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By Jonathan Ferziger

Israel’s Foreign Minister Avigdor Liberman is seeking deals in the world’s fastest-growing economies for companies including defense contractor Elbit Systems Ltd., irrigation equipment maker Netafim Ltd. and billionaire Idan Ofer’s Israel Chemicals Ltd. Photographer: Uriel Sinai/Getty Images

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Israel’s government is leading 50 executives this week on a tour of Africa in a bid to diversify business interests amid the threat of international boycotts and irritation over new corporate taxes.

Foreign Minister Avigdor Liberman is seeking deals in the world’s fastest-growing economies for companies including defense contractor Elbit Systems Ltd. (ESLT), irrigation equipment maker Netafim Ltd. and billionaire Idan Ofer’s Israel Chemicals Ltd. (ICL) Ofer was in Ethiopia last month to inspect his latest investment in a $642 million potash mining project. The company is looking to turn around the worst stock return this year on the Tel Aviv benchmark stock index.

Israeli companies and politicians are “sensitive to the issue of isolation,” said Terence Klingman, head of research at Psagot Investment House Ltd. in Tel Aviv. There’s a push to spread the export base to “countries that are more agnostic about the state of Israeli-Palestinian relations,” he said.

International funds that manage more than $1 trillion have divested from Israeli companies as Palestinians have turned to economic sanctions in their campaign to end Israel’s 47-year-old occupation of the West Bank. About 350,000 Israelis live in settlements there amid 2.3 million Palestinians.

Norway’s $880 billion sovereign wealth fund, the world’s biggest, excluded Africa-Israel Investments Ltd. from its portfolio because the Tel Aviv-based company has construction and real estate activities in Jewish West Bank settlements. PGGM, the Dutch asset manager with $200 billion, rebuffed Bank Hapoalim Ltd. (POLI) and other Israeli lenders last year. U.S. Secretary of State John Kerry said Israel risked “being an apartheid state” in comments he later apologized for.

Non-Traditional Partners

Attempts to “boycott, divest and sanction Israel” are driving business from traditional trading partners in the U.S. and Europe toward Africa, Asia and Latin America, Prime Minister Benjamin Netanyahu said at the annual Washington conference in March of the America-Israel Public Affairs Committee.

Tel Aviv-based Israel Chemicals was among the companies targeted by the Israel Divestment Campaign in an effort to get the California Public Employees’ Retirement System to sell off its shares in 2010. The campaign failed. Israel Chemicals, which harvests minerals from the Dead Sea, declined to comment on the sanctions campaign.

The company said it will seek more international ventures and may reduce domestic operations when it bought a $23 million stake in Ethiopia’s Danakhil mine being developed by Toronto-based Allana Potash Corp. (AAA) Last year, Potash Corp. (POT:US) of Saskatchewan suspended a proposed takeover of Israel Chemicals opposed by Finance Minister Yair Lapid.

Worst Performer

Israel Chemicals shares have tumbled 26 percent in the past 12 months, the worst among 25 stocks on the Tel Aviv index. They were down 0.2 percent at 29.50 shekels at 12:24 p.m. in Tel Aviv. The stock has been hurt by falling potash prices and the government’s review of its royalties policy. A state panel on May 18 recommended a new windfall tax of 42 percent on all quarried materials.

Ofer, worth an estimated $5.4 billion by the Bloomberg Billionaires Index, isn’t the first wealthy Israeli to invest in Africa. Dan Gertler, whose fortune is estimated at $2.5 billion, owns stakes in copper, iron, manganese and cobalt mines in the Democratic Republic of Congo, complementing his diamond trading business. Beny Steinmetz, whose wealth is estimated at $4.1 billion, is the target of a corruption investigation into his iron-mining activities in Guinea. He has denied wrongdoing.

Exports Quadruple

Israel’s sub-Saharan exports amounted to $1.4 billion last year, almost four times the total of $374 million in 2003, said Shauli Katznelson, who directs the economic division at the Israel Institute for Export and International Cooperation in Tel Aviv.

While the World Bank has cut its growth estimate for sub-Saharan Africa this year to 4.7 percent from 5.3 percent, and for 2015 to 5.1 percent from 5.4 percent, Katznelson sees good prospects for Israeli businesses. Of the region’s 52 countries, Nigeria, Angola, Kenya, Tanzania, Ghana and Ethiopia are likely to be most fruitful, he said.

“When you look at the map, you see growth in the sub-Saharan countries that is even greater than in Asia and that offers a great deal of opportunity for Israeli companies,” Katznelson said.

To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net Amy Teibel, Gwen Ackerman

Sourced here:   http://www.businessweek.com/news/2014-06-16/trillion-dollar-rebuff-spurs-african-road-trip-israel-markets

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By James Jeffrey  /  18 June 2014

Beside the small town of Adiguden a group of cows prance and buck when released from their shed into a paddock beneath the piercing sunshine of the midday sun in northern Ethiopia.

They are owned by a British entrepreneur and his Ethiopian partners, who have created a new dairy company called AJGG Dairy Products, based in Ethiopia’s Tigray region bordering Eritrea.

It is early days for the business, which still has to use a horse-drawn cart for the daily milk run from the 2.5 hectare (6.2 acre) farm to the local bus station, from where its product is then driven 35km (22 miles) to be sold in Makelle, Tigray’s capital.

Hence you might ask John Crisp, the Brit behind the joint venture: why on earth open a dairy farm in Ethiopia?

“It is a little complicated,” says the 57-year-old.

Mr Crisp originally met his four AJGG partners through an organisation working with the mentally ill in Mekelle. This led to the idea of how a dairy farm could offer occupational therapy to patients recovering from mental health problems.

Twenty cows later and Mr Crisp has an 80% stake in an operational small business, with last month’s move into new facilities an important step toward establishing the first dairy processing facility in northern Ethiopia.

The creation of the company comes as milk is increasingly popular in Ethiopia, especially as the country’s middle class grows, people’s disposable incomes increase, and more homes purchase refrigerators.

Shared strengths

Girmay Kahsay, one of Mr Crisp’s partners, says that establishing the dairy as a joint venture has provided a number of advantages.

“Locals understand the culture and have communication skills to deal with bureaucracy, while a foreigner often has better access to capital and technology,” he says.

And it is not just the business’ management which is benefiting from mixing Ethiopian and foreign inputs.

The herd is a hybrid breed, bred from European Holsteins and local cows. The European genes provide the high milk production, while the Ethiopian ones give more disease resistance.

Currently AJGG sells raw milk locally, but once processing and packaging equipment is installed it will produce pasteurised milk, butter, cheese and yoghurt.

“This will require much more milk than the herd can produce, so we will take milk from small local dairy farmers,” says Micheale Abrha, a fellow partner and AJGG general manager.

Good news for farmers, Mr Micheale says, especially as the local dairy market collapses for months during religious fasting, when Ethiopian Orthodox Christians do not consume animal products.

In addition to the processed dairy products adding value and being storable for sale after fasting periods, their transportability will open up new markets to further offset fasting-related slumps.

No easy solutions

Yet much needs to be done if AJGG is to expand and reach supermarket shelves in Addis Ababa 720km to the south.

The all important processing equipment still needs to be imported, most likely from Israel. The plan is to install it in late August when the rainy season ends.

“That gives us a couple of months to get processing activities running, and iron out glitches, before the Advent fast begins,” Mr Crisp notes.

Another problem is accessing groundwater needed for irrigation to grow animal feed.

A geological survey indicated ample water accessible at 80m (262 ft). But a neighbouring dairy farmer sunk a bore hole to 115m that produced little water.

As a result, AJGG may need to apply for a new lot of land in which to sink a bore hole from where it can pipe water to the farm.

Beyond natural challenges are those man-made at governmental level.

For a foreigner to gain an investment licence for a joint venture in Ethiopia, a minimum initial investment of $150,000 (£93,750) is required. This is less than the $200,000 required from a foreigner going it alone, but still a lot of money.

Previously this could be paid gradually during the course of establishing a company. But when AJGG tried to renew its investment licence in March, it found the government had decided the whole amount must be transferred before granting or renewing licences.

“This was symptomatic of the difficulties of doing business here,” Mr Crisp says. “The rules change constantly.”

Mr Crisp, in another instance, was told he could import a vehicle free of customs duty, which can reach 300% of the value of the item imported.

But the rule changed to apply only to companies investing in excess of 10m birr ($526,315; £310,000), Mr Crisp says.

This left AJGG without a vehicle and unable to get its product to market – hence the horse-drawn cart to the bus station while management considers its options.

Free market?

Changes in regulation is a common complaint among foreign investors in Ethiopia, with the government appearing to beckon private investment while at the same time remaining concerned about any possible negative impact on domestic businesses.

“[It is] concerned that if foreign investors are allowed in certain sectors, local businesses might not be able to compete,” says Manaye Ewunetu, managing director of London-based ME Consulting Engineers, which specialises in Africa and the Middle East.

He adds: “I think there is a safety net mechanism to control exploitations experienced in the past.”

In addition, since the overthrow of Emperor Haile Selassie in 1974, many policies of Ethiopia’s leaders and governments have had a strong socialist hue – which has left a mark.

“The public sector dominates investment,” says Dani Rodrik, an economist with US-based Institute for Advanced Study. “Private investment in modern industries… remains too low to sustain structural transformation.”

However, Mr Rodrik does note encouraging signs for manufacturing investment.

And Nick Woodall-Mason, operations manager in Ethiopia for the UK’s Tullow Oil, says that the Ethiopian government is more often happy to see foreign investment in business areas which are not seen as strategic, such as telecoms and banking.

He adds: “It provides very good tax breaks to Ethiopian or foreigner alike to start a business.”

Despite any lingering reservations the Ethiopian government may still have about the private sector, there is one advantage to an entrepreneurial endeavour that includes calf-bearing cows.

“The business literally grows naturally,” Mr Crisp says.

Sourced here:  http://www.bbc.com/news/business-27779684

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Geology and Mineral Information Systems Experts to meet in Addis Ababa

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 Experts working in the area of African geology and mineral information Systems will assemble in Addis Ababa, Ethiopia from July 8-10. The meeting will take place amidst a growing consensus among experts that there is a lack of geological map coverage at appropriate scales across many African countries. In addition, there is a generally limited capacity currently available to fill these gaps through for example, field mapping, geophysical data acquisition and processing, and spatial data management among others.
According to the African Minerals Development Centre (AMDC), the lack of minerals resource potential information is cited as putting African countries at a disadvantage when developing policies as well as negotiating contracts under the relevant legislation, and the lack of data also reduces the levels of investment in minerals exploration and mining activities including related upstream and downstream economic activities. Furthermore minerals are essential for development not only in terms of beneficiation, the generation of foreign currency or foreign direct investment but also to provide building and construction materials in support of infrastructure investments, as inputs for manufacturing, and for agriculture e.g. agro-minerals and as inputs to fertiliser production.  In addition, there are gems and semi-precious stone that also provide opportunities for income supplements, livelihoods, new industries and the creation of skilled labour.
The meeting will discuss mineral resource classifications, the role of Public Private Partnerships (PPPs) in leveraging resources for filling geology and minerals information gaps and the role of geology and minerals information in areas raised by the AMV, such as defining mineral exploration blocks for auction as well as leasing or tenure.
Beyond these issues, there is a need to define the principles and practices that inform the management of geology and minerals information and international interventions supporting the collection, management and dissemination of these data.
Not to editors: In 2009, African heads of state adopted the African Mining Vision (AMV) which identified the level and quality of resource potential data as a critical constraint and factor for the success of realising the vision.  In December 2011 the Action Plan for Implementing the AMV was adopted by the Second African Union Conference of Ministers Responsible for Mineral Resources Development.  The Plan set out actions that would build a sustainable future for Africa’s extractive industry.  This included actions in the area of geological and mining information systems with the goal of developing a comprehensive knowledge of Africa’s mineral endowment.

http://www.uneca.org/media-centre/stories/geology-and-mineral-information-systems-experts-meet-addis-ababa#.U6L6Io1OW70

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Ethiopia Secured U.S $ 100 Million Loan

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Ethiopian government secured a U.S $ 100 Million promised loan from the Korean Export Import (EXIM) Bank. The loan is extended for financing part of the Modjo-Hawassa highway project.

The loan agreement was signed earlier and it was on Monday, June 9, 2014 the agreement was
given a green light from the House of Peoples’ Representative through a ratification bill.

Modjo-Hawassa highway is a 218 Kilometers road and it is going to be constructed in two
phases. The first phase will cover a total distance of 93 Kilometers and stretches from
Modjo to Ziway. This phase is also divided in to two lots.

From the total cost of the construction, which is U.S $ 350 Million, U.S $ 128.5 Million is already secured as loan from the African Development Bank for the construction of the first lot.

The loan obtained from the Korean EXIM Bank is going to be used for the second lot that stretches 37 Kilometers. This lot is going to extend from Meki to Ziway.

The loan from the Korean EXIM Bank will be paid in 40 years with a period of grace for 15 years.

http://www.2merkato.com/news/alerts/3050-ethiopia-secured-us-100-million-loan

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Major Italian Companies Take Part in Specialized International Trade Exhibition

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2238:major-italian-companies-take-part-in-specialized-international-trade-exhibition&Itemid=260

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Ethiopia Wants to Work with Israel to Fight Terrorism: Hailemariam

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2231:ethiopia-wants-to-work-with-israel-to-fight-terrorism-hailemariam&Itemid=260

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Ethiopia Keen to Learn from Israel’s Best Practices in Agriculture: President

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With the African continent home to the majority of the world’s fastest-growing economies, urban consumer markets and a wealth of natural resources, it’s perhaps not surprising that some of the world’s largest corporations, from Monsanto to Unilever, are rushing to get a slice of the action.

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The Berlin Conference (1884-1885) was a landmark moment in the western colonization of the African continent

Nation Keeps Inflation Rate at Single Digit

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The government of Ethiopia has managed to keep the general inflation rate at single digit for the last 15 months, the Central Statistics Agency said.

The inflation rate was recorded at 8.70 percent in May 2014, a 0.4 percent decrease from the previous month, Household Research and Price Statistics Director at the Agency, Alemayehu Teferi told ENA.

Inflation Rate in Ethiopia averaged 19.69 percent from 2006 until 2014, reaching an all time high of 64.20 percent in July of 2008 and a record low of -4.10 percent in September of 2009.

Inflation rate dropped to single digit since March 2013. This demonstrates that efforts exerted to keep the inflation rate at single digit during the growth and transformation plan period is successful, he said.

The drop in the inflation rate is a result of various measures taken by the government to stabilize the market, he added.

Various measures including subsidizing some products such as wheat and edible oil, and removed taxes on flour and grains, price freeze and adopting contractionary monetary policy were taken by the government to address the challenge.

Food inflation dropped to 6.3 percent, showing a 1.7 percent drop from the previous month, while non-food items inflation raise to 11.4 percent from a 10.3 percent in April.

The drop in food inflation contributed for the drop in the general inflation rate. The inflation rate increase in non-food items doesn’t much affect the general inflation because of low contribution, the Director added.

It is expected that the inflation in the coming two months is expected to show a slight increase because of the possible shortage of food items following the main rainy season, he explained. But the inflation will return to the current level starting from September.

Demand increase and shortage of supply, creating artificial shortage by hiding items and increasing amount of increase in money supply are the main factors in Ethiopia for rise in inflation.

It will be fine for better performance of the economy and the society if inflation rate be able to keep at this level, he said.

The Director suggested that government agencies should prioritize to make sure that demand and supply are going parallel rather than focus on only monetary control.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2246:nation-keeps-inflation-rate-at-single-digit&Itemid=260

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House passes new investment proclamation

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The House of People’s Representative today (June 20) passed a new legislation on investment. The new proclamation amended the name of the Ethiopian Investment Agency to be named as Ethiopian Investment Commission. The new proclamation has also introduced changes in the organization, duties and responsibilities of the Commission .Accordingly, the proclamation envisages the establishment of a new Investment Board headed by Prime Minister Hailemariam Desalegn. The Investment Board will have the authority of controlling and administering industrial zones. The new proclamation also introduced changes in areas of investment open for domestic investors and in the administration of industrial zones. Berhanu Mekuye , Chair of the Industry Affairs Standing Committee said that the promulgation of the new law will have an important impact in enabling to fully benefit from Ethiopia’s growing investment attraction. The establishment of the Board that will be chaired by the Prime Minister is said to have an important role in addressing policy issues from local and foreign investors in a swift manner.

http://www.mfa.gov.et/news/more.php?newsid=3249

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Ethiopia and Canada Keen to Strengthen Ties

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During the 4th Ethio-Canada Bilateral Consultation officials of Ethiopia and Canada affirmed they will strengthen ties in the areas of trade and investment and also cement former deals.

According to the Foreign Minister American Affairs Director, Taye Aske Sellasie, Canada is the third top development partners of Ethiopia and it has been assisting Ethiopia in various development initiatives which are in line with the Growth and Transformation Plan (GTP) as well as the Millennium Development Goals(MDGs).

Taye further noted the Consultation was aimed at looking the gaps and major achievements secured by Ethiopia with regard to the eight MDGs it is working on by the bilateral assistance it gets from Canada.

Taye also marked representatives of the two countries will discuss ways on how to enhance trade and investment.

The Canadian Ambassador to Ethiopia, David Usher, on his part noted Canada has been providing support to Ethiopia on different sectors. He also appreciated achievements made by Ethiopia.

Usher further noted Ethiopian Airlines’ flight to Canada three times a week is the best opportunity to cement and investment relation of the two countries.

As per the delegates of Canada, they aspire to increase Canadians participation in the mining sector. In addition to this, they expressed their interest in empowering women in the sector via training. Currently, as the data from the Ministry of Mines indicate, there are 11 Canadian licensed investors in Ethiopia participating in the mineral and petroleum exploration.

In relation to trade relation the balance of trade the two countries is in favor of Canada even if there is some improvement.

http://www.2merkato.com/news/alerts/3058-ethiopia-and-canada-keen-to-strengthen-ties

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Ethio-German Economic Relations Growing, Says Ambassador Cyrus

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The economic relationship of Ethiopia and Germany has registered growth, according to Germany’s Ambassador to Ethiopia.

Ambassador Lieselore Cyrus said the relationship of the two countries with respect to investment would further be consolidated.

The Ambassador appreciated the development activities she saw during her four years stay in Ethiopia and promised to work for the further strengthening of the relationship of the two countries.

President Mulatu Teshome held talks with the departing German ambassador on Friday June 20 at the National Palace.

During the occasion, he appreciated the ambassador for her efforts in further improving the strategic relationship of Germany and Ethiopia.

He said there is strong desire on the part of the two countries to further strengthen bilateral relations.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2250:ethio-german-economic-relations-growing-says-ambassador-cyrus&Itemid=260

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Uganda, Ethiopia to remain leaders in East African coffee sector

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Uganda and Ethiopia will remain the pre-eminent coffee exporters in East Africa over the next decade, according to foodanddrinkinsight.

We highlight Tanzania as the country best-placed for coffee production growth in the region, though government initiatives will boost production across the region.

Aside from Ethiopia, East African coffee producers have seen either stagnation or outright declines over the last 20 years.

Production in Uganda and Kenya peaked in the late 1990s, while output in Tanzania failed to sustain a level above 1mn bags for at least two consecutive years.

In contrast, Ethiopia has significantly increased production since the early 2000s, raising output by more than 125% between 2000/01 and 2012/13 to 6.3mn bags.

Ethiopia and Kenya produce arabica coffee almost exclusively, while Uganda predominantly focuses on robusta production. Tanzania farms both crops.

Though East Africa is one of the world’s largest producers of arabica coffee beans, with total production of around 17mn bags, it remains well behind Brazil, which produces between 35mn and 40mn bags in any given year.

The main reason behind the recent stagnation in Ugandan, Kenyan and Tanzanian coffee production is falling or stagnant yields. Both Kenya and Tanzania have suffered from declining yields while area harvested has remained largely static.

Uganda, on the other hand, has seen volatility in its yields, which have averaged around the 6,500 hectogram per hectare (hg/ha) level for the last 50 years.
Tellingly, Ethiopia has also seen yields fall over the last 20 years and has only boosted output by devoting a significantly greater area to coffee production.

http://www.waltainfo.com/index.php/explore/13862-uganda-ethiopia-to-remain-leaders-in-east-african-coffee-sector-july-2014

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Int’l Agriculture Promoting Exhibition Opens

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A five-day Specialized International Exhibition in Agriculture and Food (AGRIFEX) opened here on Thursday June 19, 2014 at the Addis Ababa Exhibition Centre.

During the opening of the exhibition, State Minister of Agriculture Dr. Gebregziabher Gebreyohannes said the aim of such kinds of exhibitions is to create opportunity for investors who engage in the agro-processing with a view to connecting manufacturers with beneficiaries in a short period.

The Government of Ethiopia encourages the private sector to engage in agro-processing which boosts the economic growth of the country as agriculture is the backbone of economy.
Meanwhile, Fabio Santoni, delegation leader of the eight Italian companies which took part in the exhibition, told Ethiopian News Agency that Italian companies are ready to transfer their knowledge in agro-business to Ethiopians in order to help rural development.
He said the aim of the exhibition is not to sell equipment but assist in technology transfer, training and management capacity so as to enable Ethiopian agro-business enterprises become competitive in the global export market.
A total of 76 companies, including 36 foreign agro-business companies from India, Namibia, Egypt and Sudan, are taking part in the 7th Specialized International Exhibition in Agriculture and Food Exhibition organized by the Addis Ababa Chambers of Commerce and Sectoral Associations.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2245:intl-agriculture-promoting-exhibition-opens&Itemid=260

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Ethiopia and Israel to Strengthen Ties

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Ethiopia and Israel agreed to further strengthen their ties through economic, social and security cooperation.

After holding talk with the Israeli Foreign Minister, Ethiopia’s Foreign Minister, Dr. Tedros Adhanom, told journalists the visit of Avigdor Liberman, Israel’s Foreign Minister, with 50 business tycoons will open a new chapter in the bilateral economic cooperation of the two countries.

Tedros furthered during the discussion he learned Israeli investors are keen to invest in Ethiopia. He added, as a means to further streghten the two countries relation, they have discussed to open Ethiopian Jewish Community Heritage Museum in Gonder and Shire.

In addition to these, Tedros disclosed he has also discussed with his Israeli counterpart on security issues at national and regional levels to fight terrorism.

Liberman on his part noted the two nations will further work on economic, social and security issues. He furthered Israeli business tycoons are keen to invest in Ethiopia and use the conducive investment climate.

According to Liberman the business delegation from the Israel Export Institute are keen to identify investment and business opportunity in Ethiopia and establish mutually beneficial business relationship.

The business delegates also had business to business summit with their Ethiopian counterparts and discussed areas of investment where they can create joint ventures.

Ethiopian Chamber of Commerce and Sectoral Associations President, Solomon Afework, revealed the Israeli business delegates are involved in agriculture and water technology; energy and mining; life science; information technology; mining industries; homeland security; infrastructure industries; consultancy and aviation.

http://www.2merkato.com/news/alerts/3054-ethiopia-and-israel-to-strengthen-ties

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Over 100 SMEs participating at Omo Kuraz sugar project

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Some 108 small and micros enterprises (SMEs) with a total of 1,100 members are taking part at the Omo Kuraz sugar development project, public mobilization office of the project said.

Omo Kuraz sugar development project is being implemented in the Southern Nations, Nationalities and Peoples (SNNP) Regional State by Sugar Corporation.

The project comprises the construction of five sugar factories, sugar cane plantations, housing units, and roads.

Some 108 small and micros enterprises consisting of 1,100 members are participating at the project, small and micro enterprises jobs creation team leader at the office, Tesfaye Jemu, told WIC.

Construction, manufacturing and service sectors are the areas where members of the enterprises are currently engaged in, he said.

As a result of the launch of the project, each enterprise managed to save up to 500,000 birr.

Sugar Corporation is working in partnership with the (SNNP) Regional State to build the capacity and increase the participation of the enterprise in the project.

According to Tesfaye, residents around the project site are getting safe drinking water, electricity and road facilities, which were not present in the past.

http://www.waltainfo.com/index.php/editors-pick/13845-over-100-smes-participating-at-omo-kuraz-sugar-project

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Ethiopia and Djibouti Committed to Strengthen Ties

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During a bilateral talk between Ethiopia and Djibouti on Thursday, June 19, 2014, representatives of the countries have announced they are committed boost their bilateral relations. The bilateral relation is said to enhance the socio- economic benefits the peoples of both countries will get.

Solomon Abebe, Foreign Ministry African Affairs Director General, said the relation of the two countries is remarkable and also noted there is an increase in people to people integration.

Commenting on the meeting Solomon said, it was aimed at evaluating the implementation of goals and strategic plans adopted by the 12th Joint Ministerial meeting held in Addis Ababa.

According to the Director General the two nations have reached on a consensus to outline action plans in order to address common problems in the areas of security, education and health.

Djibouti’s Director for Bilateral Relation, Yachin Houssein, on his part appreciated the two countries relationship to be strong in every aspect but noted they should work on exchanging information on epidemic and addressing human trafficking.

Houssein furthered the two countries have tight bilateral relations in economic integration, political and social levels. He added this is expected to be further strengthened.

Commenting on the meeting Houssein said, the meeting will lay down major strategic guideline for the 13th Joint Ministerial meeting.

http://www.2merkato.com/news/alerts/3056-ethiopia-and-djibouti-committed-to-strengthen-ties

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Heineken to Open New Brewery in Ethiopia

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Africa One of World’s Fastest-Growing Beer Markets

By Bart Koster

AMSTERDAM— Heineken HEINY -0.14% Heineken N.V. ADS U.S.: OTC ^$35.90 -0.05 -0.14% June 20, 2014 11:28 am Volume (Delayed 15m) : 16,019 P/E Ratio 22.77 Market Cap $41.51 Billion Dividend Yield 2.04% Rev. per Employee $315,612 06/20/14 Heineken’s Ethiopia Plans High… 06/20/14 Heineken to Open New Brewery i… 05/11/14 What Is the Outlook for Twitte… More quote details and news » HEINY in Your Value Your Change Short position NV will next month open a new brewery in Addis Ababa, Ethiopia, in what is the Dutch brewer’s latest push to expand in Africa, one of the world’s fastest-growing beer markets.

The brewery in Kilinto, on the outskirts of Addis Ababa, will be Heineken’s third plant in the East African country and will have an annual capacity of 1.5 million hectoliters.

The facility, which will produce local brands such as Bedele and Harar and possibly Heineken’s premium lager beer in the future, is meant to bolster the brewer’s footprint in the Ethiopian capital, said Siep Hiemstra, the president of Heineken’s operations in Africa and the Middle East, in an interview.

“We couldn’t serve the Addis Ababa region from our existing two breweries,” he said. “So this will strengthen our position in the country.”

Heineken’s expansion in Ethiopia, Africa’s second-most populous country, highlights the growing importance of the continent for the world’s top brewers.

Africa is one of the world’s fastest-growing beer markets thanks to its rosy economic prospects and emerging middle class. This has made the region a battleground for global brewers like Heineken, SABMiller SAB.LN +0.18% SABMiller PLC U.K.: London ^GBp3401.00 +6.00 +0.18% June 20, 2014 4:29 pm Volume : 4.06M P/E Ratio 0.26 Market Cap GBp54.56 Billion Dividend Yield 2.80% Rev. per Employee GBp199,383 06/10/14 Here Are Brewers’ Dream World … 05/22/14 Treasury Wine Rejects KKR Offe… 05/22/14 Africa, Latin America Pep Up S… More quote details and news » SAB.LN in Your Value Your Change Short position PLC and Diageo DGE.LN +0.05% Diageo PLC U.K.: London ^GBp1854.00 +1.00 +0.05% June 20, 2014 4:29 pm Volume : 3.00M P/E Ratio 0.18 Market Cap GBp46.54 Billion Dividend Yield 2.13% Rev. per Employee GBp398,662 06/20/14 Heineken to Open New Brewery i… 06/08/14 His Nose Is the Most Valuable … 06/04/14 Diageo Turns to the Web in Chi… More quote details and news » DGE.LN in Your Value Your Change Short position PLC, as they seek to counter a slowdown in mature markets in Europe and North America.

“Competition is intensifying and that sharpens the game,” Mr. Hiemstra said, referring to Heineken’s main competitors.

Heineken traditionally has a strong position in Africa, having opened its first brewery in Congo in 1923. The Dutch brewer currently has leading market positions in more than a dozen African countries, including Nigeria, its second-largest market after Mexico. It employs around 15,000 people in Africa.

In 2013, Heineken reported revenue of €3.07 billion ($4.18 billion) in the Africa and the Middle East region, which led to an operating profit of €665 million ($905 million), about 21% of the group total.

“Margins in this region are 1.5 times higher than the Heineken average,” Mr. Hiemstra said.

Mr. Hiemstra said Heineken is looking to further capitalize on Africa’s growth prospects through acquisitions and joint ventures. The primary focus, however, is to grow organically, for example, by building new breweries like the one in Addis Ababa, he added.

Mr. Hiemstra, a Heineken veteran who joined the brewer in 1978, said Heineken aims to use as much local resources in Africa as possible. By 2020, the company targets that 60% of the raw materials used to produce beer, like barley and cassava, will be sourced from local farmers. In 2013, the company used 48% from local sourcing.

“Through investments in local workers and local resources we create goodwill with national and regional authorities,” Mr. Hiemstra said. “It shows that we’re not only here to make profits, but that we also want to improve the local economy and social conditions.”

http://online.wsj.com/articles/heineken-to-open-new-brewery-in-ethiopia-1403276971?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702303850204579636232302826254.html

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Public Enterprises and Labour Associations Signed Agreement

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Government public enterprises signed an agreement with their respective labour associations a deal to implement Industrial Development Strategy (IDS) on Thursday, June 19, 2014.

During the occasion Dr. Zerihun Kebede, State Minister, noted the implementing IDS is not beneficial only for employers and the employees yet to the government too.

Zerihun added “The common and individual interest of the major actors (government, employers and employees) are the springboard of cooperation and conflict. Understanding the interests of the three parties is of paramount importance in the process of ensuring industrial peace. Thus their needs have to be treated separately”.

In related news the Ministry of Labour and Social Affairs reminded dialogue plays a pivotal role in boosting productivity of organizations and cultivating positive relations among employers and workers. Commenting on this the State Minister said social dialogue is a scientific method being used in the developed world to settle disagreement between employers and workers.

Zerihun also said in order to have uninterrupted production, minimize industrial dispute and boost workers moral one needs to ensure harmonious industrial relations. Commenting on this he said dialogue is a better way to achieve harmonious relations than rules and regulations.

Fekadu Gebru, an official from the Ministry, made a presentation in which he affirmed the stance of the State Minister. By his presentation entitled, Social Dialogue as a Toll for Industrial Peace, he said social dialogue is the key to creating conducive working environment that accommodates the interest of both employers and workers.

Fekadu added in order to achieve industrial peace there needs to be a reconcile in the needs of the employers and workers, better productivity and better payment respectively.

George Okutho, Country Office Director for Ethiopia and Somalia ILO, also said improving workplace cooperation between employers and workers for the primary objectives of achieving higher productivity and competitiveness should be collective objective for this year and years to come.

Okutho further noted his organization will continue to help Ethiopia in it’s capacity building needs. Nonetheless, he continued, progressively there should be a shift from ad hoc actions.

http://www.2merkato.com/news/alerts/3057-ethiopia-public-enterprises-and-their-labour-associations-signed-agreement

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Dr Maximilian Martin, exclusive for Addis Standard

Ethiopia is part of a new set of high-opportunity countries with exceptional potential for modernization, the “EMICs” (Ethiopia, Myanmar, Iran, and Colombia). All are high-stakes countries with a history of expansion and empire, conflict, a considerable proportion of young and educated job seekers, high potential for growth and turnaround, strong foreign direct investment (FDI) and trade promotion strategies, and broad regional importance.Ethiopia’s success in modernization could have far-reaching positive geostrategic implications and further synergistic effects with development efforts in the Horn of Africa, and impact investors can contribute to make this preferred future happen.

With double-digit growth between 2004 and 2010, averaging 8.7 percent annually over the past five years mainly thanks to the expansion of agriculture and services, Ethiopia has recorded impressive economic growth rates and emerged as the “African Tiger.”Given the country’s geostrategic importance, its largely untapped reserves of coal, gold, oil, and gas, inherent richness in renewable resources, immense potential for agricultural production, a 93-million population with a young labor force, Ethiopia’s ambition to become a middle-income economy by 2025 is in principle achievable.

The country is thus pursuing an ambitious Growth and Transformation Plan that has the purpose of poverty eradication, and has started laying the corresponding building blocks, in particular the physical and institutional infrastructure to transform the economy and address the low levels of human development. This is also needed: Ethiopia’s ranking in the World Banks’ Trade Logistics Index has slipped from 104^th in 2007 to 141^st in 2012; 67 percent of the population lacks access to electricity; 61 percent of the population is illiterate and 37 percent undernourished, reducing the workforce by 8 percent.

Most of the economic growth of the country in the past decade has been driven by ‘big push’ public investment though, and the current opportunity for modernization can only be seized if the private sector and capital markets are developed in ways that manage to attract capital and drive wider positive impact for the country.

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Transitioning from public to private funding is needed in other parts of the world as well

While the specifics differ, Ethiopia is not alone in facing the challenge how to best fund and graduate from public investment. In several G7 countries, for example, a study by Accenture and Oxford Economics projected a public services expenditure gap between expected demand for services and the ability to pay through the year 2025. The results were startling: for Canada, the gap was USD 90 billion; France, USD 100 billion; Germany, USD 80 billion; Italy, USD 30 billion; the UK, USD 170 billion; and the US, USD 940 billion. Private capital will be critical to addressing this emerging gap, and at the level of the G7, active steps are being taken to engage capital intentionally investing for both social impact and financial return.

The amounts are smaller, but capital is needed to deliver on the country’s middle-income ambitions in Ethiopia as well. One of sub-Saharan Africa’s fastest growing non-petroleum based economies over the past decade the country has one of the world’s lowest rates of GDP growth to foreign direct investment (FDI). FDI inflows to Ethiopia have kept steadily increasing, responding to long-term growth opportunities in sectors such as agriculture, infrastructure, consumer goods, manufacturing, or oil and gas.Between 2005 and 2011, FDI in Ethiopia more than doubled to USD 1.2 billion, mostly originating in India, China, Europe, the Middle East and the US, including the Ethiopian diaspora.

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Does it make sense to welcome impact investment?

For the G7, the so-called market for social impact investments—defined as investments made with the intention to generate measurable social and environmental impact alongside a financial return—holds great promise as a tool to grow the economy and fund the provision of public goods. The practice of impact investing has grown into a USD 42 billion market since the inception of the foundational term “impact investment” in 2007—of which 70 percent are currently invested in emerging markets. The market is estimated to advance to USD 400-1000 billion by 2020. At a time when the reputation of mainstream finance has been called into question around the world in the aftermath of the global financial crisis, impact investing could provide a major opportunity to demonstrate a new role for finance and financial innovation to enable sustainable growth and the stewardship of society’s assets in the twenty-first century.

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The fundamental impact case is sound

For Ethiopia, the question is, how can impact investing help removing the roadblocks on the way to becoming a middle income country. In terms of fundamentals, the country offers exciting opportunities for impact investors to create economic as well as social value. Its economy still dominated by agriculture, the country is looking to diversify and will need to raise the added value on its main exports while at the same time improving the performance of its transport and logistics system, as well as finding a way to further modernize and expand the industrial sector.

To locate the capital needed to develop the country, Ethiopia has been generally creating a more investment friendly environment and is opening up some sectors for investors, including agriculture and horticulture and the textiles and garment industry. The fruit of several years of efforts, with increasing investments in to the industry, the garment and textile industry is now gradually emerging as a new source of growth. For example, Swedish multinational retail-clothing firm H&M and British retailer Tesco are opening sourcing offices. Recently, the India-based Shri Vallabh Pittie (SVP) Group has started setting up a USD 550 million spinning mill in Amhara and that could employ up to 13,000 Ethiopians, targeting exports to Germany, Italy, Sweden, Turkey and the United States.

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There is work ahead on improving the investment climate

Today, the overall Ethiopian investment climate is mainly limited by three bottlenecks: governmental restrictions, a fairly undeveloped banking sector and macroeconomic instability. As the World Bank and the International Monetary Fund (IMF) have recently commented on the role of the industry in Ethiopia, the country would need to adjust policies to expand the private sector in order to meet the goal of reaching middle-income status by 2025.Due to declining scores for investor protection, taxation, contract enforcement, and resolution of insolvency, the World Bank’s Doing Business report for 2013 ranked Ethiopia at 127 out of 185 countries. The process for receiving business licensing has been described as “labyrinthine” by the Economist and a potential bane for investors. While bureaucratic corruption is much less of an issue compared to many of Ethiopia’s neighbours in sub-Saharan Africa, and the regulatory system is generally fair, structural inefficiencies, state monopolies and oligopolistic wholesale sectors need to be tackled to raise foreign investment. As for the banking sector, liquidity issues have become apparent as debt sales are highly regulated and high levels of collateral are required on all loans, thus limiting access to capital for small and middle enterprises.

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Several pathways to driving impact could complement each other

At the G7 level, there is consensus that different groups of investors play a role in the emerging impact investing market, ranging from philanthropic investors such as foundations, angel and venture stage investors, private and institutional investors, financial services institutions, and—importantly—government, which can provide a guiding hand. Next to large-scale projects such as the two major hydro power investments, or capital intensive projects such as the development of a high speed train to facilitate import and export, impact investors with their longer-term investment outlook and desire to achieve both financial and social returns have the potential to play a benign role in the investment landscape. The realities of the small and medium enterprise and social business landscape in Ethiopia matter though. Besides Oliberté, which has recently opened its own ethically responsible textile and garment factory in Addis Ababa, there are still few examples of impact investments and track record is limited. Impact investors moreover need to come to terms with the perception that social enterprises present a trade-off between impact and financial sustainability.

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The endgame is inclusive growth

Next to agriculture—accounting for nearly 50 percent of GDP, 85 percent of employment and most of the export earnings—, helping ensure that social and environmental performance in the emerging textile and garment industry will aim higher than in sourcing hotspots such as Bangladesh will be a key theatre to assess real progress. As Ethiopia transitions from a largely public to a more private investment strategy, government can play an important role in enabling and stimulating the impact investment market. Just like in other markets, this can take many forms, including government co-investing or sharing risk with private investors, creating investor requirements for impact investing, or even making impact investments directly in enterprises or intermediary funds. In addition, government can leverage its own procedures and expenditures to drive market development, for example through internal procurement and investment policies, or by providing resources to encourage the development and investment readiness of the social enterprise sector. If we are serious about inclusive growth, we need to use all pathways—it’s now time to make impact investible in Ethiopia.

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Maximilian Martin, Ph.D. is the founder and global managing director of Impact Economy, an impact investment and strategy firm based in Lausanne, Switzerland, with overseas operations in North and South America out of New York and Buenos Aires, working with professional investors and companies. Impact Economy provided the report Status of the Social Impact Market: A Primer, which was prepared to provide a shared baseline for the participants of the inaugural 2013 G8 Social Impact Investment Forum and to anchor members’ work on new market-building efforts for social impact investing.

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Editor’s Note: Identified by Dr Martin, the EMICs were unveiled at the fourth edition of the Impact Economy Symposium & Retreat in Switzerland on June 13-15, 2014 where a group of key influencers, thought leaders, and practitioners from the worlds of investment, business, government, and philanthropy explored the most effective solutions, innovations, and opportunities that have surfaced in the promotion of impact.In this exclusive Addis Standard series, Impact Economy’s Dr Maximilian Martin covers content covered at the conference. Addis Standard is one of the seven global official media partners of the symposium.

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Sourced here:  http://addisstandard.com/making-impact-investible-key-to-removing-roadblocks-on-the-way-to-middle-income/

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Agribusiness: Africa’s Tool to Overcome Unemployment and Poverty

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VENTURES AFRICA – While African nation such as Nigeria, Angola, Libya and Egypt have relied heavily on revenue accruing from oil sale, a key hidden treasure greatly untapped by the African populace is agriculture. It is perhaps the oldest and one of the most profitable economic sectors in the world – capable of feeding billions of people around the world, yet Africa has failed to harness the potentials abound on the continent.

The continent is said to hold 60 percent of the world’s arable land, implying that if properly exploited, it could become the world’s food basket. According to the UN Food and Agricultural Organisation (FAO), agricultural growth is 11 times more effective at reducing poverty than growth in other sectors like mining and utilities.

Africa has the opportunity to be the world supplier of organically grown crops and the market for agriculture exists with the present burgeoning population. With its vast amount of arable land and favourable weather conditions, Africa, half of whose population is under 25 is expected to help half hunger by the year 2025.

However despite the potentials this industry has to offer, it is still one of the most neglected and the number of young people venturing into agribusiness remains minimal.

Ironically, the African Economic Outlook reported that 40 million young people in Africa are unemployed while about 53 million of 200 million youths between the ages of 15 and 24 are in unstable employment. The report also noted that while 18 million of them are looking for a job, 22 million have already given up.

In considering agriculture as a profession; most youths, especially the educated ones regard agriculture as a dirty and boring job that cannot meet all their material needs. The very few educated agriculturist available have not really been actively involved in the practical aspect of the job – that is going into the field. Most of them are often in the business as researchers or consultants. They have been more of “book agriculturist” than “practicing agriculturist.”

To cap it all, most African countries till now are incapable of feeding themselves and many people continue to die of hunger while many children especially in war-ridden parts of Africa remain staunchly mal-nourished.

Just last week, it was reported that many desperate South Sudan residents who are trying to escape the fighting across the country are resorting to eating grass and roots to survive, because food is in such short supply. In fact one refugee family told U.N. High Commissioner for Refugees António Guterres that they had been eating roots – which must be boiled for days to remove poisons — because they have no other food.

It is to this end that African youths must venture into the path not often taken -Agriculture.

Not only should they see this as a means to provide them employment, but also as an avenue in helping to end the chains of hunger and poverty that remains prevalent in most of their countries.

More young people in the business of farming can also help to create a local market that could spur the export of agricultural produce to other countries like China who has become a major trader in Africa.

José Graziano da Silva Director-General of the UN Food and Agricultural Organisation (FAO) buttressed this during the agency’s 28th Regional Conference for Africa, in Tunis last month saying “Agriculture, rural development and youth can help improve nutritional and economic well-being in the years to come.”

Therefore, Unless the younger generation ventures more into agribusiness, Africa may not be able to meet up with the demand of feeding its growing population and achieving food security by the year 2025 as stipulated in the “Africa’s Renewed Initiative for Stunting Elimination” (ARISE 2025).

Already some African youths are rising up to the challenge and even celebrities from the region are lending their voice to support this cause.

Recently Nigerian Artiste, Dapo Oyebanjo, a.k.a D’banj, through his organisation, ONE.org launched one of the continent’s biggest musical collaborations ever, ‘Cocoa na Chocolate’, to boost investments in agriculture.

However, it is important to note that agripreneurs like other entrepreneurs need opportunity to start a viable business.

Governments could help by investing in dedicated training centers where young people can get training and education to hone their farming skills. They can also help by providing infrastructural facilities (good roads, electricity) for agribusiness expansion, offering affordable credit services, subdising farm inputs and educating young farmers on post harvest management and marketing.

African governments should also adopt better agricultural policies by scaling up public investments in agriculture and honor the MAPUTO 2003 Agreement which mandates them to commit 10 percent of national budgets on effective agriculture investments.

With these in place, financial institutions will have the more confidence to give out loans to help young farmers in building their business and consequently this will boost agribusiness, increase productivity and profits, create more jobs, and help lift millions of Africans out of extreme poverty.

http://www.ventures-africa.com/2014/06/agribusiness-africas-tool-to-overcome-unemployment-and-poverty/

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Africa Bamboo center to be established in Ethiopia

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                                                                                                                         Sileshi Getahu

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- Bamboo resource in Benishangul Gumuz under threat

Ethiopia, home to 67 percent of the overall bamboo and rattan forest in Africa, is to become home to the continent’s first bamboo and rattan research and demonstration center with the aim of promoting the resource, its various value addition options and untapped economic value across Africa.

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ENAPHA to Establish a Medical Zone in Addis Ababa

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Addis Ababa, Ethiopia - Ethiopian North American Health Professionals Association (ENAHPA) will establish a medical zone in Addis Ababa, Ministry of Foreign Affairs disclosed.

Diaspora Engagement Affairs Directorate-General with the Ministry, Feisel Aliyi, told ENA that the planned medical zone will help Addis Ababa become center of medical tourism.

The Directorate-General said ENAHPA and Intergovernmental Authority on Development (IGAD) have signed agreement that will enable the medical zone to be East Africa’s center of excellence in cancer treatment and peoples of IGAD member states to benefit from the center.

He pointed out that cancer patients from East African countries, including Ethiopia, have been travelling to European countries and Bangkok to get better medical treatment expending huge cost. The establishment of the center will stop the travel and save hard currency, Feisel said, further noting that the centre will also provide advanced medical treatment that is not currently available in the Region.

According to the Director-General, the center will attract the attention of many African countries since it would be using advanced medical technology and highly qualified professionals.

The establishment of the center is exemplary to the Ethiopian Diaspora, and was fully supported by the government as it is in harmony with the Diaspora Policy.

ENAHPA has over 300 Ethiopian health professionals living in North America and Europe.

http://www.ethiosports.com/2014/06/21/enapha-to-establish-a-medical-zone-in-addis-ababa/

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Import mogul to turn manufacturer

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The sister company of AL-SAM Plc, Repi Soap and Detergent SC and Wilmar International Limited (Wilmar), a leading Singapore agribusiness group, have signed a joint investment agreement for the upgrading of an existing manufacturing facility of Repi, and the building of a new integrated manufacturing complex in the Sebeta town of the Oromia Regional State.

Sabir Argaw, Board Chairman of AL-SAM Group, told The Reporter that the project would be finalized within the coming 14 months and that after the completion of the expansion work, Repi Soap and Detergent Factory, presently located in the Kolfe Keranio Sub City of Addis Ababa, would be transferred to a new facility that will be erected in Sebeta town, located in the Special Zone of the Oromia Regional State, on a 100 hectare plot of land.

Based on the agreement, both Repi and Wilmar will have a 50 percent stake in the USD 100 million expansion project. And, according to Sabir, forty percent of the project cost will be covered by initial investment contribution from the two companies (both financial and in kind) while the rest is expected to come from a bank loan.

The new manufacturing complex will include the production of an edible oil refinery, plants for specialty fats, soft oils, soaps, detergents and a packaging plant, as well as a facility for sesame seed processing.

Sabir also said that when the project is finalized and starts producing at its full capacity, it will be able to satisfy local demand for palm oil.

“Currently, Repi Soap and Detergent Share Company produces 21 thousand tons of detergents, and the expansion project is expected to boost its production capacity to 91 thousand tons of detergent annually,” Sabir told The Reporter.

Repi Soap and detergent SC, locally known as Repi Soap Factory, was established in 1974 under the name Bianil Ethiopia SC by foreign investors of Swiss and Greek origin aiming to produce and distribute powder detergent to the East African market.

Less than a year after its formation, however, Repi was nationalized by the government and was managed under the branch of the National Chemical Corporation and was then re-established as a public enterprise in 1992 by the Council of Ministers and was recapitalized by birr 1,525,000.00.

Later, following an invitation by the government to form a Joint Venture Partnership in Repi Soap Factory, LENA Plc clinched the deal to reestablish Repi as Repi Soap and Detergent Share Company in 2007/08.

The joint venture arrangement lasted one year followed by a full takeover of the share company by LENA Plc after buying out the Privatization and Public Enterprises Supervising Agency of the remaining 49 percent share previously held by the Agency (government). The company currently employs 530 permanent and temporary employees.

Wilmar International Limited, founded in 1991 and headquartered in Singapore, is an agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalization on the Singapore Stock Exchange with over 450 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries.

The Group is backed by a multinational workforce of about 90,000 people. It already has a presence in 11 countries across Africa; this joint investment agreement with AL-SAM group marks its first operation in Ethiopia.

This makes Sabir the latest import mogul to turn to the manufacturing sector after a much publicized raw between the government and some members of the business community who are in the trade and services sector and are allegedly not showing interest to invest in manufacturing. The rift between the service giving private sector and the government widened after the imposition of the infamous price cap move and public criticism of sector players by the late Prime Minister Meles Zenawi. Much recently, Minister of Industry, Ahmed Abitew, also called up members of the private sector to invest in manufacturing after the sector’s export ambitions failed to materialize for the third consecutive year of the Growth and Transformation Plan (GTP).

The Minister’s statement was also reiterated by Prime Minister Hailemariam Desalegn underscoring the fact that the manufacturing sector’s targets are not going to be met without strong involvements from the private sector. But, strong profit incentives in trade and services sector appeared to be major deterrent to date.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2163-import-mogul-to-turn-manufacturer

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IWMI urges Ethiopia to launch effective water management to boost agriculture

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Simon Langan (Ph.D.)

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The International Water Management Institute (IWMI) on Wednesday urged the Ethiopian government to release an effective mechanism of water management during its annual meeting held at the International Livestock Research Institute (ILRI).

The meeting identified key constraints and opportunities to improve access to small-scale irrigation technologies.

For five years now, IWMI has been preparing its highly valued programs entitled: “Feed the Future Innovation for Small-Scale Irrigation in Ethiopia, Ghana and Tanzania.”  Hence, the first annual meeting, Feed the Future Innovation Lab for Small-Scale Irrigation (FtFILSSI) was held, bringing together government officials, partners, donors and representatives from academia and research institutions. “This annual meeting will produce setbacks and recommendable outputs in the livestock and irrigation value chains for Ethiopian smallholders,” Simon Langan (Ph.D.), senior researcher and head of office for the Nile Basin and East Africa, said.

Evaluating impacts, trade-offs and synergies of small-scale irrigation technologies and practices, initiating field interventions at selected sites in Ethiopia, Ghana, and Tanzania, and conducting and analyzing community dialogue were among the key areas that the meeting was involved in towards the roadmap of implementation. “As a team, we can bring about a dynamic change so that all such concerns would become easy to get through,” Sileshi Getahun, state minister of agriculture, said while lauding the effort undertaken by the stakeholders.

The USAID funded project led by Borlaug Institute for International Agriculture/Texas A&M University in partnership with IWMI, ILRI and North Carolina A&T University will further carry out capacity development and trainings for farmers, development agents (DAs) and advisors to support field interventions as well. Participants stressed that East Africa desperately needs to train more water management professionals while they thoroughly outlined that Ethiopia’s agricultural water challenge is less about water scarcity but more about the management of water for effective use.

Ethiopia, is often called the water tower of Africa, due to its massive resources of streams, rivers and ponds along with big bodies of water and intensive rainfall. Nevertheless, its agriculture reveals an ironic fact as it still enormously depends on rainfall. Only 15-20 percent of its agriculture relies on irrigation, according to experts. And this project would intensify the country’s effort in an attempt to scale its water management.

Since 2003 the IWMI has closely worked with the other nine Consultative Groups of the International Agricultural Research (CGIAR) to help out Ethiopia’s ineffective water resource management in line with the agendas of the ministry of water and energy and the ministry of agriculture. Its program on livestock and irrigation value chains for Ethiopian smallholders aims to benefit more than 200,000 households and also improves skills of over 5,000 public servants. Moreover, it supported six PhD and 103 M.S. students between 2005 and 2013.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2148-iwmi-urges-ethiopia-to-launch-effective-water-management-to-boost-agriculture

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Some $ 2.6 bln revenue collected from export

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The Ministry of Trade announced that Ethiopia earned 2.6 billion dollar revenue from export of goods in the past 10 months.
The revenue is mainly collected from export of live animal, fruits and vegetables, coffee, hides and skins, Khat, textile and garments.

According to Amakele, Yimam, Head of the Public Relations Directorate General, the current year’s performance has shown a 4.8 million dollar increase when compared to last Ethiopian fiscal year’s performance.
This year’s 10-month performance meets 64% of the target set for export.

The drop in coffee price and shortage of supply were the factors for low performance in export, Amakele said.

http://www.waltainfo.com/index.php/explore/13866-some–26-bln-revenue-collected-from-export-

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Ethiopia, Canada vow to strengthen relations

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A Canadian delegation headed by Philip Baker, director-general of Eastern and Southern Africa at the Canadian Ministry of Foreign Affairs, arrived in Ethiopia this week and discussed bilateral relations and regional issues with its Ethiopian counterpart.

The delegation expressed that Canada wants to maintain supporting the Ethiopian government to meet the Growth and Transformation Plan (GTP) and the Millennium Development Goals (MDGs).

On Thursday, in an event that discussed the Ethio-Canada Fourth Consultative Meeting, officials from the Ministry of Foreign Affairs updated the Canadian delegation members on the status of the GTP and the MDGs. Ethiopian officials noted that so-far performances were pretty high and vowed to succeed in meeting most of the targets set by both plans. The officials also discussed some gaps of the MDGs that they hoped Canada might fill.

Ambassador Taye Atske-Selassie, director-general for American Affairs at the Ministry of Foreign Affairs, commended the Canadian government and people for supporting Ethiopia in all sectors in an effort to lift it from poverty. He told reporters that the development cooperation provided by the Canadian government was “well integrated with the Growth and Transformation Plan.”

Ambassador Taye also expressed that Ethiopia is grateful for the critical and consistent support that the Canadian government handed over to Ethiopia. He also emphasized that the cooperation needs to be upgraded to a sustainable level in terms that could be reflected in transforming the relations to trade and investment.

Canada is Ethiopia’s third largest donor and Ethiopia is the second largest aid receiver of Canada. The bilateral relationship has existed for the last 50 years. Food security and sustainable economic growth are major areas of the cooperation between the two countries.

Amy Baker, Minister Counselor and head of development cooperation, on her part confirmed that Canadian government is content with the development success that is taking place in Ethiopia. After reporting evaluation of the support, she added that the cooperation was very successful and that Canada wants to continue its support in future plans including Post-2015 MDG.  It also promised to deliver any support to Ethiopia in efforts to meet its MDG targets.

“It is very important to see these development plans are going well and on track in Ethiopia. And Canada wants to note that it will continue its support in fulfilling any gaps to meet the targets your government set”, David Usher, Ambassador of Canada to Ethiopia, said.

“The relationship is strengthening. As you know Ethiopian Airlines’ flies to Canada three times a week. Many Canadians want to learn more about Ethiopia and Ethiopians want to visit Canada. We hope the business between the two countries will grow very soon. Both governments are working hard to do so.”

The delegation also expressed that some Canadian investors have keen interest in doing business in Ethiopia. Allana Potash is already involved in potash mining in the Danakil area, Afar Region. The Ambassador said many other Canadian companies are also working with Ethiopia’s Ministry of Water Irrigation and Energy.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2149-ethiopia-canada-vow-to-strengthen-relations

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New Market Research Report: Travel and Tourism in Ethiopia to 2018

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Fast Market Research recommends “Travel and Tourism in Ethiopia to 2018″ from Timetric, now available

Ethiopia’s travel and tourism sector is still in a growth phase, and is largely supported by infrastructure improvements. The number of domestic trips reached 8.1 million, while international trips reached 666,996 in 2013, the main source countries for which were China, the US, Nigeria, Sudan and Belgium. Over the forecast period (2014-2018), the sector is expected to record growth in the volume of inbound and outbound tourists as Ethiopian Airlines establishes new routes, increases flight capacity and launches airfare discounts.

Report Highlights

Ethiopian Airlines is a fundamental growth driver of tourism development in Ethiopia. The airline has taken various initiatives to increase tourist inflows by introducing several new international and domestic routes, and expanded its flight capacity. It also partnered with other airlines to create codeshare agreements, which have had a positive impact on tourist flows. The airline is urging Ethiopian tour operators and journalists to participate in international tourism expos, and in May 2014, Ethiopian Airlines reduced its inbound fares by 40% to encourage tourism.

Full Report Details at
- http://www.fastmr.com/prod/837624_travel_and_tourism_in_ethiopia_to_2018.aspx?afid=301

The Ethiopian government is planning to develop the tourism industry and created two new entities -the Tourism Transformation Council and the Ethiopian Tourism Organization – in March 2014 to aid this plan. This Tourism Transformation Council will develop the country’s key tourist destinations and take initiatives to create and implement tourism campaigns. It will also provide instruction to local government bodies to remove political obstructions currently impeding the development of the tourism sector. This is one of the strategies listed under the Growth and Transformation Plan (GTP), which aims to transform the country into one of the five leading tourist destinations in Africa by 2020.

Ethiopia is currently attempting to attract more tourists from India, and has taken initiatives to promote a tourism campaign: Come, Visit Ethiopia. Ethiopia has opened a cultural center in its embassy in New Delhi, and plans to introduce tourism boards in Mumbai. Ethiopia also participated in SATTE 2013 in January 2013, to attract more Indian tourists to its leisure and Meetings, incentives, conferences, and exhibitions (MICE) segments. Ethiopian Airlines currently operates flights from Delhi and Mumbai, and plans to commence flights from Ahmedabad, Chennai and Bangalore in the future.

In November 2013, Ethiopian Airlines expanded its route to fly four times a week to Niamey, Niger and launched four-times-a-week flights to Kano, Nigeria from May 2014. This new route will allow passengers to make connections to Cairo, Mumbai, Guangzhou, Dubai, Riyadh, Khartoum, Hong Kong, Jeddah, Beirut, Washington, DC, and Toronto. Ethiopian Airlines has also announced that it will commence daily flights to London from July 2014.

http://www.clickpress.com/releases/Detailed/703383005cp.shtml

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COMESA- Western Australia forms Working Group to Implement MoU

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COMESA and the Government of Western Australia have established a joint working group to spearhead the implementation of a Memorandum of Understanding (MoU) on the development of mineral and petroleum resources.

The MoU was signed in January this year in Lusaka by Western Australia Premier Mr. Colin Barnnet and COMESA Secretary General Sindiso Ngwenya.

The Joint Working Group (JWG) was established last month to provide a framework for cooperation covering mineral and petroleum resources, agriculture, vocational training and capacity building that are provided for in the MoU. COMESA representatives are Thierry Mutombo, McClay Kanyangarara, Stanley Mbagathi and Oliver Maponga (UNECA). Dr Tim Griffin, John Shute, Filippo Raggi, Diana Phang, Elliot Samson, and Virginia Simms represent WA.

In the JWG first meeting held recently, COMESA team expressed a preference for training in mining and mineral policy development and taxation and fiscal frameworks to be held by the end of 2014. In this regard COMESA will share with WA, the project documents on four proposed capacity building activities (policy, taxation and fiscal framework, linkages and mineral management) for possible collaborative delivery under the MoU and/or possible assistance with resource mobilization.

The COMESA industrialization policy places the minerals sector at the centre of strengthening linkages and value addition. Pursuant to this, it is developing a project to build the capacity of key players in the minerals sector in its Member States to be named: COMESA Human and Institutional Capacity Development in the Mineral Sector.

The proposed project will be implemented in all Member States of COMESA and will include COMESA-wide interventions as well as harmonized national level activities.

During the MoU signing, it was acknowledged that institutions that support mineral development in Africa are generally weak due to human skills deficiency and financial constraints and therefore inappropriate to effectively facilitate the role of minerals in development.

COMESA will establish national focal points for the implementation of the MoU on behalf of the JWG. Member States will be co-opted on a need basis, such as when activities are to be organised in their country.

It was proposed that Members States participate in the “Africa Down Under Conference” to take place in Perth in September 2014. This will offer them an opportunity to showcase their mineral potential. WA has offered to link COMESA with other potential sources of support for the proposed activities.

Western Australia is the largest State in Australia with one of the highest living standards in the world and a robust economy largely driven by extraction and processing of mineral and petroleum commodities.

http://www.comesa.int/index.php?option=com_content&view=article&id=1213:comesa-western-australia-form-working-group-to-implement-mou&catid=5:latest-news&Itemid=41

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Ethiopia, Israel to share intelligence information

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Tedros Adhanom (Ph.D.) with his Israeli counterpart Avigdor Lieberman at the Ministry of Foreign Affairs. Belaynesh Zevadia, Israeli ambassador to Ethiopia is seen in the middle

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- Agree to work on counter-terrorism 

Avigdor Lieberman, the foreign minister of Israel, paid a visit to Ethiopia Monday night to discuss and sign agreements on political and economic matters.

The foreign minister stressed the need for having strong counter-terrorism action reinforced in the Middle East and East Africa.

At a press conference held on Tuesday at the Ministry of Foreign Affairs (MoFA), Lieberman was joined by his Ethiopian counterpart, Tedros Adhanom (Ph.D.).  Both sides affirmed that they have discussed and agreed to share intelligence information. According to Lieberman, this is because of the escalating terrorism acts in the Middle East and East Africa. He specifically mentioned Al-Qaeda, Al-Shabaab, Hamas and Boko Haram for their intensifying terrorism acts and bombings. During the fall of the week, Al-Shabaab bombed Kenya and killed many innocents. Lieberman stated that such bombings and killings should be deterred in cooperative and collaborative work with nations, and Ethiopia has been the keen partner for Israel to lean on in the East African region.

Tedros on his part said that of the various agreements the two nations inked, sharing intelligence information was one of the bold issues on the table to work on together.  He said that apart from working on security concerns, Israeli investors should come in numbers. Tedros added that the economic ties between the two nations is low especially when considering historic relations Ethiopia had established with Israel. Lieberman dates the diplomatic relations to thousand years back to the eras of King Solomon or the eras of the temples. However, Lieberman reacted to the call of Tedros saying that big Israeli companies will come to Ethiopia to invest USD two billion.

Lieberman’s visit was accompanied by some 50 Israeli companies keen to do business in areas of aviation, agro processing, water technology and more. He attended the Ethio-Israel Business Forum. The two figures agreed to set up Jewish cultural museums in the northern part of Ethiopia, where Bete Israel, of Jewish communities, are big in number. Lieberman expressed gratitude for what Ethiopia has done for Jewish brothers here. He mentioned that there are some 100 thousand Ethiopian Jews residing in Israel. Currently, some Ethiopian Jews can be found in the Knesset-Israel senate and some like Ambassador Belaynesh Zevadia (Ethiopian born Israeli ambassador to Ethiopia) have become diplomats.

http://www.thereporterethiopia.com/index.php/news-headlines/item/2154-ethiopia-israel-to-share-intelligence-information

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Uganda Reserves $8 Billion in Rail Plans for Chinese Bidders

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By Fred Ojambo

 

A train passes by near Kampala. Photographer Michele Sibiloni/AFP/Getty Images

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Uganda plans to invite six Chinese companies next month to compete for as much as $8 billion worth of contracts to expand the country’s railway network and help improve trade routes with four bordering nations.

Uganda signed an agreement with the Chinese government giving companies from the Asian nation exclusive rights to lead the project, Ugandan Works Minister John Byabagambi said by phone yesterday from the capital, Kampala. He declined to identify the companies that will participate in the bidding.

“Bidding documents will be ready by July 10 and we are inviting only Chinese companies,” Byabagambi said. “We shall sign engineering, procurement and construction contracts with the winners.”

East African nations are boosting state spending, seeking private investment and borrowing on international markets to build transportation links that will reduce the cost of trade.

Kenya last year started building a railway from the port city of Mombasa to the capital, Nairobi, that will be extended to the Rwandan capital of Kigali, through Uganda. It will be complete by March 2018 and cost $13 billion, according to Byabagambi. Funding is being sourced from China and Russia.

Tanzanian President Jakaya Kikwete said in April that his government, along with Rwanda and Burundi’s, are looking for transaction advisers to secure financing for a $4.1 billion cross-border railway project. Kenya, Tanzania, Uganda, Rwanda and Burundi make up the East African Community trading bloc.

Border Routes

The first phase of Uganda’s planned railway construction covers 1,000 kilometers (621 miles), stretching from the country’s border with Kenya to Rwanda and a town near the border with the Democratic Republic of Congo, Byabagambi said. Work on an extension to the northern town of Gulu and onward to South Sudan will take place later, he said.

The new standard gauge railway will help speed up cargo shipments and carry heavier loads than the existing lines in the landlocked nation, said Byabagambi.

Uganda prefers awarding infrastructure-development projects to Chinese companies because they can be repaid with future revenue, including from oil sales, and through cash or “in-kind” payments, Kyetume Kasanga, a spokesman for Prime Minister Amama Mbabazi, said last year. Businesses from other parts of the world often require advance payment, he said.

The country aims to produce its first crude from deposits being developed by London-based Tullow Oil Plc (TLW), China’s Cnooc Ltd. (883) and Total SA (FP) based in France, on a commercial basis by 2017.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net

To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net Sarah McGregor, Ana Monteiro, Karl Maier

http://www.bloomberg.com/news/2014-06-18/uganda-reserves-8-billion-in-rail-projects-for-chinese-bidders.html

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Nigeria Signs Bi-Lateral Agreement With Ethiopia

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Nigerian and Ethiopian authorities have agreed to deepen relationship in the area of trade and investment, tourism and agriculture.

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Addressing a joint press conference on Wednesday at the forecourt of the President Villa in Abuja on Wednesday, President Goodluck Jonathan and Ethiopian President, Hailemariam Desalegn, also agreed to collaborate in the fight against terrorism.

The agreement was reached after a meeting the two leaders held following the two day working visit to Nigeria by the Ethiopian leader.

The two leaders commended the high level of visits among them and resolved to maintain this in order to promote and deepen mutual understanding and cooperation

The two leaders also talked about the insurgency and insecurity currently plaguing African countries and sought ways to resolve the problem and promote international peace and security.

The two African leaders condemned the lingering crisis in Somalia, South Sudan, Mali and the Central African Republic and resolved to remain committed to the efforts to find lasting solutions to them.

The Ethiopian leader has since left for his country.

http://www.channelstv.com/2014/06/25/nigeria-signs-bi-lateral-agreement-with-ethiopia/

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GDP Exemplary to Other Countries: Nigerian Delegation

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2275:agriculture-contribution-to-ethiopia’s-gdp-exemplary-to-other-countries-nigerian-delegation&Itemid=260

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Ethiopia Undertaking Preparation for Regional Integration

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2276:ethiopia-undertaking-preparation-for-regional-integration&Itemid=260

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Ethiopia becomes a growing hub for FDI in East Africa: UN Report

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The United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2014 said (June 24) Ethiopia had increasingly become a growing recipient of foreign capital flows and the most attractive destination of investors in the region in the 2013. Ethiopia received USD 953 million worth of Foreign Direct Investment (FDI) in 2013, the report indicated. According to the UNCTAD report subtitled ‘Investing in the Sustainable Development Goals’, Ethiopia’s notable progress in attracting FDI was a clear attestation of the Government’s right mix of industrial policies and strategies that created enabling factors for increasing capital flows into the country in the selected priority areas for investment. The report further indicated that the country’s industrial strategies played a crucial role in attracting foreign investors in manufacturing sector and bolstering the growth of FDI. Ethiopia used FDI to building Climate Resilient Green Economy, the report added, suggesting it should remain seized with the advancement of its investment landscape to catch up top FDI recipient countries. According to the report, both Ethiopia and Kenya had boosted the East African region’s FDI growth by 15 percent as a whole and generated USD 6.2billion.

http://www.mfa.gov.et/news/more.php?newsid=3260

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Arjo-Dedessa Sugar Factory nearly to complete

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The contribution of the agriculture sector for the country’s overall economic growth is exemplary to others African countries, a Nigerian Parliamentary delegation announced.

The visiting members of the agriculture affairs committee of the Nigerian parliament yesterday shared experiences with the Ethiopian counterpart on best agricultural practices in Ethiopia.

The two sides discussed on ways of further deepening relation among the two committees and agricultural research institutes of both countries.

The Ethiopian parliamentary committee briefed its Nigerian counterpart about major contributing factors for the agricultural increase over the past decade.

The implementation of the agriculture led economy policy of the country is one of the contributors for the growth, according to the Ethiopian Committee Chairperson, Mohamed Abdosa.

For his part, the Nigerian Committee Chairperson, Muniry Danngunde said the contribution of the agriculture sector for the overall economic growth is exemplary to Nigeria and other African countries.

He said that the MPs have got many best practices from the Ethiopian agricultural research institution during their visit to the institution.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2275:agriculture-contribution-to-ethiopia’s-gdp-exemplary-to-other-countries-nigerian-delegation&Itemid=260

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US Consultancy Earmarks Functionality Gaps at the Modjo Dry Port

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The report is one of four, which will ultimately seek to assist in the development of a National Logistics Strategy

http://addisfortune.net/articles/us-consultancy-earmarks-functionality-gaps-at-the-modjo-dry-port/

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India, US, Ethiopia Join Hands to Tackle Maternal Deaths

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An international meeting in Washington, co-hosted by India, US and Ethiopia in collaboration with UNICEF and Bill & Melinda Gates Foundation, entitled the ‘Acting on the Call: Ending Preventable Child and Maternal Deaths’ will be held on June 26, and is expected to unveil new efforts to save an unprecedented number of women and children by 2020 in 24 priority countries. The three countries have joined hands to address the global challenge of child and maternal deaths in particular in the third world countries. According to a press release from USAID, Union Health Minister, Dr Harsh Vardhan, World Bank President, Dr. Jim Young Kim and USAID Administrator Raj Shah will be among the global leaders to attend the meeting, adding that it is expected that bold reforms will be adopted to improve effectiveness and efficiency at the Agency. Furthermore, it disclosed that this forum will gather global health leaders from governments, faith-based organizations, civil societies and the private sector to review recent and significant accomplishments aimed at significantly reducing child and maternal deaths, and to plot a new course that will ensure progress continues. Moreover, USAID will award major public and private sector partnerships and announce a new USD 500 million award focused on child survival and maternal health, the media release said.

http://www.mfa.gov.et/news/more.php?newsid=3259

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Good governance, efficiency golden threads to speed up societal transformation

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Prime Minister Hailemariam noted that the promotion of good governance and efficiency were golden threads that would speed up the move towards the transformation of the society, lift over millions out of poverty and expedite national renewal and sustainable development.

Reiterating the significant contribution of civil servants as a staunch force in the advancement of development and transformation goals of the nation, he emphasized, the Government was wiling and committed to support Civil Servants so as to tackle their housing and transportation problems.

Speaking at the 8th annual Civil Service day on the 23 of June 2024, he announced that there would be salary increment for civil servants with the view to lessen their challenges.

in Addis Ababa in the presence of Prime Minister Hailemariam Desalegn, , high-level government officials from Federal and Regional governments as well as other officials from various government agencies.

The day was celebrated with the theme “We ensure rapid and sustainable development and good governance with an organized army of transforming civil servants.”During the celebration,

Coordinator of Good Governance Cluster with the Rank of Deputy Prime Minister and Minister of Civil Service, Aster Mamo, on her part said that the developmental activities of the country had shown notable progress in all fronts.

Coordinator of the Finance and Economic Cluster with a Rank of Deputy Prime Minister and Minister of Communications and Information Technology, Dr. Debretsion Gebre-Michael also noted that democracy, development and good governance were inextricable so that the major threat to the democratic developmental state was rent-seeking.

He underlined that the Government had been taking various measures and extending efforts to consolidate developmental politics as well as dislodge rent-seeking and its adverse consequences to the nation’s march towards a climate resilient green economy.

According to MoFA, in-depth discussions and deliberations had been made on the principles of good governance and developmental politics.

http://www.waltainfo.com/index.php/explore/13892-good-governance-efficiency-golden-threads-to-speed-up-societal-transformation-

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New mining rules will enforce transparency

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The Ministry of Mines will create a new law to force mining companies to become more transparent

The ministry recently became a candidate for Extractive Industries Transparency Initiative (EITI), a global coalition of governments, companies and civil society organizations working together to improve openness and accountable management of revenues from natural resources. Its goal is to mandatorily boost the transparency initiative for the companies.
Tolosa Shagi, Minister of Mines, said that the ministry is now working to table the new law for the parliament to ratification. For mining companies to join the sector they will have to abide by the new law.
“We have a plan to amend the mining proclamation as soon as possible, if a company does not wish to follow the  transparency initiative it means they have different values than us and we don’t want to deal with a company like that,” the minister said.
“Definitely the law will be ratified in the coming year,” he said.
He said that his ministry is also implementing the transparency initiative scheme on mining companies. “Currently, 35 international and local companies are included in this scheme,” he explained.
“We are now working to be a full member on the initiative that includes 44 countries. The inclusion under the initiative will benefit the country and the sector development, we are working hard to minimize the time before we become a full member at EITI and we hope to finish the process within a year,” he said.
Reputable companies that are free from corruption and illegal activities will be interested in investing in  the mining sector and the scheme will create trust between the developers, the public and as well the government. He said that the initiative will facilitate finance to enhance transparence, sustainable development and good governance in the sector.
Countries that joined the initiative have registered good change since they became a member of the EITI. According to the minister, at the current level Ethiopia has not suffered from the mining sector. “There are not that many companies involved in mining and most are in the exploration process but we have to prepare during the early stages to prevent illegal activity because the sector is now growing significantly,” Tolosa said.
EITI is an international organisation that has developed a standard assessing the levels of transparency around countries’ oil, gas and mineral resources. This standard is developed and overseen by a multi-stakeholder board, consisting of representatives from governments, extractive companies, civil society organisations, institutional investors and international organisations. The EITI Standard is implemented in 44 countries. It consists of a set of requirements that governments and companies have to adhere to in order to become recognized as ‘EITI Compliant’
EITI also assists in strengthening accountability and good governance, as well as promoting greater economic and political stability. This, in turn, can contribute to the prevention of conflict based around the oil, mining and gas sectors.
Experts said that Ethiopia’s membership in the EITI would help the country ensure transparency in the extractive industry.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4394:new-mining-rules-will-enforce-transparency-&catid=35:capital&Itemid=27

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Ethiopia among fastest growing countries, says World Bank report

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Ethiopia is projected to be among the fastest growing countries, underpinned by strong public investment in agriculture and infrastructure, says the 2014 Global Economic Prospect (GEP) report by the World Bank. Ethiopia’s GDP growth is forecasted  at 7.0 and 6.6 percent in 2015 and 2016 respectively.

According to the report, Sub-Saharan Africa’s GDP grew 4.7 percent in 2013, led by robust domestic demand, and is set to continue to rise. Despite emerging challenges, the medium-term outlook remains positive.
Supported by investment in the resource sector, public infrastructure, and agriculture, GDP growth is projected to remain stable at 4.7 percent in 2014 and to rise to 5.1 percent in 2015 and 2016. The outlook is sensitive to downside risks from lower commodity prices, tightening global financial conditions, and political instability.
Recent developments in the region include the widening of fiscal and current account deficits, the report says.
“Ambitious public investment programs, large increases in public wages, and rising transfers and subsidies, coupled with weak revenues, as a result of weak commodity prices, have contributed to the deterioration of fiscal balances in many countries,” it reads.
Despite the challenges that are emerging, the report suggests that the strengthening recovery in high-income countries promises well for export demand and investment flows, although weaker commodity prices and slower growth in emerging markets will moderate growth of Foreign Direct Investment (FDI) flows to the region to USD 32.5 billion in 2014, from USD 31.9 billion in 2013. “Nevertheless, this would support growth in many countries.”
It also states that at the sub-regional level, growth is expected to be strong in East Africa, increasingly supported by (FDI) flows into offshore natural gas resources in Tanzania, the onset of oil production in Uganda and Kenya, and agriculture in Ethiopia.
On the other hand, the report also points out some risks. The list includes; increased capital market volatility accompanying the tightening of global monetary conditions; and domestic risks from political tensions in the run-up to elections in Nigeria, security problems linked to conflicts in South Sudan and the Central African Republic, and higher inflation from extreme currency weaknesses and rising food prices.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4388:ethiopia-among-fastest-growing-countries-says-world-bank-report&catid=54:news&Itemid=27

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Ethiopia attracts FDI amounting to 953 million USD in 2013

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Ethiopia has attracted an unprecedented sum of Foreign Direct Investment (FDI) amounting to 953 million USD in 2013, a United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2014 indicated.

According to the report launched globally today under the title ‘Investing in the Sustainable Development Goals’, Ethiopia’s industrial strategy is attracting Asian capital to develop its manufacturing base.

In 2013, the Chinese Huajian Group opened its first factory for shoe production and announced plans to establish a two billion USD hub for light manufacturing.

Earlier the year, a joint venture between UAE’s Julphar and a local company, Medtech, inaugurated its first pharmaceutical manufacturing facility in Africa in Addis Ababa.

The report indicated that Julphar’s investment in the construction of the plant is estimated at around 8.5 million USD.

It also cited the 4 billion USD geothermal project signed between Ethiopia and Reykjavik Geothermal, an Icelandic company in late 2013.

The deal contributed to a 10-year high record of announced green-field FDI from developed countries in 2013.

Continental outlook

FDI flow to Africa continued rising to reach 57 billion USD in 2013 registering a 4% growth compared to the previous year driven by international and regional market-seeking and infrastructure investment, the report said.
Ethiopia’s strong performance aided the Eastern Africa region to record a 15% increase in FDI flow amounting to 6.2 billion USD.
However, the trends in FDI flows vary by sub-regions with flows to North, West and Central Africa showing a decline of 15.5%, 14% and 18% respectively. FDI flow to Southern Africa almost doubled in 2013 jumping to 13.2 billion USD from 6.7 billion USD in 2012, according to the report.

The report also identified that developing economies are becoming less dependent on natural resources with a drop in the share of extractive industries. Consumer-oriented sectors such as services and infrastructure developments are beginning to drive FDI growth in Africa, the report noted.

http://www.waltainfo.com/index.php/explore/13889-ethiopia-attracts-fdi-amounting-to-953-million-usd-in-2013

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Ethiopia, Kenya Top in East Africa in FDI – UN

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Ethiopia and Kenya have become top in the East Africa Region in attracting Foreign Direct Investment (FDI) in 2013, said the United Nations World Investment Report 2014.

FDI growth in these two nations has helped the region’s FDI growth by 15 percent as a whole and generated 6.2billion USD, indicated in the report.

It is stated that the industrial strategy in Ethiopia, which especially creating enabling condition for Asian investors, has contributed for the FDI growth in the country.

Ethiopia, Myanmar, Mozambique, and Cambodia are mentioned in the report that they used FDI for building Climate Resilient Green Economy.

Compared to South Africa and Nigeria, top in the continent in attracting FDI,Ethiopia and Kenya need to work more on the sector.

FDI in developing nations has grown by 57 percents; and 778 billion USD invested here.

http://allafrica.com/stories/201406250155.html

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Ethiopia’s economic ties with other countries deepening: MoFA

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Ethiopia’s economic ties with other countries is deepening, according to the Ministry of Foreign Affairs (MoFA).
Spokesperson of MoFA, Ambassador Dina Mufti, cited the recent visit by Israeli business delegation led by Israel’s Deputy Prime Minister and Foreign Minister, Avigdor Liberman, as a case in point.
He also mentioned the fourth Ethiopia-Canada bilateral consultations and the Ethio-Djibouti ministerial meeting held in Addis Ababa last week as an example for the strong ties Ethiopia has created with different countries.
An Israeli business delegation, representing over 40 business firms have explored the investment potentials in Ethiopia, which according to him would play a key role in boosting the two countries’ economic relations.

The fourth Ethiopia-Canada bilateral consultations also identified new areas of cooperation for the coming year, he said.

The Ethio-Djibouti ministerial meeting held last week would also play its part to further consolidate the age long relations between both countries, Ambassador Dina said.

Regarding the Cooperative Framework Agreement (CFA), the Spokesperson said that the Cabinet of Tanzania has referred the treaty to the parliament for approval.

Rwanda, Ethiopia, Uganda, Tanzania, Burundi and Kenya signed the (CFA), he said. South Sudan is also expected to ink the deal soon.
Parliaments of Ethiopia and Rwanda have already approved the deal.

http://www.waltainfo.com/index.php/explore/13890-ethiopias-economic-ties-with-other-countries-deepening-mofa-

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Ethiopia Eyes Stakes in EAC Integration Projects

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Ethiopia will attend the upcoming Heads of State summit on Northern Corridor Integration Projects where the leaders will assess the implementation of fast-tracking the process.

According to Monique Mukaruliza, the national coordinator of the Northern Corridor Projects, Ethiopia will attend the Kigali meet as an observer.

“They will attend as observers and assess which projects they want to join in the implementation process,” Mukaruliza said yesterday.

The summit will also be attended by Jin-Yong Cai, the chief executive of International Finance Corporation, an institution that offers investment, advisory and asset management services to encourage private sector development in developing countries.

Jin-Yong is expected to make some commitments on the financing of the regional oil pipeline as well as the Mombasa-Kigali standard gauge railway line that is estimated to cost about $13.5 billion.

Mukaruliza said Rwanda had previously signed a power purchase deal with Ethiopia, adding that if the Addis Ababa government picks interest in the projects, it would be advantageous to the region’s economies.

Integration ventures:

During the EAC infrastructure summit in Uganda in February, leaders of Rwanda, Kenya and Uganda agreed on projects to be fast-tracked, including a standard gauge railway between Kigali and Mombasa, a single customs territory, single tourist visa and use of national identity cards as travel documents.

Others are the establishment of an oil pipeline as well as electricity generation.

Later, South Sudan and Burundi joined the move aimed at boosting the regional economic growth.

Derrick Kayombya, the managing director of Petrocom, a company that deals in transportation of petroleum products, said Ethiopia had a potential market for both the local and regional business community.

“Ethiopia has a big population where we can sell our products and this would benefit the business community in the region,” he said.

According to 2014 United Nations statistics, Ethiopia has a population of more than 97 million with an annual growth rate of 3.02 per cent and is envisaged to increase to over 118 million by 2020 with a GDP of $51.87 billion.

Trade with Ethiopia:

Hannington Namara, the chief executive of Private Sector Federation, said Ethiopia has an advanced tanning industry where Rwandans export hides and skin, adding that if it becomes a member of the Northern Corridor Projects, it would help to broaden the market.

“They have cheaper energy and there is a lot we can export to their market. Their coming on board is good news,” Namara said.

He said the region will also benefit from sharing knowledge services and labour.

Experts believe that if Addis Ababa becomes a member, it would create competiveness among the member states.

“The Heads of State should bring Ethiopia on board. When you look at Ethiopian commodity exchange, you notice that it has grown over time and there is a lot to learn,” John Bosco Kalisa, the country programmes manager of Trademark East Africa, said.

Kalisa said Ethiopia’s enormous energy resources would help boost regional energy production.

Under the Eastern Electricity Highway Project, several regional countries are set to benefit from Ethiopia’s electricity power surplus of 2000MW.

In December 2012, the World Bank and the Ethiopian government signed a $243 million loan agreement for the financing of a section of Eastern Electricity High Way Project connecting Ethiopia’s electrical grid with Kenya.

Rwanda would be able to import its share through Lessos in Kenya connecting to Tororo-Bujagari-Kawanda-Masaka-Mbarara Mirama up to Kigali.

http://allafrica.com/stories/201406250682.html?viewall=1

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Ethiopia, Djibouti Preparing Strategic Plan for Economic Integration

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Ethiopia and Djibouti are preparing a mutual strategic plan in a bid to build economic integration, Ethiopian Ambassador to Djibouti, Suleiman Dedefo said.

In an exclusive interview with ENA, the Ambassador said the strong trade relation and trust built between the countries is leading to economic integration.

Experts’ committee will be formed soon to monitor implementation of the strategic plan, he said.

Ambassador Suleiman further stated that the trade relation between the two countries is beyond competition; it is rather a complementary one that intends to ensure the mutual benefit of the peoples of the two nation.

The Ambassador noted that Djibouti has provided over one million USD to support construction of the Grand Ethiopian Renaissance Dam, a multibillion hydropower project being built to generate over 6,000mw power.

For his part, Djiboutian Ambassador to Ethiopia Mohammed Idriss Farah said Ethiopia is one of the strategic partners of Djibouti.

Because of the strengthened and growing people to people and economic ties, the two countries have reached the stage to enter into economic integration, he stated.

The Ethio-Djibouti railway network, electricity supply, road and other infrastructure developments to interconnect the two countries manifest the strong relation, he added.

He indicated that the two countries are closely working in fighting terrorism, contraband trade and other cross border crimes.

According to reports, Djibouti is one of the major destinations for Ethiopia’s export items. It has imported items valued at over 138 million USD from Ethiopia during the first half of the current budget year.

Cement, food items, agricultural and industrial products, vegetables and fruits, chat, livestock, bottled water and beverages are the major items which Djibouti primarily imports from Ethiopia.

Some 90 percent of Ethiopia’s export trade activities of are being carried out via the port of Djibouti.

http://allafrica.com/stories/201406241529.html

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New single window system to streamline international trade

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Plans are in the works to establish a new government office for controlling international trade using a single electronic window.
Federal offices who have a stake in international trade are drafting the new law that will establish a new office under the federal government to accelerate international trade by streamlining it and eliminating the current system of forcing investors to deal with several bureaucratic processes.
Late last year Beker Shale, Director General of the Ethiopian Revenues and Customs Authority (ERCA) and William Asiko, CEO of the International Climate Facility for Africa (ICF) inked a USD 7.3 million deal to establish an electronic Single Window (eSW) system for international trade.
Even though ERCA will spearhead the project, it will also include several ministries and federal offices that play a role in international trade such as the National Bank of Ethiopia.
Setting up the Single Window System will make international trade more efficient by reducing export, import and transit procedures and the time and costs of clearance document preparation. The system will help to make the country’s businesses more competitive, attractive to investment opportunities and stimulate economic development.
The new endeavor is receiving some financial support from the International Finance Corporation (IFC), a member of the World Bank Group.
The first draft has already been completed and now all the stakeholdersare meeting to revise the law establishing the new federal office.
The affiliated government offices for international trade (import/export) have signed a memorandum of understanding (MoU) to enable the eSW until the legal framework is endorsed to govern the system by a single entity.
Melsew Hailemariam, communication expert of the Ethiopian electronic single window service international trade project, told Capital that government offices including National Bank of Ethiopia, ERCA, Ministry of trade, Ministry of Industry, Ministry of Transport, Ministry of Agriculture, Investment Agency and Ethiopian Chamber of Commerce and Sectoral Associations are involved in the process.
According to Melsew, the MoU will support the implementation of the electronic single window service until the legal framework establishing the independent entity is endorsed by the parliament.
The MoU is part of process facilitating the implementation of the eSW project that is currently in the final stages. The communication expert stated that the project will be fully applied by the coming fiscal year. The MoU will be replaced after the formation of the new entity, which is also expected in the coming fiscal year.
A consultancy firm assigned by IFC is currently undertaking a study to identify the best way to form the entity and who will be responsible for running it.  For instance Kenya has recently formed a similar international trade controlling body called Kenya Trade Network Agency (KenTrade) that is directly responsible to the President. KenTrade is mandated to facilitate cross border trade and establish, manage and implement the National Electronic Single Window System.
eSW which will provide a single electronic point of access for traders to lodge all trade related information and discharge all regulatory obligations for import, export and transit clearance. Hopes are that the  eSW will lead to appreciable gains in productivity and competitiveness for the Ethiopian business community and the capacity of international economic integration of Ethiopia.
It is also expected that the eSW, by providing customs and all other government agencies involved in the clearance of goods with access to a shared data repository and modern information systems facilities, will increase the efficiency of their operations, especially in areas such as risk management, allowing them to focus on generating additional revenue and improved controls, through better targeting of risks leading to greater compliance and facilitation of trade.
The eSW is the second cooperation project between the two parties. Back in 2012, the ERCA and ICF implemented another project to modernize tax administration by creating an online filing system for large tax payers and establishing a call center at ERCA.
The Investment Climate Facility for Africa (ICF) is a donor funded, private sector focused development institution whose purpose is to enhance the economic prospects of African society by working with businesses and governments to improve the investment climate in respective African countries. ICF works with African governments to create a conducive legal, regulatory and administrative environment for businesses, both big and small, to invest, grow and create jobs.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4396:new-single-window-system-to-streamline-international-trade&catid=54:news&Itemid=27

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Work on Addis Ababa Airport Expansion Project Commences

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Consultancy bid results to be announced next week The Chinese construction firm, China Communications Construction Company (CCCC), last week commenced work on the Addis Ababa Bole International Airport expansion project.

A senior official of the Ethiopian Airports Enterprise told The Reporter that CCCC started fencing the construction site and has embarked on earth-breaking work.

The enterprise plans to expand the Addis Ababa Bole International Airport passenger terminal at a cost of 250 million dollars. The loan was secured from the Export-Import (EXIM) Bank of China. The project is aimed at transforming the passenger terminal into a state-of-the-art terminal and boosting its capacity. CCCC, which has built a number of highways in Ethiopia, is the contractor. The design of the new passenger terminal was drafted by a Singapore company called CPG Airports.

To hire a consulting firm that would supervise the construction work, the Ethiopian Airports Enterprise has put up a tender. Thirty-eight companies bought the bid document. Only five of them submitted bid proposals and the enterprise bid committee has been evaluating the technical proposals presented by the five international consulting firms. Reliable sources in the enterprise told The Reporter that a French company has won the technical evaluation.

Another French firm ranked second and an Italian company was ranked third. Sources, who declined to disclose the names of the companies, said that the financial bid would be opened next week and automatically the winner will be revealed. The incumbent will also undertake a study on the new mega airport planned to be built out of Addis Ababa.

The Addis Ababa Bole International Airport passenger terminal expansion project includes the construction of a new passenger terminal as an extension of the existing Terminal 1 (domestic and regional terminal) and Terminal 2 (international terminal) with all related equipment and the construction of a new VIP passengers’ terminal.

The new terminal will house boarding areas, lounges, recreation centers, shopping malls, offices and other facilities. New boarding gates, boarding bridges, and new parking areas are parts of the expansion project. The new parking area will serve passengers and staff members. A major component of the expansion project is the VIP terminal.

The first of its type in Ethiopia, the VIP terminal will be dedicated to leaders, senior government officials, diplomats and other dignitaries. The VIP terminal will have various saloons, lounges, conference rooms, recreation centers, duty free shops, an IT center and an exclusive parking lot. At present the two terminals accommodate 6.5 million passengers every year. When the new terminal is completed it will accommodate 25 million passengers per annum.

The Ethiopian Airports Enterprise owns and operates 18 airports, 15 of which are asphalted. To cope with the fast growth of Ethiopian Airlines, the Ethiopian Airports Enterprise is building new airports in different parts of the country. The enterprise will soon inaugurate the Jimma and Assosa airports it has recently built. It will also soon embark on the construction of a new airport in Hawassa town. The enterprise is also contemplating to build a giant international airport (mega hub project) in a lowland area outside Addis Ababa.

http://www.waltainfo.com/index.php/explore/13882-work-on-addis-ababa-airport-expansion-project-commences

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Turkey buys Ethiopian products from third parties

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Turkey is hoping that better relationships between Ethiopian and Turkish banks will increase the amount of products they import from Ethiopia, Capital learnt.

Even though business has increased between the two countries over the past decade, Ethiopia still does not export many of its products to Turkey.  There has not been a very strong relationship between Ethiopian and Turkish banks and there has not been a trusted market link between the business communities in both nations. Improvements in these two areas could improve exports. Because there is not a strong relationship between Ethiopian exporters and buyers in Turkey, the business community there has to obtain Ethiopian agricultural products from third countries.
“Turkey imports sesame and other agricultural items from Ethiopia, however they have to buy them from places like Dubai and this means they are paying a higher amount than the original price,” Anteneh Tarkiu, commercial counselor for the Ethiopian Embassy in Turkey, said.
By importing the products directly from Ethiopia it would make the price much more affordable. This can be accomplished by changing the way the two nations’ banks relate to each other.
The National Bank of Ethiopia, the Central Bank, and Guarantee Bank are in negotiations to do just that.
“I have information that the two banks are negotiating to commence relations between their banks,” the commercial counselor told Capital.
Turkish businesses have become wary because some Ethiopian exporters have canceled contracts or have not followed through with promises and as a result they have opted to buy Ethiopian products from other countries at higher prices.
“When we spoke with potential importers in Turkey about buying Ethiopian products directly from the main sources, they claimed that they did not trust Ethiopian exporters because of their previous reputation,” he said.
He added that the situation could be further improved by protecting Turkish investors from default.
Currently, Turkey has become one of the major sources for Ethiopian traders. In the past decade the imports from Turkey have significantly increased. In 2013 Ethiopia  imported over USD 380 million worth of products from Turkey, a huge increase from USD 20 million in the year 2000.
The amount that Ethiopia exported to the Turkish market in 2013 was about USD 57 million.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4391:turkey-buys-ethiopian-products-from-third-parties&catid=35:capital&Itemid=27

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Ethiopia eyes over $47mln from meat exports during Ramadan

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Ethiopia eyes to earn $47.48 million from meat and animal exports to the Middle East countries, which will observe the start of the holy fasting month of Ramadan next week.

“The rising demand for meat during the month of Ramadan has been a business opportunity for us for a long time,” Kelifa Hussein, deputy head of the Ethiopian Trade Ministry’s Live Animals, Hides and Skins Department, told Anadolu Agency.

“We export both animals and meat to Somalia, Egypt, Djibouti, Saudi Arabia and the United Arab Emirates (UAE) and export meat to Turkey and Hong Kong,” he said.

According to Hussein, the Ethiopian revenues will exceed the planned $21 million, Anadolu News Agency Reported.

“Ethiopia earned $176 million from export of live animals during the last eleven months,” he said.

Secretary-General of Ethiopian Association for Meat Producers and Exporters Abebaw Mekonnen said Ethiopia anticipates earning $26.48 million from export of 5405 tons of meat to different countries during Ramadan.

“Saudi Arabia and UAE are target markets for 90 percent of our products. We export the remaining 10 percent to Kuwait, Oman and Egypt,” Abebaw told.

“The country earned $66.8 million from meat exports during the last 11 months. The revenue is estimated to increase to $70 million during the month of Ramadan,” he said.

Previously, the Ethiopian Airlines used to transport only 24 tons of meat per flight.

Now, Abebaw said, there is a plan to increase the amount to 60 tons per flight.

Ethiopia has the largest livestock population in Africa with 53.8 million heads of cattle, 25.51 million sheep, 22.79 million goats, 2.17 million camels and 49.3 million poultry, according to the Central Statistical Agency of Ethiopia.

http://www.waltainfo.com/index.php/explore/13887-ethiopia-eyes-over-47mln-from-meat-exports-during-ramadan

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Omo Kuraz -I to begin sugar production after two months

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Omo Kuraz -I sugar factory will begin sugar production after two months, according to coordinator of project.
Omo Kuraz -I is among the five sugar factories to be built under the Kuraz sugar development project.

The factor is being constructed in the Southern Nations, Nationalities and People (SNNP) Regional State by the Metals and Engineering Corporation (MetEC).
“Civil construction works of Omo Kuraz -I sugar factory is now 98 per cent complete,” project’s coordinator at MetEC, Major Molla Tamiru, told WIC recently.
Installation and erection of the factory have also reached at 68 per cent, he added.

According to the coordinator, concerted efforts are underway to finalize the construction of the factor and enable it begin trial production after two months.
The construction of the factory has so far created jobs for 2,000 in habitants of the area, including people from Bodi, Bacha and Mursi tribes, he pointed out.

http://www.waltainfo.com/index.php/explore/13879-omo-kuraz-i-to-begin-sugar-production-after-two-months

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Premier Announces Pay Raise for Civil Servants

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Prime Minister Hailemariam Desalegn has announced that Ethiopian civil servants will soon get a salary increase in addition to preferential access to 20pc of the condominium houses under construction by the government.

“If members of the public service wish to organize themselves in associations for the construction of houses, the government will provide them with land,” Hailemariam proclaimed.

He announced this at the opening ceremony of the World Civil Service Day, held at the African Union meeting hall on Monday.

The premier also proclaimed that only members of the public service would participate in the draw for 20pc of the condominium houses under construction by the government. This is to avert the housing problems facing government employees, he said.

Intended to improve the working as well as the living condition of civil servants, the salary increment will be effective from July 2014 – the first month of the next fiscal year.

The increase will be made with consideration to the government’s financial capacity, in a way that avoids awakening inflation or disturbing the stability of the economy, Hailemariam added.

http://allafrica.com/stories/201406240374.html

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Two More Cement Factories for Ethiopia by October

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Chemicals and Construction Materials Development Institute announced two more cement factories will commence production in four months time. The factories are Ethio Cement and Dangote.

Samuel Halala, the Institute’s Director General, said 90 percent of Ethio Cement’s construction is completed while 75 percent of Dangote is finalized.

The Director General added upon commencing production the two factories are expected to push the nation’s capacity to 15.7 Million Metric Tons which currently stands at 12.2 Million Metric Tons.

Following the cement shortage in the country, some two and three years ago, many investors managed to engage in cement production, Samuel added. He furthered some 18 of the 24 projects licensed for cement production have already commenced production.

Private investment’s increment in the area is enhancing the nation’s aim of meeting local demand and also exporting cement to neighboring countries.

Ethiopia has collected a total of U.S $ 7 Million from exporting cement in the first 10 months of the current fiscal year.

Ethiopia plans to earn U.S $ 20 Million from exporting cement in the coming budget year.

http://www.2merkato.com/news/alerts/3066-two-more-cement-factories-for-ethiopia-by-october

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Five new parks underway

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Even though there have been many roads and buildings constructed in the last ten years, there have not been many parks.

As part of the Growth and Transformation Plan, the Addis Ababa Beautification Park and Cemetery Development Agency (BPCDA) planned to construct five new parks. These included: Ledeta, Basha Wolde, Nation and Nationality Square, and the parks beside Economic Commission for Africa and the Holland Embassy.
So far only the 12,000sqm Ledeta Park has been completed, at a cost of 26 million birr.
The other four parks are below forty percent complete. There has recently been the beginning of reconstruction of two parks Ethio-Cuba and Akaki Kaliti.
Including the two parks that are being refurbished Addis Ababa has allocated 300 million birr.
Akaki is 62,518sq.m and is being built at a cost of 59 million birr. The 27,226s.qm Ethio-Cuba is the cheapest at 9 million birr.
BPCDA Deputy Manger Dereje Ejeta told Capital,  “We didn’t have any problems with planning, the difficulty we faced was that there were few people with experience in building parks here, we wasted almost two years posting tenders repeatedly trying to find the right contractor, now the issue has been resolved and all of the parks are under construction.”
Most of the parks will cost two birr to enter. Some criticize this because they say there really are not a lot of amenities there to justify the fee.
Over the last nine months BPCDA has brought in a profit of 2.5 million birr from entrance fees, weddings, food service, and photos. Last year it earned around the same amount. The eleven old BPCDA administered parks have received 371,359 visitors.
Some of the new parks will feature shops, swimming pools, tennis courts, cafeterias and fountains. The agency is waiting for a response from a government construction agency to tender out the    redesigns of    Afincho Ber, Hamlae 19, and Behare Tsegae  parks.
Among Addis parks Behare Tsegae is the biggest at 60 hectar. It was established forty nine years ago and it provides an area for weddings, park photos and a restaurant.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4387:five-new-parks-underway&catid=35:capital&Itemid=27

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Working for Change in Northern Ethiopia

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Agro-pastoralists in Ethiopia’s northern Afar region once used to migrate in search of water and pasture for their herds. But today, they are staying put, thanks to a range of government environmental and public works projects, supported by WFP.

MEGLELA, Ethiopia – For years, farmers and herders in this drought-prone pocket of northern Ethiopia would migrate regularly in search of water and pasture for their herds of goats, sheep and cows.   But today, agro-pastoralists like Duba Oundunumo are staying where they are and reaping the benefits of environmental and development activities that have greened the landscape and put food on their plates.

“We are working for change,” says 58-year-old Duba, who is the village chief of Meglela, a community of 8,000 located roughly 190 kilometres from Semera, the capital of Ethiopia’s northern Afar region. “And for the work we do, we get food in return, thanks to WFP.”

The change came four years ago, as the Ethiopian government rolled out a series of public works projects around Meglela, ranging from building ponds and roads, to terracing degraded mountain ridges and reforesting bare swathes of land under its Productive Safety Net Programme (PSNP). In 2014, WFP aims to provide food assistance to roughly 1.2 million Ethiopians engaged in PSNP activities across the country – including those in Meglela.

“Along with infrastructure construction, communities here are also engaged in small-scale irrigation, planting trees, clearing weeds and river diversion for irrigation purposes,” says WFP’s Assistant Field Monitor Teklemuz Gebregziabher, who monitors the public works projects. “The programme is intended to protect household assets.”

Restoring lands and livelihoods

Sebana-Damale is another village in Afar where the PSNP project has brought a tangible change to one of Ethiopia’s most punishing regions. The village is located in Berhale district, home to the lowest and hottest region on earth, the Denakil Depression. Getting here is a scorching trip down a rough road that cuts through rocky mountains and crosses river beds that often run dry.

But today, the PSNP programme is restoring lands and livelihoods, and bringing hope to a community where many members can now afford to send their children to school.

“We are destined to be cattle herders,” village chief Duba says, “but we don’t believe our children should follow our paths.”

Amina Aliyou (left), a farmer and mother of five, is also participating in the programme, working five hours a day in a community project to divert the local Mille River for irrigation. In return, she receives 15 kg of maize and wheat from WFP.

“Living here can be challenging – especially when it comes to managing flooding of the river that crosses our land,” says Amina, 40. “I am contributing my time and energy to change the environment.”

Participants in the community projects receive six-month rations of WFP food in return for their work – which ensures they don’t sell off their precious assets when times get tough.

For villagers like 38-year-old Osman Ahmed, a father of 10, there are other paybacks to community public works projects. Under PSNP, Ahmed has been involved in road building and flood control efforts.

“We see the value of working together,” Ahmed says. “It benefits all of us a lot.”

http://www.trust.org/item/20140623165146-0crcu/

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Sheba buys majority share of National Tobacco

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Sheba Investment PLC will pay 1.25 billion birr to own a 60 percent stake in the nation’s only tobacco company.

The company has come to terms with the Privatization and Public Enterprises Supervising Agency (PPESA), which is the public enterprises regulatory body, to own the dominant share of the National Tobacco Enterprise (NTB), the state monopoly for producing and distributing tobacco and related products.
In 1999 Sheba, a Yemen based company, purchased 22 percent of the tobacco manufacturer. Based on the current deal, the company will have an additional 38 percent of the company which has a factory and tobacco farms throughout Ethiopia.
Wendafrash Assefa, public relations head of PPESA, told Capital that the company has agreed to pay 1.25 billion birr to acquire a dominant share of the factory.
“They asked us to increase the share to 70 percent but 40 percent is what we felt comfortable with,” he added.
NTB has four tobacco farms, 20 hectares in Robe, 1,200 hectares in Blate, 25 hectares in Hwassa and 1.5 hectares in Wolyata. The factory is using three types of tobacco plants for its production; Virginia, Oriental and Berlet. Aside from its own plantation, the enterprise also collects products from other growers. For instance 65 percent of Virginia and 100 percent of Oriental type tobaccos are collected from other growers. It produces Nyala, Delight, Gisilla and Elleni cigarettes. It also imports two globally known tobacco types, Rothmans and Marlboro.
Nyala dominates the market, with sales of 258,220 cartons (of 50 sticks or 10,000 pieces) per year, followed by NTE’s Gisilla at 29,804, BAT’s Rothmans at 29,804, PMI’s Marlboro at 1,221, NTE’s Delight at 480, and Elleni at 115 cartons per year. But, while Rothmans account for 4.8pc of the total quantity of cigarettes sold, in terms of value, it accounts for 9.69 percent of the market due to the brand’s higher price. Nyala has the lion’s share in both quantity (at 50.4pc) and value (at 50.15pc), while Gissila shares 5.8pc of the quantity and 1.2pc of the value. The enterprise earned more than 127 million Birr net profit last fiscal year.
In a related development, PPESA is expected, place seven enterprises up for bid at the beginning of the fiscal year, which begins July 22, 2014.
The public relations head stated that the agency will float the Mineral Development Share Company, Bahir Dar Textile, Kombolcha Textile, Agricultural Mechanization Service Enterprise, Ethiopia Fiber Product, Bilito Sirao Farm and the Transport Construction Design Share Company.
Currently the government holds 29 enterprises and 13 of them will be transfered to the private sector next year, according to PPESA Schedules.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4395:sheba-buys-majority-share-of-national-tobacco&catid=35:capital&Itemid=27

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Authority to Construct Road to Interconnect Omo-Kuraz Sugar Factories

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The Ethiopian Roads Authority here Wednesday signed contract agreement amounting to 2.5 billion Birr with the Chinese Communications Construction Company (CCCC) for construction of 102km road on Omo River.

The road project aimed at linking the six sugar factories under the Omo-Kuraz project with each other and main roads, Authority Director General Zaid Weldegebriel said.

The construction of the road to be finalized in three years, will be carried out in two phases. The first phase that covers 41.7km will run from the Omo no-6 junction to the junction to no-4.

Construction of a 200m bridge over the Omo River will be undertaken in this phase of the project expected to consume 108 billion Birr.

Up on completion within three years, the road will link people living in both sides of the river and the sugar factories with each other, Zaid said.

The second phase of the project that covers 60.6 will be carried out with an outlay of over 1.4 billion Birr. Construction of 157 small bridges will be carried out in this phase of the project, according to Zaid.

This road will interconnect the Omo no-4 and no-6 sugar factories with Hana- Jinka and Sawla Maji main roads.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2281:authority-to-construct-road-to-interconnect-omo-kuraz-sugar-factories&Itemid=260

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Africa’s palm oil sector ‘faces monumental change’

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The oil palm tree is coming home.

The palm oil industry in Africa, where the tree originated in freshwater swamps, is “on the cusp of monumental change”, Standard Chartered said, estimating that the continent could produce an extra 2.8m tonnes of the vegetable oil by 2030 – more than doubling current output.

The increase reflects in part the decreasing availability of land in the South East Asian countries, notably Indonesia and Malaysia, where the palm oil tree – whose scientific name of Elaeis guineensis suggesting suggest a West African origin – has thrived since being taken there by Dutch and British traders.

However, an extra incentive will come from growing consumption palm oil consumption in Africa, thanks to the continent’s growing and increasingly affluent population.

‘Set to boom’

Africa’s palm oil industry, whose output is currently “anaemic”, is “on the cusp of monumental change”,  Standard Chartered analyst Abah Ofon said.

“Africa’s edible oil market is set to boom,” growth which will “create tangible market opportunities” in the sector, and hand strong market shares to those quick to invest.

“Industry players – including concession owners, mill owners, consumers, policy makers and investors – can ride the crest of this wave of Africa’s burgeoning demand for crude palm oil.”

Supply vs demand

The pace of commercial palm plantings in Africa is “already picking up”, albeit from a low base, with output at 2.2m tonnes, on US Department of Agriculture data, from area estimated at perhaps 5m-7m hectares, but of which only 1.5m hectares the bank deemed “productive”.

Nonetheless, even with an increase in output of 2.8m tonnes, the sector would be unable by 2030 to meet local demand, seen soaring more than 60% to 8.2m tonnes by then.

That assumption rests in part on an estimate of per capita consumption of 7.2 kilogrammes of palm oil, up 40% from current levels, but still below the 7.7 kilogrammes in China and 8.8 kilogrammes in India.

Rising consumption means that only three African countries will be net exporters in 2030, with Liberia to show the biggest surplus, thanks to a 12-fold rise in production to 500,000 tonnes a year.

Gabon will also become a net palm exporter.

However, Ivory Coast, the continent’s only net exporter currently, will become a net importer “as consumption gathers pace”, with demand growth outpacing increases in output in Ghana, Nigeria and the Republic of Congo too.

http://www.agrimoney.com/news/africas-palm-oil-sector-faces-monumental-change–7199.html

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East Africa Bottling to Replace Production Lines at the Cost of 30 Million

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East Africa Bottling S.C. announced it is going to replace two of its production lines which are found in Addis Ababa at a cost of U.S $ 30 Million.

East Africa is undertaking aggressive expansion works which it called 2020 vision. The whole project is anticipated to double the production capacity of the current lines and cost the company U.S $ 500 Million.

The two lines that are announced to be replaced will be brand new lines with the latest technology. Commenting on this CEO of the company, Xavier Selga, said the new lines will use less energy and have greater efficiency with minimal environmental impact.

East Africa has already built two additional lines in Addis Ababa out of which one is dedicated to packaging the company’s products in plastic bottles. It is these two lines that raised East Africa’s number of production lines in Addis Ababa to five.

Replacement work has also been carried out by the company at it’s two of production lines in Dire Dawa. This is said to have enabled the company to increase its production from two million cases to seven million cases.

According to Selga East Africa is on the process of constructing a plant in Bahir Dar, which will be its third plant, at the cost of U.S $ 20 Million. He further noted, his company is waiting to officially inaugurate its new water product, Dasani, which it has already introduced.

http://www.2merkato.com/news/alerts/3074-ethiopia-east-africa-to-replace-production-lines-at-the-cost-of-30-million

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Ethiopia’s First Oil Blending Plant to Start Production

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Ethiopia’s first ever oil blending plant commenced production on Tuesday, June 24, 2014. The plant is erected by Naztech Petroleum Investment Group at the city of Galan in the Oromia State.

The oil blending plant is the first of series investments that are going to be made by Naztech in Ethiopia.

The plant is said to produce different lubricants using the latest standards of the American Petroleum Institute (API) and it is also in line with Ethiopia’s objectives of indigenizing its oil and gas industry.

Upon commencing production, Naztech is expected to produce passenger car lubricants, diesel engine oil-automotive, two stroke motor oil-automotive, automotive specialty, gear lubricants, industrial lubricants, greases and marine lubricants.

http://www.2merkato.com/news/alerts/3073-ethiopias-first-oil-blending-plant-to-start-production

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LIDI Stated Value-Added Leather and Leather Products Revenue Increasing

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Ethiopian Leather Industry Development Institute (LIDI) proclaimed Ethiopia’s foreign currency revenue from export of value added leather and leather products has been growing.

During the 11 months of the current fiscal year Ethiopia has managed to collect U.S $ 122 Million from the export of leather and leather products. According to the Ethiopian News Agency the sum collected exceeds the same period of the previous year by 10 percent.

Birhanu Serjebo, the Institute’s Corporation Communication Director, said Ethiopia is following the path of exporting finished leather and leather products by adding values to them.

BIrhanu further noted Ethiopia has exported to different nations shoes, gloves and outfits made from leather, the dominant being shoes. Out of the total revenue over U.S $ 90 Million goes to finished leather products, he added.

According to the Director Ethiopia’s aim for this year was to collect U.S $ 347 Million from the sector. He attributed the failure to lack of modern raw leather and hide system.

http://www.2merkato.com/news/alerts/3077-ethiopia-lidi-stated-value-added-leather-and-leather-products-revenue-increasing

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Tana-Beles sugar project ‘on schedule’

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Tana Beles sugar development project is progressing as per the schedule, the project consultant said.

Hassen Abdu (Eng.), representative of Acute Engineering, a local consulting firm, told WIC that civil works has been completed for two of the three sugar factories planned to be built under the Tana-Beles Sugar Development Project.

Ethiopian Sugar Corporation (ESC) expects the two sugar factories each with the capacity to crush 12,000 tcd (tons of cane per day) to go operational during the first months of 2015. The third factory is slated to go operational in the second phase of the Growth and Transformation Plan period (GTP II).

Adgeh Mekuria, deputy director general of the project, confirmed to WIC that the crushing plants will undergo testing in 12 months.

“We expect the factories to start producing sugar next year [Ethiopian calendar],” Adgeh said.

The crushing plants, currently under construction, are located in Amhara region some 576 km north of Addis Ababa. The project will cultivate 75 thousand hectares of land with sugarcane plantations. A portion of the plantation will be within the Benishangul Gumuz region.

At full capacity, the three sugar factories are expected to produce 726 thousand tons of sugar and 62.4 mln liters of ethanol from cane by-products.

The project will also offer seasonal and permanent job opportunities to over 69 thousand people, Adgeh said.

Currently, Ethiopia produces some 300,000 tons of sugar per annum while the demand for sugar stands at around 500,000 tons.

Ethiopia’s massive investment in sugar development projects across the country could see the nation produce 1.58 million tons of sugar annually by mid 2015, according to announcements made by the ESC in May this year.

http://www.waltainfo.com/index.php/explore/13913-tana-beles-sugar-project-on-schedule

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Norway supports Ethiopia’s green economy development

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Government of Norway made a 60 million dollar financial support to Ethiopia’s efforts of building green economy. The support will be used to forest development projects aimed at reducing carbon emission.

Belete Tafere, Minister for Environment and Forestry on the occasion noted that the financial support will have an important contribution to Ethiopia’s efforts to expand forest coverage with a view to build green economy and development of ecotourism.

Tine Sundtoft, Minister for Climate and Environment of Norway noted that Ethiopia and Norway hold strong position on climate change.

She hailed Ethiopia’s commitment and effort to combat the challenges of climate change and affirmed that Norway will continue to support these efforts.

Ethiopia and Norway has prepared draft projects on climate change to be implemented from 2013-2020.

http://www.waltainfo.com/index.php/explore/13912-norway-supports-ethiopias-green-economy-development-

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Peace, Conducive Investment Policy Attracting Investors and Leaders: MoFA

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American Affairs Director-General with the Ministry, Ambassador Taye Atskeselassie

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2282:peace-conducive-investment-policy-attracting-investors-and-leaders-mofa&Itemid=260

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Canadian Ambassador Calls Attention to Private Sector

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The Canadian Ambassador to Ethiopia, David Usher, has called for attention to the development of the private sector and the reframing of the ideologically dedicated and cumbersome bureaucracy of Ethiopia, if it is to continue along the path of sustainable development.

The call was made during the fourth Ethiopia-Canada bilateral consultation held on June 19, 2014 at the Ministry of Foreign Affairs (MoFA). Those in attendance included senior state officials from the MoFA, Ministry of Finance & Economic Development (MoFED) and Ministry of Mines (MoM), as well as senior officials from the Canadian Embassy and the Canadian Foreign Affairs office.

The predicament that the bureaucracy poses has been admitted by Taye Atske Selassie, director general of the Americas at the MoFA. At the event, he pledged to rectify the shortcomings of the red tape bureaucracy which hampers progress.

Among the series of issues deliberated on by representatives of the two countries were the current program scope and priority sectors, development program implementation, the Great Ethiopian Renaissance Dam (GERD), democracy and good governance.

The two countries are working closely to deepen their long standing interaction, which began close to 50 years ago. Extractive industries, agriculture and water development and electrical transmission are the key sectors of cooperation.

There are now 270 private local, joint venture and foreign companies that managed to obtain licenses. Two hundred and seven of them are engaged in exploration, while the rest are in extraction. Eleven companies from Canada investment have been given active licenses.

http://allafrica.com/stories/201406260316.html

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Global Cities, Present and Future

2014 Global Cities Index and Emerging Cities Outlook

Today more than ever, global cities need to run just to stand still. Urban leaders who wish to provide their citizens with the benefits of becoming a global power­house must fire on all cylinders, all the time.

Globally integrated cities are intimately linked to economic and human development. By creating an environment that spawns, attracts, and retains top talent, businesses, ideas, and capital, a global city can generate benefits that extend far beyond municipal boundaries.

At A.T. Kearney, our Global Cities Index (GCI) examines a comprehensive list of 84 cities on every continent, measuring how globally engaged they are across 26 metrics in five dimen­sions: business activity, human capital, information exchange, cultural experience, and political engagement (see Appendix: Global Cities Index Methodology). Since we began the GCI in 2008, we’ve continually refreshed our metrics to reflect emerging trends, analyzed how cities evolve along each of them, and developed insights about how a city can become more global.

Moreover, our companion Emerging Cities Outlook (ECO) builds on those insights and comple­ments the GCI. Just as the GCI tracks major cities’ actual performance, the ECO measures their potential to become even more global in the future. Specifically, the ECO examines the likelihood that 34 cities in low- and middle-income countries will improve their future global positioning, based on how quickly they’ve been catching up with the top performers on a number of leading human capital, business activity, and innovation indicators.

We’ve consistently tracked the evolution of 60 global cities over the past six years, to which we’ve added 24 more over the subsequent three editions. Taken together, the GCI and the ECO paint a revealing portrait of the global cities of today and tomorrow (see figure 1).

From a bird’s-eye perspective, we have observed the following trends:

But first, let’s take a closer look at the results of the GCI for 2014.

Global Cities Index 2014 Overview

As in every previous edition, New York and London lead the ranking, followed this year by Paris, Tokyo, and Hong Kong (see figure 2). Among the top 20 cities, seven are in the Asia Pacific region (Tokyo, Hong Kong, Beijing, Singapore, Seoul, Sydney, and Shanghai), seven are in Europe (London, Paris, Brussels, Madrid, Vienna, Moscow, and Berlin), and six are in the Americas (New York, Los Angeles, Chicago, Washington, Toronto, and Buenos Aires). Cairo is the leading city in Africa, remaining in the top 50 despite Egypt’s political and economic turbulence.

Beijing, in eighth position, breaks into the top 10 for the first time, thanks to an increase in the number of Fortune 500 companies, international schools, broadband subscribers, and museums. And Buenos Aires becomes the first Latin American city to join the top 20, based on the strength of its human capital and cultural scene, both of which reflect the city’s long-standing cosmo­politan tradition.

City highlights

Istanbul posted the largest jump, from 37th to 28th, as Turkey’s commercial capital recovers its prominence as a center of political, business, and cultural activity at the crossroads of Europe and Asia. Meanwhile, Boston and Zurich fell the most, dropping six positions from 15th to 21st and from 25th to 31st respectively. While much of Boston’s decline is attributable to a change in the metric that assesses the richness and quality of its culinary offering, its level of political engagement and its music and theater scene have also failed to keep up with those of other cities. Zurich’s relative decline is most noteworthy on the metrics of performing arts events and the number of international news bureaus located in the city.

The 2014 GCI includes 18 new cities (six in the Middle East and North Africa, four in the Americas, three in Europe, three in sub-Saharan Africa, and two in Asia Pacific) to improve the index’s global representation. Budapest, Prague, and Vancouver open the ranking of the new cities, coming in at positions 46 through 48, with Tunis, Lahore, and Kinshasa closing the classification of new cities at numbers 81 through 83.

Regional highlights

In the United States and Canada, New York (1) outscores all the other contenders on every dimension except political engagement, where Washington (10) edges it out. In general, U.S. and Canadian cities are stronger on information exchange than on any other dimension.

In Latin America, cities tend to be well rounded across all areas, although São Paulo (34) spikes in business activity and Santiago (58) in information exchange.

Among the top-ranked cities in Northern and Western Europe, London (2) is the strongest in human capital and cultural experience, while Paris (3) is slightly ahead in business activity and information exchange and Brussels (11) leads the pack in political engagement. In Southern and Eastern Europe, Madrid (15) presents a balanced profile, and Moscow (17) stands out for its rich cultural offering.

In the Middle East and Northern Africa, Dubai’s (27) position as a flourishing crossroads of trade makes it the leader in business activity, although the number of large firms setting up shop in Abu Dhabi (62) and Riyadh (65) could help those capitals to close in quickly. Dubai also leads in human capital and cultural experience, but Riyadh makes a stronger showing on the metrics of foreign-born population and, especially, top universities and inhabitants with tertiary degrees. Cairo’s (49) major strength is political engagement, and, interestingly, Casablanca (78) offers the most symmetric profile in the region—although its scores are uniformly low. In sub-Saharan Africa, Johannesburg (59) leads in four out of five dimensions—and stands out in information exchange vis-à-vis its regional peers. In political engagement, however, Nairobi (68) and especially Addis Ababa (80) can take pride in their weight as important centers of regional politics.

Singapore, at ninth place in the GCI, is clearly in a league of its own among cities in Southeast Asia, with no close rivals in business activity, human capital, or information exchange. Culturally, Bangkok (42) is the best performer in the region, and in political engagement Singapore, Bangkok, Jakarta (51), and Kuala Lumpur (53) lead Ho Chi Minh City (70) and Manila (63) by a large distance. Cities in South Asia on our index mostly stand out along the dimension of information exchange. That said, outward-looking Mumbai (41) far outstrips its peers in business activity and human capital.

Shanghai, at number 18 in the index, is the only city in mainland China that comes even close to Beijing (8). In fact, it bests Beijing in human capital, given its larger foreign-born population, greater number of inhabitants with tertiary education, and high number of international schools, while also performing well in business activity. Elsewhere, East Asia is home to some stellar performers—most notably Tokyo (4) and Hong Kong (5). Seoul (12) scores excellently on most dimensions, though it lags in human capital due to its small foreign-born population and the low number of international schools.

With Melbourne (25) on the rise and Sydney’s (14) solid performance, Australia places two cities in the top 25. Melbourne’s rise can be chiefly attributed to an increase in information exchange, coupled with improvements in cultural exchange and business activity.

Six Years in Retrospect

Over the six years we’ve been conducting the GCI, we can observe a number of changes along the five dimensions (see figure 3):

• Human capital scores among the original 60 cities have shown the largest increase (16 percent), and the distance between the highest- and lowest-ranked cities in this dimension is less than on any other. The average score has increased for all human capital metrics, but mainly in the number of inhabitants with tertiary degrees and the size of the foreign-born population.
• Business activity scores between 2008 and 2014 have risen by a more moderate 4 percent, with a mild tendency to diverge. This divergence is chiefly driven by the increase in the number of top global companies based in emerging countries—particularly China, but also India, Brazil, and Russia—and the countervailing decline in the European Union and the United States.
• Although the range of information exchange scores has widened slightly as a result of varying degrees of freedom of expression and broadband penetration, the overall number has risen by 6 percent. This increase is caused not only by the spread of information technology, but also by a change in some of the metrics (for example, including a city’s presence in Google and its access to international television news networks) to better reflect current information flows.
• In cultural experience, the results have shot up by 13 percent, and differences among cities have shrunk considerably—largely as a result of the change to a more inclusive metric to evaluate cities’ culinary offerings.
• Finally, political engagement stands out as the only dimension where scores have actually decreased, and they have done so by 13 percent. Further analysis reveals that the top cities along this dimension have significantly increased their performance in the metrics of the number of think tanks, international organizations, and political conferences. However, the majority of cities have remained stagnant and, thus, have pushed down the average score.

A perspective on select cities’ evolution since 2008

Some cities have advanced considerably in the GCI since 2008, while others have temporarily lost their footing. The changes can be observed in figure 4 (which, unlike figure 2, discounts the effect of the 24 cities added since 2008).

Buenos Aires and Mumbai have both risen 13 positions in this ranking of the original 60 cities:

• The score for Buenos Aires increased by nearly 40 percent between 2008 and 2014. The Argentine capital has seen large improvements in its cultural exchange and human capital scores, where it now ranks eighth and 11th respectively. There have also been smaller but still significant increases in business activity and information exchange—more than enough to offset the decline in international political engagement, possibly resulting from Argentina’s more fiercely independent foreign and economic policy.
• Mumbai’s score has gone up by 73 percent. Nonetheless, Mumbai’s overall result places it in the range of hotly contested positions in the ranking, so it would be well advised not to take its foot off the accelerator. India’s commercial capital has registered the largest increases in the areas of information exchange and human capital, followed by business activity, where it is now among the top 20 of the original 60 cities. The city remains weaker in cultural exchange, where a small improvement still led to a fall in the ranking, and in international political engagement.

Furthermore, while Beijing’s climb up the rankings has been less noteworthy—largely because it started from a position of strength, where movements are less brusque—the 20 percent growth of its score has firmly ensconced it among the top contenders. The increasing global importance of Chinese companies has helped catapult Beijing to fourth place on the business activity dimension, at just a hair’s breadth below Tokyo. This, together with some improvement in scores for human capital (where, nonetheless, it has dropped four places) and cultural exchange, has been more than enough to offset declining relative performance in information exchange and international political engagement.

Bangkok, with a 16 percent drop in score and a 15-position slide down the table of the original 60 cities, represents the flip side of the coin. In 2008, Bangkok seemed destined to rise. The Thai capital ranked among the top 20 cities in business activity, human capital, and international political engagement—and was in 22nd place overall. Since then, and coinciding with a long period of political uncertainty, scores in all three of these dimensions have flagged, in information exchange the city has also dropped markedly, and despite an improvement in the cultural experience, Bangkok is now in 37th place among the original cities.

San Francisco, Mexico City, and New Delhi have slipped seven places in the ranking, despite only modest decreases in score for the first two and a small gain for the Indian capital.

San Francisco (which moved from 15th to 22nd place) developed faster in information exchange than in any other area, translating a strong increase in score into a finish among the top 20—perhaps unsurprising given its location next to Silicon Valley. Its higher score in cultural exchange, on the other hand, was insufficient to keep it from dropping two positions, and its numbers decreased on the other three dimensions.

Mexico City (now in 32nd place among the original 60 cities, down from 25th place in 2008) significantly increased its human capital score in 2014, but only enough to propel it two positions up the chart in this very competitive dimension. Meanwhile, its scores stagnated or fell across all other areas, with a particularly noticeable drop in its ranking in information exchange.

New Delhi, having slipped from 41st to 48th place among the 60 original cities, actually increased its scores across every dimension except information exchange. Unfortunately, its improvement in human capital and cultural experience was not enough to keep up with similarly ranked cities.

It did, however, move up three notches on business activity, while India’s increased exposure on the world stage brought the city up to 14th place in international political engagement.

Mainland China’s integration in the global economy is reflected in advances in the index. Indeed, as Beijing, Shanghai, and Guangzhou climb the ranking, other key cities in Asia (such as Hong Kong, Taipei, Singapore, and Seoul) have remained stagnant or declined in relative terms.

Singapore is having a harder time than Tokyo in maintaining its position, as declining scores in business activity and human capital threaten the city’s ranking among the top 10 in these two heavily weighted components. It has, however, increased its score in the very competitive dimensions of cultural experience, and, especially, information exchange—just not by enough to hold its place in the ranking.

Tokyo’s improvement in human capital marks a bright spot and has allowed it to break into the top five on this dimension, even though its scores have declined on every other dimension—as has its ranking on each of them, save cultural experience.

A Preview of the Future: Emerging Cities Outlook

As the examples cited above will attest, cities that wish to improve or maintain their global positioning must focus especially on strengthening business activity and human capital. As physical distances become less relevant and global competition intensifies, cities in emerging economies will increasingly jockey for position with one another and with cities in higher-income countries.

Our Emerging Cities Outlook (ECO) measures the likelihood that cities in low- and middle-income countries will improve their global standing over the next 10 to 20 years (see figure 5). We do that by calculating how long it would take any given city, provided that it progresses at the same rate as between 2008 and 2013, to reach the global leader in each of 10 leading indicators of business activity, human capital—and also innovation, which is crucial to attract talent and business (see Appendix: Emerging Cities Outlook Methodology). Of course, externalities can cause improvement rates to change rapidly—and swift advances are more difficult to sustain as scores improve—so caution is advised.

Two Southeast Asian cities, Jakarta and Manila, head up the list of emerging cities most likely to progress. Although both cities are currently in the lower half of the GCI on the dimension of business activity, their rapid improvement on the ECO’s leading indicators would allow them to reach the business leaders faster than any other low- or middle-income city in the world except São Paulo. Furthermore, Jakarta is moving up quickly in the area of human capital—particularly in measures of stability and security, but also in addressing income inequality and environmental concerns—as well as across several important innovation indicators. Manila, too, is bolstered by a relatively sharp increase in human capital indicators, with an especially notable improvement in healthcare quality and availability. Another Southeast Asian capital, Kuala Lumpur, is also among the top 10 cities in the ECO; Kuala Lumpur is the city that will most quickly catch up with the leaders in terms of the ease of doing business. Jakarta, Manila, and Kuala Lumpur’s strong showing on the ECO signals that major cities throughout eastern Asia are laying solid groundwork to advance as global cities and eventually dispute the top positions in the GCI.

Moving to Africa, Addis Ababa is the third most likely city to advance its global positioning. While its absolute numbers in the area of innovation are quite low, it improved its performance on the leading innovation indicators by a very large percentage between 2008 and 2013. At current rates of improvement, the Ethiopian capital is also among the cities closing in fastest on the world leaders—despite current distances—in income equality, healthcare, and business transparency. The next sub-Saharan city on the ECO is Nairobi, in ninth place, where IBM is already building a research laboratory.

Rio de Janeiro and Bogotá join São Paulo as Latin American cities among the top 10. São Paulo is already very strong in business activity on the GCI, and if it were to continue to improve at the present rate, it would catch up with the leaders relatively quickly. However, in the leading human capital indicators—particularly stability and security—it will take a long time for São Paulo to bridge the gap. Meanwhile, Bogotá is progressing rapidly toward the leading cities in human capital, second only to Cape Town, on the strength of improvements in stability and security, respect for the environment (thanks to initiatives such as the Transmilenio bus system and the construction of bicycle paths), and healthcare.

New Delhi, in fifth place, is the South Asian city best poised to improve, followed by Mumbai in eighth position and Bangalore in 11th, as Indian cities appear to be reaping the benefits of the country’s booming global services industry and its greater openness to the global economy. The distance from world innovation leaders is shrinking rapidly, and significant advances in human capital and business activity are also being made.

As for China, Beijing’s 12th place position on the ECO reflects the fact that the city is already in eighth place on the GCI, where it is very difficult to move up the ranking. Other mainland Chinese cities where healthcare—a key leading indicator of human capital—is not improving as quickly as in Beijing are much less likely to improve their global position in the short to medium term, although the rapid increase in patent filings in nearly all of them is a promising sign for the future.

In the Middle East, Abu Dhabi, Doha, Dubai, Manama, and Riyadh have not been included in the ECO, as they are located in high-income countries.

Lessons for Policy Makers and Business Leaders

By focusing on the elements that contribute to the generation, attraction, and retention of global capital, people, and ideas, the GCI and ECO can be powerful tools in the hands of policy makers and business leaders. Urban economic development planners, by examining the indexes’ metrics, can find many insights that can inform their improvement plans and investment decisions in order to better benefit from the global economy and compete against other cities in the region. Likewise, executives at multinationals will find many elements to help them choose the most suitable locations for regional headquarters, research centers, and operational hubs—not just now, but looking several decades into the future.

The overview of the GCI and ECO show that today more than ever, global cities need to run just to stand still. Urban leaders that wish to provide their citizens with the benefits of becoming a global powerhouse must fire on all five cylinders (business activity, human capital, information exchange, cultural experience, and political engagement) all the time. To do so requires a deep commitment and broad consensus among governing parties, opposition, civil society, and business leaders. It also requires the complicity of subnational and national leaders to advance on those metrics that are affected by policies beyond the competence of municipal authorities. And it requires everyone to be in it for the long haul.

Business leaders must be a driving force to create a vision for a global city and get their city to embark on the journey to become more global. Companies need to be an active promoter and participant in the collective effort to create an environment that offers a better future for all of society.

Working together, with determination, discipline, and a long-term vision, a world of greater human and economic development is within the grasp of cities in regions and continents around the world.

The authors wish to thank Alan Berube, senior fellow and deputy director at the Brookings Institution Metropolitan Policy Program, and Diana Frison of A.T. Kearney for their valuable insights and contributions to this paper.

¹ Standard deviation has decreased by 5 percent since we began conducting the GCI in 2008.

Appendixes

Global Cities Index Methodology

A.T. Kearney’s Global Cities Index ranks metropolitan areas according to 26 metrics across five dimensions:

• Business activity is measured by headquarters of major global corporations, locations of top business services firms, the value of a city’s capital markets, the number of international conferences, and the flow of goods through ports and airports (weighting: 30 percent).
• Human capital evaluates a city’s ability to attract talent based on the following measures: size of foreign-born population, quality of universities, number of international schools, inter­national student population, and number of residents with university degrees (weighting: 30 percent).
• Information exchange examines how well news and information circulate within and outside the city, based on: accessibility to major television news channels, Internet presence (capturing the robustness of results when searching for the city name in major languages), number of international news bureaus, freedom of expression, and broadband subscriber rate (weighting: 15 percent).
• Cultural experience measures diverse attractions, including number of major sporting events a city hosts; number of museums, performing-arts venues, and diverse culinary establishments; number of international travelers; and number of sister-city relationships (weighting: 15 percent).
• Political engagement assesses how a city influences global policy dialogue as measured by the number of embassies and consulates, major think tanks, international organizations and local institutions with international reach that reside in the city, and the number of political conferences a city hosts (weighting: 10 percent).

As a compendium of analyses published in 2013, the 2014 GCI may represent data as far back as 2010. Thus, today’s current events can be expected to show up in our next set of rankings. A panel of academic experts and corporate executives informed and tested the global rankings.

Emerging Cities Outlook Methodology

The Emerging Cities Outlook examines 34 cities located in countries that the World Bank classifies as low or medium income. It measures how quickly cities are evolving along 10 leading indicators that are most likely, over time, to influence a city’s ability to attract, retain, and generate flows of ideas, capital, and people—and, given that rate of evolution, how long it would take a city to catch up with the GCI leader in each of those indicators.

Indicators can be grouped into three categories:

• Business activity analyzes the evolution of a city’s GDP, changes in its infrastructure (such as roads, public transportation, housing, and water supply), the ease of doing business in the country where it is located, and perceptions regarding public-sector transparency.
• Human capital looks at trends in stability and security, healthcare availability and quality, income equality, and environmental sustainability.
• Innovation is included in our ECO for the first time this year, given its criticality as a catalyst to attract business and talent. In this area, we examine progress in the number of patent filings per capita and changes in a basket of select additional metrics (such as number of new businesses created, volume of venture capital deals, gross expenditure in R&D, and ease of obtaining credit).

Sourced here  http://www.atkearney.com/latest-article/-/asset_publisher/lON5IOfbQl6C/content/global-cities-present-and-future-gci-2014/10192

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Statement by an IMF Staff Mission on the 2014 Article IV Consultation with Ethiopia

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An International Monetary Fund (IMF) mission led by S. Kal Wajid visited Addis Ababa June 11-25 to conduct discussions for the 2014 Article IV Consultation with Ethiopia.

At the conclusion of the mission, Mr. Wajid issued the following statement:

“The Ethiopian economy continues to experience robust growth and single-digit inflation. The mission projects real GDP growth in the 8-8.5 percent range for 2013/14 and 2014/15. The expansion in economic activity has contributed to poverty reduction and progress toward achieving the Millennium Development Goals. Deterioration in the trade balance this year was partly offset by higher net inflows from services and transfers. Strong external loan and higher foreign
direct investment, however, allowed for a modest increase in gross international reserves. Sizeable investment spending of public enterprises continues to absorb a large share of domestic financing and constrain credit available to the private sector.

“Going forward, the mission recommends continued cautious monetary policy stance that keeps money growth consistent with preserving the gains on inflation and achieving robust economic growth. The stable inflation conditions are ripe for developing market-based instruments of indirect monetary control. In this respect, there is a need to gradually raise nominal interest rates to activate
the Treasury bill market for more flexible liquidity management. There is scope for improving the market functioning and price setting mechanism for the exchange rate. This may entail greater exchange rate flexibility not only to help to clear the foreign exchange market but also to promote the competiveness of the traded goods sector. The mission supports the National Bank of Ethiopia’s
objective of gradually raising foreign exchange reserves to 3 months of imports.

“The mission stresses the importance of obtaining comprehensive financial information of major public enterprises for establishing an overall fiscal anchor. The consolidated fiscal position is required to assess the fiscal policy impact on macroeconomic developments and debt sustainability. The continued large borrowing of the public sector with large share from domestic banking
system is crowding out the private sector. In this respect, to further support private sector development and employment creation, there is a need to reduce public sector borrowing by either prioritizing investment projects or attracting more external financing at appropriate terms.

“Ethiopia’s public sector led development strategy has delivered robust growth and rising living standards. To sustain these achievements, adapting policies to provide greater scope for the private sector will be important. In terms of the next Growth and Transformation Plan, consideration should be given to mitigating constraints to private sector development and improving export competiveness.Concerted efforts are needed for improving efficiency of trade logistics, increasing access to financial services, ensuring a competitive exchange rate, and providing a predictable regulatory environment for businesses. Harnessing the transformation power of private enterprises will be increasingly important as Ethiopia transition from agricultural to industrial based economic growth.

“The IMF Executive Board is expected to complete the 2014 Article IV consultation in September 2014.”

Source: IMF Press Release

http://www.2merkato.com/news/alerts/3080-statement-by-an-imf-staff-mission-on-the-2014-article-iv-consultation-with-ethiopia

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Tigray to cultivate over a million hct of land in Meher

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More than 1.3 million hectares of land would be covered with seeds in the upcoming Meher (production) season, the Tigray Regional State Agriculture and Rural Development Bureau said.

Bureau Public Relations Coordinator, Michael Miruts, told WIC today that the land would be covered with main crops such as maize, teff, sesame, rice and sorghum, among others.

He said various agricultural inputs essential for the development activities are under distribution.

Out of the 749, 823 quintals of fertilizer required for the development activities, some 362, 777 quintals have so far reached in the hands of the farmers, he said.

He said farmers are using more than 13.1 million quintals of compost and 31 million quintals of animal manure.

According to Michael, 49, 889 quintals of select seed were also prepared, of which 9,100 quintals have already been reached in farmers’ hands.

Some 12,462 kilograms of herbicides and 128, 870 liters of insecticides are being distributed to beneficiaries, he said.

The region expects to reap 47. 8 million quintals of agricultural outputs the land that would be developed during the Meher season, he said.

http://www.waltainfo.com/index.php/explore/13925-tigray-to-cultivate-over-a-million-hct-of-land-in-meher

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Ethiopia’s Electric Power Export Growing

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Ethiopia’s effort to create power integration in Eastern Africa consolidates its economic benefits and the capacity to generate power, according to Ministry of Water, Irrigation and Energy.

Water, Irrigation and Energy Minister Alemayehu Tegenu told ENA that the power integration not only strengthens the relations among the countries, but also increases the foreign currency earning of Ethiopia.

As a result, the country has earned over 32 million USD during the past nine months, the minister disclosed.

The mega power projects Ethiopia has been building and the growing power demand of the countries in the region shows that the benefits Ethiopia gets from those would grow continuously, Alemayehu elaborated.

Beyond economic benefits, the power integration effort would have pivotal role in stabilizing the region and in strengthening the political and social relationships of the countries, he said.

Due to the above considerations, Ethiopia is contributing its part for the strengthening of power integration, he added.

Currently, Ethiopia provides 100 megawatts electricity to Sudan and up to 50 megawatts to Djibouti.

Electric power transmission lines with the capacity of carrying 2000 megawatts are also being extended to Kenya to supply power to the country.

The minister added that beyond East Africa, Ethiopia has been undertaking preparatory works to export electricity to Yemen via Djibouti, and electric power will soon be supplied to South Sudan and Somalia.

The electric power export does not affect the domestic electric supply, the minister stressed, adding that there is sufficient power.

He attributed the current power interruption to network problem in addition to the growing demand for power.

The minister further noted that Ethiopia produces 2,000 megawatts of electricity and that can definitely meet the current demand of the country.

According to Alemayehu, the current problem is caused by defects on transformers and inability of electric cables to carry loads as well as other factors.

To alleviate the problem, the ministry, in collaboration with Metals and Engineering Corporation (MetEC), is producing from 30 to 35 transformers in a day, the minister stated.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2292:ethiopia’s-electric-power-export-growing&Itemid=260

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Civil service reform bearing fruit, says ministry

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The civil service reform programs which are being implemented are beginning to bear fruits, Ministry of Civil Service (MoSC) said.

Various types of reform programs such as business process reengineering (BPR), Balanced Scorecard (BSC), Citizen’s Charter and Kaizen philosophy have been implemented with a view to improve public service delivery.

“There are improvements in service delivery and productivity of civil servants,” Mohammed Seid, communications and external relations director at MoSC, told WIC.

“Public satisfaction is also growing,” he said adding that there remain works to fully implement all the civil service reform programs.

“The progress the country has achieved in all fronts is one testimony to the success of the civil service reform being programs implemented,” Mohammed said.

However, he said the ministry will strengthen its effort and build the capacity of civil servants and better engage the general public to further improve public service.

http://www.waltainfo.com/index.php/explore/13914-civil-service-reform-bearing-fruit-says-ministry

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Ethiopia, Nigeria sign agreements to deepen all-rounded cooperation 

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Prime Minister Hailemariam Desalegn and Nigerian President Goodluck Jonathan jointly announced (June 25) that both Ethiopia and Nigeria had agreed to comprehensively deepen mutual cooperation in the fields of trade and investment, tourism and agriculture as well as security.

The two sides signed a memorandum of understanding on diplomatic training and agricultural cooperation.

Both leaders also recognized the necessity to jointly promote development and prosperity of their peoples through the consolidation of bilateral ties in the priority areas including trade, investments, agriculture and air transportation, the establishment of enabling factors for cooperation and the re-activation of investment friendly regulatory frameworks.

To realize sustainable economic growth and development, both sides committed to remain seized to extend their support to the promotion of regional and global peace and security. They also denounced all forms of terrorism and extremism as well as this growing threat to African countries.

During a joint press conference with President Jonathan, Prime Minister Hailemariam said that terrorism was “a global phenomenon that has to be tackled together in unison. It should not be left to this or that region or this or that country. We have to bear in mind the genesis of this terrorism.” He also noted that the increasing surge of suicide bombing by terrorists was a testimony for their elimination from their strongholds, stressing that much remained to sustain the momentum on the fight against terrorism.

He detailed that the East African region had resolutely fought terrorism attaching special importance to a comprehensive cooperation over the last decade, adding that the cooperative security mechanism had considerably incapacitated Al Shabab insurgents. He said that the current situation pressed Al Shabab insurgents to resort to suicide bombing, noting that this cooperative security of the region and the ideological bankruptcy of the threat accelerated the fading away of terrorism and extremism. He said that terrorism or the killing of humanity “has nothing to do with religion or political ambition.”

He suggested that countries vulnerable to terrorist attacks, including Nigeria and Ethiopia, must lead the process of combating the indiscriminate killing of humanity and remain committed to continue the fight against terrorism until its stoppage.

With regard to industrialization, the Prime Minister stressed the importance of sustained cooperation and support in the agenda of the resurgence of African industrialization to take root in the continent, adding that this cautious move would save Africa from becoming “a dumping site for foreign producers.

”President Jonathan on his part stated that Nigeria had a lot to draw lessons from Ethiopia’s experience in the fight against terrorism.

He recognized that Ethiopia-Nigeria economic ties had not enjoyed steady developments, stressing that the urgency of strengthening cooperation in the areas of agriculture, power and commerce would enable the two nations to generate jobs for youths and advance the cause of development.

He also appreciated Ethiopia’s commendable efforts in the development of power generation, agriculture, commerce and industry.

http://www.mfa.gov.et/news/more.php?newsid=3265

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President Mulatu: close engagement of Chinese business people expedites win-win development

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FDRE President Dr. Mulatu Teshome held discussions (June 26) with the business delegation of the People’s Republic of China headed by Wang Chuchang, Head of Chinese Cultural Academy, at the National Palace.

Discussions focused on ways to scale up the already existing economic ties to a new high through the close engagement of the two friendly countries’ business communities.

President Mulatu stressed that the proactive engagement and participation of the Chinese business community in the fields of medicine, mining and manufacturing would inject new impetus to further consolidate Ethiopia-China comprehensive partnership to achieve mutual benefits.

He also noted that establishing Chemical and Medical Equipment Producing industries would offer enormous profits.

The Chinese business delegation promised to bring their enterprises to Ethiopia in order to engage in the selected priority areas of investment including mining, manufacturing and establishing Chemical and Medical Equipment Producing industries in Ethiopia.

http://www.mfa.gov.et/news/more.php?newsid=3266

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Authority to construct road to interconnect Omo-Kuraz sugar project

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The Ethiopian Roads Authority on Wednesday signed contract agreement amounting to 2.5 billion Birr with the Chinese

Communications Construction Company (CCCC) for construction of 102 km road on Omo River.

The road project aimed at linking the six sugar factories under the Omo-Kuraz project with each other and main roads, Authority Director General Zaid Woldegebriel said.

The construction of the road to be finalized in three years will be carried out in two phases. The first phase that covers 41.7km will run from the Omo no-6 junction to no-4.

Construction of a 200m bridge over the Omo River will be undertaken in this phase of the project expected to consume 108 billion birr.

Up on completion within three years, the road will link people living in both sides of the river and the sugar factories with each other, Zaid said.

The second phase of the project that covers 60.6 will be carried out with an outlay of over 1.4 billion Birr. Construction of 157 small bridges will be carried out in this phase of the project, according to Zaid.

According to ENA, this road will interconnect the Omo no-4 and no-6 sugar factories with Hana- Jinka and Sawla Maji main roads.

http://www.waltainfo.com/index.php/explore/13927-authority-to-construct-road-to-interconnect-omo-kuraz-sugar-project

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Omo Kuraz, 3 universities sign MoU

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The Omo Kuraz sugar development project has recently signed a Memorandum of Understanding (MoU) with 3 universities based in the SNNP Regional State.

The agreement was signed with Hawassa, Arba Minch and Mizan Tepi universities, general manager of Omo Kuraz sugar development project, Nuredin Asaro told WIC.

According to the agreement, the universities will produce skilled manpower as well as provide short and long-term training for employees of the project, he said.

An agreement was also signed with Jinka, Bonga, Wolaita and Mizan Tepi technical and vocational colleges, Nuredin added.

He said the colleges have agreed to train middle-level manpower equipped with the necessary skills in sugar development.

According to Nuredin, Arba Minch University is undertaking preparations to launch masters program in sugarcane development, while Semera University eyes to become a center of excellence in the same area.

http://www.waltainfo.com/index.php/explore/13924-omo-kuraz-3-universities-sign-mou

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Crown Paints To Spend $8m On Setting Up Ethiopia Plant

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VENTURES AFRICA – Nairobi Stock Exchange (NSE)-listed firm, Crown Paints Kenya Ltd has proposed a Sh701 million ($8 million) factory for Ethiopia in 2015, following commencement of production at its Tanzania plant in January.

“We want to establish a large plant in Ethiopia,” said Rakesh Rao, Crown Paints’ Group Chief Executive as the company expands its operations in the East African market.

Rao noted that the Ethiopian market was special. The company had therefore opened discussions with the government as it continues consolidating its presence in East Africa. The paint maker also has plants in Arusha, Tanzania and Kisumu, Kenya.

Crown Paints described its Sh300 million ($3.4 million) investment in the Tanzanian factory as part of its strategy to increase regional market income and reduce its reliance on its Kenya, a market accounting for 92 percent of the paint maker’s total sales.

The new Tanzanian plant, which will be funded through debt, will be fitted with the capacity to produce one million litres of paint per month.

The company will from August spend Sh263 ($3 million) to establish a manufacturing plant in Kisumu as a supply base of economy grade paints for the Great Lakes market.

http://www.ventures-africa.com/2014/06/crown-paints-to-spend-8m-on-setting-up-ethiopia-plant/

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Authority signs agreement to build 20km roads with over 1 bln birr

Addis Ababa City Roads Authority (AACRA) on Thursday signed contract agreements with 5 contractors for the construction of 20km asphalt roads at a cost of more than 1.1 billion birr.
AACRA signed the agreement with CRBC Addis Engineering plc, Yemane Girmay General Contractor, Macro General Contractor Trading Plc, Aser Construction plc and Melcon Construction.Engineer Fekade Haile, general manager of AACRA and heads of the contractors signed the agreement at a ceremony held at the authority’s head office.
Engineer Fekade on the occasion said the 20km asphalt roads to be built by the authority would link Arabsa, Yeka Abado and Tulu Dimtu condominium sites with main roads.The cost for the construction of the roads will be covered by the Addis Ababa City Administration, he said.
According to the manager, the contractors will begin the construction of the roads within the coming 15 days and finalize them on February 2015.

The construction of the roads would create 10,000 jobs, it was learnt.

http://www.waltainfo.com/index.php/explore/13936-authority-signs-agreement-to-build-20km-roads-with-over-1-bln-birr

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Tullow Oil To Begin Kenyan Oil Production In 2017

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VENTURES AFRICA – Tullow oil has placed a 2017 time frame, in line with the government’s target, to commence oil production after describing the oil as that of a “high quality and of international marketable standard.”

“The government of Kenya is looking forward to have its first oil in 2017,” said Tullow’s CEO, Paul McDade.

Having discovered eight commercially viable wells in Kenya since 2012, the British company can sell part of its stake in Kenya oil blocks to potential buyers from Europe and eastern part of the world.

To meet its 2017 target, the company has to construct a 1,330km underground heated pipeline between Holma in Uganda and Lamu through Lokichar in Kenya. This will ease transportation of Kenyan and Ugandan oil through a single pipeline.

“The quality of oil Uganda and Kenya has are compatible and can pass through the same pipeline” said Tullow vice president, for south and east Africa, Gary Thomson.

President Uhuru Kenyatta has set this plan rolling by inviting locals to buy a stake in the pipeline in other to get the full value of the infrastructure.

“We have started working with 50km corridor which will narrow to 2km and later 200m” Mr Thomson disclosed.

http://www.ventures-africa.com/2014/06/tullow-oil-to-begin-kenyan-oil-production-in-2017/

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Ethiopian-born Canadian entrepreneur Nejib Abba Biya was hoping to operate a mining facility in his homeland, but his plans were thwarted by one thing — a lack of energy to power the mine. That is when he trained his sights on geothermal energy as a reliable, renewable power source.

He is now an architect of a deal supported by the U.S. Government to build and operate the largest geothermal facility in Africa. Once completed, the project will generate enough electricity to power 5 million homes.

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In 2008, when the price of potash—a type of salt and key component of manufactured fertilizers—began to skyrocket around the world, Nejib Abba Biya, an Ethiopian-born Canadian entrepreneur, explored the possibilities of opening a mine to harvest this product in his native country.

When his company engineers conducted a feasibility study in 2009, however, they discovered that a power shortage would prevent the project from moving forward. That is when Nejib trained his sights on geothermal energy as a reliable, renewable power source. Ethiopia has vast, yet underutilized, reserves not only of geothermal energy, but natural gas as well.

“Wind farms work in the evening when there is wind. Solar works during the day. Hydropower plants work effectively when you have rain and the rivers are full,” said Nejib, who has founded and run several mining and technology companies in Canada and Africa. “But a geothermal energy plant works all the time.”

Natural geothermal steam (fumarole) rises from the ground in a ravine within the Corbetti Caldera.

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Fast forward five years and Nejib is now an architect of a deal between Reykjavik Geothermal, a U.S.-Icelandic private developer, and the Government of Ethiopia to build and operate the largest geothermal facility in Africa. The 1,000-megawatt facility will be built by Reykjavik Geothermal in partnership with Rift Valley Geothermal, a local business where Nejib is the CEO.

Once completed, the project will generate enough electricity to power 5 million homes. If used exclusively for residential use, this would result in enough electricity for 30 million people who currently do not have access to power. The initial agreement to negotiate a deal was announced this past September. Currently, the Government of Ethiopia and Reykjavik Geothermal are conducting final negotiations.

“This project will set a new benchmark for large-scale projects financed by the private sector and will help Ethiopia unleash its full energy potential,” said Reykjavik Geothermal CEO Gudmunder Thoroddsson.

This initial project agreement marks a milestone for Power Africa, an initiative announced in June 2013 by U.S. President Barack Obama that aims to leverage U.S. expertise in energy technologies, private sector transactions, and policy and regulatory reform to support sub-Saharan African nations’ energy plans. Power Africa facilitates complex energy transactions like the Corbetti project by providing technical assistance or financing.

In Ethiopia alone, two-thirds of its citizens have no electricity, and with an annual per capita income of just $471, very few can afford a generator. For the average person, that means cooking food on an open fire and not having light for their children to study.

What Is Geothermal Energy?

Heat is a form of energy, and geothermal energy is comprised of the heat from within the earth. Most resources of geothermal energy are in active volcanic regions. The energy ranges from hot springs found just below the surface to the extremely high temperatures of molten rock called magma. Generally, geothermal power is produced by pumping water into the earth’s crust and then conveying the heated water or steam back to the surface. Geothermal energy has the potential to play a significant role in moving the world toward a cleaner, more sustainable energy system.

Opening the Door to Private Investment

“In Africa, one of the biggest hurdles to economic development is the lack of access to electricity, something that Power Africa is addressing,” said USAID/Ethiopia Mission Director Dennis Weller. “It makes perfect sense that Ethiopia is one of the Power Africa countries. With its abundant renewable energy resources and its geographic location, Ethiopia can export power to neighboring countries to help reduce poverty and expand economic growth throughout the region.”

Power Africa strives to double the number of people with access to power in sub-Saharan Africa by unlocking the substantial wind, solar, hydropower, natural gas and geothermal resources. For the first five years, the U.S. Government has committed more than $7 billion in financial support and loan guarantees in addition to the coordinated support and expertise of 12 U.S. Government agencies. Power Africa is also targeting Kenya, Tanzania, Nigeria, Ghana and Liberia.

The geothermal project in Ethiopia is exactly the type of project envisioned by the initiative.

Located at Corbetti Caldera (a caldera is a volcanic crater) in the central Rift Valley of Ethiopia, the $4 billion project will be built in two stages—the first 500 megawatts should be operational by 2018 and an additional 500 megawatts by 2021. The site is located approximately 240 kilometers south of the nation’s capital, Addis Ababa.

Throughout Africa, too few energy projects make it past the initial planning stage. Even though all of the key components are there—energy resources, technology, expertise, high demand—the investments that would bring all of these together rarely come to fruition.

“Early on, Power Africa identified Corbetti as a priority transaction that could showcase the initiative’s innovative model: combining private sector expertise and investment with U.S. Government tools to mitigate risk and build local government expertise,” added Weller.

USAID is working with Government of Ethiopia officials to adopt industry standards that will help attract investors, reduce the tremendous risk that comes with a massive project like this, and lead to other power projects long after Power Africa investment ends.

Nejib says that private investors and commercial lenders are expected to be the major financial sources for the Corbetti project. “Obama’s Power Africa initiative facilitates the process of making funds available from U.S. financial institutions, but other banks will be involved in the project,” he added.

“The Corbetti agreement is a significant signal to the private sector and international investors that the Ethiopian energy sector is looking at new ways to meet its power requirements. This is also a critical objective of Power Africa: working in collaboration with African governments to institute appropriate reforms to create the right enabling environment for private sector activities,” said Weller. “The Corbetti deal has blown the doors open for private investment in Ethiopia’s power sector.”

Nejib understands what the project means for his homeland. “Ethiopia is one of the fastest growing economies in the world. We have the potential. If we concentrate and work hard, we can achieve much more than this. We are talking about becoming a middle-income country, but we can go further if we utilize our resources,” he said.

Potential for Growth in Energy

The Corbetti project will be part of the Ethiopian Government’s plan to generate 30,000 megawatts of electric power from renewable resources. According to Thorleifur Finnsson, the head of project development for Reykjavik Geothermal, the project will be one of the lowest cost and most technologically advanced geothermal facilities in the world. Electricity generated from the new power plant will be used for domestic consumption and exported to neighboring countries.

The Ethiopian Government is negotiating a 25-year deal to buy energy from the Corbetti plant. “This project will make Ethiopia’s power generation more reliable, secure, flexible, and competitive to industries, hydro processing and other service and commercial sector users,” said Mihret Debebe, former CEO of the Ethiopian Electric Power Corporation.

The plant will employ hundreds of people for the construction phase and several hundred full-time staff after completion. Reykjavik Geothermal will initially drill several kilometers below the earth’s surface. This requires massive amounts of water and the company is prepared to install pipes to bring water 15 kilometers from Lake Awasa. Excess water will be available to the community—water that is now far away.

“We will endeavor to give hope and tangible assistance to the immediate community,” said Nejib.

For residents living in the Caldera, their only sources of water are Lake Awasa and a small amount of condensation from steam dripping off tree and plant roots.

Mohammed Dasse lives with his large family in the Caldera. Every three days, a family member takes 12 hours to travel 15 kilometers to Lake Awasa, gather water, and journey the 15 kilometers back home.

Badhasso Dubee is also one of 10,000 people living in the Corbetti Caldera who could benefit from the project. A farmer with three wives and 30 children, he said, “I have never had electricity in my life. Nobody in Corbetti has it. We cook with wood because we can’t get gas, but the wood gives off smoke that is dangerous to breathe. At night, there is little we can do because there is no light.”

Both Mohammed and Badhasso say they are looking forward to benefiting from the Corbetti project.

Nejib Abba Biya, left, talks with Reykjavik Geothermal CEO Gudmunder Thoroddsson and U.S. Ambassador to Ethiopia Patricia Haslach about the new geothermal agreement with the Ethiopian Electric Power Corporation.

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Will Electricity Generate an Economic Renaissance?

“Ethiopia is blessed with all sources of renewable energy sources, but, geothermal is by far the one that could also create spin-off industries such as manufacturing for its parts, tourism and hospitality, cosmetic and skin care pharmaceuticals and so forth, as we witnessed in Iceland,” said Nejib. “This geothermal project will create several hundred jobs, including high skilled jobs. Last but not least, the transfer of skill and knowledge from this project could propel further growth of the industry.”

Clean energy, like that from the Corbetti project, can power Ethiopia’s growth by bringing new businesses, new jobs and improving quality of life, while leapfrogging old generation technologies that pollute the environment, harm public health and contribute to global warming.

“To become a middle-income country, we must develop sufficient and sustainable energy from renewable sources, for it is impossible to bring about growth without energy,” said Ethiopian Prime Minister Hailemariam Desalegn in October 2013 while inaugurating the 120-megawatt Ashegoda wind farm project in northern Ethiopia.

 

Sourced here  http://www.usaid.gov/news-information/frontlines/energy-infrastructure/making-powerful-impact-ethiopia

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President Obiang Asks for Greater Investment in Agricultural Sector

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Equatorial Guinea’s President, Obiang Nguema Mbasogo said that Africa should reorient itself to ensure its independence and security of African states through the safe production of its own consumer goods.

“Africa cannot be content to continue with the current dependence on the economies of the developed world. Africa is sailing upstream against a dependency that prevents them from moving toward sustainable development. Africa should rethink its relationship with the developed world to reduce as far as possible the gap that prevents access to development,” said Obiang.

“The development of agriculture can greatly reduce this dependence,” he said. “Africa can ensure food security and significantly reduce hunger in our countries. Africa should heavily invest in agricultural development to transform itself in order to accelerate growth to increase production and productivity,” said Obiang.

According to a press release African Press Organization sent to WIC, President Obiang proposed to the African Union the establishment of a program that focuses on the organization and exploitation of markets to promote trade and food security and to eradicate hunger, malnutrition and rural poverty. This will also reinforce the fight against climate change and agriculture.

He said that Equatorial Guinea is already investing in its agricultural sector. “As part of our diversification plan, Equatorial Guinea currently focuses on [agricultural] production to achieve these goals. It is imperative to ensure the security and stability of our states, since agriculture is the most vulnerable sector in times of instability, war and terrorism.” said Obiang

“It’s no coincidence that this session focuses on the issue of agriculture and food security in Africa. We cannot talk about the development of Africa if there is no agricultural development to ensure food security and avoid lifelong dependence on imports of consumer products.”

He noted that Africa counts on the support of organizations focused on agriculture and ways to improve the sector, and urged continued support for those organizations.

“The African Union must recognize and financially support the structures of non-governmental organizations, businesses and institutions created in Africa to support agriculture, such as the New Partnership for Africa’s Development (NEPAD).”

Obiang linked democratic and economic development. “Africa must contribute to a democratic development aimed at achieving economic development of society and the welfare of its citizens. It must be a democracy that seeks conflict reduction, he said.”

Obiang also urged his fellow Africans to prioritize South-South cooperation, a cooperation that respects the principles of equality.
“The last decade has marked considerable advancements of the African states. Many of them aspire to economic emergence in the near future. Nonetheless, the continent continues to be a victim of endemic diseases and insecurity that require a unified solution of the states.”

Obiang said it was a great honor for Equatorial Guinea to host the 23rd African Union Summit at “a moment that is crucial for the world nations as they struggle to find solutions to economic crises, security, hunger and poverty, and climate change that affect the world.” He said,  “The participation of the heads of state and numerous guests in this summit shows the interest and commitment that Africa and its partners have to find solutions to current issues.”

A session on agriculture and food security under the slogan “Transforming Africa’s Agriculture, for Shared Prosperity and Improved livelihoods, through Harnessing Opportunities” was held in the afternoon.

http://www.waltainfo.com/index.php/editors-pick/13967-president-obiang-asks-for-greater-investment-in-agricultural-sector

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Bank Loan Approved for Ethiopia-Djibouti Link Road

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The road is part of the fourth Road Sector Development Program, which has been ongoing since July 2010

Downtown Dire Dawa

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The Budget & Finance Standing Committee tabled the bill for the loan approval to asphalt the 210km gravel road to the committee on June 2, 2014.  The standing committee discussed the bill with three experts from the Ministry of Finance & Economic Development (MoFED) and one expert from the Ethiopian Roads Authority (ERA) on June 12, 2014.

The road, which will have a 15m wide carriageway in the town section and 1Om carriageway in the rural section, is to be constructed by the CGC Overseas Construction Group LTD (CGCOC) – a Chinese company which has been operating in Ethiopia since 2003. Previous CGC projects include a 22km asphalt road from Chole-Magna in the Arsi Zone of Oromia and the Dodola Junction-Goba and Dera-Gololcha Mechara roads, both in Oromia.

“The company will construct the road because it came with the deal of finance from the Chinese bank,” said Samson Wondimu, communications head at the ERA.

The consultant is yet to be selected.

The road will strengthen the economic linkage between Ethiopia and Djibouti, and will help to transport raw materials and finished products from the industrial zone to be constructed at Dire Dawa. It will also simplify the traffic flow of the route, according to Samson.

Construction will begin in September 2014. The loan, payable in 20 years, has a two percent interest and a seven year grace period.

This road is part of the fourth Road Sector Development Program (RSDP IV), which has rehabilitated, upgraded, constructed and maintained 41,664km of roads since it was implemented in July 2010 up to June 2013, at a cost of 81.8 billion Br, of which 60.6 billion Br was on federal roads. Ethiopia’s road density has increased from 24km in 1997 to 78Km in 2013, with total roads growing from 26,550km to 85,966Km during the same period.

http://addisfortune.net/articles/bank-loan-approved-for-ethiopia-djibouti-link-road/

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House Ratifies 691 Million USD Loan Agreements

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The House of People’s Representative yesterday ratified six loan agreements for a total of 691 million USD credit signed with various international organizations.

The credit accords were signed to finance road projects, to expand basic infrastructures in urban areas and job creation.

The first agreement the parliament ratified was the 380 million USD credit accord signed with the International Development Association to enhance industrial development.

The other agreement ratified by the parliament was the 187 million USD credit secured from the China import- export bank to finance the Dire Dawa-Dewale road at the eastern part of the country.

The 100 million USD loan signed with the Korea Import- Export Bank for construction of the Mojjo-Hawassa Road, is another agreement ratified yesterday.

The parliament has also ratified the 33 million USD loan secured from the OPEC Fund and Arab Bank to finance the second phase of the Arbereket-Gelemso Micheta road project.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2287:house-ratifies-691-million-usd-loan-agreements&Itemid=219

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Oilseed overtakes coffee as Ethiopia’s top export earner

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Export of oilseeds has become the biggest foreign exchange earner for Ethiopia overtaking coffee, the country’s number one export item for decades.
A ten-month performance report obtained from the Ministry of Trade (MoT) reveals that Ethiopia obtained just under 585 million USD from export of oilseeds, knocking coffee off its perch for the first time. In contrast, coffee generated 489.28 million USD during the same period.

The country exported over 404 thousand tons of oilseeds during the first ten months of the budget year, a rise of over 10 per cent compared to the same period last year. The revenue obtained also showed a growth of 52 per cent compared to the same period last year.

The achievement is over 95 per cent of the revenue the ministry projected to obtain during the period.
However, the picture is rather gloomy for coffee. The ministry projected to obtain 822.08 million USD during the first ten months but achieved about 60 per cent of the target.

When compared to the previous budget year, export performance of coffee in the first ten months of this budget year showed a decline of 8.7 per cent and 15 per cent in amount exported and revenue generated, respectively.
The overall export performance saw the country earn 2.6 billion USD during the ten months of the budget year, registering a growth of 4.8 per cent from last year.

http://www.waltainfo.com/index.php/explore/13969-oilseed-overtakes-coffee-as-ethiopias-top-export-earner

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Ethiopia: Africa’s Third Largest Recipient of Foreign Direct Investment

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The report, released last Tuesday, also indicates the FDI flows to southern Africa almost doubled

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Brunno Casella of UNCTAD, (right) with James Wakiaga, economic advisor at UNDP Ethiopia, on launching the UNCTAD World Investment Report on June 24, 2014.

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The World Investment Report released on Tuesday, June 24, 2014, revealed that Ethiopia was the third largest recipient of foreign direct investment (FDI) in Africa in 2013, with a 240pc increase from the amount in 2012. The country has also registered a significant increase in their Foreign Direct Investment (FDI) stock – the amount of investment from aboard held within the economy.

The report released last Tuesday, June 24, 2014, by the economic think tank, United Nations Conference on Trade & Development (UNCTAD), stated that the FDI inflow to the country had reached 953 million dollars in 2014, up from the 279 million dollars it was in the previous year.

Its foreign direct investments inward stock also reached close to 6.1 billion dollars in 2013, up from 941 million dollars in 2012.

The net sales value of cross border merger and acquisition (M & A) in the country has also increased by more than double to 366 million dollar in 2013, from 146 million dollars in 2012.

Though the amount of FDI inflow in the form of M & A has increased a considerable amount in the year, the major part of the country’s investment inflow comes from green field projects, according to the report.

The country was a destination for foreign investment projects worth 4.5 billion dollars, which is a dramatic performance increase from the 441 million dollar value of green field investment projects the country hosted in 2012.

On the regional basis in Africa, which increases its share of reception by five percent, the East and the South showed a significant increase as recipients of investments from foreign sources. The flows to Southern Africa almost doubled to 13 billion dollars, mainly due to record high flows to South Africa and Mozambique, while the inflows to Ethiopia and Kenya lifted the regions FDI by 15pc to 6.2 billion dollars, the report finds.

“Ethiopian industrial strategy may attract Asian capital to develop its manufacturing base,” it reads.

Investment in light manufacturing from China, Turkey and India has the major share in the increase of the amount of foreign investment into Ethiopia.

With a continuing significant increase of the inflow this year, the robust economic growth and the growing middle class of Ethiopia, has contributed to the attractiveness of Ethiopia as a preferred destination of cross boarder investors, said Bruno Casella from UNCTAD, who presented the major findings of the report on Tuesday while announcing its official release.

“Ethiopia is closer to FDI than other parts of Africa,” he said.

Two days after the release of the UNCTAD’s report, the International Monetary Fund (IMF) Staff Mission on the 2014 Article IV Consultation with Ethiopia has also released a statement confirming the findings of the world investment report.

“Strong external loan and higher foreign direct investment allowed for a modest increase in gross international reserves,” says the statement, which also predicts the real gross domestic product (GDP) of the country between eight and 8.5pc for 2013/14 and 2014/15.

The current 1.5 trillion global FDI inflows is projected to rise to 1.6 trillion dollars in 2014, 1.75 trillion in 2015 and 1.85 trillion in 2015, according to the report.

http://addisfortune.net/articles/ethiopia-africas-third-largest-recipient-of-foreign-direct-investment/

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Institute to Equip Market with 100,000 Trained Manpower

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The Ethiopian Textile Industry Development Institute (ETDI) announced it is preparing to supply up to 100,000 trained personnel by the coming year.

According to Bantihun Gesesse, ETDI’s Public Relations and Communication Director, there is an increase in the number of investors that are engaging in the textile industry. He furthered, the figure today stands today at 130 textile factories.

Explaining the need for the trained personnel the communication director said the textile factories need sufficient well trained manpower. To achieve this technical and vocational institutions are supplying the market with manpower for facilities that are in their localities.

Bantihun further noted there are 145 instructors of technical and vocational institutes that were trained as trainer of trainers. In addition to this over 1,360 received a basic tailoring and other types of training.

According to Bantihun, during the past 11 months of the current fiscal year Ethiopia has received total revenue of U.S $ 103 Million from exporting textile and garments. He added this shoes an increase of 10 percent when compared to the same period of last year.

http://www.2merkato.com/news/alerts/3086-institute-to-equip-market-with-100000-trained-manpower

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Nation to Establish Parks to Produce Value Added Agricultural Products

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The Ministry of  Industry announced that it is conducting an assessment to establish integrated agriculture and industry parks to produce value added agricultural products.

The State Minister, Dr. Mebratu Melese told ENA that the parks which will have industries will be established in main growing areas. The assessment is needed to identify areas that are main growers of cash crops and fruits and vegetables.

The industries will be established in areas that are main growers of sugarcane, fruits and vegetables, sesame and coffee, among others.

The parks are expected to be established in the coming budget year, he said, adding, it will be one of the priority areas in the second phase of the growth and transformation plan.

The assessment is being conducted in collaboration with the government of Italy and UNIDO.

Dr. Mebratu said it is important for Ethiopia to export value added agricultural products. Establishing companies which will engage in this area is fundamental in this regard.

Establishing integrated agriculture and industry parks, which include construction of industries, will help the country’s effort to export value added agricultural products. Establishing these is one of the measures taken by the government to promote the area.

The country is losing ‘huge’ amount of foreign currency because of the country’s dependence on only raw output export, he said.

The government is trying to fill this gap by establishing industries in main cash crop producing areas and promote private investment, Mebratu added.

Establishing such kind of industries near farms will help farmers get access to sustainable income source and industries get inputs sustainably.

The industries will also create jobs for local communities and infrastructure will be developed in those areas.

“Establishing the industries will have two benefits, first the farmers will have access to reliable and sustainable market. Second, the industries will produce value added products. More jobs and enterprises will also be established through time.”  he said.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2297:nation-to-establish-parks-to-produce-value-added-agricultural-products&Itemid=200

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Seven Sugar Factories to be Operational Next Year

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The Ethiopian Sugar Corporation announced that seven of the 10 sugar factories set to be planted during the five-year growth and transformation plan period will be fully operational at the end of coming fiscal year.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2296:seven-sugar-factories-to-be-operational-next-year&Itemid=200

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Indian meat processor to build plant in Ethiopia

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An Indian company with interests in food production, marine products, retail and pet foods will start construction of its meat processing and exporting plant in Ethiopia in the beginning of July.

http://www.daijiworld.com/news/news_disp.asp?n_id=244902

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Close to 22,500 Condos Handed Over to Addis Ababa Residents

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Government To Create Favorable Condition For Manufacturing Sector

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http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2313:govt-to-create-favorable-condition-for-manufacturing-sector&Itemid=260

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Wire, Cable Production Plant Commence Pilot Production

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The wire and cable production plant under the Ethiopian Power Engineering Industry (EPEI) has started pilot production, the Industry said.

During the trial period, the factory expects to produce 500 tons copper wires per annum, according to EPEI General Manager, Major Asefa Yohannes.

The factory was established in 2012 with 80 million Birr in Modjo town around 80km south west of Addis Ababa by the Metals Engineering Corporation.

The plant established with a bid to produce copper wires for transformers, electronic products and motors of generators.

Up on going fully operational, the factory will produce 2,500 tons copper wires annually thereby substitute the product the country has been importing.

According to the Manager, the factory will help to interconnect plants that produce transformer, cable and motor.

The plant produces wires with a diameter between o.7 to 2.5, in accordance with the local demand, Head of the Plant, Captain Waltanigus Tesfaw said.

The wire and cable production plant was established in September 2012 by the Metals and Engineering Corporation as part of the plan to lead industrialization in the country.

http://213.55.98.22/enae/index.php?option=com_k2&view=item&id=2311:wire-cable-production-plant-commence-pilot-production&Itemid=200

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Dangote signals shake-up with new cement plant plans

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Mr Aliko Dangote, the Nigerian tycoon behind the Dangote Cement. Photo/FILE 

By VICTOR JUMA

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Empowering communities saves women’s lives in Tigray, Ethiopia

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TIGRAY REGION, Ethiopia – Mitslal Giday has been working as a community mobilizer in the Tigray Region of northern Ethiopia for the past 20 years – and the last two have been some of the most exciting of her career, she says.

Two years ago, Mrs. Mitslal, leader of a volunteer network known as the Women’s Development Group, helped roll out the Maternal Death Surveillance and Response (MDSR) initiative, which undertakes community-level efforts to prevent maternal deaths. The programme is coordinated guided by the Regional Health Bureau, which UNFPA is a member of.

Mrs. Mitslal advises pregnant women in the women’s group to attend at least four antenatal check-ups and to give birth at a health centre, under the care of a skilled birth attendant.

When a woman is in labour, Mrs. Mitslal summons an ambulance, and if one is not available, she arranges for a ‘traditional ambulance’ – the community’s term for a stretcher – to transport the pregnant woman to a health facility.

Mrs. Mitslal works closely with Beruho Gebrezgi, a health extension worker, to promote safe motherhood. Together, they create a list of local pregnant women for the Hewone health post and the nearby health centre, which helps to closely monitor the provision of maternal health services.

Community-level data-gathering

When a woman does, tragically, die at home from a complication of pregnancy or childbirth, Ms. Mitslal and Ms. Beruho meet with her family and write a detailed account of the circumstances surrounding her death.

Health professionals at the Adi Godum Health Centre, which oversees the Hewone health post, are also dispatched to the scene to file a report of their own. The accounts are compared, signed and reported to the District Health Office.

Through this and other data-gathering processes, the MDSR initiative is generating local, real-time information on maternal mortality, improving officials’ understanding of the issue and informing future preventative efforts.

A steering committee at each level evaluates the system. “This has ensured the quality of and authenticity of the data gathered,” said Fisseha Ashebir of the Tigray Health Bureau.

Creating a culturally sensitive environment

Maternal death is on the decline.

In 2011, 217 women died per 100,000 live births in the Tigray Region. By contrast, in the last nine months of the current Ethiopian fiscal year, there were 89 deaths per 100,000 live births. And in some districts of the region, like the Hintalo Wajirat District, no maternal deaths have been registered this fiscal year, according to Tsegaye Tadesse, head of the District Health Office.

Contributing to this progress is the fact that pregnant women are increasingly delivering at health facilities.

To further encourage pregnant women to deliver under skilled care, health centres are providing more culturally sensitive environments. For example, women are allowed to eat porridge with relatives after giving birth, part of a local tradition. At health centres, makeshift kitchens with cooking utensils have become a common sight, and community members are contributing grain and other supplies in support of the initiative.

Skilled attendance at birth has reached 56 per cent – a few points shy of the 62 per cent national target for 2015 set by Ethiopia’s Health Sector Development Programme.

Challenges remain

Although there has been improvement, health facilities continue to require better medical equipment, reliable supplies and skilled professionals.

Maternal deaths continue to be undercounted and misclassified, and data are sometimes not readily available for reference. An attempt to digitize the information was undermined by persistent network problems.

Still, the tireless efforts of people like Mrs. Mitslal have shown that the tide of maternal deaths can be reversed – and that communities are the best place to start.

“The greatest success of the initiative lies in the strong ownership of the matter by the community,” emphasized Mr. Fisseha.

http://reliefweb.int/report/ethiopia/empowering-communities-saves-womens-lives-tigray-Ethiopia

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Nizhny Novgorod region Governor meets Consul of Ethiopia to Russia

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Nizhny Novgorod Governor Valery Shantsev had a meeting with the consul of the Republic of Ethiopia to Russia, Kasahun Dender Melese, on Tuesday, July 1. The parties agreed to cooperate.

“In 2013, the foreign trade turnover between the Nizhny Novgorod region and Ethiopia made up USD 288,000. The entire turnover – 100 percent – falls for exports,” said Valery Shantsev during the talks with the Ethiopian diplomat.

“The turnover is insignificant yet – one needs to expand cooperation. I know that you have an busy program of your visit – a roundtable meeting with representatives of the business sector, the discussion of education issues with rectors of our universities, a visit to the GAZ factory. Following the results of the visit, I am sure there will be opportunities to expand our cooperation,” the head of the Russian region said.

Kasahun Dender Melese said in turn that Ethiopia was planning to establish an honorary representative office in the Nizhny Novgorod region.

Valery Shantsev offered Ethiopia to participate in the international business summit to be held in September this year in the Nizhny Novgorod region.

The African republic in Russia intends to deliver coffee beans and flowers to Russia. At the same time, Nizhny Novgorod business has an opportunity to invest in the Ethiopian agriculture, electro-mechanical technology and railway infrastructure.

On September 10-12, 2014, the Nizhny Novgorod region will host the Third International Business Summit 2014. The summit is organized by the Government of the Nizhny Novgorod region, with the support of the Government of the Russian Federation. As the head of the region Valery Shantsev noted, this year, the forum will focus primarily on discussions of major investment projects, including the construction of a high-speed railroad.

http://english.pravda.ru/news/russia/02-07-2014/127944-nizhny_novgorod_ethiopia-0/

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Ethiopia, Russia sign cooperation agreement

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Ethiopia and Russia have signed an agreement which would enable them to cooperate in areas of agriculture and energy, according to Ministry of Foreign Affairs.
The 5th session of the Joint Commission established for the collaboration of the governments of Ethiopia and Russia in economy, science and technics was held from June 24-28 in Moscow.
According to the Office of the Spokesperson of the Ministry of Foreign Affairs, the joint commission evaluated the performance of the 4th meeting and explored new fields of cooperation.
The two countries subsequently signed an agreement that would enable them to further collaborate in areas of trade, economy, science and technique.
The Ethiopian delegation compose of representatives of 15 institutions was led by Alemayehu Teganu, Minister of Water, Irrigation and Energy. During its stay in Moscow, the delegation held talks with Russia’s Deputy Minister of Mine Resources and Ecology, Valery Pak.

http://www.waltainfo.com/index.php/explore/13990-ethiopia-russia-sign-cooperation-agreement

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Microsoft, Cojengo Develop App For African Livestock Healthcare

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VENTURES AFRICA- Cojengo, a technology company based in Scotland has partnered with Microsoft and its 4Afrika initiative to develop a mobile app that will allow Vets and farmers in East Africa diagnose livestock disease and provide suitable drugs for farm animals.

The VetAfrica app, which is designed as a decision support system for proficient farmers, animal health workers and veterinary professionals, gives users diagnostic advice on animal diseases as well as the most effective drugs for the ailment. It also helps farmers to record animal data, thereby addressing the challenges faced by livestock farmers in Africa.

“Working with Microsoft, the company has embraced and tapped into the mobile revolution sweeping Africa,” Scotland’s Deputy First Minister Nicola Sturgeon said.

“Cojengo is a shining example of a new generation of creative Scottish companies with the ambition and skills to create and grow successful businesses,” she added.

The App which has already undergone field testing will help to change the lives of farmers in Africa for the better.

Specifically, the app is now available to farmers in Kenya, Ethiopia, Uganda and Tanzania. Adopters of the app will be able to use the health solution through their mobile phones.

Of all the regions in Africa, East African countries, particularly Kenya and Tanzania, have been hailed for their quick adoption of digital and mobile technologies towards improving living standards.

http://www.ventures-africa.com/2014/07/microsoft-cojengo-develop-app-for-african-livestock-healthcare/

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Addis Ababa – Djibouti electric locomotives ordered

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A contract for CSR Zhuzhou to supply 35 electric locomotives for the future Addis Ababa – Djibouti standard gauge line was signed on June 19.

According to railwaygazette.com, delivery of the three passenger locomotives and 32 freight locos able to haul trains of up to 4,000 tonnes will begin in October 2015, ahead of the planned opening of the line in 2016.

CSR said the 7•2 MW locomotives would be based on proven technology, drawing on designs developed for South Africa and adapted for local conditions.

These include the 2 000 m altitude difference along the 850 km route, and the desert environment with strong sunlight and daytime temperatures of 50° C contrasting with cold nights.

http://www.waltainfo.com/index.php/editors-pick/13977-addis-ababa-djibouti-electric-locomotives-ordered

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Sourced here  http://www.brookings.edu/blogs/africa-in-focus/posts/2014/07/02-ethiopia-sovereign-credit-rating-foreign-investment-deressa-sy

Drake Bennett is a staff writer for Bloomberg Businessweek in New York.

By Drake Bennett  – July 03, 2014     Photographs by Daniel Shea for Bloomberg BusinessWeek

Robb Fraley, Monsanto’s chief technology officer

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Author – Paul Revel

The Africa Hotel Investment Forum (AHIF) recently announced it was moving its 2014 event to Addis Ababa. The organisation said the move was prompted by a “surge in interest from sponsors”, leading to a need for a bigger space. It now will be held at the Sheraton Addis(pictured, below right) on September 29-October 1.

This move is interesting, as it reflects growth in the country’s nascent MICE activities. The African Union Commission is also based in Addis, in the striking, 100m-tall AU Conference Centre complex, built and funded by the Chinese.

The United Nations Conference Centre has 1,200sqm of exhibition space, plus up to 20 meeting spaces, including auditoria for up to 800 delegates. International hotels with meetings facilities include Sheraton, Radisson Blu, Hilton and Intercontinental, plus there is a range of independent or locally branded properties. Marriott has two properties in the pipeline for Addis Ababa – a 104-unit Executive Apartments slated to open in 2015, and a 209-room Courtyard planned for 2016.

A growth in summits and conferences taking place in Ethiopia has prompted Ethiopian Airlines’ in-house tour operator, Ethiopian Holidays, to develop MICE services alongside its leisure products. The tour operator can capitalise on its leisure portfolio for MICE venues – such as the smart, well-appointed Haile Resort, owned by legendary Olympic gold medallist runner Haile Gebrselassie, and overlooking the spectacular Rift Valley lake Hawassa.

Other venues meeting international standards include the Kuriftu group’s Diplomat restaurant in Addis, its luxury lakeside spa resort at Debre-Zeit, 45km south of town, and in Ziway, Kuriftu’s excellent Wine House and Restaurant – in partnership with the nearby wine estate run by leading French vintner Castel.

The tour operator can also take advantage of Ethiopia’s world-class attractions. It boasts nine UNESCO World Heritage Sites, and national parks in diverse landscapes that range from dusty Rift Valley plains, to lush rainforests teeming with wildlife, to dramatic ‘Afro-alpine’ mountain peaks soaring to more than 4,500m.

Memorable destinations include the luxurious Bale Mountain Lodge eco-resort. With just eight guest rooms and cottages, it is hidden in the pristine cloud forests of the Bale Mountain National Park, and immersed in spectacular wildlife.

The only factor that restricts adding these attractions to MICE itineraries is distance and infrastructure: Ethiopia is a big country, and drives can be long and slow – however Ethiopian Airlines has an internal network of 18 destinations, so domestic air links can be an option.

If MICE activity is likely to reflect the wider business environment, then expect to see it grow in Ethiopia: GDP growth rate was 9.7 per cent in 2013, and there’s a lot of infrastructure investment both by government and foreign investors, particularly from China and India. Projects include major road-building schemes and a national rail network.

Ethiopian Airlines says this upward economic trejectory – in the country and more widely on the African continent  – is driving its own ambitious plans: Its ‘Vision 2025’ strategy, which it launched in 2010, aims for growth that will see $10 billion revenue and $1 billion profit by 2025.

Is it likely to achieve this? Well, IATA’s latest World Air Transport Statistics (WATS) report, for 2013, ranks Ethiopian as Africa’s largest carrier by revenue – over $2.3bn – and profit. The Star Alliance member took delivery of its seventh B787 Dreamliner in May, and says revenue has grown more than 530 per cent in a decade. So it’s probably fair to say, anything is possible.

ethiopianairlines.com

kurifturesortspa.com

haileresorts.com

balemountainlodge.com

Sourced here  http://buyingbusinesstravel.com/feature/0522721-destination-report-ethiopia-rising

Author: E.G. Woldegebriel

EJERE WOREDA, Ethiopia (Thomson Reuters Foundation) – Thirty years after the famine that killed more than a million people in Ethiopia and shocked the world into belated action, the country’s scientists and farmers are taking the fight against climate change and food insecurity down to the ground.

The famine was a product of both natural and human causes, but scientists at the state-owned national gene bank for seeds say that even at the time of the crisis they had identified a lack of multiple seed varieties adapted to changing weather conditions as a major factor in the failure of crops. 

That conviction has been acted on in the past few years through the establishment of community-based seed banks and training centres for farmers. The most recent one was inaugurated at the beginning of June in the farming locality of Ejere, in the centre of the Oromia region.

Regassa Feyissa, director of Ethio-Organic Seed Action (EOSA), an NGO that promotes agricultural biodiversity and seed security programmes, says a failed planting season used to be a death sentence for farming communities. The centralisation of the national gene bank in the 1980s led to inefficiency and a slow response to the hunger emergency, he believes.  

There are now 18 seed banks spread across Ethiopia’s three most populous states – Oromia, Amhara and Southern regions. They have been created by EOSA and the Ethiopian Institute of Biodiversity, which oversees the national gene bank and is partly funded by Norway. There are plans to expand into more areas of the country.

“Climate change…is a problem that’s complex and unpredictable,” said Feyissa. “We’re seeing an increase in heat, and a growing shift in the pattern of the seasons, which is confusing farmers.”

One of the lessons learned from the famine was that farmers needed more information and greater variety in the seeds they sow to cope with the effects of climate change, he added. For example, different varieties of sorghum can be planted at different times of the year to lessen the impact of climate variability.

Local seed banks will eventually enable farmers to boost their food security by practising sequential cropping rather than mono-cropping, Feyissa said.

Melaku Worede, who was head of the national gene bank during the 1984 famine, believes that developing specialised seed varieties should not just be a matter for scientists in laboratories.

It is essential to combine scientific knowledge with local farmers’ knowhow to meet their needs, giving communities ownership of the seed products, he argues, while acknowledging that this idea meets with scepticism from some local and international partners.

WOMEN COME OUT OF THE KITCHEN

Bayush Tsegaye of EOSA also sees the local seed banks as a way to ensure sustainable food security and democratise seed assets among the community.

Women and young people, who form the majority of the rural population, can only be included in rural economies if they’re given access to adapted seed varieties to plant on their plots, Tsegaye said.

“We’ve seen an increasing incidence of farmers selling their lands and moving to urban centres, and it tends to have a disproportionate psychological and economic effect on the young and women,” he added.

As well as providing seed varieties, the seed banks also serve as training centres for local farmers, including women, in beekeeping and horticulture, Feyissa explained.

Elsa Abate, a farmer from the northern region of Amhara, said having a local seed bank has allowed her community to plant seeds in more than one season without fear of crop failure. This frees up space and time for other activities, and has helped them diversify into poultry, livestock and vegetable gardening.

“We women used to not be visible outside of the kitchen, as we didn’t have the means and access to seed varieties,” said Abate, whose home province of Wollo was one of the epicentres of the 1984 famine.

That has now changed, enabling women like her to farm their own plots and get reliable harvests.

“The seedling process and knowhow is in our hands,” said Abate. “What we need to do and are doing is using the organic seedlings wisely. That will ensure…famine doesn’t happen on our watch.”

E.G. Woldegebriel is a journalist based in Addis Ababa with an interest in environmental issues.

Sourced here  http://www.trust.org/item/20140704110845-bjkc6/?source=fiTheWire