U.S. Officials Highlight Opportunity for Ethiopia‘s Future
Addis Ababa, June 29, 2013 (WIC) - Ethiopia is “an important partner” of the United States in the East Africa region and one of the fastest-growing economies in the world, a senior State Department official told a U.S. House of Representatives Foreign Affairs Subcommittee June 20. According to allafrica.com, Donald Yamamoto, the acting assistant secretary of state for African affairs and a former U.S. ambassador to Ethiopia, told the lawmakers that the Ethiopian economy has been growing by double-digit percentages over the last five years. However, he cautioned that Ethiopia-U.S. business relationships have been limited because of investment climate challenges. He also noted that Ethiopians in the United States are returning to their homeland to expand political and economic ties between the two countries and to provide humanitarian support. Ethiopia is a major recipient of U.S. aid, primarily for development in the health, agriculture and education sectors, and Ethiopia is one of the U.S. Peace Corps’ largest host countries. In development, Ethiopia “has emerged as a leader on the push to end preventable maternal and child deaths,” Yamamoto said. As part of its leadership, in 2012 Ethiopia co-hosted the global Child Survival Call to Action with India, the U.S. Agency for International Development (USAID) and the United Nations children’s agency UNICEF. The meeting was held in Washington.
Yamamoto stressed that the United States wants to increase cooperation with Ethiopia in key areas, including security, counterterrorism and bilateral trade and investment. He said that as chair of the African Union, Ethiopia “will play a key role in determining AU priorities on peace and security and development and governance.”
On August 12-13, 2013, the United States will partner with Ethiopia to host the 2013 U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum in Addis Ababa. Also known as the AGOA Forum, this year’s theme is “Sustainable Transformation through Trade and Technology.” The event will bring together senior officials from the United States and AGOA-eligible African countries to discuss a range of trade and investment-related issues. The U.S. African Growth and Opportunity Act (AGOA) offers incentives for African countries to continue their efforts to open their economies and build free markets.
Yamamoto said the United States will “encourage Ethiopia to work toward greater market liberalization, including progress toward World Trade Organization accession.” He added that recent successes on the economic front include a May trade mission to Ethiopia sponsored by the state of Illinois and a November 2012 agricultural investment conference in Ethiopia sponsored by the Corporate Council on Africa.
Yamamoto further noted that the United States is working with a major U.S. company to secure multimillion-dollar deals aimed at improving Ethiopia’s infrastructure.
Following Yamamoto, USAID Assistant Administrator Earl Gast testified that to fuel development in health, education and growth, Ethiopia wants to boost its power production capacity fivefold by 2015. The United States in early June signed an agreement with Ethiopia’s Ministry of Water and Energy that will serve as the basis for the government to negotiate project deals with private-sector developers.
Yamamoto also said that U.S. companies have signed letters of intent to make investments in support of Ethiopia’s country plan under the Group of Eight’s New Alliance for Food Security and Nutrition. The alliance, introduced in May 2012, aims to form partnerships between investors and local companies in Africa to accelerate progress in mobilizing private capital, taking innovations to scale and managing risk.
Gast said Ethiopia is one of the United States’ key African partners in countering the effects of climate change and promoting food security. “USAID’s programs in Ethiopia have seen remarkable results,” he said.
But, Yamamoto said, Ethiopia wants to eventually eliminate the need for donor assistance.
Addis Ababa Is The Next Host City for AGOA
By Ekow Quandzie/ghanabusinessnews.com
The US government announces Ethiopian capital, Addis Ababa, as the next host city for the 2013 African Growth and Opportunity Act (AGOA) Forum.
To be held August 12-13, 2013, the theme for this year’s AGOA Forum is “Sustainable Transformation through Trade and Technology”.
The Ministerial-level event will include a high level dialogue on the future of US-Africa trade and economic cooperation, according to the US State Department.
Officials say the Forum will be preceded by private sector and civil society programmes, as well as a programme arranged by the Ethiopian African Women’s Entrepreneurship Programme (AWEP), on August 10-11.
There will also be a US– sub-Saharan Africa Trade Exhibition to run concurrent with the Forum events, officials added.
Ethiopia Blends 7.9 Million Liters of Ethanol With Benzene In 11 Months
Some 7.9 million liters of ethanol has been blended with benzene and supplied to local markets during the past 11 months, according to the Ministry of Water and Energy (MoWE). Ministry Public Relations Directorate Director, Bizuneh Tolcha, told WIC that the blending enabled the country to save 6.9 million US dollars.
Metehara and Fincha sugar factories are the two plants engaged in ethanol production, while Nile, Oil Libya and National Oil Company Plc (NOC) are the companies engaged in the blending business.
Some 38.54 million liters of ethanol has been blended with benzene since the beginning of the blending four years ago, thereby enabling the country to save 30.2 million US dollars, he said.
Ethiopia envisaged increasing the amount of ethanol production to 181 million liters when the new sugar factories planned to be constructed in the Growth and Transformation Plan (GTP) is completed, he said.
As a result of its ongoing the speedy economic growth, Ethiopia spends 8.6 billion birr annually on fuel import, according to Bizuneh.
Institute honors companies for ‘Kaizen’ excellence
Addis Ababa, June 29 (WIC) – Ethiopian Kaizen Institute awarded nine organizations for excellence in ‘Kaizen’ method implementations, a Japanese business philosophy of operational excellence.
At a ceremony held today at Sheraton Addis, Wonji Shewa Sugar Factory, Metehara Sugar Factory and Addis Modjo Edible Oil Complex received the excellence award from Mekonnen Manyazewal, Industry Minister.
Speaking on the occasion, Mekonnen said efforts to properly implement Kiazen methodologies in all industrial institutions will continue.
Getahun Tadesse, Director General of Ethiopian Kaizen Institute said Kaizen methodologies are being implemented in 108 institutions across the country.
The award ceremony also included Small and Micro Enterprises (SMEs) as well as mid-level enterprises.
S3 General Home & Office Furniture, Hailu Abera Wood & Metal Works Enterprise and Daniel General Wood Works Enterprise were honored from SMEs.
The award for mid-level enterprises included Zemily Paint Factory, Benigat Mechanical Engineering SC and Excel Plastics Plc.
‘Kaizen’ refers to a philosophy or practices that focus on continuous improvement in quality, technology, processes, company culture, productivity and leadership.
University holds high-level symposium on the Nile,GRD
Addis Ababa, June 29, 2013 (WIC) – The Addis Ababa University yesterday held a high-level symposium on the Nile issue with the theme: ”Opportunities for Regional Development.”
Opening the symposium, University President Dr. Admasu Tsegaye stressed that the AAU has a national obligation and responsibility to play a leading role in organizing and conducting such forums to provide evidence-based facts and information for participants about the Nile and the Grand Renaissance Dam (GRD). He also stressed that the Blue Nile is a very sensitive and crucial subject both for Ethiopia and the lower riparian countries as well.
Regarding the huge water resource, he noted, the people of Ethiopia have not been able to make use of their precious gift of nature for various reasons. He also added that the GRD is a decisive move to harness the river the for ending poverty without affecting the interest of the lower riparian countries.
In his concluding remark, he indicated that the symposium will provide a useful input for the efforts being made to clear confusion and doubt with regard to the GRD. “It will also contribute to creating mutual understanding and trust among upper and lower riparian countries. These two things are decisive to collaboratively work towards reaping shared benefits from the construction of the GRD,” he added.
Discussing Nile Hydrology and GRD, Dr. Yilma Seleshi from Ethiopian Water Resource Institute said that the dam will reduce recurrent floods that create havoc on the people and infrastructural facilities in Sudan. Arresting evaporation, it will afford a regulated and continuous flow downstream. Ultimately the much needed water will be available for Egypt intact.
During the day-long symposium, scholars presented papers on Dam Safety, Geological Hazards, Environmental Dimensions of the Nile Water Resources, Development and Perspectives of GRD, among others. The high-level symposium brought together around 400 participants including government officials, members of the diplomatic community, academia and development partners.
PM Hailemariam holds discussion with investors
Prime Minister Hailemariam Desalegn said on Thursday the public sector investment should be encouraged to operate in areas that cannot be covered by the private sector.
The Premier made the remark while holding talks on a consultation forum with the private sector business, organized by the Ministry of Trade and Ethiopian Chamber of Commerce and Sectoral Associations.
Participants of the consultation forum raised queries related to limitations of loan to the private sector, advancing public sector investment and others.
Responding to the queries, Hailemariam said the advancement of the public sector investment in areas that cannot be addressed by the private sector should be welcomed.
He said the public sector investment is mainly focused on building infrastructure, education and other similar social sectors, adding that this would help to facilitate for and support the private sector investment. He said the nation’s policy is not against the private sector rather it favors it.
Responding to a query why private banks were denied to conduct registration of housing programs based on saving, Governor of the National Bank of Ethiopia Atnafu Teklewold said the housing program is not something that is profitable for banks.
He said if the private banks are ready to cover the 80-90 percent construction expenses to be paid in 17 to 20 years, as it is now, the Bank can allow the private banks based on the advice from the government.
He underscored the banks should know that the housing program that requires from 70 to 90 billon Birr is not profitable.
In his response to the provision of loan to private businesses, Atnafu said out of the 243 billion Birr loan provided up to the end of May in the current Ethiopian Budget year, the public sector secured 57 percent, out of which 90 percent is for long term investments.
According to ERTA, the private sector that secured 43 percent of the loan has used only 15 percent of it for investment, adding that the sector is skewed towards the service sector.
The fight against corruption will continue: PM Hailemariam
Prime Minister Hailemariam Desalegn vowed to continue the fight against corruption in his first press conference since he officially assumed the post of premiership.
In his meeting with local journalists today, PM Hailemariam assured that the anti-corruption measures will not letup as he pointed out areas where corrupt practices are said to be prevalent.
The government has identified land administration, revenues and customs, government procurement and construction sectors as the major concern areas.
“We have taken anti-corruption measures in land administration as well as revenues and customs areas on the basis of well founded surveys,” Hailemariam reminded.
Last month the government detained over 60 people, including senior government officials of the Ethiopian Revenues and Customs Authority (ERCA). The list included the authority’s director general Melaku Fenta and his deputy Gebrewahid Gebretsadik.
“The measure does not end by arresting individuals but taking corrective steps to ensure the system is free from corruption,” Hailemariam said speaking about the anti-corruption sweep at ERCA.
He said his government will take measures in areas of government procurement and construction sectors on the basis of researched findings.
The Prime Minister addressed wide range of issues from the economy to political issues regarding the Renaissance Dam and the utilization of the Nile River.
GRD construction, capacity not for negotiation: PM Hailemariam
Prime Minister Hailemariam Desalegn said on Friday the construction of the Grand Renaissance Dam (GRD) and its capacity would not be a subject of negotiation.
The Premier made the remark in a press conference he gave on current affairs of the nation. The press conference covered areas GERD issue, corruption, economy and human rights, among others.
The consultation of Egypt and Ethiopia would focus on maximizing the common benefit from the River Nile, he said. He underscored that the construction of the GERD and reducing its capacity would not be a subject of negotiation at all.
In connection with agriculture, the Premier said various activities are underway to realize the amount of product planned for the season. To this effect, provision of agricultural inputs and support of agriculture experts is being extended to farmers, he said.
The five year Growth and Transformation Plan is well in progress, he said, adding that a better economic growth is expected this year. He said the economic growth in Ethiopia is changing the famine and poverty image of the nation.
Responding to the issue of human rights in Ethiopia, Hailemariam said the government has an obligation to respect human rights which is enshrined in the Constitution. The government recognizes that there is a need to address the issue of human rights in Ethiopia and it is working to address it by setting a three-year action plan.
Hailemariam, however, said the government does not accept baseless accusations in the disguise of human rights to attack and mar the nation’s image.
Ethiopia earns over $670 mln in mineral, manufacturing export
The Ministry of Mines has announced that Ethiopia earned $419 million from the export of minerals supplied by artisanal miners in the first 11 months of this budget year.
Export of gold made up the largest element of this, generating $409.1 million in foreign currency with gemstones and tantalum earning $9.3 million and $1.6 million respectively from totals of 7878.3 kg of gold, 20,126.3 kg of gemstones and 32.95 tons of tantalum.
The export of minerals has become Ethiopia’s second largest foreign currency earner, contributing over 23 percent of overall export earnings. Oromia, Tigray, Benishangul-Gumuz, the Southern Nations, Nationalities and Peoples, and Gambella Regional States are among the gold producing regions.
The Ministry of Industry has also announced that during the same period Ethiopia earned $254.7 million from the export of manufactured goods. Exports include textiles and clothes, leather and leather products, agro-processing, pharmaceuticals and chemicals.
More than $111 million of this came from the export of leather and leather products, over $90.7 million from textiles and clothes, $45.6 million from agro-processing and $7.3 million from pharmaceuticals and chemicals.
And the quantity earned this year exceeded the amount earned during the same period the previous year by $24.3 million.
