• The Nile draws its water from three long rivers – the White Nile, Blue Nile, and the Atbara, which flows from North-West Ethiopia to the Nile in East Sudan. The longest river in the world, the Nile stretches 6,650 kilometers and passes through eleven countries: Burundi, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, Sudan, South Sudan, Tanzania, Uganda and the Democratic Republic of the Congo (DRC).
• Ethiopia contributes over 85% to the Nile water.
• The volume of the Nile’s annual flow is 84 billion cubic meters. These Nile Basin nations have a combined population of roughly over 500 million people and is expected to double in the next twenty-five years.
• To date, there is no international legal regime that governs the utilization of the river among the Nile basin countries.
• After more than thirteen years of negotiation, among the Nile basin riparian states, The Cooperative Framework Agreement (CFA), a treaty that outlines principles, rights, and obligations for cooperative management and development of the Nile Basin water resources, was signed by all riparian states except Egypt and Sudan. Among these, Ethiopia, Rwanda, Tanzania, and Uganda have ratified it. With two more additional ratifications, it would be the first and only binding legal regime on the Nile river.

The Board of Directors of the African Development Fund (ADF) on 3 July approved a grant of $165.08 million to support Ethiopia’s response to the health and economic impacts of the COVID-19 pandemic, including helping to ease fiscal pressures on the economy.

The grant, awarded from the country’s ADF-15 Performance-Based Allocation, will help bolster Ethiopia’s COVID-19 National Emergency Response Plan (NERP).  The NERP outlines a reliable, multi-sector approach to tackling the pandemic. It aims to expand social protection coverage for the most vulnerable, enhance capacity to contain the virus outbreak, and address macro-fiscal imbalances as well as cushioning the effects of the crisis on the private sector.

“This Bank’s support will especially help local businesses and vulnerable households, particularly the urban poor,” said Abdul Kamara, the Bank’s Country manager for Ethiopia. “The program will increase the number of COVID-19 testing laboratories, train 45,000 healthcare workers in COVID-19 response, and aid in rolling out a risk-communication and community engagement strategy to raise awareness on transmission and prevention.”

The country’s health system remains weak, with only three hospital beds per 10,000 persons. The package will assist in refurbishing 300 isolation centers, 34 treatment centers and 100 quarantine centers.

The program will also support the government to offset unplanned expenditures deployed to stabilize the economy under the NERP, and funds will be apportioned to protect small businesses in the formal and informal economy in order to preserve approximately 26,000 jobs.

Ethiopia, along with the rest of Africa, is feeling the impact of the COVID-19 pandemic, which is threatening to reverse recent economic gains. Apart from existing food security issues heightened by COVID-19, the agricultural sector is facing complex and multiple shocks, including the desert locust invasion and climate risks, which pose a threat to productive farmers.

On 8 April, Ethiopia’s parliament declared a state of emergency, and national elections, which were scheduled for 29 August, were postponed.

Ethiopia’s robust economic growth, averaging around 10% annually from 2004/05, is expected to slump as a result of the adverse impact of COVID-1. The country’s 2020 GDP growth has been revised downwards from initial projections of 7.2% to between 2.6% and 3.1%.

The pandemic is also expected to negatively impact the private sector, especially in the construction, exports, and tourism and travel sub-sectors. Ethiopia’s tourism sector accounts for about 9.4% of GDP and employs some 2.2 million people. COVID-19 is expected to further reduce inflows, constraining the importation of raw materials.

The proposed program is aligned with the Bank Group’s Ten-Year Strategy 2013-2022, in particular, the High 5 priority “Improve the quality of life of the people of Africa”, and Pillar II of the Ethiopia Country Strategy Paper 2016-2020, “Promoting Economic Governance”. The NERP is being supported in partnership with several development institutions such as the World Bank, the IMF, and the Korean Exim Bank.

As of 1 July 2020, Ethiopia had recorded close to 6,000 confirmed cases of COVID-19, with 2,430 recoveries and 103 deaths.

Source: AfDB

Discover the article wrote by Travel Tomorrow Eu on Ethiopia being the “new hotspot for tourism”. After being named the world’s best tourism destination by the European Council on Tourism and Trade in 2015, Ethiopia continues to attract more tourists (750,000 in the last nine months alone). “Incredible wildlife, remarkable culture and peoples, delicious food, pleasant weather, and seven UNESCO World Heritage sites” are among its attractions. Read the article here : https://traveltomorrow.eu/ethiopia-land-of-origins-and-a-new-tourism-hotspot/?fbclid=IwAR3da54i78cqio0W_V6D8skH7-7CZ8MILu4_qxkwud4DmrI3ta2SB5pDoWw 

Planning and Development Commission conducted a consultation with the public on the 10-year perspective development plan document.

The draft plan is aimed at reaching the annual national economic growth of the country to more than 10 percent for the coming years.

Planning and Development Commissioner, Fitsum Assefa said the consecutive participatory public consultation from the outset of the plan’s drafting is to ensure it is in the best interest of every Ethiopian.

Short and medium-term plans will be set, she said, adding that the 10-year plan is pivotal in bringing about remarkable change in inflation, poverty reduction and most of all ascertaining the country’s prosperity.

The plan envisages lifting the annual per capital to 8.2 percent and lower poverty from 19 to 7 percent.

Prioritizing agriculture, manufacturing, tourism, and mining, the perspective plan will be able to create 1.3 new jobs annually, and securing 100 percent energy and clean water needs, it was indicated.

Participant of the consultation, Fantu Farris from the International Finance Corporation said the plan, by assessing the realities on the ground and giving equitable value to sectors, considers the economy as an ecosystem.

This, she pointed out will maintain the interdisciplinary value of the sectors and contribution to the entire economic growth.

“However, it needs to utilize the existing private sector and entrepreneurs while bringing about new and capable ones in order to enhance their involvement and contribution in realizing the targeted goals,” Fantu stated.

Private firms gain only less than 20 percent loan from financial institutions, she mentioned, and stressed: “this has to be improved as technology and finance are imperatively determinant in boosting the involvement of capable private sector in the economy.”

The 2020 Ethiopia Cup of Excellence (COE) auction has broken records, with total sales of 1,348,690 US Dollars topping the previous record of 830,245 US Dollars from El Salvador in 2011.

The El Salvador auction had 42 lots for sale, while the COE Ethiopia auction included only 28, achieving a record-high average price of 28 US Dollars per pound.

The top-scoring coffee in the 2020 COE Ethiopia competition sold at 185.10 US Dollars per pound or 407 US Dollars per kilogram. The Alliance for Coffee Excellence (ACE) says this is the highest price ever recorded for an Ethiopian coffee.

Half of the lot was purchased by Maruyama Coffee Co from Japan and its buying group, consisting of Saza Coffee, Cometeer, Goodboybob Coffee, Difference Coffee, and Harrods. The other half of the lot was purchased by Sarutahiko Coffee Inc from Japan.

Its producer, Nigusie Gemeda of Sidama, was stunned to see the price paid for his coffee.

“I have been a coffee farmer for a long time, but I am just learning the value of our coffee. I am so happy with the result. Never could I have imagined coffee would have sold with such price. Now I know there is a reason for coffee to be called the green gold,” he says.

The 168 registered buyers from 33 countries bid 4137 times for more than five hours to secure the sought-after winning coffees.

The second-from-the-top coffees coming from Rumudamo Coffee in Sidama, had a total of 902 bids, another record number in the competition history.

“It’s a powerful lesson and beyond what we could have had imagined. We sell our coffee for less than a dollar at times and it’s been discouraging for growers.

Now we see there is a market we can tap into if we can guarantee the quality,” says Ato Bogale Woledehana, General Manager of Rumudamo Coffee.

The United States Company Coffee at Intelligentsia won out in the competitive bid, paying a price of US$108 per pound.

“Ethiopia is the birthplace of coffee and widely considered to be the producer of the most delicious coffees in the world, yet many of its farmers are among the poorest. This auction sends a message of hope that not only validates the investments – and associated risks – in quality but also serves as a reminder that the quality movement is here to stay” said Geoff Watts, Vice President of Coffee at Intelligentsia.

Source: FBC

American Ambassadors have asked the Trump administration to embrace neutrality and support genuine mediation of the Grand Ethiopian Renaissance Dam (GERD).

The ambassadors are Johnnie Carson, former Assistant Secretary of State for African Affairs, Herman Cohen, former Assistant Secretary of State for African Affairs, Dr. Chester Crocker, former Assistant Secretary of State for African Affairs, Jendayi Frazer, former Assistant Secretary of State for African Affairs, George Moose, former Assistant Secretary of State for African Affairs, Susan Rice, former Assistant Secretary of State for African Affairs and Linda Thomas-Greenfield, former Assistant Secretary of State for African Affairs.

In a letter  to the Under Secretary for Political Affairs, David Hale, they expressed their concerns about the escalating tensions between Ethiopia and Egypt over the use of the Nile waters and construction of the dam.

“The GERD talks are entering a critical phase, and we urge the United States to embrace neutrality and support genuine mediation, which is the best way to advance our interests and to ensure security and stability in the region,” they said.

The Ambassadors also recommended the United States to encourage a neutral and credible country outside of Africa and the Middle East to mediate the disagreement.

According to them “the perception—rightly or wrongly—that the United States has sided with Egypt in the negotiations will limit our ability to support efforts aimed at reaching a settlement.”

They further said that “Pressure on Ethiopia or suspension of multilateral or bilateral assistance will harden positions and make compromise more difficult.”

Foreign investors continue to show strong interest in Ethiopia despite the COVID-19 induced demand and supply shocks as well as uncertainty in global financial flows.

According to the Office of the Prime Minister, pharmaceutical products and agricultural related investments keep generating increased Foreign Direct Investment (FDI) in the country.

The Government of Ethiopia is maintaining its efforts to promote and facilitate new investments in these sectors, for instance, through the continuous development of the  Kilinto Pharmaceutical Industrial Park and Agro-industrial Parks, the office stated.

Noting that since 2012/13, FDI inflows to Ethiopia have been growing on average by 50 percent per year, reaching a peak of 4.1 billion in the 2017/18 fiscal year, Ethiopia has become the largest recipient of FDI in the East African Region and the fifth largest in Africa, it was indicated.

As Ethiopia in 2019 introduced a series of economic reforms aimed at improving the investment, the country was anticipated to attract increased FDI in 2020.

However, the possibility of this outcome has diminished due to the COVID-19 and resulting disruption in the international trade and investment flows. It is estimated that global FDI flows will decline by 30 percent to 40 percent during 2020-21.

In this regard, this global trained is likely to have a direct impact on FDI flows to Ethiopia and the country’s global attracting increased investment into export-oriented activities, the office stated.

For instance, among the export-oriented sectors, tourism is the most affected sector by COVID-19 shock in which over 80 percent of hotels in Addis Ababa have closed their operations since the start of the pandemic.

While the situation is expected to slow the growth of the sector and the new investments until 2021, another export-oriented industry that attracted a significant amount of foreign investment is floriculture.

As a result, the Government of Ethiopia is monitoring closely the lessons from the COVID-19 shock and identifying the policy measures necessary to support the post-coronavirus recovery in order to mitigate the short-term impact of the virus.

The government’s measure is also expected to have equal importance in economic achievements, speedy recovery and continues attracting increased FDI into key export sectors, the Office of the Prime Minister concluded.

Revenue, Budget, and Finance Standing Committee of the House of Peoples Representatives discussed with Officials of Finance Ministry on next fiscal year budget appropriation and related issues.

Minister of Ministry of Finance, Dr. Eyob Tekalign briefed the standing committee that next year’s budget appropriation is based on lessons drawn from the execution of the already concluded fiscal year.

The 2020/2021 budget allocated by the government has taken in the current coronavirus pandemic in the country into consideration, and aimed to further transform better results registered in the economic sector, Dr. Eyob said.

Of the total budget, 160.3 billion birr is allocated for capital expenditure, 133.3 billion birr for recurrent spending, 176 billion birr to subsidize regional states, and 6 billion birr for Sustainable Development Goal (SDG) projects, Dr. Eyob explained.

The budget has shown an increase compared to the already concluded fiscal year, according to the Ministry of Finance.

Source: FBC

Ethiopia has registered 186 more cases of the coronavirus (COVID-19), bringing the total confirmed cases to 5,034.

The new cases were identified out of the 4, 034 laboratory tests conducted in the past 24 hours, according to the Ministry of Health.

The Ministry also reported three COVID19-related deaths over the last 24 hours, bringing the death toll to 78.

Among the new cases, 73 are male and 113 are female aged between 6 months and 80 years. Some 181 of the confirmed cases are Ethiopians, while the other five are foreign nationals.

Of the new cases, 147 are from Addis Ababa, 16 from Somali, 10 from Afar, 8 from Dire Dawa, 4 from Oromia, and 1 from SNNP regions.

The Ministry further reported that 74 patients have recovered from the virus, taking the total number of recoveries to 1, 486.

Ethiopia has now a total of 3,468 active cases, with 38 of them in a severe condition. The total number of tests conducted so far stands at 227, 375.

Source: FBC

Africa Communication and Information Platform for Health and Economic Action (ACIP), which aims at reaching more than 600 million people in Africa launched on Tuesday.

According to UNCEA press release sent to ENA, the platform is the first in its kind digital health platform that will benefit over 600 million mobile subscribers in Africa.

The ACIP, which is a mobile-based tool for two-way information and communication between citizens and governments, was launched virtually by the UNECA along with Africa CDC and other partners.

Launching the platform, Executive Secretary of UNECA, Vera Songwe said “with this platform, we have the possibility of reaching between 600 million and 800 million mobile subscribers in Africa.”

She lauded ITU, Smart Africa, the African Union, the World Bank, WHO, MTN, Orange, Safaricom, Vodacom, Airtel, and all stakeholders for contributing to the project.

ACIP furnishes national and regional COVID-19 task forces with user-generated survey data and actionable health and economic insights.

The platform would further enable authorities to better analyze pandemic-related problems and implement appropriate responses.

Director of Africa CDC, Dr. John Nkengasong said the platform offers “unique opportunity to change the way we conduct disease surveillance, enhance our ability to acquire good and timely data, and make all Africans count.”

Thirty-six African member states are already part of the initiative, it was indicated.

Source: ENA