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Eight companies get export boost

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The Public-Private Steering Committee (PPSC), the upper body of the Ethiopian Competitiveness Facility (ECF) has approved financial support for eight companies last week, Capital learned.
The (PPSC) works to help local companies export their products. Two additional coffee companies are expected to obtain approval from the PPSC, chaired by Tadesse Haile, State Minister of Industry. The meeting involving these companies was  postponed for another time because decision making officials from the Ministry of Industry (MoI) were absent. The companies that got approval on Wednesday January 31 are: Muya Ethiopia, Dire Tannery, Hay Garment, Ethiopia Tannery, Entoto Beth Artisans, Akaki Garment, Zede Engineering and Addis Ababa Tannery. Most of them are textile and garment manufacturers, excluding Zede.
Assegid Assefa, country director of ECF, said that since the second phase of ECF, launched last year, 27 companies, chambers of commerce and business associations have gotten support.
The amount  approved for the companies or associations depends on the project size that the companies or associations submitted. Assegid told Capital that the maximum amount the facility approved is USD 200,000.
The PPSC, which is made up of representatives from the financial sector, private sector, other public institutions and the ministry, will disclose the amount that it approved for the companies after they conclude some suggestions.
He said that almost half of the companies benefiting from the  ECF scheme are similar companies who got the option in the first phase.
The facility that aims to improve productivity and competitiveness in the global market has given support since 2006 when the project launched in Ethiopia with the support of the World Bank. Experts said that the scheme is a good opportunity for companies to tap big markets  in the international market because the program can help companies meet global standards. Very few companies making products for export  and the limitation of industrial companies are major factors that Ethiopian companies have been unable to get the support from the scheme.
ECF is a grant program of Ethiopia aimed at improving the competitiveness of the private sector particularly to develop the export or domestic sales capability of Ethiopian firms by increasing their competitiveness, strengthening market support institutions and market information systems.
The second phase of the ECF is a project operated by MoI and financed by the Department for International Development (DFID) and the Private Enterprise Program  Ethiopia (PEPE). 
According to the country director, each firm benefiting from this grant support is expected to contribute to green growth and to increase female employment and empowerment and export oriented businesses.
The ECF has four windows (schemes); export development window, institution development window, chambers of commerce and sectoral association window and the new window introduced to support firms currently not exporting or indirect exporters.
The objective of this first window is to offer grant finance to eligible privately-owned enterprises in order to accelerate the improvement of their competitiveness in international markets.
It is a firm-level support to priority sectors (leather and leather products, textiles and garments, and agro-processing) through a matching grant scheme.
Eligible private sector enterprises will receive reimbursements in the form of cash grants from the fund to cover a substantial proportion of the implementation cost of an integrated export development plan.
The institution development window aims to assist institutions that enhance the export development capacities of private firms that are exporting or preparing to export so as to better to enable them to expand their exports.  These providers could, for example, provide services to prepare firms for ISO 9,000 certification; provide ISO 9,000 audits; undertake market research; rent design equipment; conduct quality testing or  carry out web searches on behalf of exporters in advance of market investigation visits.
DFID has supported GBP four million for the second phase that will end in December 2015.
The first phase that commenced in 2006 and ended in December 2012 has been financed by the World Bank. USD 7.4 million has been dispersed in the first phase. According to the country director, the financiers undertake the monitoring and evaluation to not the effectiveness of the program. The World Bank evaluation for the first phase indicated that the scheme has attained 93 percent.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4019:eight-companies-get-export-boost&catid=35:capital&Itemid=27

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Ethiopia, EU sign financing accord

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Ethiopia and the European Union have signed a 26.9 million euro financing agreement for four projects.

The agreement was signed by Finance and Economic Development State Minister Ahmed Shide and EU Development Cooperation Director Francesca Mosca.

The assistance is provided by the 10th European Development Fund (EDF) which includes projects Trade Enhancement and Facilitation Programme, Civil Society Fund II, Women’s Breakthrough and Technical Cooperation facility.

The agreement is intended to finance projects aimed at supporting gender equality and women empowerment (6.4 million euro), trade enhancement and facilitation activities (10 million euro), civil society organizations (6 million euro) and availing technical support (4.5 million euro).

Mosca said on the occasion that the assistance will give a further boost to Ethiopia’s initiatives for economic growth and poverty reduction.

“EU-Ethiopia cooperation has yielded good results in the recent past and I look forward to achieving similar effects with these projects. I am particularly happy that the set of projects include due support for Civil Society Organization,as well as for facilitating women’s business start-ups and market linkages,” she added.

State Minister Ahmed on his part said: “The crucial support of the EU in the roads, food security, coffee improvement, water supply and governance sector augments Ethiopia’s effort of eradicating poverty and ensuring fast and sustainable development. The government of Ethiopia appreciates EU for its ever increasing support towards Ethiopia’s growth and transformation as expressed not only by the allocation of substantial development assistance but also by the day-to-day close cooperation to ensure its timely utilization.”

When fully operational, the projects are expected to support the integration of Ethiopia into the world economy in order to enhance the contribution of trade to the country’s growth and transformation.

http://www.waltainfo.com/index.php/explore/12221-ethiopia-eu-sign-financing-accord-

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MB Private Limited Company, “Family Milk”

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In the increasingly competitive market of processed dairy products in Addis Ababa, MB PLC, popularly known under its brand “Family Milk,” has succeeded.   Both supply and demand for dairy products are highly variable in Ethiopia, due to seasonal variations, multiple holidays and, fasting seasons, which significantly decrease consumption.  However, Family Milk has learned to strategically project demand and minimize loss and excess production.  Mr. Mechale Aregaw, founder and General Manager and Mr. Hailu Eshetu, Deputy Manager, have attributed their success through company’s legacy as a family owned and controlled company. Over the past 10 years, the family’s initial equity commitment of 2.9 million ETB has multiplied more than four fold. 

Established in 2006, the company has a dairy processing plant in the capital city of Addis Ababa.  Family Milk has managed to successfully diversify its production base through collection of milk from multiple sources, including individual and commercial farmers, cooperatives and unions, located in and around Semen Shewa, Sebeta, Holleta and Nazret. Its customer base includes retailers, wholesalers, government/NGOs, hotels/restaurants, hospitals and supermarkets in Addis Ababa and surrounding areas. Over the years, the company has progressively extended its product line.  Initially the Family Milk brand included only pasteurized milk and cream.  Subsequently, it has expanded to include ‘ayib’ (traditional Ethiopian cottage cheese), yoghurt, butter and cheese (provolone, mozzarella, feta and ricotta). 

Family milk has become a leader within the dairy industry in its efforts to influence public policy.   It is a leading advocate for the government to play an increasing role in promoting dairy products, particularly for school programs and for maintenance of quality raw milk at collection sites and in the informal market. 

Today, the company employs 114 people and has a production capacity of 15,000 liters of milk per day and produces 5,400,000 liters annually.   Family Milk strives to continuously exceed the expectations of its customers by providing reliable and consistent delivery of high quality products through withstanding the market challenges and expanding rapidly as new opportunities emerge. 

USAID, through its project Livestock Market Development (LMD), currently provides technical assistance to Family Milk in the area of securing supply chain and training of the company’s out-growers.

http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=4802:mb-private-limited-company-qfamily-milkq&catid=126:ask-questions-2

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Ethiopian Investors See Fish Farm Potential

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Overfishing, water pollution, and lack of awareness are challenges investors face if they hope to develop the nation’s first aquiculture business. They do see a huge potential of about 40,000 tons per year, however. 

A recent aquaculture trade and investment meeting with representatives from the Netherlands and Ethiopia, at Siyonat Hotel on January 28, lasted five days and was commissioned by Agri Business Support Facility (ABSF), a part of the Addis Ababa Chamber of Commerce & Sectoral Associations with support from the Netherlands’ Embassy. 

“We aim to initiate model fish farms,” said Rachel Tocklu, managing director of Teampro, the consulting company that organized the mission.

“Ethiopians learn more by example than from experimentation. We want to show fish farmers there is a better way to conduct business with higher profits while still preserving the assets of the country,” she said. 

Aquaculture in Ethiopia is still in its initial stages. The current production of capture fisheries is estimated at 16,000 metric tons. The main fish species are Tilapia, Catfish and Perch.

The necessary players in the field; fish feed producers, fish farm equipment suppliers, processers and trainers have to be recruited from scratch, creating a large source of employment. 

After 2011, the Ministry of Agriculture established seed production centers which can supply potential fish companies. It also facilitated access to credit and provided basic marketing infrastructure such as roads and communication. 

The Ministry says that Ethiopia is ripe for the establishment of a fish industry because of the country’s agro-ecologies and climatic conditions. Commercially important fish like Carp are also widely available.  The increasing demand for fish and fish products both locally and abroad and the wide variety of species are other potential positives. 

“Orthodox Ethiopians fast more than 130 days a year and fish are an excellent source of protein,” Tocklu said. 

Ethiopia’s potential for fishery development is in its 20 freshwater lakes, 12 river basins and 15 reservoirs. According to Wagenigen University, a Dutch institute, 15,156 sqm of Ethiopia’s land is suitable for aquaculture. There are 180 different species of fish in Ethiopia and 30 of those are native to the country.

http://www.ethiopiainvestor.com/index.php?option=com_content&view=article&id=4795:ethiopian-investors-see-fish-farm-potential&catid=74:top-story

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Addis Ababa: City of Transformation

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Not only is Addis Ababa the diplomatic capital of Africa, it is also one of the fastest growing cities in the world. From market availability to a hip and thriving metropolitan, Addis Ababa has much to offer for any investor rather local or international. As this safe and vibrant city is in full speed transformation, Antoine Lindley takes an insightful look at doing business in Addis Ababa. 

Diriba Kuma, Mayor of Addis Ababa; Henok Assefa, Managing Partner of Precise Consult International; Kidanemariam Berhe, Addis Ababa City Investment Agency; Benyam Bisrat, President of Addis Ababa Hotel Association; Angelo Amara, General Manager of Universal plastic Factory and Chernet Assefa, Deputy General Manager, NA Metal Industry & Engineering give their testimonies on the emerging city of Africa.

Watch the video by clicking on the link below: 

http://www.youtube.com/watch?v=O8NjfNFxXmg

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Irish Companies to bring Agri-Tech

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The technologies would be helpful to boost agricultural productivity and production 

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Two Irish Companies, MagGrow and Auranta, are expected to bring their respective agricultural technologies to Ethiopia and export to other African countries. The technologies would be helpful to boost agricultural productivity and production, Foreign Affairs State Minister Dawano Kedir said. 

After having discussion with the representatives of the companies at the Ministry, Dawano said the new agricultural technologies to be introduced by the companies would help smallholder farmers to increase their productivity by employing better chemical utilization. The technologies would add new options in the effort to increase agricultural productivity and attain the goal set for the sector in the Growth and Transformation Plan (GTP), he added. 

MagGrow Operations Director David Moore on his part said using current spraying methods available in the market only 25-35 per cent of the chemical that is sprayed to grow crops is being absorbed by the plant, with 65-75 per cent going straight to ground becoming waste. The new technology, which is supported by magnetic inserts into the spraying apparatus that impart a magnetic charge into the chemical, and the magnetized chemical is directly drawn to the target plant and attaches to the entire plant, he noted. 

David said the Controlled Droplet Application technology would allow growers to apply small droplets of 40–80 micro meters without spray drift problem. “The technology enables the grower to reduce the chemical and water that they are applying by only spraying what is needed by the plant and, therefore, reduce waste by 70-80 per cent,” he added. The technology could reduce chemical and water requirements by 65-75 per cent, increases yield by 20-40 per cent and could be configured to increase drought resistance, David said. 

Auranta Chief Executive John Cullen also said his company is the manufacturer and developer of non-toxic and organic crop strengthener which enables to prevent crop diseases and makes them grow better. “We are launching these products in North America, South East Asia, Europe and we want to launch it in Africa as well. Our research has shown us that Ethiopia is one of the best countries in Africa to start business,” he said. The technology has shown an increase in the level of yield and quality by 30 up to 40 per cent in European extensive farms, he noted.

Both technologies can be used by small-scale and extensive farmers. The technologies are expected to be officially launched till July after trials and testings are undertaken in collaboration with the agricultural research institutes on smallholder farms.

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4803&Itemid=88

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Committees assess sectors performance reports

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The Ethiopian Financial Intelligence Centre says it has almost fulfilled the requirements of the 8th action plans in a bid to stand on its feet dismembering itself from the Financial Action Task Force (FATF) public statement in the near future.

Responding to questions raised by members of Finance and Budget Affairs Standing Committee with regards to the six-month performance report of the centre, Financial Intelligence Centre Director General Gemechu Weyma said yesterday that the centre has exerted much efforts in combating money laundering and countering the financing of terrorism in cooperation with the Federal Police and its partners.

Moreover, the centre has become a member of Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and other international organizations to further intensify the fight against illegal money transactions across the globe, he added.

With regard to familiarizing the youth with anti-money laundering proclamation, he noted that the centre has provided extensive awareness creation campaigns across the nation and succeeded in bringing attitudinal changes as well.

As to empowering women, he said that the centre has established special force that looks after and protects the rights of women. A number of women have also been promoted and hired over the last six months.

In a similar move, Science, Communication and Technology Affairs Standing Committee with the House of Peoples’ Representatives criticized the six-month budget utilization of the Ministry and stressed the need for carrying out compensation tasks in the remaining months of the budget year.

After it listened to the six-month performance report of the Ministry, Committee Chairman Getachew Melese urged the Ministry officials that though 93 per cent of physical performance of the Ministry is so successful, there is a serious problem of budget utilization. Of the total budget, the Ministry has utilized only 53 per cent of budget allocated for the reported period.

Concerning telecom services the public raise varies inquiries in relation to accessibility and quality of the service. The Ministry should take temporary measures until long term solution are implemented. But the problem is remaining to various towns. One the other hand, e-government infrastructural development, citizens charter preparation, comprehensive billing service, community radio service provision, standardization and regulatory of ICT, computer refreshing tasks, high manpower turnover, auditing, IT park, rural telephone expansion, planning tasks in coordination with other stakeholders are among other shortcomings, the standing committee urges the ministry to give serious attention.

State Minister of Information Communication Technology Getachew Negash on his part said that his Ministry is relentlessly working to effectively use the budget in the remaining budget year grappling with various complicated challenges of procurement.

On the other hand, the Ministry is working seriously providing radio, frequencies and other facilitate that curb communication barriers in areas where mega projects are carrying out. Besides, increasing telecom service to rural Ethiopia, the Ministry is signing various agreements with Huawei to improve quality of the service. In addition, it is working closely with the Addis Ababa City Administration to receive land for the construction of 500 telecom sites. It is also undertaking network expansion activities to tackle the problem in a couple of months.

State Minister Peter Gatcot also said the Ministry is making utmost effort to identify reasons behind employee turnover. Most of its workers are leaving as a result of seeking better salary. But, it has been pointed out also that there exists problem of personnel administration, he said.

In a related development, the Public Financial Enterprises Agency said the Commercial, Development, Construction and Business banks of Ethiopia and Ethiopian Insurance Corporation have registered 5.62 billion birr profit. Planned to earn 5.71 billion birr, they could secure over 98 per cent profitability during the last six months (July 1, 2005- December 30, 2006 E.C). Compared to last year’s similar period, the profit has increased by over 29 per cent.

Presenting Agency’s six months performance report to Budget and Finance Affairs Standing Committee with the House of Peoples’ Representatives yesterday, Director General Dr. Sintayehu Wolde-Michael said that the four enterprises total asset has reached 255.62 billion birr. Planned to perform 256.54 billion birr, over 99 per cent of the plan is accomplished. Compared to last year’s similar period, it has shown over 25 per cent increment.

Dr. Sintayeu further said that the four enterprises total liability has reached 239.53 billion birr. It has succeeded over 99 per cent of the plan. It has also shown over 25 per cent increment. Their capital including the reserve has reached over 16 billion birr. Compared to last year’s same period, it has increased by over 20 per cent.

He also said that the Agency has been working hard in the institutions focusing on capacity building, settling good governance in the four financial enterprises and public awareness creation activities.

The four financial enterprises have made profit in the last six months meeting over 98 per cent of the targeted plan.

Budget and Finance Affairs Standing Committee Deputy Chairperson Genet Tadesse on her part said that the agency has done commendable duties in connection with the capacity building, public relation, awareness creation duties and profit making activities and among others.

However, the Ethiopian Insurance Corporation and Construction and Business Bank have registered low performance. The agency has to give due attention to these financial enterprises so as to clear out its budget utilization vibrantly and submit its budget performance report to the House.

http://www.waltainfo.com/index.php/explore/12222-committees-assess-sectors-performance-reports

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EIAR introduces new agricultural technologies among over 19,000 farmers

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The Ethiopian Institute of Agricultural Research (EIAR) said it has introduced new agricultural technologies among 19,280 farmers in the first half of this budget year.

Institute Public Relations Director, Derese Teshome told WIC that newly introduced technologies would help beneficiaries (farmers) improve productivity.

He said training was given to the farmers ahead of the distribution of new technologies so that they can adapt the technologies easily.

Some 5,463 model farmers and semi-pastoralists have received the training in the reported period, he said.

As part of the efforts to transfer knowledge and technologies, the institute has been undertaking adaptation works of 11 new technologies drawn from abroad at research centers in various parts of the country, he said.

During the past six months, the institute has also disbursed 17, 130 quintals of select seed for centers engaged in the multiplication of seed, Derese pointed out.

The institute is endeavoring to boost agricultural productivity by conducting researches in 17 centers located across the country, it was learnt.
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Zone undertaking natural resource conservation activities

Natural resource conservation activities are underway in 37 woredas of North Shoa zone, Amhara Regional State, according to zonal administrator.

The administrator, Eshete Assfaw, told WIC that more than 600,000 farmers are taking part at the 60-day conservation activities.

The farmers participating at the conservation activities being held for the fourth consecutive years are expected to contribute labor worth one million birr, he said.

According to Eshete, similar natural conservation activities carried out in the zone during the past years enabled farmers to harvest three times per year.

The ongoing natural conservation works will also improve productivity of farmers as it directly linked with their irrigation development activities, he noted.

Some 62,000 hectares of land was developed through irrigation last budget year and the development of 72,500 hectares of land is also underway this budget year, he said.

http://www.waltainfo.com/index.php/explore/12228-eiar-introduces-new-agricultural-technologies-among-over-19000-farmers

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Ministry signs Postal Service Agreement with Ethiopian Postal Service Enterprise

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The State Minister for Foreign Affairs, Dr. Yinager Dessie and the General Manager of the Ethiopian Postal Service Enterprise (EPSE), Mr. Gideyi Gebre-Yohannis, signed on Thursday (February,6,2013) a postal service agreement covering both the domestic and international postal services.

The service agreement is mainly for couriers and money transfer services. Dr. Yinager expressed Ministry’s commitment to partner with the EPSE to establish and expand effective communication services. He further indicated that EPSE would enable the Ministry of Foreign Affairs access efficient, secure and effective communication services.

Hailing its improved and outstanding service delivery, Dr.Yinager added that the Ministry attached greater importance to its partnership with EPSE in order have swift communications with international organizations, countries, embassies, Ethiopian Diaspora and other stakeholders. The EPSE would contribute a lot to the Ministry in fulfilling its defined mission, he highlighted.

Mr.Gidey on his part remarked that EPSE would continue to strengthen its cooperation with the Ministry to provide improved service delivery. He underlined that EPSE was expanding its engagement with other ministries to play its role in accelerating the political, economic and social development of the country.

http://www.mfa.gov.et/news/more.php?newsid=2998

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World Bank eyes $1 bln African resource mapping fund

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The World Bank will launch $1 bln fund to map Africa’s natural resources.

World Bulletin / News Desk

The World Bank wants to launch a $1 billion fund in July to map the mineral resources of Africa, using satellites and airborne surveys to fill geological gaps across the continent where a lack of adequate data hampers mining investments.

The World Bank has committed $200 million to the five-year fund, and was meeting with mining companies and governments from sub-Saharan Africa who have expressed interest, a senior bank official told Reuters on Wednesday.

“Times are tough, so the mining companies are counting their pennies, but there is a lot of interest because it is exactly when commodity prices are low and the companies are reducing their investment budgets that having the information to guide their priorities is valuable,” said Paulo de Sa, senior manager at the World Bank’s mining unit.

De Sa met with 10 mining companies on the sidelines of an African mining conference, including Rio Tinto and Ivanhoe Mines, who were interested in the fund.

Initially targeting southern and eastern Africa, De Sa said the fund would aim to collate existing data onto a single, digital platform that would be accessible to the public.

Besides helping to guide exploration investment, African governments could benefit by being able to negotiate better deals when handing concessions to mining companies, he said.

“If they know what they have in their territory, they are in a better position to fine-tune and calibrate the fiscal regime and mining laws,” De Sa said.

When Mozambique, for example, privatised its giant Moatize coal mine, it did not know the true potential of the coal basin until Brazilian miner Vale started exploration work.

De Sa said the bank, which has received expressions of interest from Malawi and Mozambique to assist with geological mapping, hoped to identify copper prospectivity in Zambia, Africa’s top producer of the metal.

“There is a lot more copper in Zambia than what is known, so we hope to identify the areas with more prospectivity and then the government will be able to attract more investment to areas because they know there will be a lot more certainty, a lot less risk,” he said.

The data could also be used by governments when planning infrastructure development or water resource allocations.

De Sa said the mapping fund hoped to unearth up to $1 trillion worth of new mineral resources on the continent.

http://www.worldbulletin.net/economy/128289/israeli-siege-fuel-scarcity-leaves-gaza-fishermen-in-lurch

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Egypt has no plans to take Ethiopia dam file to AU

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The project has raised fears in Cairo that the project could affect Egypt’s historical share of Nile water, which represents the country’s primary water source.

World Bulletin / News Desk

Egyptian ambassador to Ethiopia Mohamed Idris has denied reports of Egyptian plans to lodge a formal complaint with the African Union (AU) over Ethiopia’s massive hydroelectric dam project on the Nile River.

“No official decision has been taken in this regard,” Idris told a Wednesday press conference in Addis Ababa.

Within the last year, relations between Egypt and Ethiopia have become strained over the latter’s construction of a multibillion-dollar hydroelectric dam on the Nile’s upper reaches.

The project has raised fears in Cairo that the project could affect Egypt’s historical share of Nile water, which represents the country’s primary water source.

Speaking in the Ethiopian capital, Idris called for stepped-up cooperation between Egypt, Ethiopia and Sudan on the dam.

“We’ve already agreed on some aspects, while we’re yet to agree on others,” he said.

On Monday, a 45-strong Egyptian diplomatic delegation arrived in Addis Ababa for a five-day visit to Ethiopia.

The following day, delegation members met with AU Peace and Security Commissioner Smail Chergui and AU Infrastructure and Energy Commissioner Elham Ibrahim.

The delegation is scheduled to visit Ethiopia’s northwestern city of Bahir Dar– home of Lake Tana, the source of the Blue Nile– on Thursday.

http://www.worldbulletin.net/news/128326/egypt-has-no-plans-to-take-ethiopia-dam-file-to-au

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Dr. Tedros thanked WIPO for its support to EIPO

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Foreign Minister, Dr. Tedros Adhanom, met with the Director General of the World Intellectual Property Organization (WIPO), Dr. Francis Gurry, on Thursday (February 6).

Dr. Gurry noted WIPO’s readiness to work in close cooperation with Ethiopia in the areas of intellectual property, and said that despite the challenges of multilateralism, WIPO had been able to welcome the signing of the Beijing Treaty on Audiovisual Performance and the Marrakesh Treaty to Facilitate Access to Published Works for Persons who are Visually Impaired due to assistance from counties like Ethiopia.

Dr. Tedros thanked WIPO for its support to the Ethiopian Intellectual Property Office (EIPO) and underlined the need to further strengthen the partnership between the two institutions.

He also discussed Ethiopia’s bid to join the World Trade Organization and the importance of close partnerships to expedite the accession process.

WIPO is supporting EIPO in the Industrial Property Automation System project in the Patents Registry, and currently, the Automation is being extended to the Trademarks Registry System.

WIPO has also supported the establishment of the Technology Innovation Support Center which is helping Ethiopians to access technological information among other initiatives.

The discussions also covered protection offered to genetic products and traditional knowledge.

Dr. Gurry explained the negotiation process of a treaty on protection in these areas. It also offers a database to help developing countries track abusers.

He also noted that countries could learn from others with genetic products on ways to control abuse by implementing export controls and improving design capacities to save products from illegal exploitation.

http://www.ertagov.com/news/index.php/component/k2/item/2270-dr-tedros-thanked-wipo-for-its-support-to-eipo

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Premier: Ethiopia exerting efforts to get patent right for teff

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-  Ethiopia is exerting efforts to get patent right for teff, a local agricultural product and a staple food grain in the country, Prime Minister Hailemariam Desalegn said.

While discussing with World Intellectual Property Organization (WIPO) Director-General Dr. Francis Gurry on Thursday, the Premier said efforts are being exerted to get the right.

The two parties discussed ways of getting patent right for teff, as Ethiopia is the source and producer of the product.

After the discussion, Dr. Gurry told journalists that WIPO will provide training for professionals in a bid to help the country improve the quality of teff.

He said WIPO will also provide capacity building assistance to organizations to minimize wastage.

http://www.ertagov.com/news/index.php/component/k2/item/2271-premier-ethiopia-exerting-efforts-to-get-patent-right-for-teff

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World-first court trial begins as two WA farmers clash over canola

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Two farmers are locked in a court battle over alleged genetically modified canola contamination. Source: News Limited

THE Supreme Court civil trial between two farmers over alleged genetically modified canola contamination starts today.

Kojonup organic farmer Steve Marsh lost certification on 70 per cent of his property in 2010 when genetically modified canola seed and swathes were found on his property.

Mr Marsh is now suing his neighbour Michael Baxter for negligence, alleging it was from Mr Baxter’s farm that the GM canola blew from.

Law firm Slater and Gordon, who is representing Mr Marsh, said as far as it was aware, the case was a world-first to test the legal rights of farmers to choose how and what they farm on their land.

Mr Marsh is seeking damages and a permanent injunction to protect his farm from future contamination.

Mr Marsh will be one of up to 20 witnesses, including international experts.

http://www.news.com.au/national/western-australia/worldfirst-court-trial-begins-as-two-wa-farmers-clash-over-canola/story-fnii5thn-1226822425781

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Arabica Hits 9-Month High On Brazil Weather Worries

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Coffee futures prices saw big gains and sugar also moved higher as markets fretted over potential crop damage amid soaring temperatures and drought in some of Brazil’s top growing areas. Meanwhile, South Africa’s platinum mine strike continues to have only limited impact on prices.

Arabica coffee prices surged to their highest since last May on the back of concerns about potential crop damage and lower output as parts of Brazil experience soaring temperatures and drought. January was the hottest month on record and rainfall was the lowest in more than 20 years, according to the country’s meteorologists. Brazil is the world’s biggest coffee producer and arabica exporter, with arabica coffee accounting for around 75 percent of its coffee production.

Arabica for March delivery touched 144.03 cents a pound in the ICE Futures U.S. exchange in New York on Feb. 6, a level not seen for a most-active contract in nine months and more than 15 percent up on last week’s close at 125.20 cents a pound.

Robusta coffee futures prices also moved higher, touching five-month peaks of $1,879 a tonne on NYSE Liffe this week on the back of the strong arabica rally as well as a lack of selling by top exporter, Vietnam, as the country enjoyed the Tet holiday (Feb. 1-5).

A number of analysts had lowered their crop expectations early this year for Brazil’s 2013/14  crop after heavy rains hit the country’s coffee-growing belt in December. Even so, before the hot, dry weather, many analysts still had expected Brazil to see another record coffee harvest in the current 2013/14 season (Oct. 1-Sept. 30) after record production in 2012/13.

However, some analysts now believe forecasts for the country’s 2013/14 crop may be looking a little high.

Brazil’s Ministry of Agriculture, Livestock and Food Supplies pegged Brazil’s green coffee production at 49.15 million 60-kg bags, according to an International Coffee Organization (ICO) statement on Jan. 17. This estimate was comprised of 38.29 million bags of arabica and 10.87 million of robusta.  According to the ICO release, the Brazilian ministry put the final official Brazilian production figure for 2012/13 at 50.83 million bags, comprising 38.34 million bags of arabica and 12.28 million of robusta.

Bumper harvests in Brazil and elsewhere over the past several months have added to burgeoning global inventories of the beans,  miring the market in bearish sentiment for much of the past 12 months or more. Since the start of 2014, however, arabica has gained  30 percent in value.

The adverse growing conditions in Brazil also provided some support to sugar prices. Brazil is the world’s top producer and exporter of the sweetener.  Also helping prices is another deferral of a decision by India, the world’s second largest sugar exporter, on sugar export subsidies.

Raw sugar for March delivery on ICE Futures U.S. touched an intraday high of 16.38 cents on Feb. 4, the strongest for a most-active contract since Jan. 2. At midweek, ICE March raw sugar settled at 16.06 cents a pound.

Last week, raw sugar had dipped to a fresh three-and-a-half year low of 14.77 cents on Jan. 28 before finishing the week at 15.55 cents a pound.

Refined, or white, sugar futures, were also higher this week, with the March contract on NYSE LIffe settling at $439.55 a tonne on Feb. 5.  The March Liffe contract last week had dropped below $400 a tonne for the first time for a front-month contract since 2009.

Among other softs, cotton for March delivery settled at 85.52 cents a pound on ICE Futures U.S. at midweek, up 12 cents on the day but marginally off last week’s close at 85.83 cents a pound.

Cotton prices are being supported by tight supplies in the U.S, the world’s biggest export of the fiber. The market also is looking ahead to the next World Supply and Demand Estimates (Wasde) report from the U.S. Department of Agriculture (USDA) which is scheduled for release on Feb. 10. The latest USDA data is expected to show a drop in U.S. stocks of cotton.

Cocoa traded at slightly lower levels after touching 28-month highs in New York and London last week, with March cocoa settling at $2,882 a tonne on ICE Futures U.S. at midweek, while London Liffe March contract finished at £1,846 a tonne.  The ICE March contract had reached an intraday high of $2,933 a tonne on Jan. 28 and Liffe March cocoa had hit £1,853.

Analysts said cocoa remains supported by ongoing supply/demand concerns with the market currently watching the dry weather conditions in top grower Côte d’Ivoire ahead of the start of the mid crop harvest which typically begins in that country in May and runs through to August.  Prolonged dry weather could lead to harvesting delays.

http://afkinsider.com/41459/afki-commodities-report-arabica-hits-nine-month-high-brazil-weather-worries/

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Ministry to execute over 2 bln USD WASH Program

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The Federal Ministry of Water, Irrigation and Energy announced that it would execute water supply and sanitation software and hardware activities at a cost of 2.411 billion USD in the One WASH National Programme (OWNP) throughout the country.
Opening the 6th Water Supply, Sanitation and Hygiene (WASH) Multi-Stakeholders Forum held with the theme: “Innovative One WASH for Sustainable Development”, Minister of Water, Irrigation and Energy Alemayhu Tegenu said here yesterday that the programme would be the main instrument for the universal goals that are to achieve 98.5 per cent, 100 per cent, 77per cent and 80 per cent in water supply, basic sanitation, hand washing and open defecation free status respectively.
He noted that an additional 20,000 artisans, experts, technical groups, consultants, contractors and specialists as well as 5,000 junior health professionals are required to undertake water supply and hand sanitation activities in the One WASH Program.
As regards obtaining the huge financial and human resource requirement of the program, he called for development partners, stakeholders and the public at large to play their respective roles towards achieving the program.
UNICEF Ethiopia Representative Dr. Peter Salama, as one of the partners in WASH sector said: “We have now formalized the first ever pool fund for water and sanitation sector in Ethiopia.” The implementation of the ONE WASH National Program would provide a vehicle to reach both the Sanitation and Water for all (SWA) and MDGs Commitments.
At the two-day Multi Stakeholders Forum, State Ministers of Education, Health, Finance and Economic Development Ministries as well as representatives of potential stakeholders of WASH and others delivered keynote speeches.
In connection with the Forum, an exhibition that displays various types of materials and chemicals for the use of purifying water was officially opened to the public.

http://www.waltainfo.com/index.php/explore/12231-ministry-to-execute-over-2-bln-usd-wash-program

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Investing in a country that doesn’t exist: Somaliland’s hard sell

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Photo: Somaliland troops march past during a parade to mark the 22nd anniversary of Somaliland’s self-declared independence from the larger Somalia, in Hargeisa May 18, 2013. REUTERS/Feisal Omar.

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Somaliland, the self-declared republic, is desperate for someone to find vast mineral reserves under its soil. But without international recognition – and the probability of legal battles in the future – it’s a big risk for any country to take. Somaliland too should be careful. Having dodged the aid curse, will they fall victim to the resource curse instead? By SIMON ALLISON.

At the recently concluded Mining Indaba in Cape Town, Somaliland’s energy minister Hussein Abdi Dualeh had possibly the hardest sell of all. It was his job to convince the assembled mining bigwigs that his country was a viable, risk-free environment in which to invest millions and millions of dollars – all on the hope that there might be base and precious metals hidden somewhere under its drab scrubland.

He tried hard. “We have also a unique geographical location,” the minister said in his speech at the conference. “If you have a mineral deposit and if you exploit it, it will be very cheap to take to market…it’s definitely much less costly than a really getting fantastic deposit the middle of continent, which will cost you really huge amount of money to export it…even the small deposit is commercially viable considering the logistics involved in taking the minerals to market.”

It was a good effort, but will it be enough? There are, after all, a few other factors which mitigate against Somaliland becoming Africa’s next mining hotspot.

The biggest problem is that Dualeh’s country is not actually a country. Officially, legally, Somaliland is a territory of the Republic of Somalia. A rogue territory at that, one which refuses to answer to the writ of the central government in Mogadishu. It considers itself independent, and operates accordingly, with all the trappings of sovereignty: the flag, the currency, the national anthem. Dualeh himself is part of Somaliland’s government, which is chosen in free and fair elections every five years (some say Somaliland is the most functional democracy in the Horn of Africa, and there’s substance to this description).

This de facto autonomy is no bad thing: while Somalia proper has been mired in civil war and violence for the last two decades, Somaliland has been stable, secure and relatively prosperous; its self-declared independence a conscious attempt to isolate itself from Somalia’s chaos, and, by and large, it has worked.

But as Somaliland seeks to develop this independence – not formally recognised by anyone else in the world – it is also held back. As miners contemplate entering Somaliland, they have to first ask and answer some tough questions about whether the government in Hargeisa has the authority to grant exploration licenses in the first place; and, once granted, if those will be honoured if and when Mogadishu is in a better position to assert rights of its own.

Already, these problems have crippled Somaliland’s oil sector. For years, oil exploration was dormant as companies fought over ‘legacy contracts’ (those granted in the late 1980s by dictator Siad Barre’s Mogadishu-based regime) and new contracts issued by the Somaliland government. Exploration has now started, but getting to this point was a long and complicated process.

Minister Dualeh claims there are no legacy contracts that could influence the mining sector – but that doesn’t mean there won’t be problems in the future between the two competing centres of power.

Somaliland’s lack of formal independence has also cut it off from another lucrative source of income: aid money. Almost all international aid to Somalia is all channeled through Mogadishu. With the exception of a few minor United Nations programmes, Hargeisa gets nothing.

Not that Hargeisa minds. Dualeh argues that the lack of aid has actually worked in Somaliland’s favour. “That is a blessing in disguise. Aid never developed anything,” he told Reuters’ Ed Stoddard on the sidelines of the conference. “Aid is not a panacea, we’d rather not have it… How many African countries do you know that developed because of a lot of aid? It’s a curse. The ones that get the most aid are the ones with the problems.”

Intrigued by this counter-intuitive position, the Daily Maverick contacted Minister Dualeh and asked him to elaborate. “There wasn’t really any aid opened to us because we weren’t recognised,” Dualeh explained in a telephone interview. “We’re not like Kenya that get 40% [of its budget from] aid money; tangible aid hasn’t been coming our way because of our political status. Aid comes with strings attached but we don’t have any of that. We don’t owe anything to anyone.”

In practice, Dualeh believes that this leaves Somaliland free to make its own decision, unbeholden to any external backer that might not have the territory’s best interests at heart. “We have our own organic solutions to our problems; we have no outside influence; I think a lot of the good things that have happened to us are because we have found our own solutions.”

As an example, Dualeh cites the original decision to break away from the then-Federation of Somalia in 1991. This, he argues, was Somaliland taking its destiny into its own hands. In Somalia proper, on the other hand, decades of foreign meddling has just made the situation worse. “The difference between us and Somalia is that we sat down under the proverbial big tree and we basically stated our independence and tried to find our own solutions through uniting; we found a solution that has resulted in power right now, with no war or conflict.”

Somaliland may have avoided the aid curse, but as Dualeh seeks to drum up investment in the mining sector he would do well to recall the lessons of other African countries, where the curse of vast mineral wealth has proved just as devastating. Dualeh dismisses these concerns. “The resource curse is just a cliché. We’re not taking it lightly, we are trying to avoid it by making sure that we have good governance and good legal regimes to make sure that everything gets sorted ahead.”

In the Horn of Africa – a part of the world not famed for good governance or tight legal regimes – this might just be the one thing that Somaliland has going for it.  DM

http://www.dailymaverick.co.za/article/2014-02-10-investing-in-a-country-that-doesnt-exist-somalilands-hard-sell/

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Read more:

• Somaliland blessed by dodging aid ‘curse’ on Reuters

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Africa needs to link mining with development plans

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Susan Shabangu, South African Minister of Mineral Resources and Jonathan Moore, Mining Indaba MD 

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On the margins of Africa’s largest annual mining conference, Mining Indaba, multilateral development organizations have called on the private sector to join forces with them in ensuring the revenues from mining are reinvested in people.

Issued on the newly created Africa Mining Vision Day, the call comes amidst a downward trend in commodity prices and in particular minerals, which has raised uncertainty on the momentum of the continent’s sustainability agenda.

For instance, during the first four months of 2013, mining stocks fell nearly 20%.

Industry leaders, ministers, policy-makers, members of academia and international organizations will be urging the private sector to play a stronger role in fast-tracking the implementation of the African Union (AU)’s Africa Mining Vision, which aims to ensure the extractives sector can boost social and economic development across the continent.

“AMV Day 2014 would be the first of a long term process of dialogues and partnership building with a view to increasing mutual understanding on how to promote sustainable development in the extractive sector in Africa and the need for mutual benefits between host country and mining companies,” said the hosts and partners.

AMV Day is hosted by the African Union Commission (AUC) and the African Minerals Development Centre (AMDC), housed by the United Nations Economic Commission for Africa (ECA), in close collaboration with the African Development Bank (AfDB), and the United Nations Development Programme (UNDP). It is supported by Australian Aid and the World Bank.

Nearly one quarter of Africa’s Gross Domestic Product (GDP) is now based on extractive resources, the highest ratio among all regions. Between 2000 and 2008 alone, the value created from natural resources in Africa rose from $39.2 billion to $240 billion.

The extractives sector is expected to play a catalytic role for development in many African countries. To that end, the resources from mining need to be reinvested in infrastructure and further growth, while opening opportunities for economic diversification and transformation.

Management of mining revenues will entail the creation of more effective public-private partnerships and closer involvement from other stakeholders, including local communities and governments.

Achieving broad-based, sustainable development means establishing the right environmental safeguards, but also fulfilling a number of economic and social priorities.

For instance, participants will underline that the need to guarantee environmental sustainability, distribute the benefits from extraction effectively, create social safety nets, invest in skills and infrastructure and intensify agriculture to create jobs and bolster food security.

In December, ECA, AUC, AfDB and UNDP launched the African Minerals Development Centre (AMDC) to help implement the Africa Mining Vision.

The new hub will help implement the African Mining Vision, which aims to ensure Africa’s mineral resources can support economic growth and development. It will translate that vision into practical solutions for reducing poverty and involving people in development.

Experts and researchers will be made available to help countries implement the vision, advising governments, businesses and civil society organizations on issues such as licensing, geological and mining information systems, artisanal and small-scale mining and investments in diversification.

The one-day event will look at a diversity of topics, including private sector involvement, building local skills and establishing sustainable business agendas.

http://www.biznisafrica.co.za/africa-needs-to-link-mining-with-development-plans/

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$75 Billion Investment in Ethiopia Infrastructure

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By Cynthia Lasher

 

Approach into Addis Abeba in the late afternoon

A $75 billion 5 year growth plan to invest in Ethiopia infrastructure means constant building in the city of Addis Ababa.  The challenge is to redevelop existing neighborhoods, many which are slums in a metro area that is expected to grow to 5 million in the next 10 years. Plans are underway to convert half of the slums to permanent housing within the next decade.

Related articles

•      Ethiopia Will Seek Sovereign Credit Rating to Lure Investors – Bloomberg
•      Collective Confusion
•      Saudi Billionaire Al-Amoudi Plans Two Cement Plants in Ethiopia –

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Ethiopian irrigation minister invites Egypt for more ‘Renaissance Dam’ talks

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Egypt’s irrigation minister Mohamed Abdel-Motteleb will go to Addis Ababa on Monday, but has already said that Egypt is not ready to compromise on its previous stance to the Ethiopian dam project

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Ethiopia’s Great Renaissance Dam is constructed in Guba Woreda, some 40 km (25 miles) from Ethiopia’s border with Sudan, June 28, 2013. (Photo: Reuters)

Ethiopia’s irrigation minister has invited his Egyptian counterpart to the capital of Addis Ababa for further talks on Monday, in hopes of ending a political impasse between the two Nile countries over a proposed hydroelectric dam.

Al-Ahram’s Arabic news website reported on Sunday that Egyptian irrigation minister Mohamed Abdel-Motteleb had accepted the invitation from Ethiopia’s Alemayehu Tegenu and will travel with members from his ministry’s Nile water sector as well as the country’s foreign ministry.

Ahead of the talks, however, Abdel-Motteleb announced that Egypt’s position on Ethiopia’s Grand Renaissance Dam “is fixed,” a harbinger that Monday’s negotiations may not offer the kind of compromise that Ethiopia may be hoping for.

According to Al-Ahram, Motteleb said that Ethiopia could still achieve economic prosperity without impeding upon Egypt’s access to the Nile.

When completed, the $4.2 billion dam will be the largest in Africa and number 10 in the world in terms of electricity production.

The two countries have been locked in a political feud since news of the dam was first aired on Egyptian TV in 2013, with Cairo arguing that the project will diminish its supply of the river’s water.

Last June Ethiopia’s parliament ratified an international treaty granting upstream countries the right to implement irrigation and hydropower projects without seeking Egypt’s approval.

For decades, Egypt held veto rights over all upstream projects thanks to a 1929 colonial-era agreement in which the UK gave Egypt and Sudan the majority of the Nile’s water rights.

Several rounds of negotiations over the dam have already taken place between Egyptian, Ethiopian and Sudanese water ministers in the Sudanese capital of Khartoum to study the dam’s possible effects and try to generate consensus.

However, the tripartite committee’s success was thwarted last December when Sudanese President Omar Al-Bashir announced his support for the dam during a meeting with Ethiopian Prime Minister Hailemariam Desalegn.

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http://english.ahram.org.eg/NewsContent/1/64/93810/Egypt/Politics-/Ethiopian-irrigation-minister-invites-Egypt-for-mo.aspx

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Ethiopia has much to offer: Diplomat

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Ethiopian officials welcome visitors at the Jeddah International Travel & Tourism Exhibition at the Hilton hotel. — SG photo

Saleh Fareed Saudi Gazette

JEDDAH — Ethiopia and Saudi Arabia have had long standing relations for many centuries in terms of business, tourism, religion and people-to-people contact, according to an Ethiopian Consulate official.
Speaking to Saudi Gazette at the 2014 Jeddah International Travel & Tourism Exhibition (JTTX), which took place from Feb. 4 to 6 at Jeddah Hilton, Deputy Consul General (Business Section) Sherif Keri Osman emphasized the strong historical relationship the two countries have shared since the time of the Prophet Muhammad (peace be upon him).
Describing the depth of his country’s historical and distinguished relations with Saudi Arabia, he said: “I believe we share so many things with Saudi Arabia and we still enjoy a close relationship despite problems that have occurred lately.
“However, both parties are working hard to improve ties.”
He noted that Ethiopians would not face any problems in the Kingdom as long as they respect and comply with Saudi laws.
He said the Ethiopian Consulate in Jeddah participated in a fair to promote the country as a potential tourist destination for Saudis.
“We wanted to sustain the strong influx of Saudi travelers to Ethiopia during our participation at the 2014 Jeddah International Travel & Tourism Exhibition. We are showcasing our nation’s tourism products globally, which has helped enable Ethiopia to promote its natural, cultural and historical attractions to the rest of the world,” he said.
Ethiopia has the potential to gain maximum benefit from the sector but has to do more to promote its tourist destinations, he added.
During the fair brochures and organic Ethiopian coffee were served to visitors at the Ethiopian stand and a discussion was also held with potential tourists and various local travel agencies.
Osman noted investment was also a growing area of cooperation between the two countries.
He said a growing number of Saudi businessmen have invested $369 million in different sectors in Ethiopia.

http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20140210195245

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     Egypt, Russia Seal $2B Arms Deal 

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Saudi Arabia and UAE foot the bill for sale of advanced defense systems, helicopters, aircraft and anti-tank missiles.

By Gil Ronen and Ari Soffer

Egypt has concluded an arms deal with Russia worth $2 billion, a senior official source told Egyptian daily newspaper Al-Masry Al-Youm, noting that the Egyptian and Russian sides reached agreement on all details of the agreement over the past few weeks.

The source, who asked not to be named, said the two Gulf kingdoms of Saudi Arabia and the UAE played a “vital role” in sealing the deal.

The official revealed that the first tranche of Russian weapons to Egypt will be delivered before mid-2014. The delivery and payments will both be phased, he explained.

In November, Russia declared that it had received an Egyptian offer to buy advanced defense systems, military helicopters, MiG-29 aircraft and anti-tank missiles with a combined value of $2 billion. The overall cost of the purchase was in fact double, but cash-strapped Egypt would only pay half of that, according to the source. The apparent show of Russian largess was no act of altruistic generosity, however; the Kremlin has been aggressively capitalizing on perceived American weakness in the Middle East to – particularly over crises in Iran and Syria – to expand its own sphere of influence in the Arab world, which until recently was limited to Syria.

According to reports in a Kuwaiti newspaper late last year, one of the objectives of the arms deal was to enable a newly pro-Russian Egypt to achieve military parity with the United State’s closest ally in the region: Israel.

Saudi Arabia and the UAE, along with Kuwait, have been Egypt’s top Arab financiers following the overthrow of Islamist president Mohammed Morsi, with financial and in-kind aid totalling about $12 billion. Since the overthrow of Morsi’s predecessor Hosni Mubarak in 2011, the north Africa state has seen its economy go into a virtual free-fall, and now relies heavily on foreign support.

Saudi Arabia’s intelligence chief, Prince Bandar Bin Sultan al-Saud, reportedly told European diplomats in October that his country plans to scale back its cooperation with the US in efforts to arm and train Syrian rebels, according to the Wall Street Journal.

The decision was said to be the result of Riyadh’s “frustration” with the Obama administration’s foreign policy in the Middle East, and reflects a growing sense of discontent by one of America’s staunchest Arab allies.

That statement came days after the Gulf Kingdom surprised observers by turning down a temporary position on the United Nations Security Council, in what it said was a protest at the Security Council’s ineffectiveness in solving regional conflicts.

Saudi Arabia is also said to be concerned about American overtures to its arch-foe, Iran, and alarmed at what they see as an incoherent and weak American Middle East strategy.

“The Saudis are very upset. They don’t know where the Americans want to go,” WST quoted a “senior European diplomat” as saying.

http://www.israelnationalnews.com/News/News.aspx/177248

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Ethiopia tries to crack down on livestock black market

By Matthew Newsome, in Addis Ababa, 11-Feb-2014

http://www.globalmeatnews.com/Industry-Markets/Ethiopia-tries-to-crack-down-on-livestock-black-market

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 MH Engineering Won Design Competition for EIC’s HQ Building

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MH Engineering PLC won the architectural design competition of Ethiopian Insurance Corporation’s multi-purpose building, Capital reported.

The second and third runner ups, Image Consultancy PLC and Virtual Consulting PLC were awarded trophies.

Located around Ambassador park area on 12,000sqm, the construction of the corporations 33-storey building is estimated to cost 2.2 billion birr, according to Capital. The building will be used as the corporation’s headquarters, and the remaining space will rented out to other commercial services.

Since the corporation secured the plot for the construction of its headquarter in 2012, 21 consulting and engineering companies competed. Five designs were chosen as finalists and their designs were displayed at the Sheraton on February 4, the day of the award.

The Ethiopian Insurance Corporation was established in 1968. The corporation provides more than 15 types of life insurance as well as more than 30 non-life Insurance policies.

MH Engineering PLC was established in 1997. Since its formation, the company has designed and supervised the construction of over 300 buildings, according to Capital.

http://www.2merkato.com/news/alerts/2836-ethiopia-mh-engineering-won-design-competition-for-eic-s-hq-building

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Moody’s in Town

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 While the Ministry of Finance and Economic Development (MoFED) stayed in contact with Lazard Limited Bank and asset management, a French company that is recruited to initiate proceedings for credit rating and select an agency, officials of one of the three well-known rating agencies in world, Moody’s, are reported to be in town this week.   

http://www.thereporterethiopia.com/index.php/news-headlines/item/1604-moody’s-in-town

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Court Upgrades CCMS Data Base System

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The Federal Supreme Court (FSC) has upgraded its 2.4 version of Court Case Management System (CCMS) to the latest 2.5 version with a view to rendering timely and efficient services to its clients.

The court has adopted various new technologies in a bid to facilitate its day-to-day activities and satisfy the interests of the court clients, says Medhen Kiros, Federal Supreme Court Vice President.

“The newly upgraded CCMS Data Base System enables anyone who wants to know the status of his/her case online using the court website as long as there is an Internet connection,” he said. “It includes more than thirty pieces of information than the former System and helps to investigate and prevent criminal acts as well.”

The system would play an enormous role in protecting the rights of children against violence, entering full data with regard to lawsuits of adoption, inheritance and civil code, among others.

Currently 23 courts are using video conference to preside over various cases throughout the country.

http://allafrica.com/stories/201402111046.html

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Meles Memorial Library, ICT Centre inaugurated

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Addis Ababa - Meles Zenawi Hub Library and ICT Centre was launched and handed over the Ethiopian Civil Service University (ECSU) as one of ‘Thank You Small Library’ Programme at the university main campus here on yesterday.
The programme was sponsored by UN WTO Sustainable Tourism for Eliminating Poverty (ST-EP) Foundation and the Korean Ministry of Culture and Tourism.
Civil Service Sate Minister Adamu Ayana said that the donation of books, multimedia and other educational equipment significantly contribute to build the capacity of institutions and human resource in various sectors.
ESCU President Dr. Haile-Michael Abera noted that the donation is part of the assistance of ROK government to Ethiopia to build the capacity of civil servants and support the educational training and research activity in memory of the late Prime Minister Meles Zenawi.
Ambassador Dho Young-Shim, Chairperson of the UNWTO- Sustainable Tourism for Eliminating Poverty Foundation and UN MDGs Advocate also said: “I was born when Korea was very poor. Now, it has advanced economy in the world not because of natural resources but because of books .Thus, Ethiopia has also to focus on books.”
South Korean Ambassador to Ethiopia Kim Jong Geun said that since the establishment of the first pilot project in Accra, Ghana in 2007, the Thank You Small Library initiative focuses on establishing small libraries in underprivileged communities where students do not have access to reading facilities.
“ESCU students —brimming with talent, energy and hope— would make a great contribution to Ethiopia’s development by drawing upon the wisdom they acquire from books delivered today,” the ambassador said.
ESCU President and Ambassador Dho Young-Shim on the occasion signed an agreement to set up and manage the UN MDGs. The Ambassador has also handed over 6,000 books to the ESCU President.
According o the Ethiopian Herald, the library and the centre valued at about five million birr.

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Delay in transformer provision strangling water projects

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Yergalem transformer burnt after three days of service

Photo: Ministry of Water,Irrigation and Energy

Oromia State–The supply of clean water and sanitation services to the public is among the overriding concern of the government. The preoccupation is well founded. Despite the nationwide increased clean water coverage –67 per cent – the public’s cry for sustainable clean water and sanitation services, more than ever, is getting loud.

As part of its regular schedule, the Natural Resources and Environmental Protection Affairs Standing Committee of the House of Peoples’ Representatives (HPR) last month inspected eight water expansion projects in Oromia and Southern Nations, Nationalities and Peoples’ (SNNP) states. Beginning at Bule-Hora committee members concluded their visits at Sebeta town Oromia State.

The visit was aimed at assessing the progress of various government-run projects. It as well eyed at identifying challenges and replicate best practices.

In general, the Committee was very happy with the projects’ performance. It gave directions and set time frame for the remaining works. It also reprimanded some for lack of commitment and accountability.

“The remaining tasks have to be completed according to schedule. The public’s cry for water has to be heard. We all have responsibility and accountability to the public.”

The Committee also urged all stakeholders to enthusiastically see to the completion of the remaining works. “They have to ensure the completion of the much awaited water projects giving due attention to the significance of public mobilization and participation to create a sense of community ownership.”

Despite the many millions of hard earned dollars invested by the government as well as development partners alike and the completion of the projects’ construction works, except Yergalem (partially) and Alaba, not a single drop of water has reached taps to the despair of the communities. The major problem impeding the projects from going operational is delay in the provision of transformers. Failure of those at hand to effectively serve makes the problem even worse. The problem is also attributed to tardiness in the supply of pipes and fitting ( electro-mechanical), lack of cooperation and coordination as well as negligence in monitoring and accountability.

Berket Melkamu is Bule-Hora Water Expansion Project Resident Consultant. According to him, the three new boreholes are capable of pumping 68 liters per second and also have enough clean water to serve the town with a population of over 91,000. “Initially, the plan was to finalize the construction in one year but was delayed by eight months. Delay in the acquisition of transformers, pipe supply and fitting as well as resolving boundary demarcation are some of the factors affecting the execution of the project.”

Getahun Tagessee, G.T.B Engineering Manager also said the 91 million birr project is 98 per cent complete and designed to serve for 20 years. “Though we settled the payment for the purchase of a transformer six months back, we have not received nor heard appropriate response from EPPCo. But, we have already begun the installation of power lines.”

The same story is true with Yergalem, Meki, Modjo, Bishoftu, Burayu and Sebeta projects. Almost all civil construction works are through. In some cases, the electro-mechanical as well as pipe fittings are completed while some are in the process but no transformers are in sight. More shockingly, of the two delivered for Yergalem, one was burnt-out only after three days of service.

Ethiopian Power Authority (EPA) SNNPS Branch Marketing Head Tadele Merga said the transformer delay was caused due to increased demand. Currently, Metal and Engineering Corporation, is manufacturing transformers. “Hopefully, the problem will be addressed soon. But, I have no information about the burnt-out transformer.”

EPA External Relations Head Miskir Negash also said supplying power to water projects is Agency’s priority. The delay is attributed to the growing demand for transformers. “ It is a matter of time. METC is manufacturing and supplying world standard transformers.”

But he could not fix an exact time. “We will try to prioritize but we cannot give a definite time frame. People have to wait patiently.”

The other complaint voiced by contractors, engineers and water bureaus is lack of cooperation and coordination between sectoral bureaus.

The main water pump was laid at Modjo in the area now demarcated for the new Addis-Djibouti railway crossing point. Now the pumps are dug. They are lying on the ground, waiting for a decision to lay them over or under the railway lines.

Town Water Utility Enterprise Head Yehualshet Demi said the total cost of the water expansion project is over 95 million birr. Almost all the civil and electro-mechanical works are completed. But discussion on right-of-way is still going on between the Water Bureau and the Ethiopian Railway Authority.

“Formal and informal communications have taken over a year. Now, we have reached at a verbal agreement to seal and lay the pumps under the lines. But we are not sure when the decision will be translated into action,” he added. Though we had paid for five transformers years back still none is supplied.

“ The right time for a solution is now. We urge the Committee to help us solve the right-of -way deadlock. We have tried our level best but things have proved beyond the Bureau’s capacity.”

Deputy Mayor Gido Lemma said currently, the town’s water shortage is very severe. “If one goes there right now, one will see many carrying yellow jerry cans in search of water. Some have even reverted back to drinking the contaminated river water.”

“The public demand for clean water is legitimate and the delay is associated with lack of good governance. The public is loosing confidence in us.”

The other serious obstacle is lack of commitment and accountability which is conspiring against the public legitimate right to clean water.

Like other projects, Sebeta also suffers from delay owing to problems related to transformer and pipe fitting works and delivery. The project was expected to be completed in one month but it might take another three months or more, said Ziad Geletu the Resident Consultant.

United Contractors is one of the five contractors responsible for lot 4 pipe fitting works which is lagging behind but also key to the overall project completion. “ So far, only 58 per cent has been accomplished on the site and 14 per cent of pipe fitting is not yet delivered.”

Asked whether the contractor could deliver and complete the fitting within 20 days set by the Ministry and the Committee, he said: “ We have ordered so, but we are not sure when it will be delivered. It might take up to three months.”

The response from the committee and the State Minister was strong. The government is determined to provide clean water for citizens. But negligence and incompetence are becoming hindrances.

“ It was the consultants’ job to monitor contractors to complete projects on time. They should be on the client and the public side not on that of the contractors.”

Water, Irrigation and Energy State Minister Kebede Gerba also reprimanded the contractor and the consultants. “ The Ministry can and should take action. Unless you rise up to your objectives your licences will be revoked.”

http://www.ethpress.gov.et/herald/index.php/herald/news/5908-delay-in-transformer-provision-strangling-water-projects

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Services Shortages Stunt Housing Developments

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The deadline for a number of condominiums has been pushed back due to shortages in electricity and water  

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Water and electricity shortages are hampering the proper and timely construction of condominium houses at the Bole Arabsa site – the biggest of the numerous housing projects in Addis Abeba.

The 20,023 houses are located close to Bole International Airport. They are part of the 50,000 planned to be constructed by the Addis Abeba City Administration during the 2013/14 fiscal year.

Water scarcity has been forcing the project managers to fetch water from as far away as 10 km.

“Big vehicles have been transporting water to the project site,” HaileliulGetye, Kirkos project manager under the Addis Abeba Housing Agency,informed a crew of journalists, who moved to the site with officials from the Ministry of Urban Development & Construction (MoUDC) on Friday, February 7, 2014, to visit the construction of 40/60 and 10/90 condominium houses. “There are times when up to 50 big water tankers are transported within a single day.”

The Agency plans to transfer 26,000 houses under the 20/80 and 14,000 houses, for the first time, under the 10/90 scheme, in 2013/14. Close to 3,000 of these units will be stores for rent.

Divided into three sub-projects, the Bole Arabsa project includes Lideta, Kirkos and Project 15. It has 674 buildings up to seven storeys high. The project covers an area of over 230 hectares.

Although the plan was to finish construction by the end of the 2013/14 fiscal year and distribute the homes to beneficiaries, shortages in transport, water, electricity and other basic facilities has forced the Agency to extend the deadline to the middle of the 2014/15 fiscal year.

Road and transportation issues are also hindering the speed of the construction. Approximately 252 project staff members, 288 contractors, five consultants with full staff and 430 micro & small enterprises (MSEs) with an 8,000 strong labour force, find it difficult to come to the project site, as they live far away, much closer to downtown Addis Abeba, according to Haileleul.

“We have nine city buses providing a transport service, but it still falls far short of meeting the demand,” he lamented.

Working under all this pressure, the project has constructed 65pc of the 10/90 houses, which are all two storey buildings. The construction of the 20/80 houses has reached 55pc completion.

The government planned to construct 95,000 houses in Addis Abeba in the year 2012/13 at a cost of 16 billion Br.

Another site visited by the crew is the YekaAbado project, located close to Sendafa, 40 km from Addis Abeba. Covering an area of 250 hectares, the project started in 2011 and has 570 buildings, ranging from two to seven-storey buildings. The project manager, WerkuAbera, says there are 367 contractors at the site and 570 MSEs, with more than 8,000 members. Some projects are 65 to 89pc completed.

In the 40/60 housing scheme alone, 50,000 houses will be built at a cost of 26.05 billion Br. A total of 10,000 of them will be completed during the 2014/15 fiscal year. The financing will be secured from “different finance sources,” according to the executive summary of activities released by the Addis Abeba City Administration, in July 2013.

http://addisfortune.net/articles/services-shortages-stunt-housing-developments/

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Heineken receives Fermentation tanks

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After a wait of six weeks, Heineken Greenfield Brewery finally received six new fermentation tanks on February 7.

The tanks came to the country via the Djibouti route.

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Heineken entered the Ethiopian market when it purchased Bedele Brewery S.C. and Harar Brewery S.C. for USD 163.4 million in 2011. It expended an additional 45 million Euros to upgrade the two breweries.

It has since started construction of its new Greenfield brewery Kilinto which will start production later this year according to the company’s public relations office. The cost of the factory is over 127 million Euros.

Heineken is not the only international brewery interested in Ethiopia. United kingdom based Diageo leveled the playing field a bit by purchasing Meta Abo Brewery for USD 225 million. The other global giant interested in the game is Bavaria N.V. Brewery which owns 49.9 percent of Habesha Breweries S.C.

The production capacity of the new brewery which stands on a 25ha plot is estimated at 1.5 million hectoliters. Ethiopia’s average annual beer consumption stands at five liters per person annually, while Kenya’s is 12 liters. The Czech Republic tops the list with 131.7 liters a person.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4027:heineken-receives-fermentation-tanks&catid=35:capital&Itemid=27

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Ministry finalizes construction industry draft proclamation

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The Ministry of Urban Development, Housing and Construction presented its final draft proclamation, the first of its kind in the sector, for discussion with stakeholders. The proclamation would help to create accountable and transparent ways of operation in the construction industry.

Briefing forum participants yesterday, State Minister Haile-Meskel Tefera said the new draft proclamation will enable ensure competency and foster quality in the construction industry. It adds to the strategy of collecting all the necessary data related to the construction sector which was missing in the previous working system, he noted. “It could enable us register and evaluate performance contractors, experts and consultants in the sector,” he added.

Haile-Meskel said the new proclamation is mainly vital for the flourishing of professionalism in the industry. The services in the sector need to be rendered with ultimate quality based on ethical standards, he said. As the proclamation helps to fill gaps in quality, timeliness and other present challenges, it would create better benefits for the users, he noted.

In contrast to the previous way, those who want to engage in the construction sector must first have letter of competence before trade license, when this proclamation is ratified and becomes a governing law in the sector. A new registration body is expected to be established to enforce the proclamation. The proclamation allows those engaged in the sector to submit complaints related to registration and other issues to a committee that would be formed.

It also stipulates that any one found operation in the sector without letter of competence would be fined from 150,000 up to 300,000 birr and from seven to 15 years of imprisonment. Those who intentionally make contracts with any one who does not have letter of competence will also face punishment, according to the proclamation.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5913-ministry-finalizes-construction-industry-draft-proclamation

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Africa’s Green Revolution is Ready to Go: Just Add Investments

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African agriculture is about to flourish. Africa is one of the most fertile regions on Earth, with 60 percent of the world’s uncultivated arable land.

While one in four Africans still go hungry, and the continent still imports 40 percent of its food needs, we believe recent developments all across Africa shows tremendous promise; so much so that we are now investing significant amounts of our own money in African agriculture ventures.

Africa’s huge potential is an opportunity far beyond the continent itself. It could be a driver of global growth and food security. Over the past decade, the continent has harbored some of the fastest growing economies in the world, to a large extent linked to oil, gas, and mining.

Growth like that draws investors looking for further opportunities – and African agriculture has abundant opportunities: in equipment, transport, irrigation and infrastructure; investment for farmers to go from subsistence to commercial farming; and investment in training, research and support for smallholders as well as small and medium enterprises. Such investments could deliver manifold returns; for the investors, yes, but also in terms of jobs, food security and better incomes for small farmers.

Yet, Africa still lacks viable ways of channeling investment money to the millions of dynamic entrepreneurs with viable business ideas in sectors such as farming, aquaculture and agro-processing. Indeed, Africa is losing potential investments each year worth huge amounts of money. This loss has knock-on effects for jobs and economic growth.

The challenge is to remove the obstacles that prevent this investment money from reaching African opportunities.

Chaired by former UN Secretary-General Kofi Annan, the Africa Progress Panel will this year explore ways of meeting this challenge. Its report will focus on how African farmers and fishing communities can access the money they need to create green and blue revolutions in Africa.

One crucial priority is to reduce the cost of money. Real interest rates on loans to agricultural projects (and to small shops and industry ventures, for that matter) exceed 20 percent in many African countries. No business can thrive if it has to borrow at such rates. It should be possible to get these rates well below 10 percent – even in so-called frontier markets – if we simplify banking, reduce perceptions of risk, and introduce functioning insurance.

Venture capital and equity must also be made more available. Financing from international and regional financial institutions could be put to good use by guaranteeing and underwriting equity investors who invest in small enterprises. And we need to make Africa’s stock markets accessible to small and international actors.

Farmers also need well-regulated commodity exchanges so they can sell their products at global market rates, rather than to monopoly buyers who squeeze the prices.

Should governments just “get out of the way” and let the private sector sort these questions out by itself? Absolutely not. If the past five years of global crisis have taught us anything, it is that markets work best when they are well regulated for the benefit of society.

Governments need to ensure, for example, that smallholder farmers – especially women – can access new sources of credit and equity, and that they are not squeezed out by large agribusiness. Governments can encourage the creation of co-operatives, provide technical support and training, help with the development of new seed varieties, invest in roads and water systems, and protect against predatory investors.

Africa needs large, commercial farms as well as small ones. But it doesn’t need foreign investors who appropriate Africa’s land and water to supply food and biofuels to other countries, while creating few jobs and driving populations off the land. Only strong and principled policies by responsible governments can ensure the right balance between large and small, foreign and local.

Such a balance is already being struck in some countries. Nigeria’s agriculture minister has launched an ambitious plan to add 20 million metric tons of food to the domestic supply, while creating 3.5 million new jobs.  This is a continuation of previous program which has made Nigeria reach over 75 percent of its job creation target and has met the first Millennium Development Goal, cutting hunger by half, three years ahead of schedule.

Other countries are making similar strides.  Such success stories exist all over Africa. If we scale these up, the continent can rid itself of hunger within a decade, create jobs and generate inclusive growth in Africa and far beyond

http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4801&Itemid=88

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South creates 590 mln. birr market chains 

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Trade, Industry and Urban Development Bureau of Southern Nations, Nationalities and Peoples’ State said market chains estimated at over 590 million birr were created for micro and small enterprises during the first six months of the current budget year.

The Bureau told ENA that the market chains were created for micro and small enterprises engaged in manufacturing and service sectors.

These micro and small enterprises created jobs for more than 116,000 people.

Meanwhile, 116,350 youth are engaged in micro and small enterprises in the State during the first half of the current budget year, the Bureau said. More than 35 per cent of the stated people are women.

The youth are engaged in manufacturing, construction, food processing, trade, agriculture, and service sectors, among others.

More than 100 million birr loan was distributed among the stated number of youth.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5914-south-creates-590-mln-birr-market-chains

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Arkebe now board chair of Railway Corporation

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The veteran Tigrai Peoples’ Liberation Front (TPLF) fighter, Arkebe Ouqubai has been assigned as Board Chair of the Ethiopian Railway Corporation (ERC) replacing the mayor of the Addis Ababa City Administration Diriba Kuma.

Arkebe was assigned in a letter written by PM Hailemariam Desalegn as the board chairman of the railway corporation three weeks back.
Arkebe was working as an advisor of the Prime Minister with a ministerial portfolio on construction related issues.

Arkebe Ouqubai also got his PhD from the School of Oriental and African Studies in London. The former ERC board chairman, Diriba Kuma, mayor of the Addis Ababa City Administration, has led the corporation, which undertakes the multibillion dollar projects throughout the country for over one year.

The current PM Hailemariam had also led the corporation for many years.

Sources said that Arkebe is responsible for the corporation because there are a lot of decisions to make and it needs a lot of guidance right now and the mayor’s responsibilities at the city did not allow him to follow the corporation’s activities in a proper manner. “This is the main reason for the replacement,” a source who is close to the matter told Capital.

Before the 2005 election Arkebe led Addis Ababa and also served as State Minister of Urban Development. His achievement and leadership capacity in the Addis Ababa city Administration has made Arkebe popular in the country. His close friends describe Arekbe as a workaholic and are confident that he will make remarkable achievements in constructing  the railway system that stretches all over the country.

Diriba is currently board chairman of the state monopoly Ethio-Telecom.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4033:arkebe-now-board-chair-of-railway-corporation-&catid=35:capital&Itemid=27

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Still a long way to go for the road sector

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It was prior to the second Italian occupation i.e. between the years 1896 and 1936 that a great success was made in road construction. Emperor Menilik is said to be a successful leader in terms of expanding road networks in Ethiopia with the emperor himself participating in road construction. In 1903 the road from Eritrea to Addis Ababa and the road from Addis to Addis Alem were built. In addition it was during this time that the first asphalt roads appeared in Addis. Various road sector development programmes have been implemented during the successive regimes then after. However, a leap forward was made in the last couple of decades. According to data obtained from the Ethiopian Roads Authority (ERA), the total road network in Ethiopia has increased on average by about 4.2% each year since the inception of the Road Sector Development Programme (RSDP), which is now on its fourth stage.

Via this programme ERA has been able to newly interconnect various areas which did not have adequate road networks for effective developmental linkages. The authority’s efforts during the first half of this budget year to make the GTP goal set for the sector a reality were lately evaluated by the Transport and Communication Standing Committee of the House of Peoples’ Representatives. The committee scrutinized various challenges and pitfalls that should be abated to improve the authority’s performance in the remaining months.

ERA should work with better coordination and cooperation with stakeholders like EEPCO, Ethio telecom, and Water and Sewerage Authority to prevent various problems that are arising in the installation of electric, water and telephone infrastructures, Committee Chairperson Kefelech Denboba noted. The bidding and procurement systems employed by the authority should be made transparent in a way that it doesn’t allow corrupt and illicit ways, she stressed. It should take tangible and corrective measures against badly performing domestic and foreign contractors and create a forum whereby contractors share experiences from one another, the committee underlined.

The report by the Authority to the standing committee indicates that 63 of the 224 projects underway are lagging behind schedule and the committee urged their accomplishment to be considerably improved in the remaining months. From the perspective of attaining the GTP, the authority’s performance so far in strengthening major roads, improving the state of feeder roads, construction of feeder roads and high-level maintenance sub-programs was found below the needed level, the committee’s feedback showed. The report was said to have failed to incorporate efforts made to abate rent seeking tendencies and the gained outcomes as recommended by it during the previous years.

The Federal Auditor General did recommend the authority to take corrective measures in its bidding and procurement processes and the committee called for the implementation of the recommendations given by the Auditor General. Moreover the Standing Committee also suggested the Authority took seriously the participation of women and people with disabilities. The Committee identified the issue of corruption and rent seeking behaviours, highly delayed projects that are becoming causes of societal woes, absence of transparency in bidding and procurement processes, poor performance in Universal Rural Road Access Programme (URRAP) to be given due emphasis in the remaining months of the budget year.

Authority Head Zayid Woldegebriel while responding to questions raised by members of the committee said the authority is operating under very severe financial, consultancy, contractor-related and other related challenges. According to him, only eight of the 30 projects that were scheduled to be newly commenced during the budget year have so far started and six more are on the pipeline. However, he is optimistic that all of them may be started in the remaining months. With respect to procurement and bidding he argued that as the authority runs huge sum of money as compared to other institutions, it should be allowed to adapt its own suitable systems, and also indicated that the issue is under negotiation with the Ministry of Finance and Economic Development. Delay of imported inputs due to customs related processes, delayed return of VAT, lack of adequate credit provision from the banks, and severe shortage of foreign exchange are among the challenges that the authority is operating under, he noted. Zaid also indicated that theft and embezzlement of expensive and heavy machines and equipment is posing considerable challenges in many project sites of the authority.

Ethiopia has an agriculture-based society with the majority of the population living in rural areas. Expenditures on major trunk roads often dwarf that of rural roads or low access options. The poorest of the poor are found in rural areas. Hence, road infrastructure investments should address problems of the majority of the population living in rural areas. The poor are concentrated in the rural areas and development efforts should, therefore, be focused there. Roads connect the rural poor to economic and social services that are essential to the improvements of their standard of living. Rural per capita income is lowest in the country’s remote areas where roads are lacking. Cognizant of this, the government planned to construct 71 thousand kilometers of road in various rural areas under URRAP programme of the GTP.

However, this programme seems far lagging behind the plan that only 30 thousand kilometers of the road are so far constructed, which is about 45 per cent of the total road length planned to be constructed till the end of next year. The performance of the URRAP, which is mainly run by the regional states and monitored and supervised by ERA, has shown 38 per cent decrease during the last six months as compared to the same period last year. Some members of the committee also reflected that it has become a safe haven for rent seekers and embezzlers. The committee as a result requested ERA to closely supervise, monitor and support the URRAP.

“There is a great difference among the regions in performing the programme. But we should not deny that the URRAP has created considerable job opportunities in all the regions,” Ziad said. Due emphasis should be given to proper utilization of the newly built roads via this programme and ERA would strengthen its inspection and support, he added.

In sum, although ERA has made considerable progress in expanding and building new roads that are interconnecting new areas which did not have one for decades, it is still trailing due to age-old challenges. Many of its projects are still lagging behind schedule. The sector is facing corruption, embezzlement and theft as its major obstacles, and that need to be urgently addressed.

http://www.ethpress.gov.et/herald/index.php/herald/development/5919-still-a-long-way-to-go-for-the-road-sector

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Draft regulation by AACRA brings new fines

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The Addis Ababa City Roads Authority has drafted a new regulation to be enforced to make roads safer and more efficient. 

More people are vandalizing public property and being irresponsible in ways that pose a danger to public safety, according to the document.
According to the drafted document, things are happening on sidewalks that are huge safety hazards and constrict traffic flow. Dumping construction materials, washing cars, illegal parking, setting up tents or pavilions for exhibitions, throwing out garbage and vending illegally all make the public’s environment unsafe.

Roads are also being inappropriately used in ways that damage roads and block traffic. Construction sites often close off roads because employees dump construction materials like cement, steel, and soil that is dug up for the project.

Drainage systems through out the city are also under a lot of pressure as it is misused by different establishment owners as well as residences. The document states that often time people dig up the drainage systems so that it will connect with their residence’s sewage system while hotels as well as factories also engage in similar activities to get rid of their liquid waste.

The drafted regulation lists several offences that will be punishable by fines. Among these are dumping solid waste on the streets by residents will be fined 100 birr, similarly, if it is from an industry the fine will be 7,000 birr and from health facilities 5,000 birr.

Dumping construction materials on sidewalks or roads will be punishable by 1,000 birr while selling or moving livestock on roads will be followed by a hefty fine of 8,000 birr.
The document states that individuals who knowingly or unknowingly cause damage to public properties such as street lights, traffic signs or traffic lights will be fined 500 birr. Urinating and defecation will also be punishable by 50 birr.

Posting advertisements without permission from appropriate bodies on electric poles, bridges and other areas is to be punishable by 500 birr.
The regulations will be enforced by the Law Enforcement Office, by the police as well as the road administration.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4032:draft-regulation-by-aacra-brings-new-fines-&catid=35:capital&Itemid=27

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Bidding Process Questioned in National Switch System

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The headquarters of Awash International Bank (AIB), left, and Commercial bank of Ethiopia (CBE), right,

located around the National Theater along the Ras Abebe Aregay Street.

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There are concerns that hidden costs will inflate the bid of the number one listed company beyond its closest rival

Eth-Switch SC – a consortium of all banks, established to provide a national switch system – is close to awarding a contract for the supply and implementation of a National Electronic Funds Transfer (EFT) Switch Clearing Settlement and Reconciliation System to Compass Plus Limited – a British IT vendor.

Some members of Eth-Switch’s bid committee – which consists of officials from the National Bank of Ethiopia (NBE), Nib International Bank (NIB) and the Oromia International Bank (OIB), among others – are expressing concerns, however, with the bidding process, questioning its integrity.

The critics reason that the price offered by the number one listed company, Compass Plus, has hidden costs that will push the price of the project beyond that of the second bidder, BPC Banking Technologies.

An official of the state-owned bank, who disagreed with the tender process, saying that it violates the Federal Public Procurement Directive issued in 2010, withdrew from the evaluation process, citing disagreement, a source close to the case told Fortune.

A group of bank lawyers approached Eth-Switch to rectify irregularities in the tender, Fortune leant. One of these lawyers is a member of the technical evaluation committee.

The hidden costs include – additional payment for ATM machines; additional cards, such as Point of Sale (PoS) and ATM (Visa) cards, and license renewal payments.

Some members went to Sudan to see the switch solution that Compass Plus installed. Upon arrival, however, the members were only shown the switch system that S2M – a Moroccan company – had installed. This was because the system of Compass Plus crashed on four different occasions, sources disclosed.

Compass Plus develops and implements a range of electronic payment technologies, which power all-scale retail banking and electronic payment systems. The Company provides a payment solution called Tranzware. This solution provides several billion transactions a year; driving 20,000 ATMs and 170,000 PoS terminals, whilst supporting over 90 million cards.

BPC offered 17 million dollars, while Compass Plus offered 11 million dollars, for the switch system that is expected to enable all banks in Ethiopia to electronically transfer funds and clear cheques between themselves. This is in addition to sharing each other’s Automated Teller Machines (ATMs).

But the amount of money offered by both of the companies is beyond the financial capacity of Eth-Switch, whose capital is only 80 million Br.

Eth-Switch, therefore, revised the ToR (Terms of Reference) in order to cancel the turnkey aspects of the project. These included the switch system, data centre, transfer of knowledge, hands of holding and training. The revised ToR only requires the switch system, thus reducing the cost of the project by 80pc.

But this caused another disagreement among members of the tender committee.  Some said that if the ToR is going to be revised, into a component level from that of a turnkey level, then the committee must retender, or possibly float a restricted tender to save time.

A restricted tender is conducted if there is a change in the ToR. It is price-based and includes at least five bidders, including the shortlisted ones and others from the previous tender.

Eth-Switch, nevertheless, continued to deal only with Compass Plus. In a letter dated November 27, 2013, it declined BPS’s request, on November 8, 2013, that it be given the opportunity to resubmit an updated financial bid. Eth-Switch also informed BPS that doing so would lead to a violation of the governing terms and conditions of the bid document.

Eth-Switch floated the tender back on February 21, 2012 and 14 IT vendors participated. The bidding committee conducted a technical evaluation and disclosed the first stage result of four shortlisted companies – S2M, M2M, BPC and Compass Plus.

Months later, Eth-Switch disclosed the second stage, where the bid was narrowed down to BPC and Compass Plus.

The financial proposals of the two companies were opened on May 7, 2013.

Compass Plus is close to being awarded the contract, according to sources. Eth-Switch has informed them, however, that the tender process is under review.

http://addisfortune.net/articles/bidding-process-questioned-in-national-switch-system/

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Investment Agency revokes licenses of over 1,000 companies

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The Ethiopian Investment Agency canceled investment licenses of over a thousand companies. The decision came after a warning was posted for a list of 2,497 companies to report to the Agency to avoid having their investment licenses revoked.
“We gave the warning in the beginning of January and now we have revoked investment licenses of companies who were not able to report as the warning stated,” said Aschalew Tadesse from the Public Relations office at the Investment Agency.
Some of those that have had their licenses revoked are; CRBC Addis Engineering Plc’s license for an expansion, East African Pharmaceuticals expansion project, Holland Car Plc and Access Resorts Hotel Plc.
The list of the companies which was posted at the Agency’s office was divided into three main sectors which were tour operation, machinery rentals and agriculture.
The list also includes companies such as Deventus Wind Technology Plc, ELFORA Agro Industry Plc’s real estate development, Boston Partners lodge hotel international standard star designated restaurant expansion project, Jupiter Agro Farms Plc that produces vegetables and flowers for export and St.Mary’s Educational Development Plc higher education institution new project.
“We are currently going through documents of various companies and conducting an evaluation. We are checking to see if everything is done correctly. Accordingly we have put up a notice asking companies who do not have the appropriate and necessary documents to come and report to our office,” a PR officer at the Agency told Capital.
Some of the reasons for the licenses to be revoked include failure to renew the investment licenses as well as not starting the operations for which the license is issued for.
“Some of the companies acquired investment licenses for projects but end up failing to begin operations in the specific time provided by the law. These companies will have to provide a persuasive and acceptable reason in order to keep their license,” the PR officer also said.
The companies on the list are involved in a variety of sectors such as construction, tour operation, hospitals, restaurants, many of which specialize in Chinese cuisine, consultancy firms, higher education institutions, construction machinery rentals, flower farms, hotels and more.
According to the Agency, initially, the companies were given a window of 20 days to be able to fix the problem to stop their license from being revoked.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4035:investment-agency-revokes-licenses-of-over-1000-companies&catid=54:news&Itemid=27

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Exports hit a head wind

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Global economy plays a role but stagnation has been developing over two years

Ethiopia’s exports have bucked a trend and not performed as well so far this year.

For the last several years, the Ethiopian export sector has been growing consistently, though not reaching the targets set by the government. However, for the first time in recent history, the revenue generated from exports, in the 2012/13 fiscal year, declined when compared with the previous year’s performance.

The past six month’s performance is nearly 35pct lower than the target.  During the first half of the 2013/14 fiscal year, which is from July 8, 2013- January 8, 2014, the country earned USD 1.311 billion from exports. But the government hoped to earn USD two billion during this period, which is 65.5pct of the goal. This is surprising because over the past decade exports had been growing and it is concerning because even though figures are still rising, exports were growing at a slower rate over the last 18 months.

In fact exports are 7.3 percent lower than the first six months of the 2012/13 fiscal year. This means that over the past two fiscal years (since 2011/12), even though exports have been rising; they have not been going up as rapidly as they had before. The last six months is the first time that exports have actually declined however.

Not all exports decreased, manufacturing and oil seed exports registered significant growth in the first six months of the fiscal year but agricultural products and mining declined.  year report, the coffee trade has constricted 28 percent by volume and 38 percent by value compared with the past year achievement.

Other agricultural exports that decreased were oilseeds, flowers and pulses, although pulses, like khat, performed better than other farm products. In Ethiopia, the most prominent oilseeds are sesame. These seeds brought in USD 208.8 million over the past six months. This is 76 percent of the target, which was USD 273.2million, although oilseed exports have been growing rapidly over recent years. Pulse exports brought in USD 107 million, 84 percent of targets. Khat, was closer to its goal raking in USD 150 million or 92.6 percent, over the past six months.

Flower exports decreased reaching only 54.8 percent or USD 84.5million but it did grow 2.7 percent, compared with the first half of last fiscal year. Even though the government hopes to expand fruit and vegetable investment and export, its performance is very weak. The government targeted USD 62 million from vegetable and fruit exports in the first six months of this fiscal year, but the actual achievement was 36pct of the target or USD 22.3million. MoT planned to earn USD 1.07 billion from farming in the first six months of this fiscal year. Instead, they earned USD 815.7 million, 76pct of what they had hoped for.

The other sector that registered lower performance in the past six months is mining. In the extraction industry gold has been raking in a lot of money for the nation recently as people have begun finding more of it here and the price on the international market has been increasing. However in the first half of this fiscal year gold exports only met 59 percent of their targets. According to Ministry of Trade (MoT) report, some sectors did see their exports increase compared with first half of the past fiscal year but they failed to meet targets.

Exports were supposed to bring in USD 328 million but instead they earned USD 194 million. Some of the blame lies on the international markets which saw prices for gold and coffee decrease over the past six months. In general, the hard currency generation from mining contributed USD 199 million in the first half year, which is 28 percent lower than the similar period in the past fiscal year. In the first six months of the past fiscal year the country generated USD276.6 million form mining exports.

Changing from an agricultural led economy to an industrial one is a major Growth and Transformation Plan priority and the report indicated that industrial exports did earn more revenue during the stated period but only slightly more and less than half, (47.7 percent) of what they had planned on. The ministry wanted to earn USD 366.5 million from manufacturing, but the sector contributed USD175 million.

Leather and leather product exports on the other hand excelled, amassing USD 9.7 million; higher than the USD 57.4 million in revenue the sector earned a year ago. According to the report, Ethiopia exported USD 57.5million worth of garments and textiles. Yet, the goal was USD 111.8 million, although it is still a 27 percent increase compared with last year.

Last year’s export performance report indicates farming; mining and industrial exports earned a combined USD 3.08 billion. The performance shows a slight decrease when compared with the 2011/12 budget year’s performance that managed to rake in USD 3.15 billion birr in revenue. The performance of the past budget year is also USD one billion less than the target set by the Ministry which is a little over USD four billion.

By the end of the GTP, (June 2015),  the government dreams of USD 10 billion from exports. A large part of Ethiopia’s plan to become a middle income country depends on producing more goods here and then exporting them to other nations instead of relying on imports. Many developing countries face an uphill climb when trying to improve the economic lives of their citizens because the playing field is not level, as a result they end up selling raw materials to foreign investors who then add value to them and earn huge profits or rely on ‘cash crops’ and other natural resources that are then exploited by large foreign corporations who do not offer a fair exchange.

Countries that have successfully developed in the past like China and India have done so by making their own products and exporting them in large numbers. When India first gained independence Ghandi saw this as the only way to achieve true freedom, one economic expert said. The Ethiopian government is counting on exports increasing dramatically and consistently in order to meet their many development goals. For this reason even if exports still rise, when they appear to be leveling off it is a cause for concern.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4034:exports-hit-a-head-wind-&catid=35:capital&Itemid=27

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Coffee Competition Winners Announced

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The competition is being used as a way to find the best coffee producers in the country

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Three coffee producers and exporters – from Jimma (in Oromia Region) and Gedeo and Yirgachefe (in the South Region) –were recognized for producing the finest coffees out of 91 competitors.

Lemma Edito & Childern Plc, from Limu Kose in the Jimma Zone, came first, scoring 88.4 points with natural coffee, Second came H.H.K Industrial Plc from Gedio Zone (Southern Region), scoring 87.75 points – also with natural coffee. Hailesellasie Ambaye Industrial Plc from Yirgachefe (Southern Region) achieved 87.6 points with a washed coffee, and came third.

The African Fine Coffees Association (AFCA), in partnership with the Ethiopia Commodity Exchange (ECX), the United States Agency for International Development (USAID) and the Agricultural Growth Program-Agribusiness & Market Development (AGP-AMDe) – announced the 2013/ 2014 Taste of Harvest (ToH) coffee competition winners on Wednesday, February 5, 2014, at the Elily International Hotel, located in the Kasanchis area, along Guinea Conakry Street.

The winner of forth and fifth place was the Mormora Coffee Plantation from Guji (in Oromia Region). The plantation came fourth scoring 87.57 points, with washed coffee. The same company took a certificate scoring 87.5pts with natural coffee.

The top five winning coffees will be promoted next week at the Annual African Fine Coffees Conference & Exhibition (AFCC&E) in Bujumbura, Burundi, and whole coffee samples will be presented on the AFCA website to help promote them.

Based on the call of the AFCA Ethiopia Chapter for the test of harvest competition, 91 washed and natural samples were submitted to the ECX by 42 growers, 24 cooperative unions and 34 exporters.

Judges were selected by the AFCA Ethiopia Chapter Stirring Committee (Members represented from the industry), with a selection criterion of senior experts on coffee quality – representative from the Industry, licensed and qualified graders and experienced for the protocol and TOH events.

In the three-phased inspection, 91 coffee samples were submitted during the first phase. It was narrowed down to the top 36 high scoring coffees, during the second and to the top 13 high scoring coffees during the last one.

The occasion is a coffee cupping competition to identify the finest Ethiopian coffees, in order to promote quality coffee by way of contributing to the development and marketing of the industry.

Established in 2000, the AFCA is a regional association with its secretariat located in Kampala, Uganda.  The organization’s mission is to promote the production, quality, consumption and trade of Africa’s fine coffees in its eleven member countries: Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Malawi, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

The AFCA’s membership includes: producers, millers, exporters, international importers, roasters, policymakers, transporters and trade representatives.

http://addisfortune.net/articles/coffee-competition-winners-announced/

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Ethiopia Will Lose Its Hegemony in East Africa If It Doesn’t Address Museveni Greed

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By Pel K. Chol

opinion

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Investor Webcast Planned for Thursday, February 13, 2014 at 8:30 a.m. EST

Toronto, Ontario, February 12, 2014 – Allana Potash Corp. (TSX: AAA) (“Allana” or the “Company”) announces that it has secured a strategic alliance with ICL, one of the world’s largest fertilizer producers, pursuant to which a wholly-owned subsidiary of ICL has entered into a definitive share purchase agreement (the “SPA”) with Allana for an aggregate investment of $25 million in units of the Company (“Units”) at a price of $0.47 per unit on a private placement basis (the “Offering”) with the potential for a total investment of up to $84 million upon full exercise of the  warrants comprising part of the Units. In addition, a wholly-owned subsidiary of ICL has entered into an offtake agreement (the “Offtake Agreement”) with respect to the Company’s Danakhil potash project in Ethiopia (the “Project”). The terms of the SPA also include the provision of technical assistance resources by ICL for the development and operation of the Project. The Unit issue price of $0.47 was determined at a 35% premium to the five day volume weighted average of Allana’s market price on the TSX, and at a 45% premium to Allana’s closing market price on the TSX, as of December 3, 2013, the date on which Allana and ICL commenced exclusive negotiations with respect to this transaction.
Farhad Abasov, President and CEO of Allana, commented “We are pleased about our strategic alliance with ICL.  This is a significant and defining milestone in our Company’s history, paving the path towards the transformation of Allana into a major, global potash producer.  This strategic alliance is comprehensive and encompasses three major aspects that are critical to the success of a new potash project: 1) financial support; 2) a take-or-pay offtake; and 3) technical cooperation.
Mr. Abasov added, “ICL has broad experience in, and knowledge of, the global potash market, and in developing large scale potash projects. With ICL as our partner, Allana will benefit from ICL’s proven potash production ability to accelerate our development and operational plans. At the same time, with ICL’s purchase of our product, Allana will benefit from ICL’s existing global and regional marketing and distribution networks. This wide-ranging alliance is transformative for Ethiopia and for East Africa. Both Allana and ICL are committed to expanding fertilizer supply within Africa in support of the farming renaissance that is occurring on the continent.”
Mr. Abasov concluded by saying, “We thank the people and governments of Ethiopia and Djibouti for having the foresight to work tirelessly towards this goal with the Company. As agricultural production and fertilizer utilization are on the rise in Africa, I am pleased to introduce our new corporate vision of ‘Potash for Africa First’. It is significant to note that both ICL and Allana share this vision for our planned potash production in Dallol.  We look forward to working with ICL and developing a world-class project to supply potash to the fast growing African markets for many years to come. Once in production, Danakhil is expected to be one of the world’s lowest cash cost potash projects, and I am confident that the alliance with ICL will allow Allana to successfully achieve the operational and commercial targets of the project.”
Stefan Borgas, President and CEO of ICL, said, “We are pleased to enter into a strategic alliance with Allana to develop its Danakhil potash project in Ethiopia which will provide potash for Ethiopia and Africa – the market with the highest growth potential in the fertilizer world. Our cooperation with Allana highlights our previously announced strategy to broaden our sources of raw materials worldwide, as well as our intention to deepen and significantly increase our activities in emerging markets such as the African continent. The Danakhil project will allow ICL to add substantial value to Allana through the deployment of production technologies similar to Dead Sea Works. The location of the Danakhil mine will further enable ICL to even better serve our growing customer base in India and South East Asia”.
The Project secured environmental approvals in May 2013 and a Mining License in October 2013 and, having gained the cooperation of several major development financing institutions and export credit agencies in mid 2013, the Company is proceeding with its Project financing activities together with ICL. The Project will also provide numerous opportunities for economic and social development for the Afar Region, Ethiopia and Djibouti and the Company will continue to develop its infrastructure and transportation programs in close cooperation with the respective governments.
The Offering
The SPA provides that the Offering shall be completed in two tranches, with the first tranche having closed on the date hereof (the “First Tranche”) and the second tranche being subject to the receipt of approval by Allana’s shareholders (the “Second Tranche”) and other standard closing conditions. Each Unit issued pursuant to the Offering consists of a common share of the Company (a “Common Share”), one and one half Series A Common Share purchase warrants (the “Series A Warrants”) and one half of one Series B Common Share purchase warrant (the “Series B Warrants”, and collectively with the Series A Warrants, the “Warrants”). Each whole Warrant will be exercisable for one Common Share for a period of 36 months from issuance of the Warrant. Each whole Series A Warrant will be exercisable for a price of $0.54 per Common Share, and each whole Series B Warrant will be exercisable for a price of $0.60 per Common Share.
Pursuant to the First Tranche, the Company issued to ICL 22,577,001 Units for gross proceeds of approximately $10.6 million, following which ICL holds approximately 7.7% of the issued and outstanding Common Shares of Allana on a non-diluted basis and 19.99% of the issued and outstanding Common Shares of Allana on a partially diluted basis.
Subject to receipt of shareholder and regulatory approvals, 30,614,488 Units at a price of $0.47 per Unit for gross proceeds of approximately $14.4 million, will be issued to ICL pursuant to the Second Tranche.  In addition, the Company may issue Units to Liberty Metals and Mining Holdings, LLC and/or IFC, in such amount as is required to be issued upon due exercise of their respective pre-emptive rights with respect to the Second Tranche.
The Company plans to use the proceeds from the Offering exclusively to fund the construction of the Project and for other general corporate and working capital purposes related to the advancement of the Project.
The transactions contemplated by the SPA were approved by the independent directors of Allana. As required by the Toronto Stock Exchange (“TSX”), the Company will call a special meeting of its shareholders to be held on or about March 28, 2014 to authorize the issuance of Units pursuant to the Second Tranche. Subject to the receipt of the required shareholder approval, closing of the Second Tranche is anticipated to occur shortly thereafter.  Directors and officers of Allana holding an aggregate of 1.4% of the outstanding Common Shares have agreed to vote in favor of the issuance of the Units pursuant to the Second Tranche to ICL.
Effective today, in connection with the closing of the First Tranche, Mr. Yoram Cohen has been appointed to the Board of Directors of Allana. Mr. Cohen joined ICL in 1998 and has served in several global level positions at ICL. He is currently General Manager of ICL Africa and a member of ICL Fertilizers’ management team. Previously, he was Senior VP and CFO of ICL Specialty Fertilizers and VP, Business Development, of ICL’s Fertilizers and Chemicals business unit. Mr. Cohen has a BA in Economics and Statistics and a MBA from The Hebrew University in Jerusalem. In addition, subject to ICL’s investment of an additional $15 million in Allana (for an aggregate investment of $40 million), ICL shall have the right to nominate a second director to Allana’s board.
In addition to these director nomination rights, pursuant to the SPA, Allana has granted ICL additional ancillary rights as a part of the strategic alliance, as follows:

From and after the date hereof, and at any time after the date which is twelve months from the date hereof (the “Grace Period”) provided ICL beneficially owns securities acquired from Allana representing 7.5% of the fully diluted Common Shares of Allana, ICL will have a right of first refusal on the direct or indirect disposition of Allana’s interest in the Project.

Subject to the same minimum equity ownership condition following the Grace Period, ICL has been granted a pre-emptive right pursuant to which ICL has the right to participate in any equity financings of Allana up to the greater of (i) 30% of the aggregate amount of such equity financing and (ii) its then undiluted ownership of Allana Common Shares acquired from treasury (assuming the issuance of the Second Tranche).

ICL has also been granted prospectus qualification rights pursuant to a prospectus qualification rights agreement entered into in conjunction with the First Tranche.

The SPA also provides for the establishment of a technical committee pursuant to which ICL has agreed to provide technical support to the Project.
The Offering remains subject to final approval of the TSX.  Closing of Second Tranche of the Offering is expected to occur on or before March 31, 2014 subject to receipt of shareholder approval.  In accordance with the SPA, shareholder approval and closing of the Second Tranche must occur prior to April 14, 2014.
The Offtake
The parties have also entered into the Offtake Agreement pursuant to which ICL has agreed to purchase the entire production of the Project up to 1Mtpa with a take-or-pay commitment of ICL on a minimum of 80% of output from the Project. The Offtake Agreement include typical terms and conditions for product supply agreements for global sales and shipments and also provides allowances in time for production ramp-up while maintaining the minimum 80% take-or-pay commitment. Credit Suisse Securities (Canada), Inc. acted as sole financial advisor to Allana with respect to the strategic alliance. Admission on the AIM Market
Further to the Company’s December 16, 2013 press release, due to the Company’s focus on other corporate initiatives, including the ICL strategic alliance, Allana has elected not to pursue an AIM listing at this time.
Investor Webcast
An Investor webcast to review the ICL strategic alliance will be held at 8:30am EST tomorrow, Thursday, February 13, 2014.  To participate in the webcast, please go to our website’s homepage (www.allanapotash.com) and register by using the link to the webcast registration page at least 10 minutes in advance of the scheduled start time.
About ICL
ICL, a global manufacturer of products based on unique minerals that fulfill humanity’s essential needs, primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produce help to feed the world’s growing population.  The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that we produce enable people to have greater access to more varied and higher quality food; ICL’s water treatment products supply clean water to millions of people as well as industry around the world; and other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials. ICL benefits from a broad presence throughout the world and proximity to large markets, including in developing regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL’s manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange (TASE: ICL). The company employs around 12,000 people worldwide, and its sales in 2012 totaled $6.5 billion. For more information, visit the company’s website at www.icl-group.com
About Allana Potash Corp.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally with its major focus on a previously explored potash property in Ethiopia. Allana has secured financial support from three significant strategic investors: ICL, one of the world’s largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured and indicated Sylvinite mineral resources of 327.4 million tonnes of 28.3% KCl; and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts estimated measured and indicated Kainitite mineral resources of 1,150.5 million tonnes at 19.4% KCl, an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8%KCl; estimated measured and indicated Upper Carnallitite mineral resources of 411.3 million tonnes grading 17.3% KCl, estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured and indicated Lower Carnallitite mineral resources of 557.2 million tonnes of 9.2%KCl, and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana’s Technical Report entitled “Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia” dated effective April 17, 2013 filed under the Company’s SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 293,501,018 shares outstanding.  Allana trades on the Toronto Stock Exchange under the symbol “AAA”.
Dr. Peter J. MacLean, Ph.D., P. Geo., Allana’s Senior VP Exploration, is the Company’s designated Qualified Person and has reviewed and approved the technical information presented in this release.
Forward-Looking Statement Except for statements of historical fact relating to the Company, certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Statements with respect to mineral resource estimates, the anticipated use of proceeds of the Offering, the timing of closing of the Offering and the expected benefits of the strategic alliance with ICL are forward-looking statements.  Forward-looking statements are based on the opinions, assumptions estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Such risks include the uncertainty with respect to the shareholder approval of the Second Tranche not being obtained, the fact that the expected benefits of the strategic alliance may not materialize, the inherent capital markets consequences of an equity controlling position, regulatory risks and such other risks as discussed in the risk factors sections of our latest annual information form, our technical reports and other continuous disclosure documents filed from time to time at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
The Units described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions there from. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company’s securities in the United States.
Richard Kelertas Senior Vice President, Corporate Development 514 717 6256  or rkelertas@allanapotash.com

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Despite network ethio telecom continues to make big earnings

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State utility ethio telecom (et), amassed 5.3 billion birr in gross profitsat the same time the number of landline users declined, during this fiscal year’s first half. Despite anecdotal evidence of worsening network problems the telecom monopoly continues to earn a lot of money. The enterprise disclosed their unaudited gross profits in the first six months were 111 percent of target goals.

The gross profit grew 10 percent compared with the second half performance of the past fiscal year (2012/13).

During that time ethio telecom hoped to collect 7 billion birr in total revenue and it has met 91 percent this target.

In terms of revenue the company’s performance grew 12.4 percent compared with a similar period of last fiscal year, according to Abdurahim Ahmed, public relation head of et.

Mobile phones earned the most money. The head of public relations said the enterprise has earned 67 percent of the total revenue from mobile business and international service. Data and Internet contributed 16 and 10 percent respectively.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4050:despite-network-ethio-telecom-continues-to-make-big-earnings-&catid=35:capital&Itemid=27

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Russian company keen to engage in railway development project

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State Minister Dawano Kedir exchanging views with company executives

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The state-owned Russian Railway Company is discussing with the government possible opportunities to engage in railway development project in the country.

Following discussion with Foreign Ministry State Minister Dawano Kedir yesterday, Russian Railway Company Vice President Alexandor V . Saltanov said: “We are in the process of contacts with Ethiopian partners and friends about the prospects of Russian-Ethiopia cooperation in the construction of the railway infrastructure in this country. We agreed to continue contacts and meetings and exchange of views and even jointly studying all the details of the implementation of such a great project.”

Ministry Spokesperson Ambassador Dina Mufti also said : “Ethiopia seeks the engagement of Russian business community in investment and different economic sectors.”

“It is very important to work with the Russian Railway Company because it is well experienced and facilitate knowledge and technology transfer,” he added.

The company Vice president also had talks with Prime Minister Haile-Mariam Dessalegn and Ethiopian Railway Corporation officials on ways of participation in railway development projects.

http://www.ethpress.gov.et/herald/index.php/herald/news/5937-russian-company-keen-to-engage-in-railway-dev-t-project

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State Minister Dewano Kedir meets Russian business delegation

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State Minister of Foreign Affairs, Dewano Kedir has held a meeting with a Russian delegation headed by Alexander Saltanov, Vice-President of Russian Railways (RZD).

The State Minister noted Ethiopia and Russia had a long and close relationship which could encourage cooperation in economic development. He welcomed RZD’s interest in looking at future rail infrastructure projects in Ethiopia, pointing out that it was an appropriate time to invest in Ethiopia with its fast economic growth and priority on infrastructure development.

Mr. Saltanov briefed the State Minister on his meetings with Prime Minister Hailemariam and senior government officials, describing these as “productive and fruitful”. He underlined that railway transport was growing across the world and said that that Russian Railways were paying, close attention to the possibilities available in Africa and in particular to Ethiopia’s infrastructure development efforts.

He noted RZD was looking forward to working closely with the Ethiopian Railway Corporation. The State Minister expressed his commitment to follow future implementation of rail projects and give them support.. Russia’s RZD is a state-owned company which accounts for over 3.6% of Russia’s GDP and handles about 80% of all transportation in the country. With a network of 85,500 km of track across the Russian Federation, it is one of the biggest transport companies in the world.

http://www.mfa.gov.et/news/more.php?newsid=3019

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Skyscrapers, a new look of Addis

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Nowadays, several buildings of different heights have appeared and are appearing in the capital of Ethiopia, Addis Ababa. Surprisingly, most buildings get rented even before their completion. In fact, the buildings are meant from the onset for rent. In general, building high skyscrapers and harvesting income renting them for other businesspersons is today’s business area.

Owner of these buildings rent a floor at a minimum cost of 7 to 12 thousand birr per square meter. But this would not always be true, for some landlords go as far as pressing tenants to pay fees in US dollars. The price varies according to the place where the building is located. For instance, renting price of a flat in Bole area and other part of the city is completely different. Because, businessmen are interested in getting floors in a places where there is a potential for a high business transaction. Knowing this fact, owners of skyscrapers also raise or reduce the price depending on the place.

If you have a kind of opportunity to see these buildings, they have a different halls which are ready to serve different purposes such as meetings, conferences…. The price of these halls is also high. For example, a hall with different facility is rented between 80,000 to 150,000 birr per a day. Most of the time, such halls host wedding ceremonies.

Most, if not all, owners of skyscrapers finance the construction getting lone from banks. The luckiest person can quickly finish their edifice before the interest rate goes too high and ahead of the banks’ preparation to take measures.

These buildings are fixed assets to these investors. So, they can easily generate income. In addition, quite a number of citizens have also got job opportunities that range from professional to menial.

Relatively speaking, getting floors for office use or whatever one is looking for is so easy. In addition, most buildings have adequate parking lots and other important facilities. Due to that and of course other reasons, various national and international organizations are benefiting from these massive constructions.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/5933-skyscrapers-a-new-look-of-addis

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What was possible for agriculture is not impossible for others

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Prime Minister Haile-Mariam Desalegn told a press conference on Monday that performance assessments made so far indicated that a double digit growth would be achieved in the agriculture sector this budget year. No doubt that there is no better news than this for a country whose economy largely depends on agriculture. It is more so, when seen from the point of view of the leading position agriculture is given in spearheading the country’s journey toward an industrialized economy and hence economic transformation. What is more important though is that such good news came nearly one year after the ruling party, EPRDF had evaluated sectoral performances and concluded that the agriculture sector had shown relatively weaker performance. In fact that was obviously a little bit frustrating for the ruling party which is pursuing agriculture-led development industrialization as its development strategy. No doubt various measures aiming at reinvigorating agricultural productivity have been taken since then, and consequently those measures have brought the desired changes in the sector.

At the heart of all the successes brought in the agricultural productivity is the achievements brought in mobilizing the farmers to unleash their maximum efforts to turn available opportunity into some sort of leverage to crop yield. In this respect efforts made in familiarizing farmers with irrigation development is worth mentioning. Evidently there has been more focus in recent days than any time in the past on irrigation of all scales. Farmers have realized that the time has passed in which they relied solely on rain-fed agriculture. As a result rivers and streams that had been flowing for years without giving any substantial benefit to the farmer have now been utilized as vital resources with which the farmers have managed to boost their annual crop yield. It is not uncommon to hear farmers speaking about doubling and tripling annual crop yield as a result of irrigation. Obviously, irrigation was just one crucial factor but not the only one that spurred success in agriculture.

The growing level of farmers’ awareness about the crucial contribution of various agricultural inputs to improve productivity has been another worth mentioning factor the led to the double digit growth of the agriculture sector. The use of select seeds, fertilizers, improved agricultural implements has among others been growing speedily. Of course, environmental management activities that are being carried out by the farmers have continued to be of critical support to efforts made in improving agricultural productivity.

What has been achieved in terms of replacing the age old practice of broadcasting by line sowing has already been proven to be making substantial differences in crop yield. In all aspects the efforts made to increase crop yield have more or less been successful.

Even what is more important than what has been achieved in boosting crop yield was the fact that the interventions made at all levels were well thought and well-tailored that they brought the intended results in the sector.

No doubt the swift measures made in bringing the agriculture sector back to its leading position over the past one year has been impressive and worth emulating. Yet, the country’s agriculture has immense potential to go further; and what has been achieved is just a fraction of what the sector can offer.

Now the question remains whether other sectors that are not faring very well can be revamped in the same fashion?

Despite the government’s overarching efforts to bring multi-sectoral development some sectors still remain way below the intended targets. Particularly the public utility sectors such as transportation, telecommunication and electricity have been struggling to cope up with the ever exploding interest of consumers.

The results obtained in the agriculture sector surely were obtained as a result of the coordinated efforts of the different stakeholders. Despite the peculiar nature of the various sectors, the level of concentration and maximization of efforts given to the agriculture sector can well be emulated by other sectors.

http://www.ethpress.gov.et/herald/index.php/herald/editorial/5931-what-was-possible-for-agriculture-is-not-impossible-for-others

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Ethio-Telecom set to tackle network problem soon: CEO

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The Ethio Telecom announced that it has been striving to tackle the network problem in Addis Ababa.
Acting Chief Executive Officer Andualem Admassie told The Ethiopian Herald that his office is making utmost efforts to address the problem in a sustainable manner by identifying technical problems and designing new expansion projects.
The network expansion work is taking place in the city classifying tasks in three categories: Nokia, ZTE and New Network Development. Andualem further indicated that in areas where Nokia network is installed – Jomo, Lebu and Mebrat-Hail the company is working to accomplish network expansion task in less than six months. The new network expansion works in green areas would be completed within six months time.
Ethio telecom has concluded agreements with various companies giving due attention to expansion project contract and deadline, task details, project design, and execution of the task.
Presently, Ethio telecom is importing equipment for network expansion from China, Andualem said. “We are discussing with Addis Ababa City Administration and other stakeholders to get sites for the placement of 300 new network facilities.”
According to Andualem, along with undertaking the new network expansion projects in Addis, the company is making utmost effort to increase network availability and quality in areas where mega projects are being carried out.

http://www.waltainfo.com/index.php/explore/12300-ethio-telecom-set-to-tackle-network-problem-soon-ceo-

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Zones prepares  compost

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More than one million cubic meters compost was prepared in West Shoa Zone, Oromia State during the first seven months of this budget year, the Zonal Agriculture Department said.

Planning, design and supervision expert with the department, Serbesa Urgesa told ENA Tuesday that the stated amount of compost will develop close to 67,170 hectares land.

More than 78,000 farmers participated in the process.

Serbesa said each of the farmers prepared 17 cubic meter compost thereby reduce their fertilizer expenditure.

Similarly, over 120,000 tons compost is being prepared in Horro Gudru Wollega Zone of Oromia State during the first half of the fiscal year, the Zonal Agriculture Development Department said.

The department told ENA that more than 26,000 farmers are taking part in the preparation.

The stated amount of compost being prepared in the zone would surpass the previous year by 10,000 tonnes.

http://www.ethpress.gov.et/herald/index.php/herald/national-news/5943-zones-prepares-compost

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ICL to partner with Allana in Ethiopian potash mine

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Addis Ababa, 13 February 2014 (WIC) – Israel Chemicals (ICL) said on Thursday it would partner with Canada’s Allana Potash to develop a potash mine in Ethiopia in a deal which includes ICL taking a stake in Allana.
The feasibility study for the Danakhil project in the Dallol region of northeast Ethiopia indicates it will produce about one million tonnes of potash annually within five years.
The alliance comprises an investment by ICL of $23 million in units of Allana shares and warrants at 43 cents per unit.
Following its initial investment, ICL will hold 16 percent of Allana’s regular shares and it may increase its holding in Allana to 37 percent upon its exercise of warrants that are part of the units.
Proceeds of the investment will be used by Allana to develop the Danakhil mine project.
The alliance also includes an agreement in which ICL, the world’s sixth-largest potash producer, will purchase and market the output of the mine. It will provide technical assistance to Allana as well.
The partnership is in line with ICL’s strategy to broaden its sources of raw materials while reducing its production costs and focusing on growth-generating emerging markets which it believes will drive significant growth over the next decade.
ICL, which has potash mines in Israel, Spain and Britain, sold over 5 million tonnes of potash in 2013.
“The Danakhil mine will provide potash for Ethiopia and Africa, and, combined with ICL’s agronomics fertilisation know-how, will enable local farmers to increase agricultural output and food for the region,” ICL Chief Executive Stefan Borgas said.
“The location of the Danakhil mine will provide us with fast and easy access to the Indian Ocean, which will enable us to even better serve our customers in India and South East Asia.”
ICL, which is controlled by Israel Corp, said developing sources of raw materials worldwide was an important objective, especially in light of its need to ensure additional alternatives when the time comes to extend its franchise to produce potash from the Dead Sea, which expires in 2030.
It also noted “the uncertainty regarding the business and regulatory environment in Israel”.

http://www.waltainfo.com/index.php/explore/12301-icl-to-partner-with-allana-in-ethiopian-potash-mine-

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Filed under: Ag Related Tagged: Addis Ababa, Agriculture, Economic growth, Ethiopia, Investment, Sub-Saharan Africa, tag1

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If Africa’s economies are to take off, Africans will have to start making a lot more things. They may well do so

Feb 8th 2014  -  ADDIS ABABA 

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LESS than an hour’s drive outside Ethiopia’s capital, Addis Ababa, a farmer walks along a narrow path on a green valley floor after milking his cows. Muhammad Gettu is carrying two ten-litre cans to a local market, where he will sell them for less than half of what they would fetch at a dairy in the city. Sadly, he has no transport. A bicycle sturdy enough to survive unpaved tracks would be enough to double his revenues. At the moment none is easily available. But that may be about to change.

An affiliate of SRAM, the world’s second-largest cycle-components maker, based in Chicago, is aiming to invest in Ethiopia. Its Buffalo Bicycles look ungainly but have puncture-resistant tires, a heavy frame and a rear rack that can hold 100kg. They are designed and assembled in Africa, and a growing number of components are made there from scratch, creating more than 100 manufacturing jobs. About 150,000 Buffalo bikes are circulating on the continent, fighting puncture-prone competition from Asia.

F.K. Day, a SRAM founder, says he set up his first African workshop in South Africa and is looking at Addis Ababa and Mombasa in Kenya as possible next sites. Landlocked Ethiopia has only partially shed its Marxist heritage yet is attracting industrial companies. Huajian, a Chinese shoemaker (pictured above), has built an export factory not far from Mr Gettu’s farm.

Those who cast doubt on Africa’s rise often point to the continent’s lack of manufacturing. Few countries, they argue, have escaped poverty without putting a lot of workers through factory gates. Rick Rowden, a sceptical development pundit, says, “Apart from a few tax havens, there is no country that has attained a high standard of living on the basis of services alone.”

Yet a quiet boom in manufacturing in Africa is already taking place. Farming and services are still dominant, backed by the export of commodities, but new industries are emerging in a lot of African countries.

Thandika Mkandawire, a Malawi-born expert, and Dani Rodrik, a Princeton economist, argue that growth is bound to fizzle because of a dearth of factories. But they may be too pessimistic. Manufacturing’s share of GDP in sub-Saharan Africa has held steady at 10-14% in recent years. Industrial output in what is now the world’s fastest-growing continent is expanding as quickly as the rest of the economy. The evidence, big and small, is everywhere.

H&M, a multinational Swedish retail-clothing firm, and Primark, an Ireland-based one, source a lot of material from Ethiopia. General Electric, an American conglomerate, is building a $250m plant in Nigeria to make electrical gear. Madecasse, a New York-based chocolatier, is looking for new hires to add to its 650 workers in Madagascar already turning raw cocoa into expensively wrapped milky and nutty bars. Mobius Motors, a Kenyan firm started a few years ago by Joel Jackson, a Briton, is building a cheap, durable car for rough roads.

Domestically owned manufacturing is growing, too. Seemhale Telecoms of South Africa is planning to make cheap mobile phones for the African market. Angola says it is to build its own arms industry, with help from Brazil. African craftsmen are making inroads in fashion. Ali Lamu makes handbags from recycled dhow sails on the Kenyan coast and sells them on Western websites.

Many of these businesses are beneficiaries of growth outside the manufacturing sector. The spread of big retail shops encourages light industry. In Zambia a surprising number of goods in South African-owned supermarkets are made locally; it is often too expensive to transport bulky stuff across borders.

A construction boom is fostering access to high-voltage power. The spread of mobile telephony, including mobile banking, helps small suppliers struggling with overheads. IBM, an American computer giant with an eye on Africa, goes so far as to say that “software is the manufacturing of the future”. Consumers will still want to buy hardware, but growing local demand is creating a market for African app and software developers.

Make them learn

Underpinning all this is a big improvement in education. Charles Robertson, the chief economist of Renaissance Capital, a financial firm founded in Russia, has argued that for the first time in its history Africa now has the human capital to take part in a new industrial revolution. In the 1970s Western garment-makers built factories in places like Mexico and Turkey, where a quarter of children went to secondary school. Africa, then at 9%, has caught up.

Another spur for African manufacturing is investment by Chinese workers who stay behind after completing their contracts for work in mining and infrastructure projects. Many thousands of them have set up workshops to fill the gaps in local markets. The African Growth and Opportunity Act, signed by America’s Congress in 2000, has also boosted trade in African-made goods.

The World Bank has been suggesting for several years that Asian manufacturing jobs could migrate to Africa. Obiageli Ezekwesili, a vice-president of the bank, says that more than 80m jobs may leave China owing to wage pressures, not all to neighbouring countries with low costs; if African labour productivity continues to rise, many could go to Africa, especially if corruption and red tape, still major scourges of the continent, are curbed. In contrast to China, business in parts of Africa is becoming cheaper as infrastructure improves and trade barriers are lifted. The average cost of manufacturing in Uganda, for instance, has been falling.

Can cheetahs beat tigers?

This could mark a sea change. The rise of Asian manufacturers in the 1990s hit African firms hard; many were wiped out. Northern Nigeria, which once had a thriving garments industry, was unable to compete with low-cost imports. South Africa has similar problems; its manufacturing failed to grow last year despite the continental boom.

This is partly the fault of governments. Buoyed by commodity income, they have neglected industry’s needs, especially for roads and electricity. But that, too, may at last be changing. Wolfgang Fengler, a World Bank economist, says, “Africa is now in a good position to industrialise with the right mix of ingredients.” This includes favourable demography, urbanisation, an emerging middle class and strong services. “For this to happen,” he adds, “the continent will need to scale up its infrastructure investments and improve the business climate, and many [African] countries have started to tackle these challenges in recent years.”

Kenya is not about to become the next South Korea. African countries are likely to follow a more diverse path, benefiting from the growth of countless small and medium-sized businesses, as well as some big ones. For the next decade or so, services will still generate more jobs and wealth in Africa than manufacturing, which is fine. India has boomed for more than two decades on the back of services, while steadily building a manufacturing sector from a very low base. Do not bet against Africa doing the same.

Sourced  here

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Related posts

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-     The burgeoning opportunity in Ethiopia’s factories

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

-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia: The Last Big Untapped African Market

-     Africa’s 5 Best Performing Economies 2013

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

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

-     The PC16: Identifying China’s Successors

-     World Bank sees China, Ethiopia as good fit

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Canadian Miners One Step Closer to Mining Transparency

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It’s hard to have a conversation about Canada’s economy these days without it touching on our natural resource wealth, and the global reach of our mining companies.

But there’s one part of this conversation that Canadian provinces may be missing: how they can become global leaders in a burgeoning international effort to improve governance and transparency in the extractive sector. Should they choose to meet the challenge, they would get support from an unexpected coalition of partners.

Following over a year of dialogue, civil society organizations and the Canadian mining industry have taken a united stand for transparency in the mining sector. In January of this year this unique collaboration — known as the Resource Revenue Transparency Working Group — published recommendations that call on Canadian governments (federal and provincial) to implement strong standards requiring that mining companies report the payments they make to governments both at home and abroad. For the members of this group — the Mining Association of Canada, the Prospectors and Developers Association of Canada, Publish What You Pay Canada and the Revenue Watch Institute — these recommendations provide a blueprint for the creation of a new transparency standard for the mining sector.

The recommendations conclude that provincial governments and securities regulators are best placed to create laws and regulations that require all publicly traded mining companies in Canada to make public the payments they make to governments, both at home and abroad. These recommendations follow over a year of cross-country consultations, numerous meetings, feedback and expert advice, and detail a transparency standard for mining company payments to governments that is aligned with those already passed into law in the European Union and the United States.

Action by provincial governments to improve transparency and implement these recommendations is critical. Canada is home to over 60 per cent of the world’s publicly traded mining companies, and with over $200 billion invested in over 100 countries, new transparency standards in Canada can positively impact the lives of citizens around the world.

For governments worldwide, mining revenues hold promises of change: the opportunity to increase infrastructure and social investments and a chance to establish broad-based economic growth. In Africa, where Canadian mining investment has grown from 6-billion in 2005 to 31.6-billion in 2011, translating mounting resource revenues into solid development outcomes isn’t just important, it’s essential.

Unfortunately, too often, citizens, elected officials, municipal and state governments remain in the dark about the natural resource revenues received by their national governments. This environment fosters corruption, mismanagement and sometimes armed conflict, and prevents citizens from receiving full benefit from their minerals.

By shedding light on these payments, the Canadian mining industry and civil society groups hope to create a credible source of information that citizens can use to hold their governments accountable. Similarly, subnational governments can use the information to ensure they receive the transfers allocated to them by law which can in turn fund badly needed social services like healthcare and education.

Companies benefit by clearly demonstrating the economic contributions of their projects and the stability that is generated when citizens are truly benefiting from their natural resource wealth. Investors have also echoed their support and desire to see information on the payments made by their companies to governments. Last year, Canadian investors with $362 billion in assets under management signed a letter reinforcing their support for the efforts of the Resource Revenue Transparency Working Group and this year a similar call was issued by international investors managing assets of $5.8 trillion.

The recommendations issued today not only unite Canadian mining industry associations and civil society groups in support of transparency, but they represent a concrete policy proposal to governments, outlining who should disclose which payments and how that disclosure should be made.

It is critical that Canada’s federal and provincial governments heed this call and implement the full list of recommendations. Last June, Prime Minister Harper announced that Canada will develop new transparency requirements for Canadian oil, gas and mining companies. With this announcement, and the passage of similar laws in the EU and U.S., the stage is set for Canada to become a leader in natural resource governance. But the federal government cannot do this alone. They need the provinces to step into the international spotlight and to take a stand on transparency.

For Canada’s provinces, this is a chance to make waves on a global stage — to help foster stable investment climates, provide investors with a key source of data, contribute to global anti-corruption efforts, and support good governance and development. This is an opportunity to take the common ground established through hard work, trust-building, and a lot of discussion between industry and civil society, and make it a reality.

http://www.huffingtonpost.ca/claire-woodside/canada-mining-transparency-_b_4747536.html

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Government  lauds  NGOs’, CSOs’  development role

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 Slicing CCRDA’s 40th anniversary cake

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The Ethiopian government has recognized the role of non-governmental and charity organizations in accelerating developmental works.

Speaking at the Third National Charities Good Practice Day held at Consortium of Christian Relief and Development Associations (CCRDA) conference hall yesterday, Deputy Prime Minister Demeke Mekonnen said that the number of development projects implemented, funds utilized, the number of people outreached, and the geographic coverage of charities has been encouraging indeed.

As to Demeke ,although there remains a lot of room for improvement, the contribution of developmental charities certainly has been notable and worth appreciating in the areas decentralized health services, drastic reduction of extreme poverty,expansion of educational services and provision of potable water.

“With regard to further enhancing our partnership and creating an enabling environment for charities to operate smoothly and carry out their developmental objectives, the government will continue to ensure that our legal frameworks are consistent with the developmental priorities of the country,” said the Deputy Premier.

Agriculture State Minister Mitiku Kassa also said that the government is well aware of the fact that CSOs operating in Ethiopia are extending a meaningful contribution towards ensuring food security in the country. According to Mitiku the relative concentration of NGOs in food insecure and drought-prone parts of the country shows the sector’s commitment to addressing food insecurity and livelihood vulnerability challenges of the country.

Acknowledging NGOs practical involvement in the health sector, State Minister Dr. Kebede Worku noted that CCRDA has considerable role in facilitating and harmonizing the activities of charity organizations engaged in the health sector particularly in preventing and controlling the spread of HIV and AIDS, malaria and other various communicable diseases.

CCRDA Executive Director Dr. Meshesha Shewarega also said that though the civil society sector is filling gaps of government, there are problems that need to be addressed primarily by the sector itself backed by the government.

“In this regard, CCRDA has been spearheading the endeavour of augmenting the sector’s self-regulation in the form of enhancing ethics, good governance as well as inward and outward accountability. Though the present efforts for enhancement of ethics, accountability and self-regulation within the sector is encouraging, given its early stage of institutional development and limited capacity, the sector still requires continued support, extended empathy and further enabling environment,” Dr.Mengesha said.

In connection with NGOs/CSOs Good Practice Day and its 40th anniversary CCRDA has awarded 11 non-governmental organizations in two categories for their best practices.

Accordingly, Bio-economy Africa, Self Help Africa, Water Action, Action aid, Agri-service Ethiopia and Voluntary Services Overseas were awarded cup and certificate under general development areas category.

The Ethiopian Orthodox Tewahedo Church, Hiwot Integrated Development Association, the Ethiopian Evangelical Church Mekane Yesus, the Ethiopian Guenet Church and Welfare organization as well as Adigrat Diocese Secretariat also received the same prize in the second category, HIV and AIDS intervention.

http://www.ethpress.gov.et/herald/index.php/herald/news/5951-gov-t-lauds-ngos-csos-development-role

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Africa Oil to complete 20 wells in Ethiopia, Kenya in 2014

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Africa Oil Corp. (CVE:AOI), a Canadian oil exploration company with assets in Eastern Africa, rose to the highest in nearly two weeks after saying it will complete 20 exploration and appraisal wells in Kenya and Ethiopia this year.
Africa Oil rose 2 percent to C$8.31 at 2:32 p.m. in Toronto, after reaching C$8.54, the highest intraday price since Jan. 29.
The Vancouver-based company said in a statement today that its 2014 exploration and appraisal program has three objectives: to appraise the existing key discoveries, to drill out the remaining prospects in the South Lokichar basin, and to open at least one of the four new basins being tested along trend.
Africa Oil said it currently has seven rigs running and after releasing one in mid-year, it will have six rigs running full time through the remainder of the year.
“This fully funded program should continue to deliver high potential upside value for shareholders through this year and beyond,” Chief Executive Officer Keith Hill said in the statement. (proactiveinvestors.com)

http://www.waltainfo.com/index.php/international-news/12297-africa-oil-to-complete-20-wells-in-ethiopia-kenya-in-2014

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Minister says Africa-EU Energy partnership  brought tangible results

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 The partnership has progressed and intensified with tangible

results in the development of the energy sector

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The three-day Second High Level Africa – European Union Energy Partnership Meeting aimed at reviewing success in the African energy sector, shape the future of Africa- EU relationship in the sector concluded yesterday.

Speaking at the meeting Water, Irrigation and Energy Minister Alemayehu Tegenu said: “It is highly prominent in the development goals set out by African leaders as mentioned in various initiatives, primarily in the Programme for Infrastructure Development in Africa (PIDA) in which the development of energy infrastructure is given a central role in the overall social and economic development of Africa.”

The partnership has progressed and intensified with tangible results in the development of the energy sector, making the sector of major significance among the areas of cooperation and engagement between the two continents, the Minister added.

“We are in the process of raising electricity generation by five fold, from about 2,000 MW to 10,000 MW, bringing the electricity network to the rural people to raise the access rate from 16 to 75 per cent, modern lighting and cooking to 80 per cent of the population, reducing the dependence on petroleum for transport sector by introducing locally produced ethanol-blended and other initiatives. Currently, the Ethiopian electricity access has reached 54 per cent,” the minister told meeting participants.

Alemayehu also said: “We have been able to install so far the largest capacity of wind power in sub-Saharan Africa reaching 171MW, which will almost double in a few months time as the country completes the installation of another 153MW of wind power capacity. The expansion of geothermal power development is also underway including the largest private sector development of the resources to date in Africa that of 1,000 MW.

“We are all committed to work with all partners who are ready to engage in the development of the energy sector on a win-win principle recognizing the unique role to be played by each stakeholder – public and private sector, civil societies and academia. Africa’s door is open to all who want to collaborate in mutually beneficial engagement in the development of the energy sector.

Commissioner for Infrastructure and Energy Africa Union Commission Elham Ebrahim on her part said that the objective of the meeting is to review the current status of the achievements so far confirm political commitment to the energy partnership and the achievements of the 2020 targets.

In Africa, more than any where else, access to modern energy is necessary to promote development, reduce poverty and achieve the Millennium Development Goals. According to International Energy Database, 1.4 billion people, about 20 per cent of the world population, currently have no access to electricity, of which 600 million live in sub-Saharan Africa.

European Commission Development Cooperation Commissioner Andris Piebalgs through video message said that energy is fundamental to development. “No energy means no sustainable economic growth, sustainable agriculture and decent education. In short no energy means no development.”

Three years ago, energy ministers of the Africa and EU set ambitions targets to be attained by 2020 to bring access to modern and sustainable energy to at least an additional 100 million Africans thereby doubling the capacity cross-border electricity interconnections, among others.

http://www.ethpress.gov.et/herald/index.php/herald/news/5952-minister-says-africa-eu-energy-partnership-brought-tangible-results

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Ethio telecom set to tackle network problem soon: CEO

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Ethio telecom announced that it has been striving to tackle the network problem in Addis Ababa.

Acting Chief Executive Officer Andualem Admassie told The Ethiopian Herald that his office is making utmost efforts to address the problem in a sustainable manner by identifying technical problems and designing new expansion projects.

The network expansion work is taking place in the city classifying tasks in three categories: Nokia, ZTE and New Network Development. Andualem further indicated that in areas where Nokia network is installed – Jomo, Lebu and Mebrat-Hail the company is working to accomplish network expansion task in less than six months. The new network expansion works in green areas would be completed within six months time.

Ethio telecom has concluded agreements with various companies giving due attention to expansion project contract and deadline, task details, project design, and execution of the task.

Presently, Ethio telecom is importing various equipment for network expansion from China, Andualem said. “We are discussing with Addis Ababa City Administration and other stakeholders to get sites for the placement of 300 new network facilities.”

According to Andualem, along with undertaking the new network expansion projects in Addis, the company is making utmost effort to increase network availability and quality in areas where mega projects are being carried out.

http://www.ethpress.gov.et/herald/index.php/herald/news/5938-ethio-telecom-set-to-tackle-network-problem-soon-ceo

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 Ethiopia rose farms in export overdrive for Valentine’s Day

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It is seven in the morning and 300 workers are arriving at the Gallica rose farm, a vast complex on the outskirts of the Ethiopian capital Addis Ababa.

Each year, the farm’s eight hectares of greenhouses produce around five million roses to be exported around the world.

But the run up to St Valentine’s Day is a particularly busy time of the year. Today alone, more than 20,000 flowers will be harvested.

“Here the cycle is about 80 days,” explains farm manager Gizachew Wondemu. “If you plant the roses 80 days ago, you get them now. So we try to prepare some of the varieties to come, mainly the red ones. We’re always producing less than the demand.”

Ethiopia is mainly known for its coffee. But the country’s agricultural sector is growing and, over the last 12 years and boosted by investment from the Ethiopian government, the niche market of flower production has boomed in particular.

Having started from scratch, Ethiopia exported two billion tons of flowers in 2013, with a value of 212 million US dollars.

That figure makes it the world’s fourth largest flower producer and second in Africa behind Kenya.

50,000 jobs

Although most flower companies are foreign-owned, Ethiopia’s flower sector has created over 50,000 jobs and over 70 per cent of the workforce are women.

For rural communities it is a great opportunity to find a job without having to travel to the city.

“I live next door but I don’t have my own land. I plan to work here, and then start my own business with my savings,” says Birtukan Milkesa, one of the workers at the Gallica farm.

“We have great advantages working here. For example, our lunch is provided every day.”

Ethiopian flower farmers follow a strict code of conduct and understand they work in a very competitive market.

At Gallica, each rose is carefully selected, sorted and packaged.

“Before shipping, the roses are packed, hydrated and stored in a cold chamber over night,” explains Stephane Mottier, Gallica’s owner.

The farm produces over 60 varieties of roses. When new hybrid colours form, they are given unique names.

“Different countries demand different varieties. This one will probably be shipped to Japan or South Africa,” says Stephane, pointing to a white rose.  “The rest, essentially red roses, are shipped to France.”

At the end of the day a truck comes to collect the flowers. They will then be taken by plane and delivered straight to flower shops around the world in time for Valentine’s Day.

Source and VIDEO  here

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Soaring fish demand turns farmers into overnight millionaires

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Written by Bob Koigi for Farmbizafrica

A programme meant to boost food security in rural areas four years ago has created a booming fish market, which has seen pioneer farmers rake millions as demand for fingerlings soars both locally and internationally.

The Economic Stimulus programme which sought to among other economic empowerment projects introduce fish farming in the counties aimed at boosting fish production and market which was traditionally a preserve of communities living in lakes and the coastal town of Mombasa. Under the programme the government was to spend Sh1.12billion to construct fishponds in over 140 constituencies. The funds have since shot to Sh3billion in the 2010/2011 fiscal year.

Over the same period, fish production rose from 4000 tonnes worth Sh560million in 2006 to 12,154tonnes worth 3.6billion in 2010. Nationally demand rose from one million in 2006 to 28million in 2011.

Local organizations raising young fish are now making huge profits, as demand dwarfs supply and the number of fish ponds rise across the country. “We cannot meet demand for fingerlings in this region. Individuals and institutions have been flocking our ponds seeking fingerlings.

Acceptance of fish has also raised demand,” observed Edwin Ndereba, chairman Thuita Forest Network, a non governmental organization in Nithi County. While initially formed for forest conservation efforts such as tree planting, the organization has emerged as the leader in fish farming in Eastern Kenya region.

Currently the network has 10 fish ponds most of them stocked with fish- mainly tilapia and catfish- for sale, as well as breeding stock for fingerlings. The network is among the 62 authenticated organizations by the Fisheries department to nationally supply fingerlings to the ballooning aquaculture businesses. Others in the county include Chwele Fish Farm and Yala Fish Farm in Western Kenya, Isiolo Fish Farm in Northern Kenya, Mwea Fish Farm in Central Kenya, Thongoni Aquaculture in Machakos and Bamburi Nature Trail in Mombasa among others.

“It will take a while before the markets for the fingerlings slow down. Even among women, interest in fish farming has been rising with its low labour demands and little land requirement,” Ms Gladys Murugi treasurer of 97 member network that has 75 women and 22 men said.

With land size on the decline as population rises, land intensive enterprises such as fish farming and greenhouse tomato and cabbage farming in the country have become a darling to smallholder producers. A fish pond measuring 450 square metres can sustain a family’s economic fortunes.

Recently the group set up a fish hotel at the neighbouring Kibugua market of Meru South. “We have been able to supply the hotel with fish from our ponds but demand continues to rise among the educated, young and those well travelled. Soon we may have to source fish from elsewhere as our hotel cannot support this appetite,” said Japhet Kabucha the group secretary. So far the network benefit 5,000 people directly with another 1,000 indirectly mainly through the fish farming activities.

Formed in 2004, the network took up fish farming two years ago after a Sh3million funding by the Nanyuki based non governmental organization Compact. With this funding the group was able to construct fish ponds, stock the fish and get permits to operate them.

But their major breakthrough came after the government launched the Economic Stimulus programme. Through the programme the government funds individuals or organizations interested in fish farming. “With the already existing fish ponds the Fisheries department felt we were already ahead of the pack. With the ESP we have already constructed a demonstration fish pond where interested persons and schools can learn fish management and marketing,” said Mr. Ndereba a retired Kenya Navy officer. But even with the increased appetite in fish dishes, it is the fingerlings that hold the future of the network.

While the stipulated price per fingerling is Sh7, it sometimes goes beyond Sh10 per piece due to rising demand. Like other members of the network, Mrs Murugi believes that once they obtain the necessary funding for construction of a fish hatchery, their business returns will triple. Already special ponds for hatching have already been constructed and stocking of male and female fish done at a ratio of 3:1 respectively.

However aquaculture has its challenges. “Poor breeding stocks and feeds are the biggest drawbacks to this sub sector. Farmers need to buy fingerlings from registered organizations lest they lose their investment through poor stock,” observed Mr. Kabucha.

Equally fish pellets in the market sometimes fail to supply the required nutrients due to poor formulation resulting in reduced growth rates of the fingerlings. The fish ends up taking longer to attain the table size of about 300-500 grams.

Within the network ponds, the fish are fed on locally formulated ratio bran, chicken growers mash and fish meal. Feeding costs average Sh3,600 although other overheads are few. Prospective farmers also need to ascertain that the feed do not have aflatoxin, as this can kill the fish. The network painfully learnt this lesson after the fish in one pond were wiped out after taking feeds sourced from a neighbouring country.

The network also works closely with the Forestry department, Kenya Wildlife Service, Ministry of water, Ministry of Agriculture, and Livestock Development and a number of non governmental organizations. Now the aquaculture farming seem to not only have taken off in the local market but is moving internationally as exports of the fish blossoms both in other East African market and across the globe.

For example many of the fish farming organizations are now exporting fish to the US and UK where renewed interest in fish consumption partly due to its nutritional attributes has seen demand shoot up by 30 percent in the last two years. “Infact the international market for fish has been the incentive that has drawn many fish farmers to this trade because it is very lucrative. Which is why we are scaling up on the fish farming,” said Mr. Kabucha.

http://farmbizafrica.com/index.php?option=com_content&view=article&id=1015:soaring-fish-demand-turns-farmers-into-overnight-millionaires&catid=10:market-trends&Itemid=144

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By  Tamrat G. Giorgis

A few weeks ago, the governments of Ethiopia and Turkey signed a bilateral agreement for the latter to guarantee loans of 1.7 billion dollars to finance the construction of a railway line in Ethiopia. A Swiss bank, Credit Suisse, has agreed to provide the loans for Ethiopia’s Railway Corporation (ERC), while a Turkish company has been contracted by Ethiopia to build the railway line – stretching from Weledya, up in the north, to Awash.

The railway line is just one of many state-financed national projects, which administration officials say are designed to enhance the nation’s economic competitiveness under the Growth & Transformation Plan (GTP), due to be completed in around a year’s time. From mobile network expansion to road constructions, and from the erection of sugar mills and fertiliser factories to building mega dams and public housing, the GTP aspires to accomplish in five years what Ethiopia has not been able to do in centuries.

Faced with a financing gap of 10pc of gross domestic product (GDP) a year, the administration of Prime Minister Hailemariam Desalegn is burdened with the task of sourcing financing from creditors around the world. China has proven to be an indispensable source of finance in realising what experts see rather as a “political commitment” in the GTP. Since 2012, the Chinese have made non-concessional loans worth over five billion dollars available to Ethiopia, where their contractors have bagged contracts to build railway lines, sugar mills and power transmission infrastructure.

“But they are kind of wary about their overwhelming presence,” said a senior administration official. “They would like us to have a diversified pool of resources.”

Diversified Ethiopia is trying hard to convince the Indian’s to get onboard and, equally so, the Turks. Subsequent to a recent meeting between Prime Ministers Hailemariam and Recep T. Erdogan, the Turkish government has agreed to guarantee loans worth 700 million dollars intended to finance the railway line.

These developments in the international finance landscape appear to be part of the reason why Hailemariam appears so upbeat about Ethiopia’s macroeconomic prospects for 2014. Speaking to the media last Monday, he portrayed a national economy inching towards a decade with annual economic growth of double digits, yet historic in the uninterrupted expansion in gross domestic products (GDP).

He projected double digit growth for yet another year, hoping to see further enhancement in agricultural productivity, expansion in industrial investment and a consequent growth in services.

Responding to myriads of questions from reporters on issues as wide as the controversy with Egypt over the Nile to Ethiopia’s role in South Sudan and Somalia; scenarios for the upcoming national elections and allegations of border concessions with Sudan to policies towards telecom and Eritrea, Hailemariam outlined his administration’s positions.

He was soft and accommodative over the issue of Nile, as he chose to echo his predecessor’s mantra that he is a foot soldier of the party. Lucid when discussing regional politics and matters of military operations, he was candid in conceding to difficulties of cash flow in the economy. Yet, he pledges to correct the hiccups and gives hope that the ever increasing national debt stock is well managed.

“Our debt sustainability ratio is very good,” he told the media during the press conference. “We’re on the safe side of the problem.”

Largely fuelled by the state’s overbearing involvement in the economy and an administration under a political force determined to rebuild the physical infrastructure of a nation, the country is now carrying a mounting debt owed to foreign creditors. Estimated to have reached close to 11.1 billion dollars, the piling up of external debts, and the way its sustainability can be maintained, is raising eyebrows of those following the matter.

The debt sustainability analysis (DSA), jointly carried out by experts from the IMF and the World Bank, is what nations use as an instrument to gauge their status in external debt stock vulnerability. The last one for Ethiopia was conducted in 2013, with the report stating that – “Ethiopia is at a low risk of external debt distress.”

It was a reaffirmation of what the report had said in the previous year, according to Abraham Tekeste (PhD), state minister for Finance & Economic Development (MoFED).

“There is no reason for alarm at all,” Abraham told Fortune.

However, critics of the administration see these views of the Prime Minister and the State Minister as complacent. This is especially in light of a recent development, whereby the country signed a series of contracts to enable it to access loans worth six billion dollars. This represents over half of the total external debt stock, which they fear may affect the country’s standing with the World Bank’s International Development Agency (IDA).

Contrary to commercial creditors, Ethiopia gets close to one billion dollars worth of cheap, long term and concessional loans through the IDA. Nonetheless, in April 2013, the World Bank introduced a ceiling to non-concessional loans coming from commercial creditors at one billion dollars, which will remain in place for the subsequent two years.

“The decision was informed by the 2012 DSA analysis, which demonstrates that such a ceiling is consistent with the maintenance of low risk in external debt distress,” says a report the IMF issued last year. “The 2013 DSA is consistent with the new ceiling.”

A combination of revenues from exports, flow of foreign direct investment (FDI) and an increase in remittances have contributed to lifting Ethiopia off the list of “moderate” to “low” risk countries in 2012. This is bound to change very soon, according to people informed in the subject.

The nation’s stock of public debt is hovering above the 20 billion dollar mark, claiming 45pc of the GDP. With more finance coming to pay for the various state-owned projects, keen observers of the debt stock see the risk factor increasing at a much faster pace than anticipated last year, where the annual non-concessional loans were close to 730 million dollars.

There appears to be a difference in interpretation, between Ethiopian authorities and those at the World Bank and the IMF, over what constitutes a ceiling of non-concessional loans. This is an issue of divergent views between those at the World Bank and the IMF. While officials at the World Bank appear to share the view of the Ethiopian authorities that non-concessional loans should only be counted on the bases of the amount of disbursement, as opposed to the whole value of contracts signed, those at the IMF appear to disagree.

“In the non-concessional borrowing policy, a loan counts at the point of signing the loan contract, regardless of the disbursement profile,” says a DSA report for 2013.

It warns of – “the importance for Ethiopia of monitoring debt closely and remaining vigilant regarding new debt accumulation, particularly with commercial loans.”

With short term, expensive and non-concessional loans coming fast to the country of late, there is a review of the DSA being conducted, with a draft having been submitted to officials of the MoFED, according to sources at the Ministry. It will determine whether the administration of Prime Minister Hailemariam is in breach of its commitment.

Despite the difference of opinion over the interpretations of the annual debt ceiling, Ethiopia’s passing of the one billion dollar credit threshold may compel the Bank to reconsider its privilege of receiving soft loans with nominal interest rates, which could get paid in two or three decades. Such matters would be left to the discretion of the board of directors of the World Bank.

“There is a big question as to whether the IDA will continue to hold,” said a person knowledgeable in the matter.

A senior World Bank official, based in Addis Abeba, who was approached for an interview late last week, has declined to comment.

Others, however, see nothing more than a little commotion in the highest echelons of the Bank, which will soon disperse and business will continue as before.

Regardless of the response from international finance institutions, critics warn that the administration is heading towards a rude awakening. Overreliance on foreign debt to finance national projects of all types by the state is diverting resources from the domestic private sector, thus raising questions on who should have these resources and where they could better be deployed.

While they acknowledge the state’s investments in power, transport, health and education infrastructure, its involvement in building sugar mills and fertiliser manufacturing plants, as well as acquiring vessels and investing in creating a wholesale company are signs of difficult years ahead. They view, for instance, the rate of return in railway investment coming very late to the game.

They would rather see it focus its efforts in addressing major constraints put on national competitiveness in logistics, bureaucracy and services provision.

The administration sees little in the way of practical advice in such a debate, as it believes these criticisms are motivated by ideological considerations. Hailemariam argued last week at the press conference that loans and advances made available to the private sector has increased by 17pc compared to last year.

“We’ve no understanding that there is currently a liquidity holdup in the economy,” the Prime Minister told the media.

Sourced  here

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Related posts

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-     Moody’s in town

-     The burgeoning opportunity in Ethiopia’s factories

-     Accession to WTO- where smartness will make a difference

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

-     Ethiopia to become one of the top travel destinations in Africa, claims Green Land Tours & Hotels

-     Ethiopia strides forward with the GTP

-     GTP at the crossroads: achieving targets and seizing opportunities

-     Ethiopia: The Last Big Untapped African Market

-     Africa’s 5 Best Performing Economies 2013

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Turkish Company Secures Half Billion Birr Road Project

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- The new road will reduce the distance between Awash Arba and Debre Berhan by two-thirds -

Ray Ozaltin the board member of Atayol (left) and, Zaid Woldegabriel, ERA’s general director  (right)

on the agreement signing ceremony of Dulecha to Awash Arba road project

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The Ethiopian Roads Authority (ERA) has given a Turkish company a 596 million Br contract for two road construction projects in the Amhara and Afar regional states.

The contract was signed with Atayol Asphalt Contracting, Construction Liquid Fuel Energy, Industry & Trade Company Co Inc, on Friday, February 14, 2014, at the ERA’s headquarters on Ras Abebe Aregay Street, near Mexico Square. Atayol’s website indicates that the company has completed 17 projects in Afghanistan to date, with three further projects ongoing. It shows no other projects elsewhere.

Its project in Ethiopia will be a 53km road from  Dulecha to Awash Arba, both in Afar. This is part two of a 93km road, with the first part – from Ankober to Dulecha – covering the remaining 40km. This section of the road is yet to be awarded to a contractor.

Atayol’s project consists of the upgrading of 10kms of existing gravel road and the construction of 43kms of new asphalt road. The road will be 14m wide in urban areas and 10m wide in rural areas – both including shoulders.

The existing road has been difficult to use during the rainy season, said Samson Wondimu, the ERA’s communications director.

The road is also expected to link the Amhara and Afar regional states economically, over and above being an alternative route to travel to Djibouti, a statement from ERA said. The road could also boost tourism to Ankober, the ancient capital of the kingdom of Shoa, and later the capital of Ethiopia during the reign of Emperor Menelik.

Atayol’s payment will be split 60:40 between Birr and dollars.

Upon completion, the road will minimise the 380km long road from Awash Arba to Debre Berhan, through Addis Abeba, to 135kms.

Although the contract is expected to be completed within two and a half years, Ray Ozaltin – a board member of Atayol, who signed the project agreement representing the Company with Zaid Woldegabriel, ERA’s general director – promised that the Company will complete the road within a year and a half.

For Atayol, which has more than 10 years experience in the sector, with 17 road project deliveries in various parts of the world, the project is its first engagement in Ethiopia.

The International Developmental Association (IDA) – a wing of the World Bank (WB) – and the Ethiopian government will jointly finance the project. The project consultants will be DIWI Germany, a German firm, and the Engineer, Zewde Eskinder.

The road will have bridges, drainage pipes, traffic indicator signs and other structural constructions.

The Authority has worked on the rehabilitation of 728kms of trunk roads and has upgraded 5,023 trunk and link roads. It has also carried out the construction of 4,331kms of new link roads and maintained 4,700kms of asphalt and gravel roads over the past five years.

http://addisfortune.net/articles/turkish-company-secures-half-billion-birr-road-project/

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Decade Wait Over As Lamberet Bus Terminal Commences Operations

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- Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005 -

The recently opened Lamberet Bus Terminal, located at Dessie Ber, in Yeka District.

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The Lamberet Bus Terminal, one of the five planned during the previous Dergue government, which were to be located at the city’s exit points, commenced operation on February 8, 2014, almost a decade after the originally planned time.

The construction of the terminal located at Dessie Ber, in Yeka District, was delayed for a decade because of the escalating price of construction materials. On the other hand, the political upheaval in the aftermath of the May 2005 national elections derailed the plan, since the station was turned into a camp for the Federal Police forces between May 2005 and January 2006. The police did not leave the premises after the unrest died down, leading to a further delay

The 55 long buses and 130 medium and small buses, which are deployed by the terminal on a daily basis will cross three regions-Amhara, Oromia and Tigray, with their final destination being Shire Endaselassie, a town in Tigray Region located 1,087 km north of Addis Abeba.

The Federal Transport Authority (FTA), which administers the terminal, has installed a checkpoint around Legedadi in Oromia Region located 25 km from Addis Abeba to intercept buses working outside of the terminal, says Abeleneh Agedew, head of Promotions & Public Relations at the Authority.

Ten staffers supervise daily deployment of buses, while 19 associations of buses are also working with the terminal staff in the deployment.

The terminal’s management has reserved some buses in case shortage occurs while serving 20,000 to 30,000 passengers each day, starting from 6:00am in the morning to 7:30pm till at night, according to Getahun Cheru, public transport deployment & control coordinator of management of the terminal.

Passengers will not be allowed entry into the terminal without tickets.

The terminal’s management is working closely with the newly resurrected Code Enforcement Services Office and the Addis Abeba Traffic Police to maintain the security of the terminal, according to Getahun.

“Controlling the terminal with only 10 security officers is difficult,” Getahun said. “The management has requested the Authority to assign more staff.”

The eight million Br terminal built by the Nega Mamo Construction Company with is equipped with spaces for passengers awaiting buses, access for the for the disabled, baggage trolleys and toilets for passengers.

Construction of the terminal began in early 1998 and was originally scheduled to be completed in June 2005.  The Authority received the terminal on December 9, 2013 from the contractor.

As a means of protecting against theft, the terminal requires that passengers must receive tags after their baggage are weighted, says Wondyirad Worqu, a security officer.

Some passengers approached by Fortune complained of the dearth of hotels with affordable prices near the terminal.

“While staying at nights, I have to sleep outside the terminal under the fences,” says Tekliye Habtegebriel a passenger, who came back from the Amhara Region on Wednesday, February 12, 2014. “This robs passengers of comfort and security.”

Although the management used to allow passengers to sleep inside the compound for a few days after the commencement of service, it decided to change this fearing dispute over responsibility in case property is stolen or lost.

“Since we are working with the District Administration on ways of engaging MSEs [Micro & Small-scale Enterprises] in the provision of restaurant and bedroom services, we hope to end passengers’ discomfort soon,” Getahun told Fortune.

For bus drivers like Dereje Hailu, however, the terminal stands out from several others as it allows them to leave buses in the terminal until the next morning while they are not travelling.

According to the Authority, there are 3,694 transport routes across the country. Of these, 139 are served by transport buses with more than 47 seats. There are 1,014 such buses operating on these routes, as well as 42 buses, labeled ‘special buses’ by the Authority from companies such as Selam Bus Line S.C and Sky Bus Transport System S.C.

http://addisfortune.net/articles/decade-wait-over-as-lamberet-bus-terminal-commences-operations/

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State-Owned Financial Institutions Announce Six Months Profit Bonanza

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Sintayehu W.Mikael (PhD), left, director general of the Public Financial Institutions Supervising Agency with the Agency’s Public Relations of Gebre Erkalo.

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The four state-owned financial giants – the Commercial Bank of Ethiopia (CBE), Development Bank of Ethiopia (DBE), Construction & Business Bank (CBB), and the Ethiopian Insurance Corporation (EIC) – together amassed a profit of 5.6 billion Br during the first six months of the 2013/14 fiscal year.

The amount, which is 98.4pc of the planned profit, has surpassed last year’s figure for the same period by 29.4pc, according to a statement released by the Public Financial Institutions Supervising Agency.

The CBE reported gaining 4.6 billion Br out of its plan for a profit of five billion Birr. It accounted for 85pc of the total profit by the three state banks.

During the six months, the DBE planned for a 389.7 million Br profit, but surpassed it by 94.3pc. The bank gained 757.2 million Br profit. The reason is an increase in interest income and non-performing loans.

The CBB amassed 61.6 million Br in profit, while planning to get 60.7 million Br. The profit is 101.5pc compared to the plan. The revenue came from income from commission, interest and service fee.

The cumulative loan registered by the state financial institutions has reached a total of 239.5 billion Br by the end of the reporting period, the report said, showing an improvement of 48.6 billion Br from the same period a year ago.

The insurance corporation, on the other hand, projected a profit of 271.5 million Br for the same period, but gained only 160.8 million Br, achieving only 59.2pc of the plan. The report attributed this to the high provision expense for doubtful loans.

EIC’s premium collection, given for the first quarter of the fiscal year, amounted to 901 million Br, almost 63pc of the planned 1.4 billion Br. The Corporation has paid 262.7 million Br in compensation and commission, 10.5 million less than the previous year.

There was a plan to obtain 3.1 billion dollars worth of foreign exchange through export and remittance, of which the three banks achieved 2.4 billion dollars. This performance was also lower by nearly 22pc than the 3.1 billion dollars collected during the same time a year ago.

The CBE accounted for 2.3 billion dollars of the total collection, while the DBE and CBB account for a 0.04 dollars and 0.06 billion dollars, respectively. Both export and remittance decline have accounted for the lower performance, the report said.

A lot of the remittances sent to Ethiopia flow through back channels, according to the World Bank (WB) and, remittance has averaged 1.3pc of the gross domestic product (GDP) over the last 30 years. Between 1977 and 2003, remittance flows have steadily grown from four million dollars to 47 million dollars a year. After this, the growth climbed sharply towards 172 million dollars and 300 million dollars, in the years 2007 and 2010, respectively.

The CBE remains the dominant operator in the sector, having a total of 780 branches, 85 of which were opened over the past six months. CBB follows with 105 branches.

http://addisfortune.net/articles/state-owned-financial-institutions-announce-six-months-profit-bonanza/

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Crown Plaza Hotel Coming to Ethiopia with IFC Support

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- The hotel will be the fourth of an international standard in Addis Abeba, with a fifth, Marriott, also expected soon -

The area on which the 11-storey hotel is being constructed in Lideta District At the site of the old Etfruit facility.

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The World Bank Group’s International Financial Corporation (IFC) is considering an investment of 19 million dollars for the completion of an international standard hotel in Lideta District. The total cost could add up to as much as 37 million dollars.

If the investment materialises, it will be concluded with Tsemex Global Enterprise Plc and its subsidiary, Tsemex Hotels and Business Plc, both owned by Rezene Ayalew, a local business man, and his children. The request for investment was made by Tsemex’s owners, who have already erected the structure of the 11-storey building in Lideta at the site of the old Etfruit facility, a source close to the business said.

The IFC says that the purpose of its “investment is to help to address the shortage of hotel rooms of an international standard in the capital city, Addis Abeba”. The two sides are working on the deal with the understanding that the hotel will be managed by the International Hotels Group (IHG) and be branded Crown Plaza Addis.

If it works out, Crown Plaza could be the fourth international brand hotel in Ethiopia, after the Hilton, Sheraton and Radison Blu. Sunshine Construction also has a deal with Marriott, which is yet to bring to service the hotel that goes by that name.

The IFC’s experts have travelled from Washington five times, the source said, to determine if the loan should be granted. If the IFC decides to make the loan, Tsemex Hotels and IHG simply need to sign a deal to finalise the full management contract, the source said. This could happen sometime in March. The IFC could make its final decision known on March 17, 2014, according to its website.

The IFC says that the expected development impact of the investment includes providing a modern business infrastructure, migrating best practice, creating employment (for 315 people) and offering business opportunities for local suppliers – “particularly in the areas of food & beverage supply and the provision of services (for example, transportation, security services)”.

As part of the deal, the IFC will not only offer long term financing, but will also “help to raise additional debt financing for the Project; advise the Company on sustainable business and E&S (environmental and social) practices specific to the property development and hospitality business and avail to the Project its experience in financing hotel projects, particularly in Sub-Saharan Africa”.

The IFC had a deal in 2009 with the Ethiopian Commodity Exchange (ECX) to increase loans to Ethiopia’s agricultural producers.  That agreement created access for the warehouse collateral mode of financing.

The following year, it signed a risk sharing agreement with the Nib International Bank (NIB) to enhance the bank’s lending capacity to Ethiopian coffee farmer cooperatives. That agreement enabled the Bank to increase the scale of its lending to 70 farmer cooperatives during the 2010/11 fiscal year, extending 200 million Br in loans on the strength of a 10 million dollars guarantee from the IFC for the risk the programme involved.

http://addisfortune.net/articles/crown-plaza-hotel-coming-to-ethiopia-with-ifc-support/

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Large Italian Delegation Expected for Trade Fair

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- Italian deputy minister cancels trip because of political shake-up, but scheduled meetings will go ahead as planned -

Carlo Calenda

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A delegation of 50 Italian companies are arriving in Addis Abeba, with the head of the Italian Trade Agency, to participate in the 18th Addis Chamber International Trade Fair.

The Italian Deputy Minister for Economic Development, Carlo Calenda, was scheduled to lead the delegation, but his trip has been cancelled following the resignation of the Italian Prime Minister Enrico Letta, on Friday February 14, 2014.

Despite the deputy minister’s absence, however, the Italian delegation will meet with the Ethiopian Chamber of Commerce & Sectoral Association and the Ethiopian Investment Agency, said Matteo Bianca, first secretary and head of the Economic & Commercial Office at the Italian embassy in Addis Abeba.

The visit, organised by the embassy, is the culmination of years of high level talks on economic cooperation between Italy and Ethiopia, Pianca said.

The Trade Fair, which is organised by the Addis Abeba Chamber of Commerce & Sectral Associations (AACCSA), will take place from February 20 to 26 at the Addis Abeba Exhibition & Market Development Enterprise (AAEME), located near Meskel Square.

The AACCSA is expecting at least 122 international companies from 18 countries, including Italy, Kenya, South Africa and the Netherlands, as well as 60 local companies.

“The trade fair will have business to business discussions, a symposium and an exhibition of products and services from different sectors,” said Gashaw Abate, manager of Trade Fairs at the Chamber.

The Chamber expects between 4,000 to 6,000 visitors each day, he said.

“The aim of the trade fair is to facilitate technology and experience transfer” said Gashaw.

The chamber, Gashaw said, has planned a dinner, on Friday February 21, at the Hilton for the Italian visitors.

http://addisfortune.net/articles/large-italian-delegation-expected-for-trade-fair/

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Israel’s agriculture, rural development Minister to Visit Ethiopia

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Israel’s Agriculture and Rural Development Minister, Yair Shamir, is scheduled to pay an official visit to Ethiopia, Ghana and Nigeria.

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He will first go to Nigeria, and then to Ghana beginning March 2 to 4 after which he will finally proceed to Ethiopia.

The Public Diplomacy Coordinator, Embassy of Israel, Mina Okuru, in a statement copied to the GNA said Minister Shamir will be accompanied by a business delegation of Israel’s leading companies in agriculture, irrigation, poultry, fisheries, agro chemicals and large scale agriculture project integrators who are expected to feature in a business seminar and other meetings.

Minister Shamir, who is the son of former Israeli Prime Minister, Yitzhak Shamir, is a former military pilot and a member of the Israeli Parliament. (gbcghana.com)

http://www.waltainfo.com/index.php/explore/12333-israels-agriculture-rural-development-minister-to-visit-ethiopia-

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Related news:  http://www.icl-group.com/newsevents-pressreleases/Article/74f5f969-718e-48a1-93a7-4f5e912b06a7.aspx

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Some five enterprises attract buyers

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Some five of the 11 public enterprises put up for bid attracted buyers, the Ethiopian Privatization and Public Enterprises Supervising Agency (PPESA).

Agency Deputy Public Relations Head, Assebe Kebede, told WIC Ethiopian Pharmaceuticals Manufacturing Factory (EPHARM), Kombolcha Textile Share Company, Bekelch Transport Share Company, Hamaresa Edible Oil Share Company were the enterprises that attracted buyers.

The other state enterprises that did not attract interested bidders were Transport Construction Design S.C, Agricultural Mechanization Service Enterprise, Woira Transport S.C, Bahir Dar Textile S.C, Artistic Printing Enterprise and Ethiopian Mineral Development S.C, he said.

According to Assebe, the agency intends to sell the enterprises in full private ownership.

http://www.waltainfo.com/index.php/explore/12330-some-five-enterprises-attract-buyers

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Ministry working to build capacity of teachers

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The Ministry of Education (MoE) said   efforts are underway to build capacity and competency of teachers so as to maintain education quality.

Communication Affairs Directorate Director at MoE, Desalegn Samuel, told WIC that the ministry is implementing various programs that enable to improve knowledge and skills of teachers at primary and secondary schools.

Teachers are receiving on-job short and long-term trainings. Similar trainings provided for teachers in the past have brought about encouraging changes in building their capacity.

With a view to ensuring education quality, efforts are also underway to provide certification of occupational competence for teachers, Desalegn indicated.

According to director, over 90 per cent of the teachers at government’s primary schools of Ethiopia are diploma holders.

http://www.waltainfo.com/index.php/explore/12331-ministry-working-to-build-capacity-of-teachers-

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Africa Oil to complete 20 wells in Ethiopia, Kenya in 2014

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Africa Oil Corp. (CVE:AOI), a Canadian oil exploration company with assets in Eastern Africa, rose to the highest in nearly two weeks after saying it will complete 20 exploration and appraisal wells in Kenya and Ethiopia this year.
Africa Oil rose 2 percent to C$8.31 at 2:32 p.m. in Toronto, after reaching C$8.54, the highest intraday price since Jan. 29.
The Vancouver-based company said in a statement today that its 2014 exploration and appraisal program has three objectives: to appraise the existing key discoveries, to drill out the remaining prospects in the South Lokichar basin, and to open at least one of the four new basins being tested along trend.
Africa Oil said it currently has seven rigs running and after releasing one in mid-year, it will have six rigs running full time through the remainder of the year.
“This fully funded program should continue to deliver high potential upside value for shareholders through this year and beyond,” Chief Executive Officer Keith Hill said in the statement. (proactiveinvestors.com)

http://www.waltainfo.com/index.php/international-news/12297-africa-oil-to-complete-20-wells-in-ethiopia-kenya-in-2014

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Ethiopia to start Mobile Financial Service

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Ethiopia is embarking on the development of Mobile Financial Service (MFS), stated Debretsion Gebremichael; Minister of Communication Information Technology and Finance and Economy Cluster Head with the rank of Deputy Prime Minister.
A conference was organized on Mobile Financial Services on Thursday February 13th entitled “Catalyzing Transformation through Technology: How Mobile Financial Services Contribute to the Growth of Ethiopia.”
The conference explored the potential of Mobile Financial Services to drive transformation in the country’s financial sector. It was stated that the MFS can enable the rural population to improve their lives while supporting the Growth and Transformation Plan (GTP) through increased savings, agricultural investment and productivity as well as stronger rural institutions and markets.
“MFS has the power to enable the millions of rural citizens to enter the formal economy. These people need to save and borrow resources to build assets, buy and sell to engage in productive activities and send and receive money to reduce vulnerability. All of this requires they have access to the financial sector,” Debretsion stated.
There are currently over 90 million Ethiopians dispersed across 1.2 million square kilometers of land, 80 percent of which are living in the rural areas. Financial institutions have not been able to reach a majority of those people with the back branch to population ration still at 1 to 82,000.
“Clearly the need to find alternative ways of reaching and serving the population is required. While the penetration of mobile phones among the population continues to grow in significant numbers year on year, the government believes that it is possible to take advantage of that technological infrastructure and technology which now lies in the hands of citizens, to deliver financial services,” Debretsion said.
Parallel to the conference was a closed meeting held where decision makers from the office of the Prime Minister, Ministry of Communication Information Technology, National Bank of Ethiopia, Ministry of Finance and Economic Development and Ministry of Agriculture were present.
The main discussion at the closed meeting was said to be what Mobile Financial Service means in a policy context and what concrete steps and actions should be taken by the government to achieve the full economic potential of MFS.
“Achieving this goal, however, is still complex. It requires that we study the vast body of knowledge and evidence from the global community’ successes and challenges in similar endeavors. It requires that we understand our own strengths and remaining challenges,” Debretsion said.
He also stated that the meetings were not just about determining best practices but also what best fit in an Ethiopian context.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4052:ethiopia-to-start-mobile-financial-service-&catid=35:capital&Itemid=27

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Remember where you read it first. Just a month ago — on 10 January to be exact — InvestorIntel headed a post, “Africa: Waiting in the wings as a potash market (and producer)”.

Now that is about to become a reality. Allana Potash (TSX:AAA) is joining forces with ICL (TASE:ICL) — formerly known as Israeli Chemicals Ltd — to fulfil a vision they have called “Potash for Africa First”. (The deal has other ramifications which we shall come to below.) In essence, ICL will provide the financing and marketing muscle to make possible the development of Allana’s Danakhil potash deposit. For Allana, this provides the one missing component of its corporate plan: the money needed for that development. And, also, it short-circuits the marketing challenge as the deal includes an offtake arrangement, ICL agreeing to take all the annual production up to 1 million tonnes.

As we noted here last month, Africa consumes only about 750,000 tonnes a year of potash. With the proper infrastructure (and efficient governments) as much as 6 million tonnes a year could be sold into sub-Saharan Africa. And within 10 to 15 years, that could be raised to close to 10 million tonnes, which would not only be a great boost to food production in a continent that sure needs that to happen, but also to potential potash projects in Africa itself.

Action is needed urgently if Africa is to feed itself with soil degradation a continent-wide problem, especially in Nigeria, Guinea, Democratic Republic of Congo, Angola, Rwanda, Uganda and Burundi. Apart from that, Africa does not have a fertilizer industry of a size needed to meet its own needs, so that scarce foreign exchange has to be spent on importing for the farmers.

In addition, there is a growing demand for fertilizer is from large foreign companies which are increasingly investing in African agricultural projects. As the World Bank points out, Africa has more than half of the world’s fertile yet unused land.

The details of the Allana-ICL deal, which will see the Israelis investing up to $84 million, are posted on the News section of Investor Intel.

But the key to this deal is the comment that the alliance will be “transformative for Ethiopia and for East Africa”.

Allana will be producing muriate of potash for staple crops production and, once in production in Ethiopia, Danakhil is expected to be one of the world‘s lowest cash-cost potash projects. There was one particularly interesting comment by Stefan Borgas, president and CEO of ICL: that Africa was “the market with the highest growth potential in the fertilizer world”.

So, to explain the headline that there are four winners in this:

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1. Allana: Let us count the ways this works for the company. There has been a continuing reluctance by banks, especially the commercial ones (as opposed to the development banks) to finance potash projects because of the sheer scale of cost and even more so if they are located in a jurisdiction with the merest whiff of political risk. Not only is ICL putting up money ($25 million to begin with) but its presence will be a hugely reassuring factor for any bank that runs the ruler over this project. Secondly, Allana is freed from much of the enormously time-consuming business of finding customers and marketing; sure, there may be up to 20% of production that has to be placed with customers other than ICL but that is a much less imposing a proposition than trying to sell it all. Thirdly, Allana-ICL are working the way the two ends of the resources business should be working: the exploration company doing what it does best (exploring) and the major what it has extraordinary expertise in doing (the distribution and marketing — and bringing in technical knowledge that Allana will not now have to replicate).

In essence, Allana has put itself well and truly on the development fast track.

2. ICL: In an industry where you have two behemoths, BPC and Canpotex, this deal provides the Israelis with organic growth without running head-to-head with the two big players. ICL will, from the sound of the emphasis on Africa, be creating a new market. It, and Allana, will have first-mover advantage in Africa.

3. Ethiopia: It gets a domestic source of potash for its own farms; the availability of fertilizer will encourage more foreign companies to invest in agribusiness projects in the country; and there will be the ripples in terms of infrastructure and employment from the development of this project. (And it will spill over into Djibouti, too.)

4. Africa: Countries in East Africa will be able to buy fertilizer without the huge transport costs involved in shipping from Canada or Russia. Once the Allana-ICL deal is bedded down, other players will start looking to come into Africa and develop other projects.

Sourced  here

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Prime Minister Haile-Mariam Desalegn, on February 10, 2014 responded to questions raised by local journalists. On today’s edition The Ethiopian Herald has carried questions raised and responses given in relation to the over all economic development, and ethio-telecom.

Question: Various financial institutions including the World Bank have confirmed that Ethiopia’s economy is growing. However during the past two years they were saying that the economy was growing by a single digit as opposed to the government’s claim that the growth was a double digit one.

Prime Minister Haile-Mariam: Since the past 10 years Ethiopia’s economy has been growing rapidly. When we look at the growth of agriculture in 2004 E.C it was only 4.8 per cent which is way below what was planned. And as a result of the fact that agriculture constitutes the largest share in the country’s economy, the country’s economic growth in the same year was 8.5 per cent. When we look at the figure of this particular year, yes, it is not a double digit growth. Nonetheless, an economy is considered to be growing fast if it is growing by seven per cent and above. Although agriculture somehow showed decline, as a result of the rapid growth registered in industry and service sectors our economy was still one of the fastest growing.

In 2005 E.C since the performance of the agriculture sector improved the economy grew by 9.7 per cent. This is almost close to a double-digit growth. However, we still do not consider it as double digit growth. If the institutions have to make analysis they have to see the economic growth within the specific year not in comparison with the previous years. I am saying this because in 2006 E.C, if we look at the agriculture sector, it has more than any time in the past. The forecasting for the Meher season alone shows that agriculture has grown by 10 to 11 per cent. The contribution of oil seeds, cereals and irrigation was not included. When it is included it is not difficult to imagine that the average growth rate could be even higher. Given the fact that Ethiopia’s economy is heavily dependent on agriculture what has been achieved in agriculture is indicator of the fact that there will be a double digit economy growth.

Judging by the current rapid growth in the agriculture, industry and service sectors as well as the growing influx of investment, we believe that we can achieve our economic growth target for this year.

So, most often the are discrepancies between our forecast and that of the World Bank. As everybody knows the World Bank’s forecasting method is different from what we commonly know. Anyways most of the time they accept ours. Recently there was an incident in which the World Bank confirmed that Ethiopia’s economy is growing by 10.6 per cent. When it comes to final result we don’t have much difference, however, we most often have differences in forecasting, and it is not surprising that the forecasts of the World Bank and that of ours had discrepancies.

Question: The services of ethio-telecom is declining. In fact over the past few days telecom services were totally interrupted. Is the country’s policy to see the telecom sector continue in such situation? Is there any policy change regarding making the telecom industry play a better role in the economy?

Prime Minister Haile-Mariam: Previously we announced that ethio-telecom started a new operation. Particularly in Addis Ababa it started expansion work two months ago. Obviously there will be ups and downs during this expansion work. For instance the interruption of telecom services last week was caused during replacement of old transmitters with new ones. Therefore, such interruptions may occur until the expansion work is completed in six months. So, priority is given to the replacement of network transmitters in areas as Sarbet, Torhailoch and others. where formerly a company called Erickson tried to do expansion work and which are known until today for having serious network problems.

This, however, doesn’t mean that ethio-telecom did not have other problems related to network congestion. Let alone today when transmitters are being replaced even in the past has had network congestion and quality problems. Basically now a direction is designed to alleviate the problem once and for all. So attention will be given to the completion of these activities based on schedule.. That is when change will come in the telecom services.

By the way, the technology that we are applying in the telecom sector is from the company named Huawei, which is also known to be used by countries such as Denmark, Norway and partly England among others.

Therefore, since the technology that we are using is quite similar with the technology the aforementioned countries use, the issue of quality service is to follow the proper completion of the installation of the technology. What we have to know is that the installation of this technology has nothing to do with the question of privatization of the telecom sector. The fact the there is a network congestion has been mentioned before. So, we hope the quality will improve as the work of the installation gets completed.

My government has a firm stand in keeping ethio-telecom as a state owned telecom company for several reasons. As we all know, one of the most juicy businesses is the telecom sector. It is a cash cow. That is why many insist that we privatize the sector. If we were to allow private companies, it is only three companies that would come for the sector. However, now it is 156 countries that are competing for the three areas. And we know why they are dying for it- it is because this is an area where one gets rich very easily. My government, however, strongly believes that this fortune should not be privatized because it is one of the major ways by which we reach out the rural part of the country. It is with the income we generate from the sector that we can redistribute the wealth in the cities to the rural part of the country.

Therefore, we will not transfer the sector to private companies at least for years to come. We know that it is only the government that can make the rural people equally beneficial with that of the urban population from the sector by redistributing the sector’s wealth in cities to the rural part of the country. In many African countries the private sectors that own the telecom sector do not bother about reaching out the rural people because if they do, they may not be advantageous. But we, as government, can make the people in the rural areas beneficial.

Moreover, transportation cost in Ethiopia significantly affects our effort to be competitive economically. And if this cost continues, the country’s economy would lag behind. Therefore, in order to be competent with world economies speed up the construction of the transportation infrastructure, especially the rail way transport is vital. Accordingly, the government of Ethiopia annually allocates birr six billion to the rail way projects from the income generated from the telecom sector.

Even if we take the six billion birr as a net profit and assume the private sector to pay 70 per cent in the form of tax, it is still not sufficient for us to proceed with our developmental activities that we are undertaking as far a the rail way infrastructure is concerned. So, for us, in order to continue our development activities, we are still determined to keep the sector owned by the government. We, therefore, must understand this economic logic. We, therefore, make sure that we will not privatize the telecom sector until we successfully accomplish our objectives with regard to developing the basic infrastructures. I once again assure you that there is no policy change in this regard as well.

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Sourced  here

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Related posts

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-     The burgeoning opportunity in Ethiopia’s factories

-     Revolutionizing Wheat Production in Ethiopia   

-     IMF’s pills for Ethiopia: It Ain’t the Economy, it Is the Lab!

-     IMF’s new report highlights Ethiopia’s inclusive growth

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There is concern that the work of small farmers as custodians of diversity will be undone by the G8 New Alliance

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Claire Provost in Addis Ababa

Wednesday 19 February 2014.

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 By Tecola W. Hagos

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PART I: FOREIGN POLICY: ETHIOPIA, ISRAEL, AND ARABS:

I. Introduction

Even though I was very hopeful that PM Hailemariam Desalegn would be a starting point for an Ethiopian governmental transformation away from the antiquated despotic style of governance of Meles Zenawi, the current Ethiopian leaders seem to be confused and irresolute. However, I find also this same Ethiopian Government making visionary long term strategic policy decision like the decision to expand the rail system from Djibouti (I suggest to use Berbera) to the highlands of North Ethiopia, which ought to include expansion to the South and South-West of Ethiopia all the way to Juba. Hailemariam Desalegn is a different personality than Meles Zenawi and any of the leaders of the TPLF. However, this does not mean that he is not susceptible to all the ills of despotism of past Ethiopian leaders. In fact, he must guard against such temptations. His recent press conference of February 13, 2014 (where he made uncalled for reference to Meles Zenawi as “our great leader” while Ethiopia is struggling to come out of the quagmire of corruption, being landlocked, ethnic fracturing et cetera caused by Meles) confirmed to me my nagging suspicion that he would be just a follower of the conspiratorial despotic system of TPLF’s Party politics than a leader of change and democratic governance. In general, the “new” Ethiopian Government leaders seem frozen in a time loop clearly tittered to the ghost of Meles Zenawi. Ethiopian leaders better learn the fact that if they do not respect Ethiopians wherever, no one else would respect them as leaders and/or as individual human beings anywhere.

I read often endless repetitive single theme articles that Meles Zenawi was not a good leader without offering worthwhile creative solutions to the many such problems created by Meles now facing Ethiopia. I am tired of reading/listening to such nauseating repeat statements with no offer of viable solutions. We all know Meles Zenawi was a narcissistic, disloyal, ruthless, and violent leader with no emotional connection to our historic Ethiopia. He harmed Ethiopia more than any leader in Ethiopia’s long history by landlocking us. Such is our monumental problem. And what solutions do we have now? Here, I am offering one very important solution to our national security crises. My theses points in this article are the following: Ethiopia must choose Israel as its close partner in economic alliance; Ethiopia must form with Israel close military partnership; Ethiopia must promote the Agew historic (Zagwe dynasty) leadership role in Ethiopia’s golden age to counter any and all divisive “ethnic federalism” based on linguistic ethnicism or religion. It is obvious that Ethiopia at this very moment is incubating parasitic mini-states in the structure of federalism of “linguistic” States implementing the divisive and ersatz ideas of Meles Zenawi and still supported by his anti-Ethiopia political organization.

Recent statements by Prof Mesfine Woldemariam critical of Ethiopian citizens, wherein using unflattering words, and another drastic recommendation by Abraha Belay (Ethiomedia) treating the TPLF as he would treat the Apartheid system of South Africa are indicators of the degree of frustration that Ethiopians are experiencing rather than being expressions of hate or disrespect. These dissenters are not expressing localized hate against any particular ethnic group but expressing deeply felt patriotic nationalism. Such views emanating from deeply felt patriotism is quite different than the types of vicious statements recently made at some regional conference by Alemneh Mekonnen, the vice president of the Amhara Killil and the Amhara National Democratic Movement (ANDM), which degrades and dehumanizes a particular community in order to gain some personal political millage by pleasing his puppet-masters.

II. Terrorism: Saudi Arabia

There is this myth that Saudi Arabia is untouchable for it is the custodian of the most important shrines of Islam. There is also the fact that it is the birth place of the Prophet Mohammed. This does not mean the current leaders and citizens of Saudi Arabia are also endowed with some degree of holiness or infallible morality in the sense of the Quranic admonishment of compassion and virtue. In fact, Saudi Arabia is the most repressive and corrupt state in the world, where the Saud Family members are running the whole country and the wealth of a nation as their private holdings with no accountability to the Citizens of “Saudi Arabia” or anyone else. The individual Saudis are no less corrupt and degenerate than their rulers. Let us not forget the monumental fact that the twenty two terrorist attackers of the Twin Towers, the Pentagon, and elsewhere were all Saudi citizens except one or two of them. Al-Qaida itself was established and financed by Saudis. Here is a perfect example where the leaders of a country and the people of a county are perfect matches. Because of the oil, Saudi Arabia is holding the world as hostage. It is a “state” beyond the reach of common decency, international law, and accountability. We must reevaluate our relationship with the Saudi Government and Saudis, and all Arab Governments and Arabs in general.

The recent atrocities of the Saudi Government and that of Saudi nationals on Ethiopian immigrants show the fragility of race and religious relationships in the Middle East. The Saudi savage crackdown on illegal immigrants, mostly aimed at Ethiopians, is the most deplorable genocidal attack on a particular group of individuals in recent memory. Saudi Arabia violated every human norm, international custom, and civilized behavior; they completely violated the many human rights Covenants, Conventions, Resolutions, and Declarations of the United Nations. Such crimes of repression are still going on even against properly documented legal immigrant Ethiopian workers in Saudi Arabia. Over a month ago, a Saudi Sharia-court condemned to death an abused/repeatedly raped Ethiopian woman for murder who neither had proper defense nor proper mental examination as to her sanity. Soon after, PM Hailemariam Desalegn while he was in Dubai (for an economic conference) made a statement that was a great disappointment to me and very many Ethiopians, for he seems to be blaming the victims (Ethiopians) of the atrocities of Arabs against them without ever mentioning the degree of abuse and violence against Ethiopians in Arab countries. No human being should be treated abusively for any alleged crime, least of all for illegal immigration.

To a number of people, the real puzzle of the brutality and savagery of most Arabs is their utter lack of empathy and compassion leaving us with the question as to what happened to them that they become degenerates and violent people. I believe it has to do with a frozen culture and arrested moral development. From the time Abū Ḥāmid Muḥammad al-Ghazālī (c. AD 1058–1111) wrote his Incoherence of the Philosophers, aiming his populist, corrosive, and degenerative writings against the greatest Islamic philosopher Abu Ali al-Husain ibn Abdallah ibn Sina (AD 980-1037), whom St Thomas Aquinas quoted in his Sumas more than his own teacher Albert the Great, Islamic moral philosophy and the pursuit of knowledge was frozen and Arabs were trapped in a time warp unable to free themselves from narrow dogmatism for almost a thousand years since. We must not forget the historic fact that no less than ten million Africans, mostly women, were victims of the Arabs’ Sahara slave trade. Half of those victims, over four million, died in route to the Middle East. By contrast, the Jews in their long journey of suffering throughout history accumulated the greatest reservoir of knowledge and wisdom in their Talmudic compilation by generations of thousands of Rabbis teachings interpreting and/or contextualizing the Torah minimizing the harshness of the code of social life by adopting and creating a world far more humane and tolerant than any the World had seen so far, except for Buddhism and Christianity. [Ethiopian Jews who were not part of such Rabbinical Talmudic reforms remained isolated by their own choice living in their own communities separating themselves from the rest of their fellow Ethiopians till the days of their migration to Israel in late 20th Century.]

III. Historic Errors of Ethiopia: Dumping Israel for Arabs

On 29 November 1947, the United Nations General Assembly voted 33 to 13, with 10 abstentions and 1 absent, in favor of the modified Partition Plan to allow/recognize Israel as an independent nation and as member of the United Nations. The first error in foreign policy by the Ethiopian Government was that Ethiopia did not vote for the independence of Israel in 1947; Ethiopia did abstain through its representative on the floor of the General Assembly.  It must have been a very difficult decision for Emperor Haile Selassie in instructing his representative at the United Nations to “abstain” on that crucial vote for the creation of Israel. Haile Selassie’s claim to the “Ethiopian Throne” was based on his own legitimacy as the “Conquering Lion of Judea” and his claim of direct decent from King Solomon of Israel. For Haile Selassie, it was a period when his Government was trying to recover lost territories, soon after the end of the Second World War.

At the United Nations there was a strong campaign against Ethiopia’s claim of its old territories that were under Italian colonial rule for about fifty years since 1890 after the death of Emperor Yohannes IV in 1889. At the United Nations, the Islamic sentiment was championed and lead by Pakistan, Egypt, and Saudi Arabia to include Eritrea in the league of Islamic States as an independent State (away from Ethiopia). Some short sighted South American countries such as Guatemala, whose representative was part of the Fact Finding Commission sent by the United Nations to Ethiopia/Eritrea, was promoting the interest of Italy as its old colonial territory, Eritrea. The great irony in case of Guatemala was the fact that it too was in dispute with the British Government at that time on the part of its territory carved out as a colony/plantation by the British called British Honduras (the present day Belize). At that gestation period of the United Nations, any concerted effort by any group against any one national interest was no little matter, but a monumental task of wits and statesmanship. Haile Selassie correctly confronted and engaged such a formidable task and successfully isolated Pakistan from Egypt and Saudi Arabia, and other Islamic States. The Ethiopian Government at the time secured, if not the full support, at least non-interference from Egypt and Saudi Arabia in its bid to incorporate its former province of the Red Sea Coastal territory (Eritrea).

The relationship of Ethiopia with Israel was timid at first, but later was built into full diplomatic relationship at an ambassadorial level. Ethiopia recognized Israel de jure on 24 October 1961; however, prior to de jure recognition, Ethiopia had maintained consular relations with Israel since 1956. Such warm relation was broken in October 1973, and was resumed in November 1989. What led to the break in diplomatic relationship was the pressure by Arab States through the OAU on the Ethiopian Government to isolate Israel after its great victories against Egypt, Jordan et cetera during the 1967 and the 1973 wars. Israel was portrayed as a racist and imperialist State by the majority of the Member States of the United Nations. Nothing is further from the truth in labeling Zionism/Israel racist, and that vote in the United Nations General Assembly (GA Res 3379 of 1975) included the votes of slave-holding states in the Middle East and the votes of some despotic leaders from underdeveloped nations who were voting with their emotion and fear of oil power of Arabs and Islamic fervor. Ethiopia abstained along with eleven other African States.

IV. Israel is Ethiopia’s great friend.

Israel is Ethiopia’s great friend, may be even her only friend. This statement is not just wishful thinking or mythical inspiration, but a conclusion I reached after careful consideration of our tumultuous history, the violent destructive history of the Arab world, and the heart wrenching and yet triumphant history of the Jewish people. Israel is a very small country with limited population. Despite its many problems and challenges facing its very survival, it has accepted and entitled over two hundred thousand Ethiopians to be citizens with all the rights and duties of citizenship of a sovereign nation. I am quite aware of the plight of Palestinians, but the fact is Jordan is the homeland of Palestinians, and the present rulers and population of Jordan are Arab occupiers from Mecca and the Negev. Hussein bin Ali (1854-1931) was the Sharif/Emir of Mecca under the Ottoman Turks. He conducted an Arab revolt working with the British and ended up as “king” starting the present Jordanian Dynasty and State. At any rate, more Palestinians were killed by Arabs than by Israelis. Given the high standard of moral and ethical principles followed in the course of the life of individual Jewish societies both in Israel and elsewhere in the World, it is my duty to point out to my fellow Ethiopians about the people and nations truly friendly to us, and there is no other country and people who will stand with us in times of our great fight for survival against Arabs than Israel and the Jewish people.

Ethiopia missed a great opportunity in 1969 to form a partnership with Israel to check Gamal Abdul Nasser’s ambition of transforming the fledgling Arab political power into a structured and focused force. Such ambition was stopped by the death of Nasser in 1970. Nevertheless, Saudi Arabia and Egypt continued their destructive campaign to destabilize and destroy Ethiopia to this day. For example, the psychopathic former Defense Deputy Minister Prince Khalid bin Sultan declared war on Ethiopia condemning the building of the Great Renaissance Dam on our Blue Nile by making a vitriolic declaration that Ethiopia is aiming to destroy Arabs even though the Dam was meant to produce hydropower to benefit not only Ethiopia but the region as a whole. At any rate the historic evidence is to the contrary that Arabs were the ones that attempted on several occasions military attacks on Ethiopia. Even Egyptian officials and well known Newspaper like the Al-Ahram had editorials, under the penmanship of the father of former Secretary General of the United Nations Boutros Boutros Gahli, supporting the Italian invasion of Ethiopia in 1935. This hate for Ethiopia has tied all Arab States together even though such Arab countries were far apart in political ideology and fight continuously among themselves.

It is a logical and also a necessary strategic alliance for the survival of both Israel and Ethiopia to form a military mutual defense pact. Between Ethiopian and Israel there must be extensive and very much focused alliance (stronger than that exists between the United States and Israel, for example) to counter any attack by Egypt and/or Saudi Arabia.

Pakistan is the “Joker” that is often overlooked by Ethiopian politicians and in recent years by Israel and the United States. However, Pakistan is the most dangerous rogue country in the world that is often overlooked by the Western powers as well as China and Russia. This means that Ethiopia must strengthen its relationship with India as a strategic counter weight to Pakistan’s role in the relationship between Ethiopia and Saudi Arabia. In this regard, Ethiopia’s relationship with China is a tricky one, for years when India supported Ethiopia, China was supportive of Pakistan. The political game now is a lot more complicated at this stage with the main hunger of China for oil and other vital natural resources and the expansion of market for its relatively cheap manufactured goods.

The Government of Israel with its far perceptive approach to regional hegemonic power evolution and its clear understanding of the ever shifting role of the military in very many Arab states, such as Egypt, Algeria, Libya, Syria, Yemen, et cetera, attempted to create a counterbalance to the hegemonic Arabaization of North Africa, East Africa and the Middle East. I believe had the United States, Turkey, Iran, and Ethiopia paid proper attention to Israel’s world view, most of the terrorism and political upheavals and the danger of nuclear proliferation would have been averted with little pain to everyone involved.

“In 1969 the Israeli government had proposed the formation of an anti- pan-Arab alliance consisting of the United States, Israel, Ethiopia, Iran and Turkey. Ethiopia rejected the proposal. In 1971, the Israeli Chief of Staff Bar Lev made a visit to Ethiopia, during which he presented proposals for deepening of Israeli-Ethiopian cooperation. The Ethiopians turned down the Israeli proposals but nevertheless, Ethiopia became internationally accused of having given concessions to Israel for setting up Israeli military bases on Ethiopian islands in the Red Sea. Ethiopia consistently denied all such accusations.” Haile Selassie was no different than any other monarch with an absolute power. His grandiose vision of himself as a world statesman was further distorted continuously being fed with the illusion of his greatness by sycophantic retainers. Those retainers were his Ministers and Commanders with important executive positions in the many Ministries and Military/security structures of the Empire. They advised him very poorly in moving him away from committed relationship with Israel to playing second fiddle to Arab interest.  Bureaucrats such as the Prime Minister Aklilu Habtewold, Foreign Ministers Ketema Yifru and Menase Haile et cetera (who were to a man well educated bureaucrats) prevailed on Haile Selassie’s weakness for fame and glory and moved Ethiopia into involvement in the OAU and Arab politics. [This particular comment and criticism is not meant in any way to diminish the singular patriotism of PM Akililu Habtewold’s great contribution during the formation of the United Nations, the Paris Treaty of 1947, or his monumental presentation in the UN General Assembly claiming Eritrea’s integration with Ethiopia.] Here I am only focusing on that single flawed foreign policy dealing with the disruption of diplomatic relations with Israel in favor of Arabs that lead us Ethiopians to all of the horrendous consequences of famine, civil disorder, revolutions, military takeover, extreme poverty, migration, overpopulation, moral deterioration, and the current prevailing situation as the most despised, hated, and abused people in our long history for the last half century.

PART II: NUCLEAR CONFRONTATIONS

V. Necessary Close Relationship with Israel

I warn my fellow Ethiopians emphatically that the enormity of the hostility of Saudi Arabs to Ethiopians has no boundary or limit. I see it as something pathological that is deeply seated in their Arab identity, more importantly in their perception of themselves as much less potent individuals than Ethiopians. I suggest that you all read Richard Burton’s translation of the “The Thousand and One Nights (The Arabian Nights)” and consider why all the hostility to “black men” and women is deeply embedded in their culture. The continuous super achievement of Ethiopian athletes in stamina and endurance out performing everyone in the world does not help much to dissuade such biased fear. As an example I give you the 2014 Dubai Marathon, the richest and most famous athletic event in the World, where Ethiopian athletes, both men and women, had clean sweep and breaking world records and winning all the way from number one to nine. That is only one incident among numerous wins for years at different places and Ethiopians earning great admiration the world over.

Taking into account the psychological makeup of Arabs and their arrested moral development, I believe that the first nuclear war between nations is going to be launched by Saudi Arabia supported by Egypt and Pakistan dropping some nuclear devise or bomb on Ethiopia. Already the Saudi Government has stated that they will buy nuclear bombs from Pakistan. Numerous Arab newspapers have been reporting and commenting since 2011 about Saudi Arabia’s nuclear weapon ambition, and has already established a secretive structure called Royal Saudi Strategic Missile Force for that purpose. The Israel Times has gone as far as claiming that the Saudis have already bought Nuke heads. The Saudi Government used the recent accord between the West and Iran about limiting nuclear development by Iran as an opportunity to vent its hate for peaceful resolution of conflicts by stating that it will acquire nuclear weapon from Pakistan. I take such pronouncements seriously and as a direct threat to Ethiopia.

There is no peaceful friendly solution to the ever growing hostilities of Arabs against Ethiopia. They have surrounded us with their supporters on all sides of our diminished borders, the result of a collaborator leader now deceased (Meles Zenawi) and his apocryphal party. The most dangerous of such hostile governments suffocating us is the insanely anti-Ethiopian government of “Eritrea” that is openly or covertly acting as a surrogate attack dog for Arabs. It is very possible such future attacks by weapons of mass destruction may be launched from that region against Ethiopia. We must prepare for such eventual showdown by focusing all of our resources on military industrial grand program for the manufacture of advance weapon and the training and deployment of highly trained military personnel to counter such real threats. Right now, Ethiopia is capable of producing chemical and “dirty-bombs,” a form of low grade nuclear bomb, which would sufficiently deter any jihadist fanatic Arab from attacking us. But before we start such monumental journey, we must first clean house by removing individuals who are placed in high and critical positions within the Ethiopian government and Ethiopian political organizations with obvious divided loyalty between the two states.

We must ignore the idiotic and insulting idea currently circulating about restarting some kind of “2000 Algiers II” type lopsided relationship between “Eritrea” and Ethiopia, which is promoted by two former United States diplomats. Moreover, Ethiopia must never accept the decision of a corrupt Boundary Commission that is being endorsed by such former United States officials. It is even more infuriating to me when I hear some Ethiopian jurists and politicians talking about both the Algiers 2000 Agreement and the decision of the Boundary Commission as something sacrosanct and irreversible. Such perception shows lack of understanding how international law, politics, and power hegemony interface in order to safeguard our national vital interest. Mind you that the Arbitration Commission was established to render a pre-determined result by resurrecting long dead treaties by the 2000 Algiers Agreement. Here is a lesson how creative and talented lawyers and crafty politicians can even defy gravity to revive long dead instruments to life and achieve some impossibility through sheer sophistry and manipulation. So, do not tell me that corrupt Arbitration Commission cannot be disqualified and its decision dumped as garbage.

Ethiopia must look after its own national security interest first and foremost. No Ethiopian Government should ever be dictated to by the United States or anyone else when the issue is of national survival. For the next twenty years, as long as the Leaders of the EPLF have not died out (their natural lives), there should not be any normalization or reconciliation between Ethiopia and “Eritrea” the State, although individuals from Akale-Guzai, Kunama, Hamassen, Serie, et cetera who migrated to Ethiopia should be properly integrated into the Ethiopian society as citizens once they renounce their “Eritrean” citizenship.

The fact is that not only the Eritrean leaders but also the general population seem to have a corrupted view of Ethiopian history and people and need some enlightenment on the meaning of “sovereign people” as opposed to being subjects of colonial power. The glory is not in the institution of colonialism but in the liberation from both the physical oppression and the binding of colonial subject mentality of disrespecting and abusing those that are considered outsiders. In his recently published book, the philosopher Teodros Kiros, in a heart wrenching short story titled “Agame,” narrates how as teenagers growing up in Asmara they used to hurl rocks and dehumanizing insults at people (Agames) who were engaged in collecting cactus fruits/seeds to sell earning a meager income; he also narrates about the savagery and brutality of the police in Asmara in arresting and torturing such people for minor infractions or for no cause at all. [Teodros Kiros, Hirute and Hailu and Other Short Stories, Red Sea Press (2014)]

In building Ethiopia’s national security structure and in securing its territorial integrity, the first step in this course of action is to withdraw completely from the Partial Nuclear Test Ban Treaty of 1963, where Ethiopia has only signed (August 23, 1963) but not ratified that Treaty.  Saudi Arabia has not signed or ratified the Treaty, whereas Egypt signed the Treaty on August 8, 1963, and ratified the Treaty as part of the United Arab Republic on January 10, 1964.

The United States with all its trillions of debt to the Arabs is the least reliable or stable country as a friend for Ethiopia. It is also a nation that would not last for long as world-leader with its wasteful ways and saber-rattling at every political crisis.  When I think of the United States, the words of Abraham Maslow keep coming to my mind: “If you only have a hammer, you tend to see every problem as a nail.” The only country that has both the moral content and the courage to stay a committed course based on principles and friendship is the State of Israel.  We need to build our relationship with Israel on the following solid grounds: 1) Enter an extensive military mutual defense agreement allowing Israel to base its strategic air force in Ethiopia; 2) Establish a joint military industrial complex for manufacture of advance weapon systems; 3) Reestablish Ethiopia’s military academy including its air force, territorial army, rapid deployment forces et cetera with Israel model and training instructors and joint commanders. As an incentive Ethiopia must adopt favorable economic policy fully integrating Israel’s participation in the Ethiopian economy.

Ethiopia historically and currently is a predominantly Christian country with a minority of about thirty percent Islamists. This fact is not to change any time soon. If at all Christianity is in great revival. I am simply stating what I observed happening in Ethiopia from all kinds of sources. I did not see any kind of great concern from the Ethiopian Muslim population on the recent atrocities against Ethiopian immigrants in Saudi Arabia except for sporadic and far in between statements by Muslim leaders where the statements more or less were pulled out of them by persistent reporters.. The Saudi Government and population did not distinguish between Christian Ethiopians or Muslim Ethiopians; their fury was just against Ethiopians. Having a powerful and judicious friend such as Israel is a must for Ethiopia’s survival and the survival of its population Christians and Muslims alike. The only question is to determine the modality of that close relationship between Ethiopia and Israel.

VI. Political Alliance and Ethiopian Citizenship to Israelis

Whether it is in legends or recorded history, there is no denying the long standing relationship between Ethiopia and the Jewish people. In fact, I have met knowledgeable individuals who think of Ethiopia as a kingdom of transplanted Hebrews who continued the Judaic kingdom after its destruction by Nebuchadnezzar in 597 BC. Even though most of these ancient connections might be cleverly constructed stories to create some form of legitimacy to particular Ethiopian “royal” family members to continue the control of state power, it did serve that purpose quite successfully. Personally I do believe that most Ethiopian people have the same root as do all of the Ethiopian Dynasties. They are fundamentally Agew, the original people of Ethiopia that have nothing to do either with Jews or Arabs except in an instrumentalist role in the consolidation of local political power and directing/controlling the marches of histories.

I am fully aware of the history of the Ethiopian Bete Israel or Ethiopian Jews. I do not agree with the propaganda type fund raising condemnation of past Ethiopian Monarchs (to the time of Mengistu) for especially harsh treatment of Ethiopian Jews. What is missing in such accusative and misleading use of history for fund raising effort by some Jewish organizations is some balanced full exposure of the historic events that led to such repressive actions by past Ethiopian monarchs. In short of such full disclosure, selective accusations are very misleading and at times patently wrong. The collaborative role played by Ethiopian Jews during the twelve year of Gragn Mohammed’s destruction of Ethiopia is a well-documented fact. Even during the Italian occupation, except for very few Ethiopian Jews, a number of Ethiopian Jews were collaborators even worse than some Christian Ethiopians. There is enough brutality and betrayal in our past relationships between Ethiopian Jews and Ethiopian Christians to make the rounds of both communities. We all must see such past history in its right perspective—the demand of history contemporaneous with the incidents of history.

For the people of Ethiopia, the most important question is the imperative of living within our Ethiopian reality and history. It is in this singular context that Ethiopians should seek alliance with nations that would insure mutually advantageous setup to guarantee their individual survival in a sea of extremely hostile and morally depraved leaders of the Middle East Arab States. There is not a single Arab nation in the Middle East whose government and population is tolerant of anyone with different religion or ethnic background especially if one is non-Caucasian. Whether it is in Syria, Lebanon, Saudi Arabia, Libya, Yemen or Egypt whenever there is some social upheaval, the first victims in all such Arab States are Christians and people who are non-Caucasians. It will be insanity by anyone to expect justice or decent treatment from any Arab in the Middle East. Look what is going on in Egypt, Syria, Iraq, and soon the brutality and savagery of murder and destruction would engulf Lebanon, Yemen and the other Gulf States. No one should expect any humanity from Arabs and their despotic rulers who show no mercy to children, women, elderly men, and young men who are even their own fellow Muslims. I strongly advise that we Ethiopians better confront headlong this grim reality and take the necessary safeguard to insure our future survival. In order to insure such close connection with Israel, Ethiopia should grant all Ethiopia Jews who migrated to Israel full Ethiopian Citizenship. Such Ethiopian Citizenship should also be extended to any Israeli Citizen, who did not have Ethiopian ancestry, the privilege to apply for Ethiopian Citizenship. As Citizens of Ethiopia such Israelis would have all the Constitutional rights and duties of any Ethiopian. There would be open-border policy for any Israeli to settle in Ethiopia and be an integral part of the Ethiopian society. And those Israeli Citizens with Ethiopian Citizenship have the right to participation fully in the political, economic and social life of Ethiopia.

VII. Conclusion: What Ethiopia Offers to Israel

There will never be lasting peace in the Middle East as long as there are fanatical Arabs who have no tolerance for other people and other religions being practiced in the Middle East. I am not suggesting something new or unusual writing about mutual support system for Ethiopia and Israel only that I am suggesting urgency and much heightened magnitude. It is imperative that both Ethiopians and Israelis realize the gravity of the problem with Arabs that we both face, which emboldened me to suggest much more intense and far deeper relationship between these two countries than the types of relationship that is simply convenient or temporal. There are clear advantages in the power-balancing consequences of having such relationship between Israel and Ethiopia against frantically prepared armed enemies. Of course, in such situations, the alliance is a defensive one. I would be more reassured if the foreign policy of Ethiopia is proactive than being reactive. Right now it seems that it is geared to ensuring economic development and the preservation of the nefarious legacy of Meles Zenawi.

Israel is confined to a tiny territory surrounded by extremely hostile Arab neighbors. Ethiopia by contrast to Israel has vast territory, but like Israel Ethiopia shares the hostility of Arabs even more so. It is a natural order of defense that Ethiopia and Israel develop a common defense strategy. The resources of Ethiopia and the technical know-how of Israel could turn up a great mutual military, economic, and social survival strategy better than any modality of relationship anywhere else.

I anticipate such close relationship with Israel would trigger Saudi Arabia to start another round of its heavy-handed attack on Ethiopia. It will first attempt an economic strangle of Ethiopia  by mobilizing the neighbors of Ethiopia to cut of access to their air space and access to their port facilities in states such as Djibouti, Somaliland, Somalia, Sudan, even Kenya.  It will also target the Ethiopian Airlines, and incrementally attack Ethiopia’s foreign commodities trade, such as coffee, hide et cetera that Ethiopia exports. Here is where a leader with nerve of steel is most helpful to see us through such challenges. Our loyalty to our Djibouti and Somali friends must be nurtured and enhanced. An Ethiopian leader with a sense of Ethiopian history will not panic, but shall mobilize all the great Ethiopian talents around the nation and engage the Ethiopian military to encounter all political and economic challenges facing Ethiopia. We must not forget the fact that history is on our side. We must have done something right to be able to exist as a free people and sovereign nation for all the period of human history when almost all the great civilizations (nineteen out of twenty one) had perished.

I offer the above solutions as both short term and long term relationships between Israel and Ethiopia not because I have some close Jewish friends or some special relations with the State of Israel—but that such close relationship is mutually beneficial to both Israel and Ethiopia. My personal experience with some Jews is negative and caustic, for the individuals who hurt me personally the most in my life were a couple of Jews, who used their Jewish ethnicity in covering their mediocrty in ganging up against me for I dare challenge a discourse where one had denied the Armenian genocide and advocated also a blanket forgiveness of general vindication (forgiveness) of the economic exploitations of the likes of DeBeers distorting the reason and essence of the establishment of the Truth and Reconciliation Commission of South Africa. The other individual was totally out of control terrorizing faculty and staff for no professional reason, and in my case, just cheap vindictiveness because of my schooling in some of the finest Universities in the United States. However, one must look at the ethos of a people in light of their particular history. Thus, Jews as a people (group) do have distinct characteristics from the individual member of the group that I had fallout with. In my opinion, the Jewish People in the main are the most moral and principled people with whom I can reason and from whom I can expect due consideration and justice. The Jewish people are not homogenous and fanatical coming in a single mold as Arabs tend to be. Ask yourselves whether it is possible to reason with any Saudi leader, or Syrian leader et cetera on any political or religious issues.

To a great extent, individuals cannot easily outrun their past or culture, and as a result we often hear of history repeating itself. Individual Saudis are caught in their own historic loop that is impossible for them to break through. The unholy alliance that started out between former primitive marauding Bedouin Arab tribal men (now living in unimaginable luxury wallowing in petrodollar) with Wahhabis extremism as an ideology would grind down whatever imported material setup money bought for them for years. Saudi Arabians in particular have a long way to go before they can be seen socially responsible enough to be accepted in the community of civilized communities of the World. I hope, long before that, the Red Dragon from the depth of our Earth will rise and devour the Black Dragon coiled under the sands of Saudi Arabia.

In the mean time, we Ethiopians must find ways to deflect/avert catastrophic attacks on Ethiopia from Arabs and their allies. Israel is both a logical and necessary friend for Ethiopia. It is reliable, ethical, advanced, and committed to defending itself against hostile neighbors who are equally if not more hostile to Ethiopia too. It seems to me that we Ethiopians do not have much of a choice in the type of predicament we are put into by myopic leaders of the TPLF who are solely responsible for landlocking us. The tragedy of Ethiopia as victim of a handful of anti-Ethiopia corrupt leaders will continue as long as TPLF’s old-guards and their counterparts from the EPRDF are still in power causing friction and dissonance among Ethiopians. I do not blame the mediocrity of the opposition in the Diaspora, for they reflect the state of our pretentious modernist cultural and misguided social development. We are mostly the chaffs leftover after Meles Zenawi had effectively decimated all those who could have led Ethiopia very well. The task for us, as a united Ethiopian people, is how best we can save our nation from devastating Arab Jihad and disintegration, for without Ethiopia there cannot be peace, security, and prosperity for any of us. Ω

Tecola W. Hagos

February 18, 2014, Washington DC © Phineaus St Claire 2014

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Sourced  here

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February 21 2014

Shirts bearing the name of U.S. President Barack Obama are a common sight in Corbetti, a village located in Ethiopia’s Rift Valley.       Jacey Fortin

Jacey Fortin

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Fortin is the IBTimes Africa Correspondent based in Addis Ababa, Ethiopia. She joined IBT in February of 2012, and has previously worked as an editor and reporter for…      Continue Reading

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Ethiopian  Planned Second Dam Might Inflame Nile Water Controversy with Egypt

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According to the Amharic newspaper Addis Admass source, the Ethiopian government has completed plans for a second major Dam on the Nile river while disputes with Egypt has already grown over the first GERD dam.

An inside government source confirmed to the newspaper that Ethiopia wants to build another dam as well as initiate an irrigation project on the Nile to feed its growing population. Since over 85% of the Nile waters flowing to Egypt originate from Ethiopia, cairo leaders have previously blocked international funding for Ethiopian dam projects since the 1970s. Ethiopia has so far used only 2% of its own Nile water sources while Egypt has dominated the water for decades. But the current Ethiopian ruling party has managed to improve its relations with the West, Sudan and China to its favor. Half a dozen African nations and Sudan have supported the Ethiopian dam. With over 90 million people, Ethiopia has become the second largest country in Africa and its leaders seek to end foreign aid dependency.

The inside government source claimed that executive members of the EPRDF ruling party has been angered by the hostile comments from the Cairo government since January this year, which they see as racism because Ethiopia was never consulted during the construction of Aswan Dam in Egypt. The executive has put pressure on the young Ethiopian PM to take a stronger stance. According to the source, Ethiopian military officials have also detected increased Egyptian agitation for rebel groups in horn of Africa, including on Ogaden rebels and Somalia.

Some leftist members of the Ethiopian ruling party have blamed the United States foreign policy for tilting the balance of power in Africa by continuing to give F-16 jets and billions in military aid to Egypt. They attribute these western policies for emboldening Cairo to bully Nile Basin African countries.

http://somalilandsun.com/index.php/regional/5066-ethiopian-planned-second-dam-might-inflame-nile-water-controversy-with-egypt

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Turkish firm plans ‘major business event’ in Ethiopia next year

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“Our company is planning to bring 50 private companies from all business sectors [to Ethiopia],” project director Yusuf Kirdar told Anadolu Agency on Thursday.

The Meridyen International Fair Organization, a major Turkish event organizer, is planning to hold a “major business event” in Addis Ababa in 2015.

“Our company is planning to bring 50 private companies from all business sectors [to Ethiopia],” project director Yusuf Kirdar told Anadolu Agency on Thursday.

“The trade fair that is being planned is exclusively Turkish,” Kirdar said on the sidelines of the 18th Addis Chamber International Trade Fair (ACITF), which kicked off Thursday.

Kirdar indicated that his company had facilitated the participation of several Turkish firms in last year’s event.

“We’ve brought together 21 companies from various sectors, ranging from manufacturers to exporters, for this trade fair,” he said.

According to Kirdar, Turkish companies were entering the Ethiopian market “in droves.”

“We’re doing good business here,” he asserted.

Headquartered in Sisli, Turkey, the company is currently holding exhibitions in several countries.

At the opening of the ACITF on Thursday, Ethiopian State Minister for Industry Haile Siraj said the annual event was “a platform for companies to share experiences with their foreign counterparts and initiate business linkages and investment through joint-venture arrangements.”

First launched in 1995, this year’s ACITF will include 188 participant companies from 17 countries.

http://www.worldbulletin.net/turkey/129336/5802-new-companies-established-in-turkey-last-month

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World Bank Supports Road Improvements and Maintenance in Ethiopia

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Computer rendering of Addis Ababa – Nazret Expressway Road

WASHINGTON – The World Bank’s Board of Executive Directors today approved funds to help Ethiopia upgrade the country’s road system, strengthen road maintenance and reduce travel time along inter-regional corridors.

The Road Sector Support Project is supported by a US$320 million IDA credit* as part of the $US385 million total project cost. The government of Ethiopia will contribute $US65 million. The project aligns with Ethiopia’s Growth and Transformation Plan (GTP) and supports economic expansion by improving the quality of roads serving areas producing exportable agricultural products. By helping secure access to all-weather roads, the project will also help Ethiopia achieve its goal of halving the proportion of the population living below the poverty line.

“Ethiopia has experienced strong economic growth and has achieved substantial progress on social and human development over the past decade,” said Guang Zhe Chen, World Bank Country Director for Ethiopia. “Upgrading and maintaining the country’s road sector is an important part of our work in Ethiopia. Today’s project will help to enhance trade, create new markets, and provide improved access to education, medical services, and food security to the country’s poor.”

The Government of Ethiopia formulated the first phase of the Road Sector Development Program (RSDP) in 1997. Since then, the size of the road network has increased from 26,550 kilometers to 85,966 km, and the roads operating in good condition has risen from 20 percent to 70 percent. Today’s funds will build on these accomplishments and will be used to upgrade about 258 km of the Nekempte – Bure road, which provides an important link between the Oromia and Amhara regions. The upgraded road will help to reduce travel time and facilitate the marketing of wheat, vegetables and other agriculture crops.

The project also aims to enhance Ethiopia’s road asset management practices by supporting the maintenance of selected roads covering about 200 km; the Government will fund a further 200 km of road under a parallel financing. The funds will also be used to provide technical assistance to strengthen road asset management capacity, and prepare a road asset management strategy.

“Today’s project will benefit women and children by providing them with improved access, access to much needed education and medical facilities, including pre and post-natal care,” said Tesfamichael Nahusenay Mitiku, World Bank Task Team Leader. “Improved road conditions will also reduce the time that women spend transporting products to market, and will bring new opportunities for employment within small-scale, road-side commercial operations.”

At the center of the new operation is the adoption of an Output and Performance Based Road Contracting (OPRC). The road asset management system is expected to reduce the whole-life cost of road infrastructure, provide increased budget certainty for investment and recurrent expenditures, and improve the quality and sustainability of the network for road users.

http://nazret.com/blog/index.php/2014/02/20/world-bank-supports-road-improvements

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New grants support further geothermal development in East Africa

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21/02/2014

New agreements will be signed next month for geothermal development projects in Kenya and Ethiopia, according to the African Union’s infrastructure and energy commissioner.
Commissioner Elham Ibrahim said five grants have already been awarded under the Geothermal Risk Mitigation Facility (GRMF) for East Africa, which encourages public and private sector support for geothermal development.
Ibrahim was speaking during this month’s ministerial session of the second high level meeting of the Africa-EU Energy Partnership (AEEP) in Addis Ababa.

GRMF grants amounting to $22M have already been awarded to five projects in Kenya and Ethiopia, according to Out-Law.com.
In 2012, GRMF said it had about $62m available for cost share grants. A ‘developer manual’ provides detailed information about the facility, including how to apply for funding.
Meanwhile, US companies are also being encouraged to enter East Africa’s rapidly-expanding geothermal market. In 2012, the US Agency for International Development and the Geothermal Energy Association (GEA) launched the US-East Africa Geothermal Partnership, which is implemented by the US Energy Association.
In October 2013 Reykjavik Geothermal, whose Icelandic geothermal expertise is backed by US investors, signed a deal with Ethiopia to build a 1000 MW geothermal power plant, Africa’s largest, in the volcanically-active Rift Valley. The company said that, when complete, the project will be Ethiopia’s biggest foreign direct investment, run by its first privately-owned utility.

http://www.powerengineeringint.com/articles/2014/02/new-grants-support-further-geothermal-development-in-east-africa.html

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More than 50 Italian companies at the Addis Chamber International Trade Fair

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More than 50 Italian companies will be participating to the Addis Chamber International Trade Fair (ACITF), to be held at Addis Ababa Exhibition Center from 20 to 26 February 2014.
According to a press release the Italian Embassy in Addis sent to WIC, the Italian Trade Agency will coordinate Italian companies’ participation to the Fair in an “Italian Pavilion” and the delegation will present their products, technologies and services in many sectors such as machinery, construction, engineering, power and energy generators, water treatment, agroindustry.
The purpose of this business mission, which comes after a number of high-level talks on economic cooperation between Italy and Ethiopia, is to further explore trade and investment opportunities offered in Ethiopia, the release emphasised.
According to the press release, the Italian companies will directly engage with Ethiopian business counterparts: “B-to-B” meetings will be organized during the Fair.
The Italian companies will have the opportunity to meet Ethiopian institutional and business counterparts at a networking event called “Italian Night” that will be organized in the evening of Friday 21 February at Hilton Hotel.
Sisay Gemechu, Ethiopian State Minister of Industry, and Elias Geneti, President of the Addis Chamber of Commerce, have confirmed their presence and will address welcoming messages and presentations on business opportunities in Ethiopia to the Italian companies, it stated.

http://www.waltainfo.com/index.php/explore/12417-more-than-50-italian-companies-at-the-addis-chamber-international-trade-fair

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Nation to nurture over 5 billion seedlings

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The Ministry of Agriculture (MoA) said that 5.1 billion various seedlings will be nurtured this Ethiopian budget year.

Public Relations Head of MoA, Tarekegn Tsige, told WIC that the seedlings to be distributed for regional state will have a significant contribution towards improving soil fertility.

In a related development, there is a plan to sieve the porous soil found on over 1.4 million hectares of land and develop it, he added.

According to Tarekegn, soil and water conservation works were carried out on 13.7 million hectares of land in the first three years of the Growth and Transformation Plan (GTP) period.

http://www.waltainfo.com/index.php/explore/12400-nation-to-nurture-over-5-bln-seedlings-

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Administration to build 50,000 condos

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A cornerstone was laid yesterday for 50,000 condominium houses to be built under the 20/80 housing program at Koye-Feche site, Akaki kaliti sub city.

Mayor of Addis Ababa City Administration, Diriba Kuma, laid the cornerstone for the condos to be built on 732 hectares of land, next to Tirunesh Beijing Hospital.

The administration has allocated 5.35 billion birr for the construction of the houses which is expected to create job opportunities for 45,000 unemployed compatriots.

The houses will benefit more than 200, 000 households when completed in 2008 E.C.

http://www.waltainfo.com/index.php/editors-pick/12390-administration-to-build-50000-condos-

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Council of ministers evaluates past three years’ GTP performance; passes various decisions

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The Council of Ministers of Ethiopian Federal Democratic Republic, in its 63rd session, evaluated past three years’ performance of the Growth and Transformation Plan and passed various decisions.

The Council has also endorsed the proposal to establish Policy Study and Research Center.

According to a press release the Council sent to WIC, the evaluation has basically focused on economic development, infrastructure, social development, democracy and good governance.

The gross domestic growth rate reached 9.7 per cent in the past fiscal year; indicating the contribution of the three major economic sectors moving towards the intended direction.

The contribution of agriculture, industry and service are 7.1, 18.5 and 9.9 per cent respectively, the press stated.
Due to the efforts made to bring changes in economic structure, the contribution of agriculture is reduced to 42.9 per cent in 2013 from 46.5 three years before.

The council also ensured that the industry and the service sectors are raised to 12.4 and 45.2 respectively from 10.3 and 44.1 in 2010; indicating the industry showing a gap of 2.9 from what was planned to attain.

The Council of Ministers decided to exert considerable efforts to fulfill the gap in the contribution of the industry this fiscal year, according to the press release.

It also stated that the registered economic growth is by far better than the 5 per cent economic growth rate that Sub Saharan Countries have registered, the press release pin pointed, adding the growth happened amid global market challenges.

The Council also evaluated the number of people living in poverty reduced to 26 per cent in 2013 from  29.5 per cent three years before, moving in a right path to reduce it to 22.2 per cent in 2015.

National saving has also risen to 17.7 per cent in 2013 from 5.2 per cent three years before, showing a marvelous achievement beyond the 15 per cent planned to attain in the GTP period.

Road infrastructure also rose to 58, 338 kilometers in 2013 from 48, 800 kilometers in 2010, the press indicated.

In social services, the number of Elementary Schools (Grades 1-8) reached 34, 495 in 2013 from 26, 951 and the number of students reached 17.4 million from 15.8 million in 2010.

The number of Secondary Schools also reached 1,912 from 1,335 in the same period.

The press release also indicated that health centers reached 3, 100 from 2, 142 three years ago.

http://www.waltainfo.com/index.php/editors-pick/12421-council-of-ministers-evaluates-past-three-years-gtp-performance-passes-various-decisions

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Over 3,000 cooperatives established in six months

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Some 3,457 cooperatives were established in the first half of this Ethiopian budget year, according to the Federal Cooperative Agency (FCA).

With over 334, 840 members, the newly established cooperatives were able to generate over 94.3 million birr income, Public Relations Directorate Director with the Agency, Yigzaw Dagne, told WIC. Some 8 unions which made 11.6 million birr income were also created in the first six months of the budget year, according to the director.  In addition to supplying their products to local markets, the cooperatives are exporting various products to overseas markets, thereby generating foreign exchanges for the nation, he said. According to Yigzaw, they earned over 31.2 million US dollars in revenue in the reported period by exporting coffee and sesame to various countries.

the cooperatives and unions have saved over 54.2 million birr as well as distributed over 62.8 million birr to their members, he added.

With a view to alleviating storage shortage of the cooperatives and unions, four warehouses were built in Amhara and Tigray regional states at a cost of over 37.6 million birr.  Efforts are also underway to build seven additional warehouses in various parts of the nation, he added.

Short-term trainings on service provision, accounting and marketing were also given for 944 heads and employees of unions and cooperatives, he indicated.  The agency has set a target of raising the number of cooperatives at the end of GTP period to 59, 401 from 53, 982 now, while the number of unions to 546 from 309 now.

http://www.waltainfo.com/index.php/explore/12423-over-3000-cooperatives-established-in-six-months

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New Age discovers oil, gas in Elkuran-3

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The British Oil company prospecting for oil in the Ogaden basin, New Age, has noted oil and gas flow in its appraisal well Elkuran-3.

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Whipping up Expectations

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