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Chinese grant boosts Ethiopia’s untapped bamboo potential

Metasebia Teshome
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Chinese grant boosts Ethiopia’s untapped bamboo potential

Ethiopia has secured 54 million dollars in grant from the Chinese government to build a bamboo training center which could end up being the biggest center in Africa.
Ethiopia covers 60 percent of Africa’s bamboo product and has a huge potential in the sector, but the low investment and financial constraints in the sector are highly attributable to the low level of this resource employment in the country.
“Ethiopia is the primary grower of bamboo in Africa but is still far from the effective and efficient use of these resources. A large untapped bamboo resource base is available that could be used to generate large-scale employment, income, and socio-economic development, in addition to environmental benefits,” said Teshome Tamrat, Senior forest expert at Ethiopian Environment, Forest and Climate Change Commission.
Lack of skill to process the raw material and produce low tech and low cost products in line with the market demand are challenges the sector has been facing.
Building the center is one part of the national strategy to increase the advantage of the country in order for bamboo to take advantage of the available resource, and make Ethiopia the leading high value bamboo producer and supplier in Africa. As Teshome told Capital, the center is now under pre-implementation, which will be started as soon as the commission gets land for construction in Addis Ababa city.
Ethiopia has over 1.47 million hectares of land covered by bamboo, and over 3.5 million hectares of land suitable for bamboo development.
Bamboo resources are concentrated in seven regions of Ethiopia namely: Amhara, Benishangul Gumuz, Gambela, Oromia, Southern Nations Nationalities Peoples, Sidama and Tigray regional states. An estimated 750,000 people depend on bamboo-based economic activities. Furthermore, market studies and property test reports of indigenous bamboo indicate that a huge domestic market (import substitution) for timber substitute, energy, pulp and paper, furniture, and lifestyle exists in addition to the export market which is valued at USD 2.2 billion in 2018.

(Photo: Anteneh Aklilu)

The Government of Ethiopia has accorded a high priority to the bamboo sector. In its 2016 – 2020 Growth and Transformation Plan (GTP II), bamboo has been targeted as a strategic resource for livelihood development and environmental management. The government proclaimed a 10 years strategy and action plan for bamboo sector development (2019 – 30).
To promote bamboo industries by properly implementing the strategy the government of Ethiopia, through FCCC, is collaborating with the International Bamboo and Rattan Organisation (INBAR) an intergovernmental development organisation that promotes environmentally sustainable development using bamboo and rattan at global level to coordinate bamboo development initiatives in the country.
Earlier this week, International Bamboo and Rattan Organisation (INBAR) launched a seminar to create engagement between bamboo producers and financial institutions to manage financial limitations of producers.
“We are working to create stakeholder platforms to raise awareness about the potential of the bamboo sector for investment, trade and development, for initiation of discussions on potential business collaboration among investors, entrepreneurs and monetary institutions,” said INBAR Dutch-Sino Program Manager, Selim Reza (PhD). Bamboo producers, investors, small and medium enterprise and different representatives of financial institutions had attended the seminar.
As part of the third-year green legacy initiative, the commission has planned to cover 20 thousand hectares of land by bamboo this season, over 56 million new bamboo seedlings were planted covering over 25 thousand hectares of land across the country.

Africa’s road to prosperity lies in COVID-19 vaccines

Staff Reporter
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Africa’s road to prosperity lies in COVID-19 vaccines

Africa’s drive to economic prosperity today goes through the Covid 19 vaccines, according to the Executive Secretary of the Economic Commission for Africa (ECA) , Vera Songwe.
Chairing the Africa’s Recovery talk series , Songwe said only 2.3% of Africa’s population of 1.3 billion has been vaccinated, with the Africa CDC targeting that 30% be vaccinated by December 2021. To achieve herd immunity, about 60% to 70% percent of the population must be vaccinated.
Africa has to date secured 400 million doses of the vaccine, but the continent needs 1.6 billion for its people.
According to Dr John Nkengasong, the director of the Africa CDC, health security was both an economic and national security issue.
“Strengthening your health system is not a cost, but is an investment,” said Nkengason. “Africa must place the public health agenda at the centre of both the political and economic dialogue. You do not dig your wells when you are thirsty, but you dig them before you are. You do not develop your health system in the middle of a pandemic, but you do so in preparation for a pandemic.”
He said the Covid 19 pandemic has wrought a lot of damage to the continent’s aspiration and the AfCFTA, arguing without it the continent’s development agenda would have made huge strides.
“Health security will drive Africa’s prosperity,” he said.
Kennedy Odeke, another panelist, said for Africa to achieve herd immunity, there was need to bring on board community leaders into the fight against the pandemic.
“Covid 19 has come in as a way to show us the disparity in our communities, which, if not addressed, will see the pandemic creating more economic difficulty,” Odeke said, adding public demonstrations in Lagos and Johannesburg were an indication of the disparity prevalent in society.
“Let us go down to our community leaders, our religious leaders, to the chiefs, the elders, and put them in the centre of our agenda. Otherwise, we will bring the vaccines, and no-one will take it. Community leaders must feel that they are part of the government and of the future.”
Songwe said one way of driving prosperity on the continent was by sending a message that was not confusing to the population, eg holding political rallies in the middle of a pandemic resulting in people questioning the importance of taking the vaccine anyway; and building trust.
“The fact that Africa has been able to come together to deliver its own vaccines, not free vaccines, to the continent is clearly a way of driving prosperity on the continent,” she said.
“paying for what you need is a guarantee that you’ll get it. If you wait for donations, the uncertainty around vaccines increases, and conversely decreases our drive for prosperity.”
She said the pandemic had taught Africa that if she takes her future into her own hands the continent can actually define it.
“Good policies and good politics should drive Africa’s path towards economic prosperity,” she said.
The virtual discussion was organised and hosted by the Economic Commission for Africa as the second edition of its monthly Africa’s Response talk series titled ‘It’s your turn!’.

Eight in 10 African countries to miss crucial COVID-19 vaccination goal

Staff Reporter
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Eight in 10 African countries to miss crucial COVID-19 vaccination goal

Nine African countries, including South Africa, Morocco and Tunisia, have already reached the global target set in May by the World Health Assembly, the world’s highest health policy-setting body. At the current pace, three more African countries are set to meet the target. Two more could meet it if they speed up vaccinations.
“With less than a month to go, this looming goal must concentrate minds in Africa and globally. Vaccine hoarding has held Africa back and we urgently need more vaccines, but as more doses arrive, African countries must zero in and drive forward precise plans to rapidly vaccinate the millions of people that still face a grave threat from COVID-19,” said Dr Matshidiso Moeti, WHO Regional Director for Africa.
Almost 21 million COVID-19 vaccines arrived in Africa via the COVAX Facility in August, an amount equal to the previous four months combined. With more vaccines expected from COVAX and the African Union by the end of September, we could see enough doses delivered to meet the 10% target.
While many African countries have sped up COVID-19 vaccinations as vaccine shipments ramped up in August, 26 countries have used less than half of their COVID-19 vaccines.
Over 143 million doses have been received in Africa in total and 39 million people around just 3% of Africa’s population are fully vaccinated. In comparison, 52% of people are fully vaccinated in the United States of America and 57% in the European Union.
“The inequity is deeply disturbing. Just 2% of the over five billion doses given globally have been administered in Africa. Yet recent rises in vaccine shipments and commitments shows that a fairer, more just global distribution of vaccines looks possible,” said Dr Moeti.
Countries must continue to address operational gaps and continually improve, adapt and refine their COVID-19 vaccination campaigns. Of the 30 countries that have submitted data to WHO on operational readiness, one in two have not conducted intra-action reviews, which are key to assessing and fine-tuning progress. One in three countries have not updated their National Vaccine Deployment Plans, which instruct all COVID-19 vaccination actions in each country.
WHO is providing tailored policy advice and technical guidance and support to African countries to help enhance their logistics, planning and monitoring capacities. WHO is also working to share valuable lessons and experiences between countries.
COVID-19 cases are declining slightly in Africa but remain stubbornly high. A rising number of new cases in Central, East and West Africa pushed case numbers up to nearly 215 000 in the week ending on 29 August. Twenty-five countries over 45% of African countries are reporting high or fast-rising case numbers. Over 5500 deaths were reported in the week ending on 29 August.
“Although Africa’s third wave peaked in July, the decline in new cases is at a glacial pace far slower than in previous waves. The pandemic is still raging in Africa and we must not let our guard down. Every hour 26 Africans die of COVID-19.”
The highly transmissible Delta variant has been found in 31 African countries. The Alpha variant has been detected in 44 countries and the Beta variant in 39.
The C.1.2 variant has been identified in 114 cases in South Africa. Single cases have been found in four other African countries, and very low case numbers have been reported internationally. While first reported to WHO in July, the prevalence of this new variant remains very low. To be identified as a variant of concern there must be evidence of an impact on transmissibility, severity or immunity. This is not the case for the C.1.2 variant, yet more data is required.
“We are closely monitoring the spread and evolution of all reported variants of COVID-19, including C.1.2. Mask wearing, physical distancing and regular hand washing will help keep you safe from all variants,” said Dr Moeti.

Gov’t stringency leads to external debt contraction in succession

Muluken Yewondwossen
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Gov’t stringency leads to external debt contraction in succession

Outflow negates total disbursements

By Muluken Yewondwossen

The state owned enterprises (SOEs) external debt contracts for the second consecutive year following the government firmness on non-concessional loans. For the 2020/21 fiscal year, the net external debt resource flows were recorded as negative. Compared to the preceding five years, the total amount of disbursement from external sources was much lower.

The past fiscal year, Public Sector Debt Statistical Bulletin that was published by Debt Management Directorate, Ministry of Finance (MoF) indicated that the external debt stock for SOEs that include enterprises, which access finance without government guarantee has dropped to USD 10.05 billion in the year. It has also reduced in terms of the share of the total outstanding debt that includes domestic debts by 1.6 percentage compared with the preceding year.

The MoF data for the year that ended on June 30 indicated that the SOEs outstanding external loan has stood at USD 10.05 billion that was USD 10.86 billion in June 2020 and USD 11.1 billion in June 2019.

Similarly, from the total outstanding debt the SOEs debt stock has reduced to 18.06 percent that was 19.6 percent and 20.6 percent in the past two years respectively.

Of the total external debt the central government owes 66 percent, while SOEs with and without government guarantees owe the remaining 34 percent.

The MoF annual bulletin stated that the entire external public debt disbursement over the last twelve months (July 1, 2020 – June 30, 2021) was USD 1.4 billion, with around 72 percent of it going to central government projects from various creditors, “the majority of which came from IDA. When compared to the preceding five years, the total amount of disbursement from external sources was much lower.”

During the last year’s new external loan agreements signed by central government with IDA/the World Bank, government of Italy and Dansk SK. Bank amounted to USD 1.4 billion, and as per the non-concessional borrowing limit there was no non-concessional borrowing except Ethiopian Airlines, which signed agreements with its commercial creditors, amounted to USD 363.41 million.

Total external public sector debt service (Principal plus interest and charges) during the last twelve months was USD 1.84 billion of which USD 474 million is interest. Out the total public sector external debt service USD 1.54 billion was made by SOEs.

“The net external debt resource flows are negative over the period, i.e. in 2020/21, implying that the quantity of disbursement from external sources (inflow) is less than the total external debt service payments to creditors (outflow). This is due to lesser external disbursement over the period compared to the previous four years,” MoF explained. The inflow was USD 1.4 billion.

As of June 30, 2021, the total nominal public sector debt (external and domestic) in percent of GDP was about 51 percent, nominal external debt in percent of GDP  was around 27 percent, present value of external debt in percent of GDP was around 19 percent, and nominal domestic debt in percent of GDP was around 24 percent.

The total public sector debt stock including domestic as of June 30, 2021, was USD 55.6 billion, compared to USD 55.3 billion as of June 30, 2020. “Total Public Debt in USD shows a minimal change: due to a decrease in Domestic Debt in USD due to a comparatively higher rate of depreciation of birr against USD in 2020/21, while in terms of birr the total domestic debt has increased by 221,506 billion birr.

In terms of share external debt makes up around 53 percent of overall government debt, with domestic debt accounting for the remaining 47 percent.

The central government owes USD 33.2 billion or 60 percent of the total public sector debt outstanding for both external plus domestic, while SOEs owe USD 22.4 billion. Over the last year, the central government’s portion of total public debt stock has climbed by 9 percent, while SOEs’ share has declined by 10 percent, “this can be explained in part by SOE’s zero non-concessional borrowing limit from external creditors, as well as SOE’s lower borrowing from domestic sources and less disbursement from already committed old SOE external loans.”

The total public sector external debt was USD 29.5 billion as of June 30, 2021, compared to USD 29 billion of last year, “The increment in external total public debt is about USD 643 million, or about 2 percent over last year’s stock; the majority of this increment in the stock of debt can be explained by USD exchange rate variation which is about USD 601 million, a relatively higher depreciation of the US dollar, particularly as compared to the SDR and euro.”

“Because Ethiopia is a G20 DSSI eligible country that has signed a Memorandum of Understanding with the Paris Club Secretariat on DSSI related to Paris Club Countries and Non-Paris Club Countries, we are currently not making any external debt service payments for our Bilateral Creditors of Central Governments as per the G20 DSSI,” the MoF bulletin explained and to do that during the period of May 1 ,2020 – June 30 ,2021 as an eligible country of DSSI initiative, has suspended the external debt service payment of central government to its bilateral creditors amounted to USD 220.0 million.

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