Capital

Dubai Sultan to construct oil pipeline
Rehabilitate Ethio-Djibouti railway with $2 bln

By Groum Abate

Common front for non-oil producers

By Abiy Demilew

OiLibya buys Shell

By Groum Abate

PM appoints director general for newly set up maritime authority

By Tedla Yeneakal

Following a Meles push, parliament forms taskforce to test Auditor’s General find

By Kirubel Tadesse

Gov’t lifts tax on shoe accessories, cotton

By Tedla Yeneakal

Ries Engineering to establish construction, spare parts warehouse

By Addis Mulugeta

Ethiopia incurs over 22mln USD added cost from Djibouti tariff rise

By Tedla Yeneakal

Road authority awards 1.45 Bln Br project to local companies

By Tagu Zergaw

Mandatory inspection for coffee producers, exporters

By Kirubel Tadesse

British aid to Ethiopia rises to $50mln

By Abiy Demilew

City to take back condos

By Groum Abate

Commission to construct headquarters

By Groum Abate

Women Micro Finance Bank forming

By Addis Mulugeta

Ethiopia hit by diesel shortage

By Tedla Yeneakal

Wegagen to acquire 40 mln USD of IT pipeline

By Tagu Zergaw

UDJ awaits electoral board accreditation

By Kirubel Tadesse

Elders’ council secures more pardons

By Kirubel Tadesse

Roads renovation reaches 850 mln Br last year

By MulukenYewondwossen

Addis to host pioneer textile, garment fair

By MulukenYewondwossen

Court hears medical director’s testimony on Teddy Afro trial

By Tedla Yeneakal

Eritrean refugees in Ethiopia protest against Egypt, Libya

By MulukenYewondwossen

eLearning localization launches

By Our staff reporter

Dubai Sultan to construct oil pipeline
Rehabilitate Ethio-Djibouti railway with $2 bln

By Groum Abate

Sultan Ahmed Bin Sulayem, Chairman of Dubai World has signed a deal to construct a pipeline that would link Djibouti with Awash and rehabilitate the over 100 year old railway line for a staggering two billion dollars.
Sources with the delegation told Capital that the total investment for the rehabilitation of the railway is estimated to be one billion dollars and it would be reconstructed as new to better connect Addis Ababa with the Port of Djibouti.
Furthermore the project would consist, an oil pipeline that would stretch from the Port of Djibouti to Awash some 230 kms East of Addis Ababa with another billion dollars.
The pipeline would greatly decrease the transport cost for fuel.
The Sultan who led investors from Dubai, United Arab Emirates, is also planning to invest 100 million dollars on various sectors in the Oromia Regional State.
The business delegation from Dubai is here to asses the investment climate in Ethiopia after the LPG guru Warda A. Graham owner of Wajag Gas invited the delegation.
Sultan Ahmed Bin Sulaymen signed the agreement to rehabilitate the Ethio-Djibouti railway with a billion dollar outlay with Prime Minister Meles Zenawi on Tuesday July 8, 2008.
He also held talks with Abadula Gemeda, President of the Oromia Regional State.
The Sultan came with his two children and visited the city on Tuesday, where the delegation celebrated its achievement.
Holding talks with President Girma Woldegiorgis on Thursday, the Sultan said his company envisages engaging in several investment sectors in Ethiopia in trade, agriculture, mining, catering, real-estate and water sectors by October, 2008.
Sultan Ahmed Bin Sulayem is recognised as one of the leading businessmen of Dubai. As executive chairman of Dubai Ports, Customs & Free Zone Corporation (PCFZ); chairman of Tejari.com, a B2B marketplace; and chairman of the recently established property development company Nakheel, he is quite occupied one could say.
Dubai's PCFZ Corporation has been under Sultan Bin Sulayem's astute management since 2001, and in this time he has streamlined operations and administration to a level achieving record success. Dubai Customs was merged with Jebel Ali Free Zone and the Dubai Ports Authority in 2001 to become the billion-dollar organisation it is today.
Sultan Bin Sulayem is chairman of Nakheel, a real estate and tourism property development firm responsible for the creation of The Palm, the world's two largest man-made islands, constructed in the Arabian Gulf off the coast of Dubai. Heralded as "the eighth wonder of the world," this $3bn-plus development has been a tremendous success, selling out initial release residential properties within days.

Common front for non-oil producers

By Abiy Demilew

To address the current soaring international oil price, and to raise Africa’s profile, an initiative to form the Organisation of Non -Oil Producing Countries (ONOPC) has officially been introduced here in Addis, Thursday, July 10, 2008, by the Ambassador of the Republic of Mauritius to Ethiopia, AU, UNECA, Ambassador to Kenya and Uganda, Mr. Premduth Doongoor.
The Ambassador also reflected that on the realization of this initiative, Prime Minister Meles Zenawi might chair the new organization, which stands as a protective counter balance to OPEC.
With great earnestness, Ambassador Premduth stressed on how daily human life is currently challenged by the adverse effects of the constantly skyrocketing oil price, this being the most burning issue currently.
“The rich world and the oil producing countries have kept ignoring the oil price issue, which now has put a heavy toll on the overall development strategies, activities and social living of the least developed countries (LDCs), many of these in Africa,” he stated.
To many countries across the world who are the direct victims of the oil price hike, much had been expected from the G8 summit held in Tokayo, Japan this last week, in stabilizing and finding out alternatives favoring poor countries. However, according to the Ambassador, oil was not even raised on the agenda for discussion. “Moreover, nothing concrete has been cleared regarding aid for Africa,” he said.
“Affecting production capacity, export, trade, commerce, foreign direct investment and employment opportunities; the soaring oil price has led to a chronic food crisis situation, making life harder for poor countries especially Africans,” he underscored. “Now the choice lies between continuing inaction and therefore total turmoil and/or start to merge as a united front and acting against it.”
Ambassador Premduth stated there is no way that this situation can continue. “The rich world cannot ignore addressing the issue and come up with a solution other than treating poor countries on food aid projects.”
“In a situation,” the Ambassador said, “when human living in poor countries is challenged, achieving the United Nation Millennium Development Goals (MDGs) could only be a dream.” He called up on the European Union, the UN, G8 countries, IMF, ACP, OPEC, the World Bank and other regional and international organizations to address the issue of high oil prices and the food crisis situation which is already causing death in many countries.
Premduth told reporters that, only a day before, he had set the issue of creating a united front and the establishment of ONOPC as an agenda of the African Union, in order to take the discussion to a higher level.
“Before the UN Summit to be held in New York in September, Africa should have a stronger voice in representation; to act quickly before it’s too late,” the Ambassador underlined and hinted at subsidizing the establishment of an international petrol fund in favor of poor countries, among possible solutions.
“For example, OPEC can contribute to this fund towards human development; economic development and growth; eradication of poverty in Africa and for the least developed countries,” the Ambassador revealed.
Excited at the choice of its first headquarter here in Addis, Premduth appreciated the favor and support of the Ethiopian government, and especially of Prime Minister Meles Zenawi.
Ambassador Premduth urged the UN Secretary General Ban Ki Moon and the organization itself to act on the chronic issue of high oil prices and the food crisis, as anxiety is growing across the developing world.

OiLibya buys Shell

By Groum Abate

Libya’s oil giant, OiLibya, has formally entered the Ethiopian market after signing an agreement to acquire 100% of oil giant, Shell Petroleum Ethiopia and Djibouti Ltd.
OiLibya, effective Thursday July 10, 2008 acquired Shell Ethiopia and Djibouti Ltd. shares and would start rebranding Shell outlets in both countries in the coming weeks.
Shell Ethiopia, whose market share had once reached over 50%, currently commands less than 30%. The reason for the decline of the company’s market influence is its hesitancy to compete in bulk oil and oil product supply tenders of late, after the company conducted an aspired portfolio review in October 2007 for the exit strategy from the downstream business of retailing its products.
Bahru Temesgen, external affairs manager of Shell Ethiopia and Djibouti Ltd, told Capital that the agreement marks the exit from the downstream business from Ethiopia and Djibouti to focus on the upstream business concentrating on oil exploration.
The sale is consistent with Shell’s global strategy, known as ‘More Upstream and Profitable Downstream’ that focuses only on profitable retail markets and on oil prospecting.
OiLibya has a presence in 16 African countries and has been active in retail, wholesale, and aviation fuel marketing, among other activities.
The agreement consists that current employees would be included under the new brand.
Last week, Kenya’s Government gave Libya Oil Holdings Ltd, the go ahead to purchase a 50% share of the Mombasa based Kenya Petroleum Refinery Ltd.
The Libyan’s will be purchasing shares hitherto owned by three European multi-nationals; Shell International Petroleum Ltd, BP Africa Ltd and Chevron Global Energy Inc.
OiLibya is a subsidary of the TAHL Group and has developed networks of service stations in Egypt, Burkina Faso, Chad, Mali, Niger and Eritrea, with accompanying logistics. It also plans to develop the network in other African countries.
The TAHL Group’s future expansion plans in Africa include several new development projects in refining, logistics and retail sectors in various countries.
Expansion is in progress in countries where operations already exist, including new retail outlets, aviation facilities and depots.
OiLibya has on the cards an ambitious expansion plan whose goal is to enable it gain control of a double digit share of the market in the next five years.
The Libyan firm took over the Mobil business in Kenya in December, 2007 making its debut in petroleum distribution and marketing business after signing an agreement with ExxonMobil Corporation. Under the agreement, Tamoil Africa Holdings Limited (TAHL) acquired Mobil’s business and all its assets, including the entire network of 64 retail service stations.
Shell’s launching operations in Ethiopia in 1929, with the name Shell Company (Red Sea) Limited and incorporated in London. It bought the Akaki Depot in 1946 which was jointly owned by the Italian multinational, Agip, and the Ethiopian government, as well as other outlets in Addis Ababa. In the same year it changed its name to Shell Ethiopia Ltd.
The Ethiopian oil industry, which until 2003 was monopolised by Agip, Mobil and Total, as well as Shell, seems to be losing its veteran retailers. Shell Ethiopia, which had boosted its market share acquiring the properties and business of Agip, ran 200 retail stations across Ethiopia as of 2000.
The company, which sold its Liquefied Petroleum Gas (LPG) business in 2004 to Ghion Industrial Group, later sold the depot it procured from Agip - located around Gotera - as well as its 63 retail sites to the Kenyan franchise, Kobil Ethiopia Ltd.
Mobil also exited the Ethiopian market, selling its properties to Total. In addition to Total and Shell, currently the National Oil Company (NOC), established in 2004, Yetebaberut Beherawi Petroleum (YBP), established the following year and the very recent entrant, Kobil, are operating in the country. Nile Petroleum has also joined the market recently.
Royal Dutch Shell has pulled out of Zimbabwe, selling its 50% stake in a joint venture with BP to Engen Petroleum, a South African company 80 per cent owned by Petronas, the national oil company of Malaysia. Royal Dutch Shell reported an annual profit of 27.6 billion dollars (13.9 billion pounds) in 2007.

PM appoints director general for newly set up maritime authority

By Tedla Yeneakal

Prime Minister Meles Zenawi has appointed Ephrem Tufer, 55, who was serving as Department Head of Port Utilization & Transit Affairs at the Ministry of Trade and Industry for the last five years, to lead the newly set up Maritime Affairs Authority, effective as of Wednesday, July 2, 2008, reads the appointment letter signed by the Prime Minister.
The need for establishing an independent authority to administer the Maritime sector came about last year after it was declared in proclamation no. 549/2007 with the view to using modern means and techniques to administer dry ports, marine transport multimodal transport services, making use of inland water ways for transportation and other maritime services.
Maritime Affairs Authority, a government body that directly reports to the Ministry of Transport and Communication, assumes maritime-related duties, which until now had been carried out by various government bodies.
The newly appointed director, obtained an MA in economics at Havana University, Cuba and has served several posts in relevant government offices including as head of Foreign Trade Relations division, Trade Promotion department at the Ministry of Trade and Industry as well as an expert in the Bilateral Trade Relations Department at the Ministry of Foreign Trade, before assuming his current post at the Ministry of Trade and Industry.
Ephrem told Capital that the authority will operate in a coordinated management system for effective and organized port usage.
“We will work in a very harmonized and organized way on customs clearing, and related issues by considerably reducing the transit time of import and export of goods and coordinate the concerned government bodies to care for goods at port,” Ephrem said. “Our authority will also ensure that the country benefits more from being a member of the International Maritime Organization (IMO).”
Currently, Ephrem is also a board and audit committee member of the Ethiopian Shipping Lines (ESL) as well as board member of the Dry Port Enterprise of Ethiopia.
The Maritime Authority will be temporarily located at the Ministry of Transport and Communications near the main post office on Churchill Road.
Funding for the authority will consist of budget allocated by the government, annual fees, service fees, registration fees proceeds obtained from rents or sales of property and financial donations and income earned from services it renders.

Following a Meles push, parliament forms taskforce to test Auditor’s General find

By Kirubel Tadesse

Responding to the latest appearance of Prime Minister Meles Zenawi’s in parliament, where he claimed that the Auditor General’s (A.G.) report had committed ‘a junior’s accountant error’ to accuse the government of unlawfully borrowing, parliament has appointed a five member team experts to verify the A.G’s findings.
The General Auditors audit report, submitted to the House of Peoples’ Representatives on June 24, 2008, had revealed that the government has borrowed close to 3.3 billion ETB more than it could by law meanwhile Sufian Ahmed, Minister of Finance and Economic Development (MoFED) maintains that the government didn’t in fact even borrow as much as it was allowed in the stated 2005 budget period, let alone exceed its cap.
Accounting the recently amended but then applicable law, the Federal Auditor report shows the government should have only borrowed up to 2.6 billion ETB in treasury bills and 1.5 billion ETB in direct loans. This wasn’t respected as the government took 5.2 billion ETB on treasury bills and 2.3 billion ETB as direct advance. Accordingly the report advises parliament to control the executive. This alerted the Opposition which immediately demanded a special session to discuss the matter. The ruling party would not accept the demand, which opposition MP Lidetu Ayalew remembered. “We were told that the matter would be discussed in the pertinent standing committee according to House procedures. Why the sudden change in practice?” Lidetu wondered.
Meles, on July 4, 2008, admitted that if indeed, excess borrowing has occurred [which he strongly denies] it is unlawful and against budgetary laws. A day earlier, Sufian of MoFED had explained to parliament that the government was entitled to borrow 4.2 billion loan [by parliament approval] in the stated period. “As per international standards [IMF government financial statistics] what the government held in deposit and what it borrowed from banks should be considered to determine whether or not there was excess borrowing. “Capital had quoted Sufian explaining. According to Sufian the government [by July 7, 2006] had 4 billion ETB deposit when it borrowed 6.8, of which the balance is 2.8, well short of the 4.2 billion ETB parliament has entitled government to borrow.
Ignoring Sufian’s explanation, the opposition repeatedly used the A.G. findings to accuse the government, of further worsening inflation. Consequently, the ruling party has pushed for another team to look into the matter, looking for a report with results that ‘correct’ the General Auditor’s ‘junior level’ mistake.
After Sufian initiated the proposal for the House to set up the team, Meles also pushed for the proposal a day later when he joined Sufian to vote for the record high budget bill. In its closing session of this year on last Monday June 7, the House witnessed stalk division (common) in which the opposition stood firmly against the forming of the team while the ruling party which has an absolute majority, of course for a task force.
The Opposition wants pertinent parliament standing committees [in which they have representations] to verify the two contradictory assessments. However, the ruling party pushed for the formation of an independent team of experts stating that standing committee members are not qualified for the job. To Opposition dismay, the five man team led by Hailemelekot Hailegiorgis and with Woldaye Ameha (PhD) Chairman of Ethiopian Economists Association, as deputy is approved by majority.
The team is to first determine how much the government could have borrowed and did borrow in the stated 2005/2006 budget period to tell whether it over stepped the legal limit.
The team is to submit its findings by September 25, 2008, to the Speaker of the House, Teshome Toga. “The ruling party had borrowed excess money, and this same party wants the verification of an audit report by a group of members itself nominates, “ Legesse Beratu of the Coalition for Unity and Democracy (CUD) commented.” the decision is simply to serve the interests of the executive, one way or another!”

Gov’t lifts tax on shoe accessories, cotton

By Tedla Yeneakal

The Ministry of Revenue (MoR) has lifted the tax imposed on imports of accessories and components used by shoe industries, as well as Value Added Tax (VAT) on cotton supplied to local textile industries, effective as of July, 8, 2008.
According to a letter from the Addis Ababa Chamber of Commerce & Sectorial Associations [AACCSA] and sent to relevant businesses in the sector, the Ministry of Trade and Industry has informed the chamber that the government has lifted the tax on the aforementioned industries with a view to encourage the sectors.
“We have not yet officially been contacted by the Ministry of Trade but we are very happy that the government has lifted the taxes,” a member of the Ethiopian Tanners Association told Capital. “It will considerably help the sectors to boost revenue from export of shoes.”
Lifting of tax on the shoe manufacturing sector is one of the measures taken by the government to increase production, as the Trade and Industry Minister has announced in February this year, the government plans to produce 60 to 70 thousand pairs of shoes per day, increasing current production of 24 thousand pairs per day.
“We have a plan to increase this number to fifty thousand by the end of this fiscal year,” Girma had said.
Commenting on the cotton industry, Girma underlined the interest shown by Turkish and Indian investors to participate in textile and garment investment including cotton farming.
“To increase garment production the country should develop the textile industry,” Girma added.
Cotton is grown throughout Ethiopia below elevations of about l,400 meters. Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. Before the revolution, large-scale commercial cotton plantations were developed in the Awash Valley and the Humera areas. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia’s largest cotton plantations. Rain-fed cotton also grew in Humera, Bilate (in Sidamo), and Arba Minch (in Gamo Gofa).

Ries Engineering to establish construction, spare parts warehouse

By Addis Mulugeta

Ries Engineering S.C, has been negotiating with the Ethiopian Custom Authority to establish a warehouse for duty free construction machinery and spare parts.
Ries Engineering Sales and Marketing Manager Yeheyes Aseffa told Capital that after custom issues are handles, Ries will construct a warehouse. Currently, the Customs Authority is reviewing proclamations that would allow Customs warehouses for private companies. Ries Engineering expects to solve problems related to loading of construction machinery and spares. Clients of Ries could simply pick up construction equipment and parts from the proposed warehouse.
Keys to the warehouse will be held in the hands the Customs Authority and by Ries Engineering.
He said that there is competition from construction machinery and spare parts from Chinese makers but Ries Engineering competes by higher quality and new products which are cost effective for clients.
Ries Engendering S.C, has been importing and distributing products from internationally reputed manufacturers, namely Caterpillar, Massey Ferguson, Perikins and others for over 40 years. The company has just launched Caterpillar versatile compact machines which are required for building construction, utility, road maintenance, agriculture, mining, services and for urban development.
Yeheyes said that Ries is one of the oldest companies in Ethiopia, established in 1961 as the engineering department of Paul Ries Sons. It was reformed as a separate company in 1965. Ries Engineering also provides maintenance services, training and workshops for clients on how to operate its heavy equipment.

Ethiopia incurs over 22mln USD added cost from Djibouti tariff rise

By Tedla Yeneakal

Ethiopia faces over 22 mln USD in additional costs per annum, from the usage of Djibouti port services, if the new port tariff increment is enforced as scheduled, to be effective as of August 15, 2008.
Ephrem Tufer, Department Head of Port Utilization & Transit Affairs at the Ministry of Trade and Industry, told Capital that a committee comprising different relevant government offices has been studying the port tariff revision, and based on figures indicating the volume of goods imported as well as exported via the port of Djibouti in the year 2007, Ethiopia will incur over 22 mln USD in additional costs if the new tariff is implemented.
“Costs will considerably increase if the new revision is applied,” Ephrem said, “With on going construction boom, rising consumption of goods as well as high volumes of incoming food aid and fuel, the estimated extra cost is likely to increase.”
The new rates would be introduced on three main services, namely an increase of 25 percent in marine charges and a 15 percent spike on both container stevedoring and cargo port dues. Moreover, the port has also announced that it would reduce the period of free storage for cargo from the previous 15 days to 8 days on that of transit cargo from Ethiopia.
According to the revised port service tariffs, Djibouti port management has also introduced a new unit of measurement, in addition to a new fee of one dollar for every gate pass issued.
The committee set up to study the adjustment further claimed that this notification is not as per the bilateral agreement on port utilization signed between the two governments on April 13, 2002.
Article 6 of the agreement on notification of port regulations and tariffs, states that ‘when the Republic of Djibouti finally decides to introduce new Regulations and tariff, it shall give the Government of the Federal Democratic Republic of Ethiopia 60 working days advance notice.
“We have not been notified as per our agreement,” Ephrem said, “the committee is requesting the port authorities to be more rational.”
Meanwhile, concerned about the new tariff rise, Minister of Trade and Industry Girma Birru traveled to Djibouti on Wednesday, July 9, 2008, to discuss with his counterparts.
A technical committee supervised by the Ministry of Trade and Industry (MoTI) was formed last week, comprising members from four federal agencies, the Ministry of Trade, the Customs Authority, Maritime Transit Enterprise (MTS) and the Ethiopian Shipping Lines (ESL).

Road authority awards 1.45 Bln Br project to local companies

By Tagu Zergaw

Road design and construction project packages in various parts of the city have been awarded to six local companies. The 1.45 billion birr agreement was signed between the Addis Ababa City Roads Authority (AACRA) and the companies on July 7, 2008.
Out of the total budget, 1.4 billion birr is for construction while the balance is for road design.
According to the agreement three companies will build a total of 31.66 km roads of different widths ranging from 20 – 40 meters. The construction of the roads is expected to be completed within 14 to 24 months and the design of four roads that 92.92 km will be submitted within one year.
CRBC Addis Engineering, Enyi Construction, Hazi II and MIDROC Construction, were contenders for the construction tender. From these companies, only one company; CRBC Addis was not awarded a project. The remaining construction companies-MIDROC, Enyi and Hazi got three, two and one construction sites respectively.
A 2.7 km and 30 meter wide City Tip ring road square to Bisirate Gebreal road, the 8 km 25 meter wide Megenagna to Ayat road’s uncompleted left side and Gurd Shola – Semmit – Yeka Bole 8 km and 30 meter wide road will be constructed by MIDROC. For these roads a total of 617.8 million birr will be paid to MIDROC.
Enyi will construct a 7.7 km span. These will be the road form Alem Bank to Yeshi Debele and Bole ring road square to Meskel Square. Enyi will construct these for a total cost 517.2 million birr.
HAZI will build the Ayer Tena to Tatek Ambo 5.2 km, 40 meter wide road for 306.4 million birr birr.
The design work is to be handled by Highway Engineers and Consultants, United Consulting and Best Consulting. United will design a 14 km and 25.4 km road at a total cost 20.7 million birr. Best will design a 41.9 km road in two packages at a total cost 20.9 million birr. The remaining 11.6 km will be designed by Highway for 4.7 million birr.

Mandatory inspection for coffee producers, exporters

By Kirubel Tadesse

According to a new law issued last Monday July 7, 2008, all coffee producers and exporters are to have their product inspected by coffee inspection centers [expected to operate at regional and federal levels] before the product is shipped or sold on local markets.
The inspection centers will be entitled to grade the coffee and issue detailed certificates after pre production inspections and representative sample examinations. The inspections will include examining whether the coffee was prepared in accordance with the characteristics of the agro ecology of its production areas, if the product is designated for exports, and other considerations.
According to this proclamation providing for coffee quality control and marketing, the Ministry of Agricultural and Rural Development [MoARD] tabled to the House of Peoples’ Representatives [the latter endorsed it the same day] failing to have their coffee products inspected will entail stiff penalties of up to 100, 000 ETB fines and five year prison terms.
The law also forces suppliers to conduct all coffee transactions through Ethiopian Commodity Exchange (ECX) or auction centers which will be established by MoARD. 20, 000 ETB fine and one year prison term will follow if one is found using other lines to market rather than ECX or auction centers to sell coffee.
It is not surprising for the government to seek mandatory inspections and pre export grading, especially on pre production and shipping, since coffee contributes the lion’s share [35% export sales] in foreign currency earnings. According to a Ministry of Finance and Economic Development (MoFED) report, in the first nine months of this year alone, coffee brought in 336.8 million ETB [close to 33.7 million USD.] Its role isn’t at its best as it falls from 35% of export share last year to 33.7% this year. However, for general export revenues and sales [expected to grow by 25% this year] coffee has not been felt by government to be encouraging other exports such as flowers, that earned 76.6 million USD in the first nine months of the ended 2007/2008 budget year.
According to experts, among challenges for Ethiopian coffee in world markets, most are due to poor pre-production processes and packaging. The law is believed to enhance capacity and enforce coffee suppliers to help tackle challenges that keep Ethiopian specialty coffees from claiming their deserved position in a competitive world market.

British aid to Ethiopia rises to $50mln

By Abiy Demilew

Only three months after the announcement of the UK’s largest ever foreign aid to Ethiopia, 2.5 billion birr (130 million pounds sterling), May 2008, in assisting the country to achieve the Millennium Development Goals, Britain this week raised aid by $40mln, responding to the latest appeal by the Government of Ethiopia and the UN.
This latest aid increase is reported to outline the current need for food aid, reported to reach $425mln, and the UK’s own assessment of the crisis, which confirms the worsening situation and the need for additional funds. “Up to one hundred thousand people are suffering from acute malnutrition and the United Nations estimates that 4.6 million are at risk as a result of the food shortages,” said the statement issued by Department for International Development (DFID), on Thursday.
DFID’s latest announcement reported the rising food prices and rain failure in the southern and eastern parts of Ethiopia have resulted in serious food shortages in the country. “In some areas food prices are more than double than last year.”
Douglas Alexander, UK Minister for International Development, quoted as saying: “Drought and rising global food prices have meant Ethiopia does not have enough food to feed its people. Close to five million people need immediate food assistance and it is for this reason that the UK is giving an additional $ 40 million.”
Accordingly, this money will ensure more people are being fed but further aid is needed. “I urge other international donors to bring forward additional funding to ensure we can meet Ethiopia’s needs,” he said.
The latest increase of $40mln, to the current humanitarian crisis situation in Ethiopia, marks UK’s overall contribution to $50 million, 10% of the overall need.
DFID’s statement recalls that, in May, DFID provided $10mln to the Humanitarian Response Fund following an appeal by the Government of Ethiopia and the UN. And accordingly, these funds were allocated to UN agencies and NGOs working on emergency health and nutrition interventions.
Allocating the increased $40mln, DFID stated that, the $8mln to the Humanitarian Response Fund for immediate disbursement to NGOs and UN agencies to scale up emergency feeding programmes. This is additional to the $10 million provided by DFID in May. It also added $10mln for the Production Safety Net Programme to extend the July transfer to cover another three months. This is additional to the $44 million DFID provided in January as part of DFID’s regular annual payment.
At least $2 million to Medecins sans Frontiers to release core MSF funds for relief work in the Somali region and up to $20mln to WFP for targeted supplementary feeding for 1.2 million people over three months, said DFID.
Norman Ling, UK’s Ambassador to Ethiopia, in May said; “The UK is committed to poverty reduction in Ethiopia. This commitment has been demonstrated by a significant increase in the UK’s development programme in Ethiopia. We have raised our aid programme from 10 to 130 million pounds sterling (from about 180 million to 2.5 billion birr) over the last six years which will make Ethiopia the UK’s largest programme in any African country.”
Head of DFID Ethiopia, Paul Ackroyd, also said: “Ethiopia has seen impressive progress since 2000. Economic growth has exceeded 10 % for the last four years, poverty levels reduced from 46% to 39% between 1995/6 and 2004/5. We are seeing good progress on key poverty indicators from a very low base. The focus of DFID’s programme is on supporting Ethiopia’s effort to reduce poverty and enhance growth.”

City to take back condos

By Groum Abate

The Addis Ababa City Government Housing Development Project Office has announced that it would cancel the ownership of condominiums it transferred to lucky winners that do not complete the necessary formalities until yesterday, Saturday, July 12, 2008.
According to the notice posted on the city’s bi-weekly newspaper Addis Lisan the office would take severe measures on those that do not complete the necessary formalities including those who pay a down payment for the houses and have not completed other formality with the Commercial Bank of Ethiopia (CBE).
CBE signed an agreement with the city government to facilitate loans to the lucky winners.
The winners are those that were selected in November 2005 and in the year 2006.
The project office said that the winners that paid the down payment and did not conclude a loan agreement with CBE and those that do not even completed the house transferr with the city government but have paid the down payment are included.
The office announced that it would take the necessary measures after the deadline.
The office has been building condominium houses for the past couple of years to curb the severe shortage of housing in the city.
State Minister of Works and Urban Development, Arkebe, Okubai announced that construction is to start on over 110,000 condominium for two billion birr. The state minister disclosed at a press conference held in his office on Thursday July 10, 2008 that construction of the condominiums will be completed in 70 city’s across the country.
In a related development, more than 1,600 condominiums constructed in Adama town of Oromia State were handed over on Thursday to eligible town dwellers by draws.
The administration has been constructing 3,100 condos in different parts of the town at a cost of 270 million birr.
According to Arkebe, one hundred professionals have come from China to support the house development program with another 1,000 to arrive in the near future.
This fiscal year the condominium construction program requires 1.8 mln tons of cement. and 150,000 tons of steel.

Commission to construct headquarters

By Groum Abate

The Police Commission of the Addis Ababa City Government is going to build a headquarters on Haile Gebre Selassie Avenue near what is commonly known as 22 Mazoria.
The Commission has invited eligible contractors that possess a grade one license.
According to the notice posted on the government owned daily, the Amharic Addis Zemen, the commission has invited interested parties to bid for the construction of its head office, with an estimated outlay of 10 million birr. The tender is expected to open on July 25, 2008. The commission has been located in the Maikelawi area around the Piazza for the last many years.

Women Micro Finance Bank forming

By Addis Mulugeta

To solve financial constraints facing women exporters and producers, a dedicated micro finance institution is being formed. This was announced by the Ethiopian Women Exporters Association (EWEA), July 8, 2008, at the Ethiopian Chamber of Commerce and Sectoral Association.
EWEA President, Hadia Mohammed, told Capital that currently, financial problems are a barrier to the export capacity and efficiency of women to compete effectively. The association has been is discussing with professionals on how to organize and establish and accident the micro finance to accredit. Hadia said the association needs the support of the government and of all women exporters. Women exporters have critical issues like access to finance, international exposures and certification.
The EWEA has also introduced a clear system of services delivery to pioneers and new members, which is crucial to increase membership. Workaferau Kidanie, EWEA Program Officer, stated in her presentation that currently, EWEA has 24 active members involved in various sectors such as leather, textile, flower, coffee and jewelry among others and added that the association is committed to empowering women exporters with skills and up to date information on the export trade and build up entrepreneurial capacities. She said that members benefited from services like an information and resource center with counseling and a trade and market development training office with communication facilities.
Salpi Nalbandian, Managing Director Bale plc stated that EWEA is in the stages of identifying and prioritizing critical issues, including advocacy , strategy implementation and lobbying. In networking, the association is creating relevant contacts with organizations and individuals.
Susan Wolfgarten, advisor with EWEA said that, there is a program to offer marketing skills for export oriented business women, such as product differentiations in competitive markets, sales channels and international distribution, communication with international buyers, and cost calculation and pricing.

Ethiopia hit by diesel shortage

By Tedla Yeneakal

Major towns throughout Ethiopia have been hit by a major shortage of diesel fuel, starting Thursday, July 10, 2008 this week, gas stations were congested with vehicles queuing to fill up their tanks.
Damenu Kibret, Public Relations head of the Ethiopian Petroleum Enterprise (EPE), told Capital that the shortage occurred from reduced supply at retail companies.
Relevant government officials are discussing with oil retail firms to particularly identify the main factor behind the shortage.
However, an official of one of the oil companies blamed EPE for the shortage saying that the enterprise has restricted supply of diesel by setting quotas to limit the amount that enters the country.
“The amount was not restricted before, now there is a limit on imports that has been put in place,” said an official from one of the retailing companies.
During the first nine months of the current Ethiopian year, the country spent slightly over 10 billion birr on fuel imports of 1.37 million tons, an increase in the volume of fuel imports during the same period by 10 percent.
The cost of fuel import has been a major element offsetting gains in the export sector, where it has been consuming up to 80 percent of foreign currency secured from international trade previously.
Although export earnings were said to grow by about 30 percent, the rate at which fuel import bills have increased has offset the gains. With world oil price hikes continuing unabated, fuel import bills for the current fiscal year are expected to hit well over the amount of export earnings expected to be secured during the same period.
The outcome of the meeting between the Ethiopian government and oil retailing firms did not finalize as Capital went to print.

Wegagen to acquire 40 mln USD of IT pipeline

By Tagu Zergaw

Wegagen Bank, one of the commercial banks and a pioneer in implementing bank networking in the country has earmarked 40 million dollars for the enhancement of the Bank’s IT system.
Officials within the Bank told Capital that the Bank has already awarded the project and is concluding the agreement for ATM and a point of sale system with a South African company.
“IT enhancement is already in the pipe line. We will try to introduce more efficient card payment system and also try to change the core banking system. I with a very modern and efficient banking system. I believe that we are moving to acquire appropriate technology,” said the official.
Wegagen has more than 40 branches and four sub branches. Sub branches are those that are appropriate for zonal and small towns The Bank plans to open five branches per year, and will open three more branches this year.
The Bank was established in 1997 with 60 million birr in subscribed capital and 30 million birr of paid up capital during its establishment and After 10 years the shareholders number reached 583.
Currently Wegagen has 120,000 depositors.

UDJ awaits electoral board accreditation

By Kirubel Tadesse

zUnity for Democracy and Justice (UDJ), the newly established political party by the former Coalition for Unity and Democracy Party (CUDP) majority has submitted a letter to the National Electoral Board of Ethiopia (NEBE), seeking accreditation, Capital learnt.
On Wednesday, July 9, 2008, UDJ submitted 358 pages supporting documents alongside the accreditation request letter signed by Chair Birtukan Medeksa.
The support documents include founding members' signature which amounts to close to 5000 and party bylaws. UDJ's program, which is among submitted documents, explains that amendments in the nation's constitution are due in order to realize the goals stated. UDJ's Chair Birtukan had explained in a Capital exclusive that such moves will only come in accordance with the constitution itself.
Similar to most Ethiopian opposition groups, UDJ too says it follows individual rights led, constitutional based democratic ideals. It also says that it reserves some room for philosophies that may result from social democracy and consensuses if it finds it to be in the best interests of the nation.
In UDJ bylaws, similar to that of the former CUDP, major responsibilities are in the hands of the National Council [Supreme Council in case of CUDP] which has 60 permanent and fifteen alternate members. This council can fire top party officials including chair and the four vice chairs with two third votes when it finds it appropriate. The executive committee which includes the chair, vice chairs, and secretary has a total of eighteen members. The top job that went to Birtukan doesn't empower much authority over party dictat, which is according to UDJ's first press conference a few weeks ago, in accordance with the collective leadership the party would like to introduce.
Among vital wining areas the divided former CUDP parts are fighting over, UDJ claims a strong hold in the support chapters established by diaspora Ethiopians. The last step for UDJ before it can position itself in Ethiopian politics is accreditation from NEBE.
In the last few months UDJ and NEBE engaged in discussions which weren't very smooth. UDJ had sought support letters from NEBE to collect the signatures it needed while NEBE saw no legal grounds to respond to the request. When police reportedly aborted the scheduled June 14, 2008 founding congress, UDJ was again seeking NEBE for a rescue but top NEBE officials were reported stating that pre party formation assistance doesn't fall under their jurisdiction. Finally, UDJ held its founding congress and elected leaders on Wednesday, June 18, 2008 and last week, submitted an accreditation request to NEBE.

Elders’ council secures more pardons

By Kirubel Tadesse

The Ethiopian Elders’ Council (EEC), which is led by academician Professor Ephraim Isaac and renowned athlete Haile Gebreselasie, has secured yet another round of pardons, that has freed thirty one prisoners that had been convicted in connection to unrest after the May 2005 elections that resulted in the former Coalition for Unity and Democracy Party (CUDP) leaders and supporters detention for 20 months, before being released by EEC initiative.
The EEC in its statement last July 8, 2008 has praised the government for what it calls a courageous step. It also appreciated the patience of prisoner who are still awaiting to be pardoned, which the councils hopes will be soon.
The elders’ signal role that secured the Ethiopian government’s pardon to reunite thirty one prisoners with their families Tuesday, July 8, 2008, was first recognized when top former CUDP officials were released on the eve Ethiopian millennium celebration back in August 2007. It had taken months of a series of talks for the council to what resulted in a state of relative political stability amid the colorful millennium celebrations. Most of the pardoned former CUDP leaders have now re-engaged in politics as the pardon envelopes full constitutional rights.
In connection with the Ethiopian millennium, the government has so far pardoned thousands of prisoners including what some international human rights groups, including Amnesty International, regard as political detainees.
On September 2007, about 17,000 prisoners were released by the Federal and regional governments. The Ministry of Justice had stated that detainees in regional prisons had appealed for clemency and their requests were reviewed by the regional boards of pardon and it was granted by the respective regional presidents. Accordingly, 19 prisoners from Gambella, 60 from Harari, 4,995 from Southern Nations, Nationalities and Peoples’ State, 1,800 from Tigray, 458 from Benishangul Gumuz, 3,108 from Amhara, 6,942 from Oromia and 308 prisoners from federal prisons have been freed. Capital had reported that a female convict [an operative of the Oromo Liberation Front (OLF)], who had death sentence commuted to life behind bars, was among the pardoned prisoners.

Roads renovation reaches 850 mln Br last year

By MulukenYewondwossen

The Ethiopian Road Fund (ERF) has utilized 850 million birr for road renovations carried out by the Ethiopian Roads Authority (ERA) for the Ethiopian fiscal year that ended thirteen days ago.
Ziade Woldegebriel, general manager of ERA and board member of ERF, at a press conference held on July 10, 2008 stated that the Road Fund office has budgeted over 3.3 billion birr for roads renovation, since its establishment ten years ago.
“The Authority is maintaining 20 thousand km of roads in ten districts whenever necessary and on an annual basis. The cost for the work is covered by ERF,” said Ziade.
The budget that the Road Fund allocates for road renovation has grown by 60 percent as compared to the 118 million birr it budgeted during the first year of ERF’s establishment. ERF is also involved in supplying maintenance equipment required for the renovation and for capacity building of the Authority.
ERA controls over 43,000 kms of asphalt and gravel road in the country, 95 percent of the transport network of the country. Of these roads over 50 percent are in very good condition, 29 percent are acceptable and the rest are under upgrading.
According to the Ministry’s nine-month performance report, though the Fund’s target was to collect over 752 million birr, it collected only 352.1 million birr, or 47 percent of the target.
The Fund, which collects and distributes resources among the regions for the renovation of roads, mainly derives income from tax levied on the sale of petroleum. It is forming a committee with members drawn from Ethiopian Roads Authority (ERA) and the Transport Authority which will look into alternative sources of raising funds.
In the last nine months of the fiscal year, the Fund planned to inject 959.67 million birr into renovation works, but actually realized only 401.18 million birr.

Addis to host pioneer textile, garment fair

By MulukenYewondwossen

The Ethiopian Textile and Garment Manufacturers Association (ETGMA) is organizing a first ever international textile and garment fair in Ethiopia in Addis Ababa, November 9-12, 2008. The fair will bring together textile, garment and other related goods manufacturers, including equipment, chemical and other inputs suppliers from across the world.
Kasaye Mekuria, president of ETGMA, told Capital the fair would have a positive impact for the sector and to the county’s economy.
For the realization of the Fair, the association is working with Total Textile and Garment Services; a local company that has experience in organizing textile and garment fair in other African countries. Moreover, the association is working with the Ministry of Foreign Affair (MoFA) and Ministry of Trade and Industry (MoTI).
“Currently the Association is preparing to distribute information about the fair to international participants. We expect more than 30 foreign exhibitors from different countries,” said Kasaye.
According to Kasaye, the Fair will host technical seminars as an international venue to provide a global dimension in networking and experience sharing. The international textile and garment fair is expected to be an annual event.
The Fair is expected to enhance the exhibtors access to new markets and provide a comprehensive forum for increased business in textile, garment and the allied industries notably chemicals, machinery, components and accessories.
During the last fiscal year, the country earned only 12 million dollar from the export of textiles and the garment sector but government ambitionaly plan to increase this income to 500 mln USD by 2010.
For the improvement of the textile and garment industry, government envisions to transfer state factories to private ownership.
Former public textile enterprises in Diredawa, Awassa, Mojjo and Arbaminch are working on expansion projects. In addition, in Alemgena, Adama, Adwa and Mekele private textile industries are under construction. Turkish and Indian investors are interest to engage in textile and garment investment, including cotton plantation farms.

Court hears medical director’s testimony on Teddy Afro trial

By Tedla Yeneakal

The Federal High Court, 8th Criminal Bench on Friday, July 4, 2008, heard testimonials from the Medical Director of Menelik hospital, who had presented the medical reports of the vehicle accident victim, for which singer Tewodros Kassahun a.k.a Teddy Afro has been jailed after being suspected of the hit and run incident.
The case has adjourned for a verdict to Monday, July, 21, 2008.
Fans of Teddy Afro expressed their concern that the final ruling will be delayed to next Ethiopian year, as the courts will close a day after the appointment, for 2 months.
Teddy was jailed a few 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.
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 lives.
Teddy pleaded not guilty to driving without a license and negligent driving.

Eritrean refugees in Ethiopia protest against Egypt, Libya

By MulukenYewondwossen

Eritrean refugees in Ethiopia here in Addis Ababa protested against the illegal actions the governments of Egypt and Libya commit on Eritrean refugees in the two countries, on Monday July 7, 2008, The protest march was facilitated by the Eritrean Immigrants Coordinator Committee in Ethiopia.
According to the coordinators, Egypt and Libya are forcibly deporting and transferring Eritreans to the Eritrea government illegally. “The international community should push the two countries to stop their act,” they said.
Over 350 Eritrean protesters holding various slogans expressed their protest at the embassies of Egypt and Libya, at the African Union (AU), the European Union (EU), United Nation Humanitarian Committee for Refuges (UNHCR) and to Prime Minister Melese Zenawi.
According to the release, the Egyptian government had given 700 refugees political asylums out of 1600 Eritrean prisoners in Egypt. The release referred that based on some international human rights organizations information, currently, the Libyan government is preparing to transfer 500 Eritrean prisoners from the 1200 who have been imprisoned in Libya.
The release explained that the two governments should respect the conventions of UN, AU and international humanitarian organization and called upon world’s nations to bring to attention the plight of Eritrean refuges suffering in Egypt and Libya.
Currently over 30 thousand Eritrean refuges are in Ethiopia. The Washington-DC based human rights group, International Christian Concern (ICC) has stated that Egyptian authorities deported 400 Eritrean refugees on June 11 and 12. ICC also received reports of the deportation of additional Eritreans after June 12. The deportees face torture, prison and even execution on returning to Eritrea.

eLearning localization launches

By Our staff reporter

In the next academic year universities across Ethiopia will be beneficiaries of a new eLearning localization project supported by the Engineering Capacity Building Program (ECBP) which will make 47 courses in Civil Engineering and Electrical Engineering available to the respective departments in faculties of engineering.
A training workshop was underway last week for instructors of four universities; Jimma, Mekelle, Bahir Dar and Addis Ababa so that they can develop the eLearning courses for the rest of the universities to utilize. This is the first time in Ethiopia that blended courses, a mixture between face to face and using computers and internet, will be used in such large numbers.
A German-Ethiopian research team has selected the courseware for the eLeaming
program after positive results were seen. The courses for Civil and Electrical Engineering can be covered largely by preexisting open source software.
eLeaming will bring a great deal to the Universities. One of the most important things
that this will do is free up instructors’ time so as to alleviate the shortage of teaching staff in universities which only stands to get shorter as the numbers of students increase at high rates.
In addition to training the instructors in the development of eLeaming courses, ECBP is assisting them in the formation of an eLearning network so that all the universities can work together and cooperate on the necessary components of courses and ensure that all relevant material is included.
eLearning is a part of ecbp’s University Reform Component which aims to strengthen the university system in Ethiopia. ecbp is an Ethiopian program established under the Ministry of Capacity Building. It works towards creating employment opportunities for students through reform of University’s faculties of technology, TVET reform, improved infrastructure of Ethiopian products to be competitive in the world market and strengthening the private sector which ECBP considerers to be the engine of development.

Dubai Sultan to construct oil pipeline Rehabilitate Ethio-Djibouti railway with $2 bln

Common front for non-oil producers

OiLibya buys Shell

PM appoints director general for newly set up maritime authority

Following a Meles push, parliament forms taskforce to test Auditor’s General find

Gov’t lifts tax on shoe accessories, cotton

Ries Engineering to establish construction, spare parts warehouse

Ethiopia incurs over 22mln USD added cost from Djibouti tariff rise

Road authority awards 1.45 Bln Br project to local companies

Mandatory inspection for coffee producers, exporters

British aid to Ethiopia rises to $50mln

City to take back condos

Commission to construct headquarters

Women Micro Finance Bank forming

Ethiopia hit by diesel shortage

Wegagen to acquire 40 mln USD of IT pipeline

UDJ awaits electoral board accreditation

Elders’ council secures more pardons

Roads renovation reaches 850 mln Br last year

Addis to host pioneer textile, garment fair

Court hears medical director’s testimony on Teddy Afro trial

Eritrean refugees in Ethiopia protest against Egypt, Libya

eLearning localization launches

MORE

Dubai Sultan to construct oil pipeline Rehabilitate Ethio-Djibouti railway with $2 bln

Common front for non-oil producers

OiLibya buys Shell

PM appoints director general for newly set up maritime authority

Following a Meles push, parliament forms taskforce to test Auditor’s General find

Gov’t lifts tax on shoe accessories, cotton

Ries Engineering to establish construction, spare parts warehouse

Ethiopia incurs over 22mln USD added cost from Djibouti tariff rise

Road authority awards 1.45 Bln Br project to local companies

Mandatory inspection for coffee producers, exporters

British aid to Ethiopia rises to $50mln

City to take back condos

Commission to construct headquarters

Women Micro Finance Bank forming

Ethiopia hit by diesel shortage

Wegagen to acquire 40 mln USD of IT pipeline

UDJ awaits electoral board accreditation

Elders’ council secures more pardons

Roads renovation reaches 850 mln Br last year

Addis to host pioneer textile, garment fair

Court hears medical director’s testimony on Teddy Afro trial

Eritrean refugees in Ethiopia protest against Egypt, Libya

eLearning localization launches

Dubai Sultan to construct oil pipeline
Rehabilitate Ethio-Djibouti railway with $2 bln

Dubai Sultan to construct oil pipeline
Rehabilitate Ethio-Djibouti railway with $2 bln