Featherstone: G8 land deal to boost land rights in Ethiopia
On Dec 09, the Governments of Ethiopia, the United States of America, the United Kingdom, and the Federal Republic of Germany announced agreeing to enter a land country partnership to work together to improve rural land governance for economic growth and to protect the land rights of local citizens in Ethiopia.
This partnership builds on existing programs and represents an important vehicle for increased coordination and collaboration among the Government of Ethiopia and its development partners. The announcement came after the representatives of the heads of state from G8 member states gathered in London to mark the handing over of the G8 Presidency from the United Kingdom to Russia.
The partnership with Ethiopia will support improved rural land tenure security for all, including through appropriate land use management in communal and pastoral areas. It will strengthen transparency in land governance, including by promoting responsible agricultural investment through an improved legal framework and practices.
Speaking for the UK, International Development Minister Lynne Featherstone said:
“I welcome this announcement that the Governments of Ethiopia, the United States, Germany and the United Kingdom are entering a land country partnership.
“Having secure rights to land will help people across Ethiopia to grow the food they need, boost incomes, defuse conflicts and deal with the impact of climate change. This joint partnership will make sure Ethiopia can make the most of its valuable resources and attract the investment and income needed to boost growth and fight poverty.”
Ethiopia’s Minister of Agriculture Tefera Derbew said:
‘’The Ministry of Agriculture of Federal Democratic Republic of Ethiopia welcomes this joint partnership in the context of supporting the implementation of Ethiopia’s Rural Land Administration and Use plan under its policy and strategic frameworks. It will help the country to ensure and sustain its economic development by strengthening rural land governance in view of fostering food security and realising constitutionally recognised rural land related rights of Nations, Nationalities and People of Ethiopia. I hope the current harmonisation, co-ordination and alignment mechanisms of Rural Economic Development and Food Security Working group (RED-FS SWG) and Sustainable Land Management Platforms will serve as an engine to further deepen our joint partnership on rural land.’’ German Federal Minister for Economic Cooperation and Development Dirk Niebel said in Berlin:
“Germany highly welcomes this partnership between our four Governments that will contribute to better land management in Ethiopia, thus promoting transparent, fair and sustainable investments in land. Access to land and land tenure security are crucial for food and income security for the rural population in Ethiopia. This partnership will complement and strengthen the Government of Ethiopia’s efforts in the sustainable land management program to which Germany has been committed for years. This partnership also shows that the G8 is delivering upon its commitments promptly and with a view to the needs and priorities of our partners.”
U.S. Agency for International Development (USAID) Administrator Dr. Rajiv Shah said in Washington:
“We welcome this joint partnership in the context of the G8 and congratulate the Government of Ethiopia on redoubling its dedication to achieving improved land governance and land tenure security for all. The Government of Ethiopia has made great progress in recognizing the rights of smallholder farmers with support from USAID, and we look forward to broadening and deepening this collaboration in the country’s pastoral areas.”
This follows the announcement of seven partnerships made last June at the G8 Open for Growth Summit. These partnerships between G8 member states and developing countries are designed to support governments in aligning their country frameworks with the globally agreed-upon Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries, and Forests in the Context of National Food Security and to improve rural land governance and the security of land tenure for individuals, communities, and investors.
The partnership represents the continuation of the commitments made under the New Alliance for Food Security and Nutrition, an effort by African heads of state, corporate leaders and G8 members to increase food security and nutrition in sub-Saharan Africa, and takes note of theAfrican Union Declaration on Land Issues and Challenges.It will also coordinate and harmonize support from existing and potential new development partners in the land sector. These objectives will be achieved through ongoing and potential additional future programs in support of improved rural land governance.
The partnership will enable better collaboration, coordination, and sustainable impact. This will be achieved under the on-going RED-FS Working group and Sustainbable Land Management Platforms. Further details on the partnership will also be communicated over the course of the next year through the G8 and the Global Donor Working Group on Land, which was recently established by bilateral and multilateral donors to improve coordination of their respective efforts in the rural land sector.
http://addisstandard.com/featherstone-g8-land-deal-to-boost-land-rights-in-ethiopia/
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GRD construction well in progress
Written by ABEBECH TAMENE
The construction of the Grand Ethiopian Renaissance Dam (GRD) is well in progress through well-organized integrated efforts, Project Manager Engineer Simegnew Bekele said.
Eng. Simegnew said in a recent interview that progressive performance is seen on main civil works, electromechanical and hydraulic steel structure as well as transmission and sub-station works. He said currently construction of two power houses is underway for the Dam.
Eng. Simegnew said filling concrete as well as soil and rock excavation is in progress at the main Dam while civil and steel structure work is being undertaken to divert the river permanently using four culverts.
Building of two steel manufacturing factories meant to supply steel for construction of the Dam is also well underway, he said, adding, one of the factories has already gone operational while work on the remaining one is nearing completion.
The factories have capacity to produce 12,500 cubic meters steel per day.
The workforce on the construction of the Dam has reached 6,500 while 1,700 different types of machinery deployed for the same purpose, the Manager said.
National Council on the Coordination of Public Mobilization for Dam construction Deputy Director-General of the Office Zadig Abraha on his part said agreement is signed for construction of 400kV transmission line covering 240km stretching from Tana Beles Dam to the GRD.
Zadig said farmers in the areas contributed labour support valued at nearly 35.7 billion birr in natural resource conservation activities carried out in 2004/2005E.C.
A total of about 5.7 billion birr was secured from bond sale for construction of the Dam, he said. The top performers in buying bond are salaried government employees, he said.
The project site lies at Guba in Beneshangul- Gumuz State approximately 750km northwest of Addis Ababa. It will increase the power generation capacity of the country and strengthen the power export program. The late Prime Minister Meles Zenawi laid foundation stone for the Dam on April 2, 2011. Ethiopia covers the entire cost for construction of the Dam, which will be the largest hydroelectric plant in Africa, when it becomes completed.
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Furthering bilateral development ties to a new level high
Written by SAMUEL ALEMU
Growing relationship between the two sisterly nations
“Russia and Ethiopia are two sisterly countries that have enjoyed long-standing and amicable relationship. As part of the effort to further strengthening this relationship the two governments have been working together on ways of increasing the level of cooperation in the areas of economic, scientific, technical and trade relations, according to Co-Chair of the Ethiopia-Russian Intergovernmental Commission (IGC) and Minister of Water, Irrigation and Energy, Alemayehu Tegenu.
The Fourth IGC meeting of the two countries was held here in Addis Ababa from the 26th to 28th February 2013, where reviews of the bilateral activities in various sectors were concluded by indicating the way forward to further strengthen the relationships. Recently, a follow up meeting was held preceded by a two-day technical experts meeting from the two nations. During the meeting progress of implementation initiatives and prior agreements was made, and recommendations were made to explore and initiate new possibilities for new areas of cooperation, and also seal concrete agreements that will take the bilateral relationship to new heights.
Speaking at the recent meeting which was held at Hilton Addis, Alemayehu remarked, “ We are here to take stock of the progresses made so far in the implementation of agreements reached previously in major areas of cooperation spanning to wider fields of interests, and to find ways of speeding up the process where progress has been slow.”
He explained that IGC had helped to take stock of the progresses in bilateral cooperation so far, to identify areas that needed continued efforts and interventions, as well as new potential for future cooperation. Progresses have already been made in cooperation particularly in the areas of science and technology, education, transport, tourism and culture sectors and in relation to that communications and discussions are going on between relevant institutions from both countries, which hopefully will lead to more forthcoming agreements that will strengthen the relationships, according to the Minister.
Presently, the government of Ethiopia is in the middle of executing the five year Growth and Transformation Plan (GTP) covering the period 2011-2015, and which has set out targets that will see the socio-economic transformation of Ethiopia. The plan calls for a substantial increase in infrastructure building, growth in various sectors like agriculture, industry, mining, export trade, rapid and universal expansion of vital services like education and health, Alemayehu noted. “It is thus with great expectation that we see the growth of our bilateral cooperation contributing towards the achievement of our GTP goals. Ethiopia would like to see continuing results and outcomes that are mutually beneficial,” Alemayehu said.
In this respect, Ethiopia’s expectations are that the two countries take measures aiming at further strengthening ties in trade and investment, according to the Minister. “ In this respect Ethiopia highly appreciates the support given by Russian partners in terms of expanding trade opportunities, finance, technical and scientific know how and capacity building and growing Russian investments in Ethiopia, all of which are helping Ethiopia in its development in the not-too-distant future, he noted.
Ethiopia realizes the fact that the potential for cooperation between two countries is vast and lends more opportunities for both sides, way beyond the current level.
Although the overall trade turnover has grown on average by 46.84 per cent a year since 2006 to reach 145 million USD in 2012, it accounted for only 0.52 per cent of export and 1.12 per cent of import trade of Ethiopia in 2012, with Ethiopia’s imports accounting for the lion’s share of the trade.
Therefore future, collaborations between the two countries will need to focus on increasing and balancing the volume of trade and, promoting trade and investment in Ethiopia, especially in areas of high priority and also look forward to seeing mutual cooperation in the fields of agriculture, geology and mineral resources, water and energy, science, health and tourism bringing even greater win-win results, Alemayehu Tegenu indicated.
He also pointed out that in this context regular meetings of the Intergovernmental Commission are held as part of the framework to help advance the cooperation in important sectors.
In view of this the Ethiopia-Russian Intergovernmental Commission on Economic, Scientific, Technical and Trade Cooperation signed Memorandum of Understanding (MoU) to improve the services provided by the Ethiopian Electric Power Corporation and with the Ministry of Health.
Ethiopian Electric Power Corporation Chief Executive Officer, Mihiret Debebe noted on the occasion that the signed MoU will help to rehabilitate the 153MW Melka Wakena Hydro Electric Power plant which went operational 25 years ago in, 1988. By then, the project was financed by the then Soviet Union and went into operation with technical support in terms of design, construction and supply.
Mihret also indicated that the power plant requires innovation in terms of technology and upgrading capacity. Accordingly, the Russian stated-owned group will work with its Ethiopian counterpart to undertake the technical study, assessment, and provide supports of financial and other aspects. Then in a few months time, they will come up with technical and financial proposal in financing scheme based on the decision to be made after the negotiation of the two parties and government level decision. There up on, MoU will transfer into implementation phase.
As the part of holistic hydro electric development, he said, the Russian group had shown interest to be engaged in big scale hydro electric power development. Russia was one of the leading countries for the past decades in all aspects of hydro electric power engineering.
State Minister of Health, Dr. Amir Aman on his part said that the MoU signed with Russia will have significant contribution in prevention and control of communicable diseases, with strengthened collaboration in pharmaceutical issues such as in drug, medical equipment and other related issues. It will also enable to work together in the areas of reducing maternal and child mortality through the provision of support aiming at filling knowledge gaps in short and long term training.
Deputy Minister Ministry of Natural Resources and Environment and Head of the Federal Agency for Mineral Resources of the Russian Federation, Valery Pak, on his part said that the implementation of bilateral agreements in the electrical and engineering was strategically important.
Alemayehu expressed commitment on the side of Ethiopia to continue working tirelessly in the coming weeks and months for the realization of the various agreements, decisions and recommendations made during the meeting.
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Ethiopia: Building the base for green diplomacy
For centuries, the relationships of nations and peoples have been blooded and reddened by their disputes over religion, ideology, territory or other competing interests. They have made the planet a stage for the dramatization of conflict and war. Today, however, the more important areas of hostility lie in the relationship between humanity and nature as climate change has become the major issue of world affairs bringing some areas to the brink of apocalypse. Africa is one of the most affected regions, and Ethiopia, in the often drought-affected Horn of Africa is no exception. Global warming in fact has provided an additional dimension to the problems of the region, and in response Ethiopia, together with other stakeholders, has launched the concept of green diplomacy to encourage adaptation and mitigation of the effects of climate change and try to bring renewed harmony between nature and humanity.
Ethiopia’s commitment to promoting the interest of humanity long pre-dates the more recent frenzies over the effects of climate change. A long time member of the League of Nations and a founded member of the United Nations, Emperor Haile-Silassie encouraged the country’s diplomats to wage diplomatic battles for peace and security, strongly supporting the concept of moral consensus of collective security to prevent further conflict. In a similar fashion, the late Prime Minister, Meles Zenawi, was a vigorous spokesperson for Africa and for the world, speaking strongly about the current catastrophe of global warming, proposing inter alia a new pattern of international relations. This is to be based on cooperation and coordination to tackle the challenges now facing the continent. It was also intended to demonstrate that Africa could be an equal partner in the war to overcome the problems of global warming: “We are here not as victims of the past but as stakeholders of the future reaching out across continents, so that together we can build a better and fairer future for all of us,” he remarked in Copenhagen Climate Change Conference in 2009.
Ethiopia itself has now set out an unprecedented course, aiming to surmount the summit of ecological development, to create a vibrant society on the basis of sustainable green ecosystem. It is not a traditional economic model but a new one based on ‘green’ development. It will deploy the usual elements of ’green’ development, but in addition it will also deploy new factors including the concept of ‘green’ diplomacy as part of its ‘green growth architecture’. This all part of what can be described as a ‘green’ revolution intended to make development and the environment properly sustainable.
A central element in this is the Government’s Climate Resilient Green Economic Strategy, a carefully crafted strategy that is designed to be emulated by other nations, both in Africa and elsewhere, to provide for the building of a properly resilient world to tackle the repercussions of global warming. As this strategy is being translated into action, Ethiopia is abandoning traditional development strategies characterized by carbon intensification and environmental degradation. In Ethiopia, the lilies of green development are blooming as the country starts to ‘green’ its social, economic and political transformation.
The strategy involves activity on a number of levels, providing the instruments and institutions to push forward policies to impede and overcome the threat of ecological collapse. The Climate Resilient Green Economy Facility, for example, will help the Government achieve a middle income economy with carbon-neutral growth by 2025. It is specifically designed to welcome environmental friendly projects, organizations and individuals. Another fundamental factor is the way Ethiopian farmers are working to tame nature by re-establishing their relationship with the natural systems of the weather and the seasons. Having experienced the extremes of drought, degradation and famine, they are now working on a large scale to restore the country’s ecological capital, including its forests, its wetlands, and its grasslands. The aim is to heal the damaged natural systems to restore their economic and environmental health. Well aware that the ecological destruction of the planet threatens to make political, economic, and social activities unsustainable, they are demonstrating to the world that they are rebuilding a sustainable future for the children of tomorrow. Their actions to protect the environment underline the importance of reversing the destructive policies of today.
Another central element in these developments is the way Ethiopia is beginning to utilize its water, wind, solar, and geothermal energy assets and, equally important, to share these with its neighbours in order to bring a halt to the ecological destruction of the region. This is being done in cooperation on the basis of win-win remedies aiming to heal the environment and to sustain social, economic, and cultural integration. This approach was strongly emphasized by Prime Minister Haile-Mariam who has stressed that his vision is that “over the next 30 years, we will need to harness as much as 80,000mw of hydro, geothermal, wind, and solar power, not just for Ethiopia, but for our neighbouring countries as well.” He underlined the point that Ethiopia’s green growth strategy is not only confined to Ethiopia. It is also intended to help save the peoples of the IGAD region from the menace of ecological collapse by defying traditional attitudes of national ‘selfishness’. In other words the values of environmental development are being used to mitigate and deal with the effects of ecological collapse and social disintegration.
Ethiopia is diversifying its energy resources by tapping the potentials of geothermal, solar and wind power as well as bio-fuel production. The large scale hydro projects like Tana Beles, Gilgel Gibe and the Grand Ethiopian Renaissance Dam; the Adama and Ashegoda wind farms; the biofuel development program; and other projects, make up the crucial base for a clean energy programme to promote a fundamental eco-societal relationship in partnership with neighbours to reduce carbon emissions. Importantly, these renewable energy resources will be instrumental to the country as it enters into the planned extensive industrialization programmes by generating a multitude of green jobs for youth. It is not just neighbours which are involved.
Ethiopia is cooperating with international organizations to bring about this ‘green’ economic transformation. The UK’s DFID is ready to help finance Ethiopia’s plans to build a Climate Resilient Green Economy by 2025, and is supporting the idea of knowledge transfer in renewable energy technologies to advance the ‘g5.997reen’ economic transformation. Indeed, the construction of renewable energy projects is providing a ‘green’ diplomatic card in support of “collaborative agreements and regimes to place effective limits on human action.” It is all part of creating an international order to save the planet from the scourge of environmental destruction.
Again, Ethiopia was too instrumental at the UN Climate Change Conference in Copenhagen in proposing a finance deal with the developed nations to mitigate the impact of climate change on poor countries and pursue a carbon-neutral growth. In this regard, the late Prime Minister assiduously made the calculus on how to adapt the debilitating effects of global warming with the partnership of rich countries by exerting his utmost efforts on the establishment of Copenhagen Green Climate Fund and, perhaps, Africa Green Fund. This succinctly shows how Ethiopia was dedicated for the success Copenhagen accord that, in turn, paved the way for Cancun and Doha Climate Summits. It is meant that Ethiopia has had unswerving stance in establishing a ground for green diplomatic negotiation and discussions. Lastly, it is devoted to promoting bilateral relations so as to the fight against global warming. For instance, it has recently engaged in cooperation with US, Iceland, UK, France, Norway, and multilateral institutions like AfDB and WB to increase renewable energy production, including geothermal, wind, hydro and solar energy.
Ethiopia’s paradigm shift from traditional development models to green development ones is a critical and timely choice for this century, doing justice to the necessity to help provide for sustainable development which alone can save the world from the danger of climate change. ‘Green’ development strategies promote ‘green’ jobs and clean energy services as well as regional integration, providing for peace and stability. In the longer term, we can be sure the ‘green’ development of Ethiopia will persuade others to copy the model and improve their environmental performance. In the same way, we can be equally certain that ‘green’ diplomacy, a weapon to win over the hearts and minds of others, can also produce the required changes for sustainability in international relations.
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Ethiopian Renaissance Development Exhibition, National Symposium open
The exhibition is an opportune platform where all states learn from one another especially the development progress they are registering.
Written by SAMUEL TAYE
As part of the 8th Nations, Nationalities and Peoples’ Day, the Ethiopian Renaissance Development Exhibition and National Symposium were officially opened here yesterday.
At the opening ceremony, House of Federation Speaker Kassa Tekle-Berhan said that the overriding objective of the exhibition is to assess the level of development activities so far thereby getting lesson from it for further improvement.
“The economic, social and political progress we are experiencing today is all the fruit of our Constitution which has provided us with opportunities to battle against our deep-rooted socio-economic and other related national problems. Thus, we are gradually bringing about comprehensive development, sustainable peace and togetherness,” he said.
He further noted that the exhibition is an opportune platform where all states learn from one another especially the development progress they are registering. It is also an event that each state government could acquire experience for improvement next year, he added.
Somali State Chief Abdi Mohammed on his part said that the exhibition would create a sense of development competition among state governments and provide a platform to share experiences. “Besides, it offers opportunity to all of us to enhance production and productivity year-in-year-out,” he added.
All the nine states and the two City administrations Addis Ababa and Dire Dawa displayed their respective progress in various development sectors.
A national symposium is also underway in which two papers entitled ‘History of Ethiopian Somali and Ethiopian Constitution’ and ‘Ethiopian Constitution and Benefit of Somali People’ were presented. Extensive discussion was held on the two papers under the chairmanship of Speaker of House of People’s Representatives Abadula Gemeda.
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Processors can bypass ECX to buy commodities
The Ministry of Trade is drafting a new law that allows processors to buy selected commodities, in places other than the Ethiopian Commodity Exchange (ECX).
Reliable sources at the Ministry told Capital that the Ministry is drafting a law giving permission to processors who add value to products (like haricot beans and sesame) to buy those products outside of the ECX .
Sources said that the law would allow three products, including those stated, to be purchased outside, whereas in the past these commodities were only available through the ECX.
According to the sources, the new law was drafted by the Prime Minister in order to alleviate quality and product shortages.
“The main aim of the law is to give the opportunity for processors to get quality products that are not blended with other types of similar products,” sources said.
The new law will allow the traders to get the product directly from farmers rather than purchase them through the Exchange.
Previously processors have complained that they could not get quality or unblended products since products were by law exclusively traded at the Exchange.
ECX officially launched in 2008 with agricultural commodities is currently trading coffee, sesame, and haricot beans exclusively and it is also trading other agricultural products like wheat and maize.
According to sources, the law will be applicable only to processors, while other trading actors at the ECX, like exporters, must continue to use the trading floor to buy these products.
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Cooperative Bank of Oromia registers robust growth
Cooperative Bank of Oromia (CBO) continues to profit and grow as they announced plans to reach 86 branches this fiscal year.
Established in October 2004 with 300 million birr of authorized capital, CBO held its general assembly at Galma Aba Gadda in Adama on Saturday November 30 and announced that they made a gross profit of 267 million birr. Abera Deressa (PhD), the board chairperson, told shareholders that despite the fact that the global economy has yet to shake off the economic crisis, Africa and Ethiopia are still enjoying economic prosperity. “Global growth dropped to almost three percent in this past year, which indicates that about a half a percentage point has been shoved off the long-term trend since the crisis emerged,” he said. “Yet, economic conditions in sub-Saharan Africa have remained generally robust against the backdrop of a sluggish global economy,” he said. The Chairperson said that the macro-economic performance of Ethiopia is still performing spectacularly, with the economy growing at twice the rate as that of the African Continent as a whole. “This condition has helped banks to benefit despite some challenges, like the underperformance of export earnings due to low coffee prices,” he said. Abera said the bank performed soundly in both financial and non-financial activities despite such challenges., “The bank registered admirable steps forward in all major areas including: assets, deposits, capital, profitability, and market expansion,”.
According to his report, the number of customer accounts grew 47.5 percent during this past fiscal year. Likewise, the deposit balance grew by nearly 60 percent to reach 4.47 billion birr. The annual report also shows a gross profit of 267 million birr, a 90.7 percent increase from the previous fiscal year, in which gross profit was close to 140 million birr. The total assets of the bank increased by 78.07 percent to 6.54 billion birr from the preceding fiscal year, in which assets were only 3.67 billion birr, according to the annual report. The bank’s total outstanding loans during this fiscal year increased to 2.12 billion birr from 1.38 billion birr at the end of the previous fiscal year, according to the same report. Earnings per share of the bank during the same period stood at 52 birr for 100 birr investment, while the dividend was 38 birr. Wondimagegnehu Negera, President of the bank, attributed the bank’s incredible performance to a considerable liquidity position, a good reputation and growing base of loyal clients, strong fund management practices, improved corporate governance and culture, enhanced staff efficiency and productivity, strong business linkages with potential exporters and importers, improved customer service delivery and a strong bond with development partners and foreign banks. The president also said that his bank has made significant investments in its infrastructure and plans to continue investing in new technology in order to improve its efficiency.
At the end of the assembly, most of the shareholders expressed their satisfaction at the bank’s performance and their respect for the board and the management team. “I almost forgot about my shares in the bank a couple of years ago,” said one shareholder who opted for anonymity. “The bank’s performance was terrible and everybody I know felt the same as I did because of that,” he told Capital. “But this management team came and revived the bank as well as our hope in our investment.” Most of the people Capital talked to appreciated both the management and the board, especially the president. “I hope he will further transform the bank,” another shareholder told Capital.
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Tullow Oil Abandons Dry Well in Ethiopia
Tullow Oil has today said that it will stop drilling for oil reserves at the Tultule-1 wildcat well in the South Omo onshore block in Ethiopia after failing to strike oil despite reaching a 2,101 metre depth.
The oil drilling firm said that recorded gas in the course of drilling point to the presence of a hydrocarbon source in the region. However, this result which was found in another drilling site, the Sabisa-1 well will be analysed to determine the future exploration campaign for the area.
The company said that focus will now shift to Chew Bahir basin still in Ethiopia to drill the Shimela prospect. Tullow Oil also added that significant exploration activities continue in Kenya with the Amosing-1 well currently drilling and the Ewoi-1 well expected to start by the end of the year.
http://www.the-star.co.ke/news/article-146692/tullow-oil-abandons-dry-well-ethiopia
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Ethiopia: Tullow Oil to Conduct Well Testing
The British Oil company that is prospecting for oil in South Omo basin in South Ethiopia, Tullow Oil, is to conduct well testing in the second oil exploration well named Tultule-1.
Tullow Oil started drilling Tultule1 last September. Reliable sources told The Reporter that the drilling crew had reached the targeted depth. Sources said the drilling crew will soon conduct well testing in Tultule-1 that will enable them determine if there is oil in the well. According to sources, the company expects a positive result from Tultule-1. However, it will take some time to announce the result of the well test.
Early this year, Tullow drilled a wild cat well (the first exploration well) dubbed Sabisa-1 in South Omo near the Kenyan border which demonstrated oil and gas shows. In a report issued last July the company stated that the Sabisa-1 well confirmed a viable hydrocarbon system in the region. According to Tullow, the well was drilled on the South Omo Block in Ethiopia in the northern portion of the Turkana Basin, over 300 kilometers north of the Ngamia and Twiga discoveries in Kenya, to a total depth of 2082 meters. The company said the well encountered reservoir quality sands, oil shows and heavy gas shows indicating an oil prone source rock and a thick shale section which should provide good seals for the numerous fault bounded traps identified in the basin.
Based on the encouraging result of Sabisa-1, a decision was made to drill the nearby Tultule, 4 kilometers to the east. A Polish company subcontracted by Tullow, OGEC, is drilling the exploration well. Tullow said numerous additional follow-up prospects have been mapped in this part of the South Omo Block and in the adjacent Chew Bahir Basin. Encouraging seismic data had been collected from Chew Bahir.
The other UK company that is prospecting for oil in the Ogaden basin, New Age, is expediting work on a well-drilling project in the Elkuran locality. The company is drilling an appraisal well in the Ogaden basin, Elkuran locality.
New Age had encountered a technical problem on the drilling rig when it was about to start drilling the appraisal well last September. The company was supposed to start the drilling in September. However, after erecting its drilling rig at the drilling site, New Age’s drilling crew identified a technical problem on the rig. Reliable sources told The Reporter that the crew repaired the rig and started the drilling early October.
The depth of the well is estimated at 2800 meters and it will take three months to reach the targeted depth. Well testing will be conducted to determine the presence of oil and the amount of the deposit found in the region.
New Age (African Global Energy) Limited works in the Ogaden basin Block 7, 8 and the Adigala concessions with its partner, Africa Oil, the Canadian oil firm. New Age (the operator) and Africa Oil selected the drilling site in the El Kuran locality to drill the appraisal well.
http://allafrica.com/stories/201312090945.html
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Ethiopia: Internal Intel Chief Charged With Power Abuse
A former high-ranking official and head of internal intelligence at the Ethiopian National Intelligence and Security Service (NISS), Woldeselassie Woldemichael, was charged with abuse of power on Thursday at the Federal High Court 15th criminal bench.
The defendant and four others were charged on 12 counts, nine of which were against Woldeselassie. While charging the former official, prosecutors of the Federal Ethics and Anti-Corruption Commission (FEACC) said that he had abused the power bestowed upon him by the government.
According to the charge, the defendant used his position to have a book he had written be sponsored by state-owned printing presses, Berhanena Selam Printing Press and Artistic Printers.
The book was entitled “Terrorism in Ethiopia and the Horn of Africa”, and the defendant is alleged to have used his position to attract investment and buyers, but then failed to deliver any publications to the relevant parties. Additional charges include unpaid tax on the profit he made from the book and renting his house but failing to pay taxes.
The charges went on to say that the defendant had used a government-owned vehicle for the purpose of transporting a close friend, and had used an employee of the NISS to carry out his own personal work, thus preventing this person from doing the job for which they were hired.
According to the charge, the defendant, by using his power asked a businessman, to get him Italian made ceramics worth 65,000 birr.
The defendant, while he was a government employee, earned a monthly salary from 1,600 birr to 6,000 birr from the year, 1991 to February, 2013, however, he managed to build a 3-storey house and has accumulated millions of birr, the charge read. Also charged were the defendant’s brother, Zeray Woldemichael, sister, Terhas Woldemichael, and his close friend Dori Kebede, accused of covering up money earned by corruption. According to the charge, Zeray is the legal representative for Woldeselassie, and is therefore an active participant in the criminal charges.
Upon conclusion of the charges the defense lawyers requested bail, pointing out that Terhas has a two-year-old child and there is only a 75-year-old lady able to look after him/her. They added that as the article stated by the FEACC prosecutors does not impose punishment for more than ten years, their clients could be bailed. But the FEACC prosecutors argued that the article stated implies punishment for ten years or more, so pleaded for the court to deny bail. After hearing both sides of the argument, the court denied bail to the defendants and adjourned the case for December 16.
http://allafrica.com/stories/201312090947.html
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Ethiopia: Big Chinese Presence in Town
Close to 150 Chinese private and, most predominantly, government-owned or controlled companies have been in Addis Ababa’s Millennium Hall since Thursday, to demonstrate how interested the Chinese government is in relocating most labor-intensive companies into Africa, where comparative advantage prevails.
The presence of the Chinese companies in town is based on the event 2013 Africa, China Commodities, Technology and Services Expo, hosted by the Ministry of Commerce of China. Han Shengjian, deputy director of the Chinese Trade Development Bureau, said at a press conference on Thursday that the coming of 150 Chinese companies is to cement cooperation between Africa and his country. However, he said labor-intensive companies at home are facing challenges since cheap labor is no more the reality in China.
“Ethiopia lacks some important factors, important industries potential for economic pillar. From the global point of view, we see relocation from European countries to the Eastern Asia in the early 1970s and China had benefited from that relocation. In China those factor endowments are changing. Especially those labor- intensive factories in China have faced some difficulties by the increasing costs,” Han said. The Expo, hence, is organized with the intention of introducing Chinese companies where they can be relocated. According to Han, the government of China has selected Ethiopia as it could be a destination for industrial relocation for most Chinese ventures. From the Expo participating companies, Han says a dozen of them are believed to come back and start operation after the Expo is over on Saturday. However, the Africa China Expo is planned to be held every year in Ethiopia.
Most of the Chinese companies were interested to know the challenges they might be faced with in Ethiopia for their engagements, The Reporter learnt. Some were posing questions in relation to where the Ethiopian government is able to give financial guarantees, full expatriation of profits and related benefits of their operations. The Chinese companies were eager to know how the labor laws are functioning here.
The interests of Chinese companies to invest here is elapsing and newcomers are also taking part. One good example is Tsehay Real Estate which has been in town for a while and started developing 180 thousand sq.m land in the Eastern part of the capital, specifically at CMC area, in front of the roundabout.
The company chose a local name, Tsehay, to easily assimilate and become closer to the local community. And most meaningfully, that part of Addis Ababa is where the sun rises. The urban complex will be completed in the coming three and a half years’ time where the company will spend some 20 billion birr to erect 13 blocks of 12-storey residential buildings. Two four-star-rated hotels, offices and commercial blocks are under construction. Qian Tang Construction Plc is the Chinese contractor which has already begun the construction of the foundations in just about three months.
Tsehay real estate developer will sell out the buildings on cash and carry basis upon completion.
The other company which has been in Ethiopia for some four years is Foxtail Millet Institute of Zhangjiakou Academy of Agricultural Sciences in China. This institution is not here for research alone. They have come to introduce what they call “yellow grain and golden kernel” to Ethiopia. The millet grain is still under research yet becoming a real alternate and substitute to the predominant Ethiopian staple food injera which is made from teff grain which is defined by some food and nutritional as a member of the millet family. And for visitors of at the Expo, it was hard to differentiate foxtail millet injera from the regular teff injera.
The institute is now collaborating with the Ethiopian government-led agricultural research institutes to familiarize the golden millet in Ethiopia and get into households by half price down against teff in the coming years. Currently, foxtail millet is under research in many places to which productivity per hectare has jumped to 45 quintals.
Well and already established companies like Lifan Motors, Huawei, ZTE, Sino Hydro and many others are also taking part in the three-day expo. Liafn is set tol launch its new 530 model car at the new premise at Eastern Industry Zone in Dukem town by the coming February and March, 2014. Sino Hydro, another big Chinese company under the subsidiary is bidding to develop Beles phase two project, according to a representative approached by The Reporter at the Expo, Hydro China will develop a 25 thousand hectares irrigation scheme and sugar factory plant. The company will also be involved in developing a 3,041 hectares of irrigation from the Rebbi River in the Amhara Regional State. Hydro China is also bidding to pave a 125 km road in the South Omo, where the town of Jinka and Hanna will have a standard paved roads.
Vehicle and spare parts, electric power and new energy technology equipment, textile and leather processing industry, engineering and machinery, agricultural engineering and machinery are some of the companies exhibiting their products at the expo.
According to the data obtained from the Ministry of Industry, since 1999 a total of 131 Chinese projects have ventured in Ethiopia’s investment landscape. They have invested some 5.8 billion, creating some 55 thousand permanent and temporary jobs.
However, such an engagement of the Chinese is not far from criticism. David Shinn, former ambassador of the US to Ethiopia, said on a number of occasions that Chinese involvement in Africa is based on China’s interest to access Africa’s natural resources. “China sees Africa and its population of one billion people as a growing market for Chinese exports,” Shinn said in 2010, at a symposium by Social Investment Forum International Working Group. The former diplomat noted that these are some of the interests of China vests in Africa.
http://allafrica.com/stories/201312090969.html?viewall=1
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Khartoum and Ethiopia Agree on Establishment of Free Trade Zone at Joint Border
Sudan and Ethiopia have agreed on establishment of a free trade and economic zone at the joint border between the two countries, half of it is to be inside Sudan and the other half is to be in Ethiopia, with the aim to attracting investments of both countries.
At the joint press conference he held Wednesday evening at the Friendship Hall with the Ethiopian Prime Minister, Haile-Mariam Desalegn, President Al-Bashir said the proposed free trade zone will push ahead the economic and trade relations between the two countries, pointing the large potentialities enjoyed by Sudan and Ethiopia.
He said that the talks between the two sides were held in an atmosphere of fraternity and harmony that reflected the level achieved in the bilateral relations between Khartoum and Addis Ababa, indicating that the Sudanese and Ethiopian sides have signed 12 agreements and memos of understanding on cooperation in the trade, investment, electricity power, local and federal government, customs, youths, sports, banking and other fields.
Meanwhile, the President of the Republic affirmed Sudan keenness to contribute to realization of security and stability at the Horn of Africa area.
He said that Sudan distinguished relations with Ethiopia and Eritrea qualifies it to play a role for ending the tension in the relations between the two countries.
President Al-Bashir has appreciated the firm stance adopted by the African countries concerning the so-called International Criminal Court which is regarded by the African leaders as a mechanism of neo-colonialism. [SudanNewsAgency]
http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4622&Itemid=88
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Tire importer inaugurates 15 million birr retread center
The largest importer and distributer of Bridgestone car tires, Cabey Plc, has inaugurated a tire maintaining and retread center at the cost of some 15 million birr.
The factory is situated on a 10,000 square meter plot in Akaki Kality Sub city, with the aim to diversify its market share inside the transport sector and supply up-to-date technologically aided products that meet an internationally practiced standard.
Cabey is owned by Saeed Alamoudi (a brother of Ethio-Saudi business tycoon Sheik Mohammed Hussein Al Amoudi). The company is the sole distributor of Bridgestone tires, exports coffee and is the sole agent of Saudi Airlines.
Furthermore, the center will offer multifaceted services such as providing various tire brands for trucks and buses.
The company added that its reasons for having a truck tire center include aligning with the “Bridgestone way”, providing a superior quality product in what it called the NEW+RETREAD choice.
The center will provide various tire-related services, including replacement, balancing, rotation, checking service and reporting (TCS), air and nitrogen filling and wheel alignment.
The production of tires in Ethiopia goes back to1973, when Addis Tyre SC (ATC) — the first of its kind in the country — was established with a yearly production capacity of 60,000 tires. In the factory was privatized and taken over by Sheik Al Amoudi, and is currently operated under its new name Horizon Addis Tyre.
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Related articles-
- 05 December 2013 News Round Up (allanapotashblog.org)
- 03 December 2013 News Briefs (Updated)
- 01 December 2013 Development News Round Up
