Between July 26 to 28/2015, the first sitting President of the United States of America, Barack Obama, made a three-days visit in Addis Ababa, Ethiopia. During his stay, the American President held talks on bilateral and regional issues with the Prime Minister of the Federal Democratic Republic of Ethiopia. He also met with the President Dr. Mulatu Teshome. He made a historic speech at the African Union on a range of issues that includes human rights, good governance, democratization, etc. During his bilateral consultation with Ethiopian officials, both sides have agreed on several issues, including geothermal power generation, cooperation in the field of intelligence, fight against terrorism, on trade and investment, institutional capacity building and human rights.
After the bilateral discussions on 27 July 2015 the Ethiopian Prime Minister and the American President gave a press conference. President Barack Obama said, he was proud to be the first sitting US President visiting Ethiopia. “My visit reflects the importance the United States places on our relationship with Ethiopia and all the nations and peoples of Africa”. Ethiopia and the United States of America share a longstanding friendship for more than 100 years, and connections between the peoples of the two countries are deep, he said.
The American President pointed out that Ethiopia is one of the fastest-growing economies in the world and one of the biggest economies in Africa. In the past 15 years, Ethiopia has lifted millions of people out of poverty. This economic performance forced the US to shift its strategy from just providing aid to strengthening economic cooperation. With the recent renewal of African Growth and Opportunity Act (AGOA), the American economy is further opening its markets to Ethiopia.
The US President and the Prime Minister of the Federal Democratic Republic of Ethiopia frankly discussed on how to further promote good governance, protect human rights and strengthen democracy in Ethiopia. According to President Obama, people’s inclusion in the political process accelerates economic development. Ethiopia is a strong partner of the US and should continue to foster its democracy, he also said.
The visiting President furthermore underlined Ethiopia is a key partner of the United States in the fight against terrorism and to built lasting peace in the Horn of Africa region. “Ethiopia’s contribution to the African Union Mission in Somalia (AMISOM) has reduced areas under Al-Shabaab control. This past week, Ethiopian troops have helped to retake two major Al-Shabab strongholds, we have now to keep the pressure on”. President Obama said Ethiopia has the opportunity to extend its leadership in a way it benefits its people and it sets a “positive example” in the region. Ethiopia is also a key-partner to resolve the crisis in South Sudan, the President said.
On his part, the Prime Minister of the Federal Democratic Republic of Ethiopia, Hailemariam Desalegn said that US investors will now be encouraged to come to Ethiopia in large numbers. At bilateral levels, the talks contributed to enrich understanding to fight climate change and work for the success of the COP21 conference in Paris in December 2015. The Ethiopian government has furthermore clearly expressed its commitment to deepen the democratization process in the country, and work to increase the respect of human rights and to improve good governance. “Our commitment to democracy is real, not skin deep”, the Prime Minister said. Underlining the need to strengthen institutions and build capacities, the Premier said a strong support is expected from the United States. Cooperation with the US is also vital for security and peace building in countries like Somalia and South Sudan. The two partners said they are ready to intensify the campaign against terrorism in the region.
On 28 July 2015, Barack Obama made a historic speech at the African Union headquaters, both “as a proud American” and “as the son of an African”. He emphasized that the dignity of every person is the only foundation of a modern society, in Africa and elsewhere in the world. Africa has achieved “extraordinary progress” among others in economy, education and health, and stereotypes about the continent are changing. The world must recognize this: “Africa is on the move, a new Africa is emerging”. The President said that during his trip to Africa, he encountered young people having a real eagerness and optimism to achieve more prosperity on the continent. But along these progresses, good governance needs to be fostered, he reminded. The US are ready to be the “best friend” of Africa to work on the issue of governance. One of the most fundamental principles, he stressed, is that nobody can stand above the law. US President Barack Obama further said that women empowerment will play crucial role for Africa’s growth and prosperity, and that real development could only be achieved if women are playing an active role in the society. Good governance and accommodation of diversities are also the best weapons against terrorism and instability. Africa’s progress will depend upon the respect of human rights of all people.
A festive reception was organized at the National Palace of Ethiopia in the presence of the President, the Prime Minister, the deputy Prime Minister, other Ministers, high officials, opposition political parties, ambassadors and representatives of civil society organizations and religious leaders. The President tasted the Ethiopian organic coffee and attended an Ethiopian cultural dance show staged in his honor. During his visit in Addis Ababa, he was introduced to the remains of Lucy, “the ancestor of humanity”, 3.2 million years old. At the state dinner, President Obama told the guests Lucy is a reminder that the world’s people are part of the same human family.
This visit of the American President to Ethiopia shows the existing strategic partnership between the two countries and the strong people-to-people relation. It has to be analyzed as the continuation of a strong collaboration, which had already been confirmed in New York in September 2014, when Prime Minister Hailemariam Desalegn met the President and discussed a range of issues of cooperation at bilateral and multilateral fronts, that includes economic development, good governance, regional stability and the fight against terrorism.

© Embassy of Ethiopia in Brussels

President Mulatu Teshome, bidding farewell the outgoing Ambassador of Belgium Ambassador Hughes Chantry, said Ethiopia is keen to deepen its longstanding political and diplomatic relations with Belgium.

President Dr. Mulatu, who noted that Ethiopia is also ready to strengthen its cooperative partnership with Belgium in the areas of education, agriculture, investment and trade, stressed the need for Belgian investors to bring their enterprises and invest in Ethiopia with a view to elevate  the ties between the countries to a new level. Noting that both countries are the seats of the AU and EU, the President, said that cementing the relations should be given attention.

Ambassador Hughes Chantry on his part emphasized that his country values the importance of replicating the excellent political ties into the economic front with Ethiopia. He also noted that Belgian investors have already engaged in Ethiopia in various areas including civil engineering, textile, floriculture and agro-possessing. The outgoing Ambassador further noted that over 50 Belgian businesspersons will come to Ethiopia in October to explore the possibility of investing in the country, adding that his country is willing to support Ethiopia’s developmental efforts, including education.

The Government of Ethiopia and the European Union signed an agreements worth EUR 190 million to support Ethiopia’s road sector and safety net programs.

The agreement was signed between Ethiopian Minister of Finance and Economic Development, Sufian Ahmed and European Union Commissioner in Charge of International Cooperation and Development, Neven Mimica on 17 July 2015. During the signing ceremony, it was stated that “140 million Euros of the fund is for the Road Sector Policy Support Program (SPSP-IV) and the rest 50 million will be for the Fourth Safety Net Program (PSNP-IV).”

Minister Sufian praised the development cooperation between Ethiopia and the EU and said that the “EU has funded EUR 416.78 million and EUR 350 million for the road sub sector and Productive Safety Net Program respectively starting from 2005.”

EU’s Commissioner Mimica said “The road sector budget support program aims to support the implementation of the government’s Road Sector Development Program IV, which covers the period 2015/20 and aims at improving the road network and ensuring rural accessibility.” The commissioner further noted that the expansion of the road network was playing a key role in Ethiopia’s development and improves the accessibility to basic needs, public services and markets.

Source: MFA Ethiopia

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


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.

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

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

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

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

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

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

Calvin Klein

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

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

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

200,000 Jobs

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

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

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

Chinese Funding

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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