The Monthly Publication of The Ethiopian Embassy in London 

ETHIOPIAN  NEWS

Volume 4 Number 11 December 2005/January 2006 On-line version   

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PM Meles reports steady economic growth

Prime Minister Meles Zenawi yesterday reported to the House of Peoples’ Representatives that Ethiopia’s economy continued to grow - demonstrating that the Government’s development strategy was achieving significant results. Presenting the Government’s mid-term performance report on Thursday 2^nd February, Meles also spoke about the situation regarding the border with Eritrea and the measures underway to ensure the consolidation of democracy within Ethiopia.

The Prime Minister reported that there had been a 15.13% growth in agricultural production, compared to a 14.97% for the previous year. Demand for Ethiopian crops on the world market had also registered an increase with oil seeds in particular showing a 15.7% growth, and sesame alone registering a 40.2% increase. In the first six months of last year, Ethiopia exported US $292.6 million worth products; during the same period this year, the figure was $389.5 million worth, which amounted to a 33% increase. There was a 44.7% growth in investment, with licences issued in the last six months to projects worth 14.6 billion Birr (8.73 billion Birr from foreign investment), up on the 10.09 billion Birr for the same period in the previous year.  

He went on to report that, while there had been a decline in coffee exports (of 2.73% on last year’s figures), exports of oil seeds and grain had increased, demonstrating the healthy export performance of Ethiopia’s diverse range of crops. He noted that a drop in prices for some crops had not adversely affected farmers and producers because of the increased level of production over the last three years. However, a price increase in other goods which affects low-income urban dwellers, had led to the Government restricting the type and volume of exportable crops, in order to stabilise prices.

Prime Minister Meles also discussed the various measures taken to ensure durable peace and stability, touching on the subject of the Ethio-Eritrea border.

“Our strategy underlines our readiness at any time to resolve the crisis through dialogue and negotiation,” he said, before praising the United States for taking “the initiative to resolve this crisis peacefully” by recently sending a delegation to the Horn of Africa.

“Although Ethiopia had facilitated the visit to the border of and held extensive consultations with the delegation” he continued, “it was unable to travel to Eritrea and consult with government officials as it has originally envisaged.”

The Prime Minister noted that the Government’s stance that the “implementation of the boundary decision should be achieved through dialogue and diplomatic means is consistent with international law and it has also been used in practice to resolve similar problem between countries” mentioning Cameroon and Nigeria as an example.

On the arrest of elements of the Coalition for Unity and Democracy (CUD) party leadership in Ethiopia, the Prime Minister made it clear that “interfering in the judicial process for the release of hard-liners is out of the question” and reminded the MPs that the government had exerted great effort in expanding the avenues through which they could have advanced their objectives peacefully. He re-iterated that the Government will continue to discharge its responsibility to ensure respect for the rule of law and safeguard the constitutional order, “with the participation of the people and in a way that would ensure durable peace.”

Despite efforts to encourage elected representatives in Addis Ababa to join the city council and take over the administration of the city, hard-liners continue to refuse to accept their responsibilities under the Constitution, forcing the Government to recommend that another election is held. He also noted that consultations would continue with those opposition parties that were willing to work together, including the Oromo Federalist Democratic Party, the United Ethiopian Democratic Forces and those members of the CUD that had taken up their seats and condemned the use of violence.

The Prime Minister also mentioned the reforms underway at the National Electoral Board, taking into account the suggested improvements following the May elections, and discussed the status of the proposed press law. He reported that experts from Britain, Canada, Germany and India were advising on preliminary studies, which, once completed, would help form the basis of a draft Bill. This would then be put before the other parties in Parliament for their input, and also before stakeholder forums, to enhance the democratic nature of the process, as the bill would effect others and not just political parties. When complete, the bill will then be put before the House of Peoples Representatives for a vote. The full version of the Prime Minister’s report is available on the Embassy website.

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International Commission finds Eritrea liable for the 1998-2000 war

The Eritrea-Ethiopia Claims Commission has ruled that Eritrea triggered the 1998 - 2000 war against Ethiopia. The Commission, based in The Hague in the Netherlands, issued its fourth set of Awards in the first phase of its proceedings on Monday 19^th December 2005. The Awards address several of Ethiopia’s and Eritrea’s claims, and concluded that Eritrea was liable for starting the two-year war with Ethiopia.

"Given the absence of an armed attack against Eritrea, the attack that began on May 12 cannot be justified as lawful self-defense under the UN Charter,” said the Commission.

In finding Eritrea responsible for the outbreak of hostilities between the two countries in 1998, the Commission stated that Eritrea had violated international law.

"The evidence showed that, at about 5:30 a.m. on May 12, 1998, Eritrean armed forces, comprised of at least two brigades of regular soldiers, supported by tanks and artillery, attacked the town of Badme and several other border areas in Ethiopia's Tahtay Adiabo Woreda, as well as at least two places in its neighboring Laelay Adiabo Woreda," said the Commission.

The Commission went on to say that Eritrea is liable to compensate Ethiopia for the damages caused by that violation of international law.

According to the rulings, Eritrea violated international humanitarian law during the course of the conflict with frequent acts of murder, beatings, and abductions of civilians and the destruction and looting of civilian property on a widespread basis. Eritrea was also found liable for violating official Ethiopian diplomatic correspondence and interfering with the functioning of the mission. In contrast, the Commission’s findings against Ethiopia were generally limited to destruction and looting that occurred in a few towns or villages during the counter-offensive in May 2000. All but one of the aerial bombardment claims brought by Eritrea were dismissed, apart from the attempted bombing of the Harsile water reservoir near Assab, but with no resulting damage, Ethiopia was not found liable for compensation.

Following Ethiopia’s claim that Eritrea illegally confiscated property in Eritrean ports in May 1998 which belonged to the Ethiopian government, nationals and organisations – which included 135,000 tonnes of dry cargo, including 81,000 tonnes of aid shipments and 1,400 new vehicles, as well as 33 million litres of fuel – both parties were asked to transfer any stranded property and to account for funds received for property it sold or otherwise disposed of.

The full text of the Eritrea Ethiopia Claims Commission Jus Ad Bellum ruling can be found on the Embassy website –

www.ethioembassy.org.uk/Archive/EritreaEthiopiaClaimsCommissionRuling19thDecember2005.htm

UK reaffirms commitment to people of Ethiopia

The Rt. Hon Hilary Benn MP, the UK Secretary of State for International Development, has reaffirmed the pledge by the British Government to help the people of Ethiopia in their fight against poverty. Mr Benn, who was speaking at a press conference in the British Embassy after his meeting with Prime Minister Meles Zenawi in Addis Ababa on Wednesday 18^th January, said the UK “is fully committed to supporting the people of Ethiopia in their fight against poverty...” and was “...looking with other donors at how we can provide support to the poorest in other ways.”

“I saw for myself this morning how successful the Productive Safety Net Programmes is, including the help it is giving in drought-affected areas,” he continued, referring to his visit to Arba Minch in southern Ethiopia, where he was able to see the impact the nationwide safety-net programme is having on improving the lives of nearly 5 million people.

“We are looking with government and other donors to develop a new Protection of Basic Services Grant to deliver education, health and water to the poor. This would mean tighter financial reporting and stronger local accountability so that the funds reach the poorest people.”

It is thought that the new Protection of Basic Services Grant will work through government channels, because only the State has the capacity to reach all parts of the country.

During his visit, Mr Benn also held separate meetings with Prime Minister Meles, members of the opposition and representatives of international NGOs and aid donors.

When asked about the recent events in the country, Mr Benn repeated his belief that the only way forward is “through inclusive political dialogue, and the continuation of the democratisation process which we are ready to support.”

The safety-net programme, which has the backing of DFID and other multinational donors, is the mechanism developed by the Ethiopian government to encourage the move from food aid to more development-orientated investment. It aims to reduce vulnerability and attain food security for approximately five million food insecure people by 2009 through replacing emergency responses to chronic food insecurity with a multi-annual, predicable resource. By providing cash transfers rather than food, the programme will enable smallholders to increase consumption and investment levels and stimulate the further development of rural markets.

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Ethiopia and Clinton Foundation sign HIV/AIDS agreement

Ethiopia’s national plan to combat HIV/AIDS will be scaled up following the signing of an agreement between the government and the Clinton Foundation. Under the terms of the agreement signed on 17^th January 2006, the Clinton Foundation will provide technical expertise and assistance to support the expansion of Ethiopia’s national care and treatment programme.

As part of the Pediatric Initiative, which was launched in 2005, the Foundation will accelerate care and treatment for Ethiopian children living with HIV/AIDS by providing a donation of pediatric antiretroviral (ARV) medicines for over 1,000 children for one year and directly supporting pediatric programmes. The Foundation will also support work in rural areas of the country, where access to treatment is limited, and will assist the government with a hospital management initiative, support to strengthen health care management at all levels of government, laboratory planning and the expansion of lab services, and supply chain logistics.

“The support from the Clinton Foundation is coming at a time when we are scaling up our fight against HIV/AIDS very aggressively in all three fronts: prevention, treatment and care and support,” said Dr. Tedros Adhanom, the Minister of Health of Ethiopia.

“The agreement with the Clinton Foundation is also unique in that it includes capacity building of the health system which is very crucial in sustaining the fight as indicated in our strategic plan. I would like to use this opportunity to thank President Clinton for his commitment to fight HIV/AIDS.”

“I’m extremely pleased that my Foundation has expanded its partnership with the government of Ethiopia,” said former US President Bill Clinton about the agreement. “Ethiopia has made tremendous strides to fight the HIV/AIDS pandemic, and working together we can ensure that the benefits of low-cost antiretroviral medicines reach even more of the people who desperately need them.”

Since 2002, the Clinton Foundation HIV/AIDS Initiative has been assisting countries in implementing large-scale, integrated care, treatment and prevention programmes. Individual governments take the lead and the Foundation provides technical assistance, mobilizes human and financial resources, and facilitates the sharing of best practices across projects.

Ethiopia has been a member of the Clinton Foundation procurement consortium since August 2004. The procurement consortium comprises over 50 countries in the developing world with access to the Clinton Foundation’s reduced prices for anti-retroviral drugs and diagnostic testing supplies

The Ethiopian government has responded strongly to the national AIDS crisis, declaring HIV a national emergency in 2001. Since then, the government has introduced a reduced-cost ARV programme and expanded their treatment plan with an initiative to provide ARVs to all infected Ethiopians. More than 22,000 patients are currently accessing essential antiretroviral drugs free of charge, with a national target of 100,000 patients on treatment by the end of 2006.

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IMF extends 100% Debt Relief to Ethiopia

 

The International Monetary Fund (IMF) has approved 100% debt relief for Ethiopia. In a statement issued on 22^nd December by David Andrews, the IMF Mission Chief for Ethiopia, it was announced that the IMF Board has approved the move under the Multilateral Debt Relief Initiative. All outstanding debts incurred by Ethiopia to the IMF before 1^st January 2005 will be cancelled, which amounts to US $161 million – or $114 million excluding the remaining assistance under the Heavily Indebted Poor Countries Initiative.

"Ethiopia has qualified for IMF debt relief because of its overall satisfactory recent macroeconomic performance, progress in poverty reduction, and sound public expenditure management,” said Mr Andrews.

“In particular, Ethiopia has recorded two years of high economic growth, and rapidly expanding exports, while containing inflationary pressures. Commitment to adjust policies in response to emerging macroeconomic pressures also provides assurance that macroeconomic stability will be maintained. In addition, efforts to strengthen cash management systems and improve internal control and audit are underway. Performance in these areas provides assurance that resources made available under the Multilateral Debt Relief Initiative will be used effectively.”

"The IMF looks forward to working with Ethiopia to help it develop a strong and stable economy and to make sustained progress toward the MDGs," he added.

The relief is scheduled to become available in January, following receipt of the remaining consents of the contributors to the PRGF Trust Subsidy Account.

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NBI launches new programme to develop water resources

The Nile Basin Initiative (NBI) has announced that it has designed a programme of investment which is aimed at developing the water resources of the Nile basin in a fair and sustainable way. The Eastern Nile Subsidiary Action (ENSA) Programme involves Ethiopia, Sudan and Egypt and will focus on the development of irrigation, drainage and hydropower, as well as the sustainable management of watersheds, lakes and linked wetland systems and quality and pollution control. 

The programme, which was announced on 25^th January, also seeks to improve the efficiency of water use and to promote integrated strategies for the management of water resources between all three countries.

The first investment package under the new ENSA programme has been earmarked for the Integrated Development of the Eastern Nile project (IDEN) which has been developed by Ethiopia, Sudan and Egypt, and will incorporate complementary schemes such as the Eastern Nile Planning Model Project, the Baro-Akobo Multi-purpose Water Resources Development Project, the Ethiopia-Sudan Transmission Interconnection Project and the Eastern Nile Power Trade Investment Project.

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Meles meets with UK Minister for Africa

Ethiopian Prime Minister Meles Zenawi met with the UK Minister for Africa at the Foreign and Commonwealth Office, Lord Triesman, who visited Addis Ababa on Saturday 17^th December 2005.

Prime Minister Meles and Lord Triesman, who was acting on behalf of the EU Presidency, discussed a range of issues during the meeting, including the internal political situation in the country, human rights and the situation on the Ethio-Eritrean border, as well as relations between the United Kingdom and Ethiopia.

During his stay, Lord Triesman also met with representatives from the African Union, United Nations officials and Ethiopian opposition parties.

At a press conference held at the British Ambassador’s Residence in Addis Ababa, at the end of his visit, Lord Triesman said the UK wants to help the Ethiopian people achieve a better quality of life and to benefit from democracy, peace and jobs.

“This is a difficult time for all Ethiopians but Ethiopians can put this period behind them,” he said, before adding that all parties should commit themselves to resolving differences through inclusive dialogue, respecting the rule of law and the constitution. He said there is a need for a spirit of national recognition, magnanimity and political consensus to advance the cause of democracy. 

On the subject of the Ethio-Eritrea border, Lord Triesman said that the United Kingdom will strive, through the European Union and the United Nations, to push the Eritrean government to open its door for discussion.

"We will continue to push the Eritrean government to fully respect all resolutions passed by the UN Security Council including the resolution urging it to fully readmit the UNMEE forces," Lord Triesman said.

He also welcomed Ethiopia’s recent commitment to return to December 2004 levels of deployment and the statement by Prime Minister Meles Zenawi that Ethiopia wants peace and normal relations with its neighbour.

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Meles meets Assistant US Secretary of State

Prime Minister Meles Zenawi held talks with United States Assistant Secretary of State, Dr Jendayi Frazer during her recent visit to Ethiopia. During their meeting on 22^nd January, they discussed the efforts underway to enhance democracy and the ways in which the US could enhance its support to Ethiopia. The main focus of the meeting was the Ethio-Eritrea border and the practical application of the UN Security Council Resolution 1640, which was adopted on 23^rd November 2005.

Frazer led the high-level US delegation to the Horn of Africa, which was supposed to visit both Eritrea and Ethiopia, as part of a new initiative to break the dead-lock over the border dispute. However, the trip to Eritrea was cancelled when the government refused to facilitate the trip.

Dr Frazer spent four days in Ethiopia, where she visited the contested border region, before travelling on to the African Union summit in Khartoum, Sudan.

Meanwhile, in related news, Vicky Huddleston, Charge d’Affaires at the US Embassy in Ethiopia has said that the US would not follow other donors in withholding aid.

"Ethiopia is the only country in the Horn moving towards democracy and development," the acting ambassador in Addis Ababa, told reporters. “It would be unacceptable to even consider reducing aid. The United States considers Ethiopia, the Horn of Africa’s top military power, a key counter-terrorism ally in the area.”

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GondarLink expands to become ‘Link Ethiopia’

GondarLink, which creates and assists with the running of school links between the UK and Ethiopia, has been renamed ‘Link Ethiopia’, to reflect its widened interests as it marks its tenth anniversary. The organisation started as a single friendship between an English secondary school in Buckinghamshire and a large comprehensive in the north of Ethiopia, but has expanded to cover the Gondar region. The school links allow children to experience something of a distant culture through letter-writing, email, assistance with resource provision, sponsorship and visits to Ethiopia.

With support from the British Council in Addis Ababa, the Ethiopian Embassy in London and elsewhere, GondarLink has been encouraged to expand its area of interest in the country, to help schools in other regions as well. Over the next six months Link Ethiopia will be seeking regular and reliable funding to ensure its activities can continue, and would like to hear from anyone who might be interested in getting their funding underway.

Also, Link Ethiopia needs to find two secondary schools in the UK who might wish to consider an immediate link, with two Gondar schools waiting enthusiastically for this to happen. For more information, please visit their website - http://www.gondarlink.org.uk/

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Ethiopia receives grant for water projects

Ethiopia is to receive a US $62 million grant from the African Development Fund (ADF) – the concessionary lending facility of the African Development Bank – to co-finance its rural water supply and sanitation programme. The Board of the ADF approved the grant on 22^nd December.

The grant will be used to provide new and renovated water supply facilities, build latrines in schools, health centres and settlements, increase capacity in water supply and raise awareness of sanitation management, operations and maintenance, as well as support federal and regional institutions responsible for water supply and sanitation.

Since 1999 the government has formulated a series of water initiatives, including a National Water Supply and Sanitation Programme (NWSSP), which seeks to increase national coverage water supply coverage to 62% and sanitation services to 54% by 2015. The ADF grant will co-finance a short-term programme – for the 2005 to 2008 period – to improve access to rural water supply and sanitation services, which are currently available to 24% and 8% of Ethiopia’s rural population respectively.

The ADB last year launched a Rural Water and Sanitation Initiative that aims to improve drinking water and sanitation in rural regions across the continent. Ethiopia is among the five countries selected for the initial implementation of this scheme.

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Ethio-China trade grows as relations continue to strengthen

Trade between China and Ethiopia rose 68% to more than US $300 million in 2005, according to the Chinese Ministry of Commerce. The figures were released following trade talks in Beijing on 10^th January between Ethiopian Minister of Finance and Economic Development, Sufian Ahmed, and the Chinese Vice-Minister of Commerce, Wei Jianguo.

After the meeting, the two sides signed an agreement establishing the framework for furthering bilateral economic cooperation. Vice Minister Jianguo said China attached “great importance to economic and trade relations with Ethiopia” and expressed his belief that the countries should enhance their cooperation in many areas.

The volume of trade between China and Ethiopia has been steadily increasing over the last few years - by the end of 2004 it had exceeded $200 million for the first time.

China exports light industry products, machinery, chemicals, medical products, building materials and textiles, imports natural gum, coffee, hides, skins and oil seeds like sesame, which has been described as being of the best quality in the world by the Chinese Warka Import and Exports company, who announced plans to purchase more than 200,000 quintals of sesame seeds produced in Tigray.

In an interview in March 2004, Chinese Ambassador to Ethiopia Lin Lin described why the investment climate of Ethiopia appealed to Chinese investors: “with a stable political climate, a conducive macro-economic policy, a steady exchange rate and a huge local market of about 70 million people, the investment climate of Ethiopia proves favourable to Chinese entrepreneurs,” he said.

The finance talks in Beijing took place six days before a Chinese cultural week was launched in Addis Ababa, celebrating the growing diplomatic relations between the two countries which began in 1970.

The event, which was organised by Ethiopia’s Ministry of Culture and Tourism and the Chinese Embassy in Ethiopia, was officially launched at the National Theatre on 16^th January and was addressed by the Chinese Ambassador to Ethiopia Lin Lin and Culture and Tourism Minister Mohammad Ahmed Ga’as. Also in attendance were envoys from other countries, as well as local officials and residents.

The week-long celebrations were composed of two parts – the Dynamic Beijing photo exhibition, featuring more than 90 pictures of life in China’s capital city – and the Wiefang Kite exhibition showing some 100 kites of various styles and craftmanship made in the Shandong Province of east China.

At the launch Ambassador Lin said that “greater success would be achieved in the cooperative relations between the two countries with the joint efforts of the two governments and peoples.”

“Culture and arts always serve as the bridge of friendship and understanding among the peoples of different nations. Both China and Ethiopia are countries with long history and splendid culture,'' he said.

State Minister Mohammad expressed his appreciation of Chinese culture and said the two countries should learn more about their histories and cultures to develop their already good relations further.

“Cultural exchanges between our two countries are of immense significance in consolidating relations of the peoples and governments of the two countries which share similar ancient civilization, history and culture,” he said.

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Emirates to fly to Addis Ababa from March

A new Dubai to Addis Ababa service will begin on 27^th March 2006, when international airline Emirates adds the Ethiopian capital to its lists of destinations. The airline will initially operate three flights a week to Addis, which will be increased to daily operations from 1^st December 2006. 

Emirates will operate its Airbus A330-200 aircraft, with a capacity of 12, 42 and 183 seats in First, Business and Economy classes respectively, and a cargo capacity of 17 tonnes.

Emirates flight EK 723 will take off from Dubai International Airport every Monday, Wednesday and Friday at 08:25 and arrive in Addis Ababa at 11:30am local time.

Return flight EK 724 will depart Addis Ababa on Mondays, Wednesdays and Fridays at 19:35 and arrive in Dubai at 00:45 the following day

The new service was announced on 29^th January 2006.

Sheikh Ahmed bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group, said: “I am pleased to announce yet another destination on Emirates’ rapidly expanding network. Trade between Dubai and East Africa, a long-standing trade partner of the UAE, has registered a steady growth over the last few years. Several countries in the East African region have been increasingly turning to the UAE for procurement of their consumer and capital goods. I am confident that the Emirates service between Dubai and Addis Ababa will add further momentum to this trade process.”

Sheikh Ahmed noted: “Emirates’ network in the Middle East, which comprises 13 destinations served by 140 weekly flights, can be leveraged by Ethiopia’s trading community to boost its business prospects.”

Ethiopia also shares strong trading links with China and other Far East countries. Emirates will link Ethiopia to 11 Far East destinations, with current services running to Shanghai and Hong Kong and a soon-to-be-launched service to Beijing.

The new service will begin almost a year after Royal Dutch Airlines, KLM began its twice weekly service to Addis Ababa, following the development of closer relations between the Netherlands and Ethiopia.

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Foreign Investment Increased in 2005

The Ethiopian Investment Agency (EIA) has announced that the number of foreign investment projects increased in 2005, with more than 19.5 billion Birr (approx £1.3 billion) invested in various ventures. Investment permits were given to 672 foreign investment projects over the course of the year, up on the 500 foreign investment licences granted in 2004, which brought in 8.6 billion Birr.

A majority of the new licences were granted for manufacturing and agricultural projects, with licences also going to new schemes in the construction, education and health sectors.

It is estimated that the new investment will create almost 60,000 permanent job opportunities, and more than 75,000 casual work positions.

The EIA went on to say that recent consultations between investors and senior government officials, including the Prime Minister, were a part of efforts to provide a more efficient and more business-friendly service for investors in Ethiopia.

The EIA attributed the increase to Ethiopia’s untapped natural resources, the availability of a relatively cheap labour force, and the government’s attractive investment incentives, which hold appeal to major investors in the country.

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ETC mobile expansion

The Ethiopian Telecommunications Corporation (ETC) is expecting to sell more than 0.92 billion Birr’s worth of pre-pay mobile top-up cards this year. The Corporation has procured more than 20 million phone cards, which provide customers with a maximum of thirty days service and range in value from 25 to 300 Birr. Last year some 411,000 people used pre-pay and contract mobile telephone services following the successful introduction of 500,000 new lines as part of their ongoing expansion project. The ETC is currently working on mobile telecommunication expansion projects to accommodate 2.4 million new mobile phone lines, of which 1.5 million lines are planned to be running by the end of the current financial year.

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Ethiopian economy experienced accelerated growth

The Ethiopian economy has experienced accelerated development over the few years, according to the Country Director of the World Bank to Ethiopia and the Sudan, Ishac Diwan. Mr Diwan, who was speaking to the Ethiopia Today bi-monthly magazine, went on to describe the overall economic performance of the country over the past ten years as very good, with growth in the past two years at about 10%.

Mr Diwan also talked about work underway in the country, close to half of which assists the development of infrastructure, such as roads, energy and water supply. Further support is provided to various capacity building efforts, such as schemes to improve the financial management skills of the private sector, which include the introduction of new products such as mortgages, insurance and rural credit to improve the system of moving money and funds around the country, with further support to help businesses to innovate, improve management skills and capacity to export.

There are efforts to strengthen civil society and local associations, such as the involvement of citizens in woreda budgetary discussions, and the forming of parent-teacher groups, and improvements to public sector capacity, with assistance for decentralisation, tax administration, the judiciary and programmes to strengthen human resources management in the government.

He also spoke about the preparations for Ethiopia’s next five-year poverty reduction strategy, which will include a number of new elements to be discussed at all levels of the country, at various workshops and conferences, as well as in Parliament. In recognition of the diversity of Ethiopia, there will be different strategies for different regions, with all attempting to foster closer ties between urban and rural populations.

Finally, Diwan also spoke of Ethiopia’s enormous hydro-energy potential, with development activities around Lake Tana going from Gondar to Bahir Dar and then down to the Tana Beles area seeking to provide more efficient irrigation allowing farmers benefit from improved agricultural production.

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Ethiopia’s budding potential for floriculturalists

Karuturi Networks is one of a number of hi-tech Indian floriculturalists which has recently announced it is setting up operations in Ethiopia. The Indian company has set up a 50-hectare unit at Holeta, near Addis Ababa and is in the process of adding a further 50 hectares. Other companies including Pushpam Florabase Pvt Ltd are also in the process of setting up their operations in Ethiopia.

Karuturi recently won a major order with the UK supermarket chain Morrisons and will be using its Ethiopian operations to service it.

According to K.S. Ramakrishna, Managing Director of Karuturi Networks, Ethiopia’s appeal lies in its proximity to consuming markets such as Europe and West Asia, its ideal climate conditions all year round, the improved investment code in the country, the accessibility to bank loans and the availability of land.

“Located in the equatorial belt, Ethiopia has an ideal climatic condition that helps in producing premium grade roses. The Ethiopian Government offers large tracts of land for floriculture companies on a perpetual long-lease at very attractive rentals,” he said.

“Roses produced in Ethiopia are of top quality and command a significant premium compared to the Indian roses.”

"Indian growers expect to reap the low freight cost advantage by operating from Ethiopia," said Manjunath Reddy, CEO of Pushpam Florabase, which is setting up a 50-hectare unit in the country.

"Freight costs, which account for more then half of floriculture earnings, are 50-60% lower from Ethiopia to Europe than the costs from India," he added.

Annual flower exports from Ethiopia currently stand at more than $20 million from existing investment projects and are expected to reach $100 million by 2007. More projects - with a further 100 investors from the Netherlands, Germany, India and Israel - have acquired the use of 450 hectares to set up farms, and should generate an estimate extra $300 million a year by 2007.

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Ethiopia signs up for India tele-education project

Ethiopia and India have signed a three-year agreement to establish tele-education and tele-medicine centres in Addis Ababa University and the Black Lion teaching hospital. The programme seeks to link Africa to India’s educational and medical knowledge via internet and satellite.

Ethiopia is the first country to sign up to the programme, as it has the necessary infrastructure and the government has expressed its eagerness for the project’s early implementation. The cost of setting up the project - some US $2.1 million - will be fully met by the Indian government.

The university and the Black Lion hospital will be the focal-points for tele-education and for tele-medicine respectively, and will be connected to centres in Adama [Nazeret] University and Adama Medical College initially, with outlets in other areas added later.

Pan-African e-Network Project will be connected by a satellite/fibre-optic network, with one satellite hub Earth Station based in one of the designated countries linked to VSATs (Very Small Aperture Terminal) for tele-education, tele-medicine and VVIP connectivity in every country. The total cost of connecting all African countries will be an estimated US $63.7 million and will be entirely funded by the government of India. At the request of African countries, India has agreed to monitor the project for five years, after which is will be handed over to the African Union.

The agreement was signed by Director of the Ethiopian Information Communication Technology Development Agency, Debre-Tsion Gebremichael and Project director of the Telecommunications Consultants India Limited, Rattan Singh, on 13^th January.

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Trade Ministry plans to increase leather export revenue

Ethiopia’s Ministry of Trade and Industry is working towards increasing the revenue generated by the export of Ethiopian made leather shoes to more than $300 million within the next five years. The Head of the Leather Industry Development team at the Ministry, Yitbarek Fantahum, announced the ambitious plans which include the construction of 74 factories with an outlay of US $6.68 million, to produce an estimated 20 million pairs of shoes which could earn an $177 million from overseas sales and 133 million Birr from the domestic market.

Speaking to journalists on 6^th January, Yitbarek said the Ministry’s five-year strategic plan would make the country a competitive supplier of leather products to the world market and will provide the support necessary to establish the factories. The Ministry also plans to improve the quality and variety of products to increase its appeal on the world market and to bring in foreign experts, in association with the United Nations Industrial Development Organisation, to offer extensive training for workers. 

More than half of the products made by Ethiopia’s 20 tanneries are exported to foreign markets - including Italy, Britain and China - which last year generated $66 million in revenue, making leather is the country’s second greatest export commodity after coffee.

Ethiopia is the tenth largest producer of livestock in the world, and by far the biggest in Africa, with some 78 million cattle, sheep and goats.

The country is also a major source of two of the globe’s finest and most sought-after varieties of leather; the highland hair sheep Cabretta is used to produce some of the finest fashionable gloves in the world, while the goat population produces the renowned “Bati genuine”, a material used for the best quality, finest, suede.

In related news, Pittards of Yeovil, the tanners, will be re-locating additional processing resources to Ethiopia.

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Notice - Employers Trade Fair April 2006

The Ethiopian Employers Federation has announced that the Employers 2005 Trade Fair has been rescheduled. The event, which has been organised in association with the Ministries of Foreign Affairs, Capacity Building, Transport and Communication, Culture and Tourism, Work and Urban Development, as well as the Privatisation and State Enterprises Supervisory Agency, the International Labour Organisation and the Christian Relief and Development Agency, will now take place from 29^th April to 6^th May 2006. Details will be posted on the Embassy website.

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Scottish medical team help treat cataracts in Ethiopia

A consultant from Inverclyde Royal Hospital has spent a week in Ethiopia treating people with cataract problems. Dr Sadhu Gupta left on 7^th January to spend the week in Bahir Dar treating more than 150 people with the sight problem. This is the ninth time Dr Gupta has led a team to Asia and Africa to help people in countries where medical faculties require assistance.

Speaking to the Greenock Telegraph before his visit, Dr Gupta said "many of the people are unable to work because of their eyesight problems. They may have to keep children off school to care for them, so giving them back proper eyesight will make a tremendous difference to them and their families."

Dr Gupta and his team of volunteers are sponsored by Greenock and Gourock Rotary Clubs, private individuals and medical suppliers. This year they were accompanied by Ethiopian Ergate Ayana, who has lived in Greenock for 25 years and is a retired Inverclyde Royal Hospital theatre charge nurse.

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ALSO IN THE NEWS

● A new agreement which provides for the cancellation of a US $6.5 million debt owed by Ethiopia to OPEC was signed on 22nd December. The agreement was signed by Ethiopian Ambassador to Vienna, Halima Mohammed, and OPEC Board Chairman Jemal Nasir. Ambassador Halima thanked OPEC for the cancelling the debt, the money from which would be re-directed to the poverty reduction programme in Ethiopia.

● 34 computers donated by Ethiopian Airlines have been given to schools in the Alemaya woreda in East Hararghe Zone of the Oromia State. The computers were distributed between eight primary and two secondary schools with a view to improving the quality of education received by students. Ethiopian Airlines have previously donated 83 computers to nine schools in the East Hararghe Zone and to Chelenko Secondary School.

● The British Council has been running a basic computer training course for residents of Axum. More than 250 locals received the two-day training at the end of December, which it is hoped will allow them to stay informed about news and various issues. The British Council has donated four computers, telephone lines, a copier and a fax machine to the town’s library over the past two years. 

● Prime Minister Meles attended the sixth regular summit of the African Union which was held in Khartoum, Sudan in January. The Summit voted the Congo Republic as the next AU head, with President Denis Sassou Nguesso taking the chair from outgoing AU President, Nigeria’s Olusegun Obassanjo. The Summit also accepted the proposal to establish an African Cultural, Scientific, and Educational Organisation which will be based in Khartoum.

● Genna – the Ethiopian Christmas – was marked with celebrations throughout the country on 7^th January, with more than 50,000 people gathering at the rock-hewn churches of Lalibella to attend the festivities there.

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Birth of an Ocean at the Natural History Museum

The Natural History Museum will be hosting a talk on Tuesday 21st February 2006 which will look at how geologists believe that a new ocean basin will form in Ethiopia over the next few million years.

“Birth of an Ocean” will be presented by Tim Wright and Cindy Ebinger, who will show slides from the January camel expedition to Dabbaho volcano and the Da’Ure eruptive vent. The talk will take place at 12 mid-day and again at 14:30. More information is available on the Museum website – www.nhm.ac.uk

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Travel Trends – The Times

In an article in the Times Magazine of Saturday 7^th January 2006, Ethiopia was described as Africa’s “unsung gem”. In her assessment of possible popular holiday destinations for 2006, journalist Lisa Grainger said “Notting Hillbillies, always in search of fresh horizons in Africa, are heading to the continent’s unsung gem, says Tim Best Travel (www.timbesttravel.net). There are extraordinary Gondar castles and underground churches, as well as ramshackle modern architecture, magnificent scenery (waterfalls and desert) and exotic nightlife in Addis Ababa (set to take over from Beirut as an unexpected party town).”

In a related article, the Sunday Telegraph of 8^th January 2006 carried a travel piece by film and theatre director Richard Eyre, who visited Ethiopia last Christmas - which he describes as “defeating all expectations”. He goes on to say that the country’s landscape has fuelled legends and “inspired fiction for centuries”, and details his visit to the Gondar castles and the Lalibela churches, each of which he says is a “phenomenon and an enigma.”

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Sport

Haile leads a victorious weekend for Ethiopia

Ethiopian athletes stormed to victory in events on both sides of the Atlantic in January. Haile Gebrselassie, Kenenisa Bekele and Gelete Burika all finished in first place in their respective competitions, although Haile’s victory was perhaps all the sweeter, breaking not one, but two world records.

While competing in the P.F. Chang's Rock 'n' Roll Arizona Marathon and Half-Marathon in Phoenix, Arizona on Sunday 15^th January, Haile not only broke the world half-marathon record by a staggering 21 seconds by clocking a time of 58 minutes and 55 seconds, but also broke the 20km record on en route – marking the 20^th time in his career that he has set a world mark.

Meanwhile Kenenisa Bekele and Gelete Burika also achieved success for Ethiopia with wins at the VisitScotland Great Edinburgh International Cross country on Saturday 14^th January. Kenenisa ran the Men’s 9.2km, and crossed the finishing line with a time of 26 minutes and 8 seconds, to the sound of cheering crowds of Ethiopian supporters. World junior champion Gelete Burika won the Women’s 6km event with a time of 19:01, and while Tirunesh Dibaba failed in her attempts to defend her Edinburgh Cross Country title, she still finished in third place with a time of 19:21 – which perhaps might be deemed all the more impressive when it was revealed that she spent the night before the race sleeping on the floor at Heathrow airport after missing her connecting flight due to a delay at immigration.

Meanwhile, US Track and Field News magazine – nicknamed the “Bible of the Sport” since its founding in 1948 – have named their top athletes for 2005, with Kenenisa voted the winner in the male category for “Athlete of the Year” – the highest annual honour bestowed by the magazine – after receiving 355 votes from the magazines selectors. He was also named the number one ranked athlete in the 3,000m, 5,000m and 10,000m disciplines. Tirunesh came in second place in the best female athlete category, with 288 votes, and was named number one ranked athlete in the female 5,000m and 10,000m disciplines, while Meseret Defar was voted best female athlete in the 3,000m discipline.

Following his success in Phoenix, Haile will be taking part in the London Marathon in April.

"If I do not break the world record but win in London, it is something special. But we'll see. Anything is possible," he said.

Haile went on to achieve victory at the Mitja Marató de Granollers Half-Marathon in Spain on Sunday 5^th February, clocking a time of 1 hr 17 seconds. In the women’s race, former 10,000 metres champion Gete Wami won with a time of 1 hour, 10 minutes and 24 seconds.

Finally, Robel Teklemariam is to become the first Ethiopian to compete in the Winter Olympic Games, in Turin. Robel will be taking part in the Men’s 15km classical cross country skiing race on Friday 17^th February.

“It’s definitely historic for Ethiopia and it means a lot to me personally,” Robel said. “It’s an honour for me to race at this level in a sport that I love and for a country that I’m very proud to be from. I want this Olympics to open my eyes and hopefully the eyes of other Ethiopians. Ethiopia is my heritage, my country and it’s who I am.”

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Ethiopian News – Volume 4 Number 11 December 2005/January 2006

 Published by the Press Office, Ethiopian Embassy, 17 Princes Gate, London SW7 1PZ

Telephone: 020 7838 3883   Fax: 020 7838 3889

info@ethioembassy.org.uk  www.ethioembassy.org.uk