During his first official visit to Ethiopia and Africa in general Rex Tillerson, Secretary of State of the US, expressed his concern about the state of emergency, while appreciated the outgoing PM’s resignation as symbolic shot in the arm for democracy.
The Secretary, who visited the continent for the first time as Secretary, spoke about the current situation in Ethiopia and the economic and other ties between the two nations and the continent during a joint press conference with his counterpart in Addis Ababa Workneh Gebeyehu (PhD).
He was reminded about the concern that his government announced via its embassy a few weeks ago about the fresh state of emergency a day after the resignation of Hailemariam Desalegn.
“We recognize and share concerns expressed by the government about incidents of violence and loss of life. We do firmly believe the answer is greater freedom for people, not less,” Secretary Tillerson said.
“Given recent events, the United States has expressed our concerns with the government’s decision to impose another state of emergency, because it does put restrictions on fundamental rights like assembly and expression. We also discussed in our exchange the importance of ensuring that security forces remain disciplined in maintaining law and order, preventing violence,” he added.
He argued that his government firmly believes that democratic reform, economic growth, and lasting stability are best addressed through an inclusive political process, rather than through the imposition of restrictions.
He also asked for the public to be patient.
Such kind of statements from the US, which is one of the major allies for this government, is unusual. Other western allies have also expressed their concern about the state of emergency decree that may last six months. Workneh in his latest discussion with the diplomatic community based in Ethiopia has said that the state emergency may not last long. He said that when the new PM is elected the decree could be lifted. The executive council of EPRDF, the ruling front, is expected to meet today and discuss who the party chair and potential upcoming PM would be.
US Secretary of State advocates for more freedom
Russia looks to work with Ethiopia on nuclear power
One of the oldest diplomatic partners of Ethiopia, Russia has come again to discuss assisting with nuclear development and canceling debt.
The official diplomatic relationship, which is mostly positive, has just hit the milestone of 120 years meaning they have been working together since the King Minilik II era.
During the Derg regime, Russia played a very active role in supporting Ethiopia. . Besides military and security support the Soviet government offered technical support for Ethiopian nonmilitary organizations and scholarships for over 32,000 students at USSR higher education facilities.
In the previous regime Moscow was involved in the development of mega projects in Ethiopia like a hydro power plant, irrigation, and mining, including the development of natural gas at Kalub, and manufacturing centers such as a tractor assembly in Adama.
During the Derg era Russia also canceled a huge amount of debt. Later on, about 17 years ago, Russia annulled close to USD 5 billion. In 2005 Russia also canceled an additional USD 1.1 billion.
“We have talked about several issues including bilateral, investment and trade, and regional issues,” Workneh Gebeyehu (PhD), Minister of Foreign Affairs (MoFA) said at the joint press conference with his counterpart Sergey Lavrov of Russia.
He appreciated Russia’s decision to cancel more debt. Over a decade ago the two countries talked about writing off the remaining debt, which is USD 160 million. .
Last year Tedros Adhanom (PhD), the former MoFA chief, told Russian media that the two governments have agreed that these funds will be used in the framework of ‘debts in exchange for development’ for funding projects in Ethiopia with the participation of Russian companies.
Workneh said that the two countries have also agreed to work on nuclear power development.
In the past representatives of Russia’s State Atomic Energy Corporation, Rosatom, held extensive negotiations with their Ethiopian counterparts on joint projects in developing nuclear energy for peaceful purposes including construction of the Ethiopian Centre for nuclear science and technology.
Lavrov said that the two sides have agreed to give an additional boost to the work of an intergovernmental commission for implementing joint projects in a number of domains such as energy including nuclear and hydro power, biological research and direct flights.
Cooperation in high-tech, science and education are other areas that the two countries will work together on, according to the diplomatic chief of Russia.
Lavrov said that Ethiopia has a functioning Russian designed research center that is nearly established as a nuclear technology center.
Hydropower engineering was recognized as one of the most promising areas of cooperation taking into consideration the activities by the Russian company, Inter RAO Export which wants to modernize the Melka Wakena Hydropower Plant, which was initially constructed by USSR in the mid-1980s, and possibly to construct other power generation projects in Ethiopia.
Ethiopian Airlines is also expected to commence a daily scheduled flight to Moscow from Addis Ababa. Experts said that this would be a good move since the trade relationship between the two countries and the private sector activity from the Ethiopian side is growing. “As a single example currently Russia imports Ethiopian flowers so direct flights by Ethiopian Airlines can expand this,” an expert said.
At present a number of Russian companies operate in the country, particularly Gazprom, which leads the search for oil and gas in the North-East of the country in the region of Afar, and is also interested in gold mining.
The countries relationship started from the time of the battle of Adwa between the colonial power, Italy and Ethiopia at that time the Russian Tsar sent a Russian envoy at the request of Minilik II, but the support reached Ethiopia after the end of the war. Some Ethiopian students during the Soviet era still serve in top government positions.
Ethiopia mainly exports flowers and coffee to Russia. The trade relationship between the two nations is not like the past particularly from the Russian side. In 1980s the exports from Russia to Ethiopia was worth USD 300 million, which is now significantly reduced. Now Russian investors are interested in engaging in the technology sector like automotive assembly and agriculture development.
Lavrov latest visit is his third to Ethiopia since he was assigned the Russian chief diplomat position in 2004.
Ethiopia hopes to host World Chamber Congress in 2021
Ethiopia is trying to prove that it has the capacity to organize and host the 2021 World Chamber Congress; according to a statement on Tuesday, March 6, 2018. To assess the country’s ability to host the big event, officials of the International Chamber of Commerce (CCE) visited Addis Ababa and met with several high government officials.
President Mulatu Teshome held talks with CCE Director Anthony Parkes on the preparations and commitments of Ethiopia to organize the congress. The country is currently competing with Kenya, Dubai and Iran to host the event that would attract over 2,000 participants.
“I am here today to hear how the president is supporting the strength of the bid from Addis Ababa for the congress, including the wonderful facilities you have here, the infrastructure and the ease of access to the country which is important as we have delegates from chambers of commerce from over 130 nations,” said Parkes.
Parkes also met with Foreign Minister Workneh Gebeyehu and the pair discussed Ethiopia’s bid to host the international event. The Foreign Minister underlined that Ethiopia is a host to the African Union, the United Nations Economic Commission for Africa and other international organizations which goes to show the great business environment here.
“Ethiopia has a rich experience in hosting international events in the areas of business and investment, with the requisite expertise, the knowledge and the hospitality of the people of Ethiopia, the country is more than ready to host the Congress,” the minister said.
He further underlined the fact that, the Ethiopian Chamber of Commerce and Sectoral Association (ECCSA) as a chief representative of the business community in Ethiopia with more than 300,000 active members and its close partnership with the International Chamber of Commerce (ICC) has the immense potential to host the Congress.
If granted the opportunity the event is expected to help Ethiopia get experience, share technology and show business opportunities for investors.
Djibouti signs port deal with PIL
The Doraleh Container Terminal Management Company (DCTMC), which was formed recently to manage the container terminal in Djibouti, has signed an agreement with one of the biggest container movers in the world, Pacific International Lines (PIL). This will increase DCT’s activity by one third.
DCTMC was created by the government of Djibouti the day they severed ties with DP World, a UAE based port operator, who also owned one third of the share at Doraleh. Now they have come to terms with PIL, a Singapore based shipping company, to increase handling by 300,000 TEU containers per annum.
In its announcement early this week Djibouti Ports and Free Zones Authority (DPFZA), which oversees the country’s port operations, said this would boost their cargo volume at the terminal by 33 percent.
“The port deal is expected to bring an additional 300,000 TEU containers to the terminal per annum,” it added.
The terminal has a capacity of 1.6 million TEUs per year, while its actual performance is 900,000 TEUs.
The authority said that the agreement is the initial move towards the Doraleh Container Terminal (DCT) achieving its potential.
DCT began operating in December 2008 under the management of DP World and two thirds ownership of the government of Djibouti. The authority recently claimed that DCT achieved only 57 percent of its capacity under DP World.
In his interview with Capital, Mohammed Idriss Farah, Ambassador of Djibouti to Ethiopia, said that his country saw through DP world’s strategy, after some thought, and realised that taking shares in Djibouti’s ports enabled them to stifle Djibouti to the benefit of Jebel Ali’s port.
“This port has 1.6 million TEU capacity even though we never went above 900,000 TEU and they were telling partners like PIL that it was impossible to unload in Djibouti as the port was saturated, and that they should go to Jebel Ali,” he said.
“We want to develop our port, we want to go from 3 to 10 million containers and be the main port of Africa, this is Djibouti’s objective, and this is something they do not want,” he claimed.
The ambassador said that in terms of capacity of service with the capability to double in this first phase with the Singapore company PIL, that already signed up for 300,000 containers per year to transit there, DCT will go up to 1.2 million containers and others are also willing to work with the port management.
PIL is considered as the 11th biggest company in container operation is expected reach 9th place in the coming year. In 2016 the company agreed with China Merchant Group to work together for the realization of the Belt and Road Initiative that the Chinese government has launched.
Recently the port management that was responsible for ports in Djibouti except for DCT announced that it reduced port operation tariffs. However, the tariff was not adjusted for DCT.
The Djibouti Ambassador said that since the authority is now directly managing the DCT it would include the tariff adjustment like it did for other ports.
“Of course, because the decision of 50% decrease was not made by DP World but by the Djiboutian government, now a Djiboutian state owned company has taken over there is nothing to worry about on that matter as it is a sovereign decision that will be enforced for all users and clients of the port,” he said.
