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Envisioning Ethiopia scrutinizes the ‘wellbeing’ of Ethiopia’s economy

By Addis Mulugeta

Envisioning Ethiopia, a community of volunteer non-partisan individuals dedicated to broadening public knowledge and understanding of major issues affecting Ethiopia’s future, scrutinized Ethiopia’s economy as per various macro-economic factors at a one day discussion panel held on December 15, 2007 at Africa Hall (UNECA). Organized under the title – “Ethiopia’s Economy: Choices at the Crossroads”, a number of academicians and practitioners attended the session.

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Electric contractors set for 1800 projects

By Muluken Yewondwossen

Ethiopian electrical contractors are to sub contract 1800 rural town electrification projects during this fiscal year.
According to Amare Mergia, president of the Ethiopian Society of Electrical Engineers (ESEE), last year, local contractors had been working on 170 projects with the Ethiopian electric power corporation (EEPCO). While stating the reason for the huge upsurge in the use of local contractors by the Corporation, Amare noted that EEPCO has come to believe more in local contractors as it has witnessed their good performance.

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Dire Dawa to launch TV transmission

By Muluken Yewondwossen

The Dire Dawa City Administration has signed a contract agreement with EURO-Tel, an Italian telecommunications company, to build a television transmitter, on December 15, 2007 at Dire Dawa.
According to Misrak Worku, manager of City Administration, EURO-Tel will be supplying equipment and will install the TV transmitter for 6.6 mln ETB. It is expected to be completed in three months. “Until that we will have production and other back log works,” Misrak told Capital.

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Ethiopia ranked cheapest economy

By Groum Abate

Ethiopia has been placed as the ninth biggest economy in Africa when measured in Purchasing Power Parity (PPP), according to the latest report by the World Bank. Ethiopia has also been named the cheapest place to buy things next to Tajikistan, and followed by Gambia, Kyrgyz Republic and Bolivia. The most expensive places in the world are Iceland, Denmark, Switzerland, Norway and Ireland.

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“We call for CUD’s renaissance” Ayele Chamiso
“The call is just to confuse the people” Temesgen Zewdie (MP)

By Kirubel Tadesse

As the struggle to emerge as the recognized leader of CUD continues, Ayele Chamiso calls on the party’s former leaders and elders of the country to facilitate reconciliation among divided groups and members. Temesgen Zewdie, on his part, told Capital that the call is simply to confuse people and Ayele Chamiso could not and should not give any press statements on CUD’s behalf.

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EOC-DICAC identifies major problems in North Shewa

By Addis Mulugeta

Hageremariam Integrated Development Project is one of the projects being implemented under North Shewa Diocesan Development Program (DDP). Recurrent drought, high population pressure, shortage of farmlands, serious land degradation, shortage of animal feed, poor education and health facilities were the main problems identified in the project area which are highly contributing to food insecurity.

MORE

The poorest of the poor benefit from EOC

By Addis Mulugeta

North Wollo - The Ethiopian Orthodox Church Development and Inter-Church Aid Commission (EOC-DICAC) has been involved in the implementation of food security, water supply, hygiene and sanitation, relief, peace building, HIV/AIDS prevention, refugee and returnee support projects in different parts of the country with primary focuses on vulnerable community so as to improve its role in socio-economic development of the country.

MORE

Young entrepreneur reserves wedding expenses for orphans

By Kirubel Tadesse

Awade Mohammed, Adika Tour and Travel owner and managing director, has decided to spend the money he put aside for his wedding, on life time care for nine orphans. His wife to be, Liya Mohammed, also donated 25,000 birr to Abebech Gobena Orphanage on Friday December 21, 2007, sources told Capital.

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Larissa Award goes to KMG

By Muluken Yewondwossen

The second ‘Larissa Award’ has been given to Kembatta Women’s Self help Center (KMG) for its work on violence against children, at a ceremony held at the Addis Ababa Hilton hotel on December 17, 2007.
The African Child Policy Forum (ACPF) presented the 2007 Larissa Award to KMG, in recognition of their exceptional work in combating and preventing violence against children - this year’s Larissa Award theme.

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Akon and Rihanna fall under the millennium umbrella

By Kirubel Tadesse

After the buoyant Beyonce experience, which group or singers follow her for the European New Year eve concert at the Millennium Hall had been uncertain. Now, Capital has learned that the deal with Akon, Senegalese-American R&B singer and Rihanna, US pop star, is finalized and the stars arrive in Addis this week.
Seifu Fantahun, the Ethiopian radio host and film director, told Capital that the entrance fee for the concert will be 1000 ETB and 1500 ETB for VIPs. He added that three thousand students will get free tickets.

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Nile Petroleum negotiates for Shell Ethiopia

By Groum Abate

Oil giant Shell Ethiopia is negotiating with the new entrant in the country’s oil business, Nile Petroleum Company (NPC), and selling its operations in Ethiopia.
The state-owned Sudanese Nile Petroleum Company (NPC), which was registered in 2003 in Ethiopia, is negotiating to take over Shell’s gas stations and the main depot in the next few months.

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“U.N should not do damage”
P.M. Meles calls U.N.Somalia report exaggerated

By Tesfu Telahoun

Well after a year since the Transitional Federal Government of Somalia was established in Mogadishu with considerable support from the Ethiopian Defense Forces, the humanitarian situation has become an acrimonious topic between the U.N. and Ethiopia. According to Prime Minister Meles Zenawi: “Its bad enough but the situation could do with less hype.” He was referring to the UN description of Somalia as “Africa’s worst humanitarian crisis.” Meles dismissed the UN report in a BBC exclusive interview which aired Thursday, December 20, 2007 in somewhat staggered manner. A transcription of the interview follows:
On allegation of indiscriminate fire on populated areas by Ethiopian forces …

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British designer fingered in cultural piracy

By Abiy Demilew

The pressure against Matthew Williamson, a British high profile designer, who has introduced Ethiopian national dresses in his spring/summer ‘08 collections, is mounting worldwide.
The Ethiopian government has also announced its anger over the attempt, revealing that investigations have been started. At the same time, Ethiopians from all over the world have continued in their protests against the designer, claiming the two dresses to be purely Ethiopian national dresses and design.

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MoTC, laid off employees bicker
Meeting terminated prematurely

By Muluken Yewondewossen

A meeting called by Junedi Sado, Transport and Communication Minister, yesterday to confer with employees of government offices under the Ministry that have been laid off during the implementation of a Business Process Reengineering (BPR) research has been unfruitfully dismissed after an hour of its commencement.


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Commission apprehends suspect after seven months

By Groum Abate

The Federal Ethics and Anti-corruption Commission has announced that it has put Hayru Kedir, a businessman who has been on the run for the last seven months, under custody.
Birhanu Assefa, Ethics Education and Public Relations Department Director, told Capital that the suspect was apprehended when he trying to enter the country through Metema, a town on the Sudanese border.
According to the director, the commission has been looking for Hayru in relation with corruption charges that have to do with land issues in Addis Ababa.

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Ethiopia prepares specialty coffee brand guide lines
Dispute with Starbucks popularizes Ethiopian coffees

By Kirubel Tadesse

Draft guidelines of leveling and preparing brands for the Ethiopian specialty coffees of Sidamo, Harar and Yirgacheffe has been prepared, Getachew Mengistie, Director General of the Ethiopian Intellectual Property Office (EIPO) disclosed.
“After securing the trademarks, the challenging task is to come up with a brand which shows uniformity,” explains Getachew, “many companies including Starbucks use our coffees and as of now, our specialty coffees are protected by our trademarks, we want all these companies to use the brands of our coffees uniformly.” Getachew also disclosed that the first draft of the guideline for the brands and packaging is to be presented to Starbucks at the second joint forum expected to be held in May 2008 in Seattle, U.S.A.

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Awash Bank's new board revealed

By Kirubel Tadesse

The newly elected members of the board of Awash Bank S.C. have been announced. It is to be recalled that on December 15, 2007 after a shareholders general assembly had been conducted at Sheraton Addis at which 36 nominations were collected for the bank's board following an exhausting full day session. The closed session at its conclusion did not reveal the identities of the newly elected board members, choosing to announce this at its headquarters on Monday, December 17, 2007.
There are 12 positions on the board. Accordingly, it has been disclosed that the fallowing individuals have been elected to the board:

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Exclusive sponsorship secured for African Championships

By Groum Abate

An Ethiopian pioneer marketing and advertising company in athletics, Nova Africa, unveiled this week that through the Confederation for African Athletics, it has secured exclusive sponsorship deals with Adidas, CFI and ECO BANK for the 16th African Athletics Championship to be held from 30th April to May 4, 2008, in Addis Ababa.
Earlier this year the president of African Athletics Confederation, Hamad Kabala, said the confederation had targeted to succeed in marketing of African athletics, and Nova-Africa of Ethiopia took the first steps in making this vision a reality.

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House endorses third party vehicle insurance

By Kirubel Tadesse

The House of Peoples’ Representatives (HPR) endorsed a bill which makes mandatory requirement for vehicles to have insurance against third party risks, after accepting corrections and recommendations from the three standing committees who were working on the draft proclamation.
The standing committees recommended the House to upgrade the maximum amount of compensation due to damage caused by an insured vehicle in the case of death from 30, 000 birr to 40, 000, and the 12,000 birr compensation in the case of bodily injury to 15, 000 birr.

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Exclusive sponsorship secured for African Championships

By Groum Abate

An Ethiopian pioneer marketing and advertising company in athletics, Nova Africa, unveiled this week that through the Confederation for African Athletics, it has secured exclusive sponsorship deals with Adidas, CFI and ECO BANK for the 16th African Athletics Championship to be held from 30th April to May 4, 2008, in Addis Ababa.
Earlier this year the president of African Athletics Confederation, Hamad Kabala, said the confederation had targeted to succeed in marketing of African athletics, and Nova-Africa of Ethiopia took the first steps in making this vision a reality.

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World Bank to finance Ethio-Sudan electricity connection

By Groum Abate

The World Bank has agreed to loan 41-million dollars to Ethiopia to finance electricity connection between neighbors Ethiopia and Sudan, a statement said yesterday.
The World Bank’s Board of Executive Directors on Friday approved an International Development Assistance (IDA) credit of US$41.05 million to the Government of Ethiopia to help the country finance its portion of a new transmission line connecting Ethiopia’s to Sudan’s power grids.

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Public school claims consulted investment with community

By Addis Mulugeta

Ayer Amba Primary School, among Capital’s headlines last week after we received a tip that the school has been undertaking risky business activities around its campus fence, claims that all investment plans were conducted after consultation with parents.
Sisay Gebregiorgis, who had been the director of Ayer Amba prior to moving to kebele – 01 – Health Department, pointed out that the school’s project to construct and rent out small and medium sized retail outlets was reviewed with the parents of students on three occasions before being implemented.
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AU issues Somalia warning

By Groum Abate

The African Union (AU) Peace and Security Council (PSC) has warned that the escalating crisis in war-torn Somalia represented one of the biggest peace and security challenges on the continent.
In a statement from the headquarters in Addis Ababa, the AU called for greater “political will and resources” to end the conflict, which has displaced ‘more than half a million’ residents of the capital Mogadishu since February.

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Paris Celebrates Ethiopia Week

By Tesfu Telahoun

The Embassy of Ethiopia in Paris, France, in collaboration with Alliance Cultural pour le Millennium Ethiopian en France or ACMEF, an organization set up by Ethiopien nationals residing in France as by Ethiopian born French citizens for the purpose of celebrating the new millennium in France, held an Ethiopia Week from December 17 -21, at UNESCO headquarters in Paris.

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Cuban VP Esteban Lazo Hernandez
“We have never taken a speck of gold or a drop of oil from Africa, except the coffins of our soldiers”

By Abiy Demilew

A Cuban delegation led by vice president Esteban Lazo Hernandez visited Ethiopia this week.
Lazo and his delegation held discussions on Ethio-Cuban relations and cooperation with Ethiopian officials at different levels including Prime Minister Meles Zenawi and President Girma Woldegiorgis.
In its week long visit, the delegation visited different offices, institutions, hospitals and exhibitions.

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“Lack of coordination and finance harming water management institutions”

By Kirubel Tadesse

Absence of smooth transfer of responsibility to the subsequent institutions and lack of clear demarcation of responsibilities at various levels and critical problems of capacity are harming the efficiency of water resources management institutions, explained Fekahmed Negash of the Abbay Basin Team at the Ministry of Water Resources.
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Rotary awards honors

By Muluken Yewondwossen

Tewodros Adhanom [PhD], Minister of Health, was awarded an honorary membership and certificate by the Rotary Club of Addis Ababa, the oldest Rotary Club in Ethiopia (52 years) at a ceremony organized by the Polio Plus Committee, a joint committee of all Rotary Clubs in Ethiopia, held at the Hilton Hotel on Tuesday, December 19, 2007, for his contribution to the Polio Eradication Campaign held by local and visiting Rotarians in October this year.

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Nile Insurance declares profits

By Muluken Yewondewossen

Nile Insurance has reported 4.6-mln ETB in profits after tax for the year ended June 30, 2007. This shows a 33 per cent decline compared to the 6.4 mln ETB for the previous year.
The drop in profit was mainly attributed to Birr 13,466,504 provision maintained for claims pertaining to financial guarantee bonds, which were granted years before.

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Envisioning Ethiopia scrutinizes the ‘wellbeing’ of Ethiopia’s economy

By Addis Mulugeta

Envisioning Ethiopia, a community of volunteer non-partisan individuals dedicated to broadening public knowledge and understanding of major issues affecting Ethiopia’s future, scrutinized Ethiopia’s economy as per various macro-economic factors at a one day discussion panel held on December 15, 2007 at Africa Hall (UNECA). Organized under the title – “Ethiopia’s Economy: Choices at the Crossroads”, a number of academicians and practitioners attended the session.
The economy of the country is reported to have displayed growth of more than 10%, by real Gross Domestic Product (GDP), over the past three years before its lethargic move in the past especially during the war with Eritrea and the 2003 famine that affected a fourth of the population. On such macro-economic standards as employment and workforce compensation (jobs, employment, income and labor force participation), human development indicators (education, health, poverty levels and livelihoods), banking and finance (interest rates, tax, domestic access to capital and FDI), infrastructure and sector-wise development (construction, agriculture, industry and communication) and unemployment, inflation and real earnings, the discussion posed the varied opinions held by various group of people.
The president of Ethiopian Chamber of Commerce and Sectoral Association, Eyesuswork Zafu, gave opening remarks at the event while Ambassador Peter Robleh served as moderator. The panelists included Dr. Haile Kebret from the Ethiopian economists Association (EEA) who presented the current challenges to the Ethiopian Economy, Honorable Mesfin Nemera, Member of Parliament, who saw the socio-political dimensions to economic growth and Ermias Amelga, from the newly founded Access Bank, who focused on economic growth and financial management in Ethiopia.
‘The structural analysis of price drivers in Ethiopia’, an article that was originally prepared in May 2007 as a policy input by Dr. Hashim A. Ahmed from the Ethiopian Development Research Institute (EDRI), was presented during the session, giving the conclusion that aggregate and per capita food consumption in the country is on the increase influenced by the overall employment intensive economic growth. Crop production has also been reported to have rapidly been commercialized. Two World Bank documents ‘Capturing the demographic bonus in Ethiopia: Gender, development and demographic actions, and ‘Accelerating equitable growth: Country economic memorandum’ have been conversed revealing that the country’s population doubles every 27 years at the current growth rate while a land poor class is emerging and most citizens of the country still live in immense deprivation, respectively.
Most importantly, the country profile that was reproduced by Envisioning Ethiopia from the original producer, the Economist Intelligence Unit, indicated that health services provision, telecommunications coverage, transport infrastructural facilities, press freedom, gas reserves and industrial development remain poor or extremely of lower values while private investment, foreign direct investment, volume of air traffic, hydroelectricity, agriculture, privatization, monetary policy, capital flows and foreign debt show better performances over the former factors.


Electric contractors set for 1800 projects

By Muluken Yewondwossen

Ethiopian electrical contractors are to sub contract 1800 rural town electrification projects during this fiscal year.
According to Amare Mergia, president of the Ethiopian Society of Electrical Engineers (ESEE), last year, local contractors had been working on 170 projects with the Ethiopian electric power corporation (EEPCO). While stating the reason for the huge upsurge in the use of local contractors by the Corporation, Amare noted that EEPCO has come to believe more in local contractors as it has witnessed their good performance.
"Local contractors could handle huge electrical projects but they do not have enough capital back up", Amare said. To solve this problem, ESEE is urging the government to come up with a scheme that allows contractors get more access for loans, he added.
He stated that this is an encouragement to the growing number of local contractors who had little participation in the country's development activities in the past.
Unlike previous years when local electrical contractors were engaged in installation work on buildings subcontracted to them by civil contractors, they are going to have wider opportunities to execute large contracts on their own.
According to Amare, his association is discussing with the Ethiopian Telecommunications Corporation to find ways of giving local contractors more opportunities, as EEPCO has.
The Ethiopian Electric Power Corporation (EEPCO) started to contract out rural electrification projects to four local contractors in 2002, increasing the number to 48 in 2006.

Dire Dawa to launch TV transmission

By Muluken Yewondwossen

The Dire Dawa City Administration has signed a contract agreement with EURO-Tel, an Italian telecommunications company, to build a television transmitter, on December 15, 2007 at Dire Dawa.
According to Misrak Worku, manager of City Administration, EURO-Tel will be supplying equipment and will install the TV transmitter for 6.6 mln ETB. It is expected to be completed in three months. “Until that we will have production and other back log works,” Misrak told Capital.
“The studio was already built a few months ago by Aska Computers, a local company, at a cost of one and half million ETB. Currently the Dire TV program is carrying out production work in this studio,” he said. Dire Dawa City Administration has started transmission from September 2007 on Ethiopian television for twenty minutes. “We will continue our twenty minute program on ETV even after our own station is launched,” Misrak added.
When the Dire TV station starts transmission, it has a plan to transmit for two hours a day in three languages; Amharic, Oromifa and Somali. There will at the same time be ETV transmissions and Roomies TV programs on other two channels.
“This project has a great importance in providing information to our society on different aspects, especially development issues,” Misrak said. “We are training our employees to develop their capacities until the transmission work is completed. In addition we will employ professionals when our transmission starts,” he added.
EURO-Tel signed the contract agreement with Oromia Regional State government to build a television station and ten transmitters for 31.5 mln ETB last week.


Ethiopia ranked cheapest economy

By Groum Abate

Ethiopia has been placed as the ninth biggest economy in Africa when measured in Purchasing Power Parity (PPP), according to the latest report by the World Bank. Ethiopia has also been named the cheapest place to buy things next to Tajikistan, and followed by Gambia, Kyrgyz Republic and Bolivia. The most expensive places in the world are Iceland, Denmark, Switzerland, Norway and Ireland.
Data for the study was gathered in 146 world economies during 2005. In order to determine how expensive economies are in relation to one another, the study analyzed the experience of travelers who made purchases after exchanging their currency at market rates.
Ethiopia has been branded as one of the cheapest economies in the world measured by Price Level Index (PLI) according to the World Bank. Ethiopia’s GDP in PPP is 42.5 billion dollars, which accounts for 0.08% of world economy. Ethiopia’s GDP per capita measured in PPP is 591 dollars.
The African economy is dominated by South Africa, Egypt, Nigeria, Morocco, and Sudan, which collectively account for nearly two-thirds of the region’s GDP.
The 10 Biggest Economies in Africa
1. South Africa $397.5
2. Egypt, Arab Rep. $353.5
3. Nigeria $247.3
4. Morocco $107.1
5. Sudan $79.6
6. Tunisia $64.8
7. Angola $55.0
8. Kenya $47.9
9. Ethiopia $42.5
10. Tanzania $ 35.9
GDP in PPP$ Billion

The report also revealed that twelve economies account for more than two-thirds of the world’s output. Seven of them are high-income economies (United States, Japan, Germany, the United Kingdom, France, Italy and, Spain), and five are developing or transitional economies (China, India, Russia, Brazil, and Mexico). The five largest developing economies account for more than 20 per cent of global output and over 27 per cent of the world expenditures for investment purposes.
Measured by GDP per capita, the five richest economies are Luxembourg, Qatar, Norway, Brunei Darussalam, and Kuwait. Collectively, they account for less than 1 per cent of the world’s output. Seventeen economies have a GDP per capita of less than $1,000.
The world average is approximately $8,900 per capita.
In what a World Bank press release called “the most extensive and thorough effort ever to measure PPPs (Purchasing Power Parities) across countries,” the study also compared the relative purchasing power of the currencies of the 146 participating economies.
Price level indexes are the ratio of an economy’s PPP to its exchange rate with another economy measured by cost of living or cost of doing business.
The World Bank uses PPPs as an input to establish international poverty lines and compare standards of living.


“We call for CUD’s renaissance” Ayele Chamiso
“The call is just to confuse the people” Temesgen Zewdie (MP)

By Kirubel Tadesse

As the struggle to emerge as the recognized leader of CUD continues, Ayele Chamiso calls on the party’s former leaders and elders of the country to facilitate reconciliation among divided groups and members. Temesgen Zewdie, on his part, told Capital that the call is simply to confuse people and Ayele Chamiso could not and should not give any press statements on CUD’s behalf.
Ayele Chamiso, on Monday December 10, 2007, along side other party members gave a press conference to urge all former CUD leaders to come and work with his party which he claims is “the only existing legal party under the name CUD.” Ayele stated that CUD members, supporters and Ethiopians at large are saddened by the decision of the former leaders to run abroad before giving time to secure the legal status for the party.
Temesgen Zewdie (MP) told Capital that the call of Ayele is simply intended to confuse the people and look for propaganda gains. “What the people should know is that the guy has no business speaking on CUD’s behalf when in fact the general assembly he held to elect leaders was not accepted. He was told that he could not represent CUD.”
Replying to questions about former leaders of the CUD and Temesgen Zewdie’s status, Ayele told journalists that his party has the accreditation of the National Electoral Board. “It doesn’t say it is temporary, the certificate we have is just one step away from the original certificate which we will complete once we call a general meeting and elect leaders”, Ayele explained.
Elaborating on his party’s relationship with the former CUD leaders, Ayele said “we do not have the financial strength to invite them to lunch in big restaurants but we have announced that we are very happy. We also announced that we welcome them to join and work in our party, but that has not happened yet.” He added that there is a place for the former leaders since their popularity, political experience and influence can contribute to the nation and the party’s democratic process. He warned all other groups to stop from acting or giving press statements of any kind in CUD’s name since it is only his party that has the legitimate right to do so.
Temesgen Zewdie (MP), on his part explained to Capital that Ayele’s press statement is unlawful and does not represent the CUD. He added, Ayele is giving statements by obtaining the party’s stamp illegally. “We are awaiting the court’s decision which will be delivered on December 28, 2007.”

EOC-DICAC identifies major problems in North Shewa

By Addis Mulugeta

Hageremariam Integrated Development Project is one of the projects being implemented under North Shewa Diocesan Development Program (DDP). Recurrent drought, high population pressure, shortage of farmlands, serious land degradation, shortage of animal feed, poor education and health facilities were the main problems identified in the project area which are highly contributing to food insecurity.
Project officer Dejene Mebrate says that EOC-DICAC has been implementing various humanitarian and development activities through Diocesan Development Program (DDP) and Integrated Rural Development Project (IRDP), components like environmental rehabilitation, agricultural development, education, health, capacity building, water supply and different trainings since 2004 to minimize the aforesaid problems.
He commended that the total beneficiaries of the five projects in the intervention kebeles of Gujibel, Sekoru, Nefas Amba, Kumdingay and Debere Tsige, is 13,861. The project budget pledged from the donors for the three-year project and one-year extension period was 4,432,436 ETB. Out of this 3,596,404.32 ETB was utilized until November 30, 2007 and 836,022.68 ETB remains.
Dejene explains the physical performance of the project that EOC-DICAC has undertaken as environmental rehabilitation including, soil and water conservation. A total of 1,882,995 different multipurpose tree seedlings were raised in the two project nurseries of Sekoru and Debere Tsige planted by the targeted community, government bodies, non-governmental organizations and community based organizations. In addition, 869,160 seedlings of various species have been planted for the purpose of wood lots, animal feed and income source. Agricultural extension including horticulture site for plantation of carrot, lettuce, beetroot and onion was constructed for demonstration and production purposes. It has also been possible to develop forage.
He also held a firm stand that education, health and water are crucial in the area. The Shola Gebeya high school and supporting adult educational center were constructed to minimize the problem of education. 14 springs have been developed and 8 hand-dug wells have been constructed as far as water conservation is concerned. Some of the schemes had cattle trough to give due attention for livestock including upgrading the traditional way of small-scale irrigation system. Such constructions include places like Gugebel. Moreover, in the same kebele Kulkualagae Gotte small-scale irrigation is under construction. The two small-scale irrigation systems will be fully completed with potential irrigation capacity of 5 hectares of land.
300 farmers have got training on various agricultural fields, 15 female households were trained on energy saving technology and equipped with production moulds. Skill training for poor female house holds on tailoring and boarding was also given. On top of this, 10 sewing machines had been purchased before being distributed to them. Seventy water caretaker committee members have been trained on the management and maintenance of water points.
The project officer pointed out that all stakeholders have been actively participating in all the project cycle starting from project identification, in the form of free labor and local material contribution in different activities.
Some of the beneficiaries explained that they have been cured from various agonizing diseases because of the construction of new water and development of spring water wells at the moment. The construction of high school also adds a value for them and gives them better educational opportunity. The Shola Gebeya high school director, Seyefe Haile Gebriel said that the EOC-DICAC endeavored a lot to raise the quality of their lives. Students of the locality used to attend high school in Debre Birhan. “Thanks to the EOC-DICAC and the community in general, nonetheless, such a worry has already been tackled and can attend Hagere Mariam.”

The poorest of the poor benefit from EOC

By Addis Mulugeta

North Wollo - The Ethiopian Orthodox Church Development and Inter-Church Aid Commission (EOC-DICAC) has been involved in the implementation of food security, water supply, hygiene and sanitation, relief, peace building, HIV/AIDS prevention, refugee and returnee support projects in different parts of the country with primary focuses on vulnerable community so as to improve its role in socio-economic development of the country.
Bugna and Wadla are two of the beneficiary districts located in the North Wollo Zonal Administration of Amhara Regional State.
The Wadla Rural Livelihood Improvement Project (WRLIP) is being implemented in accordance with the stated objectives of EOC-DICAC. The total project budget is Birr 4,289,944 and aims at benefiting 131,644 people out of which 24,007 are direct beneficiaries.
According to the baseline survey of EOC-DICAC 2006, 94.2 per cent of the households are engaged in agriculture while petty-traders make about 1.5 per cent. In the region, agricultural production is dominated by wheat, barley, peas, lentils, sorghum, and teff.
On the other hand, EOC-DICAC is working together with Bugna Integrated Rural Development Project (BIRDP) in conducting various developmental activities in Bugna and Lasta woredas. In order to improve the livelihood of the poor, especially women, EOC-DICAC in collaboration with Christian Aid initiated an Integrated Rural Development Project (IRDP) in Bugna and Lasta Woredas, which has been under implementation since 2001. The first phase of the project has been carried out for the last consecutive three years including the bridging phase of the year 2003, focusing mainly on soil and water conservations, water supply development, agricultural extension, health, education service and income generating activities.
The overall goal of the project was advancing the food security of 5,100 households with about 25,500 people in five rural kebeles of Bugna and Lasta woredas, namely, Medagie, Deber Loza, Sorba, Bilbala and Daria. The project covers integrated rural development components such as agricultural and natural resources development, income generating, health, water and sanitation, education and capacity building.
According to Adddisu Aragaw, coordinator of the project in Bugna and Lasta Woredas, the total cost of the project from 2004-2006 was 4,317,325 ETB. He applauded that water is crucial in the project area. Spring development, as a solution was a necessity. Extending the use of spring water for livestock by constructing trough was found to be a remedy to overcome leech problem.

Young entrepreneur reserves wedding expenses for orphans

By Kirubel Tadesse

Awade Mohammed, Adika Tour and Travel owner and managing director, has decided to spend the money he put aside for his wedding, on life time care for nine orphans. His wife to be, Liya Mohammed, also donated 25,000 birr to Abebech Gobena Orphanage on Friday December 21, 2007, sources told Capital.
Awade is among the good will youth ambassadors who received the responsibility from Ethiopian First Lady, Azeb Mesfin, on this year’s World AIDS Day. The fifteen good will ambassadors include athlete Million Wolde, actress Mesert Meberate, radio presenter Berhane Neguise, poet Meron Getenet and others.
“Awade has decided not to hold an expensive ceremony for his wedding but use the money to care for nine children he met at two orphanage centers,” close family friends told Capital. Awade was in London for a business deal when fiancé Liya gave the donation to Abebeche Gobena. Capital learned that the ‘Nika’ ceremony of the couple takes place today in the presence of a few close family members and friends.
Sources further explained that Awade is working on other projects including one to support youth and orphans through a concert to be held at Meskel Square.
Adika Travel and Tour has been backing many art projects including as the number one sponsor for popular Amharic films and recently, was one of the sponsors of Teddy Afro’s Ghion Concert.

Larissa Award goes to KMG

By Muluken Yewondwossen

The second ‘Larissa Award’ has been given to Kembatta Women’s Self help Center (KMG) for its work on violence against children, at a ceremony held at the Addis Ababa Hilton hotel on December 17, 2007.
The African Child Policy Forum (ACPF) presented the 2007 Larissa Award to KMG, in recognition of their exceptional work in combating and preventing violence against children - this year’s Larissa Award theme.
The biennial Larissa Award for Outstanding Service to the Cause of the African Child was established by ACPF to recognize and encourage individuals and organizations working to improve the rights of African children. The award is dedicated to the memory of Larissa, whose tragic death at the age of five symbolizes the one in five African children who die before their sixth birthday.
Dr Salim Ahmed Salim, AU Special Envoy and Chief Mediator for the Inter-Sudanese Peace Talks on Darfur, and chairman of the International Board of Trustees of ACPF, handed the award to Bogalech Gebre, founder and Director of KMG.
Also present at the event were senior government officials, members of parliament and international child rights experts. A documentary on KMG’s work was screened at the ceremony.
“We have a strong field of contenders from various African countries. KMG is a shining example of the transformation brought about by committed African organizations treating communities with dignity and respect,” said Dr. Salim. In just ten years, the percentage of girls subjected to female genital mutilation (FGM) has reportedly fallen from nearly 100% to as low as 10%. The brutal practice of marriage by abduction has almost disappeared, and HIV/AIDS and domestic violence are no longer taboo subjects. More than 35,000 girls have publicly refused to be circumcised and children subjected to abduction and rapes are now able to return to their families and schools. “Through vigorous leadership and innovative integrated services, community conversation and empowering women, KMG provides an exemplary model for other organizations working for the wellbeing of children in Africa”, said Dr Assefa Bekele, Executive Director of The African Child Policy Forum.
Kembatti Mentti Gezzima - Tope (KMG), means ‘Women of Kembatta Working Together’. The mission of KGM is to empower women and their communities to stand up for their rights and be free from harmful customary practices and other forms of abuse.
An indigenous Ethiopian organization, KMG is deeply rooted in the Kembatta Alaba and Tembaro zones in SNNP. Bogalech Gebre, the founder of KGM, grew up in Kembatta where she was the first girl in her village to go further beyond fourth grade. Determined to learn to read, she ran six kms each way to school.
The Larissa Award is given to a chosen organization or individuals every two years on a chosen theme, covering a wide range of activities from advocacy and policy work to service provision.
The previous Larissa Award winner was L’Espoir d’Adjouffou, an organization from Cote d’ivoire working to provide medical, welfare, nutritional and counseling support to people of Adjouffou, a slum area of Abidjan, in particular, orphaned children.


Akon and Rihanna fall under the millennium umbrella

By Kirubel Tadesse

After the buoyant Beyonce experience, which group or singers follow her for the European New Year eve concert at the Millennium Hall had been uncertain. Now, Capital has learned that the deal with Akon, Senegalese-American R&B singer and Rihanna, US pop star, is finalized and the stars arrive in Addis this week.
Seifu Fantahun, the Ethiopian radio host and film director, told Capital that the entrance fee for the concert will be 1000 ETB and 1500 ETB for VIPs. He added that three thousand students will get free tickets.
Along side Akon and Rihanna, Ethiopian veteran singer Tilahun Gessese and Hibest Tiruneh will perform in the concert on December 31, 2007, which could be the last concert of the series organized by Addis Park at Millennium Hall.
Akon, the 24 year old hip hop and R&B singer, songwriter, occasional rapper and record producer rose to fame in 2004 following the release of his single “Locked Up” from his debut album “Trouble”. His second album, Konvicted, earned him a Grammy Award nomination for the single “Smack that”. He is well known for singing hooks and has over 21 Billboard Hot 100 songs to his credit. He is the only artist to ever accomplish the feat of holding both the number one and two spots simultaneously on the Billboard Hot 100 charts twice.
The shining star, Rihanna is at the top of her game. She released her first debut album, Music of the Sun, in August 30, 2005 from which, singles like “Pon de Replay” gained her huge success. “Pon de Replay” reached #2 position in both the U.S. Billboard Hot 100, the UK Singles Chart due to considerable airplay it received including on many radio music programs in Ethiopia.
Rihanna collaborated with famous singers like Ne-Yo, Stargate and Timbaland to prepare her third album “Good Girl Gone bad”. The album was released on June 5, 2007 featuring Jay-Z in the first single, “Umbrella”.
“Umbrella” was released on March 29, 2007; reaching number one in various countries, including the U.S. It was the #1 single in the UK for 10 consecutive weeks. It was also the longest running #1 single since “Wet Wet Wet’s” single “Love Is All Around”, back in 1994, and the longest running #1 by a female artist since Whitney Houston’s “I Will Always Love You”, which also topped the chart for 10 weeks in 1992.

Nile Petroleum negotiates for Shell Ethiopia

By Groum Abate

Oil giant Shell Ethiopia is negotiating with the new entrant in the country’s oil business, Nile Petroleum Company (NPC), and selling its operations in Ethiopia.
The state-owned Sudanese Nile Petroleum Company (NPC), which was registered in 2003 in Ethiopia, is negotiating to take over Shell’s gas stations and the main depot in the next few months.
Sources told Capital that the two parties have been negotiating for the past two months and an agreement is expected to be finalized and announced by January 2008.
Shell will sell its depot and headquarters in Addis Ababa and 190 retail stations across the country.
Shell Ethiopia has planned to move completely out of the country in the next nine to ten months, due mainly to the price margin which is controlled by the government.
One of the country’s largest operators in petroleum distribution and marketing, Shell Ethiopia, which has been in operation for over 50 years, decided to move out of the retail business in Ethiopia after acquiring the ex-Agip depots and retail stations in 2000. Shell recently sold the two fuel depots and 80 retail stations for reasons of economic strain caused by the escalating international oil prices.
The company claims that dealer margins had been declining since 2000 and operating costs have been on the rise.
Shell had decided to sell the ex-Agip depot in Addis Ababa and the Dire Dawa Shell depot as well as 80 of the 270 retail stations to Kobil Ethiopia a few years back.
Shell, established in 1897, operates in more than 140 countries and employs 112,000 people. The company, which has a strong presence in Africa, started its operations in Ethiopia in November 1929 and took its current name, Shell Ethiopia Limited, in April 1964.
The National Oil Company (NOC) and Yetebaberut Biherawi Petroleum (YBP) have been functional ever since, established with 100 million Br and 21 million Br capital respectively. The Kenyan Kobil and NPC joined the Ethiopian market recently.
Shell, Mobil, Agip and Total have monopolized the Ethiopian market for the last 40 years; all except Mobil and Agip are still operational.
NPC, established with a capital of 25 million dollars and registered in Ethiopia in February 2003, works on petroleum exploration, refining, storage and marketing in Sudan.
NPC was established in 1954 under the name Nile Import and Trading Oil Company, as a subsidiary of Total, with the Sudanese government holding a 75pc stake until 1993.
NPC was nationalized in 1993, having a 55pc share of the marketing and distribution of petroleum products in Sudan.

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“U.N should not do damage”
P.M. Meles calls U.N.Somalia report exaggerated

By Tesfu Telahoun

Well after a year since the Transitional Federal Government of Somalia was established in Mogadishu with considerable support from the Ethiopian Defense Forces, the humanitarian situation has become an acrimonious topic between the U.N. and Ethiopia. According to Prime Minister Meles Zenawi: “Its bad enough but the situation could do with less hype.” He was referring to the UN description of Somalia as “Africa’s worst humanitarian crisis.” Meles dismissed the UN report in a BBC exclusive interview which aired Thursday, December 20, 2007 in somewhat staggered manner. A transcription of the interview follows:
On allegation of indiscriminate fire on populated areas by Ethiopian forces …
BBC: I have met a lot of people, women and children included, who have fled from Mogadishu to comps in Johar and Merca. They seem to corroborate other reports that have been made by human rights agencies and aid organizations, of indiscriminate firing, with civilians increasingly being caught in the cross fire. There seems to be a ratcheting up in the level of fighting. Is this actually a policy decision?
Meles: Well look, first of all lets look at the facts – there has not been any indiscriminate firing on our side.
BBC: Categorically not …?
Meles: Absolutely none because it would be completely suicidal for us to engage in such an activity. Our intervention is to give the Somali state space to re-create the Somali state. You do not re-create the Somali state by firing indiscriminately on civilian targets. Nevertheless, it is quite true that when you fight in built up areas there are bound to be civilian casualties. That is extremely regrettable.
On a stronger UN role
BBC: Would you want a stronger commitment from the U.N. to support a possible peacekeeping force going in …?
Meles: I would very much wish the UN to play a positive role – or at least to do no damage. At the moment some UN agencies appear to be doing damage…
BBC: In what respect?
Meles: In respect of (long pause)… parroting – totally unfounded reports by some agencies without in any way trying to verify the facts…
BBC: Which UN agencies are these…
Meles: Those who are talking about (figures like) 600,000 people displaced in and around Mogadishu and all sorts of humanitarian catastrophes. The situation there is hard enough as it is and it could do with less hype and exaggeration.
BBC: Even if half of the peacekeepers pledged by the African Union were to go to Somalia, would that be enough for you to withdraw your troops?
Meles: That would go a long way in creating the proper environment for us to withdraw …..
BBC: Will that happen do you think?
Meles: I hope so. Its taking a lot longer than we hoped and planned, I understand why as the African Union does not have the resources to fulfill its promise but I hope those (with the resources) will support the A.U. so that it can deploy peace keepers.
Ahmedu Ould Abdullah is the U.N. Special Representative to Somali. His views were included in the news file reports that accompanied the Meles interview. Abdallah’s brief statement, was self contradictory and indicates that the United Nations does not have a clear picture of the current situation in Somalia.
“I know that whether it concerns Congo, Darfur or Cote d ’Ivoire, the figures are always disputed but I believe that the figures provided by my humanitarian colleagues is accurate even though in Somalia, we have no international presence to attest the accuracy of the figures”.
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British designer fingered in cultural piracy

By Abiy Demilew

The pressure against Matthew Williamson, a British high profile designer, who has introduced Ethiopian national dresses in his spring/summer ‘08 collections, is mounting worldwide.
The Ethiopian government has also announced its anger over the attempt, revealing that investigations have been started. At the same time, Ethiopians from all over the world have continued in their protests against the designer, claiming the two dresses to be purely Ethiopian national dresses and design.
Asked by The Independent, one of the popular papers in the UK, whether he feels offended by Matthew’s dresses, Berhanu Kebede, Ethiopia’s Ambassador in London, has so far declined to comment. The embassy has already alerted the Ministry of Foreign Affairs in Addis.
Abdurazak Omer of the Intellectual Property Office here in Addis told reporters in London that the Ethiopian government is not pleased with the actions of the designer. “These are the dresses of our mothers and grandmothers. They symbolize our identity, faith and national pride. Nobody has the right to claim these designs as their own.”
However, the spokeswoman for Matthew Williamson told Elle magazine that “the design team derived inspiration from various African countries and tribal groups. In presenting his spring/ summer 2008 collection Matthew Williamson strived to gain recognition and admiration for not only the traditional dress of the Ethiopian people, but also other African communities whose beautiful traditional techniques are also evident in the show.”
But following Abdurazak’s criticism, Matthew Williamson spoke to Vogue magazine to insist that they are intended to celebrate traditional African costumes. His spokesperson also added that “Our style is in part defined by incorporating many different cultures, traditions and customs. The spring/summer 2008 season was particularly inspired by the idea of modernizing and celebrating certain traditional African fabrics and costumes.”
Now reports in London are revealing the fact that the designer has taken the inspiration of Ethiopian traditional clothes from a show created from an entire collection inspired by Africans in London which was shown at London Fashion Week in September 1999, in which Ethiopian designs were included.
Senior official at the Ethiopian Intellectual Property Office told Capital that the office is studying the case and checking if the designer has been given a patent right yet. “We are looking for ways and possibilities to protect our national heritage,” concluded the source.


MoTC, laid off employees bicker
Meeting terminated prematurely

By Muluken Yewondewossen

A meeting called by Junedi Sado, Transport and Communication Minister, yesterday to confer with employees of government offices under the Ministry that have been laid off during the implementation of a Business Process Reengineering (BPR) research has been unfruitfully dismissed after an hour of its commencement.
The workers were fired six months ago from the Ethiopian Postal Agency, Civil Aviation, Tele Agency, Transport Authority and the Transport and Communication Ministry. A total of 571 people have been laid off from these organizations, with all still receiving their salaries until the Ministry comes up with some kind of way to ensure their employment.
On yesterday’s meeting, the Minister proposed for the laid off workers to be given parking lots, organizational lounges and for them to participate in safety net works to generate income. However, the workers protested the proposals and demanded to be reinstated to their positions in the respective government offices, as they have been laid off unfairly.
Some members of the laid off workers told Capital that the BPR has been implemented in such a way that some group of people who have a reputation for corruption take their revenge on the rest of the workers. They further commented that the Minister’s claim that the lack of education qualification was the main reason behind their lay off was incorrect as most of the laid off workers have diplomas and Bachelor Degrees.
The meeting, which was scheduled to proceed until 2 pm in the afternoon, broke off at 10 am in the morning because ‘the two sides had nothing further to talk about’, to use the Minister’s words.


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Commission apprehends suspect after seven months

By Groum Abate

The Federal Ethics and Anti-corruption Commission has announced that it has put Hayru Kedir, a businessman who has been on the run for the last seven months, under custody.
Birhanu Assefa, Ethics Education and Public Relations Department Director, told Capital that the suspect was apprehended when he trying to enter the country through Metema, a town on the Sudanese border.
According to the director, the commission has been looking for Hayru in relation with corruption charges that have to do with land issues in Addis Ababa.
He added that the fugitive was apprehended by the Main Department for Immigration and Nationality Affairs, in a frontier town when he attempted to cross into Ethiopia, on Wednesday December 19, and transferred him to the commission.
The director said that the person took eight plots with the Defense Ministry Employee’s Association, after misleading the association.
Birhanu stated that the business person was included in a 36 member association and took over 3,000 meter square plot.

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Ethiopia prepares specialty coffee brand guide lines
Dispute with Starbucks popularizes Ethiopian coffees

By Kirubel Tadesse

Draft guidelines of leveling and preparing brands for the Ethiopian specialty coffees of Sidamo, Harar and Yirgacheffe has been prepared, Getachew Mengistie, Director General of the Ethiopian Intellectual Property Office (EIPO) disclosed.
“After securing the trademarks, the challenging task is to come up with a brand which shows uniformity,” explains Getachew, “many companies including Starbucks use our coffees and as of now, our specialty coffees are protected by our trademarks, we want all these companies to use the brands of our coffees uniformly.” Getachew also disclosed that the first draft of the guideline for the brands and packaging is to be presented to Starbucks at the second joint forum expected to be held in May 2008 in Seattle, U.S.A.
Ethiopia has been striving to secure trademarks for its specialty coffees in thirty four countries, and according to Getachew all three fine coffees have obtained the desired trade marks in Canada. “Harar and Yirgacheffe in Europe, Sidamo and Yirgacheffe in Japan, and Yirgacheffe in USA have also secured certificates,” explained Getachew.
“In Europe, Sidamo had faced opposition after a German company claimed that its trademark ‘Sisamo’ might be confused with Sidamo. This issue was resolved through negotiations since the company’s trademark represents grocery products and the two names are different in every aspect,” Getachew stated explaining some of the challenges Ethiopia faced to secure the trademarks. “The company withdrew its appeal one month ago, and as a result we expect that our trademark is protected in the twenty seven countries of Europe,” said Getachew, and added “One problem in Japan was a company had Harar registered as a trade mark before we did. Later in April 2007, the company agreed to give up its trademark rights in exchange for the right to use Ethiopia’s trademark for free.
In the USA also Ethiopia’s request for trade marking Harar and Sidamo brands faced strong opposition. “Sidamo faced opposition from Starbucks, the company had requested similar trademark in 2004, but that too was resolved in a June 2006 agreement,” Getachew told journalists on Tuesday December18, 2007.
According to Getachew, America’s National Coffee Association (NCA) submitted more than 400 pages opposing Ethiopia’s request to obtain the trademarks for its three specialty coffees claiming that the names are too generic to be trademarked. However, the US Patent and Trademark Office accepted Ethiopia’s counter argument and asked for submission of any other appeals until December 27, 2007.
Observers Capital talked to explain that more opposition is unlikely to arise in the remaining few days since the first NCA opposition was, according Oxfam, driven by Starbucks even if the coffee giant had denied the report.
The lack of awareness that Ethiopia is a source of specialty coffees has been one of the fallbacks in efforts to secure the three trade marks, Getachew explained. A recent survey conducted by American and Columbian researchers showed that only twenty per cent of the sample population knows Ethiopia produces coffee. Getachew concluded that among the twenty per cent, most came to know because of the pervious disputes with starbucks.

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Awash Bank's new board revealed

By Kirubel Tadesse

The newly elected members of the board of Awash Bank S.C. have been announced. It is to be recalled that on December 15, 2007 after a shareholders general assembly had been conducted at Sheraton Addis at which 36 nominations were collected for the bank's board following an exhausting full day session. The closed session at its conclusion did not reveal the identities of the newly elected board members, choosing to announce this at its headquarters on Monday, December 17, 2007.
There are 12 positions on the board. Accordingly, it has been disclosed that the fallowing individuals have been elected to the board:
1. Leikun Berhanu
2. Bekele Nedi
3. Kebede Borena
4. Awash Insurace S.Co
5. Hambisa Wakewoya
6. Negasa Tumesa
7. Wole Gurmu
8. Meteku Abishu
9. Amesalu Bizuneh
10.Engineer Terefe Mengisha
11. Wonedemu Oumeta
12. Emeriu Amente
Even if there were a months long dispute which couldn't be resolved until the court ruled in favor of A.A Bromhead & Co. Chartered Accountants, external auditor of the bank, which were struggling to call a general meeting and set the agenda, seven out the twelve of the pervious board members were re-elected again. Though the seven were re-elected, the bottom three from the seven; Engineer Abebe Negash, Oda S.Co and Ethiopian Evangelical Church, were not included in the new board as per Ethiopian National Bank directive no SBB/39/2006, which states only one third of the new board members can be chosen from the pervious board members who have served for six years.
Sources told Capital that some members of the new board were not accepted by the National Bank and this board could also be subject to review.

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Exclusive sponsorship secured for African Championships

By Groum Abate

An Ethiopian pioneer marketing and advertising company in athletics, Nova Africa, unveiled this week that through the Confederation for African Athletics, it has secured exclusive sponsorship deals with Adidas, CFI and ECO BANK for the 16th African Athletics Championship to be held from 30th April to May 4, 2008, in Addis Ababa.
Earlier this year the president of African Athletics Confederation, Hamad Kabala, said the confederation had targeted to succeed in marketing of African athletics, and Nova-Africa of Ethiopia took the first steps in making this vision a reality.
Adidas is one of the frontrunners in sponsoring such events and has sponsored the likes of athlete Haile Gebre Selassie, where as ECO BANK is a banking group operating in 22 countries across central west and east Africa and CFI is a broadcasting company with world wide coverage that will transmit the championship.
It was recalled that Nova Africa have taken the responsibility of marketing and selling the event to both international and domestic sponsors. The company has targeted to collect up to three million birr in sponsorship deals but this amount is expected to increase as both local and international companies are responding to the offer overwhelmingly.
General Manager of Nova Africa, Gashaw Zergaw, pointed out that a number of organizations are coming forward to pledge their support and the event will be an excellent opportunity to demonstrate that our country is ready and capable of hosting similar international sporting events.
Meanwhile it was reported that in one year’s time the company is planning to organize large international mass participation road races in Tanzania and Uganda.

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House endorses third party vehicle insurance

By Kirubel Tadesse

The House of Peoples’ Representatives (HPR) endorsed a bill which makes mandatory requirement for vehicles to have insurance against third party risks, after accepting corrections and recommendations from the three standing committees who were working on the draft proclamation.
The standing committees recommended the House to upgrade the maximum amount of compensation due to damage caused by an insured vehicle in the case of death from 30, 000 birr to 40, 000, and the 12,000 birr compensation in the case of bodily injury to 15, 000 birr.
One Member of Parliament argued that the upgrading of compensation to 40,000 birr for deaths by car accident is not enough by stating that it is lower than the 100,000 birr compensation which is paid in the case of damage to property. “No lose of human life can be compensated with money; the forty thousand birr compensation is just to avoid any economic, social and psychological damage to those who lose family members in accidents,” explained the representative of the standing committees, “the driver who is responsible for the death shall be questioned in court but this compensation is only to avoid the possible economic crises.”
The House passed the bill by majority vote accepting the corrections and recommendations suggested in the draft proclamation which was referred to the standing committees on Tuesday, October 16, 2007.
The bill guarantees any victim of car accidents to receive medical treatments with out any pre condition. The bill also guarantees compensation to a third party victim of accident inflicted by an insured or unidentified vehicle, from the fund which will be established for facilitating the provision of emergency medical treatment for victims of vehicle accidents. The bill targets at reducing the escalating rate of vehicle accidents in the country as insurance companies would carry out thorough technical checkups on vehicles to avoid bankruptcy.
Insurance companies Capital talked to explained that they are yet to be informed of the details of the bill. They added that no preparation or changes in the price of the insurance have been made. The price of most insurance companies is 300 birr + 10% of the vehicles cc power annually and experts told Capital that changes in premiums are expected as the bill becomes effective.

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Exclusive sponsorship secured for African Championships

By Groum Abate

An Ethiopian pioneer marketing and advertising company in athletics, Nova Africa, unveiled this week that through the Confederation for African Athletics, it has secured exclusive sponsorship deals with Adidas, CFI and ECO BANK for the 16th African Athletics Championship to be held from 30th April to May 4, 2008, in Addis Ababa.
Earlier this year the president of African Athletics Confederation, Hamad Kabala, said the confederation had targeted to succeed in marketing of African athletics, and Nova-Africa of Ethiopia took the first steps in making this vision a reality.
Adidas is one of the frontrunners in sponsoring such events and has sponsored the likes of athlete Haile Gebre Selassie, where as ECO BANK is a banking group operating in 22 countries across central west and east Africa and CFI is a broadcasting company with world wide coverage that will transmit the championship.
It was recalled that Nova Africa have taken the responsibility of marketing and selling the event to both international and domestic sponsors. The company has targeted to collect up to three million birr in sponsorship deals but this amount is expected to increase as both local and international companies are responding to the offer overwhelmingly.
General Manager of Nova Africa, Gashaw Zergaw, pointed out that a number of organizations are coming forward to pledge their support and the event will be an excellent opportunity to demonstrate that our country is ready and capable of hosting similar international sporting events.
Meanwhile it was reported that in one year’s time the company is planning to organize large international mass participation road races in Tanzania and Uganda.

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World Bank to finance Ethio-Sudan electricity connection

By Groum Abate

The World Bank has agreed to loan 41-million dollars to Ethiopia to finance electricity connection between neighbors Ethiopia and Sudan, a statement said yesterday.
The World Bank’s Board of Executive Directors on Friday approved an International Development Assistance (IDA) credit of US$41.05 million to the Government of Ethiopia to help the country finance its portion of a new transmission line connecting Ethiopia’s to Sudan’s power grids.
The Ethiopia-Sudan Interconnector will allow power trading between the two countries, where just 6 and 22 per cent of the respective populations have access to electricity, thereby promoting Ethiopia’s power export revenue generation capacity.
The transmission line will run between the Ethiopian towns of Bahir-Dar and Metema and up to the border with Sudan to connect the countries’ grids, said the Word Bank.
The project will also enable Sudan to replace domestic thermal generation with surplus hydropower from Ethiopia, reducing Sudan’s greenhouse gas emissions. This will enable the two countries to better integrate their reserve capacity, thus improving reliability on the interconnected system, and ultimately providing savings on capital and operating costs.
By building transmission lines, the project will improve the reliability and security of supply in Ethiopia and Sudan. This increased access to electricity is part of both countries’ poverty reduction strategies and will realize benefits such as lighting of schools and homes, improved access to social services, and greater opportunities for business development.
“This project is the first power connection within the framework of the Nile Basin Initiative and is an important step in contributing to cross-border trade and regional interconnection as part of a growing power trade agenda in the region,” said Philippe Benoit, World Bank Task Team Leader for the Project.
The Nile Basin Initiative (NBI), a partnership of the riparian states of the Nile, is providing a framework for promoting cross-border investments that are designed to generate benefits both at the country and regional levels.
“The Ethiopia-Sudan Transmission Interconnection Project is one of the first tangible investments from the NBI, and is an important step in converting the collaborative intentions of the countries into physical investments and benefits”, said Ashok Subramanian, Manager Africa Water Resources Group.
The project represents an important step in a broader power trade agenda for the region, where interconnections with Djibouti, Kenya, Tanzania, Southern Sudan, Somalia, and Yemen are being planned.

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Public school claims consulted investment with community

By Addis Mulugeta

Ayer Amba Primary School, among Capital’s headlines last week after we received a tip that the school has been undertaking risky business activities around its campus fence, claims that all investment plans were conducted after consultation with parents.
Sisay Gebregiorgis, who had been the director of Ayer Amba prior to moving to kebele – 01 – Health Department, pointed out that the school’s project to construct and rent out small and medium sized retail outlets was reviewed with the parents of students on three occasions before being implemented.
Sisay said that upgrading the junior school into a high school was petitioned and sent to the Addis Ababa City Caretaker Administration’s Education Bureau. Nevertheless, since many of the families of students are low income earners, they could hardly contribute to the fulfillment of the upgrading. Therefore, the alternative was to generate revenues from renting shops built around the school’s fence. Among the 1000 students in the school at the moment, as much as 50% are being supported by aid organizations.
Sisay emphasized on the expenditures that the school must incur for the increment of salaries for the teachers which should have been covered from student fees. As a matter of fact, the increment of school fee in the last one and two years had obliged some students to drop out, and this issue was discussed in June 2007 with the respective parents at last year’s first semester meeting on whether to increase fees on students or to generate revenue from such sources as constructing and renting shops, with the latter proposal being passed.
The construction of the shops is not being done by the school itself at the moment. The tenants are responsible for doing so. Such practices were schemed from similar schools such as Asay Public School, adjacent to New York Café and Yetebaberut Memhran School near Wolo Sefer.

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AU issues Somalia warning

By Groum Abate

The African Union (AU) Peace and Security Council (PSC) has warned that the escalating crisis in war-torn Somalia represented one of the biggest peace and security challenges on the continent.
In a statement from the headquarters in Addis Ababa, the AU called for greater “political will and resources” to end the conflict, which has displaced ‘more than half a million’ residents of the capital Mogadishu since February.
And it criticised the international community for failing to capitalise on a lull in fighting last year, when Ethiopian-backed Somali forces recaptured Mogadishu from Islamist militants.
The AU has failed in numerous bids to restore stability in Somalia, including raising an extra 1,600 peacekeepers on top of the pledged 8,000 troops to bolster the country’s weak government and secure humanitarian supplies.
The PSC agreed for all parties “both within Somalia and at the level of the international community to explore new avenues in order to effectively address the current situation and to muster the required political will and resources,” to end the conflict.
The PSC said the “international community as a whole have not been able to seize the window of opportunity that arose in December,” when Mogadishu was retaken.
But the militants, who melted into the civilian population, re-emerged with renewed vengeance and have waged a deadly insurgence mainly in the capital Mogadishu.
The PCS wills meet by mid-January 2008 before the expiry of the mandate of the African Union Mission in Somalia and plan a way forward ahead of the AU summit at the end of that month.
The three-year-old government formed in Kenya has failed to gain a toe-hold in the country in the face of in-fighting, clan-feuds and insurgency, despite international goodwill and support.
Bloody clan conflict and power struggles that erupted after the 1991 ousting of dictator Mohamed Siad Barre continue to defy efforts to restore stability in Somalia.

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Paris Celebrates Ethiopia Week

By Tesfu Telahoun

The Embassy of Ethiopia in Paris, France, in collaboration with Alliance Cultural pour le Millennium Ethiopian en France or ACMEF, an organization set up by Ethiopien nationals residing in France as by Ethiopian born French citizens for the purpose of celebrating the new millennium in France, held an Ethiopia Week from December 17 -21, at UNESCO headquarters in Paris.
ACMEF was established over a year ago by resident Ethiopians, other Ethiophians by nationality and Ethiopliles, working in various governmental and non-governmental French organizations. The association’s primary objective is to join the ongoing celebrations of the new Ethiopian Millennium and concurrently, use the opportunity to improve Ethiopia’s international image and raise the nation’s profile. The ACMEF accordingly drew up a plan of action which included an event on Ethiopian new millennium eve, September 11, 2007, where funds were raised to support “Ethiopia Week’, which itself was conducted colorfully and officially launched by Guest of Honor Matsoura Coichiro, UNESCO Director General.
“Ethiopia Week” featured a plethora of events including panel discussions on various Ethiopic topics, a display of Ethiopian art work and artifacts, serving of traditional foods and drinks and documentary films on Ethiopia, as well as a fashion show.
“Ethiopia Week was a good opportunity to introduce and promote Ethiopian products and the nation’s huge potential for tourism, and to build upon the positive international image being created”, concluded a statement Capital received from the Ministry of Foreign Affairs, which forwarded a press release issued by the Ethiopian Embassy in Paris.

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Cuban VP Esteban Lazo Hernandez
“We have never taken a speck of gold or a drop of oil from Africa, except the coffins of our soldiers”

By Abiy Demilew

A Cuban delegation led by vice president Esteban Lazo Hernandez visited Ethiopia this week.
Lazo and his delegation held discussions on Ethio-Cuban relations and cooperation with Ethiopian officials at different levels including Prime Minister Meles Zenawi and President Girma Woldegiorgis.
In its week long visit, the delegation visited different offices, institutions, hospitals and exhibitions.
The delegation’s visit embraced a warm welcome from Ethiopian officials and prime media coverage on state radio and television.
Cuban news channels also have given special coverage to the delegation’s visit and the inauguration of the monument here in Addis in honor of the Cuban contribution to counter the Somali invasion of Ethiopia in the 1970s. 163 soldiers were killed in the war.
Upon his arrival, Lazo said that it was an honor to visit Ethiopia and participate at the inauguration of the monument, which he called a lasting symbol of the friendship between the two peoples. “It’s a gesture that reaches the heart of every Cuban,” said Lazo when thanking the Ethiopian government and people.
Kuma Demeksa, Ethiopian Defense Minister, recalled that Lazo had placed the first stone of the monument at the beginning of its construction. Kuma also said the site is not only dedicated to the Cuban combatants who died, but also seeks to build ties of eternal friendship of the two nations.
Teshome Toga, speaker of the House, Seyoum Mesfin, Foreign Minister, Berhane Deressa, Mayor of Addis, Kuma Demeksa, Defense Minister and other high ranking officials have attended the inauguration of the monument located in the facilities of Tikur Anbessa Hospital.
Lazo delivered the closing speech of the event in which he thanked the gesture on behalf of the families of the 163 Cubans who died in Ethiopia and the thousands of collaborators, soldiers, and civilians who gave their generous contribution to the development of Ethiopia.
The Cuban Vice President passed on the gratitude of his government, especially of President Fidel Castro and First Vice President Raul Castro, and the entire island, for this beautiful gift that he said will stand as a symbol of friendship between the two peoples. ”We have never taken a single gold or a drop of oil from Africa, except the coffins of our soldiers.” Lazo also added that Cuba and Ethiopia shared the same destiny as witnessed by joining hands in Ethiopia’s fight to repel the invading Somali forces.
“In those glorious days in the 70’s, when Ethiopians and Cubans shared the same destiny, we are reminded of the day at the battle field facing the invaders together, in order to preserve the territorial integrity and sovereignty of a great nation,” he said.
Accompanying the Cuban vice president at the ceremony were Major General Urbelino Betancourt and Brigadier Generals Manuel Perez, Arnaldo Tamayo and Rafael Ruiz, as well as Col. Orlando Cardoso Villavicencio, Deputy Foreign Minister Marcos Rodriguez and a group of civilians who collaborated during the Ethiopian war.  Esteban Lazo and Teshome Toga laid wreaths to the photos of the Cuban martyrs and planted trees as a sign of friendship and took an official photograph.
Lazo also has received the key to the city from Mayor Deresa before he was received on Monday by Prime Minister Meles Zenawi. The two leaders discussed issues of bilateral interest while a meeting in the afternoon took on Ethiopia-Cuba relations.
Prior to the conclusion of a week long official visit to Ethiopia, Cuban Vice President Esteban Lazo attended on Wednesday a rally in solidarity with Cuba held in Addis. The rally was called by youths who have graduated from Cuban education centers and was attended by Ethiopian Foreign Minister Seyoum Mesfin.
Speakers at the rally demanded the release of five Cuban anti-terrorist fighters who remain unjustly imprisoned in the United States, condemned the US economic blockade of the island and thanked Cuban President Fidel Castro and the Cuban people for their solidarity with Africa. On his part, Lazo said that his visit to Ethiopia was an unforgettable experience that further strengthens the friendly and cooperation relations between Cuba and Ethiopia. It is to be remembered that about 30,000 Ethiopians were given learning possibilities in Cuba.
Also on Wednesday and accompanied by the Ethiopian Health Minister, Dr. Tewodros Adhanom, Lazo visited the St. Paul hospital where he met with Cuban health personnel working in Ethiopia. Tewodros thanked Lazo for his country’s contribution and announced that a School of Medicine will be inaugurated next March in Addis Ababa with Cuban assistance.

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“Lack of coordination and finance harming water management institutions”

By Kirubel Tadesse

Absence of smooth transfer of responsibility to the subsequent institutions and lack of clear demarcation of responsibilities at various levels and critical problems of capacity are harming the efficiency of water resources management institutions, explained Fekahmed Negash of the Abbay Basin Team at the Ministry of Water Resources.
Absence of long term vision and focus on short-term objectives, weak coordination among the various institutions operating in the sector were also described as factors affecting the institutions. Fekahmed, on his paper “Policy and Institutions for Water Resources Management in Ethiopia”, presented at the workshop prepared by Forum for Environment (FfE), explained the need for efficient and organised institutional setups for water resources management. “Even if good institutional arrangement without appropriate policy will remain short of its objectives, sound policies without appropriate institutional support will not be successful,” stated Fekahmed.
According to Fekahmed, Ethiopia’s water resources management policy, which was formulated in 1999, is not well known even if it is widely distributed. The paper explained that the level of implementation of the policy has never been assessed and advised that the implementation of the policy should be given emphasis. “Wider distribution of the policy document and frequent awareness creation programs are critical,” stated Fekahmed.
Two other papers; ‘Research and Education: For effective water resources use and management in Ethiopia’ and ‘MDG 7: Progress and Challenges’, were also presented and discussed in the workshop which was FfE’s last for this year.
According to Negusu Aklilu, Coordinator of FfE, the Forum in collaboration with Ethiopian Country Water Partnership (ECWP), Water Aid and Ethio-Wetlands and Natural Resources Association (EWNRA) have organized a series of public meetings under the main theme of ‘effective water resources use and management in Ethiopia. FfE is a platform for environmental advocacy.

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Rotary awards honors

By Muluken Yewondwossen

Tewodros Adhanom [PhD], Minister of Health, was awarded an honorary membership and certificate by the Rotary Club of Addis Ababa, the oldest Rotary Club in Ethiopia (52 years) at a ceremony organized by the Polio Plus Committee, a joint committee of all Rotary Clubs in Ethiopia, held at the Hilton Hotel on Tuesday, December 19, 2007, for his contribution to the Polio Eradication Campaign held by local and visiting Rotarians in October this year.
There are six Rotary Clubs in Addis Ababa and one in Bahirdar, and three provisional clubs in Jima, Gondar and Addis Ababa providing various services for communities living both in the city and in rural areas.
Rotarians, Roteractors and collaborators were in attendance for the occasion at the Hilton Addis on Tuesday.
"Ethiopia is polio free again, but polio plus is our highest priority, and we will continue combating it until we get certified," PDG Shiferaw Bizuneh, Chairman of Polio Plus Committee and Past District Governor, said on his opening speech.
Over two billion children have been vaccinated since 1985, when Rotary International in partnership with WHO started Polio Plus campaign, the largest public health initiative in the world. Polio Plus campaign scored a spectacular success story: 99 percent reduction of the incident of this menacing disease.
"We are here tonight to thank you all for your cooperation and support in our mutual endeavors to end Polio for ever. The energy, enthusiasm and passion of Rotarians from the USA and Canada, who came at their own expenses and joined hands with their Ethiopian fellow Rotarians, have not only helped protect Ethiopian children from polio, but also initiated multi-million dollar projects to provide rural communities all over the country with safe water and sanitation," stated Shiferaw.
On the same occasion, certificates of recognition were awarded to Red Cross Ethiopia, the Austrian Government, Harari Health Bureau, UNICEF, WHO, Ethiopian Orthodox Church, Ethiopian Catholic Church of Harar, IRC, USAID, Plan Ethiopia, World Vision, CRDA, JICA, EC, Ministry of Defense, Geda Health Center, Rotary of South Carolina - USA, CRS, AMREF, Care Ethiopia, Oromia Health Bureau, Dire Dawa Health Bureau, Ethiopian Evangelical Church Mekaneyesus, the Ministry of Health and other individuals for their active participation in eradicating polio from Ethiopia.
Rotary International is working on Polio Eradication from Ethiopia, budgeting six million USD to fight polio all over the world.
The Bill Gates Foundation donated 100 million USD for Polio eradication projects of Rotary International. "This means we will multiply our members to matching hundred millions. This money particularly will be applicable for the new members and Rotary clubs, joining the Rotary's primary goal of Global Polio Eradication," said Shiferaw on the occasion.


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Nile Insurance declares profits

By Muluken Yewondewossen

Nile Insurance has reported 4.6-mln ETB in profits after tax for the year ended June 30, 2007. This shows a 33 per cent decline compared to the 6.4 mln ETB for the previous year.
The drop in profit was mainly attributed to Birr 13,466,504 provision maintained for claims pertaining to financial guarantee bonds, which were granted years before.
Premium from long-term insurance business during the year was 4.5 mln ETB, showing an increase of 35.71 per cent compared to the previous year. Policy owner’s benefits (claims incurred) declined by 23 per cent to 1.03 from mln 1.3 mln ETB.
The valuation of life operation made as of June 30, 2007 revealed an increase in life fund by 1.6 mln ETB after the establishment of the necessary reserves.
Despite low public awareness, long term insurance is becoming a promising business to the company. Consequently, an effort was made to enhance the active contribution of all underwriting units. In this regard, provision of life assurance training was made to sales agents and budget had been earmarked to all branches to augment the business.
The company’s total assets stood at 202.7 mln ETB as at June 30, 2007 and this represents a 7 percent increase over the 189.6 mln ETB recorded in the previous year.
The balance of bank time deposits during the same period was 50.1 mln ETB showing a decline from 51.6 mln ETB of the previous year, and equity investment reached 36 mln ETB indicating an increase of 57 percent over last year.
According to the report, Nile Insurance has achieved premium growth of eleven percent compared to the previous year, which is remarkable in light of the current market situation.

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