Capital

High standard coaches arrive

By Kirubel Tadesse

Ethiopia to award exporters annually

By Andualem Sisay

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Small and micro enterprises in Ethiopia to create 18 mln jobs
71,000 condos under construction in Addis Ababa

By Andualem Sisay

Becoming part of the solution

By Addis Mulugeta

Ethiopia tipped to meet the MDGs

By Muluken Yewondwossen

MORE
CBE loans 9 bln Br for condominium construction

By Muluken Yewondwossen

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Joint venture to export salt to Ghana

By Andualem Sisay

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Is Ethiopia becoming regional investor magnet?
Investors from 30 different countries obtain licenses in just 30 days

By Andualem Sisay

CAWEE extends support to African women in global trade

By Andualem Sisay

Akaki checkpoint to move to Mojo

By Tedla Desta for Capital

No market fundamentalism-PM

By Andualem Sisay

City government selects 45 legal agencies

By Muluken Yewondwossen

Ethiopia to benefit from $15 mln initiative

By Tedla Desta for Capital

MORE
‘Keep the Promise, End Poverty Now’

By Addis Mulugeta

National ‘standup’ call against poverty and the opening of UN Millennium Exhibition was held at the Exhibition Center on Tuesday, October 23, 2007. Deputy Prime Minister and Minister of Agriculture and Rural Development, Addisu Legesse, United Nations representatives, Millennium Council, parliamentarians and others, participated on the occasion.
Public Relations Officer of the Millennium Celebration Council, Ato Mulugeta Asrat, expressed the intent of the standup campaign as, “We are standing now to show solidarity with people living in poverty everywhere and to renew our commitment to the fight against extreme poverty and inequality”.

Partnership to support Africa

By Muluken Yewondwossen

Land degradation hits Africa badly says UN report.

By Andualem Sisay

MORE
Health center to rescue hundreds of women

By our staff reporter

Making children a priority of development in Ethiopia

By Addis Mulugeta

High standard coaches arrive

By Kirubel Tadesse

Sky Bus Transport System, which plans to meet the long distance transport needs of the country with modern buses, was launched on Friday, October 26, 2007 at Sheraton Addis.
Sky Bus Transport System is organized as a share company and offered 60,000 Registered Ordinary Shares for public subscription on the occasion. SBTS aims to define premium quality passenger transportation services across the country. Before the shares were officially opened for public subscription, a documentary illuminating existing problems in the current long distance bus transport system was screened for invited guests including Juneydi Saddo, Transport and Communication Minister.
According to Solomon Garedew, General Manger of Sky Bus Transport System Share Company, buses that are currently in use have spent a number of decades in service and most of their production companies are now closed. “Although the buses are all old and between 25-40 years old, they don’t even have professional inspection and maintenance systems to assure the safety of the passengers”, said Solomon. “The number of people who travel from Addis Ababa to different destinations annually, excluding the minibuses that illegally carry out transportation works, reaches up to 6.2 mln and all of them are using these buses, putting aside their safety concerns and comfort”, added the General Manager.
Guest of Honor, Juneydi Saddo explained, “As shown in the documentary, the buses give inefficient services but banning them from operation will create a gap that won’t be filled easily.” He added that if the private sector can utilize the opportunity the government is creating in the public transport sector, the public will have better service resulting from the competition among transport companies.
Solomon Garedew told Capital that SBTS will soon have thirty buses in its first import batch. Ticketing offices and online registering will be opened to give a well-organized service and avoid passenger discomfort or inefficiency. “We offer travel with standard Sky Bus Coaches which are to be equipped with on and off road heavy duty capacity, comfortable seats with safety belts all round, a ventilation and air conditioning system, versatile audio visual entertainment system, refrigerator, coffee/tea machine and more. All the buses have hostesses to serve the passengers with breakfast and soft drinks and make the journey as pleasant as possible. Every seat is an incliner and has its own sound system. After passengers register at ticket offices or online, all they have to do is show up at our stations and we will then take their luggage and deliver it at the desired destination. Even if there is always preventive maintenance and inspection on all buses before traveling, in case of unavoidable accident it is fully insured”, explains Solomon Garedew.
Sky Bus Transport System Share Company has been established by Green Horse Management and Marketing plc. The 60,000 shares opened for Public Subscription have one thousand birr value each.

Ethiopia to award exporters annually

By Andualem Sisay

Following the increase in foreign currency earnings from exported items over the last four years, Ethiopia is to introduce an annual Export Day on November 3rd with the aim of providing various incentives to exporters who have performed exceptionally.
The Council of Ministers has already issued a relevant directive, according to Ahmed Tusa, State Minister of Trade with the Ministry of Trade and Industry.
“In addition to boosting the export volume and diversity, this annual event will strengthen the good relationship observed between the private sector and government,” the State Minister stated at a briefing he gave in his office on Monday, October 22, 2007.
He added that the decision to provide additional incentives for exporters complements government’s action to meet its target of transforming the nation into a middle income country in 20 years.
The award has five categories: better export earning in any commodity in the given year, better performance in introducing new export items, best Ethiopian products importing, best input suppliers for exporters and best support providers for exporters, i.e banks, insurance, etc.
In addition, a discussion between Prime Minister Meles Zenawi and exporters is also one of the events scheduled for the day.
The medals and certificates will also be augmented by twelve items to be given to the winners, the Ministry has listed. These include opportunities to participate in international trade fairs and accompanying state business delegations by sharing costs with the government and obtaining support from the government to attain international accreditations.
In the past four years, Ethiopia’s earnings from exported commodities grew by nearly 25 per cent annually. For the first time, these export items have generated above one bln USD annually in the past two years.
The very vibrant flower export sector that has generated 90 mln USD in the past six months is growing 200 per cent annually and is a major contributor to the increase of Ethiopia’s export income. By 2012 government expects to earn up to some 600 mln USD annually from flower exports, a sector that has created over 70,000 jobs.
Coffee still remains the number one export item while the legal narcotic – Chat, skin and hides including leather products and oil seeds are at the top of Ethiopia’s export menu.
Textiles, minerals (especially gold), cereals, livestock, agro-processing of vegetables, meat, and honey are also rapidly expanding export sectors that show promising potential. Informed observers, while applauding the government’s notable achievements in developing export trade, argue that the sector still has quite a way to go as the billion USD earned in each of the last two (a record for Ethiopia) years pales when compared against the 3.2 bln USD Kenya earned in 2005.

Small and micro enterprises in Ethiopia to create 18 mln jobs
71,000 condos under construction in Addis Ababa

By Andualem Sisay

The Ministry of Works and Urban Development (MWUD) targets to create up to 18 mln jobs in the next five years by strengthening the 1.8 mln Small and Micro Enterprises (SME) in the country.
Currently, the existing 1.8 mln SMEs are only able to create jobs for only 2.2 mln people. “Now, our primary target is to strengthen these enterprises by addressing the challenges they face”, said Kassu Illala, Minister of MWUDE at a press conference held in his office on Tuesday, October 23, 2007.
“We will make each of these SMEs to be able to hire at least 10 employees each. As these enterprises have already identified their potential markets and challenges, it will be easy for them to expand their business by creating more jobs if our Ministry works closely with them,” the Minister said.
The enterprises have been established through loans from Micro Finance Credit and Savings Associations that formed The Association of Ethiopian Microfinance Institutions (AEMFI) on 28 June 1999.
In addition, under its urban and industry development package, the Ministry is also planning to build 400,000 houses by the end of this five year plan, according to the Minister.
It is also planning to involve the private sector, including private banks, to build the capacity of national construction companies in order to accelerate a balanced growth of the 900 towns in the country.
Recently, 30,000 condominium houses constructed in Addis Ababa by the Ministry were delivered to the owners by a draw and this year 71, 000 units are under construction. Other regional governments have also begun emulating the condominium construction project by selling bonds to the Commercial Bank of Ethiopia.
The government plans to involve 10,500 small construction companies. Regarding the larger local construction companies, the Ministry has recently allowed them to participate on tenders for big construction projects.
As a result, some local companies have started building roads although the majority of projects are still taken by Chinese companies.

Becoming part of the solution

By Addis Mulugeta

Contributions to the long term process of combating gender inequality, gender violence and the transmission of HIV/ AIDS were highlighted during the launch of an overview of a summary documentation about the boys’ groups program, working to promote gender equality and reproductive health rights at the Global Hotel on Monday, October 22, 2007.
The intention in setting up these boys’ groups is to contribute to the long term process of combating gender inequality, gender violence and the transmission of HIV/ AIDS by way of discussion and peer education amongst boys and young men in Addis Ababa. According to the summary document, the programs are unique and ground-breaking in Ethiopia and are already acting as a source of inspiration to other organizations. The document adds that boys’ groups are important and invaluable tools of achieving the long- term goal of gender equality in Ethiopia.
It was also noted that the need to deploy boys’ groups is meant to promote gender equality in response to gender inequality and violence and strengthening positive role models in addressing gender norms.
A central objective for Save the Children Sweden in establishing the boys’ groups is to make them play a vital role in combating the culture of secrecy and insuring that children’s and young people’s voices are to be heard louder and that they are given the information they need.
According to this document, the establishment of these groups helps put space for respect among boys and girls; if boys can be given space to learn to be respectful of women and to protect sever sexual activity, they often continue this behavior up to adulthood. It remarks that the objective of the boys’ groups is to provide such a space for boys and young men to learn different and more respectful ways of communicating with and behaving towards girls and young women.
The history of boys’ groups run by IFSO/ Eshet states that the project began in the year 2005 with the selection of 100 children and young people both in and out of school with ages ranging between 10-24 years. The groups are about two thirds male and a third female. Participating in the groups has encouraged them to speak out about how they feel about gender inequality, gender violence and HIV/ AIDS. It has given them self- confidence in expressing themselves and a strong sense of responsibility to their family, future family and described how they would ensure that their future relationships with girls and women would be equal.

Ethiopia tipped to meet the MDGs

By Muluken Yewondwossen

Ethiopia and five other African countries have been tipped to be well positioned to succeed in their efforts to meet the Millennium Development Goals (MGD) by the IMF’s Regional Report out look of 2007 launched on October 22, 2007 in Addis Ababa by Arnim Schwidrowski IMF senior Representative to Ethiopia.
The report lists South Africa, Swaziland, Mozambique and Ghana as the others that can realize the target of cutting poverty by half in 2015. The report reveals that other Sub Saharan countries have a long distance to travel to meet MDG targets.
According to the report, there exists a big growth gap between oil exporters and the rest of Sub Saharan Africa.
On trade volume and terms of trade, import still grows faster than exports in the region while overall trade improved in 2006 but deteriorated slightly in 2007, particularly for low income countries. Inflation in Sub Sahara Africa was in the 6-8 per cent range but per capita income grew by an average of only 3 per cent over 2003-06.
The report also noted that non traditional donors like China and India may help to fill the gap in economic challenges in the form of project assistance and export credits. In 2007 investment and improved productivity were main drivers of growth in non-oil exporters and sustaining growth requires continued structural and institutional reforms to further increase productivity. The report stated that the growth will accelerate to more than 6 per cent and is higher than the 5 per cent projected global growth. This is mainly due to oil production from new facilities in Angola and Equatorial Guinea.

CBE loans 9 bln Br for condominium construction

By Muluken Yewondwossen

The Commercial Bank of Ethiopia (CBE) has concluded a 9 billion birr loan agreement with the Addis Ababa City Caretaker Administration and six regions for low cost housing (Condominiums) projects.
Banks Marketing assistant manager, W/t Welela Seyam told Capital that the administration is allotted 1 billion birr with the balance of eight billion to be divided among Oromia, Amhara, SNNP, Tigray and Harar regions, as well as the Dire Dawa City Administration Council.
According to W/t Welela, CBE on its part will retain bonds of the regions as collateral for the massive loan. The 9 bln ETB will have a minimum interest rate.
In related news, Harari Regional Housing Development Agency director, Ato Abdul Hakim, disclosed that the region will build up to 1540 condominiums this year at a cost of 147 mln ETB. He further noted that the agency plans to construct a total of 10,000 houses over three years.
CBE had previously agreed with the Addis Ababa Housing Development Agency to provide soft loans for condominium owners. According to the Works and Urban Development Minister, Kassu Illala, the four least development regions, (Benshangul, Afar, Gambella and Somali) will each build 100 condominiums in the next three years.

Joint venture to export salt to Ghana

By Andualem Sisay

A joint venture of Canadian and Ethiopian nationals is to start exporting salt from Ethiopia to Ghana and other countries, with an investment capital of 90 mln birr.
When this project is implemented, salt will join the list of Ethiopian export items. The investment project of Mr.Yaw Akyeaw, a Canadian who resides in Ghana, and Mrs Wubayehu Libekulu targets to meet the high market demand of iodized salt in Ghana.
Currently, the investors are working on the detailed implementation of their project in Ghana. In addition, the investors are also planning to be engaged in the export of other goods such as leather products and fish.
In a related development, a Sudanese investor, Mohamed Osman Mohamed Mhamoud, is to invest some 150 mln birr on four projects in Ethiopia.
The investor has taken investment licenses from the Ethiopian Investment Authority to open cement, cooking oil and packing materials factory. The investor is also planning to engage in petroleum and petroleum products distribution.
Including the Sudanese Government owned Nile Petroleum; the number of investment projects by the Sudanese in Ethiopia in the last year has reached 64.

Is Ethiopia becoming regional investor magnet?
Investors from 30 different countries obtain licenses in just 30 days

By Andualem Sisay

The latest investment data obtained from the Ethiopian Investment Agency reveals that the number of foreign investors coming to Ethiopia is showing a marked rise.
In just one month, September 2007, a total of 173 investment projects were registered, with more than half of these being foreign ventures from 30 countries. Chinese investors lead by investing in 18 projects out of the 90 registered.
They are followed by 17 American and 10 Britons, most of whom are of Ethiopian descent, according to the Agency. The remaining projects are joint ventures between foreigners and Ethiopians.
The origins of the remainder of the investors registered in September are: India, Canada, Germany, Australia, France, Netherlands, Italy, Sweden, Belgium, New Zealand, South Africa, Barbados, Saudi Arabia, Yemen, Lebanon, Palestine, Pakistan, Indonesia, Nigeria, Chad, Cameroon, Sudan, Trinidad, Kenya and Djibouti.
In addition to the 173 companies registered by foreigners, almost half of the 52 share companies licensed in the same period have at least one or two foreign shareholders along with Ethiopian partners.
Real-estate, manufacturing, hotel and construction sectors are among the major areas that attract most of the investors.
Many observers attribute the provision of incentives to investors by the government as one of the reasons behind the huge interest from abroad to invest in Ethiopia. On the other hand, some also opine that foreign investors are interested in Ethiopia because of the cheap labor and less fierce competition in larger markets which also include neighboring countries.
The incentives for investors include one hundred per cent exemption from the payment of import customs duties and other taxes levied on imports of all investment capital goods such as plant machinery, equipment and construction materials.
In addition, Ethiopian products and services destined for export are exempted from the payment of any export tax and other taxes levied on exports.
Duty Draw-Back Scheme, Voucher Scheme and Bonded Manufacturing Warehouse Scheme are also among the incentives for exporters.
Besides, any income derived from an approved new manufacturing and agro-industry investment or investment made in agriculture shall be exempted from the payment of income tax for the periods depicted in the following table, depending upon the area of investment, the volume of export, and the location in which the investment is undertaken.
According to Council of Ministers Regulation No.84/2003 issued on the basis of the Investment Proclamation No. 280/2002, the following Profit tax holidays are provided for investors.

CAWEE extends support to African women in global trade

By Andualem Sisay

This week, the Center for African Women Economic Empowerment (CAWEE), under its Access program, provided training to some 50 female and male business persons from Ethiopia, Tanzania and Uganda.
The main objective of the two training sessions held at the Hilton Addis and the King’s Hotel was to promote women in international trade through the provision of such training and business counseling services.
Among participants, six companies from Ethiopia are attending for a second time with the objective of scaling up their knowledge of the dynamics of international trade.
“Although the business women from the six Ethiopian companies have not yet began exporting their products in quantity, they have been able to establish links with international buyers at the trade fairs they have participated on,” says Nigest Haile, Executive Director of CAWEE. “These six Ethiopian companies have now specialized in producing various items from hand woven fabrics, and sell samples at international markets.”
Mrs. Genet Kebede, Owner and Designer of GMM Garment plc and Paradise Fashion, is one of the Ethiopian trainees attending the training for the second time and began exporting her company’s products to Germany and US eight months ago.
“Such trainings are helping me a lot to organize my company better and to know how to approach customers in international markets,” she says, admitting the challenges of penetrating international market for Africans.
Access is a continuation of a previous program, which had been implemented by the above mentioned countries with backstopping services provided by the International Trade Center Geneva and the Trade Facilitation Office Canada.
The overall various projects under Access programs are expected to be concluded at the end of February, 2008. Managing of the already existing Access web-portal, www.womenexporters.com, and launching of business award for women exporters with outstanding performance are also components of Access.
The first phase of Access program has been operational in Ethiopia from November 2005 to December 2006, according to Mrs. Nigest.
The center received technical and financial support from Pro-Invest, a joint program of the African Caribbean and Pacific (ACP) states and the European Commission, for the promotion of investment and technology transfer in the ACP countries.

Akaki checkpoint to move to Mojo

By Tedla Desta for Capital

The Akaki Customs Checkpoint is to move further south to Mojo town shortly, Gebrewahed W/Giorgis, Customs Deputy Director General told Capital.
The Akaki checkpoint has been inspecting passenger and freight traffic arriving to Addis from the south and east. The route is the most economically active the country.
According to Gebrewahed, reasons for the imminent transfer of the checkpoint to Mojo are the heavy traffic at the Akaki checkpoint and also because some vehicles turn off the road, evading the Akaki checkpoint, in order to smuggle in contraband.
“We have found out that the Mojo checkpoint, which is already working, has the same problem in regard to traffic jams so we are now studying locations that would be suitable for relocation in Mojo town and as soon as the study is complete, the Mojo checkpoint will be fully operational.
The Akaki check point is one of the major spots where the Ethiopian Customs Authority intercepts contraband Merchandise.
In related news, travelers have expressed their annoyance at having to undergo two inspections in Mojo and also at Akaki. Especially, travelers coming from eastern areas of Ethiopia say that they have been particular victims of the double checking. Passengers on public buses add that they are irritated by the added delay.

No market fundamentalism-PM

By Andualem Sisay

Prime Minister Meles Zenawi indicated his government’s commitment to continue its market regulating activities in order to adjust the market’s failure to tackle the high rate of inflation. Meles stressed the need for the government to do whatever it takes as long as it is useful for the development and improvement in the lives of the people. He stated this in Parliament on Tuesday, October 23, 2007 while responding to a Coalition for Unity and Democracy Party’s (CUDP) request for the government to stop market intervention.
“Fundamentalism whether it is in the market or in religion, is not useful”, said the Prime Minister. “As long as the market’s failure is an obstacle to our development and government has the capacity, we shall continue our intervention in strategic areas until the failure observed is corrected.”
He also indicated that the government has finalized preparations to introduce a commodity exchange system, which is expected to benefit both the consumer and producer.
In addition, Meles also indicated that the interventions will also continue in the areas/problems that market alone can not or is not able to solve, such as housing and unemployment.
At Tuesday’s parliamentary session, the Prime Minister has also warned some opposition leaders at the house, who as he said are working behind the constitution with the Oromo Liberation Front (OLF) that is fighting to reverse the constitution with arm struggle.
Responding to a Member of Parliament who claimed that the government has arrested up to 250 Oromos without any reason, Meles said: “The OLF and the Oromo people are not the same. We arrested OLF members that were engaged in disturbing the peace of the country.”
According to Meles, the government is collecting evidence that suggests the involvement of some MPs in the parliament with the OLF. These MPs will be charged as soon as all the evidences are put together.

City government selects 45 legal agencies

By Muluken Yewondwossen

The Social and Civil Affairs Bureau of the Addis Ababa caretaker administration has cautioned the public not to pay money for agencies that claim to be liaisons for employee recruitment.
A bureau official, W/o Worknesh Misiker, told Capital, “There were 84 agencies registered and licensed before but some operated illegally and others did not renew or return their licenses. However, these illegal agencies are still engaged in their anti-social act and that is the reason for us to select 45 approved and legal agencies, identify them by name and work to introduce them through the public media.”
It is common knowledge that some recruitment liaison agencies take money directly or indirectly from the worker they place in a job. However, Ethiopian labor law states that an employee should not pay for a job opportunity.
“We have information that the agencies take payment from the employee. We requested them to cease their illegal activity and to register or renew their licenses. Following this, some agencies came to do as we asked.
Many have been confused by a notice on October 21, 2007 on Addis Zemen newspaper. Workinesh explains, “Our notice does not include the agencies that work along with foreign nations and other regional state agencies. These kinds of agencies are licensed by the Ministry of Labor and Social Affairs.

Ethiopia to benefit from $15 mln initiative

By Tedla Desta for Capital

Seven major international organizations have announced a multimillion-dollar partnership to address declining supplies of fresh water and the lack of access to clean water by the world’s poorest people, Dr Mike Shanahan, press officer of international Institute for Environment and Development (IIED), told Capital.
The US$15 mln Global Water Initiative will work in 13 countries and includes Ethiopia Burkina Faso, El Salvador, Ghana, Guatemala, Honduras, Kenya, Mali, Nicaragua, Niger, Senegal, Tanzania and Uganda.
The Global Water Initiative (GWI) brings together a group of seven leading international organizations: Action against Hunger-USA, CARE, Catholic Relief Services (CRS), The World Conservation Union (IUCN), International Institute for Environment and Development (IIED), Oxfam America and SOS Sahel - UK.
News of the GWI comes at a time when more than one bln people lack access to improved water sources, with over 2.6 bln lacking adequate sanitation. Water resources are under increasing pressure from human use while communities are frequently affected by floods and droughts.
The GWI will work in the listed countries in Central America, West Africa and
East Africa to address the challenges of providing long-term access to clean water and sanitation, access to water for rural production, as well as the protection and sustainable management of ecosystem services and watersheds.
The partner organizations will focus on the needs of some of the world’s poorest and most vulnerable communities including refugees and internally displaced persons.
Projects will deliver water and sanitation in rural communities. In addition, investments will be made to strengthen institutions, build capacity to enable organizations to initiate and sustain long term projects, increase community participation, improve local governance, facilitate inter-governmental coordination and cooperation, raise awareness, emphasize innovation and support the development of responsible water policies.
The projects at local and national levels will help catalyze change toward better integrated management of water resources.
The GWI targets within two years to demonstrate practical approaches to achieving integrated water resource management, supporting responsible water policy, addressing water conflict resolution and reducing water related risks.

‘Keep the Promise, End Poverty Now’

By Addis Mulugeta

“We are standing because every day 50,000 people die needlessly as a result of extreme poverty, and the gap between rich and poor is getting wider”.
“We are standing to call on leaders, from both rich and poor countries, to honor their promise to meet the Millennium Development Goals”.
“We are standing here at the United Nations because we pledge to step up our efforts to build support for the MDGs, and to keep the campaign to end extreme poverty at the heart of our work”.
“We are millions of voices standing in solidarity to say: keep the promise, end poverty now”.
Dr Mafa E. Chipeta, Representative of UN Food and Agricultural Organization said, “We are working closely with the Ethiopian institutions: governmental, non- governmental, and commercial as well as private in making reality the dream of a poverty and hunger free Ethiopia and Africa”. He further explained the poor and weak people as those who need the help of society, government, and external partners under the United Nations but in the end the successes would not be judged by what we could give them on a daily hand out pieces but on the bases of to the extent to which we make it possible for them to run for their own lives.
Deputy Prime Minister of Ethiopia and Minister of Agriculture and Rural Development, His Excellency Ato Addisu Legesse said in the event, “In this historical occasion, every citizen has to ‘standup’ against poverty. In Ethiopia we are joining hands with the UN country team to focus on the rights to food and nutrition”.
Meanwhile, the UN Millennium Exhibition opened at Addis Ababa Exhibition Center in which 13 Exhibition teams have participated representing Ethiopia’s 13 months. The 13 teams, named: Human Rights, Child Survival and Safe Motherhood, Education, Decent Work, Human Trafficking, Women’s Empowerment, Protection of the Vulnerable, Safe Water and Sanitation, Environmental Protection, Peace and Security, Cultural Heritage and Diversity, HIV and AIDS, and Food and Nutrition, came and joined hands for Ethiopia’s ‘standup’ against poverty call during this special exhibition .

Partnership to support Africa

By Muluken Yewondwossen

A new partnership to support stronger financial systems in Africa was launched by Germany, the World Bank and the African Development Bank, on October 20, 2007 in Washington D.C.
Expanding access to financial services by all actors in the economy (firms, individuals and households) and increasing financial depth, diversity and efficiency, improved interest margins and more positive indicators of capital market and other non-bank financial sector development across African financial systems, in addition to strengthening institutional and regulatory capacity, are the areas the partnership will support.
Architects of the effort emphasized that African financial institutions enjoy considerable liquidity. Thus, strategies to strengthen the financial sectors should help to unleash the current potential of African banks and other financial institutions. Currently, total credit for enterprises and households is about 14 per cent of the collective GDP in Africa, which is insufficient to ignite accelerated growth and poverty. An increase to 25% of GDP, a level achieved by many other low-income countries, would translate to more than 7 bln USD of additional investment resources for households and firms.
The June, 2007 G8 summit in Heiligendamm, Germany, endorsed the partnership to support stronger financial systems in Africa. Representatives from Germany, France, Russia, UK, USA, Sweden and the African Development Bank agreed to endorse the partnership.

Land degradation hits Africa badly says UN report.

By Andualem Sisay

Land degradation affects one sixth of the African continent, warns the Global Environment Outlook 4 (GEO-4) report launched on Thursday October 25, 2007.
The degradation of land often causes and intensifies poverty by worsening hunger and making conflict likely.
Land degradation not only threatens livelihoods but also puts at risk forests, fresh water, coastal and marine resources, and spreads desert, according to this United Nations report launched in different parts of the world including here in Addis Ababa.
“Agricultural production per head fell by 0.4 per cent between 2000 and 2004, and Africa is the only region in the world where the need for food aid is increasing,” points GEO-4 that calls for an urgent action.
The proportion of Africans living below the poverty line rose from 47.6 per cent in 1985 to 59 per cent in 2000. In addition, the proportion of undernourished people in sub-Saharan Africa fell on average from 35 per cent in 1990 to 32 per cent in 2003. But, the absolute number rose from about 120 mln people in 1980 to 206 mln in 2003.
In order to reverse or at least minimize the damages that environment causes to the African continent, negotiations are due to start in December on a treaty to replace the Kyoto Protocol, the international climate agreement which obliges countries to control industry chemicals emission that damages the environment.
Although the protocol exempts all developing countries from emission reduction commitments, there is growing pressure on some rapidly-industrializing countries such as China, Brazil and India that are now substantial emitters themselves to agree to emission reduction.
“The future will be largely determined by the decisions individuals and society make now,” says GEO-4. “Our common future depends on our actions today, not tomorrow or some time in the future.”

Health center to rescue hundreds of women

By our staff reporter

A Mothers-Children Health Center (MCH-Center) on the prevention and treatment of obstetric fistula, among others, constructed and run by a local NGO - Kembatti Mentti Gezzimma (KMG) in Durame, SNNPR has started service delivery.
The Health Center was built with a grant from European Commission and Donor Advised Funds, USA and currently supported by United Nations Population Fund (UNFPA). The MCH-Center will be officially inaugurated on October 31, 2004, according to the statement sent to Capital from the United Nations Population Fund (UNFPA).
The center has started to fully function in March this year as a specialized mother and child healthcare center providing obstetric, gynecological, outpatient and under- five children health services. Emergency obstetric services’ including surgical procedures are now performed 24 hours a day at the health center.
The MCH services include, assisting with normal deliveries, conducting caesarian sections, vaginal reconstruction (obstructed due to FGM/C scaring), fistula repairs, family planning services, VCT, PMTCT, a laboratory centre and audio-visual services for health education.
Since its construction, a trend toward increased utilization of skilled delivery services has been observed. More cases of obstructed labor are now visiting the center – an indication that lives are being saved through surgical interventions.
Every year an estimated 9,000 women in Ethiopia become victims of fistula. In the effort to address this challenge, on October 28, UNFPA Ethiopia in collaboration with KMG launched this prevention, treatment and rehabilitation initiatives of obstetric fistula in Durame at MCH.

Making children a priority of development in Ethiopia

By Addis Mulugeta

But you did promise! Making children a priority in development in Ethiopia, a donors’ seminar that has been sponsored by Save the Children-Sweden was held in Ghion Hotel on Wednesday, October 24, 2007.
The seminar centered on the role and obligation of donors in implementing the rights of children in Ethiopia, with particular reference to the UN convention on the rights of the child. According to the summary of a book presented during the seminar, children make more than half of the world’s population. However, the basic needs of these children are not yet fulfilled; they need special attention and support. Save the Children Sweden has conducted a study of how thirteen bilateral and multilateral international organizations operating currently in Ethiopia have fulfilled their obligations under Article 4 of the UN Convention on the Rights of the Child (CRC).
It was submitted that most international donor organizations that were surveyed during the study period did not adequately fulfill their obligations under Article 4. They did not sufficiently prioritize children’s rights within their development strategies either. The CRC does not properly inform their development strategies and with few exceptions, they do not take a child rights-based approach.
The summary further put down some of the obstacles to prioritizing children’s rights in international donors’ development strategies. These include donors’ belief that their role nationally is to work at a ‘macro’ level such as governance and support for national systems, less linked directly with children’s wellbeing, decentralization and responsiveness to national agenda, the difficulties of putting a child rights-based approach into practice, lack of understanding and guidance, and still some resistance.
The recommendation of the summary concluded that “mainstreaming children’s rights within organizations is essential to ensure that children are given the focus they deserve. Children’s rights should be explicitly integrated into donors existing frameworks, guidelines and other planning instruments”.
It also says, “International donors must work to influence and support government policy to promote children’s rights through sustained, well-informed engagement and evidence based argument, mutual respect and willingness to share experience and expertise”.
The constraints to implement children’s rights at the national level were also mentioned during the launching of the seminar. It has been mentioned that there is no specific child budget and assessment of the impact of economic decisions upon children. The national plan of action for children is not also linked with core government policy and the Ministry of Women’s Affairs has been marginalized in poverty analysis within the Ethiopian poverty reduction strategy. Cultural perceptions of children and childhood are not well furnished. On top of this, civil society organizations working with and for children in Ethiopia are not often well-placed to lobby for macro or even sector-wide policy changes.

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Is Ethiopia becoming regional investor magnet?
Investors from 30 different countries obtain licenses in just 30 days

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‘Keep the Promise, End Poverty Now’

MORE
Health center to rescue hundreds of women

Small and micro enterprises in Ethiopia to create 18 mln jobs
71,000 condos under construction in Addis Ababa

Is Ethiopia becoming regional investor magnet?
Investors from 30 different countries obtain licenses in just 30 days