Capital

Council approves broadcast bill

By Groum Abate

Ethiopia’s FDI account over 60%

By our staff reporter

Shell’s million dollar rest center

By our staff report

Pushkin square extreme makeover

By Groum Abate

New trainer aircraft for private pilot training

By Andualem Sisay

Millennium expo set for London, Paris, Milan

By Eskinder Michael

Demand won’t affect 2007 oil market, UN study

By Andualem Sisay

New U.N. leader to visit Addis

By Groum Abate

African debt cancellation campaign launched

By Andualem Sisay

Strengthening alternate dispute resolution mechanism

By Andualem Sisay

US air strike a one off operation: PM Meles

By Eskinder Michael

Ethiopia making strong MDG progress

By Groum Abate

Djibouti condemns US Somali raids

By our staff reporter

Somalia declares state of Emergency

Gilgel Gibe III construction underway

By Eskinder Michael

UK scientists look for evidence of climate change in Ethiopia

By our staff reporter

Only few are on track of meeting MDGs

By Andualem Sisay

Derg leadership sentenced to life

By Eskinder Michael

Georgetown University honors First Lady

By Groum Abate

Fifty MBA students graduate from Open University

By Andualem Sisay

WB donates $175 mln to fight food insecurity

By Eskinder Michael

MIDROC to enter glass,textile business

By Eskinder Michael

Council approves broadcast bill

By Groum Abate

The Council of Ministers in its 28th regular meeting held on Friday January 12, approved the long awaited broadcasting bill.
The cabinet discussed the Bill on Broadcast Services which has been prepared with a view to ensuring the rights to information, the freedom of expression, and of thought which are stipulated in the Constitution.
In 1999 Broadcasting Proclamation No. 178/1999 provided for the establishment of a regulatory body, the Ethiopian Broadcast Authority (EBA), in order to ensure, according to the Proclamation’s Article 6, “the expansion of high standard, prompt and reliable broadcasting
services which can contribute to the political, social and economic development” of the country.
The proclamation also gave the EBA the responsibility of issuing, suspending, and revoking licenses.
The Agency is accountable to the Prime Minister and the members of its board and its general manager would be appointed by the government.
A couple of private companies have been waiting in line to acquire licenses for some years but have not yet been successful.
The bill, the government said, would help the expansion of fair and balanced broadcasting services in the country and would assist in ensuring political, social and economic development across the nation through provision of up-to-date information and educational programs to the public.
The Council referred the bill to the House of Peoples’ Representatives for further discussion and endorsement.
Until recently, there were no non-state broadcast outlets on air in the country. However, various community radio stations have been set up in different parts of the country. These stations are not linked to the state media. The EBA had also granted two private radio stations with licenses in 2005, but they are not yet operational. These radio stations will have to adhere to Article 27, but as of yet there were no specific obligations for private broadcasters to fulfill a public-service broadcasting remit.
The 1999 Broadcasting Proclamation, in Article 27, states that broadcasting should be based on the principles of plurality of viewpoints, balanced information, accuracy and impartiality.
The government views radio as the most important mass medium in a large country like Ethiopia. The country's only official school of journalism consider radio and TV to be important assets in promoting democracy in the rural and remote areas of the country. Radio's strategic importance is also, some suspect, the reason behind the government's reluctance to allow private radio stations.
Broadcasting, primarily the radio, reaches a much larger part of the population than does print, though Ethiopian radio is limited. Radio Voice of the Gospel, owned by the Lutheran World Federation, operated prior to the overthrow of the Emperor in 1974. Their facilities were seized under the Derg, and today there are only two radio broadcasters in Addis Ababa: Radio Ethiopia and Radio Fana. The latter is associated with the EPRDF, but is not directly government owned. There is only one regional radio station in Bahir Dahr, which is associated with the regional government. The other radio station is Dimtse Weyane radio in Mekele, broadcasting in Tigrigna and Afar languages.

Ethiopia’s FDI account over 60%

By our staff reporter

Multinational firms from the developing world are moving into the global spotlight. A report by the UN shows that the consequences will be profound. When the United Nations Conference on Trade and Development was set up in 1963, international business meant western business.
But the latest World Investment Report produced by UNCTAD, shows that foreign direct investment is no longer one-way traffic originating in the richest economies.
Firms headquartered in developing countries accounted for 17% of world FDI flows last year, up sharply from 6% in 2003, the report shows. Mittal Steel’s takeover of Arcelor, CNOOC’s grab for Unocal and Tata’s acquisition of Tetley Tea are among recent headline-grabbing moves.
The World Investment Report shows that developing country firms play a crucial role in a number of the least developed countries. Cambodia, Ethiopia and Nepal are all countries in which they account for more than 60% of FDI stocks.
Established as a champion for the newly independent states of Asia and Africa, UNCTAD has been a focal point for radical arguments about fairness in the international economy.
The most contentious type of expansion is “resource seeking” FDI by emerging market multinationals.
China accounted for more than half of the growth in world energy consumption during 2004, according to the BP Statistical Review of World Energy. As growth powers ahead in emerging economies, their firms search the world to secure supplies of oil, metals and minerals.
China is now Africa’s third-largest trade partner, as state-run firms CNPC, CNOOC and Sinopec strike more deals with countries such as Sudan, Equatorial Guinea and Angola.
Unctad’s figures show that, in 2004, 60% of investment by developing country multinationals went to other developing countries.
Firms that originate in poor countries are well adapted to countries with similar characteristics, such as weak legal systems, long administrative delays and poor transport networks.
Foreign direct investment (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 transnational corporation (TNC). 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.

Shell’s million dollar rest center

By our staff report

Shell Ethiopia Ltd is constructing a drivers' rest centre in Semera town at a cost of over one million dollars to ensure its drivers safety.
This was revealed at Shell Customers' Day by general manager Edgar Eric Omoto. The new general manager took his post as of July 2006m, replacing Michel Goury.
The drivers' rest centre is part of its project for Road Transport Safety, which is a major challenge in Ethiopia.
According to him, to deal with this challenge, Shell is working hand in hand with transport contractors and their drivers. He said ‘We have laid the groundwork for developing professional transport companies and this is bearing fruit’
Shell is targeting to achieve Zero Fatalities related to its business.
Edgar joined Shell Ethiopia from Nairobi where he has been working as Commercial Manager for Eastern Africa, covering 10 countries including Ethiopia.
Shell Ethiopia, the oldest oil company in Ethiopia has been operating in the country for the last 78 years and acquired its current name in 1964.
Shell Ethiopia Limited recently announced that the company has decided to sell its assets to an interested buyer. The assets that are included in the sale are the ex-Agip depot in Addis Ababa, Dire Dawa Shell depot and about 80 of the 270 retail stations located around the country.
The company decided on selling its assets on grounds that Ethiopia has been under economic strain due to rising international oil prices and the company and dealer margins have been on the decline since the year 2000, while the operating costs have been on the rise.
Furthermore, the company announced that it would sell its assets to ensure that the remaining Shell network complies with Shell's exacting health, safety and environmental standards.
Moreover, a review of the company's assets has shown that some are not fully utilized and as a result are operating at a loss.
Kenyan Oil (Kenol/Kobil) a newcomer in the oil business in Ethiopia was negotiating to buy a number of Shell stations around the country.
Kenol established Kobil Ethiopia in 2005 and has been assessing the market in Ethiopia since its establishment and was under negotiations with Shell Ethiopia for the acquisition of some of its stations including the previous depot and head office of Agip.
Shell started operating in Ethiopia in various forms since November 1929. It is owned by five shareholders, where Shell Petroleum of Britain, controls the lion’s share of the company. Taking over Agip has given Shell the advantage of having the largest network of gas stations in the country with more than 270 outlets.

Pushkin square extreme makeover

By Groum Abate

The Addis Ababa City Roads Authority (AACRA) is going to upgrade Pushkin Square with an outlay of 2.5 million birr.
The construction of the intersection, which is expected to be completed in two months time, will greatly reduce severe road accidents and excessive delay that occur during rush hours.
According to the schematic design presented by the consultant, United Consulting Engineers PLc (UNICONE) the road that leads from Mexico Square to Mekanisa will pass under the structure with the traffic that leads from Kera to Mechare Meda passing over head.
The over pass and under pass have climbing lanes for convenient directional flow.
The upgrading of the square is under the main project that stretches from Mexico Square -African Union Junction -Pushkin Square – to Mekanisa Ring Road and is currently under construction by Berta Construction S.C.
The 4.2 kilometer road upgrading project is expected to be completed by February 2008.
According to the information obtained from the AACRA, the end of the road at Mekanisa ring road will intersect with the planned expressway of the Addis-Nazreth import / export corridor.
AACRA recently launched the construction of the new complex interchange road at Gotera with an outlay of 96 million birr.
The spot usually known as confusion square will be host to the fanciest road in Ethiopia. The Chinese government has pledged to cover the construction fee of the road and the 11.5 million birr fee for the design work.

Schematic drawing of Pushkin square fly over

New trainer aircraft for private pilot training

By Andualem Sisay

C-172 S, the new quarter mln USD trainer aircraft for Abyssinian Flight Service arrived in Addis Ababa to join the first private pilot training school.
It will bring to two the number of aircraft the pilot training school operates with another aircraft expected to arrive next month. “We will officially launch flight training Monday January 15, 2007 by training qualified students,” says Captain Belay Assefa, Manager of Abyssinia Flight Service Pilot Training School.
In order for a candidate to be admitted, he or she must be a high school graduate and present a class II medical certificate issued by an Avian Medical Examiner. The candidate should be at least 18 years old and capable of paying the school fee of 8,700 USD for the whole course.
The duration of the course is about 20 weeks. During this time, a trainee is expected to cover 70:00 hours of ground instruction in subjects like Aerodynamics, Meteorology, Air navigation, Air law and the like as well as 58:00 hours of flight instruction in single-engine trainer aircraft.
Trainees, after covering a total of 128:00 hours are required to take the ET-CAA school’s written tests as well as the practical test conducted by a CAA designate flight examiner. After successfully passing the tests, candidates will be awarded with a Private Pilot License approved by ET-CAA.
The pilot training school was certified and its syllabus approved by the Ethiopian Civil Aviation Authority August, 2006. It has already met the requirements set by the international regulatory body ICAO and other civil aviation authorities such as the Federal Aviation Authority (FAA) of America, and the Joint Aviation Authority (JAA).

Millennium expo set for London, Paris, Milan

By Eskinder Michael

With the Ethiopian Millennium set to be celebrated in style, a unique Millennium Exposition has been scheduled by Discover Ethiopia magazine for London, Paris and Milan with the possibility of a fourth city, to mark Ethiopia’s Millennium celebration.
The expo scheduled to be held in three of Europe’s grandest cities is part of a broader private contribution to the Millennium Celebration planned to be held across Europe.
The event is to run for three-days in each city in August 2007 and will feature film shows, cultural dances, fashion shows, concerts, and workshops. It is being organized under the “Discover Ethiopia” theme to showcase the best of Ethiopia and further highlight the Ethiopian Millennium.
The event organizers believe that they will attract over 200 local companies such as airlines, hotels, tour operators, importers and exporters and financial institutions.
The event will also host any Ethiopian company that would like to attend with the vision of expanding their customer base to Europe, where the market for Ethiopian products remains untouched.
The expo has another aim namely, promoting tourism, and so the event organizers have sent letters of invitation to the Ministry of Tourism and Culture and to all 13 Regional State Tourism Offices asking them to mount cultural exhibits at the expo.
Each regional state along with all other exhibitors will provided with a 94sq meter pavilion, giving them the chance to hold any kinds of displays.
“We believe that over 450,000 visitors will attend the event and if we are able to succeed in getting just 20% of that number to visit Ethiopia the benefit to the Ethiopian economy and the tourism sector in particular, is conservatively put at approximately 500 million birr,” says the organizers of the expo.
“Discover Ethiopia magazine, the official Expo guide, will be distributed free of charge at expo sites and, in over 16 countries and will have a print run of between 75,000 and 120,000 copies. It targets a readership of over 500,000. Each exhibitor will also get free advertising in the Expo Guide,” the organizers announced.
As the hype of celebrating the Millennium seen years later than the rest of the world has reached new highs, Birhane Deressa Mayor of the Addis Ababa City Caretaker Administration last week laid the cornerstone for the "Millennium Park of Addis Ababa" which would be constructed at the Yeka Sub-city. The park will have a nations and nationalities museum, recreational centers, and other service facilities.
Millennium Festival Councils are been established in all regional capitals, with sixty individuals and businesses already registered to participate in the celebrations.
The Secretariat is working with a recurrent budget of 2.6 million birr, and still plans to raise additional funds from sponsorships and fund-raising events to offer every Ethiopian the opportunity to participate through various projects that will make a lasting difference to the society and the country.
The Ethiopian Millennium Festival Council has 170 members including the six Secretariats, federal and regional officials, government and non-government institutions, investors, prominent individuals, artists, the Ethiopian diasporas and friends of Ethiopia from around the world.
The council was established by council of Ministers proclamation No-117/1997 and is run by a director general and five deputy director generals.

Demand won’t affect 2007 oil market, UN study

By Andualem Sisay

Global oil prices are expected to remain at about 55-60 USD per barrel in 2007 despite the growing demand of developing countries, indicated a UN study entitled World Economic Situation and Prospects 2007, launched at the Economic Commission for Africa (ECA) Friday.
Although oil-demand growth in developing countries will continue to have an upward impact on prices, the counterbalancing effect of flat demand in developed countries, which represent about 60% of the total world oil demand, makes it likely that demand factors will not drive developments in the world oil market and conditions in supply will assume a more important role.
In recent years, there has been stronger oil demand growth from developing countries, which have accounted for 92 per cent of the increase 2006. Oil demand in China will remain strong, as the economy retains its dynamic growth path. China’s oil demand increased by 6.6 per cent in 2005 and is expected to be up by 7.0 per cent in 2006. The Middle East will likewise retain its economically driven oil-demand growth, increasing from 6.1 per cent in 2005 to 6.5 per cent in 2006. In contrast, oil demand in India is estimated to have slowed somewhat, despite strong economic gains as a result of bad weather conditions and, to a lesser extent, the higher oil prices, the study indicates.
In developed countries, oil demand has dropped slightly, 0.02 per cent, in 2006, but with more visible slowdown in the second and third quarters. In the United States, higher oil prices have encouraged fuel switching as some power plants moved to less expensive natural gas, while milder weather and the end of the summer driving season has added to the lower oil demand. Milder weather in Europe, combined with the high buildup inventories, has also contributed to the slowdown in developed-country oil-demand.
The oil price trend in 2006 was marked by both strong gains and considerable volatility. Oil prices reached a record high of nearly 80 USD per barrel in August 2006, following the shutdown of the Prudhoe Bay field in Alaska for pipeline repairs and the heightened uncertainty about the Iranian nuclear issue. However by late October, as growth in oil demand showed signs of moderating and supply-side fears calmed, the price had dropped by about 25 per cent to below 60 USD per barrel.
Overall, oil demand is expected to remain constant in 2007, owing to higher oil prices and the possibility of an economic slowdown in the United States, according to the study.

New U.N. leader to visit Addis

By Groum Abate

The new U.N. Secretary-General Mr.Ban Ki-moon said Thursday he will attend an African Union summit in Ethiopia and a meeting on Lebanese reconstruction on his first major trips abroad, reflecting his intention to prioritize Africa and the Middle East.
The AU summit in Addis Ababa scheduled for January 29th to 30th will address three of the world's most visible hot spots - the Darfur region of Sudan, Somalia, and the Congo.
"Africa will be the focus of many of my priorities, and my first major trip will reflect that focus," Ban Ki-moon told a news conference.
On his way to Africa, Ban will stop in Paris to attend an international donors' conference on January25 focused on the reconstruction in Lebanon following a 34-day war between Israel and Hezbollah guerrillas in the summer.
He said he wanted to "inject new momentum into the search for peace and stability in the Middle East."
The focus of much of the AU summit will be the four-year-old conflict in Darfur in which more than 200,000 people have died.
"It is particularly important that we succeed in putting a strong, well resourced force on the ground," he said, alluding to the widespread belief that the 7,000-strong AU force currently patrolling the region is too small and ill-quipped to adequately protect civilians.
Sudanese President Omar al-Bashir has repeatedly refused, most recently on Wednesday, to allow U.N. peacekeeping troops to replace the beleaguered African force, saying any international force would be "colonialist."
The secretary-general said the international community had to "redouble our efforts to bring stabilization of the political and social situation" in Somalia, especially in light of reports that recent U.S. airstrikes this week might have caused civilian casualties in the country. The United States has denied there were any civilians killed in its efforts to target suspected al-Qaida operatives in the country aligned with retreating Islamic militants.
Ban said he looks forward to speaking with Congolese President Joseph Kabila about continuing the democratization process in Congo. He praised peacekeeping efforts in the central African nation - home to the largest U.N. force, totaling about 17,000 - for helping to stabilize the country and support last summer's free elections.

African debt cancellation campaign launched

By Andualem Sisay

An international campaign launched to demand of G 8 the cancellation of all African debts to support the continent’s fight against poverty and to stop subsidizing developed country farmers and producers in order to conduct fair trade with Africa.
At a press briefing held at the Ministry of Education in Addis, African Initiative Committee of Jimma University’s Student Council, called for all African opinion makers to be involved in their campaign of “saving Africa from debt” which targeted especially the people of G 8 countries to consider the situation Africa is in and push their leaders to cancel 100% of Africa’s debt.
“It is unfair and immoral for our lenders to collect this high interest rate of African debt which always increases exponentially, since the lenders knowingly gave to dictators or oppressive regimes, such as Mobutu and Iid Amin, who in turn collected the money in their individual account. These debts can’t be paid with out worsening a country’s poverty and make African countries rotate in an vicious circle of debt to pay their debt,” says Hunde Dugasa, Ethiopian Higher Institutions Students Union from Jimma University. “Furthermore most lenders use these debts to implement their policies and interests in Africa not for Africans. There fore, from now onwards African full debt cancellation should be every body’s responsibility; we are not the only stakeholders.”
The initiative is planning to collect petitions from across Ethiopia and throughout Africa and send them to the G 8 summit to be held in Germany June 6-8, 2007. campaigners will also wear symbolic black ribbon for one week before the summit to express sorrow.
According to Hunde, a 30% increment has observed in Nigeria in delivery of education and health services after debt cancellation.
Since the initiative committee was officially formed on January 2, 2007, it has begun the campaign among local universities and African colleges. It is also planning to hold discussions about the campaign with the AU and NGOs, embassies in Addis and government officials in the next few weeks. After intensifying support for the idea through out Ethiopian public and private colleges, the plan is to take the initiative to a national body that will widen the plan continentally and at international level.
Between 1970 and 2003 African countries received about 540 bln USD in loan and paid back 580 bln USD in debt service, yet the continent is still saddled with a crippling 330 bln USD of interest. Many of the difficulties of Africa arise from a history of colonization and of cold war tensions; thus it is a historical responsibility for the rest of the world to help Africa break through this legacy, according to the initiative.
Commenting upon the significance of the campaign, Mohamed Dawd, General Secretary of the 12 member committee of African Initiative of Jimma University on his part said: “As we support an African national football team when they play with another continent, all Africans have to join hands for this debt cancellation campaign and unite against poverty.”
As part of the campaign, the initiative is also planning to use the four months before the G8 Summit of June 2007 to campaign against the local subsidization in some lender countries that are driving African farmers and producers out of the international market.
In a related development, United Nation’s new report entitled World Economic Situation and Prospects 2007 launched Friday at ECA in Addis Ababa indicates: “Providing additional official development assistance and debt relief to the Least Developing Countries (LDCs) has been at the heart of many multilateral and bilateral initiatives. These commitments if fully implemented should help to support the domestic actions of LDCs aimed at reaching the Millennium Development Goals.”

Strengthening alternate dispute resolution mechanism

By Andualem Sisay

After giving a week-long skills training, Ethiopian Arbitration and Conciliation Center (EACC) graduated 94 Social Court judges and registrars who are currently providing mediation services at grass root level by implementing the provision of Alternate Dispute Resolution (ADR) mechanism.
The graduates took a training workshop from January 8-13, 2007 at the Ghion Hotel by an expert EACC invited from Canada. “The training shall equip the participants with the necessary skills to provide improved resolution of disputes through mediation mechanism,” said Woubshet Ayele Secretary General of EACC. “The specific ADR skills training enable participants to pick their area of expertise and receive specialized training on the subject.”
Guest of honor Mayor Birhanu Deressa in his opening statement also indicated the significance of the training in saving the time and energy spent in long formal court proceedings.
General ADR training deals with general skills on how arbitration, mediation and conciliation are conducted. To this effect the center previously trained 160 general mediators. The center also provides professional training on general and specific ADR to those professionals who wish to train as mediators, arbitrators and conciliators.
In addition, specialized ADR skill training is also given by the center on labour mediation, family mediation, construction mediation and commercial mediation mediators for 133 mediators.
So far, the center has organized and held three professional training workshops by coordinating with foreign professionals. The first workshop was conducted by an American (USA) expert while the second was given by Canadian experts.
Ethiopian Arbitration and Conciliation Center was established in August 2004 by a group of Ethiopian lawyers with the aim of providing an alternate mechanism for dispute resolution. In the past twenty eight months. The Center has been undertaking various activities to facilitate the ADR services at its offices on Bole Road.
So far, the Center has handled nine cases with seven of these cases worth almost 104 mln birr resolved through arbitration. While two files worth about 28 million ETB are still outstanding, according to the Secretary General.
The Center has also entered into an agreement with the Supreme Court, in order to have a pilot project to provide court annexed mediation services. According to this pilot project, high court judges shall refer to EACC those cases that they think are best suited to be resolved through mediation at the Center.
“According to this agreement, up to 80 files that are valued at about 40 mln birr can be referred to the center. The center has now prepared mediation halls, 'intake forms' to record and process those cases that will be referred for mediation under this scheme. In addition, the Center has organized specially designed offices where mediation can take place,” says Woubshet.
Ethiopian Arbitration and Conciliation Center has also prepared a draft law on ADR which will soon be finalized and presented to the proper authority.

US air strike a one off operation: PM Meles

By Eskinder Michael

A solitary air strike on the peninsula of Rascamboni by the US Air force had led everyone to believe that the US was finally involved to the war, but Prime Minister Meles Zenawi seemed to calm down speculations as he stated that the attack was a one time operation.
“The US found what they call a target of opportunity as they had credible information that Al-Qaeda members were there and they believed that if they didn’t act, the target would move soon. This is not a normal practice by the US in this war and I believe it will stay that way,” he said.
The strike had been carried out on 20 suspected Al-Qaeda members where 14 were put out of action, according to the PM, but the whereabouts of the rest was unknown. The PM however said that Ethiopian troops haven’t yet confirmed that the people killed were Al-Qaeda members. “Personally, I have no problems with the strike if the target is an identified terrorist,” the PM resounded.
“The bombings haven’t killed any civilians and my troops have assured me of that. At the moment, there are no US special forces on the ground nor is there any cooperation between the US and the troops on the ground (TFG) and Ethiopian troops,” he said.
The PM however concurred with the fact that the US may have shared information with the Ethiopian side and said that there would be more attacks.
“There hasn’t been any collateral damage during the bombings, but if more attacks come, the more likely that there will be collateral damage. I would rather our troops on the ground take care of matters. I wouldn’t want this to be a normal practice,”
Reports of Ethiopian soldiers being targeted by UIC soldiers and being killed was refuted by the PM who said that not a single Ethiopian soldier had either been wounded or killed since entering Mogadishu.
Ethiopian troops are still expected to leave Somalia in the given time frame and the PM expects the arrival of peace keeping troops to facilitate the withdrawal of Ethiopian troops.
“Though it might not mean that at midnight next Tuesday we will leave Somalia, we will leave in the specified time. We believe that the ‘Burundi Model’ peacekeeping force will be the best way to approach this matter. This model will see African peacekeepers move in and stabilize the situation, but because such forces can’t be sustained, international peacekeeping forces will take over,” he said.
The PM also announced that the Temporary Federal Government (TFG) had asked the Ethiopian government to train its military and its police forces and that the latter had accepted the request.

Ethiopia making strong MDG progress

By Groum Abate

Ethiopia is making steady progress towards the Millennium Development Goals and has achieved remarkable results in key areas, African Business magazine reported.
Detailing a collection of data on 53 African countries using material from 1965 to 2004, it singles out Ethiopia for praise in key areas and gave the country a high overall rating, especially in education, quoting the World Bank's Africa Development Indicators 2006.
The report said that in 1991 only 27 per cent of Ethiopian children attended school while the gross enrolment rate was up to 77 per cent in 2004, before reaching 85 per cent in October 2006.
According to the report, Ethiopia was also given high scores in improved public sector management, civil service reform, decentralization and capacity development prog- rammes.
Meanwhile, the magazine also reported that Ethiopia is undertaking the construction of three hydro projects that should revolutionize the country's power sector.
The Beles, Gilgel Gibe II and Tekeze schemes are scheduled for completion by 2010 and would cost a total of 1.4 billion US dollars, the report said.
The Italian government has provided a $277 million USD soft loan to finance Gilgel Gibe II, while the Tekeze Hydro Power Project (THPP) on the Tekeze River is being constructed by the National Water Resources and Hydropwer Engineering Corporation.
Development of the latter began in 2002 and is due for completion at the end of 2007.
The report said that Ethiopia and Congo have potential for large-scale hydropower schemes that would enable them to export electricity to power-hungry areas.

Djibouti condemns US Somali raids

By our staff reporter

Djibouti, which hosts a large United States anti-terror base, has condemned this week's US air strikes in neighbouring Somalia.
Foreign Minister Mahmoud Ali Youssouf told the BBC that the raid was counterproductive to achieving peace.
He said his government had not received prior warning about the strikes, which are reported to have been launched from the US base in Djibouti on Monday.
The US says it was targeting al-Qaeda suspects but says they were not killed.
Somali's interim government has backed the air strikes, in which a US official says that Somalis linked to al-Qaeda were killed.
Location of militias and US Navy patrols
The government backed by Ethiopian forces has recently ousted Islamists, accused of sheltering foreign al-Qaeda operatives, from much of the country.

The Islamists deny any links to al-Qaeda.
Deaths 'justified'
Mr Mahmoud also said his government was very worried about reports of Somali civilian casualties and that past foreign military intervention in Somalia had not brought about the expected result.
This is presumably a reference to the last US intervention in Somalia, from 1992-94, which ended in a humiliating withdrawal following the killing of 18 US troops.
The 1,500-strong US Combined Joint Task Force - Horn of Africa was set up in Djibouti following the 9/11 attacks on the US.

Somalia declares state of Emergency

Somalia's parliament declared a state of emergency on Saturday for a period of three months in order to restore security in the country after several weeks of warfare ousted rival Islamists.
"A three-month state of emergency has been passed. If need arises for the government to extend the period then the president will have to ask parliament for approval," second deputy speaker Osman Elmi Boqore told parliament.
He said 154 members of parliament voted for the law, while two voted against it.
Somali Prime Minister Ali Mohamed Gedi announced plans for martial law late last month after Ethiopian-backed government forces drove out Islamists from the capital Mogadishu.
Parliament has been debating the motion in the last few days, aiming to maintain control of a nation without effective central rule since the 1991 overthrow of a dictator.
The Somali interim government is seeking to install itself in the capital - one of the world's most dangerous cities.
(Compiled from various media agencies)

Gilgel Gibe III construction underway

By Eskinder Michael

Salini Construttori has officially started the construction of the Gilgel Gibe III Hydro Electric power Project, the largest ever power production plant in the country.
Salini Construttori signed the agreement with the Ethiopian Electric Power Corporation (EEPCo) to construct the 16.8 billion birr (1.75 billion USD) hydropower plant, to increase local power generation capacity and to export the surplus to neighboring countries.
The Gibe III hydropower plant is being built in Omo-Gibe River Basin, some 240 km (149 miles) southwest of the capital Addis Ababa. Gilgel Gibe III, the 14 billion birr baby of Ethiopian Electric Power Corporation (EEPCo) is expected to boost power distribution in Ethiopia to 1,875 MW.
Construction by Salini was started at the end of December, with aims of keeping the completion date of 2013 a realistic target. The construction of dam, tunnel, distribution and water diversion works are underway.
The project is being financed jointly by the Ethiopian government, the European Investment Bank, the African Development Bank and through contractor’s equity.
Apart from Gibe III, three other hydro power plants costing a combined 1.4 billion dollars and with an aggregate capacity of about 1,200 MW are also under construction.
The project which will have a dam 240 meters high could carry 14.5 billion cubic meters of water. It is to be constructed with filled in stone, thus becoming unique both locally and internationally.
The project is expected to have 10 power houses which give it the largest capacity of power generation among all the other projects under construction in the country with a professional forecast of over 300 million euros a year in revenue.

UK scientists look for evidence of climate change in Ethiopia

By our staff reporter

A group of Welsh and Scottish scientists traveled to Ethiopia to study climate change with the aid of a lake bed that dried up after the last ice age.
The team will start by drilling into the lake bed, eventually removing part of the core of Lake Tana for study at Aberystwyth University in Wales. The core should help the scientists to build up a historical picture of climate change at the site. Lake Tana is particularly sensitive to changes in rainfall.
Dr Sara Davies, the scientists team leader, plans to drill 80 meters into the lake bed - a depth that she believes could take her back around 100,000 years. She expects analysis of the sediment to show how the lake has changed. Knowing when droughts occurred in the past could help experts to predict climate change.
'Working with our colleagues at St Andrews in Scotland and in Ethiopia, we will look at microscopic algae and pollen from the base of the lake that is the source of the Blue Nile. If the lake dried out, it could have big implications for the many societies along the Nile that rely on it for water,' said Dr Davies.
A drought across sub-tropical Africa about 18,000 years ago probably led to the collapse of the Old Kingdom of Ancient Egypt 4,200 years ago. Global warming could cause a similar 'climatic reorganisation', say climate change experts, if ice sheets in the northern hemisphere continue to melt at current rates.
Lake Tana is the largest lake in Ethiopia. It is approximately 84 kilometres long and 66 kilometres wide, and is located in the country's north-west highlands. At its deepest, the lake's bed is 15 meters below the surface.

Only few are on track of meeting MDGs

By Andualem Sisay

Most African countries will not be able to meet the Millennium Development goals (MDGs) which require them at least seven per cent GDP growth annually. Africa’s GDP has expanded by 5.6 per cent in 2006, continuing the momentum of strong growth achieved over the previous three years, forecasts a UN study World Economic Situation and Prospects 2007 launched Friday at the ECA in Addis Ababa.
From 1998 to 2006, only seven countries out of the 52 monitored by the Economic Commission for Africa (ECA) achieved an average real GDP growth rate of more than 7 per cent, considered by some approaches as the minimum growth rate required to halve extreme poverty in the region by the year 2015. By this measure and at current trends, few countries would be on track to achieve the MDGs.
“Hence, the continent faces the dual challenge of further increasing growth rates and sustaining these rates over an extended period. This will require, next to enhanced expenditures for human development, sustained improvements in domestic investment climate to promote private-sector activity, improved provision of infrastructure, measures to minimize the adverse impact of external shocks on incomes of the poor and, most importantly, progress in the diversification of production and exports,” the study advices.
Growth is highly concentrated in a narrow range of activities, making many African economies extremely vulnerable to exogenous factors such as weather conditions, terms of trade developments and aid flows. As a result, most African countries have been unable to sustain sufficiently high growth rates over the medium term.
According to the forecast of the study, Sub-Saharan Africa excluding Nigeria and South Africa, are expected to register 6.6 per cent GDP growth; whereas, the rest of the African countries are expected to register 5.7 per cent GDP growth.

Electric Power Consumption
(kwh per capita)

Telephone mainlines
(per 1,000 people)

Benin

Congo

Ethiopia

Kenya

Senegal

Zambia

76

82

25

120

135

583

9

7

5

10

22

8

Source: World Bank, World Development Induicators, 2005

Derg leadership sentenced to life

By Eskinder Michael

The trial of former Ethiopian dictator and author of the ‘Red Terror’ killing spree, Mengistu Hailemariam and other top-level officials from the former military junta came to an end with the court sentencing them all to life imprisonment.
Ethiopia's former Marxist leader, who escaped an expected death sentence, was also found guilty of illegal imprisonment and abuse of power. Though death sentences were expected for the former leaders, the three-man panel of judges ruled that they must temper justice with mercy, which was the reason why the defendants did not get the death penalty.
All the defendants including Mengistu were found guilty of genocide in a trial that took well over a decade. The case ran for an unprecedented 14 years before the courts decided that Mengistu and his junta, except one of the accused were all guilty of genocide.
"Considering the age of the accused... and the state of their health... the court has rejected the prosecution's call for the death penalty and passed a sentence of life imprisonment," the court stated.
Outside the court, members of the victims' committee argued however that the 70-year-old Mr Mengistu deserved the death penalty. They vowed to appeal against the verdict. Chief Prosecutor, Yosef Kiros, also said the sentencing would be appealed.
The Court decided by majority vote that it would not accept the death sentence by also considering that most of the accused are suffering from illness due to age and can serve their country with their remaining lives.
Those with the minority votes in the Court argued that the convicts should have been sentenced to death for they committed genocide with hatred and abused their powers.
They also said Colonel Mengsitu Haile-mariam, who, they said was mastermind of the genocide, Captain Fikre-silassie Wogderess, Colonel Fisseha Desta, Major Berhanu Bayeh, Captain Legesse Asfaw, Major Haddis Tedla and Captain Gessese Wolde-kidan, the highest ranking officials and who were heavily involved in the genocide, should have been sentenced to death.
Mengistu, along with the other defendants was accused of 210 counts of charges involving genocide, crimes against humanity and systematic human rights violations.
Mengistu, who now lives in Harare, Zimbabwe as one of Robert Mugabe’s favored guests, took power in a military coup in 1974 by over throwing Emperor Haile Selassie, Ethiopia longest reigning emperor. Mengistu, who seemed more intent on destroying his enemies than building an economically strong state, started by killing the former emperor and burying him under his office to go on and went on to kill about 60 imperial ministers and other civilians he believed were his enemies.
Mengistu then followed by creating a Marxist state, but never pulled the nation out of poverty. Mengistu’s first few years in power were characterized by fierce opposition from a group that initially supported his political ideology, the Ethiopian People’s Revolutionary Party, but then accused Mengistu and his coup leaders, known as the Derg, of fascism.
Mengistu responded to their attacks by allowing his police and military officers to arrest, detain and kill anyone suspected of being part of the counter-revolutionary group. This campaign came to be known as ‘Red Terror’.
In 1991, after 17 years of military rule with the strong support of the then Russia behind him, the Derg was deposed by the EPRDF, a coalition of regional and ethnic rebel groups led by current Prime Minister Meles Zenawi. Mengistu fled to Zimbabwe shortly before Addis Ababa fell to the rebel alliance.
The new government quickly set up an investigation into the Derg’s crimes and a trial began in 1994. Some 5,200 Derg collaborators were accused of various charges and many have been tried in absentia.
Human rights groups say some half a million people were killed during Mengistu’s rule. Efforts to extradite the former dictator from Zimbabwe have proved futile.
The Court has meanwhile disclosed that the death sentences passed on other genocide perpetrators such as Major Melaku Tefera, Private Eshetu Alemu, Sergeant Getachew Tekeba, Captain Basha Kebede Ali and Seargent Kebede Kibret shall stand.

Georgetown University honors First Lady

By Groum Abate

Georgetown University announced that it will award the fifth annual “John Thompson Legacy of a Dream Award” to the Organization of African First Ladies Against HIV/AIDS for its leadership and service toward the ideals of Dr. Martin Luther King, Jr.
The First Lady of Zambia Maureen Mwanawasa, the First Lady of Rwanda Jeannette Kagame, and the First Lady of Ethiopia Azeb Mesfin will receive the award on behalf of the organization, and their work will be honored during the annual “Let Freedom Ring” Concert to be held at the John F. Kennedy Center for the Performing Arts on Monday, January 15.
“This award recognizes those who have shown the courage and determination to promote compassion and create social change in the way Dr. Martin Luther King, Jr. envisioned.” said Georgetown University President John J. DeGioia. “Mrs. Mwanawasa, Mrs. Kagame, and Mrs. Mesfin have worked tirelessly to combat discrimination against people living with HIV/AIDS, and they embody our vision for this award. We are grateful for their commitment and their leadership in the fight against HIV/AIDS.”
In 2002, a group of nearly 40 African First Ladies formed the Organization of African First Ladies Against HIV/AIDS in an effort to raise awareness, advocate for prevention initiatives, and promote treatment, care and support programs for people living with HIV/AIDS. The group has sponsored several prevention campaigns targeting youth and adults, and has led various initiatives to expand access to treatment and support programs across Africa.
In 2005, the First Ladies launched the “Treat Every Child as Your Own” campaign to promote adult responsibility for the protection of all African children the from the dangers of HIV infection.
Mrs. Maureen Mwanawasa, First Lady of Zambia, serves as the organization’s chairperson, and Mrs. Azeb Mesfin, First Lady of Ethiopia, serves as vice-chairperson. The First Lady of Rwanda, Mrs. Jeannette Kagame, served as the organization’s chairperson from 2004-2006.

Fifty MBA students graduate from Open University

By Andualem Sisay

British Open University in Ethiopia graduated 50 Masters of Business Administration (MBA) students today, January 14, 2007 at the Addis Ababa University Faculty of Business and Economics.
This fifth cohort of students includes government and non government students sponsored from the public and private sector. The graduates have been studying through the OU Business School partnership with the British Council in Addis Ababa and the Addis Ababa University College of Commerce since May 2003.
Commenting at the graduation ceremony, Professor James Fleck, the School’s Dean, said: “We are proud that so many students in Ethiopia are reaching the high standards required for this award. The MBA is an internationally renowned degree especially developed for senior managers who are seeking the highest quality and advanced management training. The OU Business School’s program in Ethiopia continues to widen student participation and equip its graduates with the skills to play a vital role in the future of the country.”
Since its establishment in Ethiopia in 1992 with the aim of equipping students with essential management skills to assist in the socio-economic development of the country, the total number of MBA graduates of OU Business School’s MBA project exceeds 230 in Ethiopia. This figure includes Prime Minister Meles Zenawi.
The program involves OU Business School tutors from the UK and mainland Europe traveling to Addis Ababa to conduct tutorials and residential schools. The sixth cohort of students is currently studying on their first elective course and are expected to finish their final course in November 2008. According to the press statement sent to Capital, the seventh cohort is expected to start in May 2007.
The OU Business School has 30,000 students in the UK and in more then 30 countries. Since its inception in 1983, more than 150,000 managers have studied an OU Business School course at Certificate, Diploma or MBA level. The University is ranked fifth of all UK universities in the table for teaching quality, according to the Sunday Times University Guide 2006.

WB donates $175 mln to fight food insecurity

By Eskinder Michael

The World Bank Group board last Tuesday January 9, 2007 approved a $175 million USD donation to help food insecure people in Ethiopia.
The grant finances the second phase of an existing WB operation, the Productive Safety Net Program (PSNP), which is reaching over 7 million of the poorest Ethiopians through public works and direct grants. The targeted beneficiaries of the program are chronically food insecure households which are unable to secure sufficient food for their families year after year. The grant will provide continuing funding for the program, while supporting improvements in program governance and efficiency.
The PSNP was initiated in 2005, after the Coalition for the War against Hunger—comprising the Government of Ethiopia, its development partners, and key NGOs-- pushed for more sustainable alternatives to the annual provision of large amounts of humanitarian food aid to prevent starvation. The program initially reached about 5 million chronically food-insecure people, then was scaled up in 2006 to reach 7.23 million people. The PSNP supports a large-scale public works initiative which pays wages to food insecure but able-bodied citizens. For those physically unable to work, the program provides direct grants.
Ethiopia’s vulnerability to famine has worsened over the past two decades. When needed, food aid saves lives. However, the Government of Ethiopia and its international partners have wanted to avoid a situation where a segment of the population remains chronically dependent on international food aid. Indeed, by 2005, food insecurity, and widespread dependency on humanitarian aid for survival, had become a pressing national security risk. The PSNP was devised as a sustainable solution.
To boost the productivity of small scale agriculture in targeted areas, the PSNP jobs program has supported a massive effort of environmental restoration. Some of the tangible results: more than 250,000 kilometres of terraces; 20,000 ponds and 2,000 springs; 17 million newly planted trees and the construction and maintenance of 10,000 kilometres of rural roads. By replacing food aid with jobs and cash payments, the program helps stimulate rural economies while also addressing some of the underlying causes of food insecurity. The added benefit of improving public infrastructure and maintaining community assets through public works will also bring long term improvement to rural livelihoods.
“The first phase of the Productive Safety Net Program has dramatically lowered dependence on emergency food aid; instead, we’re supporting targeted populations through predictable transfers for productive investments, which represent a first real opportunity to bring about lasting change by addressing some of the root causes of food insecurity,” said Ishac Diwan, Country Director for Ethiopia. “In the next phase the Government will continue the jobs program and direct grants, while strengthening program governance. The program also introduces a contingency fund to be triggered without delay in the event of a drought.”

MIDROC to enter glass, textile business

By Eskinder Michael

MIDROC Ethiopia, a multi billion birr business owned by Sheikh Mohammed Al-Amoudi, has announced that it has plans to enter the glass, brick and textile business as the new Ethiopian Millennium turns.
MIDROC is the biggest business entity in the country as it is involved in multiple businesses.
With the factories slated to be in three different states, it was learnt that the textile factory would be constructed in the town of Mekelle with 280 million birr before the turn of the millennium. The capital outlay for the other two factories hasn’t been disclosed as yet.
Sheik Mohammed Al-amoudi has received a vast area of land for an agro-processing venture which he is set to establish in Oromia region.
The investment agreement for the agro-processing and gemstone development venture was signed by Al-amoudi with the region in 2004. This has taken Al-amoudi’s total investment in Ethiopia to 1.5 billion dollars. The billionaire has previously invested more than 1.3 billion dollars in various fields including construction, real estate, manufacturing, mining, and services such as hotels, engineering and gas distribution.
Al-amoudi recently paid over 45 million birr to acquire the Bahir Dar resort, the largest of its kind in the country.
MIDROC Ethiopia had years ago also paid 12.5 million USD to acquire the Gojjam-Gondar Agricultural Development, 27 million USD for WushWush and Gumaro Tea Development Enterprise and Tea Production and Marketing Enterprises, and 26 million USD for Kenticha Tantalum Mining Enterprise.
Sheik Mohammed Hussein Al-amoudi has been ranked 77th out of 739 billionaires in the world, progressing, 166 steps higher from last year’s position.