Capital

New beer factory brewing

By Groum Abate

Massive malpractice among importers

By Andualem Sisay

Nigeria invites NBE to invest in $2 bln African Finance Corporation

By Groum Abate

Drug companies shut down

By Andualem Sisay

VAT payers up 700%
Contraband is threatening economy and security

By Andualem Sisay

Businesses complain over border trade zones

By Groum Abate

Put up or shut up! Meles tells Esayas
Government to sell 1.5 mln quintals of wheat to stabilize market

By Eskinder Michael

Ethiopian Helicopter shot down
Somali ambassador denies

By our staff reporter

Tour operator launches campaign to free abducted Ethiopians

By Andualem Sisay

NMiC to pay 1.5 bln br for Abijata Soda Ash

By our staff reporter

EC to splash millions for proposals

By Eskinder Michael

MoARD prioritizes coffee
Plans to increase annual coffee production to 314,000 tons

By Eskinder Michael

JICA introduces Oromia partnership projects

By Andualem Sisay

Bazaar gives attention to micro and small enterprises

By Andualem Sisay

IGAD parliament in the works

By Eskinder Michael

Paying duty on ‘duty free cars’

By Eskinder Michael

Ethiopia rank 121st from 122 in IT

By Groum Abate

Ethiopia, Sudan sign Memorandum of Understanding

By Andualem Sisay

Ethiopia, Slovak agree on standard trade relations

By our staff reporter

ITEC day celebrated
Ethiopia-India Graduates Forum launched

By our staff reporter

New beer factory brewing

By Groum Abate

A new beer factory is in the making in the outskirts of Addis Ababa, by private Ethiopian investors.
The beer factory is to be set up around Dukem, 35 kms south of Addis Ababa and would bring the number of beer factories to six, after Meta Abo S.C, Harar, Bedele, BGI, and Dashen breweries.
Although they had spent four years in prison over allegations of corruption, the three owners of Star Business Group (SBG), Minwuyelet Atnafu, Abebaw Gelaye and Abebaw Desta are full of project ideas since they were acquited in 2005. These businesspeople are participating in this latest venture with Kangaroo Plast Plc, a family owned business group with diverse interests.
Sources told Capital that representatives of the two companies were in Germany to view machinery for the intended factory. The new factory would enter a beer industry which is believed to be a large market and where current breweries are expanding.
SBG was one of the contenders for the acquisition of the three breweries, which have a loyal circle of customers. Bedele, Harar, and Meta Abo were put up for privatization several times in the last couple of years by the Ethiopian Privatization Agency (EPA).
The previously planned sale of the breweries by EPA was not a success as potential buyers showed neither the skills nor the financial clout to take over three of the country’s biggest breweries.
The other private company, Dashen, used to produce about 26,200,000 liters of beer every year in 300 ml capacity bottles. Following an upgrade, the company is expected to produce
about 75,000,000 liters per year.
Present in Ethiopia since 1998,
BGI -Ethiopia operates two state-of-the-art bottling plants in Addis Ababa and Kombolcha, Northern Wollo and produces 100,000 hectoliters per month. BGI claims that it has more than 50% of market share.
Worku Merga, General Manager of Star Business Group, declined to comment on the story.

Massive malpractice among importers

By Andualem Sisay

1,091 importers (91.2 per cent of all registered importers) and 292 freelance-customs agents have committed commercial fraud once or twice, according to the record of Customs Authority. The findings were presented at the first National Tax Conference held in Adama, Oromia Region on Wednesday, March 28th 2007.
88 importers have transgressed three to four times and 16 broke the law 5 to 6 times. Overall in the past ten months, 1195 importers have been guilty of various levels of commercial fraud.
Out of the 292 freelancers engaged in commercial fraud, 73 per cent have done so one to 5 times and 24 per cent committed fraud from 6 to 50 times.
The commercial fraud that most of the importers and freelancers are found engaged in include: issuing various licenses to family members and relatives, using fake confirmation documents of agents who are engaged in handling, forwarding and shipping, as if the goods were sent from the manufacturer or seller; are methods that the importers and customs agents use. Deceitful packing, documentation, false information about the product’s size and quantity are also areas where commercial fraud occurs.
In addition, providing false information about the source of a product and fraud by those who are entitled tax-free import are also found to be among the acts of commercial fraud recorded by the Customs Authority. Providing bogus declarations that indicates the value of a product is also a frequent activity of many of the importers and free-lancers.

Nigeria invites NBE to invest in $2 bln African Finance Corporation

By Groum Abate

The Central Bank of Nigeria visited Ethiopia as part of an international road show to interest business in investing in the African Finance Corporation (AFC), a private sector-driven African investment bank that will commence operations in mid-April 2007.
Officials of the Central Bank of Nigeria (CBN), outlined the background of the institution, the business case for its existence and future prospects, at the Sheraton Hotel on Thursday March 29, to interested parties including the National Bank of Ethiopia.
The AFC, modeled on the lines of the International Finance Corporation, the private sector arm of the World Bank, is an initiative of the Federal Government of Nigeria, driven by the CBN.
When established, the corporation would finance development of infrastructure like roads and electricity projects as well as exports.
The proposed corporation was being established to help African countries to improve their productive base and accelerate the pace of economic development in the continent.
AFC would start as a public-private sector initiative with an initial capital base of 2 billion dollars.
The institution will be a private sector-led, profit-oriented African investment bank. A minimum of 51% of the start-up capital will be from the private sector. All central banks in Africa have been invited to invest in the bank, although the aim is to push private sector funding to 100% of the total, in time and in line with its objective of being a private sector institution.
CBN had already set aside 500 million dollars as part of its contribution and is expecting funds from other sources to make up the 2 billion dollars initial capital requirement.
Officials of the bank however, announced that it would sell off its 500 million dollars contribution immediately after the corporation takes off, to make the corporation a wholly private sector entity.
More than 800 million dollars has already been raised internationally towards the AFC’s start-up equity. The minimum investment is 50,000 dollars.
The institution, which is envisaged as being a pan-African organization in time, will have its headquarters in Lagos, Nigeria, with branches in several other African countries, based on business development opportunities.
The road show has already taken the CBN team to London, New York, The Gambia, Ghana, South Africa and Kenya.
The deadline for private placements, at $1 a share, ends in mid-April, just ahead of the launch of the AFC. The aim is to have the AFC listed on international stock exchanges, including those in London and New York, within five years. It will also be listed on African exchanges, including the JSE Securities Exchange.
The intention is that the AFC will harness the opportunities created by the massive funding gap for the development of key economic sectors in Africa and especially the development of infrastructure. This regional investment bank will help to mobilise and distribute capital to priorities identified by Africans. It will also provide technical assistance and advisory services.
The key sectors have been identified as: Agriculture, Power, Energy, Telecommunications, Financial Services, Mining and Fast Moving Consumer Goods, with Tourism mentioned as an additional area of investment.

Drug companies shut down

By Andualem Sisay

Two local companies that manufacture pharmaceutical products have been forced to shut down because they have been unable to compete with importers. The government has created better opportunities for importers compared to those for local manufacturers.
This was indicated at a Capacity building meeting prepared for local pharmaceutical factories by Engineering Capacity Building Program (ECBP), on Thursday evening at Ghion Hotel.
According to Asmelash Gebre, Secretary of Medical Supplies Sector Association and General Manager of ASMI Industry, local manufacturers have to pay a 38 per cent tax whereas importers pay only 5 per cent.
“Government has to consider the contributions of local manufacturers in terms of job opportunity, technology transfer, saving the country’s foreign currency, etc.,” Asmelash says that his company alone has more than 50 employees. “Furthermore, there are local medicines manufacturing companies that have begun generating foreign currency for the country by exporting their products. Therefore we urge the government to give attention to the sector and support us.”
Lifeline and Biosol are the two companies that have closed their gates after being unable to compete against importers, according to Asmelash. He also urged the media to promote use of local medicines by reporting its good value and changing the negative attitude of most people towards local products.
To easily access international markets, the association and ECBP are looking for global companies who are willing to work in partnership with local companies. Some German and Indian companies are showing interest to form joint ventures with local companies.
As a result of the two companies that went off the market, the number of local pharmaceutical factories is now 15 while there are more than 80 pharmaceuticals importers.
In addition to this, the company now called Rx Africa PLC (previously Sino-Ethiopia Sunshine Pharmaceuticals), is undertaking preparations to produce Anti-Retroviral, Anti-malarial and Anti Tuberculosis medicines.
According to Alemayehu Tegegne, Technical Manager for Rx Africa, three Indian research and development professionals will come to Ethiopia after three months. “ At the moment, AIDS, malaria and tuberculosis are the deadliest diseases in Africa,”. “Producing drugs to combat these scourges is significant to Ethiopia and also the entire continent,” concluded Alemayehu.

VAT payers up 700%
Contraband is threatening economy and security

By Andualem Sisay

The Federal Inland Revenue Authority indicated an increase of VAT (Value Added Tax) payers by more than seven fold than was previously predicted by the Authority.
This was stated in a report presented to the first National Tax Conference opened in Adama town, Oromia Region, this week on Wednesday and concluded yesterday, March 31st, 2007. Until the end of February, the number of VAT registered tax payers has reached 26, 849 whereas the expectation of the authority was only 3,500.
According to the report, 20,430 of the total VAT registered business are sole proprietorships, followed by 5,853 private limited companies.
Since VAT was levied in Ethiopia in 2004, the authority has been able to collect 3.5 bln and 4 bln birr in 2005 respectively and 4.8 bln in 2006.
15 per cent VAT is implemented on imported as well as local products and services. Financial, medical, educational and transport services that have a big role in economic and social development are among those which are free of VAT. Pesticides, chemicals, seedlings and other inputs which are directly used for agriculture, along with agricultural outputs such as milk, bread and the like are also VAT exempt, according to the Ethiopian Ministry of Finance and Development.
In a related development, the first National Tax Conference, held in Adama, which was attended by the Presidents of Regional States of Ethiopia, has discussed the issue of contraband as a major challenge for the country’s economy. It was also mentioned as a main threat to the security of the country as individuals have gone as far as smuggling of armaments.
“Out of the daily Tchat export of Ethiopia to Djibouti and Somaliland that ranges from 40 to 50,000 kgs, only half transits legally. As a result the country is loosing the foreign currency it deserves,” said President of Oromia Region, Abadula Gemeda.
According to the report on contraband, most such illegal trade practices are conducted through the eastern part of the country, especially through Somalia regional state. “Simply fighting contraband will not be a sustainable solution unless we have to provide those people, most of which are pastoralists, what they need in their day to day life from other parts of Ethiopia. This is by forming economic integration among regions, according to the President of Somalia Regional State, Esmail Ali Sero.
The lack of banking services and confusion over trade law in border areas was also mentioned by the participants as one of the causes of contraband.
According to the participants of the conference, Ethiopia is losing a considerable amount of foreign currency due to the agricultural products and cattle that are smuggled out of the country.

Businesses complain over border trade zones

By Groum Abate

Businesses that are based in border areas of the country complained about the directive that was implemented recently, limiting businesses in the area to a 100 km radius and a transaction cap of 5,000 dollars.
The business community around border areas of Ethiopia complained that the directive would limit business in border trade zones.
Border trade agreements with Sudan currently help Ethiopia to export products such as natural honey, leeks, horse bean, butter, and sorghum that have a combined estimated value of 1.9 million birr.
The business community demands for the expanding of the trade zone between the two countries from its current radius, increasing the current trade capital and increasing traded items.
Border areas are more susceptible to contraband because they share boundaries with other countries so, in order to alleviate this problem the Ethiopian government has signed a bilateral agreement with Sudan. It is also undertaking trade with regulations it issued on the borders it shares with Djibouti, Somalia, and Kenya.
Ethiopia and Sudan ratified a border trade protocol in Addis Abeba on May 2, 2001. The original trade agreement between the two nations was signed on March 6, 2000.
Based on this agreement, a border trade law was issued in 2002 to facilitate trade relations between the two countries. The trade rules used by the two countries differ from other similar agreements because it includes free trade, which means that the products exchanged in the trade zone area are exempt from taxes.
Border trade was first initiated because people living in or near those areas did not have access to goods produced and sold in markets closer to more populated areas. In addition, people in these areas had no way of getting their goods and products to the cities and did not have local markets either.
However the government thinks otherwise saying that the request would affect regular trade.

Put up or shut up! Meles tells Esayas
Government to sell 1.5 mln quintals of wheat to stabilize market

By Eskinder Michael

Prime Minister Meles Zenawi was firm when he told parliament that Ethiopia’s strategy was to make Eritrean President Esayas Afeworki to either fight out in the open or shut up for good.
Upon delivering the government’s six month report, PM Meles said that Ethiopia’s enemies had their core placed in Asmara (capital of Eritrea) and that the whole network went as far as Mogadishu (Somalia).
The PM stated that Eritrea has been at the forefront of organizing terrorist activities against Ethiopia, collaborating with other terrorists by giving safe haven. “The Eritrean government is trying to destabilize Ethiopia and it is trying to do that by first sending other parties to do the job for it. We have a strategy where we want to get rid of all those helping the Eritrean government and finally reach a point where we want to make Eritrea fight or stop meddling for good. But we still believe that dialogue is the best way to solve this and we want to pursue that road,” he said.
With suggestions from opposition members that Ethiopian troops should leave Somalia immediately, the PM was stern in his response.
“We can’t just sit aside and watch while Somalia burns. If we let Somalia burn, then we will end up being scorched as well. We want our troops to leave Somalia, but not at the expense of the country falling into turmoil,”
Bulcha Demeksa, Chairman of the OFDM, asked the PM why Ethiopia was so silent quiet about trying to return the kidnapped Ethiopians from Eritrea. “Why are we quiet about the kidnapped people? Are we just going to let him ( Isayas Afeworki) have them?” he asked, to a round of chuckles.
Meles who seems to believe that Bulcha’s statements come from sincerity and a sense for making peace said, “I understand why the Honorable Ato Bulcha asked this. It is because as an elder, he is trying to work this out in a peaceful manner and I understand and respect that. But what we should also understand is that the people who kidnapped the Ethiopians are not children and they do not want to comply to the peaceful ways we are trying to follow. They understand fully well the consequences of their actions and they should be responsible for these actions,” he said.
Meles added that Ethiopia was doing everything in its power for their safe return, but that diplomatic pressure from the international community was necessary.
The PM, who presented a generalized report on what had happened in Somalia and Ethiopia’s strained relationship with Eritrea, further said that the Eritrean government will understand that its destructive ways are not successful and that we are ever alert that it doesn’t succeed in its terrorist activities.
“We have found this to be the best solution and we will stick to it,” he said.
Regarding the sharp rise in the price of food items, Meles said that the government has finally decided to intervene in the matter.
“The government has acquired 1,500,000 quintals of maize and plans to distribute it in the market gradually every month at a very reasonable price. We can’t just dump the grain on the market. We will release it carefully so that prices will stabilize. If the price is stabilized, then we will stop our international and if not, then we will have to go on doing it,” he said.
Lidetu Ayalew, Chairman of EDUP-Medhin, said that the rising rate of inflation should be of concern for the government and that civil servants should get salary increments so that they could deal with the price hikes. The PM’s report was totally against the suggestion.
“If we decide to make salary increments, then we will be encouraging inflation. Before we decide to take other steps, we have to make sure that we have stabilized the problem,” he said.
In his report, the PM also said that though plans were to keep inflation under 10 % this year, the first six months had shown an inflation rate of 13.6%.
Meles said that predictions show Ethiopia will record a 10.1% economic growth this season, though the IMF believes that the economic growth by the end of this year would be 9.5%. “We believe that economic growth will be 10.1% and the IMF says it will be 9.5%. Though the numbers are not that far off, we believe that our parameters are different and thus are the correct ones,” he said.
The report also said that a 13.6% inflation rate in such vibrant economic growth doesn’t mean that there is macroeconomic instability. Agricultural growth has been registered at 10.9% growth this year. Last year, the manufacturing industry recorded an 8.1% economic growth, and this year, it has recorded 12.5%, showing that the manufacturing sector recorded a larger economic growth than the agricultural sector for the first time in Ethiopian history.
One thing that the PM’s report tried to show is that logic has it if a country has economic growth, then poverty should be reduced by the same amount. But studies have showed in Ethiopia that for every percent of economic growth Ethiopia records, the poverty head count rate decreases by 1-1.5%.
“This shows that our economic growth is more than fair and is growing in a way that makes everyone benefit from it,” he said.

Ethiopian Helicopter shot down
Somali ambassador denies

By our staff reporter

An Ethiopian helicopter has been shot down in Mogadishu, as fighting continued for a second day in the streets of the Somali capital.
One Mogadishu resident was reported on Friday as saying the helicopter was still burning after it went down in a residential area near the airport.
However, the Somali ambassador here in Ethiopia said on Friday March 30, that the Helicopter was not confirmed to be shot down. He said that the crew of the helicopter land safely and added that it would be a technical problem.
According to foreign media reports, gunfire has also been reported near the presidential palace.
"The helicopter looked like a ball of smoke and fire before crashing," said Ruqiya Shafi Muhyadin, another resident who saw the helicopter roll over in the sky before crashing.
The helicopter crash comes after Ethiopian troops supporting the interim Somali government launched air attacks on armed groups for the first time since the start of the year.
Helicopter attacks
One resident, Qoje Omar Gesey, said of Thursday's aerial assault: "Two helicopters flew over us. One was making a surveillance and the other one was dropping several bombs."
He said the bombs fell near a former market in the northern part of the capital.
Earlier on Friday morning, a mortar shell struck a residential area in the south of Mogadishu, the capital, residents said.
Faisal Jamah, a resident who witnessed the attack, said: "There are a lot of wounded, but there is no way to take them to the hospitals due to the fighting on the roads."
Ban Ki-Moon, the UN secretary-general, has expressed concern over the use of helicopters to attack positions inside the city.
Ban is "particularly concerned about the use of air strikes and the introduction of tanks and heavy artillery into densely populated parts of the city, further increasing the security threat to large numbers of civilians," Farhan Haq, a UN associate spokesman, said in New York.
Ban called for an immediate halt to the fighting.
"The secretary general emphasises once again that sustainable peace in Somalia can only be attained through an inclusive dialogue leading to a political solution and national reconciliation," Haq said.
Dozens of people were killed on Thursday, at least 11 of them civilians, and many more were wounded.
Seven Ethiopian soldiers were said to have been killed, with witnesses in the southern district of Shirkole reporting the bodies of Ethiopian troops were dragged through the streets.
Loudspeakers transmitted calls for residents to come out and fight the Ethiopian troops.
The scenes echoed violence last week, when crowds burned the bodies of two dead Somali soldiers.
The fighting on Thursday brought an end to a ceasefire agreement in place since the weekend.
But Mohamed Mohamud Husein, a spokesman for the Somali president, said the fighting marked the beginning of a three-day push to restore order in Mogadishu, as Ethiopian troops, who helped the Somali government oust Islamic Courts fighters last year, withdraw from the capital.
In Ethiopia, Meles Zenawi, Ethiopia's prime minister, said that more than two-thirds of his forces had returned home, but gave no figures.
In a speech to his country's parliament, he said "extremists" in Somalia were no longer a "clear and present danger" to Ethiopia.

Tour operator launches campaign to free abducted Ethiopians

By Andualem Sisay

Origins Ethiopia Travel and Tour, the travel agency, which took the now abducted eight Ethiopians and five Europeans to Afar region a month ago, has launched campaign and began collecting signatures to urge the international community to work for the release of the eight Ethiopians who were been forgotten by the international community after the release of the five Europeans.
On its press briefing the travel agency called upon everyone to give attention to the remaining eight Ethiopians and support efforts to set them free. The tour operation also urged the international media to continue reporting about the issue as they did before while five Europeans were abducted with the eight Ethiopians.
According to Samson Teshome of Origins Ethiopia Travel and Tour, the purpose of
forming the committee is to urge the international community, such as the AU, EU, International Red Cross Society and the like to work towards the release of the Ethiopian abductees forgotten by most after the release of the five Europeans.
“We are not pointing to anyone, but it is a fact that most international media has kept quite after the release of the five Europeans,” Samson said.
Responding to the question of how much the tourist movement is affected after the case of abduction in the Afar area (near the Ethio-Eritrean border): “There are still people who are booking to go to Afar as such things do not happen all the time. Besides, the government is telling us that there is no security threat in the area. The safe return of a filming group after 19 days also indicates the fact that there are no such problems any more in the area.”

NMiC to pay 1.5 bln br for Abijata Soda Ash

By our staff reporter

The National Mining Corporation (NMiC) signed an agreement to develop the Abijata Soda Ash with the Privatization and Public Enterprises Supervising Agency (PPESA), on March 27, 2007.
The project would in phases revert to NMiC after it pays 1.5 billion birr for 97% of the shares. PPESA would keep the remaining 3%.
In the first phase, NMiC would have a share of 54% and the rest would be owned by PPESA.
According to a press release from the NMiC, the main objective of the production will be exporting to the Middle East, Asia, Africa and Europe. It is expected to earn an annual turnover of 720 million birr of hard currency by the end of phase three.
The National Mining Corporation Plc (NMiC) enters into new engagements as its 15th anniversary and the Ethiopian Millennium co-incide.
The corporation has been engaged in exploration and development of gold, base metals and precious stones.
So far, the cooperation has introduced Sky Blue and Boka Multicolor Marble. Blue Marble is a unique colored stone found in Boka and which is named as the stone of the millennium. The colored and dimension stone is only found in Ethiopia. Boka Multicolor Marble also, discovered in Boka, is one of the world’s best white marble with the lowest absorption rate. The Marble Institute of America has selected the stone as Stone of the Year 2002 and currently NMiC is exporting it to Taiwan, China and Italy.
In addition to this exploration, the corporation has been gathering information and exploitation activity in Oromia region for the production of gold and associated minerals. The reserve is expect to reach100 tons.
NMiC’s Werri gold and base metals exploration project has also interested Chinese and Japanese investors for joint development.

EC to splash millions for proposals

By Eskinder Michael

As part of its annual program, the European Commission Civil Society Fund (CSF), in Ethiopia, is ready to distribute over half a million Euros for capacity building purposes to non-governmental organizations.
The EC has set aside 685,000 Euros for the 2007 first round of support projects for proposals presented by non-governmental bodies and individuals.
Applicants of the business proposals will have to visit the official EC Fund website – www.deleth.eee.eu.int/CSF%20web/index.htm - and fill out the proposal application forms and download instructions on how to best present their proposals.
This scheme, drafted by the EC, is implemented in cooperation with the Ethiopian government and aims at helping businesses (NGOs or individuals) achieve their goals.
The EC Civil Society Fund is a flagship program of the European Commission in cooperation with the Government of the Federal Democratic Republic of Ethiopia to strengthen the civil society sector in Ethiopia. The total value of the fund is €10 million and covers the years 2006 - 2010.
The Fund will finance Civil Society Organization projects by grants. Projects will be selected through calls for proposals to ensure a competitive and transparent process. The main bulk of the CSF will be distributed through large Calls for Proposals (between 100,000 up to 250,00 Euros per grant, for a total value of 2.4 million Euros).
A key objective of the Fund is to promote better interaction between Civil Society Organizations and other stakeholders and intended to benefit Ethiopian civil society organizations. The first target groups are Non State Actors in all sectors aiming to improve their advocacy skills and ability to dialogue with government, stakeholders, and their constituencies. The second, more specific target group are Non State Actors working in the areas of conflict prevention, governance, democratization, human rights, rule of law and women’s empowerment.
Applying Civil Society Organizations should ensure that their projects contribute to the purpose of the program through the inclusion of, for example, partnerships, facilitation of dialogue, increased public participation, strengthened capacity, etc., as an integral part of their project design.
A detailed explanation on how to fill application forms and present proposals was held at the CRDA premises on Thursday March 29, 2007. A similar program will be held in capital cities of the Afar and Somali regions on April 3 and 4, 2007.

MoARD prioritizes coffee
Plans to increase annual coffee production to 314,000 tons

By Eskinder Michael

The Ministry of Agriculture and Rural Development (MoARD) has designed a scheme that would enable coffee farmers increase both the quality and quantity of their products.
With the ministry planning to help farmers increase their production of washed coffee to 60,000 tons, and unwashed coffee to 171,200 tons, it has focused on 23 woredas in the Oromia and the Southern Nations Nationalities and People’s Regions (SNNPR). The ministry plans to help coffee farmers produce coffee at full capacity, by upgrading the factories, adding more drying beds and strengthen financial capacity.
Forecasts show that by the end of this year, the amount of coffee production would reach 314,000 tons as compared to the current production rate of 231,200 tons per annum. If this year’s production target is met, then it would exceed last year’s production amount of 308,000 tons by a clear 6000 tons, a tremendous achievement.
As put in the ministry’s plans for the first six months of this season, it plans to build the capacity of farmers so that they could be involved in rehabilitating about 35,4000 hectares of spoiled coffee farms.
The ministry has prepared a manual that would help in the training of trainers for 60 people from all regions, but the training wasn’t conducted on time because the money from the European Union’s Coffee Plantation Project Budget wasn’t released on time. The ministry expects to conduct the training in the first half of the remaining six months of this fiscal year.
The ministry is also preparing a strategy on how to acquire 90 million seedlings of coffee for the coffee planting ceremony to be held by the coming millennium. This plan was designed to tackle the problem of coffee seedling shortage in Ethiopia, and as such, the planting will be held in two of the biggest coffee producing regions in Ethiopia.
The ministry also plans to separately see government owned and private coffee plantations and assess their problems, so that it could prepare solution and present them at a national workshop to be held.
Coffee exports reached 72.4 thousand tons in the first half of this fiscal year, showing a 72.4% increase over the same period last year. Coffee brought in about 67.1% of the foreign exchange in the first half of this year. Ethiopia’s coffee exports had earned the country 334 million birr in the past fiscal year.
The money was earned from the export of 160,000 tones of coffee to more than 40 countries worldwide with Germany, Japan, Saudi Arabia, Belgium, and the USA being the largest importers. These countries comprised 85 % of the total coffee exported.

JICA introduces Oromia partnership projects

By Andualem Sisay

Last week from March 25 to 27, 2006 both private and state media journalists visited development activities undertaken by Japan International Cooperation Agency (JICA), and Ethiopian stakeholders: Modjo, Adama, Arsi and Melkasa in Oromia region.
Lume-Adama Farmers Cooperative Union’s agro processing center in Modjo, funded by 793,000 birr was the first site visited on Sunday afternoon town. The Ambassador of Japan to Ethiopia Mr. Kinichi Komano and other invited government officials along with the journalists are welcomed by hundreds of the union members and inhabitants of the town.
The overall aim of the project is to add value to the agricultural products of the area through collective marketing which is believed to improve the bargaining power of member farmers. It includes cleaning, packing of vegetables and processing agricultural products such as wheat, teff, etc.
Lume-Adama Farmers Cooperative Union is formed ten years ago with 150, 000 birr capital. Though the union supplied more than one mln quintals of fertilizers, marketed more than 41,000 quintals of grain from its members and began exporting haricot beans, Haile Gebre, Director of Federal Cooperatives Agency, does not seem all that much satisfaied with the union’s performance.
“When we first formed this cooperative ten years ago our plan was to have 200 tractors and provide 75 per cent of the product through this union. But we are still dancing on seven tractors and are only able to supply eight percent of the market demand,” he says. “It is not a lack of money that we haven’t accomplished as we planned since we have provided a cooperative bank . It is the lack of our commitment as intellectuals to change the lives of our families that result in such performance.”
He also mentioned structural problems that frequently allow professionals to go switch from one position or profession to another.
After being traditionally given an Oromo name, Dagaga, literally meaning ‘ever blooming’, by the elders of the society: “It is a great pleasure for me to work with you not only as Ambassador of Japan to Ethiopia but also as your son, Dagaga, said the Ambassador of Japan to Ethiopia.
Volunteer professional assistance at Nazareth Vocational School, strengthening technology development, verification, transfer and adoption through farmers research groups in collaboration with Ethiopian Institute of Agricultural Research and irrigation farming projects in various districts of Arsi Zone are also among the major areas that the Japanese government is working on.
In a related development with regard to irrigation, the Oromia Regional Government is undertaking one of the largest ever irrigation project covering 18,000 hectares in Fentalle Wereda,East Shoa Zone.
The Fentalle Irrigation Project, which has been under implementation since last year, will costs 326 mln birr and will be finalized in four years, according to Yohanes Geleta, Oromia Irrigation Development Authority, Design Engineer.

Bazaar gives attention to micro and small enterprises

By Andualem Sisay

Ethio-Millennium Trade Fair and Shopping Bazaar opened on Thursday, March 29, 2007, at the exhibition center, giving emphasis on micro and small enterprises.
“As we can see from the experience of many countries, development is not expected unless we are able to transform micro and small enterprises to middle and higher scale industries,” says Wudneh Mulugeta, General Manger of Yoda Promotions Service. “That is why our promotion service in collaboration with the Federal Cooperatives Agency and Addis Ababa City MSE development office has dedicated one hall in the exhibition center for 65 emerging micro and small enterprises.”
Small scale value added agricultural food processing, garments, textiles and furniture are among the major products exhibited by micro and small enterprises. Balance scale, which Ethiopia has been importing for around 3,000 birr, was also introduced locally made for 1,200 birr with the same quality as that of imports one.
The exhibition was officially opened by the Deputy Mayor of Addis Ababa City caretaker Administration, Sherif Kero. It is recalled that the Ethio-millennium Christmas Trade Fair focus area was Innovators and Entrepreneurs.

IGAD parliament in the works

By Eskinder Michael

The Intergovernmental Authority on Development (IGAD) has taken the initiative to form an IGAD Parliamentary Union. On May 11, 2006, IGAD parliament speakers met and endorsed the IGAD Parliamentary Union.
The IGAD Parliamentary Unit will be composed of 28 Members of Parliament, with four members per country to be nominated by the national speakers. The latter will probably form the supreme body of the assembly, whose precise functions and competences are not yet known.
Ethiopia, Djibouti, Eritrea, Sudan, Somalia, Kenya and Uganda are the IGAD nations and the formation of the parliament will help the countries have broader avenues of discussing problems and intraregional trade talks.
Primary goal is strengthening inter-parliamentary cooperation, not least to improve common parliamentary practice. The institution will not have legislative quality, yet, it may foster the founding and structuring of a regional legal community in the long run.
Though Addis Ababa was chosen as the preliminary seat of the assembly, the final decision is a sensitive issue, since the seat of the Union is likely to become the home of the future IGAD Parliament. Ethiopia shows particular interest to host this parliament because it is also competing for the seat of the African Union Parliament.
“We are happy with the steps taken to establish an IGAD parliament as an initiative and efforts exerted by the Ethiopian parliament. We hope these efforts will continue to hold the institutional sitting if IGAD parliament. There is no doubt that the East African Region to which well belong is in need of efforts integration to settle conflicts and build ties for cooperation between the states of the region,” H.E Ahmed Ibrahim El Tahir, Speaker of the Sudanese National Assembly said during his visit here.
IGAD was formed in 1986 with a very narrow
mandate around the issues of drought and desertification. Since then, and especially in the 1990s, IGAD has become a vehicle for regional security and political dialogue.
The founding members of IGAD decided in the mid-1990s to revitalize the organization into a fully-fledged regional political, economic, development, trade and security entity similar to SADC and ECOWAS. It was envisaged that the new IGAD would form the northern sector of COMESA with SADC representing the southern sector.
One of the principal motivations for the revitalization of IGAD was the existence of many organizational and structural problems that made the implementation of its goals and principles ineffective. The IGADD Heads of State and Government met on 18 April 1995 at an Extraordinary Summit in Addis Ababa and resolved to revitalize the Authority and expand its areas of regional co-operation. On 21 March 1996, the Heads of State and Government at the Second Extraordinary Summit in Nairobi approved and adopted an Agreement Establishing the Intergovernmental Authority on Development (IGAD). In April 1996 on the recommendation of the Summit of the Heads of State and Government, the IGAD Council of Ministers identified three priority areas of co-operation:
Conflict Prevention, Management and Resolution and Humanitarian Affairs;
Infrastructure Development (Transport and Communications);
Food Security and Environment Protection.
IGAD aims to expand the areas of regional co-operation, increase the members' dependency on one another and promote policies of peace and stability in the region in order to attain food security, sustainable environmental management and sustainable development.
IGAD has an Assembly of Heads of State and Government, a Council of Ministers, a Committee of Ambassadors and a Secretariat, with the parliament looking to become the fifth compartment of the IGAD structure.

Paying duty on ‘duty free cars’

By Eskinder Michael

Owners of cars imported into Ethiopia under duty free privileges have started paying import duties.
Following the Ministry of Revenue (MoR)’s, lifting of a privilege which had allowed Ethiopians returning home after serving in foreign diplomatic missions, overseas governmental offices, the Ethiopian Shipping Lines, and continental and international organizations to import duty-free vehicles.
It was stated that owners of cars imported free of duty had to pay at least 25% of the original duty as a format of down payment with the remainder to be paid over two years.
About 5000 individual cars have already started paying their dues to the government, with still as many others expected to come forward and settle import duties.
However, if anyone participating in continental and international organizations either privately representing the country, or students returning from abroad wins prizes other than cars, they can import the items duty-free. But if the prize won is a vehicle, winners can import just that car duty-free.
Though the MoR lifted the privilege, it allows Ethiopian returnees and those who served in diplomatic missions, overseas governmental offices, the Ethiopian Shipping Lines as well as continental and international organizations for more than three years to import a personal car directly without going through a car dealership, by paying the necessary duties.
The MoR had launched random searches on the streets of Addis Ababa in a bid to seize what they claim are vehicles transferred to third parties without duty paid to the government.
The Ministry suspects that vehicles were imported with forged documents, avoiding duties, and were sold to third parties in violation of the government’s goodwill directive issued in 2001.
The MoR claims that after the new directive was issued, over 10,000 vehicles were imported, particularly from the Middle East, losing the government one billion birr in potential duty payments.
Though it had first threatened to seize cars from the streets if the due taxes aren’t paid, the government later on devised a way that would benefit both itself and car owners – the installment payment method.
Many of the cars imported into Ethiopia illegally under the auspices of duty free are seen employed in the rental business, mainly for weddings, tours and personal use, also a business where established companies do business with duty paid cars.

Ethiopia rank 121st from 122 in IT

By Groum Abate

The networked readiness index report, which measures the range of factors that affect a country's ability to harness information technologies for economic competitiveness and development, put Ethiopia at the bottom of the 122 countries the report covered only surpassing Bangladesh.
The report covered 122 countries, with Chad, Burundi, Angola, Ethiopia and Bangladesh at the bottom.
European countries and Singapore have surpassed the United States in their ability to exploit information and communication technology, according to a new survey.
The United States, which topped the World Economic Forum's "networked readiness index" in 2006, slipped to seventh. The study, out Wednesday, largely blamed increased political and corporate interference in the judicial system.
But Thierry Geiger, one of the Forum's economists responsible for the 361-page report, said the U.S. market environment remains the best in the world in terms of how easy it is to set up a business, get loans and have access to market capital.
Nordic countries -- traditionally strong in all surveys conducted by the Geneva-based Forum -- dominated the top of the rankings. Denmark edged Sweden for the top spot, while Finland was behind in fourth.
Singapore, which topped the poll in 2005, was the top Asian nation in third. Rounding out the top 10 were Switzerland, fifth; Netherlands, sixth; Iceland, eighth; Britain, ninth; and Norway, 10th.

Ethiopia, Sudan sign Memorandum of Understanding

By Andualem Sisay

On Thursday, the Speaker of the Sudanese Parliament, Dr. Ahmed Ibrahim Al Tahir and his Counter part of Ethiopia Teshome Toga, signed a Memorandum of Understanding to strengthen political, social, diplomatic, security and economic sectors such as trade, development of infrastructure among other.
During his visit to Ethiopia from March 26 to 30, 2007, the Sudanese Speaker of parliament held discussions with Prime Minister Meles Zenawi and President Girma Wolde Giorgis on bilateral relations and regional and international issues.
“Generally, this visit is very successful and we hope that this good atmosphere between Ethiopia and Sudan at all levels will continue,” said Dr. Ahmed Ibrahim Al Tahir, at the press briefing following the signing ceremony.
“We met with of the Ethio-Sudanese friendship committee members of Dr. Ahmed Ibrahim Al Tahir delegation. We also held discussion regarding relationship between Ethiopia and Sudan and how the two parliaments can be instrument by complimenting and supporting the relationship that is promoted by the executive body of our respective governments,” said Teshome Toga, Member of the Ethiopian Parliament and Speaker of the House of Peoples Representative.

Ethiopia, Slovak agree on standard trade relations

By our staff reporter

The Quality and Standards Authority of Ethiopia (QSAE) and State office of Standards, Metrology and Testing of the Slovak Republic, said the two countries have agreed to standardize their trade and investment ties.
QSAE Director General, Mesai Girma, said at a press conference held on Wednesday March 28, the two countries agreed to use uniform standards in their relations in trade and investment sectors.
The agreement is providing for using uniform standards for products Ethiopia and Slovakia import from each other, he said and noted that Slovak investors are currently engaged in the rubber manufacturing sector in Ethiopia.
Mesai further said that the authority has reached similar agreements with standard authorities of other countries.
President of Slovak State office of Standards, Metrology and Testing, Arpad Gonda, said the visit by the Slovak delegation to Ethiopia is a unique opportunity to strengthen the relations between the two countries.
“Ethiopia and Slovakia are proud of their dynamic partnership and there are many examples illustrating political, economic and cultural links between the two peoples," he added.
Head of the Civil Service with the organization, Zsuzsanna Ciganova said the delegation has learned that Ethiopia is implementing a free economic policy that is contributing to the country’s economic development.
The delegation during the visit observed massive construction works in the country, due to the favorable investment policy put in place by the Ethiopian government, she added.

ITEC day celebrated
Ethiopia-India Graduates Forum launched

By our staff reporter

The Embassy of India celebrated the 42nd anniversary of the Indian Technical and Economic Cooperation Programme, popularly known as ITEC, on 26th March 2007.
Berhanu Adello, Head of Office of the Prime Minister and Minister of Cabinet Affairs graced the occasion as the Chief Guest. Those present on the occasion included Zenebu Tadesse, State Minister of Labour and Social Welfare, senior government officers, ITEC alumni, representatives from Chambers of Commerce and business organizations, members of various Indian associations, Indian expatriates and media personnel. The occasion was also used to launch the Ethiopia-India Graduates Forum. Many Ethiopians who completed higher studies in India were present.
In his opening remarks, H.E. Mr. Gurjit Singh, Ambassador of India, outlined the highlights of the ITEC programme and its important role in capacity building in Ethiopia and other countries. The programme exemplifies the South-South Cooperation and India's desire to share its developmental experience.
The Indian government spends about US$11.4 million annually on ITEC activities. Since the launching of the programme, India has provided over US$2 billion worth of technical assistance to developing countries. Besides training courses, the Ambassador explained the programme provided for deputation of Indian experts to foreign countries for specific projects, feasibility studies, etc. ITEC programme was started in Ethiopia in 1969 and has been useful for human resource development and in capacity building of more than 400 Ethiopian nominees who have availed training.
Delivering the Keynote Address, Berhanu Adello complimented India for sharing its rich and varied developmental experience of nearly six decades with other developing countries through ITEC. He described the programme as an important milestone in the Ethio-India relations. Recalling that he had graduated from the Aligarh Muslim University, he referred to Ethiopia's engagement with India in the educational sector, which went back to several decades when there were Indian teachers forming the backbone of the Ethiopian school system.
India is now one of the preferred destinations for higher studies as it provided quality education at a fraction of cost in developed world in a familiar social and cultural environment. He encouraged the ITEC alumni to continue their associations with the training institutions in India so that they could obtain solutions to unforeseeable problems, which may crop up in a changed scenario while implementing projects in own countries. He appreciated the initiative to launch the Ethiopia-India Graduates Forum to bring together hundreds of Ethiopian scholars who had studied in India at different times. He hoped that the Forum would serve as a useful platform in the forthcoming Millennium celebrations.
Teguest Yilma, Deputy Editor in Chief, of the Capital newspaper, who had gone to India for higher studies, spoke of her experience of those days. Teguest lauded the Indian education system which resulted in many Ethiopian students going there for higher studies in areas like engineering, business management, IT, accounts and computing. She mentioned that according to the figures from the Ministry of Education, currently, more than 3000 Ethiopian students were studying in India on self-financed basis.
Many Ethiopians who studied in India are now occupying positions of responsibility. This included ministers, members of Parliament, senior diplomats, government officers and executives, and prominent business persons.
The speeches were followed by a short film entitled, 'Barefoot Solar Engineers of Ethiopia'. This is a unique story of training people in remote villages of four regions of Ethiopia at the campus of the Barefoot College in Tilonia near Jaipur (India). These villages do not have electricity and easy access to water. The villagers had no formal technical education but after training for six months, they returned to their villages and installed equipment for the solar electrification of every household in their villages. They were also trained for repair and maintenance of the equipment and in techniques of rooftop rain-water harvesting.

New beer factory brewing

Massive malpractice among importers

Nigeria invites NBE to invest in $2 bln African Finance Corporation

Drug companies shut down

VAT payers up 700% Contraband is threatening economy and security

Businesses complain over border trade zones

Put up or shut up! Meles tells Esayas Government to sell 1.5 mln quintals of wheat to stabilize market

Ethiopian Helicopter shot down Somali ambassador denies

Tour operator launches campaign to free abducted Ethiopians

NMiC to pay 1.5 bln br for Abijata Soda Ash

EC to splash millions for proposals

MoARD prioritizes coffee Plans to increase annual coffee production to 314,000 tons

JICA introduces Oromia partnership projects

Bazaar gives attention to micro and small enterprises

IGAD parliament in the works

Paying duty on ‘duty free cars’

Ethiopia rank 121st from 122 in IT

Ethiopia, Sudan sign Memorandum of Understanding

Ethiopia, Slovak agree on standard trade relations

ITEC day celebrated Ethiopia-India Graduates Forum launched

New beer factory brewing

Massive malpractice among importers

Nigeria invites NBE to invest in $2 bln African Finance Corporation

Drug companies shut down

VAT payers up 700% Contraband is threatening economy and security

Businesses complain over border trade zones

Put up or shut up! Meles tells Esayas Government to sell 1.5 mln quintals of wheat to stabilize market

Ethiopian Helicopter shot down Somali ambassador denies

Tour operator launches campaign to free abducted Ethiopians

NMiC to pay 1.5 bln br for Abijata Soda Ash

EC to splash millions for proposals

MoARD prioritizes coffee Plans to increase annual coffee production to 314,000 tons

JICA introduces Oromia partnership projects

Bazaar gives attention to micro and small enterprises

IGAD parliament in the works

Paying duty on ‘duty free cars’

Ethiopia rank 121st from 122 in IT

Ethiopia, Sudan sign Memorandum of Understanding

Ethiopia, Slovak agree on standard trade relations

ITEC day celebrated Ethiopia-India Graduates Forum launched

VAT payers up 700%
Contraband is threatening economy and security

Put up or shut up! Meles tells Esayas
Government to sell 1.5 mln quintals of wheat to stabilize market

Ethiopian Helicopter shot down
Somali ambassador denies

MoARD prioritizes coffee
Plans to increase annual coffee production to 314,000 tons

ITEC day celebrated
Ethiopia-India Graduates Forum launched

VAT payers up 700%
Contraband is threatening economy and security

Put up or shut up! Meles tells Esayas
Government to sell 1.5 mln quintals of wheat to stabilize market

Ethiopian Helicopter shot down
Somali ambassador denies

MoARD prioritizes coffee
Plans to increase annual coffee production to 314,000 tons

ITEC day celebrated
Ethiopia-India Graduates Forum launched