Ethio-India
co-operation sweetens
By Abiy Demilew
Ethiopia and India, last Thursday, signed the largest ever loan
agreement by India, US $640 million, for the development of the
sugar industry in Ethiopia.
The agreement, which mainly targeted Tendaho and Fincha at the moment,
enables Ethiopia to boost its sugar industry in the next two years.
This was announced at the signing ceremony held at the Hilton Addis
Ababa.
 MORE
Court rules against NBE directive
By Groum Abate
The Federal First Instance Court ruled in favour of The United
Insurnace S.C, Eyesuswork Zafu and Workishet Bekele over the National
Bank of Ethiopia, with regards to the latter’s directive that
includes the sub article forbidding an individual from serving two
financial institutions and at the same time be a member of the Board
of Directors; at least 75 per cent of the Board of Directors must
have first degrees or above and one member of the Board of Directors
has to take a break for six years after serving for two terms of
three years. Only 1/3 of the outgoing board members can be re-elected
for the sake of continuity.
MORE
Gibe III launch imminent
By Tesfu Telahoun
Capable of generating 1870 megawatts when completed in seven years,
the Gibe III hydroelectric power project is to be officially launched
with a ceremony on January 24, 2007, at which a foundation stone
will be lain. Gibe III is situated on the Omo River, 500 kms south
of Addis Ababa, Welayta -Dawro Zone, SNNPS region. The project ranks
as the largest ever undertaking in the nation with an outlay of
ETB 16 bln ( $ 1.75 bln). Funding has been secured from international
lending agencies.
Dire Dawa allocates 40 hectares of land
for dry port
By Muluken Yewondwossen
The Dire Dawa City Administration has prepared forty hectares
of land for a dry port. The construction work of the dry port will
start in the middle of this year.
According to Bahir Ame, Diredawa City Administration Investment
Office general manager, the dry port will be built by the Ethiopian
and Djiboutian governments. According to him, a delegation of the
city administration’s high officials visited Djibouti and
the government of Djibouti raised the question of the dry port to
the city administration’s representative.
NBE suspends nine exporters for under invoicing
By Groum Abate
The National Bank of Ethiopia (NBE) has announced the suspension
of the licenses of nine exporters after it found evidence that they
are under invoicing the value of exported goods.
According to a notice posted on the state owned Addis Zemen, the
bank announced that the nine exporters have cost the country the
foreign currency it should have gained, after submitting under invoiced
documents to the National Bank of Ethiopia.
Birtukan says reconciliation with Hailu
Shawul unlikely
By Kirubel Tadesse
Birtukan Mideksa says that she is not optimist that ‘the
group led by Engineer Hailu Shawul’ will settle the dispute
it has with the rest of CUD’s executive members.
She told Capital that all the accusations and name calling thrown
at her and the rest of the executive members lead her to believe
that Engineer Hailu Shawl is no longer interested in working together
in one party.
MORE
Exporters rocked with stones
By Tewodros Kebkab
Oilseed exporters are facing a great challenge in the quality
of their export products. Suppliers allegedly mix stones with the
oilseeds after they roast the rocks to ensure likeness to oilseeds.
Elias Genete, Board Director of Ethiopian Peas, Oilseeds and Spices
Association (EPOSA) told Capital that roasted stones account for
roughly 25 kg out of every 100 kg. This costs exporters not only
in terms of higher price for a lesser quality product, but more
importantly, it can even drive them out of business, he said.
MORE
Adwa, the largest landmark in Africa, commemorates
Africa’s first victory venue
By Kirubel Tadesse
The Battle of Adwa, the first African victory over white colonialist,
is one of the major turning points of the black African struggles
for freedom and it’s exact location should be noted and kept
for generations to come, says Solomon Girma, who disclosed his ambitious
plan of building the largest landmark in Africa on the mountain
where the colonizers received their first defeat.
MORE
Dire Dawa allocates 140 hectares for industrial
village
By Muluken Yewondwossen
The Diredawa City Administration has set aside 140 hectares for
an industrial village that has easy access to electric power, water
supply, telephone services, and an all weather road.
According to Bahir Ame, General Manager of Dire Dawa City Administration
Investment Office, 50,000m2 of the 140 hectare wide industrial village
has already been given out to investors. He said that the village
is 5 km from Dire Dawa city in the Melkagebdu area and is divided
into agro processing, manufacturing and export processing sections.
MORE
Butane car in the pipeline
By Our Staff Reporter
Holland Car PLC, the first passenger car assembly plant in Ethiopia,
said preparations are underway to manufacture a butane automobile
in the near future.
Company General Manager, Eng.Tadesse Tessema told ENA on Friday
that the low cost butane-powered automobile will be available for
sale by May 2008.
MORE
ERA, Yencomad sign 403 mln br road contract
By Muluken Yewondwossen
The Mojo-Ajere-Ariti gravel road upgrading project was signed
between the Ethiopian Road Authority (ERA) and YENCOMAD on Thursday
January 10, 2008 at ERA headquarters. This represents the first
phase of the Mojo-Debreberhan asphalt road project.
ERA Director General, Zaid Woldegebriel and YENCOMAD managing director,
Yemiru Nega signed the agreement.
MORE
Babel protocol-satellite based institutional
intelligent information system new software develops
By Addis Mulugeta
Transport enterprises, police, security, banks and insurance, educational
institutions, and private and governmental institutions could do
their work without problems with the launch of Babel protocol-satellite
based institutions intelligent information system and ya-net Blue-human
resource management, the first of its kind in Ethiopia, introduced
by Black Star International Enterprise.
This new system operates by the use of four satellites launched
for military purposes.
Kenya in tension after negotiations fail,
Opposition calls for three days of rallies
The opposition party, Orange Democratic Movement, called Friday
for three days of rallies to protest Kenya’s disputed presidential
election, igniting fears of more deadly violence. Police said they
would not allow the demonstrations.
The calls for rallies in 28 locations across the East African nation
came after days of international mediation failed to break a deadlock
between President Mwai Kibaki and Raila Odinga, who came in second
after a tally foreign observers say was rigged.
Now, it seems, the opposition sees little recourse other than taking
to the streets.
Lion Bank changes leadership
By Groum Abate
Lion International Bank S.C (LIB) has appointed Woldegabriel Wodajo,
Vice President for Support, as acting President of the Bank as of
4th January 2008.
According to the press release the bank sent to Capital the board
of directors on its extraordinary meeting held on the same day,
terminated president Tsegaye Tetemke from his position.
Ethiopia extends deal for oil product purchase
from Sudan
By Groum Abate
A one-year benzine purchase agreement was signed between Ethiopia
and Sudan on Thursday after the two were on the verge of halting
petroleum product imports from Sudan.
If imports were halted Ethiopia may be forced to pay as much as
10 million dollars more every year to get its fuel from Gulf nations.
MORE
China signs deal for AU headquarters
By Groum Abate
China has signed a deal with the African Union on Friday to build
a 61 million dollar convention centre at the organization’s
headquarters in Addis Ababa.
The new premises will stand on the site of an infamous prison where
former dictator Mengistu Haile Mariam summarily executed by firing
squad 60 top officials of the late Emperor Haile Selassie.
MORE
Peace building initiatives underway
By Addis Mulugeta
Dr Negussu Legesse, EOC-DICAC Commissioner, stated that the Ethiopian
Orthodox Church - Development and Inter-Church Aid Commission (EOC-DICAC)
launched extensive training programs for religious leaders, clergies,
community elders, government staff members, women and youth representative
in different parts of the country, specifically in Harrar, Mizanteferi,
Gambella, Godere (Meti), Assosa, Abomosa, Shashemene (Kofele and
Kore), Sekota and Jimma on peace and capacity building.
PANE gives training to media
By Addis Mulugeta
Poverty Action Network of Civil Society in Ethiopia (PANE) organized
a two-day training on the Millennium Development Goals (MDGs) for
local print and electronic media on Thursday, January 9-10, 2007,
at Desalegn Hotel.
The training had covered Ethiopia and the MDGs status, challenges
and prospects of MDG-centered development planning and implementation,
the voice of citizens, promoting social accountability: the case
of citizens report card (CRC) surveys and the role of the media
and advocacy in attaining the MDGs.
MORE
East Africa leads African growth crew
By Kirubel Tadesse
East African countries lead other African regions by registering
the highest economic growth rate of the continent in 2007. Their
lead is expected to be maintained in 2008, the United Nations Economic
Commission for Africa disclosed on Thursday, January 10, 2008.
The booming flower industry in Kenya and the improved leather sector
in Ethiopia are some of the factors helping eastern African countries
to register the economic growth. “When you look at east Africa,
there are no major oil or mineral exporters in the region but the
performance of countries like Kenya, Ethiopia and Uganda has helped
the region to register the growth,”
Ethiopian Media Women’s Association
organizes seminar
By Addis Mulugeta
The Ethiopian Media Women’s Association (EMWA) has organized
with FredsKorpst (FK) a Norwegian development organization running
participant exchange programs with and among developing countries
in Africa, Asia and Latin America, a home coming seminar, and preparatory
courses on two separate occasions on January 10, 2008, at Axum Hotel.
MORE
|
Ethio-India
co-operation sweetens
By Abiy Demilew
Ethiopia and India, last Thursday, signed the largest ever loan
agreement by India, US $640 million, for the development of the
sugar industry in Ethiopia.
The agreement, which mainly targeted Tendaho and Fincha at the moment,
enables Ethiopia to boost its sugar industry in the next two years.
This was announced at the signing ceremony held at the Hilton Addis
Ababa.
Gurjit Singh, India’s Ambassador to Ethiopia, said the commitment
to provide a line of credit of up to US $ 640 million over a period
of five years to support the sugar industry in Ethiopia is the largest
ever line of credit that India has provided to any country so far.
“This year the commitment is to provide $122 million and further
amounts will be progressively disbursed over the next four years,”
the Ambassador said.
Girma Birru, Minister of Trade and Industry, told Capital that the
$640 million loan obtained from India will cover 39 per cent of
the total sugar development investment project expense. “The
remaining 61 per cent will be covered by local banks and the Sugar
Development Fund allocated by the government,” Girma affirmed
to Capital.
The loan covers significantly the gap in foreign currency demand,
according to Girma, in an exclusive interview with Capital.
“The Tendaho factory project, upon completion in two years,
will have the capacity of producing 6 million quintals of sugar
a year. The dam and sugarcane plantation is funded by the Ethiopian
government” Girma revealed.
According to Girma Birru, negotiations are underway to attach two
other sugar factories, Wonji Shoa and Metehara, with productivity
levels as high as Tendaho and Fincha. “Wonji Shoa, in its
current capacity produces 750,000 quintals a year and upon completion
of the expansion project, it will be able to produce 2.7 million
quintals a year.” Girma disclosed. Fincha will also produce
2.7 million quintals a year, rocketing from its current annual production
capacity of 950,000 quintals.
Currently the country produces 3 million quintals of sugar a year.
And according to Girma, in two years, this will be boosted to 15
million quintalsa, enabling the sector to join the export items
list.
Sufian Ahmed, Minister of Finance and Economic Development, told
Capital that the agreement is a giant move towards the development
of the sugar industry in Ethiopia and various sector areas connected
to it.
“This would enable the country to benefit in meeting the ever
increasing local demand of sugar, an employment opportunity for
about 80,000 people, transfer of technologies, foreign currency
earning from export and substituting 20 per cent of the country’s
fuel demand with ethanol gasoline” Sufian told Capital.
The fuel substitution, in its realization, will produce about 100
mw of electric power from the bi-products of sugar processing, according
to Sufian.
In an exclusive interview with Capital, Sufian Ahmed disclosed that
the country has already started benefiting from Indian investment
such as the Hageremariam Mega Power Station and Distribution, a
$65 million project. “60,000 people in 16 towns and villages
are benefiting from this project” Sufian told Capital.
“The other important thing is that the loan was given as a
soft loan which gives us space to pay back” says Girma, “this
is not only the biggest ever loan to be forwarded to a country by
the Indian government but also the biggest ever loan to be given
for a specific project” he added.
Gurjit Singh, India’s Ambassador to Ethiopia, also disclosed
to Capital that India’s investment in Ethiopia, besides the
line of credit, has now crossed $1 billion. “This agreement
is a turning point in Ethio-India bilateral relations which have
gained strong momentum” the Ambassador told Capital.
“The sugar Industry is important because India has the right
technology and successful experience ready to share”, said
Ambassador Gurjit, “this is one of our contributions to Ethiopia
as the nation is celebrating the new millennium” he added.
The agreement was signed in the attendance of senior government
officials, Indian business people, diplomats, and other dignitaries,
at the Hilton Addis’s Ballroom.
Court rules against NBE directive
By Groum Abate
The Federal First Instance Court ruled in favour of The United
Insurnace S.C, Eyesuswork Zafu and Workishet Bekele over the National
Bank of Ethiopia, with regards to the latter’s directive that
includes the sub article forbidding an individual from serving two
financial institutions and at the same time be a member of the Board
of Directors; at least 75 per cent of the Board of Directors must
have first degrees or above and one member of the Board of Directors
has to take a break for six years after serving for two terms of
three years. Only 1/3 of the outgoing board members can be re-elected
for the sake of continuity.
United Insurance S.C and the two individuals appealed to the court
suing that NBE does not have the mandate and the authority to issue
the directive concerning the three sub articles.
NBE on the other hand, defends the accusation saying that it does
have the mandate and responsibility entrusted by the government.
Israel Tekle, lawyer for the plaintiff, told Capital that the court
ruled in favour of his client, accepting their appeal that NBE does
not have the authority to include the sub-articles in the directive.
He further said that other banks could also benefit from the court
ruling.
In its appeal letter to the NBE written on May 31st, 2007, the United
Insurance Company stated that the former has no authority to pass
directives which contradict with the Commercial Code of the country.
“...not only had the National Bank of Ethiopia clearly exceeded
its legal authority but had also violated a fundamental principle
of law; hierarchy of laws, by attempting to change by a directive
laws legislated by a higher body, the Parliament,” states
the letter written to NBE and signed by Eyessuswork Zafu, Managing
Director of the United Insurance Company S.C.
It further states: “even if the NBE directive were to stand,
the United Insurance Company S.C., having been elected to the Board
of United Bank S.C only a year ago, still has two more years to
serve. If NBE’s decision to bar United Insurance from continuing
to serve the term it is elected for were to stand, the company stands
to lose substantial income it would have earned from being a director
(Director’s incentive payment from the net profits of the
bank). Such payment could well be in the region of 150,000 birr
per year...”
The reason indicated by the National Bank for introducing the new
directive is to avoid the conflict of interest that occurs when
one individual serves as a Board of Director of a bank and an insurance
company as well at the same time. In addition, it is intended to
make sure that these banks are run by well educated people with
management experience to protect the banks from bankruptcy.
Gibe III launch imminent
By Tesfu Telahoun
Capable of generating 1870 megawatts when completed in seven years,
the Gibe III hydroelectric power project is to be officially launched
with a ceremony on January 24, 2007, at which a foundation stone
will be lain. Gibe III is situated on the Omo River, 500 kms south
of Addis Ababa, Welayta -Dawro Zone, SNNPS region. The project ranks
as the largest ever undertaking in the nation with an outlay of
ETB 16 bln ( $ 1.75 bln). Funding has been secured from international
lending agencies. Construction work is to be carried out by Italian
firm Salini Constructtori S.A. which has considerable experience
of large projects in Ethiopia. It is to be recalled that Salini
conducted works on Gilgel Gibe I and II and is currently engaged
on Beles, another hydroelectric generation scheme.
Currently, the nation generates less than 900 MW of electric power,
making the addition of 1870 M.W. by the ten generators of Gilgel
Gibe III alone, a quantum leap in national power generation capacity.
It is envisioned that Gibe III will enable Ethiopia to export power
to neighboring states.
It is also anticipated that the massive earthworks required for
the building of the dam will contribute to the development of the
immediate surroundings.
Dire Dawa allocates 40 hectares
of land for dry port
By Muluken Yewondwossen
The Dire Dawa City Administration has prepared forty hectares
of land for a dry port. The construction work of the dry port will
start in the middle of this year.
According to Bahir Ame, Diredawa City Administration Investment
Office general manager, the dry port will be built by the Ethiopian
and Djiboutian governments. According to him, a delegation of the
city administration’s high officials visited Djibouti and
the government of Djibouti raised the question of the dry port to
the city administration’s representative.
Currently, the Djibouti port does not have enough space for incoming
containers so the Dire Dawa dry port provides for more room, easing
the transportation of goods into central Ethiopia and other eastern
parts.
“Dire Dawa is the nearest Ethiopian city to a port. It is
313 km from the port of Djibouti and thus the best place for a dry
port than other areas,” Bahir told Capital.
On current conditions ninety per cent of imported trade materials
wait fifteen days at the port of Djibouti. Ethiopia pays twenty
USD per day for every ton of stored goods to the Djiboutian government.
The dry port will minimize Ethiopia’s foreign currency expenses
for storage at the port of Djibouti.
The Ethiopian government is currently constructing a dry port at
Mojo and Mile on a plot of 140 hectares for 300 million ETB. It
also has plans to build other dry ports in northern and southern
Ethiopia. These projects are carried out by the Ministry of Trade
and Industry and the Ministry of Transport and Communication.
NBE suspends nine exporters
for under invoicing
By Groum Abate
The National Bank of Ethiopia (NBE) has announced the suspension
of the licenses of nine exporters after it found evidence that they
are under invoicing the value of exported goods.
According to a notice posted on the state owned Addis Zemen, the
bank announced that the nine exporters have cost the country the
foreign currency it should have gained, after submitting under invoiced
documents to the National Bank of Ethiopia.
Abiba Abdi Kelefo, Abrha Hadgo W/Ruphael, Ibrahim Zeyid Kasse, Mahari
Redial Gebre, Yeshi Mamo Beyene, Muhammud Gaz Klinil, Guled Mohammed
Umer, Adil Ali Abdela, and Abraham G/Igziabher Reda are listed as
defaulters presenting to the bank under invoiced documents especially
on oil seeds, live animals, and cereals that were exported.
The National Bank in proclamation no. FXD/07/1998, Article 5 should
inspect pre-shipment prices and advise the public on how to notify
the bank about the price.
With the largest livestock population in Africa, Ethiopia has an
ample supply base for the export of live animals and meat. Its livestock
resources are estimated at 27 million cattle, 24 million sheep and
18 million goats.
Ethiopia’s main exports of live animals and meat products
include low land sheep and goats; fresh and chilled lamb and mutton
carcasses among others.
Furthermore Ethiopian oilseeds and pulses are known for their flavour
and nutritional value as they are mostly produced organically. For
instance, Ethiopian white sesame seed is used as a reference for
grading in international markets.
Birtukan says reconciliation
with Hailu Shawul unlikely
By Kirubel Tadesse
Birtukan Mideksa says that she is not optimist that ‘the
group led by Engineer Hailu Shawul’ will settle the dispute
it has with the rest of CUD’s executive members.
She told Capital that all the accusations and name calling thrown
at her and the rest of the executive members lead her to believe
that Engineer Hailu Shawl is no longer interested in working together
in one party.
“Forgetting the fact that the struggle is with EPRDF, they
are fighting us with all they have. It is really sad to see that
people who claim to fight for democracy could not even abide by
the bylaws of their own party,” commented Birtukan.
“Our party directive clearly explains that any member should
only be suspended from the party by two thirds vote of the executive
committee, but what happened now is Engineer Hailu alone suspended
five other executive members with out any ground of authority,”
explained Birtukan, “the decision of appointing another person
to work as the party president is unacceptable. It is the first
vice president who can assume the responsibility in whatever case
if the president is not up to the job.” She added that if
it is possible, she wishes to remain together and continue the struggle
as one party.
In an exclusive interview Birtukan held with Capital, she commented
that it was Lidetu Ayalew (MP) and the few other people who support
him for personal interest who laid the grounds for the National
Electoral Board to deny the certificate for the formation of CUD.
“All of the leaders of EUDP-Medhin, including its chairman,
signed supporting the party’s unity with CUD but what stopped
the process was the letter sent by one individual who could not
stand one strong party,” added Birtukan.
When asked about the uncertain fate of the CUD, Birtukan said, “as
we have seen in many parts of the world, those with the goal of
equality and justice will prevail in the end. I have always believed
that; and this common belief will keep us in a peaceful political
struggle which will create a democratic system through the same
peaceful means we have been participating in.”
Birtukan added that unity with parliamentarians of the CUD, led
by Temesgen Zewde (MP) is under way with continuous meetings of
six representatives chosen from each group. Full interview on page
30.
Exporters rocked with stones
By Tewodros Kebkab
Oilseed exporters are facing a great challenge in the quality
of their export products. Suppliers allegedly mix stones with the
oilseeds after they roast the rocks to ensure likeness to oilseeds.
Elias Genete, Board Director of Ethiopian Peas, Oilseeds and Spices
Association (EPOSA) told Capital that roasted stones account for
roughly 25 kg out of every 100 kg. This costs exporters not only
in terms of higher price for a lesser quality product, but more
importantly, it can even drive them out of business, he said.
Another problem exporters face in regards to quality oilseed is
a supply shortage say exporters, as the market is not organized
and does not have channels to collect the products from the farmers
to prepare them for export.
The exporters, voicing their concerns, believe that government support
is needed in various areas of the sector. Ato Elias further said
that an inspection and quality control mechanism shall be established
shortly, especially with regards to surplus pocket areas, as done
with other export goods.
Meanwhile, this challenge is discouraging new exporters from entering
the market. Speaking to Capital, Elias said that his association
hopes that the government will come up with a new tackling mechanism,
which could be a commodities exchange.
A commodities exchange is an exchange whereby various commodities
and derivative products are traded. Most commodity-markets across
the world trade in agricultural products and other raw materials
(like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products,
pork bellies, oil, metals, etc.) and contracts based on them. These
contracts can include spot prices, forwards, futures and options
on futures. Other sophisticated products may include interest rates,
environmental instruments, swaps, or ocean freight contracts. Steel
contracts started to be traded for the first time on the London
Metal Exchange in 2007.
It is to be recalled that in recognition of the efforts of major
exporters and their achievements in the last year, government awarded
three oilseed exporters: Ali Abdo Import Export PLC, Ambasel General
Trading and Mame Trading PLC. The three accounted for 20% of the
country’s oilseed exports in the last Ethiopian fiscal year.
Adwa, the largest landmark
in Africa, commemorates Africa’s first victory venue
By Kirubel Tadesse
The Battle of Adwa, the first African victory over white colonialist,
is one of the major turning points of the black African struggles
for freedom and it’s exact location should be noted and kept
for generations to come, says Solomon Girma, who disclosed his ambitious
plan of building the largest landmark in Africa on the mountain
where the colonizers received their first defeat.
In a press conference held on Friday, January 11, 2008, Solomon
told journalists that his project, Adwa Land mark, will build seven
letters which will be constructed in a 1050 square meter area. He
explained that each letter, three Amharic and four English, will
be 100 square meters in size with angled iron structures.
“The Adwa Land mark, which will be three floors high, will
be illuminated at night. It will be the largest landmark after the
Hollywood sign found in Los Angels, USA,” explained Solomon.
Solomon added that the project has struck a deal with Tigray Culture
and Tourism Commission to construct the landmark. “Understanding
the historical significance of the project, the Construction Design
Share Company signed a deal with us to work for free, saving us
an estimated 200,000 ETB,” said Solomon. The total cost of
the project is estimated at 20 million ETB.
LikeTiguhane Asitatke Abate, Chairman of the Ethiopian Patriots
Association, at the press conference stated that the Adwa victory
has great value to Ethiopia and other black nations who saw a possibility
of regaining their freedom. “The1888 sacrifice our great grandfathers
paid to secure our freedom shall be introduced to the world by this
land mark alongside the regular yearly celebrations,” stated
LikeTiguhane Asitatke.
Dire Dawa allocates 140 hectares
for industrial village
By Muluken Yewondwossen
The Diredawa City Administration has set aside 140 hectares for
an industrial village that has easy access to electric power, water
supply, telephone services, and an all weather road.
According to Bahir Ame, General Manager of Dire Dawa City Administration
Investment Office, 50,000m2 of the 140 hectare wide industrial village
has already been given out to investors. He said that the village
is 5 km from Dire Dawa city in the Melkagebdu area and is divided
into agro processing, manufacturing and export processing sections.
General Manager of the City Administration Investment Office said
that the allocated investment land has a price tag of 9.78 ETB per
meter square.
Bahir also stated that more investors are being drawn to the city
administration, especially in the cement and hotel sectors. Accordingly,
Ture Cement Factory is under construction and will be completed
in eight months. It will produce 1500-2000 tons of cement daily.
The city administration has allocated 22.1 hectares of land for
the project. In what is expected to be the second largest cement
factory in Ethiopia after Derba Midroc, the construction work of
Falas Petroleum, a Saudi Arabian company, will be started within
few months with a budget of 6.7 bln ETB. The city administration
has allocated 150,000 m2 for the investment. Upon going operational,
the factory is expected to produce 33 thousand quintals of cement
a day. Currently the company is carrying out soil studies and negotiating
to buy machinery. In addition, Ascon Cement, based in Egypt, has
obtained a license to produce cement, on December 2007 from the
City Administration. The 400 million ETB project has already been
handed 20 hectares of land and it is expected to produce more than
2 thousand tons of cement a day.
Bahir said that the city needs four star hotels because there are
not any big standardized hotels in the city for tourists and other
guests. However, he commented, things might change for the better
as currently different investors are participating in hotel investment.
“An Indian investor has built a four star hotel for 20 mln
ETB and it will be inaugurated in two months. In addition, Djiboutian
president, Ismael Omar Guelleh has built a guest house worth 45
million ETB. With 60 standardized bedrooms, this guest house will
start operations with in a short period of time,” he said.
“Currently Dire Dawa has a huge tourism flow that hotel investment
is quite advantageous for investors,” Bahir concluded.
In the current half of the Ethiopian fiscal year, 98 projects were
licensed for different investments valued at 429.4 mln ETB; this
is a 225 mln ETB increase from records held for same period last
year.
Butane car in the pipeline
By Our Staff Reporter
Holland Car PLC, the first passenger car assembly plant in Ethiopia,
said preparations are underway to manufacture a butane automobile
in the near future.
Company General Manager, Eng.Tadesse Tessema told ENA on Friday
that the low cost butane-powered automobile will be available for
sale by May 2008.
The company has already assembled about 100 cars with model names
called “Docc” and “Abay”, whose consumptions
is 16-km per liter. The butane car, however, runs 32-km per liter.
The second model assembled by the company, Abay, has got high demand
in the market as its design and horsepower is comparable with cars
imported with hard currency at high cost.
Eng. Tadesse said the company is being expanded at a cost of eight
million birr with a view to meeting the high market demand for the
cars.
Furthermore, the company has reached agreement with a foreign company
to assemble pickup trucks as there is high demand for them due to
the flourishing construction sector in the country, he said.
Holland Car PLC was established in 2005. It is a joint venture between
Ethiopian company Ethio-Holland PLC in Addis Ababa (50%) and the
Dutch Company Trento Engineering BV in Sittard (50%).
This cooperation is combining the expertise of production equipment
and processes (Trento) and the knowledge of the local market (Ethio-Holland).
The production-site of 20,000 square meters is situated in Modjo,
about 65 km south of Addis Ababa.
The aim of Holland Car is to assemble cars in Ethiopia for local
distribution and export. It will focus on the lower market-segment
by competitive pricing to enable a relative high production-volume.
ERA, Yencomad sign 403 mln
br road contract
By Muluken Yewondwossen
The Mojo-Ajere-Ariti gravel road upgrading project was signed
between the Ethiopian Road Authority (ERA) and YENCOMAD on Thursday
January 10, 2008 at ERA headquarters. This represents the first
phase of the Mojo-Debreberhan asphalt road project.
ERA Director General, Zaid Woldegebriel and YENCOMAD managing director,
Yemiru Nega signed the agreement.
The 65km upgrading work will start from Mojo, a town located 70
Km from Addis Ababa, and has been allocated a budget of more than
403.3 mln ETB, secured from the Ethiopian government. The road will
have 14 meters of width in towns and seven meters in rural areas
with 1.5 meter shoulders. The project contract includes the construction
work of bridges, drainage and other related works.
Associate Engineers Consultants (AEC) and Core, a local consultant
company, will carry out the supervision and consulting work together.
The 65 km asphalt road construction is expected to be completed
in two and half years time. The asphalt will add value to farmers
who will have better market access. The area is known for teff production.
At the signing ceremony, Zaid stated that the construction of this
asphalt road will play a big role to connect Debreberhan with Awassa,
Harar and Diredawa, minimizing transportation costs.
Yemiru on his part said that his company would complete its work
on time.
In related news, the Arerti-Gobensa 36.4 km gravel road upgrading
to asphalt project is open to bid. It makes up the second phase
project of Mojo-Debreberhan while the last phase of the upgrading
project is currently under design.
Babel protocol-satellite based
institutional intelligent information system new software develops
By Addis Mulugeta
Transport enterprises, police, security, banks and insurance, educational
institutions, and private and governmental institutions could do
their work without problems with the launch of Babel protocol-satellite
based institutions intelligent information system and ya-net Blue-human
resource management, the first of its kind in Ethiopia, introduced
by Black Star International Enterprise.
This new system operates by the use of four satellites launched
for military purposes. This new software indicates where the user
is exactly located and controls every movement, including the time.
To find simple information, one should address at least four satellites
of distinct function. It indicates latitude, time, altitude, longitude,
and the GPS receiver collects information from all four satellites
and delivers information by the use of this new software system.
General Manager of Black Star International Enterprise, Zerubabel
Kibeb, stated that this new software is accurate especially, as
an indication of a given location, time and information within a
fraction of seconds. It uses the GPS satellite system and is important
for transport companies and other private and governmental organizations.
Car rental companies could also possibly prevent and control their
car from being stolen as one can follow the speed of the car. This
software can interface with your mobile phones. The police, banks
and insurance can use this new software system to secure management
systems. The Ethiopian Defense Ministry for its internal and external
management and control systems now uses this system.
There is also ya-net Blue human resource management for banks and
insurances, educational institutions, government institutions and
private enterprises. This system gives detailed information on personal
profiles, reports, company information, governmental or private
department branches, head-quarter, human resource development, number
of employees, job titles and establishment of the company. The main
objective of this system is to manage employment.
This new technology cost the company approximately 2 million birr
and the software will be on sale for 100,000 birr.
Kenya in tension after negotiations
fail,
Opposition calls for three days of rallies
The opposition party, Orange Democratic Movement, called Friday
for three days of rallies to protest Kenya’s disputed presidential
election, igniting fears of more deadly violence. Police said they
would not allow the demonstrations.
The calls for rallies in 28 locations across the East African nation
came after days of international mediation failed to break a deadlock
between President Mwai Kibaki and Raila Odinga, who came in second
after a tally foreign observers say was rigged.
Now, it seems, the opposition sees little recourse other than taking
to the streets.
“Kenyans are entitled to protest peacefully at this blatant
violation of their fundamental rights,” said Anyang Nyongo,
secretary-general of Odinga’s Orange Democratic Movement.
Rallies were planned for Wednesday, Thursday and Friday.
Nyongo also called for economic sanctions, saying it would be irresponsible
for international donors to “trust this government with a
single cent which is going to be used to oppress the people and
to perfect the art of stealing both the vote and our national resources.”
Police, citing a government ban on rallies in the wake of the Dec.
27 election, said the protests would not be allowed. Police and
opposition supporters have clashed in previous attempts to demonstrate,
with security forces firing tear gas, water cannons and live bullets
over people’s heads.
According to reports, more than 500 people have died in protests
and ethnic violence since the election.
“We should reject violence and calls for demonstrations that
do not improve our livelihoods but sustain political mischief of
a few people,” government spokesman Alfred Mutua said.
Human rights activists who have denounced the police for alleged
unjustified killings and excessive force said Friday they had information
some officers were plotting to harm them. Police spokesman Eric
Kiraithe said the charges were “lies.”
Diplomatic moves to diffuse the crisis quieted Friday with the State
Department announcing the departure of leading Africa diplomat Jendayi
Frazer. State Department spokesman Tom Casey told reporters the
United States would continue to work toward a solution. He said
Washington hoped any demonstrations would be peaceful and that the
leaders would resolve their differences.
Former U.N. Secretary-General Kofi Annan has agreed to take over
mediation but is not expected in Nairobi before Tuesday, his office
in Geneva said. The chairman of the African Union, Ghanian President
John Kufuor, left Thursday after failing to persuade Kibaki and
Odinga to agree to meet.
Odinga has said he would meet Kibaki only in the presence of an
international mediator. Kibaki wants direct talks.
The European Union, the United States and Britain also have been
pressing for Kibaki and Odinga to meet.
Lion Bank changes leadership
By Groum Abate
Lion International Bank S.C (LIB) has appointed Woldegabriel Wodajo,
Vice President for Support, as acting President of the Bank as of
4th January 2008.
According to the press release the bank sent to Capital the board
of directors on its extraordinary meeting held on the same day,
terminated president Tsegaye Tetemke from his position.
The bank states that its decision has no relation what so ever with
financial irregularities or allegations of any malpractices.
Woldegabriel has an MBA from the Open University of UK and got his
BA in Accounting from the Addis Ababa University.
He has over twenty eight years of experience, and has held various
positions including VP- for Credit and Risk Management, and VP-for
the Human Resource Development.
The outgoing president Tsegaye Tetemke has a Masters in Economic
Policy Management, and BA in Accounting from Addis Ababa University.
He has over twenty eight years of work experience in the Commercial
Bank of Ethiopia in various capacities including as VP-Credit and
Risk Management, and VP-Control of the Bank.
With over 5,500 shareholders, LIB's paid up capital, at its establishment,
reached 130 million birr while its subscribed capital is over birr
432 million. At present, it's paid up capital tops 162 million birr.
According to reports Gebre Michael Tamrat, Gebre Igziabher Woldu
and Kefyalew Zegeye have also been suspended from their positions.
Gebre Michael Tamrat has been replaced by Getachew Kiros and Kefyalew
Zegeye has been replaced by Roman Tesfaye.
Lion International Bank (LIB) is a privately owned Share Company,
established on October 2, 2006 under Proclamation No. 84/94 and
the commercial code of the country, and officially inaugurated for
public services on January 6, 2007. The bank opened 16 branches
during its first year.
Ethiopia extends deal for
oil product purchase from Sudan
By Groum Abate
A one-year benzine purchase agreement was signed between Ethiopia
and Sudan on Thursday after the two were on the verge of halting
petroleum product imports from Sudan.
If imports were halted Ethiopia may be forced to pay as much as
10 million dollars more every year to get its fuel from Gulf nations.
Ethiopia was going to be compelled to cease importing petroleum
products from neighbouring Sudan, an arrangement that has saved
Ethiopia millions over the last five years.
The state-owned Sudan Petroleum Corporation (SPC) – which
supplies Ethiopia with gasoline and liquid petroleum, among other
oil products – has been reported it would stop allowing Ethiopia
to purchase on credit. Furthermore, the US Department of Treasury
in May 2007 placed the SPC on its sanctions list over Sudanese government
support for militia groups terrorizing the Darfur region, putting
diplomatic pressure on Ethiopia to cease its business relationship
with the company.
Up until May 2007, when the US imposed sanctions on SPC, Ethiopia
was importing petroleum products from the Sudan through a Letter
of Credit (L.C) facilitated by CBE and Citibank. With Citibank now
restricted from dealing with SPC, the Sudanese oil company strictly
requires Cash Against Document (CAD) for all procurement of the
petroleum products that Ethiopia purchases from the Sudan.
But now, the purchase contract extends by a year an earlier procurement
agreement signed five years ago with the terms to be kept intact,
the Ministry of Mines and Energy announced.
Mines and Energy Minister Alemayehu Tegenu had held consultation
with his Sudanese counterpart Dr. Awad Ahmed Al-jaz of Sudan, who
signed on the minute of their deliberation to provide for the said
purchases extension agreement.
The Ethiopian Petroleum
Enterprise has been responsible for making benzine purchases.
Enterprise General Manager and Sudan Petroleum Corporation Director
General inked the purchase extension contract.
According to data available from the Ethiopian Customs Authority,
in fiscal year 2005/06 alone, Ethiopia brought in two billion litres
of petroleum products, spending about 860.5 million dollars.
China signs deal for AU
headquarters
By Groum Abate
China has signed a deal with the African Union on Friday to build
a 61 million dollar convention centre at the organization’s
headquarters in Addis Ababa.
The new premises will stand on the site of an infamous prison where
former dictator Mengistu Haile Mariam summarily executed by firing
squad 60 top officials of the late Emperor Haile Selassie.
The prison — “Almebekagne”, has been moved to
Kalite, 25 km out of the capital.
Chinese Foreign Minister Yang Jiechi said Beijing would fund the
project, due to be finished by 2011, and was committed to helping
the continent develop itself.
“China believes integration is in the best interest of African
countries,” Yang told reporters during a visit. “Africa
has every right to develop its resources to become a far more prosperous
continent and China is committed to help.”
Addis Ababa City Administration gave the land in 2004, but the AU
did not have the funds to develop it.
The new construction will give the AU more office and meeting space,
which are in great need, the AU said.
Yang, who is visiting South Africa, Democratic Republic of Congo,
Burundi and Ethiopia, is the latest of several senior Chinese officials
to come to Africa as Beijing taps the continent’s natural
resources to fuel its booming economy.
China, the world’s fourth-largest economy and second-largest
energy user, has extended billions in oil-backed loans and other
forms of credit to African nations, with few strings attached, unlike
financing from Western banks and international agencies.
Its growing presence has rattled Western nations that had previously
dominated trade on the world’s poorest continent.
China has long provided aid to Africa for projects such as roads,
hospitals and ports.
Peace building initiatives
underway
By Addis Mulugeta
Dr Negussu Legesse, EOC-DICAC Commissioner, stated that the Ethiopian
Orthodox Church - Development and Inter-Church Aid Commission (EOC-DICAC)
launched extensive training programs for religious leaders, clergies,
community elders, government staff members, women and youth representative
in different parts of the country, specifically in Harrar, Mizanteferi,
Gambella, Godere (Meti), Assosa, Abomosa, Shashemene (Kofele and
Kore), Sekota and Jimma on peace and capacity building.
He said that the inter-ethnic and inter-religious conflicts that
occurred in certain areas of the country necessitated the church
to strategically focus on promoting mutual understanding and respect
among religions and prevalence of peace, justice and unity throughout
the country.
“Without peace, there can be no development and peace includes
protection from war and violence, preservation of freedom and realization
of social justice”. This is the motto of the Ethiopian Orthodox
Church–Development and Inter Church Aid Commission, which
has the potential to promote peace and strengthen spiritual and
traditional peace building efforts through its development wings,
Dr Negussu said.
Peace Building Department Head, Yilikal Shiferaw, explained that
in Kore town, which is 30 kilometers from Shashemene, a conflict
between Muslims and Christians caused human and material loss and
people were displaced from their areas. Currently however, the conflict
has been resolved through the unreserved efforts of the local community,
government officials, religious leaders and EOC- DICAC.
Yilikal added that EOC-DICAC, through the close assistance of Norwegian
Church Aid (NIA), has visited the affected areas and conducted workshop
comprising of religious leaders, community elders, government representatives,
youth, women and other Civil Service Organizations (CSOs) and more
than 70 people attended at Shashemene. He said that EOC-DICAC established
two peace and development forums which are based in Kore and include
Kofele and Shashemene to resolve conflicts at local level.
PANE gives training to media
By Addis Mulugeta
Poverty Action Network of Civil Society in Ethiopia (PANE) organized
a two-day training on the Millennium Development Goals (MDGs) for
local print and electronic media on Thursday, January 9-10, 2007,
at Desalegn Hotel.
The training had covered Ethiopia and the MDGs status, challenges
and prospects of MDG-centered development planning and implementation,
the voice of citizens, promoting social accountability: the case
of citizens report card (CRC) surveys and the role of the media
and advocacy in attaining the MDGs.
The main objective of the workshop was to initiate the media to
work closely on development of the country and policy framework
of MDGs with the media and the civil society organizations being
forerunners to eradication of poverty and development of the country.
PANE Executive Director Eshetu Bekele, stated that the major MDGs
are eliminating gender disparity in primary and secondary education,
reducing by two thirds the mortality rate among children under five,
reducing by three quarters the maternal mortality ratio, reversing
the spread of HIV/AIDS, malaria and other diseases, ensuring environmental
sustainability, reducing by half the proportion of people without
sustainable access to safe drinking water and developing further
global partnership for development.
He explained that the Poverty Reduction Strategy Paper (PRSP) is
a national program for poverty reduction and basis for poor countries
to access the debt relief scheme set up to help them get relieved
from their debts. He also explained the challenges in the process
of achieving the MDGs in Ethiopia include the lack of appropriate
participation framework, lack of institutional arrangement for the
participation of different categories of people, the language used
for the documentation in the process, lack of clear and common monetary
and evaluation system framework, growth volatility, weak resource
mobilization and implementation capacity. He concluded that the
media have a tremendous potential to facilitate and reduce such
problems.
East Africa leads African
growth crew
By Kirubel Tadesse
East African countries lead other African regions by registering
the highest economic growth rate of the continent in 2007. Their
lead is expected to be maintained in 2008, the United Nations Economic
Commission for Africa disclosed on Thursday, January 10, 2008.
The booming flower industry in Kenya and the improved leather sector
in Ethiopia are some of the factors helping eastern African countries
to register the economic growth. “When you look at east Africa,
there are no major oil or mineral exporters in the region but the
performance of countries like Kenya, Ethiopia and Uganda has helped
the region to register the growth,” explained Professor Leonce
Ndikumana of UN/ECA.
Africa will sustain an economic growth rate of 6.2 per cent in 2008,
despite the slowdown of the world economy, a United Nations report
added. The continent’s steady economic performance, which
saw growth rates reach 5.7 per cent in 2006 and 5.8 per cent in
2007, contrasts sharply to global figures, which are forecasted
at just 3.4 per cent down from 3.7 last year, said the report which
was released here in Addis Ababa.
In its ‘World Economic Situation and Prospects 2008’,
the UN attributes the impressive robust growth in Africa to largely
buoyant domestic demand, booming mining and gas production and a
recovery from a long period of economic decline in a number of countries,
especially those emerging from war and civil strife.
“Any sharp slowdown in the global economy will reduce demand
for exports and provoke a steep decline in commodity prices, thus
dampening Africa’s growth prospects.
“In addition, sudden private capital flow reversals in some
countries, as well as rising oil prices and lower-than-expected
aid inflows, might constrain both public and private investment
and therefore pose serious risks for the current economic revival,”
says the report.
Ndikumana, ECA’s chief of Macroeconomic Analysis Section,
said that Africa ‘s growth had not been accompanied by employment
creation, while a major concern was that people’s incomes
were not growing fast enough to meet the high prices of consumer
goods.
He also explained that growth in construction, manufacturing and
services had also boosted overall economic activity in agriculture-dominated
countries such as Burkina Faso, Ethiopia, Kenya and Tanzania.
South Africa and Nigeria, which achieved smaller growth rates last
year, improved this year with South Africa getting 4.8 per cent
through expansion of its construction and mining sector, and Nigeria
achieving slight GDP growth from its rapidly expanding public investment,
he added.
Speaking about the situation in Kenya, where post-election violences
saw more than 600 people dead and cost the country’s economy
at least 15 million dollars, UNECA’s chief of trade Stephen
Karingi said the events were “just a blip” and likely
to improve.
“We are not likely to see a continuation of the uncertainty
in the country as we can witness from the partial recovery of the
financial markets. The events provided a temporary shock, but were
just a blip in the continuum of what will happen,” he said.
If Kenya can resolve the conflicts in the coming four weeks time
no major effect will be seen on its economic development, commented
Stephen Karingi.
The UN report follows similar reports from the World Bank and the
International Monetary Fund which claimed that sub-Saharan Africa
was enjoying its strongest economic growth and its lowest inflation
in more than three decades.
Ethiopian Media Women’s
Association organizes seminar
By Addis Mulugeta
The Ethiopian Media Women’s Association (EMWA) has organized
with FredsKorpst (FK) a Norwegian development organization running
participant exchange programs with and among developing countries
in Africa, Asia and Latin America, a home coming seminar, and preparatory
courses on two separate occasions on January 10, 2008, at Axum Hotel.
Ambassador Mohamoud Drir, Minister of Cultures and Tourism opened
the seminar. Jens-Petter Kjemprud, Ambassador of the Royal Embassy
of Norway also made a key note address.
The purpose of the home coming seminar, which had been attended
by 57 participants from 10 African countries was to reflect on the
experiences, achievements and challenges of the 2007 exchange period
and about 40 new FredsKorpst (FK) participants came from 13 African
countries under the objective of preparing the participants for
working and living in a foreign country and thus enable them to
accomplish their targets and expectations for the exchange period.
The main aim of the participant exchange program is to facilitate
and share knowledge, competence and experience among countries through
exchanging participants.
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