The Monthly Publication of
The Ethiopian Embassy in London
Volume 5 Number 6 October 2007
Government's efforts paying off
Prime Minister Meles Zenawi said encouraging results have been registered in maintaining good governance, stabilising markets and curbing unemployment. Meles was speaking at the 4th regular meeting of the House of Peoples' Representatives during which the motion of amendment to the parliamentary inaugural speech of the president was debated. The president made his inaugural speech to both Houses on October 8. In their motion of amendment, opposition parties claimed that the president's speech did not give due weight to the issue of democracy and good governance. They also said the government's policy on Somalia was mistaken. In his response, PM Meles said that his government had achieved marked gains in democratisation and good governance, in curbing unemployment and stabilising markets. A strategy was in place to build the capacity of government executives at all levels. He urged all sides to contribute their share to the efforts, to overcome problems related to good governance.
Encouraging results were registered through measures taken to stabilise the sugar and oil markets, to supply subsidised grain to the public and there had been salary increments. Construction, floriculture and other private sector development, had significantly reduced unemployment.
In response to questions on Somalia, Meles said the Ethiopian army was deployed in Somalia at the request of the TFG. Pulling out the army now would cancel out the achievements already made in dismantling forces of terror in Somalia, allowing them to regroup, and would render void the sacrifices already made by the Ethiopian army.
Ethiopia now global investor hub
Investors from 30 different countries obtained licences in just 30 days the Ethiopian Investment Agency has announced and the number of foreign investors coming to Ethiopia is increasing. In just one month, September 2007, a total of 173 investment projects were registered, with more than half of these being foreign ventures from 30 different countries. Chinese investors lead by investing in 18 projects out of the 90 registered. They were followed by 17 Americans and 10 Britons, most of whom are of Ethiopian descent. The remaining projects are joint ventures between foreigners and Ethiopians. The other investors are from India, Canada, Germany, Australia, France, the Netherlands, Italy, Sweden, Belgium, New Zealand, South Africa, Barbados, Saudi Arabia, Yemen, Lebanon, Palestine, Pakistan, Indonesia, Nigeria, Chad, Cameroon, Sudan, Trinidad, Kenya and Djibouti. In addition to the 173 companies registered by foreigners, almost half of the 52 share companies licensed in the same period have at least one or two foreign shareholders along with Ethiopian partners. Real-estate, manufacturing, the hotel and construction sectors are among the major areas that attracted most of the investors - foreign investors are encouraged by huge incentives such as tax holidays and easy access to land.
PM Meles meets EU ambassadors
European Union Ambassadors met with Prime Minister Meles as part of the regular series of meetings. The agenda included the Ethiopian Eritrean border dispute, the situation in Somalia, governance and human rights and the situation in the Somali Regional State. The Prime Minister explained in detail why progress was currently impossible on the border demarcation, underlining that Ethiopia had long since accepted the delimitation decision without conditions, and that it was ready to implement it in accordance with accepted international practice. The difficulty was that Eritrea has fully occupied the Temporary Security Zone (TSZ).
Meles also detailed Ethiopia’s recent developments on human rights, and its sharply improving economic situation.
Regarding Ethiopia’s Somali Regional State, Meles noted that the security situation had dramatically improved. He informed the ambassadors that a mechanism had been agreed with the UN and other partners for the delivery of humanitarian assistance to the region, and is now in place.
On Somalia, the Prime Minister said that making the TFG more effective and deepening the political process were critically important. He stressed the importance of the international community doing more to encourage full deployment of AMISOM. Once AMISOM was in place, Ethiopia would be able to disengage.
12.6 billion Birr Projects licensed
Foreign investment projects worth more than 12 billion Birr have been licensed in the first quarter of the fiscal year [July-Sep 07].
The Ethiopian Investment Agency announced that more than half of the
487 projects are in manufacturing, construction and agriculture. The entrepreneurs are from Europe, the Middle East, Asia and various African countries. Upon completion, the projects are expected to create jobs for more than 87,000 people. Investment by Ethiopian Diaspora members has been increasing in recent years, including some who came to Ethiopia for the millennium celebrations and who have now obtained licences from States’ Investment Bureaux. The increase in these investors is attributed to the equal status they enjoy with local investors.
Nation’s FDI flow grows by 60%
Foreign Direct Investment (FDI) flow to Ethiopia increased by 60 percent in 2006, placing it among the top ten African nations, according to the UN Conference on Trade and Development (UNCTAD). FDI continues to be the most important source of external financing in the African continent and future prospects are good.
Ethiopia tipped to meet the MDGs
Ethiopia and four other African countries have been tipped to succeed in their efforts to meet the Millennium Development Goals (MDGs). The IMF’s 2007 Regional Report, launched on 22nd October in Addis Ababa, lists South Africa, Swaziland, Mozambique and Ghana as the other African countries that can realise the target of cutting poverty by half in 2015. In 2007, investment and improved productivity were the main drivers of growth in non-oil exporting countries. Growth will accelerate to more than 6 per cent, higher than the 5 per cent projected global growth.
WTO accession efforts progressing
Efforts made by Ethiopia to join the World Trade Organisation (WTO) are going smoothly. The request to join WTO had been positively rated as early as 2003 when the General Council decided that it could become a member after negotiations. A team has been established to advance the process and a Memorandum on the Foreign Trade Regime (MFTR), to be sent to member countries, has been prepared and endorsed by the Council of Ministers. There are indications that the country will become a member of the organisation within five years.
Ethiopia doubles tea production
Ethiopia has doubled annual tea production to more than 6,500 tonnes in the last five years, meeting growing local demand and exporting to new customers in Europe and the Middle East. "We have become self sufficient," said Esayas Kebede, head of coffee, tea and spice development at the Ministry of Agriculture and Rural Development. Almost all tea for local consumption used to be imported from neighboring Kenya. Ethiopia has earned $900,000 so far in the current season from exports to the Middle East and Europe. The government has identified 500,000 hectares of land where soil, humidity and rainfall are ideal for tea growing. In July, it leased 10,000 hectares in the west to an Indian company, Kanan Devan Hills Plantation of Karalla, and the hunt is on for more investors. Another Indian firm, Lucky Exporters, was also in talks with the government to set up a 5,000-hectare plantation. Ethiopia wants to boost tea production to diversify exports away from its major cash crop, coffee.
Seasons
Greetings!
to all our readers from the Ambassador and embassy staff
New bio-diesel plant
Global Energy Ethiopia has begun building a bio-diesel factory in southern Ethiopia which will produce 40,000 tonnes of crude oil annually. When the project begins production it will have the capacity of producing 250 tonnes of fuel each day from caster beans and jatropha, which easily grow in the SNNP. Chief Executive Officer of Global Energy Pacific Ltd and Global Energy Ethiopia, Yanai Man, said ''by March our project will create additional income for 10,000 families in the region without causing displacement.'' The projects have four components - the processing factory, a modern farm on 30,000 hectares, the purchasing of seeds from farmers and community farming. The Development Bank of Ethiopia finances its expansion project.
Private sugar factory
A Pakistani investor with 600 million Birr of capital is to build a sugar factory in East Wollega Zone of Oromia on 28,000 hectares of land in the Dedesa River Valley. Al Habesh Sugar Factory will employ more than 5,000 people, excluding casual workers. Investors with over 1.24 billion Birr have so far been engaged in the zone creating jobs for 1,325 people.
Democracy through Federalism
A new democracy had taken hold in Ethiopia following the country’s adoption of federalism as a form of government, said PM Meles at the 4th International Conference on Federalism in New Delhi, India, entitled "Unity under diversity - learning from each other". Home to over 80 nations and nationalities with diverse cultures, and new to the Forum, Ethiopia is keen to draw lessons from other members with a rich experience in managing federal structures. As an expression of its commitment to the success of the Forum, the Prime Minister announced Ethiopia's interest in hosting the 5th International Conference on Federalism and this was unanimously accepted by participants.
ITDA to connect all woredas
Ethiopia’s Information Technology Development Agency (ITDA) is connecting all woredas [districts] of the country through the WoredaNet project currently underway, at a cost of 15 million Birr. Woredas are connected to one another and to states and federal offices. Video-conferencing services have enabled more than 20,000 trainees to receive training in situ, saving time and money. The 30 plus Woredas that do not yet have access to the service will be connected this budget year. More than 480 court cases that should have been tried by the federal court were handled in their localities through plasma TV screens. Degree program training is now available locally and health services will soon be available.
Ethiopia unveils first saloon car
Ethiopia’s first saloon car rolled off the assembly line in October. Named Abay - Amharic for the Blue Nile river – it was assembled with parts imported from China by the joint Ethiopia-Dutch firm, Holland Car Plc. "We are bringing new technology to the country, offering customers new cars instead of older and more expensive ones from Europe," said Tadesse Tessema, co-founder of the company. It costs $16,000 [c£8,000] and is available in five colours. The firm produced a smaller car last year costing $10,000. Ethiopia is among Africa's largest car importers. Tadesse’s team of 75 staff assembles the vehicles. More than 30% of the mechanics are women, 2,000 cars will be built a year (6 a day).
New Health Programme
The Ministry of Health has announced that it has developed the Health Extension Program which ensures universal access to preventive and essential healthcare. Over 30,000 trained Health Extension Workers (HEWs), two in each of about 15,000 kebeles will be deployed throughout the country by 2008.
Ethiopia, IOM Sign Memo
Ethiopia and the International Organisation of Migration (IOM) have
signed a memorandum of understanding to launch a 4-year Migration for Development in Ethiopia, (MIDEth) programme which will reach out to Ethiopian diaspora members who wish to share their knowledge and skills, to boost development efforts in their country of origin. The $4.5 million programme will focus on health, education, water and sanitation.
Obelisk re-erection work begins
Work on the re-erection of the Axum obelisk has begun, the Culture and Tourism Office of the Central Tigray Zone has announced. The obelisk was
returned to its place of origin in April 2005 after 68 years of exile in Rome. It is to be re-erected on the original site with help from Italian construction company, Lattanzi SRL and UNESCO. The obelisk weighs over 180 tonnes and is 28 metres high.
New Book on Emperor Tewodros
Philip Marsden’s new book The Barefoot Emperor, about Emperor Tewodros, was launched at a reception at the embassy on 19th November. (HarperCollins £17.99)
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