Capital

VIPs involve in land corruption; artistes, athletes and investors amongst suspects

By Tedla Desta

Capacity tests raise protests at FIRA

By Groum Abate

Bottles bottleneck Amar

By Tedla Desta

NBE increase reserve requirement for commercial banks

By our staff reporter

Nine month performance doesn’t seem to promise the country will meet its target of generating 1.5 bln USD by the end of the year, Oilseeds, gold and other export declines

By Andualem Sisay

City Switches to Agro Panel

By Tedla Desta

Harar draws diaspora towards investment
Will the Harari experience serve as an example of others in Ethiopian diaspora?

By Andualem Sisay

Egyptian pharmaceutical companies search agents

By Tedla Desta

Dukem bridge to be widened for 7mln Birr

CRBC to construct Meskel square – Kaliti road

By our staff reporter

ERCS’s trade fair winds up,
HQ to be built for 73 million birr

By Tedla Desta

Harar’s attachment to Tchat

By Andualem Sisay

Promoting Ethiopia in Houston with $10 mln

By Groum Abate

EU and ESA expect to sign Economic Partnership Agreement

By Tedla Desta

Severe malnutrition in Afar

By Tedla Desta

VIPs involve in land corruption; artistes, athletes and investors amongst suspects

By Tedla Desta

In a study conducted on the Addis Ababa City’s Land Administration by the Federal Ethics and Anti-Corruption, notable personalities were found immersed in land related corruption, Ali Souleman, Commissioner of Federal Ethics and Anti-Corruption Commission said.
The Commissioner disclosed that in its investigation aimed at taking measures against illegitimate land holding activity, the ones found highly engrossed in the crime were the prosperous rather than the poor.
“Especially, personalities who are given much respect by the society are engaged in the illegal selling and buying of land, which is the shameful side of the activity.”
He also added that these widely known personalities should have known that participating in such an illegal activity could hurt the low income earners of the society, and will ruin their personal reputation and respect. In addition to this, they should understand that this act would make them liable under law.
Though the Commissioner refrained from naming who the persons involved in corruption are , a source told Capital that the individuals are very famous musicians, athletes, investors and government appointees.
The source also added that the individuals were able to get land in Bole and Yeka Sub cities by lease and for real estate development.
Meanwhile, a study paper presented on five sub cities: Yeka, Bole, Akaki Kaliti, Nefas Silk Lafto and Kolfe and Keranio found out that a huge and complicated web of corruption exists.
The Federal Ethics and Anti-Corruption Commission was established in May 2001 and until the year 2006 investigated a number of cases and pressed charges against 500 individuals about 100 of whom received 1-19 years imprisonment.
Corruption is a general concept describing any organized, interdependent system in which part of the system is either not performing duties it was originally intended to, or performing them in an improper way, to the detriment of the system’s original purpose.
A report by the African Union, estimates that corruption costs African economies in excess of 148bln dollars a year. This figure, which includes both direct and indirect costs of corruption, i.e. resources diverted by corrupt acts and resources withheld or deterred due to the existence of corruption, is thought to represent 25% of Africa’s GDP and to increase the cost of goods by as much as 20%.

Capacity tests raise protests at FIRA

By Groum Abate

Auditors at the Federal Inland Revenue Authority (FIRA) protested the new capacity test where only half of the auditors took the exam.
Sources told Capital that about 39 of 60 auditors at the authority took the test but only 11 passed the test.
According to the test results posted at the authority, the highest rank scored is 72 by one auditor, where the rest ten auditors got the passing mark of 50.
28 others failed getting marks from 12 to 45 out of a possible 100.
This last week, Public Accounts Affairs Standing Committee of the House of Peoples’ Representatives has called on the office of the Federal Auditor General to enhance what it said has been an encouraging endeavor in expanding the coverage of audits.
The Auditor General’s office on its part, has called on the Government to raise the capacity of the office in terms of institutional standing, skilled human resource and materials.
The Committee urged the office to submit a formal request of its logistical and human power demands to a pertinent body.
Meanwhile, the office has audited 158 accounts of the planned 280 over the past nine months, the Deputy Auditor General said.
In the process, he said, numerous flaws had been encountered in the accounting systems of organizations while more than 189,000 Birr could not be balanced in the audits of 11 federal and five regional organizations.
FIRA is managed under the Ministry of Revenue, which is established with proclamation no 256/1994 issued on Oct. 10, 2002 on article 4, 5 16 and 26. In accordance with the proclamation the aims, powers and duties bestowed on the former revenue board on proclamation No 5/1987 are fully transferred to the Ministry of Revenue. In addition, the ministry is given the responsibility of conducting the Revenue sector reform program continuously. Furthermore, the Ministry leads and supervises three affiliated Revenue sectors, namely: The Federal Inland Revenue /FIRA/, The Ethiopian Customs Authority /ECA/ and the National Lottery Administration /NLA/.
FIRA has he power to assess, collect and execute legally specified federal tax revenues categorized, by law for collection by the federal Government; to collect, compile and where necessary, disseminate to the revenue collection organs information necessary for tax assessment;
To inspect documents, in any person’s possession where necessary for the execution of tax laws; and to devise systems and working methods for tax assessment, collection, keeping of accounts and other related activities and ensure the implementation among other duties.

Bottles bottleneck Amar

By Tedla Desta

The Zembaba Beekeeper Cooperatives’ Union, which is the producer of Amar Mar (honey), has stopped producing packed honey due to the problem of finding glass bottles, Simachew Mekonen, Manager of the Union told Capital.
The Manager said that as their local supplier of glass bottles, the Ethiopian Bottle Factory has ceased producing these bottles, they have faced a problem in producing honey and making it available for retail sale.
“Though we have a large number of customers from supermarkets, the lack and unavailability of bottles is causing us a problem.” Simachew explained.
Responding to the question on how they plan to solve the shortage, Simachew said.
“We are making studies on how to bring bottles from abroad and also resume local production soon”
The Zembaba Beekeeper Cooperatives’ Union was established with 2684 members from eight Woreda’s (higher districts) and so far has sold 124 quintals of honey.
In a related development, Zembaba Beekeeper Cooperatives’ Union is preparing to export honey.
According to the Manager, with the government and other bodies’ assistance they are planning to export packed honey and honey products.
The organic honey certification that they got from a German BCSOKO Guarantee is expected to assist the Union’s aspiration of exporting its products.
“Fulfilling the export requirements and backed by SOS Sahel Ethiopia, an NGO that works to improve the livelihoods and increase self-confidence of the marginalized and the rural poor, we plan to start exporting next year to then exploit the overseas market.”
The Zembaba Beekeeper Cooperatives’ Union was established with a vision of making the Ethiopian rural poor prosperous and becoming the leading world-standard bee’s products producer and exporter in Africa.
Beekeeping is a traditional important off farm activity to harvest honey for rural people in Ethiopia. Ethiopia is the World’s 10th largest honey producer and the 4th largest beeswax producer after China, Mexico and Turkey. Owing to its varied ecological and climatic conditions, Ethiopia is home to some of the most diverse flora and fauna in Africa, making it highly suitable for sustaining a large number of bee colonies. Ethiopia reportedly has the largest bee population in Africa with over 10 million bee colonies, out of which about 7.5 million are confined in hives and the remaining exist in the forest.
The Union produces honey in 500 gram glass bottles for retail sales and in 100 liter Food Grade plastic barrels for bulk sales.
Productivities of honeybees are very low and an average of 5-6 kg of honey could be cropped per hive per year, while from the improved one an average of 15-20 kg is possible. Honey and beeswax are collected after the rainy season starts in October and extends until December. In the South and Eastern parts, there is a minor harvesting period in May-June. The major honey and beeswax producing regions in Ethiopia are Oromia (about 46%), S.N.N.P.R (31%) and Tigray (5%). However, the country is suffering from the ecological deterioration of it natural resources and this means the basis for any honey production is threatened.
According to International Trade Centre (ITC), 1986, total estimate of honey production in Ethiopia ranges from 21,480– 23,700 tons per annum between the years 1984-1994. This contributed 23.58% to total African honey production and 2.13% to total world production in 1976-1983. The current honey production is estimated at 24,600 tons per year. The estimate is based on 65% and 75% occupational efficiency of 7.5 million traditional and 20 thousand framed improved hives respectively. Honey is almost exclusively used to satisfy local demand; production of “Tej”, an alcoholic mead consumed locally. The honey produced is so crude that it will not compete in the international market. However, an average of 3000 tons per annum has been exported to neighbouring countries over the years 1984-94 (ITC, 2003).
Ethiopia is the 5th largest wax exporters to the world market. The annual production of wax is estimated at 3200 tons, without considering beeswax wasted in the remote areas.
Honey is for 85% locally consumed for the preparation of “Tej” mead, which would leave 15%, 3,600 ton honey for export possible.
Farmers have participated in more than 20 local trade fairs to promote products. During these events, constructive feedback from actual and potential customers has been received.

NBE increase reserve requirement for commercial banks

By our staff reporter

The National Bank of Ethiopia (NBE), announced that it has decided to increase the reserve requirement of commercial banks to ten percent, from the previous five percent.
NBE has also decided the minimum interest rate be increased from three to four percent.
Briefing journalists about the policy amendment on Wednesday, NBE Governor, Teklewold Atnafu said the amendments made on reserve requirement and minimum interest rate are effective as of July 4, 2007.
The Governor stated that since the principal objective of the NBE is fostering monetary stability, it has taken the amendment measures, which he said take the lending capacity of the commercial banks into consideration.
Along with the various measures being taken by the government, the monetary policy measures taken by the NBE would contribute to stabilize the price hike being witnessed in the country, he added.
The bank would take similar reform measures by conducting successive studies in the sector.
NBE, through studies, has realized that factors contributed to the price hike would be gradually eliminated; Teklewold indicated adding that the bank has finalized preparations to minimize the rate of inflation to less than 10 percent by decreasing the amount of money circulating in the economy.
The loan being provided by the banks has been significantly contributing for the increase in the amount of money and played a key role for the economic growth the country registered by financeing the investment sector.
The loan provided for the private sector over the past three years has shown a 38.1 percent increase, he said.
NBE decided to take the reform measures since it has been forecasted that the rise in the volume of the loan being given to the private sector would increase in the coming year.
Though the bank has tried to control the rate of the inflation by taking various measures, the inflatrion has been rising from time to time, Teklewold said, and added that NBE has carried out studies to identify root causes of the inflation.
According to the Governor, the fact that the bank created stable and strong foreign exchange trade has significantly contributed in pressing down the rate of inflation in the country.
Citing the estimations of the International Monetary Fund (IMF), Teklewold indicted that the price of commodities would not increase with the previous pace, which in turn will push down prices of commodities in the local market.
Teklewold said the total monetary supply, during the first 10 months of the current budget year, has reached to 54.1 billion Birr, which shows a 21.3 percent increase from that of the previous year.
Meanwhile, the net loans accumulated during the past 10 months has reached to 57.7 billion Birr.
Some 26.8 billion of the loans were was taken by the government, while the balance has gone to public development enterprises and the private sector.
The loan given to the private sector has shown a 7.2 billion Birr increase from that of last year, he said, and added that this fact was an indication that the financial sector has created favorable conditions for the development of the private sector.

Nine month performance doesn’t seem to promise the country will meet its target of generating 1.5 bln USD by the end of the year, Oilseeds, gold and other export declines

By Andualem Sisay

This year’s nine months total of foreign currency obtained from export items such as oilseeds, gold and other items that do not belong to major export items declined by 33.5 mln USD, when compared to the same period performance last year.
Oilseeds export performance of Ethiopia shows a decrease by around 11 mln USD. In nine months the country generated around 140 mln USD, whereas, this year for the same period it got abut 128.5 mln USD from the sector.
During this period, the foreign currency generated from other items, which do not belong to the major export items including gold has also shown decline of more than 13 mln USD, when compared to last year’s same period’s export performance. In nine months last year from these sectors, Ethiopia has obtained more than 78 USD, while this year for the same period the amount declined to 65 mln USD for the same period, according to a Budget Report distributed to the House of Representatives’ last week.
On the other hand, export of flowers has shown increments by about 29 mln USD with performance of 190 per cent when compared to the previous year. Last year the sector generated around 15 mln USD and this year for the same period it generated some 44 mln USD.
Coffee as usual is taking the lion’s share by generating more foreign exchange. This year it generated in nine months an additional 70 mln USD than last year for the same period. Coffee is followed by cereals, spices and oilseeds altogether.
Leather, skins, hides and leather products and tchat, being the fourth export item of the country, are also still dominant followed by meat products along with live animals and flower.
When compared to last year’s total nine months export, the country has shown increment by about 19 per cent by obtaining an additional around 123 mln USD. It has generated a total of some 645 mln USD in nine months and now this figure is increased to some 768 mln USD for the same period.
According to critics, contraband has played a great role inthe decline shown in this year’s export income of Ethiopia. Regional Governments Heads at the first tax conference held in Adama, Oromia few months back, have also admitted the danger that contraband is causing to the export of the country by affecting business community that pay their taxes properly and the country as a whole.

City Switches to Agro Panel

By Tedla Desta

The Addis Ababa City Care Taker Administration has decided to use a new technology in building condominiums as of next year, Dr Engineer Wubshet Berhanu, Manager of the city said.
The new technology called Agro stone has been selected after making all the required studies in the laboratory and practically in sample houses.
The City Manager said that all the inside walls of the condominium houses will be built on a condominium houses will be built on Agro stone panel as of 2000.
An Agronomies don’t require comment which has hired, as an input, use raw materials is law cost (50 %reduction) and is profitable in many aspects reduction he said.
This technology which has been brought to the country by the Addis Ababa city Administration Housing Agency has been used in different parts of the world. With an ambitious plan of producing 5000 agro stone panels per day, factories are being established to produce it in a larger number. The city Administration in its plan of constructing 200,000 houses within fine years has so far built 32, 388 condominiums at 102 sites.
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.
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 city has also announced that it will draw to select winners for the rest of the houses that are under construction or completed.

Harar draws diaspora towards investment
Will the Harari experience serve as an example of others in Ethiopian diaspora?

By Andualem Sisay

The ancient Ethiopian town of Harar is using its Millennium festival to open its gates to Diaspora members to invest in the future development of the historic settlement.
The city has begun celebrating its long-awaited foundation Millennium this week by various activities which are believed to create common understanding among various groups and facilitate the growth of the city. As one of these project is calling back home its diaspora to invest in the city, the Harari Regional Government has since 2005 begun preparations to gather all Hararis home.
Abdulkarim Abdurahman is one who had already decided six months ago to invest in his home town Harar after having lived in Sweden for 25 years. He has invested some 2.4 mln birr in real-estate on the 800sqm plot he received from Harar City administration.
He plans to use the four buildings, each of eight floors and has now reached at the final stage of construction for college purposes or for guest house service, which he hopes will have an impact in solving the shortage of housing in the city. He has also taken investment licenses form the Ethiopian Investment Authority to open a yeast and plastic factory in Addis Ababa .
Hararis are the first settlers of Harar .The the old walled city with its five gates is now planning to rehabilitate three which were damaged when the city began expanding roads.
Commenting on why many Diaspora member are reluctant to invest in Ethiopia due to their different political views, “Our country’s image of poverty and the high unemployment rate are the common problems that we all need to tackle, whether we are supporting this or that party” says Abdulkarim.
“We don’t necessarily need to have identical views with the party in power or another in order to invest in our country. We have already common agendas that we all, being Ethiopians are ashamed of and that require our quick intervention,” he says.
Ahmed Ibrahim, who also shares Abdulkarim’s view of separating politics from fighting poverty, creating jobs and reducing unemployment, is another diaspora member who came back home after 25 years of exile in Tennessee, USA.
”The reward we get by investing in our country gives us both higher mental and financial gains than we get any where else in the world. I believe that many will soon follow our footsteps and begin investing in their motherland no matter what their political views are,” he says.
He plans to invest a total of 300,000 USD in different parts of Ethiopia . He has finalized the construction of a plastic factory and dairy farm in Harar on the 11,000 squre meters of plot that he received from the Investment Office of Harar. He is planning to invest in other parts of the country including in Awasa and Zway in the field of agro-processing.
The Harari People Regional State has prepared some 40,000 square meters of land to allocate during the celebration of the Harar Millennium throughout the month of July.
The decision being taken by the Harari diaspora is believed to be a good example for other Ethiopians, who usually express their love of their country by demonstrations on the streets of Europe and the USA , according to critics.

Egyptian pharmaceutical companies search agents

By Tedla Desta

Egyptian pharmaceutical companies are showing interest to export to Ethiopia, and are searching for an agent, Capital learnt.
Around 10 such companies have met with selected Ethiopian drugs importers.
The company delegations have made deliberations two weeks ago in Addis Ababa on ways that they can start exporting their product to the Ethiopian market. The team also met with government officials.
A non profit organization called Expolink was in Addis Ababa to discover a new market
The Egyptian pharmaceutical industry is considered as one of the oldest strategic industries in the country. It was founded in 1939 with the establishment of Misr Company for Pharmaceutical Industries. The industry developed slowly between the 1960s and 1980s, following nationalization schemes which brought the industry under full government control. With the launching of reform programs in 1991, pharmaceutical companies gained greater autonomy and an increasing number of private sector companies entered the market. At present, there are 30 pharmaceutical-producing companies of which eight are public and 22 private.
The Egyptian pharmaceutical market was valued at LE 4.1 billion in 1999, 94 percent of which is covered by locally produced products. Egypt is the largest producer and consumer of pharmaceuticals in the MENA region, contributing to 30 percent of supply in the MENA market. The MENA region also absorbs most of Egypt’s pharmaceutical exports, which represent approximately 6 percent of total production. The United States plays an active role in the industry through its contribution to foreign direct investment and pharmaceutical imports.
Internal challenges facing the pharmaceutical industry involve the regulatory framework, quality assurance tests, research & development, market fragmentation, limited health-insurance coverage and the presence of production contracts. External challenges involve the implementation of GATT and TRIPS as well as global competition.
Despite these challenges, the Egyptian pharmaceutical market is expected to grow at an accelerated rate to reach LE 5 billion in 2002. Strong investment opportunities exist in therapeutic groups and application of e-commerce is starting to develop. Nonetheless, removing challenges faced by the industry will, no doubt, accelerate performance and improve the overall outlook.
This study provides a general overview of the Egyptian pharmaceutical industry in terms of its structure, market profile, the current challenges, future outlook and investment opportunities. It serves as an indicator to the current and expected performance of the industry for potential investors. Moreover, the study recommends certain guidelines to face internal and external challenges and boost industry performance.

Dukem bridge to be widened for 7mln Birr

The Ethiopian Roads Authority (ERA), said it has launched activities of reconstructing the Dukem Bridge along the Addis Ababa Debrezeit road.
ERA announced that the demolition of the old bridge and construction of the new bridge would be carried out during the next year.
The new bridge will have the capacity of accomadating four vehicles at a time in two directions.
The concrete bridge that would have a 14.6 meters width will have a 2.5 meters pedestrian lane on two sides.
Meanwhile, construction of a diversion metal bridge, that would serve until the completion of the new concrete bridge has been launched.
Some seven million Birr budget has been earmarked both for the construction of the metal and concrete bridges by the Roads Fund Office.
The Authority also indicated that a five year bridges development program has been designed to reconstruct and maintain bridges that have been damaged due to long years of service.
Accordingly, identification of bridges that need to be instantly reconstructed and repaired has been carried out, ERA says.

CRBC to construct Meskel square – Kaliti road

By our staff reporter

CRBC Addis Engineering has signed a 283,652; 225 birr road contract with the Addis Ababa Roads Authority.
The contract signed to construct a 9000 meter long and 40 meters wide road from Mesqel Square to Kaliti Traffic facilitation is expected to be completed in June 2009.
This contract is amongst the five new contractors on June 6, 2007. The other roads being Mekanisa Jamo-Sebeta road, Meskel Flower Hotel- Ethio-China Avenue to Bole road and from Bole Michael Avenue to Bole Rwanda, from Coca Cola – Abenet TekleHymanot Square and Shola market to Lem Hotel -Anbesa Garage to Yerer Ber.
Hazi and CRBC Addis Engineering construction won two bids each while Enye construction won one.
The road to be constructed by CRBC Addis Engendering construction is the longest road, designed and controlled by Zewde Engineering.
Similarly, the AARA signed two terminated contracts with new contractors and two projects relating to road making the total agreements signed seven.
The seven projects are signed with a money amounting 966,669,445 birr.
Roads from African Union to Pushkin Avenue to Mekanisa Ring Road Avenue and from Sost Kuter Mazoria –Besrate Gabriel –Tele to Pushkin Avenue and the two terminated and contracted again to be built by CRBC Addis Engineering.
The two roads are 8700 maters long and 70 meters wide totally to be constructed with 237,470,432 birr.
And other two projects that have relation to roads were singed with a total cost of 39,008,783 birr.
“ Most of the roads included in the construction within a minimum of two years will provide a better traffic flow and make our city beautiful” a press release sent from the Authority.
The Imperial Highway Authority played a major role in the construction of roads until the revolution. The Derg restructured the Imperial Highway Authority as the Ethiopian Road Authority and the Rural Roads Task Force. The government created the latter to develop rural roads outside the main system and to extend feeder roads within the main system. The World Bank, which had financed four previous highway programs, funded this project. In addition, the African Development Bank and the EEC provided assistance for road construction and maintenance. In 1991 completion of an adequate nationwide highway system continued to be one of Ethiopia’s major development challenges

ERCS’s trade fair winds up,
HQ to be built for 73 million birr

By Tedla Desta

The fund raising trade fair and bazaar that was organized by the Ethiopian Red Cross Society, (ERCS) concluded in style after running for one week.
The fund raising ceremony aimed at collecting funds for the construction of the building was the last part of the series of exhibitions planned for this year.
The Ethiopian Red Cross Society, ERCS, is to construct a multi-purpose 12- storey building in the capital at a cost of over 73 million birr.
The details of financial analysis have been finalized along with on implementation and monitoring mechanism of the project including feasibility study.
The project is to be established on 4936 square meters of land (valued at 17.5 million Birr) around Ethiopia Hotel that the Society obtained from the government free of lease.
The building, is scheduled to be completed in three years, will be available to rent for offices, restaurants, financial institutions and travel agents and is also believed to create employment opportunities in the city.
The Ethiopian Red Cross Society prepared two similar fund raising activities to help implement the project and expects to get the support from its all time supporters-the International Red Cross and Red Crescent Federation, the International Red Cross Committee and sister national societies. The Ethiopian Red Cross Society operates in over 1700 Kebeles across the country and it has three million members.
The major activities of ERCS are Health programs and Initiatives, Ambulance Service, Blood transfusion service, HIV/AIDS program, water and sanitation development.

Harar’s attachment to Tchat

By Andualem Sisay

It is mid-day; as part of her routine duty, Meimuna Kedir, 48, has begun selling Tchat by a main road side of Harar city. She grows Tchat, a stimulant, in the backyard of her home. She has been suporting her family of nine by growing and selling it for over 20 years.
You shouldn’t be surprised if you find most offices run out of employees and look dead calm in Harar after lunch. It is not because they have a habit of sleeping for a couple of hours after lunch. The reason for the absence of most employees of the city is rather the opposite of the Spaniards: not to sleep but to awake. It is just because of the habit of chewing Tchat. They chew the leave of the plant because they feel that it will make them alert.
Legend says chewing Tchat was begun long ago by old people of the Muslim community for praising their lord. To the contrary, many Muslims claim that Tchat has no relationship with the religion.
“Sometimes I wish that these people should be allowed to chew Tchat in their offices, instead of stealing 2 work hours on average every day and pull back the development of the city,” says Habtamu Demisse, 35, aninhabitant of Harar, who says he has never chewed Tchat though he was born in Harar.
On the other hand, Tchat is a blessing for Harar and Ethiopia in general as thousands of people directly or indirectly make a living out of it. Every year, the country generates from 50-70 mln USD in exports and is It is the fourth major export item of the country. Not only Ethiopia, even neighbor’s Somaliland’s economy generates a huge amount of money from the tax they collect from Tchat imports.
Though the custom of chewing Tchat is believed to have originated and is highly practiced in Harar, the stimulant also is grown in other parts of the country and chewed by many youngsters and adults. Across the nation. Some countries like the United States of America have labeled it equivalent to other narcotic drugs and do not allow its to use it. But, in other countries like UK can easily buy or sell Tchat.
If once a person is addicted to chewing it, he/she experiences depression, loses interest and energy for work, yawns etc, unless they get the plant on time and of the usual quality they are used to take. Many professionals, including university lecturers, artists singers and others use Tchat. Students starting from junior level to university also chew it believing, that it will help them to focus and better understand the subjects they study. They all claim that they perform, with better creativity when they chew it.
Contrary to this, scholars, who have conducted research on Tchat suggest that such performance improvement and focus as a result of taking the stimulant won’t stay for long and evaporates from the addicted making, them dependant on the plant by losing their natural capacity.
Though there was an attempt by some regional states in the country to forbid people from chewing Tchat, the culture continues to spread in all parts of the country. Rather, the it has recently begins updating itself by decorating it self with Shisha, a custom of the Arab world of smoking various fruit flavored smoke.
As it is difficult to quit chewing Tchat easily once people are addicted and the government of Ethiopia earns a lot from Tchat, it remains being grown and chewed as a product with economic, cultural and social value, according to critics. Ultimately, the lives of Meymuna and thousands like her continue to be to tied toTchat.

Promoting Ethiopia in Houston with $10 mln

By Groum Abate

Celebrating its 37th year, the 2008 Houston International Festival (iFest) will spotlight Ethiopia with art markets, craft demonstrations, and interactive exhibits.
James W. Austin President/COO of iFest told Capital that diverse Ethiopian music and dance would also be presented at the festival that will cost the organizers almost 10 million dollars.
He said participants’ countries and Africans would have the chance to feature in the event their nation’s status in all spheres to attendants of the festival.
Gezahegne Kebede president of the Ethio-American Trade and Investment Council and an honorary member of Council General of Houston, Texas, also said that the Houston International Festival will continue its tradition as one of the largest presenters of world music anywhere on the planet.
In April 2007’s event feature hundreds of internationally acclaimed artists on nine performance venues throughout the festival site featuring China, and in 2006 Jamaica snatched the hounours.
Stretching across 16 acres of downtown parks and streets including City Hall, Ethiopia’s year will feature cultural dances and songs by artists from the National Theater.
The rich architecture, visual arts and diverse sights and sounds of Ethiopia will come alive in this festival. Lucy the oldest human fossil yet discovered among other exhibits highlighting the arts, culture and history of Ethiopia would be displayed.
Some of the presenting art exhibits are also expected to include Ethiopia’s rich religion, art and diverse people of the nation. Visitors will also have the opportunity to observe a traditional Ethiopian coffee ceremony and sample a variety of coffee from the origins.
According to the iFest president, costumes, dances and cuisines of Ethiopia will be featured.
In addition to truly authentic Ethiopian cuisine, the festival will bring together flavors from around the world. These will include African, Cajun, Creole, Caribbean, Chinese, Mediterranean, Thai, Italian, Japanese, as well as Southwestern and Continental.
President Girma W.Giorgis said that the festival, due to take place in 2008, is a noble opportunity for Ethiopia to promote its culture and values to the international community.
Ethiopian Minister of Culture and Tourism, Ambassador Mahamoud Dirir on his part said since Ethiopia is taking part in the festival for the first time, it would be an important venue to promote the potentials and realities of Ethiopia.
Ambassador Mahamoud said an agreement has been reached with the organizers of the festival to display Ethiopian culture, norm, costumes, music, table manner, and films in the festival.
The minister said the festival would have immense contribution in boosting investment and tourist flow to Ethiopia.
The Houston International Festival, which lasts over the course of two weekends, is expected to be visited by not less than 300,000 people.

EU and ESA expect to sign Economic Partnership Agreement

By Tedla Desta

The European Union and countries of Africa, Caribbean and Pacific (ACP) in general and the countries of Eastern and Southern Africa (ESA) in particular are to sign an economic Partnership Agreement (EPA). This was discussed at the regional ESA parliamentarians workshop held in Addis Ababa.
The meeting covered the issues and structures for negotiations, and on how the region is configured for negotiations. The agreement is expected to be signed at the end of 2007.
However, it was also stated that there are differences between the two sides to be resolved.
“The Cotonu Agreement states that the objective of the Economic Partnership Agreements (EPAs) is to reduce poverty by supporting the sustainable development and the general integration of the ACP countries into the world economy’ Ambassador Teshome Toga, Speaker of the House of Ethiopia said.
He added and said, therefore, EPA needed to act as a mechanism to support the development agenda of the ESA region.
“According to the Cotonu partnership agreement which was signed between EU and ACP states the objectives of negotiation on EPA are five fold that is EPA will be an instrument for sustainable development, will support regional integration among the ESA group; EPA will be compatible with WTO rules; EPA takes to account the different needs and levels of development of ESA countries, and will preserve the acquis (preferences acquired under Lome and Cotonou)”. Erastus Mwencha, Secretary General of COMESA said.
The EPA negotiations were launched in February 2004 between the ESA region and the EU.
He said the EPA negotiations are at a very critical stage.” Without overstating this fact I should say that we are rapidly approaching the decisive phase in the negotiations process.
As ESA, we are committed to successfully navigate through to our intended destination and see the completion of a development friendly agreement.” said Mwencha.
“Agreeing on the general principles is one thing; however, changing principles in to effective action is the most important aspect to be considered.” Ambassador Teshome said on his part.
He also said that as the EU is our true development partner, we believe that, this principle will be agreed and appreciated .And that the liberalization of trade would be a tool to help lift our countries out of poverty ,but it should be undertaken within each country at the correct speed and to the appropriate sectors according to each country’s development agenda.

Severe malnutrition in Afar

By Tedla Desta

In a standard nutritional survey conducted in Chifra woreda, zone 1, by Save the Children UK following reports of poor food security due to the failure of the sugum rains,it was indicated that the malnutrition status in the woreda is serious with 11.1 percent Global Acute Malnutrition (GAM).
Low prevalence of Severe Acute Malnutrition (SAM), however, was also estimated by the survey. After reviewing the anthropometric results and the presence of various aggravating factors, ENCU reported that the SAM could have been underestimated. Aggravating factors include - lack of pasture and water availability for human and livestock consumption, unusual livestock migration, absence of milk production for children, low EPI and Vitamin A supplementation and high school dropout rates. Considering all these factors, ENCU recommended the immediate establishment of a Therapeutic Feeding Program in Stabilization Centers and an Outpatient Therapeutic Program. In addition, the survey advocated timely safety net resource allocation and distribution.
In related news, at least 20 million people in the drought-plagued Horn of Africa could need emergency aid if action is not taken immediately to combat food insecurity in the region, United Nations officials said on 26 June.
“The Horn is hit by some of the world’s most severe food crises and they are coming faster and more [furiously] because of climate change, environmental degradation, political and armed conflicts and a host of other factors,” Kjell Magne Bondevik, the UN Special Humanitarian Envoy to the Horn of Africa, told a news conference in Nairobi, the Kenyan capital.
“We all now need to show the commitment to end this cycle of despair and disaster, which if not stopped could next see over 20 million people in need of assistance,” he said.
Bondevik spoke at the end of two days of talks in Nairobi between the six governments of the region - Djibouti, Eritrea, Ethiopia, Kenya, Somalia and Uganda; the UN, donors, research organisations, the private sector and non-governmental organisations.
According to a joint statement by the UN World Food Programme (WFP) and the UN Food and Agriculture Organization (FAO), at least 70 million people – 45 percent of the total population – in the Horn live in abject poverty and face food shortages. Four major droughts hit the region in the past six years.
The road map, they said, resulted from government-led consultations since January 2007 with the support of FAO and WFP, to scale up prioritised interventions in the six countries. The talks produced a list of “170 successful projects, an armoury of interventions that can be extended and expanded in the battle against hunger”.
According to WFP and FAO, the six sets of priorities for partnerships for food security in the region had been identified as: alliances to support millions of pastoralists and agro-pastoralists; the environmental challenge; combating land degradation and desertification; the role of women as a primary force for rural transformation; livelihoods diversification and income-generating activities for the food insecure; risk management and crisis response; and institutional strengthening and community-focused capacity building.
“Breaking the cycle of hunger in the Horn of Africa requires joint efforts by all stakeholders – governments of the region, UN agencies, NGOs and donors,” Paul Gulleik Larsen, the director of the Office of the WFP Executive Director, said.
“The challenge of meeting Millennium Development Goal One of cutting hunger in half is huge, but it is doable. The fact that six countries have joined this consultation shows an encouraging level of political commitment.”

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Severe malnutrition in Afar

VIPs involve in land corruption; artistes, athletes and investors amongst suspects

Capacity tests raise protests at FIRA

Bottles bottleneck Amar

NBE increase reserve requirement for commercial banks

Nine month performance doesn’t seem to promise the country will meet its target of generating 1.5 bln USD by the end of the year, Oilseeds, gold and other export declines

City Switches to Agro Panel

Harar draws diaspora towards investment Will the Harari experience serve as an example of others in Ethiopian diaspora?

Egyptian pharmaceutical companies search agents

Dukem bridge to be widened for 7mln Birr

CRBC to construct Meskel square – Kaliti road

ERCS’s trade fair winds up, HQ to be built for 73 million birr

Harar’s attachment to Tchat

Promoting Ethiopia in Houston with $10 mln

EU and ESA expect to sign Economic Partnership Agreement

Severe malnutrition in Afar

Harar draws diaspora towards investment
Will the Harari experience serve as an example of others in Ethiopian diaspora?

ERCS’s trade fair winds up,
HQ to be built for 73 million birr

Harar draws diaspora towards investment
Will the Harari experience serve as an example of others in Ethiopian diaspora?

ERCS’s trade fair winds up,
HQ to be built for 73 million birr