Capital

Vehicle taxation period extended to avoid fraud

By Tedla Yeneakal

MoWUD to build one million houses: State Minister

By Abiy Demilew

Electoral Board accredits UDJ

By Kirubel Tadesse

CBE opens branches in Sudan, Somaliland

By Tedla Yeneakal

Cooperative associations to form bank

By MulukenYewondwossen

Indian Leather Industry sees Ethiopia as potential partner
‘Ethiopia holds the best leather’, says delegation

By Abiy Demilew

U.S. suspends African refugees’ family-reunification program

By staff reporter

Mobile phones prices skyrocket

By Kirubel Tadesse

Agency reports foreign investment rising

By Addis Mulugeta

Ethanol-blended fuel to hit market

By Groum Abate

EBG to sell Nile fuel trailers

By Groum Abate

Draft law envisages to protect investors in energy

By Addis Mulugeta

Sheik Al-amoudi’s upcoming biography

By Muluken Yewondwossen

Kurtu completes 30 mln. birr commercial center

By Kirubel Tadesse

Ethiopia signs petroleum agreement with Texas company

By Muluken Yewondwossen

Vehicle taxation period extended to avoid fraud

By Tedla Yeneakal

The tax payment period for on imported vehicles, which was previously collected at the same time as customs duty, has been extended to allow the newly structured Revenues and Customs Authority enough time to inspect details of vehicles imported into the country.
Abebe Kebede, Head of the Public Relations at the authority, told Capital it is not a new regulation but rather part of a re-structuring to effective tax collection from imported vehicles by investigating the actual tariff of vehicles in the international market and checking this against the price claimed by the importer.
“Inspecting prices internationally and giving time for imposing taxes appropriately would enable us to operate efficiently,” Abebe said, “we need to regularly update our operations to allow us to obtain all the required information about the vehicle that has been imported.”
An excise tax is imposed on imported motor cars, station wagons, utility cars, 4 wheel drives, pickups and similar vehicles (including motorized caravans), whether assembled, together with their appropriate initial equipment and depending on the horsepower of their motors. An excise tax of 30 percent is imposed for vehicles of up to 1,300 cc, whereas, vehicles within the range of 1,300 to 1,800 cc are required to pay a 60 percent tax and on those above 1,800cc, 100 percent tax is imposed. However, these vehicles are also subject to other taxes that are relevant for imported vehicles.
“If, for example a person imports a Toyota from the Netherlands, we thoroughly enquire its market price in that particular country before imposing the required tax payment,” Abebe added.
Previously tax for imported vehicles used to be collected at the same time as the customs duty, whereas under the Authority’s new operation, the tax is collected depending on the time it takes for investigating the vehicle’s market price on the international market.
According to a recent parliament report, 12,116 new and second hand vehicles have legally entered the country in this Ethiopian budget year, (up to the end of June 2008), whereas 4,334 vehicles that have entered the country duty free and which have been transferred to a third party illegally have been legalized and more than 289 million birr has been collected in tax revenue on these vehicles.
According to the report, during the aforementioned period, 248 vehicles that had been transferred to a third party have been seized by Customs police.
Recently the Ministry of Transport and Communications announced plans to pass a directive that would prohibit second-hand vehicles imported to the country that are more than five years old, with the aim of restricting the entry of obsolete vehicles.

MoWUD to build one million houses: State Minister

By Abiy Demilew

Arkebe Oqubay, State Minister, Ministry of Works and Urban Development (MoWUD), has projected that, a minimum of one million houses will be constructed around the nation, over the next ten years.
Arkebe, in a Capital exclusive, revealed that, besides the construction of one million houses across the nation, the poverty level in cities will also decline by 50%, according to his projection.
“If the momentum keeps growing, we see an optimistic picture in the future of this nation,” he told Capital. “We will also see a significant change in good governance areas.”
According to Arkebe, agriculture is one of the sectors where the nation sees dramatic moves, since the global situation has already privileged the sector.
“We are also optimistic that the momentum towards the agri-sector will keep growing and, farmers in Ethiopia will have a different lifestyle within that period of time,” Arkebe said.
The State Minister admitted that this projection will only be achievable, if community participation in the government’s development activities keeps growing and improves in the coming years.
Arkebe, who admitted the significant challenges of the current shortage and price hike of cement and other construction materials, said the state has started importing one million tons of cement, iron bars, and other materials, including sanitary utilities.
According to Arkebe, the government has paid special attention and given support for the development of the construction industry, which capacitates the nations’ constructors towards middle and higher levels.
“Since most of the construction companies and consultants are not yet up to the fullest standards and have financial challenges, we have started helping them with 70% bank loans, so that they could afford to import machinery,” Arkebe said.
The state has allocated more than two billion birr to support the import of loaders, crushers and other machinery, which are being provided to construction companies.
“Previously, according to law, they were required to provide collateral bonds from banks. But now, constructors and consultants are not required to provide collateral bonds, but only asked for insurance bonds,” and according to him, to support them in the process, the state is providing construction and consultant companies with a 20% down payment.
“This will help them avoid financial hardship, as the prices of construction materials are ever increasing in the global market,” he said.
Arkebe also disclosed to Capital that, the society’s participation in the overall development activities, will matter to the future development of the country. “After some of the incidents that happened following the May 2005 election, societal participation in those aspects has declined dramatically. But this needs to change to regain the previous momentum of development,” he underscored.

Electoral Board accredits UDJ

By Kirubel Tadesse

The National Electoral Board of Ethiopia (NEBE) has issued a certificate of accreditation to the latest national political party, Unity for Democracy and Justice (UDJ), Capital learnt.
In its ordinary session held on Friday August 22, 2008, the Electoral Board decided to issue accreditation after it examined that UDJ has met all the legal criteria, filed the necessary documents, and made adjustments as per recommendations of the Board, Tesfaye Mengesha, NEBE Office Chief, explained to Capital.
Formed by the former Coalition for Unity and Democracy Party (CUDP) majority, UDJ has been striving to join mainstream politics after it named former CUDP first vice chair Birtukan Medeksa its Chair at a founding congress held on June 18, 2008.
UDJ Public Relations issued a statement on the same day the party obtained the accreditation certificate, congratulating its members and supporters. Hailu Araaya (PhD) Vice Chair in charge of Public Affairs appreciated the decision of the Board which he said, witnessed an efficient performance. “We had hoped that if we met all the criteria as per the law we would get the accreditation and it has happened but it should not mean that it was a very easy process, “Dr. Hailu explains to Capital when asked how he assesses the overall process his party went through to obtain the certificate, “Some obstacles had to be overcome.”
Minor problems in signatures collection reported by the taskforce, led by second in command, Gizachew Shiferaw (Eng.), and Justice Birtukan’s announcement of a ban of the founding congress scheduled for Friday, June 13, 2008 less than 24 hours from schedule, are among notable challenges the party had faced. The following Wednesday, UDJ held its founding congress and elected Birtukan to lead the political group-making the party the first to give the position to a woman. Doors were closed to the press during the election but party members Capital talked to confirmed that the process has been democratic and results were satisfactory.
Among a vital win of the so called Birtukan’s group, one was to bring the parliamentarian group led by Temesgen Zewdie (MP) on board. Temesgen is now among four deputies to form the top five-Chair Birtukan, Eng. Gizachew, Dr. Hailu and former UN prosecutor, Yacob Hailemariam (PhD). In her recent exclusive with Capital, Birtukan explained that the focus will be to strengthen party structure.

CBE opens branches in Sudan, Somaliland

By Tedla Yeneakal

The Commercial Bank of Ethiopia (CBE) is finalizing processes to open branches in Juba, Southern Sudan, and Hargessa, the capital of Somaliland.
An official at the CBE told Capital that due to the growing imports of these countries, increasing the trade activities in the region the management has decided to open branches in these countries.
"We want to benefit from the growing market along the border towns of Somaliland and also in Juba, where oil companies are competing for resources," the official said, "Currently a number Ethiopians in search of better jobs are migrating to Sudan, a country where relatively fast economic growth is registering."
Opening a branch overseas is not the first for the largest state owned bank. Before closing down in the year 2004 its branch in Djibouti, it operated there for years.
According to the official, business transaction in Juba is growing with new oil discoveries and the mushrooming exploration projects booming, it is a viable market for CBE once they finalize required agreements to get on with the job.
Before the government split the State Bank of Ethiopia in 1963, into the National Bank of Ethiopia, the central bank, and the Commercial Bank of Ethiopia (CBE), the State Bank of Ethiopia established a branch in Sudan that the Sudanese government nationalized in 1970. Then in 1980, the Government merged Addis Bank into the Commercial Bank of Ethiopia to make CBE the sole commercial bank in the country, according to information obtained from the National Bank of Ethiopia (NBE).
The 66-year-old Commercial Bank of Ethiopia is the largest bank in Ethiopia and has about Birr 49 billion in assets. The bank has some 8000 employees who staff the headquarters and 205 branches positioned in the main cities and regional towns, including 45 branches in Addis Ababa.

Cooperative associations to form bank

By MulukenYewondwossen

Promoters from more than eleven cooperative associations are preparing to form Addis Bank, which according to Dagnew Gessesse, secretary of the organizing committee, is made up of over 154 employees' credit and savings associations. These associations have formed the Addis Ababa Savings and Credit Cooperatives Union that will own 75% of the new bank.
"We will also give the opportunity for some individuals to buy shares in the new bank. The Bank Supervision Department of National Bank of Ethiopia has given us permission to sell shares in January 2008," said Dagnew.
Sources from the Ethiopian Airlines Credit and Saving Association disclosed to Capital that to date their association has subscribed the largest amount of 130 million birr.
The Ethiopian Airline's credit and saving association, the Development Bank of Ethiopia (DBE), the Ethiopian Insurance Corporation (EIC), the Addis Ababa University (AAU), the Ethiopian Electric Power Corporation (EEPCo), the Ethiopian Roads Authority (ERA), the Ethiopian Telecommunications Corporation (ETC), Commercial Bank of Ethiopia (CBE), African Union (AU), Economic Commission for Africa (ECA), Ministry of Agriculture and Rural Development (MoARD) and National Tobacco Enterprise's credit and saving associations are the founders of Addis Cooperative Bank.
Subsequently, a blocked account has opened in three branches of the Cooperative Bank of Oromia, Abyssinia Bank S.C. and Commercial Bank of Ethiopia (CBE). The promoters envisage raising a subscribed capital of 300 million birr, and a paid up capital of 75 million birr, which is the minimum threshold for bank paid up capital, set by the National Bank of Ethiopia (NBE).

Indian Leather Industry sees Ethiopia as potential partner
‘Ethiopia holds the best leather’, says delegation

By Abiy Demilew

The Indian leather industry, one of the world’s largest, is exploring the possibility of developing bilateral trade relations, sourcing specialized leather and joint ventures in Ethiopia, in various sectors of the industry.
An Indian leather industry delegation led by Mr. Rafeeque Ahmed, President of All India Skin, Hide, Tanners and Merchants Association (AISHTMA), on a three day visit to Ethiopia this week, announced that Ethiopia has great potential in the leather sector.
Mr. Rafeeque Ahmed, Chairman of FARIDA group of companies, in an exclusive with Capital said, the 14 member delegation from various sectors of the Indian leather industry, is developing and sighting ahead the possibilities for bilateral trade partnership with the Ethiopian leather industry and the government of Ethiopia.
“Ethiopia is a key producer of high quality leather and it’s a growing industry with a large potential market,” Rafeeque told Capital. “On this visit, we have seen how far the Ethiopian leather industry has progressed and which areas could be of common interest.”
The delegation held high level discussions with Girma Birru, Minister of Trade and Industry and State Minister Tadesse Haile, and signed a Memorandum of Understanding (MoU) with the Ethiopian Leather Exporters Association (ELEA).
Rafeeque Ahmed disclosed that, the discussions helped the delegation to understand the level of the country’s commitment towards the development of the leather industry.
After visiting local tanneries, Rafeeque revealed that, his delegation is highly impressed with the production quality of some of the tanneries producing finished leather products.
“We want to start with crust and finished products,” he said explaining a prime area of interest. “We also see semi-processed leather, which seems of really good quality.” However, the realization of imports of semi-processed leather will occur after the transfer of set standards from Indian factories, according to Rafeeque Ahmed.
Rafeeque also said his delegation is impressed with the quality of shoes produced locally. “We have seen good quality of shoes which can sell at international markets along side any big name brands.” In the long run, the delegation is also viewing the possibility of establishing shoe factories in Ethiopia, according to Rafeeque.
Holding the world’s largest livestock population currently, India is a source for 10% of the global leather requirement with annual production valued at US$ 5 billion, and annual exports of US$ 3 billion. The leather industry is India’s fourth most important source of foreign exchange earnings.
The Indian leather industry is known for its large-scale employment with labor in direct and indirect employment reaching about 3 million. Women constitute more than 30% on the national level and 80% at state level in the leather product sector.

U.S. suspends African refugees’ family-reunification program

By staff reporter

The United States State Department and Homeland Security have decided to suspend the family-reunification program for African refugees after sample DNA testing of applicants from Ethiopia and Somali revealed a widespread fraud.
The DNA testing was reported to have begun in February this year in neighboring Kenya showed among Ethiopian and Somalia applicants. The tests revealed that only a very small percentage of applicants were actually blood relatives of refugees given residence in the United States.
Under the U.S. family-reunification program, known as Priority Three or P 3, refugees already living in the United States are entitled to apply for permission to bring in immediate family members, including spouses, minor children, parents or siblings.
Last Wednesday August 20, 2008, The Wall Street Journal announced this decision which was later confirmed by State Department Deputy Spokesman Robert Wood who said the two U.S. government departments decided earlier this year to begin DNA testing of the applicants after allegations of fraud on press briefing.
Wood said the initial tests, involving about 500 mainly Somali and Ethiopian applicants examined in Nairobi, showed that only about 20 % were blood relatives of those in the United States.
“I believe it was in February when this pilot test was conducted in Nairobi, and what was found was that roughly 20 percent of the cases - in only 20 percent of these particular samplings - were we able to find a family connection,” Wood said. “And so the program has been suspended, and Department of State and the Department of Homeland Security are looking into it further, to see what we can do with regard to this particular program.”
Spokesman Wood said that after the Kenya sample indicated serious problems, the testing was expanded to East African and Liberian refugees awaiting resettlement in Ethiopia, Uganda, Guinea, Gambia and Ivory Coast.
The Bush administration set a ceiling of 16,000 African refugee admissions for the current fiscal year ending September 30, but officials say that by last week, less than 7,000 had been admitted.
U.S. refugee advocate groups have expressed concern about the suspension, but say that no one can condone gaining entry to the United States by false means. So far neither State Department nor Homeland Security Spokesman gave indication of when the program would resume, Wood was quoted saying that it is the administration’s intention to restore it once the fraud problem is tackled.

Mobile phones prices skyrocket

By Kirubel Tadesse

The local market has increased prices on mobile handsets, taking advantage of the sudden huge demand that came following the pre-paid SIM cards release, which had been suspended for several months.
When the sole telecom provider, Ethiopian Telecommunication Corporation (ETC), launched its latest sale of pre paid SIM cards almost two weeks ago, residents of Addis Ababa and neighboring cities formed long queues in front of shops selling the SIM cards. The mobile handsets market - like customers - was caught off guard when ETC released the SIM cards, and to take advantage of the sudden demand, has increased the prices of the handsets.
In Merkato, Gojam Berenda, Piassa and Bole road shops Capital surveyed, some of the handsets have nearly doubled in price. Nokia’s 1600 model which was just 450 birr two weeks ago is now sells for 750 birr.
The popular Motorola model L6 was sold for twelve hundred birr in recent weeks-only to go up by three hundred birr. Another Motorola, V3, which was once popular and sold for 3000 birr, had drooped down to one thousand birr in recent months. Following the SIM cards price shake up, it now sells for 1500 birr in Bole while Merkato shops asks 1450 birr.
Mobile shop sales persons- upon anonymity- explained to Capital that the price climb is only due to the increase in demand.
One buyer who was negotiating to buy Nokia’s latest model, 5310, at Dembel City Center, commented that he was offered 2800 birr for the same phone just ten days ago. “I am now looking for any price close to 3000 birr because all I was being offered in four shops is thirty two hundred.”
Most shops expect prices to calm down once ETC completes the SIM card sales.
However, Abdurahim Ahmed of the ETC, had told Capital last week that the Corporation has enough SIM cards in stock that should stay on the market for some time to come. Customers advise the sub city and others to force sellers to post a price list.
Major distributors and shops on their part want ETC to advise them before the release of SIM cards. “The recent price climb could happen on any product or commodity since there is sudden demand without any increase in supply. However, if the demand was learned of by suppliers and enough stock was held in advance, customers would not suffer,” anonymously comments one distributor, “what you see now is small shops setting prices only because they have handsets at hand.”

Agency reports foreign investment rising

By Addis Mulugeta

Abi Woldemeskel, Director General, Ethiopian Investment Agency, explained that the number of foreign investors is mounting sharply, at a press conference held on August 19, 2008.
Abi said, as a result of the agency’s capacity building and investment promotion activities, the number of both local and foreign investors reached 1,773 in the 2008 budget year. Their aggregate capital reaches 94 billion birr. Of these 1,627 are foreign investors with a combined 87 billion birr working capital. It is expected that 332,000 permanent jobs will be created.
He said that, for the 2009 budget year priority areas of investment have been identified, and to promote the country in general, the agency, along with other stakeholders, has been moving proactively to the targeted countries where potential investors are located, in addition to receiving them at home. Areas of investment for foreign investors identified for 2009 budget year are clothing, leather and leather products, agriculture bio-fuel, health, education and hotel construction. The agency has plans to attract at least 35 investors from three countries namely china, India and Turkey.
He added that to create conducive investment climate and to bring fast and sustainable economic development in the country, the Ethiopian Investment Agency would provide all the necessary support with the view to improve Ethiopia’s investment competitiveness and to give efficient and effective services including incentives, for duty free import of investment materials.
He answered question like what measures have been taken by the agency on investors who have not started work as, both regional and federal investment agencies have powers to take away the investment land after 6 months if the investor does not present satisfactory reasons. Abi concluded by saying that in the 2008 budget year, the agency achieved 93 percent of its plan of action.

Ethanol-blended fuel to hit market

By Groum Abate

Following the Ministry of Mines and Energy's (MoME) granting rights for Nile Petroleum Plc. to blend ethanol with benzene, Nile Petroleum, a Sudanese based company and five oil companies operating in Ethiopia have signed an agreement providing for distribution of ethanol-blended petroleum in Ethiopia.
Nile would mix ethanol with petroleum at a 5% ethanol content.
Nile would carry out the blending in the depot it constructed in Sululta, 24Km north of Addis Abeba in the Oromia Regional State. The depot, which has a capacity to hold 300 tons of liquid petroleum, is installed on a 20,000sqm plot.
According to the agreement, the oil companies would supply Nile with petroleum, while the latter would distribute the oil by mixing it with ethanol.
The ethanol-blended petroleum would be on sale as of the upcoming Ethiopian new year, in September 08 .
The ethanol would be obtained from Fincha Sugar Factory. Wonji, Metehara and Tendaho Sugar Factories are also expected to supply ethanol in the near future. Metehara and Wonji Sugar Factories are undertaking preparations to produce ethanol within a short period of time for the same cause.
Nile Petroleum plans to kick off the blending with 8.1 million liters of ethanol currently stocked at Finchaa.
It is expected that in 2010, the country's ethanol production would reach 35.1 million liters.
The product would be distributed in Addis Ababa as the supply of blended petroleum would not be sufficient.
The agreement signed on Thursday August 21, 2008 was made in accordance with a Biofuel Development and Usage Strategy endorsed by the Council of Ministers in September 2007. The strategy targets the growing clean energy movement that cuts down on increasingly costly fossil fuels.
Ethiopia annually spends over ten billion birr to import oil, which accounts for over 90% of its imports.
Due to instabilities in oil supplying countries and soaring demand from emerging economics, the price of oil has reached an all time high around 150 dollars per barrel but eased down to 120 dollars per barrel recently.
Ethiopia has 23.3 million hectares of suitable land for Jatropha and 700,000hct of land for sugarcane plantation, whose by-product is an input to produce ethanol.
According to the strategic plan, if all these lands are developed, the country will be able to produce one billion liters of ethanol, seven times more than the current oil demand.
In 2012/13, the four sugar factories - Tendaho, Metehara, Wonjishoa and Finchaa - are expected to produce 128.2 million liters of ethanol.
NPC was established in 1954 as Nile Import and Trading Oil Company, a subsidiary of Total, with the Sudanese government holding a 75 % stake until 1993. The company, totally state-owned since 1993, has a 60 % share of the marketing and distribution of petroleum products in Sudan. It entered the Ethiopian market in 2004.

EBG to sell Nile fuel trailers

By Groum Abate

After eight years of litigation, the Federal High Court has ordered the auctioning of 20 fuel trailers owned by Nile International Trading (NIT) to settle payment to Equatorial Business Group (EBG).
Some 20 fuel bulk trailers were bought through a loan provided by Commercial Bank of Ethiopia (CBE) to NIT and were parked without rendering any service for over eight years. The 20 Callabrese brand fuel trailers were imported by Nile International from Italy to the tune of 15.2 million birr.
According to the notice on the Amharic daily Addis Zemen, the court ordered the auctioning of the 20 trailers at a price of 40,000 birr each on October 14, 2008. The 20 trailers are put for auction for a floor price of 800,000 birr.
Nile International was owned by businessman Temesgen Mehari.
20 Volvo heavy-duty trucks (chassis) have also been ordered from Equatorial Business Group to be installed with the trailers for Nile.
Trouble sprouted when Nile bounced the vehicles and sued Equatorial saying the imported chassis were not specifically per its order. Moreover, it filed a suit claiming damage for about 12 million birr against Equatorial for the stranded vehicles and trailers.
In a much publicized affair, Nile won the first two court litigations, but lost at the court of cassation. In the meantime, the 20 trailers were stranded throughout the litigation where Nile was repeatedly pleading for the court's attention that the trailers were put out of use.

Draft law envisages to protect investors in energy

By Addis Mulugeta

A law is to be issued which will protect private investors in the rural electrification sector from being evicted from their investment by Ethiopian Electric and Power Corporation’s (EEPCo) expansion to their investment area. For this, the German Technical Cooperation International Services (GTZ IS) financed by the Dutch government, has allocated 3.7 million Euro for “Access to Modern Energy Services Ethiopia” (AMES-E).
The upcoming law allows investors to invest in hydropower or solar energy supply for rural communities where the grid of EEPCo does not reach up to 2009, without any disturbance from the Corporation.
AMES-E Project, implemented by GTZ IS focuses on energy supply in remote rural areas in Ethiopia. The objective of this project is to provide new and sustainable access to modern forms of energy services for approximately 300,000 beneficiaries in the country.
On a workshop held on August 22, 2008 which was organized to discuss the study on establishing a feed in law, GTZ officer in charge, Samson Tolossa explained that the allocated amount of money is for micro and hydropower, social infrastructure, solar electricity, health services, grid densification and policy development.
According to the press release, a feed-in law guarantees the right to feed into the main grid, with a predefined tariff, if and when the grid reaches the area of operation of an independent power producer, thereby providing an assured investment protection. International experience shows that such a law often has a better effect in enhancing the confidence and motivation of communities as well as private sector operators to invest in the power sector.
Alemayehu Tegenu Minister of Mines and Energy said that there are provisions in energy policy for involvement of the private sector and community in the development endeavors in the energy sector. He clarified that independent power producers are encouraged to generate electricity and either directly sell to consumers or feed the national grid, depending on their circumstance.
“The Electricity Agency of the Ministry shall constitute the core task force and take up the process of formulating the draft law in collaboration and consultation with GTZ through different forms,” said Alemayehu.

Sheik Al-amoudi’s upcoming biography

By Muluken Yewondwossen

A biography of Ethio-Saudi business tycoon Sheik Mohammed
Al-amoudi, titled ‘Who is Al-amoudi’ has been written by Ethio-American Mohamed Abdella. The Amharic version will be released next month for the Ethiopian New Year and two months later, an English version.
Mohamed Abdella, a tour and transport operator for the last 23 years in the US, told Capital that, he wrote the book to show the Ethiopian business society who live abroad how Al-amoudi is contributing to the country’s development by investing here.
“This is an educational biography since the man is a good role model through his contribution to eradicate poverty from Ethiopia. I have spent over 300,000 birr and twenty months of work for the realization of the book,” said Mohamed.
For compiling the biography the author traveled to Saudi Arabia, Yemen, and Wollo, the birthplace of Al-amoudi.
The 157 page book is illustrated with relevant photographs describing Al-amoudi’s family background, his personality, businesses in and out of Ethiopia, controversies around him, the public’s views on him and his contribution towards the new Ethiopian millennium.
The author explains that the biography is different from the movie about Al-amoudi released ten months ago. He claims that his book has more detail.
The money generated from sales of the book will go to the planned Homeless Shelter Project, which the author returned to Ethiopia to establish. The homeless shelter’s first phase will provide only sleeping areas on temporary basis for anyone living rough, regardless of age or gender. The plan indicates that in its second stage, it will start serving meals twice a day.
“The plan is to facilitate sleeping accommodation for 50 to 200 homeless individuals from different areas of the city. And for this some business people living in Addis Ababa have promised to assist in various ways, “ added Mohamed.
Mohamed Abdella was born in Jijiga town, eastern Ethiopia to an Ethiopian mother and a Yemeni father in 1972 and lived in Ethiopia until he was nineteen before living to the US.

Kurtu completes 30 mln. birr commercial center

By Kirubel Tadesse

Kurtu International, Pvt. Ltd. Co. inaugurated a commercial center, located in the Habte Giorgis area of the capital, at a cost of 30 million birr. This eight storey center that has more than ninety rooms is available for offices, shops and restaurants, was inaugurated last Saturday August 23, 2008.
The center enjoys a unique architectural talent that allows customers to view all the floors while standing in one. To create suitable working environment for the offices and also to keep customers focus in the first three floors, the building has two separate stairs - the left only takes to the last four floors while the right one takes to the first few floors. Among the ninety rooms available for rent [90% already leased] Commercial Bank of Ethiopia and Kaldi’s Coffee have already placed their banner on two of them.
Ahmed Abdulahi Kurtu, Managing Director of Kurtu, explained to Capital that the location of the commercial center was planned to use the location’s advantage which places the center in the middle of both Merkato and Piassa, the two largest markets of the nation.
Known for its import, export and commission agent’s activities, Kurtu International first entered the real estate market when it built a five million birr building in the Fori area of Alemgena town.
Even if the center already enjoys a modest parking area that can accommodate sixty cars at a time, Kurtu is striving to lease a nearby 400 square meter plot to build a four storey parking building, in order to offer space to its customers and general public.
Detailing investment plans that await to kick off, Ahmed told Capital that Kurtu International plans to build a soap factory and also a mineral factory [Tatek area].
The Kurtu family is among a rare local establishment that was stripped of major belongings by the Derg regime but saw a strong comeback. Ahmed lost his theatre building and was forced to flee to neighboring Djibouti in 1984. “We were successful in Djibouti that allowed us to come back to Ethiopia in1993, following the fall of the regime, and since then we brought all of our wealth to invest at home,” Ahmed briefly remembered how he came to establish one of the revived companies in the nation- to create more than 300 jobs.
Kurtu International-also known for sister company Unity Plastic Factory, has so far created hundreds of job opportunities through its construction projects.

Ethiopia signs petroleum agreement with Texas company

By Muluken Yewondwossen

The Ministry of Mines and Energy and Titan Resources Corporation, owned by U.S. billionaire Nelson Bunker Hunt, have signed on August 19, 2008, a multiple Petroleum Production Sharing Agreement for blocks located in the Amhara Regional state, centered in the Nile Basin, and northern Ogaden basin in Somali National Regional State.
According to the released document at the contract ceremony, Titan Resources Corporation has been selected among the bidders to explore and develop petroleum in 54,400 km square of Ogaden and 48,221 km square of the Abay Basin.
The main elements of the agreement indicate the initial term of exploration period to be 4 years, and may be extended twice each for two years. In addition, the development and production period shall be 25 years with a possible extension of 10 years. The company shall bear all costs necessary for petroleum exploration and development.
Alemayehu Tegenu, Minister of Mines and Energy and Victor Nersesov, the company’s treasurer, signed the Production Sharing Agreement.
Alemayehu said that the agreement is part of the result of the Ministry’s continued effort to promote the country’s geological potential in petroleum exploration. “We have achieved extensive coverage for exploration in most parts of the country.”
Titan and its operating partner, Capitan Energy, will form a Dubai based holding company, Petro Global International Holdings Limited and will incorporate a subsequent Dubai based entity, Ethiopian Exploration and Production Limited (EEP), to hold the assets awarded by the MME to Titan as well as other oil and gas assets acquired by the company in the Middle east and Africa.
“We feel very fortunate to have won the tenders and have the sole and exclusive right to conduct operations in both of these Basins; the reserves are limitless,” said Kerry Smith, chief executive officer of Capitan. “ The exploration activity in the Ogaden Basin compares to Permian Basin, Yemen and Saudi Arabia fifty years ago, the exploration activity is in its’ infancy compared with the more mature basins elsewhere in the world,” said Smith.
According to the agreement, Titan resources shall contribute to train Ethiopians in petroleum operations and allocate a budget for community development in the respective contract areas of the agreements.
“The type of agreement we have signed today is one form of an international model called Production Sharing Agreement (PSA) in which produced petroleum shall be shared between the company and the Ethiopian Government based on the details of the agreement.”
The company shall have duty and tax exemption rights as per the petroleum operation proclamation and the Ministry shall support and maintain conducive environment for the operation.
Ethiopian Exploration and Production Limited will be a Dubai based corporation formed by Titan Resources Corporation and Captain Energy Companies, LLC for the exploration and development of oil and gas assets in the Middle East and Africa. EEP will have offices in Dubai, Addis Ababa and the US.

Vehicle taxation period extended to avoid fraud

MoWUD to build one million houses: State Minister

Electoral Board accredits UDJ

CBE opens branches in Sudan, Somaliland

Cooperative associations to form bank

Indian Leather Industry sees Ethiopia as potential partner ‘Ethiopia holds the best leather’, says delegation

U.S. suspends African refugees’ family-reunification program

Mobile phones prices skyrocket

Agency reports foreign investment rising

Ethanol-blended fuel to hit market

EBG to sell Nile fuel trailers

Draft law envisages to protect investors in energy

Sheik Al-amoudi’s upcoming biography

Kurtu completes 30 mln. birr commercial center

Ethiopia signs petroleum agreement with Texas company

Vehicle taxation period extended to avoid fraud

MoWUD to build one million houses: State Minister

Electoral Board accredits UDJ

CBE opens branches in Sudan, Somaliland

Cooperative associations to form bank

Indian Leather Industry sees Ethiopia as potential partner ‘Ethiopia holds the best leather’, says delegation

U.S. suspends African refugees’ family-reunification program

Mobile phones prices skyrocket

Agency reports foreign investment rising

Ethanol-blended fuel to hit market

EBG to sell Nile fuel trailers

Draft law envisages to protect investors in energy

Sheik Al-amoudi’s upcoming biography

Kurtu completes 30 mln. birr commercial center

Ethiopia signs petroleum agreement with Texas company

Indian Leather Industry sees Ethiopia as potential partner
‘Ethiopia holds the best leather’, says delegation

Indian Leather Industry sees Ethiopia as potential partner
‘Ethiopia holds the best leather’, says delegation