.
Ethiopia Will Seek Sovereign Credit Rating to Lure Investors
By William Davison – Dec 3, 2013
Ethiopia, Africa’s fastest-growing economy over the past five years, plans to obtain a credit rating to attract more foreign direct investment and offset a decline in exports.
The Horn of Africa nation’s government will select two or three rating companies within weeks to assess the country, Finance Minister Sufian Ahmed said in an interview yesterday in the capital, Addis Ababa. The state has no plans at this stage to tap international debt markets for funds to finance its infrastructure development program, he said.
“The intention is basically to show foreign direct investors where Ethiopia is in terms of those criteria,” Sufian said.
Ethiopia, Africa’s largest coffee producer and the origin of the plant, grew an average of 10.3 percent from 2008 to 2012, according to International Monetary Fund data. The economy is forecast to expand 7.5 percent next year, compared with an estimated 7 percent this year, the Washington-based lender said in October.
The country needs increased foreign investment to offset a current account deficit that has become a “major concern,” Sufian said at the African High-Growth Markets Summit in Addis Ababa. The deficit grew to $3 billion in the 12 months to July 7, the end of the fiscal year in the Ethiopian calendar, from $2.8 billion a year earlier as export growth slowed, according to the IMF.
Ratings Companies
Fitch Ratings’ London-based spokesman Peter Fitzpatrick and Moody’s Investors Service spokeswoman Kirsten Knight didn’t immediately respond to e-mailed requests for comment. No one was available for comment when Bloomberg called Standard & Poor’s offices in London outside normal business hours.
Foreign direct investment is expected to total 2.8 percent of gross domestic product this fiscal year and average 4.5 percent in the “long run” if the government adopts policies that promote private business, the IMF said.
The government won’t allow foreign investment in banking, telecommunications and other industries monopolized by the state or barred to non-Ethiopian companies until regulation is strengthened, Sufian said.
“Once we are comfortable, then the government will consider,” he said. “I can’t give you an exact date.”
The Ethiopian government plans to spend 105.2 billion Ethiopian birr ($5.5 billion) on infrastructure and industry including hydropower dams and sugar plants in the 12 months ended July 7 and 70.7 billion birr next year, according to a five-year growth plan that ends in mid-2015.
“The main challenge is investment financing needs,” Sufian said. “We know it’s huge.”
Funding targets will be met by increased domestic financing and borrowing as much as $1 billion a year on non-concessional terms from China, India and Turkey, he said. Key projects will also be prioritized, he said.
Ethiopia is Africa’s second-most populous nation, after Nigeria.
To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
.
Saudi Billionaire Plans Two Cement Plants in Ethiopia
By William Davison - Dec 3, 2013
Saudi billionaire Mohammed al-Amoudi, the biggest private investor in Ethiopia, plans to build two more cement factories in the Horn of Africa nation amid an improving investment environment.
The plants will add to the $351 million facility al-Amoudi’s MIDROC Derba Cement opened in December 2011, the 67-year-old investor said in an interview today in the capital, Addis Ababa. Derba Group, an amalgam of three Ethiopian companies owned by al-Amoudi, plans to invest $3.4 billion in Ethiopia over the next 5 years, the company said in March 2012.
“Africa’s opportunity lies in involvement of private sector working with stable and responsible government like Ethiopia,” al-Amoudi said in a speech at the African High-Growth Markets Summit in Addis Ababa. Continuing improvements in the business climate will probably to lead to a “great” increase in investment, he said, without elaborating.
Ethiopian-born Al-Amoudi ranks as the world’s 134th richest person, with a net worth estimated at $8.7 billion, according to the Bloomberg Billionaires Index. He is the second-richest person in Saudi Arabia, after Prince Alwaleed bin Talal. Ethiopia’s economy is projected to expand 7.5 percent next year, compared with an estimated 7 percent this year, the International Monetary Fund said in its World Economic Outlook in October.
Three farming companies owned by al-Amoudi developed 62,000 hectares (153,205 acres) of land in Ethiopia, al-Amoudi said. Elfora Agro-Industries, Horizon Plantations Ethiopia and Saudi Star Agricultural Development will have prepared an additional 160,000 hectares in the next 2 1/2 to 3 years.
“We are focusing on agriculture and industry,” he said.
Agriculture Projects
Horizon bought three agricultural projects from Ethiopia’s government for $59.4 million in April. The company plans to invest 400 million Ethiopian birr ($21 million) over the next two years in Upper Awash Agro Industry Enterprise, Gojeb Agricultural Development Enterprise and Coffee Processing and Warehouse Enterprise.
Saudi Star, a Derba company, has been unable to finance the completion of an irrigation canal at its 10,000-hectare rice project in the western Gambella region, the company said last month.
“There were certain problems which we are trying to solve,” al-Amoudi said. “Now we are getting in deeply and I’m going to follow it up myself.”
Al-Amoudi also announced that an “agreement has been reached” with London-based Hikma Pharmaceuticals Plc (HIK) to produce drugs in Ethiopia for the domestic market and export to Africa. He didn’t provide further details.
To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net
To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net
.
South Africa’s Vodacom opens office in Ethiopia, eyes foothold
Dec 3 (Reuters) – South Africa’s Vodacom Group opened its first office in Ethiopia on Tuesday, eyeing a foothold in a nation which is the last remaining large market on the continent to maintain a state monopoly in telecoms.
Africa’s rapidly expanding telecoms industry has come to symbolise its economic growth, with subscribers across the continent totalling almost 650 million last year, up from just 25 million in 2001, according to the World Bank.
Ethiopia’s state-run Ethio Telecom signed a $1.6 billion deal in July and August with Chinese firms Huawei and ZTE Corp to expand mobile phone infrastructure, including rolling out 4G services in the capital.
But Addis Ababa has ruled out liberalising its telecoms sector, saying the 6 billion birr ($321 million) it generates each year is being spent on vital infrastructure projects.
Romeo Kumalo, Vodacom Group’s chief executive, told Reuters in the Ethiopian capital the firm would apply for a licence to provide value-added services – essentially all services other than standard voice calls – in the Horn of Africa country.
“But more importantly we want to position ourselves so when the market opens and the government does decide to grant licences in the consumer sector,” he said.
“We would invest here tomorrow. Ethiopia is probably the most fantastic telecoms market on the continent. One operator, 80 million people, the economy growing at 7 percent – it’s a great market.”
The Ministry of Communications and Information Technology says it has received applications from more than 200 firms to provide such services.
South Africa’s MTN Group, Africa’s largest mobile phone company, has already been granted a similar licence to open an office and offer value-added services.
Kenya’s top telecoms operator Safaricom has in the past expressed an interest in Ethiopia.
Ethiopian Prime Minister Hailemariam Desalegn, who took office last year, told Reuters in October that the government would not sell Ethio Telecom, which has a monopoly.
He said foreign investors were attracted to telecoms because it was a “cash cow” that required none of the effort to make profits that was needed to establish factories in manufacturing, an area which would create more jobs and growth.
(Reporting by Aaron Maasho; Editing by Duncan Miriri and David Evans)
http://www.reuters.com/article/2013/12/03/vodacom-ethiopia-idUSL5N0JI3TD20131203
.
Ministry of Mines Signs Agreement with Chinese Firm for Ogaden Gas Reserves
The reserves have attracted international investment on multiple occasions, but nothing has yet been realised
The Ministry of Mines (MoM) signed a petroleum production sharing agreement (PPSA) on November 16, 2013, with Chinese firm Poly GCL Petroleum Investment Ltd, for the Ogaden basin’s Calub & Hilala gas reserves, Fortune learnt.
The area, which was first identified as a potential natural gas reserve in the 1930s, has repeatedly attracted the attention of foreign investment, but nothing has been realised thus far.
About a dozen companies have obtained licences for the fields after the presence of gas was confirmed in 1972 by Tenneco – aUScompany. This has created an extensive collection of seismic and other data on the area, which is estimated to hold 76 million cubic metres of natural gas.
The companies that have gathered the information include Malaysia-based Petronas Carigali, Soviet Petroleum Exploration (SPE), Hong Kong-based PetroTrans and Chinese company Zhoungyan Petroleum Exploration Bureau (ZPEB). The latter drilled eight wells in two different sites in order to ready them for exploitation.
The exit of Petronas in 2010 was followed by an international tender in March 2011, which was won by PetroTrans after it agreed to invest close to four billion dollars to develop the gas fields. It won after beating six other bidders, including South West Energy (SWE), the National Oil Company (NOC) ofEthiopia- largely owned by Mohammed Ali Al-Amoudi (Sheikh) – and Cobramar of Seychelles.
PetroTrans then signed a PPSA agreement with the Ministry in July 2011, but the deal was terminated by the Ministry exactly a year later. This was because the company reportedly did not undertake any field works as was required according to the agreement. This created a dispute with the company, which claimed that it was analysing and interpreting old data collected from the concessions.
Since the new agreement comes against the backdrop of numerous unsuccessful precedents, the Ministry will heavily follow-up on the investment by the latest company to show interest, according to Tolosa Shagi, the state minster of Mining.
“The area has not been productive,” he said. “The government wants to see something concrete in the area, so the Ministry will be keeping a close eye on it,” Tolossa told Fortune.
.
Ethiopian Prime Minister Arrives in Khartoum, About 30 Agreements to Be Signed
Khartoum – President Omer Al Bashir and Ethiopian Prime Minister Hailemariam Desalegn held a presidential summit yesterday following the arrival of the latter in Khartoum on the evening of the same day.
Desalegn was received at the airport by President Al Bashir, ministers and diplomats. Ethiopia expressed satisfaction over the level of relations with Sudan in the political and economic fields.
The ministerial meeting between the two countries which was chaired by the foreign ministers of the two countries was concluded yesterday. The meeting agreed on 13 agreements covering most of the areas of cooperation between the two countries and will be submitted to the two leaders for approval.
According to the Ethiopian Foreign Minister, Tadros Adhanon, the meeting of the Joint Ministerial Committee will discuss horizons of new cooperation between the two countries.
We look forward to strategic relations, Tadros said, adding that the two countries are linked by historic relations. We should prove, through economic cooperation, that the Horn of Africa is not a backward region, he said.
He commended the positive development in relations between Sudan and South Sudan, citing the responsible approach of both sides to address issues by amicable means. “We are committed to cooperate with Sudan to resolve and settle differences” he said, adding that his country, the head of IGAD, will continue efforts to improve relations between Sudan and South Sudan.
He stressed the importance of relations between the two countries, hoping that the meetings will come up with positive results to further strengthen bilateral cooperation between the two countries.
He said commercial cooperation is progressing and so does investment, adding that many Sudanese businessmen are investing in Ethiopia and underlined the great role that could be played by businessmen in the two countries.
Tadros added that joint commercial agreement between the two sides contributed toward increasing revenues between the two countries by 23% ($320 million).
He underscored the need to establish joint mechanisms between the two countries to ensure the implementation of all agreements.
He added that President Al Bashir and Desalegn have agreed to achieve stability along the joint border between the two countries, stating that his country will not allow any quarters to destabilize the common border.
The Sudanese Foreign Minister, for his part, praised the constructive efforts Ethiopia has been undertaking on all Sudanese issues particularly the issue of relations between Sudan and South Sudan.
Ali Karti considered the framework agreement prepared by the experts as important steps towards strategic integration between the two countries.
The Foreign Minister expected the two leaders to decide a date for start of fixing landmarks along the common border.
http://news.sudanvisiondaily.com/details.html?rsnpid=229662
.
Increase in Electricity Tariffs Required to Realise Power Generating Projects
The report, funded by the World Bank, seeks to support the massive increase in Ethiopia’s power capacity
Ethiopia will need to increase its domestic electricity tariff by 400pc in order to realise its planned 28 power generating projects over the next 25 years.
The 1.5 million-dollar expansion masterplan study, financed by the World Bank and conducted by Parsons Brinckerhoff – a multinational engineering and design consultancy firm – was undertaken as a tool to put guidelines onEthiopia’s ambition to increase its power capacity from the current 2,300MW to 37,000MW by 2037.
This would require 156 billion dollars spread over the next 25 years, which amounts to around 48 billion dollars in current money, the study claimed. The study recommended that a large increase in export tariffs is necessary, or else the current domestic tariff of 0.028 dollars a kWh must increase to more than 0.14 dollars a kWh.
Ethiopiacurrently exports electricity for 0.07 dollars a kWh, but even raising this to 0.10 dollars – a 43pc increase – would still require a domestic rate of 0.13 dollars a kWh. This is because the study projects exports of 5,300MW by 2037, up from the current 200MW. Though this is a large jump, the study recommended a rise in the export tariff in order to ease the strain on the domestic tariff.
The study was tabled for discussion on November 26 and 27, 2013, in the presence of representatives from the World Bank and the African Development Bank, as well as diplomatic communities from North America andEurope.
The issue of securing finance seemed to be the concern of the participants, as well as Mihret Debebe, chief executive officer (CEO) of the EEPCo. Given that the government does not subsidise the sector, the Corporation is expected to source the financers.
As a result, the Corporation is eyeing financers from international financial institutions and the private sector, as well as loans from the Ministry of Finance and Economic Development (MoFED).
Among the participants, some commented that the project is too ambitious and far from recognising the financial capacity of the country.
The Corporation does not, however, agree with the view that it is unrealistic. The government “badly needs to see the project realised”, according to Mihret.
“What would happen if we listened to everything that others say?” He said in an interview with Fortune. “We would not even reach 800MW.”
In order for the GDP to grow at a rate of 10pc per annum, the electricity demand that rises by 24pc annually must be addressed, according to the available estimation at the Corporation.
Currently, the Great Ethiopian Renaissance Dam (GERD), with 6,000MW; the Gilgel Gibe III, with 1,870MW and the Genale Dawa III, with 254MW, are the hydropower plants under construction. They are expected to be completed by 2017 for the GERD, and 2015 for the other two.
By 2019, total generation is expected to reach 9,265MW, according to the study, which is five times larger than the 1,843MW that was available in 2012.
“To have great electric power capacity is to have great political sovereignty as well. To this effect, we will continue expansion,” Mihret said.
Parsons Brinckerhoff will amend the study based on feedbacks from the two-day meeting and deliver the final report to the Ministry of Water and Energy (MoWE) by January 2014.
.
Ethiopia’s Chief Trade Negotiator Cancels WTO Summit Attendance
Ethiopia’s chief trade negotiator, Mekonnen Manyazewal, has cancelled his attendance at the Ninth Ministerial Summit of the World Trade Organisation (WTO) in Bali, Indonesia, at the last minute. The summit is set to open today, December 3, 2013.
No official explanation has been made available for his absence from the global summit on trade, which will be opened by the President of the host nation, Soesilo Bambang Yudhoyono.
Up to 13,000 delegates are flocking to the island, from 159 member countries and 25 non-voting observers – a group in which Ethiopia is included. Claiming a status of observer since the Organisation’s formation in 1995, Ethiopia is also among the countries to have begun the process of joining the world’s trade police – known in the Organisation’s jargon as “accession”. Yemen is the latest country expected to complete its transition from an observer to fully fledged member this week.
Accession to the WTO is a long and arduous journey that may take as long as 15 years. Ethiopia’s bid to join as a full member began in 2003, and the country remains halfway through this journey. It has yet to place its offers on services – one of two crucial documents that enables member countries to negotiate with Ethiopia’s trade policy negotiators.
Mekonnen, who is also chief of the National Planning Commission – a newly-established federal agency trying to emulate the one in Indonesia – was scheduled to lead Ethiopia’s five-person team of trade negotiators.
Ethiopia’s team is, therefore, now led by Menelik Alemu, Ethiopia’s ambassador in Geneva; and comprises of Geremew Ayalew, the national technical committee chair of the WTO; Lesanework Zerfu, head of multilateral trade relations at the Ministry of Trade (MoT); and Azanaw Tadesse, counselor for the WTO.
Mulu Solomon, president of the Ethiopian Chamber of Commerce & Sectoral Associations (ECCSA), and her Secretary General Gashaw Debebe, who was formerly a negotiator, are also present in Bali.
The Summit, which will close on Friday, is considered important for poor countries such as Ethiopia, because of the issues it is expected to agree on: trade facilitation and food security. However, since summits like this have a history of collapse in the final hours, major negotiators often try to lower expectations.
http://addisfortune.net/articles/ethiopias-chief-trade-negotiator-cancels-wto-summit-attendance/
.
Small, But Proportionally Significant Results Expected at WTO Summit
The Ninth Ministerial Summit of the World Trade Organisation (WTO) opened in the resort Island of Bali, Indonesia, with the declaration of Indonesia’s Trade Minister that the results expected may appear “small, but proportionally significant”.
What has come to be known as a “Bali Package”, trade negotiators across the world are to decide on what Roberto Azevedos, the new director-general of the WTO, described as a balance on the fate of WTO relevance to the world. There is indeed a sense of urgency in his tone when he called delegates to finish the deal “now and here”.
“Members want a deal,” he told delegates. “Well, now is the time to deliver. We are almost at the finish line.”
An important element in the Bali Package is the support members are hoping to give to the accession of the least developed countries, such as Ethiopia. He sees that demand in customs reform is not enough, but there ought to be technical support to enhance their negotiating capacity.
It is what Ethiopian trade negotiators have come to Bali for, according to members of the delegation. A technical assistance, which could reach three million dollars, is under discussion with the WTO, under an enhanced framework arrangement.
http://addisfortune.net/articles/5621/
.
WB to finance Climate Innovation Centre establishment
The World Bank,AAU and the Horn of Africa Regional Environment Center (HoA-RECN) yesterday agreed to establish Climate Innovation Centre (CIC) in Ethiopia.
The grant agreement was signed by Gbang Z. Chan,WB Country Director for Ethiopia and Dr. Admasu Tsegaye President of Addis Ababa University. The World Bank provides 5 million USD grant for the establishment of the Centre.
The Ethiopia CIC, spearheaded by infoDev, a global innovation programme of the World Bank, will accelerate the use of emerging technologies in locally owned and developed solutions to climate change. The center, which is supported by the government of Norway, UK Aid and the World Bank, will provide financing as well as mentorship and advisory services to a growing number of local climate innovators and entrepreneurs.
Through its support to local entrepreneurs,the Centre will propel innovative solutions to climate change while creating jobs and improving livelihoods. It is expected to support up to 20 sustainable climate technology ventures in its first year, and more than 200 over the next ten years leading to up to 12,000 direct and indirect jobs.
At the signing ceremony, Dr. Admasu said: “Once the project is launched, it is expected that the CIC will be fully operational over the next 5 years, providing a suite of advisory, partnership and support services to Ethiopian innovators, entrepreneurs and Small and Medium sized Enterprises (SMEs) within climate technology sectors.”
He further said that support might come in the form of grant or business mentoring,and women and rural-based business owners will be especially encouraged to make use of the CIC.
Guang Z.Chen on his part said: “Through its support to local entrepreneurs, the CIC supports key private sector-driven components of the Government of Ethiopia’s GTP and the Climate Resilient Green Economy (CRGE) strategy.”
According to him,CIC will provide early stage financing, business mentorship and technical assistance to these innovators and entrepreneurs who develop environment friendly products and services.
.
MELKA-Ethiopia inaugurates indigenous seed bank
The bank is expected to store 300-400 quintals of different seeds as of this harvest season
A local NGO MELKA-Ethiopia has inaugurated a seed bank aimed at preserving indigenous varieties by the farmers themselves. Farmers and students have also staged exhibition of indigenous crops, vegetables and root crops.
Speaking at the inaugural ceremony held at Telecho Kebele of Wolmera Woreda of West Shoa Zone last Saturday, Organization Founder and Director Million Belay(PhD), said the construction of the seed bank is part of the organization’s effort to save indigenous crop varieties from extinction. The inauguration of the seed bank and the exhibition could enable imparting knowledge about indigenous varieties from elders to posterity, he noted.
Million said the organization’s work with the farmers since the last couple of years has helped the latter examine different varieties of crops based not only on productivity but on other criteria like health and impacts on environment as well. Different tasks have been undertaken to conserve water and soil in the area to rehabilitate formerly impoverished plots, the Director said.
He also said that instead of focusing only on improved seeds, preserving various crop varieties could help the country to withstand climate change and related challenges.
Oromia Special Zone Surrounding Finfine Administration Deputy Head Admasu Teshome on his part commended the organization’s intervention which helps farmers preserve indigenous crop and plant varieties along with using improved seed from agricultural research institutes. “ It is helping the farmers by supplying various tools and skills of rehabilitating eroded farming plots. The organization has also pledged to continue its support this year,” he noted.
Admasu said the seed bank is vital for the preservation of different indigenous crop and plant species and use them as basis for future research for improved seeds that could boost agricultural productivity in the country. In addition to collecting the indigenous seed and plant varieties from the community, the zone is working in collaboration with the organization to use some of them on farmers plots and expand use of organic fertilizers like compost, he added.
Meanwhile, an exhibition of more than 17 indigenous varieties of wheat, 20 varieties of barley, beans, peas, crops and vegetables was staged by the farming community and students. The bank is expected to store 300-400 quintals of different seeds as of this harvest season.
.
Ministry introduces National e-MTCT Strategic Plan
During routine antenatal services, all pregnant women receive information and screenings—for the prevention of mother to child transmission of HIV. That way, women who need further care are identified and better served.
The Ministry of Health said that National Prevention of Mother to Child Transmission of HIV (PMTCT) services coverage has reached 42 per cent due to the dramatic increase in the provision of health facilities. However, the desired objective has not been met due to missed opportunities and dropout rates in addition to low coverage of services. Cognizant of these facts, the Ministry has prepared a three-year National Accelerated Plan aimed at eliminating MTCT (e-MTCT) by 2015.
At a workshop organized at Dessalgen Hotel yesterday, State Minister Dr. Kebede Worku said the national plan was set to boost both the rapid expansion and delivery of integrated quality PMTCT services to ensure that all pregnant women living with HIV and AIDS have access to prevention and treatment services, and that new HIV infections among children will be eliminated by 2015.
The objective of the strategic plan is to provide guidance on programming and prioritizing e-MTCT services with clearly set cost effective interventions that will lead to elimination of new infections among children and keeping their mothers alive, he added.
“I strongly encourage all stakeholders across all corners of Ethiopia to work towards successful implementation of this plan and contribute to our national elimination goal. I also urge strong collaboration and partnership with development partners to scale up their support,” Dr. Kebede remarked.
Afar State PMTCT focal person Momina Abdella on the occasion said they have a low prevalence of MTCT, but they are not lax on the subject. “We have a total number of 29 sites giving the service. Since pastoralist lifestyle is common in the State, the expectant mother visits health stations only when she is sick not for the required four prenatal care visits. The State Nursing College trains women midwives to raise access to health service during delivery. We believe that taking the service to where the women travel helps cut the dropout rate. We request the Ministry to increase support to this effect, ” she added.
.
Sudan-Ethiopia committee reaches agreements
The Joint Sudanese – Ethiopian Higher Committee (JSEHC) has concluded its meetings at the experts level, and reached several economic and political agreements and understandings aiming to develop bilateral relations, as Ethiopian Prime Minister expected to arrive on Tuesday.
The Sudanese side of experts committee was headed by the general director of bilateral relations at Sudan’s ministry of foreign affairs, Abdel-Mahmoud Abdel-Halim while the Ethiopian side was headed by director of the African department at Ethiopia’s foreign ministry, Solomon Ababa.
The two delegations reached agreements to enhance trade in areas of transportation, customs, standards and metrology, civil aviation, media, and communication. The understandings covered social, cultural, sports, and tourism domains.
The meeting further applauded progress in work of the joint borders committees in the previous meetings and underscored the need to enhance cooperation between border regions.
The Sudanese foreign ministry spokesperson, Abu Bakr Al-Siddig, on Monday also denied existence of border disputes between the two countries, pointing that there are small differences on limited points at the border area.
Farmers from two sides of the border used to dispute the ownership of land in the Al-Fashaga area located in the south-eastern part of Sudan’s eastern state of Gedaref.
Ambassador Al-Siddig, disclosed that technical committees which are currently meeting in Khartoum have embarked on putting border signs for the border re-demarcation in order to organise trade and movement between the two countries.
He added that the two countries agreed to coordinate positions on the regional and international issues particularly the situation in Somalia besides signing a memorandum of understanding for cooperation and coordination between the foreign ministries, pointing that the Sudanese side briefed its Ethiopian counterpart on the progress of cooperation with South Sudan.
This fifth JSEHC meetings would witness the signing of a strategic framework agreement by president, Omer Hassan Al-Bashir, and Ethiopia’s Prime Minister, Hailemariam Desalegn.
Desalegn will arrive in Khartoum on Tuesday at the head of a high level delegation to participate in the meetings JSEHC and inaugurate the power linkage network between the two countries.
The JSEHC meetings at ministerial level would begin on Tuesday. The Sudanese side would be headed by the foreign minister, Ali Karti, while the Ethiopian side would be headed by the foreign minister, Tedros Adhanom. (Sudan Tribune)
http://www.waltainfo.com/index.php/editors-pick/11481-sudan-ethiopia-committee-reaches-agreements-
.
A cooperative union working for the good of farmers
Four years into its operations, Dansha Awraro cooperative union enjoys much success.
Based in western Tigray, the cooperative is striving to better the lives of farmers in the area by finding markets for their produce, investing in social services and stabilizing the market.
“We believe the cooperative is playing its part in the country’s ongoing development,” said Birhane Mezgebo, Tsegede Woreda cooperative union work process coordinator.
The cooperative union also extends loans to farmers who, in the past, have been victims of loan sharks. It has, so far, extended 727 million birr in loans to farmers, enabling them to maximize the quality and quantity of their products.
Farmers in the area predominantly produce sesames, maize and spices. The farmers are no longer concerned about lack of market as the cooperative union buys their produce with a bigger profit margin.
“We are also encouraging and assisting them to maintain the quality of their produce to meet export standards,” acting manager Hagos Mamo said. He said the union has already started exporting the agricultural outputs to China.
With the cooperative union’s effort, whose capital has risen from 40,000 birr when it started to 14.3 million bir, some farmers are starting a small-scale mechanized farming, using tractors instead of oxen to plough their plot.
Their success is also acknowledged by the government. Egri Mitkal Multipurpose Farmers’ Cooperative Union, a member of the Dansha Awraro, has received an award for best practice.
http://www.waltainfo.com/index.php/explore/11482-a-cooperative-union-working-for-the-good-of-farmers-
.
Ethiopia earns over $121 mln in revenue from gold, gemstones
Ethiopia has earned over 121 million US dollars in revenue from various minerals supplied to the national bank and overseas markets in the first four months of this fiscal year.
Ministry Public Relations Senior Expert, Ethiopia Bedecha, told WIC the revenue was secured from 2, 541.3 kg of gold supplied to the National Bank of Ethiopia by tradition gold miners as well as 1,264.2 kg of raw and 12.98 kg of value added gemstones exported to various countries.
Some 101.2 of the income was earned from gold produced traditionally and supplied to NBE, while the remaining 20.5 million US dollars was generated from gemstones exported by various companies, he said.
The revenue fell short of target, however, efforts are underway to achieve the target in the remaining months by diversifying export items and devising other options, he said.
.
ODA to raise half a billion birr for planned boarding schools
The Oromia Development Association (ODA) has launched a fund-raising campaign to build three modern boarding schools in Oromia region.
The association expects to raise 500 million birr this year, Abadula Gemeda, board chairman of the association, said during a press conference.
By mobilizing 4.8 million members of the association and its partners, ODA expects to raise the fund required to construct the boarding schools.
The school, primarily, aims to enroll high performing and exemplary students who would be recruited from various schools in the region, ODA said in a statement.
The schools are designed to accommodate well equipped library and laboratory, dormitory for students and teachers, clinic, workshops and sport facilities including a swimming pool, the statement said.
“One of the schools alone, which will accommodate 640 students, could cost not less than 330 million birr,” Abadulla said.
The board chairman said the association was making preparations for the past five months by setting up a committee to oversee fund-raising activities.
Some 51 of the committee members have played an exemplary role by raising over 50 million birr, Abadula said.
“This is indicative that with a more robust effort, we will be able to raise the necessary fund,” he said adding that fund-raising campaigns will be launched in Addis Ababa and major cities in Oromia region.
ODA was established in March 1993 as a non-for-profit, non-partisan organization with the objective of mitigating the developmental problems in Oromia region by mobilizing local and external resources. It claims to have carried out over 2,000 projects in education, health, provision of clean water, environmental protection and food security areas.
.
Bahir Dar University working to improve education quality
Bahir Dar University has been working to improve the quality of education through designing and implementing various strategies.
University Vice President for Academic Affairs, Frew Tegegn, told WIC recently the university has been doing its level best to achieve and implement the country’s strategy to improve the quality of education.
The mission of the university is to produce competent and skilled manpower that contribute for the success of the ongoing overall development activities of the country, Frew said.
Hence, the university has been implementing student-centered learning environments, including peer-teaching, to equip students with the skills and knowledge they need to be successful, he said.
The university has also attached due attention toward training marine engineers for shipping lines and becoming one of the ten leading universities in Africa in 2025, he concluded.
.
Premier lauds job done by INSA in reducing vulnerability
Prime Minister Hailemariam Desalegn has commended the job done by the Information Network Security Agency (INSA) over the past few years in reducing information security vulnerabilities.
After visiting INSA’s exhibition which went on display on Saturday under the motto “Nationwide institutional synchronization for information and cyber security”, Hailemariam said the Agency shoulders a huge responsibility in ensuring the security of the nation’s massive development projects.
According to ERTA, it is also a key to nurturing the youth with knowledge and skills as well as mobilizing the society, he said.
.
Giant Real Estate Developer Bids to Construct Ten LRT Stations
Property giant P3 International has expressed an interest in the ongoing light railway project and various government housing schemes, and will provide cash finance together with design and operational resources if successful with its proposals, The Reporter learnt.
Assefa Woldemichael, head of P3-Africa in Ethiopia, told The Reporter that his company is willing to have a business relationship with the government through a Public Private Partnership (PPP) framework. “We are the pioneers of introducing PPP to the world. We have the expertise to plan, design, operate and finance a number of projects at a time,” Assefa said.
The Light Railway Transit (LRT) project is currently planning to develop some ten major stations out of the 39 in the capital. Following the initiative of the Ethiopian Railways Corporation (ERC), P3 is pushing to undertake the development. The new Transit Oriented Development (TOD) scheme plans to develop stations with commercial, residential and recreational buildings, aimed to finance the USD 470 million the government borrowed from China.
According to Assefa, P3 has the resources to manage the construction of ten stations, and it has proposed a model for the Laghar station, where some 1.2 sq kms of land is set to be renovated.
In related news, P3 is also keen to take part in the 40/60, 20/80 and 10/90 government housing projects. To date, more than one million Addis Ababa residents have registered in the schemes. According to Assefa, P3 will bring as much as 60 percent of the total finance, and by the schedule of the government will complete one million houses in just two years.
Assefa said that P3 has submitted letters to the Ministry of Urban Development, Housing and Construction, and is awaiting a response.
It is a busy time for P3, as the company also plans to construct a continental referral hospital in Ethiopia which, according to Assefa, will save the expense and time for some 60,000 Ethiopians who travel to Asian countries for budget care. And it is also keen to develop a children’s village in Addis Ababa, which Assefa says will be similar to the world-class projects that P3 operate in Dubai.
The US-based P3 International Development Company has been operating across Africa, the UK, North America and Arab states for the past 30 years. It also advises government leaders in Africa on business design, development and consulting. One of the company’s subsidiaries, commonly known as ARUP, is reputed for its innovative designs for the 2008 Beijing Olympics.
http://www.ethiopiainvestor.com/index.php?option=com_content&task=view&id=4610&Itemid=88
.
SUR Construction Signed Contract for Dansha-Abdrafi-Maycadran Road Project
Ethiopian Road’s Authority and SUR Construction PLC signed a contract to build the 104 km long Dansha-Abdrafi-Maycadran asphalt road, Fortune reported.
The 1.6 billion birr contract was signed on Tuesday, November 26, 2013, at the Ethiopian Road’s Authority’s headquarters in Addis Ababa, Ethiopia.
The 10m wide road which includes seven bridges, is located on the import-export corridor between Ethiopia and Sudan. The projected is scheduled to be completed in three years.
The road will start 10.5kms off Dansha and end in Humera at the Lugdi junction and will cover an area which currently has only gravel roads for part of the way and no roads at all for the remaining stretch, Fortune reported citing a press release from the Ethiopian Roads Authority (ERA).
SUR won after competing against 13 local and international firms. The design of the road was carried out by Core Consulting Engineers PLC., a local company. Highway Engineers & Consultants PLC is the consultant for the project.
.
New Road Construction to Enhance Ethiopia-Sudan Trade
SUR Construction Plc is building a 104 km asphalt road for 1.6 billion Br along Ethiopia’s import-export pathway to Sudan.
The road – Dansha-Abdrafi-Maycadran – will start 10.5kms off Dansha and end in Humera at the Lugdi junction. It will cover an area which currently only has gravel roads for part of the way and no roads at all for the rest, according to a press release from the Ethiopian Roads Authority (ERA). SUR beat 13 local and international firms to the project, which was designed by a local firm, Core Consulting Engineers Plc. It will be 10m wide and have seven bridges. Highway Engineers & Consultants Plc are the consultants for the project.
The contract – signed on Tuesday, November 26, 2013, at the ERA’s headquarters at Mexico Square – requires that the construction be complete within three years.
The road traverses an area famous for its sesame and cotton production and is one of the locations identified for potential agro-industries.
The trade volume between Ethiopia and Sudan is expected to increase following the completion of the road, says Samson Wondimu, public relations director at the ERA. The trade volume, through Humera, between the two countries included 12,760tn of grain, 12,753tn of pulses and 19,066 cattle heads in 2010, according to a World Food Programme (WFP) report.
The project is part of the fourth Road Sector Development Programme (RSDP), which runs from 2010 to 2015, and focuses on raising road standards, building subsidiary roads and improving roads with high traffic. The Authority has budgeted 30 billion Br for this fiscal year, on top of the 142.1 billion Br spent in total over the 16 years of the programme, according to the performance report released in November 2013.
Through this programme, road coverage in Ethiopia has risen from 26,550km in 1997 to 85,966km by the end of the last fiscal year. Asphalt roads in particular, rose from 3,708km to 11,301km during the same period, and this new road will now add to that total.
Another goal of the ERA during this phase, which is to raise the participation of local contractors and consultants in federal road projects, will also be met during this project, as all companies involved are local.
SUR was established 22 years ago. Its capital during this time – during which it has handled 90 projects – has grown from 108 million Br to 1.5 billion, according to Tadesse Yemane, the general manager of the company.
“We are familiar with the area, and we currently have a number of projects there,” Tadesse said.
SUR previously built the 128km Gonder-Dansha asphalt road in Amhara Regional State, completing the project in December 2010. Currently, the company is handling the construction of the Welkayt Sugar Development Project’s 150m high dam in Tigray region, according to Tadesse.
But the agreed construction timeline of three years may be a challenge for the company.
“Usually this kind of timeframe is set for 60km or 70km roads,” said the general manager.
In order to meet the deadline, two teams will be deployed to work on the project. Personnel and heavy machines will start arriving in the area within the coming week, according to Tadesse.
http://allafrica.com/stories/201312030637.html?viewall=1
.
Additional Loan Approved for New Addis-Adama Expressway
On Thursday, November 28, 2013, Parliament approved the 320 million-dollar additional loan from the Export-Import (EXIM) Bank of China for the completion of the Addis-Adama expressway and two feeder roads.
The bill presented to Parliament by the Budget & Finance Affairs Standing Committee – one of 16 committees in the 547-seat legislative assembly – indicated that 143 million dollars of the stated amount has been earmarked for the completion of the Addis-Adama expressway. The remaining 177 million dollars will go towards financing the Akaki-IT Park (Guro) and Akaki-Lebu outer-Addis Abeba ring roads, which will link with the expressway on the outskirts of the capital, around the Kality area.
The new expressway, which has the capacity to handle up to 20,000 vehicles a day, was awarded to the China Communications Construction Company (CCCC), to which the EX-IM has decided to lend the money. The Ethiopian Roads Authority (ERA), the developer of the project, signed a deal with CCCC in June 2009 and construction work commenced in April 2010. The deadline was set for four years later.
The project, which is estimated to cost more than eight billion Birr, is financed through a 350 million-dollar loan from the EX-IM, with the remaining 262 million dollars coming from the Ethiopian Government.
The new six-lane and 12 m-wide expressway lies 3.5km west of the existing Addis Abeba-Adama road. Meanwhile, the new interchange roads will be six-lanes, with the potential to be upgraded to eight lanes if required in the future, according to the ERA.
The expressway will also be equipped with eight toll booths along with cameras, as well as lighting throughout the entire 80km stretch.
The Bank has advanced a 13-year 320 million-dollar loan for the project with a seven-year grace period and two percent annual interest fee, out of which 0.25pc will go towards administrative costs.
“The need for additional finance has arisen despite the commencement of construction prior to the signing of the deal,” the report and resolution presented to the Parliament stated. “The construction was delayed because of an increase in foreign currency and construction materials.”
The main road of the expressway continues 2.8km along the proposed Addis Abeba outer ring road and then passes to the East of Dukem, Bishoftu and Modjo. It passes the existing Addis-Adama road at 62km and bypasses around Adama on the south side. The expressway ends on the east side of Adama and connects with the Adama-Awash road.
It also indicated that members of the Committee unanimously supported the bill, taking into consideration that the project lays along Ethiopia’s main export corridor.
About 270 of the 547 members present during Parliament’s seventh regular session of its fourth year unanimously supported the bill.
http://allafrica.com/stories/201312030632.html
.
Related articles .
- 01 December 2013 Development News Round Up
- 28 November Development News Round-Up
- 27 November 2013 Development News Briefs
- 26 November 2013 Development News Briefs
- 25 November 2013 Developmental News Round Up (Updated)
- 22 november development news briefs
- 20 november 2013 development news briefs
