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Fuel Truck Importers Begin Getting Permits

Enjoying the benefits of the controversial directive issued by the Federal Transport Authority (FTA), 19 out of the 81 companies and individuals that applied for fuel truck importation permits started receiving their licences from the Authority last week.
 

According to the Directive, the time set for the issuance of permits was from September 19 to 29, 2006, but the FTA only started giving out the permits as of October 18.
 

Of the companies that qualified for permission to import 25 fuel trucks, the one that made it to the A-list was Marathon Transport Plc.

 

According to an FTA staff member, Marathon was in fact the one company that met all the requirements better than any of the other applicants, without a single feature left unfulfilled. The Company was co-founded by Tsega Assamere and eight other shareholders in August 2006.





 

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Banks Competing for Visa Card Primacy

Dashen Bank S.C and Barclaycard Kenya are deep into a dispute over who legitimately has the right to be Ethiopia's Visa card service provider.

For more than 30 years, Barclaycard services only existed at Ethiopian Airlines and the stores run by the Ethiopian Tourist Trade Enterprise. But that changed six years ago, when Barclaycard Kenya began being represented in Ethiopia by CcSI.

Since then, CcSI has been offering VISA, MasterCard, American Express and JCB card services. Today, CcSI has over 70 commercial outlets that deal in credit card services, 34 of which are active in using the point of sales (POS) terminals that CcSI installed.

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Riding up front

 

What business has brought Airbus’ A380, the largest aircraft ever, to Addis Abeba, as its first appearance in an African sky last week, many wonder? Its test pilot, Etienne Tarnowski (right) cites the need to check engine behaviour and performance under extreme weather of high altitude such as in Addis, 2,500m above sea level. However, Addis is not the only place in the world with an airport located at such altitude. It should not be surprising if Airbus executives are in a constant battle to get attention from Ethiopian authorities to break a monopoly held by their archrival, the American Boeing, with Ethiopian Airlines for over half a century. With their desire to come back next month with an offer of a new model – the long range and wide body A350-XWB – they surely got the attention they crave from the Board Chairman of the Ethiopian Airlines. Mr. Tarnowski was showing the A380 cockpit to Minister of Foreign Affairs Seyoum Mesfin and Junadin Sado (left), minister of Transport and Communications, also one of the Directors of the Board of Ethiopian.

   
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UNDERSTANDING SOMALIA

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Expert Corner

Making Business Work for the Poor


There has been a big change in the United Nation’s engagement with    the private sector, influenced by its stewardship of the Millennium Development Goals (MDG). It was the urgent need to enhance the contribution of the private sector in achieving the MDGs that prompted Secretary General Kofi Annan to appoint a commission to examine how the role of the private sector in this major global effort could be maximised.

 

The Commission on the Private Sector and Development was convened to answer two questions: How can the potential of the private sector and entrepreneurship be unleashed in developing countries? How can the existing private sector be engaged in meeting that challenge?

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POLICING BUILDING


The Federal Police Commission headquarters constructed at a cost of 54 million will be officially commissioned by the end of October, 2006. An 11-storey, 300-room building located on Smuts Street adjacent to the Mexico Square, it will be a big landmark both for the area and the Police Commission. The design, supervision and contract administration work was carried out by the National Consults and the construction which was done by the MIDROC Ethiopia Construction company, taking three years. The building will house modern forensic laboratory equipped with anti-mine and DNA and other state of the art technologies. The lab will minimize the two month wait for finger print verification to one day. It will also computerize 60 years of finger print collection. The building also features a helicopter landing pad on its roof. Beginning next week, seven departments of the commission will begin moving into the building. A Federal Police committee already exists to prepare an inauguration ceremony. A tentative date is scheduled for November 4, 2006.

 

  

Ethiopian Car Assembly


Ethiopia’s first car assembly plant, with a 20 million Br capital, was launched October 18, 2006 during a ceremony at the Hilton Hotel. The car “Docc” which is to be assembled in a joint venture beween Dutch company called Trento and the Ethio-Holland Transport Company, will be costing 139,500 Br. Ethio-Holland Transport Company is a company engaged in importation of second hand cars and construction equipment rental in Ethiopia. Car orders are planned to reach the customer in six weeks with a one year guarantee. The company leased 20,000sqm of land from the Oromia Regional State. The company has a production capacity of 1,000 to 2,000 cars assembled per year. Trento, a special equipment company, is a 30-year old company engaged in engineering activities, robot manufacturing, product handling equipments and assembly equipment.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
NEWS  
     

Araya Zerihun Dies

     
    Araya Zerihun, general manager of Kebire Enterprise, passed away on Friday, October 20, after suffering a sudden heart attack, aigaforum website reported.

After coming back from the United States in the early 1990s, Araya served the Tigray Development Association (TDA) as chairman. He left the organization in early 2000, to join Sheik Al-Amoudi’s group of companies; he was instrumental in the establishment of MAA Garment, in Mekelle, 780Km north of Addis.

 
       
 

Diplomatic Crisis Upstages EU Horn of Africa Plan

     
 

The announcement on Friday, October 20, of plans for the European Union (EU) to work closely with the seven nations of the Horn of Africa to defuse regional conflicts and prevent them spreading to other parts of Africa and the Middle East was seriously disrupted by the revelation of the expulsion of two European diplomats from Ethiopia.

The strategy, more of a diagnosis of the region's problems than a cure, aims to improve economic and political integration between Djibouti, Eritrea, Ethiopia, Kenya, Sudan, Uganda and the transitional government in Somalia.

 
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New Directive Standardizes Bus Requirements

     
 

The Federal Transport Authority (FTA) issued a directive last week which requires that cross country public transport vehicles include standardized services.
 

The requirements, released on October 16, 2006, include a microphone, a tape recorder with speakers, a mobile phone, seat numbers, clean curtains, and a display board to monitor the vehicles destinations.  
 

Also, the driver and assistant will have the same color uniform, including a tie and cap. And for safety precaution, a first aid kit and fire extinguisher are required to be put in a visible place.
 

 
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City Land Deals Require Environmental Assessment

     
 

The Lease Board of the Addis Abeba Caretaker Administration, chaired by Berhane Deressa, decided to impose an Environmental Impact Assessment (EIA) on investment projects that requested land from the city administration last month.

The Board requested that the Addis Abeba Investment Authority and the Land Development and Administration Authority implement the decision beginning October 11, 2006.

 
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European Co’s Win Bids for Railway Renovation

     
 

The Ethio-Djibouti Railways Enterprise is going through with its 114Km railway rehabilitation project with Spanish INECO Spt in final steps to conclude negotiations for supervision and administration work at a cost of 2.2 million euros. The two parties are expected to sign an agreement early this week.
 

At the end of last month, the Enterprise awarded CONSTA, an Italian company, the actual rehabilitation work for 40 million euros.

 

 
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Ethio-Horti Moves into Fertiliser Importing

     
 

The Ethio-Horti Share Company (EHSC) which is formed by 30 floriculture companies bought 800tn of fertilizer worth 500,000 dollars from Yara, a multi-national fertilizer producer, and 700,000 dollars worth of chemicals from German supplier, SYNGENTA.

The fertilizer and chemicals to be used for the floriculture industry partially arrived into the country last week.
 

The floriculture industry has become the favourite industry and one of the prime sectors supported by the Ethiopian government. 

 
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ANALYSIS-A New Found Coziness Between Chamber and Government

     
 

Tadelech Dalecha, state minister for Culture and Tourism, was not happy to see the Addis Abeba Chamber of Commerce & Sectorial Association “think small” on its new 200 million Br international trade center, possibly to be built on a vast tract of plot located opposite the CMC residential complex.

She wanted to see the centre include a facility where diverse cultures of Ethiopia and “even Africa” are promoted. She made the suggestion at a luncheon the Chamber hosted for government officials on October 12, 2006, at the Hilton.

 
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Four Applicants Bid to Lease Abule Basuma Lodge

     
 

One year after having taken back the Abule Basuma Lodge from Iacona Touring Plc, the Confederation of Ethiopian Trade Union (CETU) has now received four interested applicants in response to the tender it issued to lease the Lodge, located in the Oromia Region, 212Km southeast of Addis Abeba.

 
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Three New Bus Stations Still Not Used

     
 

Three cross-country bus stations located at different exit points of Addis Abeba and built for 19.6 million Br have been sitting idle for over a year and half.

Although the five-year construction of these stations was finalized in early 2005, both the offices as well as the compound have been sealed off and left unused. The stations were built by the Addis Abeba City Transport Office under the Federal Transport Authority (FTA) since last year.

 
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Lingering Payment Dispute Between Defence Ministry and Bus Assoc.

     
  A dispute has arisen between the Ministry of National Defence (MoND) and Africa Alem Public Transport Bus Owners Association over payments for transportation services rendered by the Association last year.

The reason for the dispute comes from the Association’s claim that it is owed 107, 755 Br by the MoND, for the transportation services it has been providing its soldiers from June 2005 to July 2006.
 
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Ministries Looking to Alternative Fuel

     
 

As the price of fuel increases on the international oil market, Ethiopia has set its sights on ethanol and bio-diesel to guarantee the supply of affordable fuel in the future.

According to a troubling study that was done by the Ministry of Trade and Industry (MoTI), the increasing international demand for energy sources does not guarantee that the international supply will be constant in the future. The study focused on the two alternatives and their viability in the country.

 
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Poverty Forcing Girls into Risky Sex Work

     
  The nightclubs of Addis Ababa reveal a thriving sex industry, in which thousands of skimpily dressed young women trade sexual favours for cash to survive, putting them at risk of contracting HIV and spreading the disease.

Extreme poverty has forced many girls into the sex trade. Helen Chane (not her real name), a grade 10 student aged 17, became a commercial sex worker after her parents died from AIDS-related illnesses about a year ago.
 
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ENTERTAINMENT  
 

Local Director Celebrates Timeless Ethiopian Storylines

     
 

From physics to talking movies, Tatek Tadesse, director of the locally acclaimed Ethiopian movie Gudi Fecha, is currently working on yet another movie project after two years of rest since the release of his first feature film.

The Return to Grace, which is the unofficial title of the movie, is based on the story of a young Ethiopian architect who is inspired by the long lost kingdom of Axum and an ancient prophecy that speaks of the resurgence of this kingdom following the appearance of seven signs. The young architect, who notices these signals, tries to get people around him to understand the meaningfulness of what is happening only to be looked upon as a mad man. 

 
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Ethiopia Preparing for its Own Movie Awards

     
 

At 2:30pm on Thursday, October 19, 2006, a handover ceremony between the Indian Embassy in Ethiopia and the organizers of the Abyssinia Film Awards, Shakaina Entertainment, took place under the shade of the trees at Tropical Gardens.
 

The event involved the Indian Embassy presenting 20 award sculptures for the 20 final categories that individuals and production companies will be nominated for during the Abyssinia Film Award event that is to take place in December 2006.

 
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UNDERSTANDING SOMALIA  
 
     
 

The inter-clan conflict in Somalia has been a cause of concern lately, with the emergence of a militant group that is now Supreme Islamic Council of Somalia (SICS) and put a military challenge to the Transitional Federal government (TFG) that is now limited in Badoa. Controlling the capital Mogadishu and much of the southern parts of Somalia, the group counts much of its international support from Eritrea, Egypt and Libya, if not Saudi Arabia's wealthy supporters of the expansion of Wahabism, according to this writer known as Antony Shaw, a pseudo-name but with an authoritative analysis of events in Ethiopia and the surrounding countries.
 

 
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VERBATIM

 

“One of the most significant recent features of globalization has been the rise of Foreign Direct Investment from developing and transition economies. This phenomenon presents new opportunities for the developing home and host economies, with international ‘rules of the game’ changing rapidly. The situation now emerging means that nascent transitional corporations are increasingly competing head-to-head with established companies in both developed and developing economies.” 

 

Statement by Supachai Panitchpakdi, Secretary-General of UNCTAD, in the World Investment Report 2006: Foreign Direct Investment from Developing and Transition Economies - Implications for Development.

 
 
     
 

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