On 29 January 2015, Foreign Minister Dr. Tedros Adhanom held discussions with Dr. Nicholas Wescott, Managing Director of African Affairs of the European External Action Service, Alexander Rondos, Special Envoy of European Union to the Horn of Africa, and Ambassador Chantal Hebberecht, Head of the Delegation of the European Union to Ethiopia. The focus was on the regional political and security situation and on ways to strengthen cooperation between Ethiopia and the European Union. Dr. Tedros emphasized that Ethiopia appreciated the EU’s support to Ethiopia and the Horn of Africa, one of the most vulnerable regions in the continent. He underlined the need to sustain this support to keep up the momentum of positive change. In regard to Somalia, Dr Tedros noted the remarkable progress made in consolidating fragile security situation with the removal of Al-Shabaab from a number of key strategic towns. He pointed out that, despite some hiccups, the building institutions and formation of regional states has shown encouraging progress. The Jubaland process, he said, is serving as a successful model for the South West Administration with indications that Central Somalia will follow suit. At the same time he stressed that the leadership of the Federal Government of Somalia needed to take practical steps to meet the goals of its Vision 2016. Dr. Tedros underlined that Ethiopia would continue supporting Somalia on the basis of the needs and priorities set by the Federal Government to realize a stable, secure and vibrant Somalia. Speaking on Eritrea, Dr. Tedros noted that the regime in Asmara remained determined to continue its policy of destabilizing the region. There had been no change in its behavior. He said: “Hosting rebels from neighboring countries, Eritrea has chosen the path of destruction rather than cooperation and mutual development”. He said it was imperative that the UN imposed sanctions to stop Asmara from disturbing the regional peace were fully implemented. Dr. Tedros also reiterated the urgent need to end the conflict in South Sudan and bring durable peace there. He said IGAD was continuing to work towards producing incremental changes, building on the agreed points of forming a national unity government in a manner that can provide a real solution. Mr. Wescott, noting Ethiopia’s important role in the regional peace and security efforts, also underlined the need for AMISOM to aggressively engage in removing the threat of Al-Shabaab altogether while accelerating the political process in Somalia. He said he shared the view that there was an urgent necessity to end the conflict in South Sudan he reaffirmed the European Union’s support to the IGAD-led mediation process. The EU delegation and Dr. Tedros also exchanged views regarding Ethiopia’s upcoming national election in May. Dr. Tedros explained that the pre-election process was on schedule and there had been impressive and substantial voter registration. He said the Government and the ruling party were taking all necessary measures to make sure that the election would be held in a manner that ensured widespread participation by the public and by all political parties.
Source: MFA

Addis Ababa, 28 January 2015 (WIC) – A new private equity firm based in Mauritius, Ascent Capital, is looking forward to financing local businesses including start-ups in Ethiopia.

The company on Friday officially opened its office in Addis Ababa in Abyssinia Mall near Bole Medhayialem Church. Lucas Kranck, managing partner, told Reporters that Ascent Capital has raised USD 50 million to be invested in Uganda, Kenya and Ethiopia.

Kranck, one of the founders of Ascent, said his company is committed to invest 20 million dollars in Ethiopia over the next three years. The amount could be raised ten times in three years time.

The fund is based in Mauritius and has offices in Ethiopia, Uganda and Kenya. The fund will invest in mid-size companies with a minimum revenue of USD two million.

“This could go as high as USD 10 million. We will have a ten-year lifetime to exist,” Kranck said. The fund’s life is ten years with a possible extension of two. The company hopes to repay the money to its investors within ten years’ time and exit from business.

“It is equity capital; it is not debt. We share the risk and the reward. We invest between USD 2-5 million per company. If everything goes well, which we hope it will, then we share the reward but if things do not go well we share the risk as well. And, of course, we target good dynamic Ethiopian entrepreneurs and there are many of them in this country,” Kranck said.

Michael Mebaselassie, principal and country director of Ascent Capital, said that the fast economic growth, political stability and huge population make Ethiopia attractive for investment. “Ethiopia has been registering a dramatic economic growth in the past years and there are attractive and promising companies to work with,” Michael said. (Reporter)

Addis Ababa, 27 January 2015 (WIC) – Low Emission Low Carbon Transfer (LCET) Program that enhances and promotes Ultra-Low Head Micro Hydro Power (ULH-MHP) technologies for productive uses in Ethiopia was launched last Saturday at Adama Town.

Officially launching the pilot program that will be implemented at Fentale Wereda, Oromia Regional State, Alemayehu Tegenu Water, Irrigation and Energy (MoWIE) Minister said the emphasis on developing the nation’s renewable source of energy is one of the major targets of the country.

According to him, the overriding development agenda of the country is to sustain rapid and broad based economic progress. In this regard, significant results are being registered.
During the GTP II emphasis will be given to the utilization of improved technologies that speed up environmental friendly technological transformation, he said.

Alemayehu further noted that, using progressive and sustainable environmentally friendly technologies, the country aspires to register remarkable economic growth thus marching to make poverty history, the Minister added.
According to him, access to social services has increased and the level of poverty is diminishing from time to time. Besides expanding rural electrification, technologies like Ultra-Low Head Micro Hydro Power are significant to increase agricultural productivity, job creation and create value chain among different economic sectors.

Alemayehu also said in an effort to achieve economic progress the United Nations Industrial Development Organization, UNIDO, is contributing a lot to the industrial development of Ethiopia.
Speaking on his part, Kazuhiro Suzuki, Ambassador of Japan to Ethiopia stated that, Japan is working hard to improve the energy situation in Ethiopia through various schemes.
According to Suzuki, as part of its scheme Japan is providing support to Ethiopia in the field of climate change through formulation of plans related to water supply and resources, as well as through projects aimed to improve water supply, hygiene, and livelihoods in rural areas.

He also said that “Japan is working hard to improve the energy situation in Ethiopia. This will be accomplished in the future by joint efforts of both private and public sectors, including Small and Medium Enterprises (SMEs), so that Japan as a whole, can tackle various challenges associated with developing and implementing a new technology hand in hand with Ethiopia, for the sake of global environmental conservation.”
Suzuki said, Ethiopia is the first among African countries that signed a bilateral document with Japan on the Joint Crediting Mechanisms (JCM), which enhances the reduction of carbon emission.
The UNIDO Project in Fentale has been implemented to formulate specific projects under JCM, he said.

Acknowledging Ethiopian economic progress, Jean Bagambanya Bakole, UNIDO Representative and Director of Regional Office in Ethiopia said that UNIDO is glad to be associated with the process of Ethiopia’s transformation which is indeed an African home grown development success story.

Oromia Water Mineral and Energy Bureau Head Motuma Mekasa, said at the event that, in addition to increasing agricultural produces, when the project is implemented, it will open another window of hope to access modern and clean energy.

“This will definitely improve the life of the population. When scaled up, it will improve the life of millions who live far from the Grid,” Motuma said.
Enhancing local capacity and promoting ultra-low head micro hydro power technologies for productive uses in Ethiopia Project is a program funded by through the technical cooperation of UNIDO. (EH)

Addis Ababa, 26 January 2015 (WIC) – Foreign Affairs Minister Dr Tedros Adhanom received on Sunday (January 25) a Norwegian delegation led by Foreign Minister, Borge Brende.

The bilateral discussions of the two Foreign Ministers dwelt on numerous issues of common interest. Both Ministers exchanged views on the promotion of Ethio-Norway partnership and expanding the depth, breadth and scale of the relations of the two friendly countries.

Dr Tedros gave a briefing on Ethiopia’s renaissance journey, the ongoing IGAD-led peace talks as well as IGAD’s role in supporting the South Sudanese warring parties end conflict and advance the cause of peace and stability. Dr. Tedros noted that Ethiopia will remain committed to advancing peace and stability in the region and attaches special importance to dialogue to resolve disputes.

He also recalled the successful conclusion of the 53rd Extraordinary Meeting of the IGAD Council of Ministers held in Mogadishu on January 10, adding that the very fact that meeting was held in Mogadishu tells a lot about the improving security situation in Somalia.

Foreign Minister Borge Brende on his part noted that his visit to Addis Ababa is a demonstration of Norway’s commitment for the further strengthening of the bilateral ties with Ethiopia.

He also underscored that Norway stood committed to step up its cooperation with Ethiopia. The Foreign Minister underlined the need for further consolidation of the bilateral partnership of the two countries.

Borge Brende noted that Norway’s Foreign Affairs Ministry is prposing placing Ethiopia among the six focus countries for development cooperation program.

Dr Tedros expressed his gratitude to Norwegian Foreign Affairs Ministry’s decision to make Ethiopia as one of the six priority countries in the country’s development cooperation program. This, he said, would help Ethiopia’s efforts to realize a carbon-free middle- income country status by 2025.

Both sides reached a consensus in jointly pushing cooperation forward in many areas including climate change, education, private sector engagement, trade and investment. (MoFA)

Addis Ababa, 23 January 2015 (WIC) – Melca Ethiopia, a local NGO with a vision to see bio-cultural diversity conserved for a healthy eco-system and sustainable life is helping Ethiopia boosts forest bio-sphere reserves.
The organization which has been able to set aside 238,750 hectares of Sheka zone, as a forest bio-sphere, containing over 300 higher plants, 50 mammals, 200 birds and 200 amphibian species ,out of which 55 plants and 10 birds are endemic is gearing up to help even more forest areas for the benefit of the local population.

The reserve also has 38 big waterfalls, 13 caves, 38 mineral water and hot springs as well as two lakes and a number of sacred natural sites.
It plans in the next few months to have a similar bio-sphere reserve in the Majang zone to augment the nearby Sheka forest reserve.

Dr. Million Belay, Director of Melca Ethiopia which together with local authorities has devised several other bio-spheres, stated at a ceremony on December 27, held in Tep town 609 kms SW of Addis Ababa celebrating the first Sheka and Majang Cultural bio-diversity day that protecting forests is more than meets the eye.

“Bio-sphere reserves aren’t only there to protect forests, but also has other aims such as keeping tradition, as was done with Yayu, Keffa, and Sheka which are UNESCO recognized bio-sphere reserve” stated Belay adding that another aim to conserve this forest is to preserve its indigenous knowledge of the forest and traditional diversity through the generations.
Melca states that out of the 238,750 has of bio-sphere area, 55,255 is classified as a core zone devoted to long term protection of the natural forest, devoid of human interference except for bee keeping, medical plants collection and ritual ceremonies among a select few activities.

While the buffer zone which covers 76,395 has is devoted for both conservation and economic use functions except such as logging, intensive agriculture, investment and hunting are allowed.
The third zone dubbed transitional zone, covering 107,100 has is a development zone where all activities for livelihood of the local community in a sustainable manner can be undertaken.
Belay while stating that bio-sphere reserves have direct benefits such as for lumber, food, yarn and health, they also have indirect benefits too.

These include in keeping rivers running and clean, and keeping temperatures balanced which would without forest presence lead to soil erosion, polluting the river as well as causing erratic weather patterns.
“In the age of climate change, we need lots of flora and fauna species to combat its effect, which are persistent and unpredictable” stated Belay adding that his organization plans to hold the second cultural bio-diversity event in Majang Zone, which is slated to have the next UNESCO recognized bio-sphere with participants from other bio-spheres around Ethiopia to participate to learn and exchange knowledge.

Image: gaiafoundation.org

Turkey’s President Recep Tayyip Erdogan arrived in Addis Ababa, late on Wednesday (January 21) on the first stage of an official visit to countries in the Horn of Africa. President Erdogan is accompanied by his wife and daughter, Emine and Summeye Erdogan, as well as ministers including Deputy Prime Minister Numan Kurtuand, a delegation of officials and businessmen. The President was received by Ethiopian Prime Minister Hailemariam Desalegn and Osman Riza Yavuzalp, the Turkish ambassador in Ethiopia. On Thursday (January 22), President Erdogan held meetings with President Dr. Mulatu Teshome and Prime Minister Hailemariam Desalegn as well as other officials. President Mulatu was Ethiopia’s former ambassador to Ankara. Ewnetu Belata, State Minister of the Government Communications Affairs Office said “”President Erdogan is most welcome in Ethiopia at this time when the partnership between the two countries has reached a record high.” He said “Turkey leads the pack of industrialized countries in terms of foreign direct investment in Ethiopia, with more than 350 Turkish companies operating in Ethiopia to date and they have created jobs to more than 50,000 Ethiopians,” as well as providing for technology and knowledge transfer. According to the Turkish Ambassador to Ethiopia, Osman Riza Yavuzalp, Turkish investment in Ethiopia stands at US$3 billion. President Erdogan’s three-day visit to the Horn of Africa, which will include a visit to Djibouti where he will hold talks with President Ismail Omar Guelleh, is part of Turkey’s efforts to strengthen trade, economic and investment ties in the region. According to Turkish government data, the volume of trade between Ethiopia and Turkey reached US$422 million in 2013, and in the first 11 months of 2014 it was US$360 million, seven percent down on the previous period in 2013. A statement from the Turkish Presidential Palace said Turkey had “increasing economic, trade and investment ties with the countries in the region especially with Ethiopia.” It added that President Recep Tayyip Erdogan’s visit aimed to further strengthen and deepen the continued growth of these business ties as well as long-standing relations with Ethiopia and the region.

Addis Ababa January 20/2015 The number of voters registered during the past 10 days has jumped over 23 million, according to National Electoral Board of Ethiopia (NEBE). NEBE Public Relations Director, Demisew Benti, told ENA that 23,289,852 voters were registered up until Sunday, January 18, 2014. Of the total registered voters, close to 11.3 are female, he said. The registration shows the active participation of voters and the momentum should be kept until the final day of registration, February 12, 2015, the director stated. Some 35 million voters are expected to get registered for the May Election.

Source: http://www.ena.gov.et/en/index.php/politics/item/275-over-23-million-voters-registered-nebe#sthash.dDhywgfh.dpuf

Addis Ababa January 16/2015 Ethiopia will consolidate its efforts to attract foreign investors to the country, Prime Minister Hailemariam Dessalegn said.

Speaking during the inauguration of Heineken’s brewery built with 110-million Euro yesterday, the PM said a sustained effort would be exerted to make the investment potential of the country attractive to foreign investors. The achievements registered so far are encourage, he added.

He further indicated that Ethiopia’s huge investment opportunities coupled with its rapid economic growth and abundant human resource attract foreign investments.

Hailemariam noted that huge companies like Heineken will have a great importance for the country in terms of job creation and supporting the overall economic growth.

The Prime Minister said the government has been playing big role in creating conducive environment to foreign investment by facilitating conditions for the allowing them to import raw materials free of tax.

Heineken International CEO, Jean-François van Boxmeer, on his part said Ethiopia’s rapid economic growth is a factor for the firm’s engagement in the country.

He said the factory will use local barely and support barely growers to improve their productivity through providing technological assistance.

The factory resting on 343 hectares in Addis Ababa has hired 280 employees.

The factory has a capacity to produce 84,000 bottles of beer and 300 barrels of draught beer in an hour, it was learned.

Heineken joined Ethiopia’s beverage industry 4 years ago by purchasing Harar and Bedele brewery factories.

Established some 150 years ago, the Netherlands-based Heineken runs 165 breweries in over 70 countries.

Source: http://www.ena.gov.et/en/index.php/economy/item/267-premier-reiterates-government-s-commitment-to-attracting-foreign-investment#sthash.A1GJc3uc.dpuf

Global clothing retailer H&M has recently placed its first orders with garment manufacturers in Ethiopia. The orders mark an important step in the direction of developing Ethiopia’s economy. A market, where every year an additional 1.4 million young people are looking for a job. “We see potential in Ethiopia, and have therefore started to source on a small scale”, H&M spokesperson Andrea Roos says.

A global company with stores in 56 countries and a competitive edge to its price tags, H&M – formerly known as Hennes & Mauritz – is permanently on the outlook for upcoming garment-producing industries to source its products from. But not only does it draw from such markets, H&M is rather keen to contribute as well. Andrea: “Ethiopia is a country with a huge development and growth potential, and we see that we can contribute to job creation and raise sustainability standards in the textile industry. We have one of the highest sustainability standards of any clothing company in the world for our suppliers. A commitment to our code of conduct is mandatory if a supplier is to enter into a business relationship with us.”

Under construction
Ethiopia is ‘a state under construction’, and its government is keen to usher in foreign direct investment, manufacturing companies and orders placed with Ethiopian producers. Ethiopian ambassador to the European Union, Mr Teshome Toga Chanaka, points out that his government likes to think of its role as creator of a conducive private-sector environment: “We are building infrastructure networks, invest in human resources through education, provide financial support, and are putting a legal framework in place.”

Mr Chanaka continues: “the Ethiopian government wants the country’s growth to be inclusive. We implement ‘pro-poor’ policies as we think it is our responsibility to create opportunities for all segments of society, including the low-income strata. By means of vocational training and a legal framework that protects workers’ rights, we work to make sure that everyone benefits from the investment flows into Ethiopia.”

On H&M’s side, its code of conduct lays out a minimum of requirements for the brand’s suppliers and their subcontractors. The code places restrictions on contractors in such areas as child labour, workers’ safety, compensation, leave and overwork, and promotes workers’ equal rights. Additionally, the documents showcases H&M’s care in handling of chemicals and disposal of wastewater. Andrea: “The suppliers we work with in Ethiopia fulfil our high sustainability standards, and have committed to our code of conduct.”

No predictions about possible expansion
“We believe that H&M’s decision to start sourcing from Ethiopia sends an important message to the international investor community”, says Ambassador Teshome Toga. “The fact that a globally known chain like H&M purchases from Ethiopian manufacturers means that our workforce is capable of meeting the chain’s high-quality manufacturing standards. At this point in time, H&M decided it wants to source from Ethiopia. If in the future it were interested to open a manufacturing facility of its own, the government of Ethiopia would warmly welcome that idea.”

However, H&M’s nascent trade relationship with Ethiopia should not be interpreted to have definite implications for the future, according to Andrea: “We choose not to make any predictions about possible expansion. H&M is an expansive company and we always look for new potential sourcing markets, but this does not mean we will stop buying from existing ones.”

Source: http://www.your-bizbook.com/en/Club-Africa-News/retailer-hm-discovers-attractive-manufacturing-market-ethiopia

Addis Ababa, 20 January 2015 (WIC) – Agricultural growth was the main driver of poverty reduction in Ethiopia since 2000, according to the World Bank Group’s latest Poverty Assessment.

Poverty in Ethiopia fell from 44 percent in 2000 to 30 percent in 2011, which translated to a 33 percent reduction in the share of people living in poverty. This decline was underpinned by high and consistent economic growth.

Since 2005, agricultural growth has been responsible for a reduction in poverty of 4 percent a year, suggesting that the agricultural growth strategy pursued by the Government of Ethiopia has paid off.

High food prices and good weather ensured that increased use of fertilizer was translated into higher incomes for poor farmers with access to markets.

Government spending on basic services and effective rural safety nets has also helped the least well-off in Ethiopia. The Productive Safety Net Program alone has pushed 1.5 million people out of poverty.

“Although Ethiopia started from a low base, its investment in pro-poor sectors and agriculture has paid-off and led to tremendous achievements in economic growth and poverty reduction, which in turn have helped improve the economic prospects of its citizens,” says Guang Zhe Chen, World Bank Group Country Director for Ethiopia.

The pace of poverty reduction in Ethiopia has been impressive, especially when compared with other African countries; only Uganda has had higher annual poverty reduction during the same period. Health, education, and living standards have also improved, with undernourishment down from 75 percent to 35 percent since 1990 and infant and child mortality rates falling considerably since 2000. Ethiopia is one of the most equal countries in the world, and has remained so during this period of economic development and poverty reduction.

“Ethiopia is often unfairly seen as emblematic of poverty and deprivation—but the progress it has seen over the past decade should help change that,” says Ana Revenga, Senior Director for Poverty at the World Bank Group. “If this progress continues over the next decade, Ethiopia can propel itself and most importantly, its people into a new era of prosperity.” (World Bank)