China-Africa relationship alarms former US Ambassador
“…what’s the alternative?” Business community
By Andualem Sisay
Former United States Ambassador to Ethiopia (1996-1999), David Shinn, discussed with the business community on the China-Africa relationship on Thursday, June 28, 2007 at the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA).
The former ambassador, who is now a scholar at George Washington University, is visiting Ethiopia as part of his program of collecting facts on the China-Africa relationship from seven African countries, for a book he is preparing with a colleague.
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Facility to enhance private sector competitiveness
By Andualem Sisay
The Ethiopian government is to introduce a new instrument, the Ethiopian Competitiveness Facility, to better address the needs of the private sector in their effort to become internationally competitive.
The facility will have different windows to address the development of comprehensive export capabilities both at firm and industry levels, including the development of clusters and institutions that support market linkages.
MORE
City auctions apartments for 7,000 br/sqm
To draw winners for 2nd round condominium allocation
By Groum Abate
The Addis Ababa Caretaker Administration has auctioned over 50 G+1 shared apartments near the CMC area.
The auction where many interested parties participated on and which took place at the City Hall on Thursday, June 28, recorded a price of 7,000 birr per square meter as the highest bid.
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India’s External Affairs Minister to pay historic visit
Launches e-Network project
By Tedla Desta
In what is the highest level official visit in decades by an Indian government official to Ethiopia, his Excellency Pranhab Mukhejee, Minister of external affairs of the republic of India is expected here on July 4, 2007.
As part of his official visit to Ethiopia from July 4-6, 2007, Pranab Mukherjee, India’s Minister for External Affairs will inaugurate the Pan-African e-Network project, Capital learnt.
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Five star hotel in Langano by AVC
By Tedla Desta
After several delays, the African Vacation Club, Ethiopia has managed to build Langano Vacation Club,a five star hotel which will be ready for business in December 2007.
According to the heads of the company, the current stage of construction has been reached following a number of requests for adequate land. They had requested 100,000 sqm of land from the Oromia Regional Government but were given just 30,000sqm.
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EAL to distribute leased plot to employees
By our staff reporter
Ethiopian Airlines is going to distribute the plots it leased from the Addis Ababa Caretaker Administration to its over 2,000 employees for residential house construction purposes.
The airlines contracted a local consultant, SKAS, for the design of the houses at a cost of over one million birr presented the design to the airline.
The Human Resources Department with the airline, which is responsible for locating the registered applicants for the plot is facilitating for the transfer of the plot to the employees.
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African countries launch air safety agency
By our staff reporter
African countries launched a body on Thursday to improve air safety on the continent, long viewed as the most dangerous place in the world to fly.
The opening ceremony coincided with a new disaster; an Angolan Airlines Boeing 737 plane carrying 78 people crashed into a building upon landing in northern Angola, killing at least six people and seriously injuring others.
The African Civil Aviation Agency (ACAA), to be based in the Namibian capital Windhoek, will train pilots and co-ordinate air travel stretching from Cape Town to Cairo.
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AAWSA to increase water production
By Tedla Desta
The Addis Ababa Water and Sewerage Authority intends to increase its current 86.5 million cubic meter production of water from surface and ground water sources, to 97 million cubic meters in the coming millennium, it was disclosed.
The Authority’s envisaged 2000 budget year plan was divulged together with the announcement of the City Administration’s proposed budget plan.
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Over Six bln Birr budgeted for Addis Ababa
By Tedla Desta
The Addis Ababa City Caretaker Administration has budgeted 6.5 billion birr for the coming fiscal year, it was learnt.
The latest budget exceeds that of this ending year’s by 1.34 billion birr.
According to the City Administration the budget would be spent on the execution of different activities it has proposed.
Of the total, 74% is allocated to capital expenses while the balance is for regular expenses.
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WTO accession improves business in Ethiopia
By Andualem Sisay
Contrary to the fears of many in the business community, Ethiopia’s future accession to the World Trade Organization (WTO), is said to create opportunities for improving business and the investment climate in the country.
This was indicated by William Jackson, Director for African Affairs Office of the United States Trade Representative, who presented his paper at a workshop, in Addis Ababa from June 27- 28, 2007. The Director, in his paper entitled, AGOA, Ethiopia, and trade competitiveness” stated that the ongoing process of Ethiopia towards the WTO accession reinforces and accelerates necessary improvements to the trade regime.
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Loop comes back
By Andualem Sisay
The Ministry of Health (MoH), in conjunction with the Amhara Regional Health Bureau (ARHB) announced a new health initiative that will reintroduce the Intrauterine contraceptive device (IUCD), commonly known as loop, in the Amhara Region.
Built around the slogan, “Reliable as my choice... Reversible when I decide,” the campaign will talk about the IUCD’s unique benefits as a family planning option.
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Authority to invite commercial radio broadcasters
Two commercial radio operations’ licenses cauld be canceled if they don’t start broadcasting from their own stations before October.
By Andualem Sisay
The Ethiopian Broadcast Authority announced on Tuesday June 26, 2007, that it is planning to issue additional broadcast licenses for commercial radio next year.
The licenses will be given after the authority advertises and invites investors interested in the business. This was indicated at the press briefing the Ethiopian Broadcast Authority called to elaborate on the advantages of the new Broadcast Law.
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EHPEA launches code of practice for flower growers
By Andualem Sisay
The Ethiopian Horticulture Producers and Exporters Association (EHPEA), launche a code of practice for sustainable flower production on Friday, June 29, 2007 at the Hilton Hotel.
The main reason for introducing the code of conduct is to address the needs and concerns of the international market place and also to promote the implementation of sustainable production practices and to address the concerns and needs of the community here in Addis Ababa.
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Ethiopia needs to tackle urban poverty
Country obtains 54% of GDP from urbanites
By Andualem Sisay
Even though, only 17 per cent of the population lives in cities and with most under the poverty line, Ethiopia needs to address the problem of these people from whom it obtains 54 per cent of its gross domestic product (GDP).
The paper presented at the launching of State of World Population Report 2007 at the Economic Commission for Africa (ECA), compound Africa Hall on June 27, 2007 stressed the need for the country and its development partners to address the issue.
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Ethiopia expects many VIPs for new Millennium
By Tedla Desta
As the 3rd Ethiopian Millennium is approaching fast attempts at bringing world leaders and artists is being conducted by several organs working on the celebration of the historic occasion, sources told Capital.
Though the sources stated that they haven’t obtained confirmation from the personalities they are actively working to secure their participation
Some of the expected are the officials from the United States, heads of state from Caribbean countries, the Bob Marley families, some as yet unnamed African leaders and hip hop and Rap artists from the US.
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Serawit to establish engineering company
By Tedla Desta
Promoter and actor Serawit Fikre, is to launch a water well drilling company called Semayawi Feres Water Engineering, he told Capital.
The owner of the company said that it was established with the aim of changing the lives of rural women. Semayawi Feres Water Engineering Company will perform charitable activities as part of its operations.
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Conflicting viewpoints on APRM
By Andualem Sisay
A paper on the achievements of the African Peer Review Mechanism (APRM), was presented on June 22, 2007. It was the first of a series of lectures entitled “Good governance and democracy in Africa”, organized jointly by Forum for Social Studies (FSS), and the Heinrich Boll Foundation, with a view to foster critical debate on the issues of governance and development.
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China-Africa relationship alarms former US Ambassador
“…what’s the alternative?” Business community
By Andualem Sisay
Former United States Ambassador to Ethiopia (1996-1999), David Shinn, discussed with the business community on the China-Africa relationship on Thursday, June 28, 2007 at the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA).
The former ambassador, who is now a scholar at George Washington University, is visiting Ethiopia as part of his program of collecting facts on the China-Africa relationship from seven African countries, for a book he is preparing with a colleague.
According to him, African countries who want to take China as a development role model need to be very careful, as China’s model may not work to individual countries in Africa.
The lack of concern for the safety of workers, the environment, imbalance and unfair business relationship with Africa and non interference policy of China into the individual country’s political situation, are among the reasons that triggered the former Ambassador and his colleague to come-up with the idea of writing a book on the China-Africa relationship.
Ambasador Shinn mentioned many challenges that the Chinese are facing in Africa while doing business in the continent. He pointed out the resistance of workers following the death of people in a Zambian copper mine due to the inattention of a Chinese contractor.
Describing some of the obstacles the Chinese faced in Africa from civil societies and governments such as Angola during the 3.5 bln dollars oil deal, “The Chinese are not so good in dealing with civil societies,” he said. The deal was cancelled because of the Chinese demand to import all the oil production of Angola.
He also described the recent tragedy that claimed the lives of nine Chinese and 64 Ethiopians at an oil field in eastern Ethiopia, as one of the resistances that China is facing while doing business in Africa.
It is recalled that the Ogaden National Liberation Front (ONLF), who took responsibility for the killing, announced that they would not let the government of Ethiopia exploit oil from the Ogaden, the area they have been fighting to liberate from Ethiopia to form a greater Somalia in the Horn of Africa. In a statement following the attack, they also declared that they have been warning China to stop searching for oil in the area.
David shinn also seemed to be concerned about the share of American and Western interests from African oil and minerals. Out of the total imports of China from Africa, 85 per cent is taken by oil and minerals from five African countries, he said. Though China’s trade with Africa accounts for only 3 per cent, 50 per cent of African oil export is taken by China.
“What is behind all this?” asked a businessman at the briefing. “Due to the lower cost of Chineses products, which is within the income of most Ethiopians whether we like it or not, we buy from China. We can’t afford to buy US or western products because they are expensive.”
The Chinese have become partners of Africa at the exact time when the West and the United States are busy with international issues such as terrorism and the Middle East, pointed one participant of the discussion.
“The partnership opportunity with China is an alternative for Africans who are tired of their old Western colonizers, who have now turned their relationship with Africa to a master-servant relationship,” said another.
“It is a fact that our infant factories are closed because of the cheap products imported from China in the name of free market. But what choice do people with the lowest purchasing power in the world have?” asked another.
According to the business community, although the US and the West have provided opportunities for African countries to export their products duty and quota free, most African countries whose products are agricultural can not effectively use the opportunity due to the strict export criteria imposed.
“How could you expect us to use the Africa Growth Opportunity Act, while you have a strict gate keeper like Food and Drug Administration (FDA) in the USA?” asks one businessman who has spent more than 35 years in private business in Ethiopia. “Most African countries can not compete in the global market with China, the West or the United States; unless these developed nations first work to solve the constraint of the supply side of African countries.”
African countries are choosing Chinese partners because they get tangible infrastructure developments such as roads and bridges construction, according to one member from the Chamber of Commerce.
Responding to some of the issues raised by the business community. Shinn highlighted that the United Sates is also working on tangible development challenges of Africa such as HIV/AIDS, malaria and tuberculosis.
In addition, he cited the support that his country is providing to private sector development through the United States Aid for International Development (USAID).
China-Africa relationship should be mutually beneficial and should take into account workers safety, environment and decent trade practice, he stressed. Shinn hopes to come up with recommendations on the future relationships when he concludes his book.
Facility to enhance private sector competitiveness
By Andualem Sisay
The Ethiopian government is to introduce a new instrument, the Ethiopian Competitiveness Facility, to better address the needs of the private sector in their effort to become internationally competitive.
The facility will have different windows to address the development of comprehensive export capabilities both at firm and industry levels, including the development of clusters and institutions that support market linkages.
It is a restructured effort of the government focusing on export development, which is based on the lessons learnt from the past two years, according to Tadesse Haile, State Minister of Trade and Industry. “The effort to develop and nurture institutions that support industrial competitiveness is an advanced version of addressing the capacity gap both at industry and firm level,” he said.
It is one of the strategies that the government chose to move the country to a knowledge-based economy in order to keep up with global competition. The information on the new facility will soon be widely disseminated about the implementation arrangement and how to use the facility, according to Tadesse.
The State Minister highlighted this in his paper presented at the conference that took place on the theme, “Accelerating Private Sector Led Growth in Ethiopia: Investment Climate and Competitiveness,” from June 27-28, 2007 in Addis Ababa.
Shortage of capital resulting in under-investment, lack of inter-industry linkages and low productivity due to the use of low technological inputs and skills are among the major challenges of Ethiopian infant industries. In addition, the sector is also suffering from lack of modern management skills and weak linkage to market, and low level of institutional capacity at public, community and individual firm level to deliver required services.
The Industrial Development Strategy (IDS), of Ethiopia, the topic on which he presented his paper, is the bridge that takes the country “from success in the agricultural sector to success in the industrial sector”.
Based on the Agricultural Development Led Industrialization (ADLI), that focuses on value addition of agricultural outputs and encouraging agro-processing industries, IDS has identified some sectors as priority areas that deserves support and attention of the government.
Textiles and garment, meat, leather and leather products, agro-processing industries, construction industries, and micro and small scale industries are the areas that the government is focusing on.
Even though the industrial base in the country is low, contributing only 13.5 per cent of the total Gross Domestic Product (GDP), the contribution of the manufacturing sector to the total export has shown increment on average of 20 per cent over the last four years.
During this period, structural shift has been observed in the leather sector. Many of the existing tanneries are upgrading themselves from the production of semi-processed leather to crust, finished leather and glove leather.
The country has also begun exporting shoes worth 0.7 mln USD per month to the European market. The ever growing export of flowers is also expected to generate some 70 mln USD per annum at the end of this Ethiopian fiscal year.
As part of export diversification strategy of Ethiopia, other new products are also entering the international market. These products include tahina (agro-processed sesame), tea, sugar, ethanol, molasses, olio raisen, honey, car-tyres, roasted coffee, broom corn, beverage (mostly wine and beer), tantalum and gold.
City auctions apartments for 7,000 br/sqm
To draw winners for 2nd round condominium allocation
By Groum Abate
The Addis Ababa Caretaker Administration has auctioned over 50 G+1 shared apartments near the CMC area.
The auction where many interested parties participated on and which took place at the City Hall on Thursday, June 28, recorded a price of 7,000 birr per square meter as the highest bid.
In a related development, the Addis Ababa Caretaker Administration Housing Agency has completed preparations for the distribution of condominium houses it has built in the past years to residents of the city to curb the severe housing problem in the metropolis, starting from July 8.
The city would present keys to the lucky winners of the condominium houses who have been waiting for the last two years after paying partial or total prices of the houses they have won.
The city has sold the houses for over 105 birr per square meter to the lucky winners, where all are waiting for the announcement to take their houses.
The city has also announced that it will draw to select winners for the rest of the houses that are under construction or completed.
Over 500,000 residents of Addis have been registered to be beneficiaries of the low cost housing project and the lucky 20,000 citizens were notified of by September 2005, following draws that were held at the Addis Ababa City Administration office.
The winners were announced through the city’s newspaper, Addis Lisan, and had their names posted in the different sub cities they had registered.
So as to enable people with low income to acquire their own homes, the agency has constructed different sized apartments – studios, one bedroom apartments and condominiums with a living room and two or three bedrooms.
Those who were ready to pay immediately the entire amount fixed by the agency for each residence were given priority in the distribution.
The administration also further decided to favor women by conducting the draw for 30% of the houses among women only while the rest (70%) was drawn among both sexes.
Should a winner at the draw does not take the apartment for various reasons – unable to afford the balance payment, or already owns a house - then those apartments would be given to citizens on the waiting list.
The condominiums are constructed in the Kolfe Keranio, Kirkos, Addis Ketema, Lideta, Bole, Yeka and Nifassilk/Lafto sub cities.
The city announced that residents of Addis who have been registered and waiting in line would have to draw to be owners of studios (houses with one big room) and a room with one bedroom, so that people of low incomes could also be able to own their own houses, on July 8 at the city hall.
Condominiums with a living room and two and three bedrooms would be given to those who pay more money and in advance. The agency also announced that if the number of people wishing to buy condominiums with a living room and two and three bedrooms is much more than the number of houses being built, those luck enough to own a house will be determined through a draw.
There is a great need for simple, decent and affordable housing in Ethiopia, especially in Addis Ababa. Filthy houses, leaking roofs, cracking mud and no windows, doors or sanitation are the real facts for residents of the capital.
The vast majority of Ethiopians are forced to improvise with housing that is cramped and unable to protect them from the harsh weather, insects and disease.
In a bid to combat this multitude of problems, the city government of Addis Ababa’s has launched a large-scale housing program to improve housing shortage in the city. Thus, within the coming five years, about 250,000 houses are planned for construction in the city’s ten sub-cities.
The condominium project was announced on November 2004 with plans to construct 45,000 houses with an outlay of 1.5 billion birr allocated by the city government from its budget.
The number of housing units, which the administration plans to complete by the last quarter of 2005, is 12,000 with 35,000 houses set for 2005/2006 and 50,000 by 2006/2007.
The administration is expected to prepare about 2.5 million square meters of land with basic infrastructure (water, electricity and access to roads). Thus, in 1996 E.C, 500,000 square meters was developed; in 1997, 875,000 square meters; and in 1998 E.C, 1,125,000 square meters land was readied.
India’s External Affairs Minister to pay historic visit
Launches e-Network project
By Tedla Desta
In what is the highest level official visit in decades by an Indian government official to Ethiopia, his Excellency Pranhab Mukhejee, Minister of external affairs of the republic of India is expected here on July 4, 2007.
As part of his official visit to Ethiopia from July 4-6, 2007, Pranab Mukherjee, India’s Minister for External Affairs will inaugurate the Pan-African e-Network project, Capital learnt.
During his trip to Addis Ababa the Minister will take part in a meeting of Indian Ambassadors of Sub-Saharan Africa here in the capital.
“The Minister of External Affairs’ visit is part of our effort to raise our engagement with Africa as a whole and Ethiopia in particular which has emerged as a close and reliable partner in Africa,” noted a statement.
The Minister is also expected to meet with President Girma Woldegiorgis, Prime Minister Meles Zenawi, Foreign Minister Seyum Mesfin and other officials.
“The Minister’s first visit to Ethiopia is an indication of the emerging relations between Ethiopia and India,” Gurjit Singh, Ambassador of India to Ethiopia stated.
During his stay in Addis Ababa, the Minister is expected to sign three agreements establishing a joint ministerial committee, holding foreign office consultations and the protection and promotion of investment between the two countries.
The Pan-African e-Network project is an initiative of the President of India to use Indian expertise in IT to bring benefits of healthcare and higher education to countries of Africa. The Network would be connected by a satellite/fiber optical network to provide Tele-medicine, Tele-education and VVIP connectivity to these countries.
The total project cost is US$110 million, which will be in the form of a grant from the government of India.
Twenty three countries in Africa have so far signed the agreement. An agreement between the Government of India and the AU was signed in New Delhi in October 2005 after which four meetings of the steering committee have so far been held.
Ethiopia is said to be the first beneficiary of the Pan-African e-Network project for Tele-education and Tele-Medicine under a pilot project already in operation.
The Network will consist of 5 regional universities, 53 learning centers,5 regional Super Specificity Hospitals(SSHs) and 53 remote hospitals across Africa.
The process to implement the project was undertaken by establishing a Steering Committee, which is co-chaired by the AU Commissioner for Infrastructure and the Indian representative to the African Union (the Indian Ambassador to Ethiopia).Several countries in Africa have shown interest to bring benefits of health care and higher education to their people through the e-Network Project.
H.E. Mr. Pranhab Mukhejee first joined government as Deputy Minister for Industrial Development in 1973 and has since served as Minister of State for Finance, Revenue and Banking, Cabinet Minister of Commerce Steel and Mines, of Finance, of Defence, among other positions before he was named Cabinet Minister for External Affairs in October 2006.
Mr. Mukherjee has been board member of distinguished organization including the IMF the World Bank and Asian and African Development banks respectively. He has also led numerous high level official delegations from India throughout the world.
Five star hotel in Langano by AVC
By Tedla Desta
After several delays, the African Vacation Club, Ethiopia has managed to build Langano Vacation Club,a five star hotel which will be ready for business in December 2007.
According to the heads of the company, the current stage of construction has been reached following a number of requests for adequate land. They had requested 100,000 sqm of land from the Oromia Regional Government but were given just 30,000sqm.
“The Company has shown remarkable progress since its commencement. However we have also experienced many delays and frustrations. There are various reasons for this and we would like to take this opportunity to advise our entire members as to what Africa Vacation Club is doing and why we have experienced some delays with Langano Vacation Club.”
African Vacation Club (AVC) has also been challenged in buying the stated land to realize this 30 million birr project.
“In March 2005, we attempted to obtain land to build a resort on Lake Shala from some very prominent Ethiopian businessmen. This fell through. We again tried to purchase land on Lake Langano and were unsuccessful. After this, we applied directly to Oromia Government who agreed to give 100,000 sqm on which to build our Resort on Lake Langano. After many delays, they granted us only 30,000 sqm. We reapplied and after several months they gave us 45,000 sqm. It took more than six months for our architect to readjust the project to the size of the land granted,” AVC stated.
“During this period we secured the services of a well known construction firm in Addis to build the resort. For various reasons we had to breach the contract. Due to the many problems that delayed the launching of our construction in Langano, the directors needed to re-assess their investment in the Ethiopian operations. This is due to the fact that Resource Condominium International (RCI), could no longer be involved in the Langano Resort as it was so tardy. This meant that Africa Vacation Club Ethiopia Plc had to establish itself in the international exchange program for its members.” the statement added.
However, the directors made a commitment to complete the Langano Vacation Club project, reestablish RCI and make sure all our members would be able to travel easily around the world and enjoy the benefits of owning their own wonderful resort on Lake Langano.
“RCI has reinvested in Ethiopia and is fully involved in our project,”they said.
The managers affirmed their commitment as Africa Vacation Club is bigger and stronger than ever in promoting Ethiopia internationally through RCI and ensuring the development of future resorts, they will put Ethiopia on the International Timeshare map and do their part for the Millennium and future tourism.
Similarly, Director of AVC Ethiopia, Sonia Pasqua, told Capital that the company will build three hotels within five years.
She said that the construction will be conducted in different parts of the country.
Africa Vacation Club Ethiopia Plc was founded as a joint venture in Ethiopia between international and local partners and commenced operations in August 2004.
Based at Dembel City Centre on Bole Road, the company employs in excess of 70 Ethiopian staff and some 75 at the building site of Langano Vacation Club. Since inception, Africa Vacation Club Ethiopia Plc has enrolled over 600 full member families and has over 300 families awaiting registration.
EAL to distribute leased plot to employees
By our staff reporter
Ethiopian Airlines is going to distribute the plots it leased from the Addis Ababa Caretaker Administration to its over 2,000 employees for residential house construction purposes.
The airlines contracted a local consultant, SKAS, for the design of the houses at a cost of over one million birr presented the design to the airline.
The Human Resources Department with the airline, which is responsible for locating the registered applicants for the plot is facilitating for the transfer of the plot to the employees.
The minimum plot size for each employee would be 90 square meters.
The Airline leased the over 300,000 sqm of land located around Ayat Village from the city government two months ago.
The airline also announced that it is executing wide ranging activities to launch 10 new routes over the coming three years.
According to a press release, Ethiopian Airlines is opening new flight routes in a bid to satisfy the ever growing international demand for air transport.
The new routes would be opened to various American states, Europe, Canada and Middle Eastern countries.
Ethiopian also envisages increasing the number of its fleet to 30 in two year’s time from 23 at present.
Ethiopian is now serving 2.2 million passengers annually, while it is exerting efforts to carry up to three million passengers after three years, he said.
Ethiopian is also eyeing to double the achievements it registered over the past 60 years in the coming five years.
The airline now flies to 50 destinations worldwide.
African countries launch air safety agency
By our staff reporter
African countries launched a body on Thursday to improve air safety on the continent, long viewed as the most dangerous place in the world to fly.
The opening ceremony coincided with a new disaster; an Angolan Airlines Boeing 737 plane carrying 78 people crashed into a building upon landing in northern Angola, killing at least six people and seriously injuring others.
The African Civil Aviation Agency (ACAA), to be based in the Namibian capital Windhoek, will train pilots and co-ordinate air travel stretching from Cape Town to Cairo.
Africa has the world’s highest rate of air accidents, while accounting for just 4.5% of global air traffic.
Namibian President Hifikepunye Pohamba told the group’s opening ceremony, recent air accidents in Africa, including a Kenya Airways crash in May that killed 114 people, created an alarming picture of Africa’s aviation standards.
“These developments prompted European states to unilaterally ban cartain African carriers from flying into the European Union’s air space. This is a worrisome development, which needs urgent attention,” he said.
Angola’s TAAG airline, which owned the plane which crashed on Thursday, had ironically become the latest African carrier to be added to the European Union’s blacklist earlier in the day.
“The establishment of the agency presents an opportunity to examine the causes of air accidents and develop a strategy to reduce, if not eliminate accidents,” Namibia’s president said.
The ACAA will have regional bodies based in Libya, Ethiopia, Cameroon, Nigeria and South Africa. It hopes to clean up the region’s safety image by standardizing and overseeing the licensing, training and inspection of staff and equipment.
Risks of flying on the continent were highlighted when a Kenyan Airways Boeing 737-800 fell into densely forested swampland in May, minutes after leaving Cameroon’s Douala airport for Nairobi in torrential rain.
The crash dealt a severe blow to Kenyan Airways, one of the most successful and modern companies in the east African nation.
Africa’s bad safety reputation has been caused by small unscheduled carriers flying old Soviet-made planes dangerously overloaded with passengers and cargo.
Africans say a decision by the European Union to bar airlines from operating in the 25-nation bloc last year has only worsened the continent’s image and handed European travelers a reason to give African carriers a wide berth.
Experts say Africa’s aviation industry is investing to improve safety and deliver better services. But creating an image of safe skies may take time.
The International Air Transport Association (IATA), has called the air safety records of several African countries an “embarrassment” for the industry.
TAAG Angolan Airlines will be banned from flying to the European Union within a week along with all Indonesian airlines and Volare Aviation Enterprise of Ukraine to improve safety, the EU said on Thursday.
AAWSA to increase water production
By Tedla Desta
The Addis Ababa Water and Sewerage Authority intends to increase its current 86.5 million cubic meter production of water from surface and ground water sources, to 97 million cubic meters in the coming millennium, it was disclosed.
The Authority’s envisaged 2000 budget year plan was divulged together with the announcement of the City Administration’s proposed budget plan.
It aims to distribute water to 38,196 houses as their construction is completed.
In its bid to find a short-term solution to a mounting water delivery crisis, the Authority is planning to dig 30 water wells in the next year.
Addis Ababa has been classified among seven African cities under water demand management where water shortage was feared to surface in the near future
The access rate to drinking water and sanitation in Ethiopia is among the lowest in the world. Nearly 50 million people lack access to safe water while 56 million lack access to sanitation. The regional distribution of water coverage according to the Ethiopian government’s 2001 figures is the following: Tigray – 34%, Afar – 16%, Amhara – 31%, Oromia – 31%, Somali – 13%, Benishangul Gumuz – 20%, SNNP – 29%, Gambela – 18%, Harari – 23%, Dire Dawa – 59%, and Addis Ababa – 70%. The national water coverage is 74% in urban areas, 23% in rural areas and 31% average over the whole country.
Ethiopia has considerable water resources which could meet the country’s demand for irrigation and hydropower. The annual amount of rain falls runoff is estimated around 122 billion m³ of water. Groundwater resources are estimated around 2.6 billion m³. In Ethiopia, some 80% to 90% of water resources are found in the basins of large rivers such as the Abay (Blue Nile), the Tekeze, the Baro Akobo and the Omo Gibe.
Nevertheless, water resources have not been fully exploited yet. Out of 3.7 million hectares of potentially irrigable land, only 75,000 ha of large scale and 72,000 ha of small scale irrigation schemes have been developed since 1996. As far as the hydro-electrical sector is concerned, only about 1% of the hydropower potential (a total of 135,000 GWh per year) has so far been exploited according to the data provided by the Ethiopian Ministry of Water Resources.
Over Six bln Birr budgeted for Addis Ababa
By Tedla Desta
The Addis Ababa City Caretaker Administration has budgeted 6.5 billion birr for the coming fiscal year, it was learnt.
The latest budget exceeds that of this ending year’s by 1.34 billion birr.
According to the City Administration the budget would be spent on the execution of different activities it has proposed.
Of the total, 74% is allocated to capital expenses while the balance is for regular expenses.
The Caretaker Administration has several unfinished projects including the ongoing construction of condominium houses.
The Administration envisages to make its management of expenditures more effective by ensuring the city’s residents societal and economic improvement. It will also scrutinize if the government’s expenditures are implemented according to the financial administration law, rules and regulations.
In the 2007/08 fiscal year about 82% of the total budget will go to the central bureaus with 18% to sub cities.
Education has been allocated 0.2 percent in the next fiscal year.
Housing construction still takes the largest share this year with a 46% allocation followed by road and water development with 33% and 6% respectively.
It is to be recalled that the House of Peoples’ Representatives on Tuesday June 19, 2007 gave an additional year of term both for Addis Ababa and Dire Dawa Caretaker Administrations.
The government of Addis Ababa was given over to a Caretaker Administration when CUD leaders refused to join parliament and govern the city rejecting the results of the May 2005 national elections.
The election to replace the Caretaker Administration was scheduled to take place this year, but due to the demand of certain political parties in the House, it was decided to be postponed.
WTO accession improves business in Ethiopia
By Andualem Sisay
Contrary to the fears of many in the business community, Ethiopia’s future accession to the World Trade Organization (WTO), is said to create opportunities for improving business and the investment climate in the country.
This was indicated by William Jackson, Director for African Affairs Office of the United States Trade Representative, who presented his paper at a workshop, in Addis Ababa from June 27- 28, 2007. The Director, in his paper entitled, AGOA, Ethiopia, and trade competitiveness” stated that the ongoing process of Ethiopia towards the WTO accession reinforces and accelerates necessary improvements to the trade regime.
“Even though the process is not painless, it promises the country real gains and is essential to greater competitiveness’, according to Mr. Jackson. He also highlighted the need for Ethiopia to undertake joint public-private sector dialog and export strategies to tackl competitiveness challenges.
Mr.Jackson also indicated that though Ethiopian exports to the US market using AGOA (African Growth Opportunity Act), have increased eight fold from 2001 to 2007 by reaching over seven mln USD in 2006, the country would have done much better as it has greater potential.
Contrary to this, last week the business community in Addis Ababa, noting the decline of Ethiopia’s competitiveness in the Common Market for Eastern and Southern Africa (COMESA), raised fears over Ethiopia’s rush to join the WTO and an Economic Partnership Agreement with Europe (EPA), and described the act as a move which will worsen Ethiopia’s trade deficit with the rest of the world.
Apparel, cut flowers, live plants, nuts and specialty coffee are among products that have taken the major share exports to the US over the past years. Specialty food products, jewelry and light manufacturing are among the potentials of Ethiopia for the US market through AGOA.
To enhance exports to the United States through AGOA, the country has to diversify its export items and needs and prepare national AGOA strategy. Although the private sector as a of the country has shown active participation by using the duty free opportunity of AGOA, supply side constraints, such as lack of efficient transportation systems, costly and unreliable energy supply and high telecom costs are indicated as being the challenges to AGOA utilization.
In addition, access to finance and trade facilitations are also issues that need to be addressed for using the opportunity effectively.
AGOA was passed in 2000 and 38 sub-Saharan countries are eligible to export some 6,000 items of products duty free to the US. The idea behind AGOA is to increase the global trade share of Africa to set the continent free from depending on aid and alleviate poverty on the continent.
If Africa were to increase its share of global trade by just one per cent and reached 3 per cent, it would generate additional export revenues of 70 bln USD, which is equal to three times the amount of current annual assistance to the continent from donors.
The total imports of the US from Sub-Saharan Africa has reached 59 bln USD in 2006 from 23.5 bln in 2000.
Loop comes back
By Andualem Sisay
The Ministry of Health (MoH), in conjunction with the Amhara Regional Health Bureau (ARHB) announced a new health initiative that will reintroduce the Intrauterine contraceptive device (IUCD), commonly known as loop, in the Amhara Region.
Built around the slogan, “Reliable as my choice... Reversible when I decide,” the campaign will talk about the IUCD’s unique benefits as a family planning option.
Several officials from the Ministry of Health, Federal Government and Amhara Regional State attended the event for the commitment of family planning initiatives.
According to data collected from the Ministry of Health, family planning remains a challenge in Ethiopia with a high unmet demand for contraceptives. Although
contraceptive prevalence rates have increased across 2000 to 2005, modern contraceptive use among married women aged 15 -49 remains low at 14%.
The Ministry of Health, in the national reproductive health strategy has committed to reach contraceptive prevalence rate of 60% by 2010.
One of the main strategies to increase the CPR will be to address the shift in the demand for long acting and permanent family planning methods, one of which is IUCD.
According to the press release sent by EngenderHealth an NGO that focuses on improving women’s health, couples should consider the IUCD, or “the loop,” as one of their family planning options for reasons that the IUCD is one of the most effective, safe, and convenient methods of family planning.
Worldwide, the IUCD is the second most popular, family planning method, with almost 152 million married women of reproductive age using it. Almost any woman can use it. The IUCD is effective for up to 10 -12 years, but a woman can use it for a couple of years and remove it any time she wants. Couples using it do not have to worry about following a monthly or daily routine, as must be done with other forms of family planning. Furthermore, the IUCD is reversible; a woman’s ability to get pregnant returns as soon as it is removed.
As part of the initiative, the MoH and Amhara Regional Health Bureau in collaboration with EngenderHealth/ACQUIRE project will run radio advertising, billboard signs, and distribute brochures, booklets and posters that address common questions and concerns that many people have about the IUCD. In the pilot area, almost 950 health facility staff members, community- based reproductive health agents, and health extension workers have been trained in the latest approaches for IUCD counseling, referral, and insertion.
Authority to invite commercial radio broadcasters
Two commercial radio operations’ licenses cauld be canceled if they don’t start broadcasting from their own stations before October.
By Andualem Sisay
The Ethiopian Broadcast Authority announced on Tuesday June 26, 2007, that it is planning to issue additional broadcast licenses for commercial radio next year.
The licenses will be given after the authority advertises and invites investors interested in the business. This was indicated at the press briefing the Ethiopian Broadcast Authority called to elaborate on the advantages of the new Broadcast Law.
The intention of the new Proclamation, which replaced the previous proclamation 178/91, is to create self- regulated broadcasters in Ethiopia, according to Desta Tesfaye, Deputy Director of Ethiopian Broadcast Authority.
In Ethiopia currently, there are four licenced commercial radio broadcasters; Radio Fana, Dimtse Weyane, ZAMI and Adey Abeba.
The authority has also announced that as a pilot program, it has issued one license for community radio for Kore community in the Southern Region. The authority is planning to introduce community broadcasting under two categories: community with common interest and community with the same language, setting, culture etc.
Comparing with other mass media, many recommend community radios as the effective mode of communication to address the vast majority of the population of the Ethiopia, which lives in rural areas.
According to Desta Tesfaye, the authority is also undertaking study on how it will start giving license start private commercial TV broadcasts in Ethiopia.
In a related development, the Authority also indicated that it will revoke the licenses of two commercial radio broadcasters, unless the broadcasters are able open their own radio station by the one and half year time as they had agreed to some 14 months ago.
ZAMI Pubic Connection, Adey Ababa Promotion and Tinsae Creative Arts are the two commercial broadcasters, who are expected by the authority to establish their own broad casting station before the coming October, as of a condition the deadline set for them to do so.
It is recalled that the House with its 2nd year 33rd meeting of June 7, 2007 approved the proclamation with the improvements that has been suggested during the previous discussions in the parliament and other groups of the society.
But those Members of Parliament (MPs) who vote against the decision have indicated their dissatisfaction with the corrections and some claimed that the previous was better than the final.
Some opposition MPs have even opposed the need of having a separate Broadcast Service Proclamation out of the Press Law, which that is under discussion with the ruling party and the opposition, “since both are about freedom of expression”.
While others claimed that broadcast has to be regulated by the public, rather than the government. “…such experience is only observed in some countries like China and Cuba, which we do not have to use their experience,” said one MP.
EHPEA launches code of practice for flower growers
By Andualem Sisay
The Ethiopian Horticulture Producers and Exporters Association (EHPEA), launche a code of practice for sustainable flower production on Friday, June 29, 2007 at the Hilton Hotel.
The main reason for introducing the code of conduct is to address the needs and concerns of the international market place and also to promote the implementation of sustainable production practices and to address the concerns and needs of the community here in Addis Ababa.
The code includes good agriculture practices, the protection of environment and the implementation of acceptable employment practices and safe working conditions.
The code sets three levels of performance, Bronze, Silver and Gold and is designed to ensure that all basic requirements are covered in the first level and then to encourage farms to progress in stages towards implementing comprehensive sustainable production and management practices.
With support from the Netherlands and the Swedish Chambers of Commerce a training unit has been established at the Association. This team of local instructors led by an experienced expatriate will be providing training on farm sites topics related to code compliance and will be guiding the farms in activities needed to reach compliance.
To provide credible evidence of compliance with the code requirements each farm will be audited by external specialist auditors. This will be arranged by the EHPEA and the audit company will be selected by tender process. The external audit will be conducted annually and the results will be verified by the association and relevant local stakeholders.
The launching event gathered some 300 guests including Deputy Prime Minister Addisu Legesse and MPs. Representatives from the Environment Protection Agency, Oromia Regional Administration, the International Labor Organization (ILO) and Confederation of Ethiopian Trade Unions also attended the launching, among others.
Ethiopia needs to tackle urban poverty
Country obtains 54% of GDP from urbanites
By Andualem Sisay
Even though, only 17 per cent of the population lives in cities and with most under the poverty line, Ethiopia needs to address the problem of these people from whom it obtains 54 per cent of its gross domestic product (GDP).
The paper presented at the launching of State of World Population Report 2007 at the Economic Commission for Africa (ECA), compound Africa Hall on June 27, 2007 stressed the need for the country and its development partners to address the issue.
It calls for the partners and the government of Ethiopia to tackle unemployment in bigger cities like Addis Ababa that has currently reached up to 40 per cent and 26 per cent in small towns. It indicated that Ethiopia earns more than half of its GDP from the 927 urban areas in the country.
Women and the youth are highly affected by unemployment. Poor governance, weak institutional capacities and municipal finance were indicated as the major challenges that these towns are suffering from.
In addition, low rural-urban linkage and planning, along with deficient infrastructure and municipal services were also mentioned as the problems cities of Ethiopia are facing.
“When we see the misery on the streets, it compels us to do something,” said Dr. Monique Rakotomalala, United Nations Population Fund (UNFPA), Representative to Ethiopia.
Currently, UNFPA Ethiopia is supporting a project in the Merkato area, the Biruh Tesfa (bright future), which is implemented by the Ministry of Youth and Sports. The project gives training to adolescent girls in life skills, reproductive health, and HIV/AIDS, among others.
In addition, UNFPA also works with women in of Addis Ababa, whose lives are dependent on collecting and selling fire wood. It also supports the Good Samaritan Training Center, an urban based NGO providing vocational training to young women and girls, aged 18-25, with a view to enabling self-employment or finding paid work.
“To move forward in addressing such problems, we require strategies that are inter-connected, which we call partnerships,” she said
Out of the total population of Ethiopia that lives in urban areas, 25 per cent are Addis Ababa city. 80 per cent of these urban areas are small town with population of less than 10,000 people. According to the recent data, Ethiopia has become the second most populous country in Africa, next to Nigeria, with a population of 81.2 mln.
According to the State of World Population 2007, for the first time in history, more than half of the world population, 3.3 bln people, will be living in urban areas. “The increase in the urban share of total population is inevitable, but it can also be positive,” says the report.
“The current concentration of poverty, slum growth and social disruption in cities does paint a threatening picture. Yet no country in the industrial age has ever achieved significant economic growth without urbanization. Cities concentrate poverty, but they also represent the best hope of escaping it.”
Respecting the rights of the poor to the city, having a longer-term and broader vision of the use of urban space to reduce poverty and promote sustainability are the issues policy makers need to consider to address the problem, according to the report.
It also advises population institutions and specialists to play a key role in supporting community organizations, social movements, governments and the international community to improve the nature and form of future urban expansion.
Ethiopia expects many VIPs for new Millennium
By Tedla Desta
As the 3rd Ethiopian Millennium is approaching fast attempts at bringing world leaders and artists is being conducted by several organs working on the celebration of the historic occasion, sources told Capital.
Though the sources stated that they haven’t obtained confirmation from the personalities they are actively working to secure their participation
Some of the expected are the officials from the United States, heads of state from Caribbean countries, the Bob Marley families, some as yet unnamed African leaders and hip hop and Rap artists from the US.
“We know that there is a collaborated effort some organs to bring these dignitaries and some of them have succeeded in confirming their arrival.
Asked about the issue ,Public Relations Team Leader at the National Millennium Celebration Secretariat Council, Mulugeta Asrate, said “ though the Ethiopian Ministry of Foreign affairs has not transmitted the list of VIPs to the Secretariat we do expect a galaxy of African and non African Heads of State and renowned celebrities to join us at this historic juncture.”
In a related development, the City Government of Addis Ababa Millennium Secretariat has earned 16 million birr to finance activities underway in the next 15 months.
The council secretariat which was established in December 2006 under the framework of the National Millennium Council has so far been operating with an outlay of 2.6 million birr.
Serawit to establish engineering company
By Tedla Desta
Promoter and actor Serawit Fikre, is to launch a water well drilling company called Semayawi Feres Water Engineering, he told Capital.
The owner of the company said that it was established with the aim of changing the lives of rural women. Semayawi Feres Water Engineering Company will perform charitable activities as part of its operations.
“If we can at least help those rural women who travel 3-4 hours to fetch water it will be worth it. The journey has to be reduced or some means should be created where by she can have water at her doorstep. The idea of establishing this company was conceived from the Semaywi Feres movie that revolves around the utilization of the Abay River” he said.
Over 2.5 million birr has been allocated for the company. Staff who will train the Ethiopian professionals will be hired from abroad and are to arrive soon.
The company will start operations in the coming Ethiopian year.
“We are going to start with water drilling and irrigation for now but we will diversify and be engaged in related activities Serawit stated.”
Serawit has started hiring engineers and purchasing machineries necessary for the company.
When the company starts work, it will create job opportunities for 20 persons. The headquarters will be in Addis Ababa but its main work is in the regions.
It is to be recalled that Semayawi Feres (the Blue Stallion), an Ethiopian movie produced and directed by Serawit Fikre, is to be screened on Mnet.
When ‘Semayawi Feres’ was produced three years ago it managed to grab the attention of local film viewers for more than a year.
Conflicting viewpoints on APRM
By Andualem Sisay
A paper on the achievements of the African Peer Review Mechanism (APRM), was presented on June 22, 2007. It was the first of a series of lectures entitled “Good governance and democracy in Africa”, organized jointly by Forum for Social Studies (FSS), and the Heinrich Boll Foundation, with a view to foster critical debate on the issues of governance and development.
The paper, which opened the way for both optimistic and pessimistic views, was presented by Dr. Kojo Busia, Officer-in-Charge, APRM Support Unit, Governance and Public Administration Division at the United Nations Economic Commission for Africa (UNECA). APRM, which is the first ever domestically generated African program, was launched four years ago with the intention of adapting policies, practices and standards through sharing of best practices among African states.
The review includes 74 per cent of the population of Africa. This voluntary membership mechanism now has 26 countries, out of which the review of three countries is finalized after a cumbersome, expensive and drawn-out process. APRM results from Ghana, Rwanda and Kenya revealed both the strengths and weaknesses of these nations on their way to democratization and good governance.
Democracy and political, economic, corporate and socio-economic governance are the major areas in the of APRM scope.
The reviewers study country self assessment reports and national programs of action, country review mission reports and after summarizing, submit their finding it to African Peer Review Panel and Forum of Heads of States for review. Finally the report is formally and publicly tabled at key regional and sub-regional institutions.
Rwanda’s journey from agriculture to ICT based economy, Ghana’s political stability and multi-party system and Kenya’s ability to be able to generate 90 per cent of its national budget are mentioned as facts that show the strength of the countries, which other African countries need to learn from.
On the other hand, land scarcity, lack of political consensus, failure to properly manage diversity, capacity constraints and external dependency are mentioned as the problems of Rwanda that APRM found.
Corruption is found to be the major problem that Kenya and Ghana are recommended to fight. External dependency, chieftaincy, land use problems and the need for decentralization are found as major problems of Ghana. Regarding Kenya, the review also advised the country to solve implementation gaps, update the constitution and form transformative leadership.
What makes APRM different from other reports and whether it follows up on how these countries are working to promote good governance and democracy unless there are no conditionalties that force them to take action, were among the fears of the participants.
“Since almost all African leaders are living in glass houses and APRM is an initiative of leaders, no one dares to throw a stone on another,” said an MP from the Coalition for Unity and Democracy (CUD) party. “The review should have been from bottom up, starting from the grass root level not from the presidents,” said an African Historian.
“Conducting studies on Africa only will make no difference to the people on the continent rather than recounting problems again and again in various forms,” said another.
Responding to these and the other pessimistic comments towards APRM, the presenter stressed the need for sceptics to accept African governments as major stakeholders, “although often it is difficult to separate government from party in Africa”.
“APRM being an initiative of the Heads of States of Africa, it has no negative impact on the outcome, it would rather show their readiness for change and accountability,” Dr. Kojo Busia said.
“They may get the chance to manipulate at some extent, but not at all levels, as the assessment goes through many layers. Once the review is finalized the governments discuss in their parliaments and begin to address them as accountability to their people compels them to do so.”
“There are instruments in the APRM that let civil societies to participate in the process. Governments undertake sensitization about the review to make the public ready for it. We need to appreciate the fact that APRM is a beginning of real civil society participation in Africa,” he said.
“Furthermore, APRM will avoid the mistakes that other external organs such as the World Bank used to make by sending a few groups of experts to specific areas of a country. We should not forget that the medicines that these external organs administered to us did not cure us.”
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