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Railway projects a priority in Ethiopia

http://constructionreviewonline.com/2015/06/ethiopian-railway-corporation/

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General Electric seeks to double Africa revenue to $10 billion in 5 years, eyes Nigeria and Ethiopia

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03 Jun 2015   Chris Spillane, Bloomberg

GENERAL Electric is seeking to more than double revenue from Africa to as much as $10 billion over the next five years as it targets power, health and locomotive opportunities in countries including Nigeria and Ethiopia.

“We’re bullish on Nigeria,” Thomas Konditi, GE’s president for transportation for Africa and South Africa chief executive officer, said in an interview on Wednesday. “We met with a couple of the incoming leadership and they’ve put rail right behind power. They don’t have mines as much, so you’re going to look for more general freight.”

Nigeria, Africa’s biggest economy, transports only 0.1% of its freight by rail and could boost the number of locomotives to as many as 500 engines from 25 now, Konditi said at the World Economic Forum in Cape Town.

The company, based in Fairfield, Connecticut, plans to resume talks with the new government in Nigeria on an agreement with the previous administration for 200 locomotives, he said. Nigerian President Muhammadu Buhari took office on May 29 after defeating Goodluck Jonathan in March elections.

While nine of the world’s 15 fastest-growing economies are in Africa, some countries are contending with a downturn in commodity prices, power cuts and political instability. Electricity shortages and a lack of infrastructure, including rail, are limiting growth and offer opportunities for investment.

Jeff Immelt, GE’s chief executive officer, has identified Africa as one of the company’s most important growth areas, with plans to invest $2 billion in the region by 2018 as well as doubling its workforce on the continent.

The Africa spending by GE will go into developing facilities, improving supply chains and for training workers, he said last year.

Ethiopia hospitals

GE’s African revenues will be more than $4 billion this year, led by Nigeria, Angola and South Africa, compared with about $1 billion in 2010, according to Konditi. The company could open a manufacturing facility in Nigeria if there is demand for more locomotives, he said.

“Five years from now, I don’t know why we shouldn’t be up to the 8 to 10 billion range,” Konditi said, referring to revenue from Africa in dollars.

GE’s sales from the Middle East and Africa of $15.6 billion last year were about 10.6% of the company’s total revenue.

Ethiopia, the continent’s second-most populous country after Nigeria, also offered investment opportunities, particularly in the health-care industry, he said.

“Ethiopia holds a lot of interest,” Konditi said. “We’re probably going to open a health-care assembly facility in Ethiopia,” as the government builds new hospitals, he said.

http://mgafrica.com/article/2015-06-03-general-electric-seeks-to-double-africa-revenue-to-10-billion-in-5-years-eyes-nigeria-and-Ethiopia/

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Three supply nations for buyers to watch: Ethiopia, Vietnam and Uruguay

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by Gill McShane

Ethiopia, Vietnam and Uruguay are just three emerging sources of supply to consider

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 John Giles, a market research consultant and the divisional director at Promar International, a leading UK-based agri food supply chain consulting firm, gives Produce Business UK a sneak peek of what to expect from his educational seminar about emerging future sources of supply for UK buyers at this week’s London Produce Show and Conference 2015 (LPS15)

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Your presentation at LPS15 will focus on a market analysis of three increasingly important potential sources of supply – Ethiopia, Vietnam and Uruguay. Why those three countries in particular?

John Giles (JG): The idea is to present something different. We all know probably quite a bit about the likes of Chile, Turkey, South Africa and Egypt as suppliers. I want to move away from the familiar suspects and look at lesser-known countries around the world as an educational guide.

Ethiopia, Vietnam and Uruguay are three deliberately-chosen countries of which people will have some sense, but probably won’t know a great deal, yet they are becoming more influential and important. They can all produce a wide range of produce – a combination of fruits and vegetables – they are known for some products and some participation in international markets.

My objective is to give some insight into these countries as potential exporters or as in-country suppliers.

Why do you feel UK buyers need to take notice of these three countries now?

JG: At any forward-thinking produce company part of the role as a buyer is to be well informed about current sources of supply but also about future sources. You should be looking at what is happening in new areas and asking what is their potential.

If you look back in history, developing a modern fresh produce industry doesn’t happen overnight. Some 20 years ago Chile was only just coming on the scene and now it’s a firmly established supplier. Morocco, Thailand and Turkey are other good examples.

Ethiopia, Vietnam and Uruguay are just three interesting sources. Their fruit and vegetable sectors have grown quite significantly in the last 10 years. They’ve all shown what they can do in various products and they are all improving rapidly. In all three countries, the best of the best are already very good.

Over the next five to 10 years I’d expect more businesses in these countries to master the skills that international buyers are looking for, whether that’s the technical know-how, the commercial prowess or the accreditations required. They are only going to continue to get better and be more successful. Buyers should be considering them now.

Tell us more about Ethiopia. Why should this East African nation in particular pique buyers’ interest?

JG: Ethiopia will be remembered for a lot of the wrong reasons and while the images don’t fade easily, we mustn’t get trapped into that way of thinking. It’s a very different country to what it was 30, 20 and even 10 years ago. The reality is that the horticulture industry is now booming and it’s becoming increasingly impressive. Ethiopia is the fourth-largest exporter of cut flowers after the Netherlands, Kenya and India, and a growing exporter of vegetables. Just 10 years ago, you wouldn’t have dreamt of that scenario.

What has happened to change things?

JG: Ethiopia has had a sustained period of economic growth – 5-10% per annum – and its economy is booming [it’s the largest economy by GDP in East Africa and Central Africa]. There’s a population of over 90 million people [it’s the most populous landlocked country in the world and the second-most populated nation on the African continent]. There are movements towards democracy, like we’ve seen in Nigeria, and the politics are modifying.

Ethiopia is essentially still a poor country, but it has a massive aspiration. It’s seeking to become a middle-income country in two decades’ time. Turkey used to be a poor country, but now it’s a modern, thriving nation that’s a geographical hub with a per capita income of US$10,000 per year (£6,650). But Ethiopia can only achieve that with economic growth and political stability. Already, there’s been ambitious investment in the horticulture sector. Money is flooding in from China, the Middle East and India too. And there have been significant developments in infrastructure, such as at the airport and across both the road and rail systems.

As a landlocked country, is water availability an issue in Ethiopia? What obstacles does this present for produce?

JG: Certain parts of the country are well provided with water. In the Upper Awash Valley and south of Addis Ababa there are reservoirs and irrigation schemes. In other parts of the country, yes, water availability is more problematic. But Ethiopians are acutely aware of the problem. Saudi Arabia is investing in Ethiopian water projects, however they are short of water themselves. So, there needs to be massive investment in water and that may be helped through external finances.

What are the opportunities for the British produce buyers and, also, UK suppliers perhaps looking to extend their availability?

JG: Ethiopia wants to accelerate growth, so it needs expertise and technology to achieve that. There are opportunities for training, technology and management skills to be transferred to Ethiopia from other countries, and obviously for produce supply itself. We might see international produce companies setting up joint ventures in Ethiopia as a way of creating year-round supplies. British companies are already supplying polytunnels to the flowers companies and Ethiopian growers/exporters are also using British accreditation schemes.

What’s on offer in Ethiopia for buyers from the UK in particular?

JG: The UK is already an importer from Ethiopia, but the country plans to send a lot more fresh produce to western Europe. The UK will be a clear target market within that objective, so we are bound to see more Ethiopian produce arriving on our shores.

Moving onto Vietnam, what’s the scenario there?

JG: In reality, no one knows much about Vietnam. But it’s right at the heart of South East Asia and it has a fast-growing economy (one of the fastest in Asia). Following on from the Next Eleven, Vietnam is one of the CIVETS group of countries. These are six favoured emerging markets – Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa – in view of their diverse and dynamic economy and young, growing population. Vietnam’s population is currently over 90 million people and that’s expected to reach just under 100 million by 2020. So, it has a very fast-growing population base too, with a GDP per capita of US$2,200 at the moment.

What do you think are the produce prospects in Vietnam? Are we talking more imports or exports?

JG: Vietnam has the best of both worlds. It’s an import market with a growing population, so it will be interesting for the established produce suppliers like North America. But there’s also supply potential from Vietnam too and Vietnam aspires to be an exporter. The Vietnam Fruit and Vegetable Association indicates that the country grows a lot of tropicals and exotics like mangoes, pineapples, melons, bananas, papayas, rambutan, mangosteen, star apple, durian, custard apples and jackfruit, as well as a range of Asian vegetables.

What can the UK expect to see from Vietnam?

JG: Of course, it’s questionable whether in the next few years, Vietnam will become a main supplier to the UK. But Thailand, India and Pakistan have all become established exporters to the UK, so why not Vietnam too in the longer term? Currently, Vietnam exports quite a substantial volume of fruit to China (US$600 million) and almost the same to North America, with a little less to the Netherlands and neighbouring countries. Its vegetable exports, meanwhile, are more modest and mainly go to Asian nations like China, Korea and Japan.

The UK doesn’t appear to be a major target market for Vietnamese fruit at the moment but some of the fruit that it ships to the Netherlands will be re-exported to the UK. If you look at the growth of Vietnam’s economy and consider its sizeable exports to China and North America, then Europe and the UK are bound to come under Vietnam’s radar in the future. And, if they’re looking at Europe, they will be looking at obvious markets like the UK and Germany etc.

What about Uruguay? We know the country has a long-standing history in exporting citrus to Europe. In recent years it has made a name for itself in counter-seasonal blueberries too. What else is there to learn?

JG: We’re all familiar with Chile, Brazil, Argentina and increasingly Peru. But we don’t know as much about Uruguay – it’s the lesser-well-known supplier in South America at the moment. Uruguay is a small country, and, like you say, it’s a recognised exporter of mainly citrus (oranges, soft citrus, lemons, limes) and berries. It’s actually the third-largest citrus exporter in South America and Univeg has invested in the country.

Uruguay’s horticulture industry is growing and it will need to export the additional volume to more diverse countries given that it has a small local market of just 3.5 million people. The Netherlands and the UK are already target markets, with US$25 million-worth of Uruguayan fruit heading to the Netherlands each year and US$15 million-worth to the UK.

But what other products are there? Uruguay also produces apples, pears, table grapes, squash, onions, carrots and tomatoes – a wide range of fruits and vegetables. Uruguay has a lot of potential and the country will have an aspiration to sell more to Europe and the UK. We need to find out more.

Do you see any other countries like Ethiopia, Vietnam and Uruguay which hold promising supply potential?

JG: There are a whole range of East African nations that have threatened to make a breakthrough in horticulture or floriculture, such as Tanzania and Uganda. For whatever reason they’ve not done it, but they will. Zimbabwe and Zambia have historically exported to Europe but they’ve found it increasingly difficult in recent years. A lot is to do with the macro-economic and political situation there. Other countries that are completely off field might include Bolivia and Paraguay who are probably not even on the international scene at all yet.

How can any buyers interested in these countries get involved in sourcing opportunities?

JG: From my experience, and definitely for Ethiopia, if any country wants to accelerate the growth of an industry their relevant institutions will be promoting a range of inward investment schemes. For Ethiopia, we at Promar could help depending on what the buyer is looking to do. For Vietnam and Uruguay their attitude towards inward investment is typically very open. A combination of trade associations and government institutions will welcome you with open arms if you wish to do business.

In general, trade associations are very responsive because they’re looking for investment or trading relationships to help buyers build relationships with growers and exporters, which can often lead to joint venture agreements. In a lot of these countries the natural resources are there but sometimes what’s lacking is the knowledge of export markets or their requirements and how to meet those demands. The learning process can be quite long so it helps to do it in association with someone else.

Increasingly, exporters are coming to markets like the UK to do business. But buyers obviously need to go to a country of interest themselves to visit the market and learn about the structure of the industry. So, if you’re going to Kenya, why not visit Ethiopia as part of your trip? Or if you’re visiting Chile, Brazil or Argentina, remember you are right on the doorstep to Uruguay. The only way you’ll find out what’s going on in these countries is to do some homework and go and see for yourself.

http://www.producebusinessuk.com/supply/stories/2015/06/02/three-supply-nations-for-buyers-to-watch-ethiopia-vietnam-and-uruguay

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Cement prices expected to drop after recent price hikes

Addis Ababa: June 3, 2015 –

http://www.fanabc.com/english/index.php/component/k2/item/3085?Itemid=674

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East Africa set for a bumper harvest

The home of coffee, Ethiopia, is set to record a stellar harvest for the 2015-16 growing season and in doing so boost the entire output of East Africa to new heights, if the latest market forecasts are to be believed.

The US Department of Agriculture’s Addis Ababa bureau has predicted that Ethiopia’s farmers are expected to harvest just over 6.5m bags of arabica this year, a record high.

However, as the old saying goes, you can’t please everybody: The Ethiopian government initially hoped that the figure would be somewhere in the region of 7.7m bags, a belief underpinned on the assumption that farmers would increase the ‘low’ yields of previous years.

This bump in production should help the Ethiopian coffee sector bring in more revenue from exports. Though it may not be as much as many would think; due to the rise in demand from domestic quarters, which is a nice problem to have when you come to think about it.

Overall for East Africa, the region is expected to produce a total of 12.46m bags of coffee, with 9.4m of those destined for foreign shores. If this calculation is correct then this plans to be the most fruitful harvest for the region since 1995-96 and the second highest since records began in 1961.

Alongside the predicted increase in Ethiopian harvests, the performance of Ugandan and Tanzanian farmers are also applauded in the report. Despite facing a number of problems, the US Department of Agriculture shifts to a more celebratory tone when discussing Uganda: After a troubling period of time they say that they have recovered remarkably well.

But it isn’t all sunshine and rainbows.

What could be worrying though, especially to purveyors of Yirgacheffe, Sidamo and Harar grown coffee, is that the US Department of Agriculture offered a warning about a potential dip in quality:

“The quality of the coffee crop might deteriorate somewhat due to the delayed Belg rains and the timing of the Meher rains.

“However at this stage, it is too early to tell what that overall impact on quality might be.”

Ethiopia is, currently, the fifth largest coffee producer in the world, behind the likes of Brazil, Colombia, Indonesia and the mass-market driven fields of Vietnam.

http://www.worldcoffeepress.com/7177/east-africa-set-for-a-bumper-harvest/

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More than 3500 workshops and sheds to be transferred to enterprises this year

Addis Ababa: June 3, 2015  –

http://www.fanabc.com/english/index.php/news/item/3091-more-than-3500-workshops-and-sheds-to-be-transferred-to-enterprises-this-year

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South Boulder Mines changes name to Danakali

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Tuesday, June 02, 2015 by Proactive Investors

South Boulder Mines has received shareholder approval to change its name to Danakali .

South Boulder Mines (ASX:STB) has received shareholder approval to change its name to Danakali (ASX:DNK).

The effective date for the change will be on Thursday 4th June 2015, when the company will begin trading under ASX Ticker Code DNK.

Danakali is primarily focussed on developing the Colluli Potash Project in Eritrea, East Africa, in partnership with the Eritrean National Mining Company (ENAMCO).

Paul Donaldson, managing director, commented: “The new company name has significance to what the Colluli Project represents both chemically and geographically.

“The Danakil region of East Africa is recognised as an emerging potash province, and to date over 10 billion tonnes of potassium bearing salts have been identified.

“Potassium is an essential plant nutrient and is chemically described by the symbol K, which comes from kalium, the Medieval Latin word for potash.

“Danakali is therefore a representation of Danakil Potash and is an appropriate company name against which to define ourselves as we make the transition from explorer to developer and subsequently producer.”

The company is well-funded with around $9.5 million in cash.

Upcoming catalyst

The definitive feasibility study for the Colluli Potash Project is expected to be complete by the end of Q3, 2015.

Colluli’s key investment drivers

The keys to the project include a large resource containing over 1.2 billion tonnes of potassium bearing salts, suitable for the production of potash fertiliser – an essential, non-substitutable source of potassium for plant growth.

The unique potassium salt composition also allows the production of a diverse range of potash types, and therefore can cater towards different markets.

Composition is particularly favourable for the production of sulphate of potash (SOP) – a high quality fertiliser that achieves a price premium over the more common potassium chloride.

It is an economically viable resources for primary production of SOP which are geologically scarce

Other defining factors include:

– Colluli has unrivalled access to the coast and is the closest SOP resource to a coastline anywhere in the world;

– Shallow mineralisation allows open cut mining which gives superior resource recovery relative to alternate mining methods;

– High purity product – Colluli SOP is at the top of the quality spectrum;

– Positive prefeasibility study results indicating lowest capital intensity and lowest operating costs for SOP production;

– Substantial project upside from rocksalt, gypsum and magnesium chloride; and

– Experienced and capable management team with track record of delivery.

http://www.proactiveinvestors.com.au/companies/news/62694/south-boulder-mines-changes-name-to-danakali-62694.html

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KEFI Minerals releases Definitive Feasibility Study update

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Nyota Minerals releases quarterly update

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http://www.africanmining.com/news.php?id=3280

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Ethiopia endeavors to transform pharmaceutical industry

Addis Ababa: June 3, 2015  –

http://www.fanabc.com/english/index.php/component/k2/item/3087?Itemid=674

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Tuskys of Kenya Plans Share Sale, Ethiopia Stores in Five Years

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Tuskys, Kenya’s second-biggest supermarket chain, plans to sell shares on the Nairobi Securities Exchange within five years while expanding into Ethiopia and either the Democratic Republic of the Congo or Tanzania.

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“We have now set 2016 as the appropriate time” to open stores in Ethiopia, Chief Executive Officer Dan Githua said in an interview on May 29.

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“What we are going to do there is to partner with a local entrepreneur. In our five-year plan we are also considering to either go to Congo or Tanzania.”

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Tuskys, a 25-year-old family owned business, has more than 50 outlets in Kenya and Uganda. The company had sales of 40 billion shillings ($414 million) last year, according to Githua, trailing Nakumatt Holdings Ltd. in East Africa’s biggest economy.

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http://www.bloomberg.com/news/articles/2015-06-02/tuskys-of-kenya-plans-share-sale-ethiopia-stores-in-five-years

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Community-based health care insurance program to be launched in Ethiopia

Addis Ababa: June 3, 2015  –

http://www.fanabc.com/english/index.php/component/k2/item/3088?Itemid=674

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Q&A: Why Ethiopia ‘just cannot be ignored anymore’

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Ethiopia is one of Africa’s fastest growing economies with GDP growth of 10.3% in 2014. Coupled with a population of over 90 million, this is prompting many consumer-focused companies to look at Ethiopia with fresh eyes. How we made it in Africa spoke to Addis Alemayehou, managing partner of Ethiopian advertising agency 251 Communications, about the opportunities in the market.

How would you describe the opportunities in Ethiopia from a foreign investment perspective?

Ethiopia is a country that just cannot be ignored anymore. You’ve got a population of 95 million, most of them young people. Other than Nigeria, you can’t get much better than Ethiopia in terms of numbers. The economy is also one of the fastest growing in the continent, if not the world. In addition there is significant growth potential in terms of consumer spending. So for these reasons a lot of FMCG multinationals are investing huge resources in Ethiopia.

What do foreign companies need to do to be successful in the Ethiopian market?

The most important thing is understanding and respecting the market. Second is your distribution channels. Third is your marketing, packaging and branding. A company such as Coca-Cola has done an excellent job in terms of distribution and reaching the masses. You can find Coca-Cola in places where you can’t find water. They have also localised a lot of their packaging and branding.

Ethiopia is a very unique market in the sense that the vast majority of the population don’t speak English. We have our own language, and our own look and feel. We have never been colonised so in a sense Ethiopia is an island within the region. Success in Ethiopia takes quite a bit of time and effort, but if you respect the market the payback is there.

Is the capital Addis Ababa the main market companies should target, or are there also opportunities in the rest of the country?

It depends on the product. If you are selling a $1,500 television, there might not be much of a market outside Addis Ababa. However, if you are selling a bottle of Coca-Cola, a bar of soap or beer, there is a huge market throughout the country. Addis Ababa only has four million people out of a total population of 95 million. There is more demand than there is supply for anything that is produced locally.

Should foreign entrants expect to face tough competition from the established domestic players?

The international brands are only just starting to enter the Ethiopian market. So I think the local brands that have been here for a while still have a bit of an advantage in terms of branding and market know-how.

But I also see a huge change in that private equity funds are coming in and snapping up these local brands. I think many of the local guys have realised there is a window of opportunity for them to scale up and sell equity stakes in their firms. About two years ago one of the major bottled water brands got bought out by a private equity fund out of Kenya. It is interesting to see the local brands that are now being targeted by major international resource. It’s just a very exciting time.

http://www.howwemadeitinafrica.com/qa-why-ethiopia-just-cannot-be-ignored-anymore/49365/

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Ethiopia eyes bond trading in cautious capital markets opening

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Prime Minister Hailemariam Invited to G7 Summit

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Prime Minister Hailemariam Desalegn is invited to take part in the G7 summit that will be held on June 7 and 8, 2015 in Munich, Germany.

The premier, along with other African heads of state and governments including presidents of Liberia, Nigeria, Senegal and Tunisia, is expected to attend the G7 outreach meeting.

The outreach meeting is aimed to create a platform for G7 to support African countries in their reform efforts and thereby strengthen peace and security, growth and sustainable development in Africa.

It also serves the two sides to engage in dialogue on the common challenges they face.

The 41st G7 summit will focus on the global economy as well as on key issues regarding foreign, security and development policies.

The Group of Seven (G7, formerly G8) is a governmental forum of leading advanced economies in the world.

Canada, France, Germany, Italy, Japan, United Kingdom and United States are the current members of the G7 after the suspension of Russia in 2014.

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Ethiopia’s Hot, Nigeria’s Not, for Investors Eyeing Africa

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by Michael CohenWilliam DavisonRenee Bonorchis

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Africa has a hot new investment destination and it’s not Nigeria.

The buzz at the World Economic Forum on Africa, an annual summit of the continent’s rich and powerful, is all about Ethiopia, where the economy is flourishing and the government is embracing select foreign capital. Executives from General Electric Co., Dow Chemical Co., Standard Bank Group Ltd. and MasterCard Inc. attending the June 3-5 gathering in Cape Town all singled out the East African nation as a market with strong potential.

Ethiopia was Africa’s eighth-largest recipient of foreign direct investment last year, up from 14th position in 2013, a report released by accounting firm EY on June 2 showed. The number of projects in Ethiopia surged 88 percent, the most of all countries ranked, while those in Nigeria slumped 17 percent.

“It’s got a government that is managing economic development in a very deliberate, cautious manner,” Ross McLean, Dow’s president for sub-Saharan Africa, said in an interview on Thursday. “It’s the second-most populous country in Africa. It hasn’t urbanized like other African countries, but it’s going to. It’s a very exciting place.”

Ethiopia’s economy is expected to expand 8.6 percent this year and 8.5 percent in 2016, compared with 10.3 percent growth last year, the International Monetary Fund said in its World Economic Outlook released on April 14. Nigeria, which has Africa’s largest economy and is grappling with energy shortages and the fallout of an oil price slump, is forecast to grow 4.8 percent this year and 5 percent next year.

Construction Boom

Ethiopia’s capital, Addis Ababa, shows all the signs of a construction boom. Private developers are erecting scores of office blocks and luxury housing estates, while the government is clearing slums to build low-cost apartments. Radisson Hotels International Inc. and Marriott International Inc. are among global chains that have opened hotels to cater for an influx of business travelers.

A Chinese-built railway line that snakes alongside the capital’s main roads is part of a nationwide infrastructure development program that’s helping entice investors. In April, Chinese company Huajian Group began work on a $400 million shoe-manufacturing park on Addis Ababa’s southwestern outskirts, while companies including Taiwan’s George Shoe Corp. have opened plants in an industrial zone in the Bole Lemi district.

On Thursday, Dangote Group, the Nigerian company controlled by Aliko Dangote, Africa’s richest man, said it will spend $500 million expanding its cement plant in Ethiopia, adding to $600 million already invested.

Credit Rating

“We will leave no stone unturned to make this country a suitable destination for foreign investment,” Prime Minister Hailemariam Desalegn said at the opening of the plant at Mugher, about 80 kilometers (50 miles) west of Addis Ababa.

The country was assigned its first credit ratings in May. Moody’s Investors Service rates it a non-investment grade B1 with a stable outlook, while Standard & Poor’s and Fitch Ratings awarded the country a B, one grade lower.

Yields on the nation’s debut $1 billion Eurobond have climbed to 6.77 percent from 6.625 percent when they were sold on December 4.

Business Obstacles

“We’ve done quite a lot of Ethiopian business,” said David Munro, head of corporate and investment banking in Standard Bank, which has applied for a license for a representative office. “We see it as a prospective place to grow our business. There’s the possibility of significant resources and it’s within an economically significant zone, the east African trade area.”

Obstacles to doing business in Ethiopia remain. The Ethiopian Peoples’ Revolutionary Democratic Front has ruled the country for the past two decades and the state continues to dominate the financial services, telecommunications and transport industries. Foreign exchange is in short supply, because the government uses inflows to finance its infrastructure program and exports remain meager.

Razia Khan, Standard Chartered Plc’s head of Africa macroeconomic research, said Ethiopia’s economy has a “hollow” structure because it doesn’t have a big enough middle class to enhance economic growth.

Poverty Data

Only 18 percent of Ethiopia’s 94.1 million people are urbanized and the economy is worth just $48.9 billion, according to the Abidjan, Ivory Coast-based African Development Bank. About 30 percent of the population live in poverty, according to 2010 data from the World Bank, down from 46 percent in 1995.

Pan-African lender Ecobank Transnational Inc. has a representative office in Ethiopia. Equity Group Holdings Ltd., owner of Kenya’s second-biggest bank, will prioritize its Ethiopian business as part of an expansion into nine other African nations, Chief Executive Officer James Mwangi said in an interview in Cape Town.

Dow doubled its sales in Ethiopia last year and sees more growth to come.

“There are some significant challenges,” said McLean. “We manage them. We think we are in at the right time.”

http://www.bloomberg.com/news/articles/2015-06-05/ethiopia-s-hot-nigeria-s-not-for-investors-targeting-africa

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Ethiopia: East Africa’s biggest cement plant opens

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By Tinishu Solomon

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Dangote Group, the West African industrial conglomerate owned by Africa’s richest man Aliko Dangote, have inaugurated the biggest cement plant in East Africa in Ethiopia’s Mugher district, located about 85km away from the capital, Addis Ababa.

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The new factory, commissioned by the Dangote Group at a cost of $480million, has a production capacity of 2.5 million tonnes of cement per annum.

Ethiopian Prime Minister Hailemariam Desalegn, who attended the opening ceremony on Thursday, says the factory will also enable Ethiopia to meet its ever increasing local cement demand.

The new plant will raise Ethiopia’s annual cement production to 8 million tonnes from the current 5.4 million.

And it will also bring Dangote Group nearer to attaining a total production capacity of 40 million tonnes per annum globally, before the end of the year, according to the company.

Apart from high ranking government officials, the opening ceremony was attended by top members of the Nigerian business community.

The Prime Minister took the opportunity both to invite more investment from African businesspersons and Ethiopia’s commitment to support them.

The 480 million worth cement plant has seen the Dangote Group becoming the single largest investment by an African corporate in Ethiopia.

A statement from the Dangote Group said the project will improve local economic prospects.

The Dangote cement plant is now the fifth in the series of the offshore plants by the company that has rolled out cement production firms within the last year on the continent.

The other four are located in Senegal, Cameroon, South Africa and Zambia.

Nine other countries such projects are on the cards, as cement plants are in various stages of construction.

http://www.theafricareport.com/East-Horn-Africa/ethiopia-east-africas-biggest-cement-plant-opens.html

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Ethiopia, Burkina Faso, Nigeria to Benefit More from Gates Fundations’ $776 Million Fund

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Addis Ababa: June 5, 2015  –

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Melinda Gates announced on Thursday that her and husband Bill’s foundation will spend $776 million tackling hunger over the next six years, doubling existing commitments.

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Gates made the announcement in Brussels, where she urged European leaders to make the nutrition of women and children a priority. The huge pledge also unlocks $180 million in matched funding from Britain’s Department for International Development.

‘Malnutrition is the underlying cause of nearly half of all under-5 child deaths,’ said Gates. ‘Yet for too long the world has underinvested in nutrition. Today we see an opportunity to change that.’

Much of the money will be spent in India, Ethiopia, Nigeria, Bangladesh and Burkina Faso, where there is serious malnutrition and a real chance to make positive changes, the foundation said.

The Bill and Melinda Gates Foundation is the world’s largest private philanthropy organisation, with a $40 billion endowment. It aims to tackle disease and poverty in the developing world. Bill Gates earned his billions as co-founder of Microsoft.

Every year millions of children die because they get substandard nutrition during the critical 1,000-day period from their mother becoming pregnant until their second birthday, the foundation said in a statement.

‘Many European donors are now prioritising nutrition, which we believe will be one of the fundamental solutions to help cut child mortality in half by 2030,’ said Melinda Gates.

The extra funding announced in Brussels will aim to help women and girls before they get pregnant, improving the likelihood of a healthy mother and child. It will also be spent on solutions ‘proven to improve nutrition’ including fortifying food and promoting breastfeeding.

Women and girls play a crucial role in reducing poverty and improving health, Gates said. ‘From their leadership as farmers, entrepreneurs and consumers to their role as mothers; investment in women and girls will be key to improving nutrition globally.’

United Nations member states aim to agree in September a set of Sustainable Development Goals (SDGs), targets for making progress and reducing inequality in areas such as poverty, health, education, women’s rights and climate change by 2030.

http://www.fanabc.com/english/index.php/news/item/3112-ethiopia,-burkina-faso,-nigeria-to-benefit-more-from-gates-fundations’-$776-million-fund

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Host Country Agreement signed between Ethiopia and the UN for FFD 3

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Addis Ababa: June 5, 2015 –

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Ethiopia and the United Nations signed yesterday the Host Country Agreement for the Third International Conference on Financing for Development (FFD3) due to be held in Addis Ababa from 13-16 July 2015.

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H.E. Ambassador Tekeda Alemu, Permanent Representative of Ethiopia to the UN signed the Agreement with Mr. Wu Hungbo, Under Secretary-General of the United Nations for Economic and Social Affairs.

Ethiopia has attached great importance to the organization of this Conference whose outcome is very critical to the implementation of the next generation of Sustainable Development Goals (SDGs) to be adopted during the 70th session of the United Nations General Assembly.

In this regard, the Ethiopian government has established a National Committee composed of all relevant stakeholders to ensure that the conference is a resounding success.

http://www.fanabc.com/english/index.php/component/k2/item/3109?Itemid=674

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Power Africa Initiative Coordinator Says Corbetti Project Testimony to Ethiopia’s Priority for Energy Sector

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U.S. Government Coordinator for the Power Africa Initiative said the Corbetti Geothermal Project that is being built in Ethiopia displays the priority the country gives for the energy sector.

During a televised conference he held with journalists from sub-Saharan Africa countries, Andrew Herscowitz said the Power Africa Initiative has been exerting efforts to discharge the electric energy demand of the countries by carrying out various projects with private investors.

The Power Africa Initiative will also create favorable condition for investors to engage in the energy sector through undertaking feasibility studies, identifying opportunities for energy and creating strong relationship among government and investors, he added.

According to him, Corbetti Geothermal Project is expected to generate 500 MW and play vital role in the endeavor of Ethiopia to have enough access to energy in the country.

The government of Ethiopia has reached an agreement with Reykjavik Geothermal and power Africa is striving to provide technical and consultancy assistance so that the companies will engage in the sector.

http://www.ena.gov.et/en/index.php/economy/item/916-power-africa-initiative-coordinator-says-corbetti-project-testimony-to-ethiopia-s-priority-for-energy-sector

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Ambassadors Hail Ethiopia’s Effort to Fulfill Energy Demand of Regional Countries

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Addis Ababa: June 4, 2015  –

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Ambassadors of Djibouti and Kenya appreciated Ethiopia’s efforts to solve the power shortage of East Africa.

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Ethiopia aims to generate 11,000 megawatt of electricity and to build 15,000 km transmission lines during the Second Growth and Transformation Plan period.

Beyond satisfying its energy needs, the country is currently working to export electricity to neighboring countries.

A master plan that connects various East African countries to North Africa through electric lines is being implemented.

Executed on the basis of the master plan, a 2,000km line that connects Ethiopia-Kenya-South Sudan-Rwanda is nearing completion.

Ethiopia plans to sell 400 megawatt of electricity to Kenya next year, and a memorandum of understanding is expected to be signed to construct an electric line that connects Ethiopia-Tanzania-Burundi-Yemen and Somaliland.

Kenya and Djibouti are countries which obtain electricity from Ethiopia, but still need additional power.

Djibouti’s Ambassador to Ethiopia, Mohammed Idriss Farah said Ethiopia plays a leading role in reducing the region’s power shortage which is the main obstacle to the economic growth of the regional countries.

Since Ethiopia’s power supply is dependable and comparatively cheaper, Djibouti has a desire to buy additional electricity from Ethiopia, the ambassador noted.

The electric supply would help avert Djibouti’s power shortage and generate foreign currency for Ethiopia thus contributing to the strengthening of the economic integration of the countries, he elaborated.

Kenya’s Ambassador to Ethiopia, Catherine Mwangi on her part stated that Ethiopia’s strategy of brining mutual growth is appreciable.

Ambassador Mwangi also expressed Kenya’s desire to obtain electricity that entirely comes from renewable energy sources from Ethiopia.

The ambassador further said she has been following the execution of the Ethio-Kenya power transmission line that is being built with the support of African Development Bank.

She said Ethiopia’s efforts to satisfy the region’s electricity demand and the participation of the public in the construction of the Grand Ethiopian Renaissance Dam is commendable.

Water, Irrigation and Energy Minister Alemayehu Tegenu said Ethiopia is undertaking successful steps in fulfilling its energy demand and that of neighboring countries.

Ethiopia’s electricity demand has shown a 20-25 percent annual growth, according to Chief Executive Officer of Ethiopian Electric Power (EEP), Azeb Asnake.

To meet the demand and benefit regional countries, the country has formulated a 25-year master plan, she added.

CEO Azeb noted that Adama I and II Wind Farms, Ashengoda and Fincha Amertinesh power plants were completed in the first GTP while GERD, Gilgel Gibe III, Genale Dawena and Reppi Dry Waste energy generating projects are transferred to the second GTP.

http://www.fanabc.com/english/index.php/component/k2/item/3100?Itemid=674

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Food products brace for new compliance certification

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By Tesfaye Getnet

The Food, Medicine and Health Care Administration and Control Authority (FMHACA) is preparing a new directive that obliges food processing companies to obtain competency certification from the authority before they can release their products to the market. . Food processors that make or sell edible oil, milk, fish, fortified flour, egg, meat, fruits and vegetables should have the competency certificate before they can market their produce. Previously, the competency certificate was only required for infant formula and food supplements. . The new requirement, which is expected to be in force starting in the next Ethiopian year, will also require food additive producers to get certified. Tewodros Girma, FMHACA Food Licensing Director told Capital that application of the mandatory certificate is vital to ensure the safety and quality of food products. . “More than anything else, food is more susceptible to poisoning. Care must be taken when we produce it. In line with the country’s development, different kinds of foods packed by many companies are entering the market. The authority has the duty to ensure that these products do contain prohibited ingredients and that they are produced by certified producers.”   . “We are expanding our control channel. We have been checking many food products only for three negative impacts they could have on human health and their production place. But now, we need to verify that food producers and sellers are handling food in accordance with the competency requirements. Otherwise, we won’t let them stay in the market,” he added. . In related news, mineral water packing companies have demanded that the government strictly supervise the quality of bottled water. compliance.  So far, only 22 of the 42 bottled water brands across the country have been given quality compliance certificates. . Ermias Kiros, Production Manager of Origin Food and Beverage Factory told Capital “We see bottled waterwithout compliance certificates sold to the public.Some also have low mineral content. The government should do more to stop such products that affect health and business from entering the market.” . Teka Berhane, Ethiopian Conformity Assessment Enterprise (ECAE) Corporate Communication and Service Head advised companies who are not issued with the compliance a certificate to enroll for certification. . “Companies should volunteer to come to our office and get the compliance stamp on their products.  There are 21 companies who have applied to get the official recognition. We are aware that some producers work without the certificate,” he said, adding that stakeholders should collaborate to stop such types of operations. . http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=5188:food-products-brace-for-new-compliance-certification-&catid=35:capital&Itemid=27

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Ethiopia eyes extra 12,000 MW in power projects by 2020

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By Aaron Maasho

ADDIS ABABA – Ethiopia plans to launch hydropower dams and other renewable energy projects over the five years to 2020 that will add an additional 12,000 megawatts of electricity upon completion, a senior official said on Monday.

With one of the continent’s fastest-growing economies, Ethiopia wants to become a manufacturing hub and Africa’s top energy exporter by tapping the numerous rivers that cascade through its highlands. Experts say the Horn of Africa nation has the potential to generate 45,000 megawatts of hydropower.

Under a 2010-2015 development blueprint, the Growth and Transformation Plan 1 (GTP 1), Ethiopia started work on the $4.1 billion Grand Renaissance Dam and planned to complete the $1.8 billion Gilgel Gibe 3. Together the dams will boost generating capacity from 2,400 megawatts now to more than 10,000 megawatts upon completion.

Under a new 2015-2020 plan, or GTP 2, that is due to be endorsed by parliament in September, projects generating 12,000 megawatts will be added, Azeb Asnake, Chief Executive of state-run Ethiopian Electric Power, told Reuters.

“For this ambitious plan, the idea is to finance at least 50 percent by our own coffers, by the Ethiopian government, and the rest from different sources,” she said of the projects slated to be launched by 2020.

Ethiopia’s total energy plans could cost the country up to $25 billion, Azeb said.

“They could be grants, soft loans and commercial loans from foreign banks, governments and the like,” she said.

POWER EXPORTS

Mega dams supplying up to 2,000 megawatts each set up on several main rivers and tributaries including the Omo and the Nile are part of the plan, according to official documents obtained by Reuters.

Solar, wind and geothermal projects are also planned.

Ethiopia said in 2011 it planned to launch projects to raise generating capacity to 20,000 megawatts by 2020. GTP 1 and GTP 2 will put the country slightly ahead of that target, once the projects are completed.

The government says its priority is to satisfy domestic needs but given demand still remains insignificant, a large amount of electricity produced will end up being exported.

Addis Ababa already sells a small amount of power to neighbours Sudan, Kenya and Djibouti. It has signed memorandums of understanding with South Sudan, Tanzania and Rwanda, while an underwater power link with Yemen is also in the pipeline.

Once Ethiopia’s grand plans are complete, it wants to export power to countries in North and southern Africa and beyond.

“We have sufficient resources to power a very large part of Africa,” Azeb said.

Other major African producers such as South Africa and Egypt boast generation capacity of about 42,000 MW and 34,000 MW, though their actual production is lower as many plants are old and need to be temporarily closed for maintenance.

http://af.reuters.com/article/investingNews/idAFKBN0OO13K20150608?sp=true

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Country’s First Modern Real Estate to be Built with 4 Billion Birr

http://www.ena.gov.et/en/index.php/economy/item/928-country-s-first-modern-real-estate-to-be-built-with-4-billion-birr

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Billions Improperly Accounted for in Auditor General’s Report

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The audit found a high incidence of inappropriate expenditure, improper purchases, payments and uncollected revenue

The Federal Main Auditor has found that billions of Birr have been spent inappropriately or have remained uncollected, citing this as a recurring challenge to the governmental organisations and institutions in the country.

Its report, which was presented to Parliament on Tuesday June 2, 2015 for the fiscal year 2013/14, came to this conclusion after having assessed the Financial Appropriateness Audit, Performance Audit and Protection of Basic Services in 133 federal governmental organisations.

The amount of money that remained uncollected by the Ethiopian Revenues & Customs Authority and its nine branches and other 12 government organisations, was found to be 1,039 billion Br while the money spent without proper documentation amounted to 368 million Br in 29 governmental organisations. The audit found that 53.4 million Br had been paid without following the legal procedure in 47 organisations and three branches.

The report urged proper implementation of the laws of the country, especially in the payment and purchasing processes.

Major culprits for inappropriate expenditure were Jimma University, 20.3 million Birr; Bahir Dar University, 7.2 million Br; Dilla University, 6.9 million Br; Hawassa University, 3.9 million Br; Arba Minch University, 3.4 million Br; Wolaita University, 3.3 million Br, and Wachamo University, 3.2 million Br.

This money was spent on overtime payments, students’ and workers’ per diems and payments to officials.

“But the recurring problems that are seen year after year could have been solved and indicate the need for more attention for the issue,” stressed Gemechu Dubiso, auditor general, in his report to Parliament.

The audit report also found out that in 63 organisations and three branches, there were purchases amounting to 957.5 million Br that violated the purchase laws. The major slice of this went to the Ministry of Industry.

The Ministry spent 743.8 million Br on the construction of the Bole Lemi Industry Zone, which, according to Melaku Taye, corporate communications director at the Ministry, was all legally done.

“We had sent them the relevant documents on May 14, signed by the Minister (Ahmed Abitew), but they did not consider it,” Melaku told Fortune.

The problem at the Ministry occurred because of the selection of 14 contractors and one consultant for the construction of the industry zone without tender or pro forma.

“There is no problem in the process of the procurement as it is done according to the law,” Melaku argues. “The problem was that the Audit Bureau did not discuss with us after finalising the report.”

The report shows the gaps, but enforcement is not for the Audit Bureau, Gemechu indicated.

“We notify the Federal Ethics & Anti-corruption Commission and the Prime Minister’s Office for them to investigate and take measures,” he said.

Although the problems are recurrent, there has been improvement in the past five years since Parliament, to which the Federal Main Auditor is accountable, started its term according to Teshome Eshetu, Government Expenditure Control Standing Committee chair at the Parliament.

The problem in universities is because of their engagement in both the academics and the administration. They give more emphasis to the academics and make errors in the administration of development works, Teshome reasoned.

“The administration in Universities needs to be given to other bodies and they have to be made to focus only on the academics,” he suggested.

The Auditor General indicated that the performance of his office was 98.52, auditing 133 organisations out of the planned 135. This happened because of the human resource shortage in the office with high turnover and the lag in closing financial accounts.

http://addisfortune.net/articles/billions-improperly-accounted-for-in-auditor-generals-report/

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Ministry of Mines approves Dangote’s potash exploration

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The Ministry of Mines approved the request Aliko Dangote made to acquire exploration license for potash mineral in the resource rich Afar Regional State.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3596-ministry-of-mines-approves-dangotes-potash-exploration

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BoA Awards Deloitte Consultancy Management Strategy Contract

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The contract has been awarded but until it is signed the Bank is being tight-lipped about the cost

Bank of Abyssinia (BoA) has awarded Deloitte Consultancy a contract for the study and design of its management strategy.

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Deloitte, selected from four firms the Bank had shortlisted in September 2014, is expected to sign an agreement by the end of next week, Bank’s President, Mulugeta Asmare, disclosed, declining to give further comment until the signing.

Mulugeta, confirmed the winner but said, “We did not yet give them the letter of recruitment.”

Deloitte partners were not available for comment.

Such kinds of strategies are usually meant for application over a longer period according to Getnet Haile, Managing partner at Target business Consulting Plc.

“They might extend to five years,”Getnet told Fortune.

In preparing a strategy for institutions, especially in the financial sector, conditions such as the political, economic and other contexts need to be considered. It should, for instance, see the probability of the country’s banking sector being liberalised and consider the economic growth, Getnet explained.

The process started with a closed auction in May 2014, leading to a shortlist that included Deloitte Consulting, Ernst & Young Global, KPMG Consulting and Price Water House Coppers.

Details of the conditions under which Deloitte is to be contracted have not yet been revealed. However, an expert Fortune talked to, indicated that completion of a well-done strategy could take up to six months and cost the bank 300,000 dollars to 500,000 dollars. The major challenge will be data collection and compilation.

Bank of Abyssinia was established in 1996. It currently has 400,000 account holders, and generated 270.71 million Br profit after tax, in the fiscal year 2013/14. That same year it replaced Addisu Haba, its president for five years, with Mulugeta Asmare.

Mulugeta stated that he came to the position at a time when the Bank was in good standing and that his job would be to make sure that those achievements were kept up.

http://addisfortune.net/articles/boa-awards-deloitte-consultancy-management-strategy-contract/

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German-based chemical company ponders to set up a plant here

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The well-known chemical company in Germany and beyond, BASF, which has been running an office in the capital as of January, expressed an interest in setting up a manufacturing plant in Ethiopia. 

http://www.thereporterethiopia.com/index.php/news-headlines/item/3572-german-based-chemical-company-ponders-to-set-up-a-plant-here

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52 of 100 Seed Varieties Get Approval from National Committee

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After 12 years of research, farmers have hundreds of seed varieties in food, medicinal and feed crops

The National Seed Approval Committee approved only 52 of the over 100 seed varieties submitted to it by federal and regional research institutions following their research which took as long as 12 years.

The announcement was made at a press conference held at the Ethiopian Institute of Agricultural Research (EIAR) headquarters on June 2, 2015. Thirty-four of the varieties were developed at federally controlled research centres, while the rest were developed by regional research centres and universities, Fisseha Zegeye, Research Partnership, Communication and IPR director at the Institute noted.

These varieties boost productivity and are disease and drought resistant, which are the requirements of the Committee to approve the seeds. The bulk of the varieties that were rejected failed to fulfil the requirements.

“The varieties are tested at the Institute’s test sites and farmers’ fields,” added Fisseha.

The types of seeds released fall under six categories. Twelve are from cereals, five from pulses, six from oil seeds, five from roots and vegetables, three from fruits, and three from fibre crops.

The EIAR has released two varieties of wheat that will increase productivity by 13pc and six corn varieties that will increase productivity by 10pc to 20pc. One malt barley variety increases productivity by nine percent to 11.5pc and another barley variety has high protein content.

Up to the year 2014, the Institute had released a total of 975 varieties, with cereals, pulses and oil seeds accounting for 346 varieties, 188 varieties and 90 varieties respectively, as well as 173 varieties of roots and vegetables.These include aromatic and medicinal crops, animal feed crops and stimulants.

The EIAR has 16 laboratories, one of which has been accredited by the Ethiopian National Accreditation Office.

“The study and release of one variety of seed takes seven to 12 years on average and the study begins with one grain of seed,” said Tesfaye Leta (PhD), director of agricultural research centre under the Oromia Institute of Agricultural Research.

The Sinana Centre in Oromia has released two wheat varieties that are resistant to rust disease, prevalent in Arsi and Bale, Tesfaye said.

The institute took 10 years to release the seeds, involving 10 experts in the field of seed improvement, experts that control the process of seed improvement and farmers.

The government’s GTP for seed distribution has failed by a wide margin with only 53,830.57ql distributed in the first four years, out of a total plan for 114,420ql in the same period.

http://addisfortune.net/articles/52-of-100-seed-varieties-get-approval-from-national-committee/

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Ethiopia endeavors to earn half a billion Dollars annually from its newest sugar factories

Addis Ababa: June 8, 2015  –

http://www.fanabc.com/english/index.php/news/item/3133-ethiopia-endeavors-to-earn-half-a-billion-dollars-from-its-newest-sugar-factories-annually

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Lentil Scarcity Hits Consumer Pockets at 50 Br per Kilo

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Desta Tadesse, a lentil wholesaler in Bekea town and his employee checking how far the lentils are clean from its husk and other waste materials at his store and home in the heart of Bekea.

This year has not been a positive one for farmers such as Shimeles Tefera, who also owns a shop in the town of Bekea, 40 Km east of Addis Abeba. This area is known for the quality of its lentils.

Shimeles stated that he lost his entire crop of lentils, which he cultivated on a plot of land rented for 11,000 Br for three years, because of fungus.

“During our assessment of this area, we were able to identify that most of the lentil farms were infected with rust and most of them used unimproved seeds,” Million Eshete (PhD), national chickpea & lentil research coordinator at Debre Zeit’s Agriculture Research Centre, commented.

His research centre has 10 varieties of lentils that are resistant to rust and other diseases, he says.

Rust attacks crops about once every five years when it gets convenient temperature and humidity.

“Unlike the previous year, when I had harvested 10qt of lentils, now I have lost it all. For this year, I am going to plant other crops such as wheat and teff,” said Shimeles.

He currently sells a kilo of lentils for 42 Br at his shop because of the shortage that has occurred.

This seems to be the case for a lot of farmers, with the shortage contributing to a rise in the price of lentils in every shop and marketplace, according to farmers and traders in Bekea town.

The streets are empty and there are a small number of vehicles that come from lentil producing areas, said Shimeles.

According to the Central Statistics Agency’s (CSA) agricultural sample survey, the annual production of this year so far is 1.3 million quintals, declining from last year’s 1.6 million quintal.

Winnowing the lentils; one of the employee of Desta, is exposing the lentils to the wind so does it will help him to remove the husk from the main part.

Minor lentil production areas depend on the Belg (small rains) season. However, Bekea town is known as a gateway for the supply of lentils from such places as Dessie, in South Wollo, the surrounding Weredas of Gembecho and Jeru as well as districts in Wollo, North, Eastern and Western Shewa and Gonder are areas known for the greatest production of lentils, which are cultivated during Meher (big rains) season.

The crops from these markets pass through Bekea town on their way to Addis Abeba.

The same holds true that within these areas, during the Meher season, there was a decrease in production. For instance, the Amhara and Oromia regions have recorded 779,299qt and 552,971qt, respectively, this year. At the same time last year, these regions produced 798,120qt and 689, 425qt.

North and South Wollo have produced 214,135qt whereas North Shewa produced 330, 768qt, somewhat down from the previous year’s harvest of 218,244qt and 340,611qt, respectively.

At the same time the area coverage of lentils cultivation has also decreased from 125, 830ha to 98,869ha of land.

“It is hard to see any one whose life is not connected with lentils,” said Desta Tadesse, who has been selling lentils for 38 years in the town.

When Fortune met him on June 4, he said that he should have been in Addis Abeba to sell his lentils if the produce had been as good as before, as Wednesday is market day for lentils. He used to make two trips to Addis Abeba a week.

At his home that day, four workers were cleaning eight quintals of lentils which Desta said he had bought for prices of 3,000 Br to 3,600 Br. The price range is based on quality, which is measured in terms of how well the lentils have been cleaned.

The same quintal of lentils was sold for 2,000 Br per quintal last year.

Traders like Tadesse sell their bag of lentils at the local market called Ashewa Meda, near Tatek, west of Addis Abeba on Wednesdays and Mondays. From there it heads for Merkato.

At Ehel Berenda, the grain market at Merkato, lentils are being sold for 40 Br to 43.60 Br per kilo, and retailers like Adana Degefu from Dukum 37 Km of South of Addis Abeba struggle to purchase at this price. He came to buy one quintal of lentils from the shop that normally sells in bulk, where he is a regular customer.

“I do not have any lentils at my shop, so I want to have some for my customers,” said Adana. “If that was not the case I would prefer not have any at all,” he added.

Just over two weeks ago, the same lentils sold for 37.50 at the wholesale market are now being sold for 43.60 Br. During the Lenten fasting season, the price was 25 Br to 30 Br. Retailers in Addis Abeba are now selling lentils for 50 Br per kilo.

Bekelle Gurmu, the wholesaler selling to Adana, remarked that previously his store used to be full, not half full as it looked when Fortune visited on Wednesday.

Bekelle attributes the decline to reduce rainfall. The National Meteorology Agency (NMA) predicted that the average rainfall in Oromia regions would be 525 mm though the current report shows that most of the country’s production was below the expectation.

Reports show that major Belg season crop producing areas got an average of 125 mm of rainfall, which represents a three-fold decline from 2010/11, when rainfall averaged   350 mm.

It is advisable for farmers to use improved seed that has more resistance to such disease and so far we have increased the usage of these seeds through extension programmes, said Million.

http://addisfortune.net/columns/lentil-scarcity-hits-consumer-pockets-at-50-br-per-kilo/

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Cork factory inaugurated

Addis Ababa: June 7, 2015  – 

http://www.fanabc.com/english/index.php/component/k2/item/3125?Itemid=674

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Pharmaceutical Industry to Get First National Strategy, Action Plan

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WHO has drafted the national strategy and action plan for improving access to medicine made in Ethiopia

Mebrahtu Meles (PhD) state minister of Ministry of Industry (left),Janet Byaruhanga (PhD) Health Policy Officer at African Union Commission, (middle) and Zafar Mirza (PhD) coordinator Health Innovation & Intellectual Property Department of Essential Medicines &Health Product in WHO.

A first of its kind 10-year national strategy and a five-year plan of action for pharmaceutical manufacturing development are being developed by the World Health Organization (WHO) following a request by the government to develop the pharmaceutical industry and improve access to medicine.

The first draft of the strategic plan was discussed on June 2, 2015 in the presence of Kebede Worku (PhD), state minister for Health (MoH) and Mebrahtu Meles (PhD), state minister for Industry (MoI).

The draft national strategy was developed near the end of the first Growth & Transformation Plan (GTP I), which had failed to accomplish its targets for the pharmaceutical industry.

It aspires to increase the current market share of local pharmaceuticals manufacturers to 80pc by 2025 and the export earnings of the sector from the current two million dollars to 80 million dollars after 10 years.

In the first GTP, the government’s target for the pharmaceutical industry was to achieve full utilisation of the local pharmaceutical and medical supplies manufacturers; raise their local market share to 50pc and increase the export earnings of the sector to 20 million dollars.

The actual share of the local markets, however, with participation by all 22 local companies stood at 20pc and the export earnings of the sector was only two million dollars, far below the target in GTP one.

Incentives provided by the government for the local pharmaceutical sector during the first GTP, included tax free loans of up to 70pc for new companies and 60pc for well-established companies, 100pc Customs duty exemption on the import of capital goods such as construction materials and 15pc exemption of spare parts, two-year income tax exemption for companies that export 50pc of their products and others. But these incentives have failed to achieve the GTP I targets.

Financial and human capital problems in combination with the absence of defined policy were the problems in the first GTP and this strategy was necessitated because the government became convinced that access to medicine through local industrial development is an important substitute for imported medicine, which is 80 pc, Mebrahtu said.

Tsige Gebremaryam (Prof.) WHO consultant and general manager of Regional Bio Equivalence Centre told Fortune that the government’s incentive revived the pharmaceutical sector but there were multi-faceted and complex problems of management, human capital and planning that rendered the companies’ incapable of producing at full capacity and therefore hindered the achievement of the GTP I targets.

The plan for improving access to medicine through locally produced quality products is to be implemented by ensuring that the companies comply with good manufacturing practice (GMP) and international manufacturing standards of WHO.

Ensuring that 20 companies will have international GMP by 2025 is the target of the draft strategy. Presently there are no companies with such qualifications, though the Ethiopian Food, Medicine & Health Care Administration & Control Agency (FMHACA) had adopted a GMP road map for implementation from 2013 to 2018.

The draft strategy has seven action plans, which include improving access to medicines through locally produced quality assured medicines, providing new incentives for local pharmaceutical companies to create import substitution, developing a pharmaceutical cluster, and production of active pharmaceutical ingredients (API). Among the additional incentives proposed by the new strategy, is the pooled procurement of raw materials.

Only one target in the GTP did not have a strategic plan and there was no clear cut time frame for the targets, monitoring and meeting objectives, Tsige said. The development of the strategic plan in combination with the action plans will give ownership to the targets both for the regulation and production and put a time frame in which the activities are to be accomplished, he added.

http://addisfortune.net/articles/pharmaceutical-industry-to-get-first-natl-strategy-action-plan/

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Ethiopia topples Nigeria on foreign investment destination list in Africa

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By JONAH NWOKPOKU

Nigeria may be in for tougher times as foreign investors are beginning to shift their attention to Ethiopia as a preferred investment decision.

This was indicated by the buzz at the just concluded World Economic Forum on Africa, an annual summit of the continent’s rich and powerful, which was all about Ethiopia, where the economy is flourishing and the government is embracing select foreign capital.

Executives from General Electric Co., Dow Chemical Co., Standard Bank Group Ltd. and MasterCard Inc. attending the gathering in Cape Town were reported to have all singled out the East African nation as a market with strong potential.

Ethiopia was Africa’s eighth-largest recipient of foreign direct investment last year, up from 14th position in 2013, a report released by accounting firm, Ernst & Young showed. The number of projects in Ethiopia surged 88 percent, the most of all countries ranked, while those in Nigeria slumped 17 percent.

“It’s got a government that is managing economic development in a very deliberate, cautious manner. It’s the second-most populous country in Africa. It hasn’t urbanized like other African countries, but it’s going to. It’s a very exciting place,” Ross McLean, Dow’s president for sub-Saharan Africa, told the media in an interview last week.

Ethiopia’s economy is expected to expand 8.6 percent this year and 8.5 percent in 2016, compared with 10.3 percent growth last year, the International Monetary Fund said in its World Economic Outlook released on April 14. Nigeria, which has Africa’s largest economy and is grappling insecurity coupled with energy shortages and the fallout of an oil price slump, is forecast to grow 4.8 percent this year and 5 percent next year.

Recall that at that meeting, Nigeria’s former Finance Minister, Ngozi Okonjo-Iweala said her successor will face a “difficult” year because of plunging oil revenues and that the economy needs expert management to weather the storm.

“We have a serious situation with a cash crunch. But fundamentally, the economy is strong. If we can get through the cash crunch, manage the way through, build on some of the assets we have, by next year, things will be better.”

She added: “The next finance minister needs to focus on a strong policy, the fiscal consolidation path that we have and looking toward diversification of revenue resources.

http://www.vanguardngr.com/2015/06/ethiopia-topples-nigeria-on-foreign-investment-destination-list-in-africa/

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Policy measures help to boost FDI

Addis Ababa: June 8, 2015 –

http://www.fanabc.com/english/index.php/component/k2/item/3129?Itemid=674

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Vehicle Licence Renewal Fees to be Implemented by 2015/16

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The fee will fill a gap in the 2.6 billion Birr budget and is based on the 581,031 vehicles registered

Kassahun Hailemariam, director general of the Federal Transport Authority (right) and Reshid Mohammed, director of Ethiopian Road Fund Office (left) at a press conference on license renewal fee on June 4, 2015 at Ghion Hotel.

A new regulation approved by the Council of Ministers will see vehicle licence renewal fees collected across the country starting from the 2015/16 fiscal year.

The Road Fund Establishment Proclamation No. 66/1997 sanctions the right to collect payment from vehicle licence renewal as one of the fundraising methods, with the establishment of a road fund in addition to the road maintenance fuel levy and the overloading fine.

The Ethiopian Road Fund Office, in concert with the Federal Transport Authority (FTA), announced the regulation at a press conference held at the Ghion Hotel on June 4, 2015, although the regulation was approved by the Council of Ministers on February 23, 2015. The Road Fund serves as a financial platform for road maintenance and road safety measures in Ethiopia.

The new regulation, known as Axle Load Based Annual Vehicle’s Licence Renewal Fee, will be levied annually on any vehicle on the basis of its loading capacity or on the number of seats it has. This is in keeping with the payment schedule declared under the regulation, according to Reshid Mohammed, director of the Ethiopian Road Fund Office.

Vehicles with up to five seats will be charged an annual fee of 125 Br, while mini buses used as taxis, with up to 12 seats will pay 150 Br annually. Higer buses, with 27 seats will be charged 200 Br.

While the minimum fee is 125 Br, there is a maximum fee of 800 Br for vehicles with over 44 seats. The renewal fee for freight trucks starts from 300 Br for vehicles with a loading capacity of 15qt, while those with capacities of 180qt will pay 2,500 Br.

A minimum 750 Br fee is levied on fuel or liquid loading trucks with up to 10,000lt (long ton) loading capacity with the maximum fee reaching 2,000 Br for above 14,000lt loading capacity. Motorcycles and off-road operating vehicles will also make an annual payment of 50 Br and 300 Br, respectively.

The vehicle licence fee is a good initiative to support road maintenance, but should be clearly stated and publicised in order to promote transparency and encourage payers, said Getachew Tesfaye, manager of Noah Transport S.C. The company, established in 1997, manages 61 freight trucks with a loading capacity of 400qt.

In the coming year, the Road Fund Office is expected to collect a total amount up to 150 million Br from vehicle’s license renewal fee, according to Reshid. The amount is calculated based on the number of currently registered vehicles, which are 581,031 in number.

In the last 10 months, the Office had planned to collect around 1.8 billion Br, which it exceeded by collecting 1.9 billion Br. Most of the money, which is some 1.7 billion Br, was collected from road maintenance fuel levies, with the rest coming from such sources as tariffs on lubricants and overloading fines.

The money generated is not sufficient to carry out quality and full road maintenance across the country. This needs a 2.6 billion Br budget, said Reshid. Therefore, the main objective to levy this licence renewal fee is to contribute as much for the budget gap, he added.

The 10-month period also saw the maintenance of 15,329Km roads from 17,724Km roads that were planned.

The Federal Transport Authority will oversee the collection of the license renewal fee, which will be collected along with the annual technical inspection and registration, said Kassahun Hailemariam, director general of the Federal Transport Authority.

The total sum of money deposited to Ethiopian Road Fund’s Office is distributed among 71 road agencies across the country. Sixty five percent of the total fund is disbursed to Ethiopian Roads Authority while regional rural roads authorities get 25pc from the fund and the rest is distributed among city’s roads agencies.

http://addisfortune.net/articles/vehicle-licence-renewal-fees-to-be-implemented-by-201516/

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