Capital

No dignity without food-security

By Tesfu Telahoun

Powerful winds for EEPCO

By Groum Abate

ATR, Bombardier vie for Ethiopian order

By Groum Abate

Djibouti Port invites exporters

By Tagu Zergaw

Council of Ministers takes control over federal executive organs

‘A move that strips 40% of parliament’s power’-Lidetu Ayalew-UEDF
‘Illustrates ever increasing power ambition of the executive’-Temesgen Zewide-UDJ
‘A result of EPRDF’s revolutionary democracy’-Bulcha Demeksa-OFDM

By Kirubel Tadesse

ISO accreditation to be carried out locally

By Muluken Yewondwossen

Parliament to issue anti-terrorism law

By Kirubel Tadesse

Buna Bank registers record shareholders

By Muluken Yewondwossen

Authority to upgrade sewerage system

By Muluken Yewondwossen

Agency begins eviction

By Groum Abate

Ethiopia to activate duty free deal

By Addis Mulugeta

Evaluation on EPA impacts on African integration

By Addis Mulugeta

Walia steel enters market

By Muluken Yewondwossen

Teddy starts defense

By Muluken Yewondwossen

Meeting agrees to promote ILO’s new Declaration

By Muluken Yewondwossen

GTZ solar installation shines

By Addis Mulugeta

No dignity without food-security

By Tesfu Telahoun

Mr. Jairam Ramesh, India’s Minister of State for Commerce and Power, in a highly detailed and wide-ranging exclusive interview with Capital, likened his nation 40 years ago, challenged by successive famines due to extreme food insecurity to the Ethiopia of today, noting that before India’s Green Revolution, the nation did not carry itself with the dignity and self assurance it currently projects. (Continued on page 14)
Mr. Ramesh on an official visit here from 5 to 7 October, stressed the importance of a pointed focus on enabling Ethiopia to meet its food requirements.
“There is no reason why Ethiopia should not be the bread basket of the region. Ethiopia should not have to be importing food grains. Forty years ago India was where Ethiopia is today. We were one of the largest importers of wheat – up to 25% of all the wheat produced in America was bought by India. Today however, we are a net exporter of wheat and of rice, too.”
A single minded focus on agriculture will give Ethiopia self-confidence. No country that imports food items can have self-confidence and self-dignity. This is what we realized forty years ago, when we were a net importer of food grains. We could not maintain an independent foreign policy; we could not look at the world through our own eyes. Today however, we can stand on our own two feet because we are self-sufficient in agriculture.”
On burgeoning India- Ethiopia relations, State Minister Ramesh commended the rapid pace at which bilateral trade is expanding with total Indian investment in Ethiopia at present shooting past USD 3.5 bln, making India, Ethiopia’s second largest source of foreign investment after Sudan. It was noted that nearly two thirds of Indian investment targets agriculture and agro-business.
According to the erudite and pro-active State Minister, currently gurgling in the pipeline are a massive Integrated Agro-industrial project to be implemented on hundreds of thousands of hectares, situated along both banks of southwestern Ethiopia’s Omo river, as well as extensive cotton plantation development including a garment factory boasting 300,000 spindles planned to go operational shortly in Kombolcha, northeastern Ethiopia.
He also stressed that, along with the prominent participation by Indian investors in other sectors of Ethiopia’s nascent economy, these and other large scale ventures augur well for a quantum leap in India–Ethiopia cooperation.
The Minister led a composite delegation of officials, Indian public and private sector representatives to Ethiopia as part of commemorative events to mark the 60th anniversary of the establishment of diplomatic relations between India and Ethiopia. The delegation attended the 5th round of the India-Ethiopia Joint Trade Committee, chaired by H.E Ato Ahmed Tusa, State Minister for Trade in the Ministry of Trade and Industry, on Monday 6th October.
The full transcript of the wide-ranging interview State Minister Jairam Ramesh gave exclusively to Capital appears in next week’s issue.

Powerful winds for EEPCO

By Groum Abate

The Ethiopian Electric Power Corporation (EEPCo) and Vergnet Groupe, a French wind turbine manufacturer, have signed an agreement worth 212 million Euro for setting up a large wind farm to generate electric power, in Ashegoda area, 30 kilometers from Mekelle.
EEPCo General Manager, Mihiret Debebe and Vergnet Groupe, Chairman, Marc Vergnet, signed the agreement on Thursday October 9, 2008.
The project intends to generate 120 MW and is the first of its kind in Ethiopia. It has an implementation schedule of 36 months with two phases; the first yielding 30 MW will be commissioned in 16 months.
A visiting high-level business delegation led by Anne-Marie Idrac, French Minister of State for Foreign Trade for two days starting from October 9, 2008 was here for the signing ceremony with EEPCo. The state minister also discussed with Prime Minister Meles Zenawi about trade ties between the two countries.
Anne-Marie Idrac said the agreement will contribute to further scale up the existing cooperation between the countries. "This contract is a very important one because with a budget in excess of 200 million Euro it will be the largest wind farm in Africa," she added at the signing ceremony.
Ashegoda Wind Power project is going to be one of the six generation projects currently under construction with an overall budget of 3.1 billion Euro.
The feasibility study was conducted by Lahmeyer International of Germany, with the close collaboration of GTZ.
The project is financed by AFD, and one of the largest French banks, BNP Paribas.
The French company won the contract beating out contenders from China and Spain.
Marc Vergnet told Capital that his company has made a feasibility study on transporting the wind turbine blades. Transportation of wind turbine blades has been a difficult task for setting up a wind farm.
According to Vergnet, after completing this contract he plans to set up a company, Vergnet-Ethiopia, in Nazareth town that would also be a regional office for Africa and the Middle East.
VERGNET was founded in 1988 by current CEO, Marc Vergnet, and today, is the leading manufacturer in its two business areas: design and manufacture of wind turbines for the FARWIND® market, and water supply equipment for Africa.
With nine sites covering much of the world (France, the Caribbean, the Pacific region, the Indian Ocean and Africa), and a staff of 200, the Vergnet Group had turnover of 33.4 million Euros and net earnings of 0.4 million Euros in 2007.
According to a study by Kebede Walelu, ‘‘Wind Energy Projects in Ethiopia' wind power in Ethiopia is complementary to hydro power. The study further noted that in the rainy season the country sees low wind and in the dry season the potential of wind becomes high.
According to the study combining the two, wind and hydro power plants, will add value to the hydro power plant by elongating their operational time.
Nazaret has the best wind resource (9.3 m/s) followed by Ashegoda with 8.5 m/s and Harena with 6.9 m/s annual wind speeds 40 m above ground.
Currently, approximately 17% of the population has access to electricity. The government has launched a universal electricity access program to be executed by EEPCO with the view to enhance access to 50% by 2010.

ATR, Bombardier vie for Ethiopian order

By Groum Abate

Two aircraft manufacturers have been selected for the final phase of Ethiopian Airlines’ bid to source airplanes to advance domestic routes.
Ethiopian was evaluating offers from six suppliers it had invited to participate: CATIC International Holdings Limited (China), Embraer (Brazil), ATR Avion de Transport Regional (Franco-Italian), Bombardier (Canada), Sukhoi Super Jet (Russia) and Mitsubishi (Japan).
After detailed review, ATR and Bombardier were selected for the final phase of the bid.
The aim is to upgrade domestic flights by adding ten planes, of 42 and 72 seats.
Currently Ethiopian is evaluating offers from the two companies. The deal is expected to cost the national flag carrier around 100 million Euros.
Ethiopian plans to increase the domestic fleet to 13 aircraft over the next five years.
The airline used to suffer an annual loss of 40 to 50 million birr when only DHC-6 (Otter) and Fokker 50 aircraft were used for domestic routes. Domestic flights have long been subsidized by international routes revenue.
Since it started flying jet planes on local routes, the airline has paid off debts and has started enjoying profits of 20 to 30 million birr.
Ethiopian Airlines was founded on December 30, 1945. The first planes used by the airline were five DC-3’s. The first international scheduled service was inaugurated between Addis Ababa and Cairo on April 8, 1946.
Ethiopian’s domestic route network spans the country, bringing provincial and administrative cities within easy reach of the capital and the regional commercial centers. In addition, there is a daily historic route service, for the tourists to the country’s world famous ancient historic sites of Axum, Bahir Dar, Gondar, and Lalibela, which features obelisks and churches.
The airline has embarked on a period of sustained growth and fleet renewal, with plans to purchase 12 new aircrafts over the next four years. Six next generation B737-700 and six 767-300 ERs were scheduled to replace the existing two 737-200s and two B767-200.
ATR is one of the world’s leading aerospace companies and the largest manufacturer of regional aircraft.
Headquartered in Toulouse, South of France, ATR employs more than 800 people across Europe, with major operations in the Blagnac and St Martin areas of the Midi Pyrénées region. Total company revenues for 2007 were around 1.1 billion dollars.
Headquartered in Montréal, Canada, Bombardier employ more than 28,000 people worldwide. For the fiscal year ended July 31, 2008, the revenues amounted to 2.5 billion dollars. Furthermore its first order backlog reached 26.1 billions dollars as at July 31, 2008.
With more than 250 years of aviation history, Bombardier is the third largest aircraft manufacturer next to Boeing and Airbus.

Djibouti Port invites exporters

By Tagu Zergaw

Members of Ethiopian exporters associations, the Forwarding and Shipping Agents Association and the Addis Ababa Chamber of Commerce and Sectoral Associations, are to depart for Djibouti on October 20, 2008, on a three-day invitational visit to the Port of Djibouti.
The delegates will meet the general director of the Port of Djibouti, Jerome Oliviera, the chairman of Ports and Free Zone Authority (DPFZA), the Djiboutian ministers of transport Ali Hassan Bahdon, of trade, Rifki Abdoulkadir Bamerkrama, Djibouti Port Commercial Manager, Djama Ibrahim Darar, agents of shipping lines, freight forwarders and chambers of trade.
Abdisa Adugna, General Secretary of the Ethiopian Leather Industries Association told Capital that they plan to hold meetings with Ethiopian exporters before leaving for Djibouti. “We will discuss among other things problems that we encounter during the export process,” said Abdisa.
Additionally, the Ethiopian Pulses, Oil seeds, Grain and Spices Exporters Association has called members and stakeholders to a meeting with government officials and ministers, Monday October 13, 2008.
Abdourahman Elmi Ismael, Resident Representative of the Port of Djibouti in Ethiopia told Capital that the objective of organizing the visit is to strengthen the relationship between the Port and Ethiopian exporters.
“A discussion on how to further enhance the relation with the Port and to find resolutions for possible problems will be held,” said Abdourahman, adding that this visit will be a good opportunity for both sides to strengthen their cooperation and work together for mutual benefit.
He furthered that the Port of Djibouti recognizes the importance the government of Ethiopia is giving to export development, and stated that the Port desires to be associated with this growth. The working tour, funded by the Port, will also enable Ethiopian exporters to observe at close hand the operations of the Port and the efforts being made to enhance its capacity in order to better serve Ethiopian import and export trade.”
The 13 members of the delegation are from Ethiopian Pulses, Oil seeds, Grain and Spices Exporters Association, Ethiopian Coffee Exporter’s Association (ECEA) and Ethiopian Leather Industries Association (ELIA) and Forwarding and Shipping Agent Association.

Council of Ministers takes control over federal executive organs

By Kirubel Tadesse

In the first week of its fourth year, the House of Peoples’ Representatives has written a new law that empowers the Council of Ministers to decide the fate of executive federal organs.
As per the new law, the Council from now on, can establish, reorganize, merge, divide and even close down federal executive organs such as Ministries when it finds it necessary. The law also gives the Council power to change any executive organ’s accountability.
Among the five agenda items scheduled for the October 9, 2008 session, the first a bill that takes the Science and Technology Agency to Ministry level-was controversial even before Government Whip Shiferaw Jareso forwarded a motion for an immediate passing with a second reading. While descriptions and articles of this bill talk about the reestablishment of the Science and Technology Agency to Ministry [which assumes accountability from Radiation Protection Authority, Intellectual Property Office, Quality and Standards Authority, and Ethiopian Center of Scientific Instrumentation] its article [Article 34] explains that similar tasks [reorganizing executive organs] will be in the hand of the Council of Ministers.
MP Gebru Gebremariam of the United Ethiopian Democratic Forces (UEDF) was first to demand the exclusion of this article he sees as not only irrelevant with the bill in discussion but as a threat that undermines the cardinal principles of parliamentary systems. The Deputy Speaker let Shiferaw forward his motion and opened the floor for says on the bill in which Gebru returned with a strong denouncement against what he said would be a historic mistake-if committed. “Letting the Council of Ministers decide the fate of our executive organs will not only undermine the founding cardinal principles of our parliamentary system but it also undermines the Checks and Balances ideal by stripping the parliament of power and giving it to the Council, “Gebru said in his seven minutes of which he spent most begging for further scrutiny of the bill.
MP Lidetu Ayalew, Chair of the opposition United Ethiopian Democratic Party-MEDHIN (UEDP-MEDHIN), found himself in an uncomfortable position to denounce the bill he said would take at least 50% of the House’s power. “As stated earlier, neither the essence nor the magnitude of the bill and its article 34 relate, “Lidetu said who saw the bill’s approach as a confusing one which tries to mix an act of reestablishing a particular institution with a proposal that alters a very basic practice.
“If the power of reorganizing executive organs will be given to the Council, why are we [the parliament] passing this bill of reestablishing the Science and Technology Agency to Ministry? Why won’t the Council see it afterwards? “Lidetu questioned the consistency of the bill, “the way it is presented is to avoid due attention from Article 34 that strips- without exaggerating-at least 50% of parliamentary power and gives it to the Council,” Lidetu explained his party opposition, which he said comes with sadness.
MP Temesgen Zewide, Deputy Chair of the Unity for Democracy and Justice (UDJ), directly linked Article 34 to the executive which he said is showing ever increasing ambition for more power by pushing for this article. “Even if promoting innovation can be conducted by an agency level, if there are well thought out reasons and they enjoyed enough discussions, we don’t mind the establishment of the ministry. However, giving away essential powers of the House in just one paragraph is very sad and a clear indication that the executive is hungry for more power,” Temesgen said.
The Oromo Federalist Democratic Movement’s (OFDM) Chair, MP Bulcha Demeksa told the House that he has nothing new to add except that the it is possible that more than 50 of the parliament’s power will go to the Council of Ministers. “This is a result of the ruling Ethiopian Peoples’ Revolutionary Democratic Front’s (EPRDF) revolutionary democracy approach, “Bulcha said,” this is very worrying and sad to see.”
Despite these strong rejections by the Opposition, the House voted the passing of the bill with 269 votes in favor, 68 against and one abstaining.
“If it is not to exaggerate the essence of the article, it doesn’t introduce as a new procedure as it is already stipulated in the Constitution that the ruling party may restructure the executive organs, “Berhanu Adole, head of the Prime Minister Office told the House, “the practice isn’t a new one, it was the same during Emperor Haile Selassie period where the Emperor reorganizes the organs by issuing regulations. The Emperor did not take a historic blame and neither will we, nor do governments of many other nations.”

ISO accreditation to be carried out locally

By Muluken Yewondwossen

The Ethiopian Quality and Standards Authority (EQSA) is to be ISO 9001 certified for Quality Management System, entitling it to accredit companies for ISO 9001.
EQSA will receive its accreditation certificate from the German Accreditation body which is a member of the International Accreditation License Issuers Association. In July 2007 the same accreditation body had accredited EQSA for mass and temperature quality measurement.
For the final phase of accreditation, a group of inspectors from Germany have arrived and have been undertaking final inspection procedure since September 15, 2008. After which the EQSA will obtain its certificate.
Prior to the accreditation of EQSA, local companies were obliged to contact foreign companies. The capability of the Authority to certify companies will have great significance for Ethiopia to access the World Trade Organization (WTO).
Sisay Assefa, head of EQSA public relations told Capital that his office will check the standards of other companies which have claimed they are accredited for ISO 9001. When EQSA starts certifying companies locally it will save time and money spent by companies to acquire the certificate from foreign countries.
The International Standard provides guidelines beyond the requirements given in ISO 9001 in order to consider both the effectiveness and efficiency of a quality management system, and consequently the potential for improvement of the performance of an organization.
The objectives of customer satisfaction and product quality are extended to include the satisfaction of interested parties and the performance of the organization. This International Standard is applicable to the processes of the organization and consequently the quality management principles on which it is based can be deployed throughout the organization. The focus is the achievement of ongoing improvement, measured through the satisfaction of customers and other interested parties.

Parliament to issue anti-terrorism law

By Kirubel Tadesse

The House of Peoples' Representatives will be tabling with an Anti-Terrorism draft proclamation which is said to base the nation's constitution and best international practices, Capital understands. The draft bill is expected to be presented for parliament during this year's parliamentary sessions.
Addressing the Parliament and House of Federation's first joint session of the year, on Monday, October 6, 2008, President Girma Woldegiorgis explained that it is now imperative to produce a legal framework to combat terrorism.
"Priority will be given to dealing with internal and external terrorist activities, "Girma said.
More new bills that are said to help the agriculture, will be tabled to the House. Some of these bills will address agricultural productivity by issuing regulations on quality and supply of imported fertilizers, seeds, and pesticides.
Early this month the organizational congress of the ruling Ethiopian Peoples' Revolutionary Democratic Front (EPRDF) set a target of scaling up best practices in the agriculture sector which was explained to be promising but not yet satisfactory.
The party's document explained that productivity is at 17 quintals per hectare, still short but an encouraged improvement from the 11.9 quintals per hectare which was the case a few years ago. "Production which was only 10.37 million metric tons in 2004 is currently at 16.45 million metric tons, "EPRDF's document reads.
The target the government aspires for the sector to attain is a 40-45 per hectare productivity which according to Prime Minister Meles Zenawi, is doable as experts' assessments.
President Girma told the joint session that attention must be given to the supply of imported seed, grain, fruits, and vegetables and to the widening of the use of modern and organic fertilizers.
In his address where sustaining double digit economic growth and containing the severe inflation were announced as top priorities for this year, the President noted that the government will continue to import grains until local grain prices become comparable with international market prices, but not below which the government fears will hurt farmers. "If local grain prices fall below global market prices, the government will take measured and balanced intervention to protect farmers from plummeting prices," the President assured members of the two House.

Buna Bank registers record shareholders

By Muluken Yewondwossen

Buna International Bank (BIB) which is under formation since it was founded in ????, has announced, that the number of its shareholders has reached 10,000 exceeding shareholders in other private banks by two fold.
The next private bank with the largest number amount of shareholders is Oromiya Bank with 5,233 shareholders.
Sources within the BIB organizing committee disclosed to Capital that the number of people who want to buy shares is increasing and the committee has decided to extend the deadline for buying shares from September 22 to October 16, 2008, ten days before the general assembly.
"The general assembly, which will be held at the Exhibition Center, will be attended by registered shareholders and according to the commercial code we are allowed to sell shares till ten days remain to the Assembly," said the sources.
Capital witnessed a long line in front of Garad Building on Bole Road where shares for BIB are being sold.
Currently shares for BIB are being sold in Addis Ababa, Diredawa, Awassa and Mekele while there are agents facilitating prospective shareholders in Jima, Dese, Nekemt, Bahirdar and Gonder.
The minimum share price is 5,000 birr and the maximum is five million birr. BIB has subscribed a 300 million birr in capital which is also the largest subscribed capital of any other private bank in the country.
The organizing committee of BIB which has 30 members is chaired by Mahisentu Feleke, formerly general manager of Nile Insurance.
Currently there are other three new banks under formation; Berhan International Bank, Zamzam International Bank and Zemen Bank.

Authority to upgrade sewerage system

By Muluken Yewondwossen

After revising the master plan for the city’s sewerage network, the Addis Ababa Water and Sewerage Authority (AAWSA) has decided to start re building the sewerage network.
Getnet Gesesse, head of public relations at AAWSA told Capital that currently there is a 150 km long sewerage line in the city and the Authority will start upgrading work on these lines this fiscal year, phase by phase.
“The upgrading will start from the Eastern part of the city, known as the Kotebe sewerage system, which includes Ayat, Bole, Lemi, Meri, Gurdshola, Bole Airport, Megenagna, Gergie and Yeka areas,” said Getnet.
However sources within the project office of AAWSA told Capital that the reason the upgrading project started from this area is because these areas are well planned and make it easier to stretch lines.
The Kotebe sewerage purification station currently treats sewerage from the city supplied to it by trucks. But when the upgrading project is completed the station will be able to receive the sewerage from the eastern part of the city through the networking lines.
Akaki is the city’s other purification station located in the western part of the city and has the capacity to treat 7500 m3 of sewerage daily.
Last budget year AAWSA stretched 26.6 km of sewerage lines through the city. Contractors built the 9.3 km line from Hayahulet area to Bole and from Ministry of Water Resources to Karamara Bridge around Bole, in two phases.
The other line is constructed in the central Addis Ababa including Fil Weha, Piassa and the Palace. Currently, most of the condos that are constructed around the city do not have sewerage lines connected to the city’s sewerage system and use septic tanks.

Agency begins eviction

By Groum Abate

The Agency for Government Houses (AGH), has started evicting tenants that the agency consider illegal as of Wednesday October 8, 2008.
Some of the tenants told Capital that the agency started evicting the tenants after giving them a 10 day notification period. The tenants said that they are now sheltering in hotel rooms and have stored their properties at various locations.
The tenants are also appealing to the prime minister’s office for the agency to revise its decision to evict them.
AGH last week started writing eviction letters to over 600 tenants that they should quit the houses in ten days.
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, on October 3, 2008.
According to some of them, the AGH board of directors headed by Abadula Gemeda in 2005, accepted their appeal and decided in favor of the tenants to stay at the house.
The tenants, that number over 700 then bought keys from previous owners. Later the then Rented Houses Administration terminated their contracts but after the then board decided to let them stay, some 300 signed a contractual agreement with the agency, and the rest were told to wait.
These tenants told Capital that they went to court to get legal rights and the court ruled in favor of the tenants. However the Agency appealed to a higher court and the case was adjourned for Tuesday, October 14, 2008.
According to them, even the newly ratified proclamation that enables the agency to take measures without having to go to court could not apply on them because their case is pending in court.
The agency planned to evict over 3,000 illegal tenants who have failed to settle their accumulated rental bills as well as those who acquire the houses illegally. The agency has also finalized preparations for a forceful measure against illegal occupants.
The agency was restructured to 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 could not collect the over 120 million birr accumulated in rental arrears.
A study conducted by MoWUD, reveals that 87 % of the Agency’s tenants had built illegal extensions. From the approximately 16,000 houses 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. In some cases, tenants occupy a house under the pretense of becoming a resident, and turn the house into a bar, hotel, or even a vegetable grocer. Evicting such tenants often involves lengthy and complicated litigation.
In a bid to end this problem, the MoWUD presented a bill to the Council of Ministers, which approved it before it became a law in Parliament. The reform enables the current agency to take measures against tenants that it considers are illegal, without having to go to court.

Ethiopia to activate duty free deal

By Addis Mulugeta

At the 5th Ethio-India Joint Trade Committee meeting held in Addis Ababa on October 7, 2008 Ahmed Tusa, State Ministry of Trade and Industry, said that though an agreement had already been signed, Ethiopia is not benefiting from the initiative to export certain item to India on duty free basis.
“Items like sesame seed, gum- Arabic, cotton, kidney beans, chick peas, etc. are exported to India and are classified either under the “ exclusion or positive list’’, limiting Ethiopia from benefiting from the generous offer of the scheme,” said State Minister Ahmed.
Mr.Jairam Ramesh, India’s State Minister of Commerce and Power, indicated that investment is the key solution to balance trade between the two countries.
“We will address all Ethiopia’s questions to the government of India and I hope the government will give a quick and immediate response to the request,” he said.
According to him, India plans to increase investment in Ethiopia in many sectors including power generation.
“There is high enthusiasm among Indian businesses towards the vast Horn of African nation, in which India has already invested close to 4 billion dollars. India is hoping to invest in power generation, railway line construction, IT development, tea plantations, leather goods and textile production,” said Ramesh.
Indian investments in Ethiopia have topped 4 billion dollars so far, and include the flower industry, agriculture, mining and sugar estates. This has boosted Ethiopia’s economic growth and provided employment for thousands.
India is the 13th source country for Ethiopia’s import on average and the 20th destination for Ethiopian export items. Indian investors have engaged on 349 projects which are at different stages, registering above 4 billion USD. This will create 26,000 permanent and 121,000 temporary jobs. Mr Ramesh stated that in order to create stronger relation between the two countries, the Indian government is ready to support Ethiopia on capacity building and technical assistance in various areas. Before the bilateral Trade Agreement in 1997, Ethiopia’s average export to India stood at only 1.5 million USD while average imports from India were at about 20.5 million USD. Since the signing of the Trade Agreement, Ethiopian imports from India reached 233 million USD and export to India since 2007 has risen to 16 million USD.

Evaluation on EPA impacts on African integration

By Addis Mulugeta

A follow up workshop to evaluate the impacts of Economic Partnership Agreements (EPA) between European and African countries on Africa's regional integration agenda was held from October 8-10, 2008 at the United Nations Economic Commission for Africa (ECA)
A key challenge remained on how the EPA negotiations can consolidate rather than complicate the regional moves towards the creation of a common African market was emphasized during the workshop. Meanwhile, EPA negotiations resulted in interim agreements being initiated by individual and groups of African countries. The critical question is how to salvage the regional integration agenda given the possible inconsistency between regional objectives and the way in which several African countries and their European Union trading partners are progressing with this bilateral trade agreement.
The workshop aimed to take stock of the results of the EPA negotiations in light of what African countries had hoped to achieve. In addition, it evaluated the effects of EPA on progress towards the African community. It also looked into issues of coordination and harmonization as well as review questions of trade facilitation, infrastructure development and product quality in order to identify existing gaps and needs.
Abdoulie Janneh, UN Under-Secretary General and Executive Secretary of UNECA stated that EPA is one of several trading agreements that would be negotiated with African countries, and the key issue is how Africa, with its regional integration agenda, and weak integration in the global economy and trading system, will want to use these various routes to achieve its overall development objectives.
Janneh said that on the issue of regional integration, there is no doubt that both the configuration of the negotiating groups and the situation resulting from the interim EPA was not encouraging. With regard to regional integration and positive development, clear rules in the area of competition, investment and government procurement and having fully financed policies and investments programs similar to aid for trade, in support of EPA implementation is the only way that African countries can benefit from this process.
ECA, through the African Trade Policy Center (ATPC), in collaboration with other institutions has been working closely with African countries in the Doha and EPA negotiation processes. Particularly, ECA has provided technical results suggesting options on how African countries could deal with the various issues raised in each of the negotiations.
During the workshop that was jointly organized by ATPC and the Trade, Finance and Economic Development Division (TFED), Elisabeth Tankeu, AU Commissioner for Trade and Industry said that it was agreed that EPA should primarily serve as instruments for the promotion of sustainable development, the eradication of poverty, the reinforcement of the regional integration initiatives and the gradual integration of the countries into the global economy. She added that EPA impacts on strengthening of African regional integration process, and to building trade productive capacity.
African countries have for the last six years been engaged in Doha Round and the EPA trade negotiations. These are the Doha Round at the World Trade Organization (WTO) and EPA with European Union.

Walia steel enters market

By Muluken Yewondwossen

Walia Steel Industry, built at a cost of more than 350 million birr and three years of construction is to be officially commissioned today, in the presence of high government officials and prominent business persons. The factory began production in August 2006.
The factory rests on 36,000 sq mt Oromiya Region, Sebeta Awash Wereda around Alemgena town found 20 km west from Addis Ababa.
Walia Steel Industry has capacity to produce 40,000 Metric tons reinforcement bar and 36, 000 metric tons of hollow section profile. After expansion planned to end at the beginning of 2009, production capacity will reach 50, 000 metric tons of various types of sheet metal roof cover.
According to Degefu Debele (Eng), general manager all machinery needed for the expansion have already been imported.
Walia supplies 50 % of halo section metal for housing projects undertaken by the government Currently, the factory employment for 300 workers.
An official from the Ministry of Works and Urban Development, stated to Capital that such metal industries will contribute highly to the over all development of the country.
Currently, Kality and Abyssinia steel plants supply metal but with a construction boom in the country, the amount supplied to the domestic market does not meet demand.
Walia is owned by Libo-Sisay Joint Investment Plc. with Sisay Tesfaye is as major to shareholder Sisay is also owner of Best Plastic Industry.

Teddy starts defense

By Muluken Yewondwossen

Tewodros Kassahun, a.k.a Teddy Afro has started his defense in the Federal High Court 8th Criminal Bench against a hit and run charge on Thursday, October 9, 2008.
His lawyer Million Assefa presented 14 witnesses and 10 documents in evidence to explain Teddy’s innocence of the charge.
On Thursday’s session 8 witnesses appeared with seven giving testimony. The 14th witness, who came from Minilik II Hospital, did not testify after the objection of the prosecutor over the translator’s accuracy, as the witness is Cuban. The Court ruled to bring aother translator for the next trial. The 14th witness was also presented as the prosecutor’s witness.
Three witnesses, his friends, explained that Teddy was with them at the time he was accused of killing a young man near the National Palace at around 1 AM in November 2006.
Dr Yirgaw Ashagari from Minilik II Hospital, who signed on the first original death certificate of the young man, also testified that he signed the document, making sure the forensic pathologist who examined the body, provided all the correct information of cause of death and the date. The document said that the body was received by the hospital on November 2, 2006 and examined a day later.
However, after the prosecutor made the charge that Teddy had killed the boy on November 3, the prosecutor then applied to the hospital asking them to change the date of the death on the certificate because there had been made a mistake.
The hospital received the prosecutor’s request and changed the date, writing an apology to the Court which specified the mistake made by the hospital.
The Court also heard other witnesses and adjourned the case until October 16, 2008 to hear more witnesses and documentary evidence.
Teddy was jailed six months ago after being charged with a hit and run incident that occurred in November 2006.

Meeting agrees to promote ILO’s new Declaration

By Muluken Yewondwossen

A meeting that discussed the International Labour Organization’s (ILO) 2008 Declaration on Social Justice for Fair Globalization was held in Addis Ababa for two consecutive days from October 9, 2008 at the Economic Commission for Africa (ECA).
On the meeting high level representatives from governments, workers and employers of the International Labour Organization (ILO) as well as ILO directors in Africa attended the event, including African ministers for labour.
Participants discussed concrete ways and means to promote the implementation of the Declaration designed to strengthen the ILO’s capacity to promote its decent work agenda and forge an effective response to the growing challenges of globalization.
Abdoulie Janneh, secretary general of ECA, said on his speech “The Declaration is a landmark statement on a key issue that requires effective action from all stakeholders.” “For this reason, I commend you for organizing this timely and important meeting to promote dialogue on the implementation of the Declaration in Africa and for us here in Africa decent work and decent employment are crucial for improving the quality of life of our people to uplift them out of the poverty trap and to achieve the MDGs,” he added.
Hasen Shifa, Minister of Labor and Social Affairs, said on his part “The realization of the strategic objectives sought by the Declaration on Social Justice for Fair Globalization is, indeed, key for sustainable development and the promotion of decent work.”
The “Declaration on Social Justice for a Fair Globalization” and an accompanying resolution were adopted by acclamation of Member States, workers and employers attending the 97th International Labour Conference meeting in June 2008 following months of negotiations among its tripartite constituents representing its 182 member states.
Through the Declaration governments, employers and workers from all member states call for a new strategy to sustain open economies and open societies based on social justice, full and productive employment, sustainable enterprises and social cohesion.
Specifically, the Declaration establishes a new foundation on which the ILO can effectively support the efforts of its constituents to promote and achieve progress and social justice through the four strategic objectives of the ILO through the Decent Work Agenda -employment, social protection, social dialogue and tripartism, and fundamental principles and rights at work.
At the same time, it gives ILO constituents a key responsibility to contribute, through their social and economic policy to the realization of a global and integrated strategy for the implementation of the decent work agenda.
The Declaration highlights that globalization is reshaping the world of work in profound ways. It states that on the one hand it has helped a number of countries to benefit from high rates of economic growth and employment creation, to absorb many of the rural poor into the modern urban economy, to advance their developmental goals, and to foster innovation in product development and the circulation of ideas.
On the other hand, it has caused many countries and sectors to face major challenges of income inequality, continuing high levels of unemployment and poverty, vulnerability of economies to external shocks, and the growth of both unprotected work and the informal economy, which impact on the employment relationship and the protections it can offer.
The Declaration on Social Justice for a Fair Globalization marks the most important renewal of the Organization since adoption of the historic “Declaration of Philadelphia” in 1944.

GTZ solar installation shines

By Addis Mulugeta

GTZ’s first pilot solar power energy plant was inaugurated on October 4, 2008 at a health found 128 km west of Addis Ababa in Woliso town, as per an agreement signed between the Ministry of Health and GTZ to provide more than 50 health centers with solar energy access.
The project is part of the intervention program by the GTZ, Access to Modern Energy Services-Ethiopia (AMES-E), to provide electric power using renewable energy.
Sinknesh Ejigu, State Minister of Mines and Energy remarked during the occasion that Ethiopia is endowed with abundant solar energy and is considered to be one of the countries in the world most suited for solar energy applications. Solar photovoltaic technology application for producing electricity for different end uses is a flourishing sector in Ethiopia she said and added that the government has put in place a consultation forum with all concerned stakeholders to create a better synergy and improve the framework conditions for its rapid growth.
According to a press release, AMES-E is installing photovoltaic (PV) solar system for electricity generation in 50 off-grids, public health centers in remote areas throughout Ethiopia. PV solar systems will provide enough energy for refrigeration of vaccines, inpatient and outpatient examinations as well as powering microscopes and other medical technology.
Esayas Ababa, GTZ IS Ethiopia, deputy director, said that GTZ IS provides a system of 1.5 KW peak PV-solar modules which enable to charge a battery system of 48 volts to charge 4.8 KWH.
He added that there are challenges in logistics, transport, and the installations as well as functionality, follow up check and possible intervention in case of on expected faults.
GTZ is acting as the principal agency for the general execution of partnership launched by the Netherlands Minister for development Cooperation (DGIS) and the German Federation Ministry for Economic Development Cooperation (BMZ).