Capital

FDI reaches 7 per cent in Ethiopian GDP

By Andualem Sisay

CBE capital to increase 150%
Excess liquidity reaches 16.9 billion

By Eskinder Michael

Ethiopia’s mobile density lowest, ETC among largest monopolies

By Groum Abate

Employment Agencies Association refutes allegations

By our staff reporter

Finance Ministers focus on MDGs

By Andualem Sisay

Court acquit 6 in CUD trial

By our staff reporter

Jimma – Mizan road gets $65 mln

By Eskinder Michael

Death toll rises to 17 in Gigel Gibe accident

By Groum Abate

EIB provides 16.5 mln Euros for water

By Eskinder Michael

Dubai Customs (DC) World inaugurates border post
70% increase in Djibouti’s customs revenues in 2 months

By our staff reporter

An Ethiopian doctor has 37,000 patients

By our staff reporter

ECBP to introduce internship system

By Andualem Sisay

UNICEF launches Keep Water Safe 2007 movement

By Andualem Sisay

MoARD spices it up

By Eskinder Michael

Pacemaker: You can do it here

By Groum Abate

Ethio-Djibouti transport bill passes

By Eskinder Michael

Commercial sex work vs HIV/AIDS

By Tsion Aklilu

Shema cloth made easy

By Andualem Sisay

ADF provides over a bln birr for electrification

By Eskinder Michael

Include women as partners, WFPA

‘No woman should die giving life’

FDI reaches 7 per cent in Ethiopian GDP

By Andualem Sisay

Ethiopia is showing improvement in attracting Foreign Direct Investment (FDI) by registering significant increment in the last decade.
According to the 2007 Economic Report on Africa entitled, Accelerating Africa’s Development Through Diversification, which was launched on Wednesday in Addis Ababa, the country’s FDI has increased from 0.3 per cent of GDP in 1994 to 7 in 2004.
Ethiopia, like most low-income countries in Sub Saharan Africa, has relied on traditional exports such as coffee, oilseeds, hides and skin, pulses and other export crops to earn foreign exchange. For instance, the share of traditional items in total exports during the period 1980 to 1990 was close to 95 per cent.
However, this has begun to change in recent years. The share of non-traditional exports, such as flowers, textiles and garments, honey and natural rubbers has begun to play an important role as sources of foreign exchange and employment generation in Ethiopia. In the late 2000, the share of non-traditional exports reached a record level of about 11 per cent, more than double what it was in the 1990s.
From where it was at 8.3 bln USD in 1997, Sub Saharan African countries net inward FDI increased to 17.6 bln USD in 2005. The report advises African countries to put more effective policies in place to attract FDI and increase their share of development finance from this source.
FDI is defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a transitional corporation (TNC).
Direct investment refers to new facilities or the expansion of existing ones In order to qualify as FDI, the investment must afford the parent enterprise control over its foreign affiliate. The UN defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm.
Greenfield investment and mergers and acquisitions (M&A) are the two widely known types of FDI. Greenfield investments are the primary target of a host nation’s promotional efforts because they create new production capacity and jobs, transfer technology and know-how, and can lead to linkages to the global marketplace.
However, it often does this by crowding out local industry; multinationals are able to produce goods at lower cost (because of advanced technology and efficient processes) and uses up resources (labor, intermediate goods, etc).
Another downside of greenfield investment is that profits from production do not feed back into the local economy, but instead, to the multinational's home economy. This is in contrast to local industries whose profits flow back into the domestic economy to promote growth.
Mergers and acquisitions indicates transfers of existing assets from local firms to foreign firms takes place; the primary type of FDI. Cross-border mergers occur when the assets and operation of firms from different countries are combined to establish a new legal entity.
Unlike greenfield investment, acquisitions provide no long term benefits to the local economy-- even in most deals the owners of the local firm are paid in stock from the acquiring firm, meaning that the money from the sale could never reaches the local economy. Nevertheless, mergers and acquisitions are a significant form of FDI and until around 1997, accounted for nearly 90% of the FDI flow into the United States. Mergers are the most common way for multinationals to do FDI.

CBE capital to increase 150%
Excess liquidity reaches 16.9 billion

By Eskinder Michael

The Commercial Bank of Ethiopia (CBE) is set to see its capital more than double as the government plans to inject 2.5 billion birr into the existing 1.5 billion birr. The plan will be effective as soon as the parliament passes the bill.
The National Bank of Ethiopia, based on international banking standards, has devised a law that prohibits banks from loaning over 25% of their capital to customers. The fact that the CBE has such a low amount of capital makes it very uncomfortable for foreign banks to have transactions with it.
With that in mind and with its current 1.5 billion birr capital, the CBE can loan only a maximum of 376 million birr to an individual customer. If the bank’s capital is increased to 4 billion, then the bank can loan up to 1 billion birr to an individual customer.
If the CBE has its capital increased and assumes that the loan to deposit ration is 75%, then the bank’s existing outstanding loans of 9 billion birr would automatically rise to 21 billion. The government is ready to give CBE 2.5 billion birr in a zero coupon bond that is payable in 10 years.
The bank has also stated concern over its ever increasing excess liquidity. The bank has at least 16.9 billion birr recorded on November 29, 2006, showing an average of 39.3% annual increase for the past few years. The excess liquidity in the bank’s reserves show that it has more money than an clients’ daily cash needs. Experts believe that increase in the number of deposits and lack of ability to devise ways of investing the money led to the rise in liquidity.
It is believed that increasing the bank’s capital will help the bank participate more in encouraging investment in the country and also be able to provide the necessary amount of loan to its leading customers. The bank will also be able to make a name for itself in the international arena. The parliament has to approve the release of the 2.5 billion birr bond necessary for the bank’s capital increase.
The CBE was ranked 14th in this year’s top 100 sub-Sahara banks, followed by Abyssinia Bank that secured 78th place.

Ethiopia’s mobile density lowest, ETC among largest monopolies

By Groum Abate

Ethiopia’s mobile penetration rate stands as the lowest in Africa, at 1.4%, with ETC as one of the largest monopolies in the continent.
This was told at a gathering to introduce Nokia Siemens Networks.
The joint venture of Finnish handset maker Nokia and German conglomerate Siemens that started operations on April 1 worldwide.
Nokia and Siemens are contributing their respective carrier networks businesses and corresponding assets into this 50-50 joint venture. Both parties have agreed to increase their respective net asset contributions to the new company, with Siemens to contribute 2.4 billion euros and Nokia to contribute 1.7 billion.
The venture also aims to cut annual costs by 1.5 billion euros, in part through slashing10-15 percent of initial staff of 60,000 during the first four years of business.
With its global scale and size, Nokia Siemens Networks is expected to be in a great position to play an industry leading role by developing innovative, cost-efficient products and services. Nokia Siemens Networks will have one of the world's best research and development teams, who will advance the development of product platforms and services for next-generation fixed and mobile networks.
As communicated previously, the board of Nokia Siemens Network will consist of seven members. Nokia President and CEO, Olli-Pekka Kallasvuo, will chair the board and Siemens CEO, Klaus Kleinfeld, will act as the vice-chair.
Nokia Siemens Networks, which will be the world's second-biggest mobile-networks company and the third-largest in fixed-line infrastructure, had been due to begin at the start of 2007 but was delayed by a corruption investigation at Siemens, according to foreign newspapers.
During the discussion forum, Project Management Unit Manager Tessema Geda with the Ethiopian Information and Communication Technology Development Agency (EICTDA), said that the five-year strategic plan prepared to implement the information and communication technology policy has entered into implementation phase.
The strategic plan also enables to speed up the country’s overall development and build the capacity to execute the information and communication technology policy devised for the first time in the country, he said.
He further added that the plan enables to pave the way for creating a consistent system of human resource development and budget allocation in line with the major targets of the agency.
The plan has created suitable conditions in which the private sector can contribute to the growth of information and communication technology in the country through training and capacity building, marketing and other sectors, he added.
In order to make use of information and communication technology, the agency has started standardizing Ethiopic computer keyboard layout and design for Amharic, Oromiffa, Tigrigna, Afarigna and Somali languages.
An information and communication training program has been put in place and is being implemented in educational institutions at all levels, Tessema noted.
Through the community information and communication technology development program, 20 projects were designed and are being implemented, thereby benefiting the physically handicapped, youth and women.

Employment Agencies Association refutes allegations

By our staff reporter

The Ethiopian Private Employment Agencies Association said that the print and electronics media are creating a misunderstanding among the public about employment agencies.
In an exclusive interview with Capital, Gebremedhin Abraha, president of the association, said that the main objective of their association is to establish with the Ministry of Labor and all other governmental and international organization (IOM, ILO) NGOs and civic organizations a code of conduct and encouraging the private businesses in entering the sector that plays a major role in helping the public to curb the problem of unemployment.
The president further noted that the public and some members of the association need to be more responsible and transparent.
Many people nowadays complain about the abuse and grievances encountered in many Middle Eastern countries saying that the women are treated inhumanely.
At least one Boeing 767 leaves for a Middle Eastern country daily, fully booked by these employment agencies.

Finance Ministers focus on MDGs

By Andualem Sisay

Prime Minister Meles Zenawi, opening the 40th Summit of African Ministers of Finance, that took place from April 2-3, 2007 in Addis Ababa, stressed the need to focus on pro-poor and transformative growth.
“The accelerated and pro-poor growth that we seek to achieve can not be a sustained one so long as the structure of our economies remains what it is today. Only accelerated growth that transforms the structure of our economies away from the production of low value added products can help us achieve the Millennium Development Goals (MDGs), in a sustainable way,” said Meles.
According to recent UN data, African countries average per annum economic growth has reached 5.7 per cent in 2006. The continent was supposed to grow at least by 7 per cent every year to halve poverty by the year 2015 and achieve the eight broad goals agreed upon the Abuja Declaration of 2000. But, so far only a handful of northern African countries are most likely to meet the set goals and halve poverty by then.
That is why MDGs were the major focus area of the summit. “We have a long way to go before we can confidently declare that we are going to make it,” said Meles, who was able to push Ethiopian economic growth between 9-10 per cent per annum in the past three years.
Eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reduce child mortality, improving maternal health, combating HIV/AIDS, malaria and other diseases, ensure environmental sustainability and developing a global partnership for development are the eight MDGs of September 2000 by the UN.
“If Africa continues doing business as in the usual ways, it will never meet MDGs,” says Leonce Ndikumana, ECA, briefing on the Economic Report Africa 2007, launched Wednesday. The report suggests that diversification is the best way for accelerating Africa’s development. It suggests macroeconomic stability and institutional environment are set as critical for diversification, which is believed to rescue the continent from relying only on primary commodities.
According to Abdoulie Janneh, UN Under-Secretary-General and Executive Secretary of Economic Commission for Africa (ECA), the challenges of economic growth relate mainly to the magnitude and sources of growth on the one hand and its distributive effects on the other.
Under the source of growth, he recommends African countries to maintain and scale up the policies that led to recent improvements in growth, emphasizing the role of agriculture in their policies, and must strive to achieve a break-through in the struggle to reform the international trading system so that they can benefit from the dynamic gains of trade.
Income inequality both in terms of the unequal distribution of opportunities as well as the unequal distribution of income has to be addressed under the redistributive effect of growth, according to Janneh.
Scaling up urgently domestic and external financing, aligning poverty reduction strategies with the MDGs and the need for credible and reliable data sets for monitoring and tackling in meeting the MDGs are also part of his recommendations to the participants of summit.
In addition, he also advised a proper management of risks of globalization and giving attention to sustained peace, human security and good governance as preconditions for achieving Africa’s development aspirat

Court acquit 6 in CUD trial

By our staff reporter

The Federal High Court had ordered the suspension of charges filed against Dr. Negede Gobeze, Yared Tibebu, Aregawi Berhe, Dr. Mamo Muche and Dr. Taye Wolde-semayat who were tried in absentia on Thursday.
The Court has also acquitted former member of Teachers Association Kassahun Tafesse who was charged with the first case for the prosecutor had not presented evidence against the accused.
The court passed a verdict 19 defendants including Prof. Mesfin Wolde-mariam charged with dismantling of the national constitution through force under the file of Engineer Hailu Shawl to defend themselves against the first counts of six charges filed against them.
The defendants are members and leaders of the Coalition for Unity and Democracy (CUD).
The Second Criminal Bench of the Court decided that it found that the evidence presented against Pro. Mesfin corroborates the charge filed against him.
The Court also found the evidences filed by the prosecutor corroborate the charge filed against the defendants known by the name of Bedru Adem, Mamushet Amare, Anteneh Mulugeta and Melaku Fantaye.
It has also passed a guilty verdict on Andargachew Tsige, Elias Kifle and Mesfin Aman who were tried in absentia.
It said the Prosecutor can file the charge against the defendants any time for they were found guilty.
The Court adjourned the trial until April 9, 2007.

Jimma – Mizan road gets $65 mln

By Eskinder Michael

The long awaited Jimma-Mizan road will now become a priority as parliament passed an agreement signed between the Ethiopian government and the African Development Fund (ADF), that is worth 65 million USD.
The money will be used to pay for the consultancy, construction of the road and settling compensation claims of people who will be resettled due to the construction of the road.
The 227.18 km road was first envisioned by the government in 2003 when it presented a design for the road to the ADF for funds to upgrade it to a concrete asphalt road from the existing gravel surface.
In 2005, international consultants revised the design of the road as the government believed that the plan should include the construction of a road connecting the towns of Gimbi and Bonga. The project is part of the Road Strategy Development Project (RSDP) II and PASDEP II.
The project is expected to cost a total of 101.53 million units of account, with construction works expected to take 81.67 million units of account. About 2.95 million units of account will be set for account purposes whereas 0.93 million units will be used for paying formers residents of the area. The government has set aside the rest of the money – 15.98 million units – for unforeseen expenses and price hikes.
The 65 million units received from the ADF will cover 86.5% of the amount needed to complete construction of the road, meaning that the Ethiopian government must cover the rest remainder.
The ADF has provided a 10 year grace period for the loan and will expect Ethiopia to start paying its debts starting from the 11th year until the 40th year, all interest free. Just like the other deals with the ADF, Ethiopia is expected to pay a 0.75% service charge per annum.
The House of Peoples’ Representatives, after reviewing the matter, passed the agreement with 378 for and, no objections or abstention.

Death toll rises to 17 in Gigel Gibe accident

By Groum Abate

The death toll in an accident at Gillgel Gibe II construction project rose to 17 after a bus slid in to a 300 meter gorge.
The deceased employees of Salini Costruttori were ten at the time of the accident but now the figure has rise to 17 after seven people died in hospital in Woliso.
Gilgel Gibe II is a continuation of Gilgel Gibe I project, which involved the building of a conventional dam with a 917 million cubic meter lake. The mishap occurred because of a traffic accident, according to an official who further added that road signs should also have been placed in the area for safety precaution.
The plant, to be built under Gilgel Gibe II project, does not require a dam to be constructed. Instead, it will use the water discharged by the Gilgel Gibe I plant, channeled through a 26km tunnel under Fofa mountain, to Omo River Valley where it will harness a 500 meter drop to generate 420 Mega Watts.
Once Gilgel-Gibe II hydropower plant becomes operational by 2008, it will increase the total generating capacity of Ethiopia by 30-40%.
The main contractor for the construction of the power plant is the Italian company, Salini Costruttori.
On November 17th, 2004, the Governments of Italy and Ethiopia signed a new cooperation agreement which included the extension of 220 million euros, in the form of a soft loan, available for the energy sector expansion and specifically to finance the Gilgel Gibe II project. This particular loan of 220 million euros is the biggest development fund released to a single project in the history of Italian Cooperation.
The total cost for the Gilgel Gibe II hydro power plant is 373 million euros. The European Investment Bank will also give Ethiopia a loan of 50 million euros for the project. The rest, 103 million euros, is covered by the Ethiopian Government.
In addition, up to 100 million euros is expected for roads, ancillary works, project consultancies and management, and high voltage electric line connection with the national grid. These expenses are expected to be covered by the Government of Ethiopia and possibly by other international donors.

EIB provides 16.5 mln Euros for water

By Eskinder Michael

The Ethiopian government has signed a loan deal with the European Investment Bank (EIB), worth 16.5 million USD for partially financing small town water and sanitation projects.
The Water Resource Development Fund, under the Ministry of Water Resources is looking to provide funding to 15 medium sized municipalities, through their urban water supply and sewerage service enterprises.
The bank will provide the money in eight different trenches with each having a minimum amount of 2 million Euros, except for the first trench that will have a minimum provision amount of 500,000 Euros.
The project is expected to improve the living conditions of about 500,000 inhabitants in 15 towns in Ethiopia by rehabilitating existing systems and extending the water supply and sanitation infrastructure as well as provide adequate training to Town Water Supply and Sanitation Services (TWSSS).
The project is expected to develop new water sources (wells, deep wells and springs), increase the capacity of pipelines and reservoirs, extend the distribution system to town quarters currently not serviced and provide technical assistance to the TWSSS.
To ensure a broad impact of the project on the population it is intended to set up special facilities to provide affordable mechanism to people willing to connect to the system but can’t afford the connection fee.
The sub-projects will be located in the towns of Maichew and Adigrat in the Tigray Region, Gebre Guracha, Holeta, Fitche, Didollo the Oromia region, of Shoa Robit, Ataye, Kemissie, Injibara, Areti, Mersa, Werreilu in the Amhara Region and the town of Awassa and Bonga in the SNNPR.
The agreement says that the bank shall ensure that funds lent by it are used as rationally as possible in the interests of the EC and accordingly, that the term and conditions of its loan operations shall be consistent with community policy. The project is expected to be completed in 36 months.

Dubai Customs (DC) World inaugurates border post
70% increase in Djibouti’s customs revenues in 2 months

By our staff reporter

Dubai World business unit and customs solution provider Dubai Customs World has announced that its operations in the Republic of Djibouti have been effectively expanded right up to the African nation’s border with Ethiopia.
This follows the recent completion of electronic networks linking the Galafi Customs Post, the busiest checkpoint on the Djibouti-Ethiopia border, to DC World-managed customs administrations at the Ports of Djibouti and Doraleh, the Djibouti International Airport, the cargo village, the railway and post station, and the free zone operated by Jafza International.
With the installation of its trademark “Mirsal World” system for customs clearance and control at all Djibouti customs points, DC World’s operations in the Red Sea African state are an unparalleled success.
Hamad Fadhel Al Mazrooei, CEO of DC World, said “Our success in implementing Mirsal World and professional best practices at the Djibouti Customs Department has contributed to increasing the country’s customs revenues by 70 percent during January and February, as compared to the same period in 2006.
According to the press release from DC World, connecting Galafi on the border with Ethiopia was crucial to bring total control and transparency to Djibouti’s customs revenue stream, the most important contributor to the country’s exchequer. As many as 800 trucks pass through it every day, besides other vehicles.
Abdulla Issa Amiri, Assistant Director General, Djibouti Customs and representative of Dubai World, said, “The area around the Galafi Post has been witnessing tangible economic growth since its renovation recently. Galafi is the main transit point for trucks transporting goods to Ethiopia from Djibouti International Port.
He further said that, “We’ve designed the Galafi Post to accommodate the movement of goods among countries belonging to COMESA (Common Market for Eastern and Southern Africa). DC World has equipped the with advanced computerized customs checking and clearance facilities to enable working round the clock to cope with the heavy flow of traffic.

An Ethiopian doctor has 37,000 patients

By our staff reporter

On World Health Day, the British medical aid agency, Merlin, is highlighting the impact of a global shortage of four million health workers on some of the world's poorest countries.
The agency is listing countries which have the lowest ratios of health workers to patients, such as Ethiopia, where there is only one qualified doctor for every 37,000 people. In the UK there is one doctor for every 434 people.
"Comparing the number of doctors with the total population gives a crude indication of the paucity of health care in some of the world's poorest countries," said Carolyn Miller, Chief Executive of Merlin. "The effect of such ratios means that millions of children die from preventable diseases, women risk death during childbirth, and elderly patients endure debilitating illnesses without treatment."
Ethiopia has a population of 74 million, the third highest in Africa, yet there are only 1,936 practicing doctors. Each year, half a million children there die from diarrhoea and one in six do not survive beyond their fifth birthday.
In Liberia, a country recovering from a devastating civil war, a recent government report confirmed that more than half the population are unable to get help from professionally trained medical staff. A quarter of all children there die before reaching the age of five.
Merlin has been working in Liberia for the past five years, re-establishing hospitals and rural clinics in collaboration with the Ministry of Health. But despite millions of pounds of aid funds put into the health sector there are still only 168 doctors serving a population of 3.5 million. With only one doctor for every 21,000 people, many desperately sick patients never get the opportunity of professional care.
"A vital strategy in combating this statistic is to establish more medical schools in the country. Yet a desperately needed facility to train doctors is struggling to receive funding from international donors," explained Carolyn Miller.

ECBP to introduce internship system

By Andualem Sisay

The Engineering Capacity Building Program (ECBP), launched the first Ethiopian national Career Expo, on Wednesday, April 4, 2007, to introduce a sustainable internship system between universities and industries in Ethiopia.
The main objective of the expo that will be held from June 1-2, 2007 is to match the university graduates with industries and to establish an internship system, according to Ms. Hilou Vogelmann, expert Career Development Internship at ECBP. “Beyond opening doors for internship, the event will also provide a discussion forum for human resource development,” she said.
ECBP will undertake the expo in collaboration with Info Mind Solutions (IMS), and www.Ethiojobs.com , the first online recruitment film in the country. ECBP is undertaking the internship program under its university reform component, which is one of the four major programs. Technical and Vocational Education Training (TVET) , quality and standards and private sector development are the remaining intervention programs of ECBP.
ECBP is a five-year program of the Ethiopian government with a budget of more than 180 mln euros and technically as well as 50 percent funded by the German Government.
Under its university reform program, ECBP since it began operating a year and half ago, has been able to revise the curriculum of Addis Ababa University Technology Faculty. As a result, technology students have started using the new curriculum which gives emphasis to the practical experience of students in addition to theoretical aspects.
By this new curriculum, the first full semester will give the students the opportunity to introduce themselves to all the fields of study in the faculty, and finally decide to study one. In addition, before graduating in a certain technology field, candidates will be sent to a full semester internship program and are expected to write a thesis under the assigned topics.
“Most likely, the topics that will be given to the student for the thesis are aimed to address critical issues and solve certain problems,” says Tenagne Bayeh, university reform coordinator at ECBP.
Following in the footsteps of Addis Ababa University Technology Faculty, Bahir Dar, Mekele and Jimma technology faculties have also finalized revising their curriculum and are scheduled to start implementation in October. The remaining technology faculties in Awassa, Arbaminch and Haromaya universities are also scheduled to join the new curriculum at the end of 2008.

UNICEF launches Keep Water Safe 2007 movement

By Andualem Sisay

UNICEF’s WASH-Ethiopia Movement launched its Keep Water Safe 2007 Movement in a public ceremony on Sunday April 1st, 2007 to raise awareness of the direct link between safe water and reducing life-threatening illnesses.
According to the statement sent to Capital from UNICEF, key WASH partners including federal ministers used the event to re-affirm their commitment to bring safe drinking water to all Ethiopians. Water quality has often been ignored in favor of water quantity in Ethiopia. This is leading to the contamination of water supplies creating a heightened risk of disease outbreaks and undermining efforts to improve public health.
In Ethiopia, one in six children die before their fifth birthday. Diarrhea, a water-borne disease, is attributable to over 22 per cent of these deaths. The WASH Ethiopia ( Water, Sanitation and Hygiene) movement is a broad coalition aiming to promote mass-mobilization. Established in 2004, it encourages social and political commitments to the sector by campaigning on a different WASH-related issue every year.
To launch the Keep Water Safe Movement for 2007, youth-groups, schools and leading figures from WASH Ethiopia’s coalition of NGOs, UN agencies, religious leaders and the government joined together in Shashemene’s football stadium to promote the importance of safe water to the town’s inhabitants and assembled media.
At the ceremony, UNICEF WASH Chief Belinda Abraham commented on the importance of public participation. She said: “Keeping precious water free of biological and chemical contaminants is important.
In order to do this we need mass-mobilization of people, minds, commitment and efforts.
Each one of us in our own way can collectively and individually make a difference.” Ethiopian Minister of Water, Asfaw Dingamo and the State Minister for Health, Dr. Kebede Worku attended the ceremony. Dr Kebede re-emphasized the link between Acute Watery Diarrhea (AWD) and low awareness, low water supply coverage and poor personal hygiene. He called on everyone in the sector to work hard to ensure its eradication.
The WASH Ethiopia Movement showcased new performances that will form part of its future advocacy campaigns, including two new dramas both highlighting the dangers of unsafe drinking water. A circus group also performed acrobatics in Keep Water Safe T-shirts whilst a local reggae artist, representing Shashemene’s Rastafarian culture, performed songs about the importance of safe water. It is recalled that Shashemene is one of the areas AWD was first observed some eight months ago.
Onlookers were invited to a demonstration of the new water-treatment method, PuR. The treatment consists of a groundbreaking new floculant and disinfectant solution within a sachet which transforms dirty, untreated water into a safe drink within
minutes. It costs 2 birr per unit.
UNICEF has pledged 15, 000 USD to assist the movement in its advocacy campaign, media engagements, social mobilization and continuous monitoring and evaluation of Ethiopian water quality throughout 2007.

MoARD spices it up

By Eskinder Michael

As part of the its plants improvement program, the Ministry of Agriculture and Rural Development (MoARD) Embarked on expanding and improving the production and quality of tea and other spices.
Gumero Tea, the biggest tea Plantation farm in the country, has struck a deal with the government to prepare 40,000 tea seedlings in addition to the 54,000 that were grown by the beginning of this fiscal year.
With plans already underway to encourage foreign tea growers to Ethiopia, the government has already selected 35 Woredas, especially in the Oromia, Amhara region and the Southern Nations Nationalities and Peoples region.
Spices have become a new source of income as export reaches new heights. The MoARD has already set aside 49650 hectares of land ready for cultivation. The ministry has also trained several spice farmers on new ways of growing spices.
As well as helping farmers improve on their animal husbandry and fish cultivating programs.
It has already put in place plans to produce, 578,000 tons of meat, 21 million pieces of leather, 23,000 pieces of eggs, 2,648,000 tons of milk, 15,000 tons of fish, 66,280 tons of honey and 3 tons of silk.
It has also focused on training farmers in the Somali and Afar regions on ways of collecting and preserving goat and camel milk, a venture that was seen as successful among the regions’ farmers.
The government of Ethiopia has repeatedly made its stand clear when it came to agriculture by saying that the Agricultural Development Led Industrialization (ADLI) was its policy and it would give priority to the sector as over 80% of the Ethiopian people are in the country side. Exports from all agricultural items had reached 1 billion USD last fiscal year and the government plans to take that figure to as high as 1.5 billion this fiscal year.
The 421 million USD secured from exports in the first six months of this fiscal year exceeds that of last year’s 396.6 million USD by 6.1%.
The export earnings were secured from the sale of coffee, cereals, leather and leather products, fruits and vegetables, and of course the growing export of flowers.

Pacemaker: You can do it here

By Groum Abate

The first pacemaker implantation program, which is a medical treatment that inserts a battery in the heart, has been started here in the country this week.
The implantation program would replace the difficult task of going abroad for treatment.
Sr. Birkenesh Begashaw, a share holder and general manager of International Specialized Cardio- Thoracic Hospital told Capital that the hospital has resumed pacemaker implantion that it used to offer some time ago.
She said that the program was suspended for a couple of months due to lack of expertise, but the problem have now been solved as a foreign expert has started pacemaker implants at the hospital as of this week.
According to the general manger patients would benefit from the new program that would save them money and time. The pacemaker would cost around 50,000 birr here in Ethiopia.
Pacemaker implantation is a minimally invasive surgery. It is performed under local anesthesia, and generally takes less than 45 minutes.
Once a pacemaker is implanted, it is important to program it. Pacemakers today are extremely flexible devices, and can vary their function according to the precise needs of the patient. As noted, pacemaker generators are essentially tiny computers,
and like any computer, before they can be optimally useful, their software needs to be “tweaked” to suit the individual user. Pacemakers can be programmed non-invasively, with a handheld device that communicates with the pacemaker through the skin. The programming can be repeated as often as necessary if the patient’s underlying heart rhythm problem changes.
The International Cardiovascular Medical Center (ICMC), which is the first heart institution in Ethiopia, and established six years ago, has also announced that it has upgraded ICMC's current services at a much spacious facility with a 30-bed capacity, under the name "The International Specialized Cardio- Thoracic Hospital" around Wollo Sefer.
The hospital is also to launch construction of the Cardio- Thoracic Hospital, which is a 50-bed facility equipped with the necessary hi-tech cardiovascular equipment, at a cost of 26 million birr in the near future. The hospital would be constructed around the CMC area on a 3,000-sq.m plot secured from the Addis Ababa City Administration.
According to the management of the hospital, after the construction of the new center is completed, the Cardio Thoracic Hospital will strive to be the best cardiovascular and thoracic referral center in East Africa.

Ethio-Djibouti transport bill passes

By Eskinder Michael

The Ethiopian government’s initiative to sign an agreement with the government of Djibouti on multi modal transport systems, has been approved by the House of People’s Representatives with 289 votes for, 33 against and 56 abstaining.
The agreement was seen as a positive move by several opposition leaders and members.
The House had earlier voted for the Infrastructure Standing Committee to study the matter, following which they suggested to pass the resolution.
The agreement was signed based on the agreement on the utilization of the Port of Djibouti and services to cargo in transit between Ethiopia and Djibouti on April 13, 2006. The new agreement ‘recognizes the need to put in place an expeditious and unhindered traffic of cargo so as to avoid unnecessary delays in the movement of cargo in transit as well as in the port.
The Standing Committee stated that it has held discussions with the concerned people such as Ato Yared Shiferaw, Law and Insurance Department Head with the Ethiopian Shipping Lines, Ato Geremew Ayalew, Foreign Trade Relations Department Head with the Ministry of Trade and Industry and other professionals.
It said that the new agreement would allow importers to receive their goods at the Djibouti Port and get them home all in a single and easy process. It also said that this new deal will allow swift delivery of imported goods, thus reducing the goods staying at the port and being sold at auction.
The two countries had also on November 18, 2006 signed an agreement on preferential investment facilitation and property acquisition, a decision that was received with mixed feelings by the parliament.
Once the draft proclamation is approved by the House of Peoples’ Representatives, citizens of Djibouti would be able to own property in Ethiopia.
According to the agreement, the nationals of both countries may engage in the territory of the other in any investment area formerly reserved for the nationals of the other country. But nationals of both countries can’t involve in banking, insurance, micro credit and savings services, broadcasting, and press services in the other country.
Nationals of both countries, investing in either contracting party’s territory opting to be considered as a foreign investor, shall enjoy all the benefits and privileges of foreign investment granted by the laws of the host country. Income generated from reinvestment shall enjoy the same protection as the investment.

Commercial sex work vs HIV/AIDS

By Tsion Aklilu

Out of 1000-trained prostitutes, 76 have transformed their lives by forming a self-help organization, states an Integrated Service for AIDS and Support Organization (ISAPSO) research. The work was publicized on a forum discussion for media April 4, 2007. The event was prepared by InterNews Local Voice Ethiopia.
According to the presentation, research was conducted around Kirkos sub city where ISAPSO is actively participating. The research about sex workers lives focus area was the microbars (tèla bet), small bars, and street prostitutes.
“Almost all prostitutes are illiterate, so we need to train them by groups with different case studies,” said Ato Adisu Shewamoltot, while explaining the exertion ISAPSO has been making for the last six years. The organization runs a project of technical and financial support for commercial sex workers and organizes them to formulate a self-help organization.
Adisu also added proper use of condom, self-realization, and interdependence among them as some of the successes the organization achieved through training. Sixty percent of the prostitutes under the study have come from the rural areas of the country.
So far, the organization has trained around 1000 commercial sex workers. Members of the cooperatives are trained in various basic skills and leadership training.

Shema cloth made easy

By Andualem Sisay

An entrepreneur has introduced a new loom, which does all the four weaving functions at one stroke.
Mekonen Mulat, a mechanic by profession, has finalized his all-in-one loom after two months of focused research. At the beginning of this week, he introduced his innovative product sample at the Ethio-Millennium Trade Fair and Shopping Bazaar, which opened Thursday, March 29, 2006.
“This new loom has advantages in saving the time and energy that one spends in to make cloth using traditional loom,” says Mekonen, who is owner of M.Y. Workshop and Vocational Center. “Using this new loom, one can accomplish the four functions with just one stroke in three seconds, a task that used to take around 30 seconds using the traditional loom.”
Mekonen has registered his innovation to Ethiopian Intellectuals Property Rights Office this week, although such a process usually takes from six months to two years.
The Addis Ababa City Administration, who sponsored him to display his product at the exhibition, is planning to provide this innovation to the majority of weavers at reasonable prices after improving the product in terms of size, using cost effective raw materials, and the like, according to Mekonen. “I am planning to replace some parts of the loom with plastic and wooden materials, so that we will be able make it available in the market at law prices allowing for labor and material cost only,” he says.
In addition, Mekonen has also previously innovated a plowing machine, which can be pulled by one animal. However, when he went to the Ethiopian Intellectuals Property Right Office for registering the innovation, he found out that there is already a registered patent by another individual.
Ayalew Getachew is another innovator who introduced a locally manufactured 300kg scale which used to be imported. The price of the local scale is 1,700 birr, while the imported variety is sold for 6,200 birr.
Ayalew and his partner’s share company, AB Compatible Technology Center, is also engaged in manufacturing pedal and handle water pumps, brick making machine’s, and shutters for windows and doors, among other products.
Yoda Promotions Service is active trade fair activity in the country. It focuses more on introducing innovative business ideas. During the trade fair organized by this promoter at the beginning of this year, some eight business ideas were able to get financial partners to move their idea into practical reality.

ADF provides over a bln birr for electrification

By Eskinder Michael

The African Development Fund (ADF), has provided 1151.04 million birr in loans for the Ethiopian government’s Rural Electrification Project II, with the latter requesting the loan to finance the foreign currency component and part of the local currency cost of the project.
With the Ethiopian Electric Power Corporation (EEPCo) as the executing body of the project, it plans to extend the national electricity grid to supply electricity to 335 rural towns and villages and improve the national electricity access rate from 17% in 2006 to 20% by 2011. It also plans to increase the power transmission capacity by 25 MW and the number of consumers from 1,100,000 in 2006 to 1.3 million by 2011.
The project comprises of the construction of 1332 KV high voltage lines, construction of 132/33 KV substations, development of Medium and Low Voltage Network, installation of distribution transformers to connect 335 rural towns and villages in different parts of the country. This includes 280 km long lines with 132 KV, 4,200 km long lines with 33 KV and 1,500 km long low voltage lines.
When this project is finalized, a total of 176,815 families in 335 rural towns and villages will have electricity.
The project is going to cost the EEPCo a total of 1508.892 million birr with the ADF providing 1151.04 million. About 72% of the money provided by the ADF will cover the projects foreign exchange costs while the rest will cover local costs. The projects are expected to be finished in 48 months.
The ADF has granted the Ethiopian government a 10 year grace period with the loan repaid in 40 years time. At the 11th year of the loan, Ethiopia will pay 1% of the loan for 10 years. Ethiopia will pay 3% of the total loan for the coming 20 years to finish paying its debt. Ethiopia will also settle a 0.75% annual management fee. If the loan is not approved and in use within 120 days of signing the agreement, then Ethiopia will have to pay an annual fee of 0.50% commitment fee for the amount of money not used.

Include women as partners, WFPA

Reflecting On the impact of the horrendous acid attack on a young female college student and her sister. Monique Rako to malala, Country Representative of the United Nations Population Fund, UNFPA, said, ‘’lets just hope the Kamilat case will mean Ethiopian society will finally awaken to the wide forms of violence that women face daily in this country,’’ in a UNFPA press release.
A UNFPA-sponsored televised debate on the issue is also scheduled to go on air this week, which is expected to have a viewer audience of up to 8 million. The debate will contribute toward efforts of curbing the alarming proliferation of violence against women, an issue which Rakotomalala describes as, ‘There is a great need to convince this society that women actually mean something- that they are not a tradable commodity that by including women as partners in the country’s social makeup, society will become ever more prosperous.’
The Kamila case is perhaps a milestone in the struggle against gender-based violence because it had received extensive media coverage. It is to be called that the 23 year old and her sister were the victims of an acid attack, allegedly by a spurned admirer who had a history of harassment her, including terrorizing her with supposed explosives. It is a sad record on the law enforcement authorities that Kamila’s formal complaint to the police regarding such hounding was not acted upon before the comely college student suffered such disfigurement.
Kamila and her sister are now undergoing reconstructive medical treatment in France, thanks to the generosity of leading public figures including philanthropist tycoon Sheik Mohammed al-Amoudi, athlete Haile Gebre-Selasie and many others who were touched by the plight of the girls.
Although the Ethiopian constitution and other laws affirm the equality of women, the situation on the ground remains as chauvinistic as ever.
Mahder Paulos, Executive Director of the Ethiopian Women Lawyers Association, told the press, “there have been big advances. But there is still a problem enforcing these new laws.’’
Mmahder stressed the urgent need of gender sensitive training for police officers and the necessity of changing society’s perception of women.
“They (the police) would always see the man or the husband as a father who has a right to discipline his wife, like he would a child. It is the culture,” she concluded.
It is hoped that the highly publicized case of the unfortunate sister will overcome the misconceptions held tightly by a patriarchal and exceedingly conservative society.

‘No woman should die giving life’

Today on World Health Day, UNFPA, the United Nations Population Fund, joins the World Health Organization in calling for greater health security and stronger action to promote and protect every individual’s right to health, including reproductive health.
With this year marking the 20th anniversary of the Safe Motherhood Initiative, there is no better time than now to focus on the health security of women and mothers. Protecting the health of mothers goes a long way in protecting the health of their children and families.
Yet, the tragic reality is that one woman dies every minute during pregnancy and childbirth, leaving more than half a million women dead each year and one million children without their mothers’ love and care. And this is just the tip of the iceberg. For every woman who dies, there are 20 to 30 others who survive childbirth but suffer debilitating injuries.
Today, complications from pregnancy and childbirth are the leading cause of death among young women aged 15 to 19 in developing countries. By any measure, this state of affairs is unacceptable and constitutes a public health crisis. The vast majority of these lives could be saved with cost effective interventions that have been proven to work in several countries. In Egypt and Honduras, the maternal mortality ratio was reduced by half in only seven years. In other countries, maternal health has improved significantly. Key to success is government leadership.
World leaders agree on the priority to reduce needless deaths during pregnancy and childbirth as reflected in Millennium Development Goal 5 to improve maternal health. To make greater progress, every woman needs access to a basic package of reproductive health services. It is estimated that ensuring access to voluntary family planning could reduce maternal deaths by 20 to 35 per cent, and child deaths by as much as 20 per cent. Ensuring skilled attendance in delivery, backed up by emergency obstetric care, would reduce maternal deaths by about 75 per cent.
Today on World Health Day, UNFPA calls on governments and their partners to invest in reproductive health as an urgent priority. No woman should die giving life. If we are serious about providing health security to women, we must work together to guarantee universal access to family planning, skilled attendance at birth, emergency obstetric care and services to prevent and treat sexually transmitted infections, including HIV/AIDS. The above message of Thoraya Ahmed Obaid, Executive Director of UNFPA, on the Occasion of World Health Day, 7 April 2007.

FDI reaches 7 per cent in Ethiopian GDP

CBE capital to increase 150% Excess liquidity reaches 16.9 billion

Ethiopia’s mobile density lowest, ETC among largest monopolies

Employment Agencies Association refutes allegations

Finance Ministers focus on MDGs

Court acquit 6 in CUD trial

Jimma – Mizan road gets $65 mln

Death toll rises to 17 in Gigel Gibe accident

EIB provides 16.5 mln Euros for water

Dubai Customs (DC) World inaugurates border post 70% increase in Djibouti’s customs revenues in 2 months

An Ethiopian doctor has 37,000 patients

ECBP to introduce internship system

UNICEF launches Keep Water Safe 2007 movement

MoARD spices it up

Pacemaker: You can do it here

Ethio-Djibouti transport bill passes

Commercial sex work vs HIV/AIDS

Shema cloth made easy

ADF provides over a bln birr for electrification

Include women as partners, WFPA

‘No woman should die giving life’

FDI reaches 7 per cent in Ethiopian GDP

CBE capital to increase 150% Excess liquidity reaches 16.9 billion

Ethiopia’s mobile density lowest, ETC among largest monopolies

Employment Agencies Association refutes allegations

Finance Ministers focus on MDGs

Court acquit 6 in CUD trial

Jimma – Mizan road gets $65 mln

Death toll rises to 17 in Gigel Gibe accident

EIB provides 16.5 mln Euros for water

Dubai Customs (DC) World inaugurates border post 70% increase in Djibouti’s customs revenues in 2 months

An Ethiopian doctor has 37,000 patients

ECBP to introduce internship system

UNICEF launches Keep Water Safe 2007 movement

MoARD spices it up

Pacemaker: You can do it here

Ethio-Djibouti transport bill passes

Commercial sex work vs HIV/AIDS

Shema cloth made easy

ADF provides over a bln birr for electrification

Include women as partners, WFPA

‘No woman should die giving life’

CBE capital to increase 150%
Excess liquidity reaches 16.9 billion

Dubai Customs (DC) World inaugurates border post
70% increase in Djibouti’s customs revenues in 2 months

CBE capital to increase 150%
Excess liquidity reaches 16.9 billion

Dubai Customs (DC) World inaugurates border post
70% increase in Djibouti’s customs revenues in 2 months