically located canal that bridges Latin America and North America. Since 2007, its capital, Panama City, has nearly doubled its population of high-net-worth individuals.

Compared with its Central American neighbours like Honduras, Panama is economically stable. It’s also growing all the time. High-quality transport, healthcare, and a competitive tax environment are expected to draw in over 7,000 super-rich residents by 2024.

Addis Ababa, Ethiopia

Ethiopia is Africa’s fastest-growing economy, and the super-rich have taken notice. The population of high-net-worth individuals in the country’s capital, Addis Ababa, has nearly doubled since 2007 and is expected to double again by 2024.

Home to the African Union headquarters, the headquarters of the United Nations Economic Commission for Africa, and a number of other continental and international organisations, Addis Ababa is often referred to as the political capital of Africa.

Yangon, Myanmar

Myanmar’s former capital and largest city, Yangon, is a “classic example of emerging market wealth creation,” according to the report. Now a tourist destination for the super-wealthy, Myanmar and its economy have benefited from democratic reforms and the gradual opening up of its economy. Yangon accounts for more than a fifth of Myanmar’s total economic output, and its number of high-net-worth individuals is expected to double over the next 10 years.

Sourced here  http://www.businessinsider.com.au/knight-frank-report-predicts-the-cities-where-rich-people-will-flock-2015-3

Intra COMESA trade expanding, State Minister

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Addis Ababa, 13 March 2015

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Intra Common Market for Eastern and Southern Africa (COMESA) trade has been fundamentally growing.
Still a long way to go and we need to do more but since we started to culminate in COMESA regional integration agenda, there have been very important developments in even trading with each other across the member countries, said yesterday State Minister of Finance and Economic Development Ahmed Shide while briefing journalists on current affairs.

According to him, Ethiopia is now exporting leather products to a lot of COMESA member countries. Member states are also exporting to each other.
The East Africa power system improvement, the road link between member countries and the ongoing railway investment within member countries are really boosting our capability to generate more wealth and to trade within each other, he added.

The Minister also announced that nation will host the 34th COMESA policy organ meetings that will culminate by 18th COMESA Summit of heads of state and government to be held from March 20-31, 2015.
Ethiopia has been selected at the 17th COMESA Summit that was held last year in Kinshasa, the Democratic Republic of Congo, DRC, to host the 18th COMESA summit.

Related article  Ethiopia to Host COMESA Summit of Heads of State, Government

Ethiopia took this opportunity as a platform to reiterate its support to the objective of the organization as well as an opportunity to share its best practices from the country’s national transformational agenda, Ahmed said.
The COMESA chairmanship will be handed over from President Joseph Kabila of DRC to Prime Minister Hailemariam until the next summit.

The theme of the summit is inclusive and sustainable industrialization which aims not only to bring forth the issue of constraints on goods to be traded on the regional and international markets but more importantly to ensure job opportunities for the region’s population.

It was learnt that the summit will comprise nine sessions, among which are meetings of the Administrative and Budgetary Committee, the Intergovernmental Committee, the Council of Ministers, the Ministers of Foreign affairs, the First Ladies Roudtable, and the Summit of Heads of State and Government.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18140:intra-comesa-trade-expanding-state-minister-&catid=52:national-news&Itemid=291

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Emerging Markets investors need Ethiopia on their shortlist 
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By Anders Heede of BDO

Many emerging markets, especially in sub-Saharan Africa, have seen solid GDP growth in the past decade driven mainly by natural resources. But with falling commodity prices and Chinese demand dwindling, those with overly resource-dependent economies are being caught.

Companies seeking to invest in emerging markets should be on the lookout for those countries that have invested in diversifying their economies. That will often mean having Ethiopia on their shortlist.

In 2012, Ethiopia was the 12th-fastest growing economy in the world, according to the World Bank. Hefty state-led investment has kept the economy of Africa’s second most populous nation growing at more than 8 per cent a year for over a decade. More than that, it has become Africa’s fastest-growing non-oil economy. The government’s focus on value-added activities has bolstered its transformation towards a diversified economy and, as a result, it is attracting the attention of ambitious businesses and investors alike. How has it solidified its position and what are the opportunities for businesses?

Most importantly, the country has invested in infrastructure. The government has delivered on its five year Growth and Transformation Plan, which has seen it making large investments (around 15 per cent of GDP) in infrastructure projects. At the heart of the programme are railway, road and dam projects to give the landlocked nation cheap power and reliable transport. The programme’s poster child is the controversial Grand Renaissance Dam on the Blue Nile, which will become Africa’s biggest hydro-power plant and turn Ethiopia into a regional power hub.

At the same time, reforms to business registration and changes to regulatory institutions have simplified rules, improved the quality of business support and considerably reduced the cost of doing business. The time required to clear customs for export and to secure a business licence, for example, has been cut to 15 days, from 44 in 2004.

With China slowly running out of inexpensive labour, manufacturers are looking at low-income countries like Ethiopia. Textile manufacturers have already been attracted by the rich local supply of leather and cotton. Multinational retail clothing companies H&M and Primark both source significant amounts of material from Ethiopia. The government has developed specific industrial zones that will see the companies within them benefit from a tax ‘holiday’ of up to 17 years. Chinese shoe maker Hujian Group has already invested heavily in the Chinese-built Eastern Industrial Zone and last year announced plans to invest a further $2.2bn in an industrial zone of its own, located in the Lebu area on the south-western outskirts of Addis Ababa. Turkey is currently the leading country investing in Ethiopia – Turkish companies have invested $1.2bn in the last decade. Other big names that have recently announced investment plans include Unilever, GE and GSK.

With a growing population of 94m, urbanisation and rising income levels, Ethiopia is also surfacing as an attractive consumer market. By 2020, Coca-Cola hopes to sell 100m unit cases in Ethiopia, putting it on par with Egypt and South Africa. Meanwhile, Heineken has just inaugurated what it claims is Ethiopia’s biggest brewery to capitalise on figures showing the Ethiopian beer market has doubled over the last five years, with per capita consumption still relatively low compared to other east African countries.

However, the country is not without its challenges and there is some uncertainty ahead. Ethiopians will go to the polls on May 24. The elections will likely see another win for the ruling EPRDF party that has claimed victory in every election since the fall of the Derg regime in 1991. It will be the first election to be held under the current prime minister, Hailemariam Desalegnn, after the death in 2012 of Meles Zenawi, who ruled the country for 21 years. Complaints from many human rights activists about growing inequality and demands for freedom of press and political participation are likely to challenge the ruling party.

Investors will be keen to find out whether the government plans to loosen its grip on the economy – for example, many sectors remain closed off to foreign investors and even to domestic companies at times. Access to finance for the private sector remains difficult, even more so because of the government’s large infrastructure plans. For its boom to continue, Ethiopia needs a stronger banking sector. The World Bank’s survey on investing across sectors shows that Ethiopia has above-average restrictions on foreign equity ownership in many sectors, including telecommunications, financial services, media, the retail trade and transport.

Nevertheless, we see Ethiopia as a major future market for our clients.

Anders Heede is chief executive for Europe, the Middle East and Africa at audit and advisory firm BDO. Million Kibret, chief executive of BDO Ethiopia, co-authored this post.

http://nazret.com/blog/index.php/2015/03/13/em-investors-need-ethiopia-on

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Ethiopia among Africa’s Big Five, likely to lead the continent in the next 25 years

Addis Ababa: March 13, 2015  –

http://www.fanabc.com/english/index.php/news/item/2425-ethiopia-among-africa’s-big-five,-likely-to-lead-the-continent-in-the-next-25-years

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President Urges IFC to Focus on Value Added Products

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Addis Ababa March 12, 2015 -

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U.S business giant Dow eyeing Ethiopian market

Addis Ababa, 13 March 2015  -

The Dow Water and Process Solution said it is opening an office in Addis Ababa to showcase its world famous water treatment innovations.

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Representatives of the company told reporters on Wednesday at the Radisson Blu Hotel that they have held a successful Exclusive Customer Seminar whereby they met potential customers to their Ultrafiltration (UF) and Reverse Osmosis (RO) technologies.

“Ethiopia is a highly strategic market and this seminar is a milestone in extending the Dow Water and Process Solution’s footprint across East Africa,” commented Zakia Bahjour, Regional Commercial Manager for the company.

Though Dow Executives declined to tell Dire Tube as to how much money they put into the project, they said their technology products can be used in business ranging from mining to food and beverages.
More than 50 people from the manufacturing, leather, textile, flower and representatives from the Ministry of Water, residential and commercial developers have attended the Dow meeting.

Sand filters are currently the most conventional water treatment technology in use in Eastern Africa. During the press conference, Dow team have highlighted the main benefits of Ultrafiltration and Reverse Osmosis technologies. They said Dow’s technologies include more consistent filtration quality, lower footprint and easier maintenance and expandability.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18120:us-business-giant-dow-eyeing-ethiopian-market&catid=52:national-news&Itemid=291

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Institute Consolidating Preservation of Near Extinction Biodiversity

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Addis Ababa March 13, 2015 –

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Kesem project sees completion

Addis Ababa, 13 March 2015 -

The Kesem Dam Irrigation Project which is 99 per cent complete is expected to become fully operational soon.

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The project site is located in Afar State, about 800 meters above sea level and 237 km away to the north east of Addis Ababa.

The dam, which is the first of its kind in the country, is 1,096 meters long and 7,18l wide with a capacity of half billion cubic meter of water and capable of irrigating more than 20,000 hectares of land.

Water Works Design and Supervision Enterprise Kesem Project Representative Engineer Getu Mola said that now that the construction of Kesem Dam is almost through, what is left is the finalization work of building structures for irrigation.

The project life span is estimated to be 50 to 60 years. Till it got fully operational it will consume a total production cost of 2.6 billion birr, he added.

The dam project is expected to benefit local residents through creating job opportunities. Apart from creating job opportunities, the dam reservoir affords drinking water to residents of the locality. Fishery could also be practiced on the dam, Getu added.

Water Woks Construction Enterprise Project Process Owner, Jigsa Deyesa, on his part said that the dam is not meant only for sugarcane development, it will cater for the drinking water need of the local people. “The topography was very challenging. It was tasking us to conduct more than two million cubic metres of soil filling activities,” he added.

He also said that even if the project has been a protracted one, the final outcome was very much rewarding.

The project, which began in 1997 E.C, has created job opportunities for about 2,500 to 3,000 Ethiopians posted at different parts of the project, depending on the season.

It was learnt that the target set in the GTP for the irrigation development is increasing from 2.4 per cent in 2002 E.C to 15.4 per cent by the end of the 2007 E.C, the end of the GTP period. It is to be learnt that the irrigation coverage of the country was 127,242.6 hectares of land when the GTP started. In the course of the GTP period, the coverage is expected to grow up to 785,582.6 hectares of land.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18138:kesem-project-sees-completion&catid=52:national-news&Itemid=291

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EDB provides 3.2 bln birr loan for agriculture, manufacturing

Addis Ababa, 13 March 2015  -

The Ethiopian Development Bank (EDB) disclosed that it has given 3.2 billion birr loan to investors engaged in agriculture and manufacturing during the past six months.

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The bank focuses on providing loans for exporting modern agricultural development, agro-processing and manufacturing industries, it was pointed out.

EDB President, Isayas Bahre, told ENA that out of the extended loan 63 percent was allotted to manufacturing, 27 percent to agriculture and the remaining 10 percent to agro-processing sector.
Some 70 percent of the loan was given to local investors and the remaining to foreign ones, it was learned.

The capacity of annual loan the bank could provide has jumped from 1 billion birr to the present 8 billion, he added.
Although EDB had plans to extend 4.5 billion birr loan during the past six months, it extended 72 percent of the amount as applicants failed to meet the requirements of the bank.

Some 1.6 billion Birr loan has been reimbursed during the stated period, according to the president.
Ethiopian Development Bank provides 90 percent of loans for the private sector and the remaining 10 percent to public enterprises.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18119:edb-provides-32-bln-birr-loan-for-agriculture-manufacturing-&catid=52:national-news&Itemid=291

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Ethiopia reduces the amount of food aid it imports by 50%

Addis Ababa: March 13, 2015 –

http://www.fanabc.com/english/index.php/news/item/2424-ethiopia-reduces-the-amount-of-food-aid-it-imports-by-50

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Ministry set to boost cereals, oil seeds, spices export trade

Addis Ababa, 13 March 2015 -

The Ministry of Trade yesterday discussed performances of the export trade on the cereals, oil seeds and spices over the past eight months with stakeholders on its premises.

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The Minister of Trade Kebede Chane requested the stakeholders and the exporters in order to increase production and productivity so that the sector could achieve the intended goal though the situation of prices at the international market is not encouraging.

Presenting the report, Crop Marketing Directorate Director Samuel Gizaw said that unlike that of the previous year, the accomplishment of the export trade on cereals, oil seeds and spices over the past eight months is slightly below the intended plan due to certain constraints like the falling of prices of the commodities at the international market.

Ministry of Trade State Minister Yaecob Yala said that though the sector has been struggling with several constraints in the eight months, the government and the stakeholders shall show high commitment in the coming four months in order to meet the intended plan for this year.

In the panel discussion, it was indicated that the export trade is demonstrating low performance. According to the office representatives of the states and exporters, the sector has been struggling with problems for the products lack proper quality standard and their prices are highly falling.

It was also noted that the reason for low quality could be attributed to the ineffective and inefficient way of cultivating the cereals and lack of proper provision of the new seed for the farmers.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18139:ministry-set-to-boost-cereals-oil-seeds-spices-export-trade-&catid=52:national-news&Itemid=291

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Nation to Fit Cars with Speed limiters

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Addis Ababa March 13, 2015 –

Ethiopian Transport Authority said speed limiters would be fitted on vehicles to reduce traffic accidents that have been creating social and economic crisis in the country.

Speaking at a consultative meeting focusing on the level of traffic accidents in African countries held here yesterday, Authority Director-General, Kasahun Hailemariam said Ethiopia losses about half a billion birr and 3,000 of its citizens every year due to traffic accidents. This is unacceptable in the light of the only 600,000 vehicles in the country, he added.

Fitting vehicles with speed limiters is therefore the only alternative because the increase in the number of accidents is related to high speed of vehicles, Kassahun stated. “The country is therefore ready to implement the technology needed to reduce the crisis”, he stressed.

A limited number of vehicles would this Ethiopian year be fitted with speed limiters, according to the director-general.

Vehicles that cause frequent accidents would first be identified and a trial will be carried out by fitting speed limiters on limited number of cars, he elaborated. All cars could then be fitted with the device that stops them from going over the limited speed, it was learned.

http://www.ena.gov.et/en/index.php/economy/item/507-nation-to-fit-cars-with-speed-limiters

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Traffic accidents socio-economic concern for Ethiopia: Minister

Addis Ababa, 12 March 2015  -

Traffic accidents and fatalities on the continent are a worrying phenomenon. It is even a socio-economic concern to Ethiopia.

It was so stated yesterday by Minister of Transport Workneh Gebeyehu, in his inaugural address to the conference discussing the challenges of accomplishing targets of Road Safety in Africa in accordance with Decade of Action Plan organized by the Ministry and International Road Federation, IRF.

According to Workneh, road safety is a serious problem all over the world. However, he said, the severity of the problem is more pronounced in developing countries. Africa is the region with the highest death rate from road crashes; and this is particularly worrying the continent. The Minister said, a high number of vulnerable road users, poor vehicle condition, under-developed infrastructure, insufficient risk awareness, and ineffective enforcement jeopardized by weak institutional arrangements are among the major causes for accidents.

“Road accident is in a state of rise and recognized as a major socio-economic concern facing Ethiopia as the country is known as having one of the highest accident records in Africa—about 64 deaths per 10,000 vehicles,” the Minister stressed. Ethiopia is estimated to own about six hundred thousand vehicles.

Concerted efforts should be exerted hence to stop this phenomenon. In this regard, Chairman of International Road Federation (IRF). K. K. Kapila, said that challenges such as vehicles that are not in good shape, the road systems that need improvement, difficulties in addressing the trauma victims, among others, are areas to bring road safety into focus. The road system and the poor conditions of the vehicles are the two most pressing challenges in Africa, Kapila said. By 2020, we are planning to cut the road accident fatalities to half, he said.

“Road traffic accident is a very important challenge in Africa that needs to be dealt with,” said Stephen Karingi, Director, Regional Integration and Trade Division, ECA. The loss of lives, injuries and property damages are estimated to be 1-2 of the total GDP. So the continent should work on road safety. However, he said for a continent that contributes 65 per cent of the global road crashes, the road infrastructure is underway with a little portion of the budget.

The conference also heard road safety experiences of some of the countries from the continent.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18107:traffic-accidents-socio-economic-concern-for-ethiopia-minister&catid=52:national-news&Itemid=291

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Farmers’ Cooperative, Private Companies Building 153 Million Birr Wheat Processing Factories

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Addis Ababa March 12, 2015 – 

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Italy becomes part of Ethiopia’s development story, says Minister

Addis Ababa, 12 March 2015  -

The Ministry of Foreign Affairs said that Ethiopia has been on the investment radar of many countries due to the development of the country, especially in infrastructure, agriculture, mining, manufacturing, energy, and tourism, among others.

Italian business persons were engaged in about 200 investment projects in Ethiopia between 1994 and 2014, with possible capital involvement of 6.2 billion Birr, it added.

Opening an Ethio-Italy and Greece Trilateral Investment and Business Networking Forum at the Intercontinental Hotel yesterday, State Minister Dewano Kedir said: “We are indeed very happy to organize and host this special occasion of Ethio–Italy and Greece Business Forum, which I believe will contribute to our economic cooperation and I would like to take this opportunity to express my heartfelt gratitude to both Italian and Greek business delegations for being here to attend and to explore investment and business opportunities.”

Dewano further said that Ethiopia and Italy have signed a bilateral investment protection agreement in 1966. On the investment front, Italy has already become part of Ethiopia’s development story. A growing numbers of investors from Italy are already engaging in various sectors such as industry, agriculture and construction, he said.

Given the investment and market opportunity in Ethiopia, it is our hope that this relationship could further be expanded. Ethiopia is committed to work hard to encourage your greater involvement in investment. “We would like to see more Italian investment so that there will be an Italian Industrial Zone similar to the ones that the Chinese and the Turks have established.” The bilateral trade with Italy is growing significantly. The overall trade volume grew over five-fold between 1997 and 2009 from just over one billion Birr to 7.3 billion Birr in 2013, Dewano added.

The Greek Community in Addis Ababa and other parts of the country have substantially contributed to improve our relationship. Particularly, Foreign Direct Investment from Greece has also reached close to 300 million Birr. “But we still have to work hard, despite our very positive relationship,” he said.

The Ethiopian Chamber of Commerce and Sectoral Association President Gebre-Hiwot Gebregziabher on his part said: “The government’s policy is to encourage industrialization, with the major manufacturing opportunities offering attractive potential benefits to prospective investors in for example the textile and garment sector, in the food and beverage, the leather and electronic, as well as in the building material and non-metallic mineral and metallic industrial sub sectors.”

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18109:italy-becomes-part-of-ethiopias-devt-story-says-minister&catid=52:national-news&Itemid=291

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Reprieve for firms as Comesa favours lower merger fees

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Companies eyeing the regional market through mergers and acquisitions may get a reprieve as Comesa considers lowering by up to 60 per cent the fees charged to approve such deals.

By ALLAN ODHIAMBO

http://www.theeastafrican.co.ke/business/Comesa-favours-lower-merger-fees/-/2560/2654272/-/p4m1g5/-/index.html

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Ethiopia mines ministry gives go ahead for Tulu Kapi development

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Addis Ababa, 16 March 2015 -

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Aim-listed gold explorer and developer Kefi Minerals has received approval from Ethiopia’s Ministry of Mines to develop its Tulu Kapi project.

The company’s application for the 86 000-oz/y mine was now before the Council of Ministers for approval to execute a mining agreement and to issue the mining license and full permitting to develop and operate the project for 20 years.

Further, Kefi Minerals on Monday said the estimated development expenditure for the mine had been reduced from $150-million to $120-million, based on initial bids received from mining contractors and on terms on offer to the company for the acquisition of the identified suitable process plants.

The development funding plan would be a combination of debt and equity finance, drawn down in the second half of this year and comprising $100-million of project debt, with the balance of $20-million being financed by one of a number of possible sources currently being assembled, including financing from contractors and equity at the project or parent company level.

“It is an exciting period for Kefi, with a great deal of progress occurring across the board. As we rapidly move towards the receipt of the mining license and advance our funding plans, we remain on track to start development at the project this year, [aiming] for production in 2017,” Kefi executive chairperson Harry Anagnostaras-Adams said.

The company also planned to conclude its definitive feasibility study and start construction of the 1.2-million-ton-a-year processing plant, during this year.
The Tulu Kapi project had a probable ore reserve of one-million ounces of gold and mineral resources of 1.9-million ounces of gold.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18177:ethiopia-mines-ministry-gives-go-ahead-for-tulu-kapi-development&catid=52:national-news&Itemid=291

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House Standing Committee Sees Industrial Park Bill

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Bill lets federal government build industrial parks at the national level

The House Industry Affairs Standing Committee is reviewing the Draft Industrial Parks Bill which gives the federal government the task of developing parks at the national level.

The bill, which will officially end the term “industrial zones”, a term that has been abused, according to an official, has seven sections, including establishment of organizations within the park, recruitment of foreign employees to work in the park, treatment of international park developers, acquisition of land and other immovable properties as well as conflict resolution.

The bill was referred to parliament on March 10, 2015, when the Standing Committee began looking at it. The first Industrial Parks Proclamation prepared by the Ethiopian Investment Commission (EIC)was referred for parliamentary review at the first meeting of the House after a month’s recess.

“The name industrial zone is an internationally used common name but its name has been abused in our country where some collection of manufacturing sheds or five to six factories are being referred to by the name industrial zone. Therefore, we have intentionally avoided the name industrial zone in the proclamation,” Fitsum Arega, director general of the EIC said.

Although industrial parks was an area of the government’s focus in the first Growth & Transformation Plan (GTP), the intention was not implemented through laws that defined what industrial parks are, institutional structure, and responsibilities of developers, administrators and enterprises, states the explanation on the draft proclamation that was presented to the parliament. Due to the absence of these legal documents, development of the Eastern Industrial Zone and Bole Lemi Industrial Zone failed to have full services required, such as connection roads, electricity, telephone, water as well as banking and customs services, according to Fitsum.

The bill claims that it will be vital to decrease environmental pollution, organise city dwelling, enhance export of manufacturing products and ensure sustainability.

“The works to make the existing zones fit the standards of parks will be done; these could be establishing one-stop services for Customs and other governmental services,” Fitsum said.

The preparation of the bill by Ethiopian Investment Commission had inputs from the Ministry of Industry (MoI) and the newly established Industrial Parks Development Commission (IPDC), regional government as well as a Chinese group that conducted a study and forwarded recommendations on its own. “The government is the one that builds the parks, supports for the construction and carries out issues related to that such as selling and renting plots,” said Fitsum.

An official from the IPDC states that the proclamation will enable the administration of the parks to be better than it has been so far.

The federal government acting as custodian will take land from the regional governments and build the parks, fulfilling the necessary infrastructure and rents to developers, said the same source. The IPDC recommends the establishment of the parks centrally in the federal level but the regions can also develop their own parks, the source added.

The producers in the parks are given more advantages than those outside. Such advantages include selling their products, all of which are expected to be exported, with tax exemption, which does not hold true for those outside. And the producers in industrial parks need to export all of their products to the foreign market.

There are four operational parks in the country and two are in the process of establishment. The operational ones are Bole Lemi 1 and 2, Eastern Industrial Park and George Shoe. The ones in progress are Ayka Addis, a Turkish textile factory and government’s joint project and Huagian industrial park. Industrial parks in Kombolcha and Mekelle will be constructed with Prime Minister Hailemariam Desalegn having laid the cornerstones for their construction.

“We are doing all the necessary preparations for the implementation of the proclamation after it gets passed by the parliament and we will immediately make the directives and implementation manuals to make the implementation take no more than three months from now,” Fitsum affirmed.

Seventy percent of industrial parks area will be factories while the rest will be residences and green areas as well as service giving sites and offices.

http://addisfortune.net/articles/house-standing-committee-sees-industrial-park-bill/

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Israeli construction suspected of tax evasion

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Tidhar Excavation and Earth Moving Ltd., an Israeli company taking part in the 2.6 billion birr road project that is expected to supplement the ongoing Light Railway

Transit (LRT) project, is suspected of illegal tax evasion activities worth some 52 million birr, The Reporter learnt.

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

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

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

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

http://www.ethiopianopinion.com/israeli-construction-suspected-of-tax-evasion/

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Some 1 million TV owners to pay fees via digital system

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Addis Ababa, 16 March 2015  -

A trio agreement among two public entities and a private company, the Ministry of Communication and Information Technology (MoCIT), the Ethiopian Broadcasting Corporation (EBC), a state-owned TV station, and Kifiya Lehulu, a financial technology private company, envisaged the way to start an electronic system to collect registered and license fees from a million TV owners in Addis Ababa this year.

The new electronic payment system seeks to collect fees from one million television owners from March 16 to the end of this year. According to the contract that was made public this week, Kifiya Lehulu would collect fees from TV owners across the capital annually on the station’s behalf.

According to Berhane Kidanemariam, general manager of EBC, previously, TV license and registration fees were collected by dispatching employees to customers’ homes. However, the GM noted that this system remained quite difficult to manage for the TV station for long time.

To that effect, EBC decided to outsource the fee collection jobs to Kifiya Lehulu. EBC is entitled to collect annual fees from each and every TV owner which is around 60 birr per annum. In return to the services that Kifiya Lehulu provides, the public TV station will pay 10 birr per customer, the GM told journalists.

The state broadcaster had the authority by proclamation, enacted since the 1960s, when there was only one public TV station, to collect license and registration fees from TV owners.
The fate of private TV stations, if they would ever to appear in the air waves, would depend on the permission of the government. When that day comes, amending the existing laws is no doubt going to take place, Berhane told The Reporter.

According to Senait Haile, marketing and promotion director at EBC, the year-long process of outsourcing has finally come through. Based on the Central Statistics Agency’s and EBC’s data, around one million TV owners would be accessed to pay their registration and license fees this year.

Based on the existing laws, TV owners who fail to pay the annual dues face measures which include fines and confiscation of their TV sets. Senait told reporters that some 13 million birr was generated from license and registration fees just last year. And this year, the station has set a target of collecting some 60 million.

Kifiya Lehulu currently handles utility bills on behalf of public enterprises. Munir Duri, Chief Executive Officer (CEO) of Kifiya Lehulu, said that there are some 34 collection centers which are handling electricity, telephone and water bills in Addis Ababa, reaching some 600 thousand customers across the board. Per month, 1.2 million birr transactions are taken care of via this digital company. These are the very centers destined to collect TV registration and license fees, CEO explained.

Kifiya Lehulu is branching out further to cover mobile banking activities in the country. Munir said that some 20 thousand safety net beneficiaries were selected to receive monthly vouchers via an e-payment systems. Currently, this pilot project is serving the Amhara credit and saving microfinance institution customers.

A television license or broadcast receiving license is an official record of payment required in many countries for the reception of television broadcasts, or the possession of a television set where some broadcasts are funded in full or in part by the license fee paid.
The license is sometimes also required to own a radio or receive radio broadcasts. A TV license is therefore a hypothecated tax for the purpose of funding public broadcasting, thus allowing public broadcasters to transmit television programs without, or with only supplemental, funding from radio and television advertisements.

Whilst TV licensing is rare in the Americas, half of the countries in Asia and Africa, and two-thirds of the countries in Europe use television licenses to fund public television.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18175:some-1-mln-tv-owners-to-pay-fees-via-digital-system&catid=52:national-news&Itemid=291

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CBO to launch interest free banking

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Cooperative Bank of Oromia (CBO), who currently is celebrating its Tenth year anniversary, announced it is carrying out final minute’s preparation to launch interest free banking.

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The bank’s proposal got an acceptance by the National Bank of Ethiopia. The bank said the service is launched after some technical adjustments are made.

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Wondimagegnehu Negera, President of CBO said at a March 10 press conference, the service will be offered on separate windows.

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The interest free bank service targets individual customers, government institutions and non-governmental organizations (NGOs). Services offered under the interest-free banking include deposits, foreign exchange and money transfer services and will be available for customers who are engaged in trade, agriculture, freight forwarding, construction, manufacturing, and import-export trade.

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Interest-free banking mainly targets individuals and institutional customers that do not want interest on their deposits because of reasons such as religion and it is becoming a competitive factor for local banks. The bank is also getting ready to build a 35-storey headquarter building around National Theater and another facility in Debrezeit.

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“We went through a lot  of ups downs but thanks to the banks’ shareholders and our committed workers the paid up capital is increased from 156 million birr to 856 million in 10 years time.’’

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“Boosting our service, we will focus on helping farmers to produce more by supporting them to invest in value added assets, and by lending more money.” The president further added that the bank will begin ATM and Point of Sale services in a short time.

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CBO gave out a loan of 1.2 billion birr to its customers in the first six months of this fiscal year.
Last year, CBO made a net profit of 475.85 million birr. CBO currently has 133 branches across the country and it has 1,705 employees.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5038:cbo-to-launch-interest-free-banking&catid=54:news&Itemid=27

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Cooperative Joins Dairy Processing Industry with 28m Br Brand New Factory

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The Union, which was established in 2001, joined the market three weeks ago with its new pasteurized milk

Tigis Amanuel, finance administration of Selale Dairy Cooperative Union (SDCU) promoting the Union’s new product, Selale milk at the second National Cooperative Exhibition, Bazaar and Symposium that was held from March 4, 2015 to March 9, 2015.

Selale Dairy Cooperative Union (SDCU) has joined the dairy-processing business in Ethiopia with a new brand of milk and yoghurt at its new factory, which was built at a cost of 28 million Br.

The Union brought its pasteurized milk to the market, with yoghurt to follow in the coming two weeks.

The milk processing plant is located in Sululta, 40Km North of Addis Abeba. It took approximately three years to finalize the construction as well as the procurement and installation of machinery for the factory, said Hailu Tadesse, SDCU’s director. The Union exploited its stronger financial capacity to benefit more from the raw milk it collects by opening this plant, which was built after a five- month feasibility study, he said.

The Union used 13 million Br of its own, borrowing the remaining 15 million Br from the Cooperative Bank of Oromia.

The new facility can process 20,000lt of milk daily, while the Union collects 10,000lt to 12,000lt from its members. The Union expects to get the balance from increased supply by its members as well as from new members, explained Hailu.

The Union is now focusing on the Addis Abeba market, with emphasis on pricing as a penetration strategy, Hailu said. It is selling its milk to retailers for seven Birr per half-litre packages, whereas the retail price of other milk in the market ranges from 10 Br to 11 Br for the same half-litre.

SDCU was established in 2001, having nine cooperatives, with a total of 512 members in North Shewa Zone, Oromia Region. Presently, the union is an umbrella for 31 cooperatives, which have 3,000 members. Thirty five percent of the profit is always kept in reserve while the rest is divided among the members as dividend.

Currently, in Ethiopia, the demand for dairy products is met through domestic production and through imports. In 2014, around 2,544,579 Kg of dairy products were imported at a cost of 15,156,394 dollars, which shows a tremendous increase as compared to the previous budget year.

The big mark-up in imports is due to the diminishing amount of supply that fails to meet the existing demand, explained a study by Precise Consult International, a local firm. Data from the Central Statistics Agency indicate a decrease from 3.8 billion litres in 2012/13 to 2.9 billion litres in 2013/14.

The growing population,expansion of urbanization and urbanized lifestyles, as well as the income growth in Ethiopia are expected to increase the demand for dairy products, said Amanuel Assefa (PhD), deputy chief of party at Precise Consult International.

Currently, there are 32 registered dairy-processing companies in Ethiopia. In 2011, there were 22 dairy processing companies with nine of them operating in Addis Abeba and the rest in other major regional cities, according to the Food and Agriculture Organization of the United Nations (FAO) survey.

http://addisfortune.net/articles/cooperative-joins-dairy-processing-industry-with-28m-br-brand-new-factory/

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Algeria, Ethiopia ink three cooperation agreements

Addis Ababa: March 16, 2015 –

Algeria and Ethiopia have signed three cooperation agreements on Sunday in Algiers.

The agreements include a memorandum of understanding (MoU) between Foreign Affairs ministry’s Institute of Diplomacy and International Relations and the Diplomatic Institute of Ethiopia’s ministry of Foreign Affairs.

The Algerian and Ethiopian governments also signed an agreement on animal health and another on professional and technical training.

The MoU between the diplomatic institutes and the health animal agreement between the two governments were signed by Foreign Minister Ramtane Lamamra and his Ethiopian counterpart, Tedros Adhanom Ghebreysus.

The agreement on professional and technical agreement was inked by Deputy Minister for Maghreb and African Affairs Abdelkader Messahel and State Minister for Education Wondwossen Kiflu Woldmichael.

The agreements were signed in the presence of the prime ministers of the two countries, namely Abdelmalek Sellal and Hailemariam Desalegn.

http://www.fanabc.com/english/index.php/news/item/2438-algeria,-ethiopia-ink-three-cooperation-agreements

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Airport Expansion Project Cost Rises by $115m

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The project, which was supposed to be completed in two phases, has now joined together the two

The airport that is now being constructed by CCCC will accommodate 25 million passengers a year when completed after three years.

The Bole International Airport expansion project, which was planned at a cost of 225 million dollars, is now costing up to 340 million dollars as the scope of the construction has been stretched.

The construction, which was first planned to be completed in two phases, began with 225 million dollars secured by loan from the Export Import Bank of China (Chinese ExIm Bank), to finance the first phase of the project.

The plan for the first phase of the expansion was to enable the airport to accommodate up to 14 million passengers a year and the expansion construction was designed accordingly. The second phase was planned to raise the capacity from 18 million to 20 million passengers a year.

“The existing airport was constructed in 2003 to accommodate passengers for twenty years but it reached its limit after just 10 years,” Tewodros Dawit, chief executive officer (CEO) of Ethiopian Airports Enterprise (EAE) told Fortune.

After evaluating the demand for the airport facility for the coming 20 years, the first and second phases of construction were integrated so as to enable the construction to accommodate the estimated 20 million to 25 million passengers a year, according to Tewodros.

The Addis Abeba Bole International Airport, which used to accommodate less than a million passengers a year, can now handle over seven million passengers a year, according to Haylay G/Tsadik, deputy CEO of Airport Operations at EAE speaking at the Airport Infrastructure and Maintenance, Repair and Overhaul MRO meetings press conference.

The expansion construction that is now being carried out by China Communications Construction Company (CCCC) forced the Enterprise to integrate the two phases instead of embarking on a new expansion project in the near future. The design work of the expansion project was undertaken by a Singapore company, CPG Corporation Pte. Ltd., a building development and management services provider in the Asia Pacific region.

CCCC is the company that constructed the Addis-Adama Expressway and on June 25, 2014 it also won a bid to construct roads worth 2.57 billion Br. along the Omo River in the Southern Nations Nationalities and Peoples Region. CCCC is a subsidiary of the China Road & Bridge Corporation (CRBC), after the latter took it over in 2005. It has a presence in 50 countries

“When we decided the exact cost of the construction after the completion of the design after three years since it began in 2011/12, we saw that the demand had been increasing from time to time so we studied it again and integrated the first and the second phases of the construction,” stated Tewodros.

Although the additional cost of the construction is known, the source of the financing has not yet been determined and the Enterprise will request the Ministry of Finance and Economic Development (MoFED) to look for the finance, stated Tewodros.

“The contracting body might depend on the financing,” Tewodros stated.

The new expansion project is said to allow the airport to have the capacity of accommodating up to 20 million passengers a year in 15 to 20 year’s time.

“Thinking of another expansion after three or four years following the completion of the current expansion is not feasible,” Tewodros stated. “We will also work to finish the construction of the integrated phases within the first time-frame.”

In accordance with the changed design and cost of the expansion project, the physical work has also increased by 150pc, according to Hailu G/Mariam, EAE airport project head.

“The construction was expected to begin immediately after the plan was made three years ago and completed within five years; but as the designing took three years by itself, the demand increased more than the planned 14 million passengers a year,” Hailu told Fortune. “By the integrated expansion, at least we will have a breathing time until the demand exceeds that number.”

The total international aircraft movement at Bole International Airport between 2001 and 2010 grew by more than 240pc while the domestic aircraft movement grew by 12pc for the same period.

Currently, the EAE operates 20 airports, four of which provide international flight services while the rest provide services for domestic flights.

The deal with the construction company is based on a turnkey level in which the contractor constructs and submits the finalised project.

“The country’s tourism sector is still well untouched and the airport expansion facilities are one of the major requirements in the industry, which will facilitate the growth of the tourist industry,” Haile stated.

The expansion of the airport is also related to the Ethiopian Airlines’ 2025 vision, which includes increasing revenue to 10 billion dollars, increasing destinations from 104 to 126 and increasing fleet from 77 to 140, according to Tewodros.

The expansion project includes the construction of a new passenger terminal as an extension of the existing Terminal 1 (domestic and regional terminal) and Terminal 2 (international terminal) with related equipment. The new terminal will house boarding areas, lounges, recreation centers, shopping malls, offices and other facilities. New boarding gates, boarding bridges, and a new parking area for passengers and airport staff are parts of the expansion project as well. The other major component of the expansion project is the construction of a new VIP passenger terminal.

http://addisfortune.net/articles/airport-expansion-project-cost-rises-by-115m/

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Ethiopia: The Schulze Global Investments level with Those of Singapore

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Addis Ababa March 14, 2015  –

The Ethiopian Foreign minister Dr. Tedros has talks with Gabriel Schulze, Chairman and CEO of Schulze Global Investments

Dr. Tedros met with Mr. Gabriel Schulze, founder, Chairman and CEO of Schulze Global Investments. Discussions covered sector-specific investment opportunities, the maximizing of investment inflows and future regional trade and investment opportunities in the East African region.

Dr. Tedros discussed developments in Ethiopia’s industrial parks, its health system and the overall development of the country as well as its investment opportunities. He also detailed the future market and trade potential of the region pointing out that the ground had been laid for economic integration between Ethiopia and Djibouti during the recent High Level Joint Ministerial Commission Meeting.

The Ethiopian Foreign minister Dr. Tedros said Ethiopia and Djibouti are building telecom, rail, power, water infrastructures and other links as well as developing the integration of customs clearance visas and other areas. Mr. Schulze said that Ethiopia was a most stable and highly recommended country for private equity investment.

He noted the similarities of the development of the Ethiopian industrial parks with those of Singapore’s and expressed his wish to work in collaboration with the government to build more such parks for investors coming to Ethiopia, which, he said, offered a large potential market for investment.

http://www.geeskaafrika.com/ethiopia-the-schulze-global-investments-level-with-those-of-singapore/8297/

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IFC expresses readiness to support Ethiopia’s economic development 

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Addis Ababa, 16 March 2015 -

The International Finance Corporation (IFC) expressed its readiness to identify opportunities and further support the economic growth being registered by Ethiopia.

Following a discussion held with President Mulatu Teshome, IFC Executive Vice-President Jin Youg Cai told journalists that, as Ethiopia is due to start the Growth and Transformation Plan (GTP-II), there are a lot of requirements for capital thus the IFP delegates are here to learn the government’s plans and identify opportunities to support the economic growth.

He said Ethiopia has been registering the fastest economic growth in Africa as well as in the world with a very disciplined leadership and hard work people. “Because of this, we are encouraged to see the progress, be part of the economic development and a good partner,” he added.

In his discussion with IFP delegates, President Mulatu appreciated the IFC’s support and readiness to take part in the country’s economic development having prepared strong concept papers focusing on their specific areas of participation.

President Mulatu expressed Ethiopia’s readiness to receive support from the corporation particularly in the areas of the garment, textile processing, and leather industries. President Mulatu also called up on the IFC to keep up its role in the economic growth and assured the delegate that there will be other discussions.

Furthermore, the delegates were here to discuss how to strengthen the financial and technical support to the private sector and evaluate the status of the corporation’s assistance during the last two years during which the IFC gave support to private companies engaged in agriculture, consultancy, hotel and tourism and the like.

IFC, established in 1956 and a member of the World Bank Group, is the largest global development institution focusing exclusively on the private sector in developing countries. It is owned by 184 member countries.

Its work in more than a 100 developing countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=18163:ifc-expresses-readiness-to-support-ethiopias-economic-devt-&catid=52:national-news&Itemid=291

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Polish companies seek business partners in Ethiopia

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Members of the Ethio-Polish Parliamentary Group

14 March 2015  –  Written by  Kaleyesus Bekele 

- METEC to inaugurate polish tractor assembly line

Polish manufacturing, construction and IT companies are looking for business partners in Ethiopia with the view of forging joint ventures.

Up on the invitation of the Ethiopian parliamentary group (Ethio-Polish parliamentary Group) Polish parliamentarians and business people this week visited Ethiopia. The delegation comprising two parliamentarians and six business people led by Killian Munyama (MP), chairman of the Ethio-Poland parliamentary group in the Polish parliament, met Ethiopian parliamentarians, senior government officials and members of the Ethiopian business community. The delegation also held meetings with officials of the African Union.

The Polish business delegation comprising manufacturing, construction, coffee importer, IT and energy companies on Wednesday met Ethiopian businesses at Hilton Addis Ababa. Some 50 Ethiopian companies, who have shown keen interest to do business with Polish companies, held one-to-one meetings with the six polish companies representing more than sixty polish companies.

The business to business meeting was co-organized by the Polish Embassy in Addis Ababa and Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA). In his welcoming remark secretary general of ECCSA, Gashaw Debebe, said that Ethiopia’s relations with the Republic of Poland are far more solid than ever before. “Though the economic linkages between the two countries has been improved in recent years, mainly due to the encouraging achievements of economic reforms in Ethiopia and the enhanced bilateral relations between them, the trade and investment relations between the two countries is still lagging behind compared to the unexploited opportunities existing in them.

According to Gashaw, the total turnover between the two countries was only 23 million dollars in 2013, signifying the fact that much work is still needed to further enhance their trade and investment ties through the unrelenting efforts of the governments and business communities of the two countries.

Munyama, head of the Polish delegation, told The Reporter that most of the Polish companies are looking for Ethiopian partners. “Their line of interest is to put up joint ventures because we want the local community to be involved.  We want to create jobs.  We want to have a mutual benefit. We are not only after trade. We are looking at cooperation,” Munyama said.

Munyama said the business forum enables the companies to find a common ground to push forward to the relationship.

With the view of boosting trade and investment relations with Africa the Government of Poland in 2013 launched a trade initiative dubbed “Go Africa”. The Go Africa program enabled Poland to boost trade volume with African countries by up to 150 percent.  Polish export to Ethiopia increased by 106 percent in the last two years.

“We do believe that Ethiopia is one of the biggest markets in Africa we can be able to cooperate with,” Munyama said.

Polish companies are entering Ethiopian market. A prominent tractor factory, Ursus, is supplying tractors to the Ethiopian Metals and Engineering Corporation (MetEC). MetEC is assembling the tractors in Adama Tractor Assembling Factory. Ursus is delivering 3000 tractors to MetEC worth 90 million dollars. The company began exporting the first 1500 tractors last year at a cost of 50 million dollars. Ursus tractors assembling line in Adama Tractor Factory will be inaugurated in four weeks time.

One of the largest IT companies in Europe, Asseco Poland, has set its foot in Ethiopia. Asseco Poland is closely working with the Information Network Security Agency (INSA).  Munyama said that Poland wants to maximize the trade and investment relationship with Ethiopia.

“We are aware of the fact that some of the Polish products has entered Ethiopia though other European countries we want to change the trend, we want to establish a direct trade link between the two countries” he said.

Polish Ambassador to Ethiopia, Jacek Jankowski, told The Reporter that there is an increasing interest from Polish companies to do business with their Ethiopian counterparts. Jankowski said that there is a great potential between the two countries. “After my arrival in Ethiopia in November 2012 I have seen that the relation is getting stronger and stronger both politically and economically,” he said.

However, the ambassador said the level of bilateral economic relation between the two countries does not meet his expectation. “I see a great room for improvement and for bringing our countries closer and closer.”

According to Jankowski, polish software companies are cooperating with INSA, polish sugar factories are working Ethiopian Sugar Corporation. The biggest Polish chemical factory, the second biggest chemical company in Europe, will come to Addis Ababa to hold talks with the Ethiopian Chemical Corporation, Ministry of Agriculture and Agricultural Transformation Agency. Executives of the company will discuss the possibility that they can supply fertilizer and chemicals to the Ethiopian market.

“More Polish companies are showing interest to do business with Ethiopia,” Jankowski told The Reporter.  “Some in Poland thought that Ethiopia is not a good place to do business but this is now changing. Many Ethiopian companies have shown interest to establish contact with Polish companies. “It takes two to tango. We have Ethiopian business people and Polish business people who are both interested to do business, he added.

Jankowski also told The Reporter that at the end of this year the president of Poland is scheduled to visit Ethiopia.

Last year the Ambassador received an award from the Polish Ministry of Foreign Affairs called “Friend of Economy” (Amigos Economy) for boosting trade relations between Poland and Ethiopia.

The Polish embassy is closely working with the Ethiopian Chamber of commerce and Investment commission in strengthening trade and investment between the two countries.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3278-polish-companies-seek-business-partners-in-Ethiopia 

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Ethiopia dam, Gibe 3, project could start power generation by June – official

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The project should be fully operational by early 2016, an official said on Thursday.

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Gilgel Gibe 3 will nearly double the country’s energy output, helping to resolve chronic power outages and sustain a booming economy. Work started in 2008 and was due to be completed around three years later, but the project has faced funding shortages over concerns about its environmental impact.

“88 percent of the work for the Gibe 3 hydropower projecthas already been completed,” Azeb Asnake, chief executive officer of the Ethiopian Electric Power Corporation, told Reuters. Two of ten units would be ready by June, Azeb said, while one additional unit would come on line each month after that. Upon completion the project will generate 1,870 MW of power.

Ethiopia plans to spend a total of 12 billion dollars to tap the rivers that cascade down its craggy highlands over the next two decades in a bid to beat energy shortages and become Africa’s biggest power exporter.
The country’s economy is expanding by 9 per cent a year, and the dam is part of an infrastructure plan aimed at sustaining that growth. A bigger project, the 6,000 MW Grand Renaissance Dam, is being developed along the Nile.

Power outages are common in this country of over 90 million, where a majority still rely on subsistence agriculture. Addis Ababa’s nascent manufacturing sector is also attracting firms from China, Turkey and India to produce clothes, shoes and other basic goods, but frequent blackouts hamper economic activity.

Ethiopia already exports power to neighbouring Kenya, Sudan and Djibouti, and it has signed agreements with Tanzania, Rwanda and South Sudan, as well as Yemen.
Critics of Gilgel Gibe 3 say it will reduce water flow and devastate the fisheries of Lake Turkana, which is fed by the Omo. Ethiopian officials admit criticism led the European Investment Bank and the African Development Bank to turn down a request to disburse funds.

The Industrial and Commercial Bank of China stepped in four years ago with a loan of 500 million dollars to pay for turbines.

Azeb dismissed the concerns, saying Ethiopia’s research suggests regulating river flow will stabilise fluctuating water levels. “If they read these studies, they would not continue with their arguments,” she said.

http://hahudaily.com/ethiopia-dam-gibe-3-project-could-start-power-generation-by-june-official/

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Intellectual Property Office Gets New Director

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The office has been under an Acting Director since Berhanu Adelo’s removal in January

Ethiopian Intellectual Property Office (EIPO) is established in 2008. It is located along Tito St. around Kazanchis area.

A new Director General has been appointed for the Ethiopian Intellectual Property Office (EIPO) by decree from the Prime Minister’s Office as of March 6, 2015. Teshale Yona took the position on March 10, 2015, as per the appointment letter.

The EIPO had been under an Acting Director, Girma Bejiga, after the sudden removal of Berhanu Adelo by Prime Minister Hailemariam Dessalegn on January 2, 2015.

Teshale started his career in 1993 as a primary school principal. In 2006, after receiving a Bachelor’s degree in Law (LL.B) from the Ethiopian Civil Service University, he worked for one year as Sidama’s Zone prosecutor. He was then appointed to the Southern Regional State’s Justice Bureau, where he simultaneously served as Head of Bureau and Prosecution administration. After five years on that job, he studied for his Master’s degree in Law and his new assignment is his first after being awarded his second degree.

The letter sent from the Prime Minister’s office on January 2, 2015, removed Berhanu from his post and assigned the then Director of Patents Girma Bejiga, as Acting General Director effective the very same day.

Berhanu first started working as a teacher at Teacher Training Institute (TTI) in Bonga and worked his way up to head the Prime Minister’s Office. He also served as Assistant Chief of Justice for the Southern Regional State, lecturer at Civil Service College and Minister of Cabinet Affairs. Among the 36 members of the politburo of the EPRDF, where there were nine representatives from the South, Berhanu was one of them along with Prime Minister Hailemariam and Shiferaw Shigute since 2010.

At the fourth general election in 2010, Berhanu ran against independent candidate Ashebir Woldegiorgis, for the seat in the parliament of Bonga, representing Southern Peoples’ Democratic Movement (SPDM) and lost.

With the appointment of the new General Director, Girma is back to his former post as Director of Patent. Girma joined the office in 2005 and worked as Junior Trade Mark Examiner, Patent Team Leader and Patent Director through the years, until his latest assignment as Acting Director General. Girma has a Bachelor of Arts degree in Physics from Addis Abeba University (AAU) and a Master’s degree in Intellectual Property from the Italian Turin University. Before joining the EIPO, he was a teacher at different high schools in the Oromia Regional State.

The EIPO was established in 2008 to facilitate the provision of legal protection against exploitation of intellectual property in the country and has been collecting, organizing and disseminating technological information contained in patent documents. It also encourages its utilization, study, and analysis and makes recommendations for intellectual property policy and legislation. The office is accountable to the Ministry of Science and Technology (MoST), headed by Demitu Hambisa.

http://addisfortune.net/articles/intellectual-property-office-gets-new-director/

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1.6 million Jobs created in the past six months

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Addis Ababa: March 14, 2015  –

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Minister of Urban Development, Housing and Construction Mekuria Haile disclosed that 1.6 million jobs had been created in the past six months in several ordinary and mega projects of the country.

In addition to creating millions of job opportunities, efforts to reduce poverty and improve livelihoods in urban areas had been successful, the Minister added.

The 9^th Urban Development, Housing and Construction Sector summit begun yesterday in Adama. Manufacturing, construction, service, urban agriculture and trade were identified as the main areas where most of the jobs were created.

All rounded support, provision of loan, improved land administration and development saw progress while limited capacity and implementation problems proved a challenge, it was noted.

A progress report noted that there is a significant lack of capacity and gaps in performance.

The summit is expected to conclude tomorrow after regions exchange best practices.

http://www.fanabc.com/english/index.php/news/item/2433-1-6-million-jobs-created-in-the-past-six-months

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Home Grown Leather Holds Sway at District Level

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A square feet of leather that is sold in rolls at Merkato can make out seven pieces of shoes.

Visitors to the regularly held exhibitions in the sub city level everywhere in Addis Abeba would have their attention grabbed by the number of booths occupied by producers of leather products. shoes, belts, wallets, and sandals, all made of leather are the major products that occupy the spaces in the booths. These exhibitions provide market access, for the walk-in customers who buy the products.

TY, Fekade, Azenagash & Friends Shoe Work Union is a small enterprise that produces leather goods in one of the rooms in a condominium located in Ginfille Textile Production and Display Centre past Queens College in Arat Killo.

Fekade Woldeyes, the chairman of the Union, was sewing the leather pieces for shoes on a sewing machine. Two other members were also putting glue on the edges of the shoes and cutting the measured pieces of hide to suit their shoes.

Fekade Woldeyes showing the square feet of leather that is sold in rolls at Merkato

There were 10 members of the Union when they started in 2013 and five of them left not long after it was established, losing hope in the business as it lacked access to the market. Fekade’s Union was established with a start-up capital of 5,000 Birr. with each member contributing 500 Br.

“One of the major challenges in the business is the shortage of inputs that we use for the production,” Fekade said.

The inputs that are used for manufacturing leather products are fully processed hides that the producers cut into measured pieces and make the material that they want.

The hides, about 12 sq. feet each, are sold in bundles of 10 for 3,000 Br to 4,000 Br at Merkato’s Shera Tera by middlemen who buy from processing factories. One piece of these hides can make up to seven pairs of shoes. The other kind of leather that is used for the internal lining and tongue of the shoes is sold for 40 Br to 50 Br a kilo. It is very smooth, faint in texture and thinner than the leather used for the outer parts of the shoes. One kilo of this hide makes two dozen shoes according to Fekade. A synthetic lining that is used for the insole is sold at 90 Br a meter and this quantity makes one dozen shoes.

“The price in the market fluctuates over time, which limits our production capacity,” laments Fekade.

Fekade believes that it would be very nice if he could buy the raw material directly from the producers, which unfortunately does not happen for small-scale buyers like him as the producers prefer those that buy their products in bulk.

“I plan to grow big and export our products to the foreign market and we can do that as long as we maintain the quality of our products,” says Fekade. “The only thing that is hindering us is the lack of market linkage and the problem in the input market.”

Fekade Woldeyes, the chairman of TY, Fekade, Azenagash & Friends Shoe Work Union sewing the leathers to make up shoes at Ginfille Leather Textile Production and Display Centre

Salegziabher Fanta is a producer of such hides in Kality who operates on a rented plot of 4,500 sqm. He started producing in 2011 by buying semi-processed wet blue skins from bigger factories and upgrading them to a usable level. Before coming into the business, Salegziabher worked for Walia Leather and Leather Products Plc as a production manager. He studied Industrial Chemistry and joined the firm in June 2009 immediately after graduating from university.

He then invested his savings, totalling 5,000 Br, on machinery rental, which marked the beginning of the business, named Salegziabher Leather Production. Now he has bought six machines, five used machines and one new imported machine, each worth 1.5 million Br. Each machine has the capacity of producing 500 ox skins and 3,500 sheep skins a day.

Because of the lack of space for the processing, Salegziabher is limiting his capacity of production to 500 oxen skins a day. But he has the capacity of processing 6,000-oxen skin a week, receiving up to 2,000 skins a day from factories. One processed ox skin sells for 250 Br.

Established with such a small-scale production, Salegziabher now has capital value of 1.5 million Br and employs 15 permanent as well as seven temporary employees. He is planning to expand the plant to a level that can process skins from the beginning on 1,500 sq. m. of land with 34 machines. He has applied to the city administration for the plot of land that he requires.

“It requires us to spend up to 150,000 Br. for the installation of one machine. Therefore, we need to have one stable place to work,” Salegziabher told Fortune.

Salegziabher’s customers are both wholesalers and producers of leather products. But he prefers to sell to the wholesalers because of their financial capacity.

“Although the producers give me better price compared to the wholesalers, I sell mainly to the wholesalers as they take most of my products at a time,” Salegziabher said. “We give priority though to shoe producers as they give us better prices.”

According to data from the Federal Small & Micro Enterprises Development Agency, there are 564 small and micro level leather product producers in Ethiopia registered between the years 2010 and 2014 not including the regions Gambella and Afar.

Another small scale producer of leather products is Hussein Edris, manager of Hussein Leather Production Enterprise, who started out repairing shoes and now wants to buy machines and enter the export market. He had been in the business of making shoes out of finished skin for 20 years before establishing his enterprise in 2004 with 2,000 Br.

He started by producing sandals with one of his brothers and two relatives, then transformed to making covered shoes.

“We now make every kind of shoe and our customers are those who know our workshop,” says Hussein. “The only way we contact new customers is through bazaars held at the district.”

Although confronted by these challenges, the capital and the production capacity of these enterprises is increasing over time with some even reaching export level.

Bermero, a shoe producing private firm owned by Berhanu Isayas, is located at Piazza. He established the business in 2012 in 40 sq. m. of rented space but is moving from Piazza to Ginfille Textile Production & Display Center where he acquired a 400 sq. m. production space and a store. He plans to increase production five-fold as he has adequate production space that is separated from his shop. The shop was named Bermero, blending his name Berhanu with that of his wife’s, Meron.

“The market is very nice and I have started export of the products that we have made,” said Berhanu.

Once, a walk-in customer from Marseille in France ordered 500 leather bags but as it is the first time, he only sent 50 bags as a trial. He earned 4,500 dollars from that and is planning to open Bermero representative shops in Washington DC and in Zambia.

http://addisfortune.net/columns/home-grown-leather-holds-sway-at-district-level/

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By Gillian Parker

African Business Magazine – 16 March 2015

Sourced here  http://africanbusinessmagazine.com/sector-reports/mining/taxing-times-for-african-mining/