The National Electoral Board of Ethiopia announced on Sunday that the voting for the 5th General Election had accomplished peacefully and successfully. The Chairperson of the Board, Professor Merga Bekana, said there has been a high turn out and the electorate had been able to cast their votes freely. The elections would, he said, have a significant impact in strengthening the country’s democracy. Representatives and leaders of the various competing political parties and the numerous public and  Civic Society  observers told reporters that the voting had been free, faire and peaceful. Voters were unanimous that they were able to vote without intimidation. As voting closed, the representatives of all the contesting political parties began the counting; the results will be explained at every polling station, said Professor Merga. The Chairperson noted that the only authorized body for the display of the election results would be the Electoral Board. He added that it was illegal to claim results in any form. The African Union Observation Team, which visited polling stations in Addis Ababa during the morning on Sunday, said that three polling stations in the morning said election officials had been on time and voting started at the prescribed time with all election materials were in place, domestic observers at the stations and some political party agents present. The AU team said it had received similar reports from its observers around the country. According to the Ethiopian News Agency most of the over 100 polling centers to which it sent observers opened on time and the election procedures were observed by the election officials and no incident had been reported. President Dr. Mulatu Teshome cast his vote early in the morning in Addis Ababa along with thousands of the city inhabitants. He called on all eligible voters to exercise their rights by voting for their favorite party and particularly urged the youth to give attention to contributing to the democratization process and sustain the nation’s development activities. Prime Minister Hailemariam cast his ballot at a polling station in Boloso Sore Woreda of Wolayita Zone in Southern Ethiopia Peoples state. He told reporters that the high turnout of voters across the country was a manifestation of the democracy flourishing in the country. The prime Minister was one of 1,350 candidates fielded by the EPRDF for the fifth general elections, which 36.8 million voters registered to votes. Fifty-eight political parties are competing for the 547 seat parliament and the regional state councils. Earlier in an interview with Al-Jazeera, the Prime Minister said the credibility of the election lies in the eyes of the public. A democratic, credible, fair and free election should be credible in the eyes of our people, who are responsible for electing all of us and it was for the people to judge. Ethiopia’s 90 million citizens, he said, were part of a healthy, multi-party democracy that holds elections every five years. The country’s democracy was a house in the making where every election is getting better than the previous election. He said, in addition to conducting periodic elections, “Ethiopia considers participating and engaging the public in all aspects of development as an important aspect of democracy”.

Ethiopia is targeting $1 billion of annual investment in industrial parks over the next decade to boost exports and make it Africa’s top manufacturer, a special adviser to Prime Minister Hailemariam Desalegn said.

The government may invest half of the $10 billion needed for zones across the country that will house textile, leather, agro-processing and other labor-intensive factories, Arkebe Oqubay said in an interview in the capital, Addis Ababa. The International Finance Corp., the World Bank’s private lending arm, along with Chinese and European lenders and private-equity funds are interested in projects, he said.

“In terms of industrial development and manufacturing development, we want to put Ethiopia number one in Africa,” Arkebe said.

Growth in Ethiopia has surpassed every other sub-Saharan country over the past decade and is forecast by the International Monetary Fund to exceed 8 percent over the next two years. The state-planned economy is opening up to foreign investors following its sale of $1 billion of Eurobonds last year and plans to start an equities and secondary debt market, London-based Exotix, which has a buy rating on the Eurobonds, said May 7.

Ethiopia’s manufacturing industry is valued at about $1.35 billion, compared with $48.1 billion in South Africa, according to World Bank data.

Calvin Klein

American clothing company Phillips-Van Heusen Corp., which owns the Tommy Hilfiger and Calvin Klein brands, is considering using suppliers at an industrial park in Hawassa, south of Addis Ababa, the government said last month. Hennes & Mauritz AB, Europe’s second-largest clothing retailer, already sources from three factories in Ethiopia, where wages can be as little as a tenth of China’s and access to the U.S. market is duty free under the African Growth and Opportunity Act.

Ethiopia had targeted a 15-fold increase in textile and leather exports to $1.5 billion in a five-year plan that finishes in July, the end of the country’s fiscal year. That surge failed to take place because of a lack of specialized parks with services including utilities, banks, customs and transport links, said Arkebe, who is chairman of the state-run Industrial Parks Development Corp.

Total manufacturing shipments earned $262 million in the first eight months of this fiscal year, up 10 percent from the previous year. Investing in industrial parks will be “a major solution to the problems,” Arkebe said.

200,000 Jobs

The government will use about half of the funds from the Eurobond to develop parks in the financial year that begins July 8, he said. The government’s so-called Vision 2025 sees manufacturing expanding 25 percent a year and creating employment for 200,000 Ethiopians annually, Arkebe said.

The World Bank is spending $250 million on a second industrial zone at Bole Lemi, on the edge of Addis Ababa. In October, Shin Textile Solutions Co. of South Korea moved into the existing factory park at Bole Lemi, employing 3,000 people, Arkebe said.

A textile park opened in Hawassa in April and construction begins this month on zones in Dire Dawa and Adama, which are both on Ethiopia’s main trade route to a port in neighboring Djibouti, according to Arkebe. Kombolcha and Mekele will also be manufacturing centers. The industrial park plans need to be endorsed by federal lawmakers who will be voted for in May 24 elections, he said.

Chinese Funding

Electric railways costing $4 million per kilometer will serve the environmentally friendly hubs that private companies can develop “almost” rent free from the parks company, which will have as much as 100,000 hectares of land, Arkebe said.

Developers will get a tax holiday of as long as 15 years and duty-free privileges, with incentives increasing for building done outside the capital, he said. Manufacturers can get tax exemptions of 10 years if they export all their products from a site not in Addis Ababa.

One rail project connecting Addis Ababa with the cities of Jimma, Bedele and Ambo began last week. Chinese banks will “mainly” finance the 491-kilometer (305-mile) rail link, he said. Another railway from a port in the Djiboutian town of Tadjourah port to Bahir Dar city and from the capital south to the cities of Hawassa and Arba Minch will be completed by July 2020, Arkebe said.

Separately, the government says a Chinese-funded track from Addis Ababa to Djibouti will be completed this year. Work is also continuing on a $1.7 billion line that goes through Kombolcha, funded by the Export Credit Bank of Turkey and Credit Suisse Group AG.

Source: http://www.bloomberg.com/news/articles/2015-05-18/ethiopia-plans-manufacturing-hub-with-10-billion-factory-parks

Addis Ababa, 27 May 2015 (WIC) – The World Bank said Ethiopia’s economy was expected to grow by 9.5% this fiscal year ending in June before accelerating to 10.5% for 2015/16, adding that it expected inflation to remain in single digits during this period, MoFA reported.

Lars Christian Moller, the World Bank’s lead economist and program leader for Ethiopia, said on Friday (May 22) that falling oil prices should help quicken Ethiopia’s growth in 2015/16.

“If lower oil prices are passed on to consumer in the form of lower fuel prices”, he said, “It gives additional disposable income to consumers.” Mr. Moller, in an interview with Reuters, said the service and

agriculture sectors were likely to drive growth, along with the booming construction sector.

He said growth had eased slightly in 2014/15 due to slightly disappointing rains.

Annual inflation is likely to remain in single digits, in line with the government target, he said, averaging 7.2% this fiscal year, rising to 8.2 percent in the next fiscal year.

Addis Ababa, 11 May 2015 (WIC) – Sudan on Saturday reiterated Ethiopia’s absolute right in using its water resources in reference to the Grand Ethiopian Renaissance Dam (GERD).

“The Ethiopian government has the absolute right to use its water resources, with taking into account that no harm would be caused to the concerned parties,” Mutaz Mussa, Sudan’s water resources and electricity minister, told reporters in Khartoum Saturday after meeting a visiting Ethiopian parliamentary delegation.

The minister said the GERD project constitutes an important step to enhance the joint cooperation between Sudan, Egypt and Ethiopia, and achieve the upper interest of the three countries.

In March, the leaders of Sudan, Egypt and Ethiopia signed an initial cooperation deal on sharing the Nile River and the construction of the GERD.

The GERD worries Egypt which fears that the construction of the dam would affect its share in the Nile water, which amounts to 55.5 billion cubic meter, while Ethiopia reiterates that the dam is likely to make a shift in its wealth, namely in the field of electricity.

The GERD, extending on an area of 1,800 square kilometers, is scheduled to be completed in three years at a cost of 4.7 billion U.S. dollars. (Xinua)

Ethiopia is known for its rich cultural heritage steeped in century’s old history and mystical legends. But very few know of a long-held wine-making tradition in Ethiopia. The wine-making tradition has over the last few years been gaining much traction and is now a gradually expanding industry that is meant to place Ethiopia firmly onto the wine-making countries list.

Traditionally, Ethiopia has been making a local wine called tedj, a type of honey-wine flavored with gersho leaves, that are similar to hops. However, this ancient wine-making tradition is gradually being taken over by a much modern form of wine-making, and nowadays standard high-quality wines are produced in the country. Ethiopia is now growing its own grapes and producing its own signature wine. Due to the proximity to the equator, it is even possible to make two harvests per year. Currently, there are two wineries in the country, with a combined production of almost 12 million bottles of wine per year.

Awash winery is by far the oldest winery in Ethiopia. The winery has been in existence for about 70 years now. Awash Winery boasts more than 117 hectares of a wine estate that sits on a mountain plateau rising to 1,200 meters above sea level. It was acquired in 2013 by Blue Nile company, which has the plan to expand the production by constructing a second distillery.

Currently, Awash Winery has an annual production of about 10 million bottles, most of which is exclusively consumed by the Ethiopian market. According to Awash, the local demand for quality wine is at an all-time high. In 2016, the company will be able to export wine in addition to meeting the local demand.

Castel Winery on its part is a new player in the Ethiopian wine-making industry. The winery is located in the town of Ziway some 160 km south of Addis Ababa. Castel’s vineyards were established in 2007 as a partnership between the Ethiopian Government and the Castel Group, which is today one of the largest wine and beer producer in the world. The wine estate is spread across some 120 hectares with the grapes having been planted between 2007 and 2009. The winery started bottling its vintage wine in 2014, with the goal of producing a quality wine meeting international standards.

Castel’s vineyards are located about 1,600 meters above sea level with an annual rainfall of about 650 mm and average temperature of 25 degrees celsius year round. The region has sandy soils, which according to Castel Winery are good conditions for the development of quality wines and could in a few years’ time compete with South Africa, currently the continent’s largest wine producer.

Castel Winery has a total annual production of about 1.2 million bottles of Ethiopian Rift Valley Wine. Plans are to increase production to 3 million bottles per year by 2016. Exports destinations for this production include the US and Europe. Castel Winery could benefit from the AGOA program supporting free access to US market, and from EU’s Everything But Arm program, which provides a duty and quota-free access to the European markets.

The Castel vineyard boast exclusively planted with international grape varieties that include 55 hectares of Syrah, 38 hectares of Cabernet Sauvignon, 14 hectares of Merlot and 12 hectares of Chardonnay. In the collection is an additional 42 hectares of Sangiovese that was planted in the 1980s by the Ethiopian government.

Most of the 750,000 wines planted in these vineyards were imported from Bordeaux (France). Merlot, Syrah and Cabernet Sauvignon grapes were chosen for the reds that make up the biggest of Castel Winery’s Rift Valley Wines production while Chardonnay grapes were chosen for the white wines.

Some regional states in Ethiopia have also provided investment incentives for this sector, in order to further support the development of wineries. Taking advantage of the growing local demand, the export incentives and the favorable climate, the wine sector in Ethiopia is rapidly expanding.

A ceremony was organized at the Ethiopian Embassy in Brussels on 25 April 2015 to remember Ethiopians killed in Libya by ISIS. Hundreds of Ethiopian diaspora members attended the event. You can read the report by clicking here (Amharic):

https://ethiopianembassy.be/wp-content/uploads/Report-on-ISIS-Victims-Ceremony.pdf

 

Tuesday 21st April 2015
Release: Immediate
The people and government of Ethiopia are greatly saddened by the barbarous killing of innocent Ethiopian Christians in Libya.

The Government of the Federal Democratic Republic of Ethiopia strongly condemns the killings, even more so when they were supposedly committed in the name of religion.

Atrocities of this kind have nothing to do with religion: they merely illustrate the psychotic nature of terrorism and violent extremism. There is no excuse for such deliberate crimes against humanity.

Ethiopia has been in the frontline in the fight against terrorism for a number of years now. Its determination to prevent terrorism taking root in Ethiopia and the region underlines why it has taken an active role in responding to the terrorist activities of Al-Shabaab in neighboring Somalia, elsewhere in the sub-region and internationally. Ethiopia will remain vigilant to ward off terrorism and extremism.

The Government is ready to repatriate any and all Ethiopians in Libya. Ethiopia’s Ministry of Foreign Affairs has called on all Ethiopians residing in Libya to contact the nearest Ethiopian Embassies in Cairo and Khartoum for assistance. The Government is also contacting other stakeholders to help Ethiopian citizens leave Libya. The Ministry welcomes the strong condemnation of the killings by the AU, USA, EU, Canada and the international community at large.

Both the Ethiopian Muslim Affairs Supreme Council (EMASC) and the Ethiopian Orthodox Church (EOC) have condemned Islamic State’s barbaric acts.

The EMASC strongly condemned the slayings as “genocidal acts”. EMASC President Hajji Mohammed Aman Jemal said “the slaying committed by the terrorists is a shocking deed which stands contrary to the Holy Quran. Human beings are sacred,” so says the Holy Quran. “This shows the respect it has for mankind, oblivious of their colour, ethnic origin and religion.”

He added that the Prophet Mohammed explicitly ordered Muslims not to harm Ethiopia. The act perpetrated by extremists is therefore an atrocity that blatantly disrespects Islam and the Holy Quran.

The Ethiopian Orthodox Church condemned the killings. The patriarch, His Holiness Abune Mathias, said the victims are Ethiopians and followers of the Ethiopian Orthodox Church. The act does not represent any religious institution and faith, but is an act committed by terrorists that should be condemned, he said.

The patriarch added that the EOC supports the efforts of the government to safely bring back citizens. He advised citizens to focus on earning their livelihood in their own country “instead of going to countries that do not guarantee their safety, religion and property”. He affirmed that the church will extend support to those who come back from Libya.

Now it is confirmed that Ethiopian citizens were among the victims, while condemning this heinous act, the Ethiopian Government will continue its investigations.

In respect for the victims, Ethiopia has declared a 3-day period of mourning, beginning today.
—-ENDS—-

Livestock potential

Ethiopia is home to the largest population of cattle in Africa and the 10th largest in the world. The number of livestock doubled between 1995 and 2010 from 58 million to more than 100 million. Today, it comprises approximately 54 million cattle, 25.5 million sheep, 24 million goats, seven million donkeys, two million horses and one million camels. The livestock sector contributes for about 16.5% of the GDP, and is an important factor of livelihood and revenue for the rural populations. In fact, between 11 and 13 million households are engaged in livestock keeping, which also include beekeeping (Ethiopia is the leading honey producer in Africa).

To address challenges such as availability of feed and commercial channels and to further improve the productivity and quality of the livestock sector, a national Livestock Master Plan is prepared by the Ministry of Agriculture and implemented by the Agricultural Transformation Agency (ATA).

Leather industry

Being the first livestock producer in Africa, Ethiopia has a huge potential for the leather industry. While leather exports stood at USD 123 million in 2012, the government wants to grow the leather industry’s annual exports to USD 500 million by the end of 2015.

Every year, the country produces about 2.7 million hides, 8.1 sheepskins and 7.5 million goat skins. Moreover, with a population of 26 million, Ethiopia has the largest flock of hair sheep in the world. Hair sheep skin has a particularly fin and tight grain, making it highly valuable for female gloves of higher quality and luxury items.

Ethiopia’s leather and leather product sector already produce a range of products from semi-processed leather in various forms to processed leathers including shoe uppers, leather garments, stitched upholstery, backpacks, purses, industrial gloves and finished leather. The government plans to fully utilise these resources through value addition and thereby create more jobs and boost exports. Ethiopian leather products are exported to markets in Europe (especially Italy and the UK), America, Canada, China, Japan and other Far Eastern countries and the Middle East. All exports are tested by the Quality and Standards Authority of Ethiopia (QSAE).

A good Opportunity for investors

There is a conducive and enabling atmosphere in Ethiopia in terms of both the political and economic situations. As one of the government’s priority sectors, investors in leather enjoy incentives including duty exemptions on capital goods and construction materials, and five-plus years of an income tax holiday. Other positives aspects of operating in Ethiopia are free access to US and EU markets as well as cheap electricity. Moreover, with a wage of about USD 40, the cost of labour in Ethiopia is about ten times less than in countries such as China.

Official statistics from the Ethiopian Revenue and Customs Authority show that of the total leather products export, still about 73 percent is earned from finished leather, which has the potential to be converted into other value added products such as shoes, bags, gloves or garment. In recent years however, the country’s leather industry has attracted several foreign companies that have set up factories to create value added products. For instance, the Chinese footwear manufacturer Huajian Group opened a factory in 2012 at the industrial zone outside Addis Ababa where it manufactures 6,000 pairs of shoes and boots per day. The company moreover secured 138 hectares of land to establish its own industrial zone at a cost of about USD 2.2 billion. Other companies such as the UK firm Pittards have also installed factories to produce high quality leather items for export.

In this way, the local industry has already created jobs for millions of Ethiopians and increased export earnings of leather products including gloves and garments. In 2013 for example, earnings stood at $132 million from $76 million in 2008. Out of this figure, around $30 million came from shoe exports. While Ethiopia has long exported its leather to Europe and Asia where it was transformed into fashionable items, recent investments in Ethiopia-based factories by foreign companies are helping change this, and create jobs for millions of Ethiopians. This, in return, is expected to boost the local consumption of Ethiopian leather products, which will be even more profitable to the industry.

Report produced by the Embassy of Ethiopia in Brussels

Addis Ababa, April 13, 2015 (WIC) Ethiopian Airlines among the top 10 most dependable airlines in the world.

Ethiopian Airlines, Africa’s largest and most profitable airline has been ranked as the 6th most dependable airline in the world according to CBS news. With a fleet size of 76 aircraft and more than 100 destinations, 81 of them internationally.

Ethiopia’s flag carrier has an on-time record of 71% and is ranked as the 6th most dependable airlines in the world.

Ethiopian flies to more destinations in Africa than any other airline in the world and it is Africa’s dominant airline in Asia, flying to 21 cities in Asia including the Middle East and Gulf.

The most dependable airline in the ranking is Qatar Airways followed by Emirates and China Eastern. Singapore Airlines is ranked 4th and China Southern Airlines 5th. You can see the complete list on CBS news.

Ethiopian Airlines

Fleet size: 76

Number of destinations: 101+

On-time percentage: 71%

Average age of fleet: 7 years

Africa’s largest and most profitable airline has been in rapid expansion mode to capture the hot Africa-Asia market.

Ethiopia is building a massive airport to house the airline’s home base. The country is looking to shed its image of famine and poverty, and showcase its booming economy. (CBS news)