Capital

Machine failure halted largest sugar plant

By Groum Abate

Gov’t to import oil tankers

By Groum Abate

Only four months to Gilgel Gibe II power

By Muluken Yewondwossen

The 420MW Gilgel Gibe II hydropower generation project will be completed in two months and start generating power no later than May, sources disclosed to Capital.

Federal court to open separate venue for investors

By Addis Mulugeta

The Federal Supreme Court has announced it will open separate benches for litigation pertaining to investment related disputes after consultations with stakeholders on Monday, January 5, 2009.

Duguma Hunde passed away

NIB Bank hops on commodity exchange e-transaction platform

By Kirubel Tadesse

Wegagen awards card payment solution project

By Tagu Zergaw

Africa to set up investment bank

By Groum Abate

Dashen Bank now accepting MasterCard

By MulukenYewondwossen

Dashen Bank has begun accepting MasterCard in addition to Visa credit cards it began serving over two years ago. Dashen won the membership license from MasterCard one year earlier.

First Derg Chairman’s house partially demolished

By Muluken Yewondwossen

Yoda wins exhibition center
for Easter

By Muluken Yewondwossen

Prominent architect's namesake foundation to promote education

By Elias Meseret

A foundation that will provide scholarships for higher learning institutions, award architectural performance and distribute books to schools was unveiled on January 5, 2009.

Khat houses to be confiscated

By Groum Abate

Birtukan on hunger strike

‘Now is the time for the elders’ council to speak’: UDJ

By Kirubel Tadesse

US says CSO law may restrict assistance to Ethiopia

By Kirubel Tadesse

Authority issues migratory wildlife convention

By Addis Mulugeta

Negash lodge expanding its services

By Addis Mulugeta

Price relief in at least one sector

By Groum Abate

Machine failure halted largest sugar plant

By Groum Abate

Metahara Sugar Factory, the biggest of three producers, has been facing a considerable decrease in production after a crushing machine failed.
Sources told Capital the factory lowered its production of 7,000 quintals per day to 2,000 quintals per day after the problem occurred.
A public relations officer from Metahara Sugar Factory told Capital the problem has now been solved, though he declined to clarify the nature of the failure.
According to our sources, experts from Wonji Sugar factory had tried to fix the sugar cane crushing machine, but were not successful.
Metahara has a capacity of producing more than 1.2 million quintals of sugar annually. The other two sugar factories in the country -Wonji and Finchaa- have a capacity of producing each about 850,000 quintals of sugar annually.
According to our sources, sugar prices on the market are expected to rise due to the failure of the machine as last week saw the spike in the price per quintal from around 800 birr to 1,100 birr at a tender opening on Thursday, January 8, 2009. The bid opened at the Ethiopian Sugar Development Agency (ESDA) shows a staggering hike in the opening climbing the 1,000 birr mark for the first time in recent years.
Refuting these, the public relations officer at Metahara, said that Ethiopia annually consumes over four million quintals of sugar and the factories in the country could not meet the demands, leading the prices to rise. He further said that the current price hike is not associated in any way with the machine failure that decreased production at Metahara.
In a related development, the ESDA announced on Thursday, January 8, 2009, plans to buy 169 million dollars worth of sugar to tackle the current sugar shortage in the country.
The agency said that over 150,000 tonnes of sugar are expected to be imported in the coming three months from India and Egypt.
The decision to import this huge amount of sugar was made following the ever increasing demand by the local community.
Metahara Sugar Factory is an autonomous state owned agro industrial complex, which was established in 1968 with an initial crushing capacity of 1,700 tons of sugar cane per day.
The factory is now operating with an annual sugar production of 120,000 tons within a production period of 246 days.
Metahara located 200km south east of Addis Ababa, on the Addis-Dire Dawa road, produces white sugar, molasses and various types of fruits. About 3,000 tons of various kinds of fruits are marketed annually.
Metahara’s sugar is supplied to domestic and foreign markets. About 65% of the annual sales volume goes to domestic market while the remaining is exported.
The state-owned ESDA recently planned to boost sugar production by upgrading existing factories, building new plants and developing land and water resources.
The plan aims to increase sugar production at Metahara Factory to 350,000 tonnes annually from 120,000 tonnes. Wonji/Shoa plans to boost output to 120,000 tonnes a year from 85,000 tonnes by 2011. The Finchaa factory is expected to boost production to 270,000 tonnes a year from 85,000 tonnes by 2011.
The government is also building the 100-million- dollar Tendaho Sugar Factory with a production capacity of 600,000 tons a year in lower Awash Valley.

Gov’t to import oil tankers

By Groum Abate

All oil companies operating in the country submitted their requirement for oil tankers following the Ethiopian Petroleum Enterprise’s (EPE) request last week.
Sources told Capital the enterprise requested the six companies’ requirements anticipating large increases in tanker loads on the back of surging fuel demands.
According to our sources, the enterprise discussed truck specifications and import loads to curb oil transport shortages with all operators: Total, National Oil Company (NOC), Yetebaberut Beherawi Petroleum (YBP), Oilibya, Nile Petroleum, and Kobil.
Most oil tanker trucks are converting their trucks to dry cargos, which is unregulated and more lucrative, according to our sources.
Furthermore, other older trucks have been retired from fleets while country demand for fuel has been growing from 12%-14% annually.
In order to boost the oil transport sector the Ministry of Trade and Industry (MoTI) also increased transport costs to 0.096 cents per liter per kilometer.
Dry cargo transporters get a maximum price of 68 birr per quintal for transport between Djibouti and Addis Ababa.
These oil supplying companies were formerly paid 0.034 cents for the transport of a liter of gasoline per kilometer in 2007.
The lack of maintenance on vehicles transporting fuel and oil in Ethiopia has been a recurring problem. In 2002, Mobil, Total and Shell fired hundreds of tanker trucks that had been transporting petroleum products for the companies, citing safety concerns. The truck owners hotly protested eventually convincing the government to step in to broker a compromise.
EPE, in 2007, also terminated its agreements with owners of 120 trucks that formerly transported fuel from Sudan, citing concerns over the age and condition of the vehicles.
Ethiopia annually consumes about 200,000 metric tons of gasoline and 40,000 metric tons originating from Sudan.
The government, in 2005, imposed an oil tanker truck import embargo due to what it saw as excess tankers operating in the country, lifting it in 2007 after requests citing shortages of trucks Since then 364 trucks have been imported.
According to statistics obtained from the Federal Transport Authority, there are 1,200 trucks that transport fuel from Djibouti to Ethiopia, from Sudan to Ethiopia and from the companies to their respective regional retailing stations owned by 18 associations operating in the country.

Only four months to Gilgel Gibe II power

By Muluken Yewondwossen

The 420MW Gilgel Gibe II hydropower generation project will be completed in two months and start generating power no later than May, sources disclosed to Capital.
As the result of consecutive natural hazards, project completion has been delayed for over a year.
A month ago the project was halted for several days due to its drilling machine getting stuck in the muddy terrain. This came just after striking a hot spring, a development that forced diversion of the dam tunnel.
Now only three kilometer of drilling remains to complete the 27km tunnel.
Being constructed by the same contractor as the first of the slated three hydropower projects in the Omo River Valley, Salini Costruttori uses water channeled under Fofa Mountain from the Gigel Gibe I.
The project cost is projected to be 373 million euro.
Though the Ethiopian Electric Power Corporation (EEPCo) has started a number of generation projectsm, the country’s annual power demand growth of 16% has risen quicker than constructions could keep pace with causing huge power shortages. Accordingly, power shedding has already begun to affect the state power monopoly’s customers as the Tekkeze and Gilgel Gibe II hydropower projects have been in jeopardy of not being in use during the coming rainy season.
Last year’s power shedding had reached up to three days a week, which is said to have cost the country 2% of GDP, estimated to be 600 million birr.
Currently, the Gibe III hydropower project, a continuation of the second phase nearing completion, is under construction at a cost of 1.3 billion euro by Salini. Gibe III, which has the capacity to generate 1873MW, is scheduled to be completed in 2010.

Federal court to open separate venue for investors

By Addis Mulugeta

The Federal Supreme Court has announced it will open separate benches for litigation pertaining to investment related disputes after consultations with stakeholders on Monday, January 5, 2009.
Menbere Tsehay Tadesse, Vice President of the Federal Supreme Court, told Capital that this separation will save the business community time and money they had lost during lengthy and delayed trials.
“Most decisions will be reached within a day,” Menbere said, adding the swift work will help facilitate investment projects.
The federal court has received construction plans for four first instance courts; three in Addis Ababa and one in Dira Dawa.
“The cessation courts will enable disputes related to finance and property with banks, insurance companies, and among the business community,” added Menbere.
Court representatives discussed the plans with members of the media and businesspeople after consulting attorneys about how the new system would affect their work.
This is one of many new operating systems courts have been introducing recently. On August 3, 2007, the Federal Supreme Court launched e-litigation services allowing case tracking via the web or mobile phones. Cell phone subscribers were recently notified of these services via a mass SMS text message.
The courts will be consulting the public in forums in each sub-city of Addis Ababa on their new plans.

Duguma Hunde passed away

The Ethiopian industrial conglomerate Duguma Hunde owner and General manager of DH Geda passed away on Friday night January 9, 2009 with a heart problem.
The known businessman who participates in diversified sectors died after he went home feeling sick.
Duguma who was born in Sodo town in the Southern Nations Nationalities and People's Regional State runs over six factories apart from his businesses in the banking sector.
Duguma who is in his late 60's is working on setting up a cement and beer factories. His latest investment in the cement sector with his family members, have an initial production capacity of 250 tons of cement per day with an outlay of 80 million birr.
Duguma who is also a great fan of Barack Obama was planning to attend his inauguration. A blogger recently posted about his interest in the US election. "So have you taken any interest in the U.S. election?" the blogger asked Duguma where he pulled a wallet-size photo of Barack Obama from his pocket. "I'll see you at the inauguration" he replied to the blogger.
DH Blanket, Galvanized Iron Sheet (GIS), Paint, Flour and Dyeing and bleaching factories are among the manufacturing industries of DH GEDA. In addition it is also engaged in tower renting and production and import-export business of other consumable goods.

NIB Bank hops on commodity exchange e-transaction platform

By Kirubel Tadesse

After integrating and automating its branches in Addis Ababa, NIB International Bank has sealed an agreement with the Ethiopian Commodity Exchange (ECX) to join its electronic transaction platform, becoming the fifth settlement and clearing bank.
As per the agreement signed last Friday, January 9, 2009, NIB can now carry out clearance and settlement operations for its grain exporter customers dealing with ECX electronic transactions as it already networked its and the commodity exchange’s settlement systems.
Together with its financial partners, ECX acts as Central Counter Party (CCP) for buyers and sellers to establish the parties and amounts involved in debt obligations in its clearance and settlement service operation. The settlement service provides cash and commodity ownership transfers between members who have accounts in member banks.
According to the exchange’s CEO Eleni Zaude Gebre-Madhin (PhD), the system accepts payment from the buyer and puts it into the account of the seller [found in partner banks] within the same day.
“I assure you that we at NIB are determined to perform the settlement activities in a professional and efficient manner to satisfy customers,” Amerga Kassa, NIB President, promised Dr. Eleni-Zaude when the two inked the agreement at ECX headquarters.
“We can achieve a new frontier together,” Dr. Eleni Zaude explained during the signing ceremony, “by selling-up warehouse receipt financing in the future.”
Early in December last year United and Awash banks had joined Dashen and Commercial Bank of Ethiopia (CBE) to partner with ECX. The same week NIB had embarked on another deal with ETA Infotech, an international IT solution provider, expediting projects to meet with the commodity exchange’s criteria of linking all branches.
The latest deal adds an additional 16 branches into NIB’s network which had 14 branches where the bank’s export customers are among regular customers. The automation and networking of 30 from the total 41 braches of NIB uses the StarBank Banking Solutions which was implemented by ETA Infotech, a member of ETA ASCON & ETA STAR Group, a four-billion dollar conglomerate based in the United Arab Emirates (UAE), in collaboration with NIB’s Information Technology Department.
Registering a 49% increase over the pervious year, NIB had announced a record net profit of over 113 million birr in 2007/08. NIB’s total assets, deposits, loans and advances had also surged by 40.0%, 31.6% and 16.1% respectively to reach 3.65 billion, 2.41 billion and 2.11 billion birr.

Wegagen awards card payment solution project

By Tagu Zergaw

Wegagen Bank has signed a contract with Technology Associates Kenya, together with local partners OraTech Consulting Ethiopia, for the deployment of a turnkey card payment solution and a network of Automated Teller Machines (ATMs) and merchant PoS (point of sales) terminals in Addis Ababa.
The contract agreement signed on December 31, 2008, involves the implementation of world leading card payment technologies from TietoEnator, Wincor Nixdorf and Ingenico and was awarded after a year-long tender evaluation process.
The agreement indicates that the project will cost more than 1.9 million dollars.
According to the statement from the bank, Technology Associates is sub-Saharan Africa's largest provider of card payment solutions enjoying a customer base of over 26 banks where they have assisted in the issuance of more than three million cards, over 1,000 ATMs and 4,000 PoS terminals.
During the signing ceremony Akalu Geleta, board member and chairperson of the Automation Project Sub-Committee, explained the readiness of Wegagen to launch modern banking technology to improve its service provision while it is restructuring.
Gautam Nair, Managing Director of the Technology Associates Group, indicated that Technology Associates provides the foundation for other advanced banking technologies such as mobile banking, tele-banking and others which could further enhance customer services and shareholder value.
''We are delighted to partner with Wegagen Bank and look forward to helping them deploy the leading card product and self-service network in Ethiopia," Mr. Nair said. "Our commitment to Ethiopia is clear and we look forward to establishing Wegagen's card project as the ideal reference for our engagements in the Ethiopian financial service industry."
Bank President Araya G. Egziabher extended his appreciation to the Board of Directors for its endorsement and follow-up to introduce this modern technology enabling the Bank to jump a major step forward.
Wegagen Bank will issue over 100,000 Visa cards to their customers and process card transactions using the latest card management systems. The initial phase of the project will also deploy approximately 30 ATMs and 200 merchant and branch PoS terminals for use by Wegagen's customers countrywide.
Wegagen was established 11 years ago and currently has close to 200,000 customers and 45 branches across the country. The Wegagen Visa card product, complemented by a large self-service banking network will catapult Wegagen's offering to its customers through the establishment of a world-class retail, consumer banking platform.

Africa to set up investment bank

By Groum Abate

African Finance Ministers will meet in Addis Ababa on January 14 to endorse the final plans for the creation of an ‘African Investment Bank’, expected to precede the formation of an African Central Bank, a senior diplomat said on Thursday, January 8, 2008.
The African Union’s (AU) Commissioner for Economic Affairs, Dr. Maxwell Mkwezalamba, said the emergency meeting of the African finance ministers would approve a proposed protocol setting up the bank, to be based in Libya.
“We believe there is room for an African Investment Bank. We see it focusing on continental and regional projects and financing the private sector to implement cross-border projects,” Mwezalamba told a news conference.
The finance ministers will converge at the AU Commission headquarters next Wednesday to endorse proposals that would have been worked out by a group of experts, drawn from the regional financial experts and central bank governors.
The protocol setting up the African Investment Bank has been drawn and is to be discussed at the emergency ministerial conference, ahead of the 12th session of the AU heads of state assembly, due to held here February 1-3.
The plan is to create the bank as a wholly-owned African institution, much different from the African Development Bank (AfDB), currently based in Tunis.
The ministers argue that the set up of the AfBD does not allow Africans much say in the bank.
According to Dr. Mwezalamba, the ministers will adopt plans for the capitalization of the new bank. This will allow African states and the Africans in the Diaspora to subscribe to majority stakes in the bank.
The bank will also be buoyed by the proposed ‘Pan African Stock Exchange’, which will also be discussed at the forthcoming meeting.
The ministers will examine bold initiatives to consolidate Africa’s financial and capital markets. Among the issues on the agenda of the meeting is the creation of the African central bank, which is billed for Nigeria, and the African Monetary Fund.
Mkwezalamba said that the African Investment Bank is expected to be ready within the next two years, but the setting up of the African Central Bank might take longer, with the work program seen taking more than 10 years to accomplish.
The ministers will also set in motion a plan for Africa’s financial consolidation. The plan will start with the implementation of an agreement setting up of an African Microfinance Policy framework, which the ministers are expected to approve.
These proposals would then be discussed and adopted at the assembly of heads of state.

Dashen Bank now accepting MasterCard

By MulukenYewondwossen

Dashen Bank has begun accepting MasterCard in addition to Visa credit cards it began serving over two years ago. Dashen won the membership license from MasterCard one year earlier.
US based MasterCard has more than 100 million clients worldwide and 40 years of experience. It holds a 30% global market share.
MasterCard is one of the major credit cards used regularly by people in the United States, second only in name recognition and worldwide billings to Visa, according to information from MasterCard’s website. The credit card company claims it differentiates itself from Visa by targeting the middle class rather than tailoring service to high income clients.
Currently, the bank gives debit service only for Visa cards. Clients can withdraw up to 3,000 birr in cash and can buy goods and services of up to 5,000 birr a day.
The bank has over 15,000 visa card users in the country.
Dashen Bank generated close to 31 million dollars last year from its Visa card services, according to the bank report.
Visitors to Ethiopia possessing Visa electronic payment cards are able to withdraw money from their overseas accounts; but 89% of this transaction occurred at one of the 20 ATMs the bank installed in Addis Ababa and other major towns in the country, and were in local currency.
Dashen is a pioneer in entertaining international electronic payment systems using Visa. It also issues debit cards to its local clients, who can withdraw funds from their saving accounts through the automated machines.
The bank disclosed the total transaction value from its card acceptance network exceeded 120 million birr.
In the past Ethiopian fiscal year (2007/08) Dashen Bank registered record net profits of nearly 240 million birr; it makes the bank the most profitable private bank in the nation.
According to the Dashen Board of Directors annual report, the bank has secured a record profit of 332.5 million birr and paid a profit tax of 93.5 million birr which adds up to a net profit of 239.1 million birr during fiscal year ended on June 30, 2008. During the same period the bank collected 6.2 billion birr from deposits, a 26.6% boost when compared to the previous year performance, which was driven by over 20 percentage growth in depositors’ number. Its total branches had reached 47 excluding four foreign exchange bureaus. Dashen Bank came into existence on September 20, 1995, according to the commercial code of Ethiopia, 1960.The first founding members were 11 businessmen and professionals that agreed to combine their financial resources and expertise to form this new private bank, according to the bank website.

First Derg Chairman’s house partially demolished

By Muluken Yewondwossen

The former residence of the first post-imperial acting head of state, General Aman Mikael Andom, was partially demolished on Tuesday, January 6, 2009, in an Addis Ababa City Road Authority (AACRA) expansion project.
The house, located in the western part of the city behind the Ministry of National Defense Hospital, partly lies in the space where China Road and Bridge Corporation (CRBC) is constructing a roundabout.
Fekade Hailu, head of AACRA, told Capital that demolition was carried out in accordance with the master plan and no objections had previously been raised.
“Though 1.5 million birr was offered to the current owner of the house, she is complaining it is not enough,” said Fekade.
Aman Mikael Andom (1924 -1974) was appointed head of state following the coup d’etat that deposed Emperor Haile Selasse on September 12, 1974, and served until his death in a shootout with his former supporters.
His official title was ‘Chairman of the Provisional Military Administrative Council’ (better known as the Derg), and he held the position in an acting capacity as the military regime had officially proclaimed Crown Prince Asfaw Wossen as “King Designate” (an act that would later be rescinded by the Derg, and which was never accepted by the prince as legitimate).
As commander of the Third Division, General Aman had been beating back the encroachments of the Somali army on the eastern border earning him the nickname “Desert Lion.” However, in 1964 the Emperor dismissed him when he began to advance inside Somalia in violation of his order and Aman afterwards served in the Ethiopian Senate in “political exile”.
History books indicate General Aman had contacts with the officers of the junta as early as February and March of 1974, but by July he was appointed chief of staff to the military junta. Three days after the junta removed the Emperor from his palace to imprisonment at the headquarters of the Fourth Division; this group appointed him their chairman and president of Ethiopia. At the same time, this group of soldiers assumed the name “Provisional Military Administrative Council” Derg.
From the first day of his presidency, the general found himself at odds with a majority of the Derg’s members over most major issues, including whether he was ‘chairman’ of the ruling military body or simply its ‘spokesman. Aman fought the majority of the Derg over three central issues: the size of the Derg, which he felt was too large and unwieldy; the policy to be taken towards the Eritrean Liberation Front (ELF); and over the punishment of the numerous aristocrats and former government officials in the Derg’s custody.
His refusal to sanction the execution of former high officials, including two former prime ministers and several royal family members and relatives, put his relations with the majority of the Derg on bitter footing.
As an Eritrean, General Aman found himself fiercely at odds with the Derg leadership. He wanted to negotiate a peaceful settlement; his opponents hoped to crush the ELF by military force. Aman went as far as making two personal visits to Eritrea giving speeches stating that the end of the Imperial Regime was also the end of old practices towards Eritrea, that a government dedicated to national unity and progress would restore peace and prosperity to Eritrea, and lastly that he would begin investigations concerning crimes that the army had perpetrated on Eritreans and punish the guilty.
However, at the same time the Derg had begun eliminating opponents within the military. The three significant units were the Imperial Bodyguard, the Air Force, and the Corp of Engineers; of the three, the most recalcitrant were the Engineers.
Eventually, soldiers loyal to the Derg stormed the Engineers’ camp, killing five, wounding several and detaining the rest.
General Aman died in a battle with troops sent to his home to arrest him. The actual cause of his death remains unclear, whether he was killed or committed suicide.
That same night, the political prisoners that the Derg had marked for execution were taken from Menelik prison, where they had been held, to the Akaki Central Prison where they were executed and buried in a mass grave.

Yoda wins exhibition center
for Easter

By Muluken Yewondwossen

Yoda has won the tender the Addis Ababa Chamber of Commerce and Sectoral Association floated for staging the coming Ethiopian Easter bazaar at the Addis Ababa Exhibition Markets Development Center in Meskal Square.
Yoda won the rights with its 1.12 million birr bid beating out competitor Afro Dan, which offered 920,900 birr.
One of the other participants, Century Promotion, was disqualified for not meeting the technical requirement.
Yohannes Kebede, Deputy Manager of Master Film and Communication (the Christmas Bazaar organizer), told Capital that his company was only interested to organize New Year’s bazaars, but companies that worked with Master on the New Year’s bazaar prompted them to participate in the Christmas event. He added that the Christmas exhibition has been a success.
“We have other business areas to focus on now so we were not interested to participate in the Easter exhibition,” said Yohannes. “However, we will facilitate the entertainment and promotion work for the Addis Ababa Chamber of Commerce event organized for next month. We also have another special fair we have organized with a non-governmental-organization (NGO).”
Tamirat Admassu, General Manager of the Addis Ababa Exhibition Center, told Capital that the Christmas exhibition has surpassed previous fairs.
“On the last day alone over 80,000 people attended,” Tamirat said, adding that he expects Master to participate in future events.
Yoda has facilitated Christmas and Easter trade fairs and bazaars collaborating with another company two years ago.

Prominent architect's namesake foundation to promote education

By Elias Meseret

A foundation that will provide scholarships for higher learning institutions, award architectural performance and distribute books to schools was unveiled on January 5, 2009.
In an event organized at Bole Sub City's Kebele 03/05 Hall to unveil the Seifu Berke Foundation and commemorate Seifu Berke (SB) Consult's 25th Anniversary, the foundation announced its intention to work with the private and public sectors to boost education quality and reach.
Named after the late architect and consultant, Seifu Berke, the foundation gained accreditation from the Ministry of Justice (MoJ) four months ago.
"Seifu has done such outstanding work and we want his legacy to live on by setting up a foundation that will support students and professionals engaged in the area he made such a deep impact in," Birhanu Berke, Board member of the Foundation said.
Among other projects, Seifu has taken part in the design and consulting of the Mekelle Airport, Fincha Sugar Factory, Commercial Bank of Ethiopia's (CBE) buildings, Ethiopian Airlines offices, Amhara Development Association building and monument, Alsam building, Bahir Dar Resort Hotel and buildings of American, Algerian and Israeli Embassies in Addis Ababa.
"We look forward to forming partnerships with many institutions to promote quality education for those who would otherwise not have the opportunities they deserve," Melbana Seifu, board member of the foundation told Capital. Melbana, who is also Manager of SB Consult, a company established by her late father a quarter a century ago, added that the foundation will solicit funds through donation drives, organizing events and seeking long-term partners.

Khat houses to be confiscated

By Groum Abate

The Addis Ababa City Government says it will take severe actions against khat and shisha houses up to the point of confiscation of property.
According to city officials, fines will be levied against property owners who rent space for khat chewing and shisha smoking, a business technically illegal but widespread in towns across the country. The second offence comes with imprisonment of up to three months, while if an owner is found selling the services a third time the government may seize the property.
The measure comes after the city’s council approval to crackdown on the parlors popular amongst many segments of the population.
Although khat trading and using is still legal, the city is moving against the houses they believe promote criminal activity and contribute to school truancy.
The mild narcotic, which causes users to experience excitement, euphoria and loss of appetite, is popular in parts of East Africa and Yemen. It is also one of Ethiopia’s top exports with daily flights as far as Europe.
The city task force has been slapping notices on the doors of khat houses and confiscating hookahs.
The city has been clamping down an khat and shisha houses for the past couple of years somewhat haphazardly.

Birtukan on hunger strike

‘Now is the time for the elders’ council to speak’: UDJ

By Kirubel Tadesse

Birtukan Midekssa, Chair of the opposition Unity for Democracy and Justice Party (UDJ), who two weeks ago resumed serving a life sentence, is on hunger strike, her family disclosed to Capital.
Birtukan's pardon was revoked after the Ministry of Justice (MoJ) announced she failed to annul her pardon request denial. She was then arrested and started the life sentence on December 29, 2008.
Her mom and daughter are the only people visiting Birtukan, her family explained to Capital.
"I, together with my grand daughter [Birtukan's daughter], visited her on the weekend and also for Christmas," 72-year-old Almaz Gberegziabeher, Birutkan's mother, explained to Capital. "She seemed fine. She held her daughter in her arms."
In a related development, Birutkan's UDJ party national council held an emergency session and issued a statement late last week demanding an immediate release of its chair which was echoed by four other opposition groups last week.
"We elders, who firmly believe that true solutions to our country's problems come not from foreigners but from indigenous elders, have been making efforts through the last 18 months, to find indigenous, traditional and peaceful solutions to the conflict in our country following the 2005 election. We made these efforts through our own initiative, motivated only by our ardent love for our country and free from political, religious or any other form of pressure," UDJ's national council statement quotes elders' council chairman, Professor Ephrem Isaac on state media on the day former CUDP leaders were released.
The quote, according to the UDJ national council, clearly describes the nature of the reconciliation and pardon issued and the manner in which it was processed.
"We call upon the elders whom we saw on television on Hamle 13, 1999, [July 20, 2007] expressing their happiness because their 18-month dedicated effort had born fruit, and who were deservingly awarded prizes in the United States, to come out in the open and explain to the Ethiopian people the true nature of reconciliation process according to the promise they had made to the prisoners at the time of their release. Now is the time to speak," UDJ's statement sent to Capital reads.
Various opposition groups whose chairs have individually condemned the arrest of Birtukan have teamed up this week to officially call for Birutkan's release.
Founded by the United Ethiopian Democratic Forces (UEDF), Somali Democratic Alliance forces (SDAF), Arena Tigray for Democracy and Sovereignty (Arena) and Oromo Federalist Democratic Movement (OFDM), Forum for Democratic Dialogue (FDD) called on the government to reconsider its decision of revoking Birtukan's pardon.
The government's ground for revoking Birtukan's pardon was also questioned by UDJ and FDD. However, Birtukan's pardon was revoked in accordance with legal procedures, according to Minister of Justice, Berhan Hailu.
The Ethiopian News Agency (ENA) quoted Minister Berhan saying, "Birtukan remained unwilling to refute her briefing given to foreign media which quoted her saying that she had not made a plea for pardon, which is far from truth."

US says CSO law may restrict assistance to Ethiopia

By Kirubel Tadesse

The US has voiced concern that the 'Charities and Societies' law the Ethiopian parliament passed last week may restrict government assistance to the country.
"The law restricts NGO activities," a statement issued by US Department of State on January 8, 2009, two days after endorsement of the bill by 327 votes to 79, reads.
This US foreign office explained it recognizes the importance of effective oversight of civil society organizations to ensure accountability, efficiency, transparency, and a clear set of operating procedures for NGOs.
"However, we are concerned this law may restrict US government assistance to Ethiopia, particularly on promoting democracy and good governance, civic and human rights, conflict resolution, and advocacy for society's most vulnerable groups - areas the Ethiopian government has defined as critical for development," the State Department added.
Ethiopian Ministry of Foreign Affairs (MoFA) sources were not available for comment on the statement. However the ministry's weekly statement reads that the CSO law is aimed at ensuring the right to association as well as aiding and facilitating the role of charities and societies in the overall development of Ethiopia.
Opposition political parties hotly debated the bill and have repeatedly called for revision of some of the controversial articles. Particularly contentious is the stipulation that prohibits foreign agencies (defined as those that receive more than 10% of their funding from abroad) from operating in areas including human rights and conflict resolution.
Last Tuesday, opposition MPs said that some foreign governments would react negatively if the legislation is passed.
"We should leave this joke and vote for the bill that would help our nation's effort for development," MP Hailemariam Desalegn, Government Whip with a ministerial portfolio, ridiculed opposition's anticipation.
The House session didn't have time to hear from independent MPs Mesfin Nemera and former President Dr. Negasso Gidada, both of whom have strongly criticized the bill when it was first presented to the house last Month. Mesfin strongly denounced both the bill and speaker's explanation why the House didn't have time to listen to what he had to say.
"I will sue if I am not given three minutes," Mesfin briefly interrupted the session before the government whip proposed the speaker regulate discussion.
However, Mesfin walked out of the session before the closing votes were cast.

Authority issues migratory wildlife convention

By Addis Mulugeta

The Ethiopian Wildlife Conservation Authority, along with other stakeholders, is finalizing a migratory wildlife convention for endorsement. This was explained at the finale of the 'Protected Areas in Ethiopia: 50 Years and Beyond' workshop.
Dr. Kifle Argaw, Director General of the authority, told Capital the organization submitted the necessary procedures and regulations to the Ministry of Culture and Tourism (MoCT) to present it to the Council of Ministers for discussion.
"Ethiopia is the only East African nation that has not signed the international migratory bird and animal convention," Dr. Kifle said, adding the convention ensures financial and technical support for wildlife projects that are beneficial for both environmental and development concerns related to tourism promotion. "We host migratory birds and elephants that cross borders with Eritrea and Sudan that must be protected and that could promote tourism."
Many birds from Asia and Europe winter in Ethiopia, according to experts.
Dr. Kifle's presentation identified problems and solutions that are challenged for Ethiopia's national parks to consider. Challenges include community isolation, lack of a collaboration system to coordinate the various concerned bodies, poaching and encroachment on protected areas due to inefficient and bureaucratic working procedures. Participants agreed that raising awareness and attention to Environmental Impact Assessments (EIAs) should help to protect the valuable species and ensure tourism benefits.
Local communities in the Simien Mountain National Park are seen by experts as exemplary for generating huge amounts of revenue through various services. Housing the endemic Hamadryads Baboon, participants estimated that last year alone, the combined revenue of all services in tourist related services totaled close to a billion birr.
Yeneneh Teka, coordinator at the authority, in his 10 papers during the organization's six months of work, sees huge gains in promoting the national parks as well as parks preserved by local communities.
Menagesha Park, preserved in the late 14th century during the time of ZaraYaqub, is one often cited as one of the country's uniquely harnessed resources.
Ethiopia's many national parks enable the visitors to enjoy the country's scenery and its wildlife, conserved natural; habitants, and offer opportunities for travel adventure unparallel in Africa.
Awash National Park is the oldest and most developed wildlife reserve in Ethiopia including 450 birds of species. The establishment of Bale Mountain National Park is seen as crucial for the survival of the Mountain Nyala, Menelik's Bushbuck and the endemic Simien Red Fox.
The Baro River area, accessible by land or air through the western town of Gambella, remains a place of adventure and challenges. Home to the Gambela National Park, its unique landscape and wildlife is largely seen as an unexploited tourist attraction.
Far to the southwest lies Omo National Park, the largest in the country, but one of the least-visited wildlife sanctuaries in East Africa.

Negash lodge expanding its services

By Addis Mulugeta

Woliso's Negash Lodge is expanding its services with a new building to encompass a conference hall and 76 bedrooms with a total investment capital of 15 million birr.
Negash lodge owner and General Manager Zemetawork Negash told Capital she expects increased traffic to the area lying 112km southwest of Addis Ababa in the Oromia Regional State.
"We are surveying to develop golf courses, ground tennis, an Olympic size swimming pool, horse riding and basketball courts," Zemetawork told Capital, citing a growing market for weekend retreats from the capital.
With a natural hot springs pool and its proximity to Wenchi Crater Lake, Negash Lodge has enjoyed an increased flow of traffic lately. Visitors remark that the forested atmosphere with diverse wildlife including monkeys and birds creates a peaceful ambiance.
A native to Woliso and mother of three, Zemetawork has encouraged her children to pursue education in hospitality and to involve in the business.
The hotel that employs 126 people was built in the late 1930's as a holiday spot for the royal family.
The former government-owned 'Ethiopia Hotel', part of the Ghion chain, was privatized four years ago and lies on a 90,000sqm plot.

Price relief in at least one sector

By Groum Abate

The Ministry of Trade and Industry (MoTI), on Thursday, January 8, 2009, announced vast decreases in its monthly fuel price adjustment.
New fuel prices effective January 9 and lasting until February 7, reflect the global oil prices still hovering below 50 dollars a barrel and continued economic woes.
Accordingly, the readjusted price of diesel for Addis Ababa is 7.13 birr per liter, while ethanol-benzene blended fuel slashed to 7.47 birr a liter from 8.37 birr last month.
The price of kerosene decreased to 5.50 birr from last month’s 6.43 birr.
According to the new price readjustment, the price of light black naphtha is 5.47 birr, and heavy black naphtha is 4.99 birr per liter while the price of jet fuel is readjusted to 7.70 Birr a liter.
The Council of Ministers had issued a regulation on its October 3, 2008, meeting to readjust fuel prices on a monthly basis.
The Organization of Petroleum Exporting Countries (OPEC), which accounts for about 40% of global crude supply, has signaled it plans to continue reducing output quotas.
But analysts say the success of any production cuts in stabilizing oil price will depend on how closely OPEC members comply. OPEC’s overall November production was well above quotas agreed to by member states, according to Platts, the energy information arm of McGraw-Hill Cos.
Oil prices have fallen 70% since peaking at 147.27 dollars in July 2008.

Machine failure halted largest sugar plant

Gov’t to import oil tankers

Only four months to Gilgel Gibe II power

Federal court to open separate venue for investors

Duguma Hunde passed away

NIB Bank hops on commodity exchange e-transaction platform

Wegagen awards card payment solution project

Africa to set up investment bank

Dashen Bank now accepting MasterCard

First Derg Chairman’s house partially demolished

Yoda wins exhibition center for Easter

Prominent architect's namesake foundation to promote education

Khat houses to be confiscated

Birtukan on hunger strike

US says CSO law may restrict assistance to Ethiopia

Authority issues migratory wildlife convention

Negash lodge expanding its services

Price relief in at least one sector

MORE

Machine failure halted largest sugar plant

Gov’t to import oil tankers

Only four months to Gilgel Gibe II power

Federal court to open separate venue for investors

Duguma Hunde passed away

NIB Bank hops on commodity exchange e-transaction platform

Wegagen awards card payment solution project

Africa to set up investment bank

Dashen Bank now accepting MasterCard

First Derg Chairman’s house partially demolished

Yoda wins exhibition center for Easter

Prominent architect's namesake foundation to promote education

Khat houses to be confiscated

Birtukan on hunger strike

US says CSO law may restrict assistance to Ethiopia

Authority issues migratory wildlife convention

Negash lodge expanding its services

Price relief in at least one sector

Yoda wins exhibition center
for Easter

Yoda wins exhibition center
for Easter