Port tariff to increase by up to 15%
By Groum Abate
The Ethiopian government has been notified by its Djiboutian counterpart, as per their bilateral agreement, that it is to increase tariffs by up to 15% on various facilities the Port of Djibouti renders, as of August 15, Capital learnt.
An official at the Ministry of Trade and Industry told Capital that the ministry is currently studying the economic impact and a dialog has been launched recently between both governments’ joint committee members over the issue.
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Awash valley attracts 900 mln br investment
By Muluken Yewondwossen
A Dutch company, Africa Juice is under negotiations with the Privatization and Public Enterprises Agency (PPESA) to invest 900 million birr to produce passion fruit juice under a joint venture with the Agency, in the Upper Awash Valley.
Africa Juice will own 80% of the production site on 1200 hectares at Merti farm in Upper Awash, 146 km from Addis Ababa. The company also plans to collect additional fruit from farmers near the factory, projecting their plantation area to be 500 hectares. Drip irrigation and seed will be provided to the farmers for free.
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Finally, House approves long debated Press Law;
Panel calls for
re-consideration
By Abiy Demilew
The Ethiopian Parliament on Tuesday, July 1, 2008, has approved the new press law which has been debated for more than four years. Meanwhile, a panel organized by Horn of Africa Press Institute, on Wednesday, July 2, 2008, called on the government to revise and reconsider the new law.
The panel, discussing various proclamations of the law, underscored that, even though the law embraces positive developments of its own, but it also sets restrictive proclamations against freedom of information and the future of media in the nation.
MORE
Fuel rationing begins in Jimma town
By Tedla Yeneakal
The south western town of Jimma, some 340kms from Addis Ababa, has been forced to implement a fuel rationing system to cope with major a fuel shortage over the past weeks; effective as of Monday, June 30, 2008.
According to official sources, taxis have been given a ration of 20 liters a week. Serious transportation problems have occurred in the town.
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Leather institute gets new director
By Muluken Yewondwossen
A new director has been appointed by Prime Minister Meles Zenawi for the Ethiopian Leather and Leather Products Training Institute (LLPTI) Solomon Getu assumed his post on June 30, 2008 and is expected to assign two deputy directors for the two wings of the Institute.
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New railway to link Ethiopia, Kenya, S.Sudan
By Groum Abate
East Africa is making a big leap in infrastructure development with the roll-out of a plan to build 15 new railway lines connecting at least seven countries including Ethiopia.
Addis Ababa will be linked with a new standard gauge (SG) railway line with coastal town of Lamu, Kenya and Juba, Southern Sudan.
MORE
Finance minister slams Auditor General report
New Auditor-General to be sworn in
By Kirubel Tadesse
Sufian Ahmed, Minister of Finance and Economic Development (MoFED) has denounced the Federal Auditor’s report that shocked the government by submitting to parliament a report which accuses the government of improperly borrowing an extra 3.3 billion ETB from banks.
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Ministry’s 22 mln br properties put on auction
By Groum Abate
Property of Ministry of Works and Urban Development is up for sale after court order to pay the plaintiff, the former owners of National Engineers and Contractors Enterprise (NECE).
The court ordered the sale of properties worth over 22 million birr that are owned by the ministry.
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‘Flooding the market,’ Meles hints price hike antidote
By Kirubel Tadesse
Admitting various government measures and efforts are still helpless in the face of ever worsening inflation including escalating food prices, Prime Minister Meles Zenawi has told the House of Peoples’ Representatives that his administration plans to make wheat available in twelve major city markets until the price trek calms down.
“As per the world’s market the government will sell wheat starting from a minimum of 350 ETB per quintal as of the end of next month,” Meles said detailing his latest plan to curb inflation.
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Directors Board empowered to assign external auditor
By Kirubel Tadesse
Stripping the authority of assigning an external auditor from the National Bank of Ethiopia (NBE) in the latest NBE bill, the Budget and Finance Affairs Standing Committee of parliament has awarded the power to Board of Directors .
The committee’s decision proposal read to a general session of the House of Peoples’ Representatives had proposed this alteration [the only major change] in the NBE formation bill, which was first tabled to the house on Thursday, May 29, 2008. The original article 8(1) of the bill reads that NBE itself shall assign the external auditor annually that would submit its report to NBE’s audit committee and then to the federal government.
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China eyes projects worth $300 mln in East Africa
By Groum Abate
A Chinese private equity fund set up a year ago for ventures in Africa plans to spend about 300 million dollars on projects in 2008.
The China-Africa Development Fund (CADFund) was launched in June 2007 with an initial one billion dollars provided by the China Development Bank and plans to eventually grow to 5 billion dollars, the fund's vice-president Hu Zhirong said to Xinhua News Agency.
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Ministry of Agriculture suggests way of acquiring water from loam soil
By Addis Mulugeta
The Minister of Agriculture and Rural Development has suggested ways of acquiring water from loam soil to increase productivity in agriculture and to recover from the absence of this year’s seasonal rainfall, said Dr. Abera Deressa, at a press conference held on June 30, 2008.
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Court rules Tesfaye Biru et.al to trial
By Groum Abate
The Federal High Court First Criminal Bench sentenced Tesfaye Biru et.al, charged with two counts of corruption, to defend the charge presented by the Federal Ethics and anti-Corruption Commission, on Thursday July 3, 2008.
The Federal Ethics and Anti-Corruption Commission’s prosecutor had filed charges against the former Managing Director of the Ethiopian Telecommunications Corporation (ETC), Tesfaye Birru along with 14 other executives of the corporation in February, 2008 before the Federal High Court first criminal bench, a charge that is related to a 1.54 billion birr loss the corporation sustained.
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U.S. responds to Ethiopia’s latest appeal
By Kirubel Tadesse
The United States has allocated 82 million USD for food aid and emergency humanitarian programs in response to the latest appeal by Ethiopian government that details 4.6 million people in need of emergency food assistance, Capital learnt.
During the quarterly briefing of Ambassador Donald Yamamoto, U.S. Ambassador to Ethiopia, the United States Agency for International Development (USAID) Mission Director, Glenn Andres, explained that the donation is expected to be announced as early as this week. According to an official at USAID, 65 million USD will be spent on food assistance [through the United Nations World Food Programme (WFP)] and another 17 million in non-food additional emergency humanitarian assistance.
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Exporters urge gov’t to take action on fraudsters
By Tedla Yeneakal
Exporters of several commodities have collectively urged the government to take measures on fraudsters, whom they claim steal export commodities, when loaded on trucks, specifically in the towns of Welenchiti and Awash Arba.
Anwar Ahmed, a local exporter, and general manager for Islamic Trade and Partner Plc and commercial manager of sister company Kas Plc. told Capital that exporters association members have been informed by letter regarding the increasing concern over the fraud and agreed to work collectively to combat the crime.
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University staffs committee suggests apartments
By Addis Mulugeta
After assessing options, the Addis Ababa University staff committee has proposed two apartment housing ownership models. One is apartments that would be fully owned by the university and given to national faculity or to expatriate staff depending on the situation on rental bases. The second option is to be flats to be fully owned by the individual faculty subject to the fulfillment of all other obligations.
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Addis Ababa gets 7.6 bln birr budget
By Tedla Yeneakal
The fist regular meeting of the Addis Ababa City Council unanimously approved a 7.6 billion birr budget for the 2001 E.C. budget year, on Thursday, July 4, 2008.
The budget that is allocated for the next fiscal year is more than double from last year’s budget of 3 billion birr.
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Apply Marshall Plan principles, UN
By Groum Abate
A UN analysis of the economic conditions under which civil conflicts tend to arise, and of those that will best foster recovery once peace has been obtained, suggests that the principles utilized successfully following World War II are not being applied today.
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EAL, ASKY sign investment partnership
By Tagu Zergaw
Ethiopian Airlines and ASKY, a newly established airline based in Lome-Togo, have signed a Memorandum of Understanding (MoU) on June 24, 2008.
The MoU, which takes effect immediately, covers the establishment of a strategic partnership between the two carriers in the areas of marketing, operations, maintenance, training, financing and management contracts. Moreover, the partnership, when fully implemented, means faster, convenient and more efficient air services for the customers.
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Teddy trial adjourns for verdict next week
By Tedla Yeneakal
The Federal High Court 8th Criminal Bench on Friday, July 4, 2008 adjourned the case of singer Tewodros Kassahun a.k.a Teddy Afro, for a verdict on July 11, 2008.
Million Assefa, Teddy’s lawyer, told Capital that the court will rule on the aforementioned date, whether his client will continue to defend his case or not.
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Ethiopian economic association organizes annual conference
By Addis Mulugeta
The Ethiopian Economic Association (EEA) has organized the sixth international conference on the Ethiopian economy held from July 3-5, 2008, at the UN Conference Center.
Participants include government bodies, NGOs, Ethiopian and non-Ethiopian researchers, students and others.
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Port tariff to increase by up to 15%
By Groum Abate
The Ethiopian government has been notified by its Djiboutian counterpart, as per their bilateral agreement, that it is to increase tariffs by up to 15% on various facilities the Port of Djibouti renders, as of August 15, Capital learnt.
An official at the Ministry of Trade and Industry told Capital that the ministry is currently studying the economic impact and a dialog has been launched recently between both governments’ joint committee members over the issue.
Ethiopia uses 90 percent of Djibouti port’s services and relies nearly 100% on the port for imports. It is to be recalled that the Port of Djibouti had introduced an increment in 2001, after negotiations with the Ethiopian government.
Ethiopia’s import traffic via Djibouti port has been regularly increasing. Over 3.9 million metric tons of goods were imported in the year 1998 E.C. The volume increased to over 4.6 million metric tons in 1999 E.C.
According to a report from ENA, Ethiopia’s import via the Port of Djibouti increased by 20% in March this year, quoting the Ethiopian Ambassador to Djibouti, Ato Shemsedin Ahmed Roble.
Relief grain import has decreased while construction materials and goods related to investment and infrastructure development have significantly increased lately. However, in view of the current drought this situation may reverse.
The new increment when applied will concern all port users, including vessels, operators, charters, mortgagees or agents, the cargo owners or agents (shippers), and other users of the port.
Although all attempts to obtain comments from the Port of Djibouti did not materialize until this paper went to print, in a previous interview with Capital, Djibouti Port Commercial Director, Aboubacar O. Hadi had explained that port charges on import represent only 1.6% of the total value of goods and on export the charges represent only 0.78%.
In view of the continuous upgrading undertaken by the Port, and the hike in petrol price, over USD 145/barrel and rising, increments in the port charges were inevitable, note observers.
In 2007, Ethiopian imports were at 5 billion dollars and exports were 1.2 billion dollars worth. The port charge increment would incur millions in additional costs for Ethiopia.
The port of Djibouti had total traffic of 7.4 million metric tons in 2007, a 36% increase from the 5.4 million metric tons in 2006. The transshipment traffic has also been growing rapidly. Ethiopia and Djibouti combined represent 120,000 container imports, while transshipment alone is 50,000 containers.
The Port is also expecting to increase its transshipment business starting from next year with the Port of Doraleh. After completion in December 2008, the Port of Doraleh expects to service in the first two years 1.5 million containers per year. Later, it is expected to handle 2 million containers.
Awash valley attracts 900 mln br investment
By Muluken Yewondwossen
A Dutch company, Africa Juice is under negotiations with the Privatization and Public Enterprises Agency (PPESA) to invest 900 million birr to produce passion fruit juice under a joint venture with the Agency, in the Upper Awash Valley.
Africa Juice will own 80% of the production site on 1200 hectares at Merti farm in Upper Awash, 146 km from Addis Ababa. The company also plans to collect additional fruit from farmers near the factory, projecting their plantation area to be 500 hectares. Drip irrigation and seed will be provided to the farmers for free.
Sources within the investing company told Capital that the two are already concluding negotiations and they are to sign the agreement next week.
Passion fruit juice is a high value product due to its unique and popular flavor, making it ideal for tropical juice blends, smoothies and yoghurts, where its addition into these mixes gives the final product the unique passion fruit flavor. Brazil is by far the world’s largest producer of passion fruit juice but it is also the largest consumer and Brazil is now a small net importer of passion fruit. Ecuador currently supplies over 60% of the international export market for passion fruit juice.
The past 10 years have seen a strong growth in the global market for juices, the latter being defined as 25-99% blends of fruit juices. This strong growth is forecasted to continue for the medium to long term. General economic development in Eastern Europe, Asia and the Middle East, as well as an increased concern for healthier lifestyles in Western Europe and North America are the basis for the growth of the global market. The per capita consumption of juices and nectars in Eastern Europe, the Middle East and Asia lags that of North America and Western Europe and is expected to increase strongly.
Africa Juice will focus on the very lucrative and high growth international markets of Europe, the Middle East and Asia. Demand in these markets is over 20,000 MT per annum.
In the Upper Awash valley the climatic conditions are ideal for growing passion fruit as well as a variety of other tropical fruits – levels of temperature and hours of sunshine are optimum and, equally importantly, they are highly predictable. The plantation of passion fruit was tested on the Nura Era farm unit.
According to the company profile planting will start quarter of 2008 and produce the first fruit within nine months, consistent with the construction period of the processing factory and therefore the first concentrated juice production is already expected in the beginning of 2009.
Production levels will reach 5,600 tons per annum of concentrated juices and purees by 2012 and over 16,000 tons by 2015 as the out growers base is developed.
Finally, House approves long debated Press Law;
Panel calls for
re-consideration
By Abiy Demilew
The Ethiopian Parliament on Tuesday, July 1, 2008, has approved the new press law which has been debated for more than four years. Meanwhile, a panel organized by Horn of Africa Press Institute, on Wednesday, July 2, 2008, called on the government to revise and reconsider the new law.
The panel, discussing various proclamations of the law, underscored that, even though the law embraces positive developments of its own, but it also sets restrictive proclamations against freedom of information and the future of media in the nation.
Amare Argawi, owner and Managing Editor, The Reporter, said, the law hinders the role of the free press in the country’s democratic process and the overall development of the nation. “Most parts of the proclamation are restrictive in terms of information gathering and dissemination.”
First introduced in January 2003, the new press law continues to criminalize press offences. Even if the government claims the new law is designed to “encourage constructive and responsible journalism”, there are concerns among journalists and observers that it may halt the small progress in press freedom that the country has only recently witnessed.
The international community also remained concerned that, since 1992, Ethiopian journalists have been subject to the harsh penalties and vague provisions set forth in the country’s existing Press Law, according to which defamation is a criminal offence.
Panelists detailed the main highlights of the proclamations and their respective interpretations from the international human rights and legal perspectives, sampling best learnt international experiences of various countries in the context. “Different parts of this law have been disseminated into other laws and proclamations of related matter,” Amare Aregawi said.
Issues of defamation, registration and licensing, national security, censorship, printing and distribution, professional and ethical standards of the existing journalism in the country were densely discussed among many others; with a large number of media professionals and others in attendance.
Under defamation & Calumny, the law proclaims a penalty of 100.000br, for any kind of attempt of defamation against any person, institution and the like. “In a country where rape, child abuse and abduction charges are given a maximum penalty of 1.000br, under the state law, the press will be punished with 100.000br,” said Abdu Ali Higera, one of the panelists.
“The watchdog role of the media in the struggle against corruption issues will be challenged in this law,” said a participant who runs anti-corruption institution.
The panel called upon the government to reconsider the proclamations and discussions with stakeholders should continue to strengthen the positive aspects and to rework and develop the rest affecting freedom of information in the state.
Ending the vibrant workshop at Saba Hall, Horn of Africa Press Institute passed resolutions. Recognizing the positive elements, the resolution asked the government to revise the controversial proclamations and their segments disseminated and approved in various laws; the restrictive penalty code which reaches 100.000br, the defamation code which leaves space for government officials and others to attack the media; licensing and registration, and their penalties and the establishment of an authorized independent regulatory organ than Ministry Of Information.
The new press law does not adequately protect the fundamental importance of the press’ right to impart, and the public’s right to receive information and opinions. Defining defamation both as a criminal offence and as a civil one has resulted in the favouring of the prosecutor, according to Amare Aregawi.
The participants agreed to continue lobbying and pressuring the government in different ways including calling for consultative meetings of stakeholders in with the government. Forming a strong press council was also noted as a significant tool towards addressing issues of this kind.
Meanwhile, the Ministry of Information (MoI) later this week called on citizens to acquaint themselves with and stand vanguard to the realization of the newly promulgated Mass Media and Freedom of Information Law, which it said, provides additional basis to ensuring citizens’ freedom of expression.
“It would be the responsibility of executive bodies, private citizens and stakeholders to come to comprehend the contents of the law and stand for its implementation in such legal ways as to guarantee the national interests,” said the Ministry’s statement issued July 2, 2008.
It added that, it is expected that guidelines necessary for translating the provisions of the law would be prepared, since the law has a contributory role towards a comprehensive realization of the fundamental human and democratic rights as enshrined in the supreme law of the land.
Fuel rationing begins in Jimma town
By Tedla Yeneakal
The south western town of Jimma, some 340kms from Addis Ababa, has been forced to implement a fuel rationing system to cope with major a fuel shortage over the past weeks; effective as of Monday, June 30, 2008.
According to official sources, taxis have been given a ration of 20 liters a week. Serious transportation problems have occurred in the town.
“Gasoline has not been available at all retailers but the supply of diesel oil was still ample, “retailers from Jimma told Capital in a telephone interview. “Our suppliers have explained that the shortage was caused by transport problems.”
There are about 10 fuel stations in the town of Jimma, and more than 100 taxis operating with very few private vehicles.
“We are not able to get to work on time,” a government employee in Jimma complained. “It is really disastrous for the economy of the entire region as the town is central for the southern region of the country.”
Officials of the Ministry of Trade and Industry said they are unaware of the rationing.
The last adjustment on fuel prices made by the government was at the end of January 2008, with the price of regular petrol rising from 7.77 birr to 9.61 birr, a 1.84 birr increase. Kerosene has also rise to 5.72 birr after a 1.60 birr increment. Whereas, diesel went from 5.44 birr to 6.90 birr, jet fuel went up to 7.39 birr from the 5.16 birr.
The Ministry had announced then that even after the increment it was still subsidizing 50% of current prices.
According to the Ethiopian Petroleum Enterprise (EPE), the government body responsible for petroleum imports, in 2004 it imported 1,248,092 metric tons of petroleum at a cost of 3.08 billion birr. In 2004, the enterprise paid 2,471 birr for one metric ton. Last year, the cost of one metric ton of petroleum increased to 3,100 birr. In 2005, EPE imported 1.3 million metric tons of petroleum products at a cost of four billion birr.
Leather institute gets new director
By Muluken Yewondwossen
A new director has been appointed by Prime Minister Meles Zenawi for the Ethiopian Leather and Leather Products Training Institute (LLPTI) Solomon Getu assumed his post on June 30, 2008 and is expected to assign two deputy directors for the two wings of the Institute.
Solomon, 39, has over 20 years experience in the leather production sector. Since 1987 he worked as head of various divisions in Ethiopia Tannery SC for 13 years and was general manager of the Addis Ababa Tannery for six years until 2006. He was also president of the Ethiopian Leather Industries Association (ELIA).
Before his appointment, Solomon was general manager of Crystal Tannery, which is under formation. He also owns Hepsom Foreign Trade Auxiliary Company, which engages in creating market linkages, research and consultancy for the leather sector.
Solomon has a degree in General Chemistry from Addis Ababa University (AAU), and masters in Leather Manufacturing Technology, and in Finished Leather, from Rollinger Leather Technical School, Germany.
Abdissa Adugna, secretary general of ELIA, told Capital that Solomon is competent for the director’s position.
“He is well experienced for this position. During his presidency of the Association he played a great role to improve the sector,” said Abdissa.
Prime Minister Meles Zenawi ordered for a new management to be in place, as well as for the re-structuring of the Ethiopian Leather and Leather Products Training Institute (LLPTI), after studies were conducted by experts from the Ministry of Trade and Industry and other relevant stakeholders.
The government established the Leather and Leather Products Technology Institute in April 2004, to support the formation of a skilled labor force and the dissemination of advanced technologies; however, studies carried out indicated that the Institute has not maintained these objectives.
The former director Dr. Belay Woldeyes, has returned to the Technology Faculty of AAU. Sources from the MoTI disclosed that he had asked to take up a post in the Ministry of Trade and Industry as a technical adviser on leather products.
LLPTI was established in 1998 under the Ministry of Trade and Industry at a cost of 127 million birr to address the shortage of trained manpower in the sector and provide training opportunities to those who are interested in the sector, and conduct as well as popularize research in the field.
About 86.5 million birr was earmarked for the purchase and installation of devices under the agreement between the Ethiopian and Italian governments, and machinery worth two million birr was donated by the United Nations Industrial Development Organization (UNIDO) and other items were also purchased at a cost of two million birr allocated by the government.
LLPTI certifies trainees at certificate and diploma level in the leather, footwear, leather and leather goods technologies and plans to give training at degree and post graduate level from next fiscal year.
New railway to link Ethiopia, Kenya, S.Sudan
By Groum Abate
East Africa is making a big leap in infrastructure development with the roll-out of a plan to build 15 new railway lines connecting at least seven countries including Ethiopia.
Addis Ababa will be linked with a new standard gauge (SG) railway line with coastal town of Lamu, Kenya and Juba, Southern Sudan.
The railway first line will connect the Kenyan northern border town of Garissa with Addis Ababa while the other will connect another Kenyan coastal town Lamu to Juba through Garissa.
East African Community officials said that their governments are committed to the project because of its potential to spur trade with the region.
The project is expected to be operational in 12 years time.
According to the master plan that was presented at a recent East African Regional Economic Summit held in Rwanda and that also seeks to rope in Ethiopia and Southern Sudan, Tanzania will be the largest beneficiary of the deal. It will get eight SG lines to link it with neighboring Kenya, Uganda and Rwanda.
Implementation of the plan, which was the subject of a recent East African Community investment summit in Rwanda, is expected to begin with the formation of a regional consultative group to drive the construction work.
The group to operate as an independent unit of the EAC secretariat will coordinate the project that is expected to facilitate trade in the region.
EAC member states are, however, required to form consultative groups to conduct route surveys and establish the amount of money required to build new lines within their territories.
Feasibility studies for the new railway lines have been done and the results handed over to member states for evaluation.
According to the Daily Nation, in Kenya and Uganda, the initiative will culminate into a parallel railway line to the current one that is being run by a consortium of private investors led by South Africa’s Sheltam Corporation.
The consortium, which is operating under the Rift Valley Railways trade mark, has recently come under pressure for failing to improve the quality of services in the 100 year-old railway line that runs from the port of Mombasa to the Ugandan capital, Kampala.
Though Uganda is set to get just four new lines under the deal, analysts said it will get the best level of connectivity because the proposed lines will pass through key economic regions.
The available railway lines being used in the region had become obsolete resulting in high operation costs and minimal returns for the business community because of their outdated meter gauges that are not standard.
It is estimated that it will require at least 180 million dollars to restore the region’s railway performance to where it was 20 years ago.
Apart from the EAC states, Nigeria and South Africa are also stepping up efforts to adopt SG type of railway lines. The West African nation plans to construct a new 8,000 kilometre SG line while South Africa proposes a similar high-speed line between Johannesburg and Pretoria.
Finance minister slams Auditor General report
New Auditor-General to be sworn in
By Kirubel Tadesse
Sufian Ahmed, Minister of Finance and Economic Development (MoFED) has denounced the Federal Auditor’s report that shocked the government by submitting to parliament a report which accuses the government of improperly borrowing an extra 3.3 billion ETB from banks.
Even this week parliament has endorsed a bill empowering government to negotiate unlimited loan access with National Bank of Ethiopia (NBE). The 1994 proclamation restricted the government to access only a direct advance credit not exceeding 15% of average regular revenues and 25% and 50% through treasury bills and bonds respectively. The Federal Auditor report shows that even if during the period (2003/04, 2004/05 and 2005/06 budget year) government revenue averaged 10.4 billion ETB, allowing credit of not more than 2.6billion ETB in treasury bills and 1.5 billion ETB direct loan, the government had borrowed 5.2 billion ETB on Treasury bills and 2.3 billion ETB in direct advance. But, this assessment is either due to missing the concept or else, Sufian defends government in parliament last Thursday, July 03, 2008.
Sufian explained that as per world standards such as IMF government financial statistics, let alone excess, the government didn’t even borrow as much as it could have. The question of excess borrowing should only come after calculating what the government had deposited and borrowed from the banks, Sufian explained. “Until July 7, 2006, the government had borrowed 6.8 billion ETB but had 4 billion in deposit, so when we see the balance, it was only 2.7 billion ETB and during the stated period the parliament had approved for the government to borrow 4.2 billion ETB,” Sufian quoted, explaining what he calls improper analysis by the General Auditor, “the practice was at least a copy of the report to MoFED but I only obtained it late through the Speaker [Ambassador Teshome Toga].” He also advised the House to establish its own taskforce that would investigate the issue and report to the House. Prime Minister Meles Zenawi had also repeated the proposal on Friday, July 04, 2008.
Meanwhile the House has approved Prime Minister Meles Zenawi’s appointment that names Gemechu Dubiso, General Manager of the Oromia Credit and Saving Share Company (OCS) the new Auditor-General.
Shiferaw Jarseo, Government Whip, explained that the appointment of Gemechu came after careful selection. “The appointment was also delayed to let the current staff have enough time to finish up what they had started in this year, “Shiferaw told the House which approved the appointment by majority as twenty one Members Parliament failed to support it. Among twenty MPs that abstained to the appointment is Temesgen Zewdie (MP) who told Capital that he knows too little to endorse or reject Gemechu. “Without rigorously looking into his profile and consulting others, it was very difficult to decide on an appointment by just looking at a CV briefly.” Temesgen explained.
Gemechu is expected to be sworn in shortly. He replaces Lemma Argaw, who had served in the position since 1979 and resigned on November 10, 2006. According to critics Gemechu faces tough a challenge to harmonize government claims and the latest audit report submitted by the team he now leads.
Ministry’s 22 mln br properties put on auction
By Groum Abate
Property of Ministry of Works and Urban Development is up for sale after court order to pay the plaintiff, the former owners of National Engineers and Contractors Enterprise (NECE).
The court ordered the sale of properties worth over 22 million birr that are owned by the ministry.
The properties that are put for auction are a building and infrastructure located in Bole sub city, with a floor price of 2,044,170 birr, construction materials found in different stores worth 1,426,450 birr, different construction machineries and equipment worth 11,627,150 birr, and workshop equipment and machinery tools worth 235,120 birr would put up for auction on August 1,2008.
According to the state owned daily Addis Zemen, motor vehicles of the ministry that are located in Kotebe, Alage Zway, and Dera that are worth 6,703,600 birr and office furniture and equipment estimated at a floor price of 597,870 birr are put up for auction to pay the debt the ministry owes the plaintiff.
The properties that are put for auction are worth 22,634,360 birr totally.
NECE was founded in 1968 when there was no native construction company in Ethiopia. NECE was established by an Ethiopian engineer as a private limited company with a capital of 20,000 birr. Its major purposes were to render engineering services, particularly civil construction works, to supply materials and equipment necessary for construction works and other related activities. In addition, it also rents its form works, machinery, equipment and dump trucks when they are not in use.
Other materials and equipment include an aggregate crushing plant, a concrete batching plant, rock drilling equipment, tower and mobile cranes, fully equipped workshop equipment, soil laboratory equipment, camp equipment, thousands of form works and various materials.
The enterprise’s head office with an area of more than 14250 sq. meters is located near the Addis Ababa Road Transport Office on Haile G/Selassie Avenue commonly known as Megenagna.
NECE was nationalized during the Derg regime with other construction companies such as Berta. When the EPRDF led forces took power and returned the nationalized institution to the rightful owners, the owners of NECE refused to take their company along with its debt.
NECE, after operating as a government institution for a few years declared bankruptcy and eventually closed.
‘Flooding the market,’ Meles hints price hike antidote
By Kirubel Tadesse
Admitting various government measures and efforts are still helpless in the face of ever worsening inflation including escalating food prices, Prime Minister Meles Zenawi has told the House of Peoples’ Representatives that his administration plans to make wheat available in twelve major city markets until the price trek calms down.
“As per the world’s market the government will sell wheat starting from a minimum of 350 ETB per quintal as of the end of next month,” Meles said detailing his latest plan to curb inflation.
According to the P.M. the announced 1.5 million quintals of wheat coming from abroad [reportedly from South Africa] will be available for three consecutive months starting from August [half a million quintals every month] but the government will continue to import until the market settles.
“All the stakeholders; the farmer, the farmer, seller and the buyer, are convinced that the price increase every other day would continue. But until it stops we will continue to provide the market with food in twelve major cities,” Meles announced what he calls a right move on settling the grain price hikes [reported to reach 26.6% last month].
The announced 350 ETB per quintal is double to what the government is charging now for a quintal of wheat in urban areas. However, compared the markets Capital assessed, a quintal of wheat sells for 650 -700 ETB.
The government had two main goals; rapid economic development and bringing down inflation before it started this budget year that ends tomorrow. But, it now aspires a much lesser target: it only plans to have inflation impede from its current status, MP Lidetu Ayalew of the Ethiopian Democratic Party-Medhin explained to Meles signaling to slow down some capital investment projects. Meles rigorously defended the record high 54, 277,095,333 ETB budget of which close to 23.5 billion is for capital expenditures.
“If it were the case that halting development projects would help to ease inflation, it wouldn’t be an unthinkable option but that is not the case. Rather, doing so would worsen things, “Meles responded to the opposition who see the coming year’s budget [that surpasses last year’s by over 23%] as worsening the nation’s strongest challenge, inflation. Even if Lidetu had told Meles he would not vote against the budget bill, his party had motioned a cut of over two billion ETB to parliament a day before. Minster Sufian Ahmed of the Ministry of Finance and Economic Development (MoFED) was present to convince the house to vote against the motions [two other cuts were also motioned.] Speaker Teshome Toga had to advise Sufian when he started explaining why the motion wouldn’t serve the nation’s best interest. Speaker Teshome announced that Lidetu’s party had withdrawn its motion despite some support from MPs including Dr. Negaso Gidada. Lidetu had accounted the lack of expertise at the house’s disposal to detail his motion but Bulcha Demeksa (MP), an economist by profession, pushed his motion stating that he would have expertise needed he explained as irrelevant for the particular case.
Bulcha motioned transferring half a billion ETB of the defense budget [4 billion ETB] to drought response [to systematically distribute the money to affected woredas] while Temesgen Zewdie (MP) motioned deducting 70 million from National Information and Intelligence Service budget [157, 118, 000 ETB] to fight inflation and poverty eradication strategy.
Lidetu declined to support the motions stating that even if his party believes a general cut is due proposing cuts from pointing out particular institutions isn’t the right approach.
Both of the motions were turned down by absolute majority [Temegen’s motion was almost forgotten as the house had started discussing the next agenda before it voted on the motion.]
Responding to particular budget increments [Federal Police, National Information and Intelligence Service and Defense Ministry], Minister Sufian explained what prompted the action. Salary increment and increase in food budget was accounted for the Defense Ministry while a 3000 police officers training and salary expense resulted in more money flow to the Federal Police. Printing new passports to replace at acceptable world’s standard in the next two years was accounted for National Intelligence’s nearly double budget boost.
During the House’s session on Friday, July 4, 2008, Prime Minister Meles had told the House the defense’s budget is still below 2% of GDP and even lower than last year as the budget fails to grow along with economic development [expected to be 11.3% this year.]
Accepting its full content and without making any major amendments the House approved the budget [330 in favor, 5 against and 67 in abstain] as per the proposal of its Budget and Finance Standing Affairs Committee.
Directors Board empowered to assign external auditor
By Kirubel Tadesse
Stripping the authority of assigning an external auditor from the National Bank of Ethiopia (NBE) in the latest NBE bill, the Budget and Finance Affairs Standing Committee of parliament has awarded the power to Board of Directors .
The committee’s decision proposal read to a general session of the House of Peoples’ Representatives had proposed this alteration [the only major change] in the NBE formation bill, which was first tabled to the house on Thursday, May 29, 2008. The original article 8(1) of the bill reads that NBE itself shall assign the external auditor annually that would submit its report to NBE’s audit committee and then to the federal government. But this would empower NBE to name by whom it shall be inspected, said parliament’s standing committee and suggested that the job is better suited for NBE’s Board of Directors. With this amendment, the House approved the bill by majority.
To the opposition’s disappointment the standing committee failed to amend any other articles such as NBE’s accountability, which is by the new law, to the Prime Minister. “While we were concerned about the executive’s influence in monetary policy, now NBE, is under the prime minister, “Temesgen Zewide (opposition MP) expressed his dismay all the way to the budget hearing P.M. Meles Zenawi attended. The government says that it was in response to related concerns it overrides 1994 NBE bill that stipulated, NBE’s highest governing body, its Board of Directors, contains three seats to Ministers whose memberships are automatic. Accordingly, a 1994 law had reserved seats for Minister of Finance, Minister of Planning and Economic Development (which are now merged as one, Ministry of Finance and Economic Development), Minister of Trade (now called Ministry of Trade and Industry.) As per the approved NBE law these Ministers automatic membership is inapplicable, seven directors of which two seats are automatic for Governor and Deputy Governor of NBE. The other five are to be assigned by the government.
China eyes projects worth $300 mln in East Africa
By Groum Abate
A Chinese private equity fund set up a year ago for ventures in Africa plans to spend about 300 million dollars on projects in 2008.
The China-Africa Development Fund (CADFund) was launched in June 2007 with an initial one billion dollars provided by the China Development Bank and plans to eventually grow to 5 billion dollars, the fund's vice-president Hu Zhirong said to Xinhua News Agency.
The equity fund has initially invested 60 million dollars on a glass factory in Ethiopia, a power station in Ghana and a chrome plant in Zimbabwe. It is also working with several Chinese firms to form a holding company that will manufacture construction materials in all African countries.
"The fund is very young. In our plan we are willing to invest about 300 million dollars in Africa by the end of this year," Hu said.
"The fund recognizes East Africa as an important target area for our investment activity. We are evaluating several projects from this region at this very moment," he added.
Some observers said the 120 million people trade bloc, which is the East Africa Community, is very eager to sell itself as a single investment destination.
CADFund's priorities are in agriculture and manufacturing industries, infrastructure development, natural resources and industrial parks.
Bilateral trade between China and Africa has soared this decade to 73.8 billion dollars in 2007 from 10.8 billion dollars in 2000, while foreign direct investments grew from 500 million dollars to 13.7 billion dollars during the same period.
The vice-president said that China was intervening in Africa through government aid and concessionary loans, but that direct investment was the best way to aid the continent in creating wealth.
"Pure economic aid is something like a blood transfusion. It is necessary and effective during a certain stage of development," he told a conference in Rwanda to promote investment in the east African region.
He said that in the fund's experience the continent was not homogenous.
"Every country has a different regime, different laws and different investment environment. China has a very good relationship with African countries but we have to learn a lot of things about them," he said.
Although the idea to set up the fund was mooted at a China-Africa cooperation summit in Beijing at the end of 2006, the fund finances private sector projects.
Exponential growth in China and India have supplied a model for successful growth to Africa's developing nations.
Economic expansion on the continent was an average 5.8 percent in 2007, according to the United Nations.
Ministry of Agriculture suggests way of acquiring water from loam soil
By Addis Mulugeta
The Minister of Agriculture and Rural Development has suggested ways of acquiring water from loam soil to increase productivity in agriculture and to recover from the absence of this year’s seasonal rainfall, said Dr. Abera Deressa, at a press conference held on June 30, 2008.
He said that applying crushed limestone into acidic soil is another way of increasing the country’s agricultural efforts and noted the ministry allocated 2 million birr for the development of acidic soil, for 6 limestone crushing machine, and reformed the prices of agricultural equipments.
Dr. Abera said that to hasten the productivity of the country, the ministry built 3,931 farmers training centers with a full scale capacity, equipment and material. On the other hand, consultant research institutes are built in 3 regional states and 33 research institutes in zonal level to strengthen farmers’ relation and awareness creation. The ministry also plans to increase the number of students in rural development.
He said that regarding rural capacity building, projects are under way by the support of the World Bank. The ministry has allocated 12.6 million birr to strengthen the capacity of four federal rural technical and vocational colleges. In eight regions, there are about 137 Bsc and PhD holders trained, short term farmers training, and the necessary supportive equipments are delivered to the regions.
He added that this year, the country faced challenges like the absence of seasonal rain, and invasion of locusts and pests on crops and green products.
Court rules Tesfaye Biru et.al to trial
By Groum Abate
The Federal High Court First Criminal Bench sentenced Tesfaye Biru et.al, charged with two counts of corruption, to defend the charge presented by the Federal Ethics and anti-Corruption Commission, on Thursday July 3, 2008.
The Federal Ethics and Anti-Corruption Commission’s prosecutor had filed charges against the former Managing Director of the Ethiopian Telecommunications Corporation (ETC), Tesfaye Birru along with 14 other executives of the corporation in February, 2008 before the Federal High Court first criminal bench, a charge that is related to a 1.54 billion birr loss the corporation sustained.
The commission accuses the former manager and the other detainees of intentionally giving the green light to the purchase of equipment that was not up to the required standard.
According to the charges read in court, the different purchases made by the management and the business deals signed with foreign companies did not follow proper procedure and gave way to corrupt practices.
“Illegal purchases and controversial agreements with foreign companies without proper procedures caused the Ethiopian Telecommunication Corporation a 1.54 billion birr loss,” the charge reads.
A report by auditors of the corporation has also made liable five former members of management and other individuals in the corporation for involvement in corruption in relation to two projects.
U.S. responds to Ethiopia’s latest appeal
By Kirubel Tadesse
The United States has allocated 82 million USD for food aid and emergency humanitarian programs in response to the latest appeal by Ethiopian government that details 4.6 million people in need of emergency food assistance, Capital learnt.
During the quarterly briefing of Ambassador Donald Yamamoto, U.S. Ambassador to Ethiopia, the United States Agency for International Development (USAID) Mission Director, Glenn Andres, explained that the donation is expected to be announced as early as this week. According to an official at USAID, 65 million USD will be spent on food assistance [through the United Nations World Food Programme (WFP)] and another 17 million in non-food additional emergency humanitarian assistance. Accordingly, some 91, 000 metric tons of food is expected to be shipped to Ethiopia in the next four months. Kimberly Glowers, Communications Officer with USAID/Ethiopia, told Capital that the food aid may take much less time than the four month wait aid usually takes to arrive to recipients. Quick to respond, USAID used to borrow from WFP reserves which is not possible now as WFP announced low reserves. But the U.S. can respond timely, by diverting food aid, originally allocated to other programs and are already on ships in U.S. ports, to expedite the response which according to Flowers is an inevitable move. “We are yet to learn any final numbers but the aid is significant and will arrive soon,” Flowers told Capital.
A supplemental appropriation passed the U.S. Congress late last week and is expected to be signed by the White House soon. USAID can immediately obligate funds for food aid because it has been already working with pertinent partners like Ethiopia’s Disaster Preparedness and Prevention Agency (DPPA) and WFP.
This grant [a total of 82 mln. USD] follows the 70 million USD worth emergency humanitarian assistance the U.S. had provided Ethiopia in response to the pervious appeals. The 70 million USD aid has also another 10 million USD spent on non-food assistances to address drought-related vulnerabilities.
Contributing more than 80% of what Ethiopia receives food aid annually, the U.S. is by far Ethiopia’s top donor. The latest donation is expected to be distributed to the 4,617,301 [including 75, 000 children] people in need of emergency humanitarian assistance due the poor performance of seasonal ‘Belg’ rainss.
Exporters urge gov’t to take action on fraudsters
By Tedla Yeneakal
Exporters of several commodities have collectively urged the government to take measures on fraudsters, whom they claim steal export commodities, when loaded on trucks, specifically in the towns of Welenchiti and Awash Arba.
Anwar Ahmed, a local exporter, and general manager for Islamic Trade and Partner Plc and commercial manager of sister company Kas Plc. told Capital that exporters association members have been informed by letter regarding the increasing concern over the fraud and agreed to work collectively to combat the crime.
“On average exporters lose up to 7 tons from a consignment of 1500 tons,” Anwar said. “We are receiving several complaints from our international clients as the weight of the export items we have agreed differs due to the fraudulent activity.
Normally coffee is weighed at check points; however red beans, pulses and other commodities are randomly checked at the Port of Djibouti, paying 25 dollars per 50 kg sack. Under normal circumstances, export items show 3 percent discrepancy more or less, due to weathering.
“We have to work hand in hand with the government as to how these organized crimes are being carried out, it is considerably affecting our businesses as we are losing customers since we do not deliver as promised,” Anwar added.
According to a report from the Ministry of Finance and Economic Development (MoFED) revenues collected from exports in the first nine months of this fiscal year were at over one billion USD, showing a 31.2 % growth (239.5 million dollars more) as compared to last year’s same period.
Cereals take the lead with 110% growth, earning the economy over 100 million dollars in months, exceeding the 99.9 million dollars target set for the full year.
University staffs committee suggests apartments
By Addis Mulugeta
After assessing options, the Addis Ababa University staff committee has proposed two apartment housing ownership models. One is apartments that would be fully owned by the university and given to national faculity or to expatriate staff depending on the situation on rental bases. The second option is to be flats to be fully owned by the individual faculty subject to the fulfillment of all other obligations.
Two of the committee members were assigned to consult a senior law instructor on whether or not there are different ownership types, conditional and absolute ownership, to find out in what ways the university can promote its interest while at the same time helping the faculty to have their own residences. The lawyer assured the members that there was only one ownership model-absolute ownership that grants owners full right over the residences, which includes transfer right as per the constitution of the country. Nevertheless, the university can have rights on the apartment until the loan is fully paid back.
The report indicated that the committee came up with alternative ideas and operated on assumptions such as the Ethiopian government will provide construction land free of cost, the height of the building will be limited to G+3, with no elevation, three types of apartments, consisting of 1 studio type, 2 two-bed room type and 2 three bed room types are considered to be built on each floor. The apartment classification is suggested based on the age profile, family size and monthly income of the majority of the staff.
The report explained that for the purpose of cost estimation alternative areas are considered 25, 30 or 35 sq. for studio type, 60, 70 or 80 sq. for two bedroom types and 80, 90 and 100 sq. for three bedroom types.
According to the committee report the preliminary cost estimates Birr 200-315 million is required for the 1000 staff owned apartments, birr 40-65 million is required to build 200 university owned apartments, depending on the cost categories and a total of birr 240-380 million is required for phase 1 construction.
The expected monthly installment of loan repayment of the three categories of apartments is calculated considering three alternative construction costs and payback period of 10, 15, 20 or 25 years and using interest rates of 6 and 9 percent compounded annually and 25 percent down payment as owner’s equity contribution.
Considering the high cost of construction, most staff are likely to require some bank finance beside, banks normally insist on equity contribution by the borrowers from own sources. The amount is normally expected to be paid upfront. A down payment equal to 25 percent of the cost is considered and the difference is expected to be loan financed. This rate raises the issue of affordability of both the upfront payment and repayment of the loan, by young staff in particular. Alternative means of securing funds from other sources were discussed. For instance, one possibility is for the university to advance the upfront down payment on behalf of the staff to recoup later from their salaries. The amount could be repaid during the grace period that banks normally provide the other is for the staff housing coop to seek bank loans with AAU undertaking to guarantee the loan and to regulate transfer of the monthly installment repayments by automatically deducting from the payroll.
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Addis Ababa gets 7.6 bln birr budget
By Tedla Yeneakal
The fist regular meeting of the Addis Ababa City Council unanimously approved a 7.6 billion birr budget for the 2001 E.C. budget year, on Thursday, July 4, 2008.
The budget that is allocated for the next fiscal year is more than double from last year’s budget of 3 billion birr.
Some 70 percent of the budget is allotted for capital expenditure while the remaining 30 percent is for recurrent expenditure.
Capacity building, housing development, expansion of clean water services, expansion and strengthening of micro and petty trade enterprises, construction of roads, health and educational facilities as well was expansion of other social services will be the priority development endeavors during the budget year.
Meanwhile, 8.838 billion birr is planned to be collected from various revenue sources during the reported period, head of the city administration, finance and economic development bureau, Belaynesh Tekle said.
The amount would be collected from tax, non-tax and other revenue sources.
The recently elected administration of the Addis Ababa City Council says it has launched determined efforts aimed at speeding up the fight against poverty and putting the democratic system building on dependable bedrock. The council on Wednesday launched its first regular conference.
In her opening address to the two-day conference, Council Speaker Sinknesh Atale said the council is a venue whereby the residents of the city make their voices heard through their elected representatives.
“With due separation of powers with the executive, the council will be scaling up efforts to solve challenges faced by residents, to speed up development and good governance and democratization, “she said.
Since its coming to power a month-and-a-half ago, the city administration has gathered valuable information on the current status of development projects, which was used as input data in the preparation of the E.C 2001 budget year which begins on June 7, 2008.
Apply Marshall Plan principles, UN
By Groum Abate
A UN analysis of the economic conditions under which civil conflicts tend to arise, and of those that will best foster recovery once peace has been obtained, suggests that the principles utilized successfully following World War II are not being applied today.
International support tends to dwindle shortly after peacekeeping has produced a tentative success, according to the UN’s World Economic and Social Survey 2008: Overcoming Economic Insecurity. Thus, while the provisions of military security may have been obtained, and basic governing institutions rebuilt, the crucial features of economic security required for long-term stability are not yet in place. Sadly, just as domestic governmental capacities have developed sufficiently to manage international assistance, international attention tends to turn elsewhere.
The post-World War II Marshall Plan set a more realistic and patient time frame for reconstruction in Europe, planning in terms of half-decades rather than a year or two, the UN notes, in an analysis prepared by the UN Department of Economic and Social Affairs (UNDESA), in consultation with the UN Peace Building Commission.
Other characteristics which were key to a successful rebuilding effort, but are not often applied today, include clear ownership of aid programs by national governments under nationally drawn implementation plans; conditionality requirements that were flexible as to local situations and national sensibilities; a gradual liberalization of trade and investment regimes, allowing countries time to catch up with global competition; and aid composition that favored grants over loans, so that recovering countries would not be saddled with long-term debt.
The analysis of civil conflicts in today’s world, and means to re-establish economic security in their aftermath, appears in an overall analysis of economic insecurity in the UN’s flagship publication, released on Thursday July 3, 2008.
Conflicts fewer, but with more duration, damage and destabilization
Conflicts are less frequent than at any time since the mid 1970s, but because they are more likely to be civil than interstate conflicts their impact on civilian populations, economic livelihoods and social cohesion is a good deal more pronounced.
Africa has seen the sharpest increase in displaced populations over this period — over two thirds of countries in Sub-Saharan Africa have experienced a civil war episode during the past 25 years; on one estimate fighting cost the region $18 billion a year between 1990 and 2005, about 4 per cent of average yearly GDP.
Poverty, undiversified economies, and a history of conflict are strong indicators of where violence might break out. The great majority of weak (or fragile) states are also characterized by extremely low values of the Human Development Index. Violence is likely to intensify when competition for scarce resources reinforces deep and cumulative social divisions, and individuals and households are compelled to “take sides”.
More than generalized inequality, polarization is a key factor triggering no-holds-barred conflict, the report indicates. Income polarization takes place when there is a large gap between rich and poor, but high levels of equality within these two groupings, promoting greater identification. If the economic polarization aligns with social or ethnic identities, the potential for conflict increases still higher.
Conflict traps
The real threat in these states is that economic shocks can trigger a vicious circle of dwindling state revenues, declining political authority, expanding illegal and informal activity, increasing inequality, further declines in fiscal revenue and human development. This “conflict trap”, as some commentators call it, is clearly visible in national arenas such as in Liberia, Sierra Leone and Somalia,
The report concludes breaking out of this trap requires an integrated policy approach thorough which to re-establish security by gradually repairing trust in public institutions, unifying national identity, establishing an effective central authority and identifying social and economic priorities. The international community and the UN Peace Building Commission in particular will have a central role to play in following through on such an approach. Some points of particular importance are first political institutions should be tailored to take account of socio-economic conditions such as ethnic fragmentation, inequality in the distribution of resources and the post-conflict power balance. Guiding principles should be flexibility and gradualism; particularly close attention should go to the links between public expenditure decisions and the grievances that are root drivers of conflict. Reducing sharp inequalities in access to employment, economic assets, and services is critical; to the greatest extent possible, aid should be channelled through the government, to help build its capacity and credibility; building state capacity to mobilize revenue and provide sustainable funding is another crucial issue from the outset of recovery; and finally, the report calls for more predictability and sustainability in development assistance.
EAL, ASKY sign investment partnership
By Tagu Zergaw
Ethiopian Airlines and ASKY, a newly established airline based in Lome-Togo, have signed a Memorandum of Understanding (MoU) on June 24, 2008.
The MoU, which takes effect immediately, covers the establishment of a strategic partnership between the two carriers in the areas of marketing, operations, maintenance, training, financing and management contracts. Moreover, the partnership, when fully implemented, means faster, convenient and more efficient air services for the customers.
Girma Wake, CEO of Ethiopian, and Mr. Gervais Koffi Djondo, ASKY’s Chairman of the board signed the MoU in the presence of Christian E. Folly-
Kossi, Secretary General of African Airlines Association and other executives of the two airlines.
The MoU includes a detailed roadmap for ASKY to start its operations by December, 2008.
Girma revealed that “Ethiopian has been engaged in the process of identifying a hub in West Africa in order to serve the region better and connecting it to the rest of the world.” He added that, “Following our successful operations and management of the Addis Ababa Hub, we are now determined to build Lome as the second largest hub in Africa for Ethiopian.”
This MoU is an important move marking an historic intra-African co-operation in the airline business. The MoU will pave the way for the two carriers to develop a West African hub for the regional and inter-continental routes. The West African region is one of the highest growing economies in the world due to the prevailing high commodity prices.
ASKY is a multinational private airline initiative geared to meet the growing demands for safe, reliable and competitive air transportation services in Central and West Africa. Its equity ownership includes the private multinational
ECOBANK and the two major development banks of the region, namely EBID, the Economic Community of West African States, (ECOWAS) Bank of Investment and Development, and BOAD, West African Development Bank.
Ethiopian Airlines will own a 20% stake in the start-up airline, ASKY.
In 1960 Ethiopian, for the first time and single-handedly, pioneered air services to
Ghana, thereby cementing the cornerstone for Africa’s uninterrupted East-West connections. The establishment of a hub in West Africa through the signing of the current partnership agreement marks the beginning of yet another milestone in history of commercial aviation in Africa. Ethiopian Airlines inaugurated its operations to Togo in 1989. At present, it flies to Lome four times weekly.
Teddy trial adjourns for verdict next week
By Tedla Yeneakal
The Federal High Court 8th Criminal Bench on Friday, July 4, 2008 adjourned the case of singer Tewodros Kassahun a.k.a Teddy Afro, for a verdict on July 11, 2008.
Million Assefa, Teddy’s lawyer, told Capital that the court will rule on the aforementioned date, whether his client will continue to defend his case or not.
During the trial accompanied by the usual crowd, the court received as it requested in the previous trial to bring a corrected version of the written document evidence presented by the prosecuting attorney, a compiled written report of testimonies of the witnesses, explaining as to how their testimony substantiates that the defendant is in fact guilty, as well as written material evidence.
“I have countered the prosecuting attorney that they can not present the documents as evidence for finding my client guilty,” Million said.
Teddy, who was jailed a couple of months ago after being charged with a hit and run incident that occurred in November 2006.
He was first detained briefly in November 2006, when the incident occurred and released on 50,000 birr bail, before being apprehended by the police again and taken to Kaliti prison facility, 25kms out of the capital Addis Ababa.
The Addis Ababa police arrested Teddy after suspecting him of killing an 18 year old street boy named Degu Yibeltal, who died after he was hit by a car. A taxi driver at the time allegedly tipped off the police of the license number of Teddy’s BMW, which was later found in a ditch on the road towards the CMC residential area, where the singer resides.
Teddy pleaded not guilty to driving without a license and negligent driving.
Ethiopian economic association organizes annual conference
By Addis Mulugeta
The Ethiopian Economic Association (EEA) has organized the sixth international conference on the Ethiopian economy held from July 3-5, 2008, at the UN Conference Center.
Participants include government bodies, NGOs, Ethiopian and non-Ethiopian researchers, students and others.
According to Getenet Alemu, EEA, organizer, the major objective of the conference was to encourage participation of Ethiopian economists in the Diaspora and non-Ethiopian economist throughout the world doing research on Ethiopia or the sub- region. During the conference around 70 papers were presented, which focused on Ethiopia he said, and added that the result of the research will be disseminated to policy makers and other stakeholders through workshops and will publish in the various publications of the association.
The association has been undertaking and coordinating research work aimed at understanding the problems of the national economy.
Sufian Ahmed, Minister of Finance and Economic Development ( MoFD) on his part stated that the conference has created regular forums where several issues relevant to the socio-economic development of the country were presented and discussed. He said that it contributed towards a deeper understanding of the Ethiopian economy and the complex challenges it faces.
Sufian explained that structural problems, low level of productivity, weak implementation capacity, low level of external finance, unpredictability of aid, transaction cost of aid etc, recently, also have encouraged immediately critical challenges that may have implications in maintaining the growth momentum achieving during the last five years. In the country both demand pressures and structural factors compounded by external factors have contributed to the high inflationary situation observed during the last three years. He underlined that more in-depth research and analytical work needs to be undertaken in a more systematic and structured manner to enable the country properly understand its economic ills for informed decision making. Research is very important for the country’s economic challenges, he added.
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