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Tenants object eviction notice

By Groum Abate

The Agency for Government Houses (AGH) has written eviction letters to its over 600 tenants warning that they should leave the houses in ten days period.
Some of the tenants protesting the eviction took their complaints to the Ministry of Works and Urban Development (MoWUD) and then to the Prime Minister's Office.
According to these tenants, the board of directors headed by Abadula Gemeda, had accepted their appeal in 2005 and decided in their favor. The over 700 tenants, then, are said to have bought the keys to the house from previous tenants and occupy the houses illegally. The then Rented Houses Administration had terminated their contracts but latter, after the board decided in their favor and allowed them to stay in their houses, some 300 of them signed a contractual agreement with the agency, while the rest were told to wait.
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Fuel price rise despite global ease

By Groum Abate

Despite the global oil price decline in recent weeks, Ministry of Trade and Industry announced that it has increased oil and oil products prices on Friday October 3, 2008.
The much anticipated fuel price readjustment that has been excepted to be implemented when the global oil prices were shooting up to a record high of 150 dollars a barrel, has now been adjusted on regular petrol from the previous 9.61 birr per litre to 10.15 birr a litre here in the capital.
The price of jet fuel rose to 8.59 birr from the previous 7.39 birr. Furthermore, the ministry has also announced adjustments on light black diesel to 7.84 birr, white diesel to 9.62 birr and heavy black diesel to 7.39 birr per litre.

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Parliament opens tomorrow
Auditor General’s report among first week’s agenda

By Kirubel Tadesse

The third parliament's fourth year starts tomorrow Monday, October 6, 2008, with the House of Peoples' Representatives and Federation joint session expected to deliberate on President Girma Woldegiorgis opening remarks.
The opening session which will be televised live to the nation is open for diplomats residing here in Addis Ababa and other invited guests to the House for this first session.
On Tuesday, October 7, the official business of the House of Peoples' Representatives will start and it is scheduled to hear the finds of the independent committee set to evaluate the government's claim that the Auditor General has committed a ridiculous mistake in its conclusion that accused the government with excess borrowing. The latter had accused the former of borrowing an excess 3.3 billion birr during 2005 budget period while senior government officials including Prime Minister Meles Zenawi and Minister of Finance and Economic Development, Sufian Ahmed, say otherwise.

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Authority underlines local bakeries’ shortcomings

By Addis Mulugeta

Following a thorough study on bakeries in Addis Ababa, the Ethiopian Quality and Standard Authority (EQSA) concluded that they are not fully equipped and fail to meet the standard set.
For the viability of the study, which was started in March 2008, a committee composed of 16 people from different disciplines and professions was formed.
Erkyihun Tamene, Certification Officer of EQSA told Capital that both his organization and the Ministry of Trade and Industry (MoTI) initiated the study that took almost a month.
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City’s daily water supply to increase

By MulukenYewondwossen

The Addis Ababa Water and Sewerage Authority (AAWSA) plans to drill 40 deep wells to increase its supply of water by 120,000 m3 per day. The current daily water supply is 256,000 m3.
Four foreign and local companies have shown interest for carrying out the drilling, but the Authority feels that they do not have adequate capacity to drill deep wells. It hence plans to import machineries capable of drilling deep and undertake some of the projects by itself. The project is anticipated to be completed within one year.

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Newspaper listing condo winners creates havoc

By Groum Abate

Following the Addis Ababa City Administration's announcement that it will transfer some 11,005 condominium houses to beneficiaries, long lines were formed in Kebeles and at Berhanena Selam Printing Enterprise, to get a copy of the list of the lucky winners.
The 104,000 copies of the bi-weekly Addis Lisan printed by the City Administration, published the names of the lucky winners of the condominium houses built in the city. The newspaper does not print more than 10,000 copies in any other normal day.

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Awash Bank to build branch offices

By MulukenYewondwossen

The first private bank after the fall of the Derg regime, Awash International Bank (AIB), is to build branch offices in four different towns, Adama (Nazareth), Shashemene, Nekemt and Gimbi. Construction of the buildings is expected to commence this budget year.
AIB has already selected the design for the Nekemt branch and awarded the contract to Homa Construction. A construction company as well has been hired to build the Shashemene branch. For the prospective branches in Adama and Gimbi, AIB has selected a design and leased a plot.

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ECX to establish Market Information Kiosks
Solicits USD 26 mln

By Tagu Zergaw

The Ethiopia Commodity Exchange (ECX) is soliciting to raise 26 million dollars to create information affluence and enable prosperity by establishing a Market Information Kiosk for the inhabitants of every Ethiopian village, as part of its Commitment to Action.
ECX, represented by its Chief Executive Officer Eleni Z. Gabre-Madhin (PHD), participated in a panel discussion on Poverty Alleviation and Food Security on September 25, 2008 at the Annual Meetings of the Clinton Global Initiative (CGI), held in New York. ECX has also become a member of the Clinton Global Initiative (CGI).

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United Insurance raises capital

By Muluken Yewondwossen

Shareholders of the United Insurance Sh. Co. (UNIC) have decided to raise their company's paid up capital by 22 million birr on their 14th annual and 6th extraordinary general meeting. The general meeting also elected the three board members who will serve for one year.
To replace the three board members who completed their terms in the board membership, six candidates were nominated by the assembly- Almaz Haile Selassie, Fekade

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Lundin Petroleum shares interests from exploration in Ethiopia

By Tagu Zergaw

Lundin Petroleum, a Swedish company undertaking petroleum exploration in southern Ethiopia has signed a Producing Sharing Contracts (PSC) with New Age (Global African Energy). According to the agreement Lundin Petroleum will transfer 15% license interest to Global African Energy.
The contract agreement will be practical following its approval by the concerned regulatory authorities of Ethiopia.
MORE

Addis Ababa to host two major leather events

By Muluken Yewondwossen

The seventeenth international United Nations Industrial Development Organization’s (UNIDO) Leather and Leather Products Industry Panel will take place in parallel with the Second All African Leather Fair (AALF), from January 20 to 22, 2009 here in the capital of Ethiopia.
Ethiopia is the second country in Africa to host such a panel after the 1993 event which was organized in Kenya. The sixteenth panel was held in Brazil.

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International
Non-Violence Day Celebrated

By Addis Mulugeta

In commemoration of the 2nd International Non-Violence Day held on the 139th birthday of Mahatma Gandhi, and the 60th anniversary of India-Ethiopia diplomatic relations, a series of events were hosted by the Embassy of India in Addis Ababa, on Thursday, October 2, 2008.
To mark the day, a special ceremony was held at the Gandhi Memorial Hospital where floral tributes were paid at the bust of Mahatma Gandhi. A photographic exhibition was opened at the UNCC depicting Gandhi's life to enable the wider public to learn about the life and ideals of the great man

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Mo Ibrahim African Governance Index unveils tomorrow
Atomic Energy chief on board 

By Kirubel Tadesse

The Mo Ibrahim Foundation’s African Governance Index-2008 will be revealed tomorrow, Monday October 6, 2008, here in Addis Ababa, Ethiopia.
Founded in October 2006, the Mo Ibrahim Foundation assesses the forty eight sub-Saharan African governments against its fifty eight criteria, to rank them on its annual index as per their governance performance.

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New water treatment device introduced

By Groum Abate

Ethio-Archimedes Solar Electrical Mechanical Engineering and Trading Plc introduced Watalys, a system that produces a chlorine disinfectant - a new water treatment device.
Watalys is a portable device for disinfecting and producing clean drinking water.

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MoARD defends agriculture's muscle to lead

By Kirubel Tadesse

Responding to critics, Dr. Abera Deressa, State Minister of Agriculture and Rural Development (MoARD), said that the latest imports of wheat doesn't undermine the 10% growth the agriculture sector has registered over the last ten years and its capacity to lead the nation's economy.
Experts in the field say that the government should review its expectations of the sector and the recent imports of wheat - the latest reportedly from South Africa - shows that the sector can not even satisfy local demand.

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Tenants object eviction notice

By Groum Abate

The Agency for Government Houses (AGH) has written eviction letters to its over 600 tenants warning that they should leave the houses in ten days period.
Some of the tenants protesting the eviction took their complaints to the Ministry of Works and Urban Development (MoWUD) and then to the Prime Minister's Office.
According to these tenants, the board of directors headed by Abadula Gemeda, had accepted their appeal in 2005 and decided in their favor. The over 700 tenants, then, are said to have bought the keys to the house from previous tenants and occupy the houses illegally. The then Rented Houses Administration had terminated their contracts but latter, after the board decided in their favor and allowed them to stay in their houses, some 300 of them signed a contractual agreement with the agency, while the rest were told to wait.
Three years later, the tenants told Capital, once again they are asked to leave. They argue it is unfair to evict them and claim that they went to court and the latter has ruled in their favor. However the Agency appealed to a higher court and the case is adjourned for October 14, 2008.
They said that the agency's eviction letter is not timely. According to them, the newly ratified proclamation that enables the agency to take measures without having to go to court can not be applied on their case as theirs is already in court.
The tenants presented their complaint to the office of the Prime Minister and were appointed for Tuesday October, 7, 2008.
Recently the agency planned to evict over 3,000 illegal tenants who have failed to settle their rental bills and those who acquired the houses illegally. The agency has also finalized preparations for a forceful measure against illegal occupants.
The agency was restructured into its current form in December 2007. The previous Rented Houses Agency (RHA) was combating 1,006 court cases that range between three to 20 years old. It also has not been able to collect the over 120 million birr accumulated rental debts from its tenants. The MoWUD restructured the RHA into the AGH.
A study conducted by MoWUD, reveals that 87% of the Agency's tenants had built illegal extensions. From the approximately 16,000 house the Agency manages, 7,000 of them have serious problems, the study revealed.
The agency is also battling the problem of the illegal transfer of properties. Evicting such tenants often involves lengthy and complicated litigation. In a bid to end this problem, Parliament approved a reform that bestows the power for the current agency to take measures against tenants that it considers are illegal, without having to go to court. It also enforces the demolishing of illegal construction works undertaken on government houses and agencies.
Eight months after the reform, the agency is now set to taking measures.
The RHA was established a year after a proclamation that confiscated urban land and extra houses was declared in 1975 during the military regime.
From 2002 to 2008, the AGH has not renewed agreements with tenants living in 1,048 houses, according to a study it undertook. Residents of 302 houses do not have contractual agreements with the agency, while 258 houses are in the hands of illegal tenants. The city administration also has demolished 175 houses of the agency without paying compensation, the study said.
The AGH has an estimated 16,000 houses in Addis Ababa and Dire Dawa and is carrying out a census to know the exact number of houses under its administration.
In the last budget year the agency collected 193.6 million birr in profits.

Fuel price rise despite global ease

By Groum Abate

Despite the global oil price decline in recent weeks, Ministry of Trade and Industry announced that it has increased oil and oil products prices on Friday October 3, 2008.
The much anticipated fuel price readjustment that has been excepted to be implemented when the global oil prices were shooting up to a record high of 150 dollars a barrel, has now been adjusted on regular petrol from the previous 9.61 birr per litre to 10.15 birr a litre here in the capital.
The price of jet fuel rose to 8.59 birr from the previous 7.39 birr. Furthermore, the ministry has also announced adjustments on light black diesel to 7.84 birr, white diesel to 9.62 birr and heavy black diesel to 7.39 birr per litre.
The price adjustment was made following the 69th regular session by the Council of Ministers which approved a readjustment study submitted to it.
The last adjustment on fuel prices was made by the government at the end of January 2008, with the price of regular petrol rising from 7.77 birr to 9.61 birr, a 1.84 birr increase. Kerosene had also risen to 5.72 birr after a 1.60 birr increment. Whereas, diesel went from 5.44 birr to 6.90 birr, and jet fuel went up to 7.39 birr from 5.16 birr.
The government has been subsidizing fuel and during the past three years it spent more than 7.7 billion birr in petroleum subsidies.
In related development, Ministry of Transport and Communications announced price readjustments on public transport services.
The fares for city taxi mini-bus will be 70 cents for up to 2.5 km, 1.40 birr for up to 7 km, 1.85 birr for up to 10 km, 2.05 birr for up to 12 km and 2.60 birr for up to 15 km.
The ministry has also adjusted midi-bus and city bus fares. City bus fares increased by 0.15 birr, setting the lowest price to 0.65 birr from the previous 0.50 birr.
The amount of fuel import bills during the first nine months of the last Ethiopian fiscal year surpassed export earnings secured over the same period. The amount of imported fuel over the same period amounted to 10.07 billion birr.
The price for crude oil produced by the Organization of the Petroleum Exporting Countries (OPEC) eased by a further 0.72 dollars on Thursday, October 2, 2008 OPEC announced on Friday. One barrel (159 litres) of OPEC crude stood at 89.28 dollars on Thursday October 2, 2008, compared with 90.00 dollars on Wednesday, October 1, 2008.
The volume of fuel imports during the first nine months of the last fiscal year registered a 10% increase against that of the same period in 2007/08 fiscal year. During the first nine months of the 2007/08 budget year, fuel imports stood at six billion birr, over four billion birr lower than that of the reported first nine months of the last fiscal year.
The country's fuel consumption during the stated first nine months reached 1.37 million tones.

 

Parliament opens tomorrow
Auditor General’s report among first week’s agenda

By Kirubel Tadesse

The third parliament's fourth year starts tomorrow Monday, October 6, 2008, with the House of Peoples' Representatives and Federation joint session expected to deliberate on President Girma Woldegiorgis opening remarks.
The opening session which will be televised live to the nation is open for diplomats residing here in Addis Ababa and other invited guests to the House for this first session.
On Tuesday, October 7, the official business of the House of Peoples' Representatives will start and it is scheduled to hear the finds of the independent committee set to evaluate the government's claim that the Auditor General has committed a ridiculous mistake in its conclusion that accused the government with excess borrowing. The latter had accused the former of borrowing an excess 3.3 billion birr during 2005 budget period while senior government officials including Prime Minister Meles Zenawi and Minister of Finance and Economic Development, Sufian Ahmed, say otherwise.
Despite strong criticism from the opposition, the government pushed for the establishment of an independent committee to look into the find of the Auditor General report.
The opposition unanimously protested the establishment of this committee led by former State Minister Hailemelekot Hailegiorgis. MP Lidetu Ayalew, Chair of the opposition party United Ethiopian Democratic Party (UEDP-MEDHIN) that chairs the House's Public Accounts standing committee, strongly argued that the task is by law given to its committee. UEDP-MEDHIN had even threatened to review its participation following the establishment of the independent committee.
Talking to Capital this week, MP Lidetu Ayalew explained that his party is waiting to learn the results of the independent committee before it decides how to proceed. "We also choose to wait because the law gives the committee we chair a mandate to review the Auditor General's report no matter what the independent committee finds may be, and we are hearing that this is not protested by the ruling party. So we want to clear these things first when the House reconvenes next week before taking any measure, "Lidetu said. According to one MP Capital approached, if the Public Accounts committee will review the report again, it means that the finds of the independent committee will not be final.
The independent committee led by Hailemelekot with other four members including Woldiye Ameha (PhD), Chairman of Ethiopian Economists Association, was set to submit its findings by September 25, 2008 to the House's Speaker Teshome Toga. The Committee is expected to present its find to the House, on Tuesday's regular session.

 

Authority underlines local bakeries’ shortcomings

By Addis Mulugeta

Following a thorough study on bakeries in Addis Ababa, the Ethiopian Quality and Standard Authority (EQSA) concluded that they are not fully equipped and fail to meet the standard set.
For the viability of the study, which was started in March 2008, a committee composed of 16 people from different disciplines and professions was formed.
Erkyihun Tamene, Certification Officer of EQSA told Capital that both his organization and the Ministry of Trade and Industry (MoTI) initiated the study that took almost a month.
“This is only a draft, the final version will be drawn after MoTI’s revision is completed. The research has three objectives - to observe the kind of technologies bakers use, to find out the real situation, and to gather basic information from bakers and consumers to conduct sample study,” said Erkyihun.
Before launching the study and right after the conclusion of the draft, EQSA summoned all bakers for a meeting. 156 bakers attended the first meeting and125 of them were present at the second meeting.
“All their constraints were discussed with the bakers during the two meetings EQSA called,” added Erkyihun.
The general outcome of the study is that bakers do not meet the quality and standards set. They use outdated technology to the extent of using traditional wood fire for baking. They also use traditional system of dough cutting or scraper resulting in inconsistency in the weight of the bread.
QSAE is the national standards body of Ethiopia established in 1970. It became fully operational in 1972. Meanwhile, QSAE has undergone several restructuring. Its latest plan includes sarranging and allowing private business persons to benefit from the opportunities QSAE offers.
“At the end of the day, when the study is concluded bakers will be able to see their weaknesses and adapt new technologies for saving time and energy resulting in a quality supply,” Erkyihun said.

City’s daily water supply to increase

By MulukenYewondwossen

The Addis Ababa Water and Sewerage Authority (AAWSA) plans to drill 40 deep wells to increase its supply of water by 120,000 m3 per day. The current daily water supply is 256,000 m3.
Four foreign and local companies have shown interest for carrying out the drilling, but the Authority feels that they do not have adequate capacity to drill deep wells. It hence plans to import machineries capable of drilling deep and undertake some of the projects by itself. The project is anticipated to be completed within one year.
Currently AAWSA is about to complete its drilling project of 72 shallow wells, each with an average depth of 200 meters. When these wells are linked to the water supply system, in the first few months of 2009, they will add up to 300,000 m3 to the water volume supplied each day.
Getnet Gessesse, head of public relations of AAWSA, told Capital that the new deep wells will have an average of three fold depth to the 200 mts shallow wells. The deep wells will increase the daily supply to 420,000 m3.
"The deep wells are anticipated to be drilled around Ayat and Legedady (Eastern part of the city),'' said Getnet.
A week earlier the new mayor of the city, Kuma Demeksa and other members of the cabinet along with AAWSA's board chairman Hailemariam Desalegn carried out a tour through water projects and dams. Based on the visit, on October 1, 2008, the Mayor held discussions with the Authority's officials on AAWSA's future plans and made a commitment to assist the Authority in any way possible.
This budget year, the city administration allocated 1.2 billion birr for AAWSA's on going and new projects within the year.
The water demand in the city is fast increasing and has now reached 470,000 m3 while the supply is only 256,000 m3, equivalent to 50% lesser than the demand. Considering the growing demand, AAWSA proposed dam projects on Sibilu and Gerby which are considered to be costly. These projects were to cover the water demand of the city for the next 20 years, but not applied because the expected donors and monetary organizations didn't response. To resolve the shortage AAWSA and the City Administration are now focusing on drilling wells.
In related development, AAWSA is currently upgrading the Gefersa Dam to increase the current 23,000 m3 daily supply by 7,000m3, which is expected to be completed during this budget year.
While for the study of the expansion work of the Legedady dam (the largest dam) to increase its supply capacity from 165,000 m3 to 195,000 m3, AAWSA has already selected international consultants and sent their offer to the World Bank and Agence Francaise de Development for no objection.

 

Newspaper listing condo winners creates havoc

By Groum Abate

Following the Addis Ababa City Administration's announcement that it will transfer some 11,005 condominium houses to beneficiaries, long lines were formed in Kebeles and at Berhanena Selam Printing Enterprise, to get a copy of the list of the lucky winners.
The 104,000 copies of the bi-weekly Addis Lisan printed by the City Administration, published the names of the lucky winners of the condominium houses built in the city. The newspaper does not print more than 10,000 copies in any other normal day.
Newspaper vendors complained that the City Administration prohibited them from getting more copies than what they used to collect for their subscribers. These vendors told Capital that they went to the mayor's office, on Friday October 3, 2008, to appeal, but were notified that they could not take more copies of newspaper than what they used to. The Administration announced that the newspaper would be distributed through Kebeles as well.
The newspaper that should have been published on Wednesday, October 1, 2008, was late due to the large number of copies ordered. Addis Lisan hence hit the shelves on Friday October 3, 2008. The Administration had drawn the lottery for the lucky winners on Sunday, September 28, 2008.
30% of the total houses that vary in size and number of bedrooms were allotted to women. The beneficiaries should pay 20% of the cost in advance and finalize bank loan processes and other formalities within a month time.
According to the information from the housing development department of the administration, it plans to finalize and transfer other houses every quarter of a year.
The Addis Ababa Houses Development Project Office said that the price of the houses does not include the costs of infrastructure, sewerage and road that are subsidized by the government.

 

Awash Bank to build branch offices

By MulukenYewondwossen

The first private bank after the fall of the Derg regime, Awash International Bank (AIB), is to build branch offices in four different towns, Adama (Nazareth), Shashemene, Nekemt and Gimbi. Construction of the buildings is expected to commence this budget year.
AIB has already selected the design for the Nekemt branch and awarded the contract to Homa Construction. A construction company as well has been hired to build the Shashemene branch. For the prospective branches in Adama and Gimbi, AIB has selected a design and leased a plot.
Currently AIB has 47 branch offices, of which 21 are located outside Addis Ababa.
According to the Bank’s last year report, its administrative and general expenses were 46.6 million birr, out of which sum 12.6 million birr accounted for office rental fee. In 2006 the bank has paid 9.1 million birr for house rents.
In April 2006 AIB along with its sister company, Awash Insurance, signed a contract agreement with Geometra Luigi Varnero for the construction of their headquarters in Addis Ababa. The 16 and 14 storey twin buildings which are currently under construction will rest on a 3000 square meters plot of land at a total cost of 153.3 million birr. The twin buildings are expected to be completed during the first months of the year 2009.
Awash International Bank was established in November 1994 and it started operation in February 1995 with the authorized 300 million birr capital which has now grown to 500 million birr.
Awash has recorded a net profit of 126.6 million birr for the year2007 which is 33% higher than the previous year.

 

ECX to establish Market Information Kiosks
Solicits USD 26 mln

By Tagu Zergaw

The Ethiopia Commodity Exchange (ECX) is soliciting to raise 26 million dollars to create information affluence and enable prosperity by establishing a Market Information Kiosk for the inhabitants of every Ethiopian village, as part of its Commitment to Action.
ECX, represented by its Chief Executive Officer Eleni Z. Gabre-Madhin (PHD), participated in a panel discussion on Poverty Alleviation and Food Security on September 25, 2008 at the Annual Meetings of the Clinton Global Initiative (CGI), held in New York. ECX has also become a member of the Clinton Global Initiative (CGI).
At the Annual Meetings, as a new CGI Member, ECX received a Certificate from formers U.S President Bill Clinton for its Commitment to Action, titled "Information for Prosperity".
Over the next five years, ECX commits to establishing 5,000 Information Kiosks, networked into a national system, where farmers can receive up to date information on ECX market prices, national market and production trends, global commodity outlook, weather forecasts, as well as cropping technologies, fertilizer and seed prices, and other key information.
The Information for Prosperity Commitment is based on a partnership between ECX, the local communities themselves who would own and manage the Information Kiosks, and the Ethiopian ICT Development Agency and the Ethiopian Telecommunications Corporation who would be key partners in providing the infrastructure and network services. The premise of the Information for Prosperity Commitment is that information affluence is key to economic prosperity.
According to ECX, it is committed to transforming the lives of millions of rural dwellers, be they farmers, traders, or consumers, by bringing relevant information within their reach.
ECX which was officially launched in April 2008 is designed to provide a reliable system for handling, grading, and storing agricultural products. Traders will be able to match offers and bids for commodity transactions, with a risk-free payment and goods delivery system to settle transactions. The exchange will create a transparent trading environment through, aggressive market data dissemination to all market actors, clearly defined rules of trading, warehousing, payments, delivery and business conduct, and an internal dispute settlement mechanism.
Members of the Panel discussion included former Secretary of State Madeline Albright and Dr. Namanga Ngongi, President of the Alliance for a Green Revolution in Africa (AGRA).
The Panel presentation was attended by more than 200 delegates, including the Ugandan President Museveni and former Nigerian President Obasanjo as well as the heads of major corporations and other global leaders.

 

United Insurance raises capital

By Muluken Yewondwossen

Shareholders of the United Insurance Sh. Co. (UNIC) have decided to raise their company's paid up capital by 22 million birr on their 14th annual and 6th extraordinary general meeting. The general meeting also elected the three board members who will serve for one year.
To replace the three board members who completed their terms in the board membership, six candidates were nominated by the assembly- Almaz Haile Selassie, Fekade Bazabeh, Berhanu Gebrewold, Eyesuswork Zafu, Yemane Bisrat and Abere Mulate.
Among the three board members that were to be replaced, Abere Mulate and Yemane Bisrat were re-elected while Gezachew Negash who had served last year as the board chairman was replaced by Eyesuswork Zafu.
In the essence of continuity, the national bank of Ethiopia's directive stipulates that among the nine board members, three are elected to serve for three years, another three to serve for two years and three more for one year.
On the general meeting held at the Hilton Hotel on September 30, 2008, it was also disclosed that the fire and general accident loss ratio has increased by 57% on this budget year compared to the previous year.
Eyesuswork Zafu, Chief Executive Officer of UNIC, representing the management and board of directors, told the assembly that their Insurance Company's current year profit is the highest of all the profits UNIC registered in the previous years. And he forwarded the proposal to increase the company's paid up capital from the current 38 million birr to 60 million birr.
The majority of the shareholders (54.4%) agreed to re-invest their dividends distribution for the growth of the company as they were warm to the idea of raising the paid up capital. They further agreed to sale out shares so as to get the 22 million birr required.
During the last budget year UNIC registered a net profit of 20 million birr which exceeds the previous year's profit by 9 million birr.
The company's Non Life Premium has reached 110 million birr thus recording an increase of nearly 36%.
Engineering business recorded a growth rate of 26.5% while marine cargo and inland transit grew by 20%. Unlike last year when the motor class registered a growth rate of 75%, it grew by only 12% this year and the least growth rate of 6.8% was registered in the fire and general accident classes.
With total losses incurred for net account of 41.8 million birr against total premiums earned of 71 million birr, the corporate loss ratio for the year under report worked out at 59%, a ratio which fell from that of 2006/07 by more than 13 percentage points.
Against all expectations, the loss ratio for the motor classes of business fell down from the previous year 86.6% to 79% in the year under report. Unexpected growth was the ratio of the fire and general accident class, from a very low ratio of 19% in 2006/07 to 76% in 2007/08.
The very high premium growth of 223% in the pecuniary class was augmented by an equally very low loss ratio, 7.3% for the year under report compared to 26.4% for the previous year.
UNIC was established in mid 1990 as the first private insurance company in the country after the down fall of the Derg regime with its command economy.

 

Lundin Petroleum shares interests from exploration in Ethiopia

By Tagu Zergaw

Lundin Petroleum, a Swedish company undertaking petroleum exploration in southern Ethiopia has signed a Producing Sharing Contracts (PSC) with New Age (Global African Energy). According to the agreement Lundin Petroleum will transfer 15% license interest to Global African Energy.
The contract agreement will be practical following its approval by the concerned regulatory authorities of Ethiopia.
Lundin Petroleum will transfer a 15 percent license interest to New Age, in the PSCs covering onshore Ogaden Basin, southern Ethiopia and a 50 percent interest in the PSC covering the Adigala Area, northern Ethiopia. New Age will pay its interest share of Lundin Petroleum's past and other ongoing costs. However Lundin will remain the operator of all of the explorations in the Ethiopian blocks.
The Ogaden Basin is one of the sedimentary basins in Ethiopia. Other basins are Gambela, Omo, Nile, Tigray and Afar. Until recently, more than 67 foreign companies have signed agreements with the Ministry of Mines and Energy to be engaged in mine explorations.
Capital's attempt to get more information from the respective authorities about the issue was not successful.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a portfolio of world-class assets in Europe, Africa, Russia and the Far East. The Company is listed at the Nordic Exchange, Sweden (ticker "LUPE"). Lundin Petroleum has existing proven and probable reserves of 184.2 million barrels of oil as at January 1, 2008.
In related news Ethiopia and the U.S. based Trans Global Petroleum on October 1, 2008 signed an exploration and production sharing deal for the Horn of Africa country's Greater Afar Block.
On the signing ceremony Minister of Mines and Energy Alemayehu Tegenu said that the agreement provides exclusive right for the company to engage in exploration and development of petroleum covering 109,304 square km (42,200 square mile) in Afar commonly known as Afar Triple Junction, Tigray and the Amhara regions and these basins have potentials of hydrocarbon habitat..
The exploration will last four years and can be extended twice while the development and production period is set at 25 years with a possible extension, according to the agreement.
Trans Global Petroleum is the third American company to sign a petroleum exploration agreement with Ethiopia this year.
Falcon Petroleum Limited initialed a deal for the Abay (Nile Basin) in the Amhara region in and Titan Resources Corporation signed an agreement for exploration of petroleum in Abay and the Ogaden Basin in the Somali region. Both companies signed the agreements in August 2008.
About 15 international companies including Malaysia's Petronas are engaged in oil exploration in different parts of the country.

Addis Ababa to host two major leather events

By Muluken Yewondwossen

The seventeenth international United Nations Industrial Development Organization’s (UNIDO) Leather and Leather Products Industry Panel will take place in parallel with the Second All African Leather Fair (AALF), from January 20 to 22, 2009 here in the capital of Ethiopia.
Ethiopia is the second country in Africa to host such a panel after the 1993 event which was organized in Kenya. The sixteenth panel was held in Brazil.
Abdissa Adugna, Secretary General of Ethiopian Leather Industries Association (ELIA), told Capital that this event was originally expected to take place in Buenos Aires, Argentina. However following talks between the Ethiopian government (Ministry of Trade and Industry) and UNIDO officials in Vienna, Austria where UNIDO’s headquarters is found, Ethiopia got the green light to organize the panel here in Addis Ababa, in line with the fair.
“Since major players of the sector from all over the world will attend the event, it will be a good opportunity for Ethiopian leather producers to promote their produces and share experiences,” said Abdissa.
African companies and organizations are expected to constitute the largest attendance at the All African Leather Fair, since it is designed and specialized to promote African leather industry and to enable it create an interface with its partners within the continent and around the world.
The Fair will bring together tanners, footwear and other leather goods manufacturers and equipment and technology suppliers, chemical and inputs suppliers, manpower training institutions and trade promotion organizations from all over the world. Exhibitors and visitors from more than 40 countries are expected to take part in the Addis Ababa’s fair.
According to the organizers, the fair will create the opportunity for business persons in the industry to meet and to talk face to face and to get immediate feedback on their prospective businesses.  It will enhance their access to new markets and it will also provide a comprehensive forum for increased business in leather, leather products and the allied industries, notably chemicals, machinery, components and accessories.
The 1st AALF 2008 was spectacularly successful where 63 overseas companies and 107 companies displayed their products. According to the information from the ELIA, the fair was visited by 1,525 international and 2,400 local visitors.
Objectives of the AALF are to provide practical exposure of African entrepreneurs in the industry to techniques of doing business with global partners, enhance contacts between African sellers of leather and leather products and buyers from around the world and integrate the continent’s industry into the global market intelligence network, create global market opportunities for Africa’s upstream  leather goods  industry and enhance the continents benefits in exporting value added consumer goods of leather,  promote Africa’s cultural heritages and values as unique components of the continent’s offers of leather and leather products, increase competitiveness of the African leather industry by bringing representatives of the important players in the value chain together to a common platform where they forge the principle of working together in a Pan  African Competitiveness context and expose investment opportunities in the leather sector in Africa and build the image of the industry as a credible partner to work with.

 

International
Non-Violence Day Celebrated

By Addis Mulugeta

In commemoration of the 2nd International Non-Violence Day held on the 139th birthday of Mahatma Gandhi, and the 60th anniversary of India-Ethiopia diplomatic relations, a series of events were hosted by the Embassy of India in Addis Ababa, on Thursday, October 2, 2008.
To mark the day, a special ceremony was held at the Gandhi Memorial Hospital where floral tributes were paid at the bust of Mahatma Gandhi. A photographic exhibition was opened at the UNCC depicting Gandhi's life to enable the wider public to learn about the life and ideals of the great man
The first ever publication in Amharic of the book "India - A Dynamic Democracy", titled 'Hind - Tenkara Democracy,' was launched. The 80 pages book compiles India's ancient history, geographical features, natural resources, religion, liberation movement, constitution, electoral procedures, independence of the media, foreign relations, traditional parliament system, economic diplomacy, defense, as well as its research and development organization and economic situation.
Ethiopian Postal Service Agency also released on the occasion a set of three postage stamps to mark 60 years of friendship between India and Ethiopia. The stamps depict national flowers, monuments and colours of flags of both countries.
PM Meles Zenawi, Minister of Transport and Communications Junedi Sado, Executive Secretary of ECA Abdoulie Janneh and Ambassador Gurjit Singh signed on the memorial stamp.
Meles Zenawi, Ethiopia's Premier, delivered the Mahatma Gandhi Memorial Lecture at the event jointly organized by the Economic Commission for Africa and the Embassy of India at the UN Conference Centre on October 2, 2008.
He said, "So many, in fact, in Africa and elsewhere, including India of course, have upheld, in different ways the beliefs and ideas of Mahatma Gandhi, a person who demonstrated so clearly how to meet, peacefully, the enormous challenge posed by the decolonization of India. This was only a part of his achievement. He was committed to the dignity of humanity, to people, all people, most of all the downtrodden and the untouchable, indeed to everybody. There were no exceptions. Gandhi supported genuine and complete emancipation." He further said, "I do not have to remind you that poverty without hope is a dangerous thing. Gandhi was very aware of that. He offered hope; his ideas still do." While referring to his own sub-region, the Prime Minister said Gandhi's message is particularly appropriate, as the sub-region has suffered from violence and the lack of development and "There has been a perennial lack of peace. Violence has become almost a habit, with all too many benefiting from this status as for example in Somalia. The current upsurge of piratical activity along the Somali coast underlines the point.
He further said, "We are well aware that it is impossible to resolve the problems of our region or of Africa as a whole with violence or outside a climate of peace."
Ambassador Gurjit Singh and UNECA Executive Secretary, Abdoulie Janneh also addressed the gathering, stressing the importance of the International Non-Violence day.
Abdoulie Janneh noted on the occasion that "the choice of October 2, for non-violence day is a fitting tribute to Gandhi's memory and achievements as well as opportunity to underscore the importance of his philosophy of non-violence. His message of non-violence is relevant across societies, religions, nations, and remains valid for all time." Janneh explained that the international day of non-violence therefore gives a good opportunity to disseminate the message and philosophy of non-violence through education and public information to member states and other key constituencies in Africa and the rest of the world.
Indian Ambassador to Ethiopia, Gurjit Singh on his part delivered a speech focused on Gandhi's life, which recorded from his autobiography.
October 2, 2008 was the second time that the international day of non-violence is being celebrated worldwide since the United Nations General Assembly passed a resolution 61/271 in June 2007. The General Assembly recognized the mutual reinforcing link between non-violence, tolerance, respect for human rights, democracy and development and their critical role in securing a culture of peace.

 

Mo Ibrahim African Governance Index unveils tomorrow
Atomic Energy chief on board 

By Kirubel Tadesse

The Mo Ibrahim Foundation’s African Governance Index-2008 will be revealed tomorrow, Monday October 6, 2008, here in Addis Ababa, Ethiopia.
Founded in October 2006, the Mo Ibrahim Foundation assesses the forty eight sub-Saharan African governments against its fifty eight criteria, to rank them on its annual index as per their governance performance.
The criteria, divided to five, are said to review the quality of services provided to citizens by each government. Safety and Security, Rule of Law, Transparency and Corruption, Participation and Human Rights, Sustainable Economic Opportunity and Human Development are the five focus areas of the publication to be released tomorrow.
Prior to Monday’s meeting the Foundation announced that Dr. Mohamed El Baradei, Director General of the International Atomic Energy Agency (IAEA), joined its Prize Committee which is expected to name this year’s winner of the Ibrahim Prize for Achievement in African Leadership at London City hall on October 20, 2008.
The Foundation Prize Committee, chaired by the former United Nation’s Secretary General, Kofi Annan, named Joaquim Chissano, the former President of Mozambique, the first Ibrahim Laureate in October last year. Chissano was said to be successful in bringing peace, reconciliation, stable democracy and economic progress to his country. Chissano collected five million US dollars the award entitles its winners.
Dr. El Baradei who is expected to retire from his position at the IAEA next year [after three terms that start in 1997] is now among the committee packed by Salim Ahmed Salim, former Secretary General of the Organization of African Unity (OAU) who also served as Prime Minister of Tanzania, Martti Ahtisaari, former President of Finland and United Nations special envoy to Kosovo, Aïcha Bah Diallo, former Minister of Education in Guinea and Director of Basic Education at UNESCO and Mary Robinson, former President of Ireland and former United Nations High Commissioner for Human Rights.
“I can think of few people better placed than Mohamed El Baradei to assess leadership in Africa. Over the course of his distinguished career, he has exercised leadership at the highest level, winning respect throughout the world for his experience, judgment and authority. I warmly welcome the announcement of his appointment to the Prize Committee,” said Annan, Chair of the committee, commenting on El Baradei’s arrival.
Dr. Mo Ibrahim, the founder and Chairman of the Mo Ibrahim Foundation, joined by other senior figures, will present the 2008 African Index tomorrow at Sheraton Addis hotel.

 

New water treatment device introduced

By Groum Abate

Ethio-Archimedes Solar Electrical Mechanical Engineering and Trading Plc introduced Watalys, a system that produces a chlorine disinfectant - a new water treatment device.
Watalys is a portable device for disinfecting and producing clean drinking water.
Daniel Eshetu, General Manager of Ethio-Archimedes told Capital that Watalys provides a means of disinfecting and purifying drinking water for individuals and communities who have no direct access to safe sources of water.
According to the general manager a single Watalys device provides safe water for 120 people per day (in line with WHO’s estimate of each person requiring 20 litres of water per day).
Daniel said that Watalys device is approved by the Ministry of Health and introduced to various stakeholders and the public on a function held on Monday September 29, 2008 at Hotel De Leopold.
Watalys development was prompted by the fact that chlorine tablets traditionally used to clean water have a short shelf-life and are difficult to transport. To overcome this, the device uses electrolysis, one of the basic methods for breaking down chemicals.
In this case, it involves plunging an electrode into a litre of water where a small amount of salt – which contains chlorine atoms – is added.
Electric current is then sent through the electrode, provoking a chemical reaction. An hour later, the solution is chlorinated and can be used to disinfect large amounts of water.
Watalys also offers a powerful disinfectant for surfaces, utensils, textiles, and kitchen and hospital equipment.
Watalys works either on a car battery or by using solar cells.
In related news, Ethio-Archimedes is also negotiating with the Ministry of Mines and Energy to introduce a newly designed and produced Plant Oil Cooker, which is emission and pollution free and targeted to be used in developing countries, according to the general manager. The stove that uses non-edible oil is expected to curb foreign currency spent on importing gas and kerosene.
Ethio-Archimedes Solar Electrical Mechanical Engineering and Trading Plc is a company established in 2008 following the Ethio-German Partnership Conference held in Addis Ababa (14 to 16 February 2008).
The main objective of the company is to bring solutions in various fields related to development, bring in new technologies to the country in health, water and sanitation, energy and environment protection sectors and thereby assist the economic growth of the country.

 

MoARD defends agriculture's muscle to lead

By Kirubel Tadesse

Responding to critics, Dr. Abera Deressa, State Minister of Agriculture and Rural Development (MoARD), said that the latest imports of wheat doesn't undermine the 10% growth the agriculture sector has registered over the last ten years and its capacity to lead the nation's economy.
Experts in the field say that the government should review its expectations of the sector and the recent imports of wheat - the latest reportedly from South Africa - shows that the sector can not even satisfy local demand.
However, Dr. Abera sees it from a different angle. He explained that due to general income increase and the global food crisis, demand was seen surpassing supply, which government had to fill through import.
Speaking at the closing press conference of the 12 Africa Forum, hosted by the MoARD with German Technical Cooperation (GTZ) and Comprehensive African Agriculture Development Program (CAADP), Dr. Abera explained that although the government does not wish to base the country's economy on Agriculture indefinitely, today's export items and import revenues show why agriculture should lead. He added that the set target of increasing production and productivity would address the supply and demand gap seen in some cities.
Dr. Albert Engel of the GTZ agrees that productivity would go to the heart of the current global crisis - the solution he says is getting more and more complicated. Access to fertilizer in Africa is much lower than the average amount used elsewhere Engel said. Although it would increase productivity on the continent, this solution seems too expensive to consider as, Engel points out, its price is escalating even topping the food price itself.
Experts in the field explain that 40 quintals per hectare is achievable in most of African farms. However in countries like Ethiopia the productivity rate is as low as 15 quintals per hectare. For this Dr. Engel said the Forum sees no silver bullet, rather a comprised measures such as more fertilizer, and secure accesses to land should be encouraged across the continent.
The 12 Africa Forum was held from September 29 to October 3, 2008, here in Addis Ababa, under the theme 'Making the agri-business work for rural livelihoods.' More than 150 participants from over eighteen countries conferred for three days to learn the success factors of agri-business.
The participants took a field trip on the fourth day of the Forum to visit research centers and some agro industries such as Holeta Agriculture Research Center and Mama Dairy Farms Milk Processing, found in Sebeta, 35 kilometers of Addis Ababa. The Forum was concluded on Friday, October 03, 2008.