15 February 2015 News Briefs (UPDATED)

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Allana Danakhil Project Due Diligence Meeting held in Chonfar

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Ethiopia: Long Term plan to be the leading Nation in light Manufacturing

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Addis Ababa February 15, 2015 – Public Diplomacy and Regional Future Infrastructure Investment News.

Ethiopia and Swedish agro technological Processing Workshop was held successfully at Sheraton Addis Ababa. The Regional Future Infrastructure Investment workshop was organized by four renowned Swedish Companies in cooperation with Ministry of Foreign Affairs and the Embassy of Sweden. Dr Mebrahtu Meles State Minister of Industry and Jan Sadek , Ambassador of the Republic of Sweden to Ethiopia made an opening speech both stating the long standing Ethio-Swedish diplomatic relations and appreciating the fast economic growth Ethiopia is registering.

Dr. Mebrahtu stated Ethiopia’s long term plan to be one of the leading nations in light manufacturing. He noted that the long standing cooperation that exists between the two countries is expanding to include areas of trade and investment. He cited the recent engagement of H&M and Erickson in Ethiopia as example to the increasing interest of Swedish companies in Ethiopia.

Appreciating the fact that Swedish investors are currently picking Ethiopia as their investment destination, Jan Sadek recalled Swedish involvement during the Imperial time in primary education and noted more than 6000 schools were built throughout Ethiopia by the Swedish development cooperation. He also appreciated the stride that Ethiopia is making in registering double digit economic growth.

He expressed his hope that the workshop would create conducive environment for mutual learning in agro-processing .During the deliberation Swedish companies gave an experience sharing presentation. De Laval shared its over 125 years of innovation and experience in dairy business, supporting dairy farmers and managing their farms while Tetra Pak world’s leading food processing and packaging solutions company and Alfa Laval another leading global provider of specialized products and engineering solutions through key technologies of heat transfer, separation and fluid handling explained their company best practices. VIP Company which has already made investment in Ethiopia in renewable energy and afforestation shared to the participants about Paulownia Forest Project, a fast growing multipurpose tree, a tree that gives everything from household green charcoal to ethanol, biomass honey and hardwood timber, which are key for development of an agro-industry complex.

Swedish companies such as Volvo, Scania and Atlas Copco attended the workshop through their local agents and retailers. On the Ethiopian side, Ethiopian Sugar Corporation, Ethiopian Investment Commission, Food, Beverage and Pharmaceuticals Industry Development Institute and Meat and Dairy Technology Development Institute presented to the Swedish side about agro-processing opportunities and current development level of the sector in Ethiopia.

http://www.geeskaafrika.com/8067/8067/

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Ethiopia, Djibouti to establish committee for speedy movement of commodities

 Addis Ababa: February 15, 2015 – Ethiopia and Djibouti agreed to establish a joint committee to enhance port and customs service so as to quicken transportation of commodities to Ethiopia.

http://www.fanabc.com/english/index.php/news/item/2236-ethiopia,-djibouti-to-establish-committee-for-speedy-movement-of-commodities

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Top Seven Cities for Doing Business in Africa

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VENTURES AFRICA – It’s pretty hard to miss the buzz that has been on about the African economy, with large markets and a huge consumer market-base, Africa has become one of major hub of business in the world. The African continent is deemed the world’s fastest growing with 5 to 6 percent growth rate for the several years. With a steadily growing population (it is predicted that a quarter of the population will be African in 2050), this renewed attraction to Africa is rather well-needed as it creates a two-way chain to both Africa and the companies as they are able to take advantage of the large markets available in Africa to boost their goals.

A research by hotel booking platform Jovago, revealed these top seven business destinations. They particularly stand out in their regions in terms of their strategic locations, economic sectors and peculiar cultures. Without doubt, Africa is home to great countries with abounding opportunities for business to flourish.

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Lagos

Nigeria’s GDP has been growing since 2012 and approaching $594.3 in 2014 and is also predicted to increase by 7.3 percent in 2015 making it the first economy in Africa. The former capital of the most populous country in Africa, Lagos is also noted to be a magnet of foreigners looking to establish business in Nigeria. The strategic location and sheer size of the population makes the hustle and bustle even more animated. If you looking for an African city to invest in or are you interested in being a part an African business revolution, well, Lagos is the place to get started. Lagos is also noted for its business centres and luxury hotels, Victoria Island which is home to a number of the Nigerian tycoons.

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Abidjan

The economic capital of Ivory Coast is one of the largest French-speaking city in Africa and has experienced remarkable growth after a decade of political instability. The improvement of the Abidjan harbour signifies a positive growth in their economy. Abidjan is also re-hosts the
African Development Bank (AfDB) Group. It has had significant economic growth as it now ranks sixth of the twenty-three African stock exchanges and the construction of the “Third Bridge”, the Henri Konan marks a significant innovation in supporting its growing population. Ivory Coast has managed to maintain a steady increase in its GDP per capita it is also predicted to experience a 7.9 percent increase in 2015.

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Casablanca

The economic capital of Morocco is quite notable in African business now. It became the first African investor in Central and West Africa. Technical cooperation agreements, cultural as well as several trade agreements have helped to intensify trade and investment to confer on Morocco’s position second transmitter African FDI in Africa after South Africa. The strategies used by large Moroccan economic operators, such as Youssoufia Phosphates, Attijariwafabank the bank, the airline – Royal Air Morocco (RAM) etc. attest to the real and significant breakthrough Moroccan companies in African markets.

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Johannesburg

S.A’s Johannesburg bustles with its relatively healthy financial stance and the government’s activeness in reducing the occurrence of crime and the improvement of infrastructures. It is as though the city is getting ready for a wave of international investments. Jo’burg as fondly called is notable as the traditional place for business in Southern Africa and also for the strong industry and economic growth.

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Nairobi

Kenya’s largest city and capital stays relevant not only because of it being an amazing tourist destination but also for its business acumen. With a GDP of $62.7 in 2014 which is predicted to increase by 6.2% in 2015, Kenya stands out in East Africa. Nairobi is home to a myriad of both local and international businesses. The Nairobi Stock Exchange also boasts to be one of the largest in Africa which is pretty impressive and their Commercial Bank, the biggest within the region. Nairobi is also home to a number of African headquarters of international banks, companies – Pfizer, The World Bank and The Sage Group amongst others. The Kenyan Airways also play a key role in making the city an African hub.

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Addis Ababa

This strategically located largest and capital city of Ethiopia – often regarded as “the political capital of Africa”, it hosts the Africa Union. This city also sets the pace for its African counterparts as it launched its newly developed railway depicting its advancement in infrastructural development. Last year, a GDP of $49.9 was registered and this is predicted to rise by 8.5% in this year with strong business links with China. Ethiopia is the only African country on the People’s Choice list of Top 10 Best Tourist Destination for 2015 which reflects its business inclination.

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Kampala

With a population of over 2 million inhabitants, Kampala is the largest city in Uganda which is referred to “pearl of Africa”. The discovery of oil in 2006 ushered in a rise in investments, Uganda’s tourism sector is also worthy of note as it has witnessed an influx of travellers from around the world and became a major source of revenue between 2013 and 2015. It has had a steady rise in its GDP since 2012 which is predicted to increase by 6.3% by 2015 at $26.9.

Getting back to the question, what these cities have in common, as you must have noticed, their size and strategic location makes them quite peculiar and attractive for investors. Their population, another key element not only provides investors with the huge market they seek but also with manpower at a much more affordable rate. The cities are easily in the top 7 business destinations for several reasons other than these which are specific to each of them. Jovago.com is present in all these 7 destinations with a large choice of business hotels to help you make your travel even easier than you think possible.

*** GDP is estimated in billions

http://www.ventures-africa.com/2015/02/top-seven-cities-for-doing-business-in-africa/

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Czech firm builds brewery in Ethiopia

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- New energy-efficient facility will have a Czech brewmaster

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The firm ZVU Potez, a Czech-based supplier of technology for the chemical, food and energy industries, has completed the implementation of a brewery in Maychew, Ethiopia. The contract is worth €27.6 million.
The modern facility for Raya Breweries will be inaugurated Feb. 15 with the participation of senior representatives of the Czech Republic.

The brewery has a capacity of 600,000 hectoliters per year. The project included the delivery of complete technology for the brewery plant as well as a boiler room, transformer stations, water treatment and sewage treatment plants, and a diesel generator serving as a reserve energy source.

The overall implementation lasted 24 months from the signing of the contract. “A first phase included the training of local personnel, and other phases will continue after the opening of the brewery,” Vladimir Čepelík, CEO ZVU Potez, said in a press release.

“We will acquaint them with our modern facilities and also we also offered them our specialist for further consultation.”

The brewery in the northern Ethiopian town of Maychew, approximately 650 km from the capital Addis Ababa, will create approximately 150 to 200 new jobs.

Czech master brewer Ladislav Pařízek will remain there to oversee production.

See also:  http://www.thereporterethiopia.com/index.php/news-headlines/item/3155-raya-to-hit-bars-supermarkets

The technologies used are among the most advanced energy-saving solutions in the field of brewing, according to ZVU Potez. The plant captures CO2 during fermentation for further processing and also includes a system for reducing energy consumption. Energy created during the production process will be used to heat water. ZVU Potez subsidiary DIO Hradec Králové was also involved in the project.

“The African continent is very interesting for us. Currently we are developing additional business opportunities there and evaluating the potential of each individual investor. … Our extensive experience in the brewing industry … allows us to penetrate the markets from South America to East Asia,” CEO Čepelík said.

http://www.z-nyala.com/?p=5121

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Local company requests license for aluminum exploration

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Inter Africa Extrusion, a local aluminum manufacturer, has submitted an application for an exploration license in the Southern Nations Nationalities and Peoples Regional State (SNNPR) to prospect for aluminum; a rare mineral in Ethiopia.

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According to the general manager, Haimanot Abate, his company has partnered with a Chinese firm and had carried out surveys in some areas of the SNNPR and an application has been submitted to the Ministry of Mines. “We are well aware of the availability of aluminum in the area after the survey,” Haimanot told The Reporter.

The company, which used to import aluminum from Gulf countries, is now manufacturing aluminum locally. “In fact, we could not meet the growing demand,” Haimanot told The Reporter. He further stated that the growing demand drove the owner to establish the manufacturing plant with an outlay of 45 million birr initial capital. Consequently, the company raised its capital to 55 million birr.

Though the company gets the scraps locally the company is still importing the raw materials from Dubai. “The only reason we import is for the sake of quality,” he said. The manufacturer is already engaged in the 40/60 housing scheme and has started assembling doors, windows and partitions for the Senga Tera and Kality sites.

In order to satisfy the ever growing demand of aluminum in Ethiopia Tracon Trading, a local company signed a joint venture agreement last year with the Dubai-based Al Ghurair Group. That joint venture was realized to establish aluminum refinery plant on the outskirts of the capital with an estimated capital of USD 50 million to produce 25,000 to 30,000 tons of aluminum annually.

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Ambassador says Ethio- Kuwait economic tie growing

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 Addis Ababa: February 15, 2015 – Cooperation between Ethiopia and Kuwait, which began diplomatic relations in 1997, has been increasing from time to time, Kuwaiti Ambassador to Ethiopia Rashed Al Hajri said.

Among Gulf countries, Kuwait is the third largest trading partner of Ethiopia next to Saudi Arabia and UAE.

The annual trade volume between the two countries grows from 3.6 million USD in 2009 to 338 million USD in 2013.

Ethiopia exports live animals and agricultural products to Kuwait, while it imports 70 percent of its total consumption of diesel, airplane kerosene and benzene from the later.

Agreements reached between the two countries and efforts of the joint ministerial committee for the implementation and success of these agreements are the major reasons for the enhancement of the ties, Ambassador Al Hajri noted.

He said: “Among the issues that help to place the relations on a strong foundation are the 14 agreements signed by the two countries. These agreements helped for strengthened bilateral relations.”

According to him, the Ethio-Kuwait joint ministerial committee has “a paramount” importance in strengthening the economic cooperation between the two countries.

Saying: “as the two countries have multi-dimensional relations and have agreements in trade and investment, Kuwaiti investors have began to invest in Ethiopia’s agriculture sector. Officials of the two countries are striving to improve this economic tie.”

The 3rd Afro-Arab Summit, hosted by Kuwait in 2013, also helped the two nations boost cooperation. Kuwait has pledged to extend one billion USD soft loan under the Kuwait Fund to support Africa’s development projects in five years period and Ethiopia is among the beneficiaries.

Kuwait has been extending support for Ethiopia through the Kuwait Fund for Arab Economic Development especially for the road sector development.

He said: “regarding with development projects, the support through the Kuwait Fund has been given by considering the objectivity and necessity of the projects and it plays its own role to support the provision of social services in both rural and urban areas. It continues to support huge projects.”

The support through the Kuwait Fund has been mainly extended to finance major road projects of the Ethiopian government.

So far, over 150 million USD support has extended to road constructions and rural electrification projects through the Kuwait Fund.

The construction of Wukro – Zalambesa, Nekempte – Bedele, and Dessie – Kutaber – Tenata road projects in Tigray, Oromia and Amhara regional states respectively are among the projects financed by Kuwait Fund.

http://www.fanabc.com/english/index.php/news/item/2235-ambassador-says-ethio-kuwait-economic-tie-growing 

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Mobile survey platform to give farmers data to boost yields

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By SCOLA KAMAU, TEA Special Correspondent

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In Summary

•GeoPoll, the global mobile survey platform, has partnered with Control Union, a global leader in agricultural certification, food safety and sustainability to boost agricultural productivity in Africa.

•For a start, the project will benefit countries such as Uganda, Tanzania, Kenya, Ethiopia, Nigeria and Ghana, before expanding to key markets in Asia including Indonesia and the Philippines.

•Target value chains include coffee, cocoa, cotton, palm oil, rice, tea, tobacco and fresh fruits and vegetables.

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About one million farmers in Africa will benefit from a global mobile survey platform that will give them access to data in emerging markets by way of SMS or voice recording, including market prices and standards requirements.

GeoPoll, the global mobile survey platform, has partnered with Control Union, a global leader in agricultural certification, food safety and sustainability to boost agricultural productivity in Africa.

“Accessing information from the most remote farming communities will no longer be a barrier when asking or answering consumer questions,” said Johan Maris, the managing director of Control Union.

For a start, the project will benefit countries such as Uganda, Tanzania, Kenya, Ethiopia, Nigeria and Ghana, before expanding to key markets in Asia including Indonesia and the Philippines.

Target value chains include coffee, cocoa, cotton, palm oil, rice, tea, tobacco and fresh fruits and vegetables.

Farmers across Africa have remained poor due to lack of information on how to add value to their crops and where to sell their produce. Value addition tends to occur mainly outside of Africa.

In the Ugandan Nile perch trade, for example, nearly 70 per cent of the final sale value is added outside of Africa in the retail stages of the value chain. Of the 30 per cent value accrued in Africa, the largest portion is retained by foreign-owned processing plants based in Uganda.

This leaves only 10 per cent to be divided between factory agents, fishermen and the many middle-men along the value chain, a study by Nordic Africa Institute shows.

The lack of access to international markets has left farmers in the hands of brokers, local manufacturers and exporters who determine the farm gate price.

“Farmers can be assisted in meeting these challenges through extension services, training in good agricultural techniques and capacity development programmes,” said John Mutunga, chief executive of the Kenya National Farmers’ Federation. “They also need access to finances that will enable them to buy seeds, fertilisers and machinery.”

The mobile survey platform opens at a time when African countries are focusing on emerging markets as a destination for agricultural produce, given the strict standards required by European markets.

European Union governments have stepped up efforts to test fresh produce for the presence of pesticides such as dimethoate and other organophosphate chemicals blamed for the rise in cancer cases in Europe and Africa.

Last year, the EU market threatened to lock Kenya out of its market, claiming that horticultural produce from the country had pesticide residues above the recommended levels.

http://reliefweb.int/report/world/mobile-survey-platform-give-farmers-data-boost-yields

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ECAE undertakes inspection of Urea, NPS at port Djibouti

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- Port Sudan is excluded

- The Ethiopian Conformity Assessment Enterprise (ECASE) has started inspection of fertilizers at the Port of Djibouti.

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General manager of the Enterprise, Teshale Belihu, said that the inspection is primarily done on Urea and NPS (Nitrogen Potassium, Sulfur) fertilizers. Agricultural Input Supply Enterprise (AISE) is the major body that ordered the inspection since it is the sole importer of the agricultural inputs.

According to Teshale, the enterprise has been conducting inspection only at the Port of Djibouti which unloads 894,039 tons of fertilizer. Amarech Bekele, communications director of AISE said that the fertilizers are mainly purchased from the Norway-based Yara while the rest are imported from Witraco, Helm AG and India Agro. “Yara supplies 371,500 tons of NPS and 200,000 tons of Urea while the rest are supplied by other companies,” Amarech told The Reporter. It has been three months since a memorandum of understanding was signed between the two enterprises for the inspection to be carried out at the Port of Djibouti.

Nevertheless, Port Sudan that expects some 50,000 tons of fertilizer from Witraco and the Hamburg-based Helm AG has been excluded from the inspection by ECAE. “We are not responsible for that. It’s excluded in the agreement,” Teshale told The Reporter. According to Amarech, Port Sudan has been excluded for the time being and it will be transferred to the ECAE or another enterprise. “Since the majority of fertilizer import is via Port Djibouti our focus will be there,” she said.

ECAE is an impartial public enterprise that involves in product inspection, certification and accreditation since 2011. It launched 9000 standards of which more than 160 are compulsory Ethiopian standards to be applicable in food and food item production. And inspecting the agricultural inputs and fertilizers falls under these compulsory specifications, Teshale said.

The government has reportedly paid USD 431.9 million to purchase the fertilizers and is constructing four fertilizer factories in Tigray, Amhara, Oromia and the Southern Nations, Nationalities and Peoples’ regional states to produce some 30,000 tones of fertilizer annually. AISE, a public enterprise, was established in 1985 to purchase and import fertilizer, farming chemical, seeds, medicines and vaccines under its accountability to the Ministry of Agriculture.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3150-ecae-undertakes-inspection-of-urea-nps-at-port-Djibouti

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Projects with 21 bln birr capital licensed in half year

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Addis Ababa, 14 February 2015 –

Over 200 new and 53 expansion projects with 21 billion birr combined capital were licensed during the past six months, Ethiopian Investment Commission (EIC) said.   

Some 108 of the total projects have gone operational, Fitsum Arega, EIC Director-General    told journalists here yesterday.   

Over 2,000 investors from 42 countries have also contacted the commission during the past six months to explore investment opportunities in Ethiopia, he added.   

According to the Director-General, the finalization of the first industry park proclamation for Ethiopia is a big achievement which would make the country a hub of industrialization in Africa in the years ahead.   

According to ENA, the proclamation that aims at mainly transforming the manufacturing industry sector in general and light industries in particular is expected to be endorsed by the House of Peoples Representatives.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17651:projects-with-21-bln-birr-capital-licensed-in-half-year-&catid=52:national-news&Itemid=291

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Swedish Company to Invest US $200 million on Forestry in Ethiopia

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The Swedish based agro forestry company VIP disclosed it is keen to invest in Ethiopia’s forestry. The announcement was made during a press briefing organized by the company and Ministry of Foreign Affairs (MoFA).

Managing partner of VIP, Akal Mamo, during the event said, “As per our desire, we were working for the past seven months to prepare memorandum of understanding (MoU), which we expect to be signed soon with Ministry of Forestry and Environmental Protection (MoFEP)”.

VIP intends to start a project it dubbed Paulownia Forest Project. The project will enable the company to produce fast growing multipurpose trees which naturally provide ethanol, that serves for hardwood timber.

The project is expected to cost USD 200 million and it is planned to be undertaken in degraded lands of Oromia State, Amhara State, Tigray State and Southern Nations Nationalities and Peoples State, Teka explained.

During the press briefing presentation of three companies that are known to engage and interested to invest in the sectors of diary, milk and sugar took place.

According to Fortune, forestry as a sector contributes 90 percent of Sweden’s GDP.

http://www.2merkato.com/news/alerts/3579-swedish-company-to-invest-on-forestry-in-ethiopia