Capital

Addis gets first elected mayor

By Groum Abate

ETC nets billion birr in profit

By Groum Abate

Ethiopian registers record earnings

By Tedla Yeneakal

Charges of ex-CBE officials involving Star Business Group dropped

By Tedla Yeneakal

Sugar cane shortage, factory pauses production

By Muluken Yewondwossen

Bus taxies to stop service in city

Market suffers milk shortage

By Muluken Yewondwossen

Export revenues up 31%

By Kirubel Tadesse

Ministry finally accepts Ethiopia’s employers federation election

By Tedla Yeneakal

MoFA- Reports on Ethio-Sudan boundary groundless

By Staff Reporter

Universal health access by January 2009

By Kirubel Tadesse

ICT Park pre work to be launched

By Tagu Zergaw

Ethiopian force 20 minutes Heathrow closure

By Groum Abate

Power shortages become critical

By Groum Abate

Ethiopian coffee highlighted in Minneapolis, USA 10 investors already signed

By Abiy Demilew

AACCSA starts to deliver service in every sector

By Addis Mulugeta

COMESA to launch Customs Union by year end

By Groum Abate

African growth projected at 6%

By Groum Abate

‘Rights of persons with disabilities’: call for action

By Groum Abate

Addis gets first elected mayor

By Groum Abate

The first elected mayor of Addis Ababa will take his position as of Tuesday May 20, replacing provisional mayor, Berhane Deressa.
The National Electoral Board of Ethiopia (NEBE) will announce the results of the election today Sunday May 18, after receiving the results of the local and by-elections held on May 13 and 20, 2008 from all constituencies.
Addis Ababa’s first mayor, Hayle Giorgis, served at the beginning of the last century, a period of transition for Ethiopia and its urban areas, much as is the case today.
During the Derg regime, Dr. Alemu Abebe, Tesfaye Dinka, and Zewdie Teklu had been appointed by the then President of the nation.
Furthermore, Tefera Walwa, Ali Abdo, Arkebe Okubay and now Berhane Deressa have been appointed directly by the House or by the Prime Minister.
Born in Wellega, Berhane Deressa has over 35 years of public service and study in public and international affairs. Before his assignment in May 2006 as the mayor of Addis Ababa, he served his country and international development organizations.
The House of Peoples’ Representatives endorsed Prime Minister Meles Zenawi’s report on the appointment of an interim administration for the Addis Ababa City authority. The Prime Minister announced the appointment of Berhane Deresa as the Mayor of the Addis Ababa City Provisional Care-Taker administration. Berhanu was joined by eight Cabinet members - Dr Alemnesh Wolde-Endeshaw, Yitbarek Befirdu Belihu, Muluneh Worddofa, Sherif Keri, Hagos Hailu Medhane, Berhanu Woldetensae, Misganaw Argaw and Bekele Fula - and Dr Woubishet Berhanu as General Manager of the City.
These officials were selected according to merit and do not belong to any political party. They exercise their duties and responsibilities according to the Addis Ababa City Charter.
The appointment of a care-taker administration became necessary after the political party elected to run the city failed to organize themselves sufficiently to take-over from the previous administration.
The appointment of Mayor Arkebe Oqubay, including a complete reorganization of the local administration to improve the living and working conditions of its inhabitants, aimed at transforming Addis Ababa into ‘The Diplomatic City of Africa’.
Very rapidly, then, the Mayor’s new policies were felt right across the city, and – most important – well received by its inhabitants.
Addis Ababa has the status of both a city and a state, with a charter endorsed by the national government. One consequence is that the Mayor has responsibilities that are much broader than those of most of his counterparts elsewhere: primary and secondary education, as well as college education, for example; primary health care and health centres, as well as hospitals. Policing, water supply and infrastructure also all fall within his mandate.
Addis Ababa’s city council, which is elected directly every five years, provides the Mayor with a cabinet. The cabinet’s role is to assist the Mayor in decision-making.
Since attaining office in early 2003, Mayor Arkebe had been aggressively overhauling the city administrative system with the intention of rendering it much leaner and less centralized. When he arrived, there were 40,000 civil servants and four tiers of bureaucracy. The number of tiers has been halved, and the civil service is also being thinned out.
Addis Ababa now comprises 10 municipalities, each representing around 400,000 inhabitants; 90 per cent of services are provided at municipality level or lower. These municipalities are afforded a great deal of freedom: for example, they can set their own budgets. Governance, however, primarily focuses on the kebele, or neighbourhood, of which there are 10 in each municipality, each consisting of roughly 40 to 50,000 inhabitants.
Addis Ababa has cooperation agreements with cities such as Johannesburg, South Africa; Beijing, China; Gaborone, Botswana; Leipzig, Germany and Lyon, France. These collaborations, the Mayor emphasizes, must not be merely ceremonial, but of some material benefit to Addis and its residents.

ETC nets billion birr in profit

By Groum Abate

The Ethiopian Telecommunications Corporation (ETC) has announced that it has secured 921.3 million birr in net profit in the nine months of the 2000 Ethiopian fiscal year, a 30% increase from last year.
It has also announced that it carried out telecom projects across the nation at a cost of over 1.45 billion birr during the past nine months.
According to a press release sent by the Corporate Communications General Manager on Friday, the cost for the execution of the telecom projects was secured from the corporation itself and from ‘vendor financing’.
ETC collected 2.78 billion birr in revenue from various sources during the reported time and the revenue collected this year exceeded that of the revenue collected during the previous year of the same period by 35 percent.
The number of rural telecom service subscribers in the country has reached 10,000 at present from 7,000 earlier, according to the press release.
Some 668 schools have got access to SchoolNet, 565 woredas access to WoredaNet, and 29 agricultural institutions have access to AgriNet.
The corporation, during the first half budget year, states that fixed line customers increased by 3.2% while mobile line customers increased by 50% during the first half of the fiscal year. 661,800 new customers have also benefited from the services of the telecom monopoly.
In related development, The World Telecommunication and Information Society Day (WTISD) is to be celebrated worldwide on 17 May 2008, the Ethiopian Telecommunications Corporations announced.
The day would be marked globally under the theme “Connecting Persons with Disabilities: ICT Opportunities for All,” and would be celebrated with appropriate events in Cairo, Egypt, and other member states of the International Telecommunications Union (ITU).

Ethiopian registers record earnings

By Tedla Yeneakal

The national carrier, Ethiopian Airlines, in nine months of operations during the 2007/08 fiscal year, recorded a net profit of 484 million birr, up from the same period of the previous year by 29 percent.
According to a press release from Ethiopian, based on the preliminary reports, the airline generated 6.6 billion birr in operating revenues during the nine months, transporting 1.9 million passengers, a 19 percent increase as compared to the previous year.
Chief Executive Officer of Ethiopian, Girma Wake, stated that out of the total operating expenses during the nine months, which has increased by 21 percent, fuel cost represents the lion’s share, followed by aircraft/engine lease and payroll expenses.
“Fuel price remains of concern to the industry as a whole and Ethiopian believes that costs will continue to escalate into the next quarter given the present trend in the price of fuel.” Girma said.
On Friday, May 16, 2008, crude oil rose above 127 USD a barrel for the first time after Goldman Sachs Group Inc. raised its oil price forecast amid speculation Chinese diesel purchases will strain limited supplies. Goldman boosted its crude-oil price forecast for the second half of this year to $141 a barrel, from $107, citing supply constraints.
The release further attributed the substantial improvements in revenue and traffic growth due to the apparent capacity growth in terms of increased frequency, introduction of new flights on the international sector, from cargo revenue as well as other service categories.
“Despite the escalating fuel price and stiff competition, Ethiopian scored the highest revenue and profit ever,” the release stated.
During the last nine months of the budget year, major activities included leasing one B757-200 passenger aircraft as well as two B747-200 freighters pending the delivery of MD-11 Freighter aircraft, launching service to Abu Dhabi and Zanzibar, implementation of Code share agreement with Gulf Air and Air One, signing an agreement with Boeing to acquire two MD-11 Freighter aircraft, entering into partnership with Lufthansa on the Frequent Flyer Programme and installing a B737-NG Stimulator.
“The performance was achieved as a result of the hard work and dedication of Ethiopian’s employees, astute leadership of the management team, the strong support from the Airline’s customers and other stakeholders,” Girma said.
Ethiopian Airlines is one of the largest airlines in Africa and made its maiden flight to Cairo in 1946. The airline currently serves 50 destinations around the globe, 30 of which are in Africa. The addition of services to Kuwait effective June 2, 2008 will bring the total number of international destinations to 51. It will be the first carrier to operate the B787 Dreamliner in Africa, the Middle East and Europe.

Charges of ex-CBE officials involving Star Business Group dropped

By Tedla Yeneakal

The Federal High Court on Tuesday, May 13, 2008 has dropped charges filed against former officials of the Commercial Bank of Ethiopia (CBE) involving several businessmen, the Star Business Group, jointly owned by prominent business men, Abebaw Gelaye and Muluyelet Atnafu.
The former were accused of violating the bank’s lending policy, in loans amounting to 105 million birr with the intent to provide undue advantages to prominent business people. The latter were released after four years in jail. Both businessmen were acquitted of all the charges leveled against them; the restraining orders put on their companies were lifted a year after their release. Nevertheless, they were confronted not only with servicing the principal of the loans, but also the interest that has escalated to over 70 million Br.
Former CBE officials however, still remain behind bars for the last seven years after charges was initially filed by the Commission in May 2001, and are still awaiting the Court’s final decision on five other charges.
Due to the complexity of the charges, the court divided the file into several sub-files for ease of processing. And at the time of verdict there were 19 sub-files.
Four cases involving the granting of loans to companies namely Abmar, owned by Abraham GebreSelassie, Bazen of Berhane Giday, Ajekma owned by Asnake Jambere have also been acquitted on the same hearing alongside the case of the Star Business Group.
“Because of the repetitive nature of the charge, verdicts read by the Court in the past several weeks provided guidelines for finding defendants guilt or not guilty. Most issues have been cleared and going forward it is fairly easy for the defendants to correctly predict the outcome of the verdict,” a lawyer who’s been following the case commented.
In cases where loans were approved in the pre 1996 and post 1999 periods, whereby the loan provision policies have been revised, without the benefit of audited financial statements, are considered violation of policy.
All bankers were found not guilty except a branch manager – for an unauthorized overdrawal of the subject’s account at CBE’s Anwar Mesgid Branch, a case involving Abmar company. On the case of Star Business Group, the court found all bankers accused were found not guilty.
Another charge that rendered on a file under the name of Tilahun Abbay, former president of the bank, bankers who approved loans without the submission of audited financial statements were declared guilty.
The court’s verdict on the issue regarding designating customer as ‘corporate client’ by the President of the bank, ‘on exceptional’ basis was ruled ‘acceptable’ by the Court, as it falls within the jurisdiction of the ex-president.
On other counts that alleged irregular tuck purchase financings, the Court found nothing that constitute violation of the Bank’s policy and passed a similar decision in the case of Bazen Company, which followed similar lines of reasoning.
The Court looked into the collateral and audited financial statements as prerequisites for granting loans and credit, according to the verdict read in court.
The defendants on the related corruption charges case involves 41 former officials and staff members under the file name of former, President Tilahun Abbay, who were imprisoned since 2001, after charged by the Federal Ethics and Anti Corruption Commission (FEACC) as well as several businessmen, most of them freed, except the CBE officials, who are still on trial on their remaining charges, the court was adjourned to rule on the rest of the charges for next week Wednesday, May, 21.

Sugar cane shortage, factory pauses production

By Muluken Yewondwossen

One of the state owned sugar factories, Wonji Showa, has compelled to stop sugar production since last week due to a shortage of sugar cane. Commonly, the Factory stops production for three months starting from the end of June for maintenance and overhaul.
Wonji will stay closed until the end of October 2008.
Sources within the factory and farmers told Capital that the impacts of the sugar shortage will hamper production for three years yet.
Wonji has produced 127 thousand quintals less than last year. whenit produced 700 thousand quintals of sugar. The Factory gets sugar cane, from a plantation nearby. This year 7076 hectares was cultivated by the Factory and farmers association.
Tariku Gebeyehu, agriculture operations head of the factory, told Capital that because of the floods that hit the plantation the sugarcane crop was reduced.
“The sugarcane was cultivated on the volume as always cultivated. The decrease in the supply of sugar cane made the factory to produce below capacity. The lowered production may create sugar shortage in the market,” said Tariku.
According to the sources, it is not only the climate that has affected the plantation, but the 50 meter drainage that the farmers have dug to protect against flood. The drainage is in the land where the factory has reserved for sugar cane plantation.
Wonji Showa sugar factory has seven thousand ordinary and contract employees. It was established 55 years based on Awash River basin.
Metehara and Fincha are the other two state owned sugar factories in addition, Tendaho, that the government is constructing in Afar regional state. When completed it will have the capacity to produce 600 thousand tons of sugar annually.

Bus taxies to stop service in city

Buses that were given permission by the Transport Authority to help ease the transport shortage will stop giving service in the city starting from end of June 2008. The 460 buses, each of 30 seats or more were allowed to give transportation services two years ago.
Birihanu Amsalu, public relations head of the Ministry of Transport and Communications, told Capital that the buses will not be evicted until all the ‘midi’ buses the government has imported at a cost of 166 million birr are sold out.
“The Ministry has decided private buses to give taxi services in the City until June but currently there are five hundred of the new midi buses the government has imported parked in the compound of the Anbessa City Bus Service. The process of selling them to interested buyers will be completed before the end of June,” said Birihanu.
Currently, clients who are interested in buying the ‘midi’ buses that were imported from China are dealing with the Commercial Bank of Ethiopia. They are expected to come up with the 30% down payment while the Bank allows them the remaining sum to be paid over time. Each bus costs close to 332 thousand birr, and the minimum number the government sells is two buses with the maximum, thirty. The 176 buses that were imported earlier are already giving transportation services in the city.
There has been a shortage of transportation beginning from April 24, 2008 after the Code 3 mini buses were made to stop service in the city.
But according to Birihanu, they were not made to stop services permanently but rather they were told to change their license plates to Code 1 like the blue and white taxis that are serving as city taxis.

Market suffers milk shortage

By Muluken Yewondwossen

A shortage of milk supplied to dairy companies is hampering the companies from supplying pasteurized milk, to the market at full capacity.
Sources within dairy farms told Capital that the shortage of raw milk is because of the current drought season, animal disease, shortages and a price hike of animal feed as the major factors for the shortage.
People working at Shola Dairy Enterprise also said that current animal disease and drought that has attacked the rural areas have killed many cattle that belong to the dairy farmers who supply the raw milk.
Sebeta Agro Industry is one of the largest producers of the pasteurized milk known as Mama Milk. Located 40Km west of Addis Abeba at Sebeta town of Oromia Regional State, the Agro Industry obtains milk from 2,000 dairy farmers in and around Sebeta and from its own farm.
Customers in the city complain that they can not find pasteurized milk products as before and when they do, they are charged a much higher price than usual. The customers speculate that this may be the result of an increase in demand after Easter.
A shop owner told Capital that he has sold all the pasteurized milk he had the moment he brought it to his shop.
"A few weeks ago the dairy companies used to bring pasteurized milk to us [retailers] every day. But now they are supplying us only every two days," said the owner of the small shop around Gurd Shola.
Some concerned authorities say that the shortage is occurring because the demand and supply of pasteurized milk is not balanced.

\Export revenues up 31%

By Kirubel Tadesse

The Ministry of Finance and Economic Development (MoFED), has disclosed that revenues collected from exports have shown 31.2 % growth (239.5 million dollars more) in the first nine months of this fiscal year compared to last year’s same period. Collecting slightly over one billion USD, MoFED has accomplished only 58.3% of its target for the year.
Cereals taking a lead by doubling its revenues with 110% from export items, it earned the economy over 100 million dollars, exceeding the 99.9 million dollars target set for the full year. Gold export revenues also registered by 62.4 % increment taking its contribution to 44.6 million dollars from 27.5 of dollars last year same period. Flower exports are also boosting revenues as they showed a 74.1% growth to 76.6 million dollars from 44.0 mln dollars.
In overall numbers, coffee, taking the usual lead, has earned the economy 336.8 million dollars, showing a twenty five percent increment when compared to 269.5 million dollars in last budget year. It’s over all contribution to exports slightly slipped as it was down to 33.7 % from 35 %. Despite improvements shown in all export products, fruits and vegetables exports hit bottom taking down revenue collected to 10.8 million dollars from last year’s 13.3 million dollars. MoFED has targeted to collect over twenty million dollars, well short of the budget year’s first nine months, which only accomplished 53.4% of the target.
Commenting on this export toll, a senior economist anonymously told Capital that the increment in revenues collected alone doesn’t necessarily reflect good performance. “With the dollar getting cheaper and fuel price and inflation shooting up, the price we get for the same volume and of type exports can get higher and we can claim a revenues increment, “explains the economist, “but in order to call the toll a good performance we need to asses whether the revenue increment was the result of volume increase or not, because, if it is not through an increase in export volume, the revenue’s toll is hardly success.”
For the overall economic performance, affirming Prime Minister Meles Zenawi’s recent economic report, MoFED is confident to keep its double digit pace for the fifth successive year by registering 10.8% growth this year.
According to the MoFED report submitted to the House of Peoples’ Representatives, even if the economy is yet to feel the last three months impact in the predicted GDP percentage growth, it is certain that it will be a double-digit one. On the plus side of the performance, a one percentage cut in the contribution of agriculture is apt as MoFED forecasts last year’s 46% agriculture share in the GDP will fall to 44.9%.
Inflation is still persisting despite government efforts to bring it down by lifting Value Added Tax and Turn over Tax on grains, which came into effect mid March this year. On July 2007, the overall inflation rate was 15.9% with food products even higher at, 17.9%. Suffering a continuous swell, it has reached 19% with food above 25% in April, 2008 despite continuous efforts of the government, such as subsidizing wheat for low income urban dwellers. Even if inflation has shown no sign of slowing down food prices, the government was successful in keeping down non-food products. Last July, the inflation on non-food products was above 13% and witnessed improvements over the 10.5% registered in March this year. For the first time in the budget year, it showed an increment after March as 10.7% inflation was reported in April.

Ministry finally accepts Ethiopia’s employers federation election

By Tedla Yeneakal

The Ministry of Labour and Social Affairs (MoLSA) has finally accepted the Ethiopian Employers Federation’s (EEF) Board of Directors election, after it had refused to acknowledge two previous elections, claiming that it did not conform to EEF bylaws.
Last month, the Federation called an urgent General Assembly meeting, whereby it amended its’ statute as well as running another round of a Board of Directors election, with the formation of a new general council.
Tadele Yimer, who has remained in his post as Secretary General, told Capital that the Ministry of Labour and Social Affairs this week accepted the new board and has received a certificate of recognition.
“The crisis is now over and we are very happy at finally being accepted amid the celebration of our 11th anniversary,” Tadele said. “We have improved bylaws in place that include employers from all sectors.”
Teshome Zewdie has been elected president, Yishak Abdulahi of Abas Trading, vice president, Tadele Yimer, Secretary General, Bezuayehu Tadele, chairman of East Africa Holding; Kasahun Bogale, representative of the Adama branch of the EEF; and Tadese Eyasu, representative of the Ethiopian Hotels and Restaurants Association, Wondawok Abeze, representative of the Dire Dawa branch of the Ethiopian Telecommunications Corporation (ETC); Matheos Gechelle of New Generation University College; and Firehiwot Worku of Ethiopian Airlines, were elected as Board members and have been approved by the Ministry.
About a year ago, after the departure of some board members, Teshome and Tadele requested MoLSA to approve substitutes of the seven that they claimed were serving EEF, elected by the General Council and later approved by the General Assembly in February 2007. However, when the Ministry interrogated these substitutes, it found they had no knowledge of their election and therefore it ordered a re-election.
Accordingly, having formed a new General Council and electing a new Board of Director’s in the presence of observers from the Ministry, on August 4, 2007, at the Ghion Hotel, the Federation requested the Ministry’s recognition. However, MoLSA again rejected the election, saying it still does not comply with the bylaws of the Federation and accepted neither the Board nor the Council, before accepting it this week.
MoLSA has the authority to register national employee and employers federations and issue them license certificates and the issuance of a license and the renewal of the existing ones are made after the Federation submits, its annual audit reports from external auditor attached with a list of the Board members approved by the General Assembly.
EEF had been suspended for 25 years during the Derg regime, before it was reorganized in 1997. After the Board of Directors was replaced by the General Assembly in 2004, the Federation had been in a series of disputes and conflicts.

MoFA- Reports on Ethio-Sudan boundary groundless

By Staff Reporter

The Ethiopian Ministry of Foreign Affairs (MoFA) has stated that reports, which claim that the government has given a part of Ethiopia’s territory to Sudan, are groundless allegations. In a statement it issued last week, MoFA said that it refrained to respond to the hearsay as border issues need to be dealt with great care and as it believed that it is unnecessary to respond to such groundless rumor. The ministry added that it is not questionable that the border of two countries, in any part of the world, is decided in accordance with international law and agreement. Accordingly, the border of Ethiopia and Sudan is decided in 1902 and 1907 with the international agreement of the then Ethiopian government and Great Britain, which then colonized Sudan. The border was demarcated in 1903 and 1909 as per the stated agreement.
The statement explains that another agreement was signed between the two governments in 1972 to demarcate the border again during the reign of Emperor Haileselassie I as the border had no sufficient demarcation marks. The two governments have agreed to find sustainable solutions concerning resettlement and farm lands along the border; however, this was interrupted due to the 1974 government change in Ethiopia. The Dergue regime also carried out various activities to find solution concerning the border based on the agreement. “Measures taken by the regime include the formation of a committee, which included various government offices and researchers drawn from Addis Ababa University. The committee was set up to conduct studies on the matter. “
In 1980 the two parties held a meeting in Khartoum, Sudan and reached agreement to restructure the joint border commission set up during Emperor Haileselassie I. However, the Dergue regime was deposed before the border question was solved.
According to MoFA, the current government has taken various measures enabling to establish sustainable and reliable relations between the two governments and peoples. The report explains that in 2001 the two governments have set up a special committee responsible to find solutions to problems regarding farm and resettlement land along the border of the two countries. “The government has enabled neighboring regions participate in the committee with a view to ensuring the benefits of the country and its citizens. The committee has been undertaking activities to prevent displacement and conflict between citizens of the two countries living along the border. “MoFA also stated no Ethiopian or Sudanese farmer has been displaced. Setting border marks is not concluded, the ministry said, adding, what is going on at present is preparation to set the marks in the future.

Universal health access by January 2009

By Kirubel Tadesse

The Ethiopian Ministry of Health (MoH) health extension program will attain universal access by January 2009, MoH performance report of the first nine months of this fiscal year disclosed.
The extension health program, which puts two health workers in every health post established in each Kebele, has so far distributed over 24, 500 workers. According to the MoH report, the overall target of training and assigning 30, 000 health workers in 15 000 health posts in four years, will be achieved as the remaining, 6000 of which some are already in training, will be dispatched to the Kebeles at the start of next year.
The health extension program has sixteen packages that target prevention and control of diseases, personal and environment sanitation, preserving mothers’ and child health and balanced nutrition with other basic health services. So far over 82% of the target [30, 000 women extension health workers] is in service in 8, 528 health posts which coverage is expected to be over 72% of the target this budget year. The extension program target, 15 000 health posts, each with two workers and newly appointed supervisors, is expected to significantly improve heath care system of the nation.
The federal government is striving to realize one health center for every 25, 000 people before the 2008/2009 budget year ends. To achieve this target, the nation needs 3200 centers with only 690 completed up to last budget year, 2,510 centers are still needed. In addition to lack of capacity and management skills to conduct the construction of the centers, the target faced with financial shortage as regional governments couldn’t come up the required budget for the health centers. After bringing various donors on board, MoH managed to collect finance for the construction of 1391 health centers with medical equipments. In 2007, it was agreed that for every hospital the federal government establishes, the regional governments will support by constructing another by themselves. The finance needed for the medical equipments is expected to be covered by MoH as it was disclosed that the camping to obtain financial supports for the projects was a successful one since most donors supported the extension health program. Capital recently reported the visit of Dr. Kent Hill, Assistant Administrator for Global Health of the United States Agency for International Development (USAID). Dr. Hill had told Capital that the program is expected to improve the access of health services considerably while it avoids the risk of losing mid-skilled professionals overseas.

ICT Park pre work to be launched

By Tagu Zergaw

The Information and Communications Technology (ICT) park to be built here in the capital and scheduled to be finalized last month March 2008 is delayed due to certain factors that the Ministry of Capacity Building has now announced as resolved.
The park will be built on a 200-hectare plot seven kilometers from Bole International Airport. In December 2007 while ushering the inception of the park construction it was also announced that the construction of physical infrastructure including access roads, water sewerage system, electric and telephone installations.
Tefera Walwa, Minister of Capacity Building told the House of Peoples’ Representatives in April 2008 that the pre feasibility study to invest on the sector has been finalized.
“The pre feasibility study that was conducted by institutions from India and the U.S.. And now the pre work to enter the investment can be started,” said the Minister.
Appraisal and design of the project including the pre feasibility study are being undertaken by WITRO, an Indian company, and U.S. ICT giant CISCO.
According to Tefera, three factors are anticipated to hamper on the way of progressing the project further. The time spent while projects are evaluated and processed by the World Bank, ICT users mastering the ICT sector ahead of what is planned to be done and shortage of trained manpower in the sector are the reasons that will slow down the further development of the project.
To reduce unemployment in the sector, generate foreign currency, and contribute to the development of ICT in the country are the main objectives of the project.

Ethiopian force 20 minutes Heathrow closure

By Groum Abate

The northern runway of Heathrow Airport had to be closed for 20 minutes after an Ethiopian Airlines aircraft arriving at the airport burst a tyre on landing, reported BBC.
The incident occurred when the aircraft operated by Ethiopian Airlines landed shortly before 2:10 pm local time on Thursday May 15.
“The aircraft made a routine safe landing, exited the runway and passengers disembarked,” a Heathrow airport spokesperson said.
The runway was closed until 2:30 local time while an inspection took place.
BBC added quoting the airport spokesperson: “The runway was closed for 20 minutes as a precautionary safety measure while an inspection was carried out.”
She said the closing of the runway had no further impact on travel at the airport.
In other news, Ethiopian Airlines has been selected on a shortlist for the 26th Official Airline Guide (OAG) Airline Industry Award, world’s authority on flight information.
Ethiopian Airlines has been nominated as Best Airline based in Africa along with Egyptair, Kenya Airways, South African Airways, and Virgin Nigeria.
The winners will be announced at an awards ceremony on Wednesday, 4 June in the opulent art deco setting of The Bloomsbury Ballroom in central London. Boeing is the Awards’ headline sponsor.
A total of 45 different airlines, three more than in 2007, have received nominations in 15 regional and global categories.

Power shortages become critical

By Groum Abate

The Ethiopian Electric Power Corporation (EEPCo), is going to increase the number of hours of power shedding in the country to 14 hours on each blackout day.
The corporation has been cutting power for two days a week for 14 hours but has now started to cut power five days in two weeks as of this week.
If the situation persists the corporation would cut power every other day by the end of the next month, June.
The corporation some weeks back announced that the power interruption would continue for the next two or three months, after the corporation faced a power shortage of over 40% in the capital city, Addis Ababa.
The increase in the number of days comes after the corporation announced that it will add another hour per day of power shedding.
Out of the total 200MW of electric power needed for Addis Ababa the corporation was short 80MW last month but now, the problem is more serious.
The corporation is trying to cope with the problem by installing over 45 diesel generators that cost the corporation over 100 million birr a month. However, the emergency diesel generator that could generate over 100MW planted around Akaki area has not started operating yet.
EEPCo is awaiting the rainy season and added that the disparity has occurred due to ever increasing demand.
As the problem become ever more severe bakeries and printing presses are said to be ceasing giving service as they consume high power. Furthermore sugar factories and cement factories also seized production for power shortage.
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.

Ethiopian coffee highlighted in Minneapolis, USA 10 investors already signed

By Abiy Demilew

Sponsored by the Ethiopian government, the 20th Annual Specialty Coffee Association of America (SCAA) Conference and Exhibition, was held in Minneapolis, Minnesota, USA, from May 2-5, 2008, with Ethiopian coffee highlighted and more than 10 investors already signing to buy Ethiopian brand coffee.
SCAA, America’s leading coffee exhibitor and festival, with annual visitors of about 8,000 coffee professionals from more than 40 countries, traditionally gathering at the global coffee event of the year; has chosen Ethiopia as a portrait country of the event under the theme of “Roots”.
Theodros Yilma, Managing Director, Alpha Trading Partners Plc, told Capital that, the opportunity gave a special opportunity for the Ethiopian delegation, composed of senior government officials, coffee exporting individuals and groups and associations, to portray a positive image of the country to the world.
“This international exhibition has offered Ethiopia to be a portrait country for being the original home of coffee,” Theodros Yilma told Capital. “We had more than 700 visitors at our opening ceremony, which embraced a traditional music presentation and accompanied by a big gala dinner, served Ethiopian national dishes,” Theodros explained.
According to Theodros, Ethiopia gave special attention for this special opportunity and was represented by a more than 40 member delegation, led by Yackob Yana, State Minister, MoFED; and Getachew Mengiste, Director General of Ethiopian Intellectual Property Office.
The annual international gathering features participants from every segment of the coffee industry, including coffee producers, exporters and importers, roasters, retailers, manufacturers and baristas.
“More than ten investors, from US and Canada, have shown interest to buy Ethiopian coffee and signed agreement with Ethiopian Intellectual property office’ requirement,” Theodros revealed Capital. And according to him, the office, on the closing day, has held a special ceremony and awarded the applicants.
Celebrating 26 years of success, SCAA is the world’s largest coffee trade association. SCAA members are located in more than 40 countries and represent every segment of the specialty coffee industry, from coffee growers to coffee roasters and retailers.
According to reports, to date, more than 70 companies have signed up or are committed to becoming licensed distributors of Ethiopia’s most famous fine coffees, and are committed to promote the brands in collaboration with a new multi-stakeholder group.
“Our association is pleased and honored to invite Ethiopia as the Portrait Country sponsor at our 20th Annual SCAA Conference & Exhibition in Minneapolis,” said SCAA Executive Director Ric Rhinehart, before the opening. “As Ethiopia has been at the forefront in delivering premium specialty coffee since the very beginning, it is especially fitting for the nation to participate at our `Roots’ themed conference in Minneapolis.”
Ethiopian Ambassador to the US, Dr. Samuel Assefa, who also gave an opening remark, expressed his gratitude on behalf of the people of Ethiopia, at the announcement of the news.
“We are delighted to be chosen as the Portrait Country sponsor at such a preeminent global coffee event as the SCAA’s annual conference. As the birthplace of coffee, Ethiopia is excited to be such an important part of the specialty coffee industry’s premier conference and exhibition,” Samuel said.
Ethiopia, after long battle of claiming ownership, had Yirgachefe, Harar and Sidamo coffees trademarked in May 2007.

AACCSA starts to deliver service in every sector

By Addis Mulugeta

To provide the necessary service and information to the business community, the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) has started a new system of service delivery to all sectors of the business community. This was announced on May 15, 2008, at the Exhibition Center.
Tamerat Admas, deputy secretary of AACCSA, told Capital that the study that encompasses every sector has taken one year. AACCSA has been taking the experience from a sister Chamber of Commerce abroad and foreign consultants have also participated in the study. The service mainly focuses on the interest of the business community to enhance and amplify problems in business activities. He said that out of 11 sectors they made the first meeting with owners of import and agency to elect five Executive Committee members. Each of the Executive Committee members will meet once a month to amplify the problems of the business community and to find a solution. However, all of the Executive committee will meet once in six month for a general meeting. Each of the Executive committee could identify problems related with the business activity and their inputs will be presented to the AACCSA and the government as well.
AACCSA president, Eyesuswork Zafu on his part said that the business communities have enormous problems including those related with customs. However, the critical and core solution the business community has become the member of AACCSA.
He added that the government has started to answer questions from the business community including the return of the Chamber’s building.
The Deputy Secretary noted that the major objectives of AACCSA are to support business by providing information and service, provide technical assistance, training and undertake to upgrade the quality of economic activity, promote more flexible and hospitable economic environment with especial focus on the small and medium businesses, encourage and promote business ventures that contribute to a large employment base and exports, create awareness among members of the business community on policies, proclamations, and directives to be issued by the federal as well as the regional governments, settle disputes arising out of business transactions by way of arbitration, and other alternative dispute resolution mechanisms when the parties so request and issue certificate of country of origin upon delegation by the government.

COMESA to launch Customs Union by year end

By Groum Abate

COMESA member states were called upon to rededicate their commitments towards the implementation of integration measures to realize a common Customs Union.
It was imperative for the countries to pursue the strategies at country level to ensure that people in the region enjoy sustainable development as envisioned at the establishment of the economic bloc, the Vice President of COMESA said.
“I am glad that member states are in the process of aligning their national tariffs on the Common External Tariff adopted by the last Summit of the COMESA Authority. It is imperative that we maintain a common purpose and vision as we have previously done”, he said.
The Vice President was speaking when he officially opened a two-day Extra Ordinary meeting of the COMESA Council of Ministers at a Nairobi hotel.
Nineteen Ministers and senior officials from COMESA member countries are attending the meeting.
The countries include Egypt, Burundi, Ethiopia, Democratic Republic of Congo, Eritrea, Madagascar, Malawi, Rwanda Seychelles, Sudan, Swaziland, Uganda, Zambia, Mauritius, Comoros, Djibouti, Zimbabwe and Libya.
Musyoka urged member states to address challenges posed by global economic trends such as the rapid increase in oil prices, decline in food production and stagnation in the multilateral trade negotiations.
He also called on the COMESA secretariat to work closely with member states to raise agricultural productivity and competitiveness under the comprehensive African Agricultural Development programme.
“The agricultural sector provides up to 80 percent of the region’s population hence the need to sustain it particularly through value addition”, he added.
Musyoka at the same time observed that unfolding events at the multilateral levels will continue to affect the region citing the stalled negotiations at the World Trade Organization (WTO) development round and the critical stage in the talks with European Union for Economic Partnership Agreements.
He underscored the importance of peace and security in economic development of the region, expressing confidence that African countries are able to resolve their own conflicts.
He at the same time commended the outgoing Secretary General of the COMESA, Mr. Erastus Mwencha, for “his able stewardship during his 10 year term at the organization and I wish him well in his new appointment as the Deputy Chairperson of the African Union”.
Deputy Prime Minister and Minister for Trade, Mr. Uhuru Kenyatta said COMESA being the largest trading arrangement in Africa with a population of 400 million people plans to launch a Customs Union by the end of this year.
Uhuru said to-date COMESA has made tremendous progress in implementing various programmes and activities in the region, adding that the integration has seen Intra-regional trade increasing to approximately 8 billion US dollars.
He said COMESA is also focusing on key areas which are critical to the development of the region including the investments and private sector development, agriculture and food security, infrastructure and ICT development, as well as peace and security.
Kenyatta said COMESA was also spearheading a number of on-going multilateral negotiations which he said would ensure the region reaps maximum trade benefits.
The out going Secretary General of COMESA, Mr. Mwencha, thanked the COMESA member states for their support and cooperation during his term in the regional body.
He expressed confidence that the region would realize its aspirations, particularly in the creation of the Customs Union and harmonization of policies between various economic blocks in order to improve Intra-African States.
He said the Economic Partnership Agreements with the European Commission have been concluded with an interim agreement to minimize interruption of smooth flow of trade between the two blocs.
The meeting was preceded by a Bureau conference of Ministers from Kenya, Djibouti and Zimbabwe.
Kenya is the current chair of the COMESA Heads of States Summit but should have handed over to Zimbabwe during a meeting that had been scheduled for Harare in May this year.
Reports indicate that the COMESA Ministers are scheduled to select a new venue for the meeting amid the on-going political crisis in Zimbabwe.
The Ministers are also set to appoint a new Secretary General to replace Erastus Mwencha who headed the Zambian based Secretariat for ten years before retiring last year.

African growth projected at 6%

By Groum Abate

The 2007-2008 African Economic Outlook report, jointly published by the African Development Bank (AfDB), the OECD Development Centre and the ECA, reports that Africa’s rate of GDP growth is expected to strengthen to approximately 6.0 per cent in 2008 and that this level is likely to be maintained in 2009. The report, which was launched on May, 11 at the AfDB Annual meetings in Maputo, Mozambique , highlights the fact that the region has continued to experience high economic growth in recent years.
Notably, Africa ‘s real GDP growth of 5.7 per cent in 2007, was well above the long-term trend for the fifth consecutive year. The report also found that economic growth is becoming more broad-based with more countries expected to achieve rate of GDP growths above 5.0 per cent.
The report notes that Africa ‘s recent growth performance has been supported by strong external demand for oil and non-oil minerals, increased investment in these sectors, and good weather conditions for agriculture. It also notes that the continuation of sound macroeconomic policies in most African countries has increased business confidence leading to a general pick-up in private investment. Besides, recent initiatives such as the Multilateral Debt Relief Initiative, have created more room for increased public investment in many countries.
“Yet, the continent still needs to accelerate and sustain growth to the rate of 7 to 8 per cent to be able to achieve the Millennium Development Goal (MDG) of halving the proportion of people living in extreme poverty by 2015,” says Dr. Louis Kasekende, the AfDB Chief Economist.
Dr. Kasekende also warned of the emerging inflationary pressures on African economies from the recent sharp rise in food prices. He notes that “there is a big risk to unwinding progress made by many countries in attaining the MDGs, especially the likelihood of pushing millions back into poverty, if the current high food prices persist.”
The Outlook also includes a focus on a topic of high relevance for policy-makers in African countries. The 2007/2008 AEO focused on the theme: Technical Skills Development and Vocational Training in Africa.

‘Rights of persons with disabilities’: call for action

By Groum Abate

In December 2006 the UN Convention on the Rights of Persons with Disabilities (UNCRPD) was agreed by the UN General Assembly. The challenge now is to encourage governments to ratify the Convention, and most importantly to see that all governments implement the changes needed to ensure that persons with disabilities have full and equal enjoyment of all human rights.
In regards to this conference ‘UN Convention on the Rights of Persons with Disabilities: a Call for Action on Poverty, Lack of Access and Discrimination’ is organized by UN Economic Commission for Africa (UNECA) and Leonard Cheshire Disability (LCD), that is going to launch on Monday May 19.
The objective of the conference is to support governments’ efforts to ratify the UNCRPD and to help ensure that the process of implementation is transparent, meaningful and fully inclusive.
The meeting will also examine what changes are required to combat the poverty, lack of access and discrimination that people with disabilities face. It will also draw up a global call for action to ensure that persons with disabilities have full human rights.
According to the organizers, the conference is the second in a series of joint UN Regional Commission and LCD global meetings on disability. The conference is also expected to provide a platform for debate on policies, barriers to inclusion, best practice and the formulation of concrete strategies for the implementation of the UNCRPD.
Panel sessions and workshops will explore good practice and identify strategies for the implementation of the new Convention to combat the challenges of poverty, lack of access and discrimination.
The coming into effect of the treaty has marked a new era in efforts to protect the rights of the world’s 650 million persons with disabilities.
Announcing the four-day conference, due to open Monday, the organizers said that the challenge is to encourage governments to implement the changes needed to ensure that persons with disabilities have full and equal enjoyment of all human rights.
The treaty asserts the rights of people with disabilities to education, health, work, adequate living conditions, freedom of movement, freedom from exploitation and equal recognition before the law.
Participants at the conference will include representatives of UN agencies, governments and other international organizations as well as academics, entrepreneurs, non-governmental organizations and disabled peoples’ organizations from around the world.