UC Davis researcher Doug Cook and Asnake Fikre of the Ethiopian Institute for Agricultural Research (pictured, above) examine a chickpea field in Ethiopia.

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A new research effort in Ethiopia seeks to improve the productivity of chickpea varieties by harnessing the genetic diversity of wild species.

The federal Feed the Future Initiative is the latest rebranding of the U.S. government’s global hunger and food security initiative.

Chickpea is the third most widely grown legume crop in the world, following soybean and bean, and it has the ability to capture and use atmospheric nitrogen, thus contributing to soil fertility.  This five-year, $4 million research program could be important in the developing world, where the chickpea provides a crucial source of income, food security and nutrition to poor farmers.

The potential gains in chickpea productivity are significant in Ethiopia, the largest chickpea producer in Africa and the sixth largest in the world. More than one million rural Ethiopian households cultivate chickpea, and the Ethiopian Agricultural Transformation Agency has planned to double the country’s chickpea production between 2010 and 2015.

“This project aims to develop the chickpea for increased resilience to climate stress and other high-value traits by expanding the range of genetic adaptations available to breeders,” said Doug Cook, a UC Davis professor of plant pathology and director of the project. “Ultimately, we plan to improve the yield, climate resilience, nutritional value, and nitrogen-fixing properties of chickpea varieties selected in consultation with local farmers.”

Through this project, known as the Feed the Future Innovation Lab for Climate Resilient Chickpea, the researchers will combine advanced genomic technologies with analysis of plant traits to identify new and desirable genes harbored by chickpea’s closest wild relatives. They will then introduce these novel genes into Ethiopian breeding programs.

Cook noted that UC Davis’ role will be to provide scientific leadership and overall project coordination among domestic and international partners. The UC Davis team has expertise in molecular biology and genomics and, together with partners, will drive efforts to understand the molecular-genetic basis of agronomic traits, ultimately delivering the corresponding genes through breeding into improved chickpea varieties.

The project provides a key opportunity to engage Ethiopian scientists and farmers in a global research effort to improve chickpea productivity. In addition to UC Davis and the United States Agency for International Development, the research consortium includes the Ethiopian Institute of Agricultural Research, the University of Southern California, Florida International University and Turkey’s Harran University.

It also builds on a global network of partnerships, with allied research activities occurring in Turkey, Australia and Canada. These efforts, along with funding for related research by the U.S. National Science Foundation, all combine to add approximately $8 million in funding and significantly enhance the project’s technical capacity and expertise.   UC Davis

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Sourced  here

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Related posts

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-     Africa and India cultivate agricultural research ties

-     Pawe soybean research glimmering new hope for ensuring food security

-     Revitalizing agriculture in semi-arid areas-role of research

-     Creating Plants That Make Their Own (Nitrogen) Fertilizer

-     As wheat yields fall in Kenya, farmers turn to beans

-     Linking Ethiopia’s bean farmers to formal markets

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Unilever, IKEA to set up factories in Ethiopia

Unilever a multi-national consumer goods company and IKEA the world’s largest furniture retailer are going to set up factories in Ethiopia, Capital learned from sources.

Unilever that is headquartered in London, England is said to be the world’s second largest consumer goods company measured by revenue with its products available in 190 countries worldwide.

According to a spokesperson Capital interviewed, Unilever Manufacturing PLC was incorporated in Ethiopia as of this January.

“ This is the starting point in our journey to invest in the manufacturing of consumer goods and establish a genuinely inclusive and sustainable business model by supporting the development of Ethiopian trading and distribution networks while building up local suppliers and training Ethiopian staff to world class standards,” the spokesperson told Capital.

IKEA is also said to already secure a plot for a production line of its wide range of furniture products. However Capital’s attempt to get a confirmation from IKEA office failed.

Unilever is organized into four main divisions; Food, Refreshment (beverages and ice cream), Home Care, and Personal Care. It owns over 400 brands, but focuses on 14 brands with sales of over 1 billion Euros. Among the top 14 brands are Dove, Omo, Knorr, Lipton and Lux.

The consumer goods giant has been around a long time. Unilever reportedly makes more than 3 billion euros a year in Africa and it is working on doubling that.

“Using our brands to improve the lives of ordinary Ethiopians and contribute to a bright future for the country will be at the center of our business model,” the spokesperson also said.

Currently Unilever operates factories throughout Africa including Kenya.

Unilever was founded in 1929 by the merger of the British soap maker Lever Brothers (founded in 1885 by William Hesketh Lever) and the Dutch margarine producer Margarine Unie. The company had a turnover of 49.8 billion Euros according it its financial report for 2013.

IKEA is a Swedish company registered in the Netherlands that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. As of January 2008, the company became the world’s largest furniture retailer. Founded in Sweden in 1943 by 17-year-old, Ingvar Kamprad, the company’s name is an acronym that consists of the initials of, Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, south Sweden). The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity. In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.

As of January 2014, IKEA owns and operates 345 stores in 42 countries. In 2013 IKEA announced a total sales turnover of 29.2 billion Euros.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4109:unilever-ikea-to-set-up-factory-in-ethiopia&catid=35:capital&Itemid=27

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Ethiopian chief warns, African airlines could be ‘swallowed’ by the Gulf

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The CEO of Ethiopian Airlines Tewolde Gebremariam has warned that Gulf carriers could “eat us for lunch” unless there is a concerted effort by African airlines to increase market share from the fast-growing continent.
Speaking at the Aviation Club in London, Tewolde said “We have tremendous competition coming from the Gulf carriers. Dubai is only three and half hours away from Addis, Abu Dhabi and Doha are the same. They have been doing very well and now Africa is also a strategic focus.
“We see the centre of gravity moving from Europe to the Middle East and especially the Gulf.”
He said that Europe’s failure to respond to the threat by the Gulf carriers had led to this change.
“Europe has been the oldest and most successful for hub and spoke operations with airports like Heathrow, Frankfurt, Amsterdam and Paris. For passengers travelling from south and north America to Europe, Africa and Middle East and Asia the only way was through Europe, but now that hub and spoke is moving to the Middle East and unfortunately and inadvertently European governments and politicians are helping them move the centre of gravity to the hubs in the Middle East by making it very difficult for airlines to operate in Europe.
“Taxation is one factor, airport congestion is another,” Tewolde said. “As a result airlines are finding it very difficult to fly to Europe. Heathrow is one of the most congested airports. Ethiopian wants to fly to Heathrow twice a day, but we are only able to fly six flights a week. We can’t even get a daily service.
A third runway at Heathrow has been discussed for years yet Dubai was able to build Dubai World Central Airport with six runways in short order.
“Frankfurt Airport has put a policeman in the ATC tower to ensure no flight leaves after 10 or 11 o’clock at night, emission trading is another problem for all of us. Labour unions are very difficult for European carriers and they also have to compete with the Gulf carriers and small African carriers like us also. The tax regime in the Gulf is different – no tax at all – but knowing this again, there is no remedy for small carriers in Africa and also Europe, so inadvertently Europe is helping the Middle East carriers.
Tewolde said that the Gulf countries are treating aviation as a strategic national asset.
“The contribution of aviation to social economic development is recognized and it is the pride of governments, but other governments and even the continent of Africa is not recognizing this unfortunately.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4107:ethiopian-chief-warns-african-airlines-could-be-swallowed-by-the-gulf&catid=45:news-in-brief&Itemid=37

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Ethiopian: daily London-Addis Ababa flights from July

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Ethiopian Airlines is to increase its Heathrow-Addis Ababa flights to a daily service, from July 8 this year. The new Tuesday service will increase frequency from its current six flights a week.

The airline, a Star Alliance member, is also set to move to the new Heathrow Terminal 2 in September. The rebuilt terminal, also known as the Queen’s Terminal, will operate exclusively for Star Alliance members from June.

CEO Tewolde Gebremariam said the airline, which has operated to London from 1973, has grown seven-fold in the last seven years, and currently flies 5.6 million passengers annually.

Speaking at a recent Aviation Club event in London, Gebremariam outlined Ethiopian’s strategy of building a four-hub network in Africa. “Our main hub is in Addis, our second in Togo in west Africa, and a third in Malawi where we are starting a new airline – we have just started a new partnership with the Malawi government. The fourth hub, for the central African region, will be in the DRC [‪Democratic Republic of the Congo‬], with 8,000 employees.”

He said a 10-hour flight radius from Ethiopian capital Addis Ababa encompassed “5.8 billion people in a high-growth region. That catchment area is a huge market.”

Gebremariam said Africa’s natural resources are attracting foreign direct investment, particularly from China and India, contributing to a dynamic economy in Ethiopia – double digit GDP growth in the last decade and the third fasted-growing economy in the world.

The airline boss emphasized the importance of connectivity with the world’s emerging economies, pointing out that the combined GDP of the “E7” countries – China, India, Brazil, Russia, Indonesia, Mexico and Turkey – is poised to overtake that of the G7 (US, Japan, Germany, UK, France, Italy and Canada): he cited a forecast for 2050 of US$138.2 trillion GDP for the E7, compared to US$69.3 trillion for the G7 countries.

He said one of his airline’s greatest challenges was competition from the Gulf carriers. Of Europe’s long-successful hub-and-spoke airport operations, he said that “unfortunately and inadvertently, European governments and politicians are helping move the centre of gravity to the hubs in the Middle East, by making it very difficult for airlines to operate in Europe.”

http://www.waltainfo.com/index.php/explore/12450-ethiopian-daily-london-addis-ababa-flights-from-july

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Nile Basin cooperation is a mandatory, not an option: Ministry

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Water, Irrigation and Energy State Minister Kebede Gerba said: “Fifteen years of Nile Basin cooperation has yielded results. But we still have a long way to go to completely relieve the community from the burden of poverty. It is therefore self-evident that Nile Basin cooperation is mandatory, not an option.”
The 8th National Nile Day was celebrated with a theme: “Access to Water and Energy National Challenges, Trans-boundary Solution,” here yesterday.
He also said that future generations will benefit only from win-win outcome achievable through sustaining engagement and working together. “Building enduring regional cooperation and availing all the necessary technical, institutional, organizational, financial requirements takes time. Building trans-boundary cooperation and institution requires patience and working through disagreements.”
In an exclusive interview with The Ethiopian Herald, Egypt Ambassador Mohamed Edrees said: “The significance of this cooperation is not something new or impossible. All the countries cooperated and Egypt was also instrumental in this process. We have to always remember to continue this path of cooperation. Cooperation is our common path. And win-win is our shared goal.”
The Nile Day also regionally celebrated in Uganda, Entebbe in the presence of Ministers in charge of Water Affairs in the 11 Nile Basin countries, diplomats, development partners, and government officials.
It is an annual celebration of the establishment of the Nile Basin Initiative (NBI) on 22nd February 1999, by Ministers in charge of Water Affairs in the Nile Basin countries.
South Sudan Ambassador Arop Deng at the occasion said: “History reveals that civilization and socioeconomic activities of our people is track back to changes in the levels of Nile waters, giving them opportunity to migrate and move across territories beyond the current borders.”
As to him, it becomes a moral duty and responsibility as governments of the Nile Riparian States to facilitate this socioeconomic development and cooperation of people.
Water, Irrigation and Energy Minister Geo Information and Information Technology Director Wubeshet Demeke also said that if properly planned in a cooperative manner the resource base of the basin can adequately support the well-being of the entire people of the basin and enables meeting the growing demands.
Despite this fact the basin is known to have six of the ten poorest nations of the world. Obviously this needs to change and the responsibility falls in our shoulder: we the people of the Nile Basin, he said.
He also said that Ethiopia’s move towards fulfilling the national energy demand and stretching to offer power trade opportunities for regional economic integration in the Nile Basin countries and beyond need to be appreciated and deserves the support of all.
“In order to take advantage of cooperation there is a need to leverage on existing efforts. Through cooperation the benefits that can be tapped from the Nile will be much larger,” Wubeshet added.
The Nile Basin remains the only region on the African continent without a functional regional power grid with very insignificant volumes of power traded among the countries. Nile Basin Initiative is the first and only all-inclusive regional platform for the Nile Riparian countries to discuss with trust and confidence the joint management and development of the common Nile Basin water and related resources.
According to the Ethiopian Herald, the Nile Day was attended by government officials, diplomats, members of parliament, researchers, development partners, civil society and school children.

http://www.waltainfo.com/index.php/explore/12446-nile-basin-cooperation-is-a-mandatory-not-an-option-ministry

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Ethiopian physicians to establish a center of excellence hospital in Ethiopia

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The Ethio-American Doctors Group and the Global Ethiopian Medical Enterprise have agreed to merge their efforts to pursue their common goal of building and establishing a Center of Excellence Hospital in Addis Ababa.

Collectively, the memberships of both organizations include over 250 physicians of Ethiopian origin and this development is expected to encourage other Ethiopian physicians to join. By uniting their intellectual and membership resources, the joint mission to establish a center of excellence hospital should have a tremendous impact on the lives of the people of Ethiopia.

The Ethiopian government, various US agencies, and people and firms in the business community throughout the world, have supported and encouraged both organizations to combine their efforts under a single body to establish a world class hospital in Addis Ababa.

The two companies say they are now looking forward to continuing to recruit and encourage physicians to join the project aimed to lift the healthcare of Ethiopians and people in the region through provision of excellent quality clinical care, high standard medical education and relevant research.

The Ethio-American Doctors Group is a US-based corporation and has members covering 31 different specialties and subspecialties from across the world.

The Global Ethiopian Medical Enterprise is a healthcare management company founded by a coalition of multi-specialty Ethiopian Diaspora physicians who practice in the US, Canada, Europe, Ethiopia and other African nations.

http://www.mfa.gov.et/news/more.php?newsid=3050

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Millennium Hall Hosts Seventh All African Leather Fair

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About 200 exhibitors from 41 countries took part in the Leather Fair

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At a time when the government expect to earn 67.6 million dollars from the export of leather, around 100 leather producers and exporters took part in the All African Leather Fair, at Millennium Hall on Bole Road.

The fair, which opened on February 20, 2014, occupies a total area of 4,000sqm and has exhibitors representing 200 companies from 41 countries. Products were displayed for three consecutive days, from February 20 to February 22, 2014.

It was Ahmed Abtew, minister of Industry, who opened the event – the seventh since it was first envisioned and implemented by the late Prime Minister Meles Zenawi in 2008.

There was much jostling and chatter as huge crowds of visitors, invited guests, exhibitors and organisers gathered at Millennium Hall for the event, organised by the Ethiopian Leather Industries Association (ELIA). Visitors were met by bags of various colours and sizes, shoes with different brands, wallets, clothes and gloves of varying types, all on display in small partitioned shops.

Local companies, approached by Fortune, say that a shortage of raw materials is a major bottleneck in their line of business. Tanneries, they say, are producing below their capacity due to this supply gap.

Wossen Hailemariam is one of the exhibitors expressing this view. He represents Habesha Tanning Plc, which currently uses only 43pc of its capacity.  The three-year-old company was displaying finished leather of various sizes. The Company paid 37,000 Br for the 18sqm display booth it occupied in the Hall. The cost includes advertisements. Habesha has the capacity to produce one million pieces a year, but its 2012/13 output was only 450,000.

Local companies complain not only of a shortage of raw materials, but also tough competition from bigger companies from China and India investing in Ethiopia.  The companies also express concern about the deteriorating quality of hides and skin.

Jones Stamalevi came from Lilongwe, Malawi, representing Mandoda Investments, which mostly produces leather shoes and wallets with hides and skins imported from Kenya and South Africa. This is the first time that the Company has taken part in the All African Leather Fair.

“I am expecting new ideas, new markets and new business friends,” he said. “My company wishes to import hides and skins from Ethiopia.”

The ELIA believes that the event helps to promote Ethiopian leather products and increase their competitiveness. Ethiopia’s leather is exported to 40 major destinations, including China, India, Turkey, Sudan, Germany, Italy and the UK.

The Association is pinning its hopes on visitors that it has invited from 41 countries to enable Ethiopian manufacturers to gain access to markets, says Abdissa Adugna, the ELIA’s Secretary General.

Local companies paid 1,500 Br for a square metre space inside the Hall, whereas foreign companies were all sponsored as part of the government’s plan to attract investment into the industry.

This is contrary to what happened during the sixth Fair, where foreign participants paid 120 dollars for a square metre and local participants just half of this sum.

A year ago, the association spent 2.5 million Br organising the fair – 1.2 million going on three days rent at Millennium Hall. There were 48 companies from abroad on that occasion. The latest event has cost six million Birr, the ELIA says.

As one of the priority areas in the government’s Growth & Transformation Plan (GTP), leather is expected to fetch no less than 500 million dollars by the end of 2015, when the GTP comes to an end.

Leather and leather products earned 32.1 million dollars in the first quarter of the current fiscal year. Although this figure has increased by 7.3 million dollars compared to the same period the previous year, it still falls short of meeting the target. Its revenue for the first six months of the fiscal year has totalled 67.1 million dollars, which is 16.9pc higher than the figure for the same period in the previous year.

http://addisfortune.net/articles/millennium-hall-hosts-seventh-all-african-leather-fair/

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Deloitte to Focus on Mining in Ethiopia

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Deloitte Consulting Plc,  a global professional services firm, which officially opened its office in Ethiopia two years ago, is eying to consolidate artisanal mining.

The Company aims to offer consultation services for artisanal miners through four service lines: strategic and innovation, technology, human capital and business process. Strategy and innovation on mining, advisory services and service mining technology will help to increase the productivity of artisanal mining service and panel discussion, representatives of the Company said during consultations with representatives of the Ministry of Mines (MoM) and artisanal miners on Tuesday, February 18, 2014, at Harmony Hotel located between Namibia Street and Africa Avenue in the Bole area.

Deloitte’s intervention is said to be crucial in rectifying problems related to effective management problem, volatile price change, global demand shift, policy, climate change, access to capital and infrastructure and meeting the growth agenda and changing reserved portfolio.

During the occasion artisanal miners and miming bureau representatives from regional states raised issues related to policy, registration process, and the facilitation of infrastructure for the artisans.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4843&Itemid=88

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Mozilla To Launch $25 Smartphone

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VENTURES AFRICA – Mozilla has announced that it will offer a new category of $25 smartphones for developing countries, adding that despite the close to  pricing, the device still holds advance mobile capabilities.

California-based nonprofit Mozilla Foundation disclosed this on Sunday, ahead of the four-day Mobile World Congress in Barcelona, Spain, which opens on Monday.

“We are also enabling a whole new category of smartphone, priced around $25 (18 euros), that will bring even more people around the world online,” said Jay Sullivan, Mozilla chief operating officer.

The company also announced the launch of new devices operating with Firefox OS, including ZTE’s smartphones Open C and Open II.

The aim is to challenge the dominance of Apple’s iOS and Google’s android in the smartphone market, as it provides a cheaper alternative for smartphone users.

It has therefore signed a deal for a chipset which it said will pave way for the cheap phones. The deal which will see it partner with China-based fabless semiconductor company, Spreadtrum will herald the emergence of the low-cost Firefox OS-powered smartphones.

Since it launched in 2013, Firefox OS has expanded to 15 markets and is available on three devices. Mozilla however wants to expands its reach, and is now set to enter into the Latin American markets.

“Sales have far exceeded our targets. But 2013 was just the beginning. In 2014, we are differentiating our user experience and our partners are growing the portfolio of devices,” Sullivan said.

Mozilla claims global operators such as Telenor, Telkomsel and Indosat, and ecosystem partners such as Polytron, T2Mobile and Thundersoft are expressing interest.

Asides Latin America, Mozilla is expected to seek entry into the African mobile space and will leverage its low pricing model to secure a comfortable market share.

http://www.ventures-africa.com/2014/02/mozilla-to-launch-25-smartphone-to-run-on-firefox-os/

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Nation water resource utilization shows marked increase

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 Minister Alemayehu Tegenu

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 • Ministry says involvement of stakeholders helps improve performance

The Ministry of Water, Irrigation and Energy said that efforts made in enhancing the participation of all stakeholders and creating sense of accountability has enabled it register remarkable achievement. The ministry also announced that Ethiopia’s benefit from its water resource has shown marked increase.

The Ministry Sunday discussed sector six-month performance with various stakeholders including sector institutions, state water and irrigation bureaus as well as different agencies.

Minister Alemayehu Tegenu told participants that the performance of the sector is encouraging. Achievements in the renewable energy, basin development, water and sanitation service both in the rural and urban areas are laudable. He attributed the achievement to the concerted efforts of all stakeholders and the ministry.

Indicating that various projects are being undertaken as per the GTP goal, the Minister said the completion of these projects would have enormous role in realizing other development plans.

The Minister also noted development projects such as Kesem and Tendaho which were lagging behind are now in a better condition and the latter expected to be completed this year.

According to Alemayehu, irrigation development plan was so ambitious developing around 300 thousand hectares of land so far. Noting that the achievement is not insignificant, the Minister said the task should not be left to the government alone but requires the coordinated effort of all stakeholders .

Ministry Planning and Foreign Relations Directorate Director Daniel Dangiso also said compared to other projects, those in water resource administration, basin development and conservation, renewable energy, preventing deforestation, hydro-power and irrigation have registered impressive performance during the last six months. Indicating that problems in irrigation sector are still persisting, the Director said that the Ministry is undertaking 15 irrigation projects of which 75 per cent is completed.

Daniel also said the Metal Engeenering and Construction Corporation is engaged in the production of transformers to address problems faced following the completion of irrigation and clean water projects.

Meanwhile, Oromia State Water, Mineral and Energy Bureau Head Motuma Mekasa said access to clean water that stood at 57 per cent has now increased to 75 per cent in the state. The state is set to increase access to 85 per cent this year, he added.

“The reason behind this encouraging achievement result is the active participation of the public. As the way forward community-based packages has been prepared to increase the participation of the public in the sector,” Motuma added.

http://www.ethpress.gov.et/herald/index.php/herald/news/6080-nation-water-resource-utilization-shows-marked-increase

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Enterprise earns 15.5 mln. USD from foreign trade

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More than 15.5 million USD was secured from grains and coffee export during the first half of this budget year, the Ethiopian Grain Trade Enterprise said.

Enterprise Director-General Birhane Hailu told ENA that the Enterprise has exported more than 97,200 quintals grain, oil seeds and coffee during the reported period.

The Enterprise has achieved 78 per cent and 63 per cent of the target in terms of supply and revenue respectively.

The target was to export more than 124,100 quintals thereby earn over 24.7 million USD.

Some 50.7 per cent of the stated revenue was earned from export of coffee. The Enterprise has exported more than 27,000 quintals coffee during the reported period.

The revenue earned from sale of coffee during the reported period has decreased by 48 per cent compared to the previous year same time.

The decrease in the price of coffee at the international market contributed for the reduction, he said.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6083-enterprise-earns-15-5-mln-usd-from-foreign-trade

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Industry zones: Yeasts of industrial transformation

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Foreign Direct Investment (FDI) is one of the major drivers of economy. Particularly, for most of African countries, apart from providing job opportunities for citizens, it plays a key role in technology transfer. It also promotes competition in the domestic input market and is a means to gain tax revenues for host countries.

In view of this most of the developing countries in Africa have been designing a variety of investment-friendly policies and strategies in order to attract potential investors. As a result, a large number of investors have been seeing Africa as a potential investment zone and as a result been investing a huge amount of capital within the continent. As a consequence, host countries have been able to enjoy the benefits of FDI.

Ethiopia, like other African countries, has since the past two decades been making greater efforts to attract potential investors and gaining the advantages of FDI. To this effect, it has formulated favorable investment policies and strategies.

With the introduction of incentives such as tax reliefs to manufacturers engaged in production of goods mainly for export, it has made considerable efforts towards promoting investment and industrialization.

During the past two decades thousands of foreigner investors have come to Ethiopia and engaged in a various investment areas. As a result new facilities have been built, considerable job opportunities have been created, and new technologies introduced. In these investment activities being carried out in the country and jobs created for citizens, industrial zones have had significant contribution. The ‘Eastern Industry Zone’ (EIZ) is one of these industrial zones which has created jobs for many citizens.

This industry zone, which is located in Dukem area of Oromia State around 35 km South East of Addis Ababa is considered to be one of the big industrial zones in Africa . The industry zone is being run by Chinese investors.

According to the Assistant Director of the Zone, Jiao Yongshun, 500 hectares of land is used for investment by investors with combined initial capital of 480 million USD. These investors include 19 enterprises, of which 10 are fully operational while nine other are under construction.

The enterprises which are currently operational include the automobile assembler Lifan Group, the footwear maker Huajian Shoe Company, Zhongshan Cement Manufacturing and Eastern Steel producer. Other manufacturers are engaged in the production of items for both local and global market, he said.

Noting that the ten enterprises in the industry zone has created substantial job opportunities for local people, Yongshun said when the construction activity of the nine other enterprises is completed and becomes fully operational, the industry Zone will create up to 50,000 job opportunities, and introduce more technologies. It also promotes the country’s economic development and contributes a lot to the realization of the country’s growth plan, he further said.

Nara Zhou, Public Relations Manager of the Huajian Shoe Factory, said the factory which was established with an investment capital of 13 million USD produces ladies’ shoes and exports 7,000 pairs of shoes to US market per day .

“Presently, around 2,000 Ethiopians have got work opportunity within the shoe factory. In the coming seven years, by allocating additional USD 40 million capital, the company is planning to create employment opportunities for 30,000 people,” she remarked.

The other industrial zone which is hoped to speed up the country’s economic growth and to support the country’s industrialization process is the Bole Lemi Industrial Zone. The Industry Zone which lies on about 156 hectares of land is constructed by the Ethiopian Government.

“The Ethiopian Government has set a plan to develop at least four industrial cluster zones at the GTP period and expedite the progresses towards industrialization according to Melaku Taye, Communication Directorate Director with Ministry of Industry. Accordingly it is now constructing industry zones in various parts of the country, he added.

“The Industry Zone is particularly designed to help investors who are engaged in the manufacturing industries: industries which are strategic focus areas and prioritized by the government to create vast job opportunities for citizens, produce value added goods, substitute imported products and generate hard currency through production of export oriented goods,” Melaku said.

Accordingly, among others, manufacturers who are engaged in the production of textile, leather and leather products, agro-processing, pharmaceutical and those whose goods substitute imported items would benefit from the Zones, as he stated.

Melaku also noted that as industry zones are complex, construction activities take longer time than expected. Thus, it is always challenging for investors to construct buildings so soon and be fully operational in a short period of time. Shortening the time for the completion and transfer of industry zones to investors, apart from avoiding all the problems associated with construction saves their time and helps them engage in business soon.

Most importantly investors in industry zones, as they are provided with the needed infrastructural facilities and enjoy tax incentives, they can concentrate on their competitiveness of their businesses.

Melaku also noted that feasibility studies were being carried out for the construction of additional industry zones in various parts of the country, including Akaki and Kilinto areas of Addis Ababa, as well as in Dire Dawa, and Kombolcha. The realization of the zones would have significant contribution to promote sound economic growth and maintain national industry development.

http://www.ethpress.gov.et/herald/index.php/herald/development/6088-industry-zones-yeasts-of-industrial-transformation

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David Rhody is the East African Director of the Canadian Hunger Foundation. A non-profit organization dedicated to helping poor rural communities in developing countries to attain sustainable livelihoods. The organization says it is motivated by a passion for change and a commitment to help people in communities take ownership over changing their world for the better. They focus on helping people attain sustainable livelihoods by involving the local community in designing innovative projects to make the world a better place from building peace in post-conflict areas and reconstructing the lives of those struck by disaster, to empowering women and protecting the environment. Capital’s Fitsum Abera sat down to talk with him.

Excerpts;

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Capital: Tell us about the Canadian Hunger Foundation

David Rhody: The Canadian Hunger Foundation is a little over fifty years old. It was created in 1961. It is actually one of the first NGOs in Canada. Over those 50 years we worked in nearly 100 countries and now we currently are conducting 12 different projects in 15 countries.

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Capital: What kind of projects are they?

Rhody: In recent years we have been involved in sustainable livelihood standard programming. This involves many aspects in which our beneficiaries can improve their livelihoods overall. So that can include food security programming, better agriculture production, rehabilitation of water, irrigation and many other components. But food security has been the main thrust within this sustainable livelihood approach that we have been using. We are actually going through a new strategic planning process which will cover all of our offices in the different countries. The two new thrusts for our strategic planning framework are food security and nutrition and sustainable economic growth. The sustainable economic growth is very important because that is what will allow producers to access markets. So we are trying to link farmers who are producing more than enough for domestic consumption to markets so that they will have enough extra income to be able to satisfy other needs like health and education of their children.

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Capital: You recently celebrated your 50th anniversary. Have you started working on any new projects to commemorate that?

Rhody: I lived here for three years from 2007 to 2010 as the country director and also as the program manager for a program in BatiWoreda in the Amhara region. That was the partnership for food security project. We worked on that project with the Organization for Relief and Development of Amhara (ORDA) based in Bahirdar. That project is the basis for some of the programming that we are now doing. We do 11 projects in Ethiopia. Again in the Amhara region we have 2 projects. One is a 15 month project in Bati on Climate Change Adaptation funded by the Canadian Government. That project is actually coming to an end in March. On February 25th and 26th we are having a national forum in Addis relating to this climate change adaptation. We are inviting government ministers and all of our partners to this meeting. The other one is a five year project that is related to markets specifically. It is in Oromia  and based in Kemisse. It covers two woredas; Demi Chefa and ArtumaFusi. We are working on 12 Kebeles. That project is titled Market Improved Livelihoods Eastern Amhara Region (MILEAR) and we will work with ORDA. That project will improve the livelihoods of beneficiaries through access to markets.

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Capital: So the Bati Adapts to Climate Project that is ending in March involves the use of drought resistant seeds.

Rhody: These are improved seeds that have been adapted to dry situations for more erratic weather situations. They are proven, certified seeds from the research institution in Ethiopia. One example will be Sorghum which has a fairly long growing season. There has been a variety that has been introduced which has grows much faster and has better quantity. The other one is Sesame. Sesame already grows in semi-arid areas and its production has been improved by these seeds.

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Capital: You are the East African Director. What does that entail?

Rhody: The projects that we implement here are funded by a donor. Our main donor is Canada. We have direct relations with our Canadian counterparts in Ottawa. One of my duties is the management of our relations with our government counterparts. The other part is being aware of what is happening on the field and monitoring the progress so that the reporting can be properly done. I am on a monitoring mission right now. I went to Bati and I went to Kemisse. I saw both projects and some of our beneficiaries. That is what it entails basically. I spend some time on one project some time on another. My responsibility also covers south Sudan, which as you know is a challenge these days because of the Civil unrest that is going on. I will be going to South Sudan right after my visit here ends.

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Capital: What challenges do you face working in Ethiopia?

Rhody: I don’t want to be too critical. We have been in Ethiopia for ten years. We know how to operate here. We have another project in Benishangul Gumuz which is actually very interesting. We work with government and partners in different ways. One of the components our success is that we work with local NGOs like ORDA and the local government as well. We have a very close partnership with local government in all of our projects. In Benishangul Gumuz that is the case because we don’t actually work with a local NGO partner. We work in trying to build the capacity of the government offices there. So one of the challenges is the weak capacity of the government in the woredas and regions especially Benishangul Gumuz. It is stronger in the Amhara and Oromo regions. The other challenge is the regulations monitoring the work of the NGOs. Some of them are very astringent. Onerule that we keep dealing with is determining administrative versus program costs and how to determine which is which. Program costs have to be 70% and administrative costs have to be 30%. How NGOs do program costs are actually different from how government offices do program costs. One example is capacity building. We consider that to be a program cost whereas that is not always the case with the government. Things like that are challenges that we have to work with.

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Capital: What are your biggest triumphs in Ethiopia?

Rhody: I was here during the Ethiopian millennium celebration. I came to a project that had been ongoing for two years; The Partnership for Food Security Project in Bati. It was having some difficulty finding its place. Then the local government came on board and some of the work that we were going to be doing was then done by the government under the PSNP project. So we had to adapt our project so it would compliment very well with what the government was doing. There was a challenge right there. But after five years we ended the project on a very high note. The Bati beneficiaries we have been working with which are about 42,000 really had taken some new varieties of seeds and food production that allowed them to increase their earnings considerably. I feel that project was a triumph because I went back to Bati now and saw that Bati is really changing. When I go to a village or a community I see people going around with mobile phones. Part of the reason they can carry those phones is because this climate change project introduced solar lanterns to all of our beneficiaries there. So they can now charge their cell phones with a solar lantern. It is the women who administer that. When I saw that solar panel on a thatched roof, I realized that a woman can now generate some extra income from charging people’s phones. Here in Addis people don’t think of that capacity being unusual but there it is extraordinary. I saw that they have a very outward way of looking at the world now. I feel that our project is part of the basis for that overall in Batiworeda. Working with the ORDA who are very much involved in the development of the Amhara region and with the government through them has been a big triumph I believe. I have a lot to praise about the Bati project.

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Capital: What makes the Canadian Hunger Foundation different from other NGOs?

Rhody: We are a smaller NGO. We are not a large NGO that tries to grab funding for many parts of multi-sectorial interventions. What we do is we really try to focus on sustainable livelihoods in the past and now more specifically on sustainable economic growth along with food security and nutrition. I believe that the fact that this is our focus gives us more expertise in those areas as opposed to other NGOs that might dabble here in water or dabble there in other sectors like health and education. We really are trying to focus so we can do well in what we do. I think more and more rural farmers in the developing world need to be linked in some way to the markets because everything is being globalized to such an extent that links to markets are going to be what allows them to be pulled up out of poverty.

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By  BINYAM ALEMAYEHU

The international market has continued to witness a sustained downward trend in the price of coffee, Ethiopia’s flagship export item, for nearly three years now.  Figures from the International Coffee Organisation’s (ICO) composite price indicator show that there was a recorded 33pc drop in August 2013. Thus, a kilogram of coffee was traded at 2.6 dollars, as opposed to the 3.6 dollars a year ago. A major reason why developing countries are unable to benefit from trade is their lack of capacity to produce and market, says an assessment conducted by the ICO in 2013.

This slump in prices has deeply affected coffee producers, as well as exporters in Ethiopia. For Mormora Coffee Growers & Exporters Association, one of the major exporters, the situation has been worrisome throughout the last six months of the 2013/14 fiscal year, with the price of coffee having dropped significantly when compared to the performance during the first half of last year, as well as this year’s targets. Over the past six months, Ethiopia exported 66,066tns of coffee for 222.6 million dollars – just 66.8pc of the 333.1 million dollars the government had hoped to generate from the planned export 85,186tns.  According to the half-year report, the coffee trade has shrunk 28pc by volume and 38pc by value compared with the past year’s achievement.

The prices for different varieties of coffee on the Ethiopian Commodity Exchange (ECX) trading floor, have recently been generating frustration from exporters.

Mormora grows coffee on a 200ha of land in the Guji Zone of the Oromia Region – one of the major coffee growing areas in the country. It failed to achieve its target because several foreign buyers cancelled their contracts, often after the coffee had already been transported to Addis Abeba. Two contracts have been cancelled over the past six months, says Hailesilassie Tadelle, Mormora’s general manager.

Hailesilassie recalls that for two of these contracts, the Company had produced large quantities of coffee and prepared it, confident of sales since the buyers were long-time customers.

“But it never worked, as one after the other refused to buy, eventually cancelling the contracts,” he recalls.

At the heart of the decision from these buyers, say Hailesilassie and other exporters approached by Fortune, is the decline in demand.

A representative of a coffee exporting company working in Yirgacheffe, a coffee growing Woreda located in the Gedeo Zone of the South Region (395 km from Addis Abeba), grumbled that she lost eight contracts. All of these were cancelled by potential buyers, who changed their minds, forcing the exporter to incur a loss.

“What has made the situation even more worrisome is that the input costs for the coffee farm is increasing,” she complained.

The  other exporters attribute the problem to the decline in coffee price in the global market.

The Ministry of Trade’s (MoT) export data for the first half of the 2013/14 fiscal year revealed that Ethiopia had registered 1.3 billion dollars from exports, achieving only 65.5pc of the goal, largely because of the loss from coffee.

“What the Ministry can do is to facilitate the export process by feeding exporters information about the market,” says Abdurahman Seid, deputy head of the Public Relations & Communications Office at the Ministry.

However, for some exporters it is the long chain to export that has hindered the overall profitability of the industry. This leads to the presence of various middlemen in the export process, pushing growers and exporters into deficit.

Eshetu Gule, an expert in coffee suggests that authorities need to work on the weak negotiating capacity of exporters and poor product quality. These two factors, he suggested, need to be resolved if the government’s plan to generate more revenue from coffee is to be achieved.

During the period under consideration, Ethiopia traded its coffee with differentials against the New York market. The prices for different varieties of coffee, which take up most of the space on the Ethiopian Commodity Exchange (ECX) trading floor, have recently been generating frustration from exporters, who say it does not reflect international market conditions.

“We are price-takers,” said the coffee exporter from Yirgacheffe. “But the price decrease discrepancy  is causing us to sell less.”

Ethiopian authorities see an increased volume as a way of compensating for the slowdown of the market following the global economic crisis.

“The fall in price, however, will be compensated by increasing the volume of exports and creating market linkages with a few selected countries,” says Abdurahman from the MoT. “Trade links have also been strengthened to address coffee export in Asian countries, like Japan, South Korea and China.”

The fall in export revenues has also affected other agricultural exports, such as flowers, oil seeds, pulses and khat, although the latter two did perform better than the rest. The flower sector – which grew fast, overtaking all other African exporters except Kenya – has felt the decline, but it has been explained as seasonal, with the months until May promising more revenue from more exports.

Power cuts, logistics and a shortage of land are among the problems flower growers mention. They hope to get more land and boost production during the second half of the year, according to Tewodros Zewde, executive director of the Ethiopian Horticulture Producers & Exports Association.

The export experience of other items has been relatively better. Oil seeds, pulses and khat have registered 76pc, 84pc and 92.6pc performance, respectively, with exports totaling 208.8 million, 107 million and 150 million dollars.

Gold has been affected with a fall of 40pc, while the still small manufacturing sector has achieved close to a 10 million dollar gain over the previous year, with a total of nearly 67 million dollars – falling short of the 111.8 million dollar target.

“Greater concentration on a few traditional exports, such as coffee, must quickly end,” Abdurahman said.

The fix includes exporting more sesame. The government also wants to export more coffee despite the fall in prices in the international market, he says.

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Organizing national, continental and international trade fair events are matchless in bringing manufacturers and traders from Ethiopia and abroad together to initiate business linkages.

To this effect, the underway 18th Addis Chamber International Trade Fair (ACITF) which was organized by Addis Ababa Chamber of Commerce and Sectoral Associations(AACCSA) created a vital platform for Ethiopian and foreign companies to share experiences, and create linkages.

Officially opening the trade fair at the Addis Ababa Exhibition Centre, Trade Minister Kebede Chanie said that Ethiopia is currently in the process of acceding to the World Trade Organization(WTO). He added that Ethiopia’s accession into COMESA free Trade Area is on the verge of completion too.

The need for enhancing competitiveness is high on the agenda of private sectors and policy makers. This owes to the intensification of global competition in all fields of the economy. Less competitive firms in developing countries are forced to face competition from most efficient and competitive firms from all corners of the world . Since protective measures do not take us too long , the only way out is to focus on those elements that determine competitiveness of our firms at micro and macro levels, the minster added.

Kebede further said that Ethiopia is committed to support companies’ endeavours to enhance their competitive positions through improving the business climate and eliminating policy and regulatory bottlenecks that adds cost of doing business to the private sector. The government has institutionalized Public Private Consultative Forums to engage the private sector with constructive consultation to address challenges facing business and investment in the country.

Since its inception three years ago, the Ethiopian public private consultative fora has identified and addressed a number of regulatory issues to improve the business climate in the country. These fora will continue to serve similar purposes in the years to come, according to the minister.

“For those sectors that Ethiopia developed competitive industries, the accession to the COMESSA Free Trade Area will start from 2014 while four additional years will be given to less competitive sectors to prepare themselves for competition. The year 2018 and beyond will show Ethiopia’s full accession to the regional economic Free Trade Area,” Kebede said.

The Minister indicated that this signifies Ethiopia’s commitment for Africa Economic Integration in its diplomatic and political sense. Nevertheless, it is also an alarm for the Ethiopian private sector, particularly those in the manufacturing industry that opening up for regional and international competition is inevitable. “ The COMESA Free Trade Area provides a very good learning ground for our industries, since it exposes them to international competition step by step,” Kebede added.

The Minister also called upon local companies to give due attention to enhancing their competitiveness at national regional and international levels.

AACCSA President Elias Geneti on his part said that AACCSA has been undertaking various business promotional activities to promote trade and investment in Ethiopia.

According to the president the international trade fair is one among the most notable business promotional activities that have been adding so much value for the business community in terms of promoting their products and services, establishing business linkages with trading partners and sharing experiences and know hows with international and local companies among others.

Elias further said several foreign manufactures that have participated in ACITF events have met Ethiopian business partners with whom they established lasting business relations. Ethiopian products have found buyers for their products from foreign participants by making use of the opportunities created by the international trad fairs.

“ I do have a firm belief that the 18th edition of ACITF would serve similar purpose in enhancing the synergy between trade and industry and of course, benefit all participants and the visiting public one way or another, ” he said.

ACITF is the leading and well organized brand in Ethiopia’s promotion industry. This largely owes to the unreserved support from stakeholders organizations, and above all the loyal customers that have placed their trust on the chamber.

ACITF which was started a decade and half ago now reached its 18th edition with outstanding achievements in all sorts of indicators; growing number of participant companies, ever increasing interests by foreign companies to attend the events, the promotional and business networking benefits gained by participating companies and much more.

Encouraged by these results, the chamber has extended its interventions in organizing specialized fair that focuses on Agriculture and Agribusiness( AGRIFEX) which will be held in June for the 7th time and the four Tour and Tourism Fair in April for the Third round.

In addition to these Three Fairs, the president announced the introduction of additional new General Trade Fair called Addis Chamber Meskerem International Trade Fair (ACMITF), which will be held in September,2014.

Elias indicated that the development objectives of developing country like Ethiopia is building strong industrialized economy that can help transforming lives of their citizens. Attaining sustained economic development through building strong industrialized economy is only possible when it is efficiently integrated with trade, both domestically and internationally.

AACCSA Secretary General Getachew Regassa on his part said that the International Trade Fair that takes “ Trade and Industry for Sustainable Development” as its motto, is accompanied by a symposium organized as a side events.

ACITF has been the leading and most attended trade and investment promotional event in the country, according to Gashaw. As a leading membership based organizations in Ethiopia, its contribution to prompting trade and investment in the country is commendable.

The trade fairs have had far reaching impacts on the country’s business by introducing thousands of foreign companies to Ethiopian markets as suppliers of goods and services. The past editions of ACITFs were also one of the gateways for foreign companies that have engaged in various investment projects across the country.

Encouraged with these positive outcomes,AACCSA has extended its endeavours to enhance the number of annual events from just one a few years ago to four regular fairs per annum. Out of these, two are specialized fairs and the other two are general events that attract hundreds of participants from Ethiopia and many countries around the world.

AACCSA had also made notable strides to enhance the quality of of the events from time to time. In a view of this, “We have made positive changes in the 18th edition of ACITF by procuring new carpets to cover the ground at the exposition pavilions and new partitions to improve convenience to our most valued participants.” The next edition of the event shall be furnished by brand new rubber halls to transform AACCSA’s promotional events to the highest professional standards.

The 18th ACITF organized by AACCSA has been opened free from February 20- 26, 2014.

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Allana will go on a road show among major Israeli investment institutions, including Migdal.

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Sources inform ”Globes” that executives of Canada’s Allana Potash Corporation (TSX: AAA) are due in Israel soon to review the possibility of a dual-listing on the Tel Aviv Stock Exchange (TASE). Earlier this, Allana signed a cooperation agreement with Israel Chemicals Ltd. (TASE: ICL) to jointly develop Allana’s Danakhil potash mine in northern Ethiopia.

The sources added that as part of the review of a dual-listing, Allana will go on a road show among major Israeli investment institutions, including Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). If it goes ahead with the dual listing, it will probably be included in the TASE Mid-Cap Index. Israel Chemicals is listed on the Tel Aviv 25 Index with a market cap of NIS 43 billion ($12.3 billion).

Under the strategic partnership, Israel Chemicals will acquire 16% of Allana for $23 million, and will increase its stake to 37% after exercising warrants that were issued it. Allana will use the proceeds to develop the mine. Israel Chemicals will provide technical assistance to develop and operate the Danakhil mine, and will purchase and sell the mine’s output. Israel Chemicals Africa director Yoram Cohen was appointed a director in Allana.

The mine obtained all the necessary permits last year, and has broad support among Ethiopia’s leaders.

Published by Globes [online], Israel business news – www.globes-online.com – on February 26, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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How one African country is changing how we feed the world.

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By Khalid Bomba & Dan Glickman

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Last year, a bipartisan group of 23 members of Congress, hosted by the Aspen Institute, travelled to Ethiopia to get a firsthand view of the progress the country was making in modernizing agriculture and smallholder farming. This was the largest congressional delegation to visit sub-Saharan Africa in decades—maybe ever. This trip served to brief the congressmen on how a unique Ethiopian government agency, dedicated to agricultural transformation, is emerging as a model for bureaucratic collaboration and helping to feed millions of Ethiopians.

Ethiopia is one of many African countries deeply affected by food insecurity—estimates of the portion of Ethiopia’s population without secure access to food exceeds 3 million in some seasons. That means that in a given year, almost 1 in 10 Ethiopians will struggle to have access to “sufficient, safe, and nutritious food” for themselves and for their families. Yet, in 2013, the World Food Prize—an organization that highlights individuals and groups who have increased the quality, quantity, or availability of food in the world—recognized Ethiopia for demonstrating some of the greatest progress measured in the Economist magazine’s Global Food Security Index. As we look ahead at global food security planning for the next century, Ethiopia is an important example of how leaders in government and other sectors can successfully align their food systems planning.

Fighting an uphill battle against the challenges of food insecurity; climate; and systemic gaps in the quality of infrastructure, education, capital finance, and nutrition, Ethiopia has successfully brought the percentage of its population living in extreme poverty as defined by the World Bank from 55 percent in 2000 to 29.6 percent in 2011. More recently the country has reduced the number of its population below the global poverty line down from 77.6 percent in 2012 to 66 percent in 2013, with the average food supply improving by 117 kcals per day during the same period. That means enough food for another small meal for everyone in Ethiopia. And to put it in perspective, in 2007 the United States had enough food supplies to support more than 3,700 kcals per capita.

Ethiopia’s great progress is a result of the country’s strategy of ambitious policy commitments and supportive programs around agricultural development. Ethiopia has invested in the establishment of agricultural centers to train nearly 60,000 extension workers across the country, significantly increased road density to connect all administration districts with all-weather roads, and is planning to increase irrigation coverage and bring electricity to 75 percent of the population.

To address low smallholder farmer productivity, Ethiopia has also invested in agricultural research and development (particularly improved seed varieties and breeds, and farming practices), timely access to and use of high-quality inputs (such as fertilizers, seed), and expanded knowledge dissemination networks to smallholder farmers.

We had the eye-opening opportunity to explore this success while visiting Ethiopia’s Agricultural Transformation Agency (ATA) this fall, which works in innovative ways across sectors to increase yields, enhance market linkages, and implement safeguards for those most at risk.

Further, the ATA has matched these investments in productivity-enhancing technologies with interventions to ensure that smallholder farmers have financially remunerative markets for their production. Smallholder farmers have traditionally had limited access to markets due to the challenge of aggregating thousands of small harvests across vast geographic areas and their often low bargaining power.

To overcome this challenge, Ethiopia has focused on supporting the formation of farmers’ associations and cooperatives to operate as commercial businesses. With the creation of the Ethiopia Commodity Exchange, farmers also have access to real-time price information, which lessens the traditional problem of price asymmetry.

Given the fragile nature of most rural communities emerging from traditional livelihoods, and the recurrence of droughts and more unpredictable weather patterns, Ethiopia has invested in the resiliency of its farming communities. These efforts include the Productive Safety Net Program, which contracts the unemployed for projects that will enhance the country’s infrastructure. Funded by a consortium of more than 10 governments and international agencies such as the World Bank, this program is a testament to the power of international partnership to change the facts on the ground.

It is from Ethiopia’s ground-level innovations that global leaders are identifying effective systems for scalable solutions, and then implementing them across regions through the engagement of the international community. Various countries are now adopting pieces of this model for implementation in their own nations. Tanzania is one example, and is working on implementation through its new Southern Agricultural Growth Corridor of Tanzania (SAGCOT) launched in 2011.

One group coordinating this type of activity on the global level is the Aspen Institute’s Food Security Strategy Group, in which we are both honored to play a part. This group of global leaders from across sectors is tackling the challenge of scaling ground-level solutions by identifying high-potential areas for action—in particular the coordination of market-based approaches, alignment of food security with other prioritized agendas, and best practices communication. The group convened last summer in Morocco, and is preparing to continue the deliberations in Rome and China in the coming months, to develop an action plan for its members.

Looking ahead, we must understand that, for global challenges as complex as food security, there will never be a silver-bullet solution. Therefore, the value in stepping back to build a coherent, data-driven, and clear-eyed strategy, based on country-level innovations, could not be more evident. This approach is by no means easy, and building effective public-private partnerships across sectors and continents takes time. But the potential gains are impressive, and if Ethiopia is any indication, such investments will not only be critical to ensuring a globally food secure future, but also in building the effective bureaucratic infrastructure that will be indispensable in tackling a wide range of social policy challenges.

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Coffee futures spiked big in recent months mainly on back of the news that Brazil’s production could fall. The following comes from the International Coffee Organization’s Monthly Report, located here:

“Much of the recent price support has been due to speculation over the size of the upcoming Brazilian crop. The first estimate by Conab of the 2014/15 crop gives a forecast of 46.53 to 50.15 million bags, with an average of 48.34 million. If realised, this average would represent two consecutive decreases in Brazilian coffee production for the first time since 1977, and would suggest that the significance of the traditional biennial cycle of production is waning. The expected decrease is attributed to a reduction in the area of production, as well as lower levels of crop investment caused by falling coffee prices. Furthermore, particularly dry weather in January in several coffee-growing regions in Brazil has been seen as detrimental to the development of the 2014/15 harvest, supporting coffee prices over the course of the month.”

For those not in the know, Brazil’s production pretty much drives prices globally. Historically, Brazil’s crop was subject to biennial cycles. In a nutshell this means the plants produce a lot one year and then less the next year because it takes time for the plants to recover and produce as much. So the biennial cycle was on one year and off the next (more production one year less the next). But in recent years the production amounts have converged due to technological advances. The chart at the bottom of page 3 of this report shows the changes.

As best we can tell, the market started to believe technology was removing concerns that crop production could fall and now that estimates are falling and biennial cycles are disappearing crop yield predictability is becoming difficult. Stack on the recent drought in Brazil leading to more production problems, and up go the prices.

Global production is currently estimated to be 145.8 million bags. Consumption for 2009-2012 according to the ICO was as follows (million bags): 132, 136, 139, and 142 for an average annual growth rate of +2.4%. Multiply that times the 2012 142 million and you get 145.5 million bags for 2013…neck and neck with production. These numbers are always changing but the bigger point is global production and consumption are pretty tight. But that is only the current supply/demand picture.

Coffee consumption in the emerging markets is a fraction of consumption in more developed markets. Again, according to ICO, emerging markets account for 19% of global consumption. Further the EM average annual growth rate from 2009 to 2012 was +5% (compared to +2.4% for the world and +1% for traditional markets).

But the EM category doesn’t even include China and India. According to this ICO study, China consumed between 1.1 and 1.6 million bags in 2012. According to the August 2013 ICO report, India consumed 1.9 million bags. The USA consumed 22 million bags. China has 1.3 billion people and India has 1.1 billion while the US has 300 million. It doesn’t take a supercomputer to figure out if coffee catches on in Asia anywhere near the way it has in America the supply demand equation is going to spell big trouble for coffee bears.

And it does appear to be catching on. Various news articles indicate a large group of Western educated/employed Asians are returning to their countries post degree/job with a Western style appetite for coffee. This is supported by Starbucks’ (SBUX) recent earnings release which said that comps in China/Asia Pacific (CAP) were up +8% (compared to +5% in other regions). The report also shows that Starbucks opened 209 net new stores in CAP in the 12/29/13 quarter compared to 64 in EMEA and 142 in the Americas. As of 9/29/13 SBUX had 13.4k stores in the Americas, 1.9k in EMEA, and 3.8k in CAP. Again the store potential looking at relative populations is huge. The executives at Starbucks can certainly read, with CAP comps almost double that in the rest of the world and drastically lower per capita consumption rates that are on the rise we imagine they will keep expanding eastward in search of profits.

The future is uncertain but looking beyond the near-term Brazilian production concerns, it is hard to envision a world in ten or twenty years where coffee demand doesn’t exceed supply unless drastic increases come from the supply side.

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Ethiopia Drafts New Mining Policy to Empower Private Sector

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Ethiopia’s Mining Ministry has said it has drafted a new mining policy that will give the private sector more leeway to operate.

“The draft policy gives all exploration, development and marketing of mineral resources to the private sector,” Bacha Faji, public relations director at the Mining Ministry, told Anadolu Agency on Wednesday.

The role of the government will be limited to providing legal frameworks, supervision and follow up, he said.

The Ethiopian government has been facing criticism for engaging in trade and business – which business leaders say should be left to the private sector.

The government, however, defends itself, saying it is engaged in areas that are too risky to leave to the private sector, such as electric power and telecoms.

Faji said the new mining policy was meant to bolster the mining sector and increase Ethiopia’s foreign currency earnings.

“The policy aims to see the mining sector contributing ten percent of Ethiopia’s GDP in the coming 20 years,” he said. “The draft policy allows for the free engagement of both local and foreign investors in the sector.”

The draft policy has been submitted and is currently being scrutinized by pertinent government and legislative bodies, he said.

“We believe there will not be industrialization in the country without development of the mining sector,” said Faji.

The policy will be instrumental in generating employment and increasing household incomes through legalizing traditional miners, he stressed.

Ethiopia has significant potash, tantalum, gem stones, marble, coal and gold resource potentials, in addition to unknown quantities of oil and gas.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4854&Itemid=88

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Opal Exhibition Showcases Emerging Export Opportunity

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Though there has been evidence of the Wollo Opal’s existence since the 1930s, commercialized mining of the precious gem in Ethiopia has not lived up to its potential. In fact, it was only in 2008 that the government started exporting it.

One company which specializes in the production of the gem is Yeabzer Gemstones Gallery. The gallery which was established in 2012 sources its gems from brokers who in turn get them from farmers and miners in the Wollo region in Amhara national regional state.

Three types of Opals are available at the Bole Medhanealem gallery and they vary by grade. You’ll pay USD 30-50 per carat for the highest, which is hard to come by, USD 25 for the second grade, while the third grade opal can be sold for as little as USD 2. Of course the price of the gem increases when it is polished and shaped.

Yeabzer in association with Royal Opals, Takele Yilma and Meruts opal exports prepared its third exhibition at the Hilton on February 21, 2014. At the exhibition, Yeabzer displayed polished citrines, Tourmaline, Amethysts, Petrified Wood, and Amazonite among others. These jewels were also seen in the rough or set in jewels as finished products.

Esayas Abebe, owner of Yeabzer, says that the exhibition is prepared to create awareness about Ethiopian gems and promote them to embassies. Yeabzer previously sent the gems abroad, to be set in gold or silver. But now he started to provide that service here.

“The gem extraction system of Ethiopia is very backward,” Esayas says. “Besides that there are no limits imposed on the quantity exported to other countries. Precious stones are precious because of their rarity. The more a country exports a product, the more common it becomes, thus diminishing its value,”

Ethiopia earned USD 176 million from the export of minerals in the first half of this fiscal year. Australia is the largest producer of opals followed by Ethiopia. Large deposits are found in Honduras, Sudan, Hungary, Brazil, Mexico and the United States. Esayas says that he exports most of the company’s jewels to the USA China, Hong Kong and Thailand.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4855&Itemid=88

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ETHIOPIA: Tesco works to raise clothing factory conditions

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British retailer Tesco is making efforts to raise working conditions and ethical standards in Ethiopia’s textile industry before it begins sourcing garments from the Horn of Africa country.

“We think the garment industry in Ethiopia has great potential – both to produce good quality clothing for our customers and to create jobs and economic growth for the country,” a Tesco spokesperson told just-style.

“That’s why we’ve been working closely with suppliers and the government there to develop a strong, ethical factory base for the future.”

Tesco last month held training workshops in Ethiopia on industry-related ethical issues, and has started dispatching auditors to the country’s textile and clothing factories to assess ethical performance.

The company has stopped sourcing garments from a number of factories in Bangladesh over safety concerns highlighted following the collapse of the Rana Plaza building in April.

Meanwhile, Yoseph Assefa, chief technical adviser for the International Labour Organization (ILO) in Africa, is convinced that working conditions in Ethiopia’s textile industry are better than in Bangladesh.

“There is very good quality control in Ethiopia’s textile sector due to a high level of government inspection. By my assessment the working conditions in Ethiopia’s textile sector are higher than the conditions in Bangladesh,” he told just-style.

The Ethiopian government wants the east African country to become a hub for global big buyers such as Hennes & Mauritz (H&M), Marks & Spencer and Primark.

http://www.just-style.com/news/tesco-works-to-raise-clothing-factory-conditions_id120825.aspx

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TUSKON bridging Turkey and Africa

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The Confederation of Business and Industrialists Turkiye (TUSKON) held Turkiye-East Africa Trade Bridge 2014.  The trade fair that invited eleven countries from East Africa, including Ethiopia brought together big Turkish companies with business owners from Africa.
“What we did for the East African trade fair was bring the companies together in a way that they would be able to make deals. The companies were able to do exactly that. There are some companies that have bought machines for their business here,” said Ahmet Yalman, Public Relations Coordinator.
TUSKON is a non-governmental and non-profit umbrella organization representing 7 business federations, 211 business associations and over 55,000 entrepreneurs from all over Turkey. The organization has hosted several regional and worldwide trade fairs in the last few years alone.
Turkey’s export to East Africa is worth USD 813 million per year, while imports from the region to Turkey amounts to USD 160 million annually, according to 2013 figures. The country also announced it is planning to invest up to USD 400 million in Africa just this year.“When we do these fairs, we choose companies that meet our standards. We look at the companies’ turnover, number of employees and investment capacity. Turkish companies that participate in these trade fairs expect to meet with the best companies. We want to bring respected business people and respected companies together,” Yalman said.
One participant of the Turkiye-East Africa Trade Bridge 2014 trade fair was Simeret Abate, owner of Mulmul Bakery.
“It was really a good opportunity for me; I have learned so much. I got to see many things and met various companies and I have been able to make some deals regarding machineries and raw materials order for my business,” she told Capital.
TUSKON’s upcoming trade fair is the Turkiye-Africa Women Entrepreneurs Trade Bridge to be held starting February 26th to March 1st in Istanbul.
“The participants for this trade fair will only be women; we wanted to do this because there aren’t really other trade shows that are targeting just business women. We also want to encourage women business owners and provide them with different opportunities so that they become stronger,” Yalman said.
He also stated that more than 300 companies from 54 countries in Africa will be participating, while over 500 Turkish companies will take part as well.
“From Ethiopia, eight companies will be participating. The number of participants per country is limited,” Yalman explained.
Besides organizing trade shows and bringing companies together, TUSKON also encourages Turkish companies to come and invest in Ethiopia.
“Our other aim is to bring Turkish investment here. Ethiopia is a textile and agriculture country, the government is also promoting and working on attracting investors to come. That is why there are a lot of textile companies here,” Yalman said.
As the organization has a lot of members, it always encourages them to visit Ethiopia and explore investment opportunities, he said.
“In Turkey, all agricultural land is already occupied, so companies seek other countries and invest. Many textile companies have relocated to Ethiopia and many more are planning to do so because there are many convenient things here such as; cheap labor, cheap electricity and a lot of government support that makes it easer to get land and other things,” Yalman said.
He also confirmed that there are several Turkish companies in the textile sector in the process of investing in manufacturing plants soon.
TUSKON has five representative offices in Brussels, Washington, Moscow Beijing and Ethiopia as well as partner organizations in 140 countries. The Ethiopian office that recently opened, works in partnership with Nejashi Ethio-Turkish International Schools.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4091:tuskon-bridging-turkey-and-africa-&catid=35:capital&Itemid=27

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Ethiopia Hopes to Become a Chinese Textile Hub

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The Ethiopian Textile Industry Development Institute (ETIDI) says the call by Ethiopian President Mulatu Teshome in January for Chinese clothing and textile companies to invest in his country is grounded in good sense.

“Ethiopia offers cheap labor, free rent, cheap electricity, duty-free import of machinery and goods, favorable rules and regulations, cheap air freight, quality and Ethiopian cotton, ” Bantihun Gessesse, institute spokesperson told just-style.

And his optimism is backed by Sun Guoqiang, president of the Chinese Chamber of Commerce in Ethiopia, who told just-style: “China is looking to strengthen bilateral relations this year with Ethiopia’s textile sector as it has identified many opportunities and because China is looking for alternatives in Africa.”

Teshome highlights that China needs to keep its production costs down for its textile industry to be globally competitive.

He also adds that Ethiopia is ready to take on a portion of the 80m manufacturing jobs that China is expected to shed over the next few years due to rising labor costs.

Ethiopia’s clothing and textile sector is undergoing rapid expansion fuelled by foreign investment.

And while there are as yet no serious Chinese investors in Ethiopia’s textile industry, Chinese shoe manufacturer Huajian has relocated production facilities to Ethiopia to escape rising costs at home.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4853&Itemid=88

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Forum emphasizes FDI role in light manufacturing

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Formulating, implementing and utilizing industrial policy would help in realizing high quality product in GTP2.

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The 5th High Level Forum for the Phase II Policy Dialogue of Industrial Development in Ethiopia stressed Foreign Direct Investment (FDI) inflow on light manufacturing industry.

Ethiopia focuses on industrialization to be led by export which is primarily supported by light manufacturing. Thus, formulating, implementing and utilizing industrial policy would help in realizing high quality product in Growth and Transformation Plan II (GTP2).

The forum discussed international comparison of manufacturing performance in line with Ethiopia’s light manufacturing targets, roles and performance of industry development institutes in Ethiopia positioning Kaizen movement in GTP2 and long-term industrialization vision.

National Planning Commission Commissioner Mekonnen Manyazewal on the occasion said that the need to employ other countries experience in the context of Ethiopia would help as an ingredient in various perspectives for the preparation of the second phase of national plan, GTP2.

“We have now gained experience from the implementation of GTP I. We are also aware of the successes and the challenges. So, we need to define indicators to monitor the progress and benchmark countries’. We need FDI to ensure technology transfer, to help us build capacity and link to domestic enterprises,” said Mekonnen.

Professor Kenichi Ohno from National Graduate Institute for Policy Studies, in his presentation indicated that Ethiopia’s current light manufacturing capability is very limited by global standards. There is long way ahead. However, recent light manufacturing FDI inflow and rising investor interest in Ethiopia are good signs.

“Ethiopia should have its own definition of ‘light manufacturing’ to fit its policy objectives. There must be reliable data of value addition, trade and FDI for international comparison and monitoring progress during GTP II and toward 2025,” Ohno suggested.

http://www.ethpress.gov.et/herald/index.php/herald/news/6095-forum-emphasizes-fdi-role-in-light-manufacturing

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Factory says facing  problem in power, raw material supply

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Else Addis Industrial Development Plc said that it is facing quality raw material and power supply shortage in its investment venture.

Briefing journalists during a visit organized by Government Communication Affairs Office Monday, Factory Manager Nevzat Kerim Aydin said that they are facing problem in the area of power and raw material supply in the production process.

According to the Manager, there is a potential for cotton, labour and geographical option in this country that make them continue their investment though they face problem in the supply of cotton both in quality and quantity.

He further indicated that following discussion on the problem, the government has provided them land around Omo river to run cotton plantation on their own at a cost of 200 million USD.

As to him, they have already developed 400, 000 hectares of land and plan to produce cotton equal to the total production of the country within five years. The Manager also said that apart from textile factory, they have different investment options in the country.

Producing high quality products employing skilled work force is instrumental in becoming competitive in the global market, he said.

Though there is the potential to export their products to African market, they prefer European or American ones because of the price offer, he said, adding they plan to enter the African market in the near future.

Nevzat Kerim Aydin further pointed out that they are not using chemicals in the production process that affect the environment except the cotton dust which has no environmental impact.

He further noted that the company’s infrastructural development in and around the factory positively impacts the local community and contributes to their well-being.

Else Addis launched its investment in Ethiopia in 2009. The investment has two phases and currently they are running phase on 46,000 square meter of land. The factory employs 1,500 workers of which 95 per cent are Ethiopians.

Presently, the factory produces 100, 500 tonnes of yarn monthly and plans to increase its total textile production from 750, 000 metric tonnes per month to 1,000,700 metric tonnes. Else Addis Industrial Development P.L.C is a fully vertically integrated textile factory located in Adama town.

http://www.ethpress.gov.et/herald/index.php/herald/news/6110-factory-says-facing-problem-in-power-raw-material-supply

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Egypt plans dam-busting diplomatic offensive against Ethiopia

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CAIRO, Feb. 27 (UPI) — Egypt may be in the throes of political turmoil, but the government has begun a diplomatic offensive aimed at stopping Ethiopia from building a huge hydroelectric dam on the Nile River that Cairo says will be a disaster for the Arab world’s most populous nation.

The military-backed administration began its effort to internationalize the thorny issue in hopes of gathering support for its case against Ethiopia, where the Blue Nile rises in the northwestern highlands, after bilateral negotiations deadlocked in January.

“The campaign initiated by Egypt … aims to persuade the international community to reject the dam’s construction because it may lead to further conflict and instability in the region of the Nile Basin,” an Egyptian diplomatic source in Cairo told the Middle East’s al-Monitor website Feb.19.

“More negotiations with Ethiopia only waste time and directly threaten Egypt’s water security,” said the source, who declined to be named because of the sensitivity of the issue.

“We realized that Ethiopia doesn’t want genuine solutions to end the crisis, but is only trying to portray Egypt as approving of the dam’s construction to facilitate access to the funding.

“But Ethiopia hasn’t provided genuine guarantees the dam will not affect Egypt and has shown no intention to amend the technical specifications to minimize the potential risks according to the report by the international experts’ committee, which recommended reconsidering the dam’s safety studies.”

Ethiopian Prime Minister Hailemariam Desalegn said Feb. 13 that Addis Ababa will not back down on the $4.8 billion Grand Renaissance Dam, which will be the largest in Africa.

He observed that since there’s no international court specializing in arbitrating water disputes, Cairo had no choice but to negotiate to reach a settlement acceptable to everyone.

Gamal Bayouni, secretary-general of the Egyptian-European partnership at the Ministry of International Cooperation in Cairo, said Egypt now seeks to “target all countries that provide technical assistance for designing and building the Renaissance Dam through private contractors and also the states likely to fund to construction of the dam.”

On Feb. 6, Egypt’s minister of water resources and irrigation, Mohamed Abdul Muttalib, visited Italy, considered to be Ethiopia’s main technical supporter in building the dam.

Italy’s Salini Construction Corp. is building the 6,000-megawatt facility on the Blue Nile, the main tributary of the Nile that flows northward through nine African states to the Mediterranean.

The Blue Nile accounts for 85 percent of the Nile’s water flow. It joins the White Nile, whose headwaters lie in the East African highlands in Burundi.

Muttalib, who was accompanied by Egyptian Foreign Minister Nabil Fahmy, said after a series of meetings that “the visit has achieved its goal. Italy has understood Egyptian concerns.”

Egyptian sources say Muttalib’s next trip will be to Norway, which is one of the countries funding the dam project.

But it’s not clear at this stage whether Egypt’s diplomatic offensive will be able to secure enough international support to influence Addis Ababa.

The Ethiopians consider the Renaissance Dam and the other dams they plan to build as a symbol of national pride as they will produce electricity that will transform the economic prospects not only for their country but for much of seriously under-developed East Africa as it stands on the cusp of a major oil and gas boom.

For Cairo, maintaining the current flow of Nile water is a matter of national security.

Egypt’s last two presidents, Hosni Mubarak, overthrown Feb. 11, 2011, and Mohamed Morsi of the Muslim Brotherhood, ousted by the army July 3, 2013, both made thinly veiled threats to use military force to uphold Egypt’s current access to the waters of the world’s longest river.

The current military regime in Cairo is focused, so far at least, on riding out the domestic political turmoil and restoring stability amid a growing Islamist insurgency.

But it can’t afford to let this issue slide. The Grand Renaissance Dam is to become operational in 2017.

Egypt, with its 84 million people totally dependent in the Nile for water, cites British agreements in 1929 and 1959 that guarantee it the lion’s share of the water and a veto over upstream dam construction.

But Ethiopia, along with Tanzania, Rwanda, Kenya and five other African states with growing populations and mounting demands on agriculture, dismiss these accords as colonial relics.

http://www.upi.com/Business_News/Energy-Resources/2014/02/27/Egypt-plans-dam-busting-diplomatic-offensive-against-Ethiopia/UPI-13631393533111/

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Renaissance dam has more space for cooperation: Outgoing Italian Ambassador

Addis Ababa, 27 February 2014 (WIC) – Italian Ambassador to Ethiopia Renzo Mario Rosso said that the issue of Ethiopian Grand Renaissance Dam (GRD) has more space for cooperation among the riparian countries.

In an exclusive interview with The Ethiopian Herald yesterday, Ambassador Rosso said that understanding one another would enable riparian countries benefit from the low cost energy to be produced. He added that all technical issues of the dam have fully been met by Ethiopia as far as his knowledge is concerned.

Ambassador Rosso also expressed his strong conviction that Salini Construction would successfully bring the construction into reality. “I can say the Ethiopian government knows Salini more than I do. And more than words can tell, the construction firm has international credence and full capacity to do so.”

The Ambassador, who concluded his tenure in Ethiopia, perceives the relations between the two sisterly countries dating back to the years in the 1890′s has complimented the growing “special relationships”_ in his own words— between his country and Ethiopia in all spheres, political, economic, and social and more.

He also described his stay in Addis as rewarding: “My stay here has been so rewarding because Addis has become a truly African city and Ethiopia has been changing over the years.”

Regarding the political cooperation between the two sisterly countries, he noted that Ethiopia and Italy have been co-chairing the IGAD Partners Forum showing their increased collaboration. “We share common vision concerning the stability of the Horn of Africa.

Italy signed bilateral protocol for a project concerning the stabilization of Kismayo area and full agreement with Ethiopia and IGAD administration. In this case, we are trying to be a sort of loud speaker for the efforts made so far”, the Ambassador added. According to him, IGAD has become an important stakeholder in promoting peace initiatives in Somalia and South Sudan.

http://www.waltainfo.com/index.php/editors-pick/12471-renaissance-dam-has-more-space-for-cooperation-outgoing-italian-ambassador

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Ethiopia, Korea sign MoU

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Addis Ababa, 27 February 2014 (WIC) – The Governments of Ethiopia and the Republic of Korea (RoK) signed a Memorandum of Understanding to collaborate in science, technology and innovation activities here yesterday.
The agreement was signed by Ethiopian Minister of Science and Technology (MoST) Demitu Hambisa and Korean Science and Technology Policy Institute (STEPI) President Dr. Jong Guk Song.
According to the agreement, the two parties would collaborate in the field of science, technology and innovation policy, research and development, management strategy, exchange of scientific information and researchers when it seems desirable for short term and long term periods, conduct training and education programmes on science and technology policy among others.
Speaking at the signing ceremony, Demitu said that the relation between the two sisterly countries started long ago. This relation was further solidified when Ethiopian soldiers sacrificed their lives during the hard time of Korea in the beginning of 1950′s, she added.
She also said: “Today’s MoU signing on science and technology policy between MoST and STEPI indicates the continuation of our long-standing relation in a wider cooperation.”
Dr. Song also said: “We are here to discuss further and more concrete cooperation between us. STEPI has established International Innovation Cooperation Centre as an effort to promote the effectiveness of our development cooperation with our partner countries and institutes in the field of technology innovation. This centre supports partner countries to achieve national development goals by improving their innovative capabilities.”
The agreement is expected to strengthen closer ties and greater understanding between the two parties through promoting mutual benefits.

http://www.waltainfo.com/index.php/explore/12472-ethiopia-korea-sign-mou

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Irish Credit Unions League to set up shop in Ethiopia

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Addis Ababa, 27 February 2014 (WIC) – The Ethiopian government has selected the Irish League of Credit Unions to develop credit unions in the county in what is described as “landmark contract”.
According to the journal.ie, the charitable arm of the Irish credit union movement, The Irish League of Credit Unions’ International Development Foundation (ILCUF), has been awarded an exclusive two-year project which aims to allow half a million people in Ethiopia access “affordable and flexible” financial services.
Tender
The foundation secured the contract after a lengthy and competitive tendering process and has already been involved in the development of credit union movements in Ghana, Gambia, Liberia and Sierra Leone following their destructive civil wars.
The foundation is a registered charity and all administrative costs are met by the Irish League of Credit Unions (ILCU). All contributions go directly towards supporting the various projects.
It is hoped that the project will help women in particular, through enhanced access to affordable and flexible financial services, mainly savings and loans facilities.
Rural communities
The Minister for Trade and Development, Joe Costello said the ILCUF has considerable experience in working with credit unions in developing countries, stating: “I am sure that ILCUF’s work in Ethiopia will also help lift many people in rural communities out of poverty. The Embassy of Ireland in Addis Ababa supported the ILCUF bid and the award of the contract is especially welcome since it reflects wider efforts by the Government to secure more business for Ireland through multilateral organizations”.
“We are delighted to be granted this major project to support the development of credit unions in Ethiopia. Ireland has had a proud tradition of helping in Africa. The foundation was set up to maintain this tradition, sharing_the success of the Irish credit union movement with similar movements in the developing world,” said Kieron Brennan, ILCU CEO.
He added that winning the contract is a huge endorsement for the Irish credit union model and a great boost to partner countries fighting to alleviate people from poverty.

http://www.waltainfo.com/index.php/explore/12474-irish-credit-unions-league-to-set-up-shop-in-ethiopia-

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Ethiopia takes major steps to combat impacts of climate change: MoA

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Addis Ababa, 27 February 2014 (WIC) – The Ministry of Agriculture (MoA) said that Ethiopia has taken major steps to buffer the impact of climate change.
Agriculture State Minister, Sileshi Getahun, made the remark here yesterday at a National Forum on Climate Change Adaptation held under the theme: Building Community Resilience through Innovative Adaptation Practice.
The forum is organized by Canadian Hunger Foundation (CHF) and Organization for Rehabilitation and Development in Amhara (ORDA) in partnership Ministry of Environment and Forest (MoEF).
The key objective of the forum among many is to share knowledge between farmers, government, research institutions and international organizations on the effects of climate change on agricultural development.
Sileshi has also applauded the Organization for the Rehabilitation and Development of Amhara (ORDA) for its successful activities to combat climate change through conducting rehabilitation works.
Former Director General of Environmental Protection Authority and Advisor to the Minister of MoEF, Dr. Teweldeberhan Gebre-Egziabher on his part said ORDA has achieved remarkable results through teaching the people on how to preserve its environs.
“If we want to go on living, we, humans, must unite to act together and neutralize climate change before it becomes devastating to us all,” he told participants of the forum.
Rehabilitating degraded lands and combating the impacts of climate change are the key factors to ensure food security and defeat poverty, Dr. Teweldeberhan noted.
He added that all stakeholders should support activities of ORDA so that it can continue its rehabilitation activities more strongly, thus tackling the impact of climate change.
Executive Director of ORDA, Dr. Amlaku Asres, said an effective management of resources is fundamental to develop a sustainable agricultural production.
ORDA has so far managed to reach over 3.5 million people through its various interventions that include water shade management, reforestation, biodiversity, potable water supply, hygiene and sanitation, small scale irrigation, improved crop varieties and livestock production, he said.
Country Director for (CHF), Salfiso Kitabo, on his part said the Climate Resilient Green Economy (CRGE) policy objectives and the associated instruments to implement these objectives, has set Ethiopia on the path to addressing the challenges and opportunities provided by climate change.
CHF with the support from the Canadian government, have been working alongside the federal, regional and zonal Ethiopian government ministries, ORDA, research institutes and universities to learn together, document best practices.

http://www.waltainfo.com/index.php/explore/12473-ethiopia-takes-major-steps-to-combat-impacts-of-climate-change-moa

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Author: E.G.Woldegebriel

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At 6:45am the first bus halts outside the main gates of the Eastern Industry Zone. The doors clang open. Bleary-eyed young men and women begin to emerge and brace themselves against the chilly morning air. A second, then a third and fourth bus arrive from the nearby dormitories, disgorging more and more workers dressed in the turquoise polo shirts that employees are required to wear on the shop floor at Huajian, one of China’s largest footwear manufacturers.

Each member of staff pauses briefly at the factory door and presses an identity tag against the electronic sensor that records their clocking-in time. Minutes later small groups of employees begin to assemble inside and outside the main buildings. Lines are formed, calisthenic drills executed and chants recited before workers march briskly to their stations and begin their duties.

These scenes, played out in thousands of factories across China each day, seem more than a little incongruous here in Dukem, about 40km south of Addis Ababa, Ethiopia’s capital. But they could become an increasingly familiar sight if, as the Ethiopian government hopes, Chinese companies move more light manufacturing operations to this booming East African country.

“With the fast growth of its economy, Ethiopia will become a promising land full of trade and investment opportunities,” wrote Ethiopian Prime Minister Hailemariam Desalegn at the first Africa-China Commodities, Technology and Service Expo, held in Addis Ababa in December 2013. “More Chinese enterprises will be attracted to Ethiopia with technology and investment, which will achieve win-win cooperation.”

Chinese manufacturers, facing rising costs at home, are well aware of Ethiopia’s advantages: cheap labour and land leases; low-cost and reliable electricity (with more to come soon as a series of hydro-electric dams turns the country into an exporter of electricity) in Addis Ababa, where most manufacturing is situated; easy access to cotton, leather and other agricultural products; and proximity to key markets in Europe and the US.

This explains why Addis Ababa was chosen as the location for this fair, the first of its kind to be held on the continent to showcase Chinese companies and generate business. “We selected Ethiopia as the destination of this expo because we think Ethiopia is a place many Chinese industries would like to relocate to,” said Gao Hucheng, China’s minister of commerce.

Opportunities in Ethiopia

Huajian, which produces shoes for Guess, Tommy Hilfiger, Naturalizer and other western brands at its Dukem factory, is keen to take full advantage of the opportunities Ethiopia affords. “We are not coming all the way here just to reduce by 10%-20% our costs,” insists Helen Hai, former vice-president of Huajian Group, who is now advising the Ethiopian government on how to attract Chinese investors. “Huajian’s aim here is in 10 years’ time to have a new cluster of shoemaking. We want to build a whole supply chain,” she adds.

The company’s vision is bold. Huajian began producing shoes in Ethiopia in January 2012 and the company now employs 2,500 people in the country, 90% of whom are local. Huajian currently exports more than US$1m worth of shoes from Ethiopia to Europe and the US each month. But within a decade, Huajian hopes Ethiopia will become a global footwear industry hub, providing jobs to more than 100,000 local workers, 30,000 of whom will be directly employed by Huajian.

Together with the China-Africa Development Fund, a private-equity facility, Huajian has committed to invest $2bn over the next 10 years to create a “shoe city” that will provide accommodation for as many as 200,000 people, as well as factory space for other footwear, handbags, accessories and components producers.

Hai is convinced Ethiopia will become “the future manufacturing floor of the world”. She believes it should follow China’s path and begin with labour-intensive industries such as footwear and garment production. “The labour cost in shoemaking in China is about 22% of the overall cost portfolio,” she explains. “In China today the cost of each labourer is $500 [a month]. In Ethiopia it is only $50. So the question comes down to the efficiency.” If one Ethiopian worker can produce the same number of shoes as one Chinese worker then labour costs could be reduced from 22% to 2.7% of the new total cost.

People argue that African efficiency is low, Hai says, but she maintains that with one year’s training Ethiopian workers could achieve “70% of the efficiency” of workers in China.

The profit motive for relocation to Ethiopia is clear. But other factors – excise breaks, tax holidays and cheap land rental offered to investors in certain preferred sectors – make Ethiopia attractive too, Hai claims. For example, Ethiopia is eligible for schemes like the US’s African Growth and Opportunity Act (AGOA) and the EU’s Everything but Arms (EBA) treaty, which allows exporters from many African countries duty- and quota- free access to the US and Europe.

What is in it for Ethiopia? While the Chinese are taking advantage of Ethiopia’s cheap labour, “they bring technology, know-how and training”, Hai says. “This will help the country create jobs and bring exports. That is truly the root of industrialisation.”

Chinese investment activity

Grand plans like Huajian’s, however, are few and far between. Annual levels of Chinese investment in Ethiopia are low, totalling about $200m in 2013, according to the Chinese Chamber of Commerce in Addis Ababa. This marks a substantial increase from virtually nothing in 2004 and $58.5m in 2010. But just $50m of the current investments are in manufacturing, mainly in small and medium enterprises producing steel, cement, glass, PVC, paper, furniture, mattresses, blankets, shoes and other products. Instead, Chinese economic activity in Ethiopia tends to be focused on major infrastructure programmes – roads, railways, telecommunications and electricity transmission – which the Ethiopian government pays for with financial backing from Chinese institutions.

“This is substantial activity, at least in terms of the value of these projects,” explains Jan Mikkelsen, International Monetary Fund resident representative in Ethiopia. Last December’s China-Africa Expo reflected this pattern with few
 of the more than 130 Chinese companies 
exhibiting looking to open factories in Ethiopia or elsewhere on the continent. Instead, many, like China Machinery Engineering Corporation (CMEC), with its large, prominent stand, were hoping to secure lucrative government contracts.

“Ethiopia is a very big potential market,” says Jin Chunsheng, CMEC vice-president. “There is the five year [Growth and] Transformation Plan and we expect to see a lot of power and infrastructure business which is related to the work of our company.”

CMEC is currently negotiating 
to build fertiliser plants with Metals and Engineering Corporation, a major state-owned Ethiopian enterprise, Jin adds.

Although manufacturing in Ethiopia is beginning to rise, it accounted for only 12% of GDP in 2012-13, compared to 43% for agriculture and 45% for services, according to government figures. The sector’s annual growth, however, was 18.5%, as opposed to 7.1% and 9.9% respectively for agriculture and services.

Yangfan Motors, a subsidiary of Chinese automobile manufacturer Lifan, was one of a small number of exhibitors currently operating in Ethiopia. The company opened a car assembly plant in Addis Ababa in 2009. “We chose Ethiopia because it is secure and stable,” says Liu Jiang, Yangfan’s general manager. “Furthermore, the two governments have a good relationship and we think that this is a very important point too.”

High costs of doing business

Unlike many western countries, China has a policy of non-interference in domestic affairs, which has been appealing to African countries. Ethiopia’s adherence to China’s developmental state model shows that the two countries share a strong affinity.

Not surprisingly, business has been difficult for Yangfan. More than 83% of Ethiopia’s population live off subsistence farming in rural areas, according to the World Bank, and 90% of all car sales are used models. The company currently manufactures around 3,000 vehicles annually but only manages to sell one-third to the local market. Lifan had hoped to use its Ethiopian base as a regional hub, but so far has been unable to distribute abroad because Ethiopia is a landlocked country with high taxes and transport costs, Liu says. “To transport one container from China to Ethiopia is almost triple the cost of sending a container from China to Brazil,” Liu adds.

A container from Shanghai, China, travels 12,400km to the port of Djibouti, at a cost of about $4,000, and is then transported overland 865km to Addis Ababa, for another $4,000, Hai says.

A 2012 World Bank study on Chinese foreign direct investment showed that investors cited customs and trade regulations and tax administration as major constraints on their business. An under-developed financial sector and a dysfunctional foreign exchange market are other business impediments, Mikkelsen says. In the bank’s 2014 Doing Business report, Ethiopia slipped down one place to 125th and dropped from 162nd to 166th in terms of ease of starting a business.

Companies seeking short-term profits may not take the risk or feel that the in conveniences are worth staying the distance, says Lars Moller, lead economist at the World Bank’s Addis Ababa office.

Yangfan, however, is committed to the long haul, Liu says. Later this year, the company will move to a bigger factory in the same industrial complex as Huajian. Government environmental policies will begin to favour newer, less-polluting vehicles and the ongoing road and railway construction will significantly reduce transportation costs, he adds. “In 2014 we are planning to bring two new models, one of which is especially designed for the Ethiopian market.”

Ethiopia clearly has a long way to go on its path to an industrial economy that offers jobs to its people and sensible opportunities to foreign and regional investors. Much shoe leather will be worn out before that destination is reached. Ventures such as Huajian’s and Yangfan’s offer tentative hope.

Elissa Jobson is a freelance journalist based in Ethiopia. She is the Addis Ababa correspondent for The Africa Report and Business Day and also writes for The Guardian.

This article was first published by Good Governance Africa. 

Sourced  here

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Related posts

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-     The burgeoning opportunity in Ethiopia’s factories

-     Myths of Expediency

-     Economic development: The good news from Ethiopia, and what might make it even better

-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia: The Last Big Untapped African Market

-     The PC16: Identifying China’s Successors

-     World Bank sees China, Ethiopia as good fit

-     The Next Shanghai May Be in Africa

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“The macro story in East Africa echoes that of Africa, but more so and that makes it a relatively more attractive region,” says Catalyst Principal Partners managing director Rajal Upadhyaya.

Catalyst Principal Partners managing director Rajal Upadhyaya

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Catalyst is a private equity fund manager that invests in medium-sized businesses in Kenya, Tanzania, Rwanda, the Democratic Republic of Congo (DRC), Ethiopia, Uganda and Zambia. Its US$125m fund focuses on sectors such as financial services, retail, manufacturing, telecommunications and technology.

“We are backing the eastern Africa growth story [and] consumers. We are not backing businesses or services that are for the European markets or the North American markets.”

Catalyst has bought a majority stake in a Tanzanian heavy equipment rental and logistics business, marking its third investment in the country and the fund’s fourth deal. Catalyst is also invested in Ethiopian food and drink maker Yes Brands Food & Beverages, Tanzanian-based manufacturing conglomerate ChemiCotex Industries and Chai Bora, a leading Tanzanian tea manufacturer.

“We view Tanzania right now as being a very attractive destination for our capital,” says Upadhyaya. “It is a fast growing market. It is less competitive than a market like Kenya is [and] has lower penetration thus far. For instance, tea consumption in Tanzania on a per capita basis is probably about a quarter of what it is in Kenya. There is potential to double, treble the market. So from a dollar investor perspective we see attractive opportunities in Tanzania.”

Catalyst offers financial and advisory support to its investees and helps them expand. The fund invests $5m-$20m for strategic minority or control transactions.

Upadhyaya says Catalyst’s investments in Ethiopia and Tanzania are doing “quite well”. Fast moving consumer goods company ChemiCotex is undertaking “aggressive expansion in Kenya, Uganda and Rwanda”, particularly with its Whitedent oral care brand.

“In Ethiopia our water business is doing very well. We have just invested in new capacity in that business and we will continue to make investments there,” he says. “[However, it is] unlikely that Yes Brands will expand from Ethiopia into Kenya. The water sector here is fairly saturated and competitive whereas in Ethiopia there is lot of growth headroom. I think if it expands beyond its borders it will be more within the region that is less penetrated like South Sudan and Somalia. Those are more attractive markets I suspect than going south to Kenya.”

Upadhyaya describes the regional integration of Kenya, Tanzania, Rwanda, Burundi and Uganda under the East African Community umbrella as a “powerful driver of growth in business”.

“Before you had businesses that were set up alongside national boundaries and almost by definition then were limiting their target market… whereas once you get rid of the borders you open the boundaries [and] you are now looking at a market of 150 to 200 to 300 million people. Automatically you are creating so much headroom for yourself.”

Ethiopia’s potential

Upadhyaya describes Ethiopia as “an exciting market” with immense potential owing to its 90m strong population and fast economic growth.

“I think 70%-80% of what is consumed locally is imported into the market. So any business that undertakes local manufacturing or local servicing there has a lot of growth potential.”

However, Ethiopia has a young private sector compared to other countries in the region and is “relatively less sophisticated” in terms of the banking sector and access to good law firms, business advisors and reliable infrastructure.

“It requires a bit more heavy lifting [but] the growth potential in my view is very attractive,” says Upadhyaya. “You have to be able to navigate the market in order to be successful.”

Private equity and risk

Although Africa is viewed as a frontier for private equity and more funds are setting up here, the fundraising environment is still challenging.

“When you look at investors who want to invest in  private equity funds there is a bit of a dichotomy between people who are familiar with Africa and those who are not familiar with Africa,” Upadhyaya says, adding that many people need to be educated on “what it means to invest in Africa”.

“This difference between the perceived risk of operating in Africa and the actual risk of operating in Africa is something you need to educate some investors on.”

After setting up, a more pertinent issue in the nascent industry is raising awareness about private equity funds in markets such as Zambia, the DRC, and Ethiopia which have less exposure to  private equity.

“It is a very relationship driven market. There is very little intermediation in this market. So you need to spend a lot of time building relationships, making sure there that there is a good level of trust from which to base any future partnerships and that takes time. It’s a real effort.”

Private equity firms also have to do “a lot of homework” to understand the markets and sectors because there is limited access to crucial information.

“If I wanted to find out about the tea market in the UK I could buy half a dozen reports done by very capable consultancy firms. You can’t do that in this part of the world. There is no secondary research available at that same level as it is in western markets.

“In a nutshell, I think doing deals, undertaking transactions in this part of the world, is harder to do than in many other markets for these reasons. But the flipside is, once you do them, your value add is also more attractive. You can make significant differences particularly in the middle of the market by getting your core strategies right.”

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Sourced  here

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Related posts

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-     Treading a new path: Growing Ethiopia’s factory floors

-     Manufacturing in Africa:  An awakening giant

-     The burgeoning opportunity in Ethiopia’s factories

-     Ethiopia: The Last Big Untapped African Market

-     The PC16: Identifying China’s Successors

-     Private equity inflows will account for ‘half of FDI into East Africa in five years’

-     Africa’s Share Of Global FDI Increased Over The Last 5 Years – Ernst & Young

-     Africa’s solid FDI arbitration track record

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Power  generation projects  being accelerated to realize GTP goal

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Gibe III Hydro-power project is 82 per cent complete

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The Ethiopian Electric Power said that the construction of Ethiopian Grand Renaissance Dam, Gibe III, Genale Dawa (GDIII) and other Wind Farm Power Generation projects is being accelerated to realize the Growth and Transformation Plan energy sector goals.

Briefing journalists on the progress of ongoing mega power generation projects yesterday, Ethiopian Electric Power External Public Relations Head Miskir Negash said extensive efforts are underway to realize the GTP in the power generation sector aspiring to increase national power supply.

According to Miskir, the construction of Grand Ethiopian Renaissance Dam, Gibe III and GDIII has been accelerated with a view to increasing power supply and coverage of the country within the GTP period. Accordingly, the construction of GRD has reached 32 per cent. Currently, concrete filing works is underway predominantly. So far, the project has created 7,000 job opportunities and the number would increase as more works are commenced. Works are being undertaking day and night.

With regard to Gibe III project, Miskir indicated activities are underway to launch first phase power generation of the Project within a year. In so doing, two power units are equipped and would be made available with facilities to commence power generation in the early moths of 2007 E.C, he added.

He also noted that various construction phases of Gibe III, which is expected to increase the current energy capacity of power supply of the country by 94 per cent are nearing completion. Gibe III high kilo volt electric transmission line has already been completed while the power house concrete work is underway as well.

Concerning Genale Dawa (GDIII), Miskir also said that the project has reached 48.5 per cent. DGIII Hydroelectric, whose 60 and 40 per cent cost is covered loan from Chinese Bank and the Ethiopian government coffer respectively, will have an installed capacity of 254 MW when it goes fully operational.

He further indicated that the construction of Adama II wind farm project has also been accelerated with the capacity of generating 153 MW. The project is 40 per cent complete. The 230 KV electric transmission station and 33 KV tower works have already been finalized. The total cost of the project is 345 million USD provided by Axiom Bank of China and the Ethiopian government, he added.

Asked about the frequent power interruption in Addis and other areas, Miskir said that the problem is highly related with the low quality of transformers and other man-made causes like acts of vandalism on transmission lines.

Indicating that the Power is working with Metal Engineering Corporation (METEC) to make quality transformers available, he underlined that the problem would be overcome sooner and he called up on the public to prevent vandalism.

http://www.ethpress.gov.et/herald/index.php/herald/news/6121-power-generation-projects-being-accelerated-to-realize-gtp-goal

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Tourism generates over 1.38 bln USD in six months

Over 1.38 billion US dollars revenue was obtained from tourism in the first half of this Ethiopian budget year, according to the Ministry of Culture and Tourism.
Public and International Relations Directorate Director with the Ministry, Awoke Tenaw told WIC that the revenue was earned from 370,754 foreign tourists who visited the nation.

The number of tourists increased by 36 per cent compared to that of same period the previous year. The income has also increased significantly, he added.
The activities carried out to extend tourists’ period of stay, promote tourist sites and participation at international tourism trade fairs and exhibition contributed for the increase in revenue, he said.

According to Awoke, the average number of days tourists stay here has now increased to sixty days from six some six years ago.
The country had also participated in the trade fairs and exhibitions organized in Britain, France, Japan and Brazil, according to the director.

http://www.waltainfo.com/index.php/explore/12489-tourism-generates-over-138-bln-usd-in-six-months

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President calls on US companies to invest  in Ethiopia

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President Dr. Mulatu Teshome said Ethiopia is desirous of engaging US companies in various investment sectors in the country.

During talks with Corporate Council on Africa (CCA) delegation Thursday, the President said that Ethiopia is interested in engaging US companies in the manufacturing, power generation and infrastructural development.

The President briefed the delegation on investment opportunities in the country.

CCA President Stephen Hayes on his part expressed US companies’ interest to invest in Ethiopia in the manufacturing, power generation, infrastructural development and information technology as well.

He said the prevalence of peace and stability, manpower and the country’s rapidly growing economy are factors that attract many companies.

Also yesterday, the delegation held discussion with the Ministry of Foreign Affairs (MoFA) on best business and investment opportunities in the country.

As to Ministry Spokesperson Ambassador Dina Mufti, to empower Africa the Corporate Council make Ethiopia one of its targets and came to look business opportunities in the country.

Accordingly, the delegation had discussion with various business corporate and governmental bodies. The delegation was briefed on the investment opportunities by ministry officials.

Ambassador Dina also indicated that the two countries enjoy century-old bilateral relations. Predominantly in Ethiopia, US involves in the education and health sectors. However, in investment compared to China and Turkey the role of US is minimal. So, they have to work to fill this gap and they are acting to do so, he added.

The Council is committed to work in Ethiopia, Hayes said, adding East Africa has the highest priority.

The Corporate Council on Africa has 182 member companies. It predominantly works to interlink US and Africa in trade, business and economic aspects.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6141-president-calls-on-us-companies-to-invest-in-ethiopia

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Herbicides factory  80 per cent complete

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The Adamitulu Pesticides Share Company said that 80 per cent of a herbicides factory being constructed in Oromia State at a cost of over 40 million birr has been completed.

Company Deputy Manager Lema Bogale told ENA that installation of machinery and equipping the factory with essential materials are being carried out.

The factory will begin pilot production within two months thereby supplying products to farmers and investors engaged in the agriculture sector, he added.

Upon completion, the factory is expected to produce up to 6,000 liters of “2, 4-D” herbicide, which is effective in killing broad-leaved weeds, per day.

Widely used to control broad-leaved weeds, some grass and woody plants, ‘2, 4-D’ (2,4-Dichlorophenoxyacetic acid) acts as a hormone plant growth regulator.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6140-herbicides-factory-80-per-cent-complete

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A glimpse into the progress of the GTP

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Last week, the Council of Ministers of the Federal Democratic Republic of Ethiopia, in its 63rd session, evaluated the past three years’ performance of the Growth and Transformation Plan (GTP) and passed various decisions. According to a press release issued by the Council, the evaluation of the Ministers basically focused on activities undertaken in the areas of economic and social development, infrastructure, democracy and good governance during the implementation period of the GTP over the past three years.

It was learnt from the Council of Ministers’ release that three years after its launching, the Plan has enabled the nation to undertake encouraging poverty alleviation activities that outpaced Sub-Saharan countries. The Council’s press release further indicates that the country’s gross domestic growth rate reached 9.7 per cent in the past fiscal year. The contribution of agriculture, industry and service are 7.1, 18.5 and 9.9 per cent respectively. Due to the efforts made to bring changes in the economic structure, the contribution of agriculture is reduced to 42.9 per cent in 2013 from 46.5 three years before. The industry and the service sectors are raised to 12.4 and 45.2 per cent respectively from 10.3 and 44.1 in 2010.

The Council also stated that the number of people living in poverty has been reduced to 26 per cent in 2013 from 29.5 per cent three years ago, moving in a right path to reduce the level of poverty to 22.2 per cent in 2015. National saving has also risen to 17.7 per cent in 2013 from 5.2 per cent three years before, showing a marvellous achievement beyond the 15 per cent plan to attain in the GTP period. Road infrastructure also rose to 58, 338 kilometres in 2013 from 48, 800 kilometres in 2010. In social services, the number of elementary schools (Grades 1-8) reached 34, 495 in 2013 from 26, 951 and the number of students reached 17.4 million from 15.8 million in 2010. The number of secondary schools also reached 1,912 from 1,335 in the same period. In addition, the number of health centres increased to 3, 100 from 2, 142 three years ago.

The Council of Ministers noted that the registered economic growth is by far better than the 5 per cent economic growth rate that Sub-Saharan Countries have registered. Ethiopia has managed to attain this encouraging economic growth amid global market challenges.

This indeed is good news for Ethiopians who have shown their commitment and readiness for the success of the GTP, which holds the hopes and aspirations of millions of citizens. One has to go back and recall for few minutes the flesh of the GTP in order to compare if we really are making a progress and moving forward in implementing the Plan according to the set schedule.

To start with, two scenarios have been considered during the implementation period of the five-year Growth and Transformation Plan. These are: the Base Case Scenario and the High Case Scenario. In the Base Case Scenario, it is planned to maintain the annual average economic growth of 11 per cent attained. In the High Case Scenario, it is envisaged to double the 2002 E.C agriculture production and general economy by 2007 EC. To this end, it is planned to attain an annual average economic growth of 14.9 per cent and complete the activities geared towards enabling the industry sector take the lead in the country’s economy.

To help the agriculture sector continue to be the source of the country’s economic growth, the Plan stresses the need to strengthen the efforts geared towards ensuring market-oriented trend and the provision of improved production to local and foreign markets. In addition, according to the Plan, it is important to encourage the participation of investors in the agricultural sector and provide incentives to estate farm developers; give due attention to areas with high development potentials and encourage farmers and investors to actively engage in the production of agricultural products that have high market demand.

In addition, with a view to making the industrial sector play a key role in the economy, the Plan stresses the need to ensure rapid development in the industrial sector; bring about sustainable technological growth in the medium and large industries; attach due emphasis on the growth of Micro and Small-Scale Enterprises (MSEs); make the industrial sector export-led; give due attention to industries that could substitute imported goods; and make institutions of higher learning as well as technical schools industrial development oriented.

In the infrastructure sector, it is planned to undertake the construction of new rural roads in all states connecting each rural Kebele with highways; carry out the construction of national railway; promote the use of renewable energy sources such as water and wind; and further strengthen the ongoing efforts to provide quality, modern and integrated telecommunication services to the general public at a reasonable price across the nation.

Concerning the promotion of social development activities, the Plan indicates that utmost efforts would be exerted to tackle constraints that limit school enrolment of children and women; gear the training programmes of higher education institutions towards programmes on science and engineering and make the quality of education comparable with that of similar foreign institutions of higher learning.

With regard to the expansion of health services, the GTP eyes at undertaking basic prevention and control health services involving the general public; promoting quality hospital services across the nation; ensuring that medical institutions are equipped with the necessary manpower and materials; improving the skills, composition and administration of the human power in the health sector and exerting efforts to address the brain drain of medical professionals.

The five-year GTP also touches upon other issues such as raising the capacity and benefits of women and the youth; social security, culture and tourism, as well as environment and climate change. It also attaches special emphasis on accelerating capacity building and good governance efforts. In this aspect, the GTP focuses on effectively implementing government policies and strategies by building the capacity of the civil service, supporting the judicial system to continue with the reform activities that it is undertaking; carrying out intensive good governance activities to ensure transparency and stamp out corruption; exerting unreserved efforts to ensure democratic culture in the country and carrying out integrated activities to raise the public awareness on the Constitution and legal system of the country.

In light of the above brief recollection of the GTP and the evaluation of the Council of Ministers made recently, one can say that the implementation of the GTP over the past three years is indeed successful as it witnessed the fulfilment of the set targets in the majority of the development sectors. When the government launched the GTP three years ago, some said that the GTP is ambitious. Other sceptics also doubted its attainability. But, the success registered over the past three years demonstrated that the Plan is achievable and within our reach.

Here, one important fact should be emphasized. The demonstrated and well-proven commitment of the government to successfully implement the Five Year Growth and Transformation Plan would not bring about the much desired result if not supported by the full participation of the public at large. The success of the Plan heavily depends on the active involvement of the entire public. The participation of the people from all walks of life is indispensable in the implementation of this Plan, which is believed by many to make the nation food self-sufficient and contribute a great deal in the efforts exerted to pull the country from the abyss of poverty.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6146-a-glimpse-into-the-progress-of-the-gtp

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A matter of survival for Ethiopia that has low water storage capacity

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“The Nile River, its natural resources and environment are assets of immense value to all the riparian countries,” this excerpt is one among the statements that furnish with a preface or introduction in the modern Nile agreement— Cooperative Framework Agreement (CFA)— which is made between the Nile Riparian countries.

In line with this, Ethiopia has commenced the construction of Grand Ethiopian Renaissance Dam (GERD) on the major tributary of Nile, Abay, in Benshangul-Gumuz State. As a signatory state of the CFA, Ethiopia has proved a great commitment for an equitable use of the waters and without harming the water flow to downstream nations. This has been evidenced as the nation invited downstream nations, Egypt and Sudan, to study the impact of the dam. Forming International Panel of Experts (IPoE), the three countries— Egypt, Sudan and Ethiopia — have made rigorous studies examining the construction site first hand. After that, IpoE concludes as the dam poses no major threat to downstream nations.

Still, unlike other nations in the world that have built hydro power dams along cross-boundry water courses found in their territory without consulting the respective riparian countries, Ethiopia is persistently cooperating with countries that share waters of the Nile and has received encouraging response from the nations including from downstream Sudan. In addition, the international community has also understood the significance of the low cost energy source in opening more rooms for cooperation among the Nile riparian countries.

Yet, Egyptian scholars and politicians seem living in an isolated island. They are neither cooperating with the riparian countries nor respecting what the international community is advising them. Still, they are proponents of colonial “treaties”, which lost place when then Tanganyika got independence in 1961 which Uganda and Kenya followed suit. But, Egypt is daydreaming to retain a so called treaty that was made to share Nile waters unfairly between Sudan and Egypt. Some politicians and scholars are having busy days to revive these “treaties”, if at all they could be referred that way. The aimless campaigns, however, have not been welcomed by most. They are being told that cooperation is the only way out and there is enough space to do so. They have repeatedly heard that the dam benefits downstream countries.

In fact, it is foolish to perceive as these Egyptians have failed to understand the hard fact, they know the dam benefits them and brings no significant threat. So, why do they waste their time and why do they walk on a wrong path? The thing emanates from various sources but the major one seems from wicked desire to control all the waters and indirectly put influence on the upper riparian nations, which is so impossible. Such mindset never work for the upstream water sources, let alone for downstream Egypt.

Apart from that, they have also desperately engaged to making the dam an issue of survival.

The reality is, however, the dam could not and will not affect the flow and volume of the water. Rather, it will allow a regular flow and volume all year round. The reality is, however, generating clean energy is a matter of survival for Ethiopia since 97 per cent of its water resources are cross-boundry, meaning Ethiopia has not yet assured good water storage capacity. That is why, the dams which have been built over the past days and still under construction, including GERD, are too crucial to lift its millions of citizens from poverty increasing the national water storage capacity.

As FDRE Minister of Water, Irrigation and Energy Alemayehu Tegenu in a recent radio panel clearly has put it, cooperation is the only means to use the waters. And people of Egypt need to understand this fact. The construction of GERD is well under way and over 30 per cent complete, as the Minister reiterated on the same occasion.

Provoking Nile riparian countries, Ethiopia in particular, with badly charged terms such as “all options are open” serves no purpose. In addition, these few Egyptian politicians and scholars could not buy public acceptance by purposely misdirecting the people of Egypt. It is time to tell the reality for their people—i.e., the fact that the dam brings benefits for Egypt and Egyptians in many ways. And the internal instability of Egypt could be settled not by amusing the public’s attention to wards GERD, but through finding genuine solution. There is enough space for cooperation and to engage in a win-win base.

 http://www.ethpress.gov.et/herald/index.php/herald/editorial/6145-a-matter-of-survival-for-ethiopia-that-has-low-water-storage-capacity

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Egypt has no alternative, but to  quickly start discussions: Ambassador Dina

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Ethiopian will continue promoting the principle of the equitable and fair utilization of the Nile River, MoFA Spokesperson Ambassador Dina Mufti said.

While briefing journalists on current issues, Ambassador Dina stressed Ethiopia’s firm stand on the fair use of the river among the riparian countries. “The upper riparian states have the right to use the Nile for their development as far as it doesn’t cause any significant harm on the lower riparian countries and that is why Ethiopia is building the Grand Ethiopian Renaissance Dam (GERD),” he said.

Ethiopia will continue building the dam and Egypt’s request to pause the construction of the dam is unacceptable, he added.

The government of Egypt has no alternative but to move quickly and start discussions with all Nile countries about using the waters in the best interest of all, he said. Ambassador Dina added that Ethiopia would continue to play its role towards contributing to the peace and stability of the Horn of African region.

In addition to finding solution for the current crisis in South Sudan, Ethiopia is playing its part for the prevalence of durable peace and security in Somalia through deploying its troops, he said. According to Ambassador Dina, rival factions of the Sudan People’s Liberation Movement (SPLM) are here in Addis Ababa, Ethiopia for further peace talks.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6147-egypt-has-no-alternative-but-to-quickly-start-discussions-ambassador-dina

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An up-and-coming Ethiopia’s international relations

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Over the last two decades, Ethiopia has been highly engaged in keeping the momentum of internal stability along with bolstering overall national development as a pathway to get rid of poverty. Besides, Ethiopia is enriching its international relations in general and has remained committed and more concerned about regional peace and security in particular.

Its pragmatic and scientific international policy has enabled the country to demonstrate its roles in many regional and continental development and security issues. To this effect, Ethiopia has become a very real force for peace initiatives in the East African region, indeed.

The premise on which Ethiopia’s policy is based mainly with neighbouring countries is focusing on developing the culture of dealing with contradictions through discussion and negotiation while reducing its vulnerability to danger and to address security threats appropriately.

In a recent past, Ethiopia’s dedication for the peaceful East Africa region is evidenced by what it is doing and has done in Somalia, Sudan and South Sudan. It does brokering effort to resolve the disputes between Sudan and South Sudan. It has sent troops to the joint UN-AU peacekeeping force in Darfur (UNAMID) to help maintain peace and stability in that troubled region. Ethiopia has also deployed 4,000 troops in Abyei for the UN interim security force for Abyei (UNIFSA). Again, it has cooperated with the Somali government to fight terrorism and extremism. It has been playing a vital role facilitating dialogue and providing support to enable the Jubaland administration and the Federal Government of Somalia to work jointly in building the Federal States of Somalia.

Ethiopia maintains diplomatic links with many Asian, European, American and Latin countries. The increasing continental and international meetings, conferences and forums also witness for the booming international relations of the country.

It should be understood that the success of Ethiopia’s development and democratization has positive contribution not only to Ethiopia but to all neighbours as well; and that a policy that is free of arrogance and greed would contribute to changing the entire region.

Ethiopia is always keen in playing its role to facilitating negotiations mostly with the regional organization, IGAD. Such chances of success in any peace process are much higher when regional organizations and neighbours are constructively engaged.

It is also Ethiopia’s firm conviction that no country in the region can prosper or live in peace while its neighbours are facing difficulties in security, that it is one of the basic reasons why Ethiopia continues to strengthen collective security architecture of the region and beyond.

The Ministry of Foreign Affairs has not long confirmed that Ethiopia keeps on playing a glaring role in ensuring peace and security in neighbouring countries as it is highly concerned with internal stability and development.

Because of Ethiopia’s political and diplomatic efforts, neighbouring Somalia is today enjoying relative peace after 20 years of crisis.

In a move to restoring peace in South Sudan, diplomatic endeavour is under way in which Ethiopia plays a front-line role with IGAD and other countries of the region such as Kenya. It is to be recalled that Ethiopia contributed a lot for the independence of South Sudan few years back.

Moreover, it is serving as a hub for African Centre for Strategic Studies that aims at countering terrorism and extremism in the horn of Africa. This indicates that the country is highly solicitous with the peace of the Horn and eager to see unprecedented economic, social and political development among all nations of East Africa. This, in fact, enables the nations to create a trustworthy trade, investment linkages thereby improving the livelihood of their respective citizens.

In sum, diplomacy plays a significant role in spelling out the priorities of the government. It also defends the government policy choices as per the national interest mainly to bring well-defined progress in various aspects -be it economic or political. Bilateral and multilateral cooperation and agreements with other international organizations also remains amicable.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/6130-an-up-and-coming-ethiopia-s-international-relations

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Filed under: Ag Related Tagged: Agriculture, Economic growth, Ethiopia, Grand Ethiopian Renaissance Dam, Investment, Millennium Development Goals, Politics of Ethiopia, Sub-Saharan Africa, tag1, United States

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Under a searing midday sun, a herd of cattle circles atop a pile of golden teff, thrashing the wheat-like grain, a method that has been practised by Ethiopian farmers for centuries.

The crop, mostly grown in the Horn of Africa, is a key part of the country’s heritage and a crucial food staple, but is also gaining increased interest abroad among health afficionados seeking a nutritious, gluten-free alternative to wheat.

“Ethiopians are proud of the crop because it is almost our identity,” said Solomon Chanyalew, director of the Debre Zeyt Agricultural Research Centre, a teff research hub.

“But these days, teff is getting global attention,” he said.

Relatively unknown outside of Ethiopia — for now — the cereal is predicted to  replace quinoa as the latest global “super-food”.

But a ban on exports to control price hikes at home has left farmers tied to local consumers, limiting their contribution to growing markets abroad.

The poppy-seed sized grain is renowned for its nutritional qualities. Mineral-rich and high in protein, teff is also a slow-releasing food, ideal for diabetics, and sought after by people with a gluten intolerance, or Celiac disease.

“Teff is not only gluten-free, which is an increasingly important aspect of foods that is being sought out, but it’s also incredibly nutritious. Many people consider teff to be a super-food,” said Khalid Bomba, CEO of Ethiopia’s Agricultural Transformation Agency.

In Ethiopia, teff is used to make injera, a spongy fermented pancake topped with meat or vegetable stew and consumed with an almost religious devotion, often three times a day.

In the West however, where it is touted by celebrity chefs and health-conscious Hollywood stars, the grain is most commonly ground into flour and used to make biscuits, breads, pastas and even teff juice.

It is also a resilient crop; it can grow between sea level and 3,000 metres and is both drought- and flood-resistant, ideal for Ethiopia’s dry highlands.

But despite its versatility, Ethiopia’s 6.5 million teff farmers struggle to meet local demand — let alone growing demand from abroad — with limited access to seed varieties, fertilisers and modern machinery that would allow for higher yields.

Teff also suffers from a lack of research since it is considered an “orphan crop”, unlike global crops like rice, wheat, and maize, which are widely studied and well-funded.

“People don’t want to work on teff, basically, it’s not paying,” said Kebebew Assefa, one of only two full-time teff researchers in Ethiopia.

- Risk of price hike -

Regardless, productivity has climbed to bridge the supply gap, with the introduction of 19 new teff varieties and improved farming techniques.

In the last four years, yields have increased from 1.2 to 1.5 million tonnes per hectare, which Khalid said bodes well.

“The production increases are what gives us the confidence that Ethiopia will be able to compete at a global level when it comes to tapping into the increasing demand from consumers in Europe, in London, or New York or Brisbane,” he said.

An estimated two million tonnes per hectare is required to reach export potential.

For now, the ban on exports remains in place to avoid the pitfalls of quinoa in Bolivia, where most people could not afford the staple crop after the surge in global popularity.

The price of teff — $72 (52 euros) per quintal — is already too expensive for the majority of Ethiopians who earn less than two dollars per day.

But farmers are eager to export their teff, well aware of the higher prices they can fetch.

“I want to sell it abroad because it’s going to have a good market and I will earn good money and it will bring good motivation for my work,” said Tirunesh Merete, 60, who has been growing teff for nearly four decades.

Neighbouring farmer Amha Abraham said he is keen to make more money, but recognises that local markets need to be fed first.

“If we export teff to other countries then we can get a lot of money, but we must provide first for our country’s consumption,” he said, standing near a giant pile of golden teff stalks, used for roofing and as cattle feed.

Until the export ban is lifted, Ethiopian farmers remain excluded from a growing international industry, with teff products appearing on shelves in health food stores across North America and Europe.

“Everybody has started talking about gluten-free,” said Rob Roffel, CEO of the Dutch company Consenza, which produces gluten-free foods from teff grown in the Netherlands.

“The demand for gluten-free foods mainly was for Celiacs… but what we see now more and more is other target groups interested in teff flour,” he said, adding that his business has grown 30 percent annually since 2006.

In the meantime, Khalid said he has high hopes for teff.

“If you look at what’s happened with quinoa, it’s a $150 million market in five years and teff is actually much more nutritious and much more resilient than quinoa,” he said.

“So we think there’s a much bigger market opportunity for teff.”

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Sourced  here

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Related posts

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-     Ethiopia seed bank’s novel approach to preserving diversity under threat

-     Premier: Ethiopia exerting efforts to get patent right for teff

-     Move over quinoa, Ethiopia’s teff poised to be next big super grain

-     Agency introduces three teff row-seeding technologies

-     Ethiopia: Teff Scarce, Prices Sky High

-     Teff Identity Theft – A Follow Up To A Prior Article Of The Same Title

-     Teff Identity Theft

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Addis Light Rail Transit Project passes halfway mark

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Addis Ababa’s Electrified Light Rail Transit project has passed the halfway mark with 56 per cent of the project completed, said the Ethiopian Railways Corporation, a government entity entrusted to oversee the construction of modern railways infrastructure in the country.

With its current pace of installation, the Ethiopian Railway Corporation is confident that the project will come to conclusion well ahead of the Growth and Transformation Plan period, which is just a year away.

“The progress is well in time and we are monitoring the project progress carefully so that the project will be completed on time,” said Yehualaeshet Jemere, Construction and Project Execution Department Chief at the Ethiopian Railways Corporation in an interview with Afro FM.

However, Yehualaeshet revealed that “We passed so many milestones starting from the optimization of the design,” recalling the tough challenge they passed through to get to this point.

The current progress in the construction and installation work has even gone beyond expectations even defying some concerns which questioned the practicality of the project.

But, now, according to Yehualaeshet whom we interviewed at his office in Addis Ababa, the Addis Ababa Light Rail Transit project has passed its halfway mark.
“This time we are about 56 percent on physical progress; this   includes the earth work, the tunnel construction on the northern section that is cut and cover section, the bridge works, we erected the girders,” the official said further adding that “In some parts of the city we already completed the bridge work, and finally we are now at the stage of track laying, some 14 kilometers of railway truck has been laid for Addis Ababa Light rail projects.” Currently electromechanical parts are under procurement.

The Light Rail Transit project is one of the mega projects the corporation is focusing on. In terms of security, an automatic train protection system will be fitted into the train system to ensure safety.

The system will also have a capacity to stop the train during emergencies. The corporation is closely monitoring the project to ensure its proper installation and operation.

The public enterprise also extended appreciation for the patience and understanding demonstrated by residents of the city and others. As the project relies on electricity for its power, there will not be any pollution related problems.

The overall project covers 34.24 kilometers (North-South line 16.9 km and East-West line 17.35 km). It will have a capacity of transporting 80,000 passengers per hour.

http://www.waltainfo.com/index.php/editors-pick/12514-addis-light-rail-transit-project-passes-halfway-mark

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Invested Interest as Agency Achieves FDI Plan

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There are still concerns, such as investment security and infrastructure bottlenecks, stunting investment inflows

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Fitsum Arega, director general of Ethiopian Investment Agency.

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The Ethiopian Investment Agency (EIA) said it has registered 164.8 million dollars of foreign direct investment (FDI) from 77 projects in the first half the 2013/14 fiscal year. This is against its plan of 150 million dollars

The vast majority of the 841 foreign investors who have knocked on the Agency’s doors over the past six months have collected information from various sources.In addition, 481 other investors obtained information from the Ministry of Foreign Affairs (MoFA), said Fitsum Arega, director general of the Agency, during a press briefing to journalists about the six-month performance report, on Tuesday, February 25, 2014, at the EIA’s headquarters on Africa Avenue (opposite the Dembel City Centre).

Foreign investors came through three different avenues: after receiving information from Ethiopian embassies abroad, having conducted studies on the investment climates on their own initiatives and through the initiation of senior government officials, according to the report.

For Alemayehu Geda, an expert on FDI, the concern for investment security is a challenge for the huge amount of FDI going to the agricultural sector. He cites foreign exchange shortages; problems with customs administration and related bureaucratic red tape and major infrastructural bottlenecks, such as telecom, roads and power, as being challenges for the remainder of FDI going into the services and industrial sectors.

Out of the 213 projects planned to be supported by the Agency during the six months with a capital of 33.4 billion Br, 179 projects with a capital of 14.4 billion Br have been supported. These projects have created job opportunities for 16,421 people on a permanent basis and 30,702 people temporarily.

Over the past six months, the Agency has cancelled licenses issued earlier to 317 projects because of failure to convert projects to investment, the report indicated.

Recently, the Agency revoked around 2,100 investment licenses for failure to renew licenses and remaining idle after receiving licenses.

Of the 132 projects expected to commence investment in the reported period, 102 projects, accounting for 77.3pc of the plan, have started operations with 6.8 billion Br capital, the report indicated. Some 63 of these are engaged in manufacturing. The projects have created permanent employment opportunities for 5,862 people. The number is expected to rise when the investments commences operations at full capacity.

The Agency is required to delegate and provide major services, which the federal and regional executive organs had been giving, according to the investment proclamation approved by Parliament in July 2012.The proclamation aims to provide a one-stop-shop service for the manufacturing industry.

The services that the Agency will provide by delegation include the issuance of construction permits, notary services, issuance of work permits to expatriate employees and issuance of business licenses.

Of the seven government bodies that are responsible for facilitating investment in the country together with the Agency, three – namely, the Development Bank of Ethiopia (DBE), The Ethiopian Revenues & Customs Authority (ERCA) and the Commercial Bank of Ethiopia (CBE) – have already moved into the premises of the Agency.

The Environmental Protection Authority (EPA) has already delegated powers to the Agency to provide services on its behalf. The Information Network Security Agency (INSA) and ethio-telecom are also on their way to start working soon. The Addis Abeba Water & Sewerage Authority (AAWSA) and the Addis Abeba Land Development & Administration Office are expected to follow suit.

http://addisfortune.net/articles/invested-interest-as-agency-achieves-fdi-plan/

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Experts Developing New Commercial Code for a Modern Ethiopia

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A team of experts, camped out in Bishoftu, have been studying the commercial code of countries with similar legal systems

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The first draft of the amended Commercial Code of Ethiopia will be  completed before the end of this month.

About 20 experts drawn from various institutions, such as the Ministry of Trade (MoT), the Ministry of Justice (MoJ) and prominent attorneys have been working on the amendment since December 11, 2013. The main reason behind changing the existing Code, which is 54 years old, is to develop one more compatible with the current system of trade, and to be functional for the next 50 years, according to an expert in the group.

The group, which has camped in Bishoftu town for the duration of the work, is undertaking the amendment process – called pre-draft research – in three stages, two of which have already been finalised. The first phase focused on studying research that deals with the Ethiopian Commercial Code, as well as examining proclamations that have repealed parts of the commercial code and assessing the current status of commercial laws of those countries with similar legal systems to Ethiopia.

As a principle, the group has been urged to look into the laws of such developmental states as Japan, Taiwan and South Korea, but they found that their laws were largely copied from Germany and France.

“It is not appropriate to make a copy from a copy,” said the group member.

The second phase was aimed at identifying the elements that must be included in the new Commercial Code; particularly about the criteria Ethiopia should fulfil to become a member of the World Trade Organisation (WTO).

The third and the final phase of the pre-draft research of the new code aims at bringing together the findings of the 20 experts, who have been working in five groups.

The new code will come with substantial changes, particularly in relation to the development of new banking technologies, the expert said. Automated Teller Machines (ATMs) will, for the first time, be recognised by the code to come.

One of the concerns among investors in relation to the existing Code was that there was little security in bankruptcy laws. The new code could include provisions about financial and technical support by the government to bankrupt businesses.

Traders, in the new code, could for the first time include practicing professionals, such as attorneys engaged in profit making activities.

The existing Code was found to be deficient in governing the current structure of private limited companies. The existing Code was enacted at a time when those seeking to establish these companies were only expected to verbally announce their capital, rather than present bank statements, as is the case now. The new Code could include this change, thus making it more suitable to current private limited company structures.

The new Code is also said to be more relevant to the federal structure of government adopted by Ethiopia since 1991, in contrast to the existing Code, which was made for a unitary state.

The second phase of the research was completed three weeks ago. The team is back in Bishoftu as of last week, after a one week break, to complete its job before the end of March. After that, the steering committee at the MoJ will send the draft to various stakeholders, the expert said.

http://addisfortune.net/articles/experts-developing-new-commercial-code-for-a-modern-ethiopia/

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Workshop discusses university-industry linkage

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Linking universities with the industry is essential for it helps the latter benefit from research outcomes of educational institutions

A day-long workshop aimed at creating awareness on the linkage of education and training research institutions with the industry was here held yesterday. The workshop was jointly organized by Ministries of Science and Technology and Water, Irrigation and Energy.

“As centre of education, training and research, universities are expected to generate scientific techniques and knowledge that are required by and applicable to manufacturing and service enterprises apart from producing quality and skilled manpower,” said Science and Technology Ministry Technology Transfer and Development Directorate Director Eng. Teshome Sahle-Mariam.

As the players were lenient and there was not such a strong linkage among them, it is now believed that making the link among the players, i.e. educational institutes and the industry, will enhance the technology transfer among the entities, Eng.Teshome added.

He, therefore, said that the forum will help the players to have a similar outlook towards the issue of linkage and thereby speeding up national growth. Welcomed by the industries, universities can contribute a lot to the development of science and technology, he said.

“Linking universities with the industry is essential for it helps the latter benefit from research outcomes of educational institutions,” said Water, Irrigation and Energy State Minister Wendimu Tekle.

Addis Ababa Institute of Technology Deputy Scientific Director Dr. Eng. Getahun Mekuria also said: “The involvement of Addis Ababa University as a consultant on the construction of the GRD is in consideration to motivate other universities to acquire experience and engage in similar developmental engagements in the second Growth and Transformation Plan period.”

According to Dr. Eng. Getahun, universities will help the industry grow via conducting applied research and offering consultancy services while the industries will give on the job training opportunities to students thereby strengthening their theories with practice.

Adama Science and Technology University Vice President for Research and Graduate Studies Dr. Lemi Guta said: “The involvement of Adama University in collaboration with the Makalle University in the execution of Adama I Wind Farm Project generating 153 MW and the consultancy service it offered to Derba Cement Factory with over four million birr budget is shows the contribution of universities to the growth of industry.”

Dr. Lemi also underscored the need for changing the attitude of the industries so that they will take universities as partners in the area that needs to be dealt with. Besides, he said that limitation with regard to skilled manpower and infrastructure in the universities are challenges that need to be tackled.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/6155-workshop-discusses-university-industry-linkage

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Agency purchases grain worth over 2.3 billion birr in six months

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The Ethiopian Grain Trade Enterprise (EGTE) said it has purchased grain and coffee worth over 2.3 billion birr from domestic and international markets in the first half of this budget year.

Agency General Manager, Berhane Haile, told WIC that more than 3.8 million quintals of grains and coffee, including wheat were procured with the stated sum to stabilize the market.
Berhane said the amount of grain and money spent to buy it surpassed the target by more than 1.8 million quintals and over 888.5 million birr, respectively.  The agency has also supplied more than 4.47 million quintals of grain and coffee worth 2.75 billion birr to local and overseas markets in the reported period, he added.

http://www.waltainfo.com/index.php/explore/12519-agency-purchases-grain-worth-over-23-bln-birr-in-six-moths-

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Unleashing informal cross-border women traders potential

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border traders suffer from invisibility, stigmatization, violence and harassment as well as poor working conditions and lack of recognition of their economic contribution. hosted at the Bank’s headquarters yesterday.By ignoring women’s informal trading activities, African countries are neglecting the significant proportion of their trade.

The Bank’s Volume launched on the occasion confirms that a vast majority of women trades would like to grow and develop their business away from the informal sector. The study also indicates that poor women traders cross border throughout Africa every day and make a major economic contribution to the continent. Estimates suggest that informal cross-border trade contributes substantially to the economies of many African countries and is a source of income for about 43 per cent of the total African population. In southern Africa, informal cross-border trade is believed to reach 30—40 per cent total recorded formal trade between countries in the region, entailing some 20 billion USD per year, amounting to almost half of total development assistance to Sub-Saharan Africa as a whole.

A range of studies throughout the continent confirm that the majority of informal cross-border traders are women. These traders play a key role in food security, bringing basic food products from areas where they are relatively cheap to areas where they are in short supply. The income they earn from these activities are critical to their households, often making the difference, for example, in whether children go to school or not. Informal cross-border trade in the Great Lakes region between the Democratic Republic of Congo (DRC) and Uganda and between South Sudan and Uganda is likely to be several times larger than officially recorded trade flows.

Women traders often face poor conditions and harassment when crossing the border. Indeed, in a recent survey of trade in the Great Lakes , more than 80 per cent of traders reported having to give bribe to cross the border. Worse, more than half had suffered from physical harassment and abuse, including beating, verbal insults, stripping, sexual harassment , and even rape.

According to UNWOMEN, women informal cross-border traders keep African markets going. Empowering women informal cross-border traders will have multiplier effect on poverty reduction, employment creation, and intra-African trade and regional integration, it said and urged governments, regional economic communities and development partners to enhance their opportunities to benefit from regional trading agreements. UNWOMEN representative also said that women informal cross-borders are key economic actors and their activities should be viewed as continuum of the formal sector.

Support to women informal cross-border traders should be prioritized in National Development Plans and trade for trade assistance. Lack of awareness of trade laws and proper documents, sexual harassment, access to finance, market networkings are among the challenges facing women informal cross-border traders. Ethiopian women entrepreneurs who attended the event said that access to finance from local banks is critical, impeding their firms to grow and develop. Representative from AU said that the AU adopted a number of initiatives and declarations towards African trade. Putting the enormous policies and programmes together is key to bring about the desired outcome at the issue. The volume recommends, among others, that governments need to put in place clear trade documents and regulations, design interventions to develop trade in ways that ensure women benefit and help women address the risks they face in their trade-related activities. It also stressed the need for incorporating the issue of informality in mainstream trade policy making and to strengthening the notion that women informal traders are also important clients of ministries of trade and regional economic communities.

http://www.waltainfo.com/index.php/explore/12511-unleashing-informal-cross-border-women-traders-potential-

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Uganda, Ethiopia overtake Kenya as hospitality investment destinations

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Ethiopia and Uganda have overtaken Kenya as key investment destinations for global hotel chains scouting for opportunities in the region.

The two nations feature on the top five list, whose hotel sectors are expected to receive huge investments in sub-Saharan Africa, alongside Nigeria, Angola and Ghana.

A new report ranking countries according to the number of jobs that new investments in the hotel sector will create this year puts Nigeria as the hottest spot for investors in the hotel industry.

Non-branded hoteliers the survey by W Hospitality Group is based on the number of signed contracts by international and regional brands as well as smaller non-branded hoteliers. “Nigeria leads the way in sub-Saharan Africa with the creation of 53,000 jobs. It is followed by Ghana with 11,000 and Angola (9,000), Ethiopia (8,800) and Uganda with 8,500,” said W Hospitality Group Managing Director Trevor Ward.

“In Sub Saharan Africa, growth is forecast to be a much faster 23 per cent.” “Where there are fewer people with hospitality industry experience, HPA anticipates three major trends; an influx of top management from abroad, a war for talented middle management and substantial investment in training programmes,” he said.

“By comparison with the developed economies, where growth rates are struggling to exceed two per cent, Africa is positively booming and in an industry which is as labour intensive as hotels, that is very good news for job creation.” Security concerns, unconducive policies and a recent imposition of value added tax on tourism and hotel services are cited by players as among the factors that are seeing the decline of the industry.

There are also external factors like the Euro zone crisis that have reduced travel from Kenya key tourist source markets. See Also: Tigo introduces cross-border money transaction Growth rates.

The over 20 per cent growth in the region is unlike the situation in Kenya where the industry has posted slower growth rates and hotels have been laying off staff owing to low booking rates.

The company expects about 320,000 jobs to be created across Africa with North Africa creating 115,000 jobs across five countries and sub-Saharan Africa creating 165,000 across 23 countries.

“The companies leading the way are Hilton Worldwide, which will have a need for 10,000 new workers, Accor for 6,000, Carlson Rezidor for 5,500 and Starwood and Marriott for 4,000 each,” said Trevor.
“ Major global brands have committed to setting up in Kenya, some of whom have already started operation either through investing in own property or coming to manage hotels put up by other investors.

http://www.waltainfo.com/index.php/editors-pick/12507-uganda-ethiopia-overtake-kenya-as-hospitality-investment-destinations-

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Wilderness Safaris to invest in Ethiopia

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600 USD per night lodge in the works

Wilderness Safaris, a widely acclaimed ecotourism operator, will invest in Ethiopia Capital learned.

Representatives from Wilderness South Africa recently concluded a visit to Nechsar, Bale and Awash Parks checking out the different prospect areas for their investment. The trip was organized by the Sustainable Development of the Protected Area System of Ethiopia (SDPASE) and the ecotourism operator is to present its investment proposal soon.

According to Ludwig Siege, Chief Technical Advisor for SDPASE, Wilderness Safaris is interested in investing in a high-end lodge where accommodation per night maybe as high as 600 USD per person per night.

Ethiopian wildlife tourism has huge potential and the Ethiopian Wildlife Conservation Authority (EWCA) is working on attracting investors. Ethiopia has the world’s second largest wildlife migration which would be an interest to investors. EWCA has a vision of becoming one of the top five wildlife tourism destinations in Africa by 2020.

Founded in Botswana in 1983, Wilderness operates 50 luxury camps and safaris across nine African countries including Kenya, Malawi, Namibia, Seychelles and South Africa. The safari offers private access to more than 3 million hectares of Africa’s finest wildlife and wilderness areas. Among several acknowledgments, the Safari has been the recipient of the 2013 National Geographic Traveler’s Best Eco-lodges award.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4127:wilderness-safaris-to-invest-in-ethiopia&catid=54:news&Itemid=27

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Agency collects over 978 mln birr in pension funds

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Africa’s economic performance over the last decade has been remarkable, having reached an average growth of five percent. If this growth is maintained, projections indicate that Africa’s gross domestic product (GDP) should increase approximately threefold by 2030 and sevenfold by 2050, outstripping Asia’s. Yet, this growth has not translated into job creation or tackling inequalities.

Beyond growth, the continent needs transformation. The internal, external and historical reasons that its industrial potential has not been reached can be attributed mainly to the failure of policies, often imposed.

Colonialism has left behind institutions and an infrastructure base that were designed to enhance extraction of Africa’s resources, as opposed to value addition. Economic structural adjustment programs have also had negative effects on technological accumulation, human capital development and the performance of manufactured exports.

Agricultural production is one of the most important economic sectors in the majority of African countries. Approximately 75pc of Africans rely on it for their livelihoods.

History illustrates that agriculture, particularly the developed agribusiness and agro-industry sectors, has been the driver of economic growth in countries across the globe – Brazil and China, for example. In Africa, agribusiness and agro-industries account for more than 30pc of national incomes, as well as the bulk of export revenues and employment.

Scaling up agribusiness could be the next growth frontier. It could offer immediate value addition through commodity-based industrialisation that exploits forward and backward linkages with the rest of the economy. Such industrialisation could lift many rural dwellers out of poverty whilst creating jobs across the economy.

Several key opportunities are within reach in agribusiness. The underlying premise of the diversification of sources of growth should curb the pattern of overreliance on primary commodities to generate export revenues.

For example, 90pc of the total income from Africa’s coffee – calculated as the average retail price of a pound of coffee, after it is roasted and ground – goes to consuming countries. This clearly underscores the fact that continued dependence on the export of unprocessed soft commodities – as opposed to a focus on increased value addition -would likely adversely affect future growth in the region.

Africa could exploit several opportunities to overcome existing challenges facing agribusiness. Despite possessing the world’s largest reservoir of unused arable land, about 60pc, Africa has the lowest agricultural productivity – amounting to approximately 10pc of global agricultural output. Cereal yields in Africa average only 1.2 tonnes a hectare, compared with more than three tonnes a hectare for Asia and Latin America, and about 5.5 tonnes a hectare for the European Union.

Ironically, Africa has been a net importer of agricultural products since the 1980s. The continent spends between 40 billion dollars and 50 billion dollars yearly on imported agricultural products. More importantly, Africa is exporting jobs by not being able to increase its value addition.

Africa can feed Africa. It is well endowed and has the markets. But it needs more than good technology policies.

Scaling up productivity entails, tapping water resources for irrigation; providing stable prices while doing away with artificial subsidies; using seeds with better yields; providing basic transport infrastructure; providing incentives for financial institutions to invest in agriculture, as much as in commercial farming and developing a profitable and competitive agribusiness sector. By drawing on lessons from other countries, such as Asia, Argentina and Brazil, Africa can turn its fortunes around gradually.

Africa’s population growth has to be turned into an asset. By 2050, Africa’s youth alone will constitute over a quarter of the world’s labour force. Its middle class is rising. Urbanisation, at 3.7pc, is taking place at more than twice the global rate. Combined, and given their sheer magnitude and pace, these phenomenal trends present a rare and historical opportunity for rapid industrialisation.

Agribusiness holds the key to meeting urban consumers’ demand for food, particularly processed food. Emerging countries will also increase demand for Africa’s farm commodities.

There is vast potential for establishing production and trade links, as well as synergies between different actors along the entire agribusiness value chain (producers, processors and exporters), through the provision of incentives that bolster private sector investments and encourage the competitiveness necessary to meet consumer requirements for price, quality and standards. The shift from primary production to modern integrated agribusiness will provide lucrative opportunities to many smallholder farmers – the majority of whom are women – as well as generating modern jobs for the continent’s youths.

Growing opportunities from investment in infrastructure will help overcome the current challenges associated with poor access between farm-level production and downstream activities, such as processing and marketing. This opens the door to increasing the production of higher agricultural value-added products, while continuing to produce popular commodities, such as coffee, tea, cocoa, cotton, livestock products, fresh vegetables and fruits.

While regional integration is expected to help countries reach economies of scale, it should also help minimise the high transaction costs associated with fragmented markets and price controls. As long as governments implement regional free trade policies, such as abandoning export and import bans and removing non-tariff barriers, production for domestic markets will become increasingly attractive. This in turn should counter the effects of those existing tariff regimes that favour raw over processed goods.

Sustaining the Continent’s growth and overcoming current energy challenges is possible. African energy use per capita (which incorporates hydropower, fossil fuels and biomass) is currently only one quarter of the global average. Yet, Africa’s renewable energy potential is substantially larger than the current and projected power consumption of the continent.

With abundant low-carbon renewable resources, a growing energy demand and falling technology costs, Africa has the opportunity to deliver economically competitive energy solutions for both remote rural and growing urban locales. And bringing power to rural communities will not only improve the quality of individual lives, but also help to scale up agribusiness.

Rapidly changing demands and technologies mean that Africa can power its way through the technological revolution. For example, information and communications technology applications, such as mobile banking solutions, are playing an important role in connecting smallholder producers to buyers. Latecomer advantage can help leverage existing global knowledge towards strengthening the continent’s own technological efforts, its know-how and its innovation capabilities. This would make the continent’s agribusiness systems competitive.

A robust and enabling policy framework is urgently needed. It will help remove existing constraints on agro-industrialisation and encourage investments.

It should also include, but not be limited to, ensuring that the right combination of agricultural, industrial and trade policies is in place to encourage sufficient production of raw materials, as well as the efficient distribution of produced products; and ensuring that rights to land and natural resources are recognised and enforced to secure the transfer of rights to encourage the productive use of land and boost investor confidence. Pursuing new and alternative sources of funding and using public-private partnerships to finance agribusiness or facilitate capacity building through technical and entrepreneurial skills training ought to also be considered.

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Sourced  here

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Related posts

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-     “What has been achieved in agriculture suggests that the economy will grow by double digit” – Prime Minister Haile-Mariam Dessalegn

-     Africa and India cultivate agricultural research ties

-     Farm machinery and sustainable agriculture must evolve together

-     How three agribusinesses have improved their engagement with smallholders

-     Africa’s quiet agricultural revolution

-     African agriculture needs trade not aid

-     Input supply critical to enhancing agricultural productivity

-     Agribusiness Set To Boom Across Africa – DHL MD

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Ethiopia, Israel in agricultural talks

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ADDIS ABABA – Ethiopian Minister of Agriculture Teferra Derbew on Wednesday held talks with visiting Israeli Agriculture Minister Yair Shamir.

The talks touched on means of boosting agricultural cooperation, as well as issues related to agricultural development, Asrat Gebretsadik, public relations officer at the Ethiopian Agriculture Ministry, told Anadolu Agency.

“The ministers also exchanged views on ways to improve implementation of the agricultural technical-assistance agreement signed between the two countries,” he said, citing a 2004 agreement between the two nations.

The Israeli minister was accompanied by a business delegation of leading Israeli companies for agriculture, irrigation, poultry, fisheries and agrochemicals, among others.

The business delegation is expected to meet with the Ethiopian business community.

Copyright © 2014 Anadolu Agency

http://www.turkishpress.com/news/393531/

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Tantalum Mining Company to be Fully Privatized

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The state owned company that mines tantalum is now up for a bid to an interested potential buyer for a full acquisition of the company. For the first time the Privatization and Public Enterprises Supervising Agency (PPESA) tabled the tantalum mining enterprise, along with eight other companies, on a full acquisition basis. The agency had been floating Ethiopian Mineral Development S.C. (EMDSC) on a joint venture (JV) basis but the latest bid floated this week offers interested buyers for full ownership.

According to Wendafrash Assefa, public relations head of PPESA, the mining enterprise, the company which is the predecessor to the Ethiopian Mineral Resources Development Corporation is known for mining tantalum. Over the last two years it had been put up for auction several times but it failed to attract much interest primarily because it requires a huge investment capital. During the recent joint venture bid an Israeli company offered an attractive price to manage the company along with the government.

“However, the bid was canceled because there were some problems with the enterprise,” Wondafrash explained. “Now the board has decided to float the enterprise on a full acquisition basis,” he added.

According to Wondafrash, the company that will win the bid is expected to expand the investment and export its products.

EMDSC was formed in 1996 but in January 2000 Ethiopian Mineral Development was restructured as a share company with a total paid up capital of over 128.5 million birr.

The company extracts and processes rare metals and industrial minerals.

EMDSC mines Tantalum, at its Kenticha exploration and mining concession area, located in Adola 550Km south of Addis Ababa. It also produces industrial minerals via its Bomba Woha Ceramic Minerals Development Unit, 420Km south of Addis. These include Kaolin, k-feldspar, quartz, and dolomite.

These semi processed/milled materials are supplied to the domestic market and are used in producing chemicals, ceramics, paints and soaps.

The other mining firm Adola Gold Development Enterprise located 500Km southeast of Addis Ababa at Oddo Shakisso Wereda, Oromia Regional state is still under the government control.

Recently, EMDSC discovered a primary tantalum ore estimated at 2,500 metric tons. EMDSC started operation with an annual production capacity of 20 metric tons with a single processing plant. Over the years, by improving the mode of production and efficiency, the company increased its annual output to 70 metric tons per annum. In recent years the company installed two additional processing plants and boosted production to 200 metric tons per year. In 2011, the company produced and exported 210 tons of tantalite concentrate.

Other companies included on the current bid are; Bahir Dar and Kombolcha Textile Enterprises, Weyra and Shebele Transport enterprises, Agricultural Mechanized Service Enterprise, Transport Construction Design and a villa house that used to host Battu construction. [Capital]

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4865&Itemid=88

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Marathon Oil to acquire 50% interest in Rift Basin area in Ethiopia

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• Marathon Oil (MRO +1.2%) agrees to acquire a 50% interest in the Rift Basin Area in Ethiopia from Africa Oil (AOIFF), which received Ethiopian government approval for the farmout agreement.
• Africa Oil will maintain operatorship of the block, but MRO may become operator if a commercial discovery is made; MRO will make an entry payment of $3M and will fund $15M of Africa Oil’s working  interest share of JV expenditures in the Rift Basin Area.

http://seekingalpha.com/news/1606243-marathon-oil-to-acquire-50-percent-interest-in-rift-basin-area-in-ethiopia

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Executive bodies urged to contribute share for rapid industrial advancement

 The Ministry of Industry has called on executive bodies at all levels to contribute their share so as to register a rapid advancement in the industrial sector.
The call was made here yesterday at the end of a three-day training organized for 150 heads drawn from institutions accountable to the Ministry of Industry.
The training was mainly focused on the industrial development strategy of Ethiopia.
Industry Minister, Ahmed Abitew, on the occasion said that the role of executive bodies is indispensable to expedite the industrial growth of the country.
According to Ahmed, the training would help executive bodies to tackle problems that would encounter during practical activities and accelerate the industrial progress.

http://www.waltainfo.com/index.php/explore/12533-executive-bodies-urged-to-contribute-share-for-rapid-industrial-advancement-

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Ministry hails farmers’ transformation from subsistence to commercial farming

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 Ministry of Agriculture singles out transformation of farmers from subsistence farming to commercial farming as one of the biggest achievements of the sector in the last two decades.

In an exclusive interview with WIC, Tefera Deribew, minister of agriculture, said farmers are shifting away from subsistence farming.

“We are beginning to witness farmers producing for commercial. I think that is the biggest success registered within the agriculture sector,” Tefera said.

“Instead of just focusing to grow crops to feed themselves, they are beginning to produce what the market need,” Tefera said. “Not just domestic but also international markets,” the minister added.

Agriculture is a key driver of Ethiopia’s long-term growth and food security. It constitutes 43 percent of the country’s GDP and supports 85 percent of the population. The sector accounts for 85 percent of foreign currency the country earns.
Nearly 16 percent of the government’s public expenditures are committed to the sector, one of the highest in Africa.
According to the ministry, the sector has registered an average of 8 percent annual growth in the past decade.
“Only very few African countries have managed to even meet the six percent agricultural growth target as set in the Maputo Declaration and subsequently under CAADP [Comprehensive Africa Agriculture Development Program],” Tefera said.
Ethiopia expects the agriculture sector to serve as a spring board to bring about structural transformation in the long run through its contribution to industrial growth.

During the GTP period, the country aims to enhance productivity and production of smallholder farmers and pastoralists, strengthen marketing systems, improve participation and engagement of the private sector, expand the amount of land under irrigation and reduce the number of chronically food insecure households.

http://www.waltainfo.com/index.php/editors-pick/12531-ministry-hails-farmers-transformation-from-subsistence-to-commercial-farming

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Ethiopia to host World Coffee Conference

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Ethiopia has submitted a proposal for hosting the 4th World Coffee Conference in Addis Ababa.

The proposal is being circulated in an electronic format only in view of the length of the document. The International Coffee Council is requested to consider this proposal. If Ethiopia’s proposal is accepted, it will bring great cash flow to local business in Addis Ababa and surrounding areas.

Also it will help bring much needed hard currency to the country. For some of the people who are participating in the coffee conference will be introduced to Ethiopia. Potentially they will come back as tourists and help the Ethiopian economy. (ico.org)

http://www.waltainfo.com/index.php/explore/12529-ethiopia-to-host-world-coffee-conference

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German–Ethiopia Business Network Formed

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Some 30 Friends of Ethiopia from the business & media community, comprised of both Germans and Ethiopians living in Frankfurt and the surroundings, gathered on 28th February 2014, at the Consulate General Office of Ethiopia in Frankfurt, decided to form a German–Ethiopia Business Network, whose aim is to promote business between German and Ethiopia.

They arrived at this conclusion, after having a lively discussion on doing business in Ethiopia, at the invitation of the Office of the Consulate General of Ethiopia in Frankfurt.

All issues, be it promoting or hindering business, were discussed in a very frank and constructive way. It was underlined that Ethiopia has all the pre-requisites to promote business, such as peace and stability, low level of corruption, a developing infrastructure and an overall stable macro-economic situation.

However, the shortage of skilled man power and some bureaucratic hurdles were also raised, as hindrances to the fast developing economy.

It was pointed out that, every business should try to train the manpower necessary to run the particular businesses, as there is a readiness to learn quickly on the part of the labour force in Ethiopia.

It was also added that, the low level of German business in Ethiopia, is first and foremost because of the hesitation of German businesses to go to Africa on the one hand, & bureaucratic bottlenecks in Ethiopia on the other hand.

Among the businesses attended at the discussion, some have already invested in Ethiopia and are aspiring to increase their investment, some have got recently investment permits and some others are yet exploring business opportunities in Ethiopia.

Rift Valley Garden, Deutsche Balaton, Dessro International and Kaffe Pura are among those that are al-ready engaged in Business activities in Ethiopia and aspiring to increase their investment.
“Travel and Personality”, a tour Operator in Frankfurt, has decided to include Ethiopia in its package, after its owner visited recently Ethiopia and gave a day-long training to tour operators in Addis Ababa.

Moment Mal TV, a Film Production Plc, produced, a 10 minute film on Ethiopia’s attractions, that was broadcasted by ARD, ZDF & other known German Medias.

Among the Diaspora Ethiopians living in Frankfurt and the surrounding areas, trying to engage themselves in Business activities in Ethiopia and bridging German businesses to Ethiopia, attended the Networking event, were Estiphanos Samuel (event manager), Samuel Etana (Solar activist), Alem Tesfay (owner of German Social Aid), Meharit Shubert (promoting Bambus pro-duction), Mulugeta Tekle (Hawassa import-export), Yared Tesfay (solar energy expert) and Tewolde Gebre (IT).

Notable among others were Dr. Kifle Tondo, a Heart Sergeant, preparing a heart surgery team to provide with temporary medical service in Ethiopia is also aspiring to build a state of the art Hospital in Addis Ababa.

Our German Friends, who participated in the discussion that was accompanied by traditional Coffee Ceremony, were all committed to promote Ethiopia, whose image is not yet commensurate with the current status of the Country.

Thus, they decided in closing, to form German Ethiopia Business Network. To realize this, the participants selected four among them, to coordinate the Network in cooperation with the office of the Consulate General.
The Team of the Consulate General played a key role in making the event colorful and fruitful. (aigaforum)

http://www.waltainfo.com/index.php/explore/12526-germanethiopia-business-network-formed

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Project to strengthen climate information, early warning system

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 The Ethiopian Meteorology Agency launched “Strengthening Climate Information and Early Warning Systems in Ethiopia for Climate Resilient Development and Adaptation to Climate Change” 4.5 million USD project here yesterday.
The project aims at enhancing capacity of national hydro-meteorological and environmental institutions, monitoring extreme weather, and climate change and promoting efficient and effective use of hydro-meteorological environmental information ensuring early warning and long-term development plans.
Present at the launching workshop were senior federal and state government officials, representatives of various development partner organizations, CSOs, the media and UN agencies.
Opening the two-day workshop Water, Irrigation and Energy Minister Alemayehu Tegenu said despite the tremendous progress in the past couple of decades, Ethiopia has continued to be vulnerable to various disasters.
“Hydrological hazards, particularly drought and flood remain the leading causes of disaster in Ethiopia” the Minister said.
Alemayehu added: “The realization of government strategy depends on exploitation of our renewable energy resources, rehabilitation of our environment, intensification of agricultural and efficient land use in which adequate, reliable and up-to-date as well as high quality information is an indispensable variable in the equation of building resilience”.
According to Alemayehu, the project in close collaboration with stakeholders will support the government’s continuous efforts in the climate information generation and use in Ethiopia.
Agriculture State Minister Mitiku Kasa also said the government has put a tremendous effort to avert natural and man-made disaster applying continuous monitoring and early response strategy.
National Meteorology Agency Director General Fetene Teshome also said that monitoring and predicting climate remains a basis for climate change adaptation.
He also said that with the current very low institutional capacity for monitoring and predicting of climate characteristics any adaptation measures could not achieve targets.
The Agency, the Director General said, will install the first operational weather radar in the coming months. It also aspires to become world class meteorological agency by 2022, he added.
UNDP Deputy Country Director Bettina Woll on her part said that addressing climate change can stimulate new markets, creates job thereby promoting better management of forests, women’s empowerment, clean air and improved public health.
Ethiopia’s experience in the area of meteorological activities is commendable which is by far better than any other countries which adopted such projects, as Benjamin Larrogarette, Regional Technical Advisor to UNDP and GEF.
Ten more African countries are also reported to have launched the project. It is financed by the Least Developed Country Fund of the GEF. (EH)

http://www.waltainfo.com/index.php/explore/12543-project-to-strengthen-climate-information-early-warning-system-

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Egyptian General claims “Egypt owns one third of Ethiopia”

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An ex-high ranking military officer broke the news that according to some treaty back in the day, Egypt owns one third of Ethiopia, and if Ethiopia insists on building its dam, Egypt can and will take that treaty, along with the land-ownership contracts, to international courts and demand the return of its rightfully owned land in Ethiopia.

Once we win this case, the international courts will surely alert the international police station in Ethiopia, who will send a police force to enforce the ruling, cordon off a third of Ethiopia and hand it over to us.

“የኢትዮጵያ አንድ ሶስተኛው መሬት የግብፅ ነው። ኢትዮጵያ ግድቡን መገንባት ማታቆም ከሆነ መሬቱን እንወስዳለን።” ይላል አንድ የግብፅ ጀነራል። ንግግሩን ስሙት/ተመልከቱት።

Video: Egyptian General claims “Egypt owns one third of Ethiopia”

http://sodere.com/profiles/blogs/egyptian-general-claims-egypt-owns-one-third-of-ethiopia

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Filed under: Ag Related Tagged: Agriculture, Business, East Africa, Economic growth, Egypt, Ethiopia, Grand Ethiopian Renaissance Dam, Investment, Sub-Saharan Africa, tag1

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VENTURES AFRICA  – Ethiopia has always been the major contributor of the Nile, with its Blue Nile feeding the rainfall from the Ethiopian Highlands to the wider Nile downstream. Since the Government announced the start of construction of the Grand Ethiopian Renaissance Dam (GERD) project in 2011, with the aim of generating 6,000 mw, the project has attracted attention from a number of media outlets. The project was awarded to Salini Costruttori SPA, an Italian company which has built more than 20 dams in Europe, Asia and Africa, including the Gilgel Gibe II and Tana Beles dams in Ethiopia and is currently constructing the on-going Gilgel Gibe III dam. The electro – and hydro- mechanical work at GERD is being undertaken by Ethiopia’s Metal and Engineering Corporation (METEC), while Alstom, a French engineering company, will supply turbines and generators and supervise the installation of all the electro-mechanical equipment for the hydro-power plant’s consulting work is being carried out by a joint Italo-French Engineers company.

The primary objective of the GERD project is the generation of electricity. It will enable Ethiopia to completely cover the country’s internal power needs. These have been growing at an average rate of 25% a year. A reliable and affordable source of energy is a fundamental need not just for the wellbeing of the population but also for the economic growth and poverty-reduction efforts being undertaken by the country. Many rural communities in Ethiopia still do not have the benefits in health and quality of life provided by electrical services, such as lighting or refrigeration. Ethiopia also aspires to be the green energy hub of East Africa, delivering clean and renewable energy at cost value to neighboring countries. It has already signed contracts to export electricity to Kenya, Djibouti and Sudan. According to various studies, a one unit percent increase in energy supply can increase economic growth by at least one percent. On that basis when GERD begins operations, the national economy will increase by an additional four percent. This, in turn, will provide a catalyst for mutual development, interdependence, helping create long-lasting peace between countries throughout the region.

The Grand Ethiopia Renaissance Dam (GERD), under construction, but almost completed, has caused much consternation in Egypt.

However, the benefit of the GERD is not restricted to power supplies. The Dam will regulate the flow of the water and ensure a steady flow throughout the year, preventing the occurrence of floods downstream in Sudan or Egypt. Equally, GERD will hold back a major portion of silt and sedimentation. Over the years, this has rendered dams located in downstream countries much less effective, causing them to lose their water storage and electric power generation capacities. Indeed, this had meant both Sudan and Egypt have had to allocate huge sums to infrastructure maintenance, including replacement of turbines and dredging of clogged irrigation channels. Another benefit is that the topography of GERD’s location and the fact that the reservoir is to be built in a deep gorge will help minimize the water’s direct exposure to sunlight and reduce evaporation loss by up to 4 billion cubic meters annually. This, of course, means there will be significantly more water available for downstream countries to use.

Ethiopia has, time and again, demonstrated its determination to promote mutual benefit among all the Nile riparian countries and assist in the eradication of poverty from the region in this 21^st century. It was at the proposal of Ethiopia that the International Panel of Experts conducted its studies of the impact of the GERD project on lower riparian countries; and Ethiopia immediately accepted in full the recommendations of the IPoE Report, and has set about implementing them. In this connection, and contrary to some media reports, Ethiopia has not rejected proposals presented by Egypt. Indeed, the Egyptian government has not presented any new proposals over implementation of the IPoE report on GERD or on mutually beneficial utilization of the River.  During his recent official trip to Ethiopia, made at his own request, Egyptian Water Minister, Mohamed Abdul Muttalib, did not advance any new proposals. He only raised issues of the proposed confidence building and other unresolved issues that had been discussed at the last tripartite meeting in Khartoum in relation to the establishment of a new international panel of experts. Ethiopia and the Sudan agreed that the issue of the principles of confidence building presented by Egypt in Khartoum had clearly been dealt with under the Cooperative Framework Agreement and emphasized that the tripartite meeting agenda was focused on technical issues. In regard to Egypt’s call for the establishment of a new international panel of experts, Ethiopia and Sudan felt this was unnecessary in the light of the IPoE’s Report, but accepted the idea as something to be set up if the agreed national committee found itself in disagreement over the two recommended studies which the three parties had mandated it to oversee.

The Egyptian Minister also suggested halting construction of the GERD until Egypt had conducted further studies. This was rejected by the Ethiopian government, which told the Minister quite clearly that the construction of the Grand Ethiopian Renaissance Dam was a “flagship project” for the nation, and that it would be completed within its project timeline with the full participation of Ethiopians at home and abroad. As a matter of fact, according to the National Coordination Office for the Dam, the GERD will begin to generate 700mw electricity from September 2015.

Grand Ethiopian Renaissance Dam, when completed, will reduce the capacity of the Aswan High Dam, helping to save about six billion cubic metres of water. Image courtesy of Hajor.

Following the Egyptian Water Minister’s meeting with Ethiopia’s Minister of Water and Energy, Ato Alemayehu Tegenu, Egyptian media outlets intensified their negative campaign against the GERD Project and Ethiopia. They claimed technical matters were an issue, including building standards or whether the Dam was safe from collapse. These were nonsensical, not least since the Dam is being built to the levels of 21^st century state-of-the-art technology, very much improved since the construction of the Aswan High Dam fifty years ago. Imaginary doomsday scenarios of collapse are not helpful in finding solutions for differences. Ethiopia hopes Egypt will come to its senses. It is clear there is no alternative to move to start discussions with all Nile Basin states over the use of the waters of the Basin for the mutual benefit and best interest of all.

Ethiopia has made clear its preference to continue talks since this is the only way to resolve differences and to produce a win-win solution. At the same time, the Ethiopian government has emphasized that it is not ready to conduct further discussions in the absence of the Sudan or outside the framework of the tripartite Water Ministers’ meetings. For Ethiopia, cooperation among Nile Basin countries was and remains a central principle of policy. This underlines its determination to respond to any concerns and the reason for immediately accepting the IPoE’s recommendations and starting to implement them unilaterally and without delay. This was also why it immediately agreed at the tripartite Water Ministers’ meetings to the further studies suggested by the IPoE. Ethiopia has, in fact, made every effort to take into account the concerns of Sudan and Egypt, and will continue to do so in order to implement the GERD, a project that will have valuable multi-fold applications throughout the whole of the East Africa region. Its successful implementation will be a source of hope, power, prosperity and pride for the region and a very real symbol of regional integration.

Sourced  here

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Filed under: Ag Related Tagged: Agriculture, East Africa, Economic growth, Egypt, Ethiopia, Grand Ethiopian Renaissance Dam, Investment, Millennium Development Goals, Sub-Saharan Africa, tag1

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Allana Potash opening Ethiopian mine in the hottest place on Earth

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Keeping costs low is key amid potash price slump

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Mar 6, 2014 Stephanie Findlay

A highway under construction in Ethiopia’s Danakhil depression.

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Lately, things haven’t been looking good for potash producers. Last summer, Uralkali, one of the biggest producers of the potassium fertilizer, killed its partnership with competitor Belaruskali in favour of boosting output, fuelling oversupply fears among investors and driving down prices. The situation has hardly improved since then. On Jan. 30, fourth-quarter profits at Potash Corp. of Saskatchewan, another large producer, dropped 46%, a result, said the company, of the “challenging pricing environment.”

Allana Potash Corp., the Canadian developer of a $718-million potash mine in Ethiopia, believes it can buck the trend. While other mines are shelving development projects because of the lower prices, Allana is going “full speed ahead” with its Ethiopian project, says Richard Kelertas, vice-president of corporate development at Allana. The company’s secret? Kelertas says that the mine, set to begin producing in late 2015, will have easy access to the booming Chinese and Indian markets, and much lower production costs, making it profitable despite the price slump.

Allana’s mine is located in the remote Danakhil depression, a scorching-hot salt plain where temperatures often soar above 45°C, and where potash is close to the surface. Allana will do solution mining—cheaper than the open-pit or shaft mining done by its competitors. “When you’re talking about drilling down, you have to have a big mine, and big mines have to have big dollars,” says Spencer Churchill, a Toronto-based analyst at Paradigm Capital. Now, says Churchill, “a lot of the higher-cost producers are looking more aggressively where they can expand with lower costs.”

Lower potash prices will still hurt companies like Allana—just not as much as the big producers. Meanwhile, Kelertas can’t wait to start digging in the Danakhil depression. “It’s fairly tough conditions for humans,” he says, “but there’s always a slight breeze coming off the mountains.”

http://www.canadianbusiness.com/global-report/allana-potash-ethiopia/

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Yum Eyes Ethiopian Entry as KFC Restaurants Expand Across Africa

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By Chris Kay   March 06, 2014

Yum! Brands Inc. (YUM:US), the owner of the KFC fast-food chain, said it’s looking at entering Ethiopia, Africa’s second-most populous nation, as it expands across the continent.

“Ethiopia is the one that stands out because it has 85 to 90 million people, so that’s attractive,” Bruce Layzell, Yum’s general manager of new African markets, said in a phone interview today from Johannesburg. “We’re certainly nowhere near pushing the go button, it’s still at that explore stage, to find the right partner, to see if the business model will work.”

Ethiopia’s economy grew an average of 10.3 percent from 2008 to 2012, according to the International Monetary Fund. Expansion is projected to reach 7.5 percent this year from 7 percent in 2013, the Washington-based lender said in October.

Yum last month posted fourth-quarter profit that exceeded analysts’ estimates on sales gains at its international division. The Louisville, Kentucky-based company has been expanding in emerging markets as well as boosting sales in nations including Russia and France. Yum gets about a quarter of its revenue from its international division, where sales at restaurants open at least a year rose 2 percent in the quarter. Yum has more than 40,000 restaurants worldwide.

“We don’t want to go to a country where we can only build four or five restaurants, that’s going to deliver no one success,” Layzell said. “We want to go in and build 50, 100, our business is the scale game.”

Yum operates in 13 sub-Saharan African countries, including South Africa and Nigeria, which are its largest markets in the region, he said. The company is also exploring the possibility of opening Pizza Hut stores in the region, Layzell said.

http://www.businessweek.com/news/2014-03-06/yum-eyes-ethiopian-entry-as-kfc-restaurants-expand-across-africa

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Ethiopia the 7th  biggest economy in Africa

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The CIA World Fact-book has updated Ethiopia’s GDP PPP (Purchasing Power Parity) to 118.2 billion USD for 2013 which is over 9 billion USD growth from the previous year’s.

“This is a remarkable annual growth particularly for an economy without oil, gas, or significant minerals,” the report said.

According to the report, Ethiopia’s economy leapfrogs many notable countries including Syria, Tunisia, Uzbekistan, Bulgaria, Burma, and Dominican Republic. Ethiopia is now officially the 7th biggest economy in Africa and the 69th biggest economy in the world.

Ethiopia’s GDP (Official Exchange Rate) also grew from 41.9 billion USD in 2012 to 47.3 billion USD in 2013. Lead by manufacturing and electric power grids, Ethiopia’s economy is expected to continue leapfrogging many countries in the next few years, the report added.

The report said: “Once again, the right policies outlined by the government and the ruling party are proven to be working. The credit for such sustainable high growth rate goes to all hard working public servants, specifically, to the late Premier Meles Zenawi, who was the architect of the economic reforms.”

http://www.ethpress.gov.et/herald/index.php/herald/news/6187-ethiopia-the-7th-biggest-economy-in-africa

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Dr. Tedros holds talks with Israel’s agriculture, rural dev’t Minister

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Foreign Affairs Minister, Dr. Tedros, held discussions with Israel’s Agriculture and Rural Development Minister, Yair Shamir, on Wednesday, March 5.

Dr. Tedros noted that Ethiopia and Israel had a long and strong relationship and pointed out that Ethiopia has taken lessons from the Israeli experience in the areas of micro-irrigation and water management for arid regions.

Shamir explained that his visit was in line with the new policy that his country was following, focusing on Africa. He said Israel was keen to deepen its relations with African nations.

Dr. Tedros underlined Ethiopia’s great potential and the opportunities for investment. He called upon Israeli businesses to invest in Ethiopia, drawing attention in particular to the priority areas of horticulture, floriculture, textile and garment production and agro-processing.

He also expressed the government’s commitment to provide all necessary support to encourage Israelis investors. The Israeli Minister said the Israeli government would also pave the way for Israeli businesses to invest in Ethiopia and said Israel was very willing to use its agricultural knowledge to work closely with European countries in order to find ways to invest jointly in Ethiopia.

Shamir is heading a delegation of representatives of leading Israeli companies involved in agriculture, irrigation, poultry, fisheries, agro-chemicals and large scale agriculture project integrators.

http://www.waltainfo.com/index.php/explore/12548-dr-tedros-holds-talks-with-israels-agriculture-rural-devt-minister-

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Israeli agri-tech companies show investment interest

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The business-to-business meeting of investors would enable to get

Israeli companies in different lines of investment

The Ministry of Agriculture discussed with its Israeli counterpart agricultural investment opportunity potentials which are open to more modern Israeli companies to make a great business out of it thereby transferring technology to the local people.

Opening the meeting here yesterday, Minister Tefera Derbew said that as the government is set to eradicate poverty and improve the lives of those engaged in agriculture, the business-to-business meeting of investors would enable to get Israeli companies in different lines of investment.

He said the agriculture and rural development policies are adopted to enable farmers to use modern technology and new agricultural practices efficiently and effectively thereby boosting production and productivity.

According to him, the policy provides a framework to boost the share of local and foreign investors in the agriculture and rural development.

“Ethiopia is a land of unique opportunity for agricultural investment. We have identified two kinds of investment opportunities, i.e., highland and surrounding areas of Addis Ababa and big states and the lowland areas of the country where there is vast arable land with sparsely populated or not inhabited by settlers,” Tefera said.

He also noted that given the high number of livestock population opportunities for the production and export of good quality meat and poultry, it is commendable for Israeli companies to boldly venture in this sector.

Israeli Agriculture and Rural Development Minster Yair Shamir on his part said that the State of Israel is a tiny country while half of it is arid and semi arid and situated in a geo-politically turbulent region. “This makes trade and cooperation with neighbours limited or non-existent. Consequently, Israel’s trading partners are remote and faraway.”

According to him, the visit made to Ethiopia is an opportunity to publicize technologies that were developed and commercialized in Israel by the agri-tech sector for the benefit of Israeli and Ethiopian farmers.

He further noted that business cooperation helps Israeli companies to better understand the characteristics and diverse needs of Ethiopian agriculture and explore ways of using this cooperation.

Israeli Ambassador Belaynesh Zevadia also said that Israeli agri-tech companies have keen interest to forge closer investment and business cooperation in Ethiopia.

She said that Israel is characterized by intensive research and innovative development system to overcome local scarcities of water and arable land or its vigilance to provide effective and measured responses to evolving domestic and foreign threats.

As to her, Ethiopia would learn a lot from the successful experiences of Israel in the agriculture sector and this could be realized via transfer of skills and capacity building training.

http://www.ethpress.gov.et/herald/index.php/herald/news/6205-israeli-agri-tech-companies-show-investement-interest

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Unilever Plans Manufacturing Plant in Ethiopia as Growth Surges

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By William Davison   March 09, 2014

Unilever (UNA), the world’s second-biggest consumer-products maker, plans to open a manufacturing plant in Ethiopia during the next year in a bid to emulate its expansion into Vietnam, a company official said.

The London- and Rotterdam-based company is renting premises for a plant in the Chinese-built Eastern Industry Zone in Dukem, 19 miles southeast of the capital, Addis Ababa, Dougie Brew, head of corporate affairs in Africa, said in a phone interview on March 4. Unilever, which already imports Knorr stock cubes and Omo detergent into Ethiopia, may initially make fabric-cleaning soaps before moving into food, he said from London.

“The plans are ambitious for Ethiopia because we see it as a growing market,” Brew said. “We’ve taken a long-term investment decision in Ethiopia because of the demography, broad-based growth and opportunity to create a genuinely inclusive and sustainable business model from scratch.”

Ethiopia’s economy is projected to expand 8 percent in the 12 months to July 7 after growing an average of 9.3 percent for the past four years, according to an October report by the International Monetary Fund. The country’s estimated population last year of 93.9 million people, sub-Saharan Africa’s second-largest, is increasing at 2.9 percent a year, according to the U.S. Central Intelligence Agency’s World Factbook.

Yum! Brands Inc. (YUM:US), the owner of the KFC fast-food chain, said on March 6 it’s considering entering Ethiopia as it expands across the continent.

Vietnam Success

Unilever invested $130 million in Vietnam as the business grew annually at more than 10 percent for 14 years after opening in 1995, a 2009 report by a think-tank at the Southeast Asian nation’s Planning and Investment Ministry said. The company is looking at a “similar scale” operations in Ethiopia, Brew said.

Ethiopia’s economy, at $41.6 billion, is almost four times smaller than Vietnam’s, according to World Bank data.

The company plans to build a “comprehensive consumer-goods manufacturing business” in Ethiopia, which will source from Ethiopian suppliers, Brew said. “Retail is still a restricted sector so a lot of our work will be developing local Ethiopian companies that will act as distributors.”

The case study by Vietnam’s Central Institute for Economic Management praised Unilever Vietnam Co. for sourcing 60 percent of raw materials and all of its packaging domestically by 2007. The company created 1,200 jobs directly and 8,000 indirectly in the country, according to the report posted on Unilever’s website.

The company whose brands include Lynx deodorant, Vaseline and Lipton Tea, will focus on sales in Ethiopia and later neighbors including South Sudan and Somalia once security improves.

“In businesses like ours it always makes sense to manufacture close to the consumer,” he said.

Violence erupted in South Sudan on Dec. 15 and clashes are continuing even after a Jan. 23 cease-fire, while Somali government forces have been battling Islamist militants for at least the past eight years.

To contact the reporter on this story: William Davison in Addis Ababa at  wdavison3@bloomberg.net

To contact the editors responsible for this story: Paul Richardson at  pmrichardson@bloomberg.net Alastair Reed

http://www.businessweek.com/news/2014-03-09/unilever-plans-manufacturing-plant-in-ethiopia-as-growth-surges

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Ethiopian women struggle against inequality

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Saturday, March 08, 2014

ADDIS ABABA – Facing inequality, poverty and domestic violence, Ethiopian women are aspiring for a better future, as millions around the world as marking the International Women`s Day.

“I support my family. I pay school fees for my sisters and brothers. I am also married,” Elzabeth Beyene, 21, a street mechanic, told Anadolu Agency on Saturday.

Beyene has been working in fixing cars for 12 years to support her family.

“Clients do not discriminate against me, but life is an everyday battle,” she said.

Women make up around 49.5 percent of Ethiopia`s 90 million population.

Ethiopian women face numerous physical hardships such as carrying loads over long distances, grinding grain manually and working in the homestead.

Women in the Horn of African country also complain of fewer opportunities in employment and education than men.

According to government estimates, less than 35 percent of women have joined the workforce and that about 58 percent of the working women are in the informal sector.

“We have opened our eyes and began struggle to maintain gender equality,” Misrak Sinishaw, Coordination Head of Women’s, Children’s and Youth Affairs with the Ethiopian Government Communication Affairs Office, told AA.

In an effort to improve the status of women in the Horn of African country, the Ethiopian government has raised the marriage age from 15 to 18 years old.

The government has also granted women the right to share property in a household. It also banned the marriage of girls under 18 and slapped abductors of girls with jail sentences up to 20 years.

“Gender equality at work and in the entire society should not be a talk of March 8. We have a long way to go,” said Etaferahu Abebe, a female social worker at a local non-governmental organization.

“The male world in Ethiopia still thinks that they are naturally created to rule over us,” she said.

http://www.turkishpress.com/news/393798/

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BDO enters Ethiopia

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The world’s fifth largest auditing and accounting firm, BDO, opens its office in Addis Ababa in partnership with a local consultant firm by the name of Next Consult P.L.C., established in 2005.

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Global Commission launches research in Ethiopia

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The Global Commission on the Economy and Climate has launched research for its New Climate Economy (NCE) project in Ethiopia. 

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Stratex relinquishes gold exploration due to low potential

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-Ashanti pulls out from JV

The British mining company that has been prospecting for gold in the Tigrai and Afar regional states, Stratex International Plc, has relinquished three gold exploration projects.  

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http://www.thereporterethiopia.com/index.php/news-headlines/item/1713-stratex-relinquishes-gold-exploration-due-to-low-potential

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Starbucks Celebrates Ethiopia Espresso Coffee

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VENTURES AFRICA – From January to March 2014 customers will be able to drink Starbucks Ethiopia Origin Espresso, with its velvety notes of dark chocolate and sweet citrus. To celebrate Starbucks with the Ethiopian Embassy, hosted an event at one of their flagship stores in London’s Covent Garden, to honour the birthplace of coffee and everything Ethiopian.

Kris Engskov, President Starbucks EMEA said “it was fantastic to welcome members of the Ethiopian Embassy to the St Martins Lane store to celebrate Starbucks Origin Espresso Ethiopia with a traditional Ethiopian coffee ceremony. Ethiopia is the birthplace of Arabica coffee and we are proud to have sourced exceptional coffee from this country since Starbucks was founded in 1971. Our coffee experts chose this coffee for its defining flavour characteristics of dark chocolate and citrus that really distinguish its origin.”

Speaking on behalf of the Ambassador, Trade and Investment Counsellor, Hirut Zemene, said “Ethiopia is one of the top producers in the world, where close to 15 million farmers and stakeholders depend on the coffee sub-sector.” She thanked the Starbucks team for promoting Ethiopian coffee through a dedicated evening. “We hope to work together in similar promotion endeavours in the future,” she added.

(l-r) Kris Engskov, President of Starbucks EMEA, Simon Redfern, Starbucks’ Director of Corporate Affairs, Mrs Hirut Zemene, Minister Counsellor – Trade and Investment and Mr Mulugeta Asseratte Kassa, Economic and Business Affairs Officer ©Starbucks/Jason Alden

At a traditional Ethiopian coffee ceremony, coffee was served with popcorn, bread and kolo (roast barley) to invited guests including the media.

Guests took part in a ‘cupping’ and ‘aroma lab’/ food pairing demonstration, led by Starbucks’ coffee ambassadors, which compared coffees from all over the world including Ethiopia, Kenya, South America and Asia. Guests came away with an enhanced understanding of the methods used to produce and roast coffee, and how in different regions, these processes impact taste profile.

The birthplace of coffee, the Kaffa Region in Ethiopia – which gave its name to coffee – grows only Arabica beans. Shared coffee remains central to Ethiopian culture and heritage.

http://www.ventures-africa.com/2014/03/starbucks-celebrates-ethiopia-espresso-coffee/

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