Former Rental Agency heads in custody
By Tedla Desta
Two former heads of the Rental Houses Agency are in custody in an alleged case of corruption filed by the Federal Ethics and Anti-Corruption Commission, Capital learnt.
Meselech Berhan, General Manager of the former Rental Houses Agency, and Wondwosen Asfaw, Technical and Engineering Department Head of the Agency, were arrested last week by the Federal Ethics and Anti-Corruption Commission for allegedly buying five lifts from Dan Technocraft in an illegal manner, Federal Ethics and Anti- Corruption Commission's Education and Public Relations Head, Berhanu Aseffa told Capital.
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Shareholders, stakeholders from United Bank to sue the National Bank
By Andualem Sisay
Categorically refuting SBB/39/2006 - the new directive of the National Bank of Ethiopia (NBE) - shareholders and stakeholders from United Bank S.C. in their capacities as bank members as well as individually have come together to sue NBE. They are currently completing formalities to take NBE to court on the basis that shareholders' rights have been abused, or that the directive negates certain basic rights which are recognized by law.
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ETC fires sixteen employees at administrative level
By Andualem Sisay
The Ethiopian Telecommunications Corporation (ETC), has fired sixteen employees working in higher levels of administration it found to be corrupt as a result of its audit report.
According to the statement by ETC released to the press on July 13, 2007, the reason for firing the officials is related to the purchae of 625 Erickson and Nokia mobile phone apparatus and Lucent PBXs.
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Drug smuggling and counterfeiting is increasing: DACA
By Andualem Sisay
By progressing from single to multi-product counterfeiting, the escalation in the number of drugs smuggled to Ethiopia is reaching alarming stages, according to a paper presented on a trade practice symposium on Friday, July 14, 2007 at Ghion Hotel.
According to the paper presented by the Drug Administration and Control Authority (DACA), drugs seized during smuggling by the Authority reveal that the quantity and items of drugs which are counterfeited and sub-standard is increasing. Among the drugs seized at one time in Moyale (Kenya border) are 330,000 Levamisol 40mg tablets, 261,670 Gentamycine ampoules and 171,000 Indomethacine 25mg tablets.
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Lion Insurance takes off
By our staff reporter
Becoming the 10th insurance company in the country, Lion Insurance SC was launched on Thursday July 12, 2007 with a paid up capital of 16,610,200 birr.
According to Manager Nega Gebregziabher's report, the company has 309 shareholders and Birr 16,610,200 in paid up capital with Birr 2,657,632 subscribed and Birr 664,408 signed in by the shareholders.
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“Consider the vulnerable consumers before WTO accession”
The Ethiopian Consumers Association
By Andualem Sisay
The Ethiopian Consumers Association said that Ethiopia’s negotiation to the World Trade Organization (WTO) accession has to be done in a way that protects the vulnerable consumers of the country.
According to Tadesse Gessesse, Advisor at the Association who presented his paper on Friday July 13, 2007 at a symposium on trade practice, there has to be a provision that protects the disadvantaged and vulnerable consumers of the country.
“Whatever the WTO and its sponsors may require, whether we join it or stay out, prices of basic commodities can not be left to be set by the market, least to be landed with public unrest and turmoil.” Tadesse said.
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Former FIRA officials hear charges
By Tedla Desta
Woldegabriel Nayzgi, former General Manager of Federal Inland Revenue Authority (FIRA), Nebiyou Samuel, his former Deputy and four other department heads and business owners appeared before court on Thursday, July 12, 2007 and heard the charges against them.
The defense attorney requested that his clients be allowed to be freed on bail citing that the charges weren't accompanied with sufficient evidence. However, the prosecutor, on his part maintained that since the alleged offence was punishable by more than 10 years imprisonment, the defendants don't have the right to bail.
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Ethiopia gets green light for irrigation on Nile
By Andualem Sisay
As a result of the Nile Initiative dialogues among the ten riparian countries of the Nile River, Ethiopia secured funding and a green light to start an irrigation project on 20,000 hectares using the Nile River.
This was realized as Ethiopia signed a 100 mln USD loan agreement with the World Bank on Friday July 13, 2007, for the Irrigation and Drainage project in the Megech and Ribb schemes located in the Lake Tana sub-basin.
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Will Harar end its 20 year water shortage?
The State is negotiating with the Federal government to import equipment VAT and surtax free
By Andualem Sisay
Harar’s water shortage is to be history after a year, if the Federal Government lifts the surtax and Value Added Tax (VAT) imposed on equipment we import, says Bushra Mohamed, Public Relations Head of the Water Supply and Sewerage Authority of the Harari People Regional State.
Although a 100 mln birr bid to supply pumps, generators and electromechanical equipment has passed the selection process, problems arose when the federal government asked the Harari People Regional State to pay over 54 mln birr for Value Added Tax (VAT) and surtax.
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Harar invites investment on minerals
By Andualem Sisay
The Harari Regional State has invited investors to engage in the extraction of non-ferrous minerals and agro-processing.
According to Abduselam Abdosh, Investment Head of the Region, his office has made 31 hectares ready for the extraction of non-ferrous minerals that the investment Authority has previously explored. Quartz and cement are among the minerals found in the area reserved by the authority.
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women lead in bulding condos
Addis lisan sold for up to 30 birr
By Tedla Desta
General Manager of the Addis Ababa City Administration Housing Development Project Office, Tsedale Mamo, said that over 80 percent of the 40,000 workers hired on condominium projects are women.
On July 8, 2007, the winners of condominium houses were announced after a draw by a computerized lottery system. Manager of the Housing Agency of the Administration, Daniel Tadesse, on the occasion said 417,737 city residents contended for the condos.
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CUD trial enters final phase
Decision expected tomorrow
By Tedla Desta
The heavy rain on July 9th persuaded everyone to wear warm clothing. On this day, most expected something positive from the trial of the 38 Coalition for Unity and Democracy (CUD), members found guilty of links to the 2005 protests against alleged poll-rigging in which 193 people died. Some were hopefully murmuring that the 18 month-long political trial would end on this dreary day.
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Publisher and former top officer of TPLF released
By Tedla Desta
Seye Abraha, a former high official of the TPLF, and Fitsumze’ab Asgedom, publisher of The Daily Monitor made their way out of jail on June 11, after spending six years, accused of involvement in grand corruption. Both joined their families on this same day, happily welcomed by their relatives.
They were released a day after the Federal Supreme Court sentenced Seye to five years imprisonment and a 500 Br fine while Fitsumze’ab Asgedom also got five years but as they had both served all the stated years ,they were released.
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Expanding Ethio-Indian ties
By Tedla Desta
The recent visit of the Minister of External Affairs of India to Ethiopia is historic in the record of bilateral relations. This is because Minister Pranab Mukherjee’s visit is the first to Ethiopia by a high ranking Indian official. The Minister of External Affairs’ visit was part of the effort to raise India’s engagement with Africa as a whole and Ethiopia in particular, which has emerged as a close and reliable partner in Africa, it was stated.
The Minister came to Ethiopia invited by his Ethiopian counterpart, Seyoum Mesfin, and stayed from July 4-6, 2007. During his visit the Minister met with high government officials and signed various agreements.
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ECOPIA to start a permanent organic bazaar
By Tedla Desta
In an effort to create a market for organic products in Addis Ababa, Ecological Products of Ethiopia Ltd (ECOPIA), is setting up a permanent bazaar in the city, CEO of the company, Dr.Mitslal Kefleyesus told Capital.
ECOPIA is organizing an Organic Bazaar on the second Saturday of every month at its production facilities in La Gare area starting from 14 July 2007. The bazaar will showcase a host of organic products from Ethiopia and plans to incorporate organic products from other countries in the near future.
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A new city guide map to be available for the millennium
By Kirubel Tadesse
A New spatial guide map of Addis Ababa city, developed by Geo-spatial Information Solutions was presented in a ceremony held at IBEX Hotel on July 12, 2007.
During the ceremony Dr. Ayalew Sisay, commissioner of the Addis Ababa tourism commission, said that Addis Ababa had only two previous maps which are insufficient for current use. He added that the new map will be a great help in assisting tourists in the city. Ato Zelalem Shiferaw, chief executive officer of G.S. INFO. SOLUTIONS said that the preparation of the map took four years and cost half a million birr.
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Price hikes in Somali Region
By Tedla Desta
The price of consumer goods in the Somali region has hiked in a manner that has not been seen so far in the region, sources told Capital.
The sources said that prices have shot up tremendously in the past few weeks as a result of which many consumers found it very difficult to purchase necessities. The sources pointed out that the price of consumer goods such as a kilo of sugar and rice has hiked to 30 br.
“There has never been such an increase in consumer goods in the region; this is by far the highest price hike I have witnessed. If prices continue to be so high, then life would be very difficult,” the source complained bitterly.
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Paschal presents modern systems
By our staff reporter
Paschal, a German-based international construction equipment supplier, presented a modern formwork system to representatives of the Ethiopian construction on Wednesday, July 11th.
Being the second largest employer in the country, the construction sector is an engine for technology, innovation and overall development. While the sector is doing well, it can enhance performance by using international construction tools, such as formwork systems, stated a press release.
Paschal designs and develops construction equipment such as patent formwork and shoring systems for delivery around the world.
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Ethiopia to electrify 295 towns and villages
By Andualem Sisay
Ethiopia received 130 mln USD credit from the World Bank on Friday July 13, 2007 for its Second Electricity Access Rural Expansion project that targets electrification of 295 towns and villages.
The World Bank Board of Executive Directors approved this International Development Association (IDA) credit on July 3, 2007. The credit is provided on the usual IDA terms, with a commitment fee of 0.5 per cent, a service charge of 0.75 per cent, and maturity of 40 years, including a 10-year grace period. MORE
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Former Rental Agency heads in custody
By Tedla Desta
Two former heads of the Rental Houses Agency are in custody in an alleged case of corruption filed by the Federal Ethics and Anti-Corruption Commission, Capital learnt.
Meselech Berhan, General Manager of the former Rental Houses Agency, and Wondwosen Asfaw, Technical and Engineering Department Head of the Agency, were arrested last week by the Federal Ethics and Anti-Corruption Commission for allegedly buying five lifts from Dan Technocraft in an illegal manner, Federal Ethics and Anti- Corruption Commission's Education and Public Relations Head, Berhanu Aseffa told Capital.
The two suspects appeared before court on Thursday 12 July, 2007, and the court granted them a bail. Berhanu claimed that the Commission is going to appeal to the court regarding the bail.
According to Berhanu, the first suspect, Meselech, was in custody for ordering the purchase of five lifts from Dan Technocraft by breaching the purchase procedure and presenting inadequate reasons; though cognizant of the fact that it was incorrect.
And the second suspect, Wondwosen Asfaw, was apprehended for not giving enough time to the technical committee to make the correct investigation and present findings to the bidding committee, though he was aware of the Agency's purchasing procedures.
The Commission has completed the investigation and is to file charges. The bid was made for elevators that cost around 1.9 million birr. The installation of the elevators was to be made in the Philips Building, the Sahle Sellasie Building, the Kidane Building and the Kokeb restaurant.
Shareholders, stakeholders from United Bank to sue the National Bank
By Andualem Sisay
Categorically refuting SBB/39/2006 - the new directive of the National Bank of Ethiopia (NBE) - shareholders and stakeholders from United Bank S.C. in their capacities as bank members as well as individually have come together to sue NBE. They are currently completing formalities to take NBE to court on the basis that shareholders' rights have been abused, or that the directive negates certain basic rights which are recognized by law.
The premises for taking NBE to court are: the directive's sub article 5.1.4 that prohibits a board member of a bank serving as a board member of any other financial institution; and sub article no. 5.1.5, Article of Rotation, that states that a director shall not serve on a board of a bank for more than six years (two consecutive three-year terms) and can only be re-elected after a six year interval. Only 1/3rd of the outgoing board members can be re-elected for one more term for the sake of continuity, according to the directive.
Furthermore, it stipulates that at least 75 per cent of the Board of Directors must hold a minimum of first degrees or above.
At a meeting regarding the directive, over 62% of the shareholders of the United Bank S.C. voted in support of the resolution that the directive of the NBE should be challenged.
In line with this, in its appeal letter to the NBE written on May 31st, 2007, the United Insurance Company, a major shareholder of the United Bank and member of its board maintained that the National Bank of Ethiopia has no authority to pass directives which contradict the Commercial Code of the country.
"...not only has the National Bank of Ethiopia clearly exceeded its legal authority but had also violated a fundamental principle of law, the hierarchy of laws, by attempting to change by a directive, laws legislated by a higher body i.e the Parliament," states the letter written to NBE by EyessusWork Zafu, Managing Director/CEO of the United Insurance S.C.
The letter responded to NBE's notice dated May 3rd that indicated to the United Bank S.C. that United Insurance S.C. cannot serve as board member of United Bank effective from July 1, 2007, quoting sub article 5.1.4 of NBE's directive.
The letter also holds that; "Even if the NBE directive were to stand, the United Insurance, having been elected to the Board of United Bank only a year ago, still has two more years on its mandate.
The NBE has with apparent reluctance written a letter to all banks including the United Insurance that until such time that a comprehensive directive is issued by the bank, banks may continue operating under existing terms and conditions with regards to Insurance companies being allowed to serve as board members of a bank in which their capacity of shareholders.
Ato Eyessus Work Zafu argues that articles 347, 350, 351 and 354 of the Commercial Code of Ethiopia clearly stipulate who the directors of a share company are, their appointment as directors, their replacement and also their removal respectively.
Any directive of the NBE, should not under the law, contravene any existing law of higher order, he explains. NBE cannot amend the provisions of existing laws under the guise of issuing an implementation directive or additional conditions for licensing according to the 'Amendment for new bank licensing and approval of director and CEO directive no. SBB/39/2006'.
Eyessus Work maintains that 'any directive or provision in a directive which contradicts with existing laws and by invoking provisions known to be inapplicable would appear incorrect, 'legally ultra vires and ethically unfair,' as it is primordially outside the law.
Notwithstanding that, it is to be recalled in a legal opinion and comment on the above provisions of NBE's directive no. SBB/39/2006 submitted to the NBE by the Ethiopian Bankers Association in July 2006, it was stated 'the NBE has the power to issue directives, to prescribe qualifications of the officers and directors of the Banks and to prescribe additional conditions for the licensing of banks as well as to take administrative measures. The directive to be issued, the qualifications to be prescribed, the additional conditions to be laid down and or the administrative measures to be taken shall be within the bounds of the law and only for the purpose of the proper implementation of the proclamation.'
The justification forwarded by the National Bank for introducing the new directive is to avoid the conflict of interest that occurs when an individual serves on the Board of Directors of a bank and an insurance company simultaneously. In addition, it is intended to make sure that these banks are run by well educated individuals with management experience in order to protect banks from bankruptcy.
United Bank S.C. agrees with the regulatory role of the National Bank of Ethiopia for the development of the financial sector in the country. "…but strongly question both the legality and wisdom of its attempt 'to micro-manage' commercial banks, first by redefining the Director (additional/new qualifications) and then prohibiting and/or limiting the Director so redefined from carrying out functions for which one had already qualified," states the letter written by the United Bank S.C. Chairman Eyessus Work Zafu, to NBE on August 5, 2006.
NBE's directive VS Commercial Code
The National Bank is authorized to issue directives for the proper implementation of Proclamation No.84/94 regarding Licensing and Supervision of Banking Business. Article 3:1E of the Proclamation states: "It is confirmed by the National Bank of Ethiopia that the Directors and Officers of the company have the qualification prescribed by it (the National Bank of Ethiopia)."
The Proclamation stipulates that none of its terms shall be construed as to relieve a bank from compliance with the provisions of the Commercial Code of 1960 and other laws; however to the extent that any provisions of the Commercial Code and other laws are inconsistent with the provisions of the proclamation, the provisions hereof shall prevail.
The terms of Proclamation No. 84/94 prevail over those of the Commercial Code of 1960 and other laws. This does not mean that any directive, which NBE may issue, will supersede all existing laws of superior order, according to the Ethiopian Bankers Association legal opinion on the issue.
NBE's directive
Describing the uniqueness of the banking sector to Capital two weeks ago, Getahun Nana, Manager of the Banking Supervision Department at NBE, indicated that the directive is only intended for the development of the sector.
He also highlighted that the National Bank of Ethiopia has full responsibility to regulate financial flow in the country to safeguard the economy from possible impacts of bank and insurance accrued risk. As the majority or 90 per cent, of the money that the commercial banks in the country circulate belongs to the public; it is the responsibility of this government institution (NBE) to protect public interest.
Banks operate in an atmosphere of trust and are impersonal institutions that do not cater based on individual acquaintances and favorites. So it is to maintain that public trusts that the NBE is mandated to regulate and monitor the activities and performance of commercial financial institutions. The finance sector is dominated by very few people, and as this raises risks of stagnation in the sector, the new directive intends to diversify the pool of bank officials and management to ensure that more people acquire banking experience with an eye on continuity.
"Deposits are not made in specific banks because of knowing the manager or the Board of Directors of that bank. People deposit their money only because they believe that the government is there to regulate these banks," says Getahun.
"As it is a business based totally on trust and requires special attention and expertise; our regulation is critical and irreplaceable. That is why we introduce new directives whenever we sense that there are grey areas in the industry."
The NBE is intent on closing loop holes and outlining grey areas. This close supervision by NBE of the financial sector is based upon the belief that tight monitoring ensures that the sector's domestic and international reputation for fiscal ethics is preserved.
This is a crucial aspect as currently, observers say Ethiopian banks enjoy a relatively good reputation.
ETC fires sixteen employees at administrative level
By Andualem Sisay
The Ethiopian Telecommunications Corporation (ETC), has fired sixteen employees working in higher levels of administration it found to be corrupt as a result of its audit report.
According to the statement by ETC released to the press on July 13, 2007, the reason for firing the officials is related to the purchae of 625 Erickson and Nokia mobile phone apparatus and Lucent PBXs.
In addition to the current measure taken by the Corporation, the fired individuals will be accountable for their acts, according to the statement.
Stating that the measure was taken based on the internal audit reports of the corporation, the statement of ETC indicated that there is ongoing investigation in other project areas.
Based on the internal audit reports of the corporation, the Ethiopian Telecommunications Corporation has made the front page news of newspapers in the country, revealing the extent of corruption the corporation is mired in.
The loss of 1.52 bln birr due to the delay in the Erickson project, payment for incomplete projects, service inefficiency, problems with the billing system and disappearance of documents on how money is disbursed by the corporation, were a few of the problems covered by newspapers recently.
In addition, people disappeared with the corporation’s cash and complaints from mobile phone customers were also among the items pertaining to ETC that were given extensive media coverage.
Although Capital’s attempt to learn if these 16 individuals are under detention failed, some of them have fled the country after being alerted by the recent reports on ETC, according to sources.
The report of the auditors of the corporation has also made liable the previous five management members and other individuals of the corporation for being involved in corruption in relation to the above two projects.
The five are:
1- Tesfaye Biru, former ETC General Manager
2- Abebe Belayneh, former Deputy Manager
3- Asfaw HaileMariam, former Information Technology and Data Service General Manager
4- Abayneh Abebe, former Telecom Service General Manager,
5- Abebe Taye, former Telecom Network Acting General Manager
The sixteen dismissed high-level employees
1-Abebe Gashaw, Deputy General Manager (Technical Advisor)
2-Wondimu Girma, Deputy General Manager (Business Advisor)
3-Reta Desse, Acting Deputy General Manager (Operations)
4-Robel Deressa, General Manager Broadband SBU
5-Muoth Tsegaye, Department Head (Finance and Business Control)
6-Kebede GebreSilassie, Department Head (International Service)
7-W/ro Abebu Mamo, Senior Expert
8-Dr.Fiseha Mekuria, Telecom Engineering Department Head at Telecommunication and Information Technology Collage
9-Anteneh Mekonen, Network Performance and Planning Head Office Manger
10-W/ro Nigist kebede, Mobile Planning and Technical Support Head Office Manager
11-Mengistu Mola, Network Performance and Planning Deputy Head Office Manager
12-Tesfaye Addisse, Mobile Regional Network Technical Support Head Office Manager
13-Takele Mengesha, Telecom Engineering, SBU, Acting General Manager
14-Birhanu Asfaw, Management Accounts Head Office Manager
15-Elias Terefe, Transport Network Department Marketing and Customer Support Head office Manager
16-Melak GebreHiwot, Get way Switching Head Office Manager
Drug smuggling and counterfeiting is increasing: DACA
By Andualem Sisay
By progressing from single to multi-product counterfeiting, the escalation in the number of drugs smuggled to Ethiopia is reaching alarming stages, according to a paper presented on a trade practice symposium on Friday, July 14, 2007 at Ghion Hotel.
According to the paper presented by the Drug Administration and Control Authority (DACA), drugs seized during smuggling by the Authority reveal that the quantity and items of drugs which are counterfeited and sub-standard is increasing. Among the drugs seized at one time in Moyale (Kenya border) are 330,000 Levamisol 40mg tablets, 261,670 Gentamycine ampoules and 171,000 Indomethacine 25mg tablets.
The major sources of the drugs have been found to be some Asian countries and Kenya from Africa. According to the World Health Organization (WHO) 1999 report, India, Pakistan and other Asian countries are the major sources of counterfeit drugs produced in the world contributing 62.9 pc.
WHO defines counterfeiting as: "using in any way, that packing material or identification or any trademark, trade name or any special mark thereon of an authentic product of a manufacturer without the permission of the manufacturer and presenting such falsely labeled and packed drugs as if it is manufactured by the genuine manufacturer."
The data presented highlight the danger of drug smuggling through the porous and practically un-patrolled borders and the potential of neighboring countries in serving as supply points. Moreover, it gives an insight for the need of appropriate action to reduce the influx of smuggled drugs in the country, before the problem progresses further.
Moyale, which is located 783 km south of Addis Ababa is a well-known hub for a wide-range and massive contraband trade and illegal movement of people. According to the data, 138 items of drugs were disposed at the time. Out of the drugs smuggled through Moyale, Kenya is the main source by contributing 27 pc, followed by India and China that make up 23 pc and 8 pc by England.
At the time of disposal, 45 pc of the drugs were already expired. Internationally and nationally controlled drugs such as Pethidine 100mg ampoules, Phonobarbitone and Chlodiazepoxide+clidinium tablets were also among the seized drugs. A majority of the drugs were human drugs though there were a few veterinary products.
Among the drugs seized at another control post, Negelle, 2,842,600 tablets of Dipyrone 500mg, a forbidden drug by the WHO, is the highest quantity. It also includes 1,730,000 Vitamine B-Complex and 1,120,800 Doxycycllin 100mg tablets.
The majority of these drugs had labels indicating that they had not been expired at the time of disposal; however, 29 pc were already unusable.
The origins of the sub-standard and counterfeited drugs seized by the Authority in Negelle include India with 30 pc followed by China's 24 pc and Pakistan's 17 pc. Negelle, which is 625 km south of Addis Ababa, is a hub as well as a center for the distribution of contraband commodities smuggled from Somalia and Kenya.
The domination of the Anti-biotics among the drugs seized by the Authority is a direct reflection of the country's health problem pattern, in which infectious diseases are the main causes of morbidity and mortality.
Moreover, it conforms to the results of the assessment of the reports sent to WHO between 1999-2002, that put anti-biotics on top of other counterfeit drugs.
Lion Insurance takes off
By our staff reporter
Becoming the 10th insurance company in the country, Lion Insurance SC was launched on Thursday July 12, 2007 with a paid up capital of 16,610,200 birr.
According to Manager Nega Gebregziabher's report, the company has 309 shareholders and Birr 16,610,200 in paid up capital with Birr 2,657,632 subscribed and Birr 664,408 signed in by the shareholders.
Tadesse Haile, State Minister of Trade and Industry said financial institutions that are motors and precipitators of development are very essential for the sustainability of the economic growth and propagation of investment in the country." "I want to address that you should abide by the law and customs to provide all the services that the public wants to get from the company." he added.
The Manager noted that the Country's Business law allows members of the committee to get 20 % of the Insurance Company's net profit for three years owing to the contribution they offered, but that they have showed their dedication by paying all the costs by themselves.
The sprouting company has been selling shares for the last five months, and has so far managed to sell shares worth 15 million Br.
Insurance companies in Ethiopia have generated 840 million Br in revenue from premiums sold in the 2006/07 budget year. This amounts to a 25pc increase over the previous year. The Ethiopian Insurance Company commands the biggest market share, claiming 45pc of the total industry.
It is to be recalled that Lion Bank, sister company to Lion Insurance, was established in January 2007 with 100 mln Br in paid up capital by 3,700 shareholders.
“Consider the vulnerable consumers before WTO accession”
The Ethiopian Consumers Association
By Andualem Sisay
The Ethiopian Consumers Association said that Ethiopia’s negotiation to the World Trade Organization (WTO) accession has to be done in a way that protects the vulnerable consumers of the country.
According to Tadesse Gessesse, Advisor at the Association who presented his paper on Friday July 13, 2007 at a symposium on trade practice, there has to be a provision that protects the disadvantaged and vulnerable consumers of the country.
“Whatever the WTO and its sponsors may require, whether we join it or stay out, prices of basic commodities can not be left to be set by the market, least to be landed with public unrest and turmoil.” Tadesse said.
He further noted that some developed nations like the USA and France have market regulating mechanisms to protect their less than 3 pc vulnerable consumers, and commented that Ethiopia, having 50 per cent vulnerable consumers, critically needs to include such provisions in WTO agreement. He brought up France as an instance and noted that it still controls the price of milk and bread, while it distributes annual subsidies to its farmers. He then made his point that access to basic goods and services such as food, housing, transport, water and electricity need not be totally left free for private investors.
There has to be legal protection for the vulnerable consumers set and socially responsible traders need to be created in the long run before leaving these sectors open for private business, according to his presentation.
The advisor indicated that with 72 pc of the city’s population utilization of public transport, transport scarcity is more stringent and requires quick solutions. The advisor said “by African standards our public transport fare is one of the most affordable, and should continue to be subsidized. However, many solutions should be tried in order to identify and keep the most suitable one to curve the present transport scarcity.”
“In a country where a consumer protection law is not enacted, protecting the consumer is quite a nightmare. The absence of legislation for various disadvantaged consumer groups exposes them to all manners of abuse and also makes for a weak and disadvantaged sector. This legal deficit has a negative impact on the way programs for disadvantaged consumers are selected and implemented,” he said.
Former FIRA officials hear charges
By Tedla Desta
Woldegabriel Nayzgi, former General Manager of Federal Inland Revenue Authority (FIRA), Nebiyou Samuel, his former Deputy and four other department heads and business owners appeared before court on Thursday, July 12, 2007 and heard the charges against them.
The defense attorney requested that his clients be allowed to be freed on bail citing that the charges weren't accompanied with sufficient evidence. However, the prosecutor, on his part maintained that since the alleged offence was punishable by more than 10 years imprisonment, the defendants don't have the right to bail.
The court in closing, ruled that the defendants pursue their defense from jail where they are remanded and set a date for July 21, 2007 at which they can submit their defense.
The defendants were arrested for alleged tax evasion by the Federal Ethics and Anti-Corruption Commission (FEACC), two weeks ago.
The other four people are: Eneyew Mengistu, former Manager of the Addis Ababa branch of FIRA and now a private business man; Tilahun Melaku, Revenue Inspection Department Head of the Authority; Teka Abraham, former Head of the Tax Setting Department and now internal auditor; and Alemayehu Bekele, head of the family business, Bekele Mola Hotels Plc.
The Commission's charge to the court states that Woldegabriel and Nebiyu illegally tried to exempt Alemayehu Bekele, General Manager and major shareholder of Helena Health Care Products Plc, from paying taxes, going far beyond their duties to give him an unfair advantage. "Based on the calculation made by the auditors of the Authority, from 1992 to 1997 e.c, the company should have paid profit and sales taxes amounting to 2,072,467.41 Br, while it was made to pay only 1/3 of it by FIRA's General Manager and his Deputy," stated the charges read to them.
Woldegabriel was accused of passing an order for the enforcement of the unlawful practice while the other three applied the illegal order.
Woldegabriel served FIRA for over 26 years in different capacities until he left his position in 2006.
Ethiopia gets green light for irrigation on Nile
By Andualem Sisay
As a result of the Nile Initiative dialogues among the ten riparian countries of the Nile River, Ethiopia secured funding and a green light to start an irrigation project on 20,000 hectares using the Nile River.
This was realized as Ethiopia signed a 100 mln USD loan agreement with the World Bank on Friday July 13, 2007, for the Irrigation and Drainage project in the Megech and Ribb schemes located in the Lake Tana sub-basin.
After signing the agreement, World Bank Country Director for Ethiopia and the Sudan, Ishac Diwan, said “It is an historic moment that demonstrates the benefits of political dialogue.” Sufian Ahmed, Minister of Finance and Economic Development, on his part also said: “the agreement is the first of its kind, which contributes a lot to the poverty alleviation effort of Ethiopia.”
Supporting the release of the money, the Sudanese Minister of Irrigation, Engineer Mohamed Bahar, has also indicated in his letter to the World Bank that his government does not oppose Ethiopia’s irrigation and Egypt’s already underway West Delta projects on the Nile River.
The Irrigation and Drainage project has evolved from national work and a series of regional meetings. The Eastern Nile Council of Ministers (ENCOM) decided in March 2001 that funding should be sought to advance studies of promising irrigation and drainage sites to feasibility and design level. In October 2004, ENCOM decided to fast-track the preparation of the Irrigation and Drainage project.
The money obtained from the Bank will also be used for a feasibility study of irrigation of an additional 80,000 hectare of plot. The project is expected to involve 12,600 households of subsistence-oriented small holder farmers, who are currently dependent on unreliable rainfall.
The project has also a component that aims to promote sustainable intensification and commercialization of agriculture on the irrigation systems and another component that enhances the efficiency and financial sustainability of irrigation infrastructure.
As indicated in the statement of the World Bank, the Board of Executive Directors of the bank have approved the credit under the International Development Association (IDA), to help increase agricultural productivity, accelerate growth and reduce rural poverty in Ethiopia.
The credit is provided on standard IDA terms, with a commitment fee of 0.5 per cent, a service charge of 0.75 per cent, and a maturity of 40 years, including a ten year of grace period.
Ethiopia’s irrigation potential has been estimated at up to 3.7 mln hectares, of which up to 2.2 mln hectares are located in the Nile basin part of the country. Total area under irrigation is estimated at 197,000 hectares, of which 30,000 hectares are inside the Nile basin.
Actual irrigation development represents 5 pc of potential, and less than 0.6 pc of the arable area. Irrigation accounts for 3 pc of food production. The Water Resources Development Strategy of Ethiopia (2002-2016) envisages the development of over 260,000 hectares of irrigation in small, medium and large scale schemes with a total cost of 1.7 mln USD.
The government’s Millennium Development Goals (MDG) strategy calls for a rapid scaling up of existing irrigation development plans. According to the MDG needs assessment, the plan for irrigation development is 717,400 hectares. The total estimated cost for study, design and construction of the expanded area was estimated at 11,470 mln USD.
The Eastern Nile Subsidiary Action Program, which includes Egypt, Ethiopia and Sudan, seeks to initiate a regional, integrated, multi-purpose program through a first set of investments. The Eastern Nile riparians have identified sub-projects in the areas of integrated water resources management, flood management, power generation and interconnection, watershed management and irrigation and drainage.
The Nile River Basin Initiative was officially launched in February 1999 by the Council of Ministers of Water Affairs of the Nile Basin States. Sudan, Egypt, Ethiopia, Kenya, Tanzania, Uganda, Burundi, Democratic Republic of Congo, Rwanda and Eritrea as observer, are the Nile Basin States.
Will Harar end its 20 year water shortage?
The State is negotiating with the Federal government to import equipment VAT and surtax free
By Andualem Sisay
Harar’s water shortage is to be history after a year, if the Federal Government lifts the surtax and Value Added Tax (VAT) imposed on equipment we import, says Bushra Mohamed, Public Relations Head of the Water Supply and Sewerage Authority of the Harari People Regional State.
Although a 100 mln birr bid to supply pumps, generators and electromechanical equipment has passed the selection process, problems arose when the federal government asked the Harari People Regional State to pay over 54 mln birr for Value Added Tax (VAT) and surtax.
“As we have got no guarantee from the Federal Government to be exempted from surtax and VAT to import the equipment, part of the project that can not do without the equipments has been put on held and the Harari People Regional State is negotiating with the Federal government to finalize the issue,” Bushra said.
Bushra pointed out that the completion of the Dire-Jara water project would ensure no more water problems in Harar for at least the coming twenty years. He went on to say that this will be a relief for the inhabitants of the city besides further facilitating the ongoing development activity in the region.
The project should have been concluded nine months ago but it has been delayed because the contractor faced shortages of materials such as cement after the project was launched.
Currently, there are seven waterholes that are supplying water in shift to a population of 160,000. In addition to the population living in the city, 29, 000 others in the rural areas of Harar are also suffering from the water shortage.
It was to solve this problem that the Dire-Jara project was initiated ten years ago by digging 17 waterholes at Asandiso, found 71 km from Harar and 25 km from DireDawa. Of the17 waterholes dug by the region at a cost of 4 mln birr, potable water was tapped from the twelve.
The contractor, China Overseas Construction Company, has finalized the installation of some 60 km of pipeline, according to Bushra.
The project is funded by a 215 mln birr loan and a 12 mln birr grant from the African Development Bank (ADB), 66 mln birr from the Harari People Regional State and another 20 mln birr loan from the Water Development Fund of Ethiopia. The project fund agreement was signed two years ago.
Harar invites investment on minerals
By Andualem Sisay
The Harari Regional State has invited investors to engage in the extraction of non-ferrous minerals and agro-processing.
According to Abduselam Abdosh, Investment Head of the Region, his office has made 31 hectares ready for the extraction of non-ferrous minerals that the investment Authority has previously explored. Quartz and cement are among the minerals found in the area reserved by the authority.
The investment authority has also finalized a project study and made land available for investors who wish to be engaged in farming and agro processing in the region. Local investors in partnership with foreign firms are invited to invest on this 86 mln birr farming and agro processing business, according to Abduselam.
The project includes farming and processing of agricultural products that will be used for production of smoke free fuel and products for medical purposes. Recently, as the Regional State of Harar continued to provide the necessary incentives to encourage investors to work in the region, a new five star hotel, the Heritage Plaza, opened business last October.
Currently a four star hotel is under construction in Harar to boost the tourist facilities of the region. On July 6, 2007, Harar also got a four mln birr recreation center.
“This is a rapid project completed in less than a year’s period and we appreciate the recreation center’s contribution for the tourism sector of the region,” said Murad Abdulhadi, at the inauguration ceremony of the recreation center built by Ferehan Basha, an investor who spent more than 20 years abroad.
On his part, Ferehan Basha, said: “The rising number of hotels and recreational centers in Harar, along with many investment activities that are underway mostly by foreign based individuals from Harar, will have a big role for the development of the city.”
According to the investment head of the Region, “When the water problem of the region is solved once and for all next year and Harar gets a road linkage to the Port of Djibouti and Berbera after about three years, the region’s growth will be more rapid than its current pace.” Awmer and Deker are the roads under construction with aid from the World Bank.
women lead in bulding condos
Addis lisan sold for up to 30 birr
By Tedla Desta
General Manager of the Addis Ababa City Administration Housing Development Project Office, Tsedale Mamo, said that over 80 percent of the 40,000 workers hired on condominium projects are women.
On July 8, 2007, the winners of condominium houses were announced after a draw by a computerized lottery system. Manager of the Housing Agency of the Administration, Daniel Tadesse, on the occasion said 417,737 city residents contended for the condos.
Starting from this year, the winners will pay 20% directly to the Administration while the rest will be paid over time. Daniel Tadesse said 30 pc of the condominiums have separately been left aside for women living in the city, apart from the rest 70pc that will be determined by the lottery draw, irrespective of gender.
A list of the winners of the draw has been published in the July 11th, 2007 ‘Addis Lisan’ newspaper, the City Administration’s organ. Following the publication of the issue that has the names of the winners, the price of the newspaper shot up to 30 birr.
Similarly, Tsedale said that 33,000 houses are planned to be built in the coming year at five large sites - Jamo, Gofa Camp, Gotera, Akaki and Bole- Ayat.
Another 3,000 condos have already been reserved for those displaced by the on-going development activities launched in the city. Some 300 studios and one bedroom condos would be given to those who were on the reserve list during the lot undertaken in 1998 E.C.
Daniel Tadesse, said the on-going housing development program launched to alleviate shortage of residential units in the city is getting both domestic and international recognition.
The draw excluded those who owned houses as well as those who declined to receive condos during the first draw.
CUD trial enters final phase
Decision expected tomorrow
By Tedla Desta
The heavy rain on July 9th persuaded everyone to wear warm clothing. On this day, most expected something positive from the trial of the 38 Coalition for Unity and Democracy (CUD), members found guilty of links to the 2005 protests against alleged poll-rigging in which 193 people died. Some were hopefully murmuring that the 18 month-long political trial would end on this dreary day.
The defendants entered the court at 10:20 am. Shortly after; relatives, journalists and observers started to come out of court. It was then that the many who did not manage to enter the court learnt that the prosecutor had requested the death penalty for the 38 opposition figures convicted last month of planning a coup to overthrow the government. Although capital punishment exists in Ethiopia, its practice is infrequent.
At the hearing, Chief Prosecutor Abraha Tetemke requested the Penal Code’s maximum punishment to those found guilty of plotting against the constitution.
Families and relatives of the defendants said they feared their relatives could face what was requested by the prosecutor. “We can’t say a pardon will be granted to them or expect that they will be sentenced to death, but from what we have seen so far, it is rather frightening,” one family member said anonymously. He added that most of those who are behind bars are bread winners for their families and that it is difficult to describe the hardship they find themselves in.
Many had voiced the hope that the group’s alleged admission two weeks ago that mistakes were made on both side in the aftermath of the election results would help alleviate the severity of their charges. The court is expected to issue a sentence on Monday July 16, 2007.
As a part of its ruling on July 9, the court had summoned the those defendants who chose to be represented by counsel to submit their defense arguments for July 12, 2007. Accordingly, Netsanet Demissie and Daniel Kebede of the Civic Societies, submitted documentary evidences along with the names of 160 witnesses to the court. The two had insisted to be allowed to start their defense earlier but this were delayed because of the prosecutor’s demand to be given the witness list.
Netsanet and Daniel were reluctant to do so for fear that their witnesses would be intimidated. The court found that they were within their rights on this issue, sources say.
Moreover, their request to be allowed bail a second time was denied as the court stated that it has dealt with the question of bail rights and that there remains nothing further to amend in this regard.
The first charge entails life imprisonment or death; the second, rigorous imprisonment not exceeding 15 years; and the third charge, rigorous imprisonment from 10 to 25 years. All defendants have been cleared of the fourth charge. The fifth charge could lead to 5 to 25 years rigorous imprisonment, or in cases of exceptional gravity, such as in time of war or threat of war, to life imprisonment or death.
Three individuals namely defendant Hailu Shawel, Abayneh Berhanu, and Major Getachew Mengistie have been convicted of the fifth charge.
Under the first, second and fifth, on three concurrent charges, 19 individuals have been convicted including Dr. Berhanu Nega. Under the first and third, on two concurrent charges, three individuals have been found guilty. Under the first charge, eighteen individuals, and under the amended first charge two others were convicted.
In respect to the publishers convicted under the provisions of the Criminal Code cited in the first charge, the punishment of a fine up to Birr 500,000 (Five Hundred Thousand) as well as the additional penalty of suspending, closing or winding up the publishing organization have been prescribed.
The nation is waiting with bated breath to hear the outcome of tomorrow’s court session.
Publisher and former top officer of TPLF released
By Tedla Desta
Seye Abraha, a former high official of the TPLF, and Fitsumze’ab Asgedom, publisher of The Daily Monitor made their way out of jail on June 11, after spending six years, accused of involvement in grand corruption. Both joined their families on this same day, happily welcomed by their relatives.
They were released a day after the Federal Supreme Court sentenced Seye to five years imprisonment and a 500 Br fine while Fitsumze’ab Asgedom also got five years but as they had both served all the stated years ,they were released.
Seye, who was one of the founders of the TPLF and later defense minister during the transitional period, was charged on two counts; pressuring the state owned Commercial Bank of Ethiopia (CBE) to release loans to his brother, Mihretab Abraha, and helping him get a 19pc discount when the latter acquired 15 trucks from AMCE, a joint venture trucks assembly plant where the state controls 30pc. The Supreme Court, however, dropped the first charge last week, while it convicted Seye on the charge that he helped his brother get the discounts on seven of the 15 trucks. Mihretab was sentenced to five years imprisonment and a 1,000 Br fine.
Assefa Abraha, Seye’s younger brother and former Chairman of the Ethiopian Privatization Agency, received a sentence of nine years, while the former General Manager of the Agency, Beshah Azmte, was sentenced to eight years behind bars. The sentence on Heraier Behesnilian, a major shareholder of Hagbes Plc, importer of vehicles, generators and machineries, remains to be read to the jury as he is abroad for medical treatment.
Tamrat Layne, Prime Minister during the transitional period, had also served a three-month sentence. Both former senior government officials were accused by the Federal Ethics and Anticorruption Commission of abuse of office in aiding their associates gain benefits in accessing bank loans, acquiring trucks and buying state properties from the government through privatization.
Tamrat was accused of helping a businessman, Kahsay Abay, import five used trucks without paying duties in 1992. Kahsay, whose case has been tried in absentia, was sentenced to serve six years. Tamrat was sentenced to an 18-year term in 1997 after he was convicted of abuse of power. He was charged by prosecutors from the Ministry of Justice (MoJ) for the Commission was not established then and the country did not have an anti-corruption legislation.
The Supreme Court said, however, that had this new charge by the Commission been brought against Tamrat at the time, the additional sentence would have been three months.
Tamrat was the founder and leader of the former Ethiopian People’s Democratic Movement (EPDM), member of the alliance in the ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF). The party has since changed its name to the Amhara National Democracy Movement (ANDM), after the EPRDF assumed power.
Expanding Ethio-Indian ties
By Tedla Desta
The recent visit of the Minister of External Affairs of India to Ethiopia is historic in the record of bilateral relations. This is because Minister Pranab Mukherjee’s visit is the first to Ethiopia by a high ranking Indian official. The Minister of External Affairs’ visit was part of the effort to raise India’s engagement with Africa as a whole and Ethiopia in particular, which has emerged as a close and reliable partner in Africa, it was stated.
The Minister came to Ethiopia invited by his Ethiopian counterpart, Seyoum Mesfin, and stayed from July 4-6, 2007. During his visit the Minister met with high government officials and signed various agreements.
In an effort to boost their economic ties, India and Ethiopia signed a Bilateral Investment Promotion and Protection Agreement (BIPPA) on Thursday 5 July, 2007 when External Affairs Minister Pranab Mukherjee held talks with his counterpart Seyoum Mesfin.
The two sides also marked a pact for establishing a Joint Ministerial Commission and a protocol on foreign office consultations on the second day of Mukerjee’s four-day visit.
India seeks to expand trade and commercial ties with Ethiopia, which is slowly emerging from economic doldrums ever since the exit of the Derg regime in the early 1990s, and New Delhi has identified it as one of the focus countries for promotional activities.
“We have excellent political, economic and cultural relations with Ethiopia...our endeavors are to strengthen the relationship and expand cooperation in all the fields,” said Mukherjee.
Both countries had established a joint trade committee and a joint business council besides entering into several commercial bilateral treaties over the years with an aim to increase trade ties.
Mukherjee said that India’s relationship with Ethiopia dates back to early years and noted that it has steadfastly supported New Delhi, including in its desire to become a permanent member of the U.N. Security Council.
India has pledged to provide a loan amounting to 640 million US Dollars for helping upgrade the sugar industry in Ethiopia. The agreements would enable Ethiopia to benefit from the rich experiences India has mustered, especially in the areas of sugar, textiles and small-scale industries. The pacts include establishment of a Joint Ministerial Commission, an Investment Promotion and Protection package, cooperation in the fields of science and technology, an education expertise exchanges program as well as a Protocol for consultations between the two foreign affairs ministries.
“Our commitment to peacekeeping in Africa remains steadfast, and currently we have almost 7,000 troops deployed in the Sudan, on the border between Ethiopia and Eritrea and the Democratic Republic of Congo. The FM said, while addressing the Special Session of the Parliamentary Standing Committee, “Our participation in the UN peacekeeping operations in Africa stems from our deeply held belief that ensuring peace and security is a pre-requisite for the socio-economic development of our friends in the continent.”
Inauguration of the Pilot Project for Tele-education in the Addis Ababa University
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.
On the inauguration ceremony, Pranab Mukherjee said, “I am delighted to be with you today to inaugurate the nodal centre for the Indo-Ethiopian tele-education pilot project at the Addis Ababa University. This pilot project is a direct outcome of the offer made by the President of India in 2004 of the e-network project that allows information technology to be used for education and healthcare of the people in Africa.
He said about 3000 Ethiopian students are currently in India for higher studies on self-financing basis. On return, they would be useful assets and contribute to the development of Ethiopia and explained that the tele-education programme will have several benefits. It would help provide higher education at low costs in diverse subjects from top quality Indian institutions. Students would not have to leave the country.
“My delegation and I were extremely happy to be in Ethiopia. We spent three days on Ethiopian soil and have been touched by the warmth of the welcome and the generous hospitality extended to us by the government and people of Ethiopia. Our historical ties go back in history and we have civilization links.” he said.
The Foreign Minister was scheduled to give a press conference to journalists on Friday 6th of July, 2007 However, it was cancelled for undisclosed reasons.
Meeting Lucy
The visiting Indian External Affairs Minister, Pranab Mukherjee, also visited the Ethiopian National Museum on the same day just after having called on President Girma Woldegiorgis at the National Palace.
The Minister visited Dinkinesh or “Lucy”, fossilized remains of Australopithecus afarensis discovered in 1974 at Hadar in Ethiopia, and Selam, a recent discovery of a 3-year-old Australopithecus afarensis female whose bones were first found in Dikika, also in the Afar State.
After visiting the museum, the Minister said, “It was quite fascinating to visit the museum. Ethiopia and the Horn of Africa contain the evolution of humankind over millennia and the museum displayed some of these species. It is the heritage of the entire human kind.”
Minister Pranab Mukherjee has extended his inrtation to foreign Minister Seyoum Mesofin to Visit India in 2008.
ECOPIA to start a permanent organic bazaar
By Tedla Desta
In an effort to create a market for organic products in Addis Ababa, Ecological Products of Ethiopia Ltd (ECOPIA), is setting up a permanent bazaar in the city, CEO of the company, Dr.Mitslal Kefleyesus told Capital.
ECOPIA is organizing an Organic Bazaar on the second Saturday of every month at its production facilities in La Gare area starting from 14 July 2007. The bazaar will showcase a host of organic products from Ethiopia and plans to incorporate organic products from other countries in the near future.
Products that will be sold at the bazaar include organic pickles, jams, jellies and fruits. Besides, it will also retail several flavors of organic honey, candles made of beeswax, a range of organic cereals and pulses, organic spices and so on.
The decision to create an organic bazaar was driven by the desire to raise consumer awareness about the benefits of organic products while simultaneously forging a direct link between the producers and consumers of organic products, said Dr. Mitslal Kifleyesus-Matschie. Another objective behind the organic bazaar is the desire to promote organic farming by creating an independent marketing network for organic farmers. The organic bazaar concept was based on a system devised by the firm to promote Sustainable Development.
While this month’s organic bazaar will be organized on 15 July 2007 at La Gare, the long-term objective is to create an organic market with the ambience of Ethiopian’s traditional open-air markets.
ECOPIA uses natural herbs, spices, sun-dried fruits and natural extracts to flavor oil. This method preserves the nutritional value of our 100% cold-pressed organic oil because it is possible to completely avoid heating of the oil and still create these wonderful flavored oils for diabetics.
It is the first organic food production, processing and exporting company in the horn of Africa. ECOPIA was founded by a team of food production scientists and experts in the fields of market research, business strategy and innovation management from Europe and the horn of Africa.
Dr. Mitslal Kifleyesus-Matschie said that ECOPIA is a pioneer in providing healthy food and ecologically sustainable products by a combination of the highest-quality food technologies which are non-intrusive in human- environmental relations.
Established in 2005, ECOPIA is based in Addis Ababa, Ethiopia. The company was founded by Dr. Mitslal Kifleyesus-Matschie. She also said that the company, within the last eight months, has equipped itself more to start making alcohol, cheese, camel cheese and other dairy products.
A new city guide map to be available for the millennium
By Kirubel Tadesse
A New spatial guide map of Addis Ababa city, developed by Geo-spatial Information Solutions was presented in a ceremony held at IBEX Hotel on July 12, 2007.
During the ceremony Dr. Ayalew Sisay, commissioner of the Addis Ababa tourism commission, said that Addis Ababa had only two previous maps which are insufficient for current use. He added that the new map will be a great help in assisting tourists in the city. Ato Zelalem Shiferaw, chief executive officer of G.S. INFO. SOLUTIONS said that the preparation of the map took four years and cost half a million birr. The map divided Addis into twenty six major categories; starting from Governmental offices and Embassies to streets named after African countries. Banks, Hotels, Theaters and Gas Stations are among the twenty six. The map is prepared in English but can easily be converted into Amharic on demand. According to the CEO, such changes and other contenious modifications are simple because of the high quality of the software used to prepare the map.
The new Addis guide map is intended particularly for shoppers and tourists coming for the millennium celebration. The map will soon be available online and 20,000 printed maps will be distributed in Airline terminals, tour agents, and Super Markets. Two maps were on display at the ceremony out of which one of them was given to the Addis Ababa Tourism commission. The second was intended for the Addis Ababa City Administration but they did not receive it as they failed to appear. The company is planning to distribute the map for schools and other educational institutions free of charge
The Cartographers who prepared the map are Zelalem Shiferaw and Alem Assegid, both AAU graduates of geographical information systems and remote sensing. G.S. Info Solutions is one of the few groups that are engaged in geographical information database preparation, data clearing and related activities. The group has been conducting different scientific approaches in spatial mapping procedures since July 2000.
Price hikes in Somali Region
By Tedla Desta
The price of consumer goods in the Somali region has hiked in a manner that has not been seen so far in the region, sources told Capital.
The sources said that prices have shot up tremendously in the past few weeks as a result of which many consumers found it very difficult to purchase necessities. The sources pointed out that the price of consumer goods such as a kilo of sugar and rice has hiked to 30 br.
“There has never been such an increase in consumer goods in the region; this is by far the highest price hike I have witnessed. If prices continue to be so high, then life would be very difficult,” the source complained bitterly.
The source also said that the intensified counter-insurgency campaign against Somali rebels by the government or some sort of road blockade was the cause for the current price escalation.
Unconfirmed sources also disclosed to Capital that around 400 rebels have been killed by the Ethiopian Defense Forces and the road construction undertaken by Chinese contractors is under high security. The source also said that the region’s police are also undergoing internal examination with large deployment of the Federal Police in the region’s capital, Jijiga.
It is to be recalled that, in the previous weeks, human rights groups voiced their concerns regarding the situation in the region. “The Ethiopian military has forcibly displaced thousands of civilians in the country’s eastern Somali region in recent weeks while escalating its campaign against a separatist insurgency movement”, Human Rights Watch said on July 4, 2007. “Ethiopian troops are destroying villages and property, confiscating livestock and forcing civilians to relocate, whatever military strategy behind the action, these abuses violate the laws of war.” according to Peter Takirambudde, HRW’s Africa Director.
Paschal presents modern systems
By our staff reporter
Paschal, a German-based international construction equipment supplier, presented a modern formwork system to representatives of the Ethiopian construction on Wednesday, July 11th.
Being the second largest employer in the country, the construction sector is an engine for technology, innovation and overall development. While the sector is doing well, it can enhance performance by using international construction tools, such as formwork systems, stated a press release.
Paschal designs and develops construction equipment such as patent formwork and shoring systems for delivery around the world.
The company has come to Ethiopia to present its modern construction equipment to the Ethiopian construction management companies, architects and engineers and construction companies involved in the University Capacity Building Program to representatives of the Chamber of Commerce, Ministry of Capacity Building, Addis Ababa University, and others.
“This equipment creates the opportunity to modernize the Ethiopian construction sector once companies decide to purchase them .Advantages will be faster construction as well as the saving of costs and manpower by improving the quality. This will, in the long term, strengthen the economy of Ethiopia in a sustainable way.” the release added.
The University Capacity Building Program is an innovative capacity development venture jointly undertaken by the Government of Ethiopia and German Technical Cooperation (GTZ). It combines capacity development with cost efficient and timely construction of universities, many of them in remote locations. The UCBP is changing the way Ethiopia’s construction sector works by having Ethiopian firms plan, design and build universities in a way that challenges current practices in the country. A phased approach to building allowed inauguration of several universities in early 2007.
In 1964, Josef Maier started up a company called “G. Maier Metallverarbeitung” (metal processing) now PASCHAL in Steinach in the Black Forest. Even back in the early days, he had recognized that a systematic approach could make work on building sites much easier, more economical and safer.
The “standard formwork” was the first formwork to earn the name “system”. Workers on the building sites soon referred to it as the “patente Schalung” (patent formwork) which was then abbreviated to give the product and thus also the company name which remains valid up to the present day: PASCHAL.
Since then, patent formwork and shoring systems have been continuously developed and permanently adjusted to growing requirements in the building trade
Ethiopia to electrify 295 towns and villages
By Andualem Sisay
Ethiopia received 130 mln USD credit from the World Bank on Friday July 13, 2007 for its Second Electricity Access Rural Expansion project that targets electrification of 295 towns and villages.
The World Bank Board of Executive Directors approved this International Development Association (IDA) credit on July 3, 2007. The credit is provided on the usual IDA terms, with a commitment fee of 0.5 per cent, a service charge of 0.75 per cent, and maturity of 40 years, including a 10-year grace period.
The project is expected to reach about 2 mln people including providing power for schools, clinics and public street lighting for towns and villages. It is also believed to enhance income-generating opportunities and boost agricultural productivity.
Grid Access Expansion, Off-Grid Access Expansion and Capacity Building are the three major components indicated in the project.
Connecting about 265 rural towns with 252,000 potential customers in a population of about 1.1 mln inhabitants, and connecting 286,000 new or indirect household customers to the grid distribution system are the major activities that will be implemented under the Grid Access Expansion component. Ensuring affordability by offering poor customers with five year-loans to defray the costs of connection, and providing energy efficient bulbs to reduce monthly payments is another objective of Expansion component.
Off-Grid Access Expansion aims to connect 40,000 new customers in 30 rural towns using renewable technologies. This is expected to provide some basic electric services such as lighting and cooling to remote clinics and schools in very remote areas.
The project will also support scaling up of electrification and efficient use of energy in its capacity Building component. In addition, the project will work hand in hand with rural communities to increase post-harvest agricultural productivity as a result of electricity access.
Only about 15 per cent of the total Ethiopian population lives in electrified areas. The government-owned Ethiopian Electric Power Corporation (EEPCo) has about 1,130,000 customers, including 360,000 in Addis Ababa where the connection rate is 33 pc. However, the connection rate of most towns and villages in the country is below 2%. Of the 6,000 rural towns, only 160 are connected to the grid, with an estimated 100,000 direct customer connections.
EEPCo is working to increase the 178,767 directly connected customers in 2006 to 250,000 this fiscal year.
Number of Customers and electrified towns

EEPCo's Universal Electricity Access Program is designed to provide grid-based electrification for most rural towns and villages over a ten-year horizon. These rural towns/villages range in size from about 100 or less to 15,000 inhabitants.
The objective is to increase the access rate from the current 15 pc level to 50 pc over a five-year period, with a view to connecting virtually all rural towns and villages to the grid in a ten-year horizon. To this end, the government of Ethiopia is proposing to allocate about 1.3 bln USD over the next five years, with further allocations in the following years.
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