Capital

Meles emphasizes double-digit growth,
opposition rejects it as ‘cooked data’

By Kirubel Tadesse

NBE to tighten money supply Increases reserve ratio to 15%

By Groum Abate

‘Ethiopia should take Country Reports on Human Rights seriously’Ambassador Yamamoto

By Kirubel Tadesse

Tax lift on food costs gov’t over 350mln birr

By Tedla Yeneakal

Enterprise evaluates consultants bid documents

By Tagu Zergaw

Fertilizer price hits $1,000/ton

By Abiy Demilew

AACRA to construct roads in three directions of city

By Muluken Yewondwossen

MORE
EBA to give out one more license for commercial radio

By Abiy Demilew

Ministry, WB agree on $100 mln loan

By Addis Mulugeta

Gov't closing shops for price hiking

By Groum Abate

Lufthansa, Ethiopian launch codeshare flights

By Our Staff Reporter

FIRA holds new income tax regulation

By Groum Abate

Industrial zone to be established on 5km square land

By Muluken Yewondwossen

Designers return from India fashion tour

By Kirubel Tadesse

German corp. sets up shoes manufacturing in Kaliti

By Tedla Yeneakal

Former CBE managers court case in deadlock

By Tedla Yeneakal

Court release black market suspects on bail

By Groum Abate

National Bank deputy governor in the US amid gold scandal

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Electoral Board ridicules UDJ request UDJ starts collecting signatures this week

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India to collaborate with Ethiopia in leather sector

Exim Bank sign $30 mln LC for Afrexim Bank

MEWIT facilitates goods supply

By Addis Mulugeta

Wise up sponsor’s 100 female sex workers on 5Km run

By our staff reporter

Sub-Saharan sanitation problems set for 2076 solution

By Muluken Yewondwossen

5th Ethiopian coffee contest

By Addis Mulugeta

Meles emphasizes double-digit growth, opposition rejects it as ‘cooked data’

By Kirubel Tadesse

In one of the most heated debates televised from the state’s power house, the House of Peoples’ Representatives, Prime Minister Meles Zenawi has insisted that Ethiopia is witnessing consistent and healthy economic progress, registering more than 10% Gross Domestic Product (GDP) growth in the last five years and with the last six month performance projecting 10.8% GDP growth for this year.
Healthy Economy?
“The Government has set two fundamental and clear goals in the economic field for the current budget year. The first was to sustain the fast economic growth which we have recently achieved, and continue to keep economic growth rate of not less than 10%, “Prime Minister Meles explained to the House, “the other goal was to increase our export trade by not less than 25%. Anchored on the fast growth, and taking advantage of the capacity that we derive from it, another goal was to stabilize the price of commodities and control inflation.”
According to the PM, in regard to sustaining fast growth, this year, like in the previous several years, Ethiopia has been successful. “On the basis of available evidence, our economy will grow at no less than 10.8% this year. There is no doubt we are set to register over 10% growth for the fifth year running,” stated Meles. “The other aim for export, to grow at over twice the rate of our economic growth, is satisfactorily on course. The fact that our export trade has grown by 32% in the last eight months, proves that our goal for the year will be achieved successfully.”
Meles explained that the growth the Ethiopian economy has been registering is essentially a healthy one. Meles affirmed that as planned, the general economic growth and the export trade growth are achieving satisfactory results. His view wasn’t shared by Opposition Members of Parliament.
In a comment which resulted in some Ethiopian Peoples’ Revolutionary Front (EPRDF) MP’s requesting for deduction of speech time and disciplinary measures, Opposition MP Merara Gudina (PhD), pointed out that the people of Ethiopia don’t buy the story of economic growth. “The claimed economic growth in the report isn’t benefiting or transforming the lives of poor Ethiopians for the better, “Dr. Merara said,” economists explain these kinds of activities as cooking the data, where the reported economic growth doesn’t reflect the real condition of the people.”
“Let alone EPRDF, God himself can’t convince us of economic growth”, Dr. Merara said throwing one of his funny but sour remarks, to which Meles asked the Deputy Speaker of the House’s permission not to reply, for fear of ‘disrespecting the House’s dignity.’ Dr. Merara asked the PM to evaluate the source of his data which showed the reported economic growth.
Temesgen Zewidie (MP) also denigrated Meles’s claim that explained the Ethiopian economy as a strong one. “How can we claim that the economy is healthy, when it is a fact that nine million Ethiopian are starving? “, asked Temesgen,” Mr. Prime Minister, you should look at what Human Development Index (HDI) says about Ethiopia, rather than focusing on GDP growth alone.”
Lidetu Ayalew (MP) also stated that it was very difficult to share the PM’s standpoint and declare the economy as healthy bearing in mind the current status of the nation. “When we say the economy isn’t healthy, we don’t mean that there is no economic growth or there is nobody that is benefiting from the development,” explained Lidetu,” there is visible economy growth in the country which is benefiting the society but what we always expect from the PM’s report is that, how much basic economic structural transformation are we achieving as our economy progresses.”
According to Lidetu, unless Ethiopia’s economic growth is shown transforming the country’s structural base, it can not be regarded as consistent and healthy. He also accounted that there are people left behind in the economic drive. “There is a problem of distribution we should address before we regard our economy in the pink,” Lidetu added.
Meles, commenting on Lidetu’s remarks, explained that the economic growth distribution is a just one even if it is a pity that some people aren’t taking their share. “We can say for sure that 85 % of our population who are living in rural areas are benefiting from the country’s economic growth. Of course the extent of benefits can differ. We can also be sure that people who are skilled and educated are benefiting from the growth since there were salary increments by the government, which the private sector followed suit to some extent,” Meles explained,” here we should be very clear when we state who isn’t benefiting from the growth. It is only those in urban areas who have very low income, like those who depend on village markets and alike, which aren’t benefiting as they should. The majority, 85 %, of the country’s population plus the majority of the urban population is benefiting. Of course, it is a pity and a pointer for more hard work that those with low income in urban areas aren’t getting their share in the growth.”
Opposition MP, Bulcha Demekisa, asked the Prime Minister to unveil the population growth findings in order to get a clear picture on the economic growth. “We can’t say the economy is growing or not,” Bulcha stated, “first, we should know what the population number is, is it incrementing or it is because it is lowering that our economy is growing? With out this key data, how can we claim the economy is growing?”
Inflation...
“The aim of eradicating poverty and resolving the economic problems of society can only be sustained by ensuring fast growth. To focus on fast growth, more than anything else, therefore, is correct and necessary,” explained Prime Minister Meles, “Indeed, the impressive growth that we had achieved in the last four years, and again this year, proves we are succeeding in this respect. That is indeed encouraging. As long as fast growth is achieved, it is a matter of time before we have the capacity to resolve inflation and all other economic problems. “
Addressing inflation concerns before they were raised by Opposition MPs, Meles on his report explained that worsening inflation has created a difficult situation for low income urban dwellers. He assured the House that the economy is too strong to suffer from inflation, which he exemplified as a common cold trying to harm a strong healthy man. Taking the opposite stance from Lidetu, who regards the country’s inflation as high blood pressure, which will bring down unexpectedly those who seem to be strong and healthy. Meles explained to the House and Opposition MPs in full confidence that the economic growth is unstoppable and even if setting an exact date is not possible, controlling inflation will not take too long.
The way forward...
Meles admitted that the causes of the inflation Ethiopia is experiencing are varied and complex. “As the current inflation is caused by structural changes in the global market, the problem cannot be tackled by Ethiopia alone, “Meles stated,” it is obvious we do not have the economic capacity to control the global market. Despite this, there are various steps that can be taken to minimize the damage.”
This remark by the PM seemed to upset Opposition MP, Temesgen, who stated that the remark isn’t expected from the executive who is responsible. “Rather than explaining the solution, what we are hearing from the PM is that the government can do nothing since the inflation is a result of global impact,” stated Temsgen,” even if I don’t expect it, what the executive should do at this time, when it can no longer do its job, is to tell the House that it wishes to resign.”
Prime Minister Meles underlined that the only sustainable solution to tackle inflation is to increase income. Lidetu Ayalew shared his view, after pointing out that his party has been trying to make this point in the last two years, which the House failed to support when it was proposed for an agenda.
“To withstand the impact of global inflation, the country’s economy has to grow rapidly and thereby increasing the income of the population. It is with this conviction that the Government has given priority to efforts aimed at realizing rapid economic growth and has taken various measures to increase the income of the population including that of civil servants, “further explained Meles,” These measures are significant in ensuring lasting solutions and deserve utmost attention but they also have their limitations; the first problem is the length of time necessary for implementation. Living conditions can be significantly affected before these fundamental solutions are implemented. The Government will have to take appropriate temporary measures, as far as possible, to minimize the burden on the public. Equally, it is important to ensure that the temporary measures taken to stabilize the situation will not have any adverse effect on the longer- term sustainable solutions or on the economy as a whole.”
Bulchea proposed to the Prime Minster that instead of establishing a special force to monitor prices rated by the traders, the government should compute them and eventually make them lower their prices on commodities by offering the public the commodity at a lower price. He explained that controlling prices hasn’t worked for Egypt or Benin in the last years, and it certainly won’t work for Ethiopia.
The Prime Minister didn’t accept the proposal, stating that trying to offer wheat for example, buying from the world market, transporting to the local market and offering it at a reasonable price for Ethiopians, is simply unthinkable in the government’s capacity.
“In the last few years we have spent 3.52 billion birr to subsidize fuel and another 372 million birr on wheat. In addition to direct subsidy, the Government has been providing indirect support to alleviate the burden by fully exempting the duty levied on imported cement, at a cost of 387.8 million birr. This allowed the construction sector with its significant work force to continue to flourish,” explained Meles about his government efforts to tackle the inflation, “we have made a decision to continue provision of subsidized wheat to low income urban dwellers. A decision has been made to continue the policy of step-by-step alignment of the local fuel prices to the world market, rather than transferring the global increase immediately to the local consumer. I can also say, we have decided effective from tomorrow, to lift Value Added Tax and Turn-Over Tax on grains.”
Meles urged Government authorities at various levels to give legal recognition to organized consumer associations which he called on the public to establish. The move was praised by Dr. Merara.
“I would like to take this opportunity to affirm that the Government is determined to control inflation and will continue to take appropriate measures. At present, inflation in Ethiopia is public enemy number one, “ Meles concluded,” I would like to reaffirm to this House that the Government will take decisive and effective measures in order to crush this enemy. I am convinced that we will succeed.”

NBE to tighten money supply Increases reserve ratio to 15%

By Groum Abate

Ethiopia’s central bank announced Friday it is raising the required reserve ratio for commercial banks by half a percentage point as of March 21, to 15 percent.
This increase, the second this year, comes a month after the ratio was raised by half a percentage point in the last few months from 5 to 10 percent.
The National Bank of Ethiopia (NBE) introduced the new directive on the amount of money banks are required to hold in reserve and on the ratio of liquidity requirement.
Taking the root causes of inflation into consideration, the NBE said it is making efforts towards pressing down the inflation rate to less than 10 percent by reducing the amount of money circulating in the market and by taking additional measures.
The monetary policy measure has taken the lending capacity of the banks and the amount of money that should be circulated in the economy into consideration, NBE said.
Similarly, the liquidity requirement ratio the banks are required to put in reserve has increased to 25 percent from 10 percent.
The adjustment, part of a stringent monetary policy, is to draw back excess liquidity at banks and curb the overly-fast credit growth.
Excess liquidity is a major challenge for the government as it could result in bubbles and economic overheating.
The increase in monetary circulation, the inflation that occurred in the international market, the rise in the income of people in rural areas as well as the elevated price of construction materials are some of the causes of the high rate inflation the study conducted by the NBE has identified.
The hike of the reserve requirement will have limited impact on the loans extension at big state-owned commercial banks, but have far bigger impact on that of mid- and small-sized banks in the country, a bank expert commented.
The policy reform was made with a view to harmonizing the amount of money in circulation with the economic growth the country is registering.
Addressing the parliament in his six month report Prime Minister Meles Zenawi said that “The aim of eradicating poverty and resolving the economic problems of society can only be sustained by ensuring fast growth. To focus on fast growth, more than anything else, therefore, is correct and necessary,” Meles on his report explained that worsening inflation has created a difficult situation for low income urban dwellers. He assured the House during his presentation that the economy is too strong too suffer from inflation, which he exemplified as a common cold trying to harm a strong healthy man. Meles explained to the House in full confidence that the economic growth is unstoppable and even if setting an exact date is not possible, controlling inflation will not take too long.

‘Ethiopia should take Country Reports on Human Rights seriously’Ambassador Yamamoto

By Kirubel Tadesse

US Ambassador to Ethiopia, Donald Yamamoto, said that the Country Reports on Human Rights Practices 2007 report on Ethiopia is accurate and Ethiopia should take it very seriously.
In an exclusive interview Ambassador Yamamoto gave Capital on Friday, March 21, 2008, he explained that the congressionally mandated annual report of the Bureau of Democracy, Human Rights, and Labor of the US Department of State, doesn’t designate Ethiopia among the worst countries category, as ‘a country of concern’, but it is very reliable on its report of the last three years in Ethiopia.
“We try to verify all the facts and get two, three or more sources and references that don’t know and influence each other,” explained Ambassador Yamamoto. “It isn’t to say it is completely fool-proof but over- all, the report is the best as far as accuracy and information is concerned.”
Wahide Belay, Spokes person of the Ethiopian Ministry of Foreign Affairs (MoFA) told Capital that the report is biased, untimely and most importantly, inaccurate. According to Wahide; “the report makes baseless allegations about political prisoners, killings and other violations. “He added that it could be because that the report of the Bureau was copied, with out verification, from the statements of various groups which disseminate the erroneous reports to serve their political interest.
Commenting on MoFA’s statement which said that the timing of the human right report is unfortunate and it appears to be dwelling on events of 2005 in an effort to paint a darker picture of the country, Ambassador Yamamoto said that the reasons 2005 conditions were included in the 2007 report was because the report has been compiled for the last three years. “If next year we find more information about 2005, it is going to be there,” added the Ambassador, “the reported incidents are serious but, the more important issue is that the need to conduct capacity and institution building. “
“On the export side, we are the fourth largest purchaser of Ethiopian goods and in the last couple of years it has been doubled to over 81 million USD, “explained Ambassador Yamamoto, on growing bilateral investment ties “the reason is now, AGOWA is kicking it and we brought in a buyers group last year in May, and we are hoping it will double triple over the next year or so.”
On this exclusive interview, Ambassador Yamamoto commented on several issues including why Ethiopia hasn’t been included in presidential itineraries and Washington’s stance on Ethiopian involvement in Somalia, where he stated that it is too early to refer the intervention as a success or failure. Capital will feature the Ambassador’s full interview in next week’s edition.

Tax lift on food costs gov’t over 350mln birr

By Tedla Yeneakal

The lifting of the Value Added Tax (VAT) and Turn Over Tax (TOT) on food grains and flour costs the government approximately 350 million birr; earnings the Ministry of Revenue (MoR), would have collected if the taxes had stayed in force for the six months of the remaining fiscal year, according to a study conducted by a team from the Ministry of Revenue.
Zeru Gebre Selassie, head of tax reform at the MoR, told Capital that the study indicates the stated sum in non-collectible tax revenues falls within the range of 350-400 mln birr.
“In the past six months alone, the TOT revenue from the Southern region was 15 million birr and revenue collected from flour companies operating exceeded 100 million birr,” Zeru said. “The lifting of the two taxes has an enormous impact on the food market, considering the huge revenue the Ministry would be loosing.”
On Tuesday, March 18, 2008, Prime Minister Meles Zenawi announced that the government had lifted VAT and TOT on food grains and flour to reduce the impact of high inflation on poor citizens.
Meles said the schemes are aimed at minimizing the impact of high fuel prices and the worsening inflation domestically as well as the international crisis.
The government currently subsidizes fuel, food and cement to the tune of 5 billion birr annually.
VAT was first introduced in January 2003. According to the legislation, VAT is imposed on the supply of goods or rendition of services in Ethiopia in the course or furtherance of a taxable activity and also on import of goods and services to Ethiopia other than exempted ones. Currently, VAT is administered by the Federal Inland Revenue Authority, Customs Authority and Regional Finance bureaus (in some of the regions that have already taken the responsibility of administering VAT from the Federal Inland Revenue Authority). It is based on the invoice credit method in which taxpayers are given credit for the VAT paid on inputs when it is supported by proper invoices and import declarations. It is also based on destination principle in that imports are taxed but not exports.
In the first half of the Ethiopian fiscal year, the MoR collected 9.729 billion birr, slightly missing its target of 10.246 billion birr. Out of the revenue collected, the Customs Authority accounted for 55.69% of the total, whereas the Federal Inland Revenue Authority comprised 44.18%, the remaining being registered by the National Lottery. All are accountable to the MoR.
As compared to the same period previously revenue has increased by 2.826 billion birr (40.94%).

Enterprise evaluates consultants bid documents

By Tagu Zergaw

The Ethiopian Airports Enterprise (EAE) is finalizing the evaluation process to announce the winner of the tender that the Enterprise summoned for consultants. Both local and international companies have submitted their documents and the announcement is expected in the next two weeks.
In addition to the tender EAE is also expected to launch the Bar Coded Boarding Pass (BCBP) system at Bole International Airport during the same period. This makes the Airport the first in Africa to have such system.
Eyob Estifanos general manager of EAE told Capital that the consultant that the Enterprise awards the tender will consult the Enterprise to achieve a better management system.
“The BCBP is more likely to be started in the Airport during the remaining weeks of the month,” Eyob said.
If everything is completed on schedule, EAE has made it two years ahead of the International Air Transport Association (IATA) deadline. The system will be in use for both domestic and international flights.
BCBP will enable passengers to print their own 2D bar coded boarding passes at home or anywhere else and proceed directly to baggage drop off and security and on to their boarding gates.
According to EAE, the system will simplify the check-in and boarding process for the more than 2.2 million passengers that use the airport each year. Since the equipments in the Airport must be compatible with the new technology, EAE has extended the contract with SITA for another five years.
As per the contract that was renewed in February 2008, SITA will replace all the current printers at the airport with 2D bar code-compatible machines and install bar code readers. SITA will also install SITA Bag Manager which provides customer airlines with fully managed, shared–use of baggage systems.
SITA whose headquarters is in Geneva, Switzerland, is a service provider of integrated IT business solutions and communication services for the air transport industry. SITA manages complex communication solutions for its air transport, government and GDS customers over the world’s most extensive communication network, complemented by consultancy in the design, deployment and integration of communication services. Its broad range of airline and airport IT applications and services includes airport operations and integrated baggage services, common use and desktop services, flight operations, air-to-ground communications and end-to-end airline distribution and fares services. SITA has revenues of 1.5 billion dollars as of 2006.

Fertilizer price hits $1,000/ton

By Abiy Demilew

For the first time in history, the DAP price hit the 1,000 dollars/ton threshold on the world’s market.
The DAP market has been in a fever since the three invitations for bids to buy 700,000 tons of DAP from Ethiopia, Iran and India.
Ethiopia has issued a tender for 75,000 tonnes of DAP and plans to import 350,000 tonnes of DAP in total.
The state-owned Agricultural Input Supply Enterprise (AISE) and two private trading companies (Ambassel and Wondo) have been dominating the fertilizer sector over the last years, holding about 80 percent of the market. However, since 2005, an increasing number of cooperative unions operate on a regional basis, importing about 177,000 tons of fertilizer. Currently farmers’ cooperative unions provide about 41 percent of the national supply of DAP and urea.
DAP is now being sold on the world market at a four-figure price never seen before. Last January, DAP was ruling at 300 dollars per ton.
The rise in manufacturing costs due to more expensive phosphoric acid, sulphur and natural gas, plant outages and the recent ban on exports by China have added in making DAP move up strongly.
Importers are worried that DAP prices will further increase. It is estimated that the DAP supplies will decrease by 700-800,000 tonnes in the first six months of 2008.
Fertilizer was first introduced to Ethiopia in 1967 following four years of trial carried out by the government with assistance from FAO’s Freedom from Hunger Campaign. Fertilizer consumption by the peasant sector rose from 14,000 MT in 1974/75 to 50,000 MT in 1979/80. Annual consumption is reported to have surpassed 200,000 MT by 1993/94 Over 80 per cent of the fertilizer is applied to cereals and 45 to 50 per cent of this is estimated to be used on the major staple, teff, with the remainder being applied on wheat, barley, maize and sorghum. Coffee, despite its importance as the major export crop, receives very little fertilizer. Shoa, Gojam and Arsi regions account for over 75 per cent of the total fertilizer consumed by the peasant sector. But even in these regions only about one-third of the farmers apply fertilizer and their rate of application is much lower (less than 50kg/ha) than the recommended rate (which is 150 kg/ha).

AACRA to construct roads in three directions of city

By Muluken Yewondwossen

The Addis Ababa City Roads Authority (AACRA) is to start construction of six new asphalt roads on three sides of the city, during this fiscal year. The budget for the new roads will be from this year’s 1.61 billion ETB the City Administration has allocated for road construction.
Niguse Sineshew, ACCRA public relations head, told Capital that from the six roads the longest one built on 8.3 kms and will extend from Gurd Shola Summit to Yeka Bole area
The road from Adwa Square to Megenagna and the Ayat area,that extends for six kms, will also be constructed this year. The right side of this road was completed last year in August 2007.
In the Western part of the city the other two roads that will be built are the 3.4 Km road that extends from Ayertena to Alem Bank and from Alem Bank to Tatek.
According to Niguse, the construction of the asphalt road that goes from the Netherlands Embassy to Yeshi Debele is currently being undertaken constructed by MIDROC Construction.
The 2.2 Km road that is from Mickey Leyland road to Traffic Sefer (Kolfe) where the City Housing Development Agency constructed more condominium houses than in any other area, is one of the roads to be constructed on the Western side of the City.
On the South a 2.6 km asphalt road project will be constructed from the city tip ring road to Bisrate Gebreal. A 4.3 km road from Meskel Square to Bole International Airport is the other project that is planned to be started at the end of April.
The design of indicates that there will be three junctions on the project namely; Olympia, Wello Sefer and Rwanda.

EBA to give out one more license for commercial radio

By Abiy Demilew

Ethiopian Broadcasting Agency this week has announced that, it will give out one more license for a commercial FM in foreign language transmission.
In a statement EBA issued, the agency declared that a new FM frequency will be given out for a commercial radio in order to reach the big international community living in Addis.
Desta Tesfaw, Deputy Director Genral, EBA, told Capital that the new radio license to be given out should be in anyone of the international languages and targeted to reach the international community living in Addis.
“We now have five FM stations running in Addis and all of them are in Amharic. That means there is no way the international community living in Addis gets information about the country,” Desta disclosed Capital.
According to Desta, the international community needs to have a station where it gets information, News and entertainment while living and working in Addis. “Based on our recent study, we have seen the importance of giving out the frequency to reach this target audience.”
Since Addis is a seat for a number of regional and international organizations, embassies and delegates; the agency found it important to inform this target group about the overall activities of the country, according to Desta Tesfaw, on phone exclusive with Capital.
“The station will only operate based on the country’s broadcast law in place like any of the running stations, fulfilling the conditions and criteria” and according to the law, 60% coverage of each station operating in the state should cover home issues.
Asked about if they have received applications, the Deputy Director General said “We are now waiting for applications after the announcement is made. But we don’t have one yet.”
EBA, who gave out two licenses two years ago, will continue to license more stations depending on demand, According to Desta.
In 1999, a proclamation to provide for the systematic management of broadcasting services came into force after approval by parliament. The Ethiopian Broadcasting Agency is established as an autonomous Federal Administrative Agency having its own legal personality.
The objective of the Agency is stated to ensure the expansion of a high standard, prompt and reliable broadcasting service which can contribute to the political, social and economic development of the country. The Agency provides radio and television licences.

Ministry, WB agree on $100 mln loan

By Addis Mulugeta

The World Bank (WB) has agreed to loan 100 million USD to the Ministry of Works and Urban Development (MWUD) to be spent on the frameworks of Environmental and Social Management (ESMF) and Resettlement Policy (RPF) and to foster development efforts in various towns.
According to Dr. Abraham Tekeste, Head of Research on Policy and Planning.
of MWUD, the Bank had been was reviewing the frameworks that focus on strengthening the efforts of development in every directions of the country. The frameworks are essential to protect and control damage to natural and social settlements.
“It is believed that the money will be used to strengthen good governance and development of local towns,” said Dr. Abrham on a conference held on March 17, 2008.
The project that is responsible for the practice of the frameworks is the Urban Local Government Development Project (ULGDP). Through this project in Addis Ababa, Dire Dawa, Oromia, Amhara, South Nations Nationalities Peoples’ Regional State, and towns in Tigray and Harar will be beneficiaries.
“ urban roads, sewerage systems, land development, market place construction and other development works will be conducted,” added Dr Abhram.
ESMF is designed clearly and emphasizes on environmental protection. This frame work emphasizes necessary precautions to be taken not to harm traditional, cultural and historical heritages, natural and physical environments during the project activity.
On the other hand, RPF mainly focuses on saving human property from damage, in order to save the project from compensation costs.
The actual work is expected to commence on September, 2008 and will it will be completed within three years time.

Gov't closing shops for price hiking

By Groum Abate

About 12 cement retailer shops have been closed after they were found escalating prices. The step came after the government announced that it has barred the importation of cement to the country.
In similar fashon 10 pepper shops in the Merkato area were also closed this week after were discovered to have been selling above the 450 birr price tag per quintal.
Prime Minister Meles Zenawi, in his parliament address on Tuesday March 18, said that the government would take severe measures on traders that escalate prices. The action to close these shops came right after his comment.
Prices of commodities were shooting up quite high in the last couple of months that scared many. However after VAT and ToT were lifted on grains prices of commodities are lowering considerably in the last couple of days.
Soap producers also had announced that they would stabilize the market by distributing soap to Kebeles.
They stated that the recent rise in raw materials for producing soap triggered for the rise in the retail price that has gone the by over 200%.
Accordingly, cement and steel prices have risen considerably in the last two weeks affecting the booming construction industry.

Lufthansa, Ethiopian launch codeshare flights

By Our Staff Reporter

Lufthansa German Airlines has announced the start of codeshare flights with Ethiopian Airlines as of March 31st. These flights will operate on the Addis Ababa-Frankfurt route. "We are now in the position to offer our customers daily connections from Addis Ababa to our hub in Frankfurt with convenient onward flights", stated Joachim Steinbach, Lufthansa Vice President Sales and Services, South East Europe, Africa, Middle East & Pakistan.
Ethiopian Airlines Enterprise Chief Executive Officer, Girma Wake, before signing the partnership agreement in June 2007 had told Capital that the airline would be privatized at some point and this partnership accord is a step forward.
In addition to the Lufthansa deal, Ethiopian codeshares with Star Alliance member South African Airways (SAA) and has interline agreements with Star Alliance members Singapore Airlines and Thai Airways International. Last year Ethiopian also struck a codeshare deal with non-allied carrier Gulf Air
With this agreement, the two airlines together provide daily frequency on the Addis Ababa-Frankfurt route increasing the itinerary of choices to the traveling public.
"The codeshare agreement will further strengthen our position on the African continent to further expand our route network", the Lufthansa Vice President Joachim Steinbach highlighted the strategic importance of the partnership with Ethiopian Airlines.
Girma Wake, CEO of Ethiopian Airlines, and Wolfgang Mayrhuber, Chairman and CEO, Lufthansa German Airlines signed the agreement on June 2nd, 2007 in Vancouver, Canada. According to the agreement, the two carriers will launch their codeshare services end of March, 2008, thus providing improved services to customers in terms of more choices of services and schedule convenience.
"This cooperation brings added value in terms of benefits to our customers", Lufthansa General Manager Ethiopia, Serge Soucek said ahead of the launch of the new codeshare flights between Ethiopia and Germany. Since October 28th last, 'Lufthansa Miles & More members' can earn or spend their award miles on the international route network of Ethiopian Airlines, likewise 'Sheba Miles members' have started utilizing services of Lufthansa to accrual and redeem award miles on all its international and domestic scheduled flights.

FIRA holds new income tax regulation

By Groum Abate

The Federal Inland Revenue Authority has announced to employers to wait until further clarifications after it announced that employers, governmental or non governmental should ensure that whatever allowance they pay to their employees including bonus and house rent allowance, is added to their salaries while computing the income tax.
The authority notified employers in the daily Amharic newspaper Addis Zemen to implement the regulation as of February 9 but has now notified them to wait further details of the regulation.
The Authority was forced to postpone the implementation of the regulation after a flood of employers asked for detailed clarification of the regulation.
This was in line with the Council of Ministers Regulation No. 78/2002 issued pursuant to the Income Tax Proclamation No. 286/2002 that states that taxable income from sources chargeable shall be calculated as gross income. The proclamation states that gross income includes all payments in cash and all benefits in kind received by the employee.
Though the proclamation has been enforced for a while now, there have been misunderstanding on the enforcement as what benefits are to be considered part of the taxable income and which ones are not included.
The Authority, considering this confusion, announced to employers to continue their accounting as they used to and wait for further details about the regulation.
Tax paying institutions, companies or others mostly feel that income tax is actually calculated on the basic salaries of their employees, while it should include all type of allowance and other benefits they get from the employer, explained a tax auditor.
The proclamation has excluded payments in cash or benefits in kind for amounts paid by employers to cover the actual cost of medical treatment of employees; allowances in lieu of means of transportation granted to employees under contract of employment; hardship allowance; amounts paid to employees in reimbursement of traveling expenses incurred on duty; and amounts of traveling expense paid to employees recruited from elsewhere than the place of employment on joining and completion of employment or in case of foreigners traveling expenses from or to their country, provided that such payments are made pursuant to specific provisions of the contract.
Furthermore, allowances paid to members and secretaries of boards of public enterprises and public bodies as well as to members are all exempted.
The Tax Authority under the proclamation, is also empowered to determine the amount of payments for transport allowances.
If the Income Tax Authority has reason to consider that the total amount of salaries and other personal emoluments payable to the manager or managers of a private limited company is exaggerated, it may reduce said amount for taxation purposes to the limit which, in view of operations of the company, appears justifiable, either by disallowing the payments made to more than one manager or in any other way which may be just and appropriate.

Industrial zone to be established on 5km square land

By Muluken Yewondwossen

An exclusive industrial village is to be established 32 km away from Addis Ababa in East Showa zone, Dukem town, on five square km of land at a cost of five billion Yuan or more than seven hundred mln USD. The village will host up to eighty different types of projects.
The village will be built by a Chinese company called Eastern Industrial Zone and includes textile, food, shoe, electric items manufacture, garment and construction inputs.
The projects are to be completed with in five years and when fully active, will create job opportunities for more than fifteen thousand people.
The agreement for the projects was signed between Eastern Industrial Zone president, Lu Qiyuan and Tadesse Haile, state minister of Trade and Industry on March 17, 2008.
At the signing ceremony, Lu Qiyuan stated that out of the 80 projects, five will start implementation within a short time.
“The necessary infrastructural works will be constructed at a cost of 2.8 billion Yuan (390 mln USD),” he added.
In a related development, CGC Overseas Construction-Ethiopia another Chinese company, has signed an agreement with the Mines and Energy Ministry, to produce silica sand around Lemi, North Shoa Zone of Amhara region.
The company has allocated over 16.4 mln ETB to carry out mining and has planned to produce more than 2.8 million cubic meters of silica sand over the next 20 years.
The agreement includes that the company has the right to carry out large-scale silica sand mining on 1,000,000 sq. meters of land for 20 years. The license could be renewed for another 10 years upon request.

Designers return from India fashion tour

By Kirubel Tadesse

A group of four Ethiopian designers that were selected from among the Indian Capacity Building Initiative participants have returned home after completing training in India. More than forty designers had participated the capacity building training on female apparel, accessories and life style products (home décor).
The selection of the designers was based on their original designs that received the highest votes at the exhibition displayed at the Indian Embassy in Addis Ababa in connection with the 60th anniversary of India’s Independence Day on January 23, 2007. The exhibition was attended by the diplomatic community and high government officials, including President Girma Wolde Giorgis.
It was 24 days later after the competition that the winners were announced by the Ambassador of India to Ethiopia, Gurjit Singh. The group left for New Delhi on February 28, 2008. The training was given in one of the finest schools in India known Pearl Academy of Fashion until March 16, 2008.
Zewditu Kebede, managing director of Zewditu Tailoring and Embroidery Training Center, is one of the designers who went to Delhi. Zewditu told Capital that sights seen in India have been one of the most useful experiences in her career. “It was beyond our expectations, they gave it a real commitment,” explained Zewditu,” they welcomed us with an amazing gathering and in our tours they assigned a special guide for each day who has expertise in each of the fields.” She further explained that during their visit to the Pearl Academy of Fashion, they were introduced with the students’ projects, the steps they took to come up with novel products and the machinery they use for production. Zewditu is planning to apply the skills she obtained in India to revise the training she gives to her students at her training center.
The comments of the other designers who took part in the tour are also similar. One of them highlighted the motivation Indians carry with them to better themselves. She stated that watching one person riding a bicycle and carrying two persons made her understand how hard Indians work to win their bread, which is essentially the reason behind the economic transformation the nation is registering.
From the Pearl Academy, A K G Nair said that the Indian ambassador in Ethiopia offered them an opportunity to share India’s design experience with Ethiopia. “We are currently in the process of designing a course curriculum in Ethiopia to be used in their fashion institutes and schools,” added the head of the Academy.
Pocket money for the designers, throught the eighteen day tour in India and the fifteen days training in Addis Ababa, which brought three experts form India, was all covered by the Indian Capacity Building Initiative.

German corp. sets up shoes manufacturing in Kaliti

By Tedla Yeneakal

German shoe manufacturer giant, ara shoes has finalized preparations to set up a multi-million birr shoe manufacturing plant in Kaliti, less than 30kms on the outskirts of Addis Ababa.
Company sources disclosed to Capital that the CEO of ARA, Tobias Zimmerer had visited the country in October 2007, reaching agreements with Ministry of Trade and Industry to set up the plant.
Accordingly, the CEO has entered an agreement to work with two local shoe manufacturers, namely Ras Dashen and Kangaro Shoes. However, the source could not specifically state how much the plant would cost.
“It is very difficult to put a figure on it at this stage, but I can definitely say that it is a multi-million project.” The source said.
Zimmerer had received a 100 page report on the Ethiopian Leather Sector Assessment and Benchmarking, carried out by UK consultant, John Avery, before deciding to invest in the leather industry. The report highlights the positive change in the sector, “the finished leather can be 10 times the value of the commonly produced intermediate processed ‘commodity product’, widely available today,” the report reads. “In comparative terms, the finished article can be in the order of 100 times as valuable.”
The German shoe giant, last year reported an annual profit of 190 million euros and employs more than 4,000 at six production sites in Germany, Portugal, Indonesia and Romania. According to the official website, the company established more than 50 years ago, and is stretching its global network, from Austria to India and from Eastern Europe to Oslo.
Currently ara Shoes exports to more than 40 countries world-wide.

Former CBE managers court case in deadlock

By Tedla Yeneakal

The Federal High Court on Friday, March 21, 2008 rescheduled the hearing of 42 former Commercial Bank of Ethiopia (CBE) managers and staff members charged, under the case file of the ex-president, to April 7, 2008, due to the absence of the judge that was supposed to preside.
President of the Federal High Court, Adil Ahmed, himself presided on Friday to inform the court that the case has been called off to the next hearing of the aforementioned date, due to the absence of the main judge of illness.
After seven years of defending their cases in prison, the complexity of the files involved in the trial as well as the multiple change of judges has excessively prolonged the case, according to family members of the defendants.
Tamiru Wondemagen, a lawyer for the majority of defendants, told Capital that initially there was only one file involved and the court suggested that the files be arranged in 29 dissimilar dossiers, reasoning out that it will ease the procedural pace of the court proceedings.
“Their cases have been extremely delayed, due to the repeated changes of judges. When ever a new judge takes over the case, he is entirely new to the issue and needs some time to coherently understand the case,” Tamiru said. “One of the previous judges is still involved in the case although he is out of the city.”
The defendants have been imprisoned since 2001, after being charged by the Federal Ethics and Anti Corruption Commission (FEACC) for alleged abuse of power, contravening the bank’s policies in disbursing loans, benefiting from the advances.
“Based on Bank’s procedures, the ‘Loan Approval Form’ that is required to be filled in by executives of the bank has complicated the case, since a single manager of the bank can not solely be responsible for disbursing loans.” Tamiru added.
Last week, Thursday, March 13, 2008, the court acquitted two executives of the bank on one charge. Former president Tilahun Abbay and a board of director representing CBE’s labor Alachew Admasu. A charge involving the export of coffee worth more than 60 million Br to Saudi Arabia, by Brehan Assefa Coffee Export Company, owned by Temesgen Mehari, who avoided spending time in jail, although he was accused in the beginning. The judges found both officials of the bank not guilty, but said they should continue the proceedings of others cases prosecutors have filed against them.

Court release black market suspects on bail

By Groum Abate

Court has released suspects of the black market raid that were caught during a raid last week on bail.
Police caught over six million dollars in hard currency at the raided illegal money changers. Individuals that were caught on Thursday March 13, with the hard currency was taken into custody and later released by court order on Tuesday March 18.
Addis Ababa Police has taken into custody over 35 illegal traders connected with this scam that police claims has contributed to the current destabilization of prices in the country.
One dollar was changed with 10:60 birr in the past two days before police cracks the black market network on Thursday, March 13.
Souvenir shops around Filwiha, behind the Ethiopian Postal Service headquarters, in front of Ghandi Memorial Hospital, behind Ethiopia Hotel, around American Gibi, and behind Hilton Hotel were raided by police apprehending hard currency.
According to sources over 35 traders have been arrested during the raid, that was conducted on Thursday afternoon.
These illegal money changers have been on the business for the past many years without any complications from police.
National Bank officials have said on Friday March 14 that the public should be aware of counterfeit birr that are being disbursed through the black market.
In Ethiopia’s law, foreign currency should be exchanged in authorized banks, hotels and other outlets and proper receipts should be obtained for the transactions. Exchange receipts are required to convert unused Ethiopian currency back to the original foreign currency.
Furthermore penalties will be faced for exchanging money on the black market that range from fines to imprisonment.

National Bank deputy governor in the US amid gold scandal

By Tedla Yeneakal

Alemseged Assefa, Deputy Governor of the National Bank of Ethiopia (NBE) is currently under treatment for a liver associated illness in the United States, amid the ongoing fake gold scandal. Meanwhile, the Federal High Court has denied bail rights to 27 suspects allegedly involved in the scam, adjourning the hearing to April, 7, 2008.
Sources disclosed that the Vice Governor has been away on treatment and has not been back on duty, even though he had specified the date of his return, which was one week ago.
“He is seriously ill and I don’t think it has anything to do with the scandal that has been ongoing for the past weeks,” a friend of Alemeseged commented.
The Prosecuting Attorney has been given a further 15 days of investigation after the court was convinced that the case requires further investigation.
“The charge is quite complicated as it involves several people and requires more time for investigation,” the judge said.
Defendants include 11 employees of the NBE and suspects from the Ethiopian Geological Survey, all charged with causing a 170 million birr loss to the bank.
The vice President of NBE has been serving his post for the past ten years. Our various attempts to find out whether he has submitted a resignation failed to materialize.
At the time when the Commission is investigating the scandal jointly with the Federal Police, another 33,781Kg of gold that was sent to NBE from the exhibit vaults of the police has reportedly been caught.
36kg gold bars, deposited 5 years ago by the Ministry of Finance and Economic Development was also found out to be gold plated steel.
In the National Bank of Ethiopia’s (NBE) phony gold scandal, the Federal Police have arrested numerous business people and government employees so far.
The first clue to the entire scandal that started two months ago came when NBE exported a consignment of gold bars to South Africa, who complained that they had been sold gilded steel. After the investigation unveiled that it was fake gold, all the 26 were put behind bars.
The parliament’s budget and finance committee ordered the inspection of all gold in the national bank’s vaults and a report from the auditor-general on the affair is expected to be presented to parliament on unspecified date.

Electoral Board ridicules UDJ request UDJ starts collecting signatures this week

By Kirubel Tadesse

The National Electoral Board of Ethiopia (NEBE) has denied the request of Unity for Democracy and Justice (UDJ), which sought supporting documents to collect the fifteen hundred signatures it needs to form a new national party.
UDJ, the newly organized party as per a decision of majority of supreme council members of the former Coalition for Unity for Democracy Party (CUDP), learned of the denial of its request on Friday, March 21, 2008 from the NEBE. According to UDJ’s senior member, the request was made to avoid possible harassment members are likely to face when active in regions to collect the signatures.
Addis Gebregizaber (PhD) of the NEBE explained to Capital that the denial of the request came about since the Board has no authority or duty to issue any supporting documents so that groups can form new political parties. “It is protected under the Constitution of the Federal Democratic Republic of Ethiopia that any group of Ethiopian people enjoys the right to form a political party,” explained Dr. Addisu, “this is how the ninety-one political parties which currently exist in the country were formed.” He added that the Board has now business in approving or denying what is already protected by the constitution and the Board only deals with issue of the accreditation of political parties that should come after the groups, which wish to form the party and collects the signatures needed. He also explained to Capital that the electoral law doesn’t contain any provision which stipulates that the Board is to entertain these kinds of requests.
Birtukan Medeksa, vice chair of the former CUDP, declined to comment on the Board’s ruling but disclosed that in light of the Board’s decision, UDJ members will start collecting signatures starting from this week.
UDJ is a party seeking to be a political party to be formed by twelve individuals; Birtukan Medeksa,, Muluneh Eyuel (Secretary of former CUDP), Engineer Gizachew Shiferaw, Dr. Hailu Areya, Dr. Yakob Hailemariam, Temesgen Zewide (MP), Dr. Shimeles Tekelsatik, Akelu Gergire, Seleshi Tena, Mohammed Ali (MP), Asrat Tase and Dibaba Amensisa.
UDJ’s, forty eight members including Professor Mesfin Woldemarima, yet to be accredited by the NEBE, are expected to travel to five regions to collect signatures.
It was first expected that Temesgen would travel to Southern Nations, Nationalities and People’s State and Birtukan and Professor Mesfin to Amhara State, but changes have been made to where these senior members would go. UDJ hasn’t disclosed the updates on its members’ travel schedule, which starts this week.

India to collaborate with Ethiopia in leather sector

Ethiopia and India on Friday signed a memorandum of understanding to help each other in leather industry through technology and market collaborations. Under the MoU, Ethiopia would allow the Indian leather industry access to the country’s rich leather resources and also allow certain fiscal incentives for setting up manufacturing and training facilities.
India would collaborate with Ethiopia in terms of capacity building, setting up research institutes and training manpower in leather sector to explore new markets and produce new products to compete with developed nations. “There is tremendous opportunity available in India and African nations like Ethiopia in the leather sector. There is a need to collaborate with Ethiopia in terms of capacity building, setting up research institutes and training manpower to explore new markets and produce new products to compete with developed nations,” the Commerce Secretary Mr G K Pillai said at the CII-Exim India-Africa partnership Summit.
The developing countries should not compete with each other. The focus should be on utilizing their resources in best possible way to compete with other developed markets, Mr Pillai said. “I assure you that India will also provide funds for capacity building and setting up training institutes in Ethiopia and other African countries.,” he said. “As huge opportunities are present in Ethiopia, Indian leather industry should make best use of Ethiopia’s abundantly available leather resources,” Mr Pillai sa id.

Exim Bank sign $30 mln LC for Afrexim Bank

Exim Bank of India has signed an agreement with the African Export-Import Bank or Afreximbank for a Line of Credit to the tune of $30 million to be provided for financing India’s exports to Africa.
The agreement was signed at the 4th CII-Exim Bank conclave on India-Africa Project Partnership 2008 in New Delhi on Thursday.
The agreement was signed by Mr. T C Venkat Subramanian, Chairman and Managing Director of Exim Bank and Jean-Louis Ekra, President of Afreximbank. This agreement will facilitate and boost India’s exports to member states of Afreximbank. The Line of Credit affords a risk free, non-recourse export financing option to Indian exporters.
Exim Bank is a non-regional shareholder of Afreximbank which represents 38 member-states across Africa.
Speaking at the conclave, Dr D Subbarao, Secretary Finance of GOI said that Africa doesn’t need more aid but more trade. Also present at the occasion was Uganda’s Minister of State for Finance, Planning and Economic Developments (Investments), Dr Semakula Kiwanuka. He praised the power projects in various parts of India and emphasized the importance of power for development and the need to harness the power opportunities in his own country.

MEWIT facilitates goods supply

By Addis Mulugeta

The Merchandise Wholesale and Import Trade Enterprise ( MEWIT ) has announced that it has adjusted its regulation for governmental and non-governmental organizations to take commodities from MEWIT on credit through their respective representatives.
According to General Manager of MEWIT, Yimam Mohammed, the enterprise has an abundance of commodities both edible and building materials with a fair price as compared to other business centers. The enterprise is working closely with other private enterprises and governmental organizations to stabilized the market.
He said that for the 2008 budget year from July- January, the enterprise has bought a total of 188.5 million commodities. It has sold general commodities worth 10.1 million birr , Stationery of 5.2 million, building materials of 77.7 million birr , garment of 4.3 million and plastics worth 16.1 million birr for the last seven years.
MEWIT has about 80 retail shops across the country. He said that there were about six retail shops which were closed in Asko, Kara, Kotebe, Zeneb Worq and Akaki will open soon the interest of the people. Compared to last year the market this year is very attractive and has more volume of commodities. From 2004 onwards activity has been healthier.
MEWET is also an agent for the Ethiopian Customs Authority (ECuA) to seal items that have seized by the Authoirty. ECuA is authorized by proclamation number 60/1997 to control the importation or exportation of prohibited or restricted goods. The duty gives it to the authority to detain prohibited, restricted or untaxed goods and to take necessary measures . It also disposes or sells goods that do not have owners are abandoned or forfeited.
ECuA, during the past nine months , has intercepted contraband items valued at 43 million birr that were being exported and imported to the country. And 62.5 m/n birr from items that have falsified made country, price and accompanied by undeclared goods. The items were seized in Addis Ababa Laghar, Bole Airport and Nazarth special branch customs stations.

Wise up sponsor’s 100 female sex workers on 5Km run

By our staff reporter

Wise-Up has sponsored 100 female sex workers for today's fifth annual women's only 5Km run, under the theme Confidence WOMEN FIRST. The women will wear scarves bearing the motto, Wise Up announced.
The garments that the females wear are to show their support for safe sex through using condoms.
Ato Henock Alemayehu, Wise-Up Outreach Coordinator said "We at Wise-Up are very committed to promoting safe sex through the use of condoms. We have been working closely with many sex workers from various areas of the city. When we asked most of them if they would be willing to join the women's only run and promote the use of condoms for safer sex, we were overwhelmed with the enthusiasm they showed to a cause they strongly believe in. It really makes me proud to be part of it."
According to the press release this run is the Millennium's first and was organized under the theme "Celebrating women in Ethiopia" with the key message of "Stop Early Marriage". Today's Confidence: WOMEN FIRST Run is special in that female sex workers join the thousands of runners, joggers and walkers in this year's annual event. The sex workers were energized and excited to be a part of this event and came to show their support not only to this year's key message but also one that is affecting their lives daily in their profession: safe sex.
It can be easily recalled that the deep-rooted poverty of Ethiopia that mainly affects women (who are the large majority of the total population) is aggravating HIV/AIDS prevalence at an alarming rate through the increase in the number of poor women who join commercial sex work to win bread for themselves and their families. Due to this reason commercial sex working and its practice is highly intensified in many parts of the country, predominantly in urban areas. Because of her work, a sex worker is at greater risk of getting sexually transmitted diseases (STDs) and HIV/AIDS than other women.

Sub-Saharan sanitation problems set for 2076 solution

By Muluken Yewondwossen

More than 2.6 billion people around the world have no access to toilets, causing child death as a result of abysmal sanitation every 20 seconds and amounting to 1.5 million young lives lost every year, disclosed the United Nations.
Experts predict that at the present rate, in sub-Saharan Africa, people living without access to basic sanitation will not reach the target until 2076. According to them, by 2015, 2.1 billion people will still lack basic sanitation.
Ban Ki-moon, UN Secretary General in his remarks on World Water Day said, World “This year, World Water Day coincides with the International Year of Sanitation, challenging us to spur action on a crisis affecting more than one out of three people on the planet,”
According to UN Secretary-General leaders who adopted the Millennium Development Goals in 2000 envisioned halving the proportion of people living without access to basic sanitation by the year 2015, but we are nowhere near on pace to achieve that Goal.
The World Health Organization, together with United Nations Children’s Fund (UNICEF) and the Water Supply and Sanitation Collaborative Council (WSSCC), organised the central celebration of World Water Day 2008 with the theme “Sanitation Matters” on 20 March 2008, Geneva, Switzerland.
Poor sanitation combines with a lack of safe drinking water and inadequate hygiene to contribute to the terrible global death toll. Those who survive face diminished chances of living a healthy and productive existence. Children, especially girls, are forced to stay out of school, while hygiene-related diseases keep adults from engaging in productive work.
Ban Ki-moon’s statement indicates that, while there have been advances; progress is hampered by population growth, widespread poverty, insufficient investments to address the problem and the biggest culprit: a lack of political will.
He said that there are many steps that members of the international community can take. The Commission on Sustainable Development in 2005 outlined a series of measures aimed at securing meaningful progress, holding Governments of affected countries primarily responsible. It also called for international support through a conducive policy environment, financial resources and the transfer of technology to countries in need.
World Water Day is a unique opportunity to draw worldwide attention to a subject of major importance to global health and development that affects the poor, women, children and the disadvantaged.

5th Ethiopian coffee contest

By Addis Mulugeta

The 5th coffee contest organized by a Japanese based company, Uni café, was held on March 21, 2008 at the Coffee Quality Control and Auction Center (CQCAC) with contests receiving their awards at the Ghion Hotel.
The objective of the contest is to achieve a better quality of Ethiopian coffee.
Mengestu Tadesse, Head of CQCAC at the Ministry of Agriculture told Capital that after Ethiopia entered the Japanese market seven months ago, it has obtain fruitful results and the coffee that the country supplies to the international market has increased. This contest, held among Ethiopian coffee exporters, is deemed very important and adds value to coffee producers.
He explained that the contest this year is very different from the last four competitions as this one is special because it is the first competition between Ethiopian coffee exporters. Until this year's production time Ethiopia has got 20% from Japan next to German and Saudi Arabia. Last year 4,000 tones were exported to Japan, and it is planed to export 6,000 tones this year.
In this competition, three samples were presented and it was very difficult to select the best because all the coffees at the competition were very good types of Sidamo coffee.
Mulege, Addis, Kemal Abedela and Nardos coffee exporters were among the competitors.
The coffee was tested by two Ethiopians and two Japanese experts. Dilla coffee won with 88.81 points followed by Himbich coffee with 84.38 and Kilinso third, with 82.69.
Hiroshi Tsuchiya, Deputy section manager of Uni café, on his part told Capital that they wants to promote and export the Ethiopian coffee to their country. As the relationship between Ethiopia and Japan in terms of coffee market adds value to both countries.
He also said that the contest is very important to Japanese market and promised that from now onwards, they would work together with Ethiopian coffee exporters to increase the volume of coffee to the international market.

Meles emphasizes double-digit growth, opposition rejects it as ‘cooked data’

NBE to tighten money supply Increases reserve ratio to 15%

‘Ethiopia should take Country Reports on Human Rights seriously’Ambassador Yamamoto

Tax lift on food costs gov’t over 350mln birr

Enterprise evaluates consultants bid documents

Fertilizer price hits $1,000/ton

AACRA to construct roads in three directions of city

MORE EBA to give out one more license for commercial radio

Ministry, WB agree on $100 mln loan

Gov't closing shops for price hiking

Lufthansa, Ethiopian launch codeshare flights

FIRA holds new income tax regulation

Industrial zone to be established on 5km square land

Designers return from India fashion tour

German corp. sets up shoes manufacturing in Kaliti

Former CBE managers court case in deadlock

Court release black market suspects on bail

National Bank deputy governor in the US amid gold scandal

Electoral Board ridicules UDJ request UDJ starts collecting signatures this week

India to collaborate with Ethiopia in leather sector

Exim Bank sign $30 mln LC for Afrexim Bank

MEWIT facilitates goods supply

Wise up sponsor’s 100 female sex workers on 5Km run

Sub-Saharan sanitation problems set for 2076 solution

5th Ethiopian coffee contest

Meles emphasizes double-digit growth, opposition rejects it as ‘cooked data’

NBE to tighten money supply Increases reserve ratio to 15%

‘Ethiopia should take Country Reports on Human Rights seriously’Ambassador Yamamoto

Tax lift on food costs gov’t over 350mln birr

Enterprise evaluates consultants bid documents

Fertilizer price hits $1,000/ton

AACRA to construct roads in three directions of city

EBA to give out one more license for commercial radio

Ministry, WB agree on $100 mln loan

Gov't closing shops for price hiking

Lufthansa, Ethiopian launch codeshare flights

FIRA holds new income tax regulation

Industrial zone to be established on 5km square land

Designers return from India fashion tour

German corp. sets up shoes manufacturing in Kaliti

Former CBE managers court case in deadlock

Court release black market suspects on bail

National Bank deputy governor in the US amid gold scandal

Electoral Board ridicules UDJ request UDJ starts collecting signatures this week

India to collaborate with Ethiopia in leather sector

Exim Bank sign $30 mln LC for Afrexim Bank

MEWIT facilitates goods supply

Wise up sponsor’s 100 female sex workers on 5Km run

Sub-Saharan sanitation problems set for 2076 solution

5th Ethiopian coffee contest

Meles emphasizes double-digit growth,
opposition rejects it as ‘cooked data’

MORE
EBA to give out one more license for commercial radio