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)

A new Heineken factory opened in Ethiopia on 15 January 2015. During the opening speech, the local Managing Director Johan Doyer said that over 800 locals will be employed in the building of the Heineken brewery. Moreover, about 200 additional workers will be needed for external operations, and 6,000 farmers (a growing number expected to reach 20,000) will supply barley to the factory. Ethiopian Prime Minister Hailemariam Desalegn, present at the opening event, said in his remarks that “Heineken’s investment is a testament of the confidence of foreign investors in this country”. The new brewery will initially focus on local brands Hamar and Bedele, but could start producing the premium Heineken brand next year.

This facility is the third brewery of Heineken in Ethiopia, where the group already invested near to 300 million euros. Worth 110 million euros, the facility has a capacity of 1.5 million hectolitres and is the largest in the country. During a video interview for CNBC Africa last May, Jean-Francois van Boxmeer, CEO of Heineken International, explained that Africa was the fastest-growing region for the group and accounted for 20 percent of its revenue. The investments of the group are therefore focused on this continent, where Heineken is present since the 1920s. Today, Heineken owns 57 breweries and plants in Africa and is selling beer in the majority of African countries.

Special thanks to the Dutch Embassy in Ethiopia for the picture and for providing us with information. Other sources: Reuters, CNBC Africa.

Italy’s Foreign Minister, Paolo Gentiloni, arrives in Addis Ababa for an official visit to Ethiopia. Foreign Minister Dr. Tedros extended a warm welcome to Paolo Gentolini upon his arrival at Bole International Airport, this afternoon (January 14, 2014). Paolo Gentiloni made Ethiopia its first stop in his tour to Africa. Following the welcoming ceremony, two Ministers held discussion on range of matters dwelling on multilateral, regional and bilateral issues of common interest. The two sides hailed the strong bilateral relations between the two countries and underlined the need to further deepen and broaden areas of cooperation for mutual benefit of the two peoples. Particularly, the two sides exchanged views on increasing trade and investment volumes and boosting economic cooperation between the two countries. Dr. Tedros emphasized that the trade and investment volume between the two countries should be enhanced complimenting the excellent bilateral relation in other areas of cooperation between the two countries. They also highlighted the need for strengthening partnership in realizing regional peace and stability. Dr. Tedros expressed his appreciation to Italy’s support to regional peace efforts as current chair of IGAD’s International partners Forum. Minister Paolo Gentiloni for his part expressed his admiration to Ethiopia’s dynamic role in stabilizing the Horn of Africa and active support to IGAD-led peace process in South Sudan and in defeating Al Shabaab in Somalia. He also noted Ethiopia’s significant role in combating terrorism within the sub-region. The two Ministers also underlined the need for strengthening cooperation in tackling challenges associated with migration and mobility of people. Upon the conclusion of the discussions, the two Ministers signed bilateral agreements, aimed at bolstering cooperation on Culture, education, art, scholarships, archives, museums libraries, archeology, conservation and protection of culture heritages.

Source: mfa.gov.et

Addis Ababa January 12/2015  Ethiopian Diasporas who are interested to invest in their home country are welcome and the government will extend necessary support to make their projects successful, the Government Communication Affairs Office said.

While discussing yesterday with representatives of the Diaspora who are desirous to operate in Ethiopia, the Minister Redwan Hussein said the government is committed to address challenges the Diasporas are facing during the process and implementation of projects.

He explained to them the need for the Diasporas to work with the government to solve challenges and enhance the overall development of the country.

The Ethiopian Diasporas are willing to invest in their home country and contribute for the development, Israel Gedebu said representing the 300 Diasporas who are interested to invest here.

The Diasporas who have been seeing the country’s journey towards development as an outsider are decided to be part of it, he added.
Source: ena.gov.et

Addis Ababa, 13 January 2015 (WIC) – Political parties said they would field many female candidates in the upcoming general election.

National Electoral Board of Ethiopia (NEBE) said on its part it will provide special financial support for parties that field women candidates.

The parties that say they would field many female candidates are Coalition for Unity and Democracy (CUD), Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) and New Generation Party (NGP).

CUD Public Relations Head, Sasahuleh Kebede, told ENA that his party would field many female candidates at national and regional levels.

Series of training have been given by the party so that women could become strong competitors in the election, he said.

Coalition for Unity and Democracy Unity party has also put emphasis on recruiting female mobile and permanent observers, according to Sasahuleh.

EPRDF Public and Foreign Relations Head, Desta Tesfaw, said on his part the participation of women at the various councils is low due to the neglect of the the rights of women during the past systems.

He therefore claimed that his party is implementing the various compensatory tactics to narrow the gap.

Desta, who recalled the huge role women played in ousting of the dictatorial regime, added that many will take part as candidates in the upcoming election.

Since the Ethiopian Peoples’ Revolutionary Democratic Front believes in the crucial role women have played in the consecutive economic growth registered by the party, policies and laws issued were made to benefit women, besides building their capacity, the head added.

In the upcoming election, 40 percent of EPRDF’s candidates at federal level would be women and 50 percent at regional level, according to Desta.

New Generation Party (NGP) President, Asfaw Getachew, said opportunities would be created for women to take part in the election as they comprise half of the population.

According to the president, 35 percent of the total 280 candidates to be fielded by the party across the country are female.

National Electoral Board of Ethiopia (NEBE) stated on its part that it will provide special financial support for political parties that field women. (ENA)

Addis Ababa: January 12, 2015 (FBC) – Since registration of voters for the upcoming May general election officially commenced last Friday, a reported 3.5 million people have registered in just three days.

Across the nation, some one million people registered on the first day of registration, according to the National Electoral Board of Ethiopia (NEBE).

Deputy Chairperson of NEBE Addisu Gebrehiwot (Ph.D.) told fanabc.com that latest figures show that 3.5 million voters have registered to cast in the upcoming ballot. The number of voters who registered on the first day exceeded all expectations, he added.

Some voters’ registration stations had to access their stocks in issuing cards to prospective voters.

The high turnout in the registration is indicative of the public’s readiness to exercise its democratic right of voting, said Gebrehiwot and called on all eligible citizens to register in the stated time frame.

All 45,000 voters’ registration stations will provide registration services until February 19, 2015.

Addis Ababa, 6 January 2015 (WIC) – Almost all of Ethiopian regional states have finalized their Diaspora housing program directives and are preparing to start the housing program registration.

Representatives from the regional state Diaspora offices with Ministry of Foreign Affairs Diaspora Engagement Affairs General Directorate held a meeting on the Diaspora housing development program progress review on December 12, 2014 at the Ministry of Foreign Affairs (MoFA).Progress on the preparation of directives by the regional states, finalization and standardization of the program were the meeting agenda, according to Feisel Ali, Diaspora Engagement Affairs General Directorate director.

The regions shared experiences on the issues and drew important ideas to incorporate to their directives from the meeting, stated Abreham Gebremedhin, Tigray Diaspora Coordination Office head.Model registration procedures are sent from the Ministry’s Diaspora Directorate to all the regions, which the regions adopt based on their region’s area, land lease price, standards of urban areas where construction will take place and construction cost, explained Fiesel.

Almost all regional states have completed their directives, except Harari, Benishangul Gumuz and Afar, said Fiesel.In Addis Ababa only, apartment houses are planned to be built, according to Addis Ababa’s Diaspora Housing Development Directive. The apartments can be a G+4 or above but if the construction is taking place in the central zone of the city only a G+12 and above apartment building are allowed, according to Tesfa Bisrat, head of Diaspora Coordinating Desk with the rank of assistant advisor to the mayor.The apartments will be built in group that contains either 12 or 24 members and 50sqm of land is allocated for each member for the house, stated Tesfa.

The Tigray regional state completed and approved its Diaspora housing directives in June 2014, according to Atakilt Gebreyhiwot, Tigray Urban Development, Trade and Industry Bureau director. We have outlined an initial directive on how to proceed with the housing program but the directives can be improvised based on the interests of the house buyers as well as important guidelines we would like to include in the directive, stated Atakilt.

Tigray has planned to include apartment housing with two floors or above in all parts of the region, he said. The houses can be two, three or four bedrooms houses, according to the directives. The two bedrooms house will rest on 60sqm-80sqm with the price tag of 424,390Br. The three-bedroom house will cost 573,500Br and rests on 80sqm-100sqm. The four-bedroom house will rest on 100sqm-136sqm with the cost of 779,960Br.

Another region, which has already completed its Diaspora housing directives, is the Oromia region. The region has included in its directives an apartment as well as town housing program, according to Bayissa Hirko, Oromia Industry and Urban Development Bureau, senior expert of housing transfer and administration.

The apartment will be G+4 or above, having two, three or four bedroom houses, he added. The two-bedroom house will rest on 80sqm land and costs 400,000Br, where as the three-bedroom will cost 550,000Br and rests on 100sqm land; the four bedrooms will be built on 110sqm land and will cost 700,000Br. The town houses will have a G+1 and G+2 format and will be built on 120sqm and will cost 500,000Br and 800,000Br respectively, explained Bayissa.

The Southern Nations, Nationalities & Peoples’ Region (SNNPR) has categorized its urban areas in different levels, with Hawassa as a leading city. The rest are categorized as high-level, mid-level, town and developing towns, according to Aschalew Kassaye, SNNPR Industry and Urban Development Bureau, housing development and administration. The distinction was made based on population number, area, economy and service provision of the towns, explained Aschalew.

An apartment and a town house are to be built in the region, according to the directive. Only G+4 and above apartment houses will be built in Hawassa with two, three or four bedrooms which rest on 50sqm, 65sqm, and 80sqm respectively while a G+3 apartment will be built in high-level towns. The apartment houses can be two, three and four bedrooms, which will rest on 55sqm, 70sqm and 85sqm of land, respectively. Only G+1 and G+2 town houses can be built in mid-level towns that have two, three or four bedrooms and built on 60sqm, 75sqm, and 90sqm, accordingly. For the developing towns only the construction of a single storey town house construction is allowed, stated Aschalew. It will have two, three or four bedrooms, which rest on 65sqm, 80sqm and 90sqm of land respectively. But cost decisions will not be finalized until January 9, 2015, he added.

Dire Dawa has only planned the construction of G+2 and G+3 town houses, according to Sebsibe Mekonnen, the city’s Diaspora affairs coordinator. The houses will have two, three and four bedrooms, which rest on 128sqm, 160sqmand 200sqm, respectively, with 582,400Br, 728,000Br, and 910,000Br cost.

The payment will be made in hard currency, 50pc upon registration and the rest when construction begins, according to Feisel. An Ethiopian Diaspora who has never owned a house by his name or through his relatives can register for the program. It is possible to register collectively forming 12-24 members, stated Fiesel. The home buyers can come up with their own design but as for hiring a contractor of their choice, some regions’ directive compels them to hire only government contractor.

The directives are a work-in-progress, which could be modified based on the discussion, stated Sebsibe. We are trying to come up with standardized and similar directives and most of the directives reflect this, stated Fiesel. The directives, which are collected from the regional Diaspora offices, have been distributed to Ethiopian embassies. When all the regions complete the preparation, then we can proceed to the registration phase as we are now completing the work plan schedule, added Feisel. (Addis fortune)

Addis Ababa, 5 January 2015 (WIC) – Ethiopians around the world are striving for the realization of the Grand Ethiopian dam being built along the Nile, Office of the Council responsible for resource mobilization said.

The government through the national council established to mobilize resources I n and out of the country has been striving to raise funds for the dam, which Ethiopia declared to build using its own sources.

Resource mobilization has been undertaking parallel with the construction of the dam since construction has begun years ago.

According to Zadig Abreha, Deputy Director of the Office, those efforts has brought promising results and Ethiopian across the globe are continued to extend their support.

Ethiopians in and out of the nation has extended over 6 billion Birr for the dam, of which 4.92 billion Birr or 82 percent gained in donation, while the balance is from bonds.

Raising funds through mobile SMS is another means the Council is using to get more funds locally. The Council has received over 14 million SMS worth at 42 million Birr over the past three months, Zadig said. The Council expects 60 million Birr from the program lasting for six months.

Ethiopian Diasporas are supporting the Dam through finance, said Teferi Melese Diaspora Research Information Director.

The Diasporas have purchased bonds worth at over 565 million Birr; Ethiopians residing at Arab countries have the lion’s share in terms of contribution. (ENA)