Ethiopia recognized as World Best Tourist Destination

On 25 June 2015, the European Council for Tourism and Trade (ECTT) based in Romania, unanimously selected Ethiopia as the World Best Tourist Destination for 2015 and favorite cultural destination for 2015. Among several countries, Ethiopia has obtained the award in recognition for its tourism potential, acumen reform of tourism industry and indelible cultural and historical patrimony. Similarly, the Council nominated Prime Minister Hailemariam Desalegn with the Academician-Honorary Member of European Tourism Academy award, for his determined leadership role in promoting tourism as a tool for economic development of Ethiopia.

As per the press release of the Council, the recognition was awarded after a report entitled “Ethiopia: the perfect cultural destination; the land chosen by God!” was presented by Prof. Dr. Anton Caragea, President of the Council. The report describes the successful efforts of Ethiopia in becoming a major tourist destination, through “the excellent preservation of humanity landmarks”, such as the ruins of the city of Aksum, Fasil Ghebbi, Harar Jugol, Lalibela, Konso Cultural Landscape, the Lower Valley of the Awash, the Lower Valley of the Omo, registered as UNESCO World heritage monuments. It has also been indicated that sites such as the Sheik Hussein religious, cultural and historical site, Melka Kunture Paleolithic site, Gedeo Cultural and Natural Landscape, Bale Mountains National Park and the Sof Omar Cave are prominent tourism landmarks of Ethiopia.

Prof. Dr. Anton Caragea further stated that the Government of the Federal Democratic Republic of Ethiopia, recognizing the importance of tourism as a key facilitator for development, created an exemplary institution known as Tourism Transformation Council to properly handle the promotion and management of Ethiopian tourism.

Established in 2006 and based in Bucharest (Romania), the European Council on Tourism and Trade is a leading world and regional tourism organization, representing a market of 800 million customers from all around Europe with members and delegations in 28 countries. As a driving force in the international promotion of tourism, it is selecting the world leaders and countries to become a part of the structure and to raise a unified voice and position on the global tourism agenda. Ethiopia is the eighth country to be nominated by the Council. The Council awarded Turkey in 2007, Syria in 2008, UAE in 2009, South Korea in 2010, UAE in 2011, Trinidad and Tobago in 2012, Laos in 2013, and Zimbabwe in 2014. Its motto is “Offering to European Union tourists special destinations, safe trips, advises and knowledge. Offering fair trade and fair tourism guarantees.”

The awarding ceremony will be held in the presence of Prime Minister Hailemariam Desalegn and several dignitaries on 10 July 2015 at the National Palace followed by a colorful cultural music show. The Delegation, led by the President of the Council, is also expected to visit the Cultural and historical tourism destinations of Ethiopia as part of a familiarization trip.

The award is expected to promote Ethiopia’s tourism destination on the European stage and enhance the government’s effort of lifting up the country to the top five tourist destination in Africa. In the Second Growth and Transformation Plan (GTP), the government aspires to collect USD 6 billion from 2 million tourists. In the performance of the first GTP, the number of influxing tourists was 770,000 and USD 2.9 billion revenue has been generated.

Copyrights: © Embassy of Ethiopia, Brussels & European Council on Tourism and Trade

Ginbot 20 colorfully celebrated in Brussels

The Ethiopian Embassy in Brussels colorfully celebrated the 24th anniversary of Ginbot 20 on 30 May 2015 together with many Ethiopians and people from Ethiopian origin living in the Benelux countries. Ginbot 20 anniversary commemorates the fall of the dictatorial regime in 1991 and the establishment of a federal democratic system in Ethiopia.
In his statement, H.E. Ambassador Teshome Toga, Ambassador of Ethiopia to the European Union institutions, Baltic and Benelux States recalled the martyres who sacrificed their life to give Ethiopia a chance to development and democracy. The representative further underlined that this Ginbot 20 celebration is particularly important, as it comes both immediately after the successful election held on 24 May 2015, and also just at the time of the completion of the first edition of the Growth and Transformation Plan.
The 24 May 2015 election has been a success: the Ethiopian people could elect their representatives in a civilized and calm atmosphere by using democratic rights without having to suffer from illegitimate interference. Despite attempts by some groups to undermine the peaceful process, the electoral steps were well- managed and the people was committed to a transparent and fair election. These democratization achievements have been noted by the National Electoral Board of Ethiopia. The results of the election show that the incumbent Government received the people’s confidence to continue its development and democratization policy. The Government is ready to lead the country into these transformations.
The Ambassador also underlined that these positive achievements are not to be separated from the good relations Ethiopia is enjoying with its neighbors and international partners. Ethiopia’s foreign policy is based on equality and mutual benefit. In return for this open and fair stance, the country is recognized by the international community as a major and reliable partner.
Ambassador Teshome finally underlined that the Government is not only designing policies that are benefiting the people in Ethiopia, but also the diaspora living abroad. Reciprocally, the diaspora is strongly contributing to the country’s development and democratization process. The members of the diaspora were thanked for this outstanding commitment and welcomed to further engage for the country’s Renaissance.
In a Q&A session, the recent diaspora housing program was presented and discussed. After the celebration, traditional Ethiopian food was served to the participants.
To get a glimpse fo this colorful event, please watch our video! https://youtu.be/9EZb5Pg6yEo
© Embassy of Ethiopia in Brussels, 2015

US Extends Ethiopia’s Agoa Market Access for 10 Years

The Ethiopian Investment Commission Director General Fitsum Arega recently said Ethiopia has been given another 10 years extension opportunity for accessing US market duty and quota free.

He also said that African Growth and Opportunity Act (AGOA) has been extended which is big news for the country. “I congratulate those companies which are manufacturing in Ethiopia and supplying to the American market. And we are grateful to the US government for allowing the extension” he added.

“In the past we haven’t utilized the opportunity to the maximum extent. But we believe in the years to come the Commission will work with other ministries on the construction of industrial parks to attract and allow more manufacturers to settle and manufacture in Ethiopia and access American market through the AGOA opportunity” Fitsum added.

“The relationship we have with the US government is so good that Americans want us to grow and access their market.”

He said that Ethiopia is also accessing European market tax free and without quota limitation as well.

It was learnt that AGOA was going to phase out in December 2015 but the US government allowed its extension for Ethiopian manufacturers to export tax and quota free.

A peaceful and successful General Election

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 Plans Export Hubs With $10 Billion Factory Parks

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

World Bank says Ethiopia’s economy to grow 10.5% in the next fiscal year

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.

Sudan reiterates Ethiopia’s right in using water resources

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)

The wine sector in Ethiopia

castel-winery 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.

Ethiopian tourism night successfully held in Brussels

The Ethiopian Embassy in Brussels has organized an Ethiopian tourism night event on 5 May 2015 to promote the untapped tourism potential and to build the image of Ethiopia‬ in Europe. At the event, the Embassy welcomed fifty tour operators, investors, journalists and other professionals of the tourism sector at the Euro Press Club in Brussels. The Ethiopian tourism night aimed at presenting the possibilities and opportunities that Ethiopia is endowed to attract more tourists and visitors to discover this great land of ancient culture and unique natural scenery.

At this occasion, H.E. Ambassador Teshome Toga stated that Ethiopia has changed for the better to bring value to its multifaceted assets, ranging from an exceptionally rich culture, history and nature to a dynamic economy and a rapidly developing infrastructure. Ambassador Teshome Toga also updated the attendees on the recently formulated Ethiopian tourism development policy and various tourism facilities with the goal to accelerate the development of the sector and attract potential European tourists. A new Ethiopian Tourism Organization was created with the aim of developing and promoting touristic activities. The ambassador encouraged all Benelux tour operators to take advantage of Ethiopia’s tourism potential and to incorporate Ethiopia in their tour package as one of their destinations. He further underlined that the Embassy is here to facilitate the link with Ethiopian tour operators and assist them in any possible way to that end.

As an early and faithful traveller to Ethiopia, Chris Aelbrecht, Product Manager of SENSATIONS, TRAVEL DESIGNER, also gave his thoughts about tourism opportunities in the country. He witnessed one of his favorite spots in Ethiopia, the Simien mountains, which is endowed with “very impressive sights”. He warmly invited other tour operators to include a visit of these mountains and other tourist destinations of Ethiopia in their tour packages. According to him, the country has developed a lot since the 1990s. Today, tourists enjoy a high standard of confort and good accommodations during there trips in Ethiopia. One further strong points of Ethiopian tourism are the very highly trained guides, he further stated.

The colorful event also gave the guests a chance to discover the authentic and organic Ethiopian cuisine, raw and roasted Ethiopian coffee as well as several Ethiopian wines and beers. Live traditional dances and a fashion show were met with enthusiasm by the guests, which were thereby provided further insights of the multifaceted potentiel of Ethiopia as a touristic destination.

The event was generously sponsored by Unibra, which is about to launch Zebidar, a new beer company in Ethiopia.

© Ethiopian Embassy in Brussels 2015 // / Bruno Mariani/Press Club Brussels