Capital

The world food crisis dominates UNCTAD XII, in Accra,Ghana
“Make no mistake!”, Ban Ki-moon cautions

By Abiy Demilew Accra, Ghana

100 mln Birr tannery in the works

By Muluken Yewondwossen

Al-amoudi wins $4.75 mln lawsuit

By Groum Abate

Federal Government faces over 1 bln birr budget deficit 98% for road projects

By Kirubel Tadesse

Suburban minibuses banned from city

By Groum Abate

Luxury goods tax swells

By Tedla Yeneakal

‘Sharing plates without getting married’ Girma Wake, CEO of Ethiopian Airlines

By Tedla Yeneakal

ECX launches live trading

By Our staff reporter

Janora technologies obtain land for computer assembly

By Addis Mulugeta

Djibouti, Eritrea at loggerheads

Cement price shoots up 50 percent

By Tedla Yeneakal

Study of organization for common consultation debatable

By Addis Mulugeta

ILO Director-General visits AU in Addis Ababa

By MulukenYewondwossen

Africa hosts historic conference

By Addis Mulugeta

EPRDF gain sweeping victory

By our staff reporter

U.S donates equipment for Ethiopian peacekeepers to Darfur

By Addis Mulugeta

Police detains protesters at Teddy Afro trial

By Tedla Yeneakal

RYLA 2008 launched

By Addis Mulugeta

Security Council blast Eritrea

By our staff reporter

Ethiopia cuts diplomatic relations with Qatar

By our staff reporter

The world food crisis dominates UNCTAD XII, in Accra,Ghana
“Make no mistake!”, Ban Ki-moon cautions

By Abiy Demilew Accra, Ghana

The world food crisis dominated the UNCTAD summit in Accra; with the UN secretary general urging that immediate and practical measures should be taken by world leaders and the rich countries to support the poorest of the poor.
“Soaring food prices, climate change and the lag in achieving development goals mean more free trade, not less, is needed to boost the economies of the poorest countries,” UN Secretary-General Ban Ki-moon said during the opening of UNCTAD XII, summit on April 20, 2008
Ban Ki-moon told the gathering that the developed world could not stay behind closed doors as the developing and under-developed are suffering due to the current world food crisis and price hikes.
“Make no mistake!”, warned Ban Ki-moon, “we have to have fair play in world trade of globalization benefitting each country of the world.”
He also noted to the meeting that the world has to focus in imposing immediate action as different factors are rapidly changing the world food situation and human livelihoods.
“The world has not invested yet in new ideas and innovations to address the challenges that are rocking the world right now,” Ban Ki-moon, told Capital in Accra, while available for a few minutes of exclusive dialog.
“The world food crisis is implicating very much on the poor countries, especially on Africa, as oil prices are also hitting record highs. This also was evidenced in Ethiopia recently,” Ban Ki-moon, told Capital.
Making one of three inaugural statements at the meeting, the others were delivered by President Luiz Ignácio Lula da Silva of Brazil and President John Agyekum Kufuor of Ghana, Mr. Ban Ki-moon said: “Remember, the forces that spread prosperity so widely in recent decades are the same forces that will carry us into the future — trade and economic development.”
The first job of any government is to feed its own people, he continued, stressing the importance of resisting the impulse towards protectionism. “International grain markets must remain open and functioning normally. Beggar-thy-neighbor food wars cannot, in the long run, help anyone.”
He said that in order to make global trade serve development, particularly the needs of the “bottom billion”, equitable trade regimes must be negotiated in the Doha Round of trade talks. The wealthiest countries needed to rethink their agricultural subsidies and resource-rich countries need assistance to gain more from the export of their raw material.
Such policies must reflect a dramatically altered international context, in which developing countries play an increasingly vital economic role. The share of developing countries in world trade grew from 29% to 37% between 1996 and 2006, reflecting strong export performance by dynamic emerging economies. Moreover, economic ties between developing countries are growing stronger, with South-South trade almost quadrupling in the past decade to reach over $2 trillion, or 17% of world trade. There are similar trends regarding investment and finance, as developing countries not only draw more investment but also account for increased outward investment.
These changes require “us to adjust our thinking about development, and to design innovative policy responses. Strengthened economic cooperation among developing countries must be a key priority,” Dr. Supachai Panitchpakdi, Secretary General of UNCTAD said.
In his speech, the UNCTAD Secretary-General highlighted the success achieved by conference host country Ghana in reducing poverty, expanding international trade and attracting foreign investment. “Ghana has shown that with the right policies, institutions, and favourable external conditions, globalization can be harnessed for development,” Dr. Supachai said.
UNCTAD members began discussions on the negotiating text for UNCTAD XII conference conclusions. Negotiations aimed at reaching a consensus are continuing in Accra during daily sessions of the Committee of the Whole, which is scheduled to hold a closing plenary on April 25, 2008.

100 mln Birr tannery in the works

By Muluken Yewondwossen

Crystal Tannery, a facility that produces finished leather products is under formation with capital of 100 million birr and anticipates to enter production shortly. It is selling shares to prospective investors starting from April 1,2008.
Crystal Tannery was founded a month ago by seven investors from the same sector. Machinery that will be installed in the factory has been sourced from Italy and is expected to be imported duty free.
Solomon Getu, general manager of the tannery, told Capital that Crystal’s production phases are different from other tanneries in the country.
“Crystal will not start production from the first phase of leather production. The input that the factory uses will be semi finished or pickled and wet-blue leather,” said Solomon.
Solomon is also owner of Hepsom Foreign Trade Auxiliary, which is the main promoter of Crystal Tannery. He was president of the Ethiopian Leather Industries Association (ELIA) and has more than twenty years experience in the sector.
Currently in the country, more than 20 tanneries produce only semi finished leathers, that Crystal can use as an input. The tax law that increased the export taxes of semi-processed hides and skins to 150 percent, has decreased the export volume making the input for Crystal available. The pre-feasibility study for establishing Crystal has taken more than seven months. The study was undertaken by Hepsom Foreign Trade Auxiliary at a cost of 300 thousand birr.
The study projected that out of the three phases Crystal applies for its implementation, the first phase costing 30 million birr, will be commence after seven months and start producing finished leather for shoes.
At this time, more than 1500 factories are producing shoes in the country. These factories have a shortage of finished leather inputs to produce at full capacity. As a result of the shortage these factories are importing inputs from Italy. The establishment of a company like Crystal will resolve this shortage and save foreign currency.
When the remaining two phases costing 70 million birr lounch, Crystal will produce finished leather for garments and gloves.
“Our study is based on the experience of other countries such as India and Brazil, which have been successful in the industry for the last ten years. In order to make strong investments, factories in these countries are based on investing by shares,” explained Solomon.
Crystal is three locations proposed by the government for its setting. According to the management staff, they are assessing the appropriate location for their investment.
Currently, Ethiopia has less than one percent share in the international leather market, valued at 92 billion Birr. But, it possesses large livestock populations with 40.8 mln heads of cattle, 25 mln heads of sheep and lambs and 23 mln goats.

Al-amoudi wins $4.75 mln lawsuit

By Groum Abate

Two wealthy Saudis, have won a lawsuit against an American expatriate who duped them into investing in his firm.
The Singapore High Court ruled in favour of companies belonging to Prince Fahad Abdullah Mohammed al-Saud and Sheikh Mohammed Hussein al-Amoudi, the Ethiopian born self-made billionaire.
They had sued Lane Pendleton, claiming he had lied about the financial health of the company, Orient Network Holdings (ONH), to secure millions in investment dollars, The Straits Times said.
The judge ruled in favour of the Saudis after Pendleton failed to hand over a computer hard drive that was believed to contain information relevant to the case. A hearing will be held to assess how much Pendleton must pay.
The Saudis were not named as plaintiffs, but were suing through their investment firms.
Al-Saud, Saudi Arabia’s assistant minister of defense and aviation, owns the Swiss-based Alliance Management, the report said. Al-Amoudi is behind the British Virgin Islands-based firm Freeford.
Alliance gave 8.7 million US dollars to OHN, while Freeford invested more than 4.8 million US dollars in the firm between 2000 and 2003.
The firm went under in 2005, and the two Saudis filed lawsuits against Pendleton and his investment vehicle to get back their money. In addition to claiming they were duped, the Saudis said they were misled into acting as guarantors for the firm and its subsidiary, Orient Telecommunications Networks in 2003.
In 2006, multimillion dollar lawsuits against a US expatriate were filed by the two Saudis. Investments poured into Lane Pendleton’s company, which then went bust. Prince Fahad Abdullah Mohammed al-Saud, Saudi Arabia’s assistant minister of defence and aviation, and Sheikh Mohammed Hussein al-Amoudi, one of the richest people in the world, sued the US expatriate.
Both Saudis consider that Pendleton fraudulently misrepresented Orient’s financial state and prospects to encourage them to invest in it. Alliance put in 8.65 million USD. As to Freeford, between November 2000 and September 2003, it turned over 4.75 million USD.
While the two wealthy Saudis want to get their investments back, Pendleton insists that his claims were reasonable. Pendleton says that he had no reason to doubt the considerations of Orient’s management. Also, he said that Orient failed because of Freeford not keeping its promise to inject another 2.25 million USD.

Federal Government faces over 1 bln birr budget deficit 98% for road projects

By Kirubel Tadesse

The Federal government of Ethiopia’s key authorities face a budget deficit that mounts to 1,016,026,300, the Ministry of Finance and Economic Development (MoFED), told parliament when it submitted a supplementary budget bill to fill the gap.
The requested amount is to be spent during the remaining months of this fiscal year that ends on July 7, 2008. According to the bill presented to the House of Peoples’ Representatives last Tuesday, April 22, 2008, Ethiopian Radio and Television Agency needs almost four million birr to amend a budget shortfall it encountered because of the recent salary increment.
The Agency plans to spend the proposed finance on salaries and collectables for pensions. On similar basis, the Ethiopian Quality and Standards Authority is seeking an auxiliary budget of 625, 000 birr.
The Transport Authority alone demands around 7.5 million birr for the remaining period in this budget year. Its branch, Addis Ababa Transport Authority, also needs 684, 000 birr to be able to pay its employees hired on contractual base. Another three million to purchase equipments to control the city’s traffic, together with 306, 216 needed to pay for services the authority enjoys, adds the additional budget request to 3, 990, 216 birr.
The 16, 026, 300 birr recurrent expenditure the House is likely to OK for the three organs; Ethiopian Radio Television Agency, Ethiopian Quality and Standard Authority, Transport Authority and its branch Addis Ababa City Transport Authority, and is expected to be paid back from the authorities revenues in the coming budget year.
Ethiopian Roads Authority (ERA) which is undertaking several projects with capital budget allocated in the next budget year shortfalls finance for projects currently under feasibility studies and expected to be launch next year. The shortfall also touches few other projects already in operation.
This bill, which would allot a total of one billion birr for ERA, has been sent to Budget and Finance Standing Committee to return for final approval in less than three weeks.
The one billion birr capital expenditure allotted for fourteen ERA projects including Amey-Godie project that needs 179.5 million birr to connect Somali and Oromia Regional States, is collected from 229 closed accounts and other additional revenues of the government.
As required by law, all government institutions have their own bank accounts from which 229 was found accumulating over 160 million birr which should have been transferred earlier. Closed Letters of Credits (LCs) contribute more than 84 million. These were opened by various government institutions but failed to be transferred either due to unsuccessful business deals or alteration in good value. The 10% Sur tax, levied last budget year on import goods, also takes a share in contributing the highest sum, 492 million birr.
Privatization of government owned enterprises to their seller ‘surprise’ was bought in their deadlines. MP Temesgen Zewdie asked why they are considered to extra revenues since they met their original deadlines. The privatization puts in over 263 million birr for the allotted capital expenditure.

Suburban minibuses banned from city

By Groum Abate

Non-standard ‘white’ minibus taxis that assist the standard blue taxis in the city have been barred from giving service as of Wednesday April 24, 2008.
These minibuses were giving complementary service to the blue minibuses in Addis Ababa after a severe transport shortage hit the city a year ago.
The Addis Ababa Transport Authority has ordered the white minibuses that usually work in the outskirts of Addis not to operate inside the city.
Traffic police have been removing license plates of minibuses that are found working in the city.
These minibuses had been easing the severe transport problem that usually occurs during rush hours.
One driver that has been stranded at the transport office after his license plate was taken by police, said that they have been banned from the city for reasons that the new Chinese midi buses are stranded without service and buyers and hence the move to ban the mini buses.
He added that the government planned to disperse the midi buses after barring these mini buses.
Some 300 midi buses were imported from China recently with the intention of alleviating the shortage of transport. The government has in total ordered 500 city buses from the Chinese government at a total cost of 166 million birr with the objective of minimizing shortage of transport.

Luxury goods tax swells

By Tedla Yeneakal

Taxes imposed on luxury items has increased by up to 20 percent, an estimation based on a calculation made by the Automated System for Customs Data (ASYCUDA), effective as of last week, Thursday, April 17, 2008 sources from the Ethiopian Customs Authority disclosed.
“It is not an exact percentage increase that has been effective but rather it has increased systematically based on calculation made in the Total Invoice Value (TIV) costs as well as costs involved in what we regard as ‘Cost & Freight” payments,” a customs official disclosed to Capital.
The Addis Ababa airport passenger section, the Nazareth customs station (90 km outside Addis), The Dire Dawa Railway customs station (about 530 km east from Addis), Kombolcha Customs station (about 440 km north from Addis), the Moyale customs station (about 700 km to the south of Addis) and where most imports to and from the COMESA region are processed have made effective the new increase as of the aforementioned date.
“We have to make it clear however that this is not an increase that has been effective as a result of any policy change made by the government, it is an increase that is internally increased as part of our authority’s operations,” the official added.
Luxury goods are classified by the Ethiopian Customs Authority as goods such as cigarettes, alcohol drinks, and large engine automobiles.
According to the official, there is an increase of up to 20 percent based on a calculation made using the ASYCUDA+ computer system, an automated system for customs data management.
The improved tax law that was effective in the year 2002 on luxury goods imposes excise tax payable on selected goods; as well as on goods that are hazardous to health and which are causes to social problems with a view of reducing consumption.

‘Sharing plates without getting married’ Girma Wake, CEO of Ethiopian Airlines

By Tedla Yeneakal

The CEO of Ethiopian, Girma Wake, made it clear about the firm stance of the national carrier, not to give up any share on its holdings, when asked whether the code share agreement Ethiopian signed with Lufthansa could in anyway be related to ownership, at a joint press conference with officials of both carriers, at the Sheraton Addis, on Tuesday, April 15, 2008.
“Sharing a plate is possible without necessarily getting married to each other,” explained Girma, “It’s an Ethiopian tradition to share meals; the new code share agreement will further strengthen Ethiopian’s position in Germany and other European markets by creating additional possibilities to access traffic through the extensive Lufthansa network.”
The agreement requires the two carriers to jointly provide daily frequency on the Addis Ababa-Frankfurt route. Ethiopian presently provides three weekly services from its home base Addis Ababa to Frankfurt on Tuesdays, Thursdays and Sundays, while the in-bound services to Addis Ababa are on Mondays, Wednesdays and Fridays. Lufthansa currently flies to Frankfurt four times weekly (Mondays, Wednesdays, Fridays, and Saturdays), according to a press release from Ethiopian.
Thierry Antinori, Executive vice President Marketing and Sales, Lufthansa, told reporters, “the code-share agreement aims at consolidating our position on the African continent and expanding our route network,” highlighting the strategic importance of the partnership with Ethiopian Airlines. “It will enable us to bring more people to Addis Ababa, the diplomatic capital of Africa.”
Girma, on his part commended Lufthansa and stated, “Lufthansa has been flying to Ethiopia since 1964 and has stayed the course even as others pulled out of the country,” Girma said. “We have a lot in common; it will be a threat to many African carriers.”
Since last October, Ethiopian’s ShebaMiles members have been able to earn and use their award miles on the international route network of Lufthansa. Similarly, Lufthansa’s ‘Miles & More Members’ have started utilizing Ethiopian’s services to accrue and redeem award miles on all its international and domestic scheduled flights, according to releases from both carriers.
Ethiopian has been partnering with LSG Lufthansa Service, the world’s biggest airline caterer and provider of integrated in-flight solutions, which assists Ethiopian in managing and upgrading its catering division.

ECX launches live trading

By Our staff reporter

Following an intense two-week period of simulated or “mock” trading with nearly 85 members and
Representatives drawn largely from the private sector, the Ethiopia Commodity Exchange (ECX) launches live trading of maize and haricot beans on April 24, 2008.
The Ethiopia Commodity Exchange will provide a marketplace where buyers and sellers can come together to trade and be assured of quality, delivery and payment. The exchange is a private—public undertaking with capital investment from its main promoter, the Government of Ethiopia, and membership seats privately owned by trading and intermediary members. The Exchange is jointly governed by private-public Board of Directors and managed professionally by an internationally recruited team.
ECX provides end to end service to the market, from commodity grading and warehouse operations to electronic warehouse receipting to standardized contracts for trading on an open outcry trading floor to an internal clearing house for settlement of payment to broad dissemination of market prices. The ECX system and its back office are fully automated and integrated.
“The Ethiopia Commodity Exchange represents a new era for Ethiopia’s agricultural marketing. It brings fairness and efficiency and levels the playing field for our smallholder farmers.” said Mekonnen Manyazewal, Chairman of the ECX Board and State Minister of Finance and Economic Development.
The Exchange, established by a proclamation passed by the Ethiopian Parliament in June 2007, is authorized to trade in both spot and futures contracts, initially starting with spot contracts for immediate delivery.
Trading will take place in the Exchange Trading Floor where only Members or their Representatives can trade on the basis of standardized contracts which specify commodities by grade and class, in standard lot sizes of 50 quintals or 5 metric tons, and which require a warehouse receipt to back the sell trading order and a pre-trade deposit in one of the two ECX partner settlement banks in the case of a buy trading order.
To ensure market integrity, the ECX automated system carries out reconciliation of trading orders, and clearing of net obligations to the exchange clearinghouse. Settlement is completed the same trading day using a secure electronic gateway with its settlement banks.
Similarly, title transfer of warehouse receipts and issuance of delivery notices to buyers are done electronically. ECX trading is designed as a zero default system to serve the needs of the market. A comprehensive ECX software application was developed by an in-house IT team and has been tested extensively following its development to ensure its reliability and service delivery.
“We expect trading to start progressively. The initial period will be one of learning as we are introducing an entirely new way of doing things to what is a very traditional sector. We are very encouraged by the keen interest and participation of the market actors, from farmers to traders to processors to exporters, who are all represented in our membership,” said CEO Eleni Zaude Gabre Madhine (PhD) who has led the initiative to design and implement the exchange for the past eighteen months to bring it to fruition.

Janora technologies obtain land for computer assembly

By Addis Mulugeta

Janora Technology, a computer company established eight months ago here in Ethiopia, has obtained 3000 sqm of land in Bahar Dar for locally manufactured ICT goods, export ready support and implementation capacity in the effort to harness the ICT developments efforts in Ethiopia with a total capital of 20 million birr, including a government loan.
According to Bekele Gebere Medhen , one of the shareholders, who exclusively told Capital, the founders are five Ethiopians, among whom three are residing in America They have experienc of over 20 years in computer architecture, electronics hardware design and manufacture.
Bekele noted that Janora Computers has ISO 9000 standard bearing manufacturing process and state of the art software and debugging tools for QA. The highly automated inventory possess with each computer barcode tagged and tracked its service/ maintained history for many years after sale service matches the best Dell or HP desktop computer in performance at a low price.
The assembly will start in six to eight months by importing the inputs from Singapore.
At the moment, the shareholders are going to be deal with Microsoft to get a license and they are asking a plot of land here in Addis Ababa in addition to Bahar Dar for computer assembly. Their plan is not only to control the local market but assess markets in Sudan and other African countries.
After establishment this computer assembly will create jobs for more than 50 individuals. The assembly is important for TVT graduate students including, to establish their own computer maintenance in every district by using Janora brand.

Djibouti, Eritrea at loggerheads

President Ismaïl Omar Guelleh of Djibouti and his counterpart Issayas Afewerki of Eritrea held a telephone conversation during which the two agreed to resolve the border dispute that has been rocking relations between the two countries, Djiboutian Foreign Affairs minister, Mahamoud Ali Youssouf, told a press conference.
Djibouti and Asmara are at loggerheads over Ras Doumeira, an area where Eritrean forces allegedly made a 100-metre incursion into the neighbouring territory.
Youssouf on Tuesday said Djiboutian armed forces will be repositioned around Ras Doumeira while the two leaders will meet on Thursday along with their senior military officers.
The two countries plan to resort to an international arbitration if the dispute remains unabated, Youssouf said.
Last Thursday, Djibouti accused Eritrea of encroaching on their common border with public works earth-movers which allegedly undertook some operations on the Djiboutian side of Ras Doumeira.
The Thursday talks should help both countries’ military forces revert to their initial positions a few kilometres on either side of the border.
The two presidents stressed the need to settle the dispute through an agreement on the mapping out of a borderline between Djibouti and Eritrea.
The controversial area is located in the region of Obock, northern Djibouti. (compiled from international news agencies)

\Cement price shoots up 50 percent

By Tedla Yeneakal

Cement prices have gone up steeply this week, with the retail price of a bag of cement up to 320 birr from the previous price of 220 birr, an average increase of close to 50 percent.
In recent weeks a severe cement shortage has hit the country and forced a halt to small scale construction in the city, after the government banned those allegedly importing cement with black market foreign currency.
However, the price of cement remained stable without any change during the weeks prior to the current week.
According to some small scale contractors who buy cement from the market, even though the price is stable it is hard for them to find cement for their construction needs.
Commenting on the price, they said that about 12 cement retail shops have been closed after they were found escalating prices some weeks ago and this move by the government has led to the stabilization of the price for a brief period.
Mugher Cement Enterprise, the biggest cement factory in the country, could only meet five percent of total demand.
In January 2008, the enterprise launched a new project that will increase its existing production capacity of 870,000 tons to 1.4 million tons annually, a 150 per cent increment.
Even though the project is expected to minimize the cement shortage to some degree, officials of Mugher had announced that it is not likely to fill the gap in supply and growing demand.
According figures obtained from the enterprise, close to 900,000 tons of cement was imported from November 2006 to December 2007.
According to a survey done by Mugher during the last Ethiopian fiscal year, the country’s demand for cement is 17.8 million tons annually, whereas the total production is limited only to 1.9 million tons per annum.

Study of organization for common consultation debatable

By Addis Mulugeta

After the study of common consultation between the government and business community, the Ethiopian Chamber of Commerce and Sectoral Association board of directors, in collaboration with Minister of Trade and Industry, organized a conference on April 21, 2008, at the conference hall in the Ethiopian Camber of Commerce and Sectoral Association.
Study of the organization for common consultation forum between governments and business community has been debatable on the independence of the consultation form from the government and the Ethiopian camber of commerce and sectoral association. According to the participants, this common consultations form is not completely independent. The participant noted that the common consultation form should be selected from the government and the Ethiopian chamber of commerce and sectoral associations. After a day long debate, the study was distributed to each of the regional states of office of chamber of commerce for about one month for about to understand the study critically, and contribute their own ideas regarding the common consultation between the government and business communities.
After the study will finish, it is very important to the government and business community to encourage trade and investment, a very good opportunity to business community to discuss their own issues, to collect money from the business community for their own benefits, it creates export opportunity for business community, finding a solution for immediate issues, it is important to bind together the federal government and regional businessmen, to develop the capacity of courts for better work and so forth and the like.
The government and business community need this common consultation for advocacy, developing the capacity of business community on the export sector , initiation increase from government and business community, the need for effective and active work of business and investment, find a solution the challenges and problems that business community faced and to achieve the country’s development goals etc.
on the other hand, the participant discussed on the one year anniversary of Ethiopian Camber of Commerce and Sectoral Association and the 60th anniversary of the Ethiopian chamber of commerce commercial activities.

ILO Director-General visits AU in Addis Ababa

By MulukenYewondwossen

The Director General of the International Labor Organization (ILO), Juan Somavia, paid an official visit to Addis Ababa starting from April 23, 2008. His visit was to attend the 6th Ordinary Session of the Labor and Social Affairs Commission (LSAC) of the African Union (AU). During his stay he met Prime Minster Meles Zenawi and Minster of Labor and Social Affairs, Hassen Abdell.
The two-day official visit provided the ILO Director General an opportunity to discuss ways and means to strengthen cooperation between ILO and the African Union Commission (AUC).
In a related development, the Experts Meeting of the Sixth Ordinary Session of the African Union Labour and Social Affairs Commission (LSAC) opened on Monday 21 April 2008, for three days under the theme “Improving the Informal Sector the Key to Poverty Alleviation”, at the headquarters of the African Union in Addis Ababa.
For three days, participants discussed the strategies of upgrading the Informal Sector given the important role this sector plays in the African economy. “The informal sector occupies close to 60% of the Gross Domestic Product (GDP)”.
Following a study on the informal sector in Africa conducted by the African Union Commission, “the informal sector forms a major part of most African economies. It is also a fast expanding sector providing jobs and livelihoods to a significant proportion of the population, resulting to poverty alleviation”.
Speaking on behalf of the AU Commission during the opening ceremony, the Acting Director of Social Affairs, Katrina Liswani, highlighted the importance of the Labour Experts meeting.
She announced that the theme of the meeting was equally the theme of the year for Labour and Social Affairs Commission. She explained that the meeting would consider the Ouagadougou Declaration adopted during the African Union Extraordinary Summit held in September 2004, of which the Plan of Action devotes some attention to the Informal Sector and recommends the upgrading of the informal economy by developing support mechanisms through training and access to finance.
She said the meeting also has to brainstorm on the Report of the Chairperson of the AU Commission on Labour and Social activities on the Implementation of the Ouagadougou Declaration and Plan of Action.
Meanwhile, Mrs. Liswani further called on the participants to propose recommendations on the four identified main policy areas for analysis as stated in the study carried out by the AU Commission on the informal sector. They are: Labour policies and laws; Social security policies and practices; Financial policies and practices; and Education and training policies.

Africa hosts historic conference

By Addis Mulugeta

Thirty years after the emergence of the slogan “health for all”, the World Health Organization (WHO), in collaboration with development partners and the government of Burkina Faso, is organizing a major conference from April 28-30, 2008, in Ouagadougou, Burkina Faso, to renew commitment to primary health care as the means to achieve improvements in health outcomes for the people of Africa.
Participants includes, ministers of health, policy and decision-makers and managers of health services, researchers, academicians, and social anthropologists, representatives of training institutions and ministries operating in the area of health ( education and finance ministries ), representatives of international organizations, civil society, youth and women’s organizations and the private sectors. Generally more than 500 participants from within and out side Africa are expected to take part in the conference which will be opened by Burkina Faso president, Blaise.
The three day conference, which coincides with the 30th anniversary of the Alma Ata Declaration on primary health care ( PHC ) and the 60th anniversary of WHO , aim to revitalize primary health systems development in countries in the African region in order to achieve the health Millennium Development Goal ( MDGs).
According to the press release the conference will be organized in plenary and parallel sessions to discuss a range of topics including human resource for health, health finance and essential medicines and technologies, governance, decentralization, management and delivery of essential and quality health services, public-private partnership for health management and multi sectoral collaboration for health development.
A discussion paper prepared by WHO, and to be delivered upon at the conference regarding many countries in Africa have embraced PHC and institutional measures to strengthen their health system. Such measures include decentralization and establishment of health districts, training of personnel for PHC management, creation of social welfare development committees’ and integrated of programs like immunization, diarrhea disease and essential drugs within PHC. Most have developed health policies and strategies plans clearly stating PHC as the main strategy for achieving improvements in health and the universal provision of a basic package of services to reach the MDGs, as the core of these documents and the reports continued to discuss.
The Ouagadougou primary health conference is expected to adopt a new regional declaration, similar in spirit to Alma-Ata, which would propose the development and implementation of public policies and strategies at both regional and national levels to continue to improve the health of people in the African region.
“Good health is not a gift or commodity to be rationed on ability to pay. The wealth of a nation should not determine the health of a people. Quality, affordable care for people is a human right, a matter of basic fairness, said WHO regional director for Africa, Dr Luis Sambo. The main problem is not just poverty, the inability of populations to afford and access quality health care is blatant injustice… and there is no better strategy to employ than primary health care to fight injustice in the health sector”, Dr. Sambo concluded.

EPRDF gain sweeping victory

By our staff reporter

The Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) won the local and parliamentary by elections held in Addis Ababa, according to the National Electoral Board of Ethiopia (NEBE).
NEBE Office Head, Tesfaye Mengesha in a press briefing he gave on Wednesday said that EPRDF gained a sweeping victory in the election held to fill vacant seats at the national parliament in all 14 election constituencies in Addis Ababa.
Similarly, EPRDF has won all seats of the city administration council in the election held in 10 sub cities of the administration.
The Coalition for unity and Democracy took one of the 14 seats designated to Bole Sub city in the city council.
NEBE has publicized the unofficial election result in accordance with Article 532/76 of the amended electoral law
Tesfaye said that the Board will soon release unofficial election results of the remaining regions.
The unofficial result of the election has been posted at the NEBE headquarter, he added.

U.S donates equipment for Ethiopian peacekeepers to Darfur

By Addis Mulugeta

The U.S, has donated equipment worth 2.1 million USD to 1,500 members of the Ethiopian National Defense Force (ENDF), which are under preparation to deploy to Darfur on a peacekeeping mission. The donation includes uniforms, boots, helmets, body armor, de-mining suits, tents, GPS systems, night vision goggles and other supplies and was presented to the Defense Force on April 17, 2008.
According to U.S. Ambassador to Ethiopia, Donald Yamamoto, the United States remains committed to helping the people of Darfur.
“We are proud to support the Ethiopian contribution to peacekeeping operations there. Ethiopian troops have played a critical role in the success of recent peacekeeping operations in Burundi and Liberia and we commend their pledge to UNAMID. In all these international efforts, Ethiopia has proven itself to be a factor for peace and stability throughout Africa”. He added, “We must all work to end the crisis in Darfur. Ethiopia’s role as a cornerstone of stability in the region and on the continent is particularly important.”
He further added that this support for the Ethiopian peacekeeping mission follows President George W. Bush’s February 2008 announcement that the United States will help fund training and equipment for African peacekeepers pledged to deploy under UNAMID. On his visit to Rwanda, Mr. Bush committed the United States to “ Assist African nations willing to step forward for the cause of peace in Darfur,” singling out for support countries that had pledged troops for UNAMID: Ethiopia, Rwanda, Ghana, Senegal, Tanzania, Burkina Faso and Malawi.
General Gezai Abera of Logistics Main Department, on his part stated that Ethiopia is playing a great role in peacekeeping and stability in the world as a whole and Africa in particular.
In related news, the British Embassy and the Ethiopian Ministry of Defense launched ‘Peacekeeping English project’ in Ethiopia on April 17, 2008 at the British Embassy. The peacekeeping English language projects are an initiative funded by the British government to help build the capacity of countries to participate effectively in international peace support and humanitarian relief operations.
The British government has allocated 3.8 million ETB for the first year of the initiative which will run until at least 2011 and be supplemented by funds from the Ethiopian Ministry of Defense.
“We are delighted to support the Ministry of Defense in enhancing the language skill of its personnel. Ethiopia is a leading contributor to peacekeeping missions.

Police detains protesters at Teddy Afro trial

By Tedla Yeneakal

The Addis Ababa police has detained dozens of spontaneous protesters around the Ledeta Federal High Court, after news broke out around the court that the trial of the popular singer Teddy Afro for a hit and run incident, expected by many to grant him bail rights, is postponed to next week, Tuesday, April 29, 2008.
Thousands of people around the Federal High Court protested with various slogans saying ‘We do not believe in guns but God’, in Amharic, urging for the release of Teddy Afro, whose real name is Tewodros Kassahun, Wednesday, April 23.
Family members and his fans gathered at the 8th criminal bench that he was scheduled to appeared, but was moved to the 3rd criminal bench, behind the main court area to move him away from the shouting crowd.
The prosecuting attorney amended the charges, citing the required articles related to the hit and run charges and driving without a license, which Teddy was accused of and postponed the hearing to rule on whether he will be granted his right of bail.
Million Assefa, Teddy’s lawyer, told Capital that he has asked the court to grant his client the right of bail, which he is hopeful will get a positive response in the upcoming trial.
“I can not put any demarcation on bail rights, it all depends on the charges filed by the prosecuting attorney,” Million said. “I would rather not comment further on a case that is on going in court.”
Teddy pleaded not guilty to driving without a license and driving negligently. He was first detained briefly in November 2006, when the incident occurred and released on 50,000 birr bail, before being apprehended by the police again last week and taken to Kaliti prison facility, some 25kms out of the capital Addis Ababa.
The Addis Ababa police arrested Teddy suspecting him of killing an 18 year old street boy named Degu Yibeltal, who was killed after he was hit by a car. A taxi driver at the time allegedy tipped off the police of the plate number of Teddy’s BMW, which was later found in a ditch on the road towards the CMC residential area, where the singer resides.
Various attempts to find the number of people who were detained for protesting failed to materialize but dozens of protestors were jailed before we went to print.

RYLA 2008 launched

By Addis Mulugeta

The path towards sustainable development and universal prosperity is a difficult one but nevertheless, a journey which we are destined to take by virtue of our obligations as global citizens. The embodiment of a worthy life is to strive in order that many more others can be empowered with the same spirit of selflessness.
One of the most internationally successful community service initiatives is the Rotary movement which has to its name over 1.2 million members in 32,000 chapters found in more than 200 countries, including Ethiopia.
The Rotary movement in Ethiopia has over half a century of existence.
Rotary was introduced in 1956 with the first Rotary Club of Addis Ababa, and currently has grown to include a membership of over 300 in seven other clubs - the Rotary Club of Addis Ababa East, Addis Ababa West, Addis Ababa Bole, Addis Ababa Entoto, Addis Ababa Finot, Bahir Dar, and the new full-fledged Rotarians [former Rotaract club] of Addis Ababa Central Mella. Rotary clubs in Jimma and Gondar are in various stages of formation.
A natural result of the Rotarian ethos “Service Above Self”, the Rotary clubs of Ethiopia have yet again conducted what will be rated as a seminal event in the history of Rotary in Ethiopia for the second time.
Known internationally as the ‘Rotary Youth Leadership Awards’ - RYLA - the program aims to nurture committed youth to serve as peer leaders with a view to disseminating further the goals and aspirations of the worldwide Rotary movement.
RYLA Ethiopia 2008/09, an all rounded training on the development of quality leadership and good governance was launched for 120 youths by the Rotary family for two consecutive days starting from April 19, 2008.
The training was held at the Ethiopian Chamber of Commerce and Sectoral Associations, sponsored by all Rotary clubs in Addis Ababa, and businesses and organizations including Travel Ethiopia, Nas Foods, GTZ, BGI Ethiopia, Air-Link Travel, Kadisco, Gashem Travel, Cleanway, Dstv, Polar Promotion, Andinet Printing, Russian Center for Science & Culture and Capital newspaper.
RYLA Ethiopia 2008/09 Chair, Rotarian Gebregziabher Bekele stated that the training has focused on leadership capacity of the youth and good governance in order to build the leadership personality of our country’s next leaders.
Before the training session a questionnaire was disbursed to RYLA participants to gage the level of interest of the youth. The responses indicated that the youth seek education on how to compile Curriculum Vitae (CV), prepare for interviews, write project proposals and conduct financial management.
Taking part in this year’s edition are members of Rotaract clubs of Abugida, Alegnta, Habesha, Raey, Mella, Atronos, Lewit, Keroggie, and Solyana.
The training is organized in three modules. Under module 1 courses in Listening, Appreciative Enquiry and Emotional Intelligence were conducted by Rtn. Berhanu Tadesse, Rotaractor Hawaria Mulugeta, and Rtn. Patrick Obath Ochieng based in Nairobi and here representing District 9200’s RYLA Chair. “Rtn. Obath is a pioneer of RYLA in East Africa, and was very instrumental in the organization of RYLA Ethiopia 2008/09,” said Gebregziabher.
Module 2 features Financial management, Result based management and Leadership skills, Bank loans to finance projects, Report writing and Introduction to presentation skills conducted by Rtn. Past President Abebe Dagne and Hon. Member of the Rotary club of Addis Ababa East, H.E. Mr. Yves Boulanger, Ambassador of Canada to Ethiopia as well as Ato Tadesse Tegene.
The training will extend with a two day visit to Awassa, SNNPS, scheduled for May 2nd and 3rd, 2008. Group based competitions involving food and drink service, security and finance, public relations and documentation, transport and camp set up, and first aid among others will feature on this camping trip.
The final training module incorporates Team building games, Communication and networking exercises, Experience sharing with exemplary Rotarians, Group competition on advertising, and Group activity on current issues, concerns and challenges of the youth. These will be given by Rtns. Hertmut Hess, Samrawit Moges, Moges Alemu and Yemane Bisrat.
At the conclusion an evaluation committee will announce the winning group.
Judging by the success of RYLA 2007/08 it is anticipated that this year’s edition will be even more educational and entertaining.
Since 1968, the date the first Rotaract club was chartered, the program has grown into a strong, international network of 7,300 clubs in more than 150 countries. Rotaract clubs have 145,000 members of young men and women (ages 18 to 30) who serve the needs of their communities, widen their personal and professional contacts, and increase their understanding of the world.

Security Council blast Eritrea

By our staff reporter

All Security Council members agree that Eritrea’s treatment of the U.N. peacekeeping force on its disputed border with Ethiopia is “totally unacceptable,” the council president said.
At the same time, however, the council recognizes that the political and legal roots of the dispute which stem back to a 2002 ruling by an independent boundary commission must be addressed, South Africa’s U.N. Ambassador Dumisani Kumalo said Tuesday April 22.
Kumalo, the council president for April, spoke to reporters after closed-door council discussions on Secretary-General Ban Ki-moon’s recent report outlining four possible options for the peacekeeping mission.
Calling the decision on the mission’s future “difficult and complicated,” he said the council needs more time to deliberate.
Eritrea and Ethiopia have been feuding over their border since Eritrea gained independence from the Addis Ababa government in 1993 after a 30-year guerrilla war.
A 1,700-strong U.N. force has been monitoring a 15-mile (24-kilometer) wide, 620-mile (1,000-kilometer) long buffer zone between the Horn of Africa neighbors under a December 2000 peace agreement that ended a 2 1/2-year border war.
Tensions between the two countries remain high because of Ethiopia’s refusal to accept the boundary commission’s 2002 ruling on the border demarcation which awarded the key town of Badme to Eritrea.
According to Ban, the Eritreans have obstructed the peacekeeping efforts for the past year and a half with its military occupation of part of the buffer zone, and restrictions on U.N. night patrols, supply routes and diesel fuel. Eritrea also banned U.N. helicopter flights in its airspace in October 2005.
The secretary-general ordered the temporary redeployment of U.N. peacekeepers in Eritrea on Feb. 11 after its government restricted fuel supplies to the force and its food supplies were briefly halted.
“The members of the council do recognize that this is a turning point in the life of that effort of many years,” U.N. peacekeeping chief Jean-Marie Guehenno told reporters after the meeting.
He urged the two countries to recommit to the 2000 peace agreement — but that appeared highly unlikely.
In an April 16 letter to the Security Council, Eritrea’s U.N. Ambassador Araya Desta said the border has been demarcated by the commission.
Therefore, he said, “Eritrea cannot understand or accept this academic game of contemplating ‘various scenarios and options in the abstract’ when the first and foremost responsibilities of the Security Concil must be to ensure Ethiopia’s compliance with its treaty obligations and ensure the evacuation of its occupation from sovereign Eritrean territories.”
Guehenno said this showed “there is no support for a peacekeeping presence.”
Ethiopia’s Foreign Minister Seyoum Mesfin, in a March 31 letter, accused Eritrea of trying to “humiliate” the U.N. peacekeepers and urged the Security Council to impose sanctions on Eritrea to ensure that it fulfills all provisions of the 2000 agreement.
Kumalo said “the members of the council were unanimous in that the way the peacekeepers ... have been treated in Eritrea is totally unacceptable, and the Security Council cannot but protect those peacekeepers.” At the same time, however, he said the political roots of the dispute “cannot be just brushed aside.”
U.S. deputy ambassador Alejandro Wolff agreed that “there is a mood in the council of great, great dissatisfaction with the manner in which Eritrea has handled this.”
“They challenged the authority, and in a typical way by shooting themselves in the foot,” Wolff said. “I think in the long run Eritrea will pay a very big price for this misjudgment.”
Ban’s report warned that a new war could break out between Eritrea and Ethiopia if the U.N. peacekeeping mission withdraws entirely.
Kumalo said “the council is aware that there is a possible conflict between these two parties, so the responsibility is on the parties to find a way to live peacefully among themselves.”

Ethiopia cuts diplomatic relations with Qatar

By our staff reporter

After the Ethiopian Foreign Ministry had sharply criticized the Qatar-based news network Al-Jazeera for airing a series of TV reports on Ethiopia’s restive Ogaden region on April 11, 2008, the Ethiopian government broke off diplomatic ties with Qatar officially on April 21, 2008.
According to the Ethiopian government statement “All diplomatic efforts have been deployed to try to persuade Qatar to change its destructive activities of which Ethiopia has unequivocal evidence,” it said. “Apparently blinded by arrogance Qatar has remained deaf to all our efforts.”
“Ethiopia has displayed considerable patience toward Qatar’s attempts to destabilize our sub-region and, in particular, its hostile behavior towards Ethiopia,” the statement said.
“Qatar has now, however, become a major source of instability,” it added. “All those who are prepared to stir up instability in Ethiopia and undermine the country’s security have been given support and encouragement by Qatar.”
“This has gone beyond Qatar’s strong ties with Eritrea. It has indeed provided direct and indirect assistance to terrorist organizations in Somalia and other areas. Qatar has been one of the most important supporters of terrorism and extremism in our sub-region.”
The Foreign Ministry was particularly upset by a report on the activities of the Ogaden National Liberation Front (ONLF), the separatist group it has been battling for years.
“Al-Jazeera is using inaccurate and misleading information, fabricated by opposition elements backed by a state which makes no secret of its efforts to destabilize not only Ethiopia but also the entire sub region,” it said. “It is hard to ignore the fact that Al-Jazeera broadcasts out of Doha, the capital of Qatar. Qatar is a close ally of Eritrea. It would be totally unrealistic to imagine that any Al-Jazeera program on Ethiopia could be anything other than seriously biased.”
Al-Jazeera’s aggressive style of reporting has caused many governments unaccustomed to criticism to accuse it of bias - and some have also downgraded their relations with Qatar.
Ethiopia and Qatar have just six mln USD bilateral trade relations annually. Currently many Ethiopians are working in Qatar.
From Doha, a Qatari official dismissed Ethiopia’s charges, saying it had always done its utmost to combat terrorism.
“The Ethiopian charges do not deserve a reaction from us. They are frivolous and irresponsible,” the official, who declined to be named, told Reuters.
“Qatar’s foreign policy is clear. Qatar underlines the importance of peaceful settlement of all disputes between nations.
A statement from the Ethiopian government cited Qatar’s “strong ties” with opposition groups inside the country and fighters in Somalia, where Ethiopia sent troops in 2006 to support the government.

The world food crisis dominates UNCTAD XII, in Accra,Ghana “Make no mistake!”, Ban Ki-moon cautions

100 mln Birr tannery in the works

Al-amoudi wins $4.75 mln lawsuit

Federal Government faces over 1 bln birr budget deficit 98% for road projects

Suburban minibuses banned from city

Luxury goods tax swells

‘Sharing plates without getting married’ Girma Wake, CEO of Ethiopian Airlines

ECX launches live trading

Janora technologies obtain land for computer assembly

Djibouti, Eritrea at loggerheads

Cement price shoots up 50 percent

Study of organization for common consultation debatable

ILO Director-General visits AU in Addis Ababa

Africa hosts historic conference

EPRDF gain sweeping victory

U.S donates equipment for Ethiopian peacekeepers to Darfur

Police detains protesters at Teddy Afro trial

RYLA 2008 launched

Security Council blast Eritrea

Ethiopia cuts diplomatic relations with Qatar

The world food crisis dominates UNCTAD XII, in Accra,Ghana “Make no mistake!”, Ban Ki-moon cautions

100 mln Birr tannery in the works

Al-amoudi wins $4.75 mln lawsuit

Federal Government faces over 1 bln birr budget deficit 98% for road projects

Suburban minibuses banned from city

Luxury goods tax swells

‘Sharing plates without getting married’ Girma Wake, CEO of Ethiopian Airlines

ECX launches live trading

Janora technologies obtain land for computer assembly

Djibouti, Eritrea at loggerheads

\Cement price shoots up 50 percent

Study of organization for common consultation debatable

ILO Director-General visits AU in Addis Ababa

Africa hosts historic conference

EPRDF gain sweeping victory

U.S donates equipment for Ethiopian peacekeepers to Darfur

Police detains protesters at Teddy Afro trial

RYLA 2008 launched

Security Council blast Eritrea

Ethiopia cuts diplomatic relations with Qatar

The world food crisis dominates UNCTAD XII, in Accra,Ghana
“Make no mistake!”, Ban Ki-moon cautions

The world food crisis dominates UNCTAD XII, in Accra,Ghana
“Make no mistake!”, Ban Ki-moon cautions