By Muluken Yewondwossen

The Ethiopian Capital Market Authority (ECMA) has revealed plans to proceed with the sale of ten percent shares of Ethio Telecom before the finalization of public offerings and trading of securities directive, marking a significant milestone in the country’s economic landscape.

According to ECMA, the draft directive for public offerings was made available for public feedback for the second time on Friday. As the regulatory body overseeing the primary share market and the forthcoming secondary market, ECMA aims to facilitate the smooth transition of Ethio Telecom’s shares to the general public.

Director General of ECMA, Brook Taye, highlighted that the Capital Market Proclamation No. 1248/2021 enables the state-owned telecommunications giant to offer a portion of its shares to the public. This move is part of the government’s broader strategy to open up key sectors to private investment and enhance market competitiveness.

Recent discussions led by Ethiopian Investment Holdings (EIH), chaired by Prime Minister Abiy Ahmed and comprising current and former government officials and experts, assessed ECMA’s progress in preparing the market and the readiness of Ethio Telecom for share sales. PM Abiy Ahmed emphasized the government’s commitment to privatize 10 percent of Ethio Telecom’s shares, enabling Ethiopian citizens to participate in the ownership of the national telecommunications company.

Brook Taye reiterated ECMA’s support for Ethio Telecom’s partial privatization and emphasized the authority’s role in fostering market development. He revealed that ECMA is also assisting other private companies interested in listing on the future capital market, signaling a broader effort to diversify investment opportunities in Ethiopia.

In addition to facilitating share sales, ECMA has embarked on licensing capital market service providers, attracting interest from both local and international entities. Taye disclosed that a global investment advisory firm recently submitted an application to operate on the future Ethiopian Securities Exchange (ESX), underscoring growing international interest in Ethiopia’s capital market.

Furthermore, ECMA has taken proactive steps to safeguard market integrity and enhance technological capabilities through strategic partnerships. Two memorandums of understanding (MoUs) were signed on Thursday: the Capital Market Integrity Task Force Cooperation and Coordination Agreement, aimed at collaborating with law enforcement agencies to combat illicit activities, and a strategic partnership agreement with the Ethiopian AI Institute, National ID, and the Information Network Security Administration to enhance technology infrastructure.

These initiatives reflect ECMA’s commitment to fostering a transparent and robust capital market environment in Ethiopia, setting the stage for increased investor confidence and economic growth.

By our staff reporter

In a collaborative effort between the government of Ethiopia and the international humanitarian community, a comprehensive Humanitarian Response Plan (HRP) has been launched to address the escalating crisis in the country. The plan, issued in February 2024, aims to provide urgent assistance and protection to crisis-affected populations across Ethiopia.

The HRP highlights the pressing challenges faced by the nation, including the impact of climate change and ongoing conflicts, which have resulted in a multitude of humanitarian needs. Ethiopia’s vulnerability to climate change has been evident for decades, with weather shocks causing significant harm to the most vulnerable communities. After consecutive failed rainy seasons since late 2020, the prolonged drought in southern and southeastern Ethiopia has been particularly devastating. However, the recent belg rains have brought temporary relief by replenishing water sources and rejuvenating pastures.

Furthermore, the intensifying El Niño-driven drought in northern Ethiopia has compounded the situation, affecting communities already grappling with food insecurity. While partners had temporarily halted food assistance due to aid diversion incidents, the government, private sector, and local communities have come together to provide life-saving support. However, sustained assistance is crucial as recovery efforts continue in the coming years. Additionally, the projected belg season flooding poses another challenge that needs to be addressed proactively to mitigate its impact in 2024.

The HRP outlines strategic response priorities that encompass various sectors, including agriculture, education, health, nutrition, protection, and water, sanitation, and hygiene (WASH). It emphasizes the importance of operational capacity, access to affected areas, and measures to protect vulnerable populations from sexual exploitation and abuse.

The plan also emphasizes the need for strong coordination and collaboration among stakeholders. It acknowledges the vital role of donors and humanitarian agencies in supporting Ethiopia’s response efforts and expresses gratitude for their continued partnership. With the requirement of over US$3 billion in funding for this year alone, the government and its partners are calling for enhanced solidarity to address the growing needs and avert the risk of a humanitarian disaster.

The Humanitarian Response Plan for Ethiopia serves as a crucial tool to guide the allocation of resources and ensure a well-coordinated and effective response. It is a testament to Ethiopia’s commitment to working in partnership with the international community to assist those in dire need.

As the crisis in Ethiopia continues to evolve, the success of the HRP will hinge on early action and sustained support from donors. The humanitarian community is determined to overcome the challenges posed by conflicts, climate change, and other factors to provide timely assistance and protection to the most vulnerable populations in Ethiopia.

The launch of the Humanitarian Response Plan marks a critical step forward in addressing the humanitarian crisis in Ethiopia. By mobilizing resources, strengthening partnerships, and prioritizing the needs of crisis-affected communities, Ethiopia and its international partners aim to make a meaningful difference in the lives of millions of people who are in urgent need of assistance.

By Eyasu Zekarias

Ethiopia’s flower industry, the second largest foreign exchange earner after coffee, is at risk of suffering significant setbacks due to the presence of the False Codling Moth (FCM). According to recent data, the sector was projected to earn $600 million USD from exported flower products in the 2022/23 fiscal year. Notably, Ethiopia, along with Kenya, Ecuador, Vietnam, and the Netherlands, is a major supplier of flower products to the European market.

The European Union Plant Health Unit of DG Sante has made a decision requiring stringent procedures for flower products from European Union countries due to the potential introduction of the FCM, a destructive pest. The Ethiopian Agriculture Authority has acknowledged that the FCM is already prevalent in the country. However, when the pest is transported to European countries, changes in environmental conditions can cause it to become a disease, exacerbating the problem.

Experts in the field emphasize that eradicating the FCM from Ethiopia is a challenging task that demands immediate attention. In response, the Ethiopian Agricultural Authority has initiated discussions with horticulture producer exporters to explore potential solutions and administrative measures.

Unfortunately, a recent report from the European Union, which receives 85 to 90 percent of Ethiopia’s flower production, highlights the significant challenges that lie ahead. The European Food Safety Authority (EFSA) has issued a report regarding the presence of the FCM on flowers since 2018. As a consequence, European countries have warned that imports of flower products from Ethiopia will be halted unless they receive confirmation that the goods are free from FCM.

Diriba Kuma, the Director General of the Ethiopian Agriculture Authority, expressed concern that this decision could have devastating consequences for the country’s flower industry. Although there are approximately 50 players in Ethiopia’s flower industry, FCM has been detected on seven farm stations, resulting in the quarantine of those facilities in European countries.

In recent years, shipments of roses from Ethiopia to Europe have been intercepted due to the presence of FCM. European regulations dictate that the detection of a single living FCM at any stage of development within a shipment leads to the rejection of the entire consignment. FCM is included on the European Commission’s list of harmful organisms recommended for regulation as quarantine pests to prevent its introduction into Europe, where it poses a threat to various outdoor and glasshouse crops.

Prior to the establishment of the Ethiopian Agricultural Authority, horticulture farms in Ethiopia were not subject to strict control measures. Producers and exporters were responsible for self-monitoring and sending their products to foreign markets. However, with the establishment of the authority, the government has now taken an active role in controlling all agricultural products.

Under the newly approved European Union law, the inspection rate for rose consignments has increased from 5 percent to 25 percent due to the growing concerns surrounding FCM. Consequently, any consignment of roses entering the European Union will now undergo a 25 percent inspection. If FCM is found in more than 25 percent of the inspected consignments, the inspection rate may be further increased.

Diriba Kuma, Director General of the Ethiopian Ministry of Agriculture, has emphasized that while the FCM cannot be eradicated in Ethiopia, it can be prevented. He suggests two options for prevention: either prohibiting the entry of the pest into greenhouses or implementing strict control measures. However, a complete ban on FCM could potentially have adverse effects on the national interest.

The False Codling Moth (FCM), also known as Thaumatotibia leucotreta, is a native pest to sub-Saharan Africa and affects over 70 host plants, including roses, citrus fruits, peppers, and maize. Controlling this pest is challenging due to its wide range of hosts. FCM is not only present in Ethiopia but also in Kenya and several islands in the Indian and Atlantic Oceans, such as Mauritius and Cape Verde.