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By FASIKA TADESSE
FORTUNE STAFF WRITER

He has been ploughing on his four qert, equivalent to one-hectare of land for the past 34 years, but he started using improved seed since 2005.

He sowed Kuncho, an improved teff variety, BH-660, an improved maize variety and Guna, an improved wheat variety. He is happy with the production yield he gets from the improved seeds. Despite that, he is always disheartened by the difficulty in the process he runs into when acquiring the seeds.

To get the seeds, he follows the procedure that is commonly practiced by all farmers across the country. Development Agents (DAs) take note of the type and quantity of improved seeds each farmer needs, an information which eventually reaches the seed enterprises. And when the seeds come, they will be distributed through the cooperatives.

Yaregal gets the seeds he needs for each season from Raqat Farmers Cooperative, one of the 160 cooperatives which get improved seed supply from Merkeb Union. Merkeb distributes the seeds for the cooperatives, which is sourced from Amhara Seed Enterprise, based on a quota set by the regional agriculture bureau. And that quota does not fulfil the farmers’ need.

During the last seeding season, Yaregal was only able to get a bag of maize seed which weighed 12.5Kgs and cost 500Br, which he had to share with three other farmers.

“The whole bag should only be used for 0.5ha of land,” said Yaregal.

These farmers had to buy three more bags from private seed producers for 600 Br each.

According to some data only eight percent of farmers in Ethiopia are using improved seed.

With a population of over 90 million people, Ethiopia is an agrarian country. Agriculture accounts for 46.6pc of gross domestic product (GDP) and 90pc of exports but the sector is not well developed mainly caused of limited use of improved seeds, fertilizers and pesticides, and less crop yields, according to a 2013 report from Feed the Future, a global hunger and food security initiative of the United States government.

Farmers using improved seeds could see substantial increases, over 60pc in maize production, while wheat and other self-pollinating crop varieties could increase by 30pc. Overall, there is potential for an increase of seven million tonnes per year, according to data from the Agricultural Transformation Agency (ATA).

To improve the use of improved seeds, MoA has a responsible body led by Agricultural Input Supply Director, which oversees the distribution of Agricultural inputs for farmers such as Yaregal. The Ministry works on development and distribution of the improved seeds with universities, research institutes, Ethiopian Seed Enterprise (ESE) and three regional seed enterprises in Amhara, Southern Nation, Nationalities & People Region (SNNPR) and Oromia Regions. The enterprises distributes the seeds along with the universities and research institutes produced for the unions who distribute it to the farmers through cooperatives.

The ESE, formerly known as the Ethiopian Seed Corporation, was established in 1978 to produce and distribute improved varieties of seeds under the Ministry of State Farms. Currently, it is accountable to the MoA. It was joined by the three regional enterprises four years back. Tigray Region is also working on the establishment of its own enterprise that is expected to join the others soon.

Since 1980, the MoA registered a total of 907 improved crop varieties, of which 332 are cereals, 179 pulses, 82 oil seeds, 172 varieties of tubers, roots and vegetables, 36 varieties of fruits, 27 medicine condiment plants, 20 variety of forage & pasture, 23 fibre crops, and 36 stimulant varieties. But not all of them are distributed for the farmers as some of the varieties are obsolete because of productivity decline and diseases, according to a data from the MoA.

For the improved seeds, the Ministry provided three types of seeds for the seed enterprises and independent seed producers. Breeder, Pre Basic and Basic Seeds are the types and processes of seeds until the certified seeds are produced by government and private seed producers to distribute to household farmers, according to Endale Gudeta, higher expert on seeds at the MoA.

Before reaching the hands of Yaregal, the improved seeds pass through a process that starts at the MoA, them goes to seed enterprises, then to unions and cooperatives, having an average price range of 1,450 Br for maize, 767 Br for wheat, 802 Br for barley and 1,188 Br for teff. These seeds are also categorized into two, cycle one (C1) and cycle two (C2). C1 is a seed directly from the seed enterprises or private seed producers, which can be used for three consecutive seeding seasons while C2 is a seed collected from a farm harvested with certified seed sand can be sowed for two years in row.

“But informally, the farmers use C3 seeds, which is not advisable by the Ministry,” said Endale.

Edossa Dadi, a farmer, from Ambo, in West Shoa zone of Oromia is one of the farmers who faces a problem of getting the seed variety he wants. He ordered Huluqa variety wheat seed through the DAs, but he was told he cannot get the variety from the stating that they do not have it and recommend to him that he change to another variety of seed, which he did not want to consider as an option.

“I will buy C2 or C3 seed of Huluqa variety from other farmers,” he told Fortune.

Unlike Edossa, who prefers to buy deteriorated seed following shortage of improved seed, some farmers like Sisay Meshesha, from Bokoji Limu and Bilbilo Wereda have formed an association that is named Limu Dima Improved Seed Producers Cooperative to avoid the problem by preparing seeds themselves. But they cannot fully escape from the problem as they are currently facing problems in getting basic seeds to produce certified seeds, according to Sisay.

Contrary to the farmers’ complaints of the inaccessibility of improved seeds, the amount of seed, which is left over from distribution, has been increasing significantly during the last four years. The amount of seed that was not distributed to the farmers in 2010/11 fiscal year was 270,476ql but it had increased to 378,216ql the following year. The amount went even higher in 2012/13 to 759,454ql but slightly declined to 549,474ql during the last fiscal year.

At the same time, the demand and supply of the seeds equally increased in the same years the left over seed sum increased. In 2010/11 the supply of improved seeds increased considerably from half a million quintals to 1.2 million quintals, after 10 years of stagnation.

The officials of the MoA give three main reasons for the increasing amount of left over seed, including farmers’ preferences, which are always changing, unexpected weather change occurring before the seeds are distributed to farmers, which forces them to sow normal seeds, and late delivery of seeds by farmers who grow improve seeds under contracts from the seed enterprises; these farmers, called out-growers, are paid 15pc premium by the enterprise.

“Our main challenges are the out-growers who deliver the seeds too late for the seeding season, leading to accumulation of stock for the next seeding season,” Endale said.

Every year before entering of the seeding season Development Agents, those are assigned to assist farmers, collect the amount and type of seeds the farmers’ want and send it to the seed enterprises who prepare the seeds.

Tadesse Dessalegne (PhD), technical coordinator of East African Agricultural Products, a research institute established by Ethiopia, Kenya, and Uganda for Regional Centre of Excellence, cited poor demand assessment made by seed producers, to identify which type of seed is needed in which areas, is the major reason for the increasing amount of left over seed.

“Many varieties of seeds that are produced at the enterprises are demanded less by the farmers,” he said.

Merkeb Union was forced to store 14,400ql of improved seed until the coming seeding harvest season because of the above problems. It had prepared 25,000ql of seed to distribute to the farmers in the last fiscal year but it only managed to sell only 10,600ql. That led them to planning to sell the remaining seed for the coming harvest seeding season by reducing the amount of new supply they were going to receive, according to Migebaru Wube, general manager of Merkeb.

“The main reason for the left over seed is the distribution system,” according to Amsalu Ayano (PhD) director of Integrated Seed System Development (ISSD) Ethiopia, a project aimed to increase the use of improved seeds in Ethiopia with the financial support from the government of Netherlands and launched a pilot project which works on linking seed producers directly with farmers since 2011.

Cooperatives are less interested in selling the seeds as they are not getting good incentives from the government because they are service oriented and discouraged not to have a good marketing strategy to increase the number of farmers who use improved seeds, according to Amsalu.

Less than eight percent of farmers use improved seed in Ethiopia, according to a grain report by the United States Department of Agriculture (USDA) released in 2013. Even though the MoA claims the percentage of improved seed users reached 20pc stating the supply has been increasing by 15pc every year in line with the GTP.

The MoA projected to distribute 3.6 million quintals of improved seed in the 2014/15 seeding season while it has received a demand of 2.2 million quintals from regions, which declined by 0.5 million quintal from the previous year demand caused by the amount of unsold stored seeds at the seed enterprises, according to Endale.

As of September 2014, a total of 487,472ql of improved seed was distributed by the four seed enterprises and private seed producers. From the total amount, the highest sum went to Oromia, amounting to 171,154ql, Amhara got the second highest amount with 165,590ql, and Southern region got 126,864ql and Tigray got the smallest amount of improved seeds totalling 23,862ql.

From the main cereals improved seed varieties distributed in 2013/14, wheat holds the lion’s share with 1.5 million quintals, followed by barley having 284,000ql share, maize comes next with 249,000ql, and teff stands last with 226,000ql. During the last cultivation season, the country cultivated 12 million hectares of land with major crops with the expectation of obtaining 300 million quintals of yield, according to a data from the Central Statistics Agency (CSA) of Ethiopia.

On average, national yields of the main cereals, such as maize, wheat, barley and sorghum have increased at a faster pace, but still remains 45pc short of the global average.

Sisay feels a sort of frustration while he looks toward the coming seeding season. Members of their cooperative increased after non-member farmers realised members of the cooperatives are benefiting from the improved seed; so 100 additional farmers joined them in the last year, pushing their number of members to 200.

“We were highly challenged to meet the demand of improved seeds for the first 100 members, and I don’t think it will be easy for us to satisfy the new demand from the new members,” said Sisay.

For Amsalu, to avoid the challenges of those frustrated like Sisay and to decrease the left over seed at the cooperatives, the government should encourage the seed producers to sell their products directly to the farmers rather than selling through the cooperatives.

In addition, the MoA should encourage more business oriented private seed producers who can motivate the farmers to use seeds that the private seed producers sell. Furthermore, the government should conduct demand assessment researches to explore the actual demand for varieties receiving a demand aggregate date collected by the DAs, suggests Amsalu.

Sourced here  http://addisfortune.net/columns/the-improved-seed-irony/

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Fertilizer Blending to Begin in a Month at Four Plants Nationwide

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Specific areas will get specific fertilizer mix based on their soil type

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The Ministry of Agriculture (MoA) and the Agricultural Transformation Agency (ATA), together with four cooperative unions located in four regions are constructing four fertilizer blending factories that are expected to start supplying their products after one month.

The plants are being constructed by Gibe Dedessa Farmers Cooperative Union in Oromia Region, Merkeb Cooperative Union in Amhara Region, Enderta Multipurpose Farmers Cooperative Union in Tigray Region and Melek Site in Southern Nations, Nationalities & Peoples Region (SNNPR).

The construction of the blending factories was initiated by the first ever soil fertility study and digital soil fertility mapping project done in the 2013/14 fiscal year in 162 Weredas that revealed the soil in the country needed additional nutrients other than nitrogen and phosphorus.

The Ministry and the ATA found out that sulfur, potassium, boron and zinc nutrients are deficient in many areas which indicated that one compound fertilizer NPS and five blended fertilizers namely NPSB, NPKSB, NPSZnB, NPKSZnB, and NPSZn are needed to address the key nutrient deficiencies in the tested soils according to ATA’s 2013/14 report. Now the soil fertility survey of 350 Weredas is completed, but so far only the soil map for Tigray has been completed.

The Gibe Dedessa blending factory will avail its products to six western Oromia Zones including Illubabor Zone, Jimma Zone, Half of the western Shoa, and the four Zones of Wollega, according to Arebu Ali, Deputy manager of Union.

Through Ethiopian Soil Information System (EthioSIS) project, which undertook extensive demonstrations in 30,000 sites, both on farmers’ plots and at farmer training centers, the introduction of new fertilizers to the soil was validated.

The country, which has been using only di-ammonium phosphate (DAP) and Urea for the past 14 years, abandoned DAP and began importing a new fertilizer called NPS.

The blending factories are meant to increase the production and productivity of the farmers in the country through the supply of appropriate fertilizer to the soils.

Since 2003/04, productivity and production of cereal crops has increased by an annual average of 5.3pc and 9.1pc, respectively. Reports from the Central Statistics Agency (CSA) indicate that there is a 15.35pc increase in total cereal production over the past year, especially in teff, wheat and maize.

The national fertilizer blending program, that was launched by the signing of a memorandum of understanding (MoU) between the MoA and the ATA and Allana Potash Corp in 2013, has seen the first of the planned five plants in June 2014, which, together with the new ones, is expected to benefit 11 million farmers. It was built by a 1.2 million dollar grant from the USAID Feed the Future innovation, which has also given another four million dollars for improved inputs.

The blending factories will be administered under the respective unions and they will distribute their products to the farmers in their mandated areas through the cooperatives, according to Tekalegn Mamo (Prof.), State minister and ministries advisor of MoA.

“We will have more blending factories, which will supply their respective Weredas and Kebeles appropriate fertilizers depending on their fertility,” Tekalign told Fortune.

That, he says, will increase the productivity of the farmers.

For the five factories, including the one that is operational, five international managers were hired; one for each of the factories. The staff of the factories will be hired by the unions.

http://addisfortune.net/articles/fertilizer-blending-to-begin-in-a-month-at-four-plants-nationwide/

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INTERVIEW – Farming changes may hold key to Ethiopia’s industrial goals, says expert

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By Edmund Blair

* Higher productivity needed to free workers from land

* Industrial ambitions rely heavily on cheap labour

* Challenge to change practices used since biblical era

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ADDIS ABABA, Feb 2 (Reuters) - Ethiopia’s ambition to become a manufacturing hub may hinge on Khalid Bomba’s ability to transform small-scale farming just as much as it relies on new railways, roads and other more obvious signs of change in a nation once brought to its knees by famine.

The 46-year-old one-time investment banker is now chief executive of Ethiopia’s Agricultural Transformation Agency (ATA). His task is to boost output from a sector that employs 85 percent of the workforce, most of them tilling plots of less than two hectares.

“The cheap labour for industrial manufacturing is going to come from the rural areas,” he told Reuters in an interview at the Addis Ababa headquarters. “You are not going to have people coming off the farm if productivity levels don’t increase.”

Ethiopia boasts some of the highest economic growth in Africa, at 8 percent or more a year, much of it fuelled by a huge state infrastructure programme that includes a new railway to Djibouti’s port, a city metro in the capital and vast hydro-electric dams, all aimed at attracting industrial investment.

But agriculture still accounts for more than 42 percent of gross domestic product, high even in Africa. The level is about 30 percent in next-door Kenya. Yet, Ethiopia still has to import some basic foods to feed its population of 96 million.

The challenge for Bomba and his team at ATA, which launched in 2011, has been to work out better planting, fertilising and harvesting techniques, while ensuring adoption by farmers whose practices have sometimes barely changed since biblical times.

One of the first areas targeted by ATA was production of tef, a grain that is the main ingredient in Ethiopia’s national dish “njera”, a kind of sour flat bread. Yields at 1.2 tonnes per hectare were half or less that of other grains in Ethiopia.

“The way that tef has been planted and grown has not changed for hundreds, if not thousands, of years,” Bomba said. “The fact of the matter is that Ethiopia’s farmers had been planting too much seed.”

HABITS OF A MILLENNIUM

Typically, farmers scattered 30 to 50 kg of seed per hectare. But using just 3.5 to 5 kg, alongside planting in rows and using a particular seed variety, boosted output by 50 to 70 percent, said Bomba, who was born in Ethiopia, studied in the United States and Britain, and spent 10 years with JPMorgan investment bank.

Initially, just two farmers were willing to work with ATA, but take-up of the new practices has steadily increased. In 2014, 2.1 million farmers adopted the techniques, although the rest of 5 million trained were still too wary to employ them.

Rising output has driven down market prices of tef to the equivalent of about $60-$75 per 100 kg from $85-$100. Higher yields also mean farmers can switch some of their land to other crops or even grow a second crop of pulses on the same tef land.

Exports of tef, which are banned to avoid domestic shortages, could start on a small scale by the end of 2015 or 2016, Bomba said, although safeguards would be in place to protect local supplies.

Yields of wheat, maize and other crops have also improved. Wheat production has climbed almost 8 percent a year since 2006, and reached 3.9 million tonnes in the year 2013/2014, meeting more than 85 percent of domestic needs. ATA is also studying the nation’s soil to improve fertiliser use.

Reflecting the strong hand of state in other areas of the economy, spreading better practices has relied on a government network of 60,000 so-called “extension workers”, who help with training. ATA is also spreading ideas by mobile phone.

Just as Ethiopia’s industrial drive has drawn heavily on Asia’s experience, ATA was created after studying how nations such as Malaysia and South Korea grew. Bomba led that study when he was working at the Bill & Melinda Gates Foundation, a philanthropic organisation that still partly funds ATA.

Roads and railways were the “shiny objects” that often captured the world’s attention, he said, “but at the end of the day the backbone of this country remains the agricultural sector.”

http://www.trust.org/item/20150202143917-x0tex/

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Ethiopia may save USD 1 billion due to fall in oil prices

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Ethiopia could save a billion dollar due to the global oil price fall according to Zemedeneh Negatu Managing Partner of Ernst & Young.

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The significant decrease in oil price that has affected African countries either positively or negatively depending on whether they are oil importers or exporters was among several economic issues that were raised at the Emerging Africa Summit held at the UNECA on Thursday, January 29, 2015.

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“While the global oil price drop has affected different African countries in different ways, Ethiopia is one of those countries that is benefiting from it” he said.
“Ethiopia, which is an oil importer, will save at least a billion dollar if oil price stays below 50 dollars per barrel for the next 12 months, as it is speculated. And luckily for Ethiopia, the price of its main export item, coffee, has gone up significantly in the world market in different exporting seasons. In addition to that, the very successful bond the country had issued in the international financial market has drawn satisfactory returns. You can see that Ethiopia is one of those countries that is actually benefiting from the simultaneous collapse of oil price and the increase in coffee prices,” Zemedeneh said.

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Among countries that has been negatively affected by the oil price drop has been Nigeria which is an oil exporting country. “I was in Nigeria a month ago and there is a serious concern because the country is on the losing end of the situation. The issue needs to be analyzed based on who is importing what and who is exporting what, and that is how we actually should tell the African story of the impact,” Zemedeneh stated.

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Listing further positive circumstances Ethiopia is in, he also said that he expected the yields on the Ethiopian Eurobond to be fairly stable.
The opportunities and risks of investing in Africa were among the many discussion points that were raised at the Emerging Africa Summit that lined up several high profile speakers well known in the finance, investment and economic sectors.
“The development of the economy in Ethiopia is significant; the size of the population is amongst the highest in Africa. There is a big agricultural economy here with a huge amount of opportunity. There is a lot of interest on Ethiopia from a lot of investors,” stated Colin Coleman, Managing Director of Goldman Sachs South African Office.

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Coleman also stated that there is a significant amount of multinational and private equity firms who are interested in growing their African footprint. “The next 50 years in the world is going to be a very significant time for Africa and a real opportunity for the continent to make its mark in the world, in a way similar to China had done it 30 or 50 years ago,” he said.

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According to an analysis by Goldman Sachs, Sub-Saharan Africa incremental growth could add 12 trillion dollars to the world’s economy in the next fifty years. Nigeria would be a 4 trillion dollar economy and South Africa would grow to a 2 trillion economy from the current half a trillion economy both.
“There is a lot of dynamism in the technology space, in communication, retail, consumer and oil and natural resource trades. Regional integration is very important because the markets of the various African countries are too small by themselves to compete. Infrastructure is needed to make people, goods and services move across Africa more seamlessly,” Coleman has commented of assignments that lay before Africa’s growth.

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There is a growing interest in Africa from investors but that is not to say there are no risks, said Oumar C. Seydi, Director of International Finance Corporation (IFC) for Eastern and Southern Africa. “There is still perception gap. We also have significant challenges such as Ebola which we are fighting very hard to tackle. The legal regulatory framework also has challenges we need to work on. We also still have skill gap despite there being a lot of improvement, and this is also the place where we have the largest number of countries that are classified as fragile and conflict affected. These are challenges that we continue to face and must address but, overall, the trend is very hopeful,” Seydi stated. He also stated that Ethiopia continues to be the sleeping giant and the country can be far more successful given the significant prospects that are coming to the country.

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It was stated that investors need to keep in mind several things when exploring opportunities of investment in Africa. Among these is understanding that the continent is filled with countries with significant difference in their investment landscape. It was also stated that investors need to have an established presence to assess opportunities and get a clear view of the prospects within countries of their interest.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4900:ethiopia-may-save-usd-1-billion-due-to-fall-in-oil-prices-&catid=35:capital&Itemid=27

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Revolutionizing agriculture in Ethiopia: Dal to lead $18 million development project

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Approximately 80-85 per cent of the country’s population is employed in agriculture. The country has the largest livestock population in all of Africa, and agriculture contributes more than 40 per cent of the country’s total GDP. But the country is both heavily populated and economically poor — the second poorest country in sub-Saharan Africa, in fact. There’s widespread food insecurity, limited social support for and acceptance of women, and 30 per cent of the country’s 85 million people live on less than $1.25 US a day.

Improving Ethiopia’s economy and addressing the poverty of its people both depend a great deal on growth — in all meanings of the word.

For more than 10 years, Dalhousie’s Faculty of Agriculture has had strong collaborative partnerships with Ethiopian agricultural institutions, working together to increase the country’s agricultural capacity. Now, a new international development project will take those partnerships to a whole other level.

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Ethiopia, Russia to strengthen cooperation in trade, business

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Addis Ababa, 2 February 2015 - Foreign Affairs Minister Dr. Tedros Adhanom met with Mikhail Boganov, Special Representative of the President of the Russia Federation for the Middle East and Africa countries and Deputy Minister of Foreign Affairs of the Russian Federation on Friday (January 30).

The two sides discussed bilateral and political relations, and trade and investment partnerships between Ethiopia and Federation of Russia.

Boganov, who noted the historic ties between the two countries, and emphasized the Federation’s interests and concerns in Africa, welcomed Ethiopia’s role on the continent.

Following the recent visit of the Speaker of the House of Federation, Kassa Teklebirhan, to Russia, Boganov stressed the need to create partnership between the two parliaments.

He also underlined the need to widen trade and business cooperation and specifically mentioned Russian plans to become involved poultry and food security investments in Ethiopia as well as the expanding market for Ethiopian coffee in Russia.

Boganov also spoke of possible cooperation for training of personnel in various areas.
Dr. Tedros agreed that Ethiopia and the Russian Federation had an excellent and cordial relationship that should be encouraged and nurtured.

With regard to trade and investment, he felt that growth was slow compared to the potential.

In order to have a strong long term relationship it was important to let investment and trade have a key role, and Russian investment to Ethiopia should be increased. The possibility of promoting Ethiopia in Russian publications was raised.

Dr. Tedros suggested a new air service agreement could increase the number of Ethiopian Airlines flights to Moscow.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17380:ethiopia-russia-to-strengthen-cooperation-in-trade-business-&catid=52:national-news&Itemid=291

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ERCA manages to achieve 97.8 percent of its targeted tax collection

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The Ethiopian Revenue and Customs Authority (ERCA) announced a higher performance in collecting tax in the first half of the current budget year, according to a six months performance report.

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Early this week, the authority disclosed that it has gathered 64.66 billion birr in the past six months starting July 2014, achieving 97.8 percent of its target. The authority targeted to collect 66 billion birr in the sated period. Even though the six months performance was lower by 2.2 percent, it surpasses the performance of last year’s similar period by 21.2 percent.  According to the report, out of the total amount 27.6 percent is secured from direct tax, while 70.8 percent was generated from indirect tax.

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Efrem Mekonnen, Public Relation Head of ERCA, said that the authority has collected 36.6 billion birr (56.5 percent of the total revenue) from Inland Revenue and 28 billion birr (43.4 percent) from international trade. The authority has also earned 63.5 million birr from lottery issuance. ERCA which is mandated to collect the Addis Ababa city’s revenue has achieved 76 percent of the planned income.  The authority’s public relation head said that out of the 12.3 billion birr estimated to be collected from Addis Ababa city, 9.4 billion birr has been realized.

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Parliament has approved a federal government plan to collect 115.9 billion birr in the budget year, while ERCA planned to collect more, 134.2 billion birr.
In the stated period, ERCA has collected 69,715 new finger prints that increased the total deposit of collected finger prints to 2.5 million.
One thousand eight hundred seventy complaints have been submitted by tax payers during the six months and ERCA has given response to 98 percent (1,849) of the cases, according to ERCA public relation head.

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ERCA has included additional five companies on its ‘authorized economic operators (AEO)’ list increasing the number of authorized tax collection agents to 21 in the stated period. The authority also stated that in the six months ERCA has given 30 billion birr worth tax free incentive for companies that are mainly engaged in the manufacturing and agriculture sectors.

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The authority is one of the public offices that has high staff turnover. In the past six months, 904 employees left the authority. According to Efrem, over 88 percent of the employees left ERCA based on their personal interest, while three percent were fired due to misdemeanor. Sources said that insecurity is the top factor that drives out the employees. Fear of corruption allegation and lack of confidence are part of the reason for employees to flee from the authority.

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ERCA losses at least 1,000 employees annually, but it also hires larger number of new employees than the deserters.  In the first half of this budget year, it hired 2,158 new employees.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4905:erca-manages-to-achieve-978-percent-of-its-targeted-tax-collection&catid=35:capital&Itemid=27

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ZTE, ERCA settles income tax disagreement

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The disagreement between the Chinese telecom firm ZTE (H.K) Limited and Ethiopian Revenue and Customs Authority (ERCA) is settled after the government lifted the penalty and interest fee sanctioned on ZTE by the tax collector. ZTE has been requested by ERCA to pay about 920 million birr taxation arrears, however, the company turned down the request saying  the amount is very high than the actual tax it has to pay for the government.

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The Chinese telecom firm, that undertook the 1.7 billion dollar telecom expansion project in 2010, has been requested by ERCA to pay an income tax of 157 million birr with interest and penalty.

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ERCA claims that ZTE owed 900 million birr in unpaid taxes, penalties and interest out of the total sum of 920 million after the company settled the 20 million birr.
Following an appeal by ZTE to the authority, the amount was reduced to 522 million birr. Yet ZTE has countered that the reduced amount was still high.
ZTE has admitted that it should pay 157 million birr in tax excluding penalties and interest.

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Public Relation Head of ERCA Efrem Mekonnen said that the company and ERCA have agreed to settle the disagreement.
ZTE had also appealed to the Ministry of Finance and Economic Development (MoFED) and the Prime Minister Office to bring a resolution to the contention.
According to Efrem, MoFED, which is the responsible body to lift the interest payment, has accepted ZTE’s claim and override the payment of the interest, while ERCA has also agreed to lift the penalty. “We have lifted the penalty on special consideration and ZTE has agreed to pay the tax within three years,” Efrem added. He explained that the company has started paying the cash on a monthly basis.

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Capital’s effort to find out the exact amount that ZTE will pay to the government in taxation is unfruitful as concerned authorities declined to give information.
Officials at La Gare branch of ERCA, who are responsible to examine such kind of cases, declined to give any statement on the issue.
ZTE officials also declined to comment on the issue.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4907:zte-erca-settles-income-tax-disagreement-&catid=54:news&Itemid=27

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French company to commence Addis Ababa city new sanitary landfill construction

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The French company,VINCI Grands Projets, is set to start construction of the 13,145,020 Euros Addis Ababa city new sanitary landfill.

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What If You Could IPO An African Country? These Are The Three To Bet On

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VENTURES AFRICA – Record number of firms in Africa are lining up for a potential initial public offering (IPO) in 2015. Baker & McKenzie, a leading law firm, said 30 firms were preparing to list this year. Last year, the 24 IPOS by African domiciled companies were a 33 percent rise in volume and, at just over $2 billion, nearly 225 percent increase in value from 2013.

In sub-Saharan Africa, South Africa, Nigeria and Kenya offer the highest projected IPO values and the best markets for accessing local and foreign investors, particularly spurred by the exit strategy and investment activity of private equity investors focused on the continent. With the boom in private equity fundraising for Africa, the outlook is very bright.

But risks remain with specific African markets disproportionately exposed to the global volatility. Some economists and investors fret that the low oil price, low gas price, and strong US dollar could burden specific African markets in the near term and possibly long term depending on how prices shift by mid-2015 and through 2016.

What if a Country went for an IPO?

All things considered, what would it be like to IPO a country in the current market? Walk with me for moment…The factors used for evaluating an IPO are very transferable to evaluating a target country for an IPO or investment:

• Why go public? (Translated: Why open the market at this moment?)
• What will the company do with the money from the IPO? (Translated: What will the country do with the new foreign direct investment (FDI)?)
• What is the competitive landscape for the company and its relative position? (Translated: How does Country A in sub-Saharan Africa match up against Country B-Z?)
• What are the growth prospects? (Translated: What is the upside growth potential of the country?)
• What is the current profitability? (Translated: Is the country actually turning foreign direct investment into greater returns (i.e., GDP per capita, income growth, etc)?
• What is management like? Does the management team have prior experience running a publicly-traded company and/or a history of success in business ventures? (Translated: Do the leaders of the country have sufficient experience and qualifications to run the country?)
• What are the past operating results? (Translated: What has been the country’s past performance?)

With all the IPO factors translated to be applied to a country, we can formulate a list of the best countries to IPO (or translated: the countries that would garner the greatest value in the public market based on a cross section of factors). This week’s article highlights the top 3 countries on that list:

Rwanda

Rwanda – often called the “Singapore of Africa” – is an investor favorite for all the reasons that would make it an ideal IPO candidate. The country still requires significant investment, particularly in infrastructure. Fully (as lot has been done to date) bridging the infrastructure gap in the county is an instance gateway to unlocking further value in the country’s manufacturing and financial sectors among others.

Rwanda is definitely the little giant in the competitive landscape…its population of more than 11 million is bigger than NYC (~8.4 million) but not by much. Yet it is booming from an economic productivity perspective, best indicated by 7-plus projected growth in 2014 and 2015. On a per capita (PPP) basis, the GDP has grown north of 165 percent in the last 20 years from $575 in 1995 to approximately $1530 in 2015. The smart investor will ask what the distribution on that investment dividend is and statistics show that a significant portion, hovering around 40 percent, still goes to the top 10 percent of the country.

But management, aka Paul Kagama and crew, are making great strides to change that number and lift more people out of poverty. Economic management may be the country’s strongest IPO characteristic. Kagame & Co. have built Rwanda’s brand as a tourism location, an emerging financial and technology hub, and an up and coming bilingual (French and English) services hub. The country is one of Africa’s most technologically advanced countries with a consistently easing environment for doing business. All these factors considered point to an amazing upside for potential investors. Leadership is dedicated to and capable of driving the country towards achieving significant growth in target sectors and has a demonstrated track record, as the numbers indicate.

The caution is to not overpay for the small giant. But this article did not promise a pricing range for the IPO.

Nigeria

Nigeria is an IPO candidate taken from a different view than Rwanda. The country requires significant amount of investment, particularly in infrastructure, similar to Rwanda.

Nigeria may have one of the highest return upsides for capital. The country, due to its size, has Facebook potential:

(1) it has a population north of 175 million,

(2) it is Africa’s biggest oil exporter and (usually forgotten) has the biggest gas reserve in Africa; and

(3) it has one of the most technologically advanced and entrepreneurial populaces in Africa. And from a financial standpoint, the naira is significantly undervalued with a low oil and gas price environment hanging above its head…in other words, any investor is buying in at a cheap foreign exchange rate with all expectations of a higher naira value in the future.

On a per capita (PPP) basis, GDP has grown north of 330 but has a long way to go on a dollar value, especially considering the wealth of resources in the country. As an oil and gas behemoth, the country has not captured the full value in the resource exploration and production value chain. Why is that? That question leads us to the underlying risks (or more so challenges) in Nigeria.

The country has strong leaders. But a consensus has yet to be found among leadership on addressing terrorism in the country, managing oil production in a low price environment, and realizing value in the gas sector. Local entrepreneurs have strived in the euphemistically described “burgeoning wild west” of Nigeria but greater internal financial structure and security from management could push this country’s stock to the front of the pack as an investment opportunity. Its financial, energy and industrial sectors combined could and should be unrivaled by the competition.

Nigeria is a major buy in any market, but especially with a low naira valuation. Expect a low valuation in the current environment with great stock appreciation over time.

Ethiopia

Ethiopia is the equivalent of an early stage IPO – probably before it could get an ideal offer price but still with an immense upside. The country requires significant investment, specifically in its numerous business sectors…although infrastructure is a big need for the country, the country’s leadership is already making great strides in investing in that space.

If Nigeria has Facebook potential, then Ethiopia has WhatsApp potential: (1) it has a population approaching a 100 million and (2) it is one of the world’s fastest growth countries but it lacks (1) the natural resources of other booming African countries (ala Nigeria) and (2) the technological infrastructure of other emerging economies (ala Rwanda). It is euphemistically the emerging app with great upside but many investors are still wondering how success (monetizing in technical terms) will look like in the long run. The country is generally unaffected by changes in oil and gas prices, except for the pseudo tax break it receives on its oil import bill in a low price environment.

Ethiopia banks its growth on a multitude of consumer-driven industries, including manufacturing, financial services and consumer products. The growth is steady but may not have the consistent opportunity to have a 15 percent boom year (i.e., oil rising above a $100 in next six months will not add 33 percent to 66 percent to the revenue line like it could in a Nigeria and Angola). Still, on a per capita (PPP) basis, the country has grown north of 125 percent in the last twenty years.

The country’s management consistently provides strong (not always favored) leadership with the economic management of the country. Criticism is expected on the iron-fist nature of the ruling party. But a lot of credit should be equally handed out for the leadership’s ability to combat terrorism, manage security, and drive growth. There is ample room for improvement with currency management, financial (including debt) management, and guiding the development of the technology and (overall telecom) sector.

All things considered, Ethiopia may not get the ‘Nigeria’ price at this stage…but you may be very surprised how close it will get. It has an upside that is immense albeit not fully spelled out.

Ghana and Angola

Ghana and Angola are tricky countries. One (Ghana) has a significant mining sector with some oil and gas potential. One (Angola) is an oil behemoth that could use growth in non-oil sectors. Both countries are gradually boosting their financial services sectors and have great upside in that sector. Yet one (Ghana) has a currency suffering in the current environment (largely due to some economic miscues) and one (Angola) could soon feel pain if the oil price does not recover. In a dream world, investors probably like to merge the two countries and IPO them together.

But, unable to M&A two countries (or just because it sounds ridiculous to discuss countries in this sense), Ghana and Angola stand as the tricky two countries tied for fourth place on this list (or the honourable mention countries as the first three countries were not ranked). Per capita and GDP growth numbers remain strong and the upside is simply massive because of a growing financial sector supplemented by a strong mining (including oil & gas) sector, major infrastructure improvements, quickly improving energy sectors, and committed leadership. Leadership, for reasons not to be overly indulged, can also be the catch-22 as the International Monetary Fund (IMF) has been critical at differing stage of both countries’ leadership from a financial and economic management perspective and an openness in the market perspective.

http://www.ventures-africa.com/2015/02/what-if-you-could-ipo-an-african-country-these-are-the-three-to-bet-on/

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Ethiopia to construct 11 new universities

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Addis Ababa February 05/2015 –

 The Ministry of Education announced plan to construct 11 new universities during the second growth and transformation plan period, which will begin in the next Ethiopian fiscal year.

Oromia, South Ethiopia and Amhara are among the regional states the universities will be built with the aim of increasing access to higher education, according to the State Minister Dr kaba Urgessa.

Up on completion, these universities will increase enrollment capacity to 600,000 in regular program alone and raise number of higher learning institutions to 42.

Design of the buildings, selecting specific areas for the construction and conducting surveys on the selected areas are being underway, Kaba said.

Construction of the universities is expected to be completed within two years and priority will be given to science fields.

Training of lecturers for these universities will be started next academic year, so as to equip them with skilled labor, he added.

Constructing and equipping these universities will be carried out in accordance with the lessons learnt from the previous practices, the Minister said.

http://www.ena.gov.et/en/index.php/social/item/359-ethiopia-to-construct-11-new-universities

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Ethiopia undertakes activities to boost ties with foreign countries

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Addis Ababa February 5, 2015 –

Prime Minister HaileMariam Desalegn said activities that help to protect the national interest and improve ties with neighboring and other countries undertaken during the past six months.

While presenting his government’s 6 months performance report to the parliament, HaileMariam said activities have been carried out to strength bilateral relation with foreign sovereigns.

He mentioned bilateral talks carried out on various levels with Djibouti, Kenyan, Sudan and Egypt governments so as to boost political and economic ties.

HaileMariam said that his government has been striving to build lasting peace in Somalia.

Ethiopia, as the chair of IGAD, is working to provide peaceful resolution for the crisis in South Sudan, he added, it has been playing its role for the successful conclusion of the peace process.

Following consecutive discussions with the Egyptian authorities and deployment of public diplomacy delegation, the bilateral relation has now shows progress, according to HaileMariam.

The Premier also expressed his hope that the relationship between the two countries will be enhanced further and the suspect on the Egyptian side regarding the Grand Dam will be resolved soon.

http://www.ena.gov.et/en/index.php/politics/item/361-ethiopia-undertakes-activities-to-boost-ties-with-foreign-countries

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“Doing Business in East Africa” held in Washington D.C.

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Addis Ababa, 5 February 2015 (WIC) -

The Ethiopian Embassy along with the Embassies of Kenya and Tanzania and in collaboration with the US Commerce Department, have organized “Doing Business in East Africa,” an after hour Networking Series.

The information exchange event was intended to give the opportunity to network with US trade officials and members of the African diplomatic community. It also envisages an opportunity to hear about the latest momentum around Africa-US trade.

Included in the program was the opportunity to hear important announcements about Trade Winds Africa, the largest ever US- government-led trade mission to Africa, it was learnt.

Ambassador Girma Birru, Special Envoy and Ambassador Extra-Ordinary and Plenipotentiary of Ethiopia to the US, made a remark on the Networking event for the “US Business Development Conference and Trade Mission to Africa in September 2015.

Ambassador Girma noted that although there are some disparities among countries, the recent economic performance of the East African region has been remarkable by international standards. The region is one of the fastest growing regions in the continent, with average GDP growth of 5% in 2013-2014, compared to the sluggish global economic performance of 2.4% during the same period and cited Ethiopia as the third growing success economy in the world.

The region has abundant agricultural and other natural resources and provides ample opportunities for U.S. businesses. With a total population of about 320 million, the region is also a big market for food and other consumer products, he underlined.

Recognizing this immense potential, and as a follow-up to the very successful U.S. – Africa Leaders Summit, convened by President Obama in August 2014, Ambassador Girma punctuated “we are very pleased that the U.S. Department of Commerce is organizing a “Business Development Conference and Trade Mission” to 8 African countries in September 2015″.

The Trade Mission will offer you a unique opportunity to explore, first-hand, the vast business and investment opportunities that exist in Africa in the various areas, the Ambassador Extra-Ordinary and Plenipotentiary, added.
In reference to the African Growth and Opportunity Act (AGOA) which he said has served as the cornerstone of U.S.-Africa commercial relations, AGOA, he underscored has contributed to economic development in the 40 countries that benefit from this program through market access, job creation, and closer commercial ties with the United States.

Increasing number of American companies is recognizing the opportunities that exist in the continent partly through this preference program. Imports of American products (such as Boeing planes by Ethiopian Airlines) have contributed to job creation in the U.S. as well, he proclaimed.

However, he exclaimed AGOA is set to expire at the end of September, 2015. With a new Congress and many issues competing for legislative attention, it appears that AGOA’s reauthorization will not be as seamless as expected, Ambassador Girma expressed his opinion.

Given the necessary lead-time that U.S. buyers need for placing orders (such as in the textile industry), African governments and the private sector are quite concerned the delay in reauthorization of AGOA could result in unnecessary disruptions in commercial transactions between the two sides, the Special Envoy added.

It is paramount, therefore, that a call for action on AGOA needs to be taken by all concerned, particularly the U.S. business community, to ensure the uninterrupted continuation of this landmark trade relation between the U.S. and Africa he emphasized.

“I would like to take this opportunity to express our continued commitment to collaborate with the U.S. Government and the private sector to make the September Trade Mission to Africa a success, thereby contributing to the strengthening of our economic ties,” the Ambassador concluded.

Earlier Antwaun Griffin, Deputy Assistant Secretary of Commerce for US Operations made a welcoming remark. Ambassador Robinson Njeru Gthae of Kenya and Ambassador Liberata Mulamula of Tanzania, to the US have also made speeches pertaining to the occasion.

Present on the event were Ambassadors, Michael Lally, Executive Deputy Assistant Secretary of Commerce for Europe, the Middle East and Africa and John Saylor, Chairman of Virginia-Washington DC, District Export Council, Ambassador Robert Perry, Vice President, Corporate Council on Africa, Jude Kearney Chair Africa Practice, Greenberg Traurig, LLP, Marta Alonso, Verification of Conformity Manager & CCCS Supervisor, BIVAC North America, Bureau Veritas and other invited guests.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17472:qdoing-business-in-east-africaq-held-in-washington-dc&catid=52:national-news&Itemid=291

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Government working to keep stability of macro-economy: Premier

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Addis Ababa February  5, 2015 –

Prime Minister HaileMariam Desalegn said his government is working to keep the macro economy stable so as to maintain the economic growth.

During the past four consecutive years, the nation has managed to grow by 10.1 percent in average.

This year, the economy is expected to grow by 11.4 percent. The industry sector is expected to contribute the lion’s share, 23.7 percent.

Agriculture and services sectors are expected to grow by 8.7 percent and 9 percent respectively.

While reporting his government’s 6 months performance to the parliament, the Premier said “We need to have a stable macro-economy in order to sustain the ongoing economic growth.”

Fiscal and monetary policy measures taken so far helped to keep the inflation in single digit, he said.

Since increasing amount and type of export items is important to improve foreign currency earnings, the government has been working to expand this sector.

Because of this, the revenue earned from export market has increased by 60.3 million USD in this half year from the previous year same time, he said.

The increase in the revenue earned from the export market will help the nation to step by step be free from foreign assistance, HaileMariam said.

Parallel with this, improving domestic saving is important to diversify financial sources, he added. Gross domestic savings has reached 22.5 percent at the end of last fiscal year.

Improving amount of tax collected from domestic sources has also being carried out to improve government’s revenue.

In this regard, 69.5 billion Birr revenue was collected from tax and non-tax items during the six months, he said. Although the performance exceeds the previous year same time, it is below the target.

HaileMariam said activities need to be done to improve and expand tax collecting system so as to increase the revenue.

http://www.ena.gov.et/en/index.php/economy/item/360-government-working-to-keep-stability-of-macro-economy-premier

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Ethiopia launches mobile money schemes to extend banking reach

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* Millions have little access to branches or services

* Schemes will allow payments via mobile phones

* Mirrors model pioneered in neighbouring Kenya

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By Edmund Blair

ADDIS ABABA, Feb 4 (Reuters) - Ethiopian banks and microfinance firms are launching mobile money services, helping reach swathes of the population that now have little access to branches or services, the mobile technology providers and banks said.

The launch of the services, which allow customers to make payments or receive money via a mobile that is linked to a bank account, mirrors technology used in other African nations that has drawn millions of people into the financial system.

Netherlands-based BelCash is offering a technology called helloCash, while MOSS ICT, mainly owned by an Ireland-based firm, is rolling out M-Birr in the nation of 96 million people.

In both cases, Ethiopian banks and institutions will offer the service to customers and hold the cash deposited, in line with government policy that bars foreign firms or banks from investing in the financial sector or the telecoms industry.

“One of the things that the government wants to do is ensure there is financial inclusion,” said MOSS ICT deputy general manager Kidist Negeye, adding M-Birr would help reach rural areas. “Another aspect is the mobilization of domestic savings. The government wants to increase the number of deposits.”

The central bank approved the roll out for M-Birr, which will be offered by five micro finance firms, in December. It already has 5,000 to 6,000 users and expects to add 13,000 in February. Kidist said the potential was “in the millions.”

BelCash’s helloCash service could have 2-3 million users this year and 10 million by 2017 or 2018, the firm’s chief executive Vince Diop said, adding that BelCash would receive a fee for each transaction made.

Two of Ethiopia’s 16 private banks, Lion International Bank and Cooperative Bank of Oromia, as well as a microfinance firm, have signed up for helloCash. Two more banks have yet to submit applications to the central bank, he said.

The pilot project was under way and commercial services should start in about two months, Diop said.

Bankers say Ethiopia has no more than 1,500 ATM cash machines, while there was just over 2,200 bank branches as of June, or one for every 40,000 people, the central bank says. Only one in 10 people have a bank account.

In addition to branches, which are expensive to set up, banks plan to authorise thousands of agents, such as shops or merchants, in line with new regulations. Such agents will be able to take deposits and hand out cash via the mobile system.

Ethiopia’s initiative mirrors the model pioneered in Kenya, where there are now 27 million users in the nation of 45 million. Safaricom, a unit of Britain’s Vodafone , was first with such a service, launched in 2007.

http://mobile.reuters.com/article/idUSL6N0VE44020150204?irpc=932

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Pittards to boost production by threefold

Pittards PLC, British company investing in Ethiopia, disclosed it intends to increase its production capacity by threefold in the coming two years.

According to Pittards Project Manufacturing General Manager, Tsedenia Mekbib, the company made investment in Ethiopia’s manufacturing sector for the first time in 2011 after it bought the government owned Ethiopian Leather Company.

In the past fiscal year Pittards earned USD 4 Million from the export of 100,000 pairs of gloves, Tsedenia explained. She furthered the company is working to boost Ethiopia’s foreign currency earnings by 60 percent.

Currently Pittards manufactures industrial and fashionable gloves, leather garments and jackets.

Its factory, upon establishment, had 80 employees. Yet this figure grew to 700 workers and it is still trying to increase the number of employees to 1500.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17440:pittards-to-boost-production-by-threefold&catid=52:national-news&Itemid=291

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BIG PICTURE – KEFI Minerals advancing rapidly to mine development in Ethiopia

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By Ian Lyall

Since taking control of the asset, KEFI’s team has presided over a 50% rise in the resource base with an increase, rather than fall in the grade

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Ethiopia bets on grand projects in drive for industrial power

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A labourer walks alog a Metro-line construction in Ethiopia’s capital Addis Ababa

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By Edmund Blair and Aaron Maasho

ADDIS ABABA (Reuters) - Chinese workers mingle with Ethiopians putting the finishing touches to a metro line that cuts through Addis Ababa, one of a series of grand state infrastructure projects that Ethiopia hopes will help it mimic Asia’s industrial rise.

Brought to its knees by “Red Terror” communist purges in the 1970s and famine in the 1980s, Ethiopia has been transformed in the last quarter century, becoming one of Africa’s fastest-growing economies.

At the heart of the state’s “Growth and Transformation Plan” are railway, road and dam projects to give the landlocked nation cheap power and reliable transport, as well as the metro line – the first urban light railway network in Sub-Saharan Africa.

“This is the future,” said Abate Yaye, 27, from the poor south as he helped complete the $475 million system being built by China Railway Engineering Corp, much of it on concrete stilts to keep it above the crowded streets of an expanding capital.

“We will become an example for the whole of Africa.”

Hefty state-led investment has kept the economy of Africa’s second most populous nation growing at more than 8 percent a year for over a decade, but economists say Ethiopia’s rulers need to relax their grip and give room for more private enterprise to maintain momentum.

Foreigners cannot invest in banking and telecoms and foreign retailers are barred, while Ethiopian banks are directed to buy low-yielding government development bonds.

“This is a country where, relative to rest of Africa, there is pretty good state capacity and a commitment to a development mission,” said S. Kal Wajid, the outgoing Ethiopia mission chief for the International Monetary Fund.

But he said private business needed room to grow and generate income so the economy could reap greater benefit from the new projects. “Where you are making a lot of infrastructure investment, there is a risk that the pay-off may not be as big as you thought,” he added.

DEBT LIMITS

Others in Africa have looked with envy at Asia’s inexorable rise but few governments, if any, have proven as single-minded as Ethiopia has in mobilizing its resources in a bid to turn an agrarian nation of 96 million people into a manufacturing hub.

Yet it comes at a cost. The IMF said last year Ethiopia was “on the cusp” of shifting from low to moderate risk of debt distress. Total debt at about 50 percent of gross domestic product was still manageable, but tougher if it rises much more.

“In the next five-year plan, there should be a clear indication of a change of emphasis and a significant emphasis on the private sector,” said Wajid, referring to the next Growth and Transformation Plan starting in July.

The government insists it will not rack up unsustainable debts because funds are used to finance infrastructure and other projects such as sugar factories and industrial zones.

Investors also say Ethiopia benefits from better security than others in a region blighted by Islamist militant attacks. And few executives cite corruption as a big hindrance in business, although it can be elsewhere in Africa.

But Ethiopia is no model for political and media freedom – there is just one opposition party member in the 547-seat parliament and international rights groups say the authorities muzzle critics. The government insists politics is open to all and that it allows free speech.

The current five-year growth program ends in June and the government has given little away about the next plan. But it remains clear about its economic goals.

“Without investing in infrastructure, it is now abundantly clear that Africa cannot sustain growth,” Finance Minister Sufian Ahmed told Reuters in December.

Sufian’s deputy Abraham Tekeste said this month the new plan would likely continue “most of the priorities” of the last one.

The government can point to a list of investors suggesting its formula works. Clothes retailer Hennes and Mauritz (ST:HMb) is starting to source supplies from Ethiopia, consumer goods maker Unilever (L:ULVR) is building a factory, Diageo (L:DGE) and Heineken (AS:HEIN) have bought breweries.

U.S. private equity giant KKR invested in a flower farm last year while an Ethiopian winery is among the investments of 8 Miles, an African-focused fund chaired by singer Bob Geldof who launched Live Aid to help Ethiopian famine victims.

LIMITED ROOM

The government’s ban on foreign retailers is aimed at encouraging local manufacturing, to cut back on imports, not wanting a consumer culture that could drain foreign exchange.

Central bank foreign reserves barely cover two months of imports – an inadequate level, according to the IMF. Other east African states have at least four months.

The government says it wants to keep banks in the hands of Ethiopians and telecoms controlled by the state as the sectors provide funding for national projects such as infrastructure. Earnings from the state telecoms monopoly are helping fund a railway linking Addis Ababa to a port in Djibouti, for instance.

But that leaves few domestic funds available in the market for businesses that could create jobs in future.

“If they are looking at achieving their goal of being a middle-income country and getting employment, you must enable access to financial options,” said James Kanagwa of pan-African lender Ecobank (LG:ETI), one of half a dozen foreign banks with representative offices in Addis Ababa but barred from commercial work.

Ethiopia, with average annual per capita income of $470, aims to reach middle-income status by 2025, which the World Bank says starts at $1,046.

For now, even Ethiopian banks have limited room for maneuver. They must invest the equivalent of 27 percent of their loan portfolio in the development bonds, hindering their ability to lend to the private sector.

“The lending capacity of banks is growing very slowly,” said Mulugeta Asmare, president of Bank of Abyssinia, one of 16 private banks in a sector dominated by state-owned Commercial Bank of Ethiopia.

Banks must rely on equity and deposits for funding, in a nation where only one in 10 people have a bank account, because there is no developed capital market.

After launching a debut $1 billion Eurobond in December, Prime Minister Hailemariam Desalegn said tapping international markets did not herald “liberalizing the financial sector”.

“If you have an efficient effective state development model, great,” Colin Coleman, managing director for Goldman Sachs based in South Africa, told a conference in Addis Ababa last month.

“But you must allow businesses to develop in order to get the dynamism in the economy.”

http://www.investing.com/news/stock-market-news/ethiopia-bets-on-grand-projects-in-drive-for-industrial-power-327096

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Ministry of Transport says finance for national railway network not secured

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The Ministry of Transport (MoTr) on Tuesday revealed that the construction of the Ethio-Djibouti railway project is on schedule; however, other railway projects, which are part of the planned nationwide railway network, have not secured the required loans except one which is partially financed by the Government of India.

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Ethiopian PM Calls For ‘Economic Integration’ With Djibouti

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AFRICANGLOBE – Ethiopian Prime Minister Hailemariam Desalegn on Sunday called for enhanced efforts for further cementing economic integration with neighboring Djibouti.

The Ethiopian Premier made the call during an address to the Djiboutian Parliament in which he lays out the strategic objectives of economic integration between the two Horn of Africa countries and the region as a whole.

The region, Desalegn said, would be better off integrated considering the comparative advantages there are in each country to share with the other.

“What we have is shared by you for greater unity and integration,” he told the Djiboutian MPs.

He said that the Ethiopian government would pursue the cause of integration with Djibouti “with singular dedication”.

“I hope and expect this will be reciprocated by our Djiboutian brothers and sisters,” said Desalegn, who arrived in Djibouti on Saturday to attend a meeting of the Ethiopian-Djibouti joint commission.

There have been flagship projects linking the two countries of which electric power sharing and railway link are notable ones. Ethiopia has already begun exporting electricity to Djibouti.

“Let the rest of the world learn from our example,” Desalegn said, indicating the need for the two countries to further enhance cooperation towards long-term strategic objectives.

“We need to learn to sacrifice short-term benefits for long-term gains for the benefits of the peoples of Djibouti and Ethiopia,” Desalegn said.

“Rest assured [that] we will both shine in region as pillars of regional integration,” he said.

Ethiopia uses the port of Djibouti for exports and imports.

Following his address, the Ethiopian Prime Minister visited the port and the Djiboutian Free Zone.

http://www.africanglobe.net/africa/ethiopian-pm-calls-economic-integration-djibouti/

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Tripartite trade leaps threefold in a decade

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COMESA Secretary General and Chairperson of the COMESA-EAC-SADC Tripartite Taskforce Sindiso Ngwenya disclosed that intra-regional trade among the three Regional Economic Communities (RECs) has grown threefold in a period of 10 years from 2004 to 2014.

Giving an update on the Tripartite Free Trade Area negotiations to the African Union (AU) High Level Trade Committee (HATC) at the 24^th AU Heads of State Summit, in Addis Ababa, Ethiopia, Ngwenya said growth has taken place on the basis of the individual Free Trade Areas (FTAs) of the three RECs.

He said the combined intra-trade of the three RECs for the period grew from US$30.6 Billion to US$102.6 with COMESA recording growth from US$8 billion to US$22 billion, SADC from US$20 billion to US$72 Billion and the EAC with US$2.6 billion in 2004 growing to US$ 8.6 billion by 2014.

“I am confident that the establishment of the COMESA-EAC-SADC FTA would follow the same growth path, however at an accelerated growth pace and, supported by infrastructure and industrialization programs”, Ngwenya said.

In order to launch the establishment of the African Union Continental Free Trade Area (CFTA), Ngwenya proposed the initiation of negotiations for the establishment of a free trade area between the Tripartite (COMESA-EAC-SADC) on one hand and the Economic Community of West African States (ECOWAS).

Namibia Minister of Trade and Commerce Carl Hermann Schlettwein called for unity of purpose by member states and the need to speak with one voice particularly with regard to World Trade Organisation (WTO) negotiations.

Mr. Schlettwen said there was need for flexibility by the United States on the African Growth and Opportunity Act (AGOA) to facilitate the participation of African countries.

AU Commission Deputy Chairperson Erastus Mwencha congratulated the Tripartite members for the progress being made in establishing the Free Trade Area.

Mwencha urged members of the Tripartite not to be pessimistic by looking at what happened under the Doha Development Agenda where the promise of trade for the integration of less developed countries under the WTO multi-lateral system was not realized.

“As we approach the Tripartite Free Trade Area, some people come with a mindset of a zero sum game. We can fast track the FTA through the coalition of the willing”, he said.

Mwencha called for unity of purpose adding that no member state should remain behind when the implementation of the Economic Partnership Agreements (EPAs) starts.

And Chairperson for AU High Level Trade Committee (HATC) and Ghana’s Republican President, John Dramani Mahama disclosed that the Tripartite Free Trade Area will be launched in June 2015.

Mahama said between now and the launch, there was need to work hard to achieve the dream of our forefathers to attain African unity.

http://www.comesa.int/index.php?option=com_content&view=article&id=1426:tripartite-trade-leaps-threefold-in-a-decade-&catid=5:latest-news&Itemid=41

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Ethiopia, Canada celebrating 50 years of diplomatic relation

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Addis Ababa, 9 February 2015 - State Minister of Foreign Affairs, Dr Yinager Dessie met with Malcom Brown, Deputy Minister of Canada for International Cooperation on Saturday (February 7, 2015).

The two Minister’s discussion dwelt on bilateral and regional maters of mutual interest.

On the occasion Dr. Yinager Dessie noted that Ethiopia and Canada are commemorating 50 years of friendship this year with great satisfaction and immense optimism of a bright future ahead.

He said the longstanding relationship of Ethiopia and Canada is underlined by a warm feeling of friendship by the people and Government of Ethiopia towards Canada.

Doctor Yinager briefed Malcom Brown about the rapid and inclusive growth of the Ethiopian economy which registered double–digit economic growth for the past 10 years.

Business Mission to Ethiopia taking place February 21-25, 2015. Details here: http://www.ccafrica.ca/economic-mission-to-ethiopia.html

Speaking about growing economic ties between the two countries, he appreciated the Government of Canada, the Canadian embassy in Ethiopia, Canadian Council for Africa for working closely with the Ethiopian Ministry of Foreign affairs of Ethiopia by implementing the follow up action plan which is the outcome of the Canada Africa business summit held from September 15-18, 2014 in Toronto.

He extended his appreciation and gratitude to the contribution made by the Canadian Government in the areas of food security, health and good governance while also hailing the selection of Ethiopia as Canada’s country of focus for cooperation through Canadian International Development Agency (CIDA).

He also expressed Ethiopia’s keenness to learn from Canada’s experience in hydropower development, construction technology health and generally enhancing cooperation on economy.

Dr. Yinager briefed Ethiopia’s role in bringing peace and stability in the region and current political and security situation in Somalia and South Sudan.

Mr. Malcom Brown, Deputy Minister for International Development of Canada, acknowledged the overall progress Ethiopia made in achieving development.

Discussing the upcoming national election, he hailed the active and wide participation of the public in voter registration and expressed his hopes all actors would work towards ensuring free and fair election.

Dr. Yinager affirmed the Ethiopian Government’s readiness to ensure that the election is conducted in peaceful, free and fair manner reflecting the will of the people.

He also pledged that Canada will further enhance the Ethio- Canada and Canada- Africa cooperation in all sectors. He went on to note that Canada’s desire to engage in mining sector In Ethiopia and share its vast experience in hydroelectric power generation.

Malcom Brown lauded Ethiopia’s effort in bringing peace and stability in the region and reiterated Canada’s desire to work with Ethiopia in peace and security issues.

The two sides exchanged views in the great contributions made by the Government of Canada to Ethiopia and other African countries in development assistance at all levels.

They also discussed the ongoing activities in upgrading the cooperation between the two countries from the developmental cooperation to a more robust economic cooperation.

The two sides pledged to continue engaging in extensive activities that broaden and deepen the bilateral relation.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17523:ethiopia-canada-celebrating-50-years-of-diplomatic-relation-&catid=52:national-news&Itemid=291

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Ethiopian to order 20 wide-body aircraft

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Addis Ababa, 9 February 2015 - With a view to boosting its long-haul fleet, Ethiopian Airlines is going to place firm orders for 20 wide body aircraft.

Ethiopian Airlines Group CEO, Tewolde Gebremariam, told The Reporter that his management is evaluating the Boeing’s new aircraft under development B777X and the Airbus A350-1000. “We are evaluating both so that they have to compete,” Tewolde said.

According to him, the evaluation started last month and will be finalized after three months. The number of aircraft could be 15-20, according to Tewolde.

Ethiopian fleet is dominated by Boeing aircraft. Currently, the national flag carrier operates B787, B777, B767, B7575, B737, MD11 and Bombardier Q400 aircraft. For the first time in its long history, Ethiopian had placed orders for Airbus aircraft in 2009. Ethiopian ordered 14 A350-900, Airbus’ new jetliner. Delivery of these aircraft would begin next year.

According to Boeing, the 777X is Boeing’s newest family of twin-aisle aircraft that builds on the passenger-preferred and market-leading 777. Boeing Commercial Airplanes in November 2013 launched the airplane at the Dubai Air Show with 259 commitments from four customers. Production of the 777X is scheduled to begin in 2017 and first delivery is targeted for 2020. The unit cost of B77x is 360 million dollars.

A350-1000 is Airbus’ newest jetliner. Measuring nearly 74 meters from nose to tail, the A350-1000 – scheduled to enter service in 2017 – is the longest-fuselage version of Airbus’ all-new family of wide-body jetliners designed for high efficiency, maximum reliability and optimized performance.

According to Airbus, in a typical two-class configuration, the A350-1000 seats a total of 369 passengers. “Combined with a range of 8,000 nautical miles, this represents a significant revenue-generating advantage for operators,” Airbus says. The aircraft also can be configured for a higher-density layout to accommodate up to 400 passengers.

Last Sunday Ethiopian took delivery of its newest B787-8 Dreamliner aircraft it leased from a US-based leasing company, IFLC. After flying 16 hours direct from Seattle, Everett, the brand new Dreamliner arrived at the Addis Ababa Bole International Airport around noon. Two Ethiopian captains and two first officers flew the aircraft direct from Seattle to Addis Ababa. The aircraft transported medicines and medical equipment donated to hospitals in Ethiopia and Somalia free of charge.

Ethiopian is the third airline in the world to own and operate Dreamliner aircraft next to All Nippon Airways and Japan Airlines in 2012. The largest African carrier in terms of revenue and profit own ten Dreamliner aircraft, which makes it the largest Dreamliner fleet operator in the continent. The new one has full flat seats in the business class cabin and the latest entertainment technologies.

Government officials, including US Ambassador to Ethiopia, Patricia Haslach, business-class customers, representatives of Boeing and General Electric (GE) and board members and senior management members of Ethiopian attended the arrival of the jetliner.

At the reception held at the VIP saloon, Tewolde said that the Dreamliner was a state-of-the-art aircraft. “It is our core fleet and very popular among our customers. We have more load factor on the routes we operate Dreamliners,” Tewolde told the invited guests.

Though Ethiopian needs to order for more Dreamliners, it was unable to find slot at Boeing as the US aircraft manufacturer is fully booked. Subsequently, the airline leased three B787 from ILFC. The two will arrive in Addis Ababa in March and April this year.

Ambassador Paricia Haslach said that Ethiopia was the second country in the world next to Japan to own and operate the Dreamliner aircraft. The Ambassador said that Ethiopian was African best airline. “I am sure that I will see the B777x in Addis Ababa,” she added.

Currently, Ethiopian operates 80 aircraft. The airline plans to double the number by 2025. The airline is implementing a 15-year strategic plan dubbed Vision 2025 aimed at making Ethiopian a leading aviation group comprising seven profit units. The airline anticipates to own 150 aircrafts, serves 92 international destinations and carries 18 million passengers by 2025. “Five years into the implementation of Vision 2025, we have exceeded all the parameters,” Tewolde said. Ethiopian has 43 aircraft, including 14 A350-900 and 20 B737MAX on its order book.

The airline flies to 84 destinations in five continents – 50 of them are in Africa. The national carrier will soon launch new flights to Tokyo, Manila, Dublin and Los Angeles. Last June, the International Air Transport Association (IATA) ranked Ethiopian the largest and most profitable airline in Africa.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17550:ethiopian-to-order-20-wide-body-aircraft&catid=52:national-news&Itemid=291

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KfW IPEX-Bank, AFD to financing Ethiopian new cargo Terminal

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Addis Ababa - KfW IPEX-Bank is financing the export of the technical interior equipment of the new air cargo terminal at Addis Ababa international airport with a loan amounting to EUR 32.8 million.

http://www.fanabc.com/english/index.php/news/item/2170-kfw-ipex-bank-and-afd-are-financing-ethiopian-airlines-new-cargo-terminal

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Ministry to Grant Mining License to ASCOM Mining

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Addis Ababa, 9 February 2015 – The Ministry of Mines (MoM) is going to grant a large-scale gold mining license to Ascom Mining, an international mining firm engaged in primary gold exploration project in the Benishangul Gumuz Regional State in south-west Ethiopia.

ASCOM is a multinational mining company involved in prospecting for gold in Benishangul Gumuz Regional State, Assosa Zone, Sherkole Wereda, Shungu and Nazali localities since 2009.

The firm made a discovery of a large amount of primary gold in the license area covering 268.17 sq.m of land in a mountain commonly known as Dish Mountain. It was in March 2014 that ASCOM’s experts made presentation about the gold discovery to officials of the MoM in Addis Ababa. The gold deposit is projected to be over 70 tons.

The Minister of Mines, Tolossa Shagi, told The Reporter that experts of Ascom presented progress report to the ministry twice. “We have informed them to expedite work on the feasibility study,” Tolossa said. According to the minister, once the company finalizes the feasibility study the ministry will review the study and grant the large-scale mining license to the company.

“They have confirmed the presence of the resource. They are now working on the final feasibility study. Once they have submitted the final study we shall grant them the mining license,” the minister told The Reporter.

It was on November 20, 2008 that ASCOM secured a gold and base metals exploration license after Ariab Gold Mining Plc, Sudanese and Ethiopian JV Company, transferred it to the former.

Shareholders of ASCOM Mining Ethiopia Plc are ASCOM Precious Metals BVI, holding 96 percent of the company, and Ariab Gold Mining Plc, owning the rest, 4 percent. Shareholders have different nationalities and are from Sudan, Egypt, the Middle East and other North African countries. In addition to the Benshangul Gumuz site, ASCOM has another exploration license in Ethiopia, in the Gambella Regional State.

Thus far the only company engaged in a large-scale gold mining in Ethiopia is MIDROC Gold. Nonetheless, two years ago in 2012 another firm, Ezana Mining Plc, secured a large-scale gold mining license from the Ministry of Mines.

Panel names Ethiopia one of top sources for illicit financial flow

Mobile Money Moves to Ethiopia

WIPO Extending 4 Million USD Scientific, Technical Information Assistance to Ethiopia

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Addis Ababa February 9, 2015 - Ethiopia and other least developed countries are each accessing 4-million-USD yearly based cost of World Intellectual Property Organization’s (WIPO) scientific and technical information to their development.

This was disclosed by WIPO Director of Division for Least Developed Countries, Kifle Shenkoru.

He told ENA that the organization has established an information and technical center, which has been benefiting developing countries through training and financial aid to stimulate their socio-economic development, in Ethiopia.

According to the director, WIPO is supporting Ethiopia and the other countries by providing training entrée that permits them to access scientific and technical information worth 400,000 USD annually.

Currently, Ethiopia is finalizing its National Innovation and Intellectual Property Policy and Strategy which will help encourage the country’s creative, innovative, and inventive activities in agriculture, trade, and environment, among others.

In this regard, WIPO is facilitating and coordinating various activities as per the request of the Ethiopian government to finalize its National Innovation and Intellectual Property Policy and Strategy, he said.

Even if Ethiopia is a member of WIPO and participating actively, it has not signed many of the agreements, it was indicated.

Ethiopian Intellectual Property Office (EIPO) Acting Director-General, Girma Bejiga, said on his part the National Innovation and Intellectual Property Policy and Strategy has reached its final stage to be ratified by the government.

A three-day meeting under the motto of “Finalization of the National Innovation and Intellectual Property Policy and Strategy for Ethiopia” was opened here today in Addis Ababa.

http://www.ena.gov.et/en/index.php/component/k2/item/376-wipo-extending-4-million-usd-scientific-technical-information-assistance-to-ethiopia

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Mamo Kacha family to join hotel business

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Mamo Kacha, a family-owned-and-run business named after Mamo Yenberberu, the renowned businessman in the logistics and export trade businesses, is collaborating with Collier International to develop two hotels which would be rated at 4.5 to five stars. 

Yenberberu Mamo (Abbey), managing director of Mamo Kacha, told The Reporter that they are planning to build the first hotel on a 2,300 sq.m plot that they had inherited from their late father. The plot is located close to the African Union headquarters and is currently owned by the company.

Abbey said that the UK-based Collier International has been hired to conduct feasibility studies which would be finalized in a couple of months. Collier International, apart from working on feasibility studies, is handling architectural designs and necessary details the star-rated hotels would require. Abbey recalls that the relationship his firm established with Collier International began after both parties attended the 2014 Africa Hotel Investment Forum (AHIF) here.

The construction of the hotel is expected to be finalized and operational in early 2018. According to Abbey, though it is too early to talk about the financial details of the project, the company is set to invest the required sum as the hospitality industry has become lucrative. At a location in Yeka sub-City, the family owns another property where they plan to erect a special boutique hotel which is also expected to be rated 4.5 to five stars. This hotel, according to Abbey, would most likely be run by giant hotel brands such as Hilton Worldwide or Sheraton Group.

The Mamo Kacha family is known for owning and running various businesses in Ethiopia and the US. Among others, 300 gas stations, cab services and real estates are some of the ventures the family is engaged in. Established 75 years ago, Mamo Kacha is also well known in Ethiopia. Abbey’s brother, Eyob (Joe) Mamo, is known as a gas station mogul in the US and is owner and CEO of privately held Capitol Petroleum Group, which controls 42 percent of Washington, DC’s, gas stations

The Africa Hotel investment Forum was hosted last year in Addis Ababa, bringing together some 520 industry players and big faces of the industry. The AHIF-2014 was successful in bringing about signings of six major hotel contract managements to be started here.

That same forum has been announced to be held again this year. The well-known UK-based event organizer, Bench Events, was officially launched on Tuesday that the 2015 forum is taking place from September 29 to October 2 here. Neway Berhanu, managing director of Calibra Hospitality Consultancy Company, which was instrumental to bring the much-echoed forum to the country, is also finalizing deals to open three international brand hotels here.

Neway told The Reporter that his company has been in contact with three global players to work together with local investors. However, Neway declined to mention the names of the brands and the local companies. In addition to Sunshine Construction, which is jointly working with Marriot, it is expected to open a five-star hotel around Mesqel Square in the foreseeable future.

The upcoming AHIF is expected to gather 650 delegates of whom some 200 are said to be local participants. During the launching press conference, Fistum Arega, director general of the Ethiopian Investment Commission (EIC), who also chairs the newly-established Ethiopian Tourism Organization, said that the government is considering re-evaluating the incentives provided to the hotel and tourism sector. He said that access to land, finance, duty-free incentives will be revised soon.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3131-mamo-kacha-family-to-join-hotel-business

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Kuriftu spreads wing to Djibouti

09 Feb 2015 Meseret Bekele

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Addis Ababa February 9, 2015 – The Boston Partners plc, the Ethiopian company known for building Kuriftu Resorts, is going to construct a resort in Musha Iseland, a small island off the coast of Djibouti with a bid to expand the establishment of Kuriftu resorts to East Africa.

Ethiopia’s Prime Minister HaileMariam Desalegn and Djiboutian President Ismail Omar Guelleh were present during the inauguration of the construction of the resort.

The resort, which is an extension of the Kuriftu Resort and Spa, will consume 7 million USD, according to the owner Tadiwos Getachew Belete.

Up on completion after a year, the resort will have 30 presidential suits, two villas and 120 rooms.

This island will help to provide full service for tourists who want to visit Ethiopia and Djibouti by combining natural, historic and cultural heritages of Ethiopia with a “blue sea, white sand and sea food” in Djibouti, he said.

This is the first resort outside Ethiopia for Boston Partners that has six resorts in various parts of the country including in Addis Ababa, Debre Zeit, Bahir Dar, Burayu, Adama and Ziway.

Boston Partners has plan to enter in to hospitality industry in every African country and expand the establishment of Kuriftu resorts to East Africa, he added.

It had concluded a 50 million USD agreement with a US-based company, Fairfax Africa Fund, back in August 2012 to pursue this goal.

The agreement was said to help Boston Partners achieves its plan to build, own and operate several hotels and resorts in East Africa including Ethiopia, Kenya, Tanzania and Djibouti.

http://www.ena.gov.et/en/index.php/economy/item/375-kuriftu-spreads-wing-to-djibouti

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Addis to host Ethio-Swedish Agro Technology Forum

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 Addis Ababa: February 7, 2015 – The first Ethio-Swedish Agro Technology Forum in dairy, sugar and energy will be held in Addis Ababa on 10 February 2015, the Ministry of Foreign Affairs (MoFA) said.

MoFA Business Diplomacy Director General, Hirut Zemen, said that the Forum is organized by the Ethiopian Embassy in Sweden and Ministry of Foreign Affairs of Ethiopia.

In addition to strengthening the bilateral ties between Ethiopia and Sweden, the forum would help to effectively exploit Ethiopia’s agricultural potential, she said.

Swedish based four companies, namely Valley International Projects (V.I.P.), Delaval, Alfa Laval and Tetra Pak will take part at the forum to be held at Sheraton Addis.

Managing Partner of V.I.P, Carl Gustafsson, said that the forum would serve as a catalyst input to Ethiopia’s promising start of being Africa’s leading fastest economy, towards the goal of achieving to be middle income economy.

V.I.P. with its local partner, Sylverstar Group, is keen to promote the Ethiopian diary industry being competitive in the global arena in terms of both in quality and marketing, he said.

High level government officials, stakeholders and invited guest are expected to attend the forum, it was noted.

http://www.fanabc.com/english/index.php/news/item/2171-addis-to-host-ethio-swedish-agro-technology-forum

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FAA removes prohibitions over Ethiopian territory for US planes

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Addis Ababa: February 6, 2015 – The United States Federal Aviation Authority (FAA) has removed the prohibition that it placed on US carriers and commercial operators from overflying some parts of Ethiopia

The ban was placed in 2000 for north of 12 degrees north latitude during the Ethiopia and Eritrea border conflict, the FAA says.

The removal of the ban was announced by the FAA on February 4, 2015 and published in the Federal register Vol. 80, No. 23.

“This action removes the prohibition against certain flights within the territory and airspace of Ethiopia contained in Special Federal Aviation Regulation, (SFGAR) no. 87,” it says.

http://www.fanabc.com/english/index.php/news/item/2167-faa-removes-prohibitions-over-ethiopian-territory-for-us-planes

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Ethiopia’s Economic Growth Could Be Model for Other African Countries: WB Officials

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Addis Ababa February 11, 2015 - The rapid economic growth Ethiopia has been registering could be a model for other African countries, World Bank (WB) said.

A 10-person high-level WB delegation held here on Monday discussion with Prime Minister Hailemariam Dessalegn about the relations of the bank with Ethiopia.

World Bank Africa Group Executive Director, Louis Rene Peter Larose, said during the occasion the consecutive rapid economic growth Ethiopia has been registering can be a good experience to other countries of the continent.

The effort of the country to strengthen south-south economic cooperation is another worthy experience that can be cited, the executive director added.

The World Bank recognizes this economic growth, Larose said, adding that the bank and Ethiopia have excellent relations and this relationship would further be consolidated in the future.

World Bank Group Executive Director, Alex Foxley, said on his part the Ethiopian government has generally registered economic growth and alleviated poverty in the country.

The executive director stated that activities undertaken jointly by the bank and the government were evaluated; and WB would continue its partnership with the government in the coming five years.

Finance and Economic Development Minister, Sufian Ahmed, said the aim of the discussion was to assess the development works the bank has been supporting in the country and confer on future collaborations.

Representatives of the bank also want to see the progress Ethiopia has made in education, health, the private sector and infrastructure development, he added.

http://www.ena.gov.et/en/index.php/economy/item/385-ethiopia-s-economic-growth-could-be-model-for-other-african-countries-wb-officials

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Ministry says would work more towards building development army

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Addis Ababa, 11 February 2015  - The Ministry of Civil Service said it has been making efforts towards building a committed and vibrant civil servant which contributes share for the successful accomplishment of development plans set by various institutions.

Opening a three-day consultative meeting held yesterday at Adama Town, Good Governance and Reform Cluster Coordinator and Civil Service Minister with the rank of Deputy Prime Minister Aster Mamo said that the performance of government institutions in creating a vibrant civil servant with similar attitude and perception over the last six month is not yet achieved. In this regard, the Ministry will work aggressively to fix the major problems in the remaining six months.

The public, leaders and civil servants should work jointly to register better results in the next six months. Most of the government institutions carried out successful activities at the plan preparation period, Aster said adding, only few institutions are performing better when it comes to translating the plan into practice. Replicating best practices of certain institutions is helpful to have similar results in other institutions.

Regarding good governance, she said most government institutions have been making efforts through making discussion with the public to identify root causes of problems and put long, short and medium term solutions. In some institutions, it has been possible to address good governance problems and gain good results whereas some still remain behind in providing timely and effective solution.

“Still there is lack of leadership commitment in some government offices, Aster said. The performance of a given institution is measured by the commitment of its leaders and civil servants. Hence, much is expected from leaders in building capacity of civil servants,” she added.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17585:ministry-says-would-work-more-towards-building-devt-army&catid=52:national-news&Itemid=291

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“We are ready to actively participate in May general elections,” political parties

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17589:we-are-ready-to-actively-participate-in-may-general-elections-political-parties&catid=71:editors-pick&Itemid=396

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Ethiopia tipped for tourism surge

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Annual report lists Ethiopia among emerging destinations, while bookings for Cuba rise and trips to Malaysia prove less popular

A rock-hewn church at Lalibela

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   By Oliver Smith 

Ethiopia has been tipped to become a popular holiday destination in the coming years by one of Europe’s biggest long-haul tour operators.

The East African country, which suffered a series of famines in the 1980s but can boast some of the continent’s most dramatic landscapes, has been included among a list of emerging destinations in Kuoni’s annual travel trends report.

Around 20,000 Britons visit Ethiopia each year, according to the Foreign Office, but that could increase with Kuoni offering trips there for the first time.

^{The Danakil Depression}

The country’s highlights include the monolithic rock-hewn churches at Lalibela; the Simien Mountains National Park, a Unesco World Heritage Site that is home to a number of endangered species, including Ethiopian wolf and walia ibex; and the otherworldly Danakil Depression, with its colourful sulphur and salt lakes.

Trips to see the tribal communities of the Omo Valley are another, though some believe they are exploitative. In 2013, Exodus, an operator specialising in activity and adventure travel, announced it would no longer offer such tours.

Parts of the Ethiopia are off-limits, however. The Foreign Office advises against all travel to within 10km of the borders with Sudan, South Sudan, Kenya and Eritrea, and to larger parts of the country’s north-eastern and south-eastern regions.

Kuoni’s trips feature Lalibela, the low-key capital Addis Ababa, the towns of Gondar and Bahir Dar, the Bale Mountains National Park and the Simien Mountains National Park.

^{The Simien Mountains National Park}

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Other emerging destinations listed by Kuoni included the Philippines, following the recent launch of direct flights from London to Manila, La Réunion, in the Indian Ocean, and Sri Lanka‘s east coast.

The tour operator’s annual report also highlighted those countries which have grown in popularity over the last year – and those which have fallen from favour.

Bookings for Brazil have risen 58 per cent, year-on-year, with the World Cup said to be behind the trend. A further rise is expected as Rio de Janeiro prepares to host the 2016 Olympic Games.

Malaysia, on the other hand, is proving less popular, with the two Malaysia Airlines disasters believed to be behind the fall in booking.

George Clooney’s marriage to Amal Alamuddin in Venice appears to have inspired holidaymakers – inquiries for weddings and honeymoons in Italy have increased 20 per cent since the ceremony in September.

Overall, the Maldives is Kuoni’s most popular destination for 2015, based on sales until the end of January. It is the 10th year running the islands have topped the list.

The UAE has risen to third, behind Thailand, while Cuba has jumped to seventh, its highest ever ranking, with travellers apparently keen to see the country before improved relations with the US affect its undeveloped charm.

Kuoni’s top 20 destinations for 2015

1. Maldives (2014 position: 1)
2. Thailand (2)
3. UAE (3)
4. Sri Lanka (4)
5. USA (6)
6. Mauritius (5)
7. Cuba (10)
8. Antigua (12)
9. Singapore (13)
10. Barbados (8)
11. St Lucia (11)
12. Mexico (16)
13. Vietnam (14)
14. Italy (-)
15. Indonesia (15)
16. Malaysia (9)
17. Australia (24)
18. India (18)
19. Hong Kong (25)
20. Switzerland (17)

http://www.telegraph.co.uk/travel/destinations/africaandindianocean/ethiopia/11402638/Ethiopia-tipped-for-tourism-surge.html

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Ethiopia, Argentina Agree to Expand Relations

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Addis Ababa  – Ethiopia and Argentina have agreed to expand their longstanding political relations to the economic sphere.

State Minister of Foreign Affairs, Berhane Gebre-Kristos, signed here today a technical cooperation agreement that enables the two countries to strengthen their economic relations with his Argentinean counterpart Eduardo Zuain.

According to State Minister Berhane, both sides will benefit if they collaborate in agriculture and livestock sectors as Argentina has capability in the sectors and Ethiopia has extensive agriculture, livestock resources and strong human resource.

The countries have agreed to cooperate in science and technology, and research, it was disclosed.

The countries also agreed to work together in protecting their common interests at international forums, Berhane added.

The state minister said his counterpart has requested that Ethiopian Airlines fly to Argentina so as to bolster the people-to-people and economic ties. The airline will responsibly consider the invitation, he added.

Argentina’s State Minister Eduardo Zuain said on his part Argentina is ready to strengthen its economic relations with Ethiopia.

He stated that the countries will build their economic relations by consolidating the agricultural, health and technical cooperation; and we have signed the technical agreement to consolidate this.

The state ministers have also discussed the situation in Somalia and about peace and stability in the region, it was learned.

http://www.ena.gov.et/en/index.php/social/item/379-ethiopia-argentina-agree-to-expand-relations

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AU Summit provides Ethiopia with opportunity to strengthen ties with various countries

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Addis Ababa, 10 February 2015 (WIC) – The 24th African Union Summit concluded last week provided Ethiopia with the opportunity to strengthen its bilateral ties with various countries.

MoFA Spokesperson, Ambassador Dina Mufti made the remark at a press conference held today at the Ministry’s premises.

He said the Summit helped Ethiopia to held discussion with various African, Asian and European counties as well as heads of continental and international organizations.
He said PM Hailemariam Dessalegn and Foreign Affairs Minister Dr Tedros Adhanom, held discussion with heads of states and governments, ministries and representatives of the various organizations at the sideline of the Summit.

According to Ambassador Dina, the discussions were successful in terms of deepening Ethiopia’s ties with the countries and officials with whom PM Hailmariam and Dr Tedros met.

He further said that the visit paid by Prime Minister Hailemariam to Djibouti over the weekend was significant in further cementing the relationship between the two neighboring countries.

During his visit, the two sides signed six agreements that help both countries take their relationships one step further.  The agreements were signed in the areas of boarder trade, transport, mining, gas and railway, among others.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17572:au-summit-provides-ethiopia-with-opportunity-to-strengthen-ties-with-various-countries&catid=52:national-news&Itemid=291

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Hellocash Mobile Money Service Goes Live in Ethiopia

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 Addis Ababa: February 11, 2015 – Lion International Bank and Somali Micro Finance in partnership with BelCash Technology Solution PLC launched the official pilot of the HelloCash mobile money services.

BelCash Technology Solution PLC is an Ethiopian based technology service provider for financial industry.

The HelloCash mobile money platform will provide financial services to all Ethiopians. The HelloCash service enables existing and potential customers of Lion International Bank and Somali Micro Finance to carry out transactions in four key areas of financial transactions: Deposit, Withdraw, Transfer and make payments.

The HelloCash mobile money service is provided in compliance with National Bank of Ethiopia’s directives on mobile money.

The pilot of HelloCash mobile money service is underway in three part of the country with locations consisting of a mix of agent outlets and branches.

HelloCash Mobile Money would make financial services available to more Ethiopian, especially at the grassroots in order to drive financial inclusion in the country.

One of the uniqueness of HelloCash mobile money services is its interoperability and shared infrastructure features. The system is designed for multi banks and MFI’s to be interconnected and offer the mobile money service to their respective customers, therefore, partnering financial institutions are able to share each other’s agent and branch network to serve each other’s customers.

This allow any customers of any partnering bank to visit any agent or branches to conduct financial services regardless of which bank customers belongs too. The sharing of agent network allows partnering banks to optimize their investment as well as increase national wide service coverage.

CEO of BelCash International, Mountaga Vince Diop mentioned that this is only the beginning of what seems to be an irreversible step to reinforce Financial Inclusion in the country.

BelCash Technology Solutions PLC provides the Banks and the Micro Finances, Go-to-Market turn-key mobile money solutions (including capacity building, business and operational models, hardware, disaster recovery and Call center facilities) and facilitate the penetration of Mobile and Agent Banking in the Ethiopian Financial landscape.

The Financial Institutions providing HelloCash in Ethiopia are confident to build a unique network of more than 20,000 agents across all Ethiopia within the 3 coming years.

http://www.fanabc.com/english/index.php/news/item/2205-hellocash-mobile-money-service-goes-live-in-Ethiopia

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Ethiopia Distributes its Cargo Among Neighbouring Countries’ Ports

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In the wake of Ethiopia issuing bonds, it has come to the realization that it may need alternative ports aside that of Djibouti.

Ethiopia Distributes its Cargo Among Neighbouring Countries’ Ports

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Ethiopia is to start using the Port of Berbera this month on an agreement reached between the two countries on January 29, 2015, while the use of Port Sudan has started by the importation of 50,000 tonnes of fertilizer.

Ethiopia had expressed its dependence on Port Djibouti as a concern when it issued a one billion dollar sovereign bond in October 2014. The move towards issuing the bond came after Ethiopia got a ranking of B+ by foreign rating companies namely, Moody’s, S&P and Fitch.

It seems that the effort to reverse the full dependence of the country on Djibouti by finding alternative ports is bearing fruit.

“Five to 10pc of the country’s imports are planned to come through the port of Berbera, and we will be looking for proper ports for different areas of the country,” said Workineh Gebeyehu, minister of Transport when reporting his office’s six months’ performance to the Parliament. “But the Port of Djibouti continues to be the major one.”

Considering the annual average growth rate of Ethiopia, that is 10.1pc through the five years of the Growth and Transformation (GTP) period, Djibouti has started 9.8 billion dollars of expansion of Port Djibouti. The expansion, which is meant to be completed by the end of 2017 is planned to increase the capacity of the port 15 times.

Ethiopia is also undertaking construction of a 98Km railway that will stretch from Somali, a region in eastern Ethiopia, to Djibouti. It is being constructed by a Chinese firm, China Civil Engineering Construction Corporation (CCECC). The 1.98 billion dollars project, according to the CCECC website, is financed by the Chinese Export Import (EXIM) Bank.

The Ethiopian Shipping & Logistics Services Enterprise (ESLSE), which has 15 ships out of which two are for oil, has finished dealing with an agent in the Berbera Port and one of its ships will be deploying 20 to 30 containers to the port this month. The agent is a Member of GSK Group of Djibouti. For now ESLSE will be bringing goods to Berbera from India, Middle East and Saudi Arabia while planning to extend its reaches to China and the Far East, according to Alemu Ambaye, (Chief ENG), Shipping Services Sector deputy chief executive officer.

“In terms of suitability, while Berbera has a slight closeness to our country, the road to it is not suitable,” Alemu told Fortune.

The road that extends from Jigjiga-Togo-Wuchale is concrete asphalt but the road within the border of Somalia is not suitable and therefore the Ethiopian government is working with the Somali government to source financing, according to Samson Wondimu, the communications director at the Ethiopian Roads Authority. The port, for the time being is going to be used for importation of coal according to Tesfaye Chanchissa, public relations officer at the Ethiopian Maritime Affairs Authority.

The rate of payment, which is based on loading and unloading of goods is also said to have a slight difference from Djibouti although it is yet to be experienced, according to Alemu.

The service that the Shipping lines will give will be transshipment- which means the ships will come mainly to Djibouti and will go to its place of origin after reaching the Port of Berbera. The ESLSE ship that is coming from Dubai will reach Djibouti then Berbera and finally go to Dubai.

“We will use alternative ports without affecting the benefits of other ports,” stated Workineh.

The same as Workineh, Alemu also believes that there is enough load that can suffice all the ports.

The ESLSE will be deploying goods at the newly agreed ports every two weeks. It has also made new customers in the line which is why it started the new route. Ethiopia has been using Port of Sudan for its exports.

Currently, Ethiopian cargo, especially container, delivered to Port of Djibouti is around 10,000 containers a month and 550 – 600 trucks leave Djibouti to Ethiopia every day carrying Ethiopian cargo, according to a data from Ethiopian Maritime Affairs Authority

http://addisfortune.net/articles/ethiopia-distributes-its-cargo-among-neighbouring-countries-ports/ 

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Ethio-Swedish Agro Technology Forum held in Addis

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 Addis Ababa: February 11, 2015 – The first Ethio-Swedish Agro Technology Forum for the dairy, sugar and energy sectors was held at Sheraton Addis yesterday with the presence of Ethiopia’s State Minister of Industry, Dr Mebrahtu Meles and Ambassador of Sweden to Ethiopia Jan Sadek.

The Forum was organized by the Ethiopian Embassy in Stockholm and The Ministry of Foreign Affairs of Ethiopia in Addis Ababa, in collaboration with Valley International Projects (VIP), founded by Swedish businessman Carl Gustafsson and his Ethiopian partner Akal Mamo.

The Swedish business delegation consisted of companies TetraPak, AlfaLaval and DeLaval. Ethiopian stakeholders of diary, sugar and energy sectors and the Swedish business delegates made their respective presentations, followed by business-to-business meetings in the afternoon.

The forum was attended by about 50 people engaged in the sectors.”

http://www.fanabc.com/english/index.php/news/item/2204-ethio-swedish-agro-technology-forum-held-in-addis

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Listing in Africa – Extractive Industries

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Year shows Growth and Apprehension for Private Banks in Ethiopia

By BROOK ABDU
FORTUNE STAFF WRITER

The branches opened by private banks in the fiscal year were 1,205 growing from the previous year’s 859. Four banks in the sector sent their presidents off on a resignation from the presidents.

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The last fiscal year had been one of growth and expansion for Ethiopia’s banking sector, though still dominated by the state owned Commercial Bank of Ethiopia (CBE) and although most of the private banks still face the challenge of meeting a paid-up capital minimum of 500 million Br by 2016, according to a decree by the central bank.

In the fiscal year that ended on June 30, 2014, the total number of bank branches in the country reached 2,208; of these 1,205 are private bank branches. Of the new 480 branches opened during the year, 346 were also opened by private banks. The growth has led to improving the branch-to-population ratio of one to 49,826 people to one branch to 39,402. The CBE alone has opened 124 branches during the year, still playing a dominant role, but

the share of state-owned branches has fallen from 50.3pc to 45.4pc.

The sector has seen its profits and expenses as well as its assets and capital growing during the year and over the years. The 16 private banks had a cumulative pretax profit of 4.7 billion Br, which grew by 24pc, and profit after tax of 3.6 billion Br. These banks have paid an income tax of 1.2 billion Br. The growth in the profit before tax surged from the prior year’s 11pc of growth. Among the banks, Oromia International Bank saw an increase in profit of 99.1pc, while Wegagen Bank saw a decrease in profit of six percent.

The highest profit after tax went to Dashen Bank, which had registered a profit after tax of 712.5 million Br while the smallest slice went to Debub Global Bank with 18.5 million Br.

The performance of the sector in the fields of financial intermediation has significantly increased. The interest income in the sector has grown by 30pc reaching 7.1 billion Br. The highest share of this went to Dashen, which has reported an interest income of 1.3 billion Br, followed by Awash International Bank with 1.2 billion Br. Debub, being one of the new participants in the market earned the least, which is 37.2 million Br.

This growth has fed into increasing paid up capital, although most are yet to meet the 500 million Br requirement by the central bank. The total paid-up capital of the banks increased by 35pc to 10.8 billion Br. The 16 banks had 15.1 billion Br as capital and reserves, enabling them to have a capital adequacy ratio (CAR) of 28.6pc, which is far better than the legal requirement of eight percent. CAR shows the capacity that the banks have to absorb risks if considerable portion of loans, advances and other assets go sour as banks are prone to such risks.

The private banking sector has also seen its assets increasing by 21pc to 121 billion Br. Dashen stands at the top of the list having a total asset of 22 billion Br.

Dashen is also the leading spender with its expenses reaching 1.2 billion Br and the smallest being Zemen with an increase in expenses being only three percent. The promising growth in the profit of the private banks is shadowed by a growing expense, especially in the staff and general and administrative realm. Salary and benefit expenses have expanded by 40pc reaching two billion Birr and the general administrative expenses in the banking sector have shown a growth of 46pc reaching 1.9 billion Br, which resulted from the competition in the sector to maintain their employees with salary increase and benefits.

With this comes the challenge of meeting the central bank’s decree of a minimum paid up capital of 500 million Br by 2016. Debub Global Bank, for example, has recapitalized its first profit gained in the last fiscal year, which was 18.5 million Br, forgoing dividends that had to be paid to shareholders.

“The amount set by the central bank is very important to make the banks cover risks,” says AlemayehuGeda (Prof.), a macroeconomist who teaches at the Addis Abeba University, Department of Economics. “The inflation has devalued the money at least five times within the past five years that makes the amount on the directive logical.”

Despite the increase that is seen in the profit of the banks, the earnings per share (EPS) of the banks have shown a decline. The average EPS of the industry has fallen down to 36pc from 39pc in the previous fiscal year. This is a result of the capitalization of the banks to comply with the NBE directive, according to Abdulmenan Mohammed Hamza, accounts manager at Portobello Ltd, a London firm.

In the fiscal year of 2013/14, banks have been focusing on the expansion of their technological bases by expanding core banking and increasing the number of their Automated Teller Machines (ATM). Banks that did not have the machines had invested in new ones. And some like Dashen and United Bank have taken licenses from NBE to start issuing agent and mobile banking in the fiscal year.

But the growth in the adoption of new technologies in the country is slow for Alemayehu, as he compares the growth with other countries, especially with Kenya, which is a worldwide model for its M-Pessa mobile banking.

“Technology does not mean ATM and core banking,” argues Alemayehu. “We need to exploit the potential of new banking systems through which we can access our accounts at home like the Kenyan M-Pessa and internet banking.”

The banks were also seen acquiring their own ATMs except for Zemen and Dashen that use the same machines and the six members of the PSS, Awash International Bank, Nib International Bank, Addis International Bank, United Bank, Berhan International Bank and Cooperative Bank of Oromia.

“They are wasting their resources on what they can possess in groups,” comments Alemayehu.

Even though the banks have experienced growth in these dimensions, the macro economist Alemayehu says that the banking sector is shallow as they do not give world-class services by supplying investment banking, startup capital, and they do not have the experience in issuing bonds.

Since April 2008, no interbank money marketing has been conducted and since its introduction in the country in September 1998 only 23 transactions have taken place, which are worth 259.2 million Br with interest rates ranging from seven percent and 11pc a year and the maturity period spanning from one day to five years, according to the year’s report from NBE.

“Interbank money market remained dormant because of excess reserves in the banking sector,” states the report.

Alemayehu Geda urges for a cautious opening of the Ethiopian financial sector which the government has reserved for domestic investors only. The absence of international investors in the sector has caused the local banks to walk in smaller strides towards change, according to Alemayehu. The banking sector, he believes, has been protected for the past 15 years and this should be reversed; but with a risk he says.

“The banking sector has to be made open to foreign investors slowly by letting the management go first then in the form of shareholders in the sector,” he suggests.

If foreign investors are let in at a time, local banks, which are shallow, could disappear, he says, giving the example of Kenya, where there were 120 banks before liberalizing the sector – only six survived after the liberalization.

The private banks should also organize themselves and challenge the government on some of its biases, like housing saving that is only allowed to be deposited at the CBE, and policy making such as monetary policy and decision of exchange rates.

“If they could not do that, they should lobby the government,” he says.

Despite the increasing expenses and the slow growth of the technology in the industry, the Ethiopian banking system is growing as a recent report of the International Monetary Fund (IMF) shows.

“Ethiopia significantly lags behind the other Sub-Saharan African countries in all measures of financial access, including number of branches, ATMs, depositors, and creditors” states a report from the IMF released in October 2014. “[But] the banking system is expanding and the structure of its liabilities and assets is evolving and the financial soundness indicators [which include CAR, return on assets and return on equity and asset quality] do not indicate immediate risks to the health of the banking sector.”

The number of banks per 100,000 adults stands at around three while that of the Sub-Saharan Africa is about four, the depositors per 1,000 persons is 100 in Ethiopia while this number is 150 in Sub-Saharan Africa. The number of ATMs in Ethiopia per 100,000 adults is well below two while the number in Sub-Saharan Africa is about five according to a data from IMF report.

The fiscal year that showed growth in all banks with many in the industry left to fulfill the NBE directive over minimum capital requirement has stayed being the concern of the banks in the fiscal year. The deadline set for the fulfillment of the directive is June 30, 2016 after which the fate of these banks will be being prohibited from accepting new deposit, underwriting new loans, conducting international banking business and being compelled to merge or be closed.

The year 2013/14 was also a year in the banking sector that had shown an unfamiliar presidential reshuffle, resulting in rise of vice presidents to the post of presidency. Four banks in the sector saw their presidents leave of their own volition. These are Bank of Abyssinia, Berhan International Bank, Debub Global Bank and Lion International Bank. In all banks where the presidents have left, others have taken their place in top positions in the sector. This is in direct contrast to the long-standing comment on the sector that it has no opportunity for the growth of new leadership.

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Despite recent excitement for opportunity in Africa, much-vaunted as mining’s new golden goose, investment and industry are slowing to a crawl.

Africa remains the big growth story, so much so that the annual Mining Indaba in Cape Town bills itself as the world’s largest investment conference. More than 7 000 delegates attend it, with exhibitors displaying their stuff in the main hall and hospitality suites competing to fête well-heeled delegates.

The indaba, which is held in the Cape Town International Convention Centre, has become so entrenched since its formation 21 years ago that it has sparked the Alternative Mining Indaba in the suburb of Woodstock, which seeks to discuss and understand the social effects of mining, accountability, transparency and good governance.

At the Mining Indaba, a succession of speakers supply nonstop information in the large main hall and in smaller auditoriums. The delegates, mostly suited men, are drawn from 110 countries in six continents, including 47 delegations from the rest of Africa. Notably conspicuous, also with their own hospitality suites, are large delegations of Canadians and Australians keen to use their mining experience to expand their presence in Africa.

Little joy

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The indaba is associated with big money, shown not least by the fact that it is sponsored by more than 400 companies, including some of the world’s biggest by market capitalisation.

But for all the trappings of wealth and success, not to mention high projected growth rates, the mood was pessimistic, even downbeat, with words such as “crisis” peppering the conversation.

The indaba’s chief executive, Jonathan Moore, told delegates at the opening that commodity prices, as measured by a Bloomberg index, were 17% down on last year. The price of base metal iron ore fell from $180 a tonne to just $60 over the past three years. In the past year, iron ore, not unlike oil, halved in price.

Exploration and investment are down. Statistics compiled by Deloitte in the State of Mining in Africa report show that investment in mineral exploration is down 50% compared with 2012.

Deloitte’s data shows that, in the case of 14 countries that make up 80% of the continent’s total, all have been in decline since 2012.

“The continent is slowing in future mineral development. Considering the current prices of many commodities, the outlook for growth looks very gloomy indeed,” say the authors of the report, John Woods and Andrew Lane.

They say that 30 projects are scheduled to come on line in Africa by 2018. These include nine copper mines, four gold mines, three coal mines, three platinum mines, two uranium mines, one iron ore mine, one nickel mine, one zinc mine and one potash mine.

A dominant recent narrative is that mining investment has been flowing into the rest of Africa rather than to South Africa, in part because of regulatory and energy uncertainty, but also because many South African mining operations are relatively mature. This means production costs are typically higher.

But if you think that mining investment is flooding out of South Africa, think again. The authors say the 30 new projects amount to a total investment of $18-billion.

“We estimate the total forward spend on these projects to be approximately $10.5-billion, with South Africa taking 29%, DRC [Democratic Republic of Congo] 23%, Mauritania 8%, Namibia 8%, Zimbabwe 8% and Zambia 7%.”

The report shows that South Africa heads nine countries in terms of the ease of doing business, followed by Ghana, Botswana, Namibia, Zambia, Mozambique, Tanzania, Zimbabwe and the DRC.

Most of these countries, with the exception of Mozambique, the authors note, have seen their ease-of-doing-business ratings decline rather than improve over the past year.

The Mining Indaba attracts 7000 delegates.

Notwithstanding Eskom’s current problems and poor prognosis for the next few years, energy is the big differentiator between South Africa and its African mining competitors. Poor infrastructure, including energy provision, means that mines usually have to supply their own power.

A World Bank report, The Power of the Mine, predicts that mining demand for power will triple to 23 gigawatts by 2020. It says: “Africa needs power to grow its economies and enhance the welfare of its people. Power for all is still a long distance away – two-thirds of the population remains without electricity and enterprises rank electricity as a top constraint to doing business.”

The report says, without investment, sub-Saharan Africa will see the number of people without electricity increase from 590-million in 2013 to 655-million by 2030. But mining in the region has spent $15.3-billion installing 1?600 megawatts for its own use since 2000. None of this power has found its way to the national grids.

The authors say this is a loss for everyone – people, utilities, mines and national economies. They argue that, instead of going it alone, it would be better for mines to set themselves up as anchor tenants for power utilities, which could use these mines to develop a grid to provide widespread electricity for all at a lower, shared cost.

Woods and Lane show that a significant investment in infrastructure is often a prerequisite for investment in mining.

“Generally the mining sector and governments agree infrastructure development is critical for the growth of the mining sector. Well-maintained and appropriately sized capacity in rail, ports, power, roads and communication leads to more economic reliability, and maintenance of lower costs for mining operations.”

Their report shows that infrastructure is being developed in sub-Saharan Africa. Surveying the period between 2003 to 2030, they estimate $317-billion will be spent on energy and power, $186-billion on rail, $87-billion on ports and the relatively small amount of $50-billion on mining. This, they say, excludes Rio Tinto’s $20-billion Simandou project in Guinea.

Source of funds

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The authors say that “mining companies and governments across Africa are at the sharp end of investor, labour, mining community and media scrutiny”.

It is worth noting where the funding of African mining projects comes from. The Deloitte report analysed the source of funds for 29 projects currently in development. “The Toronto Stock Exchange is funding 29% of the projects, followed by the Hong Kong Stock Exchange funding 17% and the National Stock Exchange of India funding 10%.”

The JSE is a distant eighth after the Australian, Euronext (Paris) and Russian exchanges.

Africa is not universally seen to have only an upside. A report by Deloitte, Australian Investment into Africa, says the value of listed Australian mining investment fell by 27.3% last year. Ebola in West Africa, which halted operations, and the five-month platinum strike in South Africa were the primary reasons for the loss of value.

Some of the world’s biggest companies by market capitalisation sponsor the indaba.

If delegates were hoping for light at the end of the mining tunnel, the macroeconomists who speculated on the future did not lift the gloom. Get ready for the long haul was the message; commodity prices could take several years before they recover. The fall in prices is caused by supply exceeding demand, the key factor being the slowing Chinese economy.

One speaker, Jim O’Neill, was less bearish than most and argued that, if you take a long view over several decades, things are not that bad now. (He is famous for popularising emerging markets and coined the term Bric – Brazil, China, India and China – which later, when South Africa joined, became Brics.)

The state of global economic health is best seen in Europe, a giant that usually drives demand, but at present, in O’Neill’s terms, is a “laggard”.

He argued that “we are doing better than we think”, one positive being the low oil price, but he said the days of China clocking up double-digit growth were gone. That was the old China in which policymakers pursued growth at all cost. They were much more focused now on the quality of growth.

The new China consumed more relative to its own production, he said, predicting that China would grow by between 5.5% and 7.5% for the rest of the decade.

If we were looking for high growth, we were more likely to find it in India, O’Neill said, which he expects will grow faster than China.

With little to no room for optimism, some talk was about whether commodity prices have hit the bottom. The optimists maintain that prices are as low as they can go. The pessimists worry they will fall further. But, for most, the challenge appears to be to survive the present fallout to be able to benefit when prices do recover.

There is a strong focus on running operations and managing costs as efficiently as possible.

For Chris Griffiths, chief executive of Anglo Platinum, this is about modernisation – a package of measures to reduce costs by rationalising operations and putting high-cost operations up for sale.

Griffiths said platinum prices had not recovered from the lows following the 2008 collapse, but that costs had been rising at a higher rate than consumer inflation. Innovation, which was both possible and affordable, was the solution– an active move to mechanisation, using very low, remote-controlled vehicles in the narrow stopes.

He sees this as resulting in fewer jobs, although they will attract higher wages. He also sees a growth in service jobs associated with the higher-tech operations.

Fewer jobs will undoubtedly create new labour tension, which will challenge Griffiths, who wants to modernise labour relations. He said the combative “them and us” needed to end and be replaced by partnerships with employees, communities, unions and nongovernmental organisations.

Regulation

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Deloitte’s report says: “Governance, mining legislation and the tax law seem to be broadly stabilising, with the exception of Zambia and Zimbabwe, which increased their tax royalty rates twice in the past six years.”

But Randgold Resources’ chief executive Mark Bristow said: “Mining can play a major part in Africa realising its potential but our potential to contribute fully to the continent’s continuing transformation is handicapped by an irresponsible short-term culture, which is an unfortunate legacy of the boom years.

“The harsh truth of the matter is that the mining sector has inflicted debt, impairments and write-downs on itself without making provision for its own long-term future, and is in a sorry state.

“In fact, even at current prices, and this applies to gold in particular, the industry is not viable without a major reinvention. Yet, even now, almost all Africa’s mining countries are revising their mining codes and regulations to increase their share of the miners’ revenues.

“To put it bluntly, they are demanding more money from an industry that is basically insolvent,” Bristow said.

Sourced here  http://mg.co.za/article/2015-02-12-mining-indaba-peppered-with-investment-pessimism/

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Addis Ababa Airport to be extended, new hub planned

 Addis Ababa: February 13, 2015 – Ethiopia will complete expansion work on the capital’s airport in 2018 to triple the number of passengers it handles from 7 million a year.

http://www.fanabc.com/english/index.php/news/item/2219-addis-ababa-airport-to-be-extended,-new-hub-planned

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It’s Time Ethiopia And Its Neighbours Took The Bull By The Horns

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VENTURES AFRICA – Africa has had its fair share of crisis, but its current developmental strides are shifting focus from the continent’s troubles to the abundant potentials and opportunities. These positive changes have been reinforced by continuing regional integration in the Eastern, Southern and Western parts of the continent. However, the countries in the Horn of Africa are still held back by age old skirmishes, which are still barriers to socio-economic cooperation. This lack of transnational partnership continues to hamper the growth and development of these countries, which have among them states languishing at the bottom of international societal indexes.

In a recent High Level Joint Commission Meeting of neighbours Ethiopia and Djibouti held in early February, the leaders of the two countries underscored the significance of enhancing bilateral cooperation in the political, economic and social sectors. Djibouti’s Prime Minister Ismail Omar Guelleh and his Ethiopian counterpart HailemariamDessalegn reiterated their commitment and determination to consolidate the existing strategic relations between the two countries and peoples in all fields of cooperation.

Ethiopia building bridges to economic prosperity

Landlocked Ethiopia is a major economic partner of Djibouti and Sudan and is reliant on both countries’ ports for imports and exports. About 85 percent of the country’s yearly oil consumption comes from Sudan via the Port of Djibouti. A protocol concerning Ethiopian access to Port Sudan was signed between the two countries in 2000 in Khartoum. They are now in the process of linking their power grids. Ethiopia has also improved relations with Somalia, a country bordered by the Indian Ocean to the east. Although Somalia is just recovering from years of civil war and insurgency by Islamist extremists, Ethiopia and its ally, Djibouti have expressed commitment to helping Mogadishu cement the peace bulding process. In contrast, Ethiopia’s dealings with its northern neighbour Eritrea are extremely tense due to an ongoing border dispute between the two countries. After the end of a 30-year war in 1991, the two countries still have not found common ground. While Ethiopia has flourished and has become one of the fastest growing economies in Africa, Eritrea’s economic fortunes have not improved. Now, Ethiopia’s fears are not about another war, but the effect that chaos in Eritrea may have on its growing economy.

Eritrea’s change may be tied to a new leader

Eritrea’s stance on issues, and the way the international community views the poverty-stricken nation, may only change with a change in leadership. In a joint communiqué released by both Guelleh and Dessalegn after the  meetings held from February 2 through 9, they condemned they perceive as a policy of continuous and deliberate destabilization pushed by Eritrean Government led by IsaiasAfwerki. They pushed for the international community to strengthen sanctions against the Eritrean state instituted because of its support for Somalia based rebel groups. Djibouti and Ethiopia’s leaders say they seek sanctions to put further pressure Eretria’s leader who has shown no signs of readiness to make changes. However, a refugee crisis, high-level defections, and recently, mutiny in the army indicate that Afwerki’s regime faces serious threats and may fall sooner rather than later.

Just as the process of change began for Ethiopia after long-time strongman, MelesZenawi, died in 2012, Afwerki’s ouster may signal the beginning of change for Eritrea.  While everyone affected by the tension between Ethiopia and Eritrea craves peace, there are many thorny issues the two nations need to sort out. One important area of disupte is the contested border town of Bademe. The town was awarded to Eritrea by the Ethiopia-Eritrea Border Commission (EEBC) though Ethiopia has not relinquished control. Ethiopia may have to let go for the sake of peace. This will exert more pressure on Afwerki who uses the perceived Ethiopian threat to justify his system of one-man rule and compulsory military conscription.

Djibouti is Ethiopia, Ethiopia is Djibouti

Apart from having a common enemy in Eritrea, Djibouti and Ethiopia have always had good relations. There have been reports of genetic linkage between the two countries, which have led to a proposal for unification of the nations. Prime Minister Ghelle last May said there was no difference between them: “We believe that Ethiopia is Djibouti and Djibouti is Ethiopia, no difference at all.” According to the Ethiopian Reporter, Djibouti proposed a unification with Ethiopia, which the latter is likely to embrace. However, the people and the governments of the two countries should be the ones to decide what kind of integration they would like to forge. The Horn of Africa could form an important economic quartet if relations with Eritrea improve. The East African Community is arguably the most important economic bloc in Africa, and its integration has fostered the economic growth of member states. Such success can be replicated in the Horn of Africa, but this requires vision, commitment, will, and most importantly, that Ethiopia settles its scores with Eritrea. Ethiopia and Djibouti may not be enthusiastic about having a larger economic bloc in the Horn of Africa, but both countries have recommitted to the decision of the Inter-Governmental Authority on Development (IGAD) Assembly of Heads of State and Government to revitalize the eight-country trade bloc, to speed up the regional integration process. It remains to be seen whether countries in the EAC, who are comfortably building Africa’s largest economic bloc would be ready for an extra commitment with IGAD.

http://www.ventures-africa.com/2015/02/its-time-ethiopia-and-its-neighbours-took-the-bull-by-the-horns/

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GlaxoSmithKline considers Ethiopia as a strategic country for investment in Africa

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Economic integration is defined by Investopedia – an authoritative financial dictionary – as an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies.

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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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Ethiopian Intelligence Network: Who is behind the growth?

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Ethiopia is a low income country with a population of just under 92 million people. The country has since 1991 been under one party rule of the Ethiopian People’s Revolutionary Democratic Front (EPRDF). Dissidents who use the internet to criticise the one party rule have been accused of promoting terrorism and have been subjected to strict surveillance.

According to Human Rights Watch, the increasing technological ability of Ethiopians to communicate, express their views, and organise, is viewed less as a social benefit and more as a political threat for the ruling party, which depends upon invasive monitoring and surveillance to maintain control of its population. Ethiopia regularly blocks websites, undertakes surveillance of websites and social media, and charges journalists over content published offline and online.
The country’s laws provide for legal sanctions against individuals for content they publish online, or the ‘illegal use’ of telecoms services. Such charges have often been framed as ‘promoting terrorism’, which can attract a 20 year jail term. Thus, the country has been creating a speedily expanding, state-of-the-art surveillance state, with tacit Western back up.
Rumors of the extent of Ethiopia’s digital surveillance and censorship state have echoed around the information security community for years. Journalists have spoken of being shown text messages, printouts of emails, and recordings of their own telephone conversations by the Ethiopian security services. From within the country, commentators connected growing telecommunications surveillance to the increasing presence of East telecommunications company ZTE.
On the external front, analysis of the targeted surveillance of exiled Ethiopians has turned up surveillance software built and sold by Western companies, such as FinFisher and Hacking Team. Observers of the country’s national Internet censorship have reported keyword filtering of websites and blocking of Tor nodes that reveal a sophisticated national firewall conducting deep packet inspection. Ethiopia’s position as an American ally also gives it the opportunity to purchase technology made in the West to carry out its campaigns of censorship and surveillance. Ethiopia has also bolstered its surveillance capabilities with drones built by Israeli company Bluebird Systems.
However, it is widely believed that Ethiopians have not developed the surveillance network using the available resources in the country. Indeed it is even futile to think that a third world country like it, which does not have enough resources to feed its poverty stricken population will invest heavily in surveillance technology.
There are many who believe that West is funding such programs. However, on a more detailed look, it looks as if East technology is behind the program.
Screenshots of extra fields on ZTE’s ZSmart customer relations management tool appear to show that Ethiopia’s telco administrators can check customers against a “blacklist,” and digitally record calls with the press of a single button.
These features could simply be a result of Ethiopia’s censorship team quickly adopting new techniques — or it could mean that Ethiopia is one of the few countries that benefits from the direct export of Great Firewall technology. In the case of Ethiopia, there have been reports that East is training the surveillance team for as period of six months and then using it for own proxy intelligence. Whether or not the activities of such companies represent cybersecurity concerns – these rapid changes in Africa’s media and telecommunications sphere are an overlooked and illustrative example of the impacts and influences of a rising East, which warrant greater study and attention from policymakers and civil society in Africa and elsewhere, in particular those who are keen to ensure both increased cooperation and connectivity and free and secure communications among citizens.

http://www.newdelhitimes.com/ethiopian-intelligence-network-who-is-behind-the-growth123/

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Africa to miss out on coffee earnings due to production drop

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Africa’s share of global coffee production is dropping at a time when consumption is growing and farmers need government support to ensure the continent does not miss out on potential higher earnings in the future, delegates at a coffee conference said on Thursday.

Coffee is an important crop on the continent, bringing in hard currency and creating jobs in producer nations from Rwanda to Ivory Coast. The continent’s share of world coffee production slipped to 14 percent in the 2012/13 crop year from a quarter in 1989, the Kenyan minister of agriculture Felix Koskei told a regional conference.

Producers on the continent, who grow both Arabica and Robusta, produced 16.7 million bags of coffee in 2012/13 from 19.1 million bags in 1989 even as global production rose to a high of 146.8 million in 2012/13, Koskei said. “The decline in our production is happening against a backdrop of an increase in world coffee consumption which is growing at an average of 2 percent,” Koskei told the annual conference of African Fine Coffee Association (AFCA).

Over the medium-term, Africa could miss out on a potential boom in prices from a projected shortage of coffee, said Abdullah Bagersh, chairman of AFCA’s board. Delegates at the meeting in the Kenyan capital blamed poor policies by government that do not take farmers’ welfare into consideration. In Kenya’s coffee growing central highlands, some coffee estates have chopped down their trees in favour of real estate, which has been offering better returns.

Kenya is pursuing initiatives to boost production, including the establishment of a trademark for Kenyan coffee, to give it an identity and spur demand among end consumers, who are usually willing to pay more at western coffee chain outlets than bulk traders and roasters. Abdullah, whose own country of Ethiopia has been held up as a model for others on the continent due to its growing annual output, said governments needed to support the industry in a robust manner.

http://www.brecorder.com/agriculture-a-allied/183:pakistan/1151614:africa-to-miss-out-on-coffee-earnings-due-to-production-drop/

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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.

http://www.thereporterethiopia.com/index.php/news-headlines/item/3148-local-company-requests-license-for-aluminum-exploration

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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

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Will The U.S Abandon Its Trade Pact With Africa?

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By Emmanuel Iruobe

VENTURES AFRICA – Arguably, one of the factors responsible for Africa’s improved trading over the past decade has been the Africa Growth and Opportunity Act (AGOA), a piece of legislation that was approved by the U.S Congress in May 2000. It was granted to assist the economies of sub-Saharan Africa grow economic relations with the world’s greatest economy.

The act facilitates duty-free entry into the U.S for certain goods, and the result had been an expanded access mostly for textile and apparel goods and a surge in foreign exchange earnings. It was initially set to expire in 2008 but, again, the U.S Congress extended the Act till 2015.

Last year, at the U.S-Africa Leaders’ Summit, a number of African heads of state pushed for the pact to be extended by a further 15 years and suggested that the range of products covered by the act be expanded to include agricultural products. The rationale for this is clear; U.S bound exports from sub-Saharan Africa under the AGOA totalled about $26.8 billion in 2013 alone according to Reuters. This fulfils the exact reason the act was enacted in the first place.

Lesotho and Kenya can be said to be the biggest beneficiaries of the deal as their economies have been diversified and strengthened largely as a result of the trading opportunities created by the act. Nigeria, the continent’s biggest economy, has also seen trade flows blossom to $18 billion since the act enactment.

South African President Jacob Zuma, at the summit, emphasized the need for another extension, saying; “Almost 95 percent of South African exports receive preferential treatment under AGOA. We strongly believe that by endorsing the extension of AGOA, the U.S. will be promoting African integration, industrialization and infrastructure development – I’m sure the Americans would not want to lose this opportunity.”

Diverse criticisms have emerged over the years from elements in the United States. Their main argument being that a further extension could damage America’s interests in the long run.

Dr Carlos Lopes, Executive Secretary of the UN Economic Commission for Africa, explains the points-of-view of the critics in a 2013 article, in which he wrote; “The Act’s opponents argue that Africa’s impressive growth in the 21st century means the continent no longer needs special treatment. They also claim that it is China and other countries who have been investing in Africa which have been the main beneficiaries from the removal of restrictions and that, in some cases, they are simply re-exporting their own products through African countries.”

“Evidence, however, shows that while African countries have certainly gained, as intended, the most from AGOA, the benefits have not by any means been all one-way. In the first decade since it came into force, US exports to sub-Saharan Africa tripled to $21 billion. As the US commerce department estimates that 5,000 American jobs are created or sustained for every $1 billion worth of exports, this trade is helping support over 100,000 jobs in the US. The US trade department has also insisted that proper safeguards are in place to prevent abuse of the rules,” he added.

This is a win-win for both regions, making the case for further extension all the more necessary. Apparel and footwear companies continue to champion the largest support as several hundred thousand jobs were created via AGOA. But, with the uncertainty surrounding the renewal of AGOA, further investments will be likely stall and the already created jobs may be in jeopardy.

If the extension succeeds, it will benefit both regions. American exports and jobs will increase as African countries develop their economies in new sectors. This will bolster the US’s global influence even more.

The European Union, keen to escape its present economic uncertainties has already set up an Economic Partnership Agreement with 35 African countries. This is essentially a framework for free trade agreements. If this materializes and the AGOA fails to scale, the United States may remain at a permanent competitive disadvantage with respect to Africa, which happens to be the new investment frontier for global businesses.

In the run up to current AGOA expiry date of September 30, the world will be watching to see how the US treats its growing ally.

http://www.ventures-africa.com/2015/02/will-the-u-s-renew-its-trade-pact-with-africa/

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Giant Chinese Corporation Seals 339m Br Power Contract

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- Project foreseen to improve electric networks in eight urban centres

Azeb Asnake (Eng.), CEO of EEP.

Power distribution sub-stations in eight towns are going to be rehabilitated and upgraded with a finance of 339 million Br from the World Bank’s (WB) International Development Association (IDA).

This is according to the agreement the Ethiopian Electric Power (EEP) signed with the Chinese firm China Electric Power Equipment & Technology Co. Ltd. (CET) on February 5, 2015, for the project, which is expected to be finalised within a year and a half.

CET took the project, which covers the distribution, rehabilitation and upgrading of electric networks in Addis Abeba, Adama, Dire Dawa, Hawassa, Bahir Dar, Dessie, Jimma and Mekelle. The project also includes installing automated technologies for control supply systems and performing quality control on the electric distribution system.

“The aim of the projects is to solve the problem of power outage occurring in those towns. It is mainly caused by the capacity problems of the distribution systems,” said Misikir Negash, external relations director at the EEP.

Misikir attributed the problem of power outage to the age and capacity of the transformers and sub-stations currently in operation. The new expansion will enable the power distribution stations to accommodate the increasing power to the distribution and national grid system, according to Misikir.

In the coming two years, the power utility monopoly is expecting the power supply upsurge from Gilgel Gibe III, which has the capacity of producing 1,870Mw, and currently in the final stage to start power supply by the end of the current fiscal year. The Great Ethiopian Renaissance Dam (GERD), which will have a total power supply capacity of 6,000Mw, is also expected to generate power by the end of 2015/16 fiscal year.

When the Growth & Transformation Plan (GTP) was designed in 2009/10, the total electric power capacity of the country was 2,000Mw. Five years later, in 2014/15, it reached 2,268Mw, and the plan is to reach 10,000Mw after six months at the end of the GTP period.

“Two decades ago, the number of towns, both rural and urban that got electric power was 320. But now the number has increased to 6,000,” Misikir said.

Power transmission lines have currently reached 13,000Km; the plan for 2014/15, according to the GTP, is 17,787Km. Electrification service coverage reached 55pc in the 2013/14 fiscal year, against a target of 70pc. The GTP’s electrification target is 75pc by the end of 2014/15.

CET is a wholly-owned subsidiary of State Grid Corporation of China, which received a 1.2 billion dollar payment from EEP to connect the power generated from the GERD to the national grid on 2013.

The company, which will work on the 500Kv transmission and transformation project at GERD has a presence in 80 countries across the world and took projects with a total outlay of 3.2 billion dollar as of January 2014.

“After the finalisation of the project, the transmission capacity of the sub-stations of the eight towns will double,” Meskir told Fortune.

Ethiopia has the potential to generate 50,000Mw of hydro power, 10,000Mw of geothermal and 1.3 million megawatts of wind power where the aggregate demand for electric power reached 7,589GWh in 2013/14 by rising from 4,984GWh in 2010/11.

http://addisfortune.net/articles/giant-chinese-corporation-seals-339m-br-power-contract/

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Ethiopia’s green economy plan

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One of the sticking points in global climate negotiations is the role of developing countries. As the biggest emitters historically, it is the industrialised nations that need to reduce their carbon, but they won’t do it unless developing nations make commitments too. And developing countries won’t do anything to disadvantage themselves in their efforts to industrialise.

There are several flawed assumptions behind the stalemate, including the idea that decarbonising is a bad thing that we won’t do unless we absolutely have to, like a child being told to tidy their room. The fact that a decarbonised economy would be more energy secure, healthier and actually sustainable seems not to have registered. Another assumption is that poorer countries can’t afford to limit their carbon emissions, and that they need to prioritise economic growth and come back to environmental action later.

Through the logjam there are, however, a few points of light and reason. One of them has been Ethiopia. Under the leadership of the late Prime Minister Meles Zenawi, it has taken climate change entirely seriously and adapted its development model accordingly, setting itself the goal of achieving “middle income status by 2025 in a climate-resilient green economy.”

I was reminded of this vision recently by the news that Ethiopia have just switch on the continent’s biggest wind farm. Since Ethiopia’s experiment is still hardly known, I though it might be worth looking at in a little more detail.

The Ethiopian government knows that the conventional development model has consequences, however taken for granted it may be elsewhere. “Following the conventional development path would result in a sharp increase in GHG emissions” says the 2011 green economy strategy document. Furthermore, it “could result in unsustainable use of natural resources, in being locked into outdated technologies, and in losing an ever-increasing share of GDP to fuel imports.”

Instead, the strategy outlines four main areas of focus:

• Agriculture: Improve food security and welfare of farmers while reducing emissions, by improving crop and lifestock production. Emissions can be reduced through sustainable intensification, which aims to improve yields on existing land rather than expanding it. Degraded land will be restored as part of a soil preservation strategy, rather than clearing new forest land for crops. Organic techniques will be used where appropriate, alongside more efficient use of fertilisers and better control of residues.

• Forestry: Re-establish forests and protect existing ones, creating carbon stocks and capitalising on REDD initiatives, while raising production in forest products such as honey and shade grown coffee. The country has been losing forest for fuel wood, so moving people from wood-burning stoves to biogas or electric is a priority. Degraded grazing land will also be restored and reforested.

• Power: The country is largely hydro powered as it is, and it expects to be entirely renewable by 2015. It also needs to expand power generation considerably, and recognises this as a “fundamental bottleneck to growth.” Future generation will be renewable, with wind, geothermal, solar, further hydropower projects and even landfill gas. The country is the first in Africa to invest heavily in wind power, and this meshes well with existing capacity – hydro drops off at the end of the rainy season, but wind speeds increase in the dry season. By investing in renewable energy now, Ethiopia intends to be a net exporter of electricity in the region.

• Transport, industrial sectors and buildings: leapfrog to modern and energy efficient technologies. Renewable based electrification will replace the widespread use of kerosene lamps. There’s an electric rail strategy, particularly within Addis Ababa and between the capital and the seaport in neighbouring Djibouti. “Shifting transport from road to rail would not only decrease transport costs and improve the trade balance through reduced import of fossil fuels, but would also lower emissions, congestion, air pollution, and traffic accidents.”

None of this, you will notice, ignores economic growth – and nor should it. As a poor country, Ethiopia needs growth far more than we do in Britain. Ethiopia is one of the world’s fastest growing economies, and it has no plans to abandon that momentum in exchange for sustainability. This is about building it green first time round, rather than following the usual fossil-fuel based industrial model and then hoping you can patch it later.

How successful Ethiopia are remains to be seen, and with acute poverty there is a real challenge to make this green growth inclusive. It could also be derailed. There has been fairly widespread support for the vision, but with the death of Zenawi last year, it is unclear how the policies will fare in his absence. But if the commitment survives the power transition, Ethiopia will remain one of the most progressive nations in the world when it come to climate change.

http://makewealthhistory.org/2013/11/11/ethiopias-green-economy-plan/

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Packaging giant Tetra Pak eyeing Ethiopia for investment

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Tetra Pak, one of the world’s biggest foods packaging company, is looking for investment opportunities in Africa. Ethiopia is on the list of countries the company is keen on exploring for a possible venture.

The company will send a high level delegation to assess opportunities the coming May 2015, Capital learnt.
Tetra Pak made its ambition known during the first Ethio-Swedish Agro Technology Forum of the dairy, sugar and energy sectors that was held at the Sheraton Addis Hotel on Tuesday, February 10. The event brought together major actors in the agro processing, dairy and energy sectors such as Tetra Pak, De Laval, Alfa Laval and Valley International Projects (VIP).
The Swedish company currently has two production facilities in Africa, South Africa and Kenya.
“The government is ready to support industries that are linked to the agricultural sector. The raw commodities that we are currently exporting are expected to go through a transition to become processed and value added so that they can be linked to the global value chain,” stated Dr. Mebrahtu Melese, State Minister of Industry when addressing participants of the Ethio-Swedish forum.
He also stated that companies such as Tetra Pak should really consider investing in the country to take advantage of the opportunity in the market as well as to enable the agro-processing sector export value- added products.
Swedish Ambassador to Ethiopia Jan Sadek said farming, food production and food packaging have been one of the most important pillars for Sweden’s economic development. He also said that innovation, invention and research within agro-techniques, in particular by companies such as Alfa Laval, De Laval and Tetra Pak, were instrumental in developing Sweden’s agro business and related services.
“I believe that agriculture and dairy here in Ethiopia, as it was the case in Sweden, have a potential both for the domestic economy, livelihood, biological diversity, energy production and more. We know that these areas have an important role in the current Ethiopian Growth and Transformation Plan and they are also likely to remain important in the future to come,” the Ambassador stated. He further said that the forum was an occasion to share experiences, create ties between Ethiopian and Swedish stakeholders and the beginning of a mutually beneficial business opportunity.
“Today, our cooperation is more about development, environment, peace and stability, of course trade and investment. Sweden wants to encourage a broader cooperation with Ethiopia with increased trade and investment relations and knowledge transfer,” the ambassador said.
The Forum was organized by the Ethiopian Embassy in Stockholm, the Ministry of Foreign Affairs and Valley International Projects (VIP).
VIP, a company that is also engaged in Agro-forestry stated that it has an interest to invest in the forestry sector in Ethiopia. The company has a plan to launch a project called a Paulownia Forest Project involving a fast growing tree that can provide a byproduct for energy.
According to estimates, the project could cost around USD 200 million and is planned to be carried out in Oromia; Amhara; Tigray, and Southern Nations, Nationalities and Peoples Region.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4932:packaging-giant-tetra-pak-eyeing-ethiopia-for-investment&catid=35:capital&Itemid=27

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Travel: Ethiopia’s come a long way

By Helen McGurk 

Remarkable landscapes, a wealth of wildlife viewing opportunities and fascinating historical sites are drawing foreign visitors to Ethiopia

Once ravaged by famine and poverty, Ethiopia has come a long way in the last 30 years.

Upmarket tour operators Kuoni and Scott Dunn have both tipped the destination as a place to visit in 2015, while an African safari contact recently told me: “Everyone in the industry seems to be heading to Ethiopia for their holidays.”

One woman who clearly recognised the East African country’s potential some time ago, is 64-year-old Susan Aitchison, a Scottish woman who arrived in 2007 to teach at a local school, and was so struck by Ethiopia’s beauty, she decided to open a restaurant.

Named Ben Abeba (Ben means hill in Scottish, and in Amharic translates as flower), the restaurant employs young people from the local area and aims to give visitors an insight into Ethiopian culture and hospitality. There are daily demonstrations of Injera (local bread) making, traditional coffee ceremonies and music and dancing most evenings.

Since opening in October 2011, Ben Abeba has climbed to the top of Trip Advisor’s Top Restaurant list, and with tourist numbers expected to increase this year, interest is set to gather pace.

Susan and Habtamu are in the process of building four guest bungalows, due to open later this year, set amongst more than 50,000 trees and plantations of banana, papaya, pomegranates and guava. Twelve more accommodation units are also in the pipeline, along with a conference centre and meeting room.

For those hoping to plan a visit, April to June, and October to February are considered the best times to go. Kuoni currently offer a nine-night Highlights of Northern Ethiopia tour, including a city tour of Addis Ababa, and trips to the Blue Nile Falls, Lake Tana, Gondar, Lalibela and the Bale Mountains National Park. Departures on October 5, and November 9, cost from £2,424 per person, including flights.

http://www.newsletter.co.uk/news/features/travel-ethiopia-s-come-a-long-way-1-6580003 

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 Government to set cotton price to stabilize market

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The continuous criticism cotton producers and textile factories throw at each other regarding the very low price offered for locally produced cotton has led the Ministry of Industry to set the price.
Previously, the government imported cotton to fill the gap in supplies and to stabilize the price, but the new option encourages farmers to produce more and supply it to the textile factory at a fair price.

The textile factories, who are major buyers of local cotton, lament the inconsistent prices.  Consequently, they were forced to change their production cost several times. Producers  argue that the cost of labor, the high price of agriculture machineries, uncertainty in market, and weather conditions have  deterred them from  offering consistent prices to local producers.
The supply chain of cotton to market is also elongated resulting in lower earnings by farmers and channeling significant profits to brokers.  Brokers buy a kilo of cotton under 30 birr from farmers and sell it to factories from 40 to 60 birr.
“It is right for the government to stabilize the cotton market,” Tadesse Haile, State Minister of Industry said at a meeting with cotton producers held at Ghion Hotel on February 9.
“We are aware of brokers who set the price of cotton randomly and that discourages textile factories which causes them to incur additional costs. If it has not been for that interference, we sometimes may experience cases where farmers produce plenty and find few buyers.”
So we have to mediate the situation by setting a price that is fair for both farmers and factories. And we don’t want to keep on importing cotton. We need all locally produced cotton to be consumed by our factories. And setting a price will help us realize that.”
Tadesse further noted that his Ministry is in discussion with stakeholders to draft a regulation prohibiting the involvement of brokers on the delivery line of agricultural products to the market, because that interference has significant impacts on the industry.
“Our agricultural products, especially those that are used as inputs for other industries, must be supplied at a fair price. Otherwise our effort to transform agriculture into an industry will face a big challenge. So we have to move the brokers who disturb the price. We only need producers and factories to deal with the products.”
According to Tadesse, his ministry commissioned a research on BT Cotton, one of the different genetically modified cotton variety that is reputed to rendering high yields.  The industry ministry has submitted a draft bill along with a synopsis of the research for ratification by parliament.
“We need more cotton to maintain our growing industry, and using GMO is one of the alternatives to boost production,” he stated.
Though producers do not agree on the notion of shorter cotton supplies, the current bulk demand for cotton in Ethiopia is estimated around 100,000 tones while the supply is around 65,000 tones.
Second rate quality of local cotton, lack of modern agricultural methods, poor irrigation systems and shortage of labor hampered the cotton industry from expanding.
The Ethiopian Cotton Producers, Ginner and Exporters Association (ECPGEA) Vice President Abreham Tadesse criticized the government for not giving proper attention to the industry.
“There is 250,000 hectares of land available for cotton plantation but only 10 to 15 percent of it has been cultivated so far, and this shows  underutilization of  the resource,” the vice president corroborates his argument.
He argues that GMO cotton is not the solution to increase production.  “We can still manage to scale up production without GMO cotton if government gives proper attention to cotton farming like it did to sugar farms.’’
Yet an agricultural researcher, Dr Million Belay, Capital requested to give scientific views on the issue opposes the Ministry of Industry’s plan to allow the use of BT Cotton.
Dr. Million Belay, Director of Melka Werer Agricultural Research Station told Capital, “the Industry Ministry tells us the experience of Sudan and other cotton producers who made a good production by applying BT Cotton, and they argue that the chemicals that are used to kill cotton pests demand more finance while BT Cotton has its own immune system to combat pests.”
“However, my institution disagrees as the condition in other countries and in Ethiopia is so different; the soil type and other related and relevant matters must be studied.  No one gives an ear to our suggestion and the bill is in the final stages of ratification,” Dr. Million sadly commented.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4939:government-to-set-cotton-price-to-stabilize-market&catid=54:news&Itemid=27

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Nation identifies 5 corridors for horticulture development

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Semera February 16, 2015 -

The Ethiopian Institute of Agricultural Research said five development corridors said to be favorable for horticulture development in the country have been identified.

Addis Ababa- Oromia, Hawassa- Arba Minch, Awash- Dire Dawa and Harrar, Bahir Dar- Nile Gorge and South Gondar, as well as Mekele- Raya and Alamata are the corridors.

Some 50,000 hectares land has allocated in these areas for flowers, vegetables and fruits as well as coffee production, the Director-General, Dr. Fantahun Mengistu told ENA.

The horticulture development corridors need to be identified so as to further boost horticulture development thereby improve its contribution to the nation’s development, he said.

Favorable ecosystem and nearness to various transport systems including air transport are the criteria used to select these areas, he added.

http://www.ena.gov.et/en/index.php/economy/item/404-nation-identifies-5-corridors-for-horticulture-development

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Omo Kuraz project satisfactorily responding to native pastoralists demand for development

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Addis Ababa, 16 February 2015  - Pastoralists living around Omo River have been leading their lives wondering from place to place in search of grazing land and water for their cattle.

As they are residing in remote areas of the nation, they knew neither social services nor infrastructures prior to the inception of Kuraz Sugar Development Project. Now things are changing and their demand for development is getting satisfactory response from both the federal and regional governments of the nation.

It was through the villagization program that pastoralists gathered for the first time at three villages of Arebijo area had started getting social services few years back when the Omo Kuraz Sugar Develoment Project was kicked off at Selamago District of South Omo Zone. And, witnessing the fruits of the sugar development project, pastoralists of same zone together with those at Keffa and Bench-Maji zones have started requesting both the regional and federal governments of the nation to foster the activities of the Omo Kuraz Sugar Development Project and reach where they are around and thereby they too become beneficiaries of social services and infrastructures as their fellow pastoralists at Selamago.

Hence, responding to the demand of these pastoralists, the project together with the regional and federal government have made social services and infrastructures available to pastoralists living at Gurra and Maki villages at which they started living together through the villagization program they had joined voluntarily. Furthermore, construction of social services at a village called Haillowa One is at its final stage while contractual agreements are signed with the constructing institutions so that they could start building similar service giving institutions at Haillowa Two village too.

As these all pastoralists were not acquainted with farming earlier , the project , giving training on how to till a land and harvest crops , has made available irrigable plot of land upon their request so that they can run farming business along with their cattle rearing job. And, it was pastoralists who have first started living at three villages of Arebijo that started farming and are now harvesting for a third round. At this village 2,400 hectares of irrigable land is made available to native pastoralists while irrigable land preparation work is underway to others gathered at Gurra, Maki and Haillowa villages.

Besides these the project, working hand in glove with the regional and federal government, is making irrigable land, social services and infrastructures available to those gathered at villages very far from the command area of the project.

On the other hand, pastoralists are benefitting a great deal from the market link created due to the constructed roads and other infrastructures which have helped them sell their herds with much better price as never before.

The Omo Kuraz native pastoralists have not only became beneficiaries of the above facilities but also got job opportunities at the project itself and those participating institutions of the project’s various activities.

Ollilu Charnielay is a native from Murssi nationality. He had went through a tractor machines operating training program at Chancho Tractor Training Center in 2013 and is now working as a regular employee of sugarcane plantation division of the project. His role in the division is land leveling and furrowing of cane cultivation field of the project using tractor machines. Asked to share about his opinion of the project, he said “I am very happy of working at this sector which is believed to contribute a great deal in doing away with the poverty our nation is leveled for”. Ollilu had no any idea about tractor machines before his training.

The other tractor operator employee of the project who shared his view about the project is Kassahun Metachew. He is from Dimmie nationality. Going through the same training program as Ollilu, Kassahun is working at the cane cultivation division of the project and is eager to see the sugar factory under construction producing sugar.

We found Metachew Deneke at Gura Elementary School. He is from the Dimmie nationality and is now working as a director of the elementary school built at Gurra village. He speaks the language of Boddis’ fluently. According to him currently 43 students are enrolled. Among them 18 are children while 15 are aged. And, what surprises him more is the enthusiasm the latter are showing for learning. The school is providing them with exercise books and pencils besides feeding their lunch. “We also have special incentive to female students; we provide them with edible oil every month as long as they attend the school with no interruption”, Metachew went on saying

Gatapai Zoggi is from Boddi nationality and we found her while she was getting the service of the flour mill constructed at Tikawoch Village of Gurra and asked her to share her relfections on her new way life. She and the villagers at Tikawoch have started getting services from potable water, flour mill, school and clinics of both human and cattle constructed at their village. “As I am attending the school regularly, I am now-a-days getting edible oil every month besides the lunch service during school days” She says.

These pastoralists living around the Omo Kuraz Sugar Development Project had paid a visit to Wonji Shewa Sugar Factory last year where farmers around it used have a long history of working with the sugar mill as sugarcane out growers. And, following their visit natives of the Omo Kuraz Sugar Development Project have time and again been requesting the project to let them work as out growers of sugarcane like those farmers around Wonji Shewa Sugar Factory. The project accordingly has allotted 1,072 hectares of irrigable land to 1,430 pastoralists each acquiring one hectare of land on which they are to grow sugarcane on 0.75 hectares and other crops on the rest 0.25 hectares. These pastoralists will also get professional assistance from the project including fertilizers and pesticides supply.

Till now more than 36,000 citizens have got job opportunities in the project itself and the participant companies of the project. And, 158 micro and small scale enterprises have become beneficiaries by taking part in the construction and service giving jobs. Moreover, both the regional and federal governments of the nation are working their level best in paving ways so that native pastoralists will step by step go up the ladders of various positions in the project. And, currently 30 native pastoralists are working in the project as irrigation experts after going through a training program at Arbaminch University while many in number are now working at different positions of the project.

Hence, as never before pastoralists around Omo Kuraz Sugar Development Project need no one to tell them what is best to their future unless he/she would dare want to run his/her obscured agenda.
Omo Kuraz Sugar Development Project command area encircles some woredas of South Omo, Keffa and Bench-Maji Zones. It is one among other projects Ethiopia has identified as a very promising one for the sector and it will in the end have 175,000 hectares of land for its cane cultivation. Five sugar factories will be constructed here three with 12,000 TCD and the rest two with 24,000 TCD.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17691:omo-kuraz-project-satisfactorily-responding-to-native-pastoralists-demand-for-development-&catid=52:national-news&Itemid=291

By Amen Teferi
Tigrai Online, February 16, 2015

The Ethiopian Prime Minister’s Visit to Djibouti

Last week, the Ethiopian PM Hailemariam Desalegn was in Djibouti on a three-day official visit. His visit to Djibouti has brought to light the strong interest the two countries have in further consolidating their relation to the level that some groups or individuals may find as something unexpected. Hailemariam and his counterpart the Djiboutian president are much optimistic about the integration of two sisterly countries. Ethiopian PM has even declared, “Political integration is not that difficult” and asked members of the Federal House of Representatives to support his government in realizing this goal.

His visit has markedly opened a new chapter, which would infinitely deepen the multifaceted, social, economic, historical and cordial relationship of the two countries. Thus, it had received special attention and spurred diverse interpretations form various corners.

According to Hailemariam countries in the Horn cannot have surefooted development without establishing economic integration among themselves. He also underscored that Ethiopia’s development is inextricably knotted with the peace and security of the region; thus he expressed the readiness and unwavering commitment of his government in strengthening the existing ties of the two sisterly countries.

Moreover, he said, “Any foreign aggression or assault aimed at undermining the basic national interest of Djibouti and its people would simply get on the nerves of Ethiopia.” In this regard, he chose to be unusually explicit, for he has unequivocally declared the importance Ethiopia has attached to its overall relationship with Djibouti.

In short, the PM visit to Djibouti was meant to highlight the ever-deepening bond of the two countries, in social, economic, political spheres and their interest in further expanding cooperation in the military sector.

Hailemariam emphasized the fast growing infrastructural development being undertaken by Ethiopia is meant to facilitate the economic integration between Djibouti and Ethiopia pointing that the two countries have pioneered the move to economic integration by establishing the energy alliance in the Horn.

In related news, AU commissioner for the infrastructure sector was last week on record lauding Ethiopia’s effort in taping its renewable energy resources and commended its endeavor in developing its national road and railway network that would also ensure solid economic integration among in the Horn of Africa and beyond.

As the current trends are obviously indicating, we will in the near future witness the death of a national economy per se. The chance is as P.M Meles had once said, we are bound “to swim or sink together.” We cannot see a developed and prosperous Ethiopia, Djibouti, Sudan, Somaliland or Eretria etc without having regional economic integration.

As we all know, poverty, marginalization, and hopelessness are key triggering factors for a protracted conflict in this region. These were factors favorable for the insurgent groups that until recently were proliferating in the Horn.

However, the existing sporadic conflicts witnessed in the pastoralist communities living in the peripheries of various countries in the Horn will gradually dry out with the ongoing socio-political and economic transformation happening in these communities. Djibouti can be cited as a good example to the transformation pastoralist societies in the region.

Djibouti

Hundred years ago, Djibouti was just a camp of pastoralist traders. The great grandfathers of the current Djiboutian generation had been pastoralists. When the pastoralist mode of life has changed and the people began to have a settled life, the current conflict situation will give way to lasting peaceful life.

For instance, the abundant natural sources -fertile land and water- have so far remained untapped in the Somali region of Ethiopia. Nevertheless, following the relative peace witnessed in the past few years, the Somali region is experiencing very impressive progress in all sectors of developments that would ultimately contribute to create enduring peace and security in the Horn.

On the other hand, we know that after the discovery of oil in Sudan, i.e. Northern Sudan Republic, has become giant economy in the Horn. It was enjoying the luxury of being oil producer with a potential of emerging as a giant economy in the Horn. Later, with the emergence of the southern Sudan as a new independent state this situation has swiftly changed. With the new dramatic turn of events or the separation of the Southern Sudan that elusive luxury has suddenly gone. Abandoning all other sectors of the economy, including farming, Northern Sudan has begun to rely on oil and found herself in difficult situation confronting with new challenges.

The point is things are pushing in the direction of integration. The oil rich land locked southern Sudan now contemplating to use the port of Djibouti. And this would only be possible if only it has a land link with Djibouti that of necessity must go across Ethiopia. This in turn will help Ethiopia to integrate with its neighbor and continue to engage in the regional developmental efforts, which is supported by the current favorable regional and global conditions.

Though the geopolitical importance that the Horn had been enjoining during the cold war period is now fading away, the giant global economies of China and India are energizing the developing economies of Africa They are aggressively penetrating into the huge market of the sub-region. With the emergence of the Asian big economies-china and India- the Indian Ocean has increased its strategic importance. Thus, the Horn (Africa in general) is getting more attentions of the big economies. Impressive economic growth in Africa is attracting various investors from all over the world. Regional stability is imperative for this robust economic trend to continue.

Thus, the power interconnection with Djibouti could clearly indicate not only the potential of Ethiopia to emerge as a huge powerhouse in the region, where many of its neighbors badly need the cheaper electric power Ethiopia could offer, but also the inevitable economic integration the countries in the Horn would embrace. It is to be recalled that Kenya and Sudan had also signed hydroelectric power supply agreement with Ethiopia.

Diesel is an expensive source of electricity. Therefore, the Ethio-Djibouti hydroelectric power interconnection would definitely ease the burden of business operators in Djibouti, Kenya and Sudan. Considering the fact that small enterprises operating in Djibouti are, on average, incurring 30 thousand Birr per month for their electric bill, hence, it would be attractive for Djibouti to purchase extremely cheaper and clean electric power from Ethiopia. This and other new development in the Horn would led to an energy based economic integration or interdependence in the Horn region.

One can rightfully expect that Egypt will soon join this interconnection and soon we will see Ethiopia serving as “the power hub of the North-eastern Africa,” as the late PM Meles Zenawi had envisioned.

In the near future, we will surely have an organization named as “Multilateral Commission for the Horn of Africa” that is mandated to foster closer cooperation and strive to resolve common concerns the countries in the region. And seek ways to improve public understanding of such problems and to support proposals for handling them jointly, and to nurture habits and practices of working together among the Horn countries. With this, it will herald that time for conflict has gone and the time for cooperation has come.

Hailemariam’s recent visit to Djibouti would reassure us that economic integration of the two countries will be realized so sooner than many can expect. The leaders of both countries have reflected their strong commitment to redefine the stereotypic and longstanding features of the region, which is war and hunger. This exciting change of political disposition has prompted me to appraise the current standing of the Horn in light of the basic percepts endorsed by the foreign policy of Ethiopia.

Ethiopian Foreign Policy

To begin with, the foreign policy of Ethiopia is not formulated by reiterating hollow grandeur, which is driven by such hypocritical vanities that the past regimes used to harbor.

Following the introduction of the new foreign policy, Ethiopia has achieved huge diplomatic success and excellent neighborly relationship with many of its neighbors. It has also played indispensable role in pacifying the Horn. Ethiopia has leading role in brokering and restoring peace in Sudan and Somalia. It is also instrumental in the ongoing negotiation process being carried out under the auspice of the regional body called IGAD. The vigilance and dedication it has shown in the negotiation or arbitration process to end the civil war in South Sudan is simply admirable. Ethiopia’s foreign policy would enable it to forge strategic bilateral relationship with all its strategic partners. Ethiopia was active in appraising the strength and weakness of our continental organization AU and has played significant role in framing AU’s fifty years vision.

The Ethiopian government has adopted a new broader definition of national security. Therefore, its primary focus is not a military defense or regime stability. The redefinition of its foreign and security policy is primarily driven by an inward looking assessment of its basic national interest. It has adopted realistic, rather than idealistic disposition, in the formulation of its foreign and security policy. The policy is born out of the conviction that one’s national security cannot be guaranteed by having a well-trained and armed defense force, but by establishing a vibrant democratic system, which would at the same time serve as an essential prerequisite to create sustainable and all-inclusive development.

As history of the region can indicate, the undemocratic states in the region have failed to be representatives and therefore contain all the seeds for both the intra and inter-state conflicts. Beggaring one’s neighbor is a nuanced or finely developed political art of the Horn. Hence, like every other state in the region the policy Ethiopia was pursuing in the past can be characterized by a policy of regional destabilization. The bid for regional power was aggression, which is still true as far as the Eritrean regime is concerned.

Consequently, we have very fragmented regional diplomatic landscape and weakened regional organization. The current Ethio-Djibouti relationship clearly signifies a detachment from the past political culture that had been nurturing aged old intractable conflicts and war, which had constantly been destabilizing the Horn. The strong economic tie among countries in the Horn is the product of the changed attitude born out of the general democratization effort undergoing in the region.

Following the demise of the notorious Derge regime, Ethiopia has taken courageous steps that had helped her to relive herself from the overwhelming historical challenges that have remained unsolved for ages. In the period after 1991, the country has embarked upon huge national projects that have created the momentum to spur sustainable development.

Ethiopia has begun this remarkable process by overhauling the longstanding political system that had been strangling the Ethiopian people for so long a time. This has created a venue where the voices of the voiceless have gotten unique attention. Marginalized ethnic groups in Ethiopia have courageously worked to redefined “Ethiopianess” anew. We behold this enticing event taking over where the deplorable situation that has engulfed the country for ages have started to dissipate and made Ethiopia hospitable to its citizens and attractive to its neighbors.

The political change that has effected a notable economic and social transformation not only changed the way Ethiopians view themselves, but also the perception they had towards their neighbors. In appreciating the perception of the later, it is worth examining the foreign and security policy and strategy adopted by the FDRE government.

The policy is not, as it has been the case in the past, formulated by recanting the objective reality and reiterating a tangentially created hollow grandeur. The new policy has insulted itself from such hypocritical vanities that characterize such policies adopted by the past regimes. It rather has take on a new broader definition of national security with an inward looking stance. Thus, its primary focus is not a military defense or regime stability; but democracy, good governance and development.

In view of this policy, it is not the nature of the state in the neighboring countries that would mainly dispose Ethiopia vulnerable to any foreign aggression, but the absence of democracy and sustainable development within.

As the past successive regimes of Ethiopia had failed to develop a viable political and economic formula to govern the internal affairs, they were also unable in establishing a regional cooperation in the conflict ridden Horn of Africa.

The Horn of Africa is one of the most fragile crisis regions in the world. And that is reflected in the regionalized civil wars and inter – state rivalry in this sub-region. The net result of these failures indeed was a protracted internal strife and regional instability.

The Horn used to be a very complex or hard to analyze, thus creating a confused picture in the mind of scholars who tried to grapple with issues of the sub-region. The region was characterized by a diverse complexity of issues that would baffle even the most intelligent of the towering talents who attempt to study the inflexible conflict in the region. However, recent development has changed the unruly character of the Horn and it started to be intelligible. Thus, scholars are suggesting an energy-led (water and oil) economic cooperation and integration would be a viable scheme to bring a lasting peace in the Horn of Africa. I would say that the foreign and security policy and strategy of the Federal Democratic Republic of Ethiopia has in its way the same flight deck.

Before anything, the policy EPRDF formulated has surely dispelled the misperceptions of the past regimes, and is informed by the objective reality of the country to ensure the benefit of the people of Ethiopia and the sub-region as well. This unprecedented economic growth in Ethiopia has evidently shown a spillover effect on the rest of the region.

The government, apart from ensuring the political system of Ethiopia to be hospitable to its citizen, has also devised an economic policy that has brought a fast and sustained economic growth which could serve in turn as strong catalyst or vehicle for regional security, cooperation and integration.

According to the foreign policy of Ethiopia, ending up an internal strife and regional conflict could not be possible without having a meaningful economic integration in the sub-region. That was the message conveyed by the late Prime Minister Meles Zenawi in the speech he had delivered at the inauguration of the power interconnection of Djibouti with Ethiopia. His message was that “the success of achieving stability in an individual country of the Horn would substantially depend on the overall stability of the Horn in general.”

Of course, most of the states in the region are still undemocratic and truly not representatives in nature. Therefore, many of them contain within themselves the seed of internal political conflicts. Absence of democracy and good governance has indulged countries in the sub-region into intra and inter-state conflict.

Sourced here  http://www.tigraionline.com/articles/djibouti-ethiopia-unity.html

Woldia-Hara Gebeya-Mekele Railway Project commences

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A ceremony is underway in Quiha, Tigray marking the commencement of the Woldia-Hara Gebeya-Mekele Railway project.

http://www.fanabc.com/english/index.php/component/k2/item/2259?Itemid=674

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Ethiopian Electric Power Completes 2.1 Billion Birr Project

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Addis Ababa February 19, 2015 - Electric transmission lines and distribution stations built with an outlay of 2.1 billion birr are readied for operation, Ethiopian Electric Power (EEP) said.

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AORA Solar’s Ethiopia Pilot Project Takes Step Forward
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Members of the team pose in front of the Tulip. From Left to right: Yenehiwot Mesfin (AORA Project Services Consultant), Tafesse Asrat Abera (Adama Science and Technology University), Getahun Moges Kifle(Director General, Ethiopian Energy Authority), Zev Rosenzweig (President and CEO, AORA Solar), Miheret Debebe (Senior Adviser to the Ministry of Water, Irrigation and Energy), Gosaye Mengistie Abayneh (Ministry of Water, Irrigation and Energy), J. Barry Kulick (Senior Vice President – Africa, AORA Solar) Rob Sinclair (AORA Consultant, Nottawasaga Institute), Mintesnot Gizaw Terefe (Addis Ababa Science and Technology University).

http://www.solardaily.com/reports/AORA_Solars_Ethiopia_Pilot_Project_Takes_Step_Forward_999.html

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Government Financial Enterprises hit 6.28 billion Birr profit

 Addis Ababa: February 19, 2015  – Government Financial Enterprises Agency said that the four financial enterprises (the Commercial Bank, Development Band, the Construction and Business Bank and the Ethiopian Insurance Corporation) have earned 6.28 billion Birr profit during the last six months of 2007 E.C fiscal year, attaining 93.02 per cent of their six month plan.

Compared to last year’s same period, 11.74 per cent increment has been registered.

The Agency added that the three banks have generated over 3.09 billion USD contributing a lot for the foreign currency reserve of the country showing a 3.15 per cent increment.

During the stated period, the four financial enterprises have loaned 19.12 billion Birr to clients. The Commercial Bank of Ethiopia and Development Bank of Ethiopia have given 15.30 and 3.13 billion Birr loans respectively during the six months of the reported period.

In a press conference aimed at presenting the Agency’s six months performance report held at the Agency Head Office yesterday, Agency Director General Dr. Sintayehu Wolde-Michael said that the four financial institutions have registered 312.23 billion Birr total asset. Compared to last year’s similar period, the assets have shown 22.15 per cent increments.

Dr. Sintayehu said the enterprises capital including the reserve has increased to 18.32 billion Birr. It performed 88.7 per cent of its plan. Compared to last year’s similar period, it has shown 13.86 per cent increment.

The Director General further said that the Commercial Bank of Ethiopia has registered 5.44 billion Birr profit in the last six months of the 2007 EC. Compared to other banks, it accounts 84.35 per cent of three financial enterprises total asset. Its deposit has also reached 260.47 billion Birr. Currently the bank has opened 909 branches all over the country.

Dr. Sintayehu said that the Development Bank of Ethiopia has made 599.42 million Birr profit during over the last six month.

Construction and Business Bank has also earned 21.29 million Birr profit. It has accomplished 23.47 per cent of its plan. Presently, its branches have reached 116 in the country.

The Ethiopian Insurance Corporation has also collected 215.86 million Birr in the last six month of 2007 E.C, he said.

http://www.fanabc.com/english/index.php/news/item/2269-government-financial-enterprises-hit-6-28-billion-birr-profit

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Sudan keen to enhance cooperation with Ethiopia: President al-Bashir

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Addis Ababa, 19 February 2015  - President Omer Hassan al-Bashir of Sudan reiterated on Wednesday (February 18) that Sudan was keen to lift existing bilateral relations, and most importantly its economic ties with Ethiopia, to a higher level.

Speaking at the celebrations of the 40th anniversary of the Tigray People’s Liberation Front (TPLF) in Mekelle, capital of Tigray Regional State, President Omer al-Bashir said “Our keenness to participate in this anniversary, as in any other events in Ethiopia, is confirmation of the particular relationship between Ethiopia and Sudan.”

The President emphasized that Sudan was ready to enhance and diversify relations within the framework of the shared strategic vision of the two friendly countries.

He said the Sudan was ready to turn the shared borders of Ethiopia and Sudan into an epicenter for comprehensive economic integration.

Both countries are engaged in numerous joint projects aimed to provide cross-border links with roads and railways as well as creating a free zone area along the border to facilitate movement of people and commodities and boost trade.

The celebrations were attended by Ethiopia’s President Dr. Mulatu Teshome and Prime Minister Hailemariam Desalegn as well as President Paul Kagame of Rwanda and President Hassan Sheikh Mohamud of Somalia, Prime Minister Kamil Abdelkadir Mohamed of Djibouti, Prime Minister Ruhakana Rugunda of Uganda, and Dr. Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission.

Also present were representatives of the European Union, US, China and South Korea.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17756:sudan-keen-to-enhance-cooperation-with-ethiopia-president-al-bashir-&catid=71:editors-pick&Itemid=396

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PM Lays Cornerstone for Bangladeshi Factory to be Built with 200 Million USD

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Mekele February 19, 2015 – The government would give special attention to industrial parks that have been constructed in the country as they have immense contribution to industrial development, Prime Minister Hailemariam Desalegn said.

The PM laid a cornerstone today at Quiha, Tigray, for a garments and textile factory to be built with an outlay of 200 million USD by the Bangladeshi Dulal Brothers Company.

Industrial parks have been built in all states because they play huge role for the integrated effort of the government to transform the economy from agriculture-led to an industrial one, Hailemariam stated.

The premier appreciated Dulal Brothers Company for seizing the favorable investment environment in the country and pledged that federal and regional governments would provide all the necessary support for the company.

Dulal Brothers Managing Director, Abdul Jabbar, said on his part the company would contribute to Ethiopia’s agro-processing and manufacturing sector development.

Upon its completion after a year, the factory would create jobs for 5000 people, Jabbar added.

Dulal Brothers operates in 20 countries, it was learned.

http://www.ena.gov.et/en/index.php/economy/item/420-pm-lays-cornerstone-for-bangladeshi-factory-to-be-built-with-200-million-usd

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New Mobile Money Service Launched in Ethiopia

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VENTURES AFRICA – A threefold partnership between Lion International Bank, Somali Micro Finance and Ethiopia-based BelCash Technology Solution PLC has birthed the official pilot of the HelloCash mobile money services in Ethiopia.

The mobile money platform will provide financial services to all Ethiopians, enabling existing and potential customers of Lion International Bank and Somali Micro Finance to execute key financial transactions spanning deposits, withdrawals, money transfers and payments. The pilot deployment of the service is underway in three selected parts of the country with locations that contain a desired mix of agent outlets and branches.

A unique competitive advantage for the HelloCash mobile money services, which differentiates it from most other mobile money services, is its deliberate design that accommodates interoperability and shared infrastructure features. Indeed, the system is designed so that multiple banks and other Monetary Financial Institutions (MFI) can be interconnected and offer the mobile money service to their respective customers. This way, the partnering financial institutions are able to share each other’s agents and branch networks in order to serve each other’s customers in a cost effective manner.

This arrangements creates a win-win scenario for all stakeholders involved as customers of any partnering bank will be able to approach any agent or branch in order to conduct financial transactions regardless of which particular bank the customers belongs too, this translates into added convenience for the customer. Also, the sharing of agent networks allows partnering banks to optimize their investment as well as increase nation-wide service coverage.

With this unique configuration, the partnering financial institutions believe they will establish a formidable network of upwards of 20,000 agents across the length and breadth of Ethiopia within the next 3 years. The ripple effect will cascade all over the country and start a sure trend that will end in a higher financial inclusion index especially at the grassroots.

Mobile Money continues to spread across Africa as an alternative to traditional banking which is usually impeded by gaps in infrastructure and financial inclusion. The Harvard Business Review reports; “While U.S. consumers are just being introduced to Apple Pay, mobile money services like MPesa and MTN Money have been flourishing in African markets. More people have mobile money accounts than bank accounts in at least nine African countries, up from four in 2012. And the continent as a whole leads the world in the adoption of financial services on the mobile platform.”

http://www.ventures-africa.com/2015/02/new-mobile-money-service-launched-in-ethiopia/

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soleRebels Footwear’s BETHLEHEM ALEMU Launches Republic of Leather

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By Maria Nene

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February 18, 2015 –

soleRebels also dubbed as the Nike of Africa is the first African brand of shoes to be acknowledged internationally. This year the leather company launched the Republic of Leather luxury footwear line.

Although soleRebels shoes are widely acknowledged throughout Africa, they are mainly made and manufactured in Ethiopia. The unmistakable handicraft and passion of creative artisans from the African country is clearly spelt out in each pair of shoes. soleRebels is world renowned as it’s the first African footwear brand to be recognized by the World Fair Trade Federation (WFTO) as a Fair Trade certified footwear company.

soleRebels is the brain child of Bethlehem Tilahun Alemu who started the company in 2005. The fresh college graduate formed the company after realizing that her home country Ethiopia had many charity brands but none of their own.

The company not only provides fashionable footwear, it has also provided employment to several Ethiopians and educated the community as a whole. The quality leather that is used for the shoes is carefully selected in Ethiopia and crafted by this team. The brand employs the use of e-commerce to ensure that it spreads not only in its home country but also worldwide.

The Republic of Leather aims to deliver the best quality luxury leather shoes for both men and women which will be delivered to the consumer after only 21 days once you’ve ordered.

The proprietor of soleRebels and Republic of Leather, Bethlehem Tilahun Alemu has been able to employ over 600 creative Ethiopian artisans who make approximately 70,000 pairs of shoes daily. The brand has exported to over 45 countries. For her efforts Bethlehem has been recognized by many establishments which include The African Business Awards which named her Outstanding African Business Woman in 2011, last year the UN named her as a Goodwill Ambassador for Entrepreneurship, CNN also named her as a top 12 female entrepreneur in 2014, in 2013 The Guardian readers chose her as one of Africa’s Top Women Achievers among many others.

http://www.chicamod.com/solerebels-footwears-bethlehem-alemu-launches-republic-leather/

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First Modern Denim Factory in East Africa Begins Trial Production in Ethiopia

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 Addis Ababa: February 18, 2015 – The first denim factory in East Africa has begun trial production in Ethiopia.

Kanoria African Textiles Spinning Manager, Dina Karen, said the factory built in Bishoftu has started trial production.

The manager said the factory is the first of its kind in East Africa in terms of using modern technologies and producing fashionable jeans.

The factory fully owned by Indians is being built with over 43 million USD, the manager said, adding that the construction of the factory that began a year ago has started its trail production with 70 workers. It plans to increase the workers to 350 on going operational.

The favorable investment atmosphere in Ethiopia and the wide market have encouraged the owners to invest in the country, Karen stated, adding that expansion would be carried out next.

Senior Industrial Engineer and Representative of the Ethiopian Textile Development Institute that supporte the factory, Teklay Gebre-Egziabher said the factory will have huge contribution in boosting the foreign currency of the country and popularizing its national brand.

The factory has the capacity to produce 12 million meters of denim annually, he added.

Another factory that produces inputs for this one will be built soon around the capital city, and the produces will be mainly exported, according to Teklay.

There are more than 130 big and medium textile factories in Ethiopia.

http://www.fanabc.com/english/index.php/news/item/2257-first-modern-denim-factory-in-east-africa-begins-trial-production-in-Ethiopia

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Ethiopia sees horticulture boom

By Tinishu Solomon

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Ethiopia’s horticulture sector, according to the country’s recently released total export revenue, remains a top earning product for the East African country.

 

Ethiopia generated a total of $114 million from flower exports during the first six months of its fiscal year, says the Ethiopian Horticulture Development Agency (EHDA).

From the total revenue, $90 million was secured from the export of 289 million flower cuttings and over 20,000 tons of roses and summer flowers in the fiscal year, beginning July 2014.

EHDA also said close to 77,000 tons of vegetables, fruits and herbs were exported in the same period, generating $23 million.

The first half of the current budget year performance has registered a 7.2 per cent increase as compared to the same period last year.

Total revenue from horticulture exports in the 2013 and 2014 fiscal year was $106.15 million.

As in previous years, the Netherlands is the top export destination for Ethiopian flowers, accounting for 80 per cent of the country’s total flower exports.

Other markets include Germany, Norway, Saudi Arabia, Belgium, the United Arab Emirates (UAE), France, Italy, Japan and the US.

According to the agency, countries such as UAE, Somalia, Djibouti, Saudi Arabia and Yemen were the major importers of Ethiopian fruits and vegetables.

Flower plantations cover up to 13,000 hectares, while horticulture farming is on the rise.

This has created a significant export and earnings growth, the agency said.

The country, the fifth leading flower exporter in the world, earned over $245 million from horticultural exports in the last fiscal year ending July 7, 2014 – which exceeded revenue generated in the previous budget year by more than 6 per cent and earned $230.5 million.

http://www.theafricareport.com/East-Horn-Africa/ethiopia-sees-horticulture-boom.html

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Alecto to look for new partner in Ethiopia as Centamin withdraws

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By Philip Whiterow February 18 2015 –

Alecto added it was still confident of the prospectivity of the licences and would look for a new partner.

Alecto Minerals (LON:ALO) has been given notice by Centamin (LON:CEY) that it is pulling out of their joint venture in Ethiopia.

As a result, Centamin’s rights in the Wayu Boda and Aysid Metekel licences will revert to Alecto, which will now assume ongoing commitments at the two tenements.

Alecto added it was still confident of the prospectivity of the licences and would look for a new partner.

Results from Centamin’s 2014 drilling programme, which included 25 diamond drills holes at Wayu Boda, and the analysis of surface work carried out during the year will be handed to Alecto when complete.

Alecto’s flagship project is Kossanto in Mali, with the Ethiopian licences at a much earlier stage of exploration.

It is also owns the Kerboulé Project in northern Burkina Faso.

http://www.proactiveinvestors.co.uk/companies/news/77391/alecto-to-look-for-new-partner-in-ethiopia-as-centamin-withdraws-77391.html

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Ethiopian to launch Manila services

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 Addis Ababa: February 19, 2015  – Ethiopian Airlines plans to launch new services to Manila’s Ninoy Aquino International Airport in the coming months.

Ethiopian Airlines will open up new service to Manila at the end of June. It will fly a one-stop route via Bangkok, Thailand using Boeing 787-8s, and follows the airline’s other new Asian route from Addis Ababa to Tokyo in April.

Ethiopian plans 3X-weekly flights, on the back of a recently signed Philippines-Ethiopia ASA agreement.

The Philippines Civil Aeronautics Board (CAB) said the new routes are part of a drive to open new connections between the Philippines and the Middle East/Africa, and that the service will offer new transit options for Filipinos traveling to both regions.

“These flights offer opportunities for the enhancement of our air connectivity and the development of our aviation network, especially [in] the emerging markets and growth areas in Africa,” said Philippines Civil Aeronautics Board executive director Carmelo Arcilla.

http://www.fanabc.com/english/index.php/news/item/2263-ethiopian-to-launch-manila-services

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National target to improve crop production attainable

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Addis Ababa February 19, 2015 – The Ministry of Agriculture said the target set regarding improving crop production will be attained. The nation targets to harvest 267 million quintals yield this year.

Ethiopia has been working to improve crop production productivity thereby ensure food security, State Minister of Agriculture, Wondirad Mandefro told ENA.

Improving the agriculture sector, which contributes about 47 percent of the country’s GDP is among the priority agendas of the government in the first five-year growth and transformation plan period. The sector helps the country to register fast economic growth over the past decade.

Increasing knowledge of small holder farmers about modern agricultural technologies and provision of professional supervision by extension workers have been carrying out during the past four years to improve production and productivity, he added.

Producing and disseminating modern agricultural technologies, improve utilization by farmers of inputs such as select seed and fertilizers as well as row cultivation are among the activities the government has been engaged.

Because of these efforts production of major food crops has been growing every year. Production of major food crops increased between 2010/11 and 2013/14 by over 48 million quintals.

Since this is the last year for the five-year growth and transformation plan period, the nation is expected to achieve the target set regarding production of major food crops, harvesting 267 million quintals yield.

Pre-harvest assessments indicate that the nation could harvest more than the target, 268 million quintals output, a one million quintals surplus, if it is successful.

Utilization of modern technologies has also helped to increase amount of major food crops harvested per hectare. Farmers are now harvesting 21 quintals output per hectare from 17 quintals in 2010.

Increasing utilization of improved technologies such as fertilizers, select seed, farming tools and water combined with the effort of agricultural extension workers helped to attain the target, he said.

Some years ago, there was a resistance from farmers to try new technologies, but because of concerted activities most of the farmers are desperate to utilize modern agricultural technologies, he said.

Utilization of improved seed and fertilizers as well as row cultivation were among the activities which were not accepted by the farmers.

Grouping farmers in teams consisting five members enables agriculture extension workers supervise the farmers on utilization of technologies, he said.

These groups and supervision of extension workers helped to change attitude of farmers regarding agricultural technologies, Wendirad said.

He expressed believe that productivity will be further improved in the years ahead, since the efforts being exerted towards it will continue strengthened.

http://www.ena.gov.et/en/index.php/economy/item/419-national-target-to-improve-crop-production-attainable

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The arrival of the meher harvest improves food security in Ethiopia

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 Addis Ababa: February 17, 2015 – The 2014 meher harvest (October – December) improved the food security and nutrition situation in most parts of the country.

In SNNPR, admissions of severely malnourished children (SAM) to Therapeutic Feeding Programs (TFP) decreased by 12.6 per cent from 4,091 admissions in November to 3,660 admissions in December (over 93 per cent reporting in both months). TFP admissions in SNNPR have been gradually declining since October 2014. The December 2014 admissions were 25 per cent lower than the admissions during the same time in 2013, and were the lowest when compared to admission rates in the past four years.

Similarly, the admission rates of SAM cases to TFP sites decreased by 28.3 per cent in Oromia, from 13,386 admissions in November to 9,601 admissions in December 2014 (over 87 per cent reporting in both months). However, the December 2014 caseload was 28.5 per cent higher compared to the same time the previous year and the highest compared to the admissions in the past four years.

However in Amhara, TFP admissions in December were 9.7 higher than November admissions, but 15.3 per cent lower when compared to the same time in 2013. The nutritional situation is particularly concerning in woredas that received poor kiremt rains in North Gonder and Waghimra zones. As per the request of the Amhara regional early warning bureau, DRMFSS’ Emergency Nutrition Coordination Unit’s (ENCU) is mobilizing partners to strengthen emergency nutrition responses in both zones, and the situation is being closely monitored. The December number of people admitted to TFP sites was inconclusive in Afar, Somali and Tigray regions due to low reporting rates.

The Regional Emergency Nutrition Coordination Units (RENCU) and nutrition partners finalized 21 bi-annual nutrition surveys in Afar, Amhara, Oromia, SNNP, Somali and Tigray regions. ENCU conducted quality assurance and cleared 18 of the 21 surveys. The GAM prevalence ranged from 4.9 in Halaba special woreda of SNNPR to 11.7 in Sekota Zuria woreda of Amhara region. The SAM prevalence was below 1 per cent in 15 of the 18 surveyed areas. The crude and under-5 mortality rates were below the national and sphere standard emergency thresholds.

http://www.fanabc.com/english/index.php/news/item/2250-the-arrival-of-the-meher-harvest-improves-food-security-in-Ethiopia

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Government Drafts a Directive for Salt Production, Trade

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Directive likely to be stiffly resisted by traditional land holders in Afar

The Ministries of Trade, Mines, Industry and Health are jointly drafting a directive for the production and trading of salt, partly spurred by a salt shortage the country had faced – in 2010.

The draft was initiated by three major reasons according to Ali Siraj, state minister for the Ministry of Trade (MoT). The first one is the shortage that the country faced by the sudden disappearance of salt in the market in 2010.

“This kind of incident should not repeat itself in the future,” Ali stated.

The second reason, he said, was that salt was used by every household every day. Thirdly, excess production and shortage had to be managed by effectively using the resources that the country has.

“The directive defines both the price and market chain of the salt produced in the country depending on the production cost and the transportation cost,” Ali told Fortune.

The country consumes 300,000ql of table salt and 30,000ql to 40,000ql for industrial consumption per month especially for the leather industry.

The country also spends up to 10 million dollars a year for the importation of chemicals, such as chlorine, which could have been extracted from the salt extracted domestically, but which is not happening because of poor technology, Ali says.

It was in 2003 that the country adopted a proclamation that made iodization of salt mandatory for table salts through proclamation number 204/2003. Since then, all salt sold in the country’s market is iodized.

The draft will be further discussed by a committee organized from Ministry of Mines, Ministry of Health, Ministry of Water, Irrigation and Energy and the Ministry of Industry according to Amakel Yimam, Public relations and communication affairs office head at MoT.

According to the Ministry of Mines website, prior to the independence of Eritrea, about 200,000tns of salt was obtained from the Red Sea for human consumption.

The directive will maintain the prices that have been set in 2012 by the Ministry of Trade. Accordingly, the price at the production site 160 Br, and then sold to wholesalers for 200Br to 300 Br.

“The price does not require to be adjusted frequently as the product does not have direct relationship to the international market unless there is an increase in the price of fuel, which is used in the extraction process for water pumps and generators,” Ali said.

But the salt trading in the country is said to be problematic starting from acquiring land for the production to the delivery of the salt to the local markets. The majority of the Ethiopian salt comes from Afar region, where two of the production sites are located- Dobi and Afdera. The other place is Somalia where only an insignificant amount is extracted.

The Ministry has made a study in the previous year and decided to prepare the directive in order to have solutions for those problems observed. But an anonymous official in the Ministry does not have hope in the effectiveness of the directive.

“The directive is being prepared only for formality; it will never see the light of day as the administration in Afar are warning the government to pull its hands off the salt trading system,” he said.

A salt trader at Afdera says that production is much higher than the demand, but it could not be exported because it is not feasible.

http://addisfortune.net/articles/government-drafts-a-directive-for-salt-production-trade/

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EU increases assistance to Ethiopia to 1 billion Euros

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 Addis Ababa February 23, 2015 – Considering proper utilization of funds extended to support projects by the Ethiopian government, the European Union has decided to increase amount of financial assistance.

The EU has decided to increase the yearly 200 million Euros support to one billion Euros for the coming five years starting from this year, considering the proper utilization of assistance, Head of EU Delegation to Ethiopia, Chantal Hebberecht told ENA.

According to her, the EU has been monitoring the utilization of funds allocated for specific projects by Ethiopia and it confirmed that the funds have been spent for the intended purposes.

EU has confirmed that the support allocated for projects in natural conservation, agriculture, education and health has been spent properly, she added.

In addition to the proper utilization of funds, the nation’s effort to alleviate poverty is also another reason for EU to increase its support to Ethiopia.

She noted that Ethiopia has been undertaking successful activities regarding poverty alleviation, reducing child and maternal deaths, realize universal access to primary education, and control malaria, HIV/AIDS and other sexually transmitted diseases.

Allocating 70 percent of its budget to education, infrastructure, health institutions and poverty alleviation projects, helped Ethiopia achieve the MDGs, he added.

Germany, France, UK and Italy are among the leading countries in extending development assistance to Ethiopia.

EU, among the biggest development partners of Ethiopia, is also the destination for 30 percent of Ethiopia’s coffee, leather, horticultural and floricultural exports.

UK, Sweden, Germany and Netherlands are among the leading foreign direct investment sources for the country, with more than 300 projects with a combined capital of 60 billon USD.

Twenty of the total 28 members of the EU have embassies in Addis Ababa, the capital of Ethiopia.

http://www.ena.gov.et/en/index.php/politics/item/434-eu-increases-assistance-to-ethiopia-to-1-bln-euros

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Canadian companies discuss business with Ethiopian counterparts

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 Addis Ababa February 23, 2015 –

A delegation of Canadian businesspersons led by Senator Don Meredith is discussing with Ethiopian businesspersons about business and investment opportunities and possible partnership.

Canadian companies operating in ICT, real estate, hospitality and tourism, finance and mining are attending the forum.

The Ethio- Canada business forum being held here is part of the ongoing efforts to promote business and investment opportunities in Ethiopia to Canadian companies, said Birtukan Ayano, Ethiopian Ambassador to Canada.

It is expected that the visit will give the companies the opportunity to understand the business and investment opportunities in Ethiopia.

Birtukan said Canada is among the strategic partners of Ethiopia saying “Ethiopia counts Canada as one of its key development partners, a partnership which has resulted in highly successfully poverty alleviation programs.”

Senator Meredit said that they understand that there is a conducive atmosphere for Canadian investors to open businesses in Ethiopia in various areas.

He added that labor, peace and stability, which are important for investment, are attracting Canadian companies towards Ethiopia.

“We looking to invest in ICT, Agriculture, energy, house and infrastructure as well as financing sectors here in Ethiopia,” he said.

Canadian Ambassador to Ethiopia, David Usher for his part said that the Embassy has been bringing a group of business persons in the past years to promote business opportunities here in Ethiopia.

“We brought groups of Canadian companies to look and do business in Ethiopia,” the Ambassador said.

Gathering businesspersons of the two countries has importance in creating opportunity for both sides and events such as this one are critical in this regard, he added.

According to Taye Atskeselassie, American Affairs Director at the Ministry of Foreign Affairs, the relationship between the two countries is growing.

There is a smooth relationship between the two and Canadian support to Ethiopia has been consistent, the Director added.

http://www.ena.gov.et/en/index.php/politics/item/433-canadian-companies-discuss-business-with-ethiopian-counterparts

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Ethiopia steams ahead with vision for a modern national rail network

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Addis Ababa, 23 February 2015  –

Ethiopia is in the race to become the first sub-Saharan country after South Africa to lay down an electrified rail network that will link 49 towns and cities.

It has already completed one of sub-Saharan Africa’s first light rail mass transit systems, in the capital, Addis Ababa.

The country-wide scheme is part of a grand experiment in nation building through infrastructure that was launched by the regime of the late Meles Zenawi and is being continued by his Ethiopian People’s Revolutionary Democratic Front party under the leadership of the Prime Minister, Hailemariam Desalegn.

The blueprint for Ethiopia’s modernization is contained in its five-year Growth and Development Plan. The two main elements are an increase in agricultural output to earn export revenue and to prevent a recurrence of the famines of the 1980s, and the construction of modern power and transport systems.

The goals of the infrastructure programme are to increase generating capacity fourfold to 10GW, to construct 16,000km of paved roads and to lay 2,500km of standard gauge electrified rail track – a target that was later increased to about 5,000km.

There is a good deal of interdependence among these aims: for instance, the plan to build an electrified network depends on schemes such as the Grand Ethiopian Renaissance Dam to supply the necessary power.
In 2010, when the present five-year plan was launched, the stated aim was to increase freight capacity by at least five million tons. The cost of constructing the network was put at about $2.5bn over seven years. Both of the productivity and the cost have since risen dramatically.

Growing ambition

For nearly a century Ethiopia has had only one railway: a 1,000mm narrow-gauge link between Addis Ababa and the port of Djibouti that was constructed by the French in the 1920s. Ethiopia is a landlocked country, so this link is the principal route by which goods come and go. However, that line relies on diesel locomotives and partly owing to its poor load bearing capacity it transports only 240,000 tons of freight a year.

In the first decade of the 20th century, the principal aim of the Ethiopian government was simply to rehabilitate this line. Although aid was forthcoming from the European Union, and operators from as far afield as Turkey, South Africa, Italy and Kuwait were hired to build the upgraded line, there was never enough money or enough commitment to make a difference.

The catalyst that allowed the expansion in vision from the upgrading of a single line to the construction of a modern national network was, inevitably, the intervention of Chinese contractors backed by Chinese money.
Back in 2010, when the plan for a national system was laid, the Ethiopian government looked for a foreign company to supply the engineering expertise to build it, holding talks with companies from India, Russia and China.
In the end, only the Chinese persisted, and the initial contract for the Addis Ababa light rail system and a new standard gauge link to Djibouti went to the China Railway Engineering Corporation (CREC), backed with capital from the Export and Import Bank of China. The work was later shared with China Civil Engineering Construction Corporation.

The two projects combined are expected to cost close to $2.8 billion, a sum that will be covered by the Ethiopian government and a loan from the Export-Import Bank of China.

The 780km standard gauge electrified link to Djibouti is now due to be completed in October this year. When it is, the line is expected to haul 11.2 million tons of freight in its first year of operation, rising to 24.9 million tonnes by 2025 – considerably more than the entire national capacity envisaged in 2010.

The Ethiopian government is presently bringing other sections of the network to market. For example, the Turkish contractor Yapi Merkezi was awarded a $1.7bn contract to build the section from the town of Awash to the northern city of Weldiya, with a total length of 389km.

If the country does succeed in becoming a middle income economy with a unified national market, it will be a powerful example to other countries in the region of what infrastructure-led development can achieve.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17841:ethiopia-steams-ahead-with-vision-for-a-modern-national-rail-network&catid=71:editors-pick&Itemid=396

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Agriculture Investment in Africa: Top Countries to Focus On

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VENTURES AFRICA –

Africa’s agriculture sector struggles to access financing and attract investment. Microfinance organizations remain active in the space. But private equity firms and banks are still slowly coming around to the potential of the agriculture space.

Fears over sustainability, education and policy justifiably remain: (1) many African countries do not have an extensive track record of sustained success in the agriculture space; (2) a significant amount of workers in the agricultural space do not have more than primary level education; and (3) policy is ever changing as leadership changes through elections. But there is great hope is the changing landscape for African agriculture, as highlighted by a few of Africa’s rapidly emerging economies with great agriculture opportunity.

Cote D’Ivoire

It is easy to forget that Cote d’Ivoire was embroiled in a civil war less than five years ago. And that sentiment is the best thing about this emerging market. It is a sign of changing perceptions about the country and the growing tailwinds pushing it forward.

The International Monetary Fund estimates that the West African nation’s economy will grow 8% in 2015 after expanding approximately 8.7 percent in 2014. The 2015 projection is lower than the previously stated estimate of 10% from the Ministry of Economics and Finance as investors are already beginning to show tentativeness with investment due to an upcoming election. The fears may be based in some relevant history. But the investment outlook is very positive for the country, especially in the agriculture space.

The unexpected drop in commodity prices and subsequent production is reflected in the results from the oil and mining sectors and their depressed effects on the larger economy. Yet growth expectations in 2014 were achieved through successful investments in infrastructure and very favourable returns in the agriculture space.

Continued growth should be expected in agricultural. A euphemistically described “food basket”, the country is the largest producer of cocoa still with high upside. A few companies are beginning to test the chocolate space with an interest in bringing value back onshore. But the process of making a local chocolate company that can compete globally depends on foreign investment (that is not there yet). Other agricultural products, including coffee, palm oil and cashew nuts, should continue to play a major a role in buoying the agricultural space. Price exposure is an issue but the country’s constantly improving infrastructure base, particularly in transport, and consistently high farming efficiency ensure that small price movements will not burden the country.

Ethiopia

Ethiopia is an agricultural hub in its own nature in East Africa. Its GDP growth in 2014 was approximately 10.6% and is expected to rise to nearly 11 percent in 2015. Research suggests that agriculture will growth approximately 7% in 2015 and possibly as high as 9 percent in 2016.

The country is a top-coffee exporter. A lot of the value however is lost the minute the country exports the raw beans. A bump in local production and packaging by emerging local brands still has great upside potential, especially with brands, including Starbucks and Dean & DeLuca, lurking around the country for the next big brand.

The country is also a major producer of oilseeds, grains and spices, which now account for nearly $750 – 800 million in export revenue. Again the lack of local processing and packaging ensure that the food products exit the country as cheap raw products and enter local western markets as more valuable processed goods after being processed in a local environment or in another western country.

The Agricultural Transformation Agency (ATA), led by former Wall Street banker Khalid Bomba, continues to highlight annual productivity gains as high as 6.5 percent, similar to the message from Ethiopian officials.  The number is more like 3 percent in the past year. Regardless of the exact number, the country is making great leaps for a population that requires a greater rate of production to feed itself let alone take a greater share of the larger global food market.

Tanzania

Tanzania, similar to Ethiopia, is a country whose local population could use a boost in agricultural production. According to the United Nations Food & Agriculture Organization (FAO), low and middle-income Tanzanians still consume more than 65 percent of their calories from street food. This statistic is an improvement over the last two year but still a disturbing reality of the local market.

Tanzania is the ideal locale in Africa to capture a greater share of the global food market. Refusing to give similar large scale land concessions to foreign investors, such as Saudi Arabia, as has been seen in Ethiopia, the country has strategically supported local farmers and seen strong growth in the commercial farming space. All that said, the country struggles to achieve the annual productivity gains that other countries are seeing with large scale and government-backed training schemes.

Coffee, tea, and oilseeds possess the greatest upside as the story of bringing the value chain onshore remains consistent across all countries on this list. Tanzania however may be better positioned to grow its processing and packaging space as several companies already perform a significant amount of such services internally as well as for other local companies.

Honorable Mention (2)

Malawi

Malawi is conundrum for agriculture investors. The country is a very attractive agriculture investment opportunity such that it should be a top three agriculture opportunity. The agriculture sector is expected to grow nearly 6% in 2015 and 2016. It possesses an enabling environment that shows strong production results and is strategically located to access multiple markets, including Mozambique and Zambia. But the politics of the country has not been favorable to business. The currency struggles to find a baseline as investors remain unsure about the country’s leaders to maintain a consistent economic policy over an extended period. The Green Belt Initiative and the National Export Strategy both drafted in 2012 provide a framework for a succession of Malawian leaders to follow. Confronting corruption allegations is also key if the country is to maintain IMF support.

Cameroon

Cameroon is strategically situated among countries that could use its exports: Chad, Central African Republic, Gabon, and Nigeria. Agriculture accounts for more than half of the country’s non-oil export revenues and is expected to grow approximately 4 percent in 2015 and 2016. The number could be drastically higher but productivity gains are still hard to come by. Increased investment in training and a push for improving the business environment for commercial farming is a start but the current efforts are only a start.

http://www.ventures-africa.com/2015/02/agriculture-investment-in-africa-top-countries-to-focus-on/

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Keangnam wins Mojo-Hawassa Expressway bid

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The Ethiopian Roads Authority (ERA) awards the first lot of the Mojo-Hawassa Express way project for the South Korean construction firm, Keangnam Enterprises Limited, Capital has learnt from the Ministry of Transport.

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Minister of Transport Workneh Gebeyehu said the Korean company has won the bid for the first lot of the entire 209 kilometers road.

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The project that will be financed with a loan secured from the South Korean government and a state funding is expected to commence in the current fiscal year. However, Keangnam Enterprises and ERA did not sign the official contract so far.

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The project that will be constructed in different phases will connect the Southern Nations, Nationalities and Peoples Regional State (SNNP) capital of Hawassa to the central part of the country with a comfortable toll road.

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ERA has repeatedly expressed disappointment at the weak performance of the Korean construction firm, Keangnam in the past several years for delaying projects it took from the authority. Samson Wondemu, Public Relations Head of ERA, told Capital that Keangnam will handle the project phase that stretches from Meki to Batu (formerly known as Zeway).

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The African Development Bank (AfDB) has approved a USD 126 million credit for the first phase of 56kms Mojo-Meki road section, which is segment one of the entire project. The local government will contribute USD 99.10 million to fund costs, local taxes, resettlement compensation and other expenses. AfDB also provided a USD 2.44 million to help the Ethiopian Roads Authority (ERA) build its capacity.

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According to Samson, a toll road project stretching from Mojo to Meki is on bid.
The 209 kms Mojo-Hawassa Highway project will be implemented in two phases. In phase I, construction of a 93kms new asphalt road will be carried out between the towns of Mojo and Zeway.

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Keangnam Enterprises has been engaged in several road projects in Ethiopia in the past 16 years. The company has constructed the Mojo-Awash Arba, Ambo-Gedo, Azezo-Metemma, Hirna- Kulubi, and Alaba-Humbo projects, while the Jimma-Bonga-Mizan road project is being constructed at the moment. The Chinese government and the World Bank have promised to finance the remaining 116km toll road from Batu to Hawassa, which is the second phase of the Mojo- Hawassa toll road project.

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The Batu-Hawassa project is also divided into two contracts- Zeway-Arisi Negele and Arisi Negele-Hawassa.
This road forms a fragment of the cross country Mombasa-Nairobi-Addis Ababa highway project. The Mombasa-Nairobi-Addis Ababa road facility is expected to boost local agri-business and regional trade among nations it passes through.
The existing Mojo-Hawassa road, which is dilapidated, forms the road link in the route from Cape Town to Cairo.
Workeneh said the government is in the process of implementing the Adama-Awash toll road, which is a continuation of Addis-Adama toll road in the Addis-Djibouti corridor.

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The Addis-Adama toll road, the first express way for the country, commenced operation in September of last year.  Workneh said that the Adama-Awash project shall be commenced in the coming budget year.  He said the government is approaching financers for the realization of the project.
The Ministry of Transport is also exploring for possibilities to include the Addis-Adama toll way and the Lebu-Akaki-IT Park (Goro) outer ring roads in the toll roads system. The Akaki-IT Park road project, that will connect the express way with the Northern and North eastern parts of the city, will cover 14.5kms, while the 13.6km Akaki-Lebu project will connect the Addis-Adama toll road with the Western and South-western parts of Addis.

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The Addis Ababa – Adama road corridor was constructed with 11.2 billion birr with a loan secured from China’s EXIM Bank. Currently, over 9,000 vehicles use this road every day on average making a daily average earning of 350,000 birr.

http://www.capitalethiopia.com/index.php?option=com_content&view=article&id=4959:keangnam-wins-mojo-hawassa-expressway-bid&catid=35:capital&Itemid=27

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Nation’s Annual Fertilizer Consumption Reaches 1.2 Million Tons

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Addis Ababa  – Ethiopia’s annual fertilizer consumption has reached 1.2 million tons.

http://www.ena.gov.et/en/index.php/economy/item/427-nation-s-annual-fertilizer-consumption-reaches-1-2-million-tons

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Ethiopian agriculture minister opens Argus FMB Africa Fertilizer Conference

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Addis Ababa - Ethiopia’s agriculture state minister, Mitiku Kassa, has opened the sixth Argus FMB Africa Fertilizer conference in Addis Ababa, Ethiopia, on 18 February.

Boosting agricultural productivity is a key priority of the Ethiopian government and the country is now the second biggest grain producer in sub- Saharan Africa, having doubled output since the early 2000s. Ethiopia is an important consumption centre of fertilizer in its own right.

The Argus FMB Africa Fertilizer conference is the largest fertilizer event in Africa, attracting over 400 delegates from across the fertilizer supply chain in Africa and internationally. Representatives from over 50 different countries attend the conference, which focuses on the steps needed to boost production and consumption of fertilizer in Africa, against a backdrop of wider efforts to increase crop yields throughout the continent. As the second biggest grain producer in Africa, Ethiopia is an important market for fertilizer and has also become a hub for distribution throughout east Africa.

Conference delegates have visited the new bulking blend facility on Tuesday, 17 February, which has been organized by the ATA, Agricultural Growth Program-Agribusiness and Market Development, and Yargus Manufacturing.

The state minister has been joined on the speaker panel by ATA chief executive Khalid Bomba and State minister and ministerial adviser on agriculture professor Tekalign Mamo, who outlined initiatives to boost the fertilization of soils in Ethiopia and to increase agricultural productivity. Other keynote speakers at the event include Argus chief operating officer Neil Bradford, and the Executive Vice President of OCP Group of Morocco.

Argus FMB is a leading provider of price assessments, market outlooks, consultancy and conferences for the global fertilizer industry. Argus FMB conferences have provided opportunities to address issues of policy and regulation and uncover emerging trends for the last 30 years. They also provide a platform to meet and do business with leading global producers, traders and distributors.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17774:ethiopian-agriculture-minister-opens-argus-fmb-africa-fertilizer-conference&catid=52:national-news&Itemid=291

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Tapping spice resources for export market vital: Ministry

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Addis Ababa, 23 February 2015 -

The Ministry of Industry said exploiting the untapped spices resources for export market is essential for earning foreign currency which supports other economic sectors.

At the opening ceremony of the workshop which reveals the strategic development study on spices industry prepared by the Ministry of Industry in collaboration with the Addis Ababa Science and Technology University, Industry State Minister Dr. Mebrahtu Melese said that though Ethiopia has various agro ecological zones which could grow more than 100 species of spices, the utilization of the sub sector is negligible. As a result, the nation has not been able to benefit from the sector as it deserves.

According to Mebrahtu, traditional production system, lack of value chain and market integration, among others, are various constraints to tap the resources. As to him, the strategic study revealed at the workshop could be a vital input to tackle the inherent problems of the sector.

He further said that the government has already employed multidimensional approach to modernize the sub sector gradually and to that end capacity building to the actors in the sector, provision of technology and credit facilities have been provided.

In addition, investors involved in the production, processing and marketing have been provided support to become competent in their endeavors and some of them have been able to take part in experience sharing journey abroad.

Spice Sub Sector Industry Strategy Plan Preparation Team Leader Dr. Atsede Asefa on her part said that the Ethiopian spice industry is hindered constraints faced in the process of production, processing, lack of post harvest handling technologies and value chain.

To combat these problems and make the country competitive at the international market all the stakeholders in the sub sector industry, growers, handlers, brokers, processors and exporters need to participate in promoting the proper practices at each stage of the value chain and thrive for satisfying local and international customer requirements in a coordinated approach to tap the market at optimal level.

According to a recent report, in the country 73.3 million hectares of land is suitable for agriculture out of which 3.7 million hectares of land already enclosed for local and foreign investors for the production of spices with better technology and the necessary inputs, she added.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17833:tapping-spice-resources-for-export-market-vital-ministry&catid=52:national-news&Itemid=291

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South Boulder Mines looks to publish Colluli Potash PFS in first quarter

Monday, February 23, 2015

South Boulder Mines’ has confidence in potential of Colluli Potash

South Boulder Mines (ASX:STB) has significant project milestones ahead for its Colluli Potash Project in Eritrea with completion of all pre-feasibility study work streams and publication of the PFS economics in the first quarter.

The company also expects to complete a high quality definitive/bankable feasibility study (“DFS”) in third quarter.

Adding to the interest, the DFS work has already presented attractive optimisation opportunities that will enhance the final feasibility case.

“After the key PFS information is published, we intend to make progress on a number of key commercial and corporate fronts that will support the development of Colluli and clearly demonstrate a significant level of major investor, infrastructure developer and end user interest in Colluli,” chairman Seamus Cornelius said.

He added the company will seek shareholder approval at an AGM before 31st May 2015 to change its name to better reflect its activities as an emerging producer of premium potash and agricultural chemicals from the Colluli resource.

Cornelius noted that Colluli will compare favourably with any of the more common emerging muriate of potash projects from any perspective including capital expenditure, operating costs and mine life.

The project has a unique composition of potassium bearing salts in solid form, suitable for the production of both potassium sulphate (SOP) and potash of magnesia (SOPM).

These are premium potassium fertilisers with limited primary production globally due to resource scarcity.

Moreover, the considerable size, shallow depth and consistency of the deposit make Colluli highly amenable to economically viable open cut mining. It is also in close proximity to the Red Sea coast, allowing easy access to end markets.

Recent Activity

Earlier this month, South Boulder completed metallurgical testwork for the project, which eliminated the need for fine grinding from the process plant circuit.

It also identified a number of internal plant configurations and the company kicked off optimisation work to further enhance DFS process design and internal plant configuration.

Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.

Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.

Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.

A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.

The company previously noted the PFS is on track for completion in February.

In addition, AMC Consultants is working on a final resource report.

Colluli Potash Project

Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.

It contains over 1 billion tonnes of potassium bearing salts suitable for the production of potash fertiliser in the Danakil depression, an emerging potash province where over 4 billion tonnes of measured and indicated potassium bearing salts have been identified.

The company continues to work with the equal partner Eritrean National Mining Company (ENAMCO) to develop the Colluli Potash Project.

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Cashed up

South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million in January through the placement of 10 million shares at a 6% premium to market.

Milestones ahead

– Completion of all PFS work streams;
– Publication of the PFS economics in Q1; and
– Completion of a high quality DFS in Q3.

http://www.proactiveinvestors.com.au/companies/news/60846/south-boulder-mines-looks-to-publish-colluli-potash-pfs-in-first-quarter-60846.html

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Dead Sea Works employees call strike

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The workers committee is demanding cancellation of all layoffs at Israel Chemicals and the resumption of talks.

Workers at Israel Chemicals (TASE: ICL: NYSE: unit Dead Sea Works have decided to begin an all-out strike after management did not respond to demands by the Histadrut (General Federation of Labor in Israel) and workers committee to remove the threat of layoffs for hundreds of employees. The strike is also in solidarity with 140 planned layoffs at sister Israel Chemical company Bromine Compounds. Strikes have also begun at Bromine Compounds and the power station in Sedom protesting the hundreds of planned layoffs at Israel Chemicals.

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Dead Sea Works workers committee chairman Armand Lankri said, “We are prepared to fight at any price for against the management’s demands. It is due to the hard work and dedication of its employees that Israel Chemicals has succeeded and is profitable, and management’s intention of harming employees and firing them is absurd, aggressive, and above all unnecessary. I call on management to cancel the layoffs and begin talking with us.”

Israel Chemical Israel general manager Avner Maimon said, “Striking the bromine factory in Sedom is an extreme step that sacrifices the 400 employees of Dead Sea Magnesium on the altar of this extremist and violent struggle of the Bromine Compounds workers assisted by chairman of the Dead Sea Works workers committee Armand Lankri. Closing the bromine factory may lead to irreversible damage within 72 hours that will result in closure of the Dead Sea Magnesium plant and to safety and ecological dangers. Thus Dead Sea Works management has urgently turned to the Labor Court to prevent the grave risk of this dangerous step by the chairman of the workers committee of the Dead Sea Works.”

http://www.globes.co.il/en/article-dead-sea-works-employees-call-strike-1001011600

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Ethiopia to Showcase Success on Addis Int’l Conference on Financing for Development: MoFED

 Addis Ababa: February 21, 2015 – Ethiopia will showcase its success to the world on its experience in financing its rapid and sustainable growth, industrial drive and infrastructural development at the 3rd International Conference on Financing for Development, according to MoFED State Minister.

http://www.fanabc.com/english/index.php/news/item/2279-ethiopia-to-showcase-success-on-addis-int-l-conference-on-financing-for-development-mofed

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8th All-African Leather Fair 2015 opens

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Addis Ababa, 21 February 2015 - The Ethiopian Leather Industries Association (ELIA) launched the 8th edition of The All-African Leather Fair yesterday here at the Millennium Hall.

On his opening address, State Minister of Industry Tadesse Haile said that the government has identified the leather industry to be one of the priority sectors due to its potential in employment generation, to generate export earnings, and its strong linkage to the agriculture and other economic sectors.

The country is endowed with unexploited resources and is strategically using its geographical location near to the European and Middle East market offering the best option for businesses, he added.

Tadesse also said that among the stakeholders, local and foreign leather industries are key players in transferring technologies, in creating job opportunities, in exporting competitive leather products and in earning a considerable amount of foreign currency for the country.

He said adding that investment is also a key element for rapid economic growth and creation of a strong and competitive industrial base.

According to Tadesse, Ethiopia is among the top ten countries in the size of livestock population in the world. Livestock is an important source of raw material for the development of the leather industry which has been accorded high priority in our export sector.

Ethiopia ranks second in Africa next to Nigeria. The country has a major economic comparative advantage in terms of availability of low cost electric power, cheap labor and access to major duty free markets.

President of the Association, Yigzaw Assefa said on his part that nearly 200 exhibitors are participating at the 8th All African Leather Fair, of which 49 are overseas. Including 1,500 foreign participants, more than 10,000 visitors are expected in this three-day trade fair. A comprehensive range of products relating to leather industry such as finished leather, footwear, leather garments, leather goods like gloves, wallets, bags, components and accessories to the leather industry will be exhibited.

European Union Delegation Head to Ethiopia Ambassador Chantal Hebberecht said that the leather and leather products industry shows great potential based on the impressive livestock resources at Ethiopia’s disposal. The livestock resource made up of more than 100 million cattle, sheep and goats, represents a potential of some 20 million hides and skins renowned for their quality at international level.

Ambassador Chantal also said that export earnings from leather and leather products almost doubled within a decade and are expected to continue to grow. Among the first Ethiopian export items, the leather sector is the only one exploring semi-processed and manufactured goods and it has expanded on average by 14 per cent over the past 5 years creating jobs for millions of Ethiopians.

Among foreign participants there were Kenya Leather Development Council, and Cihan Import & Export, while on the side of local participants, Anbessa Shoe Share Company, Sheba Leather Industry P.L.C. and Mahlet Lathers.

These participants remarked on their part that the trade fair would help them get substantial knowledge and information by sharing experiences and best practices with national and international industries, visitors as well as other stakeholders helping them benefit from the worldwide network of the leather market.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17807:8th-all-african-leather-fair-2015-opens&catid=52:national-news&Itemid=291

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COMESA says countries should learn from Ethiopia’s leather industry

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 Addis Ababa Feb 21, 2015 – The common market for Eastern and Southern Africa (COMESA) lauded Ethiopia for giving due attention to the leather industry.

http://www.ena.gov.et/en/index.php/economy/item/430-comesa-says-countries-should-learn-from-ethiopia-s-leather-industry

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Ethio-German Relation Strengthened by People-to-People Ties, Ambassador Joachim

 Addis Ababa: February 21, 2015  – The Ethio-Germany relationship is being consolidated by people-to-people ties beyond the diplomatic relations, according to Germany’s Ambassador to Ethiopia.

Monday, February 23, 2015  – edited by cambodine

In a few months’ time, the African Development Bank (“AfDB”) Board of Governors will vote to decide the successor to President Donald Kaberuka whose presidency comes to an end on August 31, 2015.  Having first gained international prominence for undertaking sweeping economic reforms as finance minister in a post-genocide Rwanda, Kaberuka has had a highly successful ten years of service as AfDB president.  Under his leadership, the AfDB made major improvements in delivery of critically needed infrastructure and technical advice, both of which contributed substantially to the sustained economic growth that Africa has seen during that time.

Today, the AfDB is increasing its impact by using new models of financing projects through investments in infrastructure funds and partial risk guarantees.  Both help to attract private capital, which is absolutely critical to fill the infrastructure gap in Africa.  It is a model that both Power Africa and Trade Africa have adopted.  Indeed, when the Obama Administration was in the early stages of conceptualizing these initiatives, it reached out to Kaberuka for his ideas and support.  Kaberuka quickly embraced the initiatives and mobilized a senior team of experts to work with the U.S. government, creating an effective partnership that lasts today.

Set out below are the eight individuals who are looking to follow in Kaberuka’s sizeable footsteps.  The ideal next AfDB president will be a global visionary, an inspirational leader, and an outstanding manager of a large, multinational bureaucracy of some 1,500 employees involved in billions of dollars in projects across the continent.  The next AfDB president is taking the helm at an especially critical time in the Bank’s history as s/he will be spearheading ongoing implementation of the AfDB’s Strategy for 2013-2022.  With a special emphasis on fragile states, agriculture and food security, and gender, the Strategy aims to achieve sustainable and inclusive growth through infrastructure development; regional economic integration; private sector development; governance and accountability; and skills and technology.  Regional economic integration through the regional economic communities was an objective of particular interest to Kaberuka who recognized the need to change the fact that Africa continues to trade more outside Africa than within Africa.

• Akinwumi Adesina (Nigeria).  Described as “a man on a mission to help Africa feed itself,” Adesina is one of the leading proponents of transforming Africa’s agriculture sector.  In his current role as Minister of Agriculture and Rural Development of Nigeria, he has introduced a variety of innovations to improve access to financing and inputs as well as eradicate corruption and other market inefficiencies.  He also is one of 17 global leaders appointed by UN Secretary-General Ban Ki-moon to the Millennium Development Goals Advocacy Group.  In addition, he has served as the Vice-President for Policy and Partnerships at the Alliance for a Green Revolution in Africa and was the 2013 recipient of Forbes’ prestigious African of the Year award.

• Sufian Ahmed (Ethiopia).  Over the course of his two decades of service as Finance Minister of Ethiopia, Ahmed has overseen the transformation of the Ethiopian economy into one of the continent’s fastest growing.  Since 2006, the Ethiopian economy has averaged double digit annual growth and seen particularly impressive growth in its power and infrastructure sectors.  Ahmed’s most recent accomplishment is overseeing Ethiopia’s debut issuance of a Eurobond.  The oversubscribed bond raised $1 billion that will be used to expand the country’s power, sugar factories and manufacturing sectors.  He also is leading the government’s negotiations for Ethiopia’s first-ever Power Purchase Agreement for the 1,000 MW Corbetti geothermal power project.

• Jaloul Ayed (Tunisia).  Ayed is a well-renowned banker with experience in both the public and private sector.  He currently serves as the President of the MED Confederation, “a newly created alliance which aims to promote socioeconomic cooperation in the Mediterranean region.”  Prior to this role, he was the Tunisian Finance Minister and “served in the two interim governments that were formed following the Tunisian revolution.”  His private sector experience includes 18 years with Citibank, setting up the investment banking arm of the Moroccan BMCE Group and founding Argan Invest, which is Morocco’s largest private equity platform.

• Kordjé Bedoumra (Chad). In his over twenty-five years with the AfDB, Bedoumra held leadership positions (including a tenure as Secretary-General) across a range of “areas including transport, power, water and sanitation, telecommunications and finance.”  In his current capacity as Chad’s Minister for Finance and the Budget, Bedoumra is playing a leading role in helping the country to realize its ambition to double its domestic oil production and unlock other mineral resources.  Bedoumra also serves as Chad’s representative on the Board of Governors of the International Monetary Fund.  If elected, he would be the first president from the Central Africa region in the bank’s 50-year history.

• Cristina Duarte (Cabo Verde). In the nearly ten years that Duarte has served in her current role as Minister of Finance, the country has graduated to middle-income status and has been commended for “good governance, sound macroeconomic management, trade openness and increased integration into the global economy, as well as the adoption of effective social development policies.”  Cabo Verde also has been recognized for its “significant efforts” in the areas of democracy, human rights and inclusive economic growth.  In addition, Duarte’s experience with various international organizations — such as the AfDB, the World Bank and the United Nations — is complemented by private sector experience including serving as a Vice-President for Citibank in Angola.  If elected, Duarte would be the first woman president in the bank’s 50-year history and also the first from a Lusophone country.

• Samura Kamara (Sierra Leone).  Kamara is the Minister of Foreign Affairs and International Cooperation of Sierra Leone.  He has extensive experience in development economics at the sovereign level (as Central Bank Governor and then Finance Minister) as well as the international level (having served on the Board of Governors of the Islamic Development Bank and the African Development Bank).  Kamara has played a senior role in representing Sierra Leone before the African Union as well as the United Nations.

• Thomas Sakala (Zimbabwe).  Having first joined the AfDB in 1983, Sakala is another candidate with extensive experience with the institution.   His last official position was as Vice-President for Country and Regional Programmes and Policy which involved oversight of the division responsible for “dialogue and programming of AfDB’s operations in the Regional Member Countries; policies and operational resources; procurement and fiduciary services; and partnerships and cooperation.”  In his capacity as Vice-President, he also was “a member of the Bank’s Senior Management Team and [contributed] to its overall Strategic Orientation.”  He stepped down from this position in October 2014.

• Birama Boubacar Sidibe (Mali).  Sidibe is a veteran of development financing institutions.  Currently the Vice-President of Operations at the Islamic Development Bank, Sidibe was with the African Development Bank for 23 years where he “held various technical and managerial positions covering operational as well as corporate areas.”  Between these two tenures, he served as the Managing Director of Shelter Afrique, “the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.”  (Shelter Afrique is “a partnership of 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.”)

Over the next few months, we will follow with great interest as the eight candidates articulate their vision for the AfDB and make the case for why they should be selected to lead one of the most important institutions in Africa.

Sourced here  http://www.natlawreview.com/article/depth-look-candidates-african-development-bank-president

About this Author

Mipe Okunseinde

Associate

A senior associate in the White Collar Defense & Investigations practice group, Mipe Okunseinde’s practice focuses on the range of compliance issues arising under anti-corruption laws, international trade controls, and related federal laws and regulations. Ms. Okunseinde assists companies in conducting internal investigations and represents companies in enforcement actions by the BIS, DOJ, FTC, OFAC, and other U.S. federal government agencies. In addition, she advises clients on addressing commercial, legal, and other considerations relevant to proposed transactions, entering…

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Earl W. Gast

Senior International Advisor

Earl Gast is a senior international advisor for Africa.  Mr. Gast, a non-lawyer, was the Assistant Administrator for Africa at the United States Agency for International Development (USAID) prior to joining the firm.  In this role, he oversaw a large and varied portfolio that provided $7 billion in assistance to 49 African countries.  Prior to this appointment, Mr. Gast served as the USAID’s Mission Director in Afghanistan, overseeing the Agency’s largest overseas program, which was providing $4 billion in assistance to increase stability through…

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www.cov.com

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In a narrow room where he has piled up bags and bags of salt, each measuring 50Kg, Gashaw Guade has made a booth to serve as his work station in Merkato Chew Berenda. It was there that he was sitting and talking to his customers over the phone while his workers carried the bags and arranged them on the open spaces when Fortune visited his place on Thursday February 19, 2015.

Gashaw has been in the business of salt trading since 2011, taking over from his father. He receives the salt from distributors who bring it from Afdera, a salty lake in eastern Ethiopia, 820km from Addis Abeba in the Afar region, the major salt producing region in the country.

“I receive up to 400ql of salt every two weeks from two of my suppliers from whom I buy a quintal for 310 Br and sell for 320 Br,” he says.

He has constant customers who come from different parts of the country to buy from him and they take from 20ql to 100ql at a time.

The salt that he sells is labeled with an expiration date and place of production.

It was following the independence of Eritrea in 1993 that Ethiopia began searching for alternative sources of salt that could replace the 200,000tn of salt, which was obtained from the Red Sea for human consumption as indicated in the Ministry of Mines (MoM) website. This resulted in the immediate discovery of three potential areas of salt production in the country- all in the eastern part Ethiopia.

The first one is Afdera Lake, which, according to a data from the Ministry of Trade (MoT), with a potential for 292 million tonnes. The lake’s area is 117sqkm while the average depth of the lake is 25mt. The amount of water in the lake is 2,920.1 million cubic metres.

The second potential place, Dobe, is also located in the same region as Afdera. Dobe is able supply 113,200tn of salt a year. The third one is in the Somali region’s Erkale Lake.

Afdera takes 75pc of the market share with 270,000ql of salt a month. Dobe follows with 16.25pc of shares with 65,000ql of salt a month and Somali, 8.75pc with 35,000qtl supply to the market.

In order to allow the production of salt domestically, four producers were licensed by the federal government and more than 2,500 by the the regional government to operate in the Afdera Lake,according to Ali Seblele, Afar Region’s Mines Bureau head.

Out of the licensed 2,500 in Afdera, only 565 are operating in the area, according to Ali, because the rest could not begin operation as per the license they took. They renew their licenses through relatives and friends giving reasons for their delay, according to Ali.

“But if they do not start within 10 years, their licenses will be revoked and their land will be given to other interested producers,” Ali told Fortune.

The licensed producers in Afdera are divided into three; higher, medium and traditional (small scale) producers. The higher producers are licensed at the federal level while the remaining two are licensed at regional levels.

The higher producers are given three to five square kilometres of land based on the amount of money they invest for the production. They need to invest more than 6,000 Br.

The medium level producers are given 20,000sqm to 80,000sqm of land and they invest between 500,000 Br to 600,000 Br while the traditional producers are given less than 15,000sqm of land.

In Afdera in 2007, there were 321 production sites from which 2.1 million tonnes of salt were expected to be produced yearly as data from the MoT indicate.

In 2006, the price of salt fell to the extent of being sold at 50 cents in the market because of the producers’ uncontrolled production and supply to the market. Then an association called Afdera Salt Producers Support Association was established in order to stabilize the market. The Association has 450 member producers and the only criterion to become a member is being a producer.

“There were also people who withdrew from the business, some who died because of stress and some whose houses were held as collateral by banks,” remembers the vice chairman of the Association, Tesfay Berhe (Major).

“But after the establishment of the Association, it set a quota for the producers to supply to the market according to their production and those whose houses were held as collateral were given incentives to sell their products without quota and their houses were returned,” he added.

The Ethiopian market demand for table salt is 300,000tns to 350,000tn of salt a year. This number is calculated according to the production of each producer and the quota for the supply to the market is determined.

The produced salt at the place is surveyed and the quota to each producer is assigned according to the demand in the market. Currently, it is estimated that the produced salt at the place is piled up to be 11 million quintals and the association, after calculating the quota of each producer, announces a bid and selects three wholesalers. These wholesalers are given 100,000qt each. And these wholesalers distribute to distributers that are 15 in number in the country according to data from the MoT.

Two of the distributors are in Tigray, three in Amhara, two in Addis Abeba, as well as one for Adama, Arsi and Bale, two for Dire Dawa and Harar, two for Jimma and Wollega, as well as three for Awash, Walaitta and Arbaminch.

The wholesalers buy the salt from the sites for 150 Br as set by the MoT and they sell it for 210 Br to the distributors after considering their profit margin and transportation costs. The profit margin ranges from 10pc to 20pc. Then the retailers buy for 310 Br and sell it for 320 Br. The transportation cost is calculated to be 80 Br to 90 Br per quintal.

But the quota system also came with its own problems that no one has tried to currently resolve. There is more salt that has been produced than there is demand for, which is accumulated in the open without any protection, leading to a loss or “waste of resource”, according to Ali, Afar’s Mine Bureau head.

One of these producers at Afdera is Mile Salt Production Plc, headed by Berhe Nega (Major). Their company, which has 11 shareholders and started production in 2003, has 10 production sites from each of which they produce an average of 16,000ql. But last year, a flood destroyed four of the sites and they are rebuilding them again this year.

The salt they produce is supplied to people who will buy it through a bid. But the price that is set for the producers considering the production cost is not right according to him.

“We do not sell all the salt that we produce. The production cost is for the whole but the amount we sell is only four to five percent of the produce we have on our hands,” Berhe told Fortune. “Therefore, the price is not fair.”

But the MoT disagrees, refuting the aforementioned claim and stating that the price set by it is in consideration of the benefit of all the parties in the process. The MoT further states that the salt should not be expensive in the market as it is an abundant resource in the country.

“The price of salt was set without precluding any of their expenses and by discussing with the producers themselves. The ones that complain over the price are the ones who want to benefit much from small trade activity,” Ali Siraj, state minister of Trade told Fortune. “We have to keep the interest of the consumers.”

When producers like Mile Salt Production Plc came into being, the country’s salt was not iodized and in 2011, a proclamation that compels the producers to iodize the salt they produce came into effect. This came with an additional cost for iodization. The Ministry of Health (MoH) supplied the producers with potassium iodate, a chemical that is used for iodization of salt.

The MoH supplied the chemical for free for the first year, after which it started availing sale, according to Birara Meles, Nutrition Case Team Coordinator at the MoH.

“All the salt that is produced for consumption in the country is iodized and control on the products is made on checkpoints from the production site to the retailing sites,” Birara said.

As data from the MoT indicates, from 308 samples taken at Semera checkpoint in 2013, 40pc was found to be iodized less than required level, 27pc more than required level and only 33pc was properly iodized.

Per each kilogram of salt produced, there needs to be 34mg to 66mg of potassium iodate according to Food, Medicine, Healthcare Administration and Control Authority (FMHACA) table salt directive.

The cost of iodization for a quintal of salt is 8.3 Br; the producers are supplied with 29ql of potassium iodate monthly, with a kilogram of potassium iodate being used to iodize 147ql of salt And the cost goes to the consumers.

The coverage of iodized salt in the country in 2011 was only 15pc whereas it has now grown to 88pc, according to UNICEF, Global Alliance for Improved Nutrition (GAIN) and Micronutrient Initiative (MI) report on February 7, 2015. The Growth and Transformation Plan (GTP) for Ethiopia is to reach 95pc by the end of 2015.

The amount of salt that was iodized in 1998 was one of the highest in Africa standing at 80pc. The figure failed consecutively in the following years being 28pc, 19pc and 4.2pc in 2000, 2005 and 2008 respectively. Although the figure now is at 88.8pc, the amount that is properly iodized is 23pc according to the report.

Because of iodine deficiency, the total goiter rate in the country is 40pc for children and 36pc for mothers. Iodine deficiency also causes up to 50,000 still births a year, according to the report by UNICEF, GAIN and MI, which added that the country has lost as much as 64 billion Br as a result between 2005 and 2015.

The salt producers in the country have no mechanized way of producing iodized salt except for one company that is semi government owned- Afar Salt Producers S.C. It was established by the government, which invested 50 million Br and Endowment Fund for Rehabilitation of Tigray (EFFORT), which invested 10 million Br.

They have invested 70 million Br on the machine and they produce salt that is up to the standard according to the offices officials. The machine they have has a capacity of iodizing 100,000ql of salt a month while they were limited only to 25,000ql so as to give the other producers opportunity. The share company is not considered in the quota system, which the others are governed by.

The company has 100 workers, out of which 75 work on the production site in Afdera. But, as the officials from the company have stated they have not sold their products for seven months because of complications that came after the establishment of a new share company by the producers, which is to be the wholesaler of the products at the place.

The new share company called Kadaba had many of the producers as members and many were willing to join it and supply their products to the share company without bids because of the higher price it offers for their products by lowering its own profit. The price it offers for a quintal of iodized salt is 165 Br while the market is set to be 150 Br.

“This is to be encouraged as it benefits the producers; but it will be problematic if this comes with a change in the market price of salt,” Ali Siraj told Fortune.

Afar Salt Producers S.C. was not willing to supply its products to Kadaba because of two reasons. The first one is because of the equal status of the two share companies and the other is the illegality to sell without a bid.

“We are both share companies, so how can we be under the newly formed one? We also hold financial records and report our losses and profits, which require us to sell our products through bids,” a high level official from Afar Salt Producers S.C. said.

The MoT, in concert with Ministry of Mines (MoM), Ministry of Industry and Ministry of Health (MoH) is preparing a directive for the trading of salt in order to solve all the problems that are observed in the trading of salt en route. The directive is also said to solve the problem of wastage of salt that occurs during the production and distribution process.

“We have asked the federal government to prepare a directive that can determine the amount of salt that the producers should produce, but there was no reply,” said Ali Seblele in a phone interview with Fortune.

Having this amount of salt resource in the country, Ethiopia imports iodized salt, especially from Djibouti and Yemen. As a report by the United Nation’s Commodity Trade Database indicates, although the figure has declined from 603,037 dollars in 2005, the import of the country’s salt was 225,182 dollars in 2011.

“The importation of salt is waste of foreign exchange and an unwise use of the resource we have,” says Ali Siraj.

Sourced here  http://addisfortune.net/columns/the-salt-in-our-lives/

Feb. 23, 2015

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…)The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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Construction of Awash- Hara Gebeya railway line launched

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Addis Ababa February 25, 2015 –

Construction of the Awash- Weldia- Hara Gebeya railway project, which is part of the railway system that will connect northern and north eastern part of the country with port of Tadjoura, officially launched today.

Construction of the 370km long railway line is expected to be finalized within three and half years.

The project, in which its construction is being carried out by a Turkish company, Yapi Merkezi, will consume 1.7 billion USD.

Yapi Merkezi has completed the Dubai Metro Project, Casablanca tramline and Ankara – Konya high speed rail line that make the company a world brand in rail systems.

The contract agreement for the construction of the railway line was signed two years ago and the plan was to finalize the project in December 2015.

But construction of the project forced to be delayed because of problems related to securing funds from development partners.

Now the nation has managed to secure the money needed to finance the project, most of it from Exim Bank of Turkey and the remaining from other EU countries.

The partnership between the EU countries to extend the support to this project is a result of the nation’s policy that prioritizes economic diplomacy, said Prime Minister Hailemariam Desalegn during the occasion.

The railway, which will operate using renewable energy, is a manifestation of Ethiopia’s target to build environmental friendly projects that use renewable energy and minimizes expenditure on oil, he added.

The Mekele- Woldia- Hara Gebeya- Semera- Tadjourah Port railway project is one of the eight railway routs identified by the government as important to boost the transportation network within the country and with neighboring countries and ports.

A few days ago a cornerstone was laid for the construction of a 220km railway line between Mekele- Hara Gebeya- Weldia, which is part of this railway system. Construction of this project will be completed within three and half years and is expected to consume 1.5 billion USD.

Construction of these and other railway infrastructures that will boost domestic transportation system and enables the nation reach ports makes Ethiopia the leading African country in railway developments, Hailemariam said.

http://www.ena.gov.et/en/index.php/economy/item/445-construction-of-awash-hara-gebeya-railway-line-launched#

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Ethiopia becoming one of Africa’s leading countries in railway transport network

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Addis Ababa, 25 February 2015 –

The 1,500 km railway line being built in Ethiopia puts the country as one of the leading countries in Africa in railway transport network, Prime Minister Hailemariam Desalgen said.

PM Hailemariam made the remark while laying the cornerstone for the construction of the 375 km Awash-Kombolcha- Woldia-Hara Gebeya Railway Project today in Kobolcha town.

In addition to reducing environmental pollution and fuel expenditure as it uses renewable energy, the route is significant for mobility of goods and people, he said.

Transport Minister, Workneh Gebeyehu, on his part said that the government of Ethiopia will invest 1.7 billion US dollars obtained from Turkish Exim Bank and EU member countries for the project.

The railway project to be built by Yapi Merkezi, a company based in Turkey, will be finalized within three and half years, he said.

ERC Board Chairperson and Adviser to the Prime Minister with the Rank of Minister, Dr. Arkebe Equbay, said the new railway line will connect northern Ethiopia with central region.

With a running speed limit of 120 kilometers per hour, the railway line would help transport 750,000 passengers and 8.5 million tons of goods per year, Dr Arkebe said.

A cornerstone for the construction of Mekelle –Woldia-Hara Gebeya railway line at a cost of 1.5 billion US dollars was laid last week, it was noted.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17883:ethiopia-becoming-one-of-africas-leading-countries-in-railway-transport-network&catid=71:editors-pick&Itemid=396

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Second phase of AALR to continue during GTP II

Addis Ababa: February 25, 2015 –

http://www.fanabc.com/english/index.php/news/item/2309-second-phase-of-aalrp-to-continue-during-gtp-ii

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EPHARM to Have New Factory for $100m

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Ethiopian Pharmaceutical Factory (EPHARM) embarked on a new factory that is being built in Sebeta town on a 40,000sqm land.

The construction, which will cost the factory up to 100 million dollars is said to follow the international standard of good manufacturing standard (GMS), which will allow it to sell the products competitively to other countries generating foreign exchange according to Mohammed Nuri (MD), EPHARM’s board of director’s chair.

The factory, which celebrated its golden jubilee last Saturday, will see its workers, which are now less than 600 increased to 1,500 when the factory becomes operational.

As the six-month report of the Ministry of Industry (MoI) for the half fiscal year of 2014/15 indicates, the performance of pharmaceuticals and medical equipment production capacity has reached 62pc. And according to the Ministry of Trade’s (MoT) 2013/14 fiscal year report, 64.3 million dollars was gained falling back from the planned 110 million dollars. This performance is only 59pc of the plan.

The government, in its five-year Growth and Transformation Plan, had planned to source 50pc of medicinal demand from local production but it achieved below 20pc.

http://addisfortune.net/articles/epharm-to-have-new-factory-for-100m/

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State Minister Dewano meets a Canadian Trade Mission

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Addis Ababa, 25 February 2015 –

State Minister for Foreign Affairs, Dewano Kedir, met on Tuesday (February 24) with a Canadian Trade Mission led by Senator Don Meredith.

The meeting followed the successful two-day Ethio-Canada Business Forum held (February 23-24) in Addis Ababa.

The bilateral discussions covered the overall importance of the business forum, the Trade Mission’s plans for investment in Ethiopia, the political will for stronger and more business cooperation and the potential and possible opportunities the Government of Ethiopia could offer Canadian companies.

Senator Merdith described the two-days of business meetings as the foundation for further cooperation.

He said cooperation in trade and investment between the two countries would help Ethiopia create much needed jobs for its youth and for Canadian companies to benefit from the opportunities available.

The representatives of the Canadian Trade Mission, he said, had been very satisfied with the discussions held with high-level government officials and were enthusiastic about the prospect of investing in Ethiopia.

The Senator also appreciated Ethiopia’s political commitment and its vision to reduce poverty and improve the welfare of the people.

Dewano Kedir on his part noted that Ethio-Canadian ties in the sphere of business had been minimal and stressed the need to tighten this bond of economic cooperation.

State Minister Dewano, who detailed the opportunities and potentials available, noted that Ethiopia was a staunch promoter of peace in order to set the stage for economic development, for the country and indeed the region.

He added that the country was moving ahead with clear policy directions and determined to wipe out poverty and backwardness.

The Canadian Trade Mission came to explore the business opportunities offered by Ethiopia at the two-day Ethio-Canada Business Forum as part of the events marking the 50th Anniversary of Ethio-Canada Friendship.

Twenty seven representatives of Canadian companies as well as high-level Government officials and leaders of business organizations in Ethiopia attended the forum, exchanging views on how to expand and carry forward business cooperation between the two countries.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17882:state-minister-dewano-meets-a-canadian-trade-mission&catid=52:national-news&Itemid=291

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Ethiopia, Czech Republic Agree to Boost Relations

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Addis Ababa February 25, 2015 – 

Ethiopia and Czech Republic have expressed their desire to boost cooperation.

Foreign Affairs State Minister Berhane Gebrekiristos held talks today with Czech Republic Deputy Foreign Minister Peter Drulak.

During the occasion, State Minister Berhane said Ethiopia and Czech Republic have a desire to improve their cooperation in different spheres.

The state minster, who recalled that the relation between the countries has exceeded half a century, stated that the cooperation should be consolidated in trade, agriculture, and industry as well as other sectors.

The cooperation of the countries in beer, textile and leather processing has to be extended to security issues in the region, he added.

Deputy Foreign Minister Drulak said on his part the discussion would help bolster the relations of the two countries to a higher level.

Czech Republic would support Ethiopia’s peacekeeping effort not only as a country but also as a member of the European Union and North Atlantic Treaty Organization (NATO), Drulak pointed out.

Preparations are underway to arrange working visits of leaders of the two countries in order to consolidate relations and sign in parallel different memorandums of understanding, the deputy foreign minister added.

http://www.ena.gov.et/en/index.php/politics/item/446-ethiopia-czech-republic-agree-to-boost-relations  

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Public Transport to Sudan Very Close

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For the Ethiopian Side, either Addis Abeba, Bahir Dar or Gonder Will Host the Origin and destination stations

Ethiopia is soon to begin cross border public passenger transport with Sudan. This follows a bilateral agreement made between the two countries a year ago.

To realise this, a memorandum of understanding (MoU) had been signed between the two countries to launch a commercial road passenger transport to be operated to and from the cities of the two countries back in 2013. During the agreement, MoU on areas of railway, trade, harmonisation and mutual assistance in customs operation had also been signed.

A discussion that will include a delegation of officials, stakeholders engaged in transportation sector and private investors of both countries will be held, Kassahun Hailemariam, director general of the Federal Transport Authority (FTA), told Fortune.

“The next step will be agreeing on the terms of implementing the operation; issues like destination and origin of each vehicle that will travel from Ethiopia to Sudan and vice versa will be decided after we had discussed with our counterpart in Sudan,” added Kassahun.

On Ethiopia’s part, three alternative locations have been chosen as origin and destination areas, namely, Addis Abeba, Bahir Dar and Gonder. Subsequently, one of the aforementioned locations will be selected on the basis of the demand from local private investors, the interest of the Sudanese and the number of passengers expected from the above locations. The price will be also set after a discussion between the two counterparts.

A technical committee has already dealt with other issues over the past year. For instance, where passengers have to stop for meals, the weight of baggage allowed per passenger and the type of vehicles eligible for this sort of travel. As far as the types of vehicles are concerned, buses at a minimum level are expected to have an air conditioning (AC) system.

“This area will be left to local public transport providers and if any public transport associations manage to provide us with the kind of vehicles we need, the door is open for all,” noted Kassahun.

There is no way that few associations will monopolize the service. Selam and Sky buses, operated by different share companies, have their own air-conditioning system. These buses are considered as a high quality means of transportation, in comparative terms.

Moreover, “since we are going to deal with cross border transportation, issue like visa and emigration will be arranged according to the law; there will be no change on the matter,” said Kassahun.

Different stakeholders from both countries are scheduled to meet on February 25, 2015, and facilitate the commencement of the service; this meeting will focus on clearing the paths that will lead to launching the service, said Abelneh Agidew, communications director at the FTA.

“We are hoping that the transportation service will begin in the current fiscal year,” Kassahun told Fortune.

As far as trade and economic relation is concerned, the presence of Sudanese owned projects has reached 289 projects at different levels with 13.7 billion Br. Sudanese are the first foreign companies from Africa in terms of both the number of projects and volume of investment.

http://addisfortune.net/articles/public-transport-to-sudan-very-close/

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KEFI bolsters Ethiopian team with mine operations veteran

 Addis Ababa: February 25, 2015  -

http://www.fanabc.com/english/index.php/news/item/2308-kefi-bolsters-ethiopian-team-with-mine-operations-veteran

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Revenue in Oromia surpasses GTP target

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 Adama February 25, 2015 – 

The Oromia Revenues and Customs Authority announced that it has already met the target set in the five-year growth and transformation plan (GTP) period.

The Authority has collected 29 billion Birr revenue during the past four and half years, a 9 billion Birr increase compared to the target, said Authority Director General Yohanes Dinkayehu.

The Authority has collected 7 billion Birr during the first six months of this fiscal year, which he said exceeded the target by 1 billion Birr.

http://www.ena.gov.et/en/index.php/economy/item/443-revenue-in-oromia-surpasses-gtp-target

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South Boulder Mines Colluli potash resource swells to 1.28Bt

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Wednesday, February 25, 2015 by Proactive Investors

Colluli is one of the largest potassium sulphate resources globally, with a Pre-Feasibility Study for Potassium Sulphate production on track for completion in February 2015.

South Boulder Mines (ASX:STB) has delivered a significant increase in 2012 JORC mineral resource at its Colluli Potash Project in Eritrea to 1.289 billion tonnes with an average grade 10.76% K2O.

The mineral resource estimate was carried out by AMC Consultants and is as a result of previous work conducted by Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH (Ercosplan).

The review was carried out in preparation for the allocation of the maiden Reserve for Colluli, which will also be completed by AMC.

Paul Donaldson, managing director of South Boulder, said: “This is an excellent outcome. As well as 210 million tonnes of uplift in the Mineral Resource estimate, 97% of the Mineral Resource now sits in the Measured and Indicated categories.

“There is no question about the size and potential of the Colluli resource.

“It will form the backbone of what will become a significant project in the future. This work verifies this as one of the largest potassium sulphate resources globally.

“It is also appropriate that we change our resource grade reporting from % KCl to % K2O at this juncture, due to the combination of salts in the resource which favour the production of potassium sulphate (SOP) and is the focus of our pre-feasibility study.”

Highlights

Resource highlights include 97% in the Measured and Indicated categories:

– Mineral resource of 1.289Bt, average grade 10.76% K2O;
– Contained K2SO4 (Potassium Sulphate) equivalent1 of 260Mt;
– Resource uplift of 210Mt mineralised material; and
– 97% of mineral resource in Measured and Indicated categories.

The Colluli deposit comprises:

– Measured mineral resource: 303Mt at 10.98% K2O;
– Indicated mineral resource: 951Mt at 10.89% K2O; and
– Inferred mineral resource: 35Mt at 10.28% K2O.

Colluli is a very large, long life, at surface deposit, that is highly amenable to open cut mining methods and is in close proximity to the coast.

The project hosts one of the largest potassium sulphate resources globally, with a Pre-Feasibility Study for Potassium Sulphate (SOP) production on track for completion in February 2015.

South Boulder and the Eritrean National Mining Company (ENAMCO) are equal shareholders of the Colluli Mining Share Company (CMSC) which will develop the Colluli Potash project.
Colluli resource composition

The resource comprises three potassium bearing salts; sylvinite, carnallitite and kainitite.

These salts are suitable for the production of potassium chloride and/or potassium sulphate and potassium magnesium sulphate.

Potassium sulphate and potassium magnesium sulphate are high quality potash fertilisers that carry a price premium over the more common potassium chloride.

Potassium sulphate and potassium magnesium sulphate have limited production centres globally.

Substantial upside for the project exists from the exploitation of other contained products within the resource such as high purity rocksalt, kieserite (magnesium sulphate), gypsum and magnesium chloride.
Colluli located 75 kilometres from port

The Colluli potash project is situated in the Danakil region of Eritrea, 300 kilometres south-east of the capital city, Asmara, and 180 kilometres from the port of Massawa, which is Eritrea’s key import/export facility.

The project intends to construct an export facility at Anfile Bay which is located 75 kilometres from the Colluli mine site.

The Colluli resource is located around 70 kilometres from the coast making it one of the most accessible potash deposits globally.

It is favourably positioned relative to key growth markets for potassium-bearing fertilisers, commonly known as potash, and is the shallowest known potassium bearing evaporite deposit in the world with mineralisation starting at 16 metres.

This makes the resource amenable to open cut mining methods.

Recent Activity

Earlier this month, South Boulder completed metallurgical testwork for the project, which eliminated the need for fine grinding from the process plant circuit.

It also identified a number of internal plant configurations and the company kicked off optimisation work to further enhance DFS process design and internal plant configuration.

Potassium recoveries of over 85% have been modelled from optimised PFS flotation tests, and incorporation of solar recovery ponds.

Mini piloting has commenced, with key areas of focus including reducing plant water and infrastructure requirements, minimising reagent consumption, and maximising potassium recovery.

Plant commissioning and ramp-up profiles have been established, and preliminary results of the advanced metallurgical testing indicate potential improvements in plant configuration, equipment requirements and product mix for the DFS.

A technical review team is currently being assembled to conduct a final review of the process plant and solar pond design, underlying assumptions and testwork results before finalising the DFS process flow diagrams.

Cashed up

South Boulder had $7.5 million in cash as at the end of December 2014 and has raised $2.05 million in January through the placement of 10 million shares at a 6% premium to market.

Next key catalyst

– The PFS for potassium sulphate production is on track for completion in February 2015.

Milestones ahead

– The Maiden Reserve which will be completed by AMC Consultants.
– Completion of a high quality DFS in Q3.

http://www.proactiveinvestors.com.au/companies/news/60905/south-boulder-mines-colluli-potash-resource-swells-to-128bt-60905.html

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Addis Hosts Argus FMB Africa Fertilizer Conference

 Argus FMB Africa Fertilizer Conference was held in Addis Abeba from February 18 to 20, 2015.

The conference attracted over 400 delegates from across the fertilizer supply chain in Africa and internationally. Representatives from over 50 different countries attended the conference, which focused on the steps needed to boost production and consumption of fertilizer in Africa according to Mitiku Kasa, state minister of Agriculture during his opening speech.

The conference, which is said to provide a platform to meet and do business with leading global producers, traders and distributors of fertilizers, has made the participants visit the fertilizer blending factories that the country is now building.

Ethiopia, which had embarked on soil fertility assessment and identified the contents that are missing in the specific areas is constructing four fertilizer blending factories which will bring the number of fertilizer blending factories in the country to five.

A fertilizer-producing factory is also being built in Yayo, in western Ethiopia Illubabur Zone, which is one of the five factories that the government plans to construct with 2.8 billion dollars.

http://addisfortune.net/articles/addis-hosts-argus-fmb-africa-fertilizer-conference/

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Ministry of Health focuses on quality, equity in GTP II

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Addis Ababa, 25 February 2015  –

The Ministry of Health said that it will work its level best to ensure quality and equitable health service in the second Growth and Transformation Plan Period, GTP II.

It also stated that the nation has achieved 95 per cent of the envisaged health service coverage in the first GTP period.

In an exclusive interview with The Ethiopian Herald, Health Minister Dr. Kesete Birhan Admassu said that Ethiopia has done very well in terms of translating its Growth and Transformation Plans into reality and achieving goals and targets in the health sector.

The prominent target, the Ministry set for itself at the launching of GTP I, was to achieve the Millennium Development Goals. Ethiopia was hence well on track in achieving all the three health related MDGs. In fact, it has achieved MDG-4 which is about reducing child mortality. Thus, the Ministry has achieved the set goal three years ahead of schedule, he added.

Dr. Kesete Birhan further said: “We are also doing well in terms of arresting communicable diseases. Ensuring access to health facilities is the other target we set for ourselves. Therefore, today, Ethiopia has achieved 95 per cent health service coverage. That means, we have built and furnished around 3,500 health centers. We have also multiplied over the number of primary hospitals in the country. In the course of the GTP period alone, we have constructed around 200 hospitals which have become operational. This has tremendously increased access to hospital services,” he added.

Recalling that the country was beset by the dearth of manpower in the past, Dr. Kesete Birhan said that the other target the Ministry eyes at is increasing the number of health workers in the country.

“In this regard, we have redoubled efforts particularly in areas where we have acute shortage of human resource.” Regarding midwives for instance, over the last four years, the Ministry has given midwifery courses to 6,000 health workers that have been deployed at the various health centers and hospitals around the country.

“We have also a plan to increase the number of medical schools. We have now 28 public medical schools that train medical doctors. Currently, the number of medical doctors stands at the 6,000 mark. The steps taken in this regard have significantly improved the doctor-population ratio. Pertaining to new graduates, who are expected to join the task force down the road, starting form 2015, we will have at least 3,000 medical doctors graduating every year, he added.”

Justifying that the Ministry would give special emphasis to ensuring quality and equity of production in the next GTP, Dr. Kesete Birhan said: “While we improve access to health service, we believe fine-tuning accessibility with quality is mandatory. Therefore, in the upcoming five years, the focus will shift to improving the quality of health care service starting from the community level and the health post up to tertiary hospitals. We will have key performance indicators that would show whether the service we are providing to the public is of acceptable quality,” he added.

And the Ministry will also focus on equitable treatment, it will narrow down the disparity between urban and rural areas (even far flung corners of the country) as well as between the poor and the rich segments of the community. The Ministry is thus gearing up to outreach all Ethiopians with an unprecedented stepped up effort, the Minister said.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17870:ministry-focuses-on-quality-equity-in-gtp-ii-&catid=52:national-news&Itemid=291

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Plan to raise daily individual water consumption to 100L to be implemented

 Addis Ababa: February 24, 2015 –

http://www.fanabc.com/english/index.php/news/item/2294-plan-to-raise-daily-individual-water-consumption-to-100l-to-be-implemented

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Ethiopian women cooperative increases incomes thanks to FAO-Eataly partnership

 Addis Ababa: February 25, 2015  –

http://www.fanabc.com/english/index.php/news/item/2306-ethiopian-women-cooperative-increases-incomes-thanks-to-fao-eataly-partnership

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Insurers Seek Central Bank Approval to Form Reinsurer Firm

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Currently, local insurers cede up to 30pc of premiums to foreign reinsurers

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The Association of Ethiopian Insurers has submitted a request to the National Bank of Ethiopia (NBE) two weeks ago for the approval of the formation of the first reinsurance firm with a one billion Birr subscribed capital.

The establishment was initiated following the issuance of the Reinsurance Company Establishment Directive by the NBE in April, 2014, according to Kiros Jirane, president of the Association of Ethiopian Insurers and CEO of Africa Insurance SC.

After the issuance of the directive, the Association established an organizing committee that is chaired by Kiros for the establishment of the reinsurance firm. The committee has 15 members composed of 13 chief executive officers of the insurance firms and two from the Ethiopian Bankers Association (EBA), including the presidents of Addis International Bank and Bunna International Bank.

Reinsurance, which is also known as “insurance for insurers” or “stop-loss insurance”, is a practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions.

Reinsurance companies will be formed as share companies, wholly owned by Ethiopian nationals and organizations. No shareholder shall have more than a five percent share in the company. The capital of the company will be at least 500 million Br, which ought to be fully paid up in cash and deposited in a blocked bank account, according to the directive issued by the central bank.

The company will have 100,000 shares with a pure value of 10,000 Br each. The initial investment cost of the project, including fixed investment, preoperational expenditure and working capital is estimated at 32.6 million Br, according to a feasibility study conducted by the Ethiopian Insurance Corporation (EIC).

The absence of local reinsurers means that 25pc to 30pc of the premiums collected by domestic insurers had to be paid up to foreign reinsurers in the form of reassurance premium, according to the feasibility study by the EIC. The study by the EIC includes organization of the company, underway capacity, and implementation schedules.

In the 2012/13 fiscal year, the 17 insurance firms in the country paid 1.2 billion Br premium for the reinsurers from the 4.8 billion Br they collected from their clients, according to a data from the NBE.

“Members of the association have already promised 620 million Br for the establishment and the remaining money will be raised from availing shares to the market,” Kiros told Fortune.

The four new insurers including, Berhan Insurance S.C, Lucy Insurance S.C., Tsehay Insurance S.C and Bunna Insurance S.C are not included in the establishment of the reinsurance firm as they are not members of the insurers association; they have been told to be members before the end of February 2015.

“We are awaiting board approval to be a member of the insurer association and become the founding members of the company,” Alemseged Abreham, the CEO of Lucy told Fortune.

The organizing committee requested the NBE for the approval of the firm and to open a closed account for the firm two weeks ago, which will be used to collect the establishment capital and it is waiting for a response from the NBE, according to Kiros.

The organizing committee is also in the process of establishing an office to run the project and to update the feasibility study that was conducted by the (EIC) and Public Finance Enterprise Agency, on July, 2012 about the prospects of reinsurance firm establishment. From 13 individuals who submitted their CVs for the manager position of the project office, we will select and hire one after evaluating the documents in the coming two weeks, said Kiros.

The insurance industry had an aggregate capital of two billion Br by the end of 2013/14 fiscal year, an increase of 500 million Br from the preceding year. The number of insurance firm branches has also grown to 332 by adding 59 new branches during the last fiscal year, 55pc of which are located in Addis Abeba, according to data from the NBE.

The major global reinsurers include Munich Re, Swiss Re, Hannover Re, and so on. Ethiopian insurance companies mainly rely on Munich Re, Kenya Re and Swiss Re.

The company will be fully operational in the coming six to 12 months, according to Kiros.

http://addisfortune.net/articles/insurers-seek-central-bank-approval-to-form-reinsurer-firm/

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Indian Denim Factory Begins Yarn Production

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Factory expects to start denim fabric production in a month for local and export market

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Kanoria Africa Textile Plc, established by Indian owners, began yarn production last week in preparation for the planned commencement of denim fabric manufacturing in May 2015 at its plant in Bishoftu (Debre Zeit) in Oromia.

The company obtained on investment license two years ago and built its factory on a 155,000sqm plot in Bishoftu with installed capacity of 10 million metres of fabric peryear. The factory, which Jay Soyanter, Marketing Vice President of the company, says will employ 600 people, and will produce both yarn and denim for textile and garment factories. It is the factory established with a capital of 35 million dollars.

The factory will sell its products in Ethiopia as well as export to African, Asian and South American markets, says Soyanter. Kanoria will use cotton procured from the local market and imported from Indian and Pakistan.

“There is a big potential for the investment of garment and our company wanted to meet the denim fabric demand of the country, which were mainly imported from Pakistan, Bangladesh, Turkey and Sri Lanka,” said Soyanter.

The company is looking forward to the commencement of operation over the next four to five months of the five textile factories, among those are A.N.F Garment Factory, established by Pakistani owners and Atraco Textile Factory, both located at the new Bole Lemi textile zone in Addis Abeba.

In Ethiopia, there are 130 medium and large-scale textile and garment factories, of which 37 are owned by foreign investors while the remaining are owned by domestic investors.

From the foreign textile factories, Ayka Addis, established with a capital of 140 million dollars by Turkish owners, has the largest production capacity with 20tns of yarn and 40tn or 70,000 pieces of garment a day. Ayka Addis employs 10,000 people.

The second largest textile factory, Almeda Textile Plc, established in February 1996 by the Endowment Fund for the Rehabilitation of Tigray (EFFORT), with a capital of 594 million dollar, employs 2,500 people. It has a yearly production capacity of 7,020tn of yarn, 16,751,100tn of grey fabric, 15,387,000tn of processed fabric, and about one million pieces of basic shirt equivalent garments, says its owner, EFFORT.

Another garment and textile factory , MAA garment and textile factory, owned privately by Kebire enterprises under Midrok Ethiopia Plc, has a production capacity of 10 tones of spun fiber per day and 6,000 kilogram of dyed products per day. MAA garment was established in June 2004 and has 1,300 employees.

“The new denim factory is beneficial in terms of transferring technology advancements and knowledge to the country, saving foreign currency, meeting the high demand for denim fabric and creating employment opportunities,” said Bantihun Gesese, Ethiopian Textile Industry Development Institute Corporate communication Director.

Ethiopia’s textile and garment sector has been a poor performer over the past years, with one of the major problems being the poor supply of cotton, and others being poor planning and management, according to earlier government reports.

In 2013/14 Ethiopia made 111.3 million Br from the export of textiles and garment, which showed an improvement of 12.5pc over the previous year, although it was just 31.8pc of the target of 350 million dollars. Bantihun says that the 14 million dollars earned from export during the month of January 2015 was a result of the increased attention from the government.

http://addisfortune.net/articles/indian-denim-factory-begins-yarn-production/

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FAO launches new project to support Ethiopia’s livestock sector

Addis Ababa, 24 February 2015 –

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17848:fao-launches-new-project-to-support-ethiopias-livestock-sector&catid=52:national-news&Itemid=291

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French Firms Recommend Several Urban Centres for Ethiopia

French firms, hired by the government, reported that the existing urban system in Ethiopia was dominated by the primacy of Addis Abeba and characterized by low urban infrastructure and services, poor housing and weak governance; secondary cities played a minor role in supporting regional development.

The Ministry of Urban Development, Housing & Construction (MoUDHC) has hired an international firm to conduct the first national urban study, the study which costs 51.9 million Br will be finalized in the coming three months.

The 51.9 million Br study, financed by the World Bank, is titled “National Urban Development Spatial Plan”. It is being carried out by a French consultancy, Egis international, in association with IAU-IdF and Urba Lyo. Egis is a French based company that is engaged in engineering and consulting in the sector of transport, urban development, building water, environment and energy, having 12,000 employees over 100 countries. The company has been giving various consultancy services on road construction, design and supervision in Ethiopia for the last 20 years.

The plan endeavours to assess the existing problems and anticipate opportunities, challenges and problems the future might convey regarding location, size and function of key urban settlements across the country, how they are linked together, how they interact with their hinterlands, according to Gabriel Deribe, country manager of Egis International.

The company submitted part of the study titled “The Existing Situation and Diagnostic Report” in December, 2014, to the Ministry of Urban Development, Housing & Construction (MoUDHC). This study incorporated 12 cities, including Addis Abeba, Mekelle, Bahir Dar, Komblocha and Welkite. The study was presented to the Prime Minister and regional authorities for discussion on January 31, 2015.

In order to break the trend of the dominance of Addis Abeba and the secondary importance of other urban areas, the study suggested a polycentric urban development scenario where few major urban areas will be the base for the growth of their respective hinterlands with a focus on manufacturing and service economic activity.

“The urban scheme is supported by complementary corridors that connect the main secondary cities so facilitating the inter-regional exchanges of goods and services. These cities are expected to be providing services for their large hinterlands supporting rural/agricultural development. Combined with higher productivity, this scenario allows Ethiopia to accelerate the process of reaching middle income status,” Gabriel said.

The study is conducted based on the Urban Planning Proclamation No. 574/2008, which considered National Urban Development Plan Scheme in order to bring balanced and integrated development, stated member of the study technical advisory committee. Regional urban studies have been conducted taking into account their demography and hinterland, infrastructure provision but this study is the first to be conducted at the national level, he added.

The Study took the existing urban organization of the country, the demography and economic trends, committed and planned projects, and the policy regime and targets of the government into consideration, explained Gabriel. Various ministries participated in the study which will be an input and drive to their policy and strategy focus as well as the country’s next Growth & Transformation Plan. But for the successful implementation of the study key challenges in poor designing, rudimentary physical planning, ineffective management should be addressed, the Egis’ study cautioned.

Egis was among the 21 companies that had responded to the expression of interest notice announced on September 29, 2012. Six were shortlisted, including Khatib & Alami Consulting Engineering, which is a 50 year-old Lebanese company and Niras International, a multi disciplinary consultancy company established in Denmark in 1956. After winning the technical and financial evaluation, Egis signed the contract on January 9, 2014.

http://addisfortune.net/articles/french-firms-recommend-several-urban-centres-for-ethiopia/

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Alisha establish marble processing plant

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Addis Ababa, 24 February 2015 -

Alisha Mining Plc, an Indian mining firm, established a marble processing plant in Ethiopia at an outlay 2.5 million US dollars. The plant is set up at Burayu city, Oromia State, which is located west of the capital city and sits on 20,000 square meters.

General Manager of the Indian firm, Ahan Shailesh Hingrah, noted the company imported latest marble cutting machine (Gangsaw) and polishing machines from India and China.

According to The Reporter, the company has finalized the construction of the processing plant and already installed all the machineries.

According to the manager, the plant started production on Tuesday, February 3, 2015. The plant is said to have a capacity of producing 360,000 square meters of polished marble in a year. The factory produces marble slabs that have the size of 2.52 meters by 1.37 meters.

Hingarh commented, “We are producing high quality marble slabs and have started storing it for potential customers. Once we start promoting the company we will have many customers and we do not want to run out of stock. We already have 2000 square meters of marble slab in stock.”

Two years ago Alisha Mining acquired a marble quarry near Mendi town, Benshangul Gumuz State. Currently the quarry is producing 2,400 to 3,000 cu.m of marble blocks every month. The marble blocks are then transported to Buray where they will be cut into slabs and refined by a 16 head polishing machine. “Our marble quarry is of high quality. So we are producing very high quality marble,” Hingarh commented.

Other than marble slabs, the processing plant manufactures marble floor tiles that are of different size. “We are producing high quality marble products which can be supplied to hotels, real estate and residential houses. The marble quality is so high that it resembles the materials that the Taj Mahal is made of. So buyers in India have shown interest to buy our products,” Hingarh explained.

He furthered the aim of the company is to generate six million US dollars in a year. The company intends to export 40 percent of its production and channel the rest 60 percent to the local market. According to the general manager buyers in Spain, India, Saudi Arabia and China have already shown interest. “We have started receiving orders,” he said.

Currently the company has employed 30 Ethiopian nationals and the management intends to increase the number to 100 in three months of commencing operation.

Alisha has a future expansion plan. Hingarh explained the company is going to import two additional Gangsaw machines. “We also have a plan to install machines through which wastage of marble can be used for raw materials for paint and we want to install machines which can make monument from marble which have a huge demand in Europe.”

In addition the marble manufacturing business the Alisha’s parent company is intending to invest in real estate business, the general manager explained. It is already in the process of constructing high rise building in the capital of Ethiopia. It has occupied a plot of land around Wollo Sefer in order to construct 15 storey multipurpose building. The building is going to be commercial center and apartment.

In addition to this Alisha Mining is keen to invest in coal and iron ore exploration and production investment projects.

Hingarh noted the total investment in Alisha Mining has been done by its shareholders and no loan has been taken from banks.

http://www.waltainfo.com/index.php?option=com_content&view=article&id=17847:alisha-establish-marble-processing-plant&catid=52:national-news&Itemid=291

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Joshua Meltzer | February 23, 2015

The importance of growing Africa’s agriculture exports

The African Growth and Opportunity Act (AGOA), signed into law in 2000, is the key underpinning to U.S.-Africa trade and investment. AGOA has been extended and reauthorized on four occasions (2004, 2006, 2007, and 2012) with strong bipartisan support and is set to expire in September 30, 2015. Congress should reauthorize AGOA for another 15 years, from 2015-2030. This will create necessary certainty and stability to further grow U.S. trade with sub-Saharan Africa.

There is much room for growth, particularly in the agriculture sector, where exports remain low at less than 3 percent of total exports under AGOA. So, AGOA should be reformed to support growth in agricultural exports. In fact, while under AGOA by 2014 agriculture exports to the U.S. increased by over 400 percent to $261 million, they still remain small in absolute terms.

Expanding opportunities for sub-Saharan African agriculture exports to the U.S. will produce a range of benefits:

• It will help drive growth and employment in the agriculture sector in sub-Saharan Africa, which is responsible for 30 percent of GDP and 70 percent of employment. This growth will also create employment opportunities for woman, as they comprise about 50 percent of the agriculture labor force in the region.
• The labor intensity of agriculture in sub-Saharan Africa means that policies to promote growth in the agriculture sector will be most effective at reducing poverty.
• Growth in the agriculture sector will help address growing youth unemployment in sub-Saharan Africa.[1] This is particularly important given sub-Saharan Africa’s so-called youth bulge, in which increasing numbers of young people are entering the job market this decade.
• It will diversify U.S. trade with sub-Saharan Africa, which is currently dominated by oil and gas exports. 

The following policy brief outlines the opportunities for growing agriculture exports under AGOA and provides a series of recommendations for achieving this goal.

The African Growth and Opportunity Act so far

AGOA provides exports from sub-Saharan Africa preferential access to the U.S. market. The U.S. also provided preferential access for sub-Saharan Africa exports under its Generalized System of Preferences (GSP), a program that applies to exports from most developing countries. The GSP expired in 2013, but under AGOA GSP preferences remain available for AGOA-eligible countries. AGOA, combined with the GSP, provides duty-free access to the U.S. for 6,400 product lines from 38 countries in sub-Saharan Africa. Of total U.S. imports from AGOA countries, around 70 percent enter under AGOA.

From 2001 to 2013, exports under AGOA increased from $7.6 billion to $24.8 billion but declined over 50 percent in 2014 to $11.6 billion mainly due to reduced petroleum exports to the U.S. Anecdotal and survey-based evidence has found that African businesses view AGOA as very important for their trade with the U.S. Since AGOA was signed in 2001, sub-Saharan African economic growth has averaged over 5 percent.

By enabling increased trade, AGOA supports local businesses and their integration into the global economy. AGOA has also stimulated foreign investment in sub-Saharan Africa, often by companies taking advantage of the new market access opportunities in the U.S. For instance, U.S. retailers such as Gap, Target, and Old Navy source goods in Africa for export to the U.S.

AGOA is also an important tool for achieving broader U.S. goals such as promoting market reforms and building democracy. These goals are achieved through its role in strengthening growth opportunities in sub-Saharan Africa broadly. In fact, in order for a country to be eligible to receive AGOA’s trade preferences, compliance with the following conditions is necessary:

• The country must be making progress towards a market-based economy, enhanced rule of law, elimination of trade barriers and systems to combat corruption, and the protection of worker’s rights.
• The country must not be engaging in activities that undermine U.S. national security.
• The country must not be engaging in gross violations of human rights.

AGOA-eligible countries in sub-Saharan Africa are making significant economic reforms that are improving their capacity to grow and providing new opportunities to deepen their economic relationship with the U.S. The 2015 World Bank Ease of Doing Business Report found that sub-Saharan Africa accounted for the largest number globally of regulatory reforms that reduced the cost of doing business. Democratic government is also on the rise in sub-Saharan Africa. According to a Freedom House report, the largest gains in freedom over the last five years have been in sub-Saharan Africa.

Notwithstanding the growth in U.S.-African trade since AGOA, there remains significant scope to increase its depth and range. For instance, Africa exports 10 times as much to Europe as it does to the U.S. The European “equivalent” trade scheme—the Everything but Arms initiative—has a higher utilization rate than AGOA and is estimated to have generated almost twice as many exports than AGOA. The conclusion by the European Union of Economic Partnership Agreements with a number of countries in sub-Saharan Africa is also providing enhanced market access.

Failure to renew AGOA will reduce U.S.-Africa trade with particular losses in some sectors. For instance, in terms of agriculture trade, compared to a 2025 baseline, not renewing AGOA will cause exports of meat to decrease by over 60 percent, and milk and dairy by over 10 percent.

The composition of U.S.-Africa trade

As the following table demonstrates, U.S. trade with Africa is dominated by crude petroleum exports, which account for approximately 90 percent of all U.S.-Africa trade. The impact of AGOA on crude oil exports to the U.S. has been limited as these products were entering the U.S. duty free under the GSP anyway.

Figure 1: U.S. imports under AGOA, 2001-2013

Source: USITC DataWeb/USDOC.

Since 2011, exports of crude oil to the U.S. have declined and the most recent 2014 data shows a continuation of this decrease due to increases in the U.S.’s production of oil. Given this trend, failure to grow sub-Saharan Africa’s non-oil exports to the U.S. could see a significant deterioration in the overall economic relationship.

The following graph disaggregates exports to the U.S. other than crude oil. Growth here has been significant, from around $1 billion in 2001 to over $4.7 billion in 2013, peaking at over $5 billion in 2008 just prior to the financial crisis.

Figure 2: U.S. imports under AGOA, excluding crude petroleum, 2001-2013

Source: USITC DataWeb/USDOC.
Note: “Agriculture” includes all agricultural products; “manufacturing” includes electronics, machinery, transportation equipment, chemicals, miscellaneous manufacturing, and special provisions items; “natural resources” includes energy products (except crude petroleum), minerals and metals, and forest products; and “textiles/apparel” includes textiles, apparel, and footwear.

As Figure 2 shows, the most significant impact of AGOA on non-petroleum exports have been in apparel, which grew over 250 percent from $355 million in 2001 to over $907 million in 2013. Exports of apparel is also, however, down from its peak of $1.13 billion in 2008 as cost-competitive apparel manufacturers in East Asia have gained market access in the U.S. This trend has been due to the phase out of the World Trade Organization (WTO) Multi-fiber Agreement in 2005, which capped exports of textile and apparel, as well as the phase out of other restrictions on textile exports from China under its WTO accession agreement.

On the manufactured goods side, the growth in manufacturing exports has also been very significant and is accounted for almost entirely by growth in motor vehicle exports.

Agriculture exports to the U.S. have grown significantly since AGOA, from $59 million in 2001 to $261 million in 2014. The main exports of agriculture products to the U.S. are cocoa paste and powder, citrus fruits, edible nuts, wine, unmanufactured tobacco, fruit and vegetables. As noted above, despite this increase in agriculture goods, exports trade remains small in absolute terms.

Notwithstanding the growth in sub-Saharan Africa agriculture exports to the U.S., as a share of non-oil exports to the U.S. under AGOA agriculture has declined from 6.2 percent in 2001 to 2.2 percent in 2014. Yet this is true for all non-oil exports (except for motor vehicles) from sub-Saharan Africa to the U.S., whose export shares have also declined despite increased exports, reflecting the growth during this period of crude oil exports to the U.S.

Addressing the remaining barriers to agriculture exports

Under AGOA, the U.S. retains trade barriers on a range of agriculture goods that, if reduced, would likely lead to increased exports. This includes products such as shea butter, yogurt, ghee, cashew nuts, sugar cane products, sugar-containing cocoa products, oilseeds, shrimp and prawns, bananas, and other fruit and vegetables such as mangos. In addition to focusing on the obstacles below, the U.S. could also look to where it can streamline its import procedures, reducing costs and delays to market.

Tariff rates

Most agriculture exports from sub-Saharan Africa already enter the U.S. tariff-free. There are, however, a number of products where the U.S. retains high tariffs, such as sugar and cotton, and that, if reduced, would stimulate further trade. According to one study, complete elimination of tariffs on agriculture exports from sub-Saharan Africa would increase exports over $105 million compared to what it would otherwise be in 2025, with large gains in areas such as sugar and fish exports. Moreover, the impact of removing all tariffs would only reduce U.S. production by $9.6 million.

Tariff rate quotas 

Tariff rate quotas (TRQs) are another area where significant trade barriers remain for agriculture exports from sub-Saharan Africa to the U.S. A TRQ is a lower-level tariff for a specific volume of imports over a given period and a higher tariff for import volumes over the quota. The U.S. maintains 46 TRQs on seven commodities: sugar, tobacco, dairy, beef, peanuts, cotton, and green olives.

Except for imports of sugar and cotton, imports under AGOA that are in-quota enter the U.S. at zero tariffs. The following table lists U.S. TRQs on the main agriculture commodities of export interest for sub-Saharan Africa.

Table 1. U.S. tariff rate quotas

As this table shows, over-quota tariffs on exports of agriculture products from sub-Saharan Africa are high, ranging from 26 percent for beef to 350 percent for tobacco imports. These rates make exports of over-quota agriculture products uncompetitive in the U.S. As a result, access to quotas is key to growing agriculture exports.

The share of in-quota TRQs allocated to AGOA-eligible countries is very low. This is because the allocation of quotas among the U.S.’s trading partners reflects historical trading patterns and quota access deals under U.S. free trade agreements. The lack of access to quotas locks out African agriculture producers from U.S. markets.

U.S. quotas on agriculture exports exist on a range of products that African producers already export to Europe and where their revealed comparative advantage suggests that they could successfully export to the U.S. if access to quotas was expanded. This would include goods such as dairy products, sugar, peanuts, and beef (assuming sanitary and phytosanitary (SPS)) issues are overcome—see below).

There are a number of ways that the lack of access to quotas can be addressed. Some reallocation of quotas can be done by the administration. However, the scope for action depends on U.S. commitments in its FTAs and at the WTO. In other cases, quotas on particular agriculture exports are not fulfilled each year, but there is no mechanism that would allocate these quotas to countries that are AGOA-eligible. A number of agriculture imports into the U.S. also have an “other” category for quotas allocated on a first-come, first-serve basis which could be reserved for AGOA-eligible countries.

SPS trade barriers

In order to enable African exporters to maximize the opportunities under AGOA, a range of other non-tariff barriers to agriculture exports need to be addressed. Major obstacles here are the SPS issues that raise the cost of African exports enough to offset any additional competiveness gained through lower tariffs. Congress should not lower U.S. SPS standards. The key here is to work with African governments and producers to help them meet U.S. standards.

The U.S. Department of Agriculture through USAID already provides some technical assistance aimed at meeting SPS standards. This could be strengthened by specifically requiring the involvement of the Department of Agriculture in maximizing opportunities for agriculture trade under AGOA. This work should be incorporated into the trade hubs established by USAID to assist sub-Saharan Africa maximize the opportunities AGOA presents.

Recommendations:

Tariffs

• Reduce to zero all tariffs on agriculture exports from AGOA-eligible countries.

Quotas

• Eliminate quotas on agriculture exports from AGOA-eligible countries; or at least from those countries in sub-Saharan Africa that are least-developed countries (LDCs). This move would be consistent with U.S. obligations under the U.N. Millennium Development Goals and would fulfill a key demand from these countries in the WTO Doha Round negotiations. 
• Allocate additional quotas for agriculture exports to AGOA-eligible countries. This could be done in addition with a move to duty-free quota-free access for sub-Saharan African LDCs or as a stand-alone extension of market access to all AGOA-eligible countries. Such additional quotas could be re-allocated from unused quotas of other countries or from the “other” category. 
• Create additional quotas for agriculture exports from AGOA-eligible countries. 

Trade and capacity building 

• Task the Department of Agriculture with a specific role in helping AGOA-eligible countries meet U.S. SPS standards.

[1] Deon Filmer and Louise Fox et al. “Agriculture as a Sector of Opportunity for Young Africans”, in Youth Employment in Sub-Saharan Africa (Vol. 2): Full Report (World Bank Group 2014)

• Joshua Meltzer

  Fellow, Global Economy and Development

  @JoshuaPMeltzer

  Dr. Joshua Meltzer is a fellow in Global Economy and Development at the Brookings Institution and an adjunct professor at the Johns Hopkins School for Advanced International Studies. Dr. Meltzer is also a reviewer for the Journal of Politics and Law. His work focuses on international trade law and policy issues relating to the World Trade Organization (WTO) and Free Trade Agreements.

Sourced here  http://www.brookings.edu/blogs/africa-in-focus/posts/2015/02/23-agoa-agriculture-africa-meltzer