Sudan’s military council accepts AU-Ethiopia proposal

Sudan’s ruling military council has said a proposal submitted by the African Union (AU) and Ethiopia received on June 27 is suitable for the resumption of talks with the opposition on a transition to democracy.

The generals of the ruling Transitional Military Council (TMC) and the opposition coalition have been wrangling for weeks over what form Sudan’s transitional government should take after the military deposed long-time president Omar al-Bashir on April 11.

Mediators led by the AU and Ethiopia’s Prime Minister Abiy Ahmed have since been trying to broker a return to direct talks between the two sides.

On June 27, they presented a joint proposal to both sides after the TMC rejected a previous Ethiopian proposal and called for mediation efforts to be unified.

A draft of the AU-Ethiopia proposal suggested few changes from a previous Ethiopian plan that a coalition of protesters has endorsed.

A number of points have emerged around it, but in general it is a suitable proposal for negotiations to reach a final agreement leading to the establishment of the institutions of a transitional rule,” TMC spokesman Lieutenant General Shams al-Din Kabashi said on Friday.

He said the TMC was ready to resume “immediate, serious and honest” negotiations.

The joint proposal provides for a sovereign council that would oversee the transition, made up of seven civilians and seven members of the military with one additional seat reserved for an independent member. The balance of membership of the council had been the sticking point during weeks of talks after al-Bashir’s removal.

However, the make-up of a legislative council would only be decided after the agreement was signed. In previous drafts, the Freedom and Change opposition alliance was to make up two-thirds of that council.

Al-Bashir ruled Sudan for nearly 30 years before he was unseated following a deepening economic crisis and 16 weeks of street protests.

Sudan’s stability is seen as crucial to a volatile region straddling the Middle East and Africa.

Coca-Cola to Invest $300 Million and set up a new factory in Ethiopia

Coca Cola is planning to set up a $ 70 million new factory in Ethiopia as it celebrates its 60th anniversary in the country. According to Burno Pietracci, general manager of the East and Central African Franchise, the Coca Cola Company has decided to expand its outlay and promote Ethiopia as a destination for other potential foreign investors.

The beverage firm and its shareholders are also planning to invest USD 300 million in the country in the coming five years. The new plant will have a manufacturing capacity of 70,000 cases per day.

The company broke ground on the new plant on June 20. Located in the town of Sebeta, 25 kilometers from Addis Ababa, it will be the biggest bottler and the fourth of its kind in Ethiopia once it is finalized early next year.

The fifth plant is planned to be set up in Hawassa, capital of the Southern Regional State.

The first Coca-Cola bottling plant was established in Addis Ababa in 1959 with a capacity of bottling 36,000 plastic bottles (PET) per hour, while the second was installed in Dire Dawa in 1965.

Reports said that East African Bottling Share Company (EABSC) launched “vision 2020” where it will become energy self-sufficient; and during the same year, the company set plans to reach 100 million unit cases, that will put Ethiopia on par with Egypt and South Africa.

Coca Cola entered the Ethiopian market in 60 years ago and the company is currently stated to employ 2,200 local jobs.

Ethiopia has become a haven for most foreign investors with many companies relocating their manufacturing plants from countries such as Turkey, India, and China to Ethiopia.

EU To Provide €40b In Grants To Help Create Jobs In Africa

The European Union Commission fully supports the African Continental Free Trade Agreement (AfCFTA) and is proposing a 40 billion Euro package to attract investments that would create at least 10 million jobs in Africa.

This was revealed by Ambassador Ranieri Sabatucci, the EU Ambassador to the African Union, in an opening address to a two-day Horn of Africa AfCFTA forum focusing on the pharmaceutical industry.

“As was highlighted by EU Commission President Jean-Claude Juncker, in his state of the union speech in September last year, referring to the AfCFTA, he expressed the wish that the long term perspective is to create a comprehensive continent-to-continent free trade agreement between the EU and Africa,” he said.

He said to prepare for this, economic partnership agreements, free trade agreements, “including the deep and comprehensive free trade areas and others in the countries north of Africa and other trade issues with the EU should be exploited to the greatest extent as building blocks to the benefit of the AfCFTA.”

The ambition is to increase African exports and to attract investment, including in the manufacturing and processing sectors and to encourage the creation of regional value chains through flexible rules of origin.

“To support this, a massive support of 40 billion Euros of grants under the new Africa-European Alliance for Jobs and Growth is proposed as from 2021 to 2027 to, among others, attract investments that would create 10 million jobs in Africa,” he said, adding the EU will continue to increase its support to Africa in that regard.

Mr. Sabatucci said the AfCFTA has an extraordinary potential to be economically transformative for Africa by creating the world’s largest integrated common market since the establishment of the WTO.

“Our support for the AfCFTA has a lot to do with our history. It was through the establishment of the free trade area and customs union and the single market that the last 60 years have become the longest period of peace, economic growth, and prosperity in our continent,” he said, adding real work begins now since the AFCTA came into force on 30 May.

Mr. Sabatucci said that a stable Horn of Africa was important for regional and Africa’s economic integration. Speaking at the same forum, Economic Commission for Africa (ECA) Executive Secretary, Vera Songwe, said that Africa’s pharmaceutical industry was a good example of what the AfCFTA can deliver for the continent.

Worth $20.8 billion in 2013, the industry is predicted to be $64 billion in the next ten years, creating over 16 million jobs in the process, according to a press release issued by ECA.

Ms. Songwe said this would also lead to the creation of regional and continental giants and prosperity.

“The AfCFTA is an economic development program anchored around creating regional and continental champions, accelerating infrastructure development, energy and harmonizing Africa’s integration platforms. We must now move with speed to implement the AfCFTA and reap the benefits of the agreement,” she said.

Ms. Songwe said East Africa with at least 600 million people was one of the fastest growing regions on the continent, but that growth has not yet translated into poverty reduction and prosperity.

She emphasized that it is vitally essential for African countries, especially those in the Horn, to maintain peace and stability as a prerequisite for strengthening private-sector development and boosting intra-African trade.

“We believe that trade and integration will be one of the solutions to the challenges in the region,” she said.

Thousands of Mourners Gathered in Addis Ababa, Bahir Dar, and Mekelle to Pay Tribute for Slained officials

Thousands of mourners gathered at the Millennium Hall in Addis Ababa on June 25 to pay tribute for the Chief of Staff of Ethiopian Defense Forces, General Seare Mekonnen and his associate retired Major General Gezae Abera.

The memorial ceremony was conducted at a federal level at Millennium Hall in the presence of President Sahlework Zewdie, Prime Minister Abiy Ahmed, Speakers of the Houses of Peoples’ and Federation, religious leaders, Ministers and senior civil and military officials and the public.

Prayer and benediction were held at the hall by Abuna Matthias, Archbishop of the Ethiopian Orthodox Church.

On June 22, three top officials of the Amhara Regional State were killed when they were on a meeting in the city of Bahir Dar in an assault allegedly conspired and orchestrated by the former Head of Peace and Security of the region, Brigadier General Asaminew Tsige.

General Seare and Major General Gezae were assassinated at the home of the Chief of Staff by his guard in Addis Ababa, after a few hours of the attack in Bahir Dar.

Asaminew Tsige, who was suspected of orchestrating the failed “coup attempt” on Amhara Regional State, and killing of regional and federal officials, was shot dead on Monday in the vicinity of Bahir Dar City.

Asaminew had been jailed for seven years for alleged coup plot and was among thousands of prisoners who set free on amnesty following the sweeping reforms led by Prime Minister Abiy Ahmed recently.

General Seare Mokonen was born in 1962 in North Western Zone of Tigray Regional State and survived by a son and daughter.

The funeral ceremony for officials of the Amhara regional state and senior army generals was held at St. Gabriel churches in the cities of Bahir Dar and Mekelle respectively on June 26 in the afternoon.

The burial ceremony in the city of Bahir Dar was held in the presence of Deputy Prime Minister Demeke Mekonnen, Ministers, higher officials, members of the families of the deceased and government representatives from Eritrea and Sudan.

On the funeral ceremony, Deputy Prime Minister, Demeke Mekonnen said the heinous killing of the leaders is a barbaric act that is incompatible with the stature of the peoples in Amhara Region and that of entire Ethiopia.

He called upon the peoples in the region to stand together and work towards the fulfillment of the vision upheld by the martyrs.

The funeral service for the slain Chief of Staff, General Seare and his associate retired General Gezaie was held in the city of Mekelle, the capital of Tigrai Regional State on June 25.

Deputy Chief Administrator of Tigrai Regional State, Debretsion Gebremichael, on the burial ceremony said that the death of the heroes does not hamper the development and democratic journey in the country.
He called upon the public to sustain the vision upheld by the deceased heroes.

“Our Reform Aims at Creating New Hope for Ethiopia, Not a Cloud on the Horizon”: PM Abiy

Prime Minister Abiy Ahmed said that the ongoing sweeping reform aims at creating new hope for Ethiopia instead of a cloud on the horizon, referring to the recent attacks on regional and federal officials.

The Premier expressed his condolences to families, friends, and colleagues of the deceased, who lost their lives during the Bahir Dar and Addis Ababa attacks.

Five people, including Chief of Staff of the Defense Forces and Chief Administrator of Amhara regional state, were killed in an attack that police said is orchestrated by the head of the regional state peace and security.

“We may accept deviating ideas as long as they are useful to transform the country,” Abiy said, and stressed, “but we will neither compromise nor tolerate on matters of national unity, sovereignty, and pride which threaten to cause grief of the nation.”

“Our reform measures are to create new hope for Ethiopia which can be a pacesetter for Africa and not a cloud on the horizon,” Prime Minister Abiy Ahmed said.

Noting that nothing supersedes the cardinal interests of the nation and its people, the Premier underlined that patience would be employed for the sake of democracy and peace; however, he said stern measures could also be taken to effectively protect the nation and its people.

Prime Minister Abiy described the martyrs as “strong, determined to serve their country, diligent in accomplishing their objectives and have proved to be Ethiopia’s decisive personalities in times of hardship.”

He also praised the never changing valor and unflinching stance of the national defense forces, the police and members of the security forces in their continuous efforts to ensure the country’s peace and stability with utmost tenacity and discipline.

He urged them to pursue the same selfless commitment in their future endeavors.

The Premier stressed that “we say killing is losing as we understand that difference in ideas and political opinion can get hegemony through ideas, not gunfire.”

Abiy said it is evident that the attackers had three objectives, including derailing the reform by assassinating the change agents, creating mistrust among the people, and putting the nation into chaos by dismantling the defense forces.

However, they didn’t manage to succeed. Through their transcended sense of unity, Ethiopians have been able to foil the conspiracy of the perpetrators, he said.

“We will not be able to accomplish the objectives of our comrades and hoist our flag if we continue to cry our eyes out,” he said, “instead we should look into the matter in depth.” “We will learn from our shortfalls; we will close all loopholes to intruders,” he said and stressed, “our journey will not be curtailed and our goals shall never be reversed.”

Update on the Security situation in Ethiopia

On June 22, 2019 evening, HE Dr. Ambachew Mekonnen, President of the Amhara Regional Government, and HE Ezez Wassie, Amhara Regional Government Office Advisor, were killed during an attempted coup. The situation is under the full control of the Federal government in collaboration with the Regional government. Please read the press release from the Prime Minister’s Office for further details on this tragic news. 


Ethiopia 2019/20 coffee exports to rise to record high -USDA

Ethiopia, Africa’s top coffee producer, is expected to export a record-high 240,000 metric tons of coffee in 2019/20, the U.S. Department of Agriculture attache in Addis Ababa said, as yields improve and the area dedicated to coffee farming increase.

Production of coffee is expected to rise to 7.35 million tonnes in 2019/20, an 1.4% increase from the 2018/19 season.

Exports account for just over half of overall production and are forecast to grow 0.5% in 2019/20 from the previous year to reach 4 million 60-kg bags. Coffee is Ethiopia’s most important export.

Exporters in the country are facing increased regulation, with the government banning several exporters in recent months for defaulting on their contracts and hoarding beans.

While supplies are greater this year thanks to higher yields due to better rains and the reduced prevalence of disease, the USDA’s forecasted yield of 0.82 tonnes per hectare comes in well below the government’s target of 1.1 tonnes per hectare, the report noted.

And production continues to face the broader threat of farmers switching to other crops.

“One of the major challenges the Ethiopian coffee sector is facing is that many coffee producers, mostly from the eastern part of the country are tearing out the coffee bushes and replacing them with khat, a plant with stimulant properties,” the USDA said.

Meanwhile, domestic demand in Africa’s top coffee consumer is expected to remain robust, with the USDA expecting Ethiopian consumption to rise by 2.4% in 2019/20 compared to 2018/19.

Ethiopia secures $40 million to conduct upcoming elections

Ethiopia and the United Nations Development Program (UNDP) signed on June 18 a project document to support the upcoming national elections.

The agreement was signed by Ahmed Shide, Minister of Finance, Birtukan Mideksa, Chairperson of the National Electoral Board of Ethiopia, and Mr Turhan Saleh Resident Representative of UNDP in Ethiopia.

The project is going to be implemented by the National Election Board of Ethiopia for the coming three years with the resource mobilized through UNDP.

The total required fund for the project is $40 million, out of that $34.6 million is a pledge to be funded by various development partners, $2 million is secured by UNDP itself and $3.3 million is to be mobilized during the project period.

The development partners that contribute for the project are 11 bilateral countries, of which 8 of them have confirmed their support.

The main objectives of the project are to assist the electoral management body to become more capable, transparent and trusted institution; and provide the required assistance for undertaking inclusive, transparent and credible elections.

The intervention areas of the project include institutional strengthening for ensuring transparency, efficiency and inclusiveness of the electoral operations, facilitating public outreach as well as stakeholder and media engagements; and capacitating the institution to identify, manage and respond to electoral violence.

The government believes that the support will have crucial contribution to underpin the auspicious steps that the new leadership is taking in order to flourish democracy based on mutual respect and trust.

Ethiopia inaugurates toll road linking with Djibouti

The Dire Dawa with Dewale toll road, which became partly operational earlier this year, is expected to facilitate the export-import trade of Ethiopia. The upgrading of the previously gravel road into asphalt toll road has reduced the journey time from Dire Dawa to Dewele to four hours from ten hours.

The new road, which was built with a total government investment of 5.2 billion birr (about $ 180.5 million), is part of the express road linking Djibouti with Addis Ababa. The new express road is the second segment to be completed after the Addis Ababa – Adama Express road.

Ethiopia and Djibouti have been connected by the new Addis Ababa–Djibouti Railway since last year. Before that, Djibouti and Ethiopia were had been connected by the – Chemin de Fer Djibouto-Éthiopien, which was inaugurated by Ethiopia’s Emperor Menelik II in 1901.

Ethiopia and the World Bank Sign $500m Grant Agreement for the environment

Ethiopia and the World Bank signed a $500 million grant agreement on June 15. Ahmed Shide, Ethiopia’s Minister of Finance, and Ms. Carolyn Turk, World Bank Country Director for Ethiopia, signed the agreement at a ceremony held at the Ministry of Finance.

The grant will be used to finance the implementation of climate action through landscape management program, a program aimed at increasing adoption of sustainable land management practices and expanding access to secure land tenure in non-rangeland rural areas of the country.

The program is a 5-year sectoral budget support program with a results-based approach, according to the Ministry of Finance

It will support the government to scale up participatory watershed and land management activities in order to reduce land degradation and rural land tenure security.

The program will make consideration for the equitable inclusion of all beneficiaries in the watershed users associations, including vulnerable groups such as landless, youth, elderly, and female-headed households.

The program also provides a mechanism to incentivize the roll-out of institutional reforms for participatory watershed management and land administration.

About 50 percent of Ethiopia’s highlands are currently defined as degraded with declining productivity. It is costing the country about 2 to 3 percent of its annual agricultural GDP, she added.

According to Ms. Turk, investing in land resources is vital to build resilient and equitable economic growth, as well as protect all of the works done so far.