Jan.7, 2014                                       

Wudinesh Demisse, right, and her model family, (pictured above), part of the Ethiopia’s so-called health development army.

-  Ethiopia is boosting its healthcare statistics by encouraging rural households to adopt and disseminate a range of good habits

Claire Provost  /  theguardian.com,             

Thursday 9 January 2014

Wudinesh Demisse raises her hand above her head, showing off the matchstick-sized birth-control implant embedded just beneath the skin of her upper arm.

Wudinesh, 28, is a farmer in rural West Arsi, in Ethiopia‘s central Oromia region. With three children already, Wudinesh says it is time to stop. “For me, three is enough,” she says, through a translator. “If they are too many, they are too expensive.”

Wudinesh, who lives in a small village 200km south of the capital, Addis Ababa, is one of millions of Ethiopian women who have gained access to modern forms of birth control over the past decade. Today, her local health post stocks a range of products, from condoms and pills to longer-acting injections and implants.

Ethiopia is increasingly touted as a family planning success story. The government, which has made maternal and child health national priorities, is proud of its statistics – the country’s contraceptive prevalence rate, for example, jumped from 15% in 2005 to 29% in 2011 – and says efforts to reach remote, rural areas lie at the heart of its success.

Along with trained, salaried health extension workers – all of whom are female, a step to make families more comfortable with door-to-door visits – thousands of volunteers have been enlisted nationwide in the government’s “health development army”.

At the centre of this are people like Wudinesh and her husband, who head one of the government’s celebrated “model families” and are foot soldiers in a massive social engineering project to redefine healthy behaviour.

“They are role models and change agents for social transformation in each village across the country,” says Kesetebirhan Admasu, Ethiopia’s health minister, who explains that the project is based on a theory of how innovations spread that assumes change happens step by step. The idea is that there are “trendsetters” in every community, and that others can be persuaded to admire and, eventually, copy their behaviour.

To become a model family, a household has to adopt most if not all of the government’s 16 priority interventions – from vaccinating their children and sleeping under mosquito bednets to building separate latrines and using family planning.

Model families get certificates, are celebrated at village ceremonies and are asked to support five other households in adopting the priority interventions.

Ethiopia, Africa‘s second most populous country, is overwhelmingly rural and this has hampered the expansion of formal healthcare services and infrastructure. Estimates from 2009 suggest there was only one doctor for every 50,000 people. The government’s health extension programme is a strategy to bridge the gap and build capacity while expanding the services.

The NGO Marie Stopes International has urged rich countries to adopt some of Ethiopia’s techniques, saying they could save millions of dollars if they too trained up frontline health workers, nurses and midwives to carry out tasks – such as the fitting of implants – otherwise done by doctors.

For Kesetebirhan, the biggest successes have come from targeting “cultural and attitude-related bottlenecks”, which limit rural women from taking up services even when they are available.

In one region, Kesetebirhan says the health development army helped the government understand why women were not giving birth in health facilities. The army discovered women were fearful of the traditional stretchers used to carry them to hospital (which had become associated with bad luck) and did not want to go without the traditional coffee and religious ceremonies they could get at home. This led to changes including a newly-designed stretcher and plans to bring coffee beans, traditional food, and religious leaders to health facilities.

“All these innovations and interventions, they seem to be simple but it is changing the way services are perceived,” Kesetebirhan says. In the case of family planning, he says products like implants were not popular before but are now being used by a significant number of rural women. “It’s all because of the information that they get from their neighbours, from their friends and so on,” he says. “That is how they break all those cultural norms.

Many African countries have set up extensive community health worker schemes to reach rural areas. Understanding why people behave the way they do, and structuring projects accordingly, is also an increasingly popular approach in development, and a response to the failures of many expert-led schemes. The World Bank, for example, is working on a major report on the behavioural and social foundations of economic development, expected this year.

The military metaphors in Ethiopia’s programme set it apart from many others, however. “Such a movement would not be successful without the discipline of the army,” insists Kesetebirhan. “We said this is the way we really want to mobilise the community – they participate in the meetings, they work with the discipline of an army, and they address the critical bottlenecks.”

Kesetebirhan says it is the government’s policy to ensure women are not coerced into taking up health interventions. But some are suspicious of the development army model, which is also being pursued in agriculture with a nationwide network of “model farmers”.

Ethiopian journalist Henok Reta has reported, for example, that model farmers who boast of their results seem to have been coached by extension workers and are unwilling to talk about failures, challenges such as the price of seeds, and what they want the government to do next. A recent paper from the Overseas Development Institute think tank in London notes that community mobilisation efforts in Ethiopia, including the development army, can provide the ruling party with new mechanisms to monitor its citizens.

Teferi Abate Adem, former chairman of the department of sociology and anthropology at Addis Ababa University, argues that the agriculture extension programme has “reinforced the rural presence and authoritarian powers of the ruling party while largely failing to improve smallholder agriculture”.

Sourced here:  http://www.theguardian.com/global-development/2014/jan/09/ethiopia-model-families-social-transformation-healthcare

.

Related stories -

*     Simple, Cheap Health Remedies Cut Child Mortality In Ethiopia   

*     Irony of eastern Africa: As countries get wealthier, more people rated poor

*     Ethiopia’s Course of Development in the Eyes of Mark Lowcock

*     Ethiopia: Exciting Innovations in Agriculture and Health

*     More than just a bar on a chart in New York: Why the MDGs matter

*     Take a bow Ethiopia, you’re the African star on MDG’s!

*     Geographic Technology Helps Put Ethiopia on Map of Global Health Success

*     World Bank Supports Ethiopia’s Push to Achieve Historic Health Improvements

*     Ethiopia to Push Health Scorecard for African Continent

.

Nigeria, Ethiopia sign agreement on research exchange

The Nigerian Institute of International Affairs (NIIA) and the Ethiopian International Institute for Peace and Development on Tuesday signed an agreement to enhance exchange of research on Africa’s continental relations.
Signing the agreement in Lagos, NIIA’s Director-General, Prof. Bola Akinterinwa, said it was imperative for the institutes to come together and contribute to the continent’s development.

“We have realized that Africa’s relationship with the rest of the world has been vertical. We strongly believe that through our partnership, we can promote African renaissance and intra-African cooperation.

“And one way of doing this is to bring together all Africa’s International Relations Institutes in solving the problems of Africa.”We hope to foster a closer relationship between Nigeria and Ethiopia, using the institute’s research,” he said.

The director-general said that efforts were also being made by governments of the two countries to eliminate trade barriers between them. He also said that there were positive manifestations in the countries’ present and future areas of cooperation.

“Nigeria and Ethiopia have also agreed to work within the framework of the African Union. The agreement we have signed today is by Africa and for Africa’s development,” he said.

Sebehat Negga, the Executive Director, Ethiopian International Institute, expressed satisfaction on the agreement, saying that it would strengthen the relations of the two countries.

Sebehat said the time had come when African countries should be prepared to shape their destinies and development.

“As Africans, we need to begin to independently develop ourselves. I think we have to start rethinking of building our continental relations and development,” he added.

http://www.waltainfo.com/index.php/explore/11980-nigeria-ethiopia-sign-agreement-on-research-exchange

.

Dr Tedros attends UK business meeting

Foreign Affairs Minister Dr. Tedros Adhanom attended a business lunch on Thursday (January 9), organized by UK companies investing in Ethiopia in collaboration with the UK Embassy.
The UK companies which included Pitards, JCB, Diageo and Stratex were engaged in Ethiopia in leather, brewery, mining and garment businesses.
They also held a side exhibition of their products which Dr. Tedros and Ambassador Greg Dorey, the UK Ambassador to Ethiopia, visited.
Addressing the meeting, Dr. Tedros noted that Ethiopia with its growing market size, its youthful labor force and its conducive investment climate offers great opportunity to UK investors.
He thanked UK companies for choosing Ethiopia for investment and reaffirmed the readiness of his office to support their efforts.
He said, “it is through making your investment endeavors in Ethiopia comfortable that we can lure others to come”.
He said the government is doing its level best to address any problems in telecom and energy supplies, foreign currency, financial services or other investment related issues.
Ambassador Greg Dorey said that UK and Ethiopia bilateral relations were developing steadily with a growing UK investment in Ethiopia.
He noted that more UK investment was in the pipeline to take advantage of the good investment climate in Ethiopia, and he underlined the immense opportunities available in Ethiopia for UK companies in different sectors.

http://www.waltainfo.com/index.php/explore/11979–dr-tedros-attends-uk-business-meeting-

.

Ethiopia, Georgia intend to develop cooperation in all areas

Georgian Ambassador to Ethiopia Vakhtang Jaoshvili met with Ethiopian President Mulatu Teshome.
The ambassador congratulated Mulatu Teshome on official assumption of office and noted that Georgia attaches great importance to developing relations with Ethiopia, Georgian Foreign Ministry told Trend.
The Ethiopian president praised the Georgian authorities’ decision on opening an embassy in Ethiopia and said that this will contribute to deepening friendly relations between the two countries.
The president also noted that he was the first ambassador of Ethiopia in Georgia (with a residence in Ankara) and it was possible to accelerate the necessary procedures for opening an embassy in Addis Ababa with his immediate participation. He also expressed satisfaction that an embassy has been opened in Addis Ababa.
Ethiopian president also noted that there are many areas of cooperation which will be mutually beneficial and will bring real results for both countries. Ethiopia is interested not only in cooperation with Georgia, but also in the exchange of experience.
Georgian ambassador said that some progress is being observed in relations of the two countries despite the fact that little time has passed since opening of the embassy: a memorandum of understanding will be signed in the near future between the two countries’ foreign ministries, political consultations may be held this year and trade turnover significantly increased over the last year.
Relations have been established in the fields of education and culture. Work has begun for signing a memorandum of cooperation between the two countries’ national museums.
At the end of the meeting the representative of Georgia thanked the Ethiopian president for the assistance provided in the opening of the embassy.

http://www.waltainfo.com/index.php/explore/11972-ethiopia-georgia-intend-to-develop-cooperation-in-all-areas-

.

MSF Complements Medical Provision With Psychosocial Support for Returnees

- press release -

House approves appointment of Tolassa Shagi as Minister of Mines

The House of Peoples’ Representatives (HPR) at its regular session held today approved the appointment of Tolossa Shagi as Minister of Mines.
Tolessa has served as a State Minister of Mines since 2011.

http://www.waltainfo.com/index.php/explore/11966-house-approves-appointment-of-tolassa-shagi-as-minister-of-mines-

.

African Defense, Safety and Security Experts begin meeting in Addis Ababa

ADDIS ABABA, Ethiopia, January 10, 2014/African Press Organization (APO)/ — Within the framework of the African Peace and Security Architecture (APSA) and in preparation for the 10th Meeting of African Chiefs of Defense Staff and Heads of Safety and Security Services, on 12 January 2014, and the 7th Ministerial Meeting of the Specialized Technical Committee on Defense, Safety and Security (STCDSS), on 14 January 2014, a two-day meeting of Experts on Defense, Safety and Security started at the African Union (AU) Headquarters in Addis Ababa today, 10 January 2014. The meeting was opened by the AU Director for Peace and Security, El-Ghassim Wane, who emphasized the urgent need for Africa to enhance its capacity to respond to crises.  Participants observed a minute of silence in honor of late President Nelson Mandela and all African soldiers and security forces who have fallen in the line of duty in peacekeeping missions across the continent.

Two key issues are scheduled for discussion at the Meeting, namely: i) The Report of the recently concluded assessment of the African Standby Force (ASF), and ii) Progress made towards the operationalization of the African Capacity for Immediate Response to Crises (ACIRC), which was established by African leaders at the 22nd Ordinary Session of the AU Assembly, in May 2013. The ACIRC is intended to serve as a transitional arrangement pending the full operationalization of the ASF and its Rapid Deployment Capability, in order to provide the AU with a flexible and robust rapidly deployable force to effectively respond to emergency situations in the Continent.

With regard to the ASF, the Specialized Technical Committee on Defense, Safety and Security, at its 6th Ordinary Meeting, on 30 January 2013, in Addis Ababa, requested the AU Commission, in collaboration with Member States and relevant Regional Economic Communities and Regional Mechanisms (RECs/RMs) to conduct a comprehensive assessment of the African Standby Force, including its RDC, as an important step towards the full implementation of the decision of the 20th Ordinary Session of the AU Assembly of Heads of State and Government. The Chairperson of the Commission appointed an Independent Panel of Experts to conduct the assessment.

The ASF Assessment Panel consisted of a multi-disciplinary Team of peace operations experts headed by Prof. Ibrahim Gambari, the former Joint Special Representative of the United Nations – African Union Hybrid Peacekeeping Mission in Darfur (UNAMID) and former Foreign Affairs Minister of Nigeria. Professor Gambari and his Team conducted the Assessment from July to December 2013, during which period they visited the AU Commission and met with all the Planning Elements of the RECs/RMs. The Panel also consulted AU member states, the United Nations Office to the AU (UNOAU) and a large number of external partners, and submitted a comprehensive report on the progress made towards the operationalization of the ASF and its Rapid deployment Capability (RDC).

http://www.bizwireexpress.com/showstoryAPO.php?storyid=5749

.

US on South Sudan: We Will Cut Aid if Fighting Continues

President Obama Calls for End to South Sudan Ethnic Conflict with Aid Threat

By Ludovica Iaccino     

Ethnic fighting in South Sudan has claimed at least 1,000 lives and caused thousands to flee their home towns.

The US government has urged parties in South Sudan to sign an agreement to end the conflict or risk losing hundreds of millions of dollars in aid.

President Barack Obama’s administration has pledged $50m (£30m) in humanitarian aid while peace talks continue in Addis Ababa, the capital of Ethiopia.

The two sides, drawn along tribal lines and loyal either to President Salva Kiir or ex-vice-president Riek Machar, have begun face-to-face discussions and agreed a ceasefire – although neither side has agreed on a starting date for the truce.

During the talks, rebels asked for the release of several political detainees who had been accused of plotting against the government.

On Wednesday, the government leaders proposed to shift the peace talks to the United Nations compound in Juba, capital of South Sudan, enabling the 11 detainees to attend the negotiations and then return to custody.

But rebel delegates appeared to have rejected the proposal.

“The United States is disappointed that the detainees being held by the government of South Sudan have not been released,” Obama’s national security adviser, Susan Rice, said.

“The United States reiterates its call upon President Salva Kiir to release the detainees immediately into the custody of IGAD [the Intergovernmental Authority on Development] so that they can participate in the political negotiations,” Rice continued.

China has also expressed its concern for the conflict.

“China’s position is very clear: We call for an immediate cessation of hostilities and violence,” Chinese foreign minister Wang Yi told reporters in Addis Ababa.

The conflict started when Kiir, who is an ethnic Dinka, accused his former and vice-president Machar, an ethnic Nuer, of an attempted coup in December.

Machar denied the allegations and in turn accused the president of planning a violent purge.

The accusations sparked violence between the two tribal groups and escalated quickly into an ethnic conflict, which has caused the death of over 1,000 people and left thousands uprooted.

“There is clear evidence that targeted killings have taken place, with Dinka killing Nuer, and Nuer killing Dinka. Countless civilians, particularly women and children, have become victims,” US diplomat for Africa, Linda Thomas-Greenfield, said.

“It is the obligation of both President Kiir and Mr Machar to ensure that the lives of their people and future of their young country are not further marred by continued violence and atrocities.

.

IGAD Mediation Team says there is major progress on cessation of hostilities

Addis Ababa, 9 January 2014 (WIC) – The Inter-Governmental Authority on Development (IGAD) Mediation Team to South Sudan said there is indeed major progress on the issue of cessation of hostilities as both the government and the detainees have committed to unconditional negotiations.
After concluded a two day visit to Juba between 7 and 8 January 2014, the special envoys noted there continues to be a progress towards political dialogue, a press release IGAD sent to ENA said.
The Mediation team met President Salva Kiir Mayardit who reiterated his government’s position that the current crisis is political and reaffirmed his full support to the search for a political solution.
The President also expressed his government’s commitment to unconditional negotiations on cessation of hostilities in a bid to bring an end to the violence.
The Envoys also met the detainees and held discussions on the crisis. The detainees concurred that the crisis is indeed a political one and requires political solution.
In light of the ongoing peace talks in Addis Ababa, the detainees expressed their support to the talks on unconditional cessation of hostilities.
They further stated that their status as detainees should not be an impediment to reaching an agreement on cessation of hostilities.
The Mediation Team is chaired by Ambassador Seyoum Mesfin and consists of IGAD Special Envoys Gen. Lazaro Sumbeiywo and Gen. Mohammed Ahmed Moustafa El Dabi alongside the IGAD Executive Secretary Ambassador (Eng.) Mahboub Maalim.
Direct negotiation between the Parties is continuing in Addis Ababa in good spirit.

http://www.waltainfo.com/index.php/editors-pick/11964-igad-mediation-team-says-there-is-major-progress-on-cessation-of-hostilities-

.

Premier African Minerals Says Exploration Programme In Ethiopia Complete

.

Vibrant, growing and on the radar of many top executives – Ethiopia has come a long way. Zemedeneh Negatu, Managing Partner EY Ethiopia and Head of Transaction Advisory Services, explains what’s happened. 

.

A few weeks ago, in New York City, Ethiopia’s Prime Minister Hailemariam Desalegn gave a presentation to a group of senior business leaders about the investment opportunities in his country.

The audience included the CEO of one of the world’s largest hotel groups, the COO of a ‘Fortune 500’ industrial enterprise famous for its construction tools and several other executives including private equity fund managers.

Ethiopia has indeed come a long way in getting the attention of sophisticated global investors. Attendance at similar road show presentations in Paris, Seoul and Tokyo, earlier this year was just as impressive: in Tokyo, there were over 400 people.

So how did Ethiopia get to this point where global investors are starting to consider it as an attractive investment destination and even President Obama has included it in his $7 billion Power Africa initiative?

It’s because Ethiopia’s economy has averaged 10.6% annual growth between 2004 and 2011 according to a recent World Bank report. The economy has tripled since 2000 and is ranked amongst the fastest growing in the world. Its $103 billion GDP is the fourth largest in Sub-Saharan Africa and is 25% bigger than Kenya’s.

But for many analysts Ethiopia’s ascendance is best illustrated by the country’s ambitious 6,000 MW $5 billion hydro power dam under construction on the River Nile. The dam, which is the largest in Africa and fully financed by the Ethiopians themselves, is a point of great pride for its people and the political leadership.

Foreign Direct Investment (FDI)

For global investors seeking a rapidly expanding and potentially large market, the Ethiopian growth story, with a GDP EY forecasts at more than $400 billion by 2025 thus becoming the third largest in Africa, should stand out.

Ethiopia offers growth opportunities in manufacturing, infrastructure, natural resources and most importantly, agriculture. One measure of investor sentiment about Ethiopia is the result from EY’s recent Africa attractiveness survey which has rated the country as a moderate risk with high opportunity ranked at number four in Sub-Saharan Africa.

Our research and on the ground experience suggest that FDI into Ethiopia reached an estimated $1 billion in 2012, the highest figure ever, anchored by two Investments totaling over $415 million by global drinks giants Diageo of the UK, where EY was the M&A advisor, and Heineken.

Over the next three years, our FDI estimate is $1.5 billion annually in sectors allowed for foreigners. We expect significant investments from China, the other BRICS, Middle East as well as an increasing flow from the developed economies including the US.

In the next few years, EY expects significant additional FDI in the promising oil and gas sectors which the UK’s Tullow Oil is leading working with Marathon Oil of the US. Furthermore, one of the largest Wall Street private equity funds recently announced that it has committed $600 million for oil and gas investments focused on Ethiopia and a few other Eastern African countries.

Foreign investors, however, should note that two of the most attractive and extremely profitable sectors– financial services, where Ethiopian banks routinely pay out 40% annual dividends to local investors, and telecoms, which contributes $400 million annually to the State’s budget – are off limits for FDI and the government has publicly and firmly indicated that it does not plan to open up these sectors for many more years, perhaps not even by 2020.

But with Ethiopia’s expected membership in the WTO in 2015, many international investors have expressed hope that they will be allowed to invest in these key sectors sooner. Already, some of the world’s biggest telecom operators such as Vodacom of South Africa majority owned by Vodaphone of the UK have opened offices in Ethiopia to provide so called value-added services, while waiting for the sector to fully liberalize.

A number of international banks, such as the Pan-African Ecobank and the biggest financial institution on the continent, Standard Bank of South Africa, 20% owned by the Chinese, have announced that they are setting up representative offices, apparently as a first step.

Growth Drivers

Two key drivers of Ethiopia’s economic growth which will be attractive to global investors are urbanization and demographics. Anyone who has visited the Ethiopian capital Addis Ababa will notice that the city is one giant construction site. This includes the 34km, $400 million modern light rail under construction.

Throughout the city thousands of affordable apartments are being built close to a modern six-lane ring road. Addis Ababa is forecast to have over 6 million inhabitants by 2025. There are similar scenes in several other new urban centers, albeit on a smaller scale. If current trends continue, Ethiopia will be one of the fastest urbanizing countries in Africa over the next 20 years.

The other major growth driver is Ethiopia’s demographic advantage: its large young population whose median age is around 20. As happened in China and India, Ethiopia has the potential to deploy millions of young people at a lower cost even compared to Chinese wages. For instance, manufacturing wages average about $80 per month in Ethiopia compared to more than $550 in China. Ethiopia’s economic transformation is based on the country becoming one of Africa’s leading manufacturing hubs and a top exporter of value added goods.

Conclusion

Ethiopia is one of the last big untapped African markets. And despite the challenges the country will face as it transitions from a completely bankrupt socialist economy just over 20 years ago to a middle income capitalist economy by 2025, I am realistically optimistic and positive about its prospects. I also firmly believe that investors who come early, with a glass half full perspective will enhance their chances of success in a country which only now is receiving attention from global investors.

[Acquisition International /December 2013]

Sourced here:    http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=4703:ethiopia-the-last-big-untapped-african-market&catid=74:top-story

.

Related stories:

.

*     Ethiopia, India come up roses as Kenya’s flower sector goes to seed

*     Africa’s 5 Best Performing Economies 2013

*     Ethiopia’s Course of Development in the Eyes of Mark Lowcock

*     Agribusiness Set To Boom Across Africa – DHL MD

*     Report highlights 2014 trends in mergers and acquisitions

*     Ethiopia – Sudan Bilateral Relations: A Model For Regional Integration

*     Chinese company steps up investment to create more than 100,000 jobs in Ethiopia

*     FACES OF Negotiation

*     Ethiopia hailed as ‘African lion’ with fastest creation of millionaires

*     Meeting the local one Ethiopia’s electric power supply could address the demand of neighbouring countries too

BY Kate Douglas  –  08 January 2014

Africa’s smallscale farmers face a number of challenges which can affect both the quality and quantity of their output. For agribusinesses sourcing produce from them, this can negatively impact their business.

Divine Masters in Uganda works with out-grower farmer families to produce soya beans, maize and rice.

To overcome these challenges, agribusinesses need to improve their engagement with smallscale farmers along the value chain. Here are three examples of African agribusiness companies which have implemented ways of overcoming the challenges of sourcing produce from smallholders and ensuring steady supply.

Divine Masters in Uganda: managing 12,000 smallholders

Divine Masters is a Uganda-based business involved in the production and trade of soya beans, maize and rice. Started in 2007 by entrepreneur Orisa Raphael Jawino to supply the demand for soya in the region, Divine Masters works with about 12,000 out-grower farmer families in addition to managing its own farms.

Managing so many farmers does come with challenges, but Divine Masters has tackled some of these issues by organising its farmers into 300 groups, consisting of between 30 and 500 farmers per group.

“These farmers operate in a cooperative manner where they have their own leadership structures; they elect their own committee members who guide or lead their operations,” Jawino told How we made it in Africa last year.

“Now Divine Masters operates or works directly with these elected leaders of the group, and any services – for instance inputs or credit facility that [have] to be extended to these farmers – I extend it through the group leadership, who is also responsible for ensuring that these services trickle down to the farmers. In the same way, when it comes to the collection of the grains and also the recovery of whatever inputs that were given or credit facility extended to them, we also get it through the group leaders.”

AACE Foods in Nigeria: solving communication and payment challenges

AACE Foods is a Nigerian startup agroprocessing company which processes and packages nutritious food made from fruits, herbs and vegetables sourced from smallholder farmers in northern Nigeria.

According to a report by the United Nation’s Food and Agriculture Organisation (FAO), Rebuilding West Africa’s food potential, the company has faced a number of challenges sourcing its raw materials.

For example, cellular phone connectivity remains poor in many rural areas in Nigeria, making communication difficult with smallholder farmers. Even when connectivity is available, power supply is unreliable in Nigeria and farmers sometimes cannot charge their phones.

To overcome the challenge, AACE Foods developed a working relationship with organisations in the region that support these farmer clusters and can physically relay information about orders, pricing and payments to farmers.

AACE Foods also found that many of their smallholder farmers do not have bank accounts and prefer to be paid in cash on collection of their produce.

“Working with AACE Foods, which has a policy of paying 50% up front and providing the balance upon delivery in Lagos (which typically occurs three to seven days after the first payment), proved difficult at first, because of the significant distrust that exists between smallholders and agroprocessors,” stated the FAO report.

To overcome this, a bank account could be opened for each farmer cluster where a group leader receives payments on behalf of the cluster and then distributes the funds to the smallholder members.

La Laiterie du Berger in Senegal: improving milk supply

Senegal is highly dependent on food imports and, according to the research by FAO, 90% of the milk being traded is imported, mainly as powdered milk.

La Laiterie du Berger, established in 2006, supplies locally produced milk and milk products (such as yogurt and cream). The company’s main factory is at Richard Toll, roughly 400km from Senegal’s commercial and administrative hub Dakar.

High costs for transporting milk is a challenge for both milk producers and la Laiterie du Berger, especially considering the distance between milk producers and factories and the need for daily collection to keep milk fresh. The company has set up a system of collections circuits where drivers in each circuit pick up and drop off fresh milk in collection rounds.

“The milk collection system has effectively reduced the amount of spoilt milk received at the factory,” stated the FAO research.

La Laiterie du Berger also provides a variety of services to its milk producers and breeders to ensure it has a steady supply of quality milk, and assists milk producers with increasing their production. These services include the delivery of fodder, veterinary consultations and feeding and milk-related hygiene advice. The company also allows group purchases and distribution of animal feed.

Sourced here: 

http://www.howwemadeitinafrica.com/how-three-agribusinesses-have-improved-their-engagement-with-smallholders/33903/

.

Related ….

.

*     Africa’s quiet agricultural revolution

*     04 January 2014 Agri-News Update

*     African agriculture needs trade not aid

*     More money needed for Africa’s agriculture sector

*     Multinationals carving up Africa for food

*     Feeding population vs market integration

*     Input supply critical to enhancing agricultural productivity

*     Agribusiness Set To Boom Across Africa – DHL MD

*     Is There Such a Thing as Agro-Imperialism?

*     Preserving indigenous seeds – Maintaining biodiversity

*     Cultivate – Food and Agribusiness newsletter

Helen Hai is known for her contribution in setting up the famous Huajian shoemaker here. The manufacturer has become a major exporter of shoes in Ethiopia in just about two years.

Huajian was personally invited by the late Prime Minister Meles Zenawi to come to Ethiopia. Within a few months, the manufacturer launched production and started exporting brand shoes made in Ethiopia.  

After looking at what she achieved, the government hired her to advise the Ministry of Industry by prompting Ethiopia for investment opportunities, and report to Prime Minister Hailemariam Desalegn. 

Currently, as part of her advisory job in investment promotion areas, Hai is working on Bole Lemmi and Killinto industrial zones which are under construction on the outskirts of Addis Ababa. These projects are part of the government’s Growth and Transformation Plan (GTP). Three years since its inception, the GTP is said to have failed to achieve its targets. However, Hai says that the government is on the right track. Birhanu Fikade of The Reporter sat down with Helen Hai to talk about issues that matter to the industry sector.

Excerpts: 

The Reporter: Tell us about what you are doing with the government of Ethiopia at the moment. 

Helen Hai:   As you may know, previously, I was the vice president of Huajian and managed to set up the manufacturing plant here. Currently, one of the things Ethiopia plans to achieve is having a double digit GDP growth. That is very important. It’s very important for this country to have hundreds and thousands of companies like Huajian. In my two years of experience people in the government noticed my expertise and I was hired as investment promotion advisor to support the government in the direction of industrialization and in the process of achieving the economic growth of the country. One of the tasks I am working on is supporting the development of Bole Lemmi and Killineto industrial zones. These projects are run with the supports of the World Bank. From my point of view, Ethiopia has a great potential for becoming an industrialized nation.

In what ways can that be done? 

First let me tell you about industrialization. If you look at labor-intensive manufacturing like shoemaking, for instance, it first started in Europe. Then it went to the US and then to Korea and Japan. That experience further expanded to Hong Kong and Taiwan. Twenty years ago, Chinese industries had no idea of shoemaking and producing garments for the international market. It was actually manufacturers from Hong Kong and Taiwan that went to China to teach the Chinese how to make that happen. So China has enjoyed the twenty years of a golden time of manufacturing. But today the rising of labor cost is a big challenge China is facing. China is facing the same struggle like Japan, Korea, Europe and the US. We call the situation industrial upgrading. Having the industrial upgrading from China’s perspective is a process of moving up the supply chain, moving up into the more value-added part. Another way of continuation of the existing manufacturing sector is going to places or countries where the cost of labor is relatively low. This is a global trend of shifting the manufacturing sector to places of cheaper cost in the labor market.

Justin Lin, the former Chinese chief economist at the World Bank, called the process the relocation of labor intensive manufacturing sector…

Justin Lin captured it very well. Actually, this process started in China some ten years ago. The first shift has been towards the South East Asian countries. Vietnam and Cambodia were the target countries for relocating Chinese manufacturing companies. Proximity also matters. However, the rate of increase of the labor cost was even higher than what it was in China. They do have a limited population but more manufacturing companies are coming in. The increasing speed in labor cost in those countries forced companies to look to other places. If you look at the globe, Africa is endowed with plenty of resources. And one of those resources is the competitive labor. There is a big potential for Africa to build on the future in becoming a manufacturing place. The way I see it, for Africa to become the future of manufacturing base, three components are very important. The first is to look at the supply chain. Why do they want to come here? If we want to have effective manufacturing base, there must be the plant, the wholesaler and the retailer in the supply chain. These are very essential components. The Chinese manufacturers want to come to Africa because it is cheaper for them to produce here. For instance, competitive labor and cheaper electricity and other cost advantages are some of the pulling factors. Before I created Huajian here, everybody was saying that Ethiopia is not a place for such company because of poor logistics the country has. I argued that, of course, logistics is an issue but we have to look at the bigger picture. In China the logistics costs only two percent. So after coming down here, I was exporting 12 containers of goods to the US every month. In order to export those 12 containers, I have to import some eight containers of products from China. Hence, for my operations in Ethiopia, I have to pay 8 percent additional cost than I used to pay in China as overall cost. So from my cost perspective, here it rises from 2 percent to 8 percent. I have to pay 6 percent more than I need to pay in China. But if you look at the labor cost, in China it is about 22 percent. Each labor is paid some USD 500 on average. Here it is only USD 50. If an Ethiopian employee can produce with the same efficiency as his Chinese counterpart, it means that the manufacturer saves a huge cost from 22 percent down to 2.2 percent. But people question the efficiency of Ethiopian labor force. From experience I can say that I can get some 70 percent of efficiency if I give them a one-year training.  So even if I pay high amount for the logistics I can save a lot more from labor. That is the reason why many manufacturers are coming in after calculating the details of the costs. The other thing is that Ethiopia is not a mature market like Korea or China. It’s at its early stage of development. But there are ways an investor can become profitable in Ethiopia and this is what I would like to communicate with the potential investors who might need to come here. It’s my experience with Huajian Company here. I was able to create some 2,000 jobs in just about a year.

Do you have other alternatives for the manufacturing sector here appear more appealing?

What we have talked about is just one part of the story. We have to look at the next part because factories like Huajian do not own the brands they produce. For instance, they manufacture shoes based on the orders they receive from the traders. Today most of the traders based in the US and Europe are providing incentives to the relocating companies from China to Ethiopia. The reason is very simple. The tariff incentive and other treaties make things work for Ethiopia. The African Growth and Opportunity Act (AGOA) and Everything But Arms (EBA) are some of the zero tariff incentives provided to African countries by the US and European Union. Shoemakers and garment manufacturers in China are obliged to pay ten to 17 percent of import duties when they export to the US and Europe. But export tariff is zero here to those countries. The other important part of the story is the coming of retailers. We are talking about Walmart, Tesco, H and M and MaxSpenser. They give incentives to shift to the manufacturing sector. Before the financial crisis, all the retailers in Europe had the 20/80 purchasing strategy. It means that the 20 percent is being purchased from Europe. The remaining 80 percent is from the Far East and that is known as the 20/80 strategy. However, during the crisis, the purchasing power of the people in Europe has been sharply reduced. The shelf time of consumer product was some six weeks. After six weeks new products are put on the shelf. That trend has been changing during the financial crisis. They could not sell.  Piles of containers were everywhere. What the retailers have to do was to rediscount the new products they put on the shelf. That situation made them to rethink. It is why the famous retailers like H and M are coming here to look at the future manufacturing base. It has been eight month since H and M started sending a team here to place orders. Tesco, Walmart and MaxSpenser are all coming here. Africa is considered as the future frontier for manufacturing. It is not only from the geographic point of view, the rich resources, cheap cost and most valuably, the willingness of governments here are some of the advantages. I think Ethiopia has a great opportunity to become a leader in this whole chapter. The next phase, which is going to be something extra, is what we call the global development in Africa. This means the Chinese know-how combined with the European market and the local competitive resource in Africa will witness a shift in the paradigm. It is with this attention that some 100 Chinese companies were in the Addis Ababa to understand the market. They are changing their perceptions towards Africa.

I believe you are familiar with the government’s growth and development blueprint – the Growth and Transformation Plan. Some say the plan is not achieving the desired results …

There is an expression in English: aiming high. You have to aim high in order to reach there. I see GTP as a gradual process. But I have also a great confidence with the Ethiopian government. In China we say that we have to cross the river by touching the stones. That is the expression we use for development we have achieved. However, you cannot achieve everything because you have a plan. As long as the plan is taking you in the right direction, I think that is fine. From a foreigner’s perspective and someone from China, I have observed that the government of Ethiopia is on the right track. For me that matters most. I don’t think we should judge the government by looking at the figures and what the plan says about five or ten years. The important issue I think we should focus on is that things are going in the right direction.

The late Prime Minister Meles Zenawi is said to be the one who invited Huajian and other big Chinese companies here. You have said that relocation has been taking place for some ten years in China.  If that is the case, why aren’t many companies coming here? 

How to attract investment is the crucial point to consider. One way of attracting investment is by creating quick and successful examples. I think the case of Huajian is worth mentioning. This happened in just about two years. The reason I am doing what I am doing now is that I was deeply touched by the willingness of the current PM and his desire to attract FDI in order to create more jobs and increase exports. Once, I was travelling with him on a plane and that gave me an opportunity to understand that he is more than willing to attract foreign investments to Ethiopian even more than his predecessor. He is also working a great deal to support good investment in the country. Justin Lin used to advice the late prime minister on matters related to manufacturing. The current prime minister is also exchanging letters with Lin and Lin is extremely impressed with the current prime minister’s leadership and willingness to develop industrialization. One of the things I am going to do is supporting both leaders in bringing in more labor-intensive manufacturing companies. My role in the past was setting up Huajian and hoping for hundreds more to come. I believe that was a success and I am working to achieve that. There is a Chinese saying that goes like this: it takes longer time for you to accumulate and have a certain beauty. It is a process of accumulation. You have to have the patience to wait for the flower to blossom. You cannot expect from day one to suddenly see a flower fully grown. You need to have some time for new trade frontiers. I see the current prime minister willing more than the late Meles Zenawi in his leadership by absorbing more foreign companies. He is working on the next stage upon the legacies of the late prime minister.

So you are arguing that the ambitious GTP will not remain to be as ambitious as it is?

I don’t want to comment on numbers. What I want to say is that I have great confidence in this government achieving the GTP through time and I want to be part of a team to support the government to achieve that goal because Ethiopia is leading a new chapter in Africa.

Sourced here:  http://www.thereporterethiopia.com/index.php/interview/item/1472-gtp-at-the-crossroads-achieving-targets-and-seizing-opportunities

.

Related

.

-     Ethiopia: The Last Big Untapped African Market

-     Ethiopia’s model families hailed as agents of social transformation

-     Ethiopia, India come up roses as Kenya’s flower sector goes to seed

-     Chinese company steps up investment to create more than 100,000 jobs in Ethiopia

-     An African Manufacturer? Ethiopia Gears Up To Emulate China, Vietnam And South Korea In Factory Output

-     The Manufacturing Sector: mature enough to compete internationally

-     China to look towards Africa for food items

-     Ethiopia – Next Stop for Textile Industry?

-     50 Turkish textile factories to relocate in Ethiopia

-     World Bank sees China, Ethiopia as good fit

-     Leather leads manufacturing

-     Agriculture and manufacturing offer opportunities for African trade

Tullow to start mobilization to Chew Bahir  

Tullow will soon drill the Shimela well

The British Oil company that is prospecting for oil in Southern Ethiopia, Tullow Oil, is to start mobilization to Chew Bahir basin at the end of this month. 

Tullow’s drilling expedition drilled two exploration wells – Sabissa-1 and Tultule-1 – in the South Omo basin without much success. Now the drilling crew will soon start mobilization to Chew Bahir where they will drill the third well.

Tullow’s senior corporate affairs advisor, Sisay Zerihun, told The Reporter that the drilling crew will start mobilization to Chew Bahir at the end of this month. The well will be drilled in a locality called Shimela, some 600 kms south of Addis Ababa.

Sisay said access road and other facilities are being built adding that the drilling work will commence exploration in the second quarter of 2014.

“When we reported that Tultule-1 well will be abandoned as a dry well some people thought that we relinquished the whole block but that is not the case. We abandoned the well not the block,” Sisay said. Speaking of the expected result of Shimela well Sisay said, “You can not tell anything unless you drill and see what is in there.”

The South Omo Block is located in the northern portion of the Tertiary East African Rift trend where Tullow Oil and its partners have made five significant oil discoveries in Northern Kenya. The Company and its partners on the South Omo Block spudded the Sabissa-1 well in January 2013 and the well was drilled to a preliminary total depth of 1,810 meters. Hydrocarbon indications in sands beneath a thick claystone top seal have been recorded while drilling, but hole instability issues required the drilling of a sidetrack to comprehensively log and sample these zones of interest. The sidetrack was drilled to a total depth of 2,082 meters.

The well encountered reservoir quality sands, oil shows and heavy gas shows indicating an oil prone source rock and thick shale section which should provide a good seals for the numerous fault bounded traps identified in the basin. Only the lowermost sands appeared to be in trapping configuration at Sabissa-1. Based on the encouragement of the results of this well, the Company decided to drill the nearby Tultule prospect, which appears to be a horst-block structure four kilometers to the east of Sabisa-1. Unfortunately, the Tultule-1 well turned out to be dry and was abandoned.

The Company and its partners have completed a 1,174 kilometer 2D seismic program in the Chew Bahir Basin on the eastern portion of the South Omo Block.

This survey has identified a number of prospects and leads. The Shimela prospect has been identified as the first well in the area and is expected to spud in 2014. A second well location is also being considered for 2014.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1480-tullow-to-start-mobilization-to-chew-bahir

.

Japan’s ‘top salesman’ Abe in town      

    

  

Japan’s Prime Minister Shinzo Abe and Ethiopia’s Prime Minister Hailemariam Desalegn in June 2013         

             

- Scheduled to meet the Abebe Bikila’s family

Japanese Prime Minister Shinzo Abe is set to visit Ethiopia on Monday (13th) for a two-day visit.

According to information The Reporter has received from the Ministry of Foreign Affairs (MoFA), the Prime Minister is scheduled to visit the long-standing Japanese Garden in the national palace on Monday, where he will have a brief chat with President Mulatu Teshome (Ph.D.). The PM will also meet with his Ethiopian counterpart, Prime Minister Hailemariam Desalegn, for bilateral talks and the signing of an air service agreement.

The last visit by a Japanese leader to Africa took place in 2006, when then-Prime Minister Junichiro Koizumi traveled to Ethiopia and Ghana.

On his second day in Ethiopia Prime Minister Abe is expected to address the African Union on policy issues. Unconfirmed reports suggest that one of the topics Abe will discuss with Nkosazana Dlamini-Zuma (Ph.D.), chairperson of the African Union Commission, is regarding the crisis in South Sudan.

Japan has been keen to assist the newborn and war-torn South Sudan ever since its independence from Sudan.

Apart from Ethiopia, Abe is also scheduled to visit Mozambique, where Japan has major natural-resource projects under way. The tour will then take Abe on to West Africa.

Abe is well known for “Abenomics” (a portmanteau of Abe and economics), which refers to his bold economic policies. Abenomics was the famous term coined after the Prime Minister introduced a plan in Japan to drastically increase government spending to stimulate the fiscal structure of the government, which although risky led to the country halting deflation (a total decrease in a price of goods and services) after a decade of struggle. Abenomics also looked at the way the central bank of Japan had been operating, and in order to regulate the status of deflation it was necessary for Abe to introduce monetary stimulus packages. The prime objective of the monetary policy designed in Abenomics aims to reduce the real interest rates, which economists tone-down for its negative impact in weakening the Yen.

The Prime Minister’s move to stimulate the economy both in the fiscal and monetary arenas opened the way for critics, while some commentators labeled the plan as the biggest economics experiment the modern world has ever witnessed. Prime Minister Abe also wished to kick start the fiscal policy of Japan in a way aimed at energizing economic growth through increased government consumption and public investment. He has already authorized the introduction of some USD 60 billion (5.3 trillion Yen) in public works spending in line with the 2013 budget. Yet the Abenomic policies remain delicate and open to fierce criticism.

In related news, Prime Minister Abe is poised to pay a visit to the family of Abebe Bikila, the legendary Ethiopian long-distance runner who claimed gold in the marathon at the 1964 Tokyo Olympics. Abebe won in a world record at the time, and is well remembered for his spectacular appearance at the summer games. His biography states that 40 days prior to the 1964 Olympics Abebe was struck down by pain during a training run near Addis. Not knowing the cause he tolerated the discomfort before collapsing. After being rushed to hospital Abebe was diagnosed with acute appendicitis and forced to undergo an operation. Soon after – even in his recovery time – he was jogging in the hospital yard at night.

Prime Minister Abe is the first high-level official to visit Abebe’s family, and it is already being seen as a highly symbolic tribute.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1485-japans-top-salesman-abe-in-town

.

Chinese minister pledges support during official visit

  

  Wang Yi and Tedros Adhanom (Ph.D.)

The Chinese foreign minister Wang Yi started his official African visit in Ethiopia last Monday, before moving on to Djibouti, Ghana and Senegal.

The minister held talks with his Ethiopian counterpart, Tedros Adhanom (Ph.D.), in Addis Ababa on Monday as part of his tour of sub-Saharan Africa, and went on to visit the headquarters of the African Union (AU).

Chinese support to the AU and Ethiopia will continue, the minister confirmed, adding that China will extend technical support for the AU headquarter building until 2016.

The two foreign ministers discussed ways of strengthening bilateral relations between the two countries, and also issues relating to peace and security in the region. Wang appreciated Ethiopia’s role in ensuring peace on the African continent. He said the Chinese government is committed to supporting all the efforts to resolve the current crisis in South Sudan.

Tedros stated that the relationship between China and Ethiopia is based on the South–South cooperation, and Chinese assistance is based on projects prioritized by the Ethiopian government.

Major development schemes are being carried out with support from China, which Tedros said has contributed to the successful implementation of Ethiopia’s Growth and Transformation Plan (GTP). He went on to highlight the support of the Chinese government in the economic integration of African countries.

The Chinese Foreign Minister also met and held talks in Addis with President Mulatu Teshome.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1476-chinese-minister-pledges-support-during-official-visit

.

 Universal approval greets new Minister of Mines

    

Tolossa Shagi Moti

Written by  Yonas Abiye                        

State minister of mines and former chief of the Ethiopian Geological Survey, Tolossa Shagi Moti, has been sworn in as the new Minister of Mines before the House of Peoples’ Representatives (HPR).

Upon the approval of the Council of Ministers, the Prime Minister presented Tolossa’s nomination for the House’s endorsement. He takes over from Sinknesh Ejigu, who resigned from her office last month and has reportedly been assigned to head Ethiopia’s diplomatic mission in one of the world’s emerging economies, Brazil. It would make Sinkensh the first Ethiopian ambassador to the South American nation.President of the Federal Supreme Court, Tegegn Meles, led the oath ceremony.

Before securing the endorsement Tolossa had served as the state minister of mines since 2011.

Government Whip of the House, Roman Gebreselassie, presented the credentials of the newly appointed minister, whose nomination was endorsed with an absolute majority vote.

After hearing Tolossa’s profile MPs praised the nominee during the discussion session.

According to the profile presented before the House, Tolossa has spent all his educational career and working experience in the geological and mining sectors.

He received his Bachelor of Science in geology from Addis Ababa University in 1982, and Master of Science in applied geology from the Indian Institute of Technology. Tolossa has also completed short-term training at home and abroad in various fields, including geo-science, management and mining resources development administration.

Unlike the conventional trend of the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF)-led government, Tolossa’s nomination gained acceptance because of his educational background and rich working experience, which directly fits the requirement.

From 1983 to 2010 he worked for the Ethiopian Geological Survey, starting as a junior geologist and working up to the post of director general. He also served as a senior geo-technique expert at the Ministry of Agriculture for six years.

For twenty years Tolossa acquired rich experience in the mining sector, notably as an expert in geological survey mapping, mining exploration and geo-technique investigation. The government has prioritized the mining sector as an area for development.

After the EPRDF assumed power in 1991, Ezedin Ali, a mining engineer, was appointed as what was then the Minister of Mines and Energy. After Ezedin none of the following incumbents heading the Ministry of Mines had direct qualifications that meet the technical nature of the mining sector. Ambassador Mahmud Drir was a political science and journalism graduate, while Alemayehu Tegenu and Sinknesh Ejigu were graduates of hydrology and chemistry respectively.

Meanwhile, sources told The Reporter that the newly appointed minister is expected to face “serious” challenges with regards to high staff turnover. However, they indicated that Tolossa’s appointment is expected to be warmly received by the employees, as he knows the sector well and has a strong educational background.

The source also revealed that most experts have left the ministry for private mining companies in search of better pay.

Ed.’s Note: Kaleyesus Bekele has contributed to this story.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1482-universal-approval-greets-new-minister-of-mines

.

Former regional president gets 7 years for corruption

  

Yaregal Ayesheshum

By Bezawit Zegeye

Yaregal Ayesheshum, former president of the Benishangul Gumuz Regional State, was sentenced on Friday to seven years in prison and fined 20,000 birr at the Federal High Court 15th criminal bench in Lideta.  

Yaregal and his associates were handed sentences varying from six to 15 years, with fines ranging from 20,000 to 60,000 birr.

The charges brought against Yaregal and the other defendants by prosecutors of the Federal Ethics and Anti-Corruption Commission (FEACC) include abuse of power and corruption, and using their power to gain personal profit. The accusations were leveled two years ago and they were eventually found guilty on Nov 20, 2013, after a lengthy court case.

After the verdict prosecutors of the FEACC argued for aggravating circumstances, while the accused pleaded to the court for favorable terms. After hearing both sides the 15th criminal bench passed the sentences. The former president of Benishangul Gumuz was found guilty on the charge of abuse of power and corruption, which the FEACC had proved without doubt.

The second defendant, Habtamu Hika, the former speaker of the Benishangul Gumuz Regional State council, was found guilty on three counts and sentenced to 15 years imprisonment, coupled with a 45,000 birr fine.

Assefa Gebeyehu, the third defendant, was also found guilty on three counts, and he received a 15 year jail term and 60,000 birr fine. In addition the 15th criminal bench found Gedion Demeke, owner of Gedion Demeke Consultancy, guilty and sentenced him to 14 years imprisonment together with a 60,000 birr fine. The court also sentenced Gezahegn Adregneh, manager of Gade Construction, and Mekebeb Moges, manager of Alkan Construction, who were both found guilty on one count and given six year jail terms with fines of 25,000 birr each.

The FEACC failed in the case against the seventh defendant, Hailegabriel Hika, brother of Habtamu, who was acquitted by the court.

http://www.thereporterethiopia.com/index.php/news-headlines/item/1484-former-regional-president-gets-7-years-for-corruption

.

Ethiopia established WTO-TBT  National Enquiry Point

Ethiopia has established the WTO-TBT (Technical Barriers to Trade) National Enquiry Point under the Ethiopian Standards Authority, The Ethiopian Herald reported.

Establishment of central authorities, such the the National Enquiry Point, facilitating free trade is one of the prerequisites of joining the global trading body.

According to Geremew Ayalew, Trade Relations and Negotiations Director at the Ministry of Trade, the World Trade Organization’s principle of transparency requires the establishment of Enquiry Points and Notification Authorities (NA).

In addition to the Enquiry Point, Ethiopia would also establish Notification Authority under the Ministry of Trade in the future, Geremew said.

“The WTO-TBT and WTP SPS (Sanitary and Phytosanitary Measures) agreements are the key multilateral instruments put in place to deal with standards related non-tariff barriers to trade”, Dr. Oswald Chinyamakobvu, standards consultant said at a stakeholders meeting on the Enquiry Point yesterday.

Dr. Chinyamakobvu also said, the WTO-TBT agreement seeks to ensure that technical regulations and standards, as well as testing and certification procedure, do not create unnecessary trade barriers.

The National Enquiry Point will accept trade related queries from WTO member states about Ethiopia’s products. It will also provide local exporters with information relating to compliance requirements when exporting their products, according to Etsegenet Tasew, Acting Documentation and Publication officer of the Enquiry Point.

http://www.2merkato.com/news/alerts/2796-ethiopia-established-wto-tbt-national-enquiry-point

.

Diplomats, experts seek improved ties between Nigeria, Ethiopia

DIPLOMATS and experts in international relations from Nigeria and Ethiopia have jointly called for expanding of frontiers of cooperation between the governments, agencies and peoples of the two countries.

Underscoring the need for improved relations between the two countries, speakers during the signing of Memorandum of Understanding (MoU) between Nigerian Institute of International Affairs (NIIA) and Ethiopian International Institute for Peace and Development in Lagos on Tuesday called for strengthening of diplomatic cooperation to include economy, trade and investment, research and education, military as well as abolition of visa fees.

Speaking at the ceremony, Ambassador of Ethiopia to Nigeria, Abdo Alli, noted that the relations between Nigeria and his country are strategic and mutual since both countries enjoyed shared experience running into many decades.

Alli claimed that both countries are the two most populous nations in Africa with many ethnic nationalities and Federal system of government.

He also traced relations between the two nations to formation of Organisation of African Union (OAU), decolonisation of the continent, promotion of peace and security.

The envoy said he was equally looking forward to improved economic, investment and other relations between the two countries.

To show that the future is great, Alli mentioned the increase in cargo and passenger flights from Lagos and Abuja to Addis Ababa and from Addis Ababa back to the Nigerian capital and commercial centre.

He said more Nigerians are investing in Ethiopian economy while others are visiting in search of investment opportunities.

According to him, this would soon bring the chambers of commerce in the two countries together in order to promote trade and investments.

He also expressed his readiness to strengthen parliamentary ties, educational researches and bridge information gaps.

“We are in the right track and I hope we will in the future achieve more,” he said.

Responding Director-General of NIIA, Prof. Bola Akinterinwa, while tracing the processes leading to the event, thanked the envoy for bringing the two bodies together.

He hoped that the signing of the MoU would be the beginning of leading the way for other African countries to move away from dependency on developed countries improve people-to-people and government-to-government cooperation.

He also promised that the MoU would not gather dusts but work effectively and efficiently as aspired by the two research institutes.

But the Executive Director, Ethiopian International Institute for Peace and Development, Mr. Sebehat Negga, in his remark, blamed African elites for the problems bedeviling the continent.

Saying that Africa should not blame developed countries for its problems, he reasoned that most of the elites were mystified after independence and abandoned the needs of their people.

He lamented that Africa is appealing to China to come to Africa “and not China begging Africa to come to China.”

“If Africa is to reshape itself, overcome its problems, we have to do our homework, cooperate on equal basis, according to each others’ values,” Negga said.

Meanwhile, A professor of International Law, Akin Oyebode, at the event, appealed to Ethiopia and Nigeria to abolish visa fees.

Oyebode reasoned that the time has come for Africa to stop going about begging developed countries for help.

He took an exemption to China building and equipping a secretariat for African Union (AU). According to him, Nigeria alone can build such a secretariat for AU.

He hoped the MoU would work to facilitate the strengthening of research cooperation between the two institutes.

A retired Nigerian ambassador, Tayo Akinsulire, also supported Oyebode in this regard, calling for increase in frontiers of cooperation.

http://manchesterwww.ngrguardiannews.com/index.php/news/world-news/142973-diplomats-experts-seek-improved-ties-between-nigeria-ethiopia

.

Africa’s Economic Blocs Set To Tackle Trade Barriers

VENTURES AFRICA – In a move that that could eradicate trade barriers and bolster earnings of each partaking country, three African economic blocs are set to form a larger economic market which will include 26 countries in Eastern and Southern Africa, it emerged this week.

“Considerable progress has been made and negotiations have intensified to ensure that we clinch the Tripartite Free Trade Agreement (TFTA) by June 2014,” Dr Richard Sezibera, the chair of the Tripartite Task Force, was quoted as saying on AllAfrica.com.

He said the last three-way gathering was held late last year in Arusha, Tanzania.

The TFTA is a free trade treaty signed by three African economic communities, which include COMESA, EAC and SADC. It has a total of 600 million people and a $1 trillion GDP.

It is believed that COMESA, EAC and SADC would form the single free trade area in the next two years to bolster intra-regional trade.

According to economic experts, it could quicken the regions’ economic growth.

This agreement could also develop the region’s infrastructure which could also boost the economies of individual countries.

It is understood that elimination of trade walls such as import and export fees would permit countries to improve their revenues and enter new markets while paying towards their national advancement.

http://www.ventures-africa.com/2014/01/africas-economic-blocs-set-to-tackle-trade-barriers/

.

Ethiopian Consul General in Guangzhou meets with official of the Province

Melaku Legesse met with Chen Yuehua, Deputy Director General of The Department of Foreign Trade and Economic Cooperation of Guangdong Province, on January 8, 2014 and discussed on issues of mutual importance. 

Chen briefed the Consul on the economic performance of Guangdong province and achievements in different economic sectors particularly in trade and in attracting FDI.

Chen noted with satisfaction that the annual export of the province has exceeded a trillion USD last year.

Melaku explained the economic transformation taking place in Ethiopia and the progress on the implementation of the Growth and Transformation Plan of the Ethiopian Government.
The Consul expressed gratitude for the continued support of the Department of Foreign Trade and Economic Cooperation of Guangdong Province and reiterated his confidence that the cooperation with the Department will continue to be further strengthened particularly in encouraging Chinese businessmen and companies to invest in Ethiopia.

Chen assured the Consul that the cooperation will continue to strengthen and expand.

Melaku Legesse has resumed his duties as the Consul General of the Federal Democratic Republic of Ethiopia in Guangzhou in December 2013.

http://www.waltainfo.com/index.php/explore/11984–ethiopian-consul-general-in-guangzhou-meets-with-official-of-the-province

.

Arjo-Didesa irrigation project -  Will it escape the summer rain?

 The Arjo-Didesa dam under construction

“The dry season in this area lasts only up to four months. Considering the fact that the rainy season is drawing nearer, our construction work is lagging behind schedule. Therefore, we need to compensate for the time wasted so far by increasing our efforts at least by three fold; otherwise, it will be almost impossible for us to finish the work according to schedule,” said an expert during the visit of Arjo Didesa sugar development project last week expressing his concern over the delay in the construction work of the dam.

He added, “If we cannot work hard to finish the water bed of the dam and divert the river in the coming four months, the summer rain will demolish all our efforts.”

The expert told the visiting delegation that if major construction works of the dam could not be completed before the onset of the rainy season damages would be high. The expert also urged all working force on the project to demonstrate commitment and give due attention to the project so that the basic construction work would be completed in four to five months period.

So far the excavation work on the right and left side of the dam has been completed. The project is also expected to start constructing the water bed of the dam soon. Oromia Water Works Bureau is in charge of managing the project, while a Chinese Constructor is undertaking the construction work.

The construction work involves digging the ground on which the water lies 40 meters deep, and blocking any possible leakage of underground water to the upper surface of the dam’s water bed. Preventing the underground water leakage to the dam surface is very difficult and it requires building a thick concrete bed which is critical for the strength of the dam.

Among the various activities to be accomplished before the onset of the summer season include, building the water bed and 22-meter long channel which will enable to reduce the volume of water while constructing the main dam as well as laying down a concrete canal that transport the diverted water. Arjo Didesa Suger cane Irrigation Development project is one of the projects set to meet the goal in the sugar industry development.

The construction of this dam is, however, is lagging behind compared to that of any other government sugar development projects in the country.

During the visit it was observed that the workers were putting every effort to complete the major construction work before the coming rainy season interrupts it. Unless the dam is completed before the onset of the rainy season damages will be high as a result of the rain. Addis Zemen asked the experts what caused the delay of the construction work over the past two years.

According to the Expert, the western part of Ethiopia receives a longer period of rainy season than any other part of the country, which is one factor that contributed to the delay of construction. Construction work was scheduled to be launched last September but for the rainy season lasted until the month of November, it was not convenient to undertake construction work. The experts also pointed out that the delay in budget allocation by the Ministry of Finance and Economic Development also contributed to the delay in the construction work.

Moreover, shortage of experts and machinery were also among the factors that held back the pace of the construction work particularly in the early days of the project.

As experts explained during the visit to the project, now the project implementers plan to increase the construction work threefold in order to make up for the time wasted in the past. If construction work is to take place at the stated magnitude, it will be possible to complete 80 per cent of the entire project work before the rainy season.

The Didesa Arjo project will have a total of four main dams. When it is completed, the project will become one of the few Mega Sugar projects in country. Out of the 80 thousand hectare of land planned to be irrigated by the end of the project, around 50 thousand hectare will be utilized for sugarcane plantation.

Meanwhile the remaining 30 per cent of the land will be irrigated by farmers in the surrounding areas. According to the project manager, Mengestu Mekuria, although the construction of the dam which was launched in early 2003, only 15 per cent of the construction work has so far been completed.

The manager also noted that the performance of the construction work was by far better this year compared to that of the previous years.

For the project to be realized based on schedule, contractors, consultants and other stakeholders will have to work hard in collaboration. At present there is no significant shortage of skilled man power and machinery, according to the project manger. “There is no problem in terms of skilled man power, however, the site is not suitable for construction work, ”said Mengestu.

He further said Didesa river is a big river that the volume of water could cover the whole surrounding environment of the project during the summer season. The manager also indicated that the project has enough machinery that can meet the existing project requirements.

The project activities are being supervised by the Natural Resource Development and Environmental Affairs standing committee of the House of People Representatives.

Deputy Chairperson of the standing committee, Dr. Gemechu Dinagde said the project was being implemented at a faster pace when compared with that of previous years. “We have seen many improvements signaling changes in the implementation of the project,” said Dr. Gemchu appreciating the commitment demonstrated by the employees in bringing such improvements.

The standing committee also evaluated the project performance so far which according to the chair showed commendable progress. The committee also evaluates all other sugar projects in the country.

In the last few years many dam projects in various parts of the country were alleged for delay in construction. Therefore, the standing committee’s recommendations were vital to the improvements in all the projects. To enable all the sugar projects to meet schedule set in the Growth and Transformation Plan, the close follow up and supervision of the standing committee will have a critical role.

One of the major challenges in the implementation of all mega sugar projects is the nature of environment. One of the issues committee assessed during the supervision is whether the project is environment friendly or not. The project should have little or no impact on the environment so that it won’t contradict the green development strategy set in GTP.

The Deputy Chair of the Standing Committee also noted that the Arjo Didesa Sugar development project will have a paramount significance to the surrounding community as the Didesa river crosses three Oromia zones. The standing committee does also evaluate whether the project is implemented in such a way that employment creation opportunity is well considered in the project.

Water Irrigation and Energy Minister, Alemayehu Tegenu on his part called for the participation of all actors to finish the project within the shortest time possible before the dry season ends. The Minister said the ministry is committed to provide support to the project as necessary.

The fact that Didesa river crosses Jima, Illibabur and eastern Wolega zones, gives an opportunity for the project to receive support from the federal and regional government as well as zonal administrations.

The Arjo Didesa dam will be 47 meters high and 502 meters wide. The volume of water in the dam is estimated to be around two billion cubic meters. The cost of the project is estimated to be 1.3 billion birr.

http://www.ethpress.gov.et/herald/index.php/herald/development/5552-arjo-didesa-irrigation-project-will-it-escape-the-summer-rain

.

Biodiversity panel gives indigenous knowledge core role

Indigenous and local knowledge is set to play a major role in biodiversity and ecosystem management, a meeting of an intergovernmental body has heard.

At its second meeting – held in Antalya in Turkey, last month (9-14 December) – the Intergovernmental Platform on Biodiversity & Ecosystem Services (IPBES) decided to extend its focused assessments of such knowledge over the full five years of its work programme.

In addition, the platform will provide funding and technical support to help integrate indigenous knowledge into the assessments.

IPBES was established in April 2012 with a mandate to assess the state of the world’s biodiversity and ecosystems, and help policymakers make well-informed decisions. A founding principle is to integrate indigenous and local knowledge into conservation processes.

“What has been done – and what is rather unique – is that IPBES decided at Antalya to firmly place indigenous and local knowledge within its work programme. And it has not been marginalised within it, but feeds into all the different components of the work programme,” says Douglas Nakashima, head of the Local and Indigenous Knowledge Systems programme at UNESCO (the UN Educational, Scientific and Cultural Organization).

Including indigenous and local knowledge holders in decision-making processes will ensure that those decisions are more appropriate for their communities and their sustainable use of resources, says Nakashima.

“If decisions about how biodiversity should be managed are in line with the aspirations, priorities and understanding of local communities, we would hope for an improved biodiversity management process,” he adds.

An ‘innovative endeavour’

Anne Larigauderie, head of the IPBES Secretariat, says that engaging indigenous communities early on so they can shape its work is an “innovative endeavour” that no organisation has attempted before.

“The Intergovernmental Panel on Climate Change did not do this, for example. Of course, in the case of biodiversity, indigenous and traditional knowledge is even more relevant because of the local dimensions,” she says.

At the Antalya meeting, IPBES also decided on two fast-track assessments to be completed this year. One will be on pollination and its relationship to food security, the other will review the tools available to predict future changes to biodiversity and ecosystem services based on various social and economic scenarios.

In addition, the indigenous people at the meeting formed a group called the International Indigenous Forum on Biodiversity and Ecosystem Services (IIFBES).

This new forum is intended to allow indigenous and local knowledge holders to coordinate contributions to the work programme by reaching out to existing organisations and facilitating access to IPBES structures and activities, says Joji Cariño, director of the Forest Peoples Programme, an NGO that advocates forest management based on indigenous knowledge.

“For example, the Indigenous Partnership for Agrobiodiversity and Food Sovereignty, which has an Indigenous Peoples’ Pollinators Initiative in India, Kenya and Ethiopia, was linked to IPBES, to facilitate its contributions to the IPBES fast-track assessment on pollination and pollinators associated with food production,” she adds.

At the Antalya meeting, IPBES also decided to develop a capacity building programme, including the provision of fellowships and training programmes, designed to ensure that scientists from all regions of the world are engaged at an equal level. The training and fellowships will be targeted at developing world scientists, including young researchers.

The capacity building plans will “allow input from everyone, not only northern countries where most of the funding resources are, but not the biodiversity itself”, says Larigauderie.

“One important principle is that capacity building activities will not be run independently of the work programme, but will form an integral part of the core implementation of IPBES,” she adds.

Nakashima tells SciDev.Net that the platform’s real challenge will be whether it can use its resources and aspiration to produce concrete results.

And Cariño says: “If successful, this will be a hallmark achievement of IPBES to be truly multidisciplinary, embracing knowledge diversity.”

http://www.ethpress.gov.et/herald/index.php/herald/development/5559-biodiversity-panel-gives-indigenous-knowledge-core-role

.

Related -

.

-     10 January 2014 News Round Up

By Matthew Dalton

Lake Wenchi, Ethiopia—In the green highlands here southwest of Addis Ababa, farmers like Darara Baysa are proud owners of cellphones that run on a network built by China’s ZTE Corp.

Yemeserach Hune

Tigrai Onlne – January 10, 2014

Ethiopia has been working to reach the middle-income status in 20 to 30 years for the last decade. Under a committed leadership and well-crafted policies of a developmental state, a double-digit annual GDP growth has been registered since 2003 under the PASDEP and a preceding poverty reduction plan.

In 2010, when the peoples showed their approval of the progress made thus far and their endorsement of the developmental state direction through ballot box, the government and the ruling party decided to scale-up the developmental efforts and targets to match the public’s hopes and aspirations.

In the week after the election, the late Prime Minister Meles Zenawi publicly promised to come up with an improvised plan that expedites the Ethiopian Renaissance. A few months later an outline of a breath-taking Growth and Transformation Plan (GTP) was presented for public consultations. Ethiopians across the country discussed and provided inputs, which were assembled at the centre and further reviewed by experts. Shortly after that, the government unveiled a fully-worked out 5-years GTP document as a medium term national development framework.

The GTP with almost a Trillion Birr budget and spending more than 60 percent of that on poverty oriented sectors, such as agriculture, education, health care, water and road development is directed towards: “achieving the Millennium Development Goals (MDGs), Ethiopia’s long term vision and sustaining rapid, broad based and equitable economic growth anchored on the experiences that have been drawn from implementing pro-poor and pro-growth development policies and strategies undertaken since 1994″.

The plan aims at four main objectives:

(1) maintain at least an average real GDP growth rate of 11.2 percent and attain MDGs

(2) expand and ensure the qualities of education and health services and achieve MDGs in the social sector

(3) establish suitable conditions for sustainable nation building through the creation of a stable democratic and developmental state; and

(4) ensure the sustainability of growth by realizing all the above objectives within a stable macroeconomic framework.

The plan was met by doubt and scepticism in the media and some part of the elite. But the government was determined. It even made it clear that Ethiopia will maintain at least the 11.2% growth until 2025 and join the rank of middle-income countries.

That will mean a significant shift towards industrialization. As projections show, by 2025, the share the agriculture sector would be only 29% of the economy, while industry and service would take 32% and 39% respectively.

As the GTP mostly consist massive plans of expansion and scaling-up as well as mega projects, many suspected it couldn’t be attained. But the outcome on the ground was the opposite. Even some foreign financers, who previously expressed their scepticism public, are now pledging to provide the largest amount of fund they ever gave to Ethiopia. Because, most of the targets of the GTP and the MDGs are on track and even ahead of target in some sectors.

The production of major crops, which stood at 193 million quintals, is projected to reach 225 million quintals this year and on track to 260 million quintal by 2015. This doesn’t include root crops, fruits and vegetables, spices and the like.

The increase in production and productivity of the agriculture sector is expected to continue at even faster rate, given the surge in the coverage of agricultural extension services, which benefitted 14.3 million farmers, agro-pastoralists and pastoralists in the last year.

The industrial sector continued its stride with about 15% growth rate in the past three years.

The performance in terms of job creation is well ahead of the target for each year. About 700,000 jobs were created through micro and small enterprises (MSEs) and housing projects in the first year of the GTP, while more than 1.1 million jobs were generated in the year 2011/2012.

In the second year, about 1.7 million jobs had been created, among which 50% allotted for women. 343,000 graduates of higher education and technical and vocational institutions are planned to benefit from the new job opportunities.

The job creation continued at similar rate in the third year as well. Close to four million jobs were created across the country in total in the three years of the Growth & Transformation Plan period.

The performance exceeded the target by over a million. The success was attributed to the expansion of micro & small enterprises (SMEs) and a number of on-going huge projects.

The Ministry of Urban Development & Construction (MoUDC) indicated that about one million of the jobs created during the reported period were temporary and it is striving to make the jobs sustainable.

Town administrations have been facilitating loan service, land for manufacturing and marketing, and technical and vocational trainings for micro and small enterprises. The government has decided construction of infrastructure facilities be labour intensive in a bid to create more jobs.

The progress in mega projects is in line with the schedules laid out in the Plan. The progress on the Grand Ethiopia Renaissance Dam (GERD) has now reached 30%, while construction of the Gibe III dam is over 75% complete.

The installation of modern telecommunication links with landlines and broadband services had continued and the number of mobile phone users now exceeded 22 million, while the number of internet subscribers reached 2.5 million. Nearly 90% of villages are connected to telecom service and in fiber optic laying more than 10,000 kms are on the ground linking to the international routes.

The expansion of ICT infrastructures and services to schools and woredas is well underway. The School Net program integrated 1000 schools to the national system enabling for video broadcasting and internet services. The Woreda Net program similarly connected 630 Woredas paving the way to build a transparent and accountable system and increase public participation.

Another key infrastructure, the road development is progressing on schedule with the construction of 86,000 kilometres of road at a cost of some 20 billion birr. Though the government was covering some 90 percent of the cost from its own resources, the 8 bln birr loan of 2013 from World bank ensures the road development will meet the targets set in the GTP by 2015.

The target to build more than 2600 kilometres is expected to succeed by 2015. The detailed design works of most of the routes are already complete and advanced training of thousands of necessary professionals is well underway in higher institutions sponsored by the Ethiopian Railway Corporation.

There are promising developments, including signing MoUs and contracts, for the financing of these with loans from India, Turkey and China to finance railway projects. The new Addis Ababa -Djibouti railway project had been commenced in June 2012.

In education sector, Ethiopia has reached nearly 95% primary level educational attainments with 20 million students in schools. At the tertiary level, thirty one universities staffed with 23,000 thousand instructors are serving half a million university students, while another 370,000 youth are attending technical and vocational education.

Track laying for the Addis Ababa Light Railway Transit project was officially commenced in the third year of the GTP putting an end to all the talks of those who have routinely been claiming that the project is a pipe dream.

The Addis Ababa Light Rail Transit project is an electrified light rail transit system with a total length of 34.25-kms (North-South line 16.9-kms and East-West line 17.35-kms).The two lines which are the North-South and East-West lines use common track of about 2.7-kms with a Standard Gauge of 1.435 meters and double track for the whole route.

Out of the total 32-kms main line of the phase one project, some 7.6-kms is covered with bridges which would be constructed in six locations. Once completed which would be 1 1/2 year, AA-LRT will have a capacity of transiting 80,000 passengers per hour.

One of the special features of the Project is that it performs on steep gradient and sharp curves and the fact that it is environmentally friendly as it reduces carbon dioxide emission. Trains with a capacity to carry around 300 people will start work in the first phase of the project completion. The Addis Ababa Light Railway Transit project, despite its significance, is not the only mega project launched to transform Ethiopia’s economy and advance the social-economic stride.

The 756 kilometer-long electrification project, linking Addis Ababa to the Port of Doraleh in Djibouti, is another priority project of the GTP. The Ethiopian section of the project is now more than 25 percent complete; and Djibouti launched construction of the 100 kms line within its territory last month. With the China Railway Engineering Corporation building the 317km segment from Sebeta to Meiso, the 339km from Meiso to the border town of Dawale, and the third100kms to the port of Doraleh, more than a quarter of the work is completed while the rest is progressing as per plan. The Addis Ababa Djibouti line will have 17 major stations and pass through DebreZeit, Adama, Metehara and Dire Dawa.

Of which, the 107kms from Addis Ababa to Adama will be double track and the remaining 549 kms will be single track. It is now certain that the new Ethiopia – Djibouti Railway line will be finalized within the Growth and Transformation Plan period by 2015.

These project are part of the two-phased plan unveiled in 2010 to construct a 4,850long railway, with 8 main rail routes and expected to connect about 49 towns, under the purview of the newly established Ethiopian Railway Corporation.

A 656 km long rail route that stretches from Sebeta, near Addis Ababa, to Dewele, which is located near the border of Djibouti, is amongst them. Not to forget, the old 781 kms railway line from Dire Dawa to Djibouti that has been maintained and started operations a few months ago.

However, despite what the detractors routinely claim, the main source was not foreign donation. Of the total amount spent, 77 percent was by the government. One of the major works in that regard is the two roads linking the Addis Ababa-Adama Expressway with Addis Ababa City into two directions. The 28.1-km roads Addis Ababa-Adama Expressway is being constructed at a cost of more than 4.2 billion birr allocated by the government of Ethiopia and loan obtained from Chinese Exim bank. Another major example is the construction and renovation of 1,700-kms roads carried out in the Benshangul -Gumuz State with over 172 million birr in the last twelvemonths.

One of the major works in the transport sector is the two roads linking the Addis Ababa-Adama Expressway with Addis Ababa City into two directions. The 28.1-km roads Addis Ababa-Adama Expressway is being constructed at a cost of more than 4.2 billion birr allocated by the government of Ethiopia and loan obtained from Chinese Exim bank. Another major one is the construction and renovation of 1,700-kms roads carried out in the Benshangul -Gumuz State with over 172 million birr in the last twelve months.

Similarly, the capital city Addis Ababa, which has long been horrible in its roads network has seen a major leap unprecedented in her recent history. Addis Ababa has constructed more than 1,219- kms road in the last five years with more than 10 billion birr budget. Now, Addis Ababa’s road coverage has reached 15.64 per cent raising the network to4,148-kms of which 2002- kms is asphalt , 727-kms cobblestone and the remaining1,419- kms is gravel.

In the processes, the city created jobs for more than 50,000 youths and women in cobblestone road construction. The same can be said with regard to other sectors of the transport industry. The government owned Ethiopian Air Lines serving people local and abroad remains as one of the best airline in Africa and continues to be a reputable enterprise in the world.

Now, the Ethiopian Airlines have six dedicated freighter aircraft currently operating two Boeing 777-200 LR freighters, the first to be operated in Africa, with two MD-11, and two Boeing 757freighters out of two hubs — main hub Addis Ababa and Liege, Brussels. The airline operates to 25 cargo destinations in Africa, Middle East, Europe and Asia. Having a vast cargo network — 15 in Africa, seven in MiddleEast and Asia and two in Europe — Ethiopian operates in major trade lanes between Africa and Europe, Middle East and Asia, providing a convenient and reliable cargo service to and from the continent. Boosted by the growth of perishable exports from Ethiopia, the airline is now expanding its cargo network and fleet and aims to set up cargo hubs in Central, West and Southern Africa to cater for the growing need for reliable and affordable air cargo transport to and from the continent. Ethiopian cargo is at the final stage to be one of the seven business units of Ethiopian aviation group.

By 2025, Ethiopian plans to uplift 820,000 tonnes of cargo using 15 jet aircraft. To support the airline’s fast growth and achieve its goal in continuing to be the leading cargo service provider in Africa, existing facilities are also being upgraded and new ones are being built.

Of course, the data above is simply to give you a brief glance based on what I could collect from the media, mostly months old. The progress made so far in terms of all the 7 pillars of the GTP and their wide-ranging significance for the country cannot be sufficiently presented in a short article like this one.

As the President said at the opening session of the parliament: “Ethiopia is undoubtedly moving on the right path towards rapid and sustainable development. The effect of Ethiopia’s progress is also “beginning to have a trans-boundary impact [and] many continue to express their hope to see Ethiopia maintain and continue on the right path of development in a post-Meles era”.

Sourced here:  http://www.tigraionline.com/articles/ethiopia-strides-gtp.html

.

Related:

.

-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia confident of completing Ethio-Djibouti rail project in GTP period

-     Performance of agriculture; its role in driving the GTP

-     Journey to GTP targets: A look at the sugar projects

-     Take a bow Ethiopia, you’re the African star on MDG’s!

-     Mesfin Industrial Engineering (MIE) helping achieve GTP goals

-     Ethiopia: GTP Gauges

-     State Chief calls for real commitment to achieve GTP

-     Premier hails progress made in GTP implementation

.

IPI events

Essete Gebriel, country manager of DHL Express in Ethiopia

Ethiopia, Africa’s second most populous country with an estimated 90m people, has thousands of small and medium enterprises (SMEs) but only a few of these businesses are currently accessing the international market.

Essete Gebriel, country manager of DHL Express in Ethiopia, is excited about connecting the country’s SMEs with global customers.

She says products such as processed coffee as well as handmade shoes, bags, scarves and leather goods could sell well internationally. “These are the kinds of items that have very good potential in the global market. Currently 70%-80% of our business is from SMEs. We are trying to help these companies to trade globally.”

A DHL study last year showed that internationally-focused SMEs are twice as likely to be successful as those only operating domestically.

“The possibilities opened up by new technologies, the internet and modern transportation means that there are many foreign trade opportunities out there for African businesses. With thorough research and a well-defined strategy, local SMEs can successfully expand into new markets, compete with larger companies and use their size and nimbleness to their own advantage,” said managing director for sub-Saharan Africa at DHL Express Charles Brewer in a statement last year.

DHL will this year launch a special SME project to help these companies build their businesses beyond the borders of Ethiopia.

Rebel with a cause

One of the most celebrated Ethiopian SMEs is soleRebels, a footwear company that sells its products across the world. What makes soleRebels different from a normal shoe manufacturer is that all the products are handmade by local artisans at the company’s factory in Addis Ababa. The company also claims to be the world’s first Fair Trade certified footwear brand.

SoleRebels is an example of an Ethiopian SME that has successfully penetrated the international market. Customers from across the globe can order products from its online store. The company also has retail outlets in countries such as Taiwan, Singapore, Spain and Austria.

The company’s founder Bethlehem Tilahun Alemu has won numerous entrepreneurship awards, posing in pictures with the likes of Richard Branson, and regularly speaks at conferences across the world.

Known as one of the ecommerce pioneers of the African continent, Alemu took soleRebels’s online presence to the next level. Moving beyond online retail partnerships she forged years back with ecommerce giants such as Amazon and Javari, Alemu led the launch of the company’s state-of-the-art, fully ecommerce-enabled global website.

Speaking to How we made it in Africa in an earlier interview, Alemu said the continent needs to “start focusing on small and medium businesses because they are the big engines of the economy. People… just need an opportunity, so we need to give them an opportunity to grow big with their ideas.”

Ethiopia moving forward

Alemu is just one of the businesspeople changing Ethiopia’s economy. The country has shaken off its image as a land of poverty and famine and is today one of Africa’s fastest growing economies. According to the International Monetary Fund, GDP growth remains robust and is estimated at 7% in 2012/13 and projected to increase to 7.5% in 2013/14.

“There are huge infrastructure developments in the country – road, railway and energy projects. Once completed, these projects will make a huge difference to the lives of the local population,” says Gebriel.

One of Ethiopia’s most high-profile infrastructure projects is the Grand Ethiopian Renaissance Dam. At 6,000 MW the dam will be the largest hydroelectric power plant in Africa when completed.

She says that while the country still faces many challenges, there have been significant improvements in areas such as housing and agriculture in recent years.

Gebriel’s advice to foreign companies looking to do business in Ethiopia is to ensure that they are familiar with the often complex local regulations and procedures. Foreigners should also not forget to sample the country’s unique cuisine and world-class coffee.

Sourced here:   http://www.howwemadeitinafrica.com/opportunity-for-ethiopian-smes-to-tap-into-the-global-market/33949/

.

Related:

.

-     Ethiopia strides forward with the GTP

-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia: The Last Big Untapped African Market

-     Ethiopia, India come up roses as Kenya’s flower sector goes to seed

-     Africa’s 5 Best Performing Economies 2013

-     Agribusiness Set To Boom Across Africa – DHL MD

-     Ethiopia – Sudan Bilateral Relations: A Model For Regional Integration

-     Chinese company steps up investment to create more than 100,000 jobs in Ethiopia

Tolessa Shagi (pictured above), the former state minister for Mines, now takes the driving seat as a minister.

- Some questioned why one of only four women with a ministerial portfolio had been replaced by a man

Two weeks after Sinknesh Ejigu, the former minister of Mines, headed to Brazil, the Ministry of Mines (MoM) has welcomed Tolessa Shagi, the former state minister for Mines, as its new minister.

This comes after Parliament approved Tolessa’s appointment on Thursday, January 9, 2014. This followed the request of Prime Minister Hailemariam Desalegn in a letter dated January 2, 2014, attached to a brief bio of Tolessa.

Tollesa got a Bachelor’s degree in geology from the Addis Abeba University (AAU)in 1982 and a masters in applied geology from the Indian Institute of Technology (IIT). He has also attended short-term trainings in geosciences, management and mining resource development, both inside and outside of Ethiopia.

His longest service was at the Geological Survey of Ethiopia (GSE) – an autonomous institution under the Ministry, involved in generating, analysing, processing and handling geosciences data. In that Institution, Tolessa first served as a geologist, between 1983 and 1989, becoming team leader up until 1996. He would then become a  geotechnical expert at the then Ministry of Agriculture & Rural Development. For four years, between 2006 and 2010, Tolessa held the post of director general of the GSE.

In October 2011, he became state minister for Mines.

Roman Gebreselassie, the chief government whip at the 547-seat parliament read out the short biography attached to the letter from the prime minister. She requested the 302 parliamentarians, who had gathered for their 13th regular session, to approve the appointment.

An MP from the Amhara National Democratic Movement (ANDM) asked why a position vacated by a woman would be replaced by a man, bringing down the number of women with a ministerial portfolio from four to three.

When Parliament approved 10 appointments to ministerial portfolios on July 4, 2013, the number of women in the 21-person Council of Ministers (CoM) became three, including Zenebu Tadesse, minister of Women, Children & Youth Affairs; Demitu Hanbissa, minister of Science & Technology and Sinknesh herself. Roman, too, has a ministerial portfolio.

“All I can tell you is that the Administration has not been able to find a suitable woman with the capacity and other requirements,” Roman said, raising a chuckle in the parliament.

Sinkenesh, who headed to Brazil- a country of nearly 200 million people, with a 2.2 trillion dollar gross domestic product (GDP) – left behind a ministry she had been serving since 2001. She was first a state minister for Mines under Mohammed Dirir, now Ethiopia’s ambassador to Egypt. Her last year in the position was marked by an export shortfall of $255 million, largely due to poor gold exports. The target set for 2013/14 is $1 billion, up from $848.3 million the previous year.

Sourced here:  http://addisfortune.net/articles/ministry-of-mines-installs-new-head/

.

Related:

.

-     Proposed Mining Amendment Favours MSEs Instead of Co-ops

-     Revised bill set to increase gov’t share in mining investment

-     Mine Ministry developing ‘Special small-scale law’ for gold artisans

-     Allana to invest USD 750 million on potash mine in Ethiopia

-     Allana Potash Granted Mining Licence for the Danakhil Potash Project in Ethiopia

-     CSO Law Stumbling Block in Mining Transparency Application

-     Denied EITI Inclusion, Ethiopian Ministry of Mines Prepares Own Transparency Guidelines

-     Thriving Mining Sector Sees Rising Share in Ethiopia’s Economy

-     Mining Jackpot Seeks Stable Investment Regime: A Billion Dollar Bet!

-     Israel Chemicals considering potash mine in Ethiopia

-     Mining Licensing to Become Stricter in Bid to Eliminate Abuse

-     Billion Dollar Mining Mountain

-     Allana Announces Updated Mineral Resource Estimate: Measured+Indicated Mineral Resources Increase by Over 90% to 2.4 Billion Tonnes; Inferred Resources Increase   by 94%

-     (UPDATED) Government has slashed large scale mining income tax from 35%  to 25%

-     Mining : Ethiopia is the Land of Potash and Tantalum

.

Filed under: Infrastructure Developments Tagged: Allana Potash, Business, East Africa, Economic growth, Ethiopia, Ethiopian government, Government, Gross domestic product, Investment, Millennium Development Goals, Oromia Region, Politics of Ethiopia, Sub-Saharan Africa, tag1

Workneh Gebeyehu, (pictured above)

Ethiopian authorities pledge to push businesses to live up to their promises

The government of Djibouti has backed down from its earlier decision to change cargo clearance procedures, a week before its ultimatum comes to an end. In addition to this, a demand from its negotiators to amend a 2003 bilateral agreement on port utilisation, signed with Ethiopia, has been rejected by trade negotiators of the latter.

The dispute centred on how quickly port users had to pay for services. The port utilisation agreement requires Ethiopian forwarding companies to transfer fees paid for port handling, vessel agents, container demurrage and storage for cargo left for more than eight days, two week after invoices are issued by their Djibouti business partners.

Freight forwarding companies in Djibouti pay on behalf of their Ethiopian partners, in order to secure the release of cargo in transit to Ethiopia. They then send original receipts, including invoices claiming commissions. They can access foreign exchange only after they produce these receipts and invoices to commercial banks, and they are the only authorised agents to order transfers.

However, Djibouti authorities, in late November 2013, issued a directive instructing port officials not to release cargo before freight forwarders in Djibouti do not produce bank certified notes confirming the transfer of these funds. Signed by Aboubaker O. Hadi, chairman of Djibouti’s Ports & Free Zones Authority (PFZAD), the government placed an ultimatum for December 7, which was later extended to January 15, 2014.

The decision infuriated Ethiopian importers and those active in the freight forwarding business.

Alarmed by the ensuing crises in the corridor – the only commercial sea outlet for Ethiopia – the administration of Prime Minister Hailemariam Desalegn sent a high level delegation to Djibouti late last week for a two-day visit. Led by Transport Minister Worqneh Gebeyehu, a former federal police commissioner, and comprising of seven senior officials, including Mekonnen Abera, director general of Ethiopian Maritime Affairs Authority, Ethiopia’s negotiators succeeded in reversing the decision, while rebuffing demands from Djibouti officials to amend a provision in the port utilisation agreement giving Ethiopian importers a two-week window to transfer funds.

“I’m rather pleased to see the spirit of our bilateral relationship restored,” Worqneh told Fortune, upon his return from Djibouti.

While in Djibouti, the delegation met with Moussa A. Hassan, minister of Infrastructure & Transport of Djibouti, Illyas M. Dawaleh, minister of Economy, Finance & Planning, and Aboubaker.

In return, Djiboutian officials received a promise from Ethiopian authorities that the outstanding 20 million dollars owed to their businesses in arrears will be cleared.

“Ethiopian businesses have to honour their obligations to their business associates in Djibouti,” said Worqeneh. “We’ll make sure this will happen.”

Djibouti authorities have also received pledges to see the bureaucratic bottleneck in providing foreign exchange to Ethiopian freight forwarding companies sorted out.

An Ethiopian businessman is pleased with the outcome.

“Now we can get back to business,” said the Ethiopian businessman who manages a freight forwarding firm here in Addis Abeba. “I’m glad to see the foreign exchange shortage is being addressed, too. But more importantly, it’s refreshing to see Djiboutian authorities learning that they can’t just twist the arms of a country like Ethiopia to get their own way.”

Djiboutian authorities, whose country is responsible for 20pc of the 800,000 units of containers and 85pc of the eight million tonnes of general cargo in transit to Ethiopia every year, have not been available for comment, despite repeated efforts by Fortune.

Sourced here:  http://addisfortune.net/articles/djibouti-backs-down-from-ultimatum-on-cargo-clearance/

Related:

.

-     Djibouti profile: A chronology of key events

-     Djibouti Gives Ethiopia Cargo Ultimatum

-     COMESA’s Electronic Cargo Tracking System for Djibouti, Ethiopia in Limbo

-     Ethiopia confident of completing Ethio-Djibouti rail project in GTP period

-     Djibouti expands its ports’ facilities to five

-     New Agreement Enhances Ethio-Djibouti Power Exchange

-     The First Brazil-Ethiopia-Djibouti-South Sudan Trade and Investment Seminar

-     Djibouti to Raise $5.9 Billion From Investors for Infrastructure

-     Ethiopia, Djibouti form a joint railway commission

.

New Water Services Institution Developed to Tackle Multi-Dimensional Tasks

The new institution seeks to fix some of the current issues stunting major developments in the sector

Hailemeskel Tefera, left, state minister of the Ministry of Urban Housing & Construction and Board chairperson of the WWDSE, and the minister of Water, Irrigation & Energy, Alemayehu Tegenu, were in the midst of an animated discussion about the establishment of the Ethiopian Water Development Engineering Service. 

Hailemeskel Tefera, (Eng.) state minister for Urban Development Housing & Construction, right, and Meberate Tafese (PhD), head of Water Works Design & Supervision Enterprise and member of the Technical Committee, left, trying to explain how the new Ethiopian Water Development Engineering Service Corporation is going to help realize the sustainable development of the country.

 

The Ethiopian water sector is soon to see the establishment of the Ethiopian Water Development Engineering Service. This will replace the Federal Water Works Design and Supervision Enterprise (WWDSE), in two months of time.

The need for undertaking multi-dimensional tasks has necessitated the establishment of the new institution. Under the supervision of the federal government, it will mainly consist of different research institutes and will be involved in various water development and supervision strategies. Also, this corporation will be under the Supervision of the federal government. The current institution, the WWDSE, is only engaged in water development and supervision.

“Establishing a strengthened water sector design and supervision is pivotal to realising the sustainable development of the country,” Hailemeskel Tefera, state minister of the Ministry of Urban Housing & Construction and Board chairperson of the WWDSE, said at a panel discussion on Saturday, January 11, 2014, at the Ghion Hotel. The discussion sought to solicit comments and suggestions on the establishment of the new institution.

Experts, who presented study papers, pointed out some of the barriers faced by the sector. Incompatibility of the institutional setup to the demands of complex projects, a lack of systems, low level technology usage, a shortage of skilled manpower in some specialised fields and limited experience in study, were highlighted as challenges.

Some of the studies pointed out reasons for the delay in the Tendaho and Kessem dam and irrigation projects.

“They could not be completed within the time framework because of the different framework challenges,” one study indicated. “Project management problems, lack of alternate project delivery arrangements and fast track project management, coupled with Institutional setup have slowed down the projects.”

Ethiopia’s national water access reached 61.6 pc (over 52 million beneficiaries) of the population up until late 2012/13. Rural water access has reached 58.7pc (over 43 million beneficiaries) and urban water access has reached 80.7pc.

According to the growth & transformation plan (GTP), a household in a rural area has to have a supply of around 15 litres of safe water per person per day within a 1.5 km radius. Similarly, the GTP defines the clean water supply for urban dwellers – 20 litres of potable water per person per day within a 0.5 km radius. Based on this plan, over 29 million people living in rural areas are expected to become beneficiaries of safe drinking water by 2015.

http://addisfortune.net/articles/new-water-services-institution-developed-to-tackle-multi-dimensional-tasks/

.

Hard Work but Dwindling Return

The price of raw leather has been fluctuating since last Christmas and the Ethiopian New Year holiday in September, when a sheep skin sold at 80 Br, on average.

Some like Abera Getachew, right, with ample experience plough through the arduous way and succeeding.

 

Early morning on Tuesday, January 7, 2014 – Ethiopian Christmas Day – Abadir Wayo slaughtered three sheep and a goat for four of his customers. When all was done, he headed to the market around Saris, on the Debre Zeit road, to sell the skins, which he receives as payment for his slaughtering service.

Unlike the previous holidays, Abadir, who works as a daily labourer, did not pay any extra money to his clients for the skins. This is since they are fetching a lower price at market.

‘‘I used to pay an extra 25 Br to 30 Br after receiving the skins,’’ Abadir told Fortune. ‘‘However, currently the sheep skins bring back a relatively low return in the market.’’

Although Abadir did not pay anything for taking the sheep skins, he received an additional 35 Br for his service of slaughtering the goat. This is because goat skin fetches a much lower price than the sheep skin.

At around 9 am, Abadir sold the goat skin for 25 Br to Bekele Ketema, who has been in the business of collecting skins for the last 10 years. However, he did not succeed in selling the sheep skins, since he asked Bekele to pay him 55 Br for each.

Bekele collects raw skins in his booth located around the Saris area. The booth was donated by USAID for skin collectors to sell skins, without affecting its quality, to skin collectors that then supply the skin to leather factories.

Bekele had been collecting the skins since 6 am on Tuesday, and had amassed 70 by the time Abadir arrived. This is a sharp increase from the other holidays, where he often accumulated only around 20 skins a day.

Bekele bought sheep and goat skins for 50 Br and 25 Br, respectively, mostly from households that slaughter the animals for the holiday. He would later sell the skin to factory suppliers, who travel around the city in the afternoon, for 53 Br, he claims.

The price of raw leather has been fluctuating since last Christmas and the Ethiopian New Year holiday in September, when a sheep skin sold at 80 Br, on average, and each goat skin fetched 30 Br. Cattle skin, which can weigh up to 48Kgs, sold for 3.50 Br a kilo at the time.

During the current holiday season, Bekele could not accommodate the needs of Abadir, however, since he was anticipating a lower return from the sheep skins.

‘‘I am surprised by the sudden drop in the price of sheep skin,’’ Abadir told Fortune.

The prices were falling nearly everywhere in Addis Abeba, hence Abadir could not have succeeded with the price he requested. At the area around the premises of the Addis Abeba Exhibition & Marketing Development Enterprise, near Mesqel Square, Taye Bobolibo, another raw skin collector, was buying sheep skin for an even lower price of between 45Br to 50 Br

Kedir Wahid – another skin collector, around the Anwar Mosque area, near Merkato (the largest open-air market in Africa) – bought sheep skin with more or less the same price to that of Taye at the Exhibition Centre.

The reason for the drop in price of raw skin is unclear to the likes of Taye and Bekele. They claim to sell the skins with prices set by their buyers, who later submit it to one of the 29 suppliers in Addis Abeba.

Sheriff Ahmed is Taye’s customer.  He supplies raw skin to tanneries and leather factories. He says that this Christmas sale stands out as different from previous times, as the tanneries and leather factories demand less skin with a higher quality.

Although Ethiopia has a definite comparative advantage, with a large livestock population, easy access to quality hides is lower when compared to neighbouring countries. During the 2011/12 fiscal year, the total population of cattle was 53.3 million, while sheep and goats numbered 25.5 million and 22.7 million, respectively, according to the Central Statistical Agency (CSA).

Ethiopia’s cattle population is far greater when compared to that of Kenya and Sudan, which have a population of 11.7 million and 39.8 million, respectively. When comparing sheep and goat populations, Kenya has 1.7 million and 24.7 million, respectively, while Sudan has 48.9 million and 39.8 million.

Despite having a large population, the proportion of cattle consumed in Ethiopia is only seven percent, compared to 10pc and 20pc for Kenya and Sudan.

The proportion of sheep and goat consumed in Ethiopia is 33pc and 38pc, respectively, compared to 30pc and 29pc in Kenya and 45pc and 30pc in Sudan.

The price of sheep skin has declined, since the demand from tanneries and leather factories is limited at this time, claims an expert working with the Ethiopian Skin & Hides Suppliers Association,

The price of a sheep skin, which is originally bought for 55 Br on average from people like Abadir, is sold for around 75 Br when it reaches the tanneries and leather factories.

‘‘The market of skin depends upon the demand from the factories,’’ says Belete Abadi, an expert on leather industry, who has worked in the industry for several years.

Tanneries do not deny this. Some of them have made the choice of postponing plans to buy skins from the market during the current holiday season.

A managing director of a foreign tannery, which produces finished sheep skins, goat skins and hide products for gloves, shoe uppers, garments and linings, as well as cow hide products for leather goods, admitted that his company will not purchase raw hides and skins from its suppliers, since the company has enough stock in its warehouse.

The company has been utilising 75pc of its capacity, since the demand in the international market is declining. It has the capacity to process 70,000 sheep skins and 1,500 cow hides, annually.

‘‘We cannot be competitive in the international market, if we keep going to buy animal skins locally at a high price,’’ he claimed.

Some tanneries, which collect the raw skins from its customers, found the current price surprising and encouraging.

The higher raw material prices incurred by most of the tanneries operating in the country is in addition to the levy of export tax imposed on unfinished leather products since 2012.

This measure is intended to realise the vision of the government for the leather industry, by introducing a 150pc tax on the export of crust leather.

The last half decade has not been as successful for the leather sector as the government had planned. The government’s plan of collecting close to half a billion dollars in revenue from exports at the end of its previous five-year economic plan, which ended in 2009/10, was not achieved. Only 205 million dollars were collected. Part of the reason for this failure is that 20 of the 26 leather exporters export only crusted leather, while only six export finished leather.

Before the introduction of the export tax, most of the income from leather exports came from crusted leather. This accounted for 67.3pc of the 104.1 million dollars earned during the 2010/11 fiscal year. The plan was to achieve 180.4 million dollars.

Although the introduction of export tax failed to achieve the government plan, as outlined in the Growth & Transformation Plan (GTP), it discouraged the export of crust once and for all. The government envisions earning one billion dollars from the export of leather products by the end of the 2014/15 fiscal year.

In the just ended fiscal year, the country earned only 308,000 dollars from the export of 14tns of crust. Two years before the introduction of the export tax, the country secured 74 million dollars by exporting 4,062tns of crust. But the export earnings from finished products increased to 121 million dollars.

However, this seems not enough for the Ethiopian Leather Industries Association (ELIA), which have close to 50 factories involved in the leather industry as members. The price has to go even lower, the Association says.

Leather factories were unable to clear their unpaid bills, as their input cost is much higher than their final price in the international market, Belete, the expert, claims.

But this is against a new law adopted by Parliament in December, which was expected to reduce the number of middlemen in the market chain. According to the government, their presence is the main reason for the inflated prices.

The amended bill aims to make the process of raw skin sale transparent. With the amended bill, all trading between tanneries and suppliers will be conducted after the former has signed an agreement with the latter.

For Sheriff, the drop in price means an improved opportunity for buying more skins. This would increase his profits, if suppliers are willing to buy.

‘‘My profit is around five Br, whether the price remains the same or not,’’ Sheriff told Fortune.

http://addisfortune.net/articles/hard-work-but-dwindling-return/

.

Faltering Flower Fortunes

The flower industry is the fifth most important foreign exchange earner in Ethiopia, after the narcotic crop, khat.

In spite of the challenges, Ethiopia’s flower industry has utilised 1,300ha of land and repatriated 260 million dollars from floriculture and 50 million dollars from fruits and vegetables.

 

Gemeda Dadi, 21, was jobless for three full years before joining Sher Ethiopia Plc -a huge flower firm in Ethiopia, contributing to 65pc of the aggregate Ethiopian horticulture export.

Sher’s headquarters is located in Ziway town in Oromia Regional State, 163km from Addis Abeba. Its entry into the burgeoning Ethiopian flower industry in 2005 was a landmark event, as it became the largest farm in Ethiopia, occupying 500ht. It had already been engaged in Kenya for over 15 years. It is currently requesting for even more land from the Ethiopian authorities.

The Company had created13,000 jobs for residents of Ziway and its environs.

Most of the people Fortune approached are happy with the Company’s investment in social infrastructure.

“Sher has not only been benefiting me, but my whole family,” says Gemeda, who was working in the flower farm on a sunny afternoon, on January 3, 2014.

In 2004, the two Dutch owners of Sher, Gerrit and Peter Barnhoorn, were invited by the Ethiopian government to set up a project in Ethiopia. They were particularly emboldened by the support and encouragement they received from Ethiopia’s late Prime Minister, Meles Zenawi, they say.

Despite its late entry into the market, the Ethiopian horticultural industry has been a success story, marking the nation’s entry into a non-traditional export product. Ethiopia is the second largest exporter in Africa, after Kenya, and ahead of Tanzania, Uganda and Zimbabwe. It is also the fifth largest non-EU exporter to the EU cut flower market.

“It has taken Ethiopia five years to reach half of what Kenya achieved in three decades,” reported Kenya’s Daily Nation newspaper in 2007. “At this rate, Kenya could be overtaken by Ethiopia in a decade.”

This sector earned 94 million dollars for Ethiopia in 2007, while Kenya earned a whopping 364 million dollars.

Ethiopia’s fast progress “left Kenya stunned,” the paper added, despite Kenya’s fourfold revenue.

But it is far from an entirely rosy picture, as the sector is also operating with many challenges. These require government intervention, according to the flower company owners. Ethiopia’s new investment policy lacks an understanding of the sector, in terms of relevant incentives, some say, and there is a lack of access to land for expansion; air freight cost is high.

“We operate under challenges, including power cuts, connection problems and improper cargo services,” Kamal Hussein, Sher’s public relations officer, told Fortune.

Jagdish Mahajan, farm manager and representative of Joytech Fresh – another of the foreign flower companies operating in Ethiopia-shared Kamal’s frustration.

“Whenever the electric is down, all the fans and the cooling room will stop working,” he said. “Hence, the greenhouse temperature will rise, wilting  the plants.”

He and other mangers in the sector lamented being unable to their customers’ needs due to power cuts.

“I am not even sure if we can continue in this frustrating condition,” Jagidish grumbled.

Maranque Plant Plc is another company in the sector facing logistical challenges not of its own making. Located in Alaga Dore, 125 kms from Addis Abeba, in the Arsi Zone of Oromia Regional State, the company faces challenges that it says that reduce its ability to generate more foreign currency and meet the target the government has set.

Although witnessing an increment in its flower cutting in 2013, with 360 million cuttings exported mainly to Japan, the Netherlands, South Africa and the US, it complains of complications in cargo services, among other challenges.

“Our main challenge is the cargo service,” Hebelom Tamerat, export department head at Maranque, told Fortune.

Initially, the Company was using KLM Royal Dutch Airlines, which had direct flight from Addis Abeba to Amsterdam – its main market destination.

When KLM terminated its Addis-Amsterdam flights in March 2013,Maranque was forced to use Ethiopian Airlines (EAL), which has a stopover in Belgium, causing delays.

“Sometimes, we also face delays, due to offloading and improper handling from EAL,” said Hebelom.

Some, like the Sher, which faced the same problem, have even gone to the extent of requesting that the government allows them to purchase their own aircrafts. They will then be able to transport roses more quickly and conveniently.

Although the flower exporters expect remedies for the challenges they face, the response from the Ethiopian Horticulture Development Agency (EHDA), is hardly an indication of remedy coming in the near future.

“The complaints are far too exaggerated,” says Mekonnen Hailu, public relations officer with the Agency. “They have been benefitting from the attractive  incentives the Agency has devised to support the horticulture sector.”

Mekonnen cites the tax holiday period to validate this argument. Initially, only five years was given as a tax holiday period to the companies. This time around, however, it has been extended to seven years. The Agency’s experts, he says, have been providing assistance in technical and environmental aspects.

Tilaye Bekele, executive director of the Ethiopian Horticulture Producer Exporters Association (EHPEA), argues the government could do more. He argued that the lack of a competitive cargo service, in addition to the absence of consolidated services is hampering the performance of the sector.

Out of 120 foreign and local flower companies operating in Ethiopia, 96 are members of the Ethiopian Horticulture Producer Exporters Association (EHPEA).  Seventy-three out of the 120 investors invested through Foreign Direct Investment (FDI), while 11 are joint ventures and 36 are local companies.

http://addisfortune.net/columns/faltering-flower-fortunes/

.

Investment Agency Invites Local Manufacturing Companies Into Industrial Zones

The offer doesn’t include foreign companies, as the Investment Agency wants to encourage local ones

Addis Abeba City Administration Cabinet will expects to approve the Land Bank & Transfer Agency plan format.

 

The Addis Abeba Investment Agency (AAIA) is inviting local investors in the manufacturing sector to work on the 330ha of land it has allotted in the Nefas Silk Lafto and Akaki Kaliti districts.

This offer, made only to local businesses, will have leases prices fixed through negotiation, said Kidanemihret Berhe, director of the AAIA.

The Land Bank & Transfer Agency developed plan formats for three industrial zones – one in Akaki Kaliti and two in Nefas Silk Lafto – which have now been submitted to the Cabinet of the Addis Abeba City Administration for approval, according to Masre Yemam, sub-process head with the Land Bank & Transfer Agency.

There are already industrial zones in both the Akaki Kaliti and Lafto districts, each covering 2,800sqm. The companies, which have leased plots in the zones are engaged in the garment, shoes, agro-processing and metal manufacturing sectors. The AAIA says it has invited investors to take plots in the industrial zones for two reasons.

Textile and garment, leather products, agro-processing and chemical products have been prioritised by the new offer, he said.

Agriculture is the primary source of employment for the Ethiopian economy. It contributes 43.2pc to national production and provides employment to more than 80pc of the working population. The manufacturing sector, which grew by 18.5pc in 2012/13, accounts for only 13pc.

The offer is for local investors, the Diaspora and mid-scale enterprises. The latter are those who have graduated successfully from SMEs with capital investment growth. Foreign investors are excluded because the Agency aims to encourage local ones, Kidanemihrei said.

“The AAIA decided to allocate land for investors, taking into consideration the fact that many local investors went as far as to erect warehouses on land leased from other investors,” he added.

The size of the land to be leased for each of the investors will be decided based on the project that they submit to the Agency.

The Agency will evaluate investment projects and transfer them to the Land Bank & Transfer Agency, which will facilitate the process. The proposals will then be sent to the City Administration’s Cabinet for final approval.

Infrastructure, like roads, water, electricity and telephone, have already been installed in the zones. A technical committee under the AAIA is to work on the remaining infrastructural facilities, according to Kindanemihret.

The Agency has responsibilities to promote the investment potential of the city, deliver efficient services to investors and conduct proper follow ups and strengthen the support service to investors.

http://addisfortune.net/articles/investment-agency-invites-local-manufacturing-companies-into-industrial-zones/

.

Electronic System to Replace Plastic MobileTop-Up Cards

The foreign currency spent importing the plastic cards will be saved with the introduction of a new paper system

Kifya runs the 31 Lehulu centres and provides one window electronic billing service to 1.1 million bill paying customers to pay their water, electric and telephone bills.

 

Kifiya Financial Technology Plc (KFT) is working with Ethio-Telecom to introduce an electronic airtime distribution service. This will be designed to be a cheaper replacement of the existing scratch cards used for prepaid mobile customers.

Ethio-Telecom’s Corporate Communications director, Abdurahim Ahmed, declined to make any comment, but the service could become a reality in two weeks, according to Eyob Getahun, Public Relations head at Kifya.

When launched, the electronic airtime distribution service will replace the common scratch cards. The very objective of the project is to cut down on the foreign currency spent on the purchase of the plastic mobile airtime cards. Although the paper airtime recharging e-cards will also be imported, their cost will be significantly less, says Kifya.

“The cost of the scratch cards is too high and cards need complex printing and complicated distribution networks,” Eyob Getahun, public relations officer of Kifya, said.  “On top of that, they are not environmentally friendly.”

Unlike with the current scratch card, the pin number would be printed on paper from an e-card terminal. These would be designed to print the numbers from data stored on Ethio-Telecom’s server online, using a private network GSM (Global Station for Mobile Communication). The terminal owner would insert a password and username to print the airtime required, and sell it on the spot.

“Through the studies, it has been proven that the project is viable,” Eyob said. “Kifya will, thus, implement the new scheme soon.”

Abdurahim Ahmed, the corporate communications director at Ethio-Telecom, did not comment to Fortune, despite repeated efforts.

Ethio-Telecom has so far been availing scratch cards worth five Birr, 10 Br, 15Br, 25Br, 50 Br and 100Br only. The new service will, however, provide customers with the option of recharging any amount.

Fortune has learnt that Kifya has recruited new staff from its branches and has been offering them training at its headquarters at the Finfinnee Building, around Meskel Square.

The agreement with Ethio-Telecom is expected to evolve into a scheme in which private vendors will lease airtime from them to distribute to customers.

Established in 2010, Kifya runs the 31 Lehulu centres and provides one window electronic billing service to 1.1 million bill paying customers to pay their water, electric and telephone bills.

http://addisfortune.net/articles/electronic-system-to-replace-plastic-mobiletop-up-cards/

.

Ethiopian Red Cross Fundraising For Half Billion Birr Headquarters

The new building will provide a rental income, making the organisation less reliant on foreign aid

Ahmed Reja, left, (PhD), president of the ERCS, was glad that he met people like Tadele Yemer, middle, president of the Ethiopian Employers  Federation (EFF) and Fissehatsion Biyadegelegn, president of the Confederation of Ethiopian Labor Unions (CELU), pledged to support to the project.

The 16-storey building is expected to cost 500 million Birr, but so far the ERCS has only managed to raise 22.8 million Br. These funds were acquired through an SMS lottery game, launched in 2013.

The building will rest on a 4,936sqm plot of land next to the Addis Abeba Spa Services Enterprise along Yohannes St – near Zewditu Hospital. The plot was granted to the ERCS for free by the Addis Abeba City Administration, in 1997.

DMC Construction has been awarded the first phase of construction (structural framework and concrete work) for 187 million Br.

With the reduction in funds from foreign and local charities because of the increasing number of people, who seek assistance, the Society turned to community-based fundraising options, such as the SMS game it already had.

“We are also looking for government support to secure the remaining funds,” Dr Ahmed Reja, president of the ERCS, said during the launch of the fundraising project at the Hilton Addis, on Thursday, January 9, 2014.

The building, when completed, is expected to generate income from rent for the ERCS. Generating income will decrease the organisation’s dependence on foreign aid, which has been declining recently, and increase its capacity to do its humanitarian work, said Dr Ahmed.

“Anyone interested in the project can support this fundraising in kind, financially and even in knowledge sharing, as well as labour,” Ahmed said.

When established on July 8, 1935 in Addis Abeba in the aftermath of the Italo-Ethiopian War (1935-41), the ERCS was pioneered by the Russian Red Cross Medical Team. It aims to work on food security, disaster preparedness, community health, first aid, ambulance services, blood banks and an essential drugs program. It has several projects, including environmental protection and poverty reduction, as well as helping returned refugees, says Frehiwot Worku, the Society’s Secretary General.

The revised charter of the ERCS allows it to collect money from different sources. This includes the proceeds of various income generating programmes they run.

The ERCS is currently based in a building adjacent to Ghandi Memorial Hospital along Ras Desta Damtew Street, which it has owned for the last 40 years.

http://addisfortune.net/articles/ethiopian-red-cross-fundraising-for-half-billion-birr-headquarters/

.

Ethiopian Airports Enterprise  plans new Airport for Awassa

In the last Ethiopian fiscal year alone, Awasa, which is the capital city of the Southern Region, is visited by more than 631,000 Ethiopians and foreign tourists that help for the gain of 130 million Br in revenue.

It is indicated that the way of transportation to the city being limited to the road transport only, greatly hinders the great many visitors that might want to have air transport to come to the city. For the building of the airport, the Ethiopian Airports Enterprise has received a land and the design work is being done with the cost of one million Birr which is believed to be completed in four months time.

http://www.waltainfo.com/index.php/explore/11998-ethiopian-airports-enterprise-plans-new-airport-for-awassa 

.

Prime Minister Hailemariam Desalegn Confers With Japan’s Prime Minister Shinzo Abe

Japan’s Prime Minister Shinzo Abe arrived in Addis Ababa on Monday (January 13) at the head of a 50-person delegation of senior officials, parliamentarians and business leaders.

Prime Minister Hailemariam and high-level Ethiopian officials welcomed Prime Minister Abe, his wide and the delegation at Bole International Airport before holding discussions at the Jubilee Palace.

Prime Minister Hailemariam noted that “Ethio-Japanese relations, dating back over 85 years, had now reached qualitatively higher levels.”

He underlined and reaffirmed Ethiopia’s contributions to the Tokyo International Conference on African Development (TICAD) and expressed his hopes that Japan would implement the TICAD V Declaration and Plan of Action in collaboration with the African Union.

Prime Minister Hailemariam stressed the importance of increasing Japanese investment in Ethiopia to help Ethiopia maintain the double digit growth it had witnessed over the past decade.

He requested Prime Minister Abe’s support for Japan’s Trade and External Office (JETRO) to open offices in Addis Ababa, the diplomatic hub of Africa, to boost trade and investment ties not only with Ethiopia but also with Africa as a whole.

He said Ethiopia’s rapidly improving institutional capacity, stable macro-economy, and conducive investment climate as well as its friendly and hospitable people and growing market offers attractive business opportunities for Japanese investors.

He urged to Japanese investors to take part in Ethiopia’s manufacturing sector, especially in energy development and railway management as well as in production of rice in the area of agricultural investment in which Japan excels.

Prime Minister Hailemariam appreciated Japan’s immense contribution in technical assistance to Ethiopia’s development, noting that Ethiopia has adopted Kaizen as a philosophy in the nation’s moves to improve quality and productivity, and expressed Ethiopia’s desire to benefit from the Abe Initiative.

Prime Minister Shinzo Abe stressed that Japan would continue to support Ethiopia’s development endeavors, sharing experiences through the Ethio-Japan Industrial Policy Dialogue. He underlined that Japan would like to expand Ethiopia’s Kaizen Institute into a TICAD Human Resource Development Center for Africa.

He promised to consider opening a JETRO office in Addis Ababa after looking at the trade volumes and investment climate changes in Ethiopia.

Prime Minister Abe announced his government’s decision to offer a 520 million yen support to improve the productivity of underprivileged farmers in Ethiopia, as well as Japan’s desire to support Ethiopia in the study for a master plan for geothermal energy, urban water development and to expedite the Aluto-Langano Geothermal project.

He also announced grants of US$11.6 million to assist refugees from neighboring countries in Ethiopia and US$500,000 to the African Union Peace and Security Peacekeeping Training Center.

Prime Minister Abe welcomed Ethiopia’s role in promoting political dialogue and peace keeping in Somalia and South Sudan as well as between Sudan and South Sudan.

He said Japan would support IGAD-led mediation efforts and urged the international community to support the efforts of the regional bloc.

http://allafrica.com/stories/201401140960.html

.

Japan woos Africa with funds for peace and security process

Japan’s Prime Minister Shinzo Abe wooed Africa Tuesday pledging financial packages to boost peace and security on the continent, which has become a key trading partner with China.

“In order to respond to conflicts and disasters in Africa, Japan is now preparing to implement assistance of approximately $320 million,” Abe said in his policy speech for the continent at the African Union headquarters in Addis Ababa, Ethiopia.

Abe’s trip to Africa is seen as a move to secure energy resources and boost Japan’s profile.

Abe pledged $25 million to address the crisis in South Sudan, where fighting between government forces and rebels has taken the world’s youngest nation to the brink of all-out civil war.

On Monday, Abe urged warring South Sudanese parties to sign a cease-fire after weeks of violence that has left thousands dead. Japan has some 400 troops posted in South Sudan as part of the UN peacekeeping force there.

“Japan believes mediation from neighboring states such as Ethiopia is vital and should be supported,” Abe said.

In addition to the money earmarked for South Sudan, Abe said Japan would donate $3 million to the crisis in the Central African Republic, which has been engulfed in conflict since last year.

Abe said strengthening business ties with Africa and promoting the private sector was a priority for his government, and pledged to boost Japanese investments on the continent.

He added that Japan would offer a total of $2 billion in loans to the private sector, doubling a 2012 pledge.

Abe’s two-day trip to Ethiopia is his last stop on an Africa tour that has also taken him to Cote d’Ivoire and Mozambique in a bid to bolster Japanese ties and business relations.

China became in 2009 Africa’s top trading partner at 13.5 percent, compared with trade at 2.7 percent with Japan, according to the OECD.

http://www.globaltimes.cn/NEWS/tabid/99/ID/837528/Japanwoos-Africa-with-funds-for-peace-and-security-process.aspx

.

Japan provides 500 million Yen to Ethiopia

Addis Ababa, 14 January 2014  (WIC) – Japan has provided 500 million Yen assistance to Ethiopia to support its efforts to transform the agriculture sector, Prime Minister Hailemariam said.
After conferring with the Japanese Prime Minister Shinzo Abe here Monday, the Premier said the assistance will help the country’s efforts being exerted to improve agricultural production and productivity.
Prime Minister Abe has also agreed to establish the African Kaizen Centre, Japan planned to set up in Africa to support the continent’s industrial development.
Prime Minister Abe has also agreed to double the bilateral trade cooperation with Ethiopia, Hailemariam said.
Hailemariam said participation of Japanese companies in Ethiopia is not as it should be.
He called on Japanese companies to invest in Ethiopia and benefit from the prevailing conducive investment atmosphere in the country.
The two parties have signed bilateral air service agreement.
Prime Minister Abe on his part said his government will do everything to further deepen the overall bilateral ties with Ethiopia.
He expressed hope that the Ethiopian Airlines’ flight to Tokyo to be inaugurated soon will strengthen the cultural, trade and investment cooperation between the two countries.
He expressed gratitude for Ethiopia’s role played in building and restoring peace and stability in the Horn of Africa.
Prime Minister Hailemariam and other senior officials welcomed Prime Minister Abe when he arrives in Addis Abeba on Monday afternoon for a two day official visit.
The Prime Minister on Monday visited relatives of Abebe Bikila, the first black person to win marathon in 1960 in Tokyo.
According to ENA, Abebe Bikila was a double Olympic marathon champion, most famous for winning a marathon gold medal in the1960 Tokyo Summer Olympics while running barefoot.

http://www.waltainfo.com/index.php/editors-pick/11999-japan-provides-500-mln-yen-to-ethiopia

.

University constructing referral hospital

The University of Gondar is constructing 1,000-bed referral hospital, expected to be inaugurated next June, at a cost of over 350 million birr. Upon completion, it will benefit over five million people in Gondar town and its environs, University President Prof. Mengesha Admasu said.
In an exclusive interview with The Ethiopian Herald, Prof. Mengesha said that apart from providing services for in- and out-patients, the university plans to open, among others, standard eye care and international fistula treatment and training centres.
The construction of the referral hospital is being undertaken with the joint efforts of various bodies—a four-storey building by the government and five-storey by Sheikh Mohammed Hussien Ali Al- Amoudi and US government support.
The construction of the hospital has created job opportunities for over 4,000 citizens, the President added.
Established in 1954 Gondar Public Health College and Training Centre with the mission of supplying middle level health professionals who could run a network of heath centres across the country. It is the country’s oldest medical training institution.
“ We have been serving our country since 1954 and we will continue to make sure our service is passing down to generations as a legacy,” Prof. Mengesha said.

http://www.waltainfo.com/index.php/explore/11993-university-constructing-referral-hospital

.

Chinese company to construct oil, gas pipeline stretching from Ethiopia to Djibouti

The Chinese petroleum company, which recently signed a petroleum production sharing agreement (PPSA) with the Ethiopian Ministry of Mines (MoM) to develop the gas filed at Ogaden, signed a Memorandum of Understanding (MoU) on Wednesday January 8, with the government of Djibouti that will allow the company to construct two pipe lines stretching from Ethiopia to Djibouti. The deal comes after strong preliminary studies showing that oil and gas might be discovered in the country’s eastern region.
GCL Poly Petroleum Investment that signed a deal with Ethiopia in November 2013 to develop gas reserves at Calub and Hilala has signed a MoU with Ministry of Energy in charge of Djibouti’s Natural Resources that will allow the company to transport gas and oil products to the port.
The framework document of the agreement will determine the terms allowing the two pipelines, oil and gas, to flow to the port from Ethiopia.
The American oil company, Tenneco, was the first to strongly confirm that there was a huge gas reserve in the area 42 years ago. Now other international petroleum companies are finding that the area is rich with natural resources.
According to the information obtained from Djibouti, the new deal between the Chinese firm and Djibouti is exceptional when compared with other companies who have been interested developing Calub and Hilala natural gas fields. For instance most of the companies have been active in the gas field and only expressed their plan to transport the product via pipeline to the port [Djibouti] but no other country was able to reach this kind of agreement with the tiny horn of Africa country, which is the main hub for Ethiopia’s import/export.
Sources at Djibouti told Capital that this agreement also provides for the construction in Djibouti of a liquefaction plant and gas refinery and storage of crude and refined products and a bunkering center in Obock, located on the northern shore of the Gulf of Tadjoura.
Li Wei, representative of the Chinese multinational and Ali Yacoub Mahamoud, Minister of Energy in charge of Natural Resources, signed the MoU at Djibouti.
Currently, several international companies are assessing the oil and natural gas deposits in of Ethiopia. Previously, companies have been focusing on the southeastern part of the country, while latest assessments indicated that oil and gas reserves are also abundant in other parts of Ethiopia.

http://sodere.com/profiles/blogs/chinese-company-to-construct-oil-gas-pipeline-stretching-from-eth

.

Road connecting Megenagna and Tor Hayloch via Meskel Square planned to be completed in five months

A road project, stretching from Megenagna to Tor Hayloch via Meskel Square should be completed by this June if it is not hindered by railway construction alongside the road.
The Addis Ababa City Road Authority (AACRA) says the 8.6 km asphalt road that links the eastern and western part of Addis Ababa should be open by the end of this fiscal year.
Fekadu Haile (Eng.), Director of AACRA says they want to finish the 2.4 billion birr road by the end of June in order to alleviate traffic congestion.
Fekadu told Capital that plans for the road completion do depend on the progress of the light railway transit being constructed by China Railway Engineering Group Limited (CREC).
The road project that goes hand in hand with the Addis Ababa LRT project is divided by five sections and is constructed by two foreign based companies. The Israeli giant, Tidhar Earth Moving Company, has undertaken two sections that link the road project from the Ministry of Mines to the Ministry of Water and Energy. The other three sections that link the western side of the city to the Ministry of Water and Energy, which is in the central area of the city, are being constructed by the Chinese based CRBC Addis Engineering.
“The LRT project is a governmental priority and we will abide by that but we promised contractors that we would finish the road on schedule,” he said.
According to the authority head, most of the design work that combines the road and LRT construction has been completed this past year. He doesn’t foresee the necessity for any redesign.
Fekadu added that the roads linking western Addis to the east side will have several interchanges. The project, which is financed by the government, is expected to end within 18 months.
For the current budget year AACRA has set a target of completing 36 main roads and also undertaking other major projects in main traffic areas.
According to AACRA, in the current budget year, 59.5km and 35km of asphalt roads will be built by private contractors and AACRA’s own taskforce respectively; 19.2km of asphalt roads will also be built in the compounds of condominiums that will be constructed shortly.
Early this fiscal year the authority stated that road coverage will grow to 4,600km at the end of this budget year, up from 4,148km last year.

http://sodere.com/profiles/blogs/road-connecting-megenagna-and-tor-hayloch-via-meskel-square-plann

.

UK, Ethiopia Strengthen Investment

Ethiopian minister of Foreign Affairs, Tedros Adhanom (PhD) attended a business lunch on Thursday, January 9, 2014, organized by UK companies investing in Ethiopia in collaboration with the British Embassy in Addis Abeba.

The UK companies, which included Pitards, JCB, Diageo and Stratex were engaged in Ethiopia in leather, brewery, mining and garment businesses.

They also held a side exhibition of their products, Tedros and Greg Dorey, the British Ambassador to Ethiopia, visited.

Addressing the meeting, Tedros noted that Ethiopia with its growing market size, its youthful labor force and its conducive investment climate offers great opportunity to British investors.

He reaffirmed the readiness of his office to support their efforts.

“It is through making your investment endeavors in Ethiopia comfortable that we can lure others to come,” he said.

He said the government is doing its level best to address any problems in telecom and energy supplies, foreign currency, financial services or other investment related issues.

Greg Dorey said the bilateral relations between Britain and Ethiopia were developing steadily with a growing UK investment in Ethiopia.

He noted that more UK investment was in the pipeline to take advantage of the good investment climate in Ethiopia, and he underlined the immense opportunities available in Ethiopia for UK companies in different sectors.

http://allafrica.com/stories/201401140954.html

.

Related:

.

-     11 January 2014 News Roll

.

Written by Alice Ndita

A group of civil societies and farmer related NGOs are raising alarm over continuing patenting of traditional crop varieties by big agribusiness firms and multinationals, that is now threatening to lock out farmers from these crops as they now become pricey and out of reach. The agribusiness companies have been appropriating these plant varieties, hybridising them, and then patenting the hybrids which has meant that once released in the market  they become exorbitantly expensive for the small scale farmers who have traditionally relied on the crops due to their superior high yielding drought resistant traits.

With increased enforcement of intellectual property rights, the civil societies now fear that the rich pool of Africa’s indigenous seed varieties could soon be entirely in private hands. Already farmers are starting to feel the effect of this patenting with certain maize varieties that have been favourite among farmers and readily available now beyond the reach of the farmers. For example a  2-kg bag of hybrid maize seed which traditionally cost Sh100 now goes for Sh400 and has been branded under a different name. “We have to buy it because it is the one that does well in our soils and we have been using it over years. We just dont understand why it has shot up that much in price. We just cant afford it,”said Kungu Mware a farmer in Sabasaba area of Central Kenya.

The same case applies to Sorghum Gardam, favourite among farmers for its drought resistant traits. While farmers have usually bought a Kilo at between Sh150-200 the branded one ranges between Sh500-Sh600, “we can no longer plant it, we cant afford it,”said Mutisya Wema a sorghum farmer from Mwingi.

The coalition of civil society organisations, which includes Bridgenet Africa, African Biodiversity Network, Rights Food Alliance Uganda and the Kenya Biodiversity Coalition, are therefore protesting, in particular, against the policies of certain agribusiness firms which focus on hybrid seeds, chemical fertilisers and pesticides, and credit.

“We are concerned that our biodiversity is under threat. The Green Revolution was touted as a success in Asia, but it also resulted in the complete destruction of indigenous plant varieties as hybrid rice and wheat were adopted wholesale. We don’t want that replicated here,” says Gathuru Mburu, co-ordinator of the African Biodiversity Network and Director of the Institute for Culture and Ecology. The coalition insists that it is not opposed to crop breeding, which they say has been taking place for ages in the country, but faults the breeding where farmers cannot replant the seed of the harvest and have to buy fresh seeds every season and chemical fertilizers. “It is trapping farmers in an expensive system — and making sure that people cannot freely share seeds as they have always done,” said Mburu. Statistics from Kenya’s Ministry of Agriculture show that almost 80 per cent of farmers plant with seed saved from the previous harvest, or obtained from community seed banks.

Sourced here:  http://www.farmbizafrica.com/index.php/hopemenu4/416-crop-breeding-and-patenting-threaten-future-planting

.

Related:

.

-     Feeding population vs market integration

-     Preserving indigenous seeds – Maintaining biodiversity

-     Agribusiness Silently Erodes Agriculture

-     Critics sow the seeds of doubt in divisive agricultural policy

-     Seeding Ethiopia’s Future Food Security

-     New highland maize varieties boosting production Hadiya Zone

-     China to look towards Africa for food items

-     COMESA seed registration law to be debated

-     CSO in Africa to Counter Corporatisation Agriculture

-     “No seed, no green revolution”

-     DuPont bets on Africa’s global food role with Pannar Seed deal

-     Obama’s Plan To End Hunger In Africa Is Really A Plan To Industrialize Agriculture

-     Opinion: African policymakers must reject seed colonialism

-     America’s GM Grain Surpluses: Sowing the Seeds of Famine in Ethiopia

-     Is Africa about to Lose the Right to Her Seed?

-     Government Announces Fertilizer And Seed Subsidy For 2013

-     Small seed packets, big policies tackle Horn of Africa drought

-     Seed banks great and small

.

.

Authority signs road project  contract agreements

.

The Ethiopian Road Authority (ERA) signed 6.5 billion birr three road project contract agreements with China Communications Construction Company Limited (CCCC), China Railway No.3 Engineering Group Co. Ltd of Ethiopia Branch and China Railway Seventh Group CO. LTD.

Speaking at the singing ceremony held at the ERA Head Office yesterday, Director General Zaid Wolde-Gebriel said that ERA signed a contact agreement with CCCC to design and build the Addis Ababa- Adama Toll Motorway Phase II, Lebu-Akaki- IT Park Outer Ring Road, with China Railway No.3 to build Gashena -Lalibela– Sekota Road, Contract-1: Gashena-Bilbala, and with China Railway Seventh Group to undertake the construction of Zagora- Gassay road projects.

The Director General said: “We have already completed three and half of the Five-year Growth and Transformation Plan ( GTP) progarmme. We are doing our level best. At this time ERA has accomplished about 62 per cent of the GTP in three years and six moths.”

He expressed conviction that these projects would be completed ahead of schedule.

CCCC representative Zhou Yongsheng on his part said that the Addis- Adama road project would be completed within two months time.

China No.3 Engineering Group General Manager, Zhao Sanbao said: “Lalibela is very important town and so is the road to local development. Our company would do its level best to mobilize more resource to complete the project on time.”

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5637-authority-signs-road-project-contract-agreements

.

Ethiopia, WB sign $110m financing agreement

.

.

Corporation confident of achieving 70 percent of its GTP

.

The Ethiopian Sugar Corporation is confident that it would achieve 70 per cent of its Growth and Transformation Plan (GTP).

The five-year GTP of the sugar sector eyes building 10 new sugar factories and raising nation’s average annual sugar production capacity to 2.25 million tons.

In order to attain the target, the Corporation is undertaking expansion projects on the existing sugar factories while it is constructing new sugar factories at various parts of the country.

After assessing its three years performance in the GTP, the Corporation is convinced that it would attain 70 per cent of the high case scenario in sugar development sector.

“The Corporation would achieve 70 percent of its GTP through commencing sugar production in seven of its factories under construction,” Corporation’s director general, Shiferaw Jarso, said while opening a meeting organized to evaluate this Ethiopian fiscal year’s 6th month performance of the Corporation. According to him, the first phase of Tendaho sugar factory is expected to enter production in the current Ethiopian budget year while the second phase of Tendaho, Beles 1 and 2, Kuraz 1, Kessem and Arjo Didessa sugar factories would commence production in 2007 E.C. Over 92,000 job opportunities would be created in the remaining two years of the GTP period, the director general said. On the other hand, Wolkit, Beles 3, as well as Kuraz 2 and sugar factories are expected to enter production in the first year of the second chapter GTP which is in 2008 E.C, he said. The Corporation has now reached a stage of saving the foreign currency the nation was using to import sugar and is eyeing to earn 376 million US dollars annually by starting export of sugar as of 2007 E.C. In addition to the sugar development, the Corporation is working to generate 197MW energy and produce 134,000 cubic meters of ethanol from the sugar factories by the end of the GTP period. Heads of the corporation, sugar factory and sugar projects are in attendance of the two-day meeting organized to evaluate 6th month performance of the Corporation.

http://www.waltainfo.com/index.php/editors-pick/12019-corporation-confident-of-achieving-70-percent-of-its-gtp-

.

Ethiopia working to harness 5.3 mln hectares irrigation potential

.

The Ministry of Water, Irrigation and Energy said it is striving to harness its massive 5.3 million hectares of irrigation potential.

The Ministry’s public relations and communication director, Bizuneh Tolcha told WIC that the government has given due attention to its irrigation potential which lacked policy and strategic direction two decades before.

Before 1992, not more than 61 thousand hectares of land were developed through irrigation schemes. A change in government and policy direction meant the sector witnessed a huge transformation. In just two decades, the country managed to develop over 298 thousand hectares of land through irrigation schemes.

By the end of the growth and transformation plan (GTP) in 2015, the country expects to harness 14.5 percent of its irrigation potential, a big leap compared to the 2009/10 budget year where the country managed to harness just 2.4 percent of its irrigation potential.

Bizuneh said the ministry is currently undertaking 15 irrigation development studies, design preparations and construction projects, out of which the ministry expects to finalize nine during the current budget year and four within the GTP period. The remaining two are expected to be finalized within two years after the end of the GTP.

http://www.waltainfo.com/index.php/explore/12017-ethiopia-working-to-harness-53-mln-hectares-irrigation-potential

.

Training provided for farmers to improve agricultural productivity

.

Training has been provided for more than 325,000 farmers in Arsi Zone of Oromia State in a bid to improve agricultural productivity, the Zonal Agriculture and Rural Development Office said.

Office Head, Gosa Tsegaye said recently that the training was focused on water and soil conservation, land management, irrigation development, input utilization and seedling care, among others.

The zone is undertaking various activities to improve agricultural production and productivity, he said.

Helping the farmers utilize better inputs, such as select seed, fertilizers and compost as well as modern technologies are among the measures the zone took.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5644-training-provided-for-farmers-to-improve-agricultural-productivity

.

ECAA expecting quality assurance certificate from FAA

.

The result of the International Aviation Safety Assessment conducted on the Ethiopian Civil Aviation Authority (ECAA) by the United State Federal Aviation Administration (FAA) is expected to be official soon, the Authority said.

Authority Director-General Wosenyeleh Hunegnaw (Col.) said that the Authority is expecting a quality assurance certificate from FAA based on the recent audit, which will enable the Ethiopian Airlines continue to fly to the U.S.

An FAA team of experts spent five days in Addis Ababa assessing the Authority’s working procedures and the qualifications of its experts.

FAA grants permits to airlines of a country to fly to the U.S. if the regulatory body of that country qualify the FAA audits.

Ethiopian Airlines started flying to the U.S in 1998 after ECAA was certified by the FAA as category one.

There are three categories of permits, category one means passing the audit without a remark. Countries in this category comply with the International Civil Aviation Organization’s operational safety standards.

Category two permit will enable airlines to fly with restrictions. The deficits should be rectified within a specific period. Airlines based in countries listed in category three will not be able to fly to the US.

If the regulatory body of a country fails to meet the requirements of FAA, all carriers based in that country will not be able to fly to the US.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5642-ecaa-expecting-quality-assurance-certificate-from-faa

.

Libya keen to re-establish ties with Ethiopia

.

The transitional government of Libya is desirous to re-establish the bilateral ties with Ethiopia, the visiting Libyan parliamentary delegation led by the Deputy Speaker Dr. Ezzidine Mohammed Al -Awami said.

While conferring with the Speaker of the House of Peoples’ Representatives Abadula Gemeda here last Wednesday, the Deputy Speaker said the transitional Libyan government is keen to re-establish the partnership with Ethiopia.

He also expressed his country’s keenness to work together with other African countries on peace and security issues.

The Speaker appreciated Ethiopia’s efforts exerted to build peace and stability in the region.

Speaker Abadula Gemeda on his part appreciated Libya’s willingness to renew ties with Ethiopia.

He affirmed that Ethiopia is willing to share its best practices on good governance and democratic system building to Libya.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5646-libya-keen-to-re-establish-ties-with-ethiopia

.

Commission steps up Nat’l Human Rights  Action Plan implementation

Finnish delegation, local stakeholders and media personnel discussing human right and democracy

The Ethiopian Human Rights Commission ( EHRC) says it is stepping up efforts in implementing the National Human Rights Action Plan in all federal and state governments’ organs.

Opening a half-day discussion on human rights and democracy yesterday, Commissioner Ambassador Tiruneh Zena informed Finnish delegation, local stakeholders and media personnel that EHRC is not only playing enormous role in the preparation and implementation of the first ever action plan of the commission, but also engaging in setting up the national human rights forum across the country.

As to the progress that has been achieved so far by EHRC, he noted that all federal and states have drawn their respective action plan in a bid to discharge their responsibilities and a steering committee has been established by the Prime Minister to oversee the implementation of the plan.

Citing the importance of getting involved all stakeholders such as governmental, non- governmental organizations, mass organizations, among others, he underlined that this huge organization would enhance awareness creation campaigns to eliminate harmful traditional practices like early marriage , FGM, polygamy and the like that still prevail in Ethiopia.

Regarding challenges encountered in implementing the national and international human rights law, Ambassador Tiruneh pointed out that disproportionate use of force, delay in bringing the suspect to the court, human rights abuses in some detention centres of the country and the like have been observed through monitoring practices of EHRC.

Finnish Ambassador Ms. Sirpa Maenpaa on her part said that her country would provide every assistance to Ethiopia in its endeavours of respecting and promoting universal and national human rights as well as creating democratic and accountable societies across the nation.

During the discussion, representatives of Federal Ethics and Anti-Corruption Commission, the Office of Ombudsman and others have briefed participants about their respective activities with regard to ensuring and protecting human rights to the delegation and a number of questions were raised in line with human trafficking, election, free use of media and others by the delegation.

The National Human Rights Action Plan was launched at a meeting held at UNECA last October.

http://www.ethpress.gov.et/herald/index.php/herald/news/5616-commission-steps-up-nat-l-human-rights-action-plan-implementation

.

Finnish delegation lauds nation’s commitment to improve citizens  well-being

.

Under-Secretary of State Anne Sipiläinen

Finnish high level decision-makers and opinion leaders visiting Ethiopia said they are very impressed with the government’s pro-poor investment.

At a reception held at the Ambassador’s residence in honour of the delegates yesterday, Under-Secretary of State Anne Sipiläinen said: “I am really impressed by what I saw in Bahir Dar as well as in Addis Ababa. The changes are positive because the government’s expenditure, the polices and programmes are all pro-poor.”

Girls and boys are going to school, the health situation is improving, access to clean water and sanitation is very high and then what is really important is young girls and boys are being educated better than earlier times as well as a lot of job opportunities for the youth, for instance in agribusiness, have been created, added Sipiläinen.

“I had never been out of Addis Ababa, but what I saw up North is wonderful. I am really impressed, it is so beautiful. I have been to Ethiopia many times and can tell the difference. Every time I am here, the change I am witnessing is amazing. The country ‘s potential to grow is huge. ”

“Ethiopia is an African power. And I believe it will be a very active player in regional as well as global politics. Finland values the country’s relations. Hence, our Prime Minster and a high-level delegation will visit Ethiopia soon.”

MP Riitta Myller also said: “Though it is only three days I am here, I am impressed with what I saw. Almost all children are going to school which is the basic for any country’s development. Access to health services, water and sanitation is also there. Finnish experts working in Ethiopia told me that the government budget gives priority to education and health care services. I also heard that there are big differences between city and rural schools.”

She said that the water and sanitation projects the delegation visited are doing well and witnessed that the communities are part and owners of the projects. It is not like somebody is giving them. It is rather they are making it but get some support, which is a very good idea.

“We visited the women shelter for Saudi returnees. It is sad that happened. But I appreciated what is being done to rehabilitate the returnees. ”

Durate Company CEO Kari Karppinen on his part said: “I am here representing the Finnish private sector. This is my first visit to Ethiopia and I am enjoying every minute of it. I didn’t expect to see this much hotel, transport and other construction to be going on.”

To have a rapid development you need infrastructure, education, conducive investment atmosphere as well as transparency, among others. Most of all quality of education. “I think the Ethiopian government understands that.”

The two countries have a lot of business opportunities. “We have an experience in manufacturing. I am actually convinced about the ample business opportunities here. There are several Finnish companies already here whom I can partner to enter the market.”

The 19-member delegation is comprised of parliamentarians, students leaders and journalists. The four-day visit is organized by the Ministry of Foreign Affairs of Finland with the aim to provide the delegation a comprehensive picture about Ethiopia and the opportunities and challenges it faces with the promising economic growth and challenging social problems.

The delegation had the chance to have a close look at grass-roots experiences and the conditions under which Finnish-funded programmes and projects are being carried out in Amhara State. They visited Amhara CoWASH, Tana Beles Watershed, REILA (Responsible and Innovative Land Administration in Ethiopia and Agro-BIG (Agro-Business Induced Growth) programmes as well as primary schools, trade and entrepreneurship schemes. In the capital, they met with key representatives of Human Rights Commission and discussed democracy, equality and equity situation in Ethiopia and also visited the AU.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5623-finnish-delegation-lauds-nation-s-commitment-to-improve-citizens-well-being

.

Investment booming  in Gondar

.

The investment is booming in various sectors, specially in hotel and service sector construction in Gondar

The favourable conditions created by the government added to its vicinity to Ethio-Sudan border, both local and foreign tourist inflow, investment, specially hotel and service sector are booming in the historical city of Gondar. To speedup the city’s all-round development, its administrators, developers, service sector and other stakeholders are working inexhaustibly and jointly to sustain its development, City Mayor Getnet Amare said .

In an exclusive interview with The Ethiopian Herald, Mayor Getnet said that 119 investors have received land from the city administration over the last three years. Some of the investors have entered production phase while some are under construction and some of them are at the initial stage.

Getnet further indicated that 84 investors have shown interest to engage in the manufacturing sector but are not provided land. According to him, the City Administration has reclaimed land from 71 investors who failed to launch their projects.

The City Administration prepares industrial zones paying compensations and laying the necessary infrastructure facilities, he said. “So far, it has facilitated and created conducive investment climate for investors to develop land according to their project proposals. Hence, the investment is booming in various sectors, specially in hotel and service sector construction, Mayor Getnet said.

So far, three industrial zones have been prepared. The fourth is identified and readied for use. As land is very expensive, the administration considers the investors’ land use proposal and early engagements whenever a request is submitted by investors.

Furthermore, most investors are engaged in milk and agro-progressing, plastic, detergent factories in the City.

Meanwhile, Getnet said the city is hosting the 4th Ethiopian Cultural Festival Week January 14 -17, 2014. ‘Timket’, Ethiopian Epiphany, which is one of the biggest and most fascinating annual holiday’s celebrations of the year in Ethiopia would ”also be celebrated January 19, 2014. Apart from its religious significance, ‘Timket’ has a great significance in attracting tourist from all over the world.

The modern city of Gondar is popular as a tourist destination for its many picturesque ruins in the Royal Enclosure, from which the Emperors once reigned. The most famous buildings in the city lie in the Royal Enclosure , which include Fasilides Castle, Iyasu’s Palace, Dawits’ Hall, a banqueting hall, stables, Mentewab’s Castle, a chancellery, library and three churches. Near the city lie Fasilides bath, home to an annual ceremony where it is blessed and then opened for bathing; the Qusquam complex built by Empress Mentewab, the 18th century Ras Michael Sehul’s Palace and the Debre Berhan Selassie Church.

Downtown Gondar shows the influence of the Italian occupation of the late 1930s. The main Piaza features shops, a cinema and other public buildings in a simplified Italian modern style still distinctively of the period dispute later changes and, frequently neglect villas and flats in the nearby quarter that once housed occupation officials and occupiers are also of interest.

Currently, its population has reached about 300,000 and administrated by 12 Sub-cities, a satellite town and 11 rural kebeles.

http://www.ethpress.gov.et/herald/index.php/herald/news/5629-investment-booming-in-gondar

.

Dry land food, water security project launched

.

World Vision Ethiopia and the World Agroforestry Centre yesterday launched a 15 million USD Food and Water Security project aimed at improving the livelihood of dry land community.

Speaking at the event, World Vision Ethiopia Director Margaret Schuler said that the five- year project will be implemented focusing the most vulnerable communities of Tigray and Rift valley areas.

“We are thrilled with this project because World Vision’s programmes are designed to improve the well being of children and strengthen household and community resilience.”

According to her, the project would focus on semi-arid regions of Ethiopia to transfer rural households from subsistence farming to sustainable rural development by increasing food and water security, better access to markets.

Speaking through his representative, Agriculture State Minister Sileshi Getahun said concerted efforts are being made in Ethiopia to expand watershed management and carry out effective water and moisture retaining works.

According to him, these efforts have significantly contributed to cope with the challenges of climate change. Sileshi also said taking the threats of climate change to its development, Ethiopia is implementing a green economy strategy.

“By implementing the green growth strategy, Ethiopia avoids locking in old technologies and ensure its economy grows in a sustainable manner.”

Sileshi further noted that the active involvement of development partners in the area of environmental protection has a long lasting effect. As part of this joint initiatives, programmes like Tree for Food Security, Africa Rising Sustainable Intensification of Trees are worth mentioning.

“The harmonization of new and ongoing development initiatives and projects into a comprehensive nation wide strategy will help in avoiding redundancy of activities and the misuse of resources,” he added.

Presenting his research, Dr. Denis Garrity, UN Dry lands Ambassador Distinguished Board Research Fellow, World Agroforestry Centre, indicated that the project will have a long term effect in selected areas to increase productivity of commercial staple crops, water use efficiency, decrease food dependency and increase the availability of nutritious food.

According to him, if proper action is taken, the African dry lands have a great investment potential.

The project is funded by the government of Netherlands via the General Directorate of International Cooperation (DGIS).

http://www.ethpress.gov.et/herald/index.php/herald/news/5617-dry-land-food-water-security-project-launched

.

Ethiopia,  Ghana sign General Cooperation Accord

.

-  The General Cooperation Agreement covers a wide range of political, economic and social spheres including foreignpolicy, trade, investment, agriculture, science and technology.

Foreign Minister Dr. Tedros Adhanom and his Ghanaian counterpart Mme. Hanna Tetteh signed a General Cooperation Agreement in Accra Monday.

According to the Ministry of Foreign Affairs, Dr. Tedros and his delegation arrived in Ghana Sunday on a working visit to strengthen Ethio-Ghana relations. The General Cooperation Agreement covers a wide range of political, economic and social spheres including foreign policy, trade, investment, agriculture, science and technology.

In a welcoming address, the Ghanaian Foreign Minister noted that Ethiopia and Ghana had pioneered continental unity in post-colonial Africa. She said the common positions taken by the two countries at the international arena had contributed to peace, security and conflict resolution.

Mme. Tetteh also underlined the need for focusing on areas of mutual interest and to share best practices. In this regard, she mentioned the Ethiopian Commodity Exchange which, she, said was a continental success story that Ghana is keen to learn from.

Dr. Tedros thanked Mme. Tetteh for the invitation to visit Ghana and for the hospitality he and his delegation had received. He recalled the fruitful discussions they had on the sidelines of the AU Summit in Addis Ababa during the 50th Anniversary celebrations of the OAU/AU and how those discussions had now led to the General Cooperation Agreement, and he underlined the importance of taking appropriate measures to implement the agreement.

Dr. Tedros also stressed the need for further action to take the agreement to a higher level and said the agreement should serve as a basis to form a Joint Ministerial Council and facilitate the engagement of the two country’s respective institutions. He said that he and his Ministry was ready to facilitate an experience sharing visit to have a look at Commodity Exchange operations.

Dr. Tedros also said that relations between the two countries was driven by their common desire to promote peace, security, stability and development in Africa.

On Monday, Dr. Tedros visited the Kwame Nkrumah Memorial Park and the burial ground of Former President John Ata Mills. He and his delegation were also driven to the Akosombo Hydro Electric plant inaugurated in 1966 to generate 500MW. Since then, it has been upgraded on several occasions and now generates 1,020MW.

On Monday evening, Foreign Minister Hanna Tetteh hosted a dinner in honour of Foreign Minister Dr. Tedros and his delegation.

http://www.ethpress.gov.et/herald/index.php/herald/news/5602-ethiopia-ghana-sign-general-cooperation-accord

.

Japan reaffirms fulfilling TICAD-V commitments

.

Japanese Prime Minister Shinzo Abe

Prime Minister Haile-Mariam Desalegn 

 Chairperson of the AU Commission – Dr. Nkosazana Dlamini Zuma

Japanese Prime Minister Shinzo Abe reiterated that his government, without fail, would carry out each and every one of the commitments made at Fifth Tokyo International Conference on Africa Development (TlCAD- V) which took place in Yokohama in June 2013.

During a visit to the African Union Headquarters yesterday, Prime Minister Abe said that through the entire TlCAD process, many Japanese have acquired a predisposition to conjure up images of Africa in bright colours and a considerable number of Japanese believe that Africa is the hope for Japan.

Pertaining to fostering Africa’s private sector development, Abe noted that in a bid to realize the continent’s brilliant future, within five years, Japan would double loan which currently stands at 1 billion USD .

Capitalizing on Kaizen approach, he underscored that it is a managerial technique for Africa to rediscover its indigenous state. In due course of time the Ethiopian Kaizen Institute would expand the content of its programmes and be launched as the first human resource development centre for business and industry in Africa.

“ If Africa interacts deeply with Japan and Japanese companies, it will surely be easy for it to leverage its original strength thus Africa will be able to acquire definite seeds towards the future,” he added.

With regards to Japan‘s diplomacy towards Africa, Prime Minister Abe indicated that the axis would focus on two groups: young people –who with no doubt will shoulder the responsibility for the future Africa – and women, who will give life to Africa’s future generations.

Japanese industrialization

Prime Minister Haile-Mariam Dessalegn on his part said that Africans have always looked with keen and deep interest at the industrialization of Japan. The strong link between education and industrialization in Japan has attracted African intellectuals since the early 20th century. He went on saying that one such scholar was the well-known Ethiopian author, Dr. Kebede Michael. He found the history of your country so interesting and relevant to developing countries like Ethiopia that he wrote in the early 1950s a book entitled The Modernization of Japan.

According to him, Dr. Kebede depicted the key elements of Japan’s development strategy and argued that countries like Ethiopia should learn from Japan and concentrate on basic education and technical training to build local technological capacity.

Chairperson of the AU Commission Dr. Nkosazana Dlamini Zuma also recalled that during the TICAD V meeting of June 2013, the Prime Minister promised to visit the continent, a sign that Japan values its relationship with Africa and recognizes its potential. “This potential is expressed in the continent’s over one billion people, the majority of whom are youth and women, as well as its abundant natural resources in the form of land, water, forests and oceanic resources.”

She said during the occasion of the 50 th Anniversary of the OAU/AU in 2013, Africa committed to speed up investment in people, science, technology, research and innovation and infrastructure; and to benefit natural and mineral resources, and to invest in agriculture and agri-businesses.

Japan plays an important role in global affairs, as an example of how a country can develop, using its most precious resource, which is its people, she said. “In its relations with Africa, we cooperate on human resource development, in particular the generous support Japan gives to the Pan African University,” the Chairperson said.

Press briefing

Meanwhile, Abe told journalists: “50 years ago, Athlete Abebe Bikila come over to Tokyo all the way for Africa where in the Tokyo Olympics and he achieved two consecutive victories which no-one a person has accomplished. Here we are half a century later Africa is no longer somewhere far away. African countries are about to blossom the world greatest potential as we speak. Africa has really changed not only in sport but other aspects such as culture and economy and other aspects.”

The Prime Minister also said: “Japan is here in Africa in protecting the environment, creating industries, developing human resources not only to access resources but to be as a partner to grow together with Africa for the future and this is the Japan way also here in Ethiopia.”

Abe pointed out that Ethiopia and Japan have more than 80 years historical relations. “Recently, Ethiopia has been enjoying a spectacular growth close to 10 per cent and it is in the process of rapid development,” Abe added.

He further pointed out that Japan would like to transfer some know-how working together with Africa and this would lead to a bright future for the continent as well. In addition, Japan contributes to regional and world peace and stability as well.

Regarding the South Sudanese conflict, Abe said that his country is pleased with the mediation by neighbouring states including Ethiopia and hopes this effort should be supported and Japan is ready to provide additional assistance. “We are preparing and continue to undertake the initiative to uphold the efforts of all the African themselves to bring about peace and stability in the continent.”

Prime Minister Abe reaffirmed that Japan would continue to assist in Ethiopia’s development endeavours, sharing experiences through the Ethio-Japan Industrial Policy Dialogue.

The Japanese Prime Minister paid a two -day official visit to Ethiopia as a part of his week- long visit to Africa and Middle East.

http://www.ethpress.gov.et/herald/index.php/herald/news/5601-japan-reaffirms-fulfilling-ticad-v-commitments

.

Italian business delegation hold talks with Ethiopian counterparts

.

A delegation of Italian business persons held talks with Ethiopian counterparts here last Wednesday.

During the occasion ,the Ethiopian Chamber of Commerce and Sectoral Associations Secretary General Gashaw Debebe said the prevailing conducive investment atmosphere is attracting more Italian companies to Ethiopia.

The number of Italian companies investing in Ethiopia is increasing, he said, adding, the Ethiopian Embassy in Rome is contributing quite a lot in this regard.

The trade relation between the two countries has also increased, he said.

He said the trade flow between the two countries has reached 391 million USD in 2011.

The Italian companies that are visiting the country are desirous to invest in various sectors in Ethiopia, delegation leader Gerardo Mario said.

He said they are interested to invest in manufacturing, leather and leather products, textiles, exploration of mines and agro-processing areas.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5641-italian-business-delegation-hold-talks-with-ethiopian-counterparts

.

 First National Model MSEs Exhibition opens in Addis Ababa

.

The First National Model Micro and Small Enterprises Exhibition and Bazaar was opened yesterday in Addis Ababa, Ethiopia, The Ethiopian Herald reported.

The objective of the expo is to create market link and share experiences among federal and state micro and small enterprises, according to the paper.

Over 168 model micro and small enterprises from Southern Nations, Nationalities and Peoples, Tigray, Oromia Amhara, Harari regional states and Addis Ababa and Dire Dawa city administrations are participating in the event.

Artifacts, agro-processing products, designs, textile products, beverages, consumer products, wood and metalworks are on display at the six-day exhibition.

The exhibition and bazaar was organized by the Federal Micro and Small Enterprises Development Agency.

http://www.2merkato.com/news/alerts/2802-ethiopia-first-national-model-mses-exhibition-opens-in-addis-ababa

.

Can agriculturally-based direct foreign investment promote sustainable development? A review  of African cases

.

Three-quarters of the world’s population living below the $2 per day poverty line not only live in rural areas but also depend on agriculture for their survival. Given such global poverty, it is sad to note that the Official Development Assistance (ODA) given by foreign governments and international financial institutions, particularly for the agricultural sector of the developing countries, have declined by almost 70 percent between 1970 and 2007. More recently, due to expectations of rising food prices, demand for biomass for energy use, and the agricultural commodities needed for industry, the inflow of Foreign Direct Investments (FDI) for agriculture in developing countries has increased substantially. More particularly, private investors from industrialized and emerging countries have become very active in using long-term leases to secure large areas of agricultural land (also known as land grabbing, which has also led to water grabbing) in Africa.

An analysis of the existing literature indicates that two contrasting perspectives, through which investigators tend to view agriculturally-based investment in developing countries, are emerging. Optimists tend to put a premium on foreign investors as a vehicle for promoting infrastructure, environmentally sound technologies and who contribute to spillover effects on local economies of developing countries. Pessimists on the other hand argue that agriculturally-based foreign investments are exploitative and give little benefit to local populations. More specifically they argue that large-scale foreign industrial agriculture not only victimizes pastoralists and small scale farmers in developing countries, but also severely degrades the quality of topsoil, damages local waterways and ecosystems as a result of using detrimental fertilizers and intensive farming techniques.

The issue is not whether or not FDI is on board. What is crucial from a policy-making point of view is whether or not FDI agricultural projects are meeting the sustainable developmental needs of the developing countries. Based on these assumptions, the purpose of the study was to review the literature and establish the effects of agriculturally-based foreign direct investment on sustainable development in some African countries. A review of the literature indicates from a socio-economic perspective that FDI in nine African countries not only created manual jobs at a very low rate but also the foreign investors have diversified the agricultural production by introducing new mono-crop varieties.

In addition, some investing companies have operated more efficiently than domestic companies in terms of asset utilization. Environmentally, the export earnings of the African case studies have increased because the investors added values with the dissemination of technology to produce more efficient, safe and clean products. On the other hand, the FDI in agriculture have rented the land to large cooperatives at a very low rate so that the local people have lost access to resources such as land, water, wood, medicinal plants and the common areas that were used for grazing. The natives were pushed from higher-value lands into marginal lands. The compensation given to the displaced villagers was insufficient to restore livelihoods lost due to dislocation. The land under FDI contributed to loss of a critical biodiversity and the local people living adjacent to foreign leased lands have been contaminated by all forms of pesticide, herbicide, and chemical fertilizer filtering into the ground water. Thus, to ensure that the investors’ agricultural production practices are in line with the goals of sustainable development as designed by the host country, a well-planned, transparent assessment structure needs to be mapped out by both the host country and investing company.

  (Taken from a study abstract which was published)

http://www.ethpress.gov.et/herald/index.php/herald/development/5612-can-agriculturally-based-direct-foreign-investment-promote-sustainable-development-a-review-of-african-cases

.

Belarusian Amb. Presents credentials to Amb. Berhane

.

.

Land bill endorsed after record debate

.

The House of Peoples’ Representatives (HPR), on Thursday, finally endorsed the land bill, almost eight months after it was first presented to the House.

Machinery’s role in an environmentally sustainable future is one of the issues covered in the publication.

-  New book turns critical eye on the mechanization of the world’s fields