FOUR DAY WAR
By Eskinder Michael
Prime Minister Meles Zenawi stated that though Ethiopia’s mission in Somalia was more or less completed, the Ethiopian government would pursue the ‘remnants of the Jihadist elements.
“Ethiopian forces stay out of towns, but we will pursue the remnants of Jihadist elements. Remnants of the Shebab and Eritrean soldiers are fleeing to the coastal areas and we intend to pursue them so that they do not resurface,” the PM said.
In an unusual move, Prime Minister Meles Zenawi talked to journalists twice in the week. In his latest press conference, the PM said in jovial tone that the United Islamic Courts (UIC) forces had abandoned Mogadishu on Wednesday and Thursday.
“UIC forces have melted away true to form and in a very cynical manner, fled Mogadishu after distributing their weapons to local unemployed youth so that they may create havoc. Looting and unrest by the newly armed youth has been seen in Mogadishu” he said.
The PM reiterated his words that Ethiopian troops would not enter Mogadishu and as such, Ethiopian troops have been spotted in the outskirts of Mogadishu.
The PM also put to rest several rumors about the US supporting Ethiopia in the war by saying that the US hasn’t been involved in this war in any way.
“The US has a very good relationship with Ethiopia, but that relationship isn’t limited to just fighting terrorism. I would be surprised if the military assistance by the US exceeds 5-10 million USD in the past five years, but the development assistance exceeds the hundreds of millions. The US hasn’t contributed one bullet or soldier for this war, but like we have done in the past, we continue to share intelligence as it is in the interest of both our countries,” he said.
The PM said that it was the US that announced its skepticism of Ethiopia’s intervention in the war by declaring that it is counter productive.
Though the PM had estimated the casualties on the side of the UIC at a little over a thousand on Tuesday, by Thursday, UIC causalities leaped to 2-3000 people killed and 4-5000 wounded. Most of the casualties occurred in the first two days of combat.
In what PM Meles considers as the biggest and fastest military victory in Ethiopian military history, he was highly confident when he stated that Ethiopia’s mission in Somalia was half finished.
“Ethiopian forces, along with Temporary Federal Government (TFG) have broken the back of the extremists and most of them are fleeing to the coastal areas. This is the most lopsided war I have ever seen,” he said.
Though the crushing of the UIC forces might not come as a surprise, the fact that most of the people who fought along side it were non Somalis was a surprise statement by the PM.
“We have lists in our possession that show that the Jihadist elements had Mujahidin, Shebab and Eritrean forces fighting along side them. We have also found people who hold British passports,” the PM had said in an earlier conference.
Though leaving Somalia as soon as possible is first on his agenda, the PM pointed out that if the Temporary Federal Government (TFG) asked for it they would provide help.
“If the TFG wants our help, we will help stabilize Mogadishu. Though it is not our mission to liberate or rebuild Somalia, as long as we are there and we are asked for it we will provide help physically and when we leave, we will help in other ways,” he said.
It was stated that the TFG have taken control of at least four towns in central Somalia, Bur Hakaba, Dinsor, Bandiradley and Adodo, Tuesday after Islamist fighters withdrew. A Somali government official said Ethiopian troops are posted less than 100 kilometers from the Islamist-held Somali capital, Mogadishu.
In New York, the top United Nations envoy to Somalia urged the Security Council to call for an immediate ceasefire and for the parties to return to dialogue without preconditions.
The U.S. State Department defended Ethiopia's actions, saying Ethiopia has genuine security concerns in Somalia and has intervened at the request of the country's legitimate government. However, the State Department also urged Ethiopia to show maximum restraint.
The fighting in Somalia broke out December 19 after months of rising tension as the Islamic Courts movement took over much of the country's center and south.
The United States on Tuesday signaled its support for the Ethiopian offensive in Somalia, calling it a response to “aggression” by Islamists who have since the summer been consolidating power in the country.
Three banks under formation
By Tedla Yeneakal
Three new banks are under formation to join the financial sector in the coming months, sources from the National Bank of Ethiopia (NBE) disclosed.
According to information obtained, the three banks, namely Fenote Selam, Berhan and Oromia International Bank are in the process of establishment and are at the moment seeking buyers of shares in order to obtain the funds required to set up a bank capitalized at some 80 million birr.
The founders of the bank have already presented their plans to the supervisory body, NBE but have not yet finalized the registration process.
Following the change in the economic policy in 1991 after the EPRDF government came to power , financial sector reform was implemented. The Monetary and Banking Proclamation of 1994 established the National Bank of Ethiopia as a judicial entity, separate from the government and outlined its main functions.
The Monetary and Banking Proclamation No.83/1994 and the Licensing and Supervision of Banking Business No.84/1994 laid down the legal basis for investment in the banking sector.
There are currently eight private banks in the country; with the latest one to be established being Lion Bank with the three new banks entering the financial sector it will augment the number of banks to 11.
Shortly after the proclamation was put in place in 1994, the first private bank, Awash International Bank was established by 486 shareholders with an authorized capital reaching Birr 50.0 million in 1998. The second bank, Dashen was established in September 1995 as a share company with an authorized and subscribed capital of Birr 50.0 million. Bank of Abyssinia, was founded by 131 shareholders with subscribed and authorized capital of 25.0 million and 50 million, respectively. Wegagen Bank was the fourth with an authorized capital of Birr 60.0 million and started operations in 1997. United Bank opened on 10th September 1998 and has 335 shareholders. The banks now has four branches. The sixth bank to be established was Nib International Bank which became operational in May 1999 with an authorized capital of Birr 150.0 million.
Various attempts to obtain more detail on the three new banks were unsuccessful.
Somalia time capsule
Record of key events
The saga of Somalia is compounded by a lack of awareness of Somali history. This fiercely proved people, homogenous and of one faith have experienced an eventful past particularly in the latter years of the 20th century.
Current events will be better understood in the context of the near and distant past. The following chronology traces Somali history from the seventh century to the present – a tumultuous path of conflict and civil strife.
Islamist advance
2006 February - Transitional parliament meets in Somalia - in the central town of Baidoa - for the first time since it was formed in Kenya in 2004.
2006 March and May - Scores of people are killed and hundreds are injured during fierce fighting between rival militias in Mogadishu. It is the worst violence in almost a decade.
2006 June-July - Militias loyal to the Union of Islamic Courts take control of Mogadishu and other parts of the south after defeating clan warlords. A political stand-off emerges between the Islamic Courts and the transitional government based in Baidoa.
2006 July-August - Mogadishu's air and seaports are re-opened for the first time since 1995.
2006 September - Transitional government and the Union of Islamic Courts begin peace talks in the Sudanese capital, Khartoum.
Somalia's first known suicide bombing targets President Yusuf outside parliament in Baidoa.
2006 October - About 35,000 Somalis escaping drought, strict Islamist rule and the possibility of war have arrived in Kenya refugee camps since the start of 2006, the UN refugee agency UNHCR reports.
War of words between Ethiopia and Somali Islamists. Premier Meles says Ethiopia is "technically" at war with the Islamists because they had declared jihad on his country.
2006 November - Transitional government and Islamists fail to meet for scheduled round of peace talks, raising fears that they will come to blows and draw neighboring countries into the conflict.
2006 December - UN Security Council endorses African peacekeepers to help prop up the interim government. Islamist leaders say they will tackle any foreign forces as invaders.
Following fighting near Baidoa between the Islamists and government troops backed by Ethiopian forces. The head of the Islamic Courts says the movement is at war with Ethiopia.
December 24 - Ethiopia confirms it is engaged in fighting against the Islamists in Somalia.
December 25 onwards - In fierce fighting, Ethiopian aircraft, tanks and artillery support forces of the transitional government. Jets strike targets which include Islamist-controlled airports.
History
600s - Arab tribes establish the sultanate of Adel on the Gulf of Aden coast.
1500s - Sultanate of Adel disintegrates into small states.
1875 - Egypt occupies towns on Somali coast and parts of the interior.
1860s - France acquires foothold on the Somali coast, later to become Djibouti.
1887 - Britain proclaims protectorate over Somaliland.
1888 - Anglo-French agreement defines boundary between Somali possessions of the two countries.
1889 - Italy sets up a protectorate in central Somalia, later consolidated with territory in the south ceded by the sultan of Zanzibar.
1925 - Territory east of the Jubba river detached from Kenya to become the westernmost part of the Italian protectorate.
1936 - Italian Somaliland combined with Somali-speaking parts of Ethiopia to form a province of Italian East Africa.
1940 - Italians occupy British Somaliland.
1941 - British occupy Italian Somalia.
Independence
1950 - Italian Somaliland becomes a UN trust territory under Italian control.
1956 - Italian Somaliland renamed Somalia and granted internal autonomy.
1960 - British and Italian parts of Somalia become independent, merge and form the United Republic of Somalia; Aden Abdullah Osman Daar elected president.
1963 - Border dispute with Kenya; diplomatic relations with Britain broken until 1968.
1964 - Border dispute with Ethiopia erupts into hostilities.
1967 - Abdi Rashid Ali Shermarke beats Aden Abdullah Osman Daar in elections for president.
Drought and war
1969 - Muhammad Siad Barre assumes power in coup after Shermarke is assassinated.
1970 - Barre declares Somalia a socialist state and nationalises most of the economy.
1974 - Somalia joins the Arab League.
1974-75 - Severe drought causes widespread starvation.
1977 - Somalia invades the Somali-inhabited Ogaden region of Ethiopia.
1978 - Somali forces pushed out of Ogaden with the help of Soviet advisers and Cuban troops.
1981 - Opposition to Barre's regime begins to emerge after he excludes members of the Mijertyn and Isaq clans from government positions, which are filled with people from his own Marehan clan.
1988 - Peace accord with Ethiopia.
Disintegration
1991 - Opposition clans oust Barre who is forced to flee the country.
1991 - Former British protectorate of Somaliland declares unilateral independence.
1992 - US Marines land near Mogadishu ahead of a UN peacekeeping force sent to restore order and safeguard relief supplies.
1995 - UN peacekeepers leave, having failed to achieve their mission.
1996 - Warlord Muhammad Aideed dies of his wounds and is succeeded by his son, Hussein.
1997 - Clan leaders meeting in Cairo agree to convene a conference of rival clan members to elect a new national government.
1998 - Puntland region in northern Somalia declares autonomy.
2000 August - Clan leaders and senior figures meeting in Djibouti elect Abdulkassim Salat Hassan president of Somalia.
2000 October - Hassan and his newly-appointed prime minister, Ali Khalif Gelayadh, arrive in Mogadishu to heroes' welcomes.
Restoring order
2000 October - Gelayadh announces his government, the first in the country since 1991.
2001 January - Somali rebels seize the southern town of Garbaharey, reportedly with Ethiopian help.
2001 February - French oil group TotalFinaElf signs agreement with transitional government to prospect for oil in south; one of main faction leaders, Mohamed Qanyareh Afrah, signs accord recognising interim government, reportedly in return for promise of ministerial posts.
2001 April - Somali warlords, backed by Ethiopia, announce their intention to form a national government within six months, in direct opposition to the country's transitional administration.
2001 May - Dozens killed in Mogadishu's worst fighting in months between transitional government forces and militia led by warlord Hussein Aideed.
2001 May - Referendum in breakaway Somaliland shows overwhelming support for independence.
2001 August - Forces of the opposition Somali Reconciliation and Restoration Council seize Kismayo for General Mohammed Hirsi Morgan.
2001 August - UN appeals for food aid for half a million people in the drought-hit south.
2001 September - UN, EU evacuate foreign aid workers in period of uncertainty in wake of attacks on US.
2001 November - US freezes funds of main remittance bank over suspected al-Qaeda links. UN humanitarian official says move is helping to push country towards economic collapse.
2002 April - Warlords in southwest unilaterally declare autonomy for six districts and form "Southwestern Regional Government".
2002 May - New president of breakaway Somaliland Dahir Riyale Kahin takes power after death of Mohamed Ibrahim Egal and pledges to preserve sovereignty.
2002 October - 21 warring factions and transitional government sign ceasefire under which hostilities will end for duration of peace talks.
2003 April - First presidential elections in breakaway Somaliland; incumbent Dahir Riyale Kahin wins by narrow margin.
2004 January - Breakthrough at peace talks in Kenya; warlords, politicians sign deal to set up new parliament.
2004 May-June - More than 100 killed in upsurge of fighting. Deadly clashes between ethnic militias in southern town of Bula Hawo.
Transitional government
2004 August - New transitional parliament inaugurated at ceremony in Kenya. In October the body elects Abdullahi Yusuf as president.
2004 December - Prime Minister Ali Mohammed Ghedi is approved in office by parliament. Large waves generated by an undersea earthquake off Indonesia hit the Somali coast and the island of Hafun. Hundreds of deaths are reported; tens of thousands of people are displaced.
2005 May - Explosion kills at least 10 people and injures many more at a rally in Mogadishu where Prime Minister Ali Mohammed Ghedi is giving a speech.
2005 June - Somali government begins returning home from exile in Kenya, but there are bitter divisions over where in Somalia the new parliament should sit.
2005 November - Prime Minister Ali Mohammed Ghedi survives an assassination attempt in Mogadishu. Gunmen attack his convoy, killing six people. (Source: BBC)
Fuel price down a notch
By Groum Abate
For the first time ever, fuel prices in Ethiopia have lowered slightly after the international oil market registered significant falls over the last few months.
The Council of Minister’s in its weekly meeting held on Friday December 29, decided that fuel prices would be adjusted as of Saturday December 3, 2006.
According to the statement, the adjustment made yesterday lowered the price of regular petrol from the current 8.17 birr to 7.77 birr after a 0.40 cents decrease.
Furthermore, jet fuel went down by 0.64 cents to sell for 5.16 birr a liter as of yesterday.
The council also decided that kerosene price would not be reduced as the government subsidizes it at 0.93 cents per liter. This subsidy used to be one birr. At present, kerosene is marked at 4.12 birr per liter.
The council has also decided that other types of fuels would remain fixed at existing prices.
The council had increased fuel prices in the last two consecutive seasons after a long period when oil prices remained unchanged.
In April 2006, the government adjusted the first price increment by 20 percent after it had delayed price rises for a year. Then in August 2006, the council increased prices by 25%.
Some observers said that this move by the council is a good beginning as they had not seen commodity price reduced.
There are a number of reasons for the slump in oil supply. Growing turbulence in the Middle East, the world's largest oil-producing region, has led to decreased exports; some economists attribute the dramatic fall in supply to the war in Iraq, Iran's nuclear program and instability in Saudi Arabia. Outside the Middle East, other oil producing nations have experienced similar problems, such as the strikes and political problems in Venezuela and potential instability in West Africa.
The price of standard crude oil in the international market was under 25 dollars per barrel in September 2003, but by August 11, 2005, it had risen to over 60 dollars, and topped out at a record price of 78.40 dollars a barrel on July 13, 2006.
Experts attributed the spike in prices to a variety of factors, including North Korea's missile launches, the crisis between Israel and Lebanon, Iranian nuclear brinkmanship, and reports from the U.S department of energy showing a decline in petroleum reserves.
But oil prices began to decrease, closing below 66 dollars per barrel on September 11. As of September, prices continue to fall. On September 19, crude oil fell to a 6-month low of 61.66 dollars a barrel. By October 3, the price closed at 58.68 dollars, its lowest close since mid-February 2006. Reasons for the recent price decreases have included easing tensions with Iran, ample supply and the lack of hurricane activity in oil-producing regions of the Gulf of Mexico.
After news of North Korea's successful nuclear test on October 9, 2006, oil prices rose past 60 dollars a barrel, but fell back the next day. Also, for several days in early October, oil prices bounced around the 60 dollars mark on possible news that some OPEC countries would cut oil production by 1,000,000 barrels a day. OPEC had not cut its production since December 2004. However, the oil market has lately seemed to shrug that news off, especially considering that Saudi Arabia said that no such agreement exists (to cut production).
On October 11, oil prices fell below 58 dollars for the first time since February. Days later, on October 20, a barrel of crude oil closed at 56.82 dollars per barrel. The same day, OPEC declared that they would cut production by 1.2 million barrels per day in order to arrest the sliding price, the first drop since December 2004.
High oil prices are hurting many countries in Africa, including Zimbabwe, Eritrea and Tanzania. High oil prices have created an oil supply instability, per barrel price instability or both. In some cases this has led to fuel rationing being enacted. Many countries in Sub-Saharan Africa lack the foreign exchange reserves to purchase enough oil products at the ever increasingly higher prices. These nations must resort to limiting imports or rationing their existing supplies.
In view of a looming supply crunch worldwide, terrorist and insurgent groups have increasingly targeted oil and gas installations to maximise both mayhem and political gains. Sometimes, such attacks are perpetrated by militias in regions where oil wealth has produced little tangible benefits for the local citizenry, as is the case in the Niger delta. The terror factor adds an additional premium, including insurance costs, to the price of oil.
For example, the September 2005 sales data for all the vehicles vendor around the world indicated SUV sales dropped while small cars sales increased compared with 2004 sales. There is also an ever increasing market for hybrid vehicles and diesel engine vehicles since they are more fuel efficient; since the 1973 energy crisis, the four-cylinder front-wheel drive passenger car has replaced rear-wheel drive as the preferred layout for energy efficient cars. There is increasing demand of "crossover" sport utilities (i.e., SUVs based on passenger car platforms) which are marginally more fuel efficient than traditionally heavier truck-based SUVs.
According to the Ethiopian Petroleum Enterprise (EPE), the government body responsible for petroleum imports, in 2004 it imported 1,248,092 metric tons of petroleum at a cost of 3.08 billion birr. In 2004, the enterprise paid 2,471 birr for one metric ton. Last year, the cost of one metric ton of petroleum increased to 3,100 birr. In 2005, EPE imported 1.3 million metric tons of petroleum products at a cost of four billion birr.
Abenet calls for worldwide representation
of Ethiopian coffee
By Tedla Yeneakal
Abenet G. Meskel, a prominent businessman and a close partner of the Ethio-Saudi business tycoon Sheik Mohammed Alamoudi, has called for a joint international representation aimed at protecting Ethiopian farmers to benefit from the rightful share of Ethiopian coffee proceeds.
Abenet told Capital that all coffee farmers association must jointly work hand in hand to possess legal ownership of the country’s coffee to help Ethiopia capture a greater share of the market value associated with her premium coffees. “It is my first time participating in such a campaign and as any Ethiopian national, I vow to support farmers in any effort aimed at boosting the revenue generated from a major export commodity for the country,” Abenet explained his presence at a coffee ceremony hosted as part of a campaign by Oxfam at the Sheraton Addis on Friday, December 29.
Ethiopia is continuing to pursue its trademark applications for Sidamo and Harar coffees in the US and has asked Starbucks and other companies to sign a nonexclusive, royalty-free licensing agreement that acknowledges the country’s ownership of its coffees, regardless of whether they have been issued a trademark.
“I was really inspired by my cousin, Hirut G. Selassie (regional advisor at Oxfam Great Britain) to participate in this campaign,” Abenet said. “I also have a plan to be involved in enhancing our representation at a worldwide level.”
In October 2006, Oxfam launched a campaign urging Starbucks to honor its public commitments to its coffee growers by signing licensing agreements acknowledging Ethiopia’s ownership of its coffee names. The launch of the campaign came after nearly a year and a half of attempts by the Ethiopian Government and Oxfam to talk meaningfully with Starbucks and secure the company’s acknowledgement of Ethiopia’s claim to its coffee trademarks.
Present at the ceremony State Minister of Agriculture and Rural Development, Dr. Abera Deressa, and representatives of various coffee farmers cooperative unions and invited guests.
EEPCo terminates 50 management staff
Appoints 150 sub-managers
By Groum Abate
The Ethiopian Electric Power Corporation (EEPCo) has given letters of termination to 50 employees that were at management level.
Sources told Capital that these employees have not been assigned when the corporation started a restructuring of its organization in May of this ended year.
The corporation has also continued the restructuring process as the corporation assigned 150 sub-branch managers last Friday December 22, 2006.
According to the letter signed by Distribution Sector Deputy General Manager Girma Tegegne, these managers would in the next few days the their designated stations around the country.
The corporation would continue its restructuring to other levels after it completes the process at management level.
In related development, the corporation is expected to announce the revised salary scale for its employees.
Recently, EEPCo started massive reshuffling and restructuring extending from the executive management of the corporation down to all other levels to make the corporation efficient in all aspects.
EEPCo is hoping to complete the restructuring and reshuffling process by the end of this fiscal year. The restructuring would also consist of a new wage and training scale for employees.
In a bid to meet the five year strategic plan, the corporation has increased its deputy general managers from four to seven.
Shiferaw Telila is appointed as Universal Electrification Project vice-general manager, replacing Tesfaye Delesa. Melaku Mamo and Tesfaye Tegegne are also appointed as vice-general managers to the split Operations department, which used to be headed by Tesfaye Kebede.
Abebe Tesfaye, who headed the multi-million dollar Tekezze project, is now appointed as vice-general manager of Transmission Construction and Abdulhakim Mohammed continues as Generation Construction vice-general manager. The Construction department used to be a single unit before the restructuring.
Tegnework Yirga has also been appointed as vice-general manager of the Human Resource department, which was previously run by Tsegaye Worku.
Will ancient Ethiopian farming
practice improve?
By Andualem Sisay
Centuries have passed since Ethiopian farmers have been using the traditional way of farming by using two oxen. As the price of one ox is getting higher and higher due to the international demand for leather and meat, it seems the right time to use other livestock rather than sticking to oxen power labor. Mekonen Kabtyimere, a former airplane Captain has come up with his an idea that first came to mind some 26 years ago.
“What will happen to our agricultural product which is the back bone of the economy and input of most our industries?” asks Captain Mekonen. “These days, the farmers are choosing to fatten and sell an ox rather than using it for farming because the price ox is increasing every time. So, it is wise for us who say that we are educated don’t help these farmers who are the sole source of our daily bread.”
This mode of farming, other than substituting power ox with donkey or horse, he modified the former inefficient plough in to sword plough type. This technology will also lift the burden of carrying the farming equipment on his shoulder during farming, as sword plough farming requires only guidance by the farmer but not pushing.
A visitor of the Ethio Last millennium Trade Fair, on Thursday at the opening of the fair, said it is very encouraging to see entrepreneurs actively involving themselves in such major problems that touch the lives of all Ethiopians. It is a waste of energy and money if we are unable to deliver this innovation to make the lives of our farmers earlier by acting jointly in a spirit of nationalism, according to him.
Captain Mekonen says his innovation is facing big challenges when it comes to its implementation. “Although, I have received the patent rights to my innovation and successfully tested it eight month ago the in Metehara area, due to the high tax rate of imported steel, it has become difficult to find a private partner to bring this technology to our farmers.”
“I have also tried to work with the concerned Ministry of Agriculture to work together, but we didn’t agree as they asked me to submit my innovation to them.” He is unhappy because the Ministry wanted to study the innovation by its own experts and excluding him, according to Captain Mekonen. “Once I came up with such a tried and tested innovation that will definitely have significance to the country, they have to involve me in further modifications and I have to get what I deserve from my innovation since I already have the patent rights.”
Yirgachefe doubles profit amidst brand dispute
By Tedla Yeneakal
Yirgachefe Coffee Farmers Cooperatives Union doubled its net profit to 3 million birr in the just ended fiscal year amid the Union’s trademark dispute with coffee chain, Starbucks, based in the United States.
Berhanu Deyasso, General Manager of the Union told Capital that the recorded profit was mainly due to the international coffee price rise. The Union exports to Europe, the United States and Japan.
Europe possessed the largest share of 60% of the total export of the union, offered at an improved international market price of 1.46 USD for a kilogram, up from the year 2005, which stood at 1.396 USD. “Although the international market price is better than 2005, it still needs to improve regarding the fact that half a kilogram of coffee can make 50 cups of Starbucks coffee, earning them an enormous profit from it,” Berhanu said. “We also need to increase the volume of export, as local consumption is currently 50% of our total production he said.
Yirgachefe, in the year 2006 exported 1172 tons to the aforementioned markets,
an increase from the previous year’s of 1036 tons.
The Union represents close to 44,000 farmers and more than 300,000 dependents. It was established in June 2002 with 22 member cooperatives located in Gedeo in southern Ethiopia. The 62,004 hectares dedicated to garden coffee produce on average 9,000 tons of Yirgachefe and 3,000 tons of Sidamo washed coffee each year.
ERA earmarks 2.9bln birr + on four road projects
By Eskinder Michael
Loan deals from the International Development Association (IDA) being sanctioned the Ethiopian Roads Authority (ERA) has launched a package of four road projects for a total cost of close to three billion birr.
The construction of the four roads is part of the third phase of the Adaptable Program Lending (APL III).
The road projects include a 268km Aposto-Wendo-Negelle road, 134km Gedo-Nekempte road, 103km Gondar-Debark road and the 138km Yalo-Dallol road, all found in different regions of the country.
ERA has set aside 1.2 billion birr for the Aposto-Wendo-Negelle road, 752.6 million birr for Gedo-Nekempte, 505.6 million birr for Gondar-Debark and 454.6 million birr for Yalo-Dallol found in Oromia, Amhara, Tigray and Afar States respectively.
Though the construction of such roads apart from working in favor of building a strong infrastructure would help in many ways, the possible loss of property, change in land use, and pollution of local water are some of the negative impacts. But the fact that remote areas could be connected to the more developed areas of the country, job opportunities for local people, and provision of safer and faster transportation are the positive impacts of road construction.
It was also stated that some 12,230 people could be resettled after the construction of these roads. About 714 people would be resettled along the Aposto-Wendo-Negelle, some 3,896 people along the Gedo-Nekempte, 7,500 people along the Gondar-Debark, and roughly 120 people along the Yalo-Dallol road would be beneficiaries.
Taking into consideration that resettling people and demolishing some properties will also cost money, ERA has set aside about 34.4 million birr for the Aposto-Wendo-Negelle road, 180 million birr for Gedo-Nekempte, 4.7 million birr for Gondar-Debark and 277,200 birr for Yalo-Dallol. The construction of the roads alone is set to cost 2,912,800,000 birr.
ERA has come up with an ambitious plan of constructing 106,106 km of roads as part of its five year plan. This would include 11,331 km at federal level and 94,775 km of regional roads.
ERA also has a five year plan of constructing a total of 20,000 Km of road in Addis Ababa alone. The problem however is that shortage of equipment and professionals could hamper ERA’s plans to go ahead with its largest construction plans ever.
The authority, in its first five year plan had constructed just 88% of its targeted amount in Addis Ababa, which according to the authority was due inability. For this, about 14.9 billion was spent out of the allocated 15 billion birr. But the story was different at the federal level, where 112% of the targeted amount was constructed.
Agricultural export
shows decline
By Eskinder Michael
Export proceeds from agricultural products were recorded to be 145 million USD in the first quarter of this fiscal year showing a constant decline, according to a statement by the Ministry of Agriculture and Rural Development.
The earnings have been found to be lower when compared to the earnings over the same period last year.
Among the exported items that fetched 145,950,000 US dollars were 118,550 tons of various products such as coffee, pulse seeds and other agricultural produce, while 39,000 heads of cattle have also been exported in the first quarter of this fiscal year.
After finding it to be a sound idea, the ministry plans to help local exporters take part in exhibitions and expos in the USA, Europe and Japan to help exporters introduce their products.
Though earnings from exports have been showing constant growth in the past few years, the earnings recorded last year stood at 26.5 million USD or a 3% drop as compared to that of year before last. Ethiopia had earned over 780 million USD from exports.
About 645 million USD of last fiscal year’s export earnings were earned from the export of large amounts of flowers, coffee, oil seeds, pulses and other agricultural products to Europe, the U.S, Asia and some African countries, through tariff and quota-free opportunities.
Exports of agricultural products to the Middle East and Japan earned an additional 135 million.
Ethiopia earned 402 million USD from the export of coffee, over 142 million USD from sesame, 51 million USD from hides, skin and leather products, 27 million USD from flowers and 23 million USD from the export of livestock and other agricultural products, in the past fiscal year.
European countries, the USA and China had offered some incentives to Ethiopian export, a decision that might have helped in a stronger export factor, but an opportunity that had failed to equal the past two year’s export earnings.
The opportunities provided by importing countries were attracting the attention of more and more exporters, though the results of the first quarter of this fiscal year aren’t as encouraging as expected.
It is expected that the number of exporters will increase significantly.
The Ministry of Finance and Economic Development (MoFED) had at the end of last fiscal year announced that Ethiopia had registered 8.55% economic growth. The growth was overshadowed however by a demoralizing 2.5 million per annum population growth.
Starch imports to be history
entrepreneur
By Andualem Sisay
Yitbarek who is owner and manager of YASCAI (Yitbarek Alemu Starch, Chemical & Adhesive Industry) began extracting starch from Enset (‘false banana’- a staple in southern areas of Ethiopia) six years ago. Yitbarek, a chemist by profession, began his research to produce starch locally from different vegetables ten years ago. Today his company is the first to produce starch in Ethiopia. Some 100 farmers from two farmers’ associations are supplying the company with enset.
Based on client demand, YASCAI is currently producing one ton of starch daily and has finalized preparation to increase this to three tons. The company’s starch production is widely consumed by local textile and paper factories. It employs about 60 professionals, including those involved in research on other vegetables.
“Currently the local market is demanding potato and cassava starch, so we have also began producing these products,” says Yitbarek. “We are conducting research to produce dextrin (a translucent, gummy, amorphous substance, nearly tasteless and odorless that is obtained from starch, used as a substitute for gum, for sizing, etc.,) and soluble starch and also plan to join the current global efforts to produce alcohol from starch.”
Among those who commented about the factory after a visit to YASCAI are employees of Ethiopian Pulp and Paper Factory: Hailu Legesse, Hashim Zeberga Wenji and Asmare Abera indicated their happiness to see the company’s success in saving the country foreign currency through individual effort and wished the company to keep up the good work.
The company is also producing adhesives from the starch it produces and is providing this product to breweries and mineral water factories for labeling their bottles.
Entering the market was not easy for YASCAI, especially due to negative attitudes towards local products. The manager urges the public to change this attitude by beginning to evaluate products for their quality rather than where they are made. “Our product is 100% export standard. What we need is genuine and corruption free support from the government,” says Yitbarek.
According to Yitbarek, all the production materials for the company are produced by local companies and he says let’s all support our country’s economy by buying local products.
Rural homes get
solar power
By Andualem Sisay
“It is like a new life,” says a delighted woman in Rema, population 4,300, a village approximately 150 kms north of Addis Ababa, after getting electric lighting in her hut for the first time.
Today,some eight hundred houses in the village have been provided with solar electricity by way of the 200,000 euros fund from German foundation, Stiftung Solar Energie.
“After a month the number of houses that will benefit from this program will reach 1200,” says Samson Tsegaye, CEO of Solar Competence Center, a private company which implements the technical installation activities of the project and Stiftung Solar Energie’s representative. “It will make Rema the largest solar village in Ethiopia providing power for more than one thousand huts, a school, church, and a health post.” Last year, 35 households received electricity from the project.
The cost of installing solar energy is around 200 euros for each household. The solar box, containing the battery and the charge regulator is manufactured by a company in Addis Ababa.
A household that uses two bulbs is expected to deposit 8 birr each month to sustain their beneficiary for maintenance and operation. Those who use the electricity to use appliances pay 3 birr per month. The solar battery must be replaced after approximately six to seven years. The old ones will be recycled, according to Solomon.
Stiftung Solar Energie is planning to be registered in Ethiopia as an NGO to actively involve itself in introducing rural area to solar energy.
Although Ethiopia has huge potential of water resources even up to selling hydroelectric power to neighboring countries, about 83% of the population still have no access to electricity. So far, the country is able to generate 800 MW for some 12 million people. In its five year plan, the government is working towards an ambitious target of increasing current capacity up to 4,000 MW.
Solar energy seems to be the short cut for most rural people in the country until the government is able to use its full potential of generating electric power.
Roof collapse kills two
injures four
By Groum Abate
Two construction laborers working on the basement of a ten-story building near the bridge located on the way from Olympia to Bambis Supermarket were killed on Tuesday December 26, when the roof collapsed.
Two other workers were also seriously injured in the accident.
A security guard who was passing by when the tragedy occurred said that he saw dust and debris from the collapse. The guard further said that aid workers came to the scene shortly and dug the indured and dead out with an excavator. The survivors were later taken to hospital.
The workers were trying to mount a pillar inside the hole to prevent the roof from falling when the accident occurred.
Another eyewitness said that warned there was a sign above the hole that says the land could shift suddenly.
Construction accidents have been occurring in recent times at the many construction sites around the city.
Wooden scaffoldings that are used as ladders repeatedly fall, killing and injuring many laborers. Scaffolding that collapse are usually made of wood, which is the most common material used for this purpose in Addis. It is highly risky as it is susceptible to aging and natural flaws.
Employers are meant to report immediately after an accident occurs to the Work Environment Monitoring and Training Division, under the Ministry of Labour and Social Affairs (MoLSA), but many do not do so due to lack of information or the absence of a standard directive for the construction industry.
According to labour investigators at MoLSA, 4,700 cases relating to work injuries or deaths were filed in 2003/2004.
The International Labour Organisation (ILO) says that annually, workers around the world suffer approximately 270 million occupational accidents leading to absences from work for three days or more and fall victim to some 160 million work related diseases. The death toll reaches 2.2 million annually, of which 350,000 are from accidents and the rest from diseases. According to the ILO, these problems lead to a loss of four per cent of the world’s gross domestic product.
Mengistu’s sentence set for January 11
By Groum Abate
The Federal High court was adjourned for the sentencing of former dictator Mengistu Haile Mariam et. al. in absentia on January 11 after the judge said on Thursday, December 28, he needed more time to consider appeals by both sides in the long running genocide trial.
The trial of the former Ethiopian dictator and other top- officials came to an end in the beginning of the month with the court ruling that the military junta ruler and his officials were guilty of genocide. Only one defendant was acquitted.
Judge Medhin Kiros said the court would deliver its sentence on January 11, "after considering extenuating statements by the accused and the prosecution's argument for a stiffer penalty".
Mengistu, who ruled Ethiopia for 17 years, was tried in absentia, along with other defendants, accused of 210 counts involving genocide, crimes against humanity and systematic human rights violations.
Reading the verdict, the presiding judge said that Mengistu and his officials “conspired to destroy a political group and kill people with impunity.” Other top officials of the former military/Marxist regime tried during the marathon proceedings include former prime minister Fikre Selassie Wogderess and former vice-presidents of the State Council Debella Dinssa and Fisseha Desta.
Mengistu climbed to power after overthrowing Emperor Haileselassie in 1974 in a military coup that resulted in him having the emperor killed and buried under his office and about 60 imperial ministers executed.
Mengistu started his campaign by trying to eliminate his ‘so called imperialists’ enemies rather than building an economically strong state. During his time as president of Ethiopia, Mengistu had also seen that about 14 generals were tried and executed for allegedly plotting a coup. Mengistu’s suspicion of rising opposition was followed by him ordering police and military to kill off all opposition in the infamous ‘Red Terror’ campaign.
With Mengistu’s fear of insurrection growing and illusion of building a great Marxist state taking unexpected twists, Ethiopia plunged into another famine in 1984 that saw millions of people dead as the dictator wouldn’t let aid reach the victims. Mengistu was condemned by the international community for his inability or unwillingness to take action while approximately 1 million Ethiopians died of hunger.
Mengistu’s reign in Ethiopia was loosening with every approaching year as the then rebel group (now the EPRDF) advanced from all sides and finally, in 1991 overthrew the Derg.
Mengistu fled to Zimbabwe where he is still living in exile.
African Mosaïque, with cultural
evening
By Andualem Sisay
The Ethiopian Children’s Fund, an NGO aiding orphans in Aleltu area, 55kms from Addis Ababa, is organizing its annual fund raising program, the African Mosaïque show, at the Sheraton Addis next Friday evening.
African Mosaïque is a cultural show that promptes Africain textile, design, and designers. The money raised from this year’s show will go to the construction of the vocational school in Ethiopian Children’s Fund Village in Aleltu.
“I started the African Mosaïque concept when I was in New York. The reason I did so was to look for new ways of raising funds. I wanted to focus on something I know best which is design and fashion,” says Model Anna Getaneh, founder of the Ethiopian Children’s Fund. “As usual, we expect hundreds of people Friday night who will enjoy the evening by buying the three hundred birr ticket from the lobby which goes directly to the construction of Aleltu vocational school.”
Ethiopian Airlines and the Sheraton Addis are sponsors Friday evening’s show. More than sixteen Ethiopian models including major beauty contest winners and other top models from abroad will participate. Miss South Africa, former Miss Tanzania and Miss Nigeria are also invited as the celebrity guests of African Mosaïque.
Currently the NGO is providing education, healthcare, uniforms, clothing and nutrition to some 347 orphan children from Aleltu and the surroundings. The children stay in the village until 4 o’clock and go to their extended families in the evening.
According to Anna, the major drive of the current fund raiser is to start a vocational center in Aleltu to continue providing training for the youth and not only Ethiopian Children’s Fund orphans.
Before it was registered as an NGO in Ethiopia in 1997, the Ethiopian Children’s Fund was established in the USA in 1993 for funding small NGOs in Ethiopia such as Shashemene School for the Blind and Abebech Gobena orphanage.
It has 40 staff members and up to December 2005 the Ethiopian Children’s Fund has accomplished projects worth more than seven mln birr. They include growing crops and running dairy farms.
The Ethiopian Children’s Fund is working in partnership with various partners such as USAID, Irish Aid, and others to implement its projects.
War could cost tens of mlns
AU asks Ethiopian forces to leave Somalia Aweys fleeing to coastal areas
By Eskinder Michael & Andualem Sisay
After being pressed to release a ball park figure on how much the war with United Islamic Courts (UIC) could cost Ethiopia, Prime Minister Meles Zenawi said that it would be somewhere in the tens of millions of birr.
Though the PM had stated in an earlier conference with journalists that the Ethiopian force was operating on a shoestring budget, he was forced to say that the budget was not as large as it would seem. Ethiopian forces, along with TFG forces, according to the PM have broken the backbone of the UIC forces. In a statement that would seem like a U-turn, the African Union (AU) has asked Ethiopia to remove its troops out of Somalia, a statement that was received well by the Ethiopian side.
“The statement by the AU is consistent with ours because we want to leave Somalia as soon as possible,” Prime Minister Meles Zenawi said.
The AU, who at the beginning of the week was the first to say that Ethiopia had a right to defend herself, was also quick to ask Ethiopia to remove its troops from Somalia. The Union on Thursday urged Ethiopia to stop the offensive saying the Ethiopian troops waging war against rival Islamists in Somalia should leave the horn of African nation immediately.
“We call for the withdrawal of Ethiopian troops without delay. We appeal for urgent support for the transitional government and the withdrawal of all troops and foreign elements from Somalia.” AU chairman Alpha Omar Konare said in a statement.
The AU Chief urged Somalia’s interim government and the Islamic Courts Union to end all hostilities and resume the Arab League-sponsored peace talks that collapsed in Sudan last month.
“Like I said, with our mission (defend Ethiopia) almost finished, we want to leave Somalia at the earliest possible time. I don’t think the spirit of the statement by the AU said that Ethiopia couldn’t defend itself, so their request is consistent with our wish. But of the question that we leave immediately, we have unfinished business, as we plan to pursue remnants of the jihadist forces,” he said.
“It is not like we are dying to stay there,” he added.
The statement by the AU asking Ethiopia to remove its troops comes after the surprise statement saying that Ethiopia had the right to intervene in Somali affairs.
In related news, Shiek Aweys, leader of the United Islamic Courts has been spotted fleeing Mogadishu to the coastal areas after his forces were overwhelmed by TFG and Ethiopian troops.
In other developments, Somalia Republic Ambassador to Ethiopia and Permanent representative to the AU, Abdikarin Farah, stressed the need to restore basic security in Somalia to jump start law and order and reconstruction.
“It is of paramount importance to Somalia for the international community to assist us until the capacities and reliability of Somalia’s security institutions are sufficiently developed to sustain themselves.”
According to his statement, the absence of security along Somalia’s borders and coastline of 3300kms raises an obvious concern that domestic radicals, international terrorists, waste dumping, drugs and narcotics movement and arms proliferation may take advantage of the situation.
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