Round-Up

Welcome to a comprehensive round up of the top news items that featured prominently in Capital during 2007 – an eventfual
year by any measure. It was a year of intense
political, social and economic activity – all of course
influenced by the main theme – the new Ethiopian Millennium.

January 7, 2007 (421)
Lion starts roaring
Lion International Bank officially launches operations after 3,700 shareholders approved a Memorandum of Understanding and selected board members on Saturday January 6, 2007.
The bank, with an authorized capital of ETB 400 mln and a paid up capital of ETB 108 mln, is to open its first branch at Lex Plaza building on Haile Gebre Sellassie Avenue.

January 14, 2007 (422)
Derg leadership receive life terms
The trial of former Ethiopian dictator, Mengistu Hailemariam and other top level officials from the Derg military junta come to an end with the court sentencing them all to life imprisonment.
Ethiopia’s former Marxist leader, who escaped an expected death sentence, was found guilty on various counts including abuse of power.

January 28, 2007(424)
EEPCO receives CSC building
The Ethiopian Civil Service College (ECSC) gives back the premises of its training centre in the kotebe area to former owners Ethiopian Electric Power Corporation after 12 years at the location.
EEPCo had its facility returned following a decision to reopen a training college for undergraduate mechanical engineering students.

February 4, 2007(425)
Castel uncorks winery plans
Mr. Pierre Castel, President of Groupe Castel of BGI – Ethiopia, meets and holds talks with Prime Minister Meles Zenawi, on January 31st 2007.
Mr. Castel was in Ethiopia on a short visit to confer with the PM and top government officials, including Tadesse Haile, State Minister of Trade and Industry, on the brewery giant’s plans to establish vinyards and a modern winery to produce first class wines for local and export markets.

February 11, 2007(426)
Drug makers banned from Ethiopian market
The Ethiopian Drug Administration and Control Authority (DACA) bans 67 producers of pharmaceuticals from exporting drugs to Ethiopia.
Capital sources disclose that 67 of 104 companies based in Kenya, China, Bangladesh, Pakistan and Egypt are excluded from the import list by the authority.

February 18, 2007(427)
ETC assets under study
Assets of the Ethiopian Telecommunications Corporation (ETC) are being collated to gauge the value of the corporation, a move which was said by some to pave the way for eventual privatization.
ETC’s net assets were estimated at 303 million dollars as of 30 June 2001. Since then the corporation has concluded major projects and acquisitions, which have substantially increased its market evaluation. Experts in the communications sector speculate that the corporation could be worth at least two billion dollars in its current state.

February 25, 2007(428)
Shadia hot foots to Djibouti after release
Shadia Nadi is released by the Federal Supreme Court on Wednesday, February 21 and immediately travels to Djibouti the same afternoon. She was imprisoned for years after being found guilty in a high level corruption scam which included former Prime Minister Tamrat Layne, who is serving an 18 year sentence.

March 4, 2007 (429)
Government seeks partners on major ventures
The Privatization and Public Enterprises Supervising Agency (PPESA), states it is looking for domestic and foreign, public and private partners for Coal Phosphate Fertilizer and Rubber Plantation and Processing projects.

March 11, 2007 (430)
ETC, ZTE strike $1.5 billion deal
The Ethiopian Telecommunications Corporation (ETC) signs a 1.5 billion dollar loan agreement with China’s ZTE to upgrade the national network.

March 25, 2007 (432)
DBE takes over export guarantee bond
NBE sets loan record
The Development Bank of Ethiopia (DBE) assumes the export loan guarantee scheme, formerly a responsability of the National Bank of Ethiopia (NBE).
According to a report presented to parliament, the bank’s six month performance led the government to transfer the scheme from the NBE to DBE. The former had been making preparations for the shifts since the decision was taken in February.

April 1, 2007 (433)
Massive malpractice among importers
1,091 importers (91.2 % of all registered ) and 292 freelance customs agents have committed commercial fraud at least once or twice, according to the records of the Customs Authority. The findings are presented at the first National Tax Conference held in Adama, Oromia on Wednesday, March 28, 2007.

April 8, 2007 (434)
FDI reaches 7% of GDP
According to the 2007 Economic Report on Africa, ‘Accelerating Africa’s Development Through Diversification’, launched in Addis Ababa, the nation’s FDI flow increased from 0.3% of GDP in 1994 to 7% in 2004.

April 15, 2007 (435)
NOC – Upwards in leaps and bounds
National Oil Ethiopia (NOC), a company which entered the industry with start up capital of 100 mln birr in November 2004, registered 2 bln birr annual turnover within two and half years.

April 22, 2007 (436)
AAWSA shortlists companies for borehole rehabilitation
The Addis Ababa Water and Sewerage Authority (AAWSA), shortlists seven private firms to rehabilitate 12 boreholes in Addis Ababa in a bid to alleviate severe water shortages in the city.

April 29, 2007 (437)
ETC, ZTE sign first project of $1.5 bln loan
The Ethiopian Telecommunications Corporation, as part of the $1.5 bln loan deal signed with the Chinese ZTE for the upgrading of the nation wide network, signs fiber transmission backbone, mobile network and wireless phone expansion projects.
Installation of the fiber optic cable would enable the country to enjoy international connections via Kenya in addition to the existing lines through the Sudan and Djibouti.

Several injured in AAU clash
Issues over an autopsy procedure that was already conducted on an Addis Ababa University student following his sudden death, sparks a protest demonstration by fellow students.
Mohamed Abdurahman, a third year physics student at the Science Faculty, died while giving a class presentation, at the Arat Kilo Campus.

May 6, 2007 (438)
Split ETC three ways: consultants
International consultants advise the government to restructure ETC by spliting it into three subsidiaries, possibly in the form of a holding company for network and fixed line operations and an internet service provider.

May 13, 2007 (439)
Doctors get better allowances
Medical doctors within the five Addis Ababa City hospitals finally manage to secure house allowances and additional benefits from the city.
Samson Tekeste, Health Service Team Leader with the Addis Ababa Health Bureau, tells Capital that all medical personnel would get 350 birr house provision allowances and other benefits are doubled.

May 20, 2007 (440)
Harar water tender opens amid complaints
The Harar Water and Sanitation project tender, on which five companies show interest, opens Thursday, May 17, 2007.
When the tender for distribution and installation works of Harar Water and Sanitation Project was launched, local companies file complaints to the Ministry of Water Resources, and appeal for a revision to the tender qualification that states only companies that have over 25 million dollars in annual turnover could participate on the tender.
The Ministry later revised the conditions and modestly reduced the requirement from 25 to 20 million dollars in annual turnover in the past five years.

May 27, 2007 (441)
Two more banks on menu: Buna, Gena
In the face of scarce foreign currency in Ethiopia’s banks, a successful fiscal performance and lucrative net profits in the banking industry during the year attracts new investors to the sector.
Buna and Gena banks, which are to be the 10th and 11th private banks in the country respectively, are expected to be established over the next months, and have already managed to raise over 75 million birr, the minimum initial capital required by the National Bank of Ethiopia (NBE).

June 3, 2007 (442)
Cadila launches drug production
A new 100 mln birr medicine factory, Cadila Pharmaceutical Limited, which operates in 43 countries, begins production in Akaki-Kaliti sub-city.
The factory is an Indo-Ethiopian joint venture between local firm ALMETA Impex and Indian parent company Cadila Pharmaceuticals, with the latter holding the majority of shares.

Ethiopia ranks low in peacefulness report
The Economist, on its Global Peace Index, places Norway top and Iraq last, with Ethiopia near the bottom among 121 countries.
The report lists Chad, Burundi, Angola, Ethiopia and Bangladesh at the bottom of the pile.

June 10, 2007(443)
Meles shows readiness for national consensus
Prime Minister Meles Zenawi highlights his government’s readiness to create national consensus by talking with the different groups in the country, including with the jailed Coalition for Unity and Democracy (CUD) leaders and others, at a June 9, 2007 press breifing.

June 17, 2007(444)
Electric bus manufacturer on track
RusAfro Trolley buses which are soon planned for manufacture in Ethiopia, are to arrive in Addis Ababa on August 18, 2007.
A factory is under construction in Amhara Region, Debre Markos on 40,000 Sq. mt

Hopes for release of CUD leaders
Following widespread rumors of the release of CUD leaders, family members of the detained and others close to the issue upon request of anonymity, tell Capital that the ongoing closed discussions between the government and the detained may conclude the next week, on Wednesday, June 27, 2007, with the release of the detainees.

June 24, 2007(445)
Ishac Diwan makes way for Kenichi Ohashi
The World Bank appoints Kenichi Ohashi as country director for Ethiopia and Sudan, replacing outgoing director, Ishac Diwan.

United Bank elect new board members
‘New directive won’t make much of a difference’, Critics
United Bank elects four board members, on Thursday, June 14, 2007, at a General Assembly held at the Hilton Hotel.

July 1, 2007(446)
African countries launch air safety agency
African countries launched a new agency on Thursday to improve air safety on the continent, long viewed as the most dangerous place in the world to fly.
The opening ceremony coincided with a new disaster; an Angolan Airlines Boeing 737 plane carrying 78 people crashed into a building upon landing in northern Angola, killing at least six people and seriously injuring others.
The African Civil Aviation Agency (ACAA), to be based in the Namibian capital Windhoek, will train pilots and co-ordinate air travel stretching from Cape Town to Cairo.
Africa has the world’s highest rate of air accidents, while accounting for just 4.5% of global air traffic.

July 8, 2007(447)
VIPs in land speculation corruption
Artistes, athletes and investors amongst suspects
In a study conducted on the Addis Ababa City’s Land Administration by the Federal Ethics and Anti-Corruption, notable personalities are found immersed in land related corruption, Ali Souleman, Commissioner of Federal Ethics and Anti-Corruption Commission says.
The Commissioner also discloses that the ones found highly engrossed in the crime were often the prosperous rather than the poor.
“Especially, personalities who are accorded much respect by the society are engaged in the illegal selling and buying of land.”

July 15, 2007(448)
ETC fires sixteen administrators
The Ethiopian Telecommunications Corporation (ETC) fires sixteen employees working in higher levels of administration, it found to be allegedly corrupt following results of its audit report. According to a statement ETC released to the press on July 13, 2007, the reason for firing the officials is related to the purchase of 625 Erickson and Nokia mobile apparatus and Lucent PBXs.

July 22, 2007(449)
CUD leaders released
“Their appeal is a sign of maturity and not a sign of weakness. The uncontested winner in this sorry saga is the rule of law,” Prime Minister Meles Zenawi.
After eighteen months of continuous effort of respected Ethiopian elders, the leaders of the Coalition for Unity and Democracy (CUD), were pardoned by the government of Ethiopia on Friday, July 20, 2007 and released from detention.

July 29, 2007(450)
France, Ethiopia set up joint commission
Mr. Bernard Kouchner, Minister of Foreign and European Affairs of the Republic of France, pays a working visit to Ethiopia on July 26th 2007. The minister presents to AU Chairperson Prof. Alpha Oumar Konare, a report on the efforts of France and the European Union to resolve the crisis in Darfur, and together looked for ways to strengthen the already close cooperation between France and the AU on this issue.

August 5, 2007(451)
ACTIS eyes manufacturing industries in Ethiopia
ACTIS, a private equity fund which provides venture capital for businesses, has expressed interest in investing in Ethiopia’s manufacturing industries. “We are financiers of businesses and working towards investing in manufacturing industries, real estate and infrastructure,” said Paul Kavuma of ACTIS at a press conference the company held in relation to the appointment of Teshome Kebede to the ACTIS East African Advisory Panel.

August 12, 2007 (452)
Legal hurdles over collaterals
Due to a stream of court injunctions banks claim they are unable to sell defaulter properties held as collateral and valued at 39.5 mln birr.
According to 223 sample cases selected for study by the Ethiopian Bankers Association (EBA), banks face challenges in exercising their rights of selling non-payers’ properties as per the law passed nine years ago. This is indicated at a day long symposium organized by EBA on Saturday 11 August, 2007, at the Addis Ababa Hilton.

August 19, 2007(453)
Bamboo to join export list
Following the boom in commercial and residential construction in the country that has led to an ever-increasing demand for bamboo finishing materials, a local investor launches a 50 million birr bamboo processing factory.
Mirga Wood Industry, is to build the factory on 3 hectares in Egere area, Addis Alem, 40kms west of Addis Ababa. The factory plans to start with products such as floor parquet, incense sticks and toothpicks.

August 26, 2007(454)
EIC profits over 68 mln birr before tax
The Ethiopian Insurance Corporation (EIC), has made profits of 68.7 million birr before taxation in the just ended fiscal year July 2007, it was disclosed in the corporation’s annual performance report.
EIC managed to collect the profit from operational works and investment incomes. Compared with the previous year’s profit, the latest record is higher by 5.7% and is 6.5% higher than the strategic goal envisaged for the budget year.

September 2, 2007(455)
Dire TV on Channel 9
The Dire Dawa Provisional Administrative Council is to launch a television channel named Dire TV, on Channel 9, the Administrative Council’s Information and Public Relations Head, Misrak Worku tells Capital.
“We have obtained a license from the Ethiopian Broadcasting Agency to start Dire TV on our own Channel 9. It will be the first regional TV in the country to have its own channel.
Around 4.7 million birr has been budgeted to execute the establishment of Dire TV.
“We have been sharing experiences in Addis Ababa from the regional TV transmitting stations,” Misrak states.

Government increases salaries
The Council of Ministers on Thursday, August 30, 2007 decides that the salary of civil servants should be increased. According to theMinister of Finance and Economic Development, Sufian Ahmed, the decision includes salary increments for government recruits as well as pensioner allowances. “A study has been conducted over the past months on the increment of salary for civil servants with the perspective of macroeconomic stability, government’s capacity and various other aspects. The Council of Ministers has accepted the findings of the study”, he said.

September 9, 2007 (456)
Ethio-American venture embarks on massive investment
Sunrise Industrial, Construction and Trading Service Ethiopia announces it is embarking on six projects worth a combined 15 billion ETB. The investment is a joint venture project between Ethiopian Tamene Getachew, Dawit Getachew and Berhane Abeba and two American partners and is to engage in various agri-businesses throughout Ethiopia, creating over 40,000 permanent and part-time jobs. Sunrise has secured over 75 percent of the land required for projects.
Commercial farming of fruits, vegetables, oilseeds, pulses, coffee and grains are among the six investment projects of the venture and valued at about 1.8 billion birr.

September 16, 2007 (457)
Luxembourg Industries scans agro-chemicals in Ethiopia
Israel’s Luxembourg Industries Ltd, one of the top ten chemical companies in the world, is to begin production of agro-chemicals in Ethiopia under its subsidiary, LABS (Luxemburg Africa Business).
“The company’s decision to enter the African market for the first time followed the booming flower sector that uses agro-chemicals and the current conducive investment atmosphere in Ethiopia,” according to Asefa Gebre-Michael, General Manager of LABS, which is a share company of three Ethiopian nationals, Luxembourg Industries Ltd and Mr.Joseph Eshed from Israel.

September 23, 2007(458)
Africa to finally join carbon trade
The International Center for Research and Agroforestry (ICRAF) annaunces its plan to kick off demonstration projects of Clean Development Mechanism (CDM) of the Kyoto Protocol that allows for a carbon market.
The center is to organize a consultative meeting with other partners in Addis Ababa. This was indicated by Dr Louis V. Verchot, Principal Ecologist of ICRAF in climate change and land degradation at Kenya School of Monetary Study in Nairobi, Kenya on Wednesday September 19, 2007.

September 30, 2007 (459)
Angela Merkel arrives this week
Dr. Angela Merkel, Chancellor of the Federal Republic of Germany is to arrive in Ethiopia for an official state visit on Monday October 1st 2007.
The Chancellor’s visit aims to strengthen the already close ties between Germany and Ethiopia and with Africa in general. In a related development, Commerzbank, Germany’s second largest financial institution, announces that it is to open a representative office in Ethiopia, on October 4th 2007.

October 7, 2007(460)
Dutch investor plans five-star hotel, real-estate development
Attracted by the current investment opportunities in Ethiopia, a Dutch national is to invest over 40 mln USD on a five star hotel and real-estate ventures in Addis Ababa.
Mr. Cvan Hal and his Ethiopian spouse, Mrs. Genet Abebe, decide to live in Ethiopia after wrapping up an 18 year business in The Netherlands. The couple have obtained 50,000 square meters in Bole area for real-estate purposes and expect to obtain another 4-5,000 sq mt in the same area for the five-star hotel.

Addis: permanent annual host of All-Africa Leather Fair
Tadesse Haile, State Minister of Trade and Industry, states that the Ethiopian leather industry has been improving by fourteen per cent annually over the last few years. Tadesse adds that formerly, unfinished products accounted for over ninety per cent of exports while currently over thirty-six per cent of leather products exported to European and other markets are finished.
In a press conference held on Thursday, October 11, 2007 at his office, the State Minister announces that his Ministry and the Ethiopian Leather Industries Association (ELIA), in collaboration with international development organizations are organizing, the All Africa Leather Fair (ALLF).

October 21, 2007(462)
Government lifts tax for car assemblers
After a series of negotiations initiated by Holland Car plc, government liftes the 10 per cent surtax and 2 per cent withholding tax levied on imported components.
In addition, a 30 per cent withholding tax on vehicles of less than 1.3 liters displacement is under consideration by the government for a substantial reduction.

Electric Buses to arrive soon
According to Getachew Eshetu, manager and owner of Rus Afro Trolley Bus plc, more than one thousand two hundred electric buses are needed to solve Addis Ababa‘s transportation problem.
These smokeless, noise and air pollution free electric buses can be built at a cost of 100, 000 birr in Ethiopia, cheap when compared to prices of 200, 000 USD in Europe and Latin American countries, Getachew tells Capital and adds that his company can modify old city buses to help make electric buses.

October 28 , 2007(463)
Joint venture to export salt to Ghana
Sudanese eyes four sectors for investment
A joint venture of Canadian and Ethiopian nationals is to start exporting salt from Ethiopia to Ghana and other countries with an investment capital of 90 mln birr.
The investment project of Mr.Yaw Akyeaw, a Canadian who resides in Ghana, and Mrs Wubayehu Libekulu targets to meet the high market demand of iodized salt in Ghana.
In addition, the investors are also planning to be engaged in the export of other goods such as leather products and fish. A Sudanese investor, Mohamed Osman Mohamed Mamoud, on airport plans to invest some 150 mln birr on four projects in Ethiopia.
The investor has taken investment licenses from the Ethiopian Investment Authority to open cement, cooking oil and packing materials factories. The investor also announces planns to engage in petroleum and petroleum products distribution. Including the Sudanese Government owned Nile Petroleum; the number of investment projects by Sudanese in Ethiopia in the last year alone reaches 64.

November 4 , 2007(464)
Ethiopian to off load Harare
Zimbabwe’s once dynamic economy is capsizing under four digit hyper inflation and is being exposed to secondary shocks as the nation becomes more isolated from the mainstream African and international arena.
In a move which serves to underscore the difficulties of operating to and from Zimbabwe and to follow upon British Airways’ (BA), which terminated its Harare route on Sunday October 2007, sources strongly confirm that Ethiopian Airlines is also to pull out from Harare as early as next week.
Ethiopian Airlines is the most important carrier flying into Harare and aviation industry experts predict that EAL’s departure will leave a deep void in the options available for flights into and out of Zimbabwe.

Global Energy plans 40,000 tons of bio-fuel annually in Ethiopia
Global Energy Pacific, a Nevada, United States based international company run by Israeli experts has begun building a bio-diesel factory in southern Ethiopia on Friday, November 2, 2007.
When the company’s project that has four components begins production, it will have the capacity of producing 250 tons of fuel each day from caster beans and jantropha, which easily grow in the Southern Nations, Nationalities and Peoples’ Region (SNNPR) of Ethiopia.

November 11, 2007(465)
Tim Clarke bids Addis ‘Salaam’
Tim Clarke, Head of the European Commission to Ethiopia concludes a three and half year term and is to depart to Dar es Salaam, Tanzania on December 1, 2007 where he will be assuming a similar position. Tim Clarke was appointed to Addis Ababa in June 2004. His spouse Anna has also been an active member of the expatriate community during their stay here and served as the Chairperson of the Ambassador’s Wives Club which holds regular charity bazaars.
Tim Clarke has had an eventful stay in Addis Ababa and has participated on numerous official public and private occasions and his witty charm will be missed.

November 18, 2007(466)
Israeli-Palestinian joint venture launched
A joint venture between Palestinian and Israeli friends is embarking on vegetable and flower farms in Ethiopia, which will create 600 job opportunities when production begins.
SMR Agriculture plc, which is jointly owned by Mr. Salah Abu-Musa and Mr. Maxim Hyoin, is currently building green houses on two hectares of land they have received in Debrezeit, Oromia Region.

November 25, 2007 (467)
NIB International Bank makes ETB 105.4 mln pre-tax
NIB International Bank S.C holds its 8th annual ordinary and 9th extraordinary general meetings of shareholders at the Sheraton Hotel on Saturday, November 24, 2007. Ato Lemma Haile Giorgis, chairman of the board of directors, states to shareholders that profits of NIB International Bank before and after tax stood at birr 105.4 million and 75.6 million, respectively. The Bank managed to generate total revenues of birr 207.5 million during the reported period, exhibiting an increase of 31.2 percent compared to the total revenue realized in the preceding year.

Investment bottleneck in Sendafa
Five star hotel, real-estate investments on 2 year hold
After obtaining a license to invest on a five star hotel and real-estate in Sendafa, Oromia Region two years ago, investors claim they are struggling to acquire the plot to launch their project. “By now, we would have completed over 50 per cent of our projects had we been given the plots we requested on time,” says Etsegenet Taye, Manager of Blue Nile Ethiopia Trading Share Company, who still believes that it is possible for the company to realize both projects within three years from now.

December 2, 2007(468)
Starbucks agrees to pay premium prices for Ethiopian coffees
A few months ago, Oxfam had accused US coffee chain Starbucks of denying Ethiopia more than 88 mln USD a year. Oxfam reported that Starbucks asked the National Coffee Association (NCA) to block the country’s bid to trademark three types of coffee bean in the US but Starbucks had denied initiating any kind of opposition to Ethiopian trademark application.
It was also reported that the Ethiopian government filed its applications to trademark its coffee bean names - Sidamo, Harar and Yirgacheffe and at that time Oxfam claimed that Starbucks flagged up the application to the NCA, which then filed its opposition at the US Patent and Trademark Office. After a months long dispute earlier this year, Starbucks has signed distribution, marketing and licensing agreements with Ethiopia and has agreed to assist in expanding consumer awareness of Ethiopia’s coffee brands- Sidamo, Harar/Harrar and Yirgacheffe.

December 9, 2007(469)
Rice visit highlights major African issues
United States Secretary of State, Condoleezza Rice, on Wednesday November 5, 2007 met with various African leaders in Addis Ababa and discussed on some of the current major issues of the continent.In her one-day visit, Secretary Rice discussed with the leaders bilaterally and multilaterally on issues such as resolving the conflict in the Great Lakes region, re-building Somalia, deploying peacekeepers in Darfur, HIV/AIDS, Malaria and Tuberculosis.

December 16, 2007(470)

Oromia to build TV station
The Oromia Regional State government has signed a contract agreement with EURO-tel, an Italian telecommunications company, to build a television station and transmitters, on Friday December 14, 2007 at the regional president’s office.
The regional government has set aside 61 mln ETB for the project, including for the studio and the purchase of transmitter equipment, station construction, electric power installation and road construction.

December 23 , 2007(471)
Nile Petroleum negotiates to acquire Shell stations
Oil giant Shell Ethiopia is negotiating with the new entrant in the country’s oil business, Nile Petroleum Company (NPC), selling its operations in Ethiopia. The state-owned Sudanese Nile Petroleum Company (NPC), which was registered in 2003 in Ethiopia, is negotiating to take over Shell’s gas stations and the main depot in the next few months.