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China offers scholarship for 50 Ethiopian university students

ADDIS ABABA, Dec. 19 — The Chinese government through its Embassy in Ethiopia on Thursday offered scholarship for about 50 students of Addis Ababa University (A.A.U.).

The scholarship provides financial assistance of five years to needy students to enable them to pursue their studies at the University. There will be a total of 250 students in five years who will get scholarships.

At the signing ceremony of the scholarship on the premises of A.A.U, Admasu Tsegaye, A.A.U. President, recalled that Addis Ababa University and the Chinese universities had earlier started academic collaboration in different field of studies.

The president said the collaboration with China and the Chinese universities has positive impact as it contributes to the development endeavor of Ethiopia.” We are feeling the impact of our collaboration with the Chinese universities and with the Chinese government,” he said. “Today, we are very happy that the Ambassador offered scholarship for needy Addis Ababa University students. So, this scholarship will assist 50 students for five years. It will provide financial support for the needy and for very good students.”

The president said the collaboration is growing and benefiting the two sides. He also expressed belief that the collaboration between A.A.U. and the Chinese universities would further be strengthened in the future.

“We also started offering courses in Amharic language in Beijing foreign language university. So, the collaboration is a two-way; and so, we are benefiting; both the peoples of Ethiopia and China are benefiting from this type of relationship,” said Tsegaye.

The relationship between the peoples of Ethiopia and China is strong these days, he said.

There are many Chinese companies and industrial zone in Ethiopia, he said, revealing that the university would organize workshop in the near future to facilitate and enable industry- university link. Xie Xiaoyan, Chinese Ambassador to Ethiopia, stated that investing in university students is investing in the future leaders of a country.

Stating that the overall relations between Ethiopia and China are growing, Xie expressed happiness to contribute the education sector in Ethiopia.”So, I am so happy that I can contribute in a limited way to education causes in this country, especially at the Addis Ababa University. We provide financial support for students of excellence, and students in need to further their
studies at the university,” said the ambassador.

“I will continue to do that and this is just one of the steps I have taken. But the bigger picture is the overall relationship between our two countries, especially in the last few years. We have seen growing exchanges in many fields,” he said.

Xie also stated that the students would work for common causes and development of the country. He also highlighted the role of language learning in economic benefit and also in furthering cultural exchanges and better understandings among different peoples. Some of the students who have been awarded the scholarship told Xinhua that they are very happy about the scholarship.

One of the awardees, Getu Tegegn, a Chinese language student at the Addis Ababa University, said all of them feel good and they are happy about the scholarship. It will further strengthen the relations between the two countries, he said.

Mebrahtu Solomon, another student, who also visited China last year, said the scholarship from China motivate the students to further work hard. The Chinese government and the Chinese Embassy give us many scholarship opportunities; and the relationship between Ethiopia
and China is increasing from time to time, he said.

http://english.peopledaily.com.cn/203691/8491012.html

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French Trade minister expected Thursday in Ethiopia

The French foreign trade minister, Mrs Nicole Bricq, is due on Thursday in Ethiopia for a two-day visit aimed at strengthening the economic ties between the two countries, official sources told PANA on Wednesday.

The minister said that the visit was under the framework of the extension of the Elysee summit on “Peace and Security in Africa” held on 6 and 7 December in Paris. This is to strengthen the economic ties with a country that has recorded an average growth rate of 8% over the past few years and whose 2010-2015 five-year plan sets huge investments in terms of infrastructure.

The minister, who will be accompanied by officials of 30 companies, including 9 small and medium size firms and intermediary size businesses, will hold talks with the Ethiopian Prime minister, Haile Mariam Desalegn, the deputy-Prime minister, Debretsion Gebremichael, also minister of Communication and Information technology, and the minister of Finance and Economic Development, Sufian Ahmed.

Bricq will also visit the Hilina enriched food processing center Plc, a partner of the French company Nutriset, that has specialized in the production of food to fight malnutrition.

She will visit the wind power site of Ashegoda, Africa’s biggest wind power station, fully equipped by a French company.

French economic presence in Ethiopia is through direct foreign investments by French companies estimated at over 100 million euro in two sectors – the distribution of oil products (Total group) and viticulture (Castel group).

France is among the main European investors in Ethiopia after the United Kingdom, Italy and the Netherlands.

http://www.africanmanager.com/site_eng/detail_article.php?art_id=21169

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Ethiopia Picked Lazard to Procure its Credit Rating

Ethiopia has picked Lazard Ltd, French investment bank and asset management firm to procure credit rating companies for its debut sovereign Eurobond, Reuters reported today.

In interview with Reuters in October, Ethiopia’s Prime Minister Hailemariam Desalegn said, the country will also consider “not only a Eurobond but other bonds as well”, once it secured its credit rating. a debut sovereign Eurobond next month.

“We chose a French company. The second phase will be to initiate a rating for the country,” Sufian Ahmed, Ethiopia’s minister for finance and economic development, told a business forum attended by a delegation of 30 French firms.

The French delegation included officials from French banks BNP Paribas and Societe Generale, according to Reuters.

Buoyed by massive government spending on infrastructure and a growth in its services and agriculture sector, Ethiopia’s economy is set to grow 7.5 percent in each of the next two fiscal years, according to the IMF.

http://www.2merkato.com/news/alerts/2763-ethiopia-picked-lazard-to-procure-its-credit-rating

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ERA Awarded Chinese Contractor Dessie-Kutaber-Tenta Road Project

Ethiopian Roads Authority (ERA) today signed a 1.5 bln birr contract with China First Highway Engineering Co. Ltd (CFHEC) for the Dessie-Kutaber-Tenta road upgrade project, Walta Information Center (WIC) reported.

The 67.5 km long ten meters wide asphalt road upgrading project will link South Wello Zone to North Wello in the Amhara Regional State.

The Dessie-Kutaber-Tenta has a 24 km asphalt road built during the Italian occupation, which is now in poor condition from years of service. The remaining 34.5 km is a gravel road will be upgraded to asphalt.

“This project is part of the 2013/14 fiscal year annual plan. We believe the project will contribute to the overall economic growth of the area and it’s environs,” Zaid Woldegebriel said during a signing of the agreement at ERA’s headquarters today.

Financing for the project will come from the Ethiopian government and the Kuwait Fund, according to WIC.

“We treasure this opportunity. This project will be very challenging but we will make sure we finish it ahead of time with the required quality,” Yong Sheng, representative of CFHEC, said during a signing ceremony.

Established in April, 1963, CFHEC is an affiliate of China Communications Construction Company which has 15 years presence in Ethiopian road construction. CCCC major recent road projects in Ethiopia include the Addis Ababa – Adama Expressway and Africa Avenue (Bole Road) projects.

http://www.2merkato.com/news/alerts/2762-ethiopia-era-awarded-chinese-contractor-dessie-kutaber-tenta-road-project

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Tsehay Launched Construction on US$ 200 million Real Estate Project

Tsehay Real Estate Plc launched construction of the US$ 200 million International Center, at Yeka Sub City, Addis Ababa, Capital reported.

Qian Tang, a shareholder in Tsehay, said the urban complex will become the second icon of Sino-African cooperation next to the African Union Headquarters. After the copletion of the complex, the Chinese Chamber of Commerce in Ethiopia, Chinese funded organizations, Chinese merchants, a Sino-Ethiopian industrial and commercial organization will move into the complex. This will become the largest urban complex in Ethiopia and an architectural landmark, Tang added.

Tsehay Real Estate plans to complete the construction of the residential buildings within the next two year and eighteen months later, the commercial center, Capital reported quoting Tang.

The construction is being done in cooperation with the Institute of Architecture Design and Research, the Chinese Academy of Science and Qian Tang Construction Plc., Qian Tang told Capital.

“We want to help develop the urban area, create a comfortable living space and boost the real estate industry,” Tang said.

The center will host star hotel, international standard offices, residences, a commercial pedestrian walkway, cinema, fitness amenities and children’s amusement park.

http://www.2merkato.com/news/alerts/2761-ethiopia-tsehay-launched-construction-on-us-200-million-real-estate-project

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Agency Availed 3.6m Hectare for Agricultural Investment

Ethiopia’s Agriculture, Investment and Land Administration Agency availed 3.6 million hectares arable land to investors in the agriculture sector, Ethiopian News Agency reported.

Speaking on a training provided for investors engaged in coffee plantation in Oromia and South Ethiopia Peoples’ States, Agency Representative Asres Argaw said 470,000 hectares land has already been provided for Ethiopian and foreign investors for the cultivation of cotton, palm trees and sugarcane.

The Ethiopian government is working to increase the private sector’s participation in the agriculture sector, Asres said.

Asres said the conducive investment policies and strategies as well as incentives attracted more investors to engage in coffee plantations, a government priority area.

The Agriculture, Investment and Land Administration Agency is a newly established agency aimed at providing integrated support for investors and improve land utilization and production.

http://www.2merkato.com/news/alerts/2759-ethiopia-agency-availed-36-million-hectares-land-for-agricultural-investment

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African centre eyes linking minerals to local industry

The African Mineral Resource Centre, which is launched in Maputo Mozambique during the third African Union African mining ministers meeting today (December 16, 2013) envisages creating linkages between the continents rich minerals and the local industries.

The center secures 15.3 million funding from Canadian government envisages to become the centre of excellence and strategic support provider to African countries in mining related issues.

The envisaged centre of excellence is primarily funded by Canada and Australian governments, who are also known for their investment and the expertise in mining sector globally. Reports show that unless the continent properly manages its mineral resources, which is estimated to have value of $30 billion by 2030, its mineral resources will continue to be curse instead of blessing.

http://newbusinessethiopia.com/index.php/buss/152-investment/565-african-centre-eyes-linking-minerals-to-local-industry

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Ethiopia Welcomes Turkish Investment – State Minister

Members of the Turkish business delegation exploring possible investment opportunities in Ethiopia said they explored vast opportunities for investment in Ethiopia.

During a discussion State Minister for Foreign Affairs, Dewano Kedir, conducted with the delegation, head of the delegation and Board Chairman of a sugar corporation, Mr. Metin Uysal said they were very excited about the opportunities and expressed their enthusiasm to start investment in Ethiopia immediately.

Mr. Uysal also appreciated the support and attention given to them so far and said that Turkey regards Ethiopia as a very important ally. The state minister told the delegation that Ethiopia and turkey witness very strong relationship and has an additional foundation in investment and trade.

The State Minister affirmed the readiness of the government to work closely with Turkish businesses and urged the delegation to start operation in their respective sectors quickly. The fifteen member delegation is composed of business representatives from the steel industry, solar energy appliances manufacturing, mining, textile and garment, food processing and sugar production.

http://allafrica.com/stories/201312200098.html

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Fund Awards Two Grants for Agricultural Infrastructure in Africa

Washington — The African Development Bank’s Agriculture Fast Track Fund (AFT), a new multidonor trust fund created to increase agricultural productivity and reduce poverty, recently announced the recipients of the fund’s first two project preparation grants.

The project preparation grants will help attract investment in agricultural infrastructure projects in Côte d’Ivoire and Tanzania while strengthening links from farmers to markets to tables across Africa, the U.S. Agency for International Development (USAID) said in a December 17 press release.

“As a key supporter of the Agriculture Fast Track Fund, the U.S. government is fulfilling its commitment under the New Alliance for Food Security and Nutrition,” said USAID Administrator Rajiv Shah. “These exciting grants are helping to address food production and food security programs in East and West Africa, and are the first step in leveraging donor funding to catalyze private sector investment in support of Africa’s long-term economic growth and food security.”

In all, six firms from Tanzania, Côte d’Ivoire and Ethiopia were approved for funding under the AFT’s first round of grants, with a total funding amount of nearly $3.2 million.

Created as part of the New Alliance for Food Security and Nutrition and launched in May, the AFT is a nearly $28 million fund to spur agricultural infrastructure development in African countries that are members of the New Alliance, including Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Mozambique and Tanzania.

Launched in 2012, the New Alliance for Food Security and Nutrition is a joint commitment by African leaders, private sector partners, and Group of Eight members to accelerate responsible investment in African agriculture and lift 50 million people out of poverty by 2022.

The AFT finances project preparation grants, enabling firms to finance project design work such as feasibility studies, market analyses and environmental impact and other activities required by banks and other investors to issue commercial loans. The fund is supported by the governments of the United States, Sweden and Denmark.

These are among the first grants to improve African food security and nutrition:

- An award of $551,990 to the National Federation of Food Production Cooperatives to support project preparation for a food production and food security program in Côte d’Ivoire. The project aims to build six warehouses, three rice milling plants and four cassava processing plants, and secure equipment such as drip irrigation systems.

- An award of $220,850 to Darsh Industries for project preparation to set up a tomato processing plant in Iringa, Tanzania. Darsh will build, staff and purchase cargo trucks and equip at least eight collection centers in Iringa to serve as buying and outreach stations for local farmers.

The AFT is currently accepting applications for qualified projects through December 31. To learn more about the AFT, including how to apply for grants, go to the AFT website.

http://allafrica.com/stories/201312191541.html

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Gov’t, employers, employees need to develop dialogue: Ministry

The Ministry of Labor and Social Affairs urged the need to improve dialogue between government, employers and employees and build peaceful industrial relation.

Speaking in a relevant meeting held in Adama Town in Oromia State, the State Minister Dr Zerihun Kebede said establishing peaceful relation between employers and employees is important in ensuring transformation of the country’s agriculture led economy to industry led.

The Minister urged strong dialogue culture need to be developed among the three to realize development.

Peaceful industrial relation director with the Ministry, Zerihun Gezahegn on his part said the workshop is aimed at creating strong and peaceful relation among the three entities and improve production and productivity.

Over 80 participants drawn from the House of Peoples’ Representatives, Employers’ Federation, Confederation of Employees Associations, regional and city administrations and stakeholders are taking part in the three-day workshop.

http://www.waltainfo.com/index.php/explore/11705-govt-employers-employees-need-to-develop-dialogue-ministry-

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Ministry urges stakeholders to work closely to end gender based violence

The Ministry of Women, Children and Youth urged stakeholders to work closely to end gender based violence.

In a relevant meeting held in Gambella Town, the Minister Zenebu Tadesse through a representative said stakeholders should join efforts to end violence against women.

She urged the need to end gender based violence and ensure the social and economic benefit of women.

She urged government agencies and NGOs to contribute share to the efforts of the government towards creating a community that hate and fight violence against women.

State Representative Asheni Asteni on his part said the state government is working hard to end gender based violence and harmful traditional practices in the State.

http://www.waltainfo.com/index.php/explore/11704-ministry-urges-stakeholders-to-work-closely-to-end-gender-based-violence

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Related articles-

• 18 December 2013 News Round Up
• (UPDATED) 17 December 2013 News Briefs

Last week, Mark Lowcock, the Permanent Secretary of the UK Department for International Development delivered a public lecture at Addis Ababa University at the Faculty of Business and Economics. The lecture had a theme, ‘Economic Development: The good news from Ethiopia and what might make it better’.

“It is always a source of wonder for me how much the country has changed. I know how frustrating it is for Ethiopians that views of your country are still shaped by the terrible famines of the 1980s. Too many people wrongly think that Ethiopia is still suffering in the same way,” said Mark Lowcock.

The strides that Ethiopia has made away from poverty and famine, towards development and shared prosperity, make Ethiopia one of the world’s great development success stories of the last twenty years, said Mark Lowcock. In the last 30 years life expectancy here has increased by 50 per cent and the country is on track to meet most of the millennium development goals.

“You have achieved the infant mortality goal two years early,” Mark said. “Economic growth, in double digits, has been impressive. All the more so because, unlike other parts of the continent, it has not been driven by commodities alone. Per capita income has doubled.”

The major theme of the lecture was what drives inclusive growth and how best manage the transitions that growth may bring over the next 10 years. It was mentioned that it was so because, firstly, Ethiopia is already booming. But there are many questions that need to be addressed as there is still much to do. How can Ethiopia sustain its success? How can the country adapt to the changes which will come in its wake? In addition there may be useful lessons to learn from other countries too. Thus, adjusting to the challenges that transformation brings is just as important as sustaining growth.

The second reason is because of the fact that UK’s partnership with Ethiopia needs to adapt and change too. “This is our largest development program in the world. We are incredibly proud of the things we have helped Ethiopia to achieve to date. We want to be here for the long-haul. But we would like our relationship to change over time from a donor-recipient one to one of import-export and equal partnership on the world stage, on issues that affect us all, like climate change, world trade and counter-terrorism,” said the Permanent Secretary.

As to him, the UK wants to expand its work on economic development in Ethiopia. Mindful that in the long run, it will be the private sector development that will lead the process of job creation and provide the tax base for social spending and public investment by future generations.

Ethiopia has very clear ideas about where it wants to be by 2025, and the best way to get there. Every country grows differently, and finds its own path, the Permanent Secretary emphasized adding “but the common features of countries that have successfully transformed themselves. They are integration into the global economy, macroeconomic stability, high saving and investment rates, importance attached to property rights and letting markets allocate resources as well as the importance of committed, credible and capable governments as stated by the Commission for Growth and Development, set up by the World Bank in 2008 by looking at 13 success stories of sustained and transformational growth to see what feature they shared.

“With nine of these thirteen countries being East Asian, I think the ingredients have particular resonance for a country like Ethiopia,” he said. The first of the features which is integration into the global economy is characterized by the willingness and ability to import ideas, technology, and know-how and exploiting global demand.

He stated that Ethiopia is moving towards this kind of integration and publicly set a target to join the WTO. It has a rising and diversifying export base. There is also a booming services sector, to which energy exports could soon become a major contributor. And then again, foreign direct investment is being actively courted. However, said Mark, inward FDI flows have not yet matched the levels of other parts of Africa.

Regarding macroeconomic stability, he said that inflation would deter savers and threaten long term goals. “The Government has recently taken action to get inflation back under single digits and there is not the history of macroeconomic instability we see in much of Africa,” he added.

A key pillar of the success of the East Asian tigers was their farsighted decision to forgo consumption today in order to pursue higher levels of income in the future. Whilst savings rates have increased in Ethiopia in the last couple of years, they remain lower. Over the last five years, it has averaged less than 10 per cent of the GDP.

Together with the importance attached to property rights and letting markets allocate resources and the importance of committed, credible and capable governments, the five ingredients are a useful way of looking at Ethiopia’s progress and future choices, he noted.

It was mentioned on the event that it is also important to think about the way the world looks to those making important decisions on whether to consume or invest – or often whether to invest in Ethiopia, or somewhere else. He said the investment climate ie: the rules, procedures and norms that underpin how business in done. For instance, how much it costs to register a business, how long it takes to pay tax and the likelihood of being asked to pay a bribe when you do.

The final part of public lecture was on how to managing transitions. The Permanent Secretary said some changes countries face are inherent to the process of growth and rising incomes. Regarding demography, he said, Ethiopia has a young population: 85 million today and set to rise to 150 million by 2050. The median age of Ethiopians is already only just over 16. This would come with both challenges and opportunities.

This youth bulge has often been called a ‘demographic dividend’, with the majority of the population in work, rather than needing looking after. But it also creates pressures for service delivery and pressures on the labor force tomorrow. At some two million new entrants to the country’s labor force every year, that is more than the total number of people currently employed in the formal private sector, he emphasized.

The other transition which is linked to both structural change in the economy and demographics is urbanization. Ethiopia’s population remains overwhelmingly rural, he said adding, but urban centers are growing quickly….no country has advanced to middle income statues without significant urbanization. But still urbanization comes with both opportunities and challenges as urban centers are crucibles for innovation and specialization, they also causes upheaval and change, as to him.

The third transition is that as countries grow and its population gets more educated, wealthy and urbanized, history suggests that ways for that population to express their views openly and freely get ever more important, the Permanent Secretary stated. The final one is increased reliance on domestic revenues and other sources of finance.

He also noted that the UK is in this partnership for the long haul. “As Ethiopia’s development accelerates, our support needs to evolve too…we have begun our shift towards economic development already.”

Following, Mark held discussion with the University’s academic community on capital flow, job creation, equity and inequality, human development and rights, democracy, good governance the interests of UK overseas and the likes and responded to questions raised by students and instructors.

Regarding the question that what is behind UK’s motivation for supporting Ethiopia and other countries the Permanent secretary responded saying, “the first is moral responsibility to eradicate poverty while the second is the fact that as the UK has an open economy, progress in other countries will help our national interest.”

On the question of capital inflow he responded that the long term solution is to be an attractive location. On equity and equality, Mark noted that policy makers should ask the people what they think about this issue and come up with a solution. Concerning the question on human rights he responded that “economic growth comes with more freedom and I hope that policy makers take this in to consideration.”

Sourced here:  http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4654&Itemid=88

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Ethiopian Technological Ingenuity Features In 5th National Cities Week

Written by SOLOMON GEBRE-MEDHIN

The 5th National Cities Week which was held in Bahir Dar a few weeks ago proved to be a moment during when so many interesting experiences were exchanged among the participant towns and cities. Among other things promising creative works from youths organized under small and micro enterprises were showcased with which visitors were surprised.

A helicopter

One of the amazing creative works showcased at the exhibition was a helicopter which was assembled by the resident of Awasa Town, Yared Estifanos. The chopper which was assembled to have the shape of a traditional agelgil was rare thing one could witness. Displayed at the gate of the vast green field where the event took place, the assembled helicopter attracted so many visitors who spent moments with a surprise look. The little Yared always wondered how his creation could fly in the sky. But from yared told the visitors that ever since he realized about the relationship between flying and gravity, he could not sleep until realizing his dream of assembling a local helicopter. “Whenever I see something different, I usually ask questions such to how, and why that happened. He convinced himself that one can assemble an airplane if he/she knows about gravity well.

According to Yared, it took him him two years, and cost him around 200 thousand birr to complete the helicopter. From the price point of viewq Yared explained that his helicopter will be 90 per cent lower compared to the cost of the helicopters we see flying in the sky. Yared attributed his success in his creative work to his uncle who owned a garage, where he used to spend time after returning from school to learn some technical and maintenance works. “It is that experience which motivated me to continue working technical fields after completing my schooling,” said Yared.

Yared used to tell university graduates, particularly in natural science areas, that there is nothing impossible. So far, it was only him who has been doing things on his own; but he expressed hopes that the exhibition would open him opportunities for support and recognition of his invention from concerned bodies. He especially, emphasized on the need to give due attention on the part of the government for creative minds.

Having no experience of fling in an airplane in his entire life expect, Yared said that he gathered the information he needed for his invention from the internet. He learned about the motors and wings from his reading. He also expressed his delight over the feedback he got both from the visitors and the exhibitors.

The simulation software

Let us say that some one wishes to know how the beautiful Bahir Dar looks like while being in Addis. Or one would want to see the different parts of the historical city of Axum, without being there physically, but how? “Well, there is no problem!” says Denekew Berihun, Manager of Daf Tech Computer Engineering. Setting his table and computer he demonstrated the 3D Simulation Software. The software is developed in the form of game; but its objective is to introduce the city of Bahir Dar to visitors only using a computer simulation software.

Denekew who named the software ‘fitnetin lefitret’, one would be interested to see places outside of his/her reach through the computer simulation while at the same time entertaining him/herself with the game. According to Denekew, the software is also used to help people get acquainted with places they have never been to, the extent that they can easily recognize when they physically get to the places. According to Denekew, the software, which is the first of its kind in the country, updates when there is change in the actual places.

“The other major importance of this software is its power to attract youth and children and by so doing making them appreciate the culture and traditions of their own,” said Denekew. The software is accompanied traditional back ground song. For who emerges winner in the game with new software is rewarded with pictures of Axum, Lalibela and other historical sites.

The software, that is made to operate in both Amharic and English languages has also a document that provides information about potential areas of investment, and whom to contact and the likes. Denekew said that the software can be developed to operate in various languages.

Astonished by his invention visitors encouraged Denekew to expand his inventions. “Acknowledging cerative works boosts our confidence and motivates us to work hard,” he said appreciating those who gave him feedback. Denekew also emphasized the need to encourage such creative works by government bodies.

The electric train

Although questions are still hanging as to when transportation problem of the capital in particular, and the nation in general is solved, residents of Addis Ababa are at least comforted by the all out effort being made by the government to alleviate the problem by way of introducing light rail way. Inspired by the ongoing efforts, Sisay Weldu, from Adwa Town was capable of attracting visitors with his invention.

Being a Graduate in Machine and Manufacturing with advancing diploma, Sisay with the support from a friend came up with an electric train.. The electric train consumes 220 AC volt which is converted into over 400 DC to run the engine. “Compared to fuel consuming trains, this one is better for the environment,” Sisay said adding, ” this electric train will play a significant role in saving the foreign currency the country has to pay for importing oil.” Besides, Sisay indicated that the electricity generated to run the train can also be used to give light to the streets. Before planning big to see it being realized in cities, Sisay hopes to see the train giving service in short distances, such as in factories, schools and amusements places to children . According to Sisay, in order to scale up his invention on the electric train and make the project feasible, he needs financial support. “ I have the theories and I can upgrade my knowledge through reading; and if I get financial support, I can make my invention practical,” Sisay said. He further said that the youth must develop a sense of confidence and understand that everything is possible.

A water welding machine

Electric power is and will continue to be one of the major sources of power with which industries and factories of various kind, and lots of many other activities of humans will be carried out. Put in a simple language, power is a part of human life.

Ayele Agazi, a teacher at Alamata Technical and Vocational Training Institute in Tigray State, was able to win the attention of the visitors at the 5th Cities Week when he displayed a welding machine working with water and little amount of electric power. Describing the difference between the commonly used welding machine and his invention, Ayele said that the former was expensive with over10 ,000 birr cost , and involved a complicated process such as using a long wire, coil, sheet metals, and varnish. However, the one he has invented gives the required function with very minimum cost of 800-900 birr and involves less complicated process to run it.

He said the price of the machine he invented is relatively cheap because it is made from cheap and discarded materials. “ I used an onion chopping board as insulator, metals, 14 liters of water and non-iodized salt to produce the water welding machine. If for example, the steel to be welded is thick, a plastic bottle cup full of non-iodine salt is added to the water to increase conductivity,” he added.

On top of that, as Ayele said, power loss is one of the disadvantages of the commonly used welding machine- the more the round of the coil increases, the more power it requires. But, the machine he invented uses half of the power consumed by the common welding machine while providing the needed function. Moreover, unlike the commonly used welding machine his machine, is both portable and easy to repair. An hour is enough to produce this water welding machine., according to Ayele.”

The 10 machines he distributed for testing in Alamata, are proving to be effective, he added .

Ayele requested the close follow up and encouragement of both the state and the federal government for his inventions to be widely utilized in different parts of the country. He also advised others who engage in creative works to target majority of the people as potential users of the invention.

The sowing machine

For a country like Ethiopia, where more than 80 per cent of its people are engaged in agriculture changing the traditional way sowing deserves due attention. It is, however, crystal clear that farmers in the country have been doing the entire work of crop production in traditional way. Through such traditional and backward methods they have been feeding not only their family but also the nation Now there is a clear understanding by the government and other concerned bodies that it is high time for these farmers to be introduced with new and productive technologies. In relation to this one of the areas which has been given little attention was the sowing method . Broadcasting has been one of the solely used methods of sowing crops by almost all farmers of the country for centuries.

There is no doubt that agricultural production could have grown much better had farmers in the country adopted a better sowing technique. In this respect the use of a sowing machine is believed to help the farmer much. When the machine is used for sowing, it reduces the amount of labour, time and the wastage of seed.

In relation to this, Sied Adem, from Alamata, of Tigray showcased a promising invention of his. The machine Sied said invented sows seeds together with fertilizers in four rows at a time. Operated by a single individual the machine helps to sow a specific plot with one fourth of time needed to sow in the traditional broadcasting method.

According to Sied, the fact that the machine apart from saving time avoids wastage of seeds and fertilizer. Like other inventors who showcased their creative works Sied underscored the need for continuous financial and logistic supports from the concerned bodies for his invention to be able make a meaningful impact in the farming community.

http://www.ethpress.gov.et/herald/index.php/herald/development/5255-hopes-of-tomorrow

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• How Innovation Is Stimulating Agriculture In Africa
• Agency introduces three teff row-seeding technologies
• Text Message Technology to Assist Imports
• 11th Innovation Africa Digital Summit opens

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Ministry to Confer With Mining Companies

The Ministry of Mines is to confer with mining companies engaged in the exploration and production of minerals on the overall performance of the mining sector.

Senior officials of the ministry and executives of mining companies will meet at the Ghion Hotel on Tuesday and deliberate on the performance of the mining sector. A senior official at the ministry told The Reporter that the ministry is ready to discuss the bottlenecks that mining companies are facing.

The mining sector is becoming the major foreign currency earner next to coffee, Ethiopia’s number one export item. Ethiopia annually earns more than 600 million dollars from the export of minerals and gold takes the lion’s share. Tantalum and gemstones are among the list of exportable minerals. Artisanal miners are contributing a significant share to the mineral export. The country will soon become a major potash exporter.

In related news, the Minister of Mines Sinknesh Ejigu, on Wednesday has been appointed as new Ethiopian Ambassador. Sinkenesh, a chemist by profession, served the ministry for more than 20 years. She served the ministry as state minister for the past ten years. Tolossa Shagi Moti, the state minister of Mines, is expected to replace Sinkenesh as minister. It is not yet known who will fill Tolosa’s position.

However, sources close to the ministry told The Reporter that Dr. Tarekegn Tadesse, president of the Addis Ababa Science and Technology University would be appointed state minister. The Reporter was unable to confirm Dr. Tarekegn’s appointment.

http://allafrica.com/stories/201312230292.html

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Airport Enterprise to Invest U.S. $250 Million in Bole Airport Expansion

The Ethiopian Airports Enterprise is going to undertake a major expansion project at the Addis Ababa Bole International Airport passengers’ terminal at a cost of 250 million dollars.

The newly-appointed CEO of the Ethiopian Airports Enterprise, Tewodros Dawit, told The Reporter that in line with the Ethiopian Airlines Vision 2025 development strategy the enterprise is undertaking various airport development projects. The Addis Ababa Bole International Airport Passengers’ expansion project is one of them.

According to Tewodros, the expansion project includes the construction of a new passenger terminal as an extensions of the existing Terminal 1 (domestic and regional terminal) and terminal 2 (international terminal) with all related equipment and the construction of a new VIP passengers’ terminal.

The new terminal will house boarding areas, lounges, recreation centers, shopping malls, offices and other facilities. New boarding gates, boarding bridges, and a new parking area are parts of the expansion project. The new parking area will serve passengers and staff members. The other major component of the expansion project is the VIP terminal. The first of its type in Ethiopia, the VIP terminal, will be used by leaders, senior government officials, diplomats and other dignitaries. The VIP terminal will have various saloons, lounges, conference rooms, recreation centers, duty-free shops, an IT center and exclusive parking lot.

According to Tewodros, a 250-million-dollar loan has been secured from the government of China. An agreement was signed by the Ethiopian Ministry of Finance and Economic Development and the Chinese government. The Chinese construction firm, China Communications Construction Company (CCCC), will be the contractor for the expansion project. CCCC is a renowned construction company which is building the Adama-Addis Ababa expressway. CCCC is the parent company of the CRBC, another Chinese construction firm that built the Addis Ababa ring road project and a number of other roads in Addis Ababa.

CCCC brokered the loan deal with the Chinese Export-Import (EXIM) Bank. The loan negotiation took a year-and-a-half. An agreement will be signed by the Ethiopian Airports Enterprise and the Chinese EXIM Bank.

The design work of the expansion project is being undertaken by a Singapore company, CPG. According to Tewodros the final design of the expansion work will be completed after two months. Work on the project is expected to commence next March. The expansion work is expected to be finalized within three years.

The Addis Ababa Bole International Airport has two terminals. Terminal 1 is used to accommodate domestic and regional passengers while Terminal 2 is used for long-haul flights. Terminal 2, commonly known as the “new terminal”, was inaugurated ten years ago. It was anticipated to accommodate 5 million passengers a year but today it is handling 6 million passengers. Terminal 1, commonly called the “old terminal”, accommodates 500,000 passengers a year.

Ten years ago only 900,000 passengers used the Addis Ababa Bole International Airport every year. In the past ten years the passenger traffic has been growing by 25 percent each year and reached 6.5 million, surpassing the maximum limit of the airport capacity, 5 million. The Ethiopian Airports Enterprise renovated the domestic terminal (later named Terminal 1) and started to accommodate passengers enroute to regional destinations there. This helped to mitigate the congestion at the international terminal (Terminal 2).

When the planned expansion work is finalized, the Addis Ababa Bole International Airport will handle up to 25 million passengers a year. “We expect the passenger traffic to reach 22 million by 2025,” Tewodros said.

“Addis Ababa is a gateway to Africa. We are close to Europe, the Middle East and the Far East. So we want to link Africa to these regions,” Tewodros said. “Ethiopian Airlines is the leading airline in Africa and it is playing a big role in connecting Africa with the rest of the world and we want to have airports that can accommodate the growing demand.

Tewodros said the enterprise will soon put up a tender to hire a consultant that would supervise the construction work. The consultant will also undertake a study on the new airport planned to be built out of Addis Ababa.

Three locations have been identified for the construction of the new international airport (mega-hub). These locations are found near Mojo, Teji, and Dukem towns. The Ethiopian airport Enterprise is undertaking a study on the site location. An aviation expert told The Reporter that the Ethiopian Airports Enterprise wants to build the airport in a lowland area where jetliners use less fuel during takeoff. “Less fuel means the aircraft can take more load,” the expert said. “Modjo is ideal for the planned new mega-hub because of the low altitude. However, the remoteness of the site from the capital and the absence of convenient public transport is an issue to be addressed,” the expert added.

Dukem and Teji are close to Addis Ababa but their altitude is similar to that of Addis Ababa. In addition Teji does not have the required infrastructure. The enterprise has asked the International Civil Aviation Organization (ICAO) for technical assistance on the site selection. The consultant that the enterprise will hire for the Addis Ababa Bole International Airport expansion project will also undertake the study on the mega hub project. The consultant would undertake feasibility, technical, and financial studies as well as produce an airport master plan. The consultant will be tasked to study the integration of the Addis Ababa Bole International Airport with the mega hub.

http://allafrica.com/stories/201312230301.html?viewall=1

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IATA Calls Ethiopian Air Cargo Market the Fourth Fastest Growing in the World

The International Air Transport Association (IATA) last week announced that Ethiopia’s air cargo market is the fourth fastest growing in the world.

IATA’s Airline Industry Forecast 2013-2017 released at the IATA annual Cargo Media Day held on December 11 in Geneva, Switzerland, shows that Vietnam is expected to be the fastest growing country for air freight volumes over the forecasting horizon with a compound annual growth rate (CAGR) of 6.6 per annum, followed by Bangladesh (5.7 percent CAGR), Brazil (5.5 percent CAGR), Ethiopia (5.3 CAGR) and Peru (5.2 percent CAGR).

Africa is forecast to be the fastest growing region over the forecast period with a growth rate of 4.0 percent CAGR. According to IATA, the fastest growing freight route for Africa is the inter-Africa market (5.3 percent).

Not far behind Africa are the Middle East and Latin America, both with a CAGR of 3.8 percent and the Asia-Pacific at 3.5 percent per annum, followed by Europe and North America at 2.4 and 2.7 CAGR respectively. The report indicates that the five largest international freight markets will be the United States, China, Germany, Hong Kong and the United Arab Emirates. Desmond Vertannes, global head of cargo with IATA, told The Reporter that the growing investment coming from Asia to Africa is boosting the air freight business in Africa. “China’s increasing Trade and investment in Africa is a big contributing factor. African exporters are finding new markets. The big contributor is the perishable cargo industry. The perishable industry, the flower, fish industry and the manufacturing industry contribute to the growth of the air cargo in Africa,” Vertannes said.

According to Vertannes, Ethiopia is doing an exemplary work in expanding cargo transport sector. Ethiopian Airlines is acquiring new cargo fleet and building new cargo terminal. He went on to say that expanding the handling facility to greater capacity will help the country’s economic growth. “Lots of African countries can do the same thing. They are enhancing the handling capacity for the air cargo. I congratulate Ethiopian Airlines for pursuing working with their customs authority on e-freight agenda. They have been very good in adopting the e-freight business. We want to encourage other African countries to follow suit. We know that it is happening in Kenya and South Africa. But more countries should join the club.”

Ethiopian Airlines CEO Tewolde Gebremaraim told The Reporter that Ethiopain is the largest cargo operator in Africa and among the top fifty in the world. Tewolde said Ethiopian currently operates a fleet of 6 dedicated freighters to 24 destinations around the world and carries annually around 200,000 tons of cargo. Over the last years, Ethiopian has seen a huge upsurge in our cargo operations thanks largely to the growth of Ethiopia’s exports.

“In 2005-06, our cargo revenue was just 610 million birr. In 2012-’13, it was close to 6 billion birr, a tenfold increase. Ethiopia exports mainly perishable products such as flowers, vegetables and meat, which are carried by air and in bulk by Ethiopian Cargo.”

Tewolde said although the cargo business is very difficult in the current context of slow global economic growth, persistently high fuel price and imbalanced directional flows, the economic growth of Africa in general and Ethiopia in particular as well as our competitive advantages give us great confidence about the future prospects. Africa-Europe and Europe-Africa cargo business is expected to grow by between 5-6 percent per annum over the next years. Owing to the growing economic and trade ties between Africa and Asia, robust air cargo growth is also forecast between the two regions.

“Our cargo business has strong competitive advantages such as recognized brand in Africa, strategic location, low unit cost advantages, economies of scale with strong hub and spoke network, deployment of latest technology, growing exportable products in north-bound direction, and synergetic advantages with cross utilization of resources with our other businesses,” Tewolde said.

He continued, “We are now into the fourth year of our Vision 2025 Ethiopian Cargo strategic roadmap and are meeting all our targets. In line with our Vision 2025 Ethiopian Cargo strategic roadmap, we have recently established our cargo business as a full-fledged profit center of the Ethiopian Airlines Group with the aim of fully tapping into the fast growing air freight business between Africa and the rest of the world.” The airline has also started to implement multiple cargo hub strategy with its partner airline in West Africa, ASKY, by deploying a B737-400 freighter, which, through its West African hub, in Lome, Togo, is collecting outbound cargo from West and Central Africa and feeding Ethiopian global cargo network. Similarly, the airline is distributing in-bound cargo to the entire West and Central Africa region through this partnership. The airline intends to replicate this model in other regions of Africa. The airline’s Vision 2025 Ethiopian Cargo strategy is based on 4 pillars. The first is the fleet. The national flag carrier continues to expand its cargo fleet with 4 additional Boeing B777F on order, two of which will be phased-in in October and November 2014, while the remaining two will arrive in September and October 2015. By 2025, the airline plans to operate close to 20 dedicated freighters to 37 destinations across five continents.

The second is infrastructure. Currently, the airline has a cargo terminal with over 300,000 tons annual capacity. The airline recently completed a state-of-the art cold storage facility with a 65,000 tons annual capacity and is in the process of building, in two phases, a new cargo terminal with a 1.2 million tons annual capacity, which will be one of the biggest in the world.

Tewolde added, “The third pillar of our strategy is human resource development. We are investing heavily in our Aviation Academy so that it is able to produce sufficient technical and leadership personnel for our growing cargo business. Over the last three years, we have invested around 55 million dollars into the expansion of our academy, which now has 1,000 trainees intake capacity.”

Tewolde said his airline is improving its systems, processes and procedures, with the aim of providing the most efficient cargo service to its customers. “We have started to implement e-AWB since 2012 and are finalizing preparations to implement e-freight with the expected ratification by Ethiopia of the 1999 Montreal Convention and are working to achieve cargo 2000 (C2k) certification by 2015.” This would enable the airline to process airway bills fully online. IATA says Ethiopian is taking the lead in Africa by introducing the e-freight business. The national flag carrier plans to carry 820,000 tons annually and to generate 2 billion dollars from the cargo business by 2025.

http://allafrica.com/stories/201312230289.html?viewall=1

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International Carriage Convention Presented for House Ratification

The Convention for the Unification of Certain Rules for International Carriage by Air was presented to the House of Peoples’ Representatives (HPR) for ratification in a bid to help Ethiopian Airlines meet the precondition of other signatory nations that the carrier services.

The Convention was established in Montreal on May 29, 1999, coming into force in 2003 as it replaced the “Warsaw Convention”.

The attached document presented to the House along with the convention explains, “The country has frequently been requested to ratify the convention, and Ethiopian Airlines was challenged to endorse the agreement and translate it into practical implementation as a precondition for its journey to countries who have already agreed to the terms of the convention.

“For Ethiopia, the ratification of the agreement will elevate our country’s aviation development to a better level,” the document read. “Furthermore, it enables the safety of passengers, passengers’ belongings and cargo.”

According to the document, the convention was presented to the House upon request by Ethiopian Airlines, who is the responsible body to which the law applies.

The agreement states that compensation claims should be made within two years, and the convention also forces countries to either accept or reject the whole document with no reservation.

According to the proposed draft law presented for the House’s ratification, the Ministry of Transport is empowered to undertake all acts necessary for the implementation of the convention, in collaboration with “the concerned” government organs.

The convention applies to the international carriage of persons, baggage or cargo performed by aircraft for reward. Similarly, it applies equality to gratuitous carriage performed by an air transport undertaking.

The convention recognizes the importance of ensuring the protection of the consumers’ interests, and the need for equitable compensation based on the principles of restitution.

It was also said that the convention reaffirms the desirability of an orderly development of international air transport operations, and the smooth flow of passengers, baggage and cargo in accordance with the principles and objectives of the convention on International Civil Aviation.

http://allafrica.com/stories/201312230302.html

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Mofed to Introduce Credit Rating Process

The Ethiopian government is pushing to adopt a credit rating system in the country to assist foreign companies, the Ministry of Finance and Economic Development (MoFED) has disclosed.

Asked by BNP Paribus – a French bank which co-financed the Ashegoda wind farm in Ethiopia – about the issuance of sovereign insurance and bonds here, Sufian Ahmed, the minister for MoFED, said that plans are well under way to have Ethiopia rated for financial and credit worthiness by international agencies. Though he did not mention the agencies currently undertaking the foreign credit rating process, Sufian said that they have chosen a French company Lazard Limited bank and asset management to initiate proceedings and tender bids. Fitch, S & P, Moody’s and Trading Economics are the most renowned rating agencies, used by many countries.

Sovereign credit rating is the rating of a sovereign national government, and it indicates the level of risk when investing in any given country. The credit rating takes political risk into account, and is used by anyone looking to invest abroad

Total Ethiopia and BNP Paribus were some of the companies that accompanied the minister at the signing of loan agreements, held at MoFED. Total Ethiopia requested that MoFED consider the fuel profit margins, which are critically low in Ethiopia. Alstom, another French company that has been building and renovating high voltage electric stations and turbines, requested the resolution of the tax issues the company has experienced since 2011. Nicole Bricq, the French foreign trade minister, urged the Ethiopian government to be a “loyal and fair competition” agent. The minister was forced to call for fair play following the reference by the Ethiopian Chamber of Commerce and Sectoral Association (ECCSA) to the poor trade and investment relationship between the two countries, despite the longstanding political and economic ties.

Mulu Solomon, president of the ECCSA, commended China and Turkey for investing more in Ethiopia, while mentioning that France has acted poorly in this regard. Nicole agreed that the business and economic ties of the two countries have not been to the level of her expectations. “We know that we are not alone. The competition is loyal and fair, but we are not afraid of the Chinese or Turkish,” she said.

On Thursday, Bricq signed two concessional loans of 70 million Euros. According to the agreement, 50 million Euros is destined to finance the implementation of a power transmission network which borders the Bishoftu, Dukem, Modjo and Ginchi towns of the Oromia Regional State. The remaining 20 million Euros will help the solid waste management of the capital, Addis Ababa. The existing landfill, Koshe, will be relocated to Sendafa-Buke town, some 38km northeast of the capital.

Bricq arrived in Ethiopia on Thursday for a two day official visit, leading some 25 French companies keen to invest in the country. She met with higher government officials, attended a business-to-business meeting held at the Sheraton Addis on Thursday, and visited the Ashegoda wind farm power project, constructed through the concessional loan of 210 million Euros by France.

http://allafrica.com/stories/201312230299.html

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Ethiopia Earns U.S.$24.4 Million From AGOA Benefit

Ethiopia earned nearly 24.4 million dollars relying on the US government’s African Growth and Opportunity Act (AGOA).

The revenue was obtained during nine months period from January to September 2013, data obtained from the Ministry of Trade (MoT) reveals. Exports from Ethiopia through AGOA are mainly apparel and leather sectors.

With newly added export items such as root crops, factory-produced malt and various types of flours, the country’s revenue is showing a rise.

According to the Ministry, the country’s export to the US has been growing by about 80pc over the last 12 years since the introduction of AGOA.

AGOA, which was first signed into law by former US president Bill Clinton in 2000, offers incentives for eligible countries in Sub-Saharan Africa to export their goods to the US markets duty-free. Currently, there are 39 AGOA-eligible African countries.

http://allafrica.com/stories/201312231605.html

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Ayalew Heads to Turkey, and Sinqenesh to Brazil

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Ayalew Gobeze, president of the Amhara Regional State                     

They were relieved of their respective office to be appointed as ambassadors to Turkey and Brazil, respectively.

Ayalew Gobeze, president of the Amhara Regional State, and Sinkenesh Ejigu, minister of Mines, have been appointed as ambassadors to Turkey and Brazil, respectively. This comes  after the Amhara National Democratic Movement (ANDM) held its congress in Bahir Dar, the seat of the Amhara Regional State where the party is governing.

It has not been clear what prompted this change. But senior leaders in the party say it is part of the succession plan the party has been carrying out in recent years.

“The party’s leadership wants them to serve in other assignments which it deems are crucial,” said a senior leader of ANDM, dispelling rumors that the two officials were reassigned due to poor performance or a result of an interparty squabble.

Both Ayalew and Sinkenesh have served in their respective positions for close to eight years.

Ayalew, a humble personality well liked by many in the Amhara region, has been serving the regional state as president since 2008, where he began his debut as a senior official of the regional cabinet in 2005, under Addisu Legesse. He has also been a member of the House of Federation, since 2005. However, his ascendance in the ruling party began in 2006, when he was first elected as an executive committee member of the ANDM, during the sixth congress of the party.

A teacher when EPRDF insurgents advanced toward Addis Abeba in the early 1990s, Ayalew represents a generation of EPRDFites that have joined the party after the fall of the military government, in May 1991. He is the peer of Demeke Mekonnen, now chairman of the ANDM and deputy prime minister, and Gegu Andargachew, his deputy. The latter began his ascendancy in 2005, after he was appointed to be member the Budget Subsidy & Revenues Affairs Standing Committee of the House of Federation.

Chaired by Ayalew, the 10-member committee had comprised politicians such as Shiferaw Shigute, now minister of Education, Redwan Hussien, now director general of Government Communications Affairs Office, Abadula Gemeda, speaker of Parliament, and Abay  Woldu,  president of the Tigray Regional State.

Gedu has been appointed as president of the Amhara Regional State, although the assembly of the regional administration’s council has yet to endorse his new role. He became an executive committee member of the ANDM in the same year as Ayalew, although both have been members of the party’s central committee since 1999.

Ayalew is soon to travel to Ankara,Turkey, to serve as Ethiopia’s ambassador, filling the vacant position there, following the departure of Mulatu Teshome (PhD), now president of the Republic. President Mulatu is credited for enhancing, substantially, not only the bilateral trade between the two countries, but also attracting foreign direct investment from Turkey’s investors, particularly in the textile industry. Close to 115 Turkish companies have invested 1.2 billion dollars in Ethiopia since 2003, while its contractors have managed 21 projects with a total projected cost of 2.4 billion dollars.

During Mulatu’s tour of duty, Turkey became the ninth largest trading partner for Ethiopia, with a bilateral trade volume of a little less than half a billion dollars, in 2012. Largely exporting iron and steel to Ethiopia but also industrial machineries, the trade balance remains in favour of Turkey, with a trade surplus of nearly 350 million dollars.Ethiopia exported in the same year to Turkey close to 47 million dollars worth of primary agricultural goods such as oilseeds, fruits, cereals and industrial outputs including textile, yarn, fabrics and apparels.

Another emerging economy where Ethiopian officials are keen to establish stronger ties is Brazil, a country of nearly 200 million people with an economy that has 2.2 trillion dollars in gross domestic product (GDP). It is the sixth largest economy in the world.

Prime Minister Hailemariam has appointed Sinkenesh, a minister of Mines up until last week, to serve as Ethiopia’s first ambassador to Brazil.

Both countries opened embassies in their respective capitals in recent years, although they have a history of brief relationship back in the late 1960s. It was during Emperor Hailesellasie’s visit to the country to visit how its leaders changed the capital from Rio de Janeiro to Brasilia that he had suffered a failed military coup back home. The Emperor was keen to move Ethiopia’s capital from Addis Abeba to Bahir Dar.

The two countries did not see it fit to continue such high level diplomatic representation, thus closed them soon after Ethiopia closed its Embassy in the same year it had opened its Embassy in 1968, and Brazilin 1970. It took another 45 years before Brazil took the initiative to reopen its Embassy in Addis Abeba. The same ambassador is also accredited to the Africa Union (AU).Ethiopia reciprocated this move in reopening its embassy in 2011. The late Prime Minister Meles Zenawi was the second leader of Ethiopia to visit Rio de Janeiro in 2011, and President, Dilma V. Rousseff visited Ethiopia this year, the first for Brazil’s leaders.

Sinkenesh is the second senior government official who is also an executive committee member of the ANDM to leave office on Thursday, December 18, 2013. She leaves behind a ministry where she has been serving since 2001. She was first a state minister for Mines under Mohammed Dirir, now Ethiopia’s ambassador to Egypt, and a minister since 2010. Her ministerial position is filled by her deputy, Tollosa Shiga, sources disclosed to Fortune.

http://addisfortune.net/articles/ayalew-heads-toturkey-and-sinqenesh-tobrazil/

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Court jails corrupt individuals

The Federal High Court said it has given up to ten years rigorous sentence and 20,000 birr fine last Tuesday to four individuals accused of corruption.

Accordingly, the court gave a six years and a half rigorous prison term and 3,000 birr fine to each of two of the individuals namely Aysheshem Gebre and Aklileberhan Ababu.

The individuals, who were tax auditors at a branch office of one of the Ethiopian Revenue and Customs Authority, were caught red-handed receiving bribe from the manager of a certain organization, while they were assigned for auditing works.

The Court said Daniel Tesfa Eyesus is also given a similar prison term and is fined 10,000 birr. Daniel, who was staff of the Ethiopian Airlines accused of embezzling 379,962 birr.

Similarly, Zebiba Eshete is given 10 years rigorous prison term and fined 20,000 birr. Zebiba, who was a coordinator of Orbis Project at the eye surgery section of the Hawassa University, was accused of embezzlement of 567,224 birr worth pharmaceuticals.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5299-court-jails-corrupt-individuals

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Germany grants additional funds for humanitarian assistance, resilience building in Ethiopia

According to the press release the German Embassy sent to The Ethiopian Herald, the German Federal Ministry for Economic Cooperation and Development has allocated an additional amount of 19.52 mln. euros (501,664,000 birr) to the Government of Ethiopia. The funds will be allocated to a Protracted Relief and Recovery Operation of the World Food Programme (WFP) via KfW Development Bank responding to humanitarian requirements of Ethiopia and enhancing resilience to food insecurity.

Earlier in the year, the German Foreign Office had already supported WFP’s PRRO 200365 (Food Assistance for Somali, Ertrean and Sudanese Refugees) with 750.000 euros. UNHCR received 1,1 mln. Euros for the project “Health and WASH Assistance to Refugees in Ethiopia” and 400.000 euros for the project “Protection and Assistance to Somali Refugees” in Jijiga. Additionally, the German Foreign Office has funded NGO projects in the refugees camps and in Afar with 1.4 mln. euros in 2013.

In total, in 2013 the German Government has supported humanitarian and resilience building projects in Ethiopia with 23,17 mln. euros (595,469,000 birr).

These funds are additional to the commitments made for official bilateral development cooperation with over 40 million euro per year, the active engagement for development of Non-Govnermental Organizations funded by Germany as well as German contributions to various multilateral institutions, notably the European Union (with over 20 per cent of EU development cooperation being funded by the German Government), the United Nations as well as the World Bank and African Development Bank.

http://www.ethpress.gov.et/herald/index.php/herald/society/5290-germany-grants-additional-funds-for-humanitarian-assistance-resilience-building-in-Ethiopia

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Revenue of horticulture export increasing

Amount of revenue Ethiopia is securing from the horticulture sector is increasing year by year, the Ethiopian Horticulture Producers and Exporters Association reported.

Association Chairperson Zelalem Mesele told ENA that the country has obtained 265.71 million USD during the 2011/12 year, which shows a 41.71 million USD increase compared to the previous year.

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Ethiopia set to commence 3rd phase PCDP program with over $ 209 mln

Preparations are underway to begin the 3rd phase Pastoralist Community Development Project (PCDP) program with over 209 million US dollars next month, the Ministry of Federal Affairs said.
Ministry Public Relations Office Head, Abebe Worku, told WIC today that the third phase was launched following the successful implementation of the first and second phases.
The over 209 million US dollars project will be held in the pastoral community areas of Somali, Afar, Oromia and SNNP regional state, he indicated.
Out of the total fund, 110 US dollars was obtained from the World Bank, 85 million dollars from the International Fund for Agricultural Development (IFAD), 13.2 dollars from beneficiary community and the balance from the government of Ethiopia, he said.
The project is expected to benefit 369, 161 pastoralists and semi-pastoralists in the aforementioned four regional states when it is completed, according to Abebe.
Pastoralist Community Development Project is part of the government’s plan to bring about equitable development across the country, it was learnt.

http://www.waltainfo.com/index.php/explore/11798-ethiopia-set-to-commence-3rd-phase-pcdp-program-with-over–209-mln-

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Ethiopia – Improvements in Utilizing Agoa

Ethiopia’s export to the United States has seen a steady growth in both value and variety over the past decade. The Ministry of Trade’s latest figures show that Ethiopia has exported more than 24 million USD to the US market in the nine months since January of this year. The revenue was obtained from export of garment, leather products, and silk. New additions to Ethiopia’s export portfolio also include factory produced malt and flours, an encouraging result in the country’s plan to increase export of value added items.

The nine month performance indicates that the country has been on a steady course to improve its export regime and try new markets other than traditional export destination. The increase in export to the United States is also an improvement in Ethiopia’s capacity to utilize the benefits of the African Growth and Opportunity Act, an initiative launched in 2000 by the US government to provide sub-Saharan countries duty-free access to the US market.

http://allafrica.com/stories/201312241133.html

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Megech Irrigation and Drinking Water Dam Project Launched

Construction on Megech Irrigation and Drinking Water Dam Project is launched, Fana Broadcasting Corporation reported.

The 1.8 billion m3 dam project, which will be built on Megech River near Gonder town, has a total of 2.4 billion birr budget allocated by the government, according to Fana.

Manager of the project Agonafir Zewde said the dam would allow the development of 17,000 hectares land using irrigation, in addition to securing drinking water supply for Gonder town for a century.

The construction of the 76m high and 890m long dam is being carried out by Water Works Construction Enterprise.

http://www.2merkato.com/news/alerts/2775-ethiopia-megech-irrigation-and-drinking-water-dam-project-launched

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ESE Expects to Harvest 304 thousand Quintal of Select Seed

Ethiopian Seed Enterprise (ESE) expects to harvest over 304 thousand quintals of select seed during the ‘Meher’, a major harvest season in Ethiopia.

Aweke Belete, Public Relations Head of ESE told Walta Information Center that the select seed certified by agricultural experts, cover nearly 15.6 thousand hectares. This includes a farm owned by the Ethiopian Seed Enterprise, state farms and small holder farmers.

The amount of select seed expected to be harvested during the Meher season fell 18 percent lower than the previous year and five percent lower than the ESE projection due to mainly irregular rainfall, Aweke said.

Harvesting for the ‘Meher” season began a month ago and is expected to be finalized by the end of January.

http://www.2merkato.com/news/alerts/2772-ethiopia-ese-expects-to-harvest-304-thousand-quintal-of-select-seed

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Ethiopian Secures Financing for 4 Boeing 777-200 LR Freighters Deliveries

Ethiopian Airlines has mandated Natixis as Pre Delivery Payment (PDP) Facility Lead Arranger and Eastern and Southern African Trade and Development Bank (PTA Bank) as PDP Facility Co-Arranger to provide pre-delivery payment loan financing for its batch of four new Boeing 777-200 LR Freighter aircraft, to be delivered between autumn 2014 and winter 2015.

Ethiopian Airlines, Natixis and PTA Bank have announced today that they have completed the multi tranche PDP financing. Boeing will deliver 4 B777-200 LRF to the airline which will be operated in the group’s expanding cargo network around the world.

Ethiopian Cargo is the largest cargo operator in Africa with a network covering 24 destinations across Asia, Europe, Africa and Middle East, using 6 dedicated freighters. The addition of the 4 B777-200 LR Freighters is part of Ethiopian Cargo Vision 2025 strategic roadmap of supporting the fast growing exports of perishables from Ethiopia and enabling increased trade between Africa and the rest of the world.

“We are phasing-in the latest technology cargo aircraft with the aim of supporting Ethiopia’s exports and the booming trade between Africa and the rest of the world. The B777-200 LR Freighters have proven capabilities that are ideal for the transport of perishables. In addition to our two existing cargo hubs in Addis Ababa and Liege in Europe, we have recently established a third cargo hub in Lome, Togo, with our partner airline in West Africa, ASKY Airlines. Going forward, we plan to establish similar cargo hubs in Southern and Central Africa with the aim of facilitating trade and investment within Africa and between Africa and the rest of the world”, said Chief Executive Officer of Ethiopian Airlines, Tewolde Gebremariam.

Admassu Tadesse, President of the Eastern and Southern Africa Trade and Development Bank, remarked: “There is no doubt that Ethiopian Airlines is playing a very important role in inter connecting Africa with itself, and the rest of the world. As a regional financial institution, we are pleased to continue to support Ethiopian as it grows and serves Africa better than ever. It is certainly giving practical expression to its mantra as ‘The new spirit of Africa’”.

In line with its Vision 2025, Ethiopian Cargo aims to generate 2 billion dollars in revenue , uplift 820,000 tons of cargo and operate to 37 destinations using 18 dedicated freighters by 2025.

http://www.2merkato.com/news/alerts/2771-ethiopian-secures-financing-for-4-boeing-777-200-lr-freighters-deliveries

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 CSA Projects 10% Crop Production Increase by Smallholders

The Central Statistical Authority (CSA) of Ethiopia projects a 10 percent increase crop production yield by smallholder farmers in the current fiscal year, Ethiopian Herald reported.

CSA’s director, Samia Zekaria told at a press conference yesterday that the data collected collected by the Agency last September has shown that, the country’s crop production could grow by 10 percent compared to a year earlier.

About 254 million quintal of yield is expected from 12 million hectare of land, a 23 million quintal increase from last year’s produce on almost the same amount of land covered by crops, Samia said.

The CSA’s projection covers only smallholder farmers, the main harvest season, and rain fed agriculture. Harvests from commercial farms, the belg season and crops cultivated with irrigation are not covered in this projection. The survey does not also took into consideration post harvest yeild loss, according to Samia.

http://www.2merkato.com/news/alerts/2770-ethiopia-csa-projects-10-crop-production-increase-by-smallholders

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Bishoftu Farm Service Center Inaugurated

The U.S. Agency for International Development (USAID) announced the inauguration of the Bishoftu Farm Service Center (FSCs), last Tuesday, December 17, 2013, Ethiopian Press Agency reported.

The Bishoftu Farm Service Center is the first of six such centers established to provide training to rural entrepreneurs and create Ethiopian-owned retail farm supply and service centers, according to the Ethiopian Press Agency.

Additional FSCs will also be opened in Ambo, Dodola, Fiche, Nekemte and Shashamane towns in the Oromia State.

These private, retail supply and farm service businesses will serve as innovative models in Ethiopia and throughout Africa.

In addition to a trained staff that provide services and training at each location, the FSCs also provide agricultural inputs, such as, quality seeds, fertilizer, plant protection products, and veterinary products, information and marketing links for Ethiopian smallholders, allowing them to transition from subsistence to commercial production, according to the Ethiopian Press Agency.

Implemented by CNFA, formerly the Citizens Network for Foreign Affairs, the USAID Commercial Farm Service Program provides grants and training to rural entrepreneurs, to create Ethiopian-owned retail farm supply and service centers.

The Commercial Farm Service Program is a two-year pilot activity of USAID supported by President Obama’s Feed the Future Initiative.

http://www.2merkato.com/news/alerts/2769-bishoftu-farm-service-center-inaugurated

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House Passed Hides and Skins Marketing Law

The Ethiopian House of Peoples’ Representatives passed the revised Raw Hides, Skins & Hides Marketing Proclamation during its ninth regular session on Thursday, The Reporter reported.

The law is said to streamline raw hides and skins trading process and strengthen the care accorded to hides and skins.

According to the proclamation, the law is aimed at to target the existing challenges in the supply and quality of leather and hide, and expanding a modern and fair trade system.

The revised law will limit the number of people involved in the marketing process with no contribution to the supply chain, to reduce prices.

The new proclamation passed with after a short deliberation, with a unanimous vote.

http://www.2merkato.com/news/alerts/2768-ethiopia-house-passed-hides-and-skins-marketing-law

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Related articles

• 23 December 2013 News Review (allanapotashblog.org)

Bisheftu-Alema FSC supplies different agricultural inputs (pictured, above)

Timely and reliable agricultural input supply service has a critical impact on improving smallholders productivity in particular and ensuring the country’s sustainable growth in general. Unable to access quality inputs and services to the needy has a great impact not only on the productivity of the farmers livelihood but also on food security ensuring.

To this effect, recently, the U.S Agency for International Development (USAID) -Funded Bishoftu – Alema Farm PLC, the first of the six centres to be opened through USAID’s Commercial Farm Service Programme ( CFSP) was officially opened recently.

Minda Ayalew 28, was a private organization employee. Now he runs his private business. He produces vegetables like tomatoes and cabbages on one hectare of land. He said that he received training and professional support from the Alema Farm Centre. “I can get quality and cheap farm inputs from the centre.

Major Alamayhu Amde-Mariam, Alema Farm PLC Owner said that farmers are customers of the farm and the country’s greatest assets. “ As a local business, our goal will be to always do our best in giving them what they need to succeed.” It is uplifting to know that the government of Ethiopia has put an agricultural industrialization plan in a place to make sure that agriculture output can be used both as a raw material for industries and a source of food security.

On the one hand the efforts of the government in collaboration with many other concerned bodies are geared toward improving agriculture. On the other it is undeniable that agriculture still faces many challenges. As there are many stakeholders in the agriculture sector addressing the challenges also requires the collective engagement of all these concerned bodies, he said.

He further said that Alema Farm PLC is a commercial farm which has served the farmers across the country for 20 years through the distribution of improved breeds of chicks, pullets, swine and animal feed. It has also been supplying different kinds of products such as sausages, broiler meat and table eggs. In addition to providing various products, Alema Farm plc has created jobs for over 350 people, he added.

“We know that farmers still have other needs. Keeping this in mind, providing a one stop shop holistic service to farmers has been at the back of my mind for several years.”

When he first found out about the USAID grant available through the Commercial Farm Service Programme (CFSP), he did not hesitate to apply. He felt that this grant could be a way to make his dream of serving the community come true.

“We believe in making sure that farmers have the products they need. The Bishoftu-Alema FSC supplies different agricultural inputs-both crop and livestock and has an inventory portfolio of over 122.” Alema farm also supplies animal feed, improved chickens, pullets, agricultural tools and equipment, pesticides and veterinary drugs to farmers,” he said.

Professionals from the centre provide consultations, professional services and various types of training aided with live demonstrations. It also conducts outreach and extension programmes to promote the centre and its products, services and trainings. Centre proffessionals provide door to door veterinary services. Agronomists provide trainings on safe use of pesticides, Major Alemayehu indicated.

In only 45 days of operation, the Bishoftu-Alema FSC attracted over 300 customers, and obtained over 100, 000 birr in sales. During this time the Centre conducted an on-site training that was attended by 50 members of the government, 15 farmers and 35 professionals from input supply sector, according the owner of the Centre.

USAID Mission Director, Dennis Weller said that the agriculture input sector has a critical impact on the agricultural productivity. The Director also indicated that the Centre would enhance access to high quality seeds, fertilizer, plant protection and veterinary services. Through the application of such quality inputs, Ethiopian farmers can achieve higher productivity which will in turn contribute directly to income generation and household food security.

As part of the effort to improve the accessibility of improved inputs and enhance the effectiveness of the sector, the USAID CFSP is developing a pilot network of locally- owned, private retail input supply and farm service businesses in the Oromia Region. These farm service centres provide increased access to high- quality, reasonably priced inputs, training, technical advice and output market linkages for a least 30 thousand smallholder farmers. Having taken a look at the supplies and services available at the Bishoftu FSC, it is clear to see how the model will achieve the overall programme goal of improving smallholder productivity, food security and income through the development of sustainable, private sector driven agricultural input supplies and services, he said

Oromia Agriculture Bureau Deputy Head, Abebe Driba said on his part that in any part of the region and for any crop or animal, FSCs are offering products and services that cater to local demands. The diversity of the Oromia region offers the FSC model an opportunity to demonstrate how it can be an enterprise that responds to the need of the local farmers in terms of offering agricultural and veterinary services.

In the areas surrounding each of the FSCs – Ambo, Bishoftu, Dodola, Fithe, Shashamane and Nekemte- local Ormoia Agriculture offices and their experts work closely with the FSC staff in the areas of training, and need assessment survey.

“ Acknowledging the importance of inputs to farmers, my bureau will continue to wellcome this initiative and work with the progarmme and FSC team members to do all it can to see the project attain the set objectives,” he said.

Fikre Markos, from Agriculture Ministry said that the government of Ethiopia has long recognized the importance of inputs and service previously in the economic development of the country. “ We thus welcome the opening cicerones of for each programme six FSCs. However, since inputs could include some potentially harmful products the need to develop environmental protection guide and workers safety manual complemented with training is essential. Having learned that this project places ample emphasis on this aspects, I am confident that the farm service centers will contribute immense to the country’s effort to safely increase farmers productivity and self- sufficiency.

http://www.ethpress.gov.et/herald/index.php/herald/development/5359-input-supply-critical-to-enhancing-agricultural-productivity

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• Agribusiness Set To Boom Across Africa – DHL MD
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• US$ 85 million IFAD loan to scale up pastoral community development in Ethiopia
• Preserving indigenous seeds – Maintaining biodiversity
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• Will Africa Become Its Own Best Customer For Ethiopian Potash?
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• Critics sow the seeds of doubt in divisive agricultural policy (allanapotashblog.org)

Feeding a growing global population and improving the management of natural resources are two of the most urgent challenges mankind is currently facing. Agricultural markets, seed systems and crop genetic resources lie at the heart of both. Agricultural production is the main source of income and food for a large share of the world’s population, especially those in the developing countries. An estimated 70 percent increase in world agricultural production will be required to meet food demands by 2050, according to studies. Much of the needed growth will need to come from rain-fed crop production and areas of relatively low agricultural potential, and include both major cereal crops and minor crops important for food security. Increasing productivity by improving farmers’ access to, and use of, crop genetic resources is a primary means of meeting current demand and future demands.

We live at a time when issues about how food is produced, marketed, and consumed are matters of unprecedented personal as well as public interest. And why not? Food influences the lives of every person on Earth. On the personal side, everyone eats, and what we eat – in quantity and quality – greatly impinges upon our health. On the public side, food has extraordinary importance. The interconnectedness of the world’s food systems can be illustrated by such upheavals of the 2007 food crisis during which food price hikes rocked almost the whole world over. These interconnections are complex and the big picture is often hard to fathom.

Agricultural markets are a key vehicle for improving the farm level supply of seeds and the crop genetic resources that they embody. In addition, participating in agricultural markets can increase returns to the agricultural production, and thereby offer a pathway out of poverty. However, agricultural market integration has also been associated with a number of negative impacts, including on farm-crop genetic diversity and narrowing the crop genetic resource base of agricultural systems. Such loses raise concerns that immediate interests may be sabotaging the long-term viability of the system on which human survival depends. As more and more countries embrace industrialization, pressures fro crop producers to specialize and produce homogeneous products in order to increase market competitiveness for short-term economic gains. This can result an increase in the vulnerability of the crop production to a pest or disease that any other crop variety would lack resistance to. In the long run, such pressures would inevitably result in the erosion of the genetic resources available for future needs.

An illustration would be the increasing trend of farmers to grow cash crops in place of other crops they used to date. Increasing productivity and profitability of agriculture in this manner is not the problem, but the loss of seeds of crop varieties would indeed be a major issue of concern. The problem is perturbing if seen closely within the context of developing countries where the zeal for improved seeds, growing cash crops, and specializing in certain crop types is ever on the rise. Moreover, farmers in these countries do not have the means, although not the knowledge, to store and preserve genetic resources other than growing them every other time.

Studies show that trade-offs exist between the conservation of crop or plant genetic resources and market integration, or related processes such as globalization. There are several ways in which market integration can increase the opportunity costs of maintaining diversity on the farm with regard to cost of agricultural inputs, labour, specialization for better market competition. Market integration thus affects the supply of crop genetic resources. Seed systems are composed of a set of market and non-market institutions that govern farmers’ access to and use of seeds, and of the genetic resources held therein. This continuum includes public- and private-sector breeding and seed dissemination programmes, agricultural input dealers, local markets and social networks.

The formal seed sector is comprised of certified seeds of improved varieties produced by scientific breeding and distributed through commercial seed channels. The informal sector on the other hand is everything else which includes local varieties that have been developed through farmer selection over centuries, as well as recycled improved varieties, for instance seed of improved varieties that farmers have collected from their own harvests. While in the formal seed sector farmers generally access seed via some form of purchase, in the informal sector seed is generally saved from farmers’ harvests, and may be circulated among farmers via purchases, in-kind exchanges, and gifts. Farm-saved seed from non-commercial producers is mainly sold in local agricultural markets for cash purchases.

The informal sector is the main source of seeds for most farmers in the developing world, and likely to remain so for the foreseeable future. Understanding how seed sales in the local markets affects farmers’ incentives to maintain or reduce crop diversity is important to determining how countries particularly those in Sub-Saharan Africa go about promoting a more sustainable use of crop genetic resources. The prominence of market development, for the inputs as well as outputs, has been a major source of recent development policy. Liberalization has greatly increased the influence of the market instrumentations on farmers. Markets are seen as a primary engine for promoting agricultural development and attention is now being turned to making markets work for small- and low-income farmers. In a parallel development, the dissemination of new seed varieties that compete hard with the existing ones has increased dramatically.

The outcome therefore would be a considerably growing trend in the erosion of genetic variety in crops and plants. Unless, serious efforts are made to conserve indigenous crop varieties, they would easily succumb to an unrecoverable loss within the face of a surge in the integration of agricultural markets. This concern has led a rise in the number of countries that provide legal protection to their plant varieties. Plant protection systems are thus being established in many countries mainly in response to the WTO Agreement of Trade-Related Aspects of Intellectual property Rights (TRIPS), which stipulates that members may offer protection though patents or geographical indications. Nevertheless, Ethiopia is not a member and may not as yet benefit from such provisions. On the contrary, increased market integration is gradually affecting the diversity of our genetic resources. While agriculture and rural development has to be led by market forces, mechanisms that enable us preserve our crop and plant genetic varieties have to put in place as early as possible.

http://www.ethpress.gov.et/herald/index.php/herald/society/5361-feeding-population-vs-market-integration

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 Temesgen M. Bitew and Tolosa Shagi (pictured)  

  North Holdings to build cement factory               

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• 23 December 2013 News Review (allanapotashblog.org)

December 30, 2013 

Big multinationals are staging a land grab, dispossessing farmers and stirring up political turmoil, writes Richard Schiffman.

A gold rush is happening in Ethiopia, but it’s not a hunt for the yellow metal. It’s a quest for the green gold of fertile farmland.

A nation more associated with periodic famine and acute childhood malnutrition than with agricultural bounty is leasing millions of hectares  to foreign companies that  want to grow and export food to places such as  Saudi Arabia, China, India and Europe.

One-third of the  Gambela area in western Ethiopia, for example, is being leased for the next 50 years by the Bangalore food company Karuturi Global. Forests are being clear-cut, swamps drained, rivers diverted and whole villages moved to make way for flower farms and palm-oil and rice plantations.

The government in Addis Ababa says it needs foreign companies like Karuturi Global to help create jobs, raise Ethiopia’s income from food exports, and develop the agricultural technology and infrastructure that can bring the impoverished country into the mainstream of the global market economy. It has enticed investors with tax breaks alongside rock-bottom lease rates

But at what cost – to land rights, to human health, to the environment, to national stability?

It is a question being asked not only in Ethiopia but across Africa. Many other countries are also welcoming big agricultural projects bankrolled by foreign investors whose goal is to send food abroad. Liberia has reportedly signed concessions for nearly one-third of its national territory in recent years.  Half of the Democratic Republic of the Congo‘s agricultural lands are being leased to grow crops, including palm oil for the production of biofuels. Perhaps the largest single venture to date is the ProSAVANA Project in northern Mozambique, where an area roughly the size of Switzerland and Austria combined has been leased by Brazilian and Japanese companies to produce soybeans and maize for export.

Critics question the wisdom of producing food for foreign consumption in regions where many go hungry – especially when the land deals displace local subsistence farmers. In Mozambique, where more than 80 per cent of the overall population depends on family farming, authorities claim that the land seized for ProSAVANA is unoccupied. But surveys by the country’s National Research Institute show that it is an area of shifting seasonal cultivation and grazing, and the non-profit group GRAIN estimates that millions of peasant farmers are losing their land as a result of forced resettlement schemes.

According to Olivier de Schutter, the UN special rapporteur on the right to food, the reverse transfer of agricultural wealth is a new form of colonialism. Outside powers, with the help of local governments, claim that they are helping countries develop, de Schutter says, when their real motive is to exploit resources to ensure their own food security.

To make matters worse, the land-grab phenomenon also  fosters instability and conflict over scarce resources, population shifts and the best way to feed expanding countries. Lack of access to food and farmland will likely lead to social unrest, warn scholars at the independent academic research organisation the New England Complex Systems Institute.

Wealthy countries have always looked to faraway, resource-rich lands for food exports. Europe established plantations throughout the world in the 19th century; multinational food companies have done the same in the post-colonial era. But recent land grabs are different, and not just in scope. Whereas in the past, most export agriculture focused on products that couldn’t be grown at home (bananas, citrus, coffee, cocoa), today’s projects often grow staple food crops such as soy, wheat, and rice, as well as oils for biofuels.

The African land grabs began in earnest after the global food crisis peaked in 2008. The start of the Arab Spring was a wake-up call heard around the world – especially in  the Gulf states and the Asian tiger economies with limited capacity to grow their own food. Corporations in these countries started acquiring terrain in Africa, the continent with the highest percentage of available arable land, as an insurance policy against extreme price volatility on the global market. And African governments, desperate for  cash and technology, were willing partners. The United Nations has proposed  basic ground rules to regulate these land deals, but they are non-binding and frequently flouted, leading to a chaotic situation.

”It appears to be like the Wild West,” said Jose Graziano da Silva, the head of the UN’s Food and Agriculture Organisation, ”and we need a sheriff and law in place.”

This lack of effective regulation threatens the livelihoods and basic rights of millions.  In a scathing 2012 report on Ethiopia’s Gambela region, Human Rights Watch documented arbitrary arrests, rapes, beatings, and killings of people who  resisted leaving  villages to make way for foreign projects, as well as starvation among the newly landless. This hunger is caused in part by the diversion of agricultural land  from local food production, which has boosted food prices.

On the security front, controversial land deals have already sparked violence. In Ethiopia, members of the Suri tribe have taken up arms against the military to try to stop the diversion of the Awash River to irrigate a Malaysian plantation project, which threatens to drive them from their villages in a fertile floodplain. And when South Korea’s Daewoo struck a deal to lease half of all the arable land in Madagascar for the production of corn and biofuels, an  uprising led to the ouster of  president Marc Ravalomanana.

There is also potential for violence in  South Sudan, where the government has lost no time in leasing nearly 10 per cent of its territory to foreign investors – an alarming development, according to David Deng, research director of the South Sudan Law Society.

”It is fairly clear to us all that poorly planned investments can contribute to conflict, particularly in fragile, post-conflict states,” Deng told The Guardian last year.

”But conflict can also attract investment, as opportunistic companies come to take advantage of power vacuums, and in the case of South Sudan, of a massive transfer of wealth to a bureaucratically weak government.”

Nobody denies that Africa’s agriculture needs to be improved, and soon, if the continent is to feed its rapidly growing population.  But to ensure future food security, a fair balance needs to be struck between increasing agricultural exports and serving local needs. For this to happen,  the playing field between local and foreign interests must be levelled. Binding rules need to be established by international bodies – and agreed to by  governments and multinational corporations – which will protect  indigenous farmers, as well as ensure the integrity of Africa’s environment, soil, and water. Otherwise, the hastily negotiated land deals will continue to short-change the long-term interests of millions of Africans, leading to more hunger.

• Richard Schiffman is an environmental journalist whose work has appeared in The Washington Post and The New York Times.

Sourced here:  http://www.canberratimes.com.au/world/multinationals-carving-up-africa-for-food-20131229-301jk.html

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• Is There Such a Thing as Agro-Imperialism? (allanapotashblog.org)
• US$ 85 million IFAD loan to scale up pastoral community development in Ethiopia (allanapotashblog.org)
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• Ethiopian Drive to Lure Farm Investment Founders on Flood Plain (bloomberg.com)

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First phase of Bole Lemi Industry zone completed

Ministry of Industry (MoI) said Bole Lemi Industry Zone development has reached first phase.

According to Melaku Taye, corporate communication director at the ministry, the first phase development include preparation of five factory buildings.

Three factory buildings covering an area of five thousand square meters each and two structures each with an area of ten thousand square meters have been completed at a cost of over 348.9 million Birr, Melaku told Walta Information Center.

“Lease agreements have been signed with investors and we expect these companies to start installation of machinery and recruitment of workers soon,” Melaku said.

The Taiwanese George Shoe Corporation is among the foreign companies expected to start operations in the industry zone. The company is currently installing machinery and hiring workers.

The Bole Lemi Industry Zone first phase development covers a total of 156 hectares.

The ministry plans to develop additional 186 hectares in to the industry zone in the second phase at a cost of 1.7 billion Birr.

Second phase development includes the erection of 15 factory buildings. The ministry has hired 15 local contractors to undertake the construction.

http://www.ertagov.com/news/index.php/component/k2/item/2164-first-phase-of-bole-lemi-industry-zone-completed

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Some 85 per cent of vehicles in Ethiopia to get coverage against third-party risks

Insurance Fund Administration Agency (IFAA) said 85 per cent of the vehicles in Ethiopia will get coverage against third-party risks this fiscal year.
Agency Public Relations Coordinator Head, Zewdu Wondim, told WIC activities are underway to insure 404,000 vehicles out of the 500,000 vehicles in the country in the reported period.
According to Zewdu, up to 25 per cent of the vehicles in the country have already been insured.
In a related development, more than 491,000 birr was paid in compensation for victims of accidents on the road during the past one year, he said.
Based on the third-party risks proclamation, from 2,000 to 40,000 birr will be paid in compensation for bodily injury by cars that have not be covered under third-party risks, he said. From 5,000-40,000 birr will be paid for death.

http://www.waltainfo.com/index.php/explore/11854-some-85-per-cent-of-vehicles-in-ethiopia-to-get-coverage-against-third-party-risks-

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Tendaho Irrigation Dam to develop 25,000 hectares of land

The Tendaho Irrigation Dam is expected to start developing sugarcane on 25,000 hectares of land at the end of this year,Water, Irrigation and Energy State Minister Engineer Wondimu Tekle said.
It was said will make some 10 thousand farmers and pastoralists in the area benefit from the modern irrigation development.
The state minister said 90% of the construction of the dam has been completed, while expected to develop 60,000 hectares when fully finalized.
The dam, built a cost of over 3. 5 billion Birr has been invested on, has the capacity to hold 1.86 billion m3 of water.
The construction of the dam is expected to be finalized next year.

http://www.waltainfo.com/index.php/explore/11842-tendaho-irrigation-dam-to-develop-25000-hectares-of-land-

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Nyota Minerals Suspended After Shares Fly On KEFI Deal

LONDON (Alliance News) – Nyota Minerals has Monday been suspended from trading on the AIM index for failing to complete its audit and produce its annual report by the end of December 2013.

Shares in the gold exploration and development company were flying during early trading Monday, sitting as the biggest gainer on the index trading 17% higher mid-morning on the news that the firm had completed the sale of a 75% majority stake in its Ethiopia operations to KEFI Minerals PLC, its new partner in the subsidiary, before being suspended over it lack of audit reports.

Nyota Minerals sold a 75% stake in its wholly-owned Ethiopian operations, the Tulu Kapi Gold Project in Ethiopia and the proximal exploration licences.

KEFI Minerals is an AIM-quoted gold and copper exploration and development company with projects in Saudi Arabia.

Shortly after announcing the completion of the KEFI acquisition, which was a necessary step towards signing off the accounts, said the firm, Nyota was Monday suspended from trading as, “it has not been possible to complete all those [accounts] necessary to have the accounts signed-off prior to the calendar year end and they are unlikely to be ready for publication until mid-January 2014.”

Nyota shares will remain suspended until the company publishes its audited accounts, it said.

The firms’ shares were suspended on the Australian Stock Exchange in September for the same reason.

Nyota shares last traded at 0.4 pence per share.

By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance

http://www.lse.co.uk/AllNews.asp?code=yhk8bdie&headline=Nyota_Minerals_Suspended_After_Shares_Fly_On_KEFI_Deal

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MAS Establishes Code-sharing With Ethiopian Airlines

KUALA LUMPUR, Dec 30 (Bernama) — Malaysia  Airlines (MAS) and Ethiopian Airlines will be establishing a code-sharing pact that will take effect from Jan 1, 2014, which will provide access to the national carrier to Addis Ababa, the capital city of Ethiopia.

MAS said the new code-share is valid for booking from today.

The code-sharing arrangement will see the Ethiopian Airlines’ flying from Addis Ababa, the largest city in Ethiopia, to Kuala Lumpur and vice-versa, carrying the MAS flight code.

The service will include a transit in Bangkok, MAS said in a statement.

“MAS is very pleased to offer our customers an extended reach to the African continent and to the customers of Ethiopian Airlines access to Kuala Lumpur.

“This is also our initiative towards enhancing air connectivity with key priority markets overseas for increased tourist arrivals into Malaysia in conjunction with the Visit Malaysia Year 2014 campaign,” said MAS‘ Group Chief Executive Officer Ahmad Jauhari Yahya.

Through this partnership, MAS can expand its reach in Africa without operating its own flights, Ahmad Jauhari said.

“As one of the most affordable tourist destinations in the Asia-Pacific region, we are confident that more tourists from the African region will use this code-share and visit Malaysia,” he added.

MAS flight MH9489 will depart Kuala Lumpur at 11.25 pm every Monday, Wednesday, Friday and Sunday and arrive at Addis Ababa at 6.45 am the following day.

Meanwhile, MH9488 will depart Addis Ababa at 12.40 am every Monday, Wednesday, Friday and Sunday and arrive at Kuala Lumpur at 6 pm on the ame day.

The Ethiopian Airlines code for this service is ET619 and ET618, respectively.

To promote this code-share, MAS is now offering attractive all inclusive return fares to Addis Ababa starting from RM3,885 for economy class travel and RM13,170 for Business class travel.

Travellers can book their tickets to Addis Ababa on MAS 24-hour toll-free number 1-300-88-3000, MAS‘ ticket offices and appointed agents throughout Malaysia.

http://www.bernama.com.my/bernama/v7/ge/newsgeneral.php?id=1004162

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CBE Bags U.S. $1.1 Billion From Export

The Commercial Bank of Ethiopia (CBE) secured USD 1.1 billion from export trade in the 2012-2013 budget year, The Reporter learnt. Ephrem Mekuria, communication manager with CBE, told The Reporter that the bank earned a total of USD 5.8 billion from international banking department (IBD) in the budget year.

Ephrem said exporters brought USD 1.1 billion from the export and the remaining was earned from remittance and other transactions. The bank made a gross profit of 8.4 billion birr. Similarly, the bank’s deposit increased by 32.3 billion birr to 156.6 billion birr. The bank’s total asset reached 202 billion birr. The bank recognized the exporters’ performance at a gala dinner held at the Sheraton Addis on Thursday.

CBE awarded different prizes for its 152 customers who earned more than USD one million under six categories. Certificates, silver plates, and trophies were handed over to the exporters and money transfer companies. Ninety three of the exporters earned more than USD one million while the rest made between USD 5 million to more than USD 100 million.

Bronze, silver, gold and platinium winners received their prizes from senior government officials. Coffee, leather, oil seed and gold exporters were among the top performers. Four companies -Belayneh Kinde Import and Export, Adem Kedir Hora Trading, Warka Plc and Ethiopian Grain Trade Enterprise- who earned more than 35 million dollars were the platinium winners. MIDROC Gold which exported more than 100 million dollars worth of gold is the special prize winner.

Western Union which transferred more than USD 300 million was also announced as the special prize winner. Express, Bole Atlantic, MoneyGram, Dhabshil, Blue Nile and Golden money transfer companies won different prizes. Express channeled more than 100 million dollars. Mulege, Bagaresh, Alfoz, Mojdo Tannery, Hugian Shoe Factory, and China Overseas were among the long list of exporters who won prizes. Bekalu Zeleke, president of CBE, and Bereket Simon, board chairman, congratulated the exporters. Bekalu said the exporters demonstrated a remarkable performance at a time when there was a stiff global competition.

http://allafrica.com/stories/201312300115.html

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Tobacco Control Convention Tabled Before Parliament

An MP calls for “closure” of tobacco factories

After several years of advocacy by various groups, who were pushing and lobbying the government for the formulation of a legislation to regulate and control tobacco products in Ethiopia, the House of Peoples’ Representatives (HPR) has begun reviewing a newly-proposed draft bill to govern tobacco.

The draft bill, which was presented to the House on Tuesday, was said to be formulated based on the international convention, the WHO Frame work Convention on Tobacco Control (WHO FCTC) that has been so far signed by 172 countries including Ethiopia.

The convention, first adopted in May 2003 in Geneva, has been welcomed by Members of Parliament (MPs). At the regular session of the House it was noted that if Ethiopia is to ratify the bill, there are several favorable conditions in the country that enable the implementation of the legislation.

Apart from the enabling legal framework to protect citizens from the health hazard and pollution from tobacco, the ratifying convention by itself has important benefits for Ethiopia like securing high financial, material and technical support from the UN through the WHO.

Though Ethiopia had signed the convention back in February 2004, it was, however, pointed that the country remains among the last 12 nations in the world that have not ratified it yet. The Framework Convention consists of various strategies believed to help reducing the demand of tobacco and controlling its supply.

Among the strategies listed are price and tax measures and non-price measures as “an effective and important means” of reducing tobacco consumption in various segments of the population, particularly the young generation.

Implementing tax policies and price policies on tobacco products is also identified as appropriate measures of reducing consumption. Similarly, prohibiting sales of imported tobacco by international travelers of tax-and-duty-free is also pointed in the article.

The legislation proposes the need to adopt and implement legislative, executive, and administrative measures to promote and strengthen public awareness of tobacco control issues by using all available communication tools.

Furthermore, it also grants countries the right to determine and establish taxation policies, and take account of their national health objectives concerning tobacco control and adopt appropriate measures.

According to the proposed draft bill, the Ethiopian Food, Medicine and Health Care Administration and Control Authority is empowered to undertake “all acts necessary” for the implementation of the convention.

During a discussion session in the House, most of the MPs said that the country should have ratified it earlier.

MPs also forwarded suggestion for the respective standing committee to study why the country took longer period of time to ratify the convention.

Commending the move to regulate tobacco, the lone independent MP in the 547-seat assembly of lawmakers, Dr Ashebir Woldegiorgis, requested the standing committee to review which would be the responsible organ to be held accountable for leaving the nation to wait too long to adopt the agreement, which he said, resulted in losing the possible benefit the country could have gained from the UN in merely ratifying it alone.

Amid the discussion, another surprising comment that left parliamentarians smiling, is from an MP who proposed the closure of tobacco factories.

“Presenting this convention here is very commendable to our country. But from the very beginning, what is the importance of having a tobacco factory? In my view, no tobacco factory should be allowed to operate. Still, all the existing factories should be shut down if we are really concerned about shaping the minds of our children. “

He further explained what is going on in various “illegal film houses”. “That’s where teenagers consume cigarettes and any form of tobacco,” he said. “These days, children assume that smoking cigarette is a modern trend, and they are becoming fast addicted at a very fast pace,” the MP added.

Interestingly, his comment immediately turned the House with sudden burst of amusement as he kept on challenging the MPs by questioning, “Let alone the children, if we honestly talk about tobacco, how many of us even in this House consume tobacco?”.

In a reaction to the comment made by the individual MP, Speaker of the House, Abadula Gemeda, said, “It’s important to consider the convention and the comment forwarded. This convention is not the issue of Ethiopia alone. It’s a common pact that has been commonly signed by many nations across the world. If you believe you want your idea to be considered as an agenda, you can still initiate it some other time for this House.”

Finally, the House unanimously voted “aye”, referring it to the Social Affairs Standing Committee for further revision.

http://allafrica.com/stories/201312300405.html?viewall=1

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Bank of Abyssinia Signs Contract for New Electronic Banking Systems

Many other banks have chosen to set up the systems in cooperation, such is the high cost

Addisu Haba (left), presedent of BoA, Abdellah Deguig (middle) Vice President of S2M and Kamal Kimakhe (right) sales manager of S2M.

The Bank of Abyssinia (BoA) signed a contract with S2M – a Moroccan company – to install 200 Point of Sale(PoS) machines and Electronic Fund Transfer (EFT) switch machines on Saturday, December 28, 2013, in the premises of the Bank’s headquarters on Ras Desta Damtew Street, next to the Ethiopian Red Cross Society.

S2M, a pioneer of the first credit application inNorth Africa, was established in 1983. It set foot inEthiopiain 2012. Among the services it offers are smart card applications, e-commerce solutions and payment system solutions.

The PoS is the point at which a customer makes a payment to the merchant in exchange for goods or services. The EFT, on the other hand, is the electronic exchange, which enables the transfer of money from one account to another – either within a single financial institution or across multiple institutions – through computer-based systems.

The installation will come after a period of preparation, lasting between 30 and 45 days, according to an agreement signed by Addisu Haba, president of the BoA, and Abdallah Deguig, vice president of S2M.

“It will be ready for use after seven months,” Abiselom Tefaye, a local partner of S2M, told Fortune.

Usually, since getting a switch system is costly, banks partner with each other to use one jointly. The most notable are the United, Awash and Nib banks, which together formed a company called Premiere Switch Solutions (PSS) to provide the service. Through PSS, they purchased a switch system at an estimated cost of 190 million Br from S2M – the same company that is now supplyingAbyssinia. The BoA, which has increased its paid-up capital by 20.5pc to 577 million Br, in 2012/13, has, however, decided to take the responsibility on its own. Abay Bank, a new entrant intoEthiopia’s bourgeoning banking industry, is also operating the PoS independently.

“We prefer S2M under three circumstances,” Aklilu Wubet, vice president for corporate services at the BoA, said. “They are cost and technically effectiveness, and have flexibility.”

ButAbyssiniahas declined to disclose the amount of money it is investing into the PoS system, citing confidentiality agreements. The local Partner of S2M, who attended the signing ceremony, also refused to disclose the cost of the PoS, stating that it is currently bidding to supply other Ethiopian banks and the information may adversely affect its negotiating powers.

Eight companies showed interest for the supply of the EFT, while the tender for PoS attracted seven companies. The brand of the PoS, called Ingenico – a French product – won and was selected by competing with the same machine with the brand name verifico.

Among the eight were M2M, another Moroccan company, and BPS, which was the previous supplier of Dashen Bank.

“We are honoured to have a relationship with S2M,” Addisu, the BoA president, said. “We will add more products developed by the Company.”

When established back in February 1996,Abyssiniahad a subscribed capital of 25 million Br and an authorised capital of 50 million Br, with 131 shareholders.Abyssinia’s capital adequacy ratio (CAR) of 19.7pc is now more than twice the legal requirement of eight percent.

http://addisfortune.net/articles/bank-of-abyssinia-signs-contract-for-new-electronic-banking-systems/

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Fifty Million Dollar National Urban Project to Support Women Entrepreneurs

The project aims to support the ‘missing middle’ – businesses too small for commercial bank borrowing, but too big for MFIs

Women entrepreneurs running small businesses began registering, two weeks ago, at the micro finance one stop shops set up in each district of Addis Abeba. This registration is to access loans from a 50 million dollar fund approved by the International Development Association (IDA) – the World Bank’s credit wing – nearly two years ago, but only recently released. 

Women entrepreneurs running small businesses began registering, two weeks ago, at the micro finance one stop shops set up in each district of Addis Abeba. This registration is to access loans from a 50 million dollar fund approved by the International Development Association (IDA) – the World Bank’s credit wing – nearly two years ago, but only recently released.

This project is to be implemented through the Women Entrepreneurs Development Project (WEDP). This project was set up by the IDA to be implemented through the Ministry of Finance & Economic development (MoFED), the Development Bank of Ethiopia (DBE) and Micro Finance Institutions (MFI) to support women-led small enterprises that are considered too small to borrow from commercial banks and too big to borrow from MFIs. The project coordinator, Yohannes Solomon, calls it the ‘missing middle’.

Out of the total grant, which was approved in May 2012, 42.4 million dollars will go to the DBE through the MoFED for credit facility.

The IDA is a segment of the World Bank set up to help the world’s poorest by providing credit.

This national urban project involves beneficiaries within 50kms of Bahir Dar, Adama, Hawassa, Mekelle, Addis Abeba and Dire Dewa, a WEDP coordinator, Yohannes Solomon, told Fortune.

The overall aim of the project is to increase the earning and employment capacity of Small & Micro Enterprises (SMEs) owned by female entrepreneurs. The World Bank, which expects 20,000 beneficiaries, believes that this will reduce gender inequalities in the education and labour market.

Some women entrepreneurs in Addis Abeba have, since last week, been signing up and receiving their ID for selection. This is a requirement before the selection process begins, says Yohannes.

The DBE gets the money from the MoFED and lends it to the MFI, with an 8.5 to nine percent interest, payable in three to five years.

The DBE is to assume full risk of the MFIs. The Federal Micro & Small Enterprise Development Agency (FMSEDA) will be the responsible body for the overall implementation of the WEDP and coordination of participating agencies at all levels. Eight MFIs have been selected to administer the credit granting process. The MFIs will set up One Stop Shops (OSSs) to serve as entry points for the MSEs into the WEDP.

The credit may be granted on either an individual or a collective basis. The first criterion requires being an owner of a licensed business, which is either wholly or partially owned by a female. The MSE must also be growth oriented.

“There is no specification on the type of business,” says Yohannes. “However, it would be a plus to own a business which is export-oriented or which has the potential of creating employment opportunities for others.”

The other requirement is the businesses requiring the loan must have been in business for at least six months and they need to have at least five percent of the capital they need to implement their business plans. Those deemed to have better credit worthiness could receive more loans, depending on their financial needs.

http://addisfortune.net/articles/fifty-million-dollar-national-urban-project-to-support-women-entrepreneurs/

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Related articles

• 29 December 2013 News Round Up

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Ethiopia is best known in agriculture. Its over all climate is also conducive to expand sericulture as a major agro-industry. Moreover factors of production like land, labour and skills is forefront for economic development. Sericulture is most suitable for countries or regions having low labour costs, as it is labour-intensive and provides occupation in rural and semi urban areas. The uninterrupted supply of labour force in the country gives an immense opportunity for the development of sericulture and silk industries.

Sericulture will contribute to the growth of a large number of silk industries around the country. The development of industrial sector also contributes to the expansion of employment, output, export and entrepreneurship and in turn help fulfill the socio-economic objectives of the nation. Sericulture industry will also help balance the regional development especially in rural, semi-urban and backward areas in Ethiopia. It is an agro-based industry; it involves the growing food plants for silkworm and harvesting cocoons, reeling and spinning of cocoon for production of yarn etc. Which will later be value added with various processing and weaving. Sericulture also involves improvement of silk yarn, fabric and generating profitable income for rural poor people.

Ethiopia is exporting coffee, and tea products. Sericulture or ready silk has more demand not only in domestic market but also internationally it has a huge demand. Thus, it will a significant economic value and fosters international trade. Agriculture in East Africa is mainly for subsistence. However horticultural products, such as flowers and ornamental plants, and vegetables, have rapidly increased in recent years as non-traditional export products. Expectations are also high for sericulture as a new non-traditional export product to grow fast and contribute to the improvement of income of small-scale farmers.

JAICAF, 2007 reported that sericulture industry is contributing to the economy of 11 countries in East Africa that include Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Seychelles, Somalia and Tanzania, and Uganda. Among these countries, production of cocoons and silk thread from silkworms occurs in Ethiopia, Kenya, Madagascar, and Uganda. Sericulture is an important labour-intensive and agro-based cottage industry. It is mostly a village-based industry providing millions of jobs to rural and semi urban people. For instance, it is providing gainful occupation to around 7.25 million persons in rural and semi urban areas in India. Of these, a sizeable number of workers belong to the economically weaker sections of society. There is substantial involvement of women in this industry.

Silk has a huge demand in western countries. The highest demand is from USA, UK, Italy , UAE, German & Spain. Many silk products are not only in the domestic market but in global markets too.

Sericulture is considered as a subsidiary occupation, even though silk industry can generate employment opportunities to a large section of the society. Sericulture and silk production are labour-intensive at the village level, employing both men and women at all stages of production. In_China, it is undertaken by some 20 million farmers, as well as 500,000 people in the silk processing industry. In India, sericulture is a cottage industry in 59,000 villages, providing full and part-time employment to some six million people from the farm sector, and silk processing industry.

TheWorld Bank estimates that more than 70 per cent of the world’s poor live in rural areas. It not exception to Ethiopia, more than 70 per cent of populous are in rural and semi urban areas in Ethiopia. So far, various strategies have been pursued to address this concern and among the major ones is rural employment creation. The agriculture sector, however, has been contending with a number of factors that have limited its potential for generating new jobs in rural areas. Those factors may include the small land holding size, insufficient capital and investment incentives, the inadequate farm infrastructure, limited market and stagnant prices of agricultural products. It is therefore necessary to focus on a broader spectrum of the rural economy. The establishment of rural based industries like sericulture, in particular, can be very effective in creating new job opportunities and providing supplemental income. Being a rural agro-based labour intensive industry this sector can also play vibrant role in checking migration from rural to urban areas.

Silk has due importance for developing economies primarily because of its contribution to socio economic development. The development of sericulture has become increasingly popular in various countries. Evidences suggest that sericulture has significant importance for socio-economic development. Studies have shown that the sector makes contribution to large scale employment and high income generation. A study conducted in 1998, showed that every acre of sericulture practiced under irrigated conditions had a potential to employ 247 men and 193 women round the year. Studies have further shown that the small scale mulberry farms provided ample opportunities for employment and a potential to solve the problem of seasonal unemployment. Indoor silkworm rearing women participation was as high as 94.67 per cent and that except for the peak period the entire sericulture activity is conducted using family labour. Most of the activities in silk production are informal and menial in nature. Considering the price spread in the whole industry, studies show that 48 of it goes to farming sector.

Sericulture involves both art and science in raising silkworms for silk production. Silk as a weavable fiber was first discovered by the Chinese empress Xi Ling Shi during 2,640 B.C. and its culture and weaving was a guarded secret for more than 2,500 years by the Chinese. Since then Silk has been a profitable trade commodity in China. According to evidences traders from ancient Persia used to bring richly colored and fine textured silks from Chinese merchants through hazardous routes interspersed with dangerous mountainous terrains, difficult passes, dry deserts and thick forests. Though, commodities like amber, glass, spices and tea were also traded along with silk which indeed rapidly became one of the principal elements of the Chinese economy and hence, the trade route got the name ‘SILK ROUTE’. Even today, silk reigns supreme as an object of desire and fabric of high fashion. Being a rural based industry, the production and weaving of silk are largely carried out by relatively poor sections of the society and this aspect of sericulture has made it popular and sustainable in countries like China and India.

Raw silk is of two kinds, namely mulberry and non-mulberry. The distinction arises from the rearing of silk worms either upon mulberry leaves or on other plants. Mulberry sericulture is almost entirely dependent on cultivated plants while vanya sericulture is largely dependent upon forest trees and block plantation. As forest plantation is usually a mixture of the silkworm host plants as well as other plants, it is difficult to clearly indicate the extent of food plants. Considering the vast area of forest plantation, the production of vanya silks largely depends upon the availability of silkworm seed.

Silk industry has provided economic support to many people across the world. Traditionally certain silk patterns and styles are associated with courtship, engagement, marriage, birth, and death. Sericulture industry has a history of over 2000 years and one can still see old silk cloths in museum. However, agricultural history is unknown. At present, the major sericulture producing countries are China, India and Brazil in that order.

In Africa, two types of silkworm are being utilized. That is Mulberry silkworms by Morocco, Algeria, Egypt, Nigeria, Kenya, & Madagascar and another groups are wild silk moths.

Technically the process of sericulture is based on the availability of mulberry leaf and should be ensured before the introduction of the silk worm moth to the project site. Rearing of larvae is not possible unless the feed is readily available in the farm. Hence, planting of mulberry should be carried out before six months from the time of introducing the mulberry moths in order to get adequate leaves for feeding the larvae. The moths will be kept in the multiplication room and will lay eggs. Each moth will lay an average of about 400 eggs. The eggs will hatch into larva after 8-10 days. The larvae will go through different molting stages till it is fully matured and ready to pass into the pupa stage where it will spin silk on itself. The silk worm completes spinning from 48 -72 hours. After this the cocoons will be picked and sun dried to kill the pupa before it breaks out and completes its metamorphoses. Then after, the cocoon will be stored and will be ready for sale. Silk production is totally environmentally friendly business as there is no waste produced by the silk worms.

JAICAF, 2007 reported the East Africa faces the Indian Ocean and is mostly comprised of wet savanna. The cultivated area in East Africa is approximately 19 per cent of all of the sub-Sahara, which has approximately 0.4ha. arable acreage per person. However, the average in East Africa is said to be much lower than the average in all sub-Sahara. In recent years, Africa as a whole has been experiencing increased land pressure due to population growth, and unlike global trends, grain production per person has decreased. Also, human population pressure has led to agricultural land expansion through deforestation, hastening global warming.

In Ethiopia sericulture is at its infancy. However, experts agree that there is a good chance for the sector to grow in Ethiopia and hence stimulate rural employment and economy.

http://www.ethpress.gov.et/herald/index.php/herald/development/5398-sericulture-for-stimulating-rural-employment-industrial-growth

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• An island where mulberry cultivation flourishes (thehindu.com)
• A smooth, efficient, low cost silk cocoon deflosser (thehindu.com)
• Silkworms spin colored silks while on a ‘green’ dyed-leaf diet (eurekalert.org)
• Strive to achieve higher yield, Kavuri tells mulberry farmers (thehindu.com)

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- Ethiopia however is an exceptional performer in meeting it’s MDG commitments in this and many other regards

Africa’s low budget allocation for agriculture does not seem to recognize that most of its citizens are farmers, says a new report by Action Aid.  The report looked at a number of countries and their regular practices regarding agriculture and it stated that most countries did not meet the 10 percent budget target for the agriculture sector.
The report places Ethiopia among only seven countries that have managed to reach the 10 percent budget target constantly.
African public spending on agriculture per worker declined from USD152 in 1980-89 to just USD45 in 2005-07. By contrast, every other region of the world witnessed increases in such spending over the same period.
The ‘Walk the talk’ report suggests that African countries’ governments can get the finance that is needed for their agriculture sectors through several measures such as reducing military spending as well as abolishing massive tax exemptions given to companies.
According to recent research done by Action Aid, four East African countries Kenya, Uganda, Tanzania and Rwanda lose up to USD 2.8 billion every year from tax incentives and exemptions their governments provide. Clamping down on the illicit financial flows, mainly through tax evasion, which cost Africa an average of USD 60 billion a year during 2005 to 2010, is also another suggestion the report provides.
The report reads that once an appropriate budget has been allocated, spending it needs to be matched by improvements in the quality of spending and the efficiency of ministries in the agriculture sector needs to improve. It says that ministries often lack adequate capacity to implement policies, such as staff with appropriate skills or mechanisms to ensure coordination within and across departments.
Corruption is also stated as a huge problem facing the African agriculture sector. The report states that transparency in the government budget is vital to ensure the best use of resources, prevent corruption and help citizens to hold the government accountable. Lack of transparency means that farmers will not know what resources or services they are entitled to.
Another hindrance for the sector is the insufficient involvement of smallholder farmers in the design and implementation of agriculture budgets and policies. The report states that farmers’ organizations are often ignored or by passed in the crucial process of designing policies for the sector.  On a positive note, the report does acknowledge that African governments have improved mechanisms to consult with farmers in recent years.
Investing in agricultural research is also underlined as a necessity for the sector as it can be vital to imparting knowledge and technology to farmers. Furthermore, research can play a huge role in developing improved seed varieties, increasing yields or developing small scale farming equipment.
According to the report, for every one percent increase in yield from the investment of agricultural research in the continent, two million people can be lifted out of poverty.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3869:more-money-needed-for-africas-agriculture-sector&catid=35:capital&Itemid=27

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Related articles

• Sericulture for stimulating rural employment, industrial growth (allanapotashblog.org)
• Multinationals carving up Africa for food (allanapotashblog.org)
• Input supply critical to enhancing agricultural productivity (allanapotashblog.org)
• Is There Such a Thing as Agro-Imperialism? (allanapotashblog.org)
• Fertilizer Assessment: Increased Amounts Required in Ethiopia (allanapotashblog.org)
• Cultivate – Food and Agribusiness newsletter (allanapotashblog.org)

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Debate on Ethiopia‘s irrigation agriculture

By Andualem Sisay

In a sunny midday some 200 kilometers south east of the capital Addis Ababa, Huruta Dore town young motorbikes blow dust running up and down. They are the emerging new generation of well-to-do farmers of Ethiopia using irrigation.

Located in Arsi zone of Oromia region of the country, this semi desert town was known as drought area and the inhabitants used to rely on wheat aid. Today its over 500 hectares of land is covered with various crops and vegetables.
Thanks to the regional government who diverted the Awash River five years ago to pass through this town, it is no more desert.
“In those days it was difficult for our parents to be engaged in farming as they only get rain once in four or three years,” says Bedada Tufa, who now harvests half a million birr (around $27,000) produces every year from two hectares land using the water.
“They spent more of a pastoralist type life seeking water for their cattle. Today thanks for this government, who diverted this river to pass through our village, we have been producing crops and vegetables three seasons within a year for the past five years,” says Bedada who has six children at the age of 38.
A few hundred meters away from Bedada’s farm, about 80 farmers are busy collecting onions from 25 hectares. Most of them came from the central part of the country known as Amhara region. They are working for Debebe Belachew, who also came five years ago to work for another farmer when the news of Awash River diversion was herald.
They work with the owner of the farm like Debebe on profit sharing basis after all cost deduction including land rent. During good harvest one employee earns up to 60,000 birr per year ($320) from three seasons harvest.
“I am building a house in Adama (Nazreth) city investing over 2 and half million birr ($132,000),” says Debebe who is father of two kids. “In my account I have over two million birr ($105,000) and my plan is to expand the farm and recruit more people,” he says.

http://newbusinessethiopia.com/index.php/perspective/158-feature/585-debate-on-ethiopia-s-irrigation-agriculture

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MoT to Take Measures Against Uncertified Importers

The Ministry of Trade (MoT) is set to take measures against importers who have not yet received a standard quality certificate from a third party. This is a requirement, put into place by the Ministry in July 2013, for the importation of 57 items.

The new directive obliges all imported goods that are included under the list of Mandatory Ethiopian Standards (MES) to be accompanied by a laboratory test certificate from an authorised international company.

The Ministry is set to take measures against the backlog of importers who continue to take goods without undergoing the necessary inspections, even after the issuing of the directive.

According to the new requirement, the importers of those identified materials are supposed to get quality and standards certificates from internationally recognised institutions, such as the Bureau of Veritas, Cotena and Société Générale de Surveillance (SGC), among others.

“The Ministry will automatically take measures against any failure to comply with the regulation,” Tamiru Geno, Import & Export Quality Control director at the MoT, told Fortune.

He said the Ministry made several attempts to give importers leverage on obtaining their certificates.

“But many of them have still failed to do so,” he said.

So far, the Ministry has warned about 40 importers over the materials they import, saying that they fail to meet the standards. Among the total of importers given warning, 10 are soap importers.

The measures apply directly to the importers of steel, corrugated sheets of iron and electrical servers, among others.

The Ministry says it has been giving training to importers, complaining, however, that the turnout has been poor.

“Recently, we invited 130 importers, but only 30 of them attended,” Tamiru claimed. “They are just forcing us to take measures.”

The measures might include the revocation of licenses, Fortune learnt.

The Ministry has the power and duty to check whether the importers are working with the set standards before providing them with a license.

In addition, the directorate is authorised to carry out assessments and arrange agreements with third party conformity assessment bodies abroad to conduct pre-shipment inspections.

The Ethiopian Conformity Assessment Enterprise (ECAE) helps the Ministry by checking the quality certificates through conducting surveys.

http://allafrica.com/stories/201312310051.html

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Warring Factions of South Sudan Due to Addis for Talk Today While Ultimatum Comes to Draw

Delegates of South Sudanese warring parties are expected to arrive here in Addis Abeba later today, to start talks on the ongoing political crises, sources disclosed to Fortune. Delegates representing South Sudanese President Salva Kirr and his foe, Riek Machar (PhD), are coming to Addis Abeba to follow on the IGAD summit last week in Nairobi, which is trying to defuse an ongoing tension.

The political impasse between the President and his deputy, which the later claims is due to governance problems, led to the death of thousands of people (including Ethiopians) and displaced over 120,000 others. However, pundits see the conflict as mere power struggle between the two politicians, both of whom are veterans of the liberation struggle.

IGAD member countries, under the chairmanship of Prime Minister Hailemariam Desalegn, have given both leaders a four-day ultimatum to cease hostilities and start talks in overcoming the impasse.

The ultimatum comes to an end today.

http://addisfortune.net/breaking-news/warring-factions-of-south-sudan-due-to-addis-for-talk-today-while-ultimatum-comes-to-draw/

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Abay Bank Continues Aggressive Expansion With Impressive Annual Growth

- The bank will have to increase its paid-up capital by 20% a year to match the 500 million dollar directive

Tadesse Kassa, right, chairperson of the Board of Directors and Mesenbet Shenkut, president of the Bank.  

Abay Bank, one of the new entrants into Ethiopia’s bourgeoning banking industry, jumped into the year 2013/14 with a robust performance. This came mainly as a result of a significant increase in interest and non-interest incomes.

Interest earned on loans, advances, National Bank of Ethiopia (NBE) bonds and deposits has increased by 107pc to 88.34 million Birr. Both domestic and external trade contributed to the success of the Bank. Mining and quarrying, building and construction, and transport and communications were activities that spurred the success in the export sector, according to the annual report of the Bank for the year 2012/13.

Non-interest income, such as commissions, service charges, gain on foreign exchange and other income has jumped up 82 million Br – an increase of 54pc.

Abay Bank was licensed by the Central Bank in July 2010, registering 157.8 million Br in paid up capital, mobilised from 823 founding shareholders. These include major ones such as Dashen Brewery SC (7.5 million Br), Amhara Water Works Construction Enterprise (7.5 million Br), the Housing Development Agency of the Amhara Regional State (7.5 million Br), the Amhara Design & Supervision Works Enterprise (7.5 million Br), the Amhara Region Urban Development & Construction SC (7.5 million Br), the Gozamen Farmers’ Cooperative (2.5 million Br), the Amhara Development Association (4.5 million Br), the Tikur Abay Transport SC (4.5 million Br) and Sebhatu & Sons Property Administration & Security Plc (one million Birr). The number of shareholders, which stood at 1,189 in the 2011/12 fiscal year, has swollen to 1,525, as of June 30, 2013 – when the year ended.

As a young entrant, Abay ploughed through the stiff competition characterising the industry with an aggressive expansion, which also involved human capital – almost doubling the total number of its employees from 275 to 478.

Abay had to endure high expenses to deliver its aggressive expansion. Thus, total expenses went up to 119.45 million Br. Interest expense increased by 83.4pc to 28.6 million Br and staff and general administration expenses shot up to 90.8 million Birr. All of the increases are higher than the industry average.

“The increase in expenses at such an alarming rate, while the industry profit is declining could undermine future profitability,” cautions Abdulmena Mohammed Hamza, an accounts manager for the Portobello Group Ltd – a London-based holding company. “Hence, cost control should be put in place.”

But the aggressive expansion of the Bank, according to its management, will continue into the 2013/14 fiscal year.

“Expansion of our branch network will continue to be the centre of our business development strategy,” reads the message of Tadesse (Tinkishu) Kassa, chairman of the board of directors, published along with the audited report.

Nevertheless, the Bank has devised a strategy to reduce the soaring expenses. It has pinned its hopes on constructing its own premises, cognisant of the staggering rent expenses it has incurred.

The Bank’s profit after tax has soared to 38.04 million Br and its Earnings per share (EpS) has gone up to 14.3 Br from 12.2Br.This staggering performance has been achieved while the industry profit has gone down by 2.4pc.

The total assets of the Bank have increased by 150.5pc to 1.951 billion Br. Abay has disbursed loans and advances of 843.1 million Br, which is 86.5pc higher than last year. The size of deposits have also expanded remarkably and reached 1.476 billion Br.The loan to deposits ratio of Abay has gone down to 57pc from 58.1pc. Loan to deposits ratio has declined for the second time in a row.

“Such declining trends should be reversed,” advises Abdulmena.

Abay has invested 374.46 million Br in NBE five year bonds. This investment accounts for 19pc of the total assets and 25pc of the total deposits of the bank.

Various liquidity ratios indicate that the liquidity level at Abay has declined considerably. Its liquid assets to total assets ratio has gone down to 26pc from 40.31pc and liquid assets to deposit ratio has decline to 34pc from 60pc. Such a decline is an industry-wide phenomena, due to the directive that compels private banks to invest 27pc of their loan disbursements into five year NBE bonds.

Abay increased its paid up capital by 21pc to 288.51 million Br and its capital adequacy ratio stands at 37pc, indicating that it is a well capitalised bank. To comply with the directive that compels private banks to have paid up capital Birr 500 million by 2016, Abay should increase its paid up capital by 20pc per year, says Abdulmena.

The three-year-old Bank plans to launch mobile and agent banking in the next year. Agent banking involves the use of a company that will provide transactional services to clients of a bank.

The use of agents will also benefit bank customers who will have easier access to their money from nearby shops, instead of travelling to branches.

The Bank plans to regulate the cash flow from the agents by holding a minimum of half a million Birr of their money as collateral.

The Bank is currently negotiating with nearly 100 agents nationwide, and plans to start giving the service as soon as the company gets the green light from the NBE.

http://addisfortune.net/articles/abay-bank-continues-aggressive-expansion-with-impressive-annual-growth/

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Oromia International Bank Launches Interest-Free Banking

- The bank has planned to offer the service since its inception, but has had to wait for a Central Bank directive

Abe Sano, president of Oromia International Bank, presented how the Interest-free Banking system works to the participants of the opening ceremony held at Elelle Hotel on Marshal Tito Street.

Abe Sano, president of the Bank, (right), and Nuri Hussein, acting director of IFB, checking their notes during the briefing session with bank  customers.  

The Oromia International Bank (OIB) became the first bank inEthiopiato launch interest-free banking (IFB), after the Commercial Bank of Ethiopia (CBE) on December 16, 2013.

The service, to expand in phases, has started in 24 of the bank’s 60 branches inEthiopia, Abe Sano, president of the Bank, said.

The Bank will offer saving (wadia) and current (amanah) account services, as well as equity financing (mudrabah), based on principles drawn from Islam. These principles include avoiding interest, gambling and uncertainty. All business should also be conducted in writing, and profits will be shared as agreed, but loss according to capital, Abe said in a presentation he made at a ceremony held at Elelle Hotel onMarshal Tito Streeton Wednesday, December 25, 2013, announcing the launching of the service.

“But since this is strictly business and not religion, we prefer to call it interest-free banking,” he said while talking about Islamic Banking, IFC’s other name.

The bank announced that it would start the service when it was established six years ago, in an attempt to reach potential customers who were not banking for interest-related reasons. It had to wait until the present time, however, because the Central Bank’s directive for the service only arrived in September 2013.

In this new banking service, the bank will not use depositors’ money for businesses considered haram.

In equity financing, the bank will provide the fund and the client (mudarib) will provide the labour. Profit will be shared as agreed, and loss will be borne by the bank; the mudarib being held accountable to the extent of identified negligence, according to Abe.

“We had to prove to the authorities that we had ample preparations,” says Abe, speaking after they acquired the license.

One of the preparations included ensuring that the core banking system installed by the Bank was convenient for launching the IFB service, which is offered online.

The Bank, which saw its profits increasing by 71.9pc to 77.5 million Br, according to its annual audited report for 2012/13, has deployed about 129 staff members in the 24 branches. Four staff from each of the selected branches consisting of branch managers, accountants, assistants and senior customer service officials, have received trainings in the implementation of the service.

Prime among the challenges the Bank expects to face while launching the scheme is the considerable time it may take for the scheme to sink into the minds of people.

“Creating awareness is essential,” Nuri Hussein, acting director of IFB with the Bank, said. “We will embark upon aggressive training and awareness creating schemes.”

This includes at least four conferences to be held in Addis Abeba. Similar events are also planned to take place in regional capitals.

The Bank will launch the service in three phases, the first of which has been in progress since December 16 and is expected to end in two months time. The second, which envisions pushing the number of branches offering the service up to 60, will commence anytime between May and the end of June 2014. The final phase will begin in July 2014, enabling all branches to offer the service.

A senior banking expert, who has worked for the regulatory body for over two decades, says launching the service is like forming an additional independent financial institution under the bank.

“The service provided is quite separate from the conventional banking system,” he said.

Establishing a Sharia advisory board and separate financial reports, keeping all data and ensuring the segregation of activities from conventional banking are some of the requirements to launch the program.

http://addisfortune.net/articles/oromia-international-bank-launches-interest-free-banking/

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Ministry invites more private investment to tap agriculture potential

Ministry of Agriculture (MoA) said more needs to be done to attract private investors to engage in commercial agriculture to tap into the country’s huge potential.

In an exclusive interview with WIC, Tefera Deribew, minister of agriculture, said large scale commercial farmers in the country are registering ‘encouraging’ results but insisted a lot has to be done to ensure more success.

Ethiopia is touted as a nation with huge agriculture potential with diverse ecological zones suitable for various types of crops, abundant ground and surface water resources and cheap labor.

According to the ministry, Ethiopia’s potential arable land is estimated to be nearly 70 million hectares, out of which 12 million hectares have, so far, been developed.

“We have identified nearly 3 million hectares of arable land for potential foreign and local investors,” Tefera said.

With a view to tapping the huge agriculture potential, which contributes up to 43 percent of the country’s gross domestic product, the government is attracting large scale commercial farmers.

Foreign investors, mainly, from Asia and the Middle East, are engaged in large scale farming, particularly in the lowlands of the country where the potential remains largely untapped.

The minister admits the achievements gained so far from commercial farmers have not met government expectations but remains optimist of future success.

“We are witnessing introduction of new technologies and new crops which, in future, will help us develop the sector,” Tefera said.

With the country’s ideal geographical location to market destinations in Europe and Asia and a state owned world class airline with air cargo service dubbed among the fastest growing in the world, the ministry predicts bright future for country’s agriculture sector.

http://www.waltainfo.com/index.php/editors-pick/11871-ministry-invites-more-private-investment-to-tap-agriculture-potential

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Ethiopian Aviation Academy Graduates 124 Aviation Professionals

Ethiopian Airlines, the fastest growing and the most profitable Airline in Africa, has graduated 52 Aviation Maintenance Technicians, 47 Marketing and 25 Finance trainees on December 26, 2103 at a graduation ceremony held at the airline’s Headquarters.

Tewolde Gebremariam, CEO, Ethiopian Airlines Group said, “Ethiopian is continuing to invest heavily in the training of skilled aviation professionals that are critically essential for the successful implementation of its fast, profitable and sustainable growth strategy. With the heavy investments the airline has made over the last 3 years, Ethiopian Aviation Academy now has 1,000 trainees’ annual in-take capacity in all critical areas of the industry such as pilots, cabin crew, aircraft technicians, Sales and marketing and finance personnel. Going forward, in line with our Vision 2025 strategic roadmap, Ethiopian Aviation Academy aims to quadruple its intake capacity by training 4,000 aviation professionals annually with a view to support the African aviation industry”.

Ethiopian Aviation Academy has recently been transformed into a profit center of the Ethiopian Airlines Group with the aim of making it the leading aviation-training center in Africa by 2025.

Ethiopian Aviation Academy provides training to pilots, aviation technicians, cabin crew, marketing and finance professionals and is certified by the Ethiopian Civil Aviation Authority, the U.S Federal Aviation Administration, European Aviation Safety Agency (EASA), and IOSA (IATA Safety Audit).

http://www.2merkato.com/news/alerts/2778-ethiopian-aviation-academy-graduates-124-aviation-professionals

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Related articles

• 30 December 2013 Development News

“I still regret the year I wasted in search of a job in Addis. I was simply being naïve,” says Simachew Kefe, a farmer, in Yetnora kebele of Dejen Woreda, in East Gojjam Zone blaming himself for deciding three years ago to leave his home village for Addis Ababa in search of job. Simachew, who is now, a farmer, was once discouraged with the decline in crop yield of his rain-fed farms and as a result was forced to leave both his home village and farms. However, life in Addis was not as easy as he had anticipated. His aspiration for getting a life-changing job ended up void when the best job he could find was being a security guard in one of the private houses in the Asco area. His monthly salary was so small that he couldn’t make his basic needs met, let alone help his parents. His attempt to earn a living by being a daily laborer did little to change his livelihood.

Simachew Kefe 

As a result he had no better option than to return to his village and turn his face to the farm he once had abandoned, but this time with strong determination to turn things around in his favour by working hard on his field. The hard time he experienced in Addis gave him vigour to put a lot more effort on his farms more than what he used to do in the past. That was when the idea of producing high market value crops by harnessing the nearby river, called Mechet, came to his mind. Soon Simachew’s life started to change for the better. He has built his own house and created asset by producing tomato, potato and onion among others through irrigation, and selling them to the local market. He even remembers a time when he managed to sell up to 15,000 birr from a single harvest of onions.

However, things which looked rosy at first gradually started to change in a different direction. He is now worried that it will be only a matter of time before his days of success will be short lived and become memories of the past. And he fears that the future of small scale irrigation will one day be in jeopardy if things continue business as usual. As more and more farmers continue to move to the river side with the intention to take a fair share of the water for irrigation purposes there emerged the rapid dwindling of the water volume.

As it turned out, Simachew sowed his field with potato last year with the hope to garner more harvest as before. However, his hopes were only to vanish in the air when the river water coming to a near dry and was unable to water his field.

“That was a terrible experience,” he remembered. This year Simachew has left his field idle for fear of not repeating the same experience. Instead he is renting his motor pump for others, and waits for the time when the water level increases.

Stories of Simachew seem to be all too common in the Yetnora kebele who are using Mechet River for irrigation purposes. Similar experiences are now being faced by many other farmers as a result of the sad turn of events triggered by the rising demand for water and the resultant dwindling of the water.

Farmers who once managed to escape from the trap of poverty by producing high market value crops using irrigation are now in dilemma.

Mechet is not the only river that is being used for irrigation in Dejen Woreda. Hundreds of households are also harnessing the Muga River, a relatively bigger river in the woreda.

Hundreds of farmers in the woreda are supplementing their rain-fed agriculture with irrigation by harnessing small rivers in their areas. Some have even created assets from the sale of high market value crops.

The farmers build small pond-like dams on the rivers on their own and irrigate their fields using motor pumps. Year after year, more and more farmers are engaging in irrigation. Challenges that farmers are facing are more or less similar- i.e dwindling of water and related consequences.

Tewabe Adamu has started growing vegetables mainly tomato and onions a few years ago by harnessing water from river Mechet, which is supplying water to not less than one hundred households. For Tewabe, the returns were encouraging. However, he says he is now witnessing that the number of people utilizing the river water has increased and as a result the water has become no longer dependable. That is the reason why this year he was forced to sow chick pea, a crop which relatively needs less water compared to other crops and vegetables. He knows that in terms of making income chick pea won’t be as good as tomato or onions. “ I don’t want to take chances. I have seen crops drying due to shortage of water,” he said.

Tewabe Adamu

Farmers in various parts of the country including East Gojjam have since a couple of years ago turned their eyes to the local rivers which otherwise had for years been gushing in the middle of crop fields washing away the most valuable soil nutrients from the farms.

In a way the government’s policy to help farmers make a paradigm shift in their farming practice and focus on irrigation as much as they do on rain-fed farming, seems to be hitting targets.

On the other hand the achievement obtained in convincing farmers to make use of the nearby rivers, has not come without its own consequences. Most of the irrigation development efforts are initiated by farmers and are barely regulated.

Simachew and Tewabe, both from Yetnora Kebele, agree on one solution to avoid possible catastrophic disasters on the small rivers being harnessed and instead make the most out of them. Put in simple terms, what the farmers need is government’s support. “ If the government helps us in building small dams whose water flow can be regulated, we can benefit a lot from the rivers. And the water shortage problem will be avoided since the dams can collect a lot of water during the rainy season,” said Tewabe.

In fact dwindling of water is not the only problem the farmers utilizing small rivers for irrigation are facing. A whole lot of other issues from water abstraction to the type of crop to be planted, need professional inputs.

In most cases farmers are irrigation engineers, agronomists and researchers that almost single-handedly they deal with building of the dam and carrying out irrigation development. There is much to be done in terms of ensuring the environment friendliness of the irrigation practices.

In fact in some localities in Gozamin Woreda of East Gojjam Zone the disproportionately rising demand for a share of water from rivers harnessed for irrigation purposes and the resultant dwindling of river waters is taking a new shape. The competition for water is being a source of tension among the people sharing the river water. And if unattended there is no guarantee why the tension won’t grow into skirmishes. River Kulech, one of the rivers that has been utilized by hundreds of farmers in Gozamin Woreda, has now become under stress due to the sharp increase in the number of people who want the river water. An estimated three hundred households claim that they are the rightful beneficiaries of the river. That has left a situation which is gradually leading to tension among the neighbouring kebeles.

Zeru Ayehu, a farmer in Lomiwonz Kebele in Gozamin Woreda has for over five years been growing Potato and onions by abstracting water from the river, Now that has become almost impossible. Due to the swelling number of users over the past few years, he is now obliged to wait for two weeks to water his field. He was also obliged to plant tomatoes which according to him demands less water than potato and onion. Zeru also has concerns over the wasteful utilization of water, which according to him is a problem that calls for intervention from local authorities.

Zeru Ayehu

East Gojjam Zone is best known for being one of the biggest producers of teff and other cereal crops. The zone is also known to have a significant share in the central cereal market. At the same time the zone is vulnerable to a wide range of land degradation problems which posed a serious challenge on crop productivity. If not for the recent watershed management works undertaken by the farmers themselves the land degradation problem would have worsened. Hence the recent influx of interest in irrigation is partly driven by the question of survival. However, such efforts have in a way supplemented production through rain-fed agriculture. Some farmers describe their utilization of irrigation as ‘a new chapter’ in their lives.

The significance of small scale agriculture for improving agricultural productivity is obviously high. However, at the same time if such practices are not aided by professionals and local administrations, there is a good chance that they become sources of problems instead of being opportunities.

Solomon Alelign, Gozamin Woreda Administrator told The Ethiopian Herald that while there is a growing trend in the use of small rivers for irrigation in the woreda, there is a concern over the utilization of the water. He said that conflicts of interest between upper and lower riparians have been witnessed in some of the kebeles sharing rivers.

According to Solomon woreda administration is working to address the problem through a programme called ‘modernizing irrigation’ which will be implemented across the woreda. The programme among other things will focus on the economical utilization of water. Accordingly, watering fields through channeling instead of flooding is one way of addressing the water utilization problem. Moreover, other irrigation technologies are being explored according to the Woreda Administrator. Agricultural professionals are also receiving training on ways of modernizing irrigation so that they will closely follow up the farmers and provide professional advice.

Solomon also noted that three irrigation dams which have a capacity of developing up to 700 hectares are being constructed by the woreda.

Source: http://www.ethpress.gov.et/herald/index.php/herald/development/5412-small-rivers-bringing-new-hopes-sustainability-remains-a-concern

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Related articles

• 31 December 2013 News Briefs
• In Ethiopia, irrigation brings more than water

Almaz Acha sits with her baby Alentse at her home in the rural community of Sadoye, in southern Ethiopia. Families in rural communities, like this one, have benefited from Ethiopia’s health extension program. (pictured, above)

By Jason Beaubien

Poor countries are starting to realize something that richer ones sometimes forget: Basic, inexpensive measures can have dramatic impacts on the health of a country. And they can save thousands of lives.

Take, for instance, the situation in Ethiopia.

The country used to have one of the highest rates of child mortality in the world.

“If you were a kid born in 1990 [in Ethiopia], you had a 1 in 5 chance of not surviving to your fifth birthday,” says Peter Salama, who directs UNICEF‘s efforts in Ethiopia.

Community health worker Foos Muhamed Gudaal treats kids for malaria, respiratory infections and diarrhea at her post in the village of Walgo Yar, Ethiopia.

Since then, the country has improved that survival rate by about 60 percent. “So [Ethiopia has made] a tremendous achievement in the space of two decades,” Salama says.

This progress isn’t a result of expensive international aid or the recruitment of foreign doctors into Ethiopia. Instead, the country has invested in simple, bare-bone clinics scattered around the country, which are run by minimally-educated community health workers.

Foos Muhumed Gudaal is one of 35,000 rural health extension workers in Ethiopia. She practices at a post in the village of Walgo Yar in the eastern part of the country. The clinic is a simple, cement building with only two rooms: one for Gudaal to live in and one that serves as a consultation room. There is no electricity. There are no lights.

Gudaal’s role at the post is a bit like the old image of a small-town pediatrician. But she isn’t even a nurse. Instead, Gudaal, along with all the other health extension workers, has gone through a special, one-year training program.

Her salary also isn’t anywhere near that of a pediatrician. She earns roughly $35 each month.

But Gudaal can still treat the diseases that often cut a child’s life short in Ethiopia. And she can make sure kids in the village are up to date on their vaccines.

One of the main conditions Gudaal deals with is malaria. The parasite kills about 600 million people worldwide each year, and the vast majority of those deaths occur in children under age 5. Gudaal can diagnose and treat most malaria cases at her health post.

Because there is no electricity at the clinic, Gudaal has to rely on a kerosene-fired refrigerator to keep her vaccines cold. The aging fridge sits in a small shed next to the consultation room.

Gudaal lifts several vaccine vials out of the fridge. She not only administers immunizations, but she also keeps records for who in the village needs shots and boosters.

Since being launched a decade ago, this health extension program in Ethiopia has had a huge effect in the country, Salama says.

Quite simply, it has saved lives. “Children are now treated right across the country on a scale that was previously unheard of around the world,” he says.

“Take acute severe malnutrition, for which Ethiopia was famous in the ’70s and ’80s,” Salama says. “Today, successfully, these same lady health workers treat 300,000 children [each year] for severe malnutrition.” Previously, these children would have most invariably died, he says.

Despite these improvements, Ethiopia still has a long way to go when it comes to children’s health. Malnutrition is still the leading cause of death for children under age 5 in the country. Nearly 20 percent of Ethiopian babies are born underweight, weighing less than 5 1/2 pounds. And about 40 percent of kids don’t reach a normal height because of malnutrition.

But, Salama says, the beauty of Ethiopia’s health extension program is that it’s sustainable. It’s run by the government, not a foreign foundation or agency. So as long as there’s the political will, it’s able to reach kids across the country.

Source:  http://www.npr.org/blogs/health/2013/12/19/255448192/simple-cheap-health-remedies-cut-child-mortality-in-ethiopia?ft=1&f=1001#

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Related articles

• Simple, Cheap Health Remedies Cut Child Mortality In Ethiopia (wnyc.org)
• Ethiopia’s Course of Development in the Eyes of Mark Lowcock (allanapotashblog.org)
• Ethiopia’s immunization transformation (one.org)
• Ethiopia and Angola double number of girls in school in 10 years (trust.org)
• Faces of Ethiopia:: The North (itchierfeet.wordpress.com)
• Health Extension Program of Ethiopia (mekeditiyilma.wordpress.com)
• New Year Greetings From ETHIOPIA (aboutaddisababa.wordpress.com)
• Ethiopia: Exciting Innovations in Agriculture and Health
• Geographic Technology Helps Put Ethiopia on Map of Global Health Success
• Ethiopia: World Bank Supports Ethiopia’s Push to Achieve Historic Health Improvements

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AAU’s Technology Institute to Management Coal Phosphate Fertilizer Complex Project

The state-owned Chemical Industry Corporation awarded management and administration consultancy service contract of the coal phosphate fertilizer complex project to Addis Ababa University’s Technology Institute, Ethiopian Press Agency reported.

Speaking at the agreement signing ceremony on Monday, at Addis Ababa Hilton, The Corporation’s Acting Director General Mekonnen Zergaw said, the execution of mega projects by indigenous contractors and consultants greatly contributes to building the nation’s technology capacity and development, particularly in areas such as citizens’ capacity building and promoting technology transfer.

Addis Ababa University’s Academic Vice-President Dr. Jyissu Omer on his part said, “ The AAU is ready to implement the new consultancy service contract agreement responsibly.”

In addition to conducting research and study, teaching-learning process and community service programs, the Institute has been engaged in provision of multifaceted professional support and consultancy services for various infrastructure and development projects.

http://www.2merkato.com/news/alerts/2790-ethiopia-aau-s-technology-to-management-coal-phosphate-fertilizer-complex-project

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Modjo-Hawassa Highway Project to Launch Soon

Preparations are underway to launch the construction work on the 4-lane dual carriageway Modjo-Hawassa highway project, Walta Information Center reported citing the Ethiopian Roads Authority (ERA).

The 210-km highway project will be implemented in four phases.

The first phase consists of the construction of Modjo-Meki new asphalt road and the second phase includes the construction of asphalt road between Meki-Zeway, according to the Ethiopian Roads Authority.

The third and fourth phases of the project consist of the construction of new asphalt road between Zeway-Arsi Negele and Arsi Negele-Hawassa.

The construction of the 56-km Modjo-Meki new asphalt road will be financed by the African Development Bank (AfDB) and the government of Ethiopia.

Financing agreement in underway between the government of Ethiopia and the Korean Exim Bank for the construction of the 37-km Meki-Zeway road, the Authority’s Communication Director said.

The World Bank and the Chinese Exim Bank has also shown their interests to finance the construction of the 55-km Zeway-Arsi Negele and the 62–km Arsi Negele-Hawassa roads, he added.

http://www.2merkato.com/news/alerts/2789-ethiopia-modjo-hawassa-highway-project-to-launch-soon

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Nation Set to Increase Agricultural Productivity by 15%

The Ministry of Agriculture said activities are being carried out to increase agricultural productivity by 15 percent during the current production year, Ethiopian News Agency reported.

In a press conference held on last Wednesday, public relation head with the Ministry Tarekegn Tsige said the Ministry has set target to achieve the goal by increasing use of irrigation, utilization of fertilizers, compost and improved seed by farmers.

The Ministry envisaging to enable 70 percent of households to get access to water banks, a system which helps each household have a reservoir, according to Ethiopian News Agency.

Over 920,000 hectares land has so far has been covered with fruits, spices and root seed, Tarekegn said.

http://www.2merkato.com/news/alerts/2788-ethiopia-nation-set-to-increase-agricultural-productivity-by-15

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Allanasons Ltd. to Build Meat Processing Plant in Ethiopia

Allanasons Ltd, India’s largest exporter of processed food products, signed an agreement with the Ministry of Industry establish a meat processing plant, Walta Information Center reported.

The agreement was signed in Addis Ababa on Wednesday, January 1, 2014 by Meberatu Melese, Industry State Minister, and Aman R. Kahan, representative of Allanasons Ltd.

Meberatu on the occasion said, the establishment of the plant would help to improve Ethiopia’s meat export.

It would also enable the pastoral community to benefit from its animal resources as well as the leather industry, he said.

In addition to promoting technology transfer, the plant to be built on 75 hectares of land around Zeway, Oromia Regional State at a cost of 371 million birr will create employment opportunities for residents of the locality, he added.

Allana chooses to build the plant in Ethiopia taking into consideration the country’s livestock potential and its favorable climate, Aman R. Kahan, representative of the group said.

http://www.2merkato.com/news/alerts/2787-allanasons-ltd-to-build-meat-processing-plant-in-ethiopia

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IDRB to Open Its Regional Office in Addis

State Minister Ambassador Berhane Gebre-Kristos met with Mr. Jeffrey Lee Pearson of International Development and Relief Board (IDRB) in his office (January 3, 2014). Ambassador Berhane during the meeting said that IDRB’s activities in Ethiopia have been helping a lot people. He hoped the organization will continue to contribute its respective share in Ethiopia’s ongoing development.

Mr. Pearson, Director of IDRB’s Horn of Africa Regional Office said his organization is grateful for the support provided by the Ministry of Foreign Affairs and that it is very keen on continuing its contribution in the areas of its engagement. He also said that IDRB is seeing a lot of progress in its activities in Afar, SNNRP, Tigray and other regions in areas ranging from veterinary assistance to provision of efficient fuel utilities.

The meeting between Ambassador Berhane and Mr. Pearson also saw a signing ceremony that would allow IDRB to open its regional office here in Addis Ababa. The regional office director said that he is pleased to see the progress Africa is making in recent years and that it was only logical to open the regional office here in Addis considering Ethiopia’s lead in Africa’s recent growth.

The state Minister reiterated that the Ministry will continue its support to IDRB’s work in Ethiopia and wished the Regional Office Director a pleasant stay and a productive working period in Addis.

http://allafrica.com/stories/201401031117.html

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Chinese Foreign Minister to Visit Ethiopia

Chinese Foreign Minister, Wang Yi will visit Ethiopia, as part of his tour to Sub-Saharan Africa.

According to the country’s Foreign Ministry spokesman, Qin Gang, choosing Africa as the destination of the foreign minister’s first visit in the New Year shows how China values Africa.

He added that it has been a tradition since 1991 for Chinese foreign ministers to first visit Africa every New Year.

“It is also the first visit paid by the Foreign Minister to sub-Saharan Africa since China’s new administration took office,” Qin said.

It is believed that the visit of Chinese Foreign Minister will deepen state-to-state friendship, mutual trust and cooperation, and boost Sino-African friendship of cooperation.

The Chinese Foreign Minister’s official trip to Africa will be held from 6 to 11 January and will also include a visit to Djibouti, Ghana and Senegal.

http://allafrica.com/stories/201401031081.html

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ERCA Fires 59 Employees in Relation to Corruption

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Food security needs Africa to move from aid-dependent fixes to profitable trade-driven agriculture, says David Bennett.

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SciDev.Net’s recent Spotlight Ensuring food security for the future featured a number of first-rate articles from various viewpoints. Yet there’s one viewpoint sorely lacking: on the economy — and related to this, the role of aid.
Too often people think food security can be achieved by a combination of long term research and short term low-tech initiatives. These depend on donor funding, whether from foreign governments — either directly or via their support for research — or from charitable foundations or NGOs.
But for any solution to food security to be truly sustainable, people have to move from depending on aid to depending on trade. That is the elephant in the room when it comes to Africa — clearly evident but all too frequently hidden away and not spoken about.

Aid undermines

The issue is not new. In Africa the tide of aid money, however well-intentioned, has only promoted corruption in government and dependence among citizens. Dambisa Moyo, Zambian economist and former head of economic research and strategy for Sub-Saharan Africa at Goldman Sachs, has drawn a contrast with such countries as Argentina and Brazil, where a policy of investment has worked to grow economies. [1]
Many hundreds of millions of poor smallholder farmers are hungry because they cannot grow enough food for themselves and their families, or make enough money from selling what they do produce.
Growing enough food needs money — for better seeds and fertiliser, a water pump to irrigate the crop and a bike to take it to market, a radio or a mobile phone to find out about crop prices and cultivation information, and so on.   So it comes down to the economy. And that means moving from donor-dependency to trade-based self-sufficiency and self-reliance — which is what these many poor and hungry people say they want anyway!   A Harvard University study led by Professor Calestous Juma showed that Africa could feed itself by making the transition to economic self-sufficiency. “African agriculture is at the crossroads”, said Juma. “Africa is starting to focus on agricultural innovation as its new engine for regional trade and prosperity.” [2]

Investment breeds success

Some African economies are now amongst the fastest growing in the world. The Economist recently cited an International Monetary Fund study showing that six countries — Burkina Faso, Ethiopia, Mozambique, Rwanda, Tanzania and Uganda — had a GDP growth of at least five per cent on average from 1995 to 2010. [3] The article made the point that these countries have not relied on the resource and investment boom driven by China. They have achieved growth by controlling public finances, curbing inflation and, crucially, improving the climate for entrepreneurs and small businesses by sweeping away price controls and state monopolies. This approach in turn attracts further inward investment for economic development in all sectors including agriculture — investments in the form of grants or cheap loans and, importantly, investments from the African diaspora.

Ageing agriculture

There is, though, a massive conundrum facing African farming: urbanisation and the flight of young people from the countryside to the cities. This cannot be ignored. Half of all Africans are under 20 years old, and more than half of all global population growth between now and 2050 is expected to occur in Africa, more than doubling the continent’s population.

As Margaret Karembu, Director of the International Service for the Acquisition of Agri-biotech Applications AfriCenter graphically describes it: “Migration of young people from rural to urban areas has left food production in the hands of their elderly parents, most of whom are incapable to adjust to modern high-tech farming systems. The status quo has only served to further demotivate the youth as farming is portrayed as a punitive, inferior and non-profitable enterprise.” [4]

A fundamental change in the mindsets of African youths is needed, so they view themselves as key players in the food production chain. This is possible if farming becomes profitable, and if supportive infrastructure is provided that recognises agriculture as a cornerstone of the modern African economy and society.

Support self-sufficient profitability 

For this to happen, Africa needs to overcome ‘the donor-dependency syndrome’. Top-down funding and hand-out donations are short-term solutions with consequences including an inability to establish longer-term planning. The result is depressingly common and predictable. Such aid creates, encourages and perpetuates a culture tailored to, and indeed expert in, obtaining funding and spending it in dependent fashion. So it distracts and distorts efforts for self-sufficiency. Donors need to fund initiatives that really support people in achieving independence and self-reliance. This includes effective agricultural extension services that provide up-to-date, practical information to farmers — especially by women for women. Farmers need information on new seed varieties, how to grow these in local conditions, and how to market the crop. Farmers need demonstration farms that show advances in plant breeding and agriculture, and networks that reach small-holders. And they need micro-financing and credit unions to buy new seeds, fertiliser plus other necessities.   Donor funding should also be channeled into business advice and capital to help small businesses and ‘spin-out’ firms from universities and research institutions. This help is crucial for a truly sustainable agricultural economy in which small businesses reach financial profitability that attracts further investment from other sources.   The elephant in the room must lead the big parade out from aid to trade in Africa.   David

Bennett is a senior member of St Edmund’s College, Cambridge, UK and co-leader of the Biosciences for Farming in Africa programme funded by the independent John Templeton Foundation and two Cambridge University-based foundations. He can be contacted at david.bennett@efbpublic.org

By Margaret McMillan

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Dr. Tedros held discussion with China’s Foreign Minister

Starting his five-day tour to Africa, Minister of Foreign Affairs of the People’s Republic of China, Wang Yi, arrived Ethiopia today (January 6 2013). The Minister upon arrival was welcomed by Foreign minister of Ethiopia, Dr.Tedros Adhanom. The two Ministers held discussions afterwards focusing on existing bilateral relationship between China and Ethiopia and on ways to take it to an even higher level.

Dr. Tedros thanked the Foreign minister of China for making Ethiopia as his first destination in his tour to Africa. He also noted that the Ethio-China relations is growing much stronger evident in frequent high level exchanges between the two governments. He expressed his gratitude for the people and Government of China for their relentless support to Ethiopia’s economic development through development finance, investment, and in capacity building through transfer of Knowledge, skill and knowhow.

Dr. Tedros also called for a stronger partnership between Ethiopia and China in its multifaceted engagement and noted that China’s volume of investment is number one in Ethiopia. Dr. Tedros pointed out that Ethio-China relationship covers wide range as shown in its multi-layered form of government to government, party to party, people to people and business to people relations. Since this relationship is wide and covers all important areas, it is growing stronger and exemplary, he noted.

Dr. Tedros appreciated china’s involvement in projects like the Ethio-Djibouti Rail way project and the Addis Ababa Light Railway project. He also appreciated China’s interest to finance the Melkele-Asayita Rail way development project as it will give an opportunity to develop the huge potash potential of the region. Such kinds of infrastructural developments will make Ethiopia’s economy more competitive, he said. Dr Tedros also expressed his appreciation for the signing of an agreement between China Association of Development zones (CADZ) and the Ministry of Industry to work together with the Government of Ethiopia in developing Special Economic Zone, noting paramount importance to industrial development. He finally noted that the all- inclusive development process that China follows is a model for Ethiopia.

Ethiopia and China also built strong relationship in terms of finding lasting peace and stability in the region as well as in the international forums.  In this regard, Ethiopia appreciates china’s contribution to solve the crisis in this volatile region.

Foreign minister of China Mr. Wang Yi stated that he made Ethiopia his first stop in his African trip because the relation is in a stronger shape. The mutual economic relation is growing along with vibrant people to people and cultural relations, he noted. In order to take this strong relation in to an even higher level, the Foreign minister underlined the need to deepen the bilateral political relations , improve on  cooperation in various fields including education, culture, technology and other fields, and strengthen the cooperation between the two countries and uphold their positions in the international stage.

http://www.mfa.gov.et/news/more.php?newsid=2873

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Japan PM to visit Ethiopia

Addis Ababa – Japanese Prime Minister Shinzo Abe will visit Ethiopia this week.

Abe will commit some 10 billion yen to Ethiopia for the construction of a geothermal power plan.

The premier will also visit Mozambique, Ivory Coast and Oman. The premier is expected to provide over 60 billion yen ($577 million) in loans to Mozambique for the construction of highways.

Officials from some 50 Japanese corporations are likely to accompany the Prime Minister.

At the Tokyo International Conference on International Development in June, Abe said “Africa will be a growth centre over the next couple of decades” and Japan must make a commitment in a way that would benefit both sides.

http://www.waltainfo.com/index.php/editors-pick/11946-japan-pm-to-visit-ethiopia-

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Indian meat processor sets up plant in Ethiopia

Allana Sons, one of the largest Indian meat processing companies, has invested $20 million to establish its first meat processing and exporting plant in Africa.

The company has made its base in Ethiopia’s Ziway town in Oromiya state of Ethiopia, 159 km from capital Addis Abeba.

The company signed an agreement Wednesday at the ministry of industry with ETG Designers and Consultants Plc, a local private firm, for establishing the modern meat processing and exporting plant. India’s Ambassador to Ethiopia Sanjay Verma, who is concurrently accredited to Djibouti and the African Union, was present.

“The arrival of Allana will add more value to the Ethiopian economy, following the demand for meat production in the country, and to the existing $5 million investment by Indian companies,” Verma said.

The company hopes the integrated meat plant will start production by September 2014, slaughtering around 200 cattle (25 tonnnes) and 5,000 sheep/goats (50 tonnes) a day.

Initially, the plant is expected to produce 75 tonnes of boneless meat daily ready for export, according to Aman Khan, who heads the Allana Group in Ethiopia.

“Ethiopia has the largest livestock population in Africa and it is striving to achieve benefits from the sector and we are just adding our part to the economy and to the development of the sector in the country,” said Khan.

Khan said that the Allana Group would strive to add value to the Ethiopian meat and livestock market.

The first phase of the project will see the employment of some 600 permanent staff.

On the issue of environmental protection, Khan said a world-class effluent treatment plant would be constructed alongside the meat processing project.

In the second phase, the company plans to more than double its slaughtering and exporting, depending on the market demand.

The government has provided 75ha of land and the company intends to begin commercial production by September. Khan said the waste from the slaughterhouse will be processed to produce biogas and animal feed.

The design of the plant has been finalised and the company is in the process of evaluating a contractor, according to Eshetu Temesge, executive director of ETG.

“It is not just about signing a contract but also importing good practices from Allana”, he said.

The Allan Group, known as Allana Sons in India, exports frozen halal buffalo meat, coffee, fruits and other commodities from India to some 70 countries. It was established in 1865 and has come to Ethiopia with its own capital and market knowhow.

Khan said that his company would continue investing in Ethiopia to make it the “hub of meat in east Africa”.

“This particular project will open our eyes to use the resources we have yet fail to pay attention of their potential,” said Keba Hunde, commissioner of Oromiya Investment Commission.

http://sodere.com/profiles/blogs/indian-meat-processor-sets-up-plant-in-Ethiopia

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Residents make way for new stadium

The area between Bole Medhanialem and Imperial Hotel is being cleared to make way for the construction of a 60,000-seat stadium, estimated to cost 1.6 billion birr.  Residents of the area, commonly known as “Chereqa sefer, have been relocated, as many houses had to be demolished for the construction. Many squatters have also been removed from the area.

Last year in June the Federal Sport Commission officially declared the winner of the new architectural design of the new stadium that it plans to build. The Winner of the design was reportedly JDAW and its engineers. The stadium will be Ethiopia’s first that is up to FIFA’s standards and guidelines. Currently there are only two stadiums in Addis Ababa. The Addis Ababa Stadium which was built by Emperor Haile Selassie half a century ago. Another stadium, which has yet to be fully finished, is  Abebe Bikila Stadium.

It was reported that the commission believes the old stadiums are preventing them from holding more football matches. In addition, the bigger stadium will generate more revenue, as is common for other nearby countries that have bigger stadiums.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3895:residents-make-way-for-new-stadium&catid=35:capital&Itemid=27

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Horticulture sector growing despite communication, power, bureaucratic challenges

The Ethiopian Horticulture Producer Exporters Association (EHPEA) showcased seven of its farms to display the successes and challenges the sector faces.  Tewedros Zewede, director of the association, told media members that flower and produce growers need more land, more consistent power and better telecommunications in order to grow the industry, during the tour that occurred January 2-4, 2013.
“The government is always trying to attract investors to the sector,” Tewedros said. “But when they do come they have to struggle through a quagmire of bureaucracy to obtain land and every little thing takes time and unnecessary effort,” Tewedros said while walking reporters through the flower, fruit, vegetable and herb plantations.
Telecommunication is also becoming one of the biggest challenges in the sector Tewedros added. The produce has to be sold and transported quickly. For that the producer and consumer have to meet at the farms daily. This wastes time and cripples the country’s ability to compete internationally, he said.
“We are competing with countries like Holland and The Netherlands in the international market,” he added. “We have to be more competent and solve the problems of logistics.”
The association has 96 members which makes up the majority of the producers and exporters in Ethiopia. It was established in 2002. In the 2011/12 fiscal year, the sector garnered USD 265 million. Tewedros claims that the 2012/13 revenue exceeded all previous years but he was unable to reveal the exact amount because the result is still being audited.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3897:horticulture-sector-growing-despite-communication-power-bureaucratic-challenges&catid=35:capital&Itemid=27

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Inflation takes downward turn

The Ministry of Finance and Economic Development (MoFED) released a statement saying that there are indicators that the inflation rate of the country is about to take a downward turn.

A senior economist who requested anonymity told Capital that inflation can be a growth indicator provided that it is kept in check. According to the Central Statistics Agency (CSA), the Inflation rate for the month of November 2013 was 7.9pct.  The economist believes that a decrease in inflation is only possible when there is a surplus of production. Indeed the data from CSA seems to support the economist’s opinion. It states that the crops from this year’s harvest will be 254.2 million quintals, 22.9 million more than the previous year’s. This includes major components of Teff, Barley, Corn, Wheat, and Maize. Among the major reasons cited for the rise of prices was importing food products especially staple diet supplies.

The statement from MoFED claimed that the inflation for food stuffs had decreased from 30.5pct November in 2012 to 6.5pct in 2013. The overall rate has decreased from 25.8pct to 8.6pct. Prices for other materials have deflated from 20.3pct to 19.9pct. Capital investigated at local bakeries. The price for wheat in September was 950Br a quintal, in October it rose to 1,150Br during the wheat shortage and now the price stands at 960Br. The expert maintains that this stabilizing of prices won’t have an adverse effect on Ethiopian farmers. “It is after all only a prediction,” they said. “You have the right to sell your products at the price where you can make a profit”.

The economist argued that  opening the market to more private investment would further reduce inflation. They cited examples like the government getting involved in the wholesale market and influencing the wholesale market which decreases competition. “Competition will allow fairness to reign in the Ethiopian market,” our expert concurs. “For too long the market has been controlled by an oligarchy of rich and powerful businesses. It is time for the rise of middle class traders,” they said.

One measure the government took is the distribution of imported staple food products like sugar, and cooking oil from abroad to sell to low income citizens at reasonable prices, according to MoFED’s report. It further stated that the government is doing the best it can to insure that these products don’t end up on the black market.

Overall, the expert agrees with the measures of MoFED but cautions that decreasing  inflation has to be balanced with a trade-off. “At the start of the GTP the government decided to tackle four macro-economic problems,” the economist said. “Namely, unemployment, balancing payments, increasing the country’s GDP and stabilizing market prices. But you have to realize that you can’t achieve all of them at the same time. In economics, a trade-off is necessary. Like we Ethiopians say, just because you have two legs doesn’t mean you can climb two trees,”

The expert continues by saying that every economic decision made by the government has to be study-based. “It also has to put the realities of the time in mind,”. “That calls for a revolution in CSA’s data collection methods which are archaic and leave room for inaccuracies,” the economist concluded.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3900:inflation-takes-downward-turn&catid=35:capital&Itemid=27

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ERCA admits confidence issues among staff

The Ethiopian Revenue and Customs Authority (ERCA)  says it has observed employees suffering from a lack of confidence possibly due to recent events at the Authority.   Taxpayers who have been asking for their taxes to be reviewed have said that employees have been reluctant to make decisions or hear their cases. During discussions held between management of the Western Addis Ababa branch of ERCA and taxpayers on Friday January 3, 2014 at the National Cultural Center, in Sidist  Kilo the issue was frequently raised by the taxpayers. At the latest discussions between taxpayers and the Authority, many repeated experiences that others have been complaining about for the past several months.

They say that ERCA staff have been unwilling to give decisions and have lost confidence in their work. Taxpayers who participated at Friday’s event complained that they could not get their tax issues cleared up because they could not find someone willing to be responsible to give a decision about their complaint.   “I can’t participate on bids because I have not been able to get clearance from ERCA for over six months,” one of the participants said. Participants said that employees who did decide on their tax cases were fired or accused of corruption because they conducted their ordinary responsibilities. Meanwhile they say that those who do not do anything are able to remain at their jobs. As a result, they argue, inaction becomes in the best interest of employees causing a bottleneck in the system.

The taxpayers further complained that they were unable to get solutions to their tax issues for several months and were not given any specific reason as to why. Emuye Adera, head of the West Addis Ababa Taxpayers branch of ERCA, admitted that lack of confidence and hesitation is something they have been observing from staff. “The staff is very frightened and retreating from making decisions.  She said some of employees are looking to upper officers to handle their cases. Lack of decision making  negatively affects the entire  system,” Emuye said. “We have to work to eliminate the fear on the faces of the employees using innovative ways to build their confidence,” she added. “There is also lack of efficiency between employees when they are dealing with cases,” she clarified.

She said that ERCA has identified the problem as a challenge. “The Authority will work to solve the issue,” she added. “We need the employees to consider customer’s problem as their own problem, if we can do this decision making will improve,” the branch head explained. She advised that the taxpayers to stand up for their rights confidently rather than accepting every action  taken by the tax officers. Some  ERCA directives are not clear, and some of them are confused with other directives issued by ERCA. One of the participant said that authority directives sometimes are issued against the proclamation  amended by the parliament, which is the only body that can ratify proclamations, and published them on the  ‘Negarit Gazette’, taxpayers argued.

At the event the tax office management claimed that very few people show up at hearings, discussions and education events about taxes that are organized by ERCA. “We have frequent awareness creation events that are meant for new taxpayers to keep them from tax faults but the number of participants has been much less than expected,” the branch head said.    The number of participants at the discussion held on Friday was also lower than expected.   ERCA’s management agrees that some tax related directives and proclamations are not clear and might be hard for employees to implement when working with customers on a daily basis.  Emuye said that the Authority is working to clarify the directives and other laws.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3899:erca-admits-confidence-issues-among-staff&catid=35:capital&Itemid=27

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Melaku denied bid for Supreme Court hearing

The House of Federation (HoF) ruled out Article 8 (1) of Proclamation No. 25/96 of the Federal Court’s Establishment Proclamation that grants the Federal Supreme Court exclusive first instance jurisdiction over criminal cases involving government officials saying that it is unconstitutional. The articles states that the ‘Federal Supreme Court shall have exclusive first instance jurisdiction over the offences for which officials of the Federal Government are held liable in connection with their official responsibility.’

On November 20, 2013, the Federal High Court’s 15th Criminal Bench referred the case of Melaku Fenta, former director general of the Ethiopian Revenues & Customs Authority (ERCA), to the Council of Constitutional Inquiry, saying that the latter needed to determine whether the Federal High Court had material jurisdiction on the case. The Court decided that the case needed interpretation by the Constitutional Inquiry Commission – an expert group under the House of Federation – against counter arguments from prosecutors of the Federal Ethics & Anti-Corruption Commission (FEACC). Prosecutors for FEACC during the proceeding argued that the former director general may have a ministerial portfolio, but that it was meant only as a benefit of his job. They also claimed that the office Melaku led is an authority and not a ministry.

During its urgent session on Thursday January 2, 2014, the House of Federation with a majority vote decided that the article was unconstitutional referring to Article 20 (6) of the FDRE constitution that reads ‘All persons have the right of appeal to the competent court against an order or a judgment of the court which first heard the case.’ When it was time to vote, 76 members voted in favor of the council’s decision with eight objections and two abstinences. The decision means, the Federal High Court will retain jurisdiction over Melaku’s case.

The decision also means, subject to jurisdiction, government officials, including members of House of People’s Representatives, HoF, ministers and officials above the rank of ministers, judges of the Federal Supreme Court could be brought before any court.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3905:melaku-denied-bid-for-supreme-court-hearing&catid=35:capital&Itemid=27

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Over 2,400 Investment licenses face cancellation

The Ethiopian Investment Agency stated it will be canceling 2,497 investment licenses with an accumulative investment worth well over 60 billion birr within the next week if the listed business owners do not report and give explanations to the Agency.

The Agency posted a notice some two weeks ago listing down the names of the companies whose investment licenses would be potentially revoked, along with other information such as the sector in which they are involved together with their investment worth.

“We are currently going through documents of various companies and conducting an evaluation. We are checking to see if everything is done correctly. Accordingly we have put up a notice here asking companies who do not have the appropriate and necessary documents, come and report to our office,” a PR officer at the Agency told Capital.

Both local and international companiesare listed on the issued notice by the Agency. “If the companies listed report and provide the Agency the necessary documents that are currently missing, then there is no reason their license would be canceled,” the PR officer stated.

Some of the reasons for the licenses to be revoked include failure to renew business licenses as well as not starting the operations for which the license is issued.

“Some of the companies acquire licenses for projects but end up failing to begin operations in the specific time provided in the law. These companies will have to provide a persuasive and acceptable reason in order to keep their license,” he further added.

The companies on the list are involved in a variety of sectors such as construction, tour operation, hospitals, restaurants, many of which specialize in Chinese cuisine, consultancy firms, higher education institutions, construction machinery rentals, flower farms, hotels and more.

“We are still in the process of evaluating more documents. We will release names of more companies, if there are any, who have failed to provide full documentation shortly,” he said.

The companies have been given a window of 20 days to be able to fix the problem and stop their license from being revoked.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3912:over-2400-investment-licenses-face-cancellation-&catid=54:news&Itemid=27

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Banks move into new business

The National Bank of Ethiopia (NBE) is set to roll out a new directive that will make it easier for banks to become directly involved in non-banking businesses, such as agriculture, commerce and industry. The directive that will replace a previous one issued in 1996, entitled ‘Limitation on the Investment of Banks’, allows banks to directly engage in businesses not related to banking, provided that they do so in a joint venture or partnership agreement with their customers, through an interest free banking service. “We expect the directive to be ratified in the coming few weeks,” President Abi Sano of Oromia International Bank said. “It will help us in our endeavor to be the best service provider in the Islamic banking sector,” he added. NBE in 2011authorized interest free banking, as part of the services given by a conventional bank and not as an independent operation in and of itself.  Zemzem Bank, which began mobilizing funds in December 2010 to establish a purely interest free bank, was deterred by this restriction, and was later forced to dissolve. In interest-free banking, funds are mobilized and advanced without payment or receipt of interest, in accordance with Islamic principles.

Instead, such banks depend on investments in client businesses, equity financing and charges for services rendered, to mobilize funds. “It is this restriction that the new draft directive is trying to resolve,” the president said. In the 1996 directive, banks were allowed to invest only up to 20 percent of the company’s share capital in a single non-banking business and total holdings in such businesses can only reach 10 percent. However the new directive will increase banks involvement in the investment sector. Currently, insurance companies enjoy relatively more freedom in investing.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3911:banks-move-into-new-business-&catid=54:news&Itemid=27

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Nib selects four candidates to design its HQ

Nib Insurance Corporation(NIC) selected four finalists to  design their headquarters, which will include a branch for its’ sister company , Nib International Bank, on Africa Avenue next to Mega Printing House.  The four finalists were chosen by impartial judges in the architecture and financial sectors. The three runner-ups were given monetary prizes and one was awarded first prize, according to the Bank’s PR office. The prizes, however, were undisclosed.

Nib Insurance was founded on May 2, 2002, by 818 shareholders, with  30 million Br in paid-up capital. Before the NIC, Nib International Bank (NIB) was established on 26 May 1999 and started giving service on October, 1999. It had a paid up capital of 999.4 million birr and a total capital of 1.7 billion birr as of the last fiscal year.

There have been disputes over the construction of the Nib Bank headquarters located at Senga Tera among shareholders and board members, according to sources close to the issue. Most of the shareholders found the price for the construction of the 35 floor building, which now stands at one billion birr excessive.

Only time will tell if the shareholders of Nib Insurance will have similar misgivings about their headquarters, when the design and construction cost of the building is revealed in the coming months.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3901:nib-selects-four-candidates-to-design-its-hq-&catid=35:capital&Itemid=27

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Anti-Corruption Commission establishes alliance with consumer unions

The Federal Ethics and Anti-Corruption Commission held a consultative meeting with consumer unions to talk about a draft regulation written by the commission that would form an anti corruption alliance.

According to the draft, the alliance will make the fight against corruption stronger by using trainings and sharing experiences between the unions and the Commission. It also aims to help the unions become more efficient through transparency and capacity building.

The document states that the alliance is being founded by the Federal Ethics and Anti-Corruption Commission, Ministry of Trade, Addis Ababa City Trade and Industry Development Bureau, Trade Practice and Consumer Protection Authority as well as ten consumer unions.

According to the regulation, members of the established alliance are expected to educate their community members as well as fellow alliance members on ethics and ways to fight corruption. It will also be a platform for the unions to have transparent and constrictive discussions about challenges they face. The alliance has a structure of a General Assembly, Executive Committee, Chairman, deputy Chairman and Secretary.  The General Assembly will meet once a year and will be in session only if half of the members are in attendance.

Through this and other alliances with different sectors  throughout the nation, the Federal Anti-Corruption Commission plans to sculpt a society that fights and becomes free of corruption. The consultative meeting was held at the Ghion Hotel for two days on December 30th and 31st, 2013.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=3904:anti-corruption-commission-establishes-alliance-with-consumer-unions-&catid=35:capital&Itemid=27

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Premier calls for respect of workers’ rights to associate

Prime Minister Hailemariam Dessalegn has called on employers to recognize and respect the rights of employees to form associations.