ETC, ZTE strike $1.5 bln loan
By Groum Abate
The Ethiopian Telecommunications Corporation (ETC), has signed a 1.5 billion dollar loan with the Chinese ZTE for the upgrading of its telephone network.
ETC in September 2006, signed a memorandum of understanding (MoU) with three Chinese telecom companies; ZTE Corporation, Huawei Technologies Co and Chinese International Telecommunication Construction Corporation (CITCC), to undertake expansion projects worth 1.5 billion dollars, effective for four years.
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PPESA seeks partner for palm oil project
By Andualem Sisay
The Privatization and Public Enterprises Supervising Agency PPESA, is looking for a partner for its palm oil project which is to cost an estimated 299mln birr.
The objective of the project includes edible-oil production for domestic consumption and substitutes of edible and non-edible oils and fats. In addition, the project also intends to produce raw materials for local industries, increase the export of oil seeds and opportunities for the transfer of technology to suitable areas.
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Ethiopia keeps booming
By our staff reporter
No oil, no precious minerals are driving Ethiopia's economic growth forwards by two digits each year. Hard work, economic reform and investments in its people and infrastructure are showing results to lift one of the world's poorest nations up to new heights.
Ethiopia, with a population of 75 million, is the second most populous country in sub-Saharan Africa. One of the world's oldest continuous civilizations, Ethiopia is also one of the world's poorest. At US$ 130, Ethiopia's per capita GDP is only about a fifth of the sub-Sahara African average, according to the World Bank.
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Al-Amoudi slips in richest list
By Eskinder Michael
Business tycoon Mohammed Al-Amoudi, who Forbes Magazine ranked last year as the 77th richest person, has slipped nine places to 86th this year.
William Gates III, owner and founder of Microsoft, stood first for the 13th time as the richest person in the world with a net worth of 56 billion USD. He was followed by Warren Buffett, whose net worth was put at 52 billion USD. The third richest person in the world is Carlos Slim Helu and hails from Mexico with a 49 USD.
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City to set up millennium council
By Groum Abate
The Caretaker Administration of Addis Ababa is going to set up its Millennium Council for millennium celebrations in the city.
The city, which plans to celebrate the millennium at Meskel Square, has already signed a Memorandum of Understanding with local companies.
The founding conference of the Addis Ababa City Millennium Council would also be held next Tuesday.
The council would comprise of 127 members drawn from governmental offices, non governmental organizations, civil society, prominent personalities, artists, religious leaders, and others.
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Eritrea flashes warning to Uganda
By Eskinder Michael
Essayas Afeworki, President of Eritrea, through his Minister of Information has sent a warning to Ugandan President Youeri Museveni, telling him to withdraw his troops from Somalia or face unforgivable punishment.
Essayas, who has now set a record by clashing with almost every leader in the East Africa Region, has issued a warning to Uganda concerning the peacekeeping troops that it sent to Somalia in the wake of the war between Ethiopia and the United Islamic Courts.
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Millennium council needs 72 mln for seedlings
New Year bash to cost 14 million birr
By Eskinder Michael
The Ethiopian Millennium Council has announced that it requires 72 million birr to plant seedlings across the country.
Seyoum Bereded, Director General of the Ethiopian Millennium Festival National Secretariat had earlier stated that the council would launch the millennium celebrations by planting trees. According to the council’s studies, it costs from 1-2 birr per seedling and in order to plant 30 million seedlings, it requires a total of 72 million birr.
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Starbucks brews battle with Ethiopia
The chain rejects coffee trademark rights for indigenous beans, writes Dominic Rushe of the Sunday Times
Friday last week was an annual holiday in Ethiopia to commemorate the Battle of Adowa in 1896 and the routing of Italian forces at the end of the first Italo-Abyssinian war.
Holiday or no holiday, the Prime Minister, Meles Zanawi, spent part of the day drawing up his defences in another battle, one that has occupied the country for the past two years - a fight with Starbucks over the impoverished country's famous coffee.
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Chamber selected to jury
By Andualem Sisay
The Addis Ababa Chamber of Commerce and Serctoral Association (AACCSA) has been selected by the World Chambers Federation (WCF), to serve as a jury member of the World Chambers Competition.
The competition will take place at the 5th World Chambers Congress to be held in Istanbul, Turkey from July 4-6, 2007. It gives international recognition to the most innovative projects undertaken by chambers of commerce from around the world. “This is a great honor for us as it implies the recognition we have internationally,” says Teferi Asfaw, the head of Media and Public Relation at Addis Ababa Chamber of Commerce.
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AU begins deploying peacekeepers to Somalia
By Andualem Sisay
The African Union began its peacekeeping mission to Somalia by deploying the first Ugandan troops on Tuesday morning, March 6, 2007.
“We started this morning deploying Ugandan peace keeping troops as the first contingent that comprises of three battalions,” said AU Commissioner for Peace and Security Ambassador, Djinnit Said at the press briefing held at the African Union in Addis. “Our goal in Somalia is to help the Somalis to build their own institutions.”
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Gov’t offices prepare BPR
By Eskinder Michael
The Ministry of Finance and Economic Development (MoFED), Ethiopian Customs Authority (ECA), Ministry of Trade and Industry (MoTI), the Commercial Bank of Ethiopia (CBE), Ethiopian Electric Power Corporation (EEPCo), and the Federal Inland Revenue Authority (FIRA), are among the first government offices to finish preparing their Business Processing Reengineering (BPR), it was learnt.
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Heroes’ tombs desecrated
By our staff reporter
The tombstones of former Olympics marathon gold medalists Abebe Bikila and Mamo Wolde were this week desecrated by unknown persons, it was learnt.
The two athletes, who won Olympic gold in Tokyo, Rome and Mexico, were laid to rest at the cemetery in St Joseph’s church. According to Abeselom Yihdego, long standing athletics supporter, philanthropist and owner of Keste Damena Foam Factory, the tombstones were torn down during the evening.
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Census gives exams breather
By Eskinder Michael
The highly anticipated national census has reportedly compelled the Ministry of Education to postpone the country’s annual regional and national exams.
Following the change of schedule, the 8th grade national exams are now scheduled well into the Ethiopian rainy season for June 13-15, 2007, while the 10th grade General Secondary Education Certificate Examination GSECE, will be administered from June 20-23, 2007.
According to the ministry, 11th and 12th grade students who are in the preparatory program will take university entrance exams from June 25–27, 2007.
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NBI launches Ethiopian Nile Youth Network
By Andualem Sisay
Under the theme ‘Empowering the next generation-Youth in the Development of the Nile River Basin’, the National Nile Youth Network was launched on Saturday March 10, 2007 after a two-day conference at Global Hotel here in Addis.
The conference is organized by the Ethiopian Nile Basin Dialogue Forum (EtNBDF), which is founded in 2005 with the objective of making Nile Basin Initiative (NBI) live up to its stated objective of reducing poverty among other things.
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Dialysis machines in cold storage
Only ten for ten mln people
By Andualem Sisay
Six dialysis machines imported for renal replacement therapy which can be used to provide an artificial replacement for lost kidney function, were found locked away in a Ministry of Health warehouse. Meanwhile people with kidney problems are dying due to a dire storage of dialysis machines.
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Nyala favors trusty women
By Tsion Aklilu
Nyala Insurance distributed free coupons for female clients on March 8-Women’s Day.
“Women are cautious drivers, let us follow them”, this logo was draped at NOC Mart and gas station which is located between Meskal Square and Bambis on March 8.
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ETC, ZTE strike $1.5 bln loan
By Groum Abate
The Ethiopian Telecommunications Corporation (ETC), has signed a 1.5 billion dollar loan with the Chinese ZTE for the upgrading of its telephone network.
ETC in September 2006, signed a memorandum of understanding (MoU) with three Chinese telecom companies; ZTE Corporation, Huawei Technologies Co and Chinese International Telecommunication Construction Corporation (CITCC), to undertake expansion projects worth 1.5 billion dollars, effective for four years.
According to the quarterly magazine of the corporation, Tele Negarit, ETC struck the loan deal for a staggering 1.5 billion dollars from ZTE in November at the Sino-Africa Forum held in China.
The corporation has devised a scheme whereby telecom equipment suppliers will make use of this opportunity and arrange a vendor financing scheme so that they can supply goods and services as may be required by projects.
When the project is completed, the present 4,000 kms long optical fibre deployment will reach 10, 000kms, the prevailing mobile network expansion capacity of 1.5mln will reach 7 mln with 3- G high mobile Technology, (‘Third generation mobile’ which is equipped with image, internet and other accessories with soft switches).
The present telecom service coverage to rural kebele villages through wireless phones will reach 10,000 from the present 5, 000 and that of the fixed telephone network from 1 mln to 4 mln.
The Chinese investment forms part of a 2.4 bln dollar plan by the Ethiopian government to improve the country’s telecoms inrastructure.
PPESA seeks partner for palm oil project
By Andualem Sisay
The Privatization and Public Enterprises Supervising Agency PPESA, is looking for a partner for its palm oil project which is to cost an estimated 299mln birr.
The objective of the project includes edible-oil production for domestic consumption and substitutes of edible and non-edible oils and fats. In addition, the project also intends to produce raw materials for local industries, increase the export of oil seeds and opportunities for the transfer of technology to suitable areas.
The project is proposed to clear a net area of 5,000 hectares for palm oil plantations composed of palm oil and kernel processing units and a refinery. A hybrid variety called tenera has been adapted to warm and humid rainforest areas and pioneered in 1990 at Gelasha, in Gambela Region.
Ethiopia produces crude palm oil using village oil processing plants based on a 100 hectare oil palm plantation at Gelasha.
The share of palm oil to the total world vegetable oil production has increased from 15 to 21 percent during the past decades. The world average per capita consumption of oil and fat increased from 14.57 kg in 1987 to 17.12 kg in 1997.
Estimated annual consumption of edible oil in Ethiopia is 1 kg per head with 3.55 kg per head for urban areas and 0.55 kg per head for rural areas. Total consumption is estimated to be 63,581 tons per annum. However, local production of oil is about 9,000 tons per year.
Besides edible oil, kernel oil and other derivatives can be produced from palm oil. Unlike other oils, palm oil has vitamin A. Industries like wine, soap, manufacturers of food, cosmetics, candles and detergents also use products of oil palm as raw material. Oil cake from palm kernel can also be used as a source of animal feed.
According to the information obtained from PPESA, in the first year of the project, 500 hectares of palm will be planted and starting from the 4th year, the production of crude palm oil, refined palm oil and oil cake will be 45, 93 and 32 tons respectively. The production is to keep increasing over the subsequent 19 years reaching to 7252 tons of crude oil palm, 15,229 tons of refined palm oil and 1377 tons of oil cake in year 14, after which the production is assumed to stabilize and gradually decline after year 25.
The main oil crops cultivated in Ethiopia include ground nuts, linseeds, rapeseed, sesame seed, cotton seed and niger seed. Oil crop contribution to the country’s foreign exchange earnings is amounting to 114 mln birr per annum on average.
Ethiopia keeps booming
By our staff reporter
No oil, no precious minerals are driving Ethiopia's economic growth forwards by two digits each year. Hard work, economic reform and investments in its people and infrastructure are showing results to lift one of the world's poorest nations up to new heights.
Ethiopia, with a population of 75 million, is the second most populous country in sub-Saharan Africa. One of the world's oldest continuous civilizations, Ethiopia is also one of the world's poorest. At US$ 130, Ethiopia's per capita GDP is only about a fifth of the sub-Sahara African average, according to the World Bank.
But growth is extremely robust in this potential African powerhouse, comparable only to the oil-driven economies of Angola and Equatorial Guinea. In fact, the four years of double-digit growth is best characterized as a boom. And contrary to oil-booming states, very much of the economic growth reaches the poor masses of the country.
This was confirmed today by Takatoshi Kato of the International Monetary Fund (IMF), ending a high-profile visit to Addis Ababa. Mr Kato described developments in Ethiopia in more a rosy rhetoric than is normal for IMF officials, emphasizing he had felt "a strong sense of partnership between Ethiopia and the IMF."
Despite having all economic factors against it - Ethiopia's GDP still relies to almost 50 percent on its drought-exposed agriculture, it is landlocked and has few mineral resources - the country has managed to sustain high growth over a four-year period. For Mr Kato and the IMF, this mainly comes as a result of implementing economic policies prescribed by the Fund.
The IMF official expressed his support for "the government's overall strategy to strengthen the foundations for growth - with an increasing role for the private sector - while preserving macroeconomic stability. This broad strategy includes maintaining a sustainable debt position, while scaling up public sector investment in the key areas of infrastructure, health and education, boosting overall economic activity through commercialization of agriculture, and fostering the non-farm private sector," he concluded.
But the Ethiopian success does not only stem from sticking strictly to IMF solutions - that would have triggered equal growth in most other African nations that practically are under the Fund's administration. Ethiopia has been better than other countries in investing in key sectors that empowers the poor masses, mainly in education, infrastructure, and agriculture.
One of the results is that the agricultural sector - which employs the large majority - is contributing even stronger to the rapid economic growth than other sectors. Weather conditions have not been the only reasons for the last years' bumper harvests of coffee - which last year contributed for 48.4 percent of exports - and oilseeds (12.7 percent). Massive road construction and rural education schemes have been equally important to boost production.
According to the latest forecast by the Ethiopian Ministry of Finance and Economic Development, real GDP growth for the 2006-07 fiscal years will be at an impressive 11 percent. Growth in 2005-06 was at 10.6 percent and two years before, even at 13.1 percent. This strong growth has meant that real per capita income has increased at about 7 percent per annum over the past three years - the fastest rate in Ethiopia's recent history.
But Ethiopia still remains exposed to the crippling effects of drought. This was made clear in the 2002-03 season, as real GDP declined by 3.5 percent as a result of the poor performance of the agricultural sector due to a severe drought. But that detraction also came after years of economic instability and poor growth, meaning that the effects of recent reforms had not been noted. Analysts by now expect Ethiopia to be better positioned to meet the next severe drought - which is sure to come.
National statistics also document that growth has been invested in reducing poverty and creating amore robust environment to meet external shocks. Access to education has increased, with the primary enrolment rate rising from 64.4 percent in 2002-03 to over 80 percent by now. Access to clean water has risen from 34.1 percent in 2002-03 to 42.2 percent in 2004/05. In addition, the coverage of the roads network has increased from 31 kilometres per square kilometre in 2002-03 to 33.6 in 2004-05.
The only current cloud on the sky is that these social investments and the economic boom also have led to a relative high inflation, which has hit the poor strongest. This is however addressed by the Ministry of Finance and the National Bank of Ethiopia, which aim at lowering inflation during this fiscal year.
All in all, however, analysts expect the Ethiopian boom to continue during the next few years. A severe drought is sure to slow down growth, but will probably not lead to an economic detraction like five years ago. Also the IMF's Mr Kato, who saw some "challenges ahead for Ethiopia to sustain rapid growth," was widely optimistic that the Addis Ababa government was now on the right track to overcome these obstacles.
Al-Amoudi slips in richest list
By Eskinder Michael
Business tycoon Mohammed Al-Amoudi, who Forbes Magazine ranked last year as the 77th richest person, has slipped nine places to 86th this year.
William Gates III, owner and founder of Microsoft, stood first for the 13th time as the richest person in the world with a net worth of 56 billion USD. He was followed by Warren Buffett, whose net worth was put at 52 billion USD. The third richest person in the world is Carlos Slim Helu and hails from Mexico with a 49 USD.
Born in Wollo, al-Amoudi was worth 6.9 billion dollars last year when he was ranked 77th among the world’s richest. His slip in the rankings however does not tell the whole story of his net worth having increased.
The 61 year old Al-Amoudi was declared as a self made billionaire by Forbes and his net worth was estimated at 8 billion USD.
A Saudi citizen, Al Amoudi made his fortune in construction and real estate before betting on energy. His Swedish refinery Preem, is now evaluating expansion possibilities into the renewable fuels sector, while his Svenska Petroleum is developing a new field off Cote d’Ivoire.
The billionaire has so far invested over a 1 billion USD in Ethiopia, with his investment ranging from hotels (Sheraton Addis), construction, real estate, manufacturing, mining (gold), and services such as, engineering and gas distribution.
A soccer fan, he sponsored the Confederation of East & Central African Football Associations soccer tournament last year.
The Ethio-Saudi business mogul is also seeking to enter the telecom business, which will be a new sector for him in Ethiopia.
The Sheik is also to hire expatriates to study gemstone reserves in the country. The gemstone feasibility study would mainly be conducted in Oromia Region but includes other states.
Al-Amoudi with his investment hand MIDROC-Ethiopia, presently operates close to 45 enterprises such as Sheraton Addis, Midroc Construction Ethiopia, Moha Soft Drinks S.C., National Mining Corp., National Motor Companies, Ethio Leather Industries (ELICO) P.L.C., Elfora Agro-Industries P.L.C., Bauer-Midroc, Sara Lamps, Ethio Coffee & Tea Plantation & Marketing P.L.C. and Kombolcha Steel Products Industry (KOSPI), to name a few.
Forbes pinned down 946 billionaires, including 178 newcomers and 17 who climbed back into the ranks after being absent for a year or more. Two-thirds of last year’s billionaires are richer. Only 17% are poorer, including 32 who fell below the billion-dollar mark. The billionaires’ combined net worth climbed by $900 billion to $3.5 trillion.
Russia now has 53 billionaires (2 shy of Germany’s total), but they are worth $282 billion ($37 billion more than Germany’s richest)
India’s rich are also marching toward the top of rankings. Brothers Mukesh and Anil Ambani, who split up their family’s conglomerate in 2005, join Lakshmi Mittal, who heads the world’s biggest steel company, Arcelor Mittal, among the world’s 20 wealthiest. India now has three in the upper echelons, second only to the U.S.
City to set up millennium council
By Groum Abate
The Caretaker Administration of Addis Ababa is going to set up its Millennium Council for millennium celebrations in the city.
The city, which plans to celebrate the millennium at Meskel Square, has already signed a Memorandum of Understanding with local companies.
The founding conference of the Addis Ababa City Millennium Council would also be held next Tuesday.
The council would comprise of 127 members drawn from governmental offices, non governmental organizations, civil society, prominent personalities, artists, religious leaders, and others.
The conference is expected to approve a two-year strategic plan of the office, projects to be implemented during the two years, and other related documents.
The Addis Ababa City Millennium Office has been established in December 2006.
The establishment of a millennium park, millennium libraries, as well as 34 festivals and exhibitions are among the major projects which are expected to be approved by the council.
Eritrea flashes warning to Uganda
By Eskinder Michael
Essayas Afeworki, President of Eritrea, through his Minister of Information has sent a warning to Ugandan President Youeri Museveni, telling him to withdraw his troops from Somalia or face unforgivable punishment.
Essayas, who has now set a record by clashing with almost every leader in the East Africa Region, has issued a warning to Uganda concerning the peacekeeping troops that it sent to Somalia in the wake of the war between Ethiopia and the United Islamic Courts.
Ethiopian troops, along with Temporary Federal Government (TFG) forces, expelled the UIC and captured Mogadishu. This is not the first time for Essayas to demand the withdrawal of troops as a month ago, he called for the speedy withdrawal of Ethiopian troops from Somalia.
Though ousting the UIC officially took just four days, Ethiopian and TFG troops went on hunting remnants of the terrorist group, in particular, with aims of capturing the leader, Dahir Hassan Aweys.
Prime Minister Meles Zenawi, who said that Ethiopia’s plan was to pull out its troops a soon as possible, also stated that this would happen when peace and stability have reigned over Somalia and when a peacekeeping force has been deployed.
Somalia is home to about 10 million people, and has been without a functioning central authority since strongman Mohamed Siad Barre was ousted in 1991.
Relations between Ethiopia and Eritrea have been strained since they fought a devastating 1998-2000 war over the ownership of a tiny strip of barren land along their common border.
Millennium council needs 72 mln for seedlings
New Year bash to cost 14 million birr
By Eskinder Michael
The Ethiopian Millennium Council has announced that it requires 72 million birr to plant seedlings across the country.
Seyoum Bereded, Director General of the Ethiopian Millennium Festival National Secretariat had earlier stated that the council would launch the millennium celebrations by planting trees. According to the council’s studies, it costs from 1-2 birr per seedling and in order to plant 30 million seedlings, it requires a total of 72 million birr.
The plan to get everyone in Ethiopia to plant trees seems well on the way. Every family including those with no space to plant trees can contact their Kebeles, which will provide plots.
The council also said that it chose different kinds of trees to be planted in various regions based on the climate of each. This action will be followed by building millennium parks in all 11 regions. The council puts the estimated cost of building each park at 2 million birr.
While launching the councils Strategic Plan, Deputy Prime Minister Addisu Leggese was quoted as saying that this was the first time for Ethiopia to celebrate a New Year of such caliber, and this could bring pressure on those tasked with it. “Though we have a short time left, we have to work hard to make it a reality,” he added.
Seyoum said that the council needed 203 million birr to meet all its goals and that it has devised ways to collect that money from donors, sponsors, sales of different items made for the purpose and special lottery proceeds.
“The Ministry of Revenue has allowed the National Lottery Administration to print a lottery (to be launched on New Year’s Eve), the proceeds which will be forwarded for the council as well as another lottery following the millennium celebrations,” he said.
The New Year party will be launched with an all-night TV show hosted by the Millennium Council.
The party will include music from all the regional states of Ethiopia and other African countries and will be aired for ten hours. The council has already acquired the services of local and foreign artists who will take part in this marathon event. The council however, wants as much local music, costumes and musical instruments to be displayed in the show as possible.
Though the council believes that the cost of this program will be fully covered by sponsors, there is one expense that it believes is a priority. This is to install giant screen TV’s on the streets of all regional capitals.
The council believes that this project will cost 14 million birr.
The council on Thursday March 8, 2007 also approved the draft Millennium Strategic Plan document and 17 of the selected projects that would be completed for the millennium.
Starbucks brews battle with Ethiopia
The chain rejects coffee trademark rights for indigenous beans, writes Dominic Rushe of the Sunday Times
Friday last week was an annual holiday in Ethiopia to commemorate the Battle of Adowa in 1896 and the routing of Italian forces at the end of the first Italo-Abyssinian war.
Holiday or no holiday, the Prime Minister, Meles Zanawi, spent part of the day drawing up his defences in another battle, one that has occupied the country for the past two years - a fight with Starbucks over the impoverished country's famous coffee.
This is a modern engagement fired by globalization and lawyers. But according to Starbucks' critics, it tells an ancient tale, with the coffee chain branded as modern-day colonialists exploiting Ethiopia's 1000-year-old coffee culture. Fittingly enough, the fight is being played out on that most modern of battlegrounds - the video site YouTube.
Coffee is Ethiopia's largest export and the country produces some of the finest beans in the world. The growing global demand means quality beans are attracting premium prices. To secure its slice of the action, in 2005 Ethiopia's Government launched an application to trademark the country's gourmet coffee beans in the US.
The Ethiopian Government argues that trademarks would protect the country's millions of coffee farmers and give them a greater say on prices. Oxfam has estimated that trademarks would add pound stg. 47 million ($117 million) a year to the Ethiopian economy.
Ironically, the most high-profile objector to this rebranding exercise has been the biggest coffee brand in the world. The spat has landed Starbucks in a public relations nightmare, with the ethically minded company accused of acting tough with one of the world's poorest countries.
Starbucks' size has increasingly thrown up ethical and cultural dilemmas for the company. Howard Schultz, the chain's founder, recently warned that Starbucks was in danger of losing its identity.
Late last month it looked as though an agreement was about to be reached to end the war in east Africa. But now Ethiopia's representatives are accusing the Seattle-based coffee chain of spin. Meles is expected to soon issue a statement underlining the fact that no agreement has been reached.
The row is potentially damaging for Starbucks' image and Ethiopia's economy. The company's annual sales of $US7.78 billion ($10 billion) are equal to more than three-quarters of Ethiopia's entire GDP, which was $US9.78 billion in 2006.
Douglas Holt, the L'Oreal professor of marketing at Oxford University's Said Business School, says the company is "playing Russian roulette" with its brand.
At the heart of the dispute is Ethiopia's desire to trademark some of its most famous coffees. Coffea arabica, parent plant to the coffee bean, is indigenous to Ethiopia and is believed to have been cultivated there for more than 1000 years. The word "coffee" itself is thought to be derived from the name of the place from which coffee originated, Kaffa in Ethiopia.
The quality beans produced by Ethiopia attract premium prices - but not for the country's farmers. According to Oxfam, Ethiopian growers selling to Starbucks earn between US75c and $US1.60 a pound on beans that Starbucks on-sells for $US26 a pound.
Speciality coffees in other regions of the world can get up to 45 per cent of the retail price, compared with the 5 to 10 per cent Ethiopians receive.
Premium coffee is a growing market and, to benefit from the rising demand, the Ethiopian Government set out to trademark three regions of the country associated with its finest beans - Sidamo, Harar and Yirgacheffe. The Government then asked Starbucks and other coffee firms to sign a licensing agreement recognizing the brands. One large US coffee company, Green Mountain, has already done so.
Starbucks objected to the trademarks. Last December, Dub Hay, head of Starbucks' coffee team, released a video on You Tube stating that Ethiopia's position - trade marking geographic areas - was "against the law". He said that "certification" was a better approach for the country - similar to Jamaican Blue Mountain coffee or Florida orange juice. The video has now been watched almost 30,000 times.
Roberta Horton, a partner with Arnold & Porter, the Washington-based law firm representing Ethiopia's trademark claims, says Hay's statement is "a bunch of nonsense".
"Ethiopia wants to protect a valuable commodity and build up its intellectual property assets," she says. "Many Third World countries haven't always been in a position to do it. Now they (Ethiopia) are and they have every right to do it." Horton says that in building and protecting its brands, Ethiopia is simply employing the same tactics used by Starbucks itself.
One of the trademarks - Yirgacheffe - has been passed by the US authorities. Under US law there are legal arguments against the trade marking of regions - although there are also exceptions. There have been claims the US authorities did not understand that Yirgacheffe was a region. But Starbucks' involvement in the trademark row sparked a furious reaction from Oxfam and other critics. Hay has apologized for saying the application was illegal.
In a note added to the YouTube video last week, Starbucks says: "Since this video was posted, a lot has happened. When we posted this video we felt the information was correct and since we've learnt a lot and realised the information about the legality of the trademark was not accurate."
Ron Layton, CEO of Light YearsIP, a Washington-based IP-rights body advising the Ethiopian Government, says: "Their position is mendacious. Starbucks never once validated any of their nasty claims and now they are saying they were not true. Why have they left Dub Hay's video on YouTube? Nearly 30,000 people have seen that now. They should compensate the Ethiopians for all the damage that has been done." Ethiopia represents a fraction of Starbucks' coffee and a tiny part of the company's overall expenses.
Starbucks has "never articulated" why it opposed Ethiopia's trademarks, says Layton. "My theory - and it is a theory - is that Starbucks was far happier with the previous situation where coffee countries did not have a say and Starbucks had all the power."
Certification guarantees quality and origin of the goods, but a trademark gives the local coffee producers a clear stake in the retail price, he says.
"Ethiopians feel very deeply about this. Ethiopia has a hot product in a hot market. Starbucks' immediate reaction to their attempt to exert control of that product has been to exert its power and for it to try to keep control," Layton says.
Last month, senior Starbucks executives met Ethiopian officials in Addis Ababa after Hay apologized for his You Tube posting. The company also says it will double its coffee buying in the region by 2009 and will extend the schemes it has successfully used in South America to give farmers greater access to agricultural support and credit.
Starbucks has promised to drop its objections to Ethiopia's trademarks. But critics say the move falls a long way short of a resolution. The objections have now been taken up by a lobby group, the National Coffee Association, a move made at Starbucks' behest, Oxfam and Layton argue. Nor has Starbucks said it would sign a licensing agreement with the Ethiopians if they successfully register their brands.
"There is no agreement," Layton says. "There seem to be a lot of people saying some agreement has been reached, but it hasn't. Starbucks are spinning."
Chamber selected to jury
By Andualem Sisay
The Addis Ababa Chamber of Commerce and Serctoral Association (AACCSA) has been selected by the World Chambers Federation (WCF), to serve as a jury member of the World Chambers Competition.
The competition will take place at the 5th World Chambers Congress to be held in Istanbul, Turkey from July 4-6, 2007. It gives international recognition to the most innovative projects undertaken by chambers of commerce from around the world. “This is a great honor for us as it implies the recognition we have internationally,” says Teferi Asfaw, the head of Media and Public Relation at Addis Ababa Chamber of Commerce.
In a letter of invitation which reached AACCSA, it states that the WCF requests ‘the chamber to be a key member of the competition jury because of the continued, excellent work AACCSA is undertaking, for which it had already been recognized as one of the four finalists in a similar competition conducted in September, 2003.’
The competition takes place as one part of the event of the World Chambers Congress and is held every two years.
Since its creation in the early 1950's, the WCF has served as the unique global forum where chamber leaders and senior executives can communicate with one other and collaborate on matters of mutual interest, whether solving problems or realizing opportunities.
Encouraging cooperation between chambers throughout the world, facilitating the role of chambers as local business support agencies and promoting collaboration between chambers so as to extend the range and improve the effectiveness of the services that chambers provide are among the missions of WCF.
In a related development, multi-billionaire Sheik Mohammed Al-amoudi has accepted to be the patron of the Addis-Africa International Trade Center as elected by the 2nd annual Assembly of the Addis Ababa Chamber of Commerce on December 21,,2006. It is recalled that the assembly nominated 60 candidates, including members of a fund raising committee.
According to Teferi, AACCSA is planning to launch fund raising in about a month. The total required to accomplish the center is expected to reach some 200 mln birr.
It is recalled that 30 participants were unable to participate at the 11th Addis Chamber International trade fair that took place a few weeks ago as the existing Addis Ababa Exhibition Center is unable to accommodate all who wished to participate.
AU begins deploying peacekeepers to Somalia
By Andualem Sisay
The African Union began its peacekeeping mission to Somalia by deploying the first Ugandan troops on Tuesday morning, March 6, 2007.
“We started this morning deploying Ugandan peace keeping troops as the first contingent that comprises of three battalions,” said AU Commissioner for Peace and Security Ambassador, Djinnit Said at the press briefing held at the African Union in Addis. “Our goal in Somalia is to help the Somalis to build their own institutions.”
Following Uganda, Nigeria, Burundi, Ghana and Malawi have also shown interest to contribute troops for the mission. But still, the AU has not yet secured the 8,000 troops it requires.
Regarding financing and logistics support, countries like the United States, Britain, Ukraine, Sweden, France, Algeria, South Africa and Angola have so far indicated their readiness to fund the mission in different aspects.
Nevertheless, the AU doesn’t seem to be overly happy over some of the delays observed in funding the AU peace mission. Describing the delays, Ambassador Djinnit says: “The major challenge we are facing from our donors is ‘move and we will support you as you move on’ approach they have.”
The AU has been working on its Peace and Security Architecture for the past 18 months starting from policy development to preparing standby brigades. During this period, the Union has also prepared a doctrine by conducting various workshops in every region and consulting with other stakeholders.
Currently, the African Union Peace and Security Council is working closely on peace and security issues in various parts of the continent such as Darfur, Cote d’ Ivoire, Burundi, the Comoros and Somalia among others.
Gov’t offices prepare BPR
By Eskinder Michael
The Ministry of Finance and Economic Development (MoFED), Ethiopian Customs Authority (ECA), Ministry of Trade and Industry (MoTI), the Commercial Bank of Ethiopia (CBE), Ethiopian Electric Power Corporation (EEPCo), and the Federal Inland Revenue Authority (FIRA), are among the first government offices to finish preparing their Business Processing Reengineering (BPR), it was learnt.
One of the latest ways of ensuring and embedding speed of processing and flexibility into organizations is via Business Process Reengineering (BPR). Fundamentally, BPR has the theoretical basis that even though most Information Technology Systems are designed to manipulate data rapidly and flexibly, it is only true as long as processes involved are accurately modeled and remain static. In practice, however, business processes change continuously at an ever-increasing pace. BPR aims to provide businesses with the capacity to deal with this quandary.
Other offices such as the Ministry of Revenue (MoR), are in the process of finalizing BPR preparations.
The significance of preparing a BPR for a federal office or ministry is to better deploy the civil service reform and update the capacity of services provided by these offices. A well prepared BPR can help offices work more effectively and at the same time, replace outdated work procedures and organizational structures. Most of all, it would allow offices to adopt a new management system, assuming that the existing system needs revision.
The preparation of BPR by every government office and ministry is vital because the few companies that prepare BPRs will not be able to function well with those offices that haven’t conducted the study.
The study is broad and covers every aspect of a government office and the scope of work it does, meaning that employees will be well aware of their duties and responsibilities and could even be given new job descriptions and titles .
BPR studies are mostly based on challenges that government offices have been faced with so far. If the preparation of BPR proves effective in the preferred areas in government offices and ministries, then the study could be implemented in offices at lower levels.
The ability to respond rapidly to change has become critical to business success today. The requirement for swift flexibility is driven by factors such as ever-changing customer demands and new regulatory and compliance conditions.
Heroes’ tombs desecrated
By our staff reporter
The tombstones of former Olympics marathon gold medalists Abebe Bikila and Mamo Wolde were this week desecrated by unknown persons, it was learnt.
The two athletes, who won Olympic gold in Tokyo, Rome and Mexico, were laid to rest at the cemetery in St Joseph’s church. According to Abeselom Yihdego, long standing athletics supporter, philanthropist and owner of Keste Damena Foam Factory, the tombstones were torn down during the evening.
“I heard about the situation on Thursday morning and when I reached the spot, the life size statues of both athletes were cut from the legs. My father’s statue was especially damaged and that is a very sad thing,” Samuel Mamo, son of Major Mamo Wolde said.
“Several people including famous athletes like Haile Genreselassie were at the scene and they were all very sad. Other elderly women who were at the church for another funeral saw the situation and were crying. The two athletes made history at a time when they weren’t able to receive any personal benefit and they should be respected. The families of both athletes are very sad and I believe that a person in his right mind won’t do anything like this,” said a very sad Samuel.
Samuel believes that the life size statues do not belong to the two families or to the athletes themselves, but to the Ethiopian people. He also said that he had taken tourists and journalists to the burial places several times.
“We heard about the tombstones from the guards. What makes the matter very sad is that the tombstones were made of concrete and would be worthless once they were destroyed. I built these tombstones because I wanted to inspire this generation into trying to become like them,” Abeselom said.
Abebe’s tombstone was built 32 years ago while Mamo’s was built five years ago. Abeselom had hired a guard for the tombstones for the past 20 years, but following the guard’s death, a replacement had not been hired.
“Police have been informed about the matter and they are investigating the case. I will surely build these tombstones again,” Abeselom said.
In 1964, Abebe Bikila stunned the world by winning the Tokyo Olympics running bare foot, to win Ethiopia and Africa its first Olympic gold medal. Abebe also set world and Olympic marathon records.
Four years later (1968), the Ethiopian returned for the Rome Olympics, this time wearing track shoes. He won the race with relative ease and again set a new world and Olympic marathon record.
As if two Olympic gold medals were not enough, Abebe was still up and ready to run in his third Olympic marathon. Two weeks before the race however, Abebe underwent an operation for appendicitis, but that didn’t stop him from running the race. Midway through the race though, Abebe was unable to finish and knowing this, he whispered a word to his friend and compatriot Mamo Wolde. “I am feeling sick and I can’t continue running, but you have to continue and win the race and make sure that the Ethiopian flag keeps on flying in the medal table,”
That is how a new Olympic champion was found in Mamo Wolde. Before winning the marathon in the same Olympics, Mamo had finished second in the 10,000 meters.
Though Abebe could never give up running, he was forced to by a car accident which left him in a wheelchair. After being paralyzed from the waist down, Abebe continued sports as an archer until the day he died.
The entire nation is shocked by the crazed action of these unknown culprits and hopes that they will soon be brought to justice.
Census gives exams breather
By Eskinder Michael
The highly anticipated national census has reportedly compelled the Ministry of Education to postpone the country’s annual regional and national exams.
Following the change of schedule, the 8th grade national exams are now scheduled well into the Ethiopian rainy season for June 13-15, 2007, while the 10th grade General Secondary Education Certificate Examination GSECE, will be administered from June 20-23, 2007.
According to the ministry, 11th and 12th grade students who are in the preparatory program will take university entrance exams from June 25–27, 2007.
Though classes won’t be interrupted, this decision is seen by several teachers as a blessing in disguise as it would let them conclude their classes at a calmer pace. Students will also have more time to cram for the exams.
The ministry has fully automated marking of the examinations and claims that the rescheduling of the exams would in no way push back the dates on which the results would be announced.
In related news, it is to be recalled that the government in its plans to expand higher education had projected, the construction of 15 universities at a cost of 240 million euro in eleven different sites of the country with the technical assistance of German Technical Cooperation International Services (GTZ IS).
The ministry, this week announced that 13 of the universities had started operations this month and have so far admitted 11,000 students. The construction of all the 15 universities will be fully completed by September 2002 EC.
Five of the 13 universities have already began classes, with two more ready to call up registered students. It is believed that once the 15 universities are completed, they will have a combined capacity for an intake of 120,000 students.
Ethiopian policymakers recognize knowledge creation as being key for the country's economic development: the education sector program is one of the largest programs of the Sustainable Development Poverty Reduction Program (SDPRP), and as such, over the course of five years, the University Capacity Building Program (UCBP), will construct 11 new universities and expand two existing ones at 15 sites throughout Ethiopia.
NBI launches Ethiopian Nile Youth Network
By Andualem Sisay
Under the theme ‘Empowering the next generation-Youth in the Development of the Nile River Basin’, the National Nile Youth Network was launched on Saturday March 10, 2007 after a two-day conference at Global Hotel here in Addis.
The conference is organized by the Ethiopian Nile Basin Dialogue Forum (EtNBDF), which is founded in 2005 with the objective of making Nile Basin Initiative (NBI) live up to its stated objective of reducing poverty among other things.
“ Nile Basin riparian countries realize that the issue of the Nile can not only be addressed at governmental level,” says Tesfaye WeldeMihret, Confidence Building Stakeholders National Coordinator under Nile Basin Initiative (NBI). “The reason for forming this youth network is to let the youth understand clearly about the activities of the Nile Basin Initiative and the Nile itself.”
The Nile Basin Initiative was formed in 1999 by the ten riparian countries -Ethiopia, Egypt, Sudan, Kenya, Rwanda, Tanzania, Uganda, Burundi, and Democratic Republic of Congo with Eritrea as observer. It is to build confidence and trust among members and use the water resources for mutual and equitable benefit. The Nile Basin area comprise 3.35 mln sq. kms.
The Blue Nile (Abay), which is the sum of Ethiopian rivers Tekeze, Mereb and Baro Akobo, contributes 86 percent to the Nile. “But so far Ethiopia is a zero user of the Nile,” says Prof. Kinfe Abreha, President of Ethiopian Intellectuals Institute for Peace and Development and Special Envoy of the Prime Minister. “Nevertheless, the lower riparians, Egypt and the Sudan (Egypt more so) have exploited the water resources of the Nile extensively both for irrigation and hydro-power. In short, the upper riparians have been the suppliers and the lower riparians, the consumers of the Nile.”
It is not fair to be starved while sitting and looking at a resource at hand that can change the lives of millions of people. Therefore, these countries have to quickly sign and start implementing their projects, according to Prof. Kinfe.
Cooperation on the Nile began in 1967 by forming Hydromet (the Hydro Meteorological Survey of the Equatorial Lakes) by all riparian countries with the objective of collecting and analyzing hydro-metrological data of the equatorial lakes for the purposes of deriving the water balance of the Upper Nile Catchment and possibly make prognosis.
Following Hydromet’s failure, Undugu (Swahili for ‘brotherhood) was founded in Khartoum, the Sudan in 1983 under the aegis of the African Unity (OAU) with the objective of forging cooperation in areas of infrastructure, environmental cooperation, culture and trade. Ethiopia, Tanzania and Kenya chose to remain as observers. Undugu also failed with out accomplishing any part of its program on the ground after spending the time organizing conferences.
TECCONILE (Technical Cooperation Commission for the Promotion and Development of the Nile) was formed as an extended version of the previous Hydromet through the agreements reached by the Nile Council of Ministers of Water Affairs (hereafter Nile-COM) in 1992 in Kampala, Uganda. At this time Kenya, Burundi, Ethiopia and Eritrea opted to participate as observers.
TECCONILE is succeeded by NBI and included ‘ensuring cooperation and joint action between the riparian countries, seeking win-win gains’ as one of the five objectives. Poverty eradication and promotion of economic integration and ensuring that the program results in a move from planning to action are also among the objectives of NBI.
Although many projects are prepared under NBI, until now the old treaty of 1959 made between Egypt and the Sudan to use 100 per cent of the water, ignoring other riparian countries is not replaced by a new agreement which benefits all riparian countries. “We wait and see if NBI also fails like the previous initiatives or the long expected agreement will be signed, to change the lives of the 300 mln people living under extreme poverty in these riparian countries,” says Tesfaye Tafesse, Phd, who presented a paper under the topic ‘An appraisal of shared water dispute resolution mechanisms in the Nile’.
Dialysis machines in cold storage
Only ten for ten mln people
By Andualem Sisay
Six dialysis machines imported for renal replacement therapy which can be used to provide an artificial replacement for lost kidney function, were found locked away in a Ministry of Health warehouse. Meanwhile people with kidney problems are dying due to a dire storage of dialysis machines.
The dialysis machines were imported with aid from the Ethiopian Orthodox Church, according to Dr.Tesfaye Yilma, Kidney Specialist at the Black Lion Hospital, who spoke under the topic, ‘Kidney Problems in Ethiopia’, at the celebration of World Kidney Day in Ethiopia at the National Theatre on Thursday March 8, 2007.
Dialysis machines take over some of the functions of the human kidney. One of the primary functions of a kidney is to remove urea and certain salts from the blood so they can exit the body as urine.
The event was organized by the recently founded Ethiopian Kidney Association and other partners. As part of the celebration, the association provided blood pressure and urine tests for the participants accompanied by an awareness creation lesson on the status of kidney disease in Ethiopia.
The ten dialysis machines currently used treat some seven to ten mln people, according to the association.
Currently, only four hospitals of which one is the state run-Black Lion, have dialysis machines.
Even though Ethiopia had started applying peritoneal dialysis for kidney patients 27 years ago, the small number of dialysis machines which are giving service for a country of 72 mln is a sad story for the founders of the Ethiopian Kidney Association.
In contrast, neighboring Sudan, has reached the stage of kidney transplants locally, according to Dr.Tesfaye.
“It is not a financial problem that hindered us from expanding the service we give to kidney patients,” he says. “It is only a lack of goodwill.”
At the current market prices, one dialysis machine costs around 400,000 birr.
Nyala favors trusty women
By Tsion Aklilu
Nyala Insurance distributed free coupons for female clients on March 8-Women’s Day.
“Women are cautious drivers, let us follow them”, this logo was draped at NOC Mart and gas station which is located between Meskal Square and Bambis on March 8.
According to statistics, male drivers’ commite 98% of accidents in Ethiopia. These are straightforward accidents and in industrial accidents, women’s contribution is less than one percent.
Nyala Insurance in collaboration with National Oil Company (NOC), has given free service for about 500 female clients. Eyob Mihrete G.M. of Nyala Insurance, stated that the company has done so as a special gift for women due to their responsible road manners and in appreciation of their contribution.” He also added that Nyala has been supporting women to insure their cars by providing a lower premium than male clients.
The free coupon for gas had a value of 150 birr with NOC gas stations giving the clients a free car wash. W/ro Banchi, executive director of the Merchant Women’s Association, has officially inaugurated the event.
Nyala has opened a temporary office at the gas station to conduct the distribution. The women who got the opportunity should bring their owner’s deed, driving license and an insurance confirmation card.
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