Capital

Off at any time EEPCo, unscheduled power shedding

By Muluken Yewondwossen

Meles, business community to tackle economic situation

By Groum Abate

New Press Law tabled in Parliament

By Kirubel Tadesse

Leather institutes collaborate

By Muluken Yewondwssen

Government housing projects suffer soaring cement shortage

By Kirubel Tadesse

Workshop highlights Ethio-Djibouti corridor
Ethiopia’s traffic congests port

By Teguest Yilma

MPs subject Ethio-Sudan bill to border concerns

By Kirubel Tadesse

Candle prices double as power shedding ups

By Tedla Yeneakal

MP plans independent stand in Parliament
OFDM says it fired its MP

By Kirubel Tadesse

Gov’t closes cement shops over price escalation

By Groum Abate

Certified accountants get boost

By Groum Abate

UK gives the largest ever foreign aid to Ethiopia

By Abiy Demilew

New cargo clearance procedure underway

By Addis Mulugeta

Ethiopia ranks amongst worst five in basic child health provision

By Tedla Yeneakal

Road Authority, keangnam sign 460 mln birr contract

By MulukenYewondwossen

Hundreds turn out for 2nd day of food protests in Somalia

Adawa Hospital gets medical and professional assistance

School gets Indian Donation

By our staff reporter

Ethiopia stages Doha boycott

By Groum Abate

CAA selects NOVA for marketing

By Groum Abate

Off at any time EEPCo, unscheduled power shedding

By Muluken Yewondwossen

The Ethiopian Electric Power Corporation (EEPCo) has announced that the power rationing will be increased from the current four days in two weeks to five days in two weeks duration.
The announcement also disclosed that the interruptions may occur beyond the specified shift days until the current power shortage is solved.
Alemayehu Tegenu, Minister of Mines and Energy, Asfaw Dingamo, Minister of Water Resources, along with EEPCo’s general manager, Mihiret Debebe, gave the press briefing on May 9, 2008.
Mihiret said the power shedding is to protect the small scale industries that consume electric power during the night and to compensate for what they lost during their electric power interruption shifts.
According to the high officials, the factor that worsened the problem is the increase in evaporation from the dams as opposed to weather indicated forecast. It was predicted that during summer the 10% evaporation anticipated from Koka dam increased by almost 20%. In addition to this, other global and regional climate changes have affected supply.
It was also mentioned that in this fiscal year, consumption of electric power has increased by fifteen percent as compared to last year.
According to Alemayehu, last year the consumption of electric power was 3300 GW but so far this year it has reached 2980 GW, meaning a tremendous increase. He mentioned that the increasing number of new industries like cement factories as well as the expansion of investment activities in various parts of the country is the main reason.
Currently EEPCo has five hydro electric power projects; Tekeze with 86 % of construction complited and will start its service from September 2008, Tana Belese, Arerti Neshi (Fincha) and Gibe 2 and 3.
The Ministry of Mines and Energy currently has completed the study of two wind power sources and will start the projects soon to use as a substitute. A study of geothermal energy is also under way.
“The economic life time of a hydroelectric power dam 35 years but Koka dam was constructed fifty years, and yet the power it produces is more than expectated,” said Mihiret.

Meles, business community to tackle economic situation

By Groum Abate

Prime Minister Meles Zenawi is going to meet with the business community on Monday May 12, 2008 at his office to discuss on current issues related to the economy.
The discussion, organized by the Ethiopian Chambers of Commerce and Sectoral Association (ECCSA) would focus on questions that are to be raised from the business community about the current economic situation.
Muluwork Kidanemariam, Vice President of ECCSA, told Capital that the association would also raise the issue of the construction of the headquarters of the association. According to the vice president the association expects over 600 participants during the discussions.
He further added that issues about investment conditions would also be raised at the discussion.
Some participants said that the discussion is also expected to focus on the high inflation rate that has shaken the economy badly.
The most significant and daunting problem facing Ethiopia today is the rampant inflation rate. As reported, the Ethiopian Statistical Agency revealed that inflation for March 2008 has risen to 29.6%, food price inflation being even higher (39.4%).
Prime Minister Meles Zenawi in his last report to the House of Peoples’ Representatives on March 18 said that the government 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 recently achieved, and continue to keep an economic growth rate of not less than 10%. The other goal was to increase export trade by not less than 25%. Anchored on the fast growth, and taking advantage of the capacity derived from it, another goal was to stabilize the price of commodities and control inflation. He further said that in order to fulfill these aims, the Government in the last eight months, has devised strategies and tactics and has worked tirelessly to implement them.
With regard to sustaining fast growth, this year, he said that the government is becoming 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. 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” he adds.
He stated also that one of the main causes for the current rate of inflation is price increases in the global market. The price of oil, which was around 20 dollars per barrel five years ago, has now reached around 120 dollars per barrel.
Over 80% of the foreign exchange earnings of the country is spent on oil imports. The soaring oil prices affect the cost of production in a negative way thereby decreasing the supply of goods and services. The electricity outages and blackouts in the country will continue to affect the overall growth of the economy, in addition to making the consumer to suffer.
The prices of food grains, steel, cement and other goods have also risen significantly, if not to the level of oil, he adds.
In the last few years the government has spent 3.52 billion birr to subsidize fuel and another 372 million birr on wheat.

New Press Law tabled in Parliament

By Kirubel Tadesse

The draft press law, disputed on whether or not it discourages press freedom, was tabled to the House of Peoples’ Representatives on Thursday May 8, 2008. Backed by Opposition Party, United Ethiopian Democratic Party (UEDP-Medhin), the bill was sent to the Information and Cultural Affairs standing committee. The bill is expected to be back for endorsement by the House within the next twenty one days after the standing committee organizes public hearings.
This bill [mass media and information freedom] stipulates fifty one articles which will govern the overall operations of mass media and information flow across the nation. The bill affirms the abolishment of the censor in any media work and rights to present and criticize activities while it restricts access to various information, including Council of Ministers documents, which haven’t officially been made public.
The Ministry of Information is empowered to issue accreditation certificates to new national level mass media, whereas regional information bureaus will be in charge of those that target respective regional markets and audience. The existing media organizations are also expected to obtain certificates within ninety days after the law is published in the Negarit Gazeta.
The bill stipulates that an individual isn’t allowed to have control of significant shares in more than one media organization, if the organization have national coverage or are distributed in areas with more than 100, 000 population.
Lidetu Ayalew (MP), Chair of UEDP-Medhin, told Capital that his party has some reservations and particularly doesn’t agree on limiting the ownership of print media.
“For the broadcast media, it makes sense since the allocated air time is limited and as to avoid monopoly, but for the print media it should have been free from any ownership restrictions, “Lidetu explained. He added that after overall assessment his party believes that the bill is practical and despite some reservations his party plans to address them during standing committee hearings even if the ruling party didn’t accept them during negations with political parties earlier.
Temesgen Zewdie (MP), Whip of the parliamentarian group, and the Oromo Federalist Democratic Movement (OFDM), voiced their objections and called for an overall revision. Temesgen says that the bill violates rights of citizens enshrined in by the Constitution and asked why ownership of media institutions isn’t allowed to foreigners of Ethiopian decent. “The bill is claiming to be based on bench marked countries. So if that is the case, what is the practice of these countries? We know that they allow one person to invest in organizations found in several countries, but it doesn’t mean that this person has the citizenship of all these countries “explains Temesgen, “ in this era of globalization whatever happens outside affects us and whatever happens here affects them. “
Temesgen’s parliament group and OFDM, both uninvolved in the political party negotiations over the bill, see the reverse of information flow and press freedom with a bill inevitably to become law in less than three weeks time.

Leather institutes collaborate

By Muluken Yewondwssen

The Ethiopian Leather and Leather Products Technology Institute (LLPTI) together with an institute from England; Northampton Leather Manufacturing Institute (NLMI), are to launch degree and post graduate programs. The two institutes have also agreed to restructure LLPTI’s existing management assisted by NLMI.
According to the agreement NLMI will supply capable instructors and curriculums necessary for enhancing the education provided on leather and its products.
Experts who are engaged in the sector said that currently, the Ethiopian government is encouraging the leather sector in all necessary ways and that the agreement has major value towards the development and competency of the product at international level.
Considering the fact that leather sector investment is highly based on skilled labor, the government established LLPTI under the Ministry of Trade and Industry in 1998 at cost of more than 127 million birr. LLPTI’s objectives, next to producing skilled manpower is to give consultancy and technical services for local industries. And it also conducts research and development activities for the improvement of the leather industry.
LLPTI certifies trainees at diploma level in the leather, footwear, leather and leather goods technologies.
Ethiopia earned 90 million dollars revenue from the export of finished and semi processed leather in 2006-2007.
In the country tanneries have traditionally exported leather at various stages of processing (from pickled to crust) to international markets. Ethiopian hides and skin exports include: pickled sheep skin, wet blue sheep skin, crust sheep skin, wet blue goat skin, crust goat skin, crust cow hides, finished garment leather, finished glove leather, lining/upper leather, suede leather, full grain leather, corrected grain leather, embossed leather and patent leather.
The main markets include China, India, Italy, Japan, the Netherlands, the United Kingdom, Germany and the United States.

Government housing projects suffer soaring cement shortage

By Kirubel Tadesse

The Ministry of Works and Urban Development (MoWUD) said that its housing projects need a cement supply of 1.5 million tons annually, significantly lower than national production capacity. The projects also require 150, 000 tons of steel annually.
Among the 33, 000 houses started between 2003 and 2005, only 11, 000 were completed as the rest remained until the 2007/2008 budget year. MoWUD has completed 9, 000 in the first nine months of this budget year, its report presented to the House of Peoples’ Representatives reads.
According to the report the price hike in construction materials and conditions post May 2005 Elections, particularly in Addis Ababa, had caused the holdup in the projects.
To ease this towering cement supply shortage, MoUD had targeted to import 1.2 million tons for which it signed procurement. The first 15 000 tons of cement was expected to arrive in Djibouti port this month.
Steel supply is also in low supply to further hold back the housing projects.
More than 34, 000 tons steel was bought and distributed to the regions. Another round of purchase that targeted to import 50, 000 tons is scheduled out of the 22, 000 expected to arrive in Djibouti port this month. Another purchase of similar quantity is expected to address the short fall.
The government has spent over 1.3 billion birr for the housing projects in the first six months of the current budget year alone. The total spending reached 2.4 billion birr in 2007 and 2008 budget years collectively.

Workshop highlights Ethio-Djibouti corridor
Ethiopia’s traffic congests port

By Teguest Yilma

After the conflict with Eritrea in 2000, the bulk of Ethiopia's trade has shifted to Djibouti, and has currently grown to USD 5 billion worth of imports and USD 1.2 billion of exports a year.
The port of Djibouti, under Dubai Ports World management concession, has been continuously improving its services. It has handled close to 2 million tons of general cargo in the first four months alone of the current year. Last year, the port handled over 7.4 million metric tons of cargo and noted a landmark performance by achieving 45.8 container moves per hour. A total of 300,000 containers were handled in 2007. Phase II of Doraleh project, which is expected to cost around the same amount, will extend this capacity to 3 million TEU.
The expansion plan of Doraleh port is going as per schedule, said the Managing Director of the Port. He added that Phase I of Doraleh port construction, worth USD 400 million, is scheduled to be inaugurated in December 2008, ensuring a 1.5 million TEU capacity.
But for all the preparation and investment the Port of Djibouti is undertaking, the last twelve months have been affected by a rapidly worsening congestion of cargo destined for Ethiopia. This makes importers wonder whether DP World has taken into account the nearly double digit annual growth of Ethiopia's international trade.
Both parties remain unhappy with this situation, which necessitated a face to face discussion on how to resolve this impasse. Organized by the Trade, Finance and Economic Development Division (TFED) of the UNECA in collaboration with DP World, a timely workshop on trade facilitation was held on May 5- 6, 2008 in Djibouti, followed by a study tour to the Port of Djibouti and the two border posts of Dewaleh and Galafi.
The workshop gathered from both countries agents and stakeholders in the smooth operation of the corridor. Representatives from customs, port and rail authorities, road and road transport authorities, maritime, ministries of trade and industry, transport operators and freight forwarding associations took part. The Ethiopian business community was represented by the President of the Addis Ababa Chamber and Sectorial Associations, Ato Eyesuswork Zafu.
The UNECA was inspired to organize the study tour and workshop on national and regional trade facilitation, in light of the increasing importance of simplifying and lowering the cost of international trade in a rapidly globalizing world. The issue is a key concern in relation to the WTO as calls increase for more transparency, efficiency and consistency on universally recognized norms, standards and best practice.
Opening the workshop, the chairman, Amb. Peter G. Robleh, Senior Regional Advisor, Trade Finance and Economic Division, ECA, laid the groundwork for the justification of holding the meeting and study tour in order to improve the inbound and outbound traffic through the Ethio-Djibouti corridor.
He appreciated all the participants and recognized DP World as well as Mr. Abdourahman E. Ismael, Resident Representative of the Port in Addis Ababa, who has been closely associated with the ECA to organize the workshop. He added that he hopes to see more representation of women in trade, in the next such meeting and recognized the importance all attached to trade facilitation.
"Since you have woken up this morning," he said, "billions of dollars of transaction have occurred across the world through e-commerce and information technology and in all aspects of international trade. At the same time there has been an exponential increase in trade across national borders."
Be that as it may, Amb. Robleh cited that in the 1970s Africa's share of world trade was 7.3%, whereas due to inefficiencies in transaction systems, it currently stands at only 2.2%, emphasizing the urgent need to improve interstate and intrastate transaction deficiencies. He mentioned that reducing transaction costs and bureaucratic delays could help the continent emerge from decades of poverty.
Speaking at the workshop, the Commercial Director of the Port of Djibouti, Mr. Aboubaker Omar Hadi, explained that due to the tardiness of Ethiopian importers to clear their goods, the port is heavily congested and is operating below capacity. He added that the delay in transit is costing Ethiopia dearly to the tune of 60 million dollars a year. Aboubaker also stressed to the participants that Djibouti port is fully capable in terms of infrastructure to handle the increasing Ethiopian trade, but that its capacity has been constrained by heavy congestion. "We are forced to move up to 9 containers in order to deliver a single one," he said describing the condition at the port.
As one of the hurdles to the smooth operation of the corridor, the issue of payment for transit services was brought up by Djiboutian freight forwarders, who complained that they were not paid. Their Ethiopian counterparts are saying the banks are not releasing the required foreign currency, they explained.
In response, the Ethiopian side noted that there are some 35 selected transit and freight forwarders whose names have already been communicated and for whom the necessary foreign currency is made available and renewable periodically.
The payment issue the Djibouti transitors are complaining about is not an issue of lack of currency but that of will, it was generally understood. Meanwhile, Djiboutian freight forwarders claim they are owed millions by their Ethiopian counterparts for services rendered.
Adding to this Mr. Aboubaker stated that the decision to move the goods belongs to the cargo owner. It is only the final consignee that can clear the goods from the port upon taking the bank documents and clearing 100% payments.
It was further indicated that the total value is 1.6% of the CIF value of the cargo, which includes freight charges and the freight forwarders' charges, from ship to port gate. Therefore, according to the port of Djibouti, it cannot be imagined that an importer who opens a letter of credit for hundreds of dollars, cannot pay less than 2% to clear the cargo.
Participants representing the transporters raised the issue of unsatisfactory conditions of the space allocated for the Ethiopian truck drivers to park their vehicles. Truck drivers used to be able to go into the city and benefit from the amenities, before this space was allocated. These complaints were noted and it was indicated that the area is fully managed by the Ethiopian Road Transport Authority, which has fenced the area and that it is not the direct responsibility of the Port or the Djiboutian government.
During the tour , the participants witnessed that the parking area is in a deplorable state and lacks basic services including toilets, prompting a visit to the Ethiopian Embassy in Djibouti to bring attention to the matter.
Ato Eyesuswork Zafu on his part urged that the two sides should not dwell on problems and they should find solutions from a strengthened standing joint committee. He pointed out that it is in Ethiopia's interest also to formulate with Djiboutian authorities a smoother system in transiting goods in and out of the port.
Mr. Tarik Niazi of Contegra, urged participants to think outside the box and emphasized that all relevant bodies on both sides should adopt consistent measures and documentation so that transactions could be speeded up, thereby saving both millions of dollars that could be put to other use. For instance, he said, implementing a blanket custom charge such as Dubai port has done, could simplify the flow of goods in and out of the port.
On his part, Mr. Robert Tama Lisinge, Highway and Transport Engineer, TRID/ ECA, said in addition to the problems raised earlier, he cited inadequate usage of ICT, financial constraints including insurance and international trade obstacles as among the factors inhibiting smooth transaction. He mentioned as a positive development steps taken by regional organizations and at the bilateral level, and noted the commendable progress between Ghana and Bourkina Faso, Djibouti and Ethiopia and Cameroon with Chad and CAR. He concluded by cautioning against potentially aggravating solutions, especially IT measures which could backfire if not wisely implemented and stressed the need to shift from activity to result based management of IT projects.
Mr. Jean Sebastien Roure, Adviser on Legal Aspects of International Trade and Multilateral Trading System, ITC, stated on his part that his centre can provide essential assistance through consultation and dialogue. However, he stressed that it is very crucial that both government as well as the private sector participate so as to identify the problems and solutions as well as sources of funds. He cited Mauritius as a good example, having developed a strategy of public-private partnership.
Responding as to what ITC can bring, Mr. Roure, stated that ICT envisions over two years a pilot project involving five countries, including Ethiopia, where relevant committees and sub committees will be established through which an assessment can be made in the kind of assistance and support that is needed to launch such platforms both financially and in terms of expertise.
The meeting was concluded with the realization that establishing dialogue was a significant achievement and the participants raised their awareness of the obstacles to the smooth movement of cargoes in the Ethio-Djibouti corridor. They also agreed on accelerating and strengthening the existing joint committee by creating linkages with the private sector and other stakeholders.
The lack of full participation of all stakeholders, particularly the importers was observed by those present. As it is the end users who are actually concerned, as they are the one who import the cargo and who need to pay demurrage or other fees and pick up their goods. It was said that it would have been good to hear from them as to why they are leaving their goods including steel, wood and others for over 28 to 65 days in the port.
The workshop and study tour were organized as part of a United Nations Development Account project entitled 'Interregional partnership for promoting trade as an engine of growth through knowledge management and information and communication technologies'. The project seeks to disseminate the benefits of trade facilitation and the standards, tools and requirements for its successful implementation.

MPs subject Ethio-Sudan bill to border concerns

By Kirubel Tadesse

Unlike other financing and credit agreements that usually secure the House of Peoples’ Representatives’ common voice with ease, the financing agreement bill signed between the Ethiopian government and the International Development Association to finance the Ethio-Sudan electric power grid connection project, faced resistance from fifty two members.
Opposition and independent party members of Parliament obliged clarification on recent news coverage by international media claiming that there are issues of a dispute near the Ethio-Sudan border, in order to vote for the bill.
As per the agreement signed on January 17, 2008, the Ethiopian government would contribute 2.05 million dollar while the World Bank releases a 41.05 million dollar credit for the project.
The House received the agreement bill on May 8, 2008 after it was approved by the pertinent standing committee.
Temesgen Zewde, Member of Parliament said that he would confidently support the bill if the alleged occurrence on the boarder between the two countries [Ethio-Sudan] is clearly explained.
“The bill would further brace the existing historical and cultural ties between the people of Sudan and Ethiopia and for that, I want to support it. But to support it confidently, I need clarification on the international media’s recent news coverage which claims that there are disputes near the Ethio-Sudan border,’’ requested Temesgen.
Even if Temesgen’s request was referred not to the subject by the House Speaker, Teshome Toga, he was supported by independent MP Dr. Negaso Gidada, who also demanded clarification on the issue.
Later, however, the House endorsed the bill with 289 votes in favor, 32 against and 20 abstentions.
The agreement is to finance a project that will build a 296 kilometer power connection from Bahir Dar to Metema (near the Sudanese border), a 230 kilovolts cable. The project also includes maintenance and expansion schemes in Bahir Dar, Gonder and Shedi power distributing stations.
The Ethio-Sudan connection project is expected to generate 50 to 60 million USD annually to Ethiopia from 200-300 MW power Sudan would buy.

Candle prices double as power shedding ups

By Tedla Yeneakal

The price of candles has almost doubled in the local market amid the increase in the number of days of power shedding in the country has enhanced demand for the product as more people are using candles.
Market retail prices of candles on average increased to 14 birr per pack from the previous price of 8 birr before the start of the power shedding, according to a general market assessment made by Capital.
The Ethiopian Electric Power Corporation (EEPCo) has announced that out of the total 200MW of electric power needed for Addis Ababa the corporation was short 80MW last month but now, the problem more serious. The power interruption would continue for the next two or three months, after the corporation face a power shortage of over 40% in the capital city.
Ferehiwot Adane, a housewife residing in Addis Ababa says she now finds it very difficult to afford buying candles to light up her house during her turn of power disruption.
“My children and I are forced to go to bed early to avoid the darkness,” Ferehiwot says. “This week they even prolonged the time when the power comes back on.”
The amount of electric power supplied during the past nine months is almost equal with the amount supplied during the previous year. The corporation said that demand grows 10% every year. According to the corporation’s data, in 1999, Ethiopian fiscal year, EEPCo distributed 2160GWH power and in the last nine months of the 2000 fiscal year the corporation distributed 2412GWH power.
The ever increasing number of new industries as well as the expansion of investment activities in various parts of the country, accompanied by low levels of rain during the main rainy season, have aggravated the problem.

MP plans independent stand in Parliament
OFDM says it fired its MP

By Kirubel Tadesse

Member of Parliament, Mesfin Nemera, plans to present an independent stand in the House of Peoples’ Representatives after his disparity with Oromo Federalist Democratic Movement (OFDM).
Mesfin, who served as OFDM Whip, told Capital that his disagreements with OFDM are hardly short term even if he admits that his leave is triggered by the recent bi and local elections. “We tried very hard and I even incurred expenses for the April 13’th elections but on April 15, the executive committee was announcing boycotting elections, “explained Mesfin,” I voiced my disagreement at the press conference. It is true that nobody talked to me before the press conference. It is common practice of the executive committee. Actually, I asked repeatedly why there isn’t a general assembly to elect the executive committee but I was always told that the election took place before I joined the party. All these things are the reasons why I resigned from the party. “
OFDM Chair, Bulcha Demkisa (MP) told Capital that it is the party that has fired Mesfin due to continuous misconduct over the last two years. According to Bulcha, Mesfin’s outburst was the intolerable point on which OFDM decided to finally let go the MP. This is denied by Mesfin who says that he resigned on Wednesday April 30, 2008, and submitted a resignation letter to the party, the electoral board and a news agency. Mesfin explained that even if he left OFDM, he has no intention of giving up his seat in parliament. “It is OFDM’s party politics that I gave up. I have no major policy difference, it is the administrative procedures and practices of the execute committee that made me leave the party,” added Mesfin, “I will continue my contribution and efforts in parliament and my struggle for the Oromo and Ethiopian people.”
Bulcha explained to Capital that his party has no objection to Mesfin’s upcoming participations in parliament and that the party won’t collect petitions to have him removed from the House. “We won’t take the last measure, “ explains Bulcha, “ we will let him keep his seat but I know that if we tell Nejo people that he has been unfaithful to OFDM, the people would be displeased, but we won’t go that far.”
Capital had reported that OFDM has boycotted the April 20’th Local and Bi- Elections claiming that it went on the April 13’th blindfolded. It was during the press conference on April 16 at OFDM office that Mesfin publicly protested the decision of boycotting elections. Even if he had stated that he won’t leave OFDM on the occasion, replying to the press, he submitted his resignation after two weeks. Bulcha Demkisa, known for his moderate comments in Parliament, was upset and asked Mesfin to leave the press conference. He was not obeyed on the occasion.

Gov’t closes cement shops over price escalation

By Groum Abate

Shops of cement retailers have been closed after they were found escalating prices.
The shops were closed on Thursday May 8, 2008 after cement prices shot up steeply this week, with the retail price of a bag of cement at 320 birr from the previous price of 220 birr, an average increase of close to 50 percent.
Prime Minister Meles Zenawi, in a parliamentary address on March 18, said that the government would take severe measures on traders that raise prices unreasonably. The action to close these shops came right after his comment.
In recent weeks a severe cement shortage has hit the country and forced a halt to small scale construction in the city, after the government banned those allegedly importing cement with black market foreign currency.
According to some small scale contractors who buy cement from the market, even though the price is stable it is hard for them to find cement for their needs.
About 12 cement retail shops were also closed after they were found escalating prices some weeks ago and this move by the government led to the stabilization of the price for a brief period.
Mugher Cement Enterprise, the biggest cement factory in the country, could only meet five percent of total demand.
In January 2008, the enterprise launched a new project that will increase its existing production capacity of 870,000 tons to 1.4 million tons annually, a 150 per cent increment.
Even though the project is expected to minimize the cement shortage to some degree, officials of Mugher had announced that it is not likely to fill the gap in supply and growing demand.
According to figures obtained from the enterprise, close to 900,000 tons of cement was imported from November 2006 to December 2007.
A survey done by Mugher during the last Ethiopian fiscal year show national demand for cement is 17.8 million tons annually, whereas the total production is limited only to 1.9 million tons per annum.
The Ministry of Trade and Industry some weeks ago announced that it has revoked the licenses of traders who were previously allowed to import cement through Franco-valuta.
The Ministry said the government was obliged to cancel the licenses for it found that certain businesspersons engaged in the sector were importing cement by buying hard currency from the black market that resulted in destabilizing the market.
The Ministry further added that only international contractors would be allowed to import cement depending on demand.

Certified accountants get boost

By Groum Abate

Forty five graduates were honored in the presence of friends, family, colleagues and leading finance professionals, at an event at the Sheraton Addis on Saturday, May 10, 2008, which is also a record high number for the Association of Chartered Certified Accountants (ACCA) Ethiopia office.
The guest of honor, Abe Sano, President of the Commercial Bank of Ethiopia (CBE) congratulated the graduates of ACCA’s, where the association graduate 54 of its students for their successful completion of studies.
Hikmet Abdella, Country Manager, ACCA Ethiopia, told Capital that it was not only the highest number to date in Ethiopia graduated but also a special event where the ACCA Africa president also attended the event.
ACCA launched a new qualification, which were examined for the first time in December 2006, have professionalism and ethics at its core and is designed to ensure that ACCA students and members are equipped to deal with ethical dilemmas which may face them during their careers.
The qualification has been developed following consultation with over 30,000 employers, finance professionals, training providers and students around the world.
The new qualification has a simplified structure, more computer-based assessment, and a leading-edge focus on professionalism and ethics.

UK gives the largest ever foreign aid to Ethiopia

By Abiy Demilew

Norman Ling, the UK Ambassador to Ethiopia, on Wednesday, 07 May 2008, admitted that the United Nation’s Millennium Development Goals are being challenged by the current global food crisis, and the world is expected to reconsider the MDGs on the UN meeting of September, in New York.
This was told at the announcement of UK’s largest foreign aid to be given to Ethiopia, 2.5 billion birr (130 million pounds sterling), over the next year, to help Ethiopia achieve the Millennium Development Goals.
The Ambassador noted that, “British PM, Gordon Brown, called the world for action towards MDGs, which now is leading for countries to live-up to their commitments towards MDGs.”
“If Ethiopia is to meet any of the Millennium Development Goals, it needs additional financing from donors. The UK is fully committed in providing this as today’s announcement of 2.5 billion birr funding for this year shows,” Paul Ackroyd, Head of the UK Department for International Development (DFID) Ethiopia, told reporters.
The UK is giving the largest foreign aid ever given to any African country, as the UK government is satisfied by the development activities of Ethiopia, according to Norman Ling, the UK Ambassador to Ethiopia.
The Ambassador, briefing journalists said, “Governance is the main issue in any country we operate. In this context, we do have detailed discussions with the government of Ethiopia about this issue, as it is the main element of our development assistance,” but according to him, there are many areas for improvements to be made. “At the moment, we are satisfied to maintain our development support in Ethiopia.”
Paul Ackroyd, Head of DFID, also underscored that, DFID and the World Bank stopped direct budgetary support to Ethiopia after the May 2005 election, as a result of big concerns. “Right now, we have seen improvements in some areas and still we want to see further improvements in other areas, before we come back to the massive budgetary support,” he said.
“The World Bank is not intending a quick return to budget support at least with in the next couple of years. We have also made no decision to return to that. But we will continue supporting basic public services and development activities in the country,” Paul Ackroyd added.
The British Ambassador, in his speech, underlined that, “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.”

New cargo clearance procedure underway

By Addis Mulugeta

The Ethiopian Customs Authority is set to launch a new procedure for imported cargo clearance procedures, inherent to the Business Procedure Reengineering (BPR) it is undertaking. According to the BPR, the newly cargo clearance procedure consists of four distinct components: Transit, Warehouse, Clearance and Privileges given by the government.
The new customs transit procedure is set to start operations in the Ethiopian Customs Authority Facilitation Office in Djibouti. Although it was proposed that the transit procedure should start its operation from Djibouti Customs this process is found to take a longer period of time for application as it needs more time to negotiate with the government of Djibouti and for its implementation. As a result, the permit for transit of goods will start as per the direction of the movement of goods instead of the previous system whereby permit for transit was given by tax levying customs stations.
Sources disclosed to Capital that the new modus operandi of filling out customs declaration that is done electronically will be in a manner that the customs agents will declare, assess and collect duty as well as levy risk for inspection on each of the goods coming into the country. Previously, however, it was learnt by Capital that such tasks used to be carried out by customs officers themselves. Thus, such a move adds something to the principles of the World Trade Organization (WTO) within which importers are bound to pay duties based on the price they deem to be authentic.
Consequently, the formerly inactive auditors of the Post Clearance Audit (PCA) section of the authority will be more engaged in inspection and control of whether the payment of duties already effected were right or wrong. This will ease the import procedure of goods to the country without a need to wait on the port until investigations and inspections are made on whether duties are to be made at what rate and which taxes. Further investigations will be done after the goods are imported and put into use or transaction.
The new procedure will also involve bonded warehousing of goods that have been moved under the transit procedure from port to the country. In this respect, importers and customs clearing agents will need to have bonded warehouse where physical inspections could be undertaken in case the risk level of the cargo falls on yellow and red lanes [there are green, yellow and red lanes according to each of which the risk level may necessitate cargo scanning machine inspection or physical inspection].
According to the new procedure importers will have the opportunity to directly involve in dealing with the customs procedure without the need to involve customs clearing agents. In addition, payments of duties will no longer be on Cashier’s Payment Order (CPO) rather the declaring party will make the payment in banks under the account of customs. Checking and inspection of goods will also be done based on risk assessment and cargo of compliant importers will be authorized to be released even without inspection.
On the other hand, the Ethiopian Customs Authority, is about to merge with the Ministry of Revenue and the Federal Inland Revenue Authority and function as Ethiopian Revenue Administration.

Ethiopia ranks amongst worst five in basic child health provision

By Tedla Yeneakal

Ethiopia is found to be among the worst five countries for all children under age 5 world wide, in getting basic health care, according to a report released this week by Save the Children’s Global Report.
Laos, Yemen, Chad, Somalia along with Ethiopia are the worst five countries in the world. According to the report, eight out of 10 bottom-ranked countries are in sub-Saharan Africa, where four out of five mothers are likely to lose a child in their lifetime.
Nearly all of the deaths occur in the developing world, with poor children facing twice the risk of dying compared to richer children, according to Save the Children’s global report.
More than 200 million children worldwide under age 5 do not get basic health care, leading to nearly 10 million deaths annually from treatable ailments like diarrhea and pneumonia, the report released on Wednesday stated.
Through the number of health initiatives, including access to oral rehydration to treat diarrhea, some countries like the Philippines has nearly cut its child health rate in half since 1990, the report compares the more than 75 percent of Filipino children with diarrhea receive rehydration therapy, compared with 15 percent of Ethiopian children.
“An alarming number of countries are failing to provide the most basic health services that would save lives, with 30 percent of children in developing countries not getting basic health intervention such as prenatal care, skilled assistance during birth, immunizations and treatment for diarrhea and pneumonia,” states the report. “Use of existing, low-cost tools and knowledge could save more than 6 million of the 9.7 million children who die yearly from easily preventable or curable causes.”
The top three among the 55 developing countries ranked in the survey are the Philippines, Peru and South Africa, all surveyed for the first time. Indonesia and Turkmenistan tied for fourth.
The report highlights the wide disparities in health care for the poorest and best-off children are seen even in the highest-ranked countries, with the poorest children ranging 3.2 to 7.4 times more likely to go without essential health care than their best-off counterparts.
Save the Children has been operating in Ethiopia since 1984. The organization has in general been working in communities to educate mothers on basic life-saving information and nutrition, for themselves and their children. In addition, it supplies key services such as vaccinations and quality family planning information, including information on how to combat HIV/AIDS and other sexually transmitted diseases. Part of our success has been a result of linkages with other program components, particularly in the education sector, to include health education as part of the education curriculum.
“Even in an ‘average’ year, the education, health and economic situation for millions of Ethiopian children can only be described as a crisis,” states the official web site of Save the Children about Ethiopia, “With inadequate health care services, many children die before reaching the age of 5. Of those that survive, only 36 percent of children attend primary or secondary school. In addition, the HIV/AIDS crisis is devastating families at a rate that is destabilizing entire communities, leaving many children orphaned and at risk for exploitation.”

Road Authority, keangnam sign 460 mln birr contract

By MulukenYewondwossen

A Korean company, Keangnam Enterprises, has concluded an agreement with the Ethiopian Roads Authority (ERA) for the construction of the asphalt road, Alaba-Humbo-Arbaminch, in the Southern Ethiopia. The agreement valued at over 460.3 million birr was signed on May 7, 2008
The agreement was signed by Zaid Wolde Gebriel, director general of ERA and Cho Hyun Seung, Ethiopia branch office, general manager for Keangnam Enterprises.
The 85.5 km road, which was first built15 years ago will be upgraded to concrete asphalt. The work includes horizontal and vertical alignment improvements, rehabilitation of existing culverts and bridges and construction of new culverts.
Construction is expected to be completed within 30 months and is financed by the Government of Ethiopia.
Keangnam Enterprises is currently involved in five road projects in Ethiopia. Two of these projects are the Azezo-Metema road; 745 kms to the North from the capital city. Another two are 345 km from Addis Ababa to the South West, known as the Jimma – Mizan project. The remaining is the Ambo-Gedo road construction project in the West of the country.
On November 2007, ERA and DMC signed an agreement for the construction of a 10 meter wide, 100 km span asphalt road from Humbo to Arbaminch for over 380 million ETB which is one part of the Alaba- Sodo- Arbaminch asphalt upgrading road project. It is expected to be finalized after 25 months.

Hundreds turn out for 2nd day of food protests in Somalia

Hundreds of youths hurled stones and blocked roads with blazing tires Tuesday, in a second day of protests over soaring food prices that has frustrated residents already living in one of the world’s most dangerous war zones.
Meanwhile, an international rights group accused Ethiopian troops of torturing and killing civilians in the Somali capital, Mogadishu. Ethiopia, whose troops are supporting Somalia’s shaky U.N.-backed government, denied the allegations.
And Islamist fighters said a U.S. airstrike overnight blasted a remote area of central Somalia hours after armed civilians met there. The U.S. military denied the claim.
The food protests were sparked by shopkeepers’ refusal to accept some bank notes, apparently over fears of counterfeiters. The protests were not as widespread as on Monday, when tens of thousands took to the streets and two people died when troops fired into the crowds.
On Tuesday, the protests were confined to two neighborhoods, but shops across the city remained shuttered with traders fearing the riot could spread and prompt looting.
“Down with those printing the fake money!” the young men yelled. “Down with opportunists!”
One youthful protester, Abdinur Ileyke, said: “We will not allow them to trade while we are dying (of hunger) before their eyes.”
On Tuesday, shop owners met and agreed to begin accepting the notes again.
The U.N. food security unit warned last week that half Somalia’s 7 million people face famine. It blamed an enduring drought and soaring food prices.
In Mogadishu, the price of corn meal has more than doubled since January and rice has risen from $26 to $47.50 for a 110-pound sack. Food costs also have been driven up by the plummeting Somali shilling, which tumbled from about 17,000 to 30,000 per $1.
Protests and riots over rising food prices also have hit other nations, including Haiti, Egypt, Cameroon and Burkina Faso. The price of rice and other staples has risen more than 40 percent since mid-2007.
Somalia has seen years of violence between militias of rival clan warlords and now Islamist fighters, who are prosecuting an insurgency with roadside bombs and occasional suicide attacks.
Ethiopia sent troops to Somalia in December 2006 expecting to remain only for weeks. They speedily drove out Islamist fighters — who had seized control of most of southern Somalia, including Mogadishu — but have since become bogged down in the country while supporting the U.N.-backed government.
Amnesty International said Tuesday that it has scores of reports from witnesses that Ethiopian troops slit civilians’ throats, gouged out their eyes and gang-raped women.
Witnesses said they have watched the Ethiopians become increasingly belligerent and indiscriminately shoot up entire neighborhoods when they come under attack.
In one case, “a young child’s throat was slit by Ethiopian soldiers in front of the child’s mother,” the organization said.
Ethiopia vehemently denied the charges.
“We have never attacked the Muslims ... Our troops, have never, never cut throats. Never have mutilated a body. Never have fired on civilians,” Foreign Affairs spokesman Wahide Belay told The Associated Press in Addis Ababa, the Ethiopian capital.
Belay said hundreds of Ethiopian soldiers have died in Somalia and that about 3,000 are deployed there.
Also on Tuesday, two Islamist fighters said an overnight U.S. airstrike blasted the rural Odam area in central Somalia hours after armed civilians met there. The fighters, who spoke on condition of anonymity for fear of retaliation, said no one was hurt.
A spokesman for the U.S. military’s Central Command said there was no strike. “We had no activities there overnight,” said Capt. Matt Hasson.
Last week, a U.S. airstrike killed the suspected al-Qaida leader in Somalia and 24 others. It was the first successful hit of several such attacks in Somalia, which the United States fears is a breeding ground and safe haven for international terrorists. (Agencies)

Adawa Hospital gets medical and professional assistance

With the initiative and joint organization of Turkish International Cooperation and Development Agency’s ( TIKA ) Addis Ababa coordination office and Karadeniz health member association comprised of 24 medical experts and professionals from Turkey, have carried out a five day medical examination and several surgical operations at Adawa Hospital between the 28 April to 2nd May 2008.
According to the medical expertis’ announcement made on May 4, 2008, at the Turkish Embassy, during the medical examinations thousands of people recieved treatment and others were operated on for minor cases at the time of medical check-up. Meanwhile, medicines and medical equipment were given to administration for use for the treatment of patients without any charge. In addition, training was giving to the hospital staff in branches of internal medicine, dermatology, neurology, infectious diseases and gynecology.

School gets Indian Donation

By our staff reporter

At a solemn ceremony at the Embassy of India on May 6,2008 Mr. Gurjit Singh, the Ambassador of India, handed over a cheque for Ethiopian Birr 1 million to His Holiness Abune Melketsedic, Archbishop of Ethiopian Orthodox Church, In Charge of Gurage Kembata, Hadia and South Zone. The presentation was made on behalf of M/s Overseas Infrastructure Alliance Ltd. in the presence of their Chairman Ambassador V.B. Soni. The contribution was made to fund the building for a separate dormitory for the school children attached to Mihur School and orphanage.
M/s Overseas Infrastructure Alliance Ltd. is executing Hagere Mariyam – Mega Zone, a rural electrification project in the Southern Nations, Nationalities and Peoples’ Regional State and have decided to contribute to social causes in the area.
Speaking on the occasion, Ambassador Gurjit Singh mentioned that the universal education of the Ethiopian children is one of the primary links in India – Ethiopia relations and the donation will help in the achievement of this goal. This was also a fitting contribution to mark the 60th Anniversary of the establishment of diplomatic relations between India and Ethiopia. Speaking on the occasion, Ambassador Soni mentioned that the donation marks the first step towards achieving corporate social responsibility on the part of Overseas Infrastructure Alliance Ltd. and they would do more such activities during their term in Ethiopia.
His Holiness Abune Melketsedic profusely thanked Mr. Gurjit Singh, Ambassador of India, Ambassador V.B. Soni, for this gracious gesture shown by the Overseas Alliance Infrastructure Ltd. and indicated that the donation will benefit the school and orphanage to have a decent roof over their head. He also reiterated the long standing relations between India and Ethiopia in the education field and mentioned that such philanthropic acts will further improve the image of India in Ethiopia.

Ethiopia stages Doha boycott

By Groum Abate

Ethiopian athletes pulled out of Friday’s Doha Super Grand Prix meet because of political tension between the two countries, organizers said.
“We had prepared everything for them: the visa, the tickets everything,” said Dahlan Al-Hamad, the president of the Qatar Athletics Federation. “Unfortunately, politics got into sports.”
Last month, Ethiopia broke off diplomatic relations with Qatar, saying the energy-rich Gulf state had become a source of instability in the Horn of Africa. It cited Qatar’s relations with Eritrea, which is involved in a long-standing feud with Ethiopia over their border.
Qatar said it was astonished by the diplomatic action and denied the accusations that it is hurting Ethiopia’s security.
Seven Ethiopian athletes were on the starting list of Friday’s meet, including indoor world champions Deresse Mekonnen in the 1,500mt meters and Tariku Bekele in the 3,000mt..
Al-Hamad said the IAAF would look into the matter.

CAA selects NOVA for marketing

By Groum Abate

The Confederation of African Athletics (CAA) has selected NOVA Africa Events PLC as its official marketing agent for events over the next four years.
Gasahw Zergaw General Manger of Nova Africa, told Capital that CAA selected his company after they witnessed a job well done at the recently ended 16th CAA African Athletics Championship.
The Confederation, according to him, has outsourced the redesign, development, and maintenance of its official website to the Ethiopian-based company which was also the official marketing agency for the 16th CAA African Athletics Championships.
“Nova Africa has done a great job at marketing the 16th African Athletics Championships,” said CAA President Colonel Hamad Kalkaba Malboum. “We are pleased to announce that we are working with a company that has a broad understanding of our sport and carries its duties in a professional manner.”
Gashaw furthered, “Naturally, we are pleased that the Confederation has chosen our company to market the sport. It is not an easy job, but we remain committed to the development of our sport. I can tell you that we will work hard to sell CAA’s events to sponsors in order to secure the sport’s financial future.”
The website of the 16th CAA African Athletics Championships has also become more popular than previous websites launched for similar events, taking over 5.2 million hits during the championship.

Off at any time EEPCo, unscheduled power shedding

Meles, business community to tackle economic situation

New Press Law tabled in Parliament

Leather institutes collaborate

Government housing projects suffer soaring cement shortage

Workshop highlights Ethio-Djibouti corridor Ethiopia’s traffic congests port

MPs subject Ethio-Sudan bill to border concerns

Candle prices double as power shedding ups

MP plans independent stand in Parliament OFDM says it fired its MP

Gov’t closes cement shops over price escalation

Certified accountants get boost

UK gives the largest ever foreign aid to Ethiopia

New cargo clearance procedure underway

Ethiopia ranks amongst worst five in basic child health provision

Road Authority, keangnam sign 460 mln birr contract

Hundreds turn out for 2nd day of food protests in Somalia

Adawa Hospital gets medical and professional assistance

School gets Indian Donation

Ethiopia stages Doha boycott

CAA selects NOVA for marketing

Off at any time EEPCo, unscheduled power shedding

Meles, business community to tackle economic situation

New Press Law tabled in Parliament

Leather institutes collaborate

Government housing projects suffer soaring cement shortage

Workshop highlights Ethio-Djibouti corridor Ethiopia’s traffic congests port

MPs subject Ethio-Sudan bill to border concerns

Candle prices double as power shedding ups

MP plans independent stand in Parliament OFDM says it fired its MP

Gov’t closes cement shops over price escalation

Certified accountants get boost

UK gives the largest ever foreign aid to Ethiopia

New cargo clearance procedure underway

Ethiopia ranks amongst worst five in basic child health provision

Road Authority, keangnam sign 460 mln birr contract

Hundreds turn out for 2nd day of food protests in Somalia

Adawa Hospital gets medical and professional assistance

School gets Indian Donation

Ethiopia stages Doha boycott

CAA selects NOVA for marketing

Workshop highlights Ethio-Djibouti corridor
Ethiopia’s traffic congests port

MP plans independent stand in Parliament
OFDM says it fired its MP

Workshop highlights Ethio-Djibouti corridor
Ethiopia’s traffic congests port

MP plans independent stand in Parliament
OFDM says it fired its MP