The Chinese-built 756-km electrified rail project connecting Ethiopia to Djibouti officially started commercial operations on 1 January with a ceremony held in Addis Ababa.

Contracted by two Chinese companies, the first 320 km of the rail project from Sebeta to Mieso was carried out by the China Rail Engineering Corporation (CREC), while the remaining 436 km from Mieso to Djibouti port section was built by the China Civil Engineering Construction Corporation (CCECC). Speaking on the occasion, Ahmed Shide, Ethiopian Minister of Transport, hailed the standard gauge project as a milestone in China-Africa cooperation.

In addition to further enhancing economic ties as well as the people-to-people links between Ethiopia and Djibouti, it will have a significant contribution to the ongoing development efforts of building a new Ethiopia, said the minister. Emphasizing on its huge significance and importance, Tan Jian, Chinese Ambassador to Ethiopia, noted that the project would contribute to the industrialization and diversification of the Ethiopian economy, and also towards the country’s growth and transformation plan. The ambassador has reiterated China’s commitment to further cooperating and closely working with Ethiopia and Djibouti to the railway’s smooth operation. The Addis Ababa-Djibouti railway project has been carried out with an investment of 4 billion U.S. dollars, and China’s Exim Bank has provided a loan.

Speaking on his part, Djibouti Ambassador to Ethiopia, Mohamed Idriss Farah, said the railway project would have a significant contribution to the economic integration between Djibouti and Ethiopia. “This is an important corridor, important railways between Djibouti and Ethiopia; we are working for our economic integration between our two countries. And this project was part of the economic integration, but not only economic integration but also connecting the peoples of Djibouti and Ethiopia,” said the ambassador.

The railway provides both passenger and freight services between Addis Ababa and Djibouti.

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Ethiopia has signed an agreement to build two geothermal power plants at a combined cost of $4 billion, to be run by the country’s first privately-owned utility. The Corbetti and Tulu Moye plants will produce a combined 1,000 MW of power upon completion in eight years time in the volcanically-active Rift Valley south of the capital Addis Ababa. Ethiopia is eager to meet rising energy demand from its industries as well as becoming the continent’s biggest exporter of energy.

“No doubt the success of this effort will have a significant impact in the country’s future economic well-being,” said Azeb Asnake, chief executive of state-run Ethiopian Electric Power (EEP). The project’s equity investors include the Paris-based asset manager Meridiam, as well as the Africa Renewable Energy Fund and InfraCo Africa – funds that focus on infrastructure. As Ethiopia’s first privately-owned utility, the project will be operated by the developers for a period of 25 years. In an economy traditionally dominated by state spending, the government has suggested that the nascent sector could be a model for increased private investment.

“Going forward, the government recognises the added value to be gained by working in partnership with the private sector, specifically in sharing with it the burden of investment for large-scale power generation,” said Seleshi Bekele, minister of water, irrigation and electricity.

Under a new 2015-2020 development plan, Addis Ababa wants to raise power generation to 17,346 MW from a current capacity of just over 4,300 MW from hydropower, wind and geothermal sources. It has an array of projects under construction, including the $4.1 billion Grand Renaissance Dam along its share of the Nile river that will churn out 6,000 MW at full capacity upon completion within the next 10 years.

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On 13 December 2017, International Monetary Fund (IMF) Managing Director, Christine Lagarde, arrived in Ethiopia for a historic three-day visit, touring new industrial parks and meeting with government officials. This is the first time in the IMF’s 72-year history that a managing director paid a visit to the Ethiopian capital, as a demonstration of Ethiopia’s growing recognition as an economic hub of Africa.

“We had a very productive discussion about the performance of the Ethiopian economy which is doing very well in terms of growth”, Mrs. Lagarde told journalists following her discussion with President of Ethiopia Mulatu Teshome at the national palace. The Managing Director visited the country to witness for herself the economic development that the country has registered in the past two decades. “I’m very proud to come and visit. I really had a better understanding of the economic development model which has been implemented in Ethiopia” added the Managing Director.

Lagarde also appreciated Ethiopia for hosting 850,000 refugees, which is among the largest refugee population in the world. The IMF head said the work that the country is conducting to bring peace and stability to the Horn of Africa particularly Somali and South Sudan is commendable. During the discussion, President Mulatu who explained about the implementation of country’s pro-poor and inclusive development policy praised IMF for its support to Ethiopia’s economic development. He expressed hope that the visit of the Managing Director will help to further strengthen Ethiopia’s relation with the IMF, according to a high-level official who attended the meeting.

European Union Support to Energizing Development in Ethiopia Project with EUR10, 500,000 was launched in Addis Ababa on 12 December 2017.

During the launching of the project, Water, Irrigation and Electricity State Minister Dr. Frehiwot Woldehanna said adequate, reliable and affordable energy access is a critical enabler in realizing every country’s development and transforming economic prosperity as well as the wellbeing of all its citizens.

He added that the role of energy in improving quality of life through improved health care, improved education and economic opportunities cannot be over emphasized.

The energy provision program launched will include rural and deep rural areas by scaling up connectivity.

The State Minister pointed out that the country will use all renewable energy sources to generate electric power that has less environmental impact to reach to every corner of the country.

GIZ Ethiopia Country Director, Dr. Mathias Rompel said the European Union acknowledges the commitment of Ethiopia to use renewable energy sources.

According to the Country Director, Germany is working with the government of Ethiopia to bring energy transformation in the country from fossil fuels to sustainable energy development.

The European Union Support to Energizing Development in Ethiopia Project will provide a model for work with the private sector, he added.

It will provide modern energy services to individual household, institutions and small and medium size enterprises in Ethiopia, Rompel explained.

This is one of the best performance and outcome based programs in the energy sector, the Country Director said.

EU Infrastructure Team Leader, Giorgia Favero said the project is a solid starting point to support the energy sector in Ethiopia by the European Union.

She stressed that EU is committed to support the solar energy sector in Ethiopia to address energy to the rural community in Ethiopia.

Favero added that EU plans to do a lot in the dynamism of renewable energy development in Ethiopia.

On 12 December 2017, the European Commission announced 13 new actions worth €174.4 million under the EU Emergency Trust Fund for Africa to support refugees and host communities in the Horn of Africa region.

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On 9 December 2017, the Embassy of Ethiopia in Brussels celebrated the 12th Nations, Nationalities and Peoples’s Day with members of the diaspora living in the Benelux. It was an occasion of exchange, discussion and festivities celebrating Ethiopia’s diversity and unity.

On Saturday 9 December 2017, the Embassy hosted celebrations of the 12th NNPD for members of the diaspora. Here are the pictures of this joyful celebration: Pictures NNPD 2017 

Despite being a developing country, Ethiopia has been playing a leading role in climate change negotiations. It has become a country that is engaged in successful climate diplomacy so that the voice of developing countries is heard in various international arenas. Ethiopia is also a model country in implementing a green economy development strategy.

One of the key factors that enabled the country to play a key role in climate negotiations is the fact that it has integrated climate into its domestic development and foreign policies and strategies. This strong commitment has earned the country a voice in international climate negotiations.

Many agree that Ethiopia has been among the proactive countries in the process of ratifying the Paris Climate Change Agreement. Though the adoption of the agreement is historic by itself, it does not mean that the mission is accomplished as the continuing climate change is posing threat on the lives of billions across the world. That is why the country has shifted its diplomatic engagement to keeping the momentum of the agreements so that they are swiftly implemented.

In the recent global Cope 23 climate change negotiation which was held in Bonn Germany, Ethiopia successfully led as a Chair, some 47 climate change vulnerable developing countries that are suffering from the severe consequences despite their insignificant contribution to global warming.

Ethiopia is also a member of the group that represented the African continent in global climate change negotiations. The group holds a firm position that the compensation financial support and other technical support to cope with the impacts of climate change should be improved.

One of the success stories of the climate change negotiations is the fact that developed countries agreed to pay 90 million USD as compensation payment for climate change. They also pledged additional 100 million to developing countries that are severely harmed by the impacts of climate change.

Locally, the government has prepared a National Adaptation Programme of Action (NAPA) and Climate Resilient Green Economy Strategy to avert the impact of climate change on the country’s economy.

The government has also demonstrated its commitment to the green economic development through its environment friendly projects such as the expansion of renewable energy for industry and transportation (railways operation). This commitment has also been demonstrated by the extensive rural environmental rehabilitation works.

Various awareness creation programs regarding desertification and environmental rehabilitation works such as reforestation and afforestation have been taking place country wide. As a result, the country’s forest coverage has reached 15 percent, which was at an all time low of less than 4 percent almost two decade ago.

Having such strong commitment, developing countries like Ethiopia still need better economic and technological capacity to upgrade their coping mechanisms. Hence, developed nations need to step up their support as per their promises in the Sendai Framework on Disaster Risk Reduction, the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change.

But Ethiopia should exert maximum effort to mobilize local resources, both the public and private sectors and above all its huge human resource potential to further pursueits ambition to become an advocate of green economic development.

Source: Ethiopian Herald