COCA AT KICK-OFF

 Lazarre Potier (left), private sector advisor for USAID’s Agribusiness and Trade Expansion Project (ATEP), greets Tadesse Haile, state minister of Trade (MoT), at the closing meeting of ATEP’s advisory committee at the Hilton Addis on Tuesday, April 5, 2011. The five-year project was launched in April 2006, to address agricultural constraints and focused on horticulture, coffee, oilseeds and pulses, as well as hides, skins, and leather. Thomas H. Car, chief of party of USAID, is on the right.

The Chinese Embassy, located around Tor Hailoch, was overrun on Monday, April 4, 2011, with people hoping to participate in an exhibition to be held in China. They were applying for visas, and many of them arrived before sunrise. However, by 10:00am, around the time the picture was taken, many prospective applicants were still waiting their turn to be helped. People had to wait outside because the embassy does not have the space inside its compound to accommodate more than 20 people, according to an official at the embassy, which usually processes no more than six applications per day.

Kurt Krueger (standing), associate director of organisational development and training of human resources for the National Futures Association (NFA), training employees of the Ethiopian Commodities Exchange Authority (ACEA) on Monday, April 4, 2011, during an experience sharing workshop at Ghion Hotel. Krueger and three colleagues from the same organisation led the workshop, held from Monday to Friday, with the aim of improving the international trading activities of the country.

The Zangeshan Cement Factory, with a projected daily production capacity of 5,000 tn, is set to inaugurate its initial trial production in three months.

A total of 80pc of the construction has been completed, and only finishing and installation works remain, according to Alem Desta, deputy manager of investment projects in Ethiopia for Guangdong Chuanhui Group, the factory’s parent company. It has been equipped with the latest technologies and the domestic market will be the primary focus, he claimed.

The government plans to increase the national road network from the existing 49,000km and construct additional housing units to raise their number from 213,000 to 700,000, as part of the five-year GTP. These projects are estimated to increase the annual demand for cement to 27 million tonnes by 2015.  

Zangeshan, which was established without external financing, is awaiting the Ethiopian Conformity Assessment Enterprise’s (ECAE) assessment of the quality of its products before it can be introduced into the market.

The environmental impact assessment (EIA) study is also underway, according to Alem.

To overcome power supply outages, the factory’s generator can generate 8MW, more than 50pc of the 15MW power supply it would need at its full operational capacity, Alem told Fortune. Upon becoming fully operational, the factory is expected to create over 1,200 jobs, the deputy manager claimed.

Adika Tour & Travel Plc is to buy 500,000 Br worth of savings bonds from the government as part of its contribution to the construction of the multi-billion Birr Millennium Dam. Upon its completion, the dam is expected to generate 5,250MW of hydroelectric power.

Adika decided to buy the bonds for its employees with money from its provident fund, which the company has been saving in since each one started working at the company engaged in tour, travel, and car rental services, according to Awad Mohammed, managing director of Adika.

“We are proud of our country, and by purchasing these bonds we are aiding in Ethiopia’s development,” said the managing director of the tour operator that also sponsors events, concerts, and films.

Development Bank of Ethiopia (DBE), which is responsible for creating and selling the bonds, officially started selling them at a launching ceremony at Sheraton Addis on March 12, 2011. It had sold over 13,000 Br by the end of the day.

The bonds come in denominations of 500 Br, 1,000 Br, 3,000 Br, 10,000 Br, 50,000 Br, and 100,000 Br with a 5.5pc interest rate for bonds with a maturity period of five years and six per cent interest rate for bonds with a maturity date of longer than five years.

DBE plans to sell 200 million Br worth of bonds in its first round of sales through its 32 branches, and the 294 branches of Commercial Bank of Ethiopia (CBE).

Hawassa University has launched 60 expansion projects for five faculties, including the main campus, at a cost of 408 million Br.

These expansion projects involve dormitories, offices, cafeterias, recreation spaces for teachers and students, a library, laboratory, IT labs, guest houses, as well as cobblestone walkways. The university will also construct a stadium with shopping centres around it for the benefit of both the university and town communities.

Upon the completion of the expansion project, the university hopes to be able to house 2,500 additional students, according to Tsegaye Bekele (PhD), head of planning and projects for the university. All five faculties of the university, including Yirgalem Campus, Referral Campus, Main Campus, and Wendogenet Forestry & Natural Resources College, are focal points for the expansion, he claimed.

Last year, the university launched 33 projects of which 10 have been fully completed to date, Tsegaye told Fortune. With the help of the former GTZ, now GIZ, the university built a two-storey building as a training centre for the hotel and tourism management students, the head claimed.

The hotel commenced operations in September 2010 with a restriction on serving students by not allowing them to rent rooms or drinking more than three shots of alcohol on the premises.

The savings potential of Ethiopian microfinance institutions (MFIs) continues to grow.

In 2010, the total saving deposits of 2.7 billion Br collected from 2.4 million active borrowers, 1.8 billion Br is voluntary savings whereas the remaining is compulsory, Anteneh Kifle, head of the Association of Ethiopian Microfinance Institutions (AEMFI) performance, told Fortune.

The exceeding number of voluntary savings proves that the savings culture of MFI customers keeps growing, according to Anteneh.

Total outstanding loans reached 6.1 billion Br, according to the financial performance report of MFIs for the fourth quarter of 2010.

MFIs continue to have a significant outreach to clients, in comparison with the number of clients in 2003, according to Anteneh. In terms of client outreach it is also marked by serving millions of poor Ethiopians and playing an active role as financial intermediary, the head claimed.

Gilat Satcom, an international connectivity service provider, has signed a partnership agreement with Global Tracking to provide comprehensive fleet management, personal tracking, and related solutions across East Africa.

Global Tracking, which was established in 2000, is the wireless business solution division of Global Investment Technology from Virginia in the United States (US). The company maintains an office in Addis Abeba where it provides real-time terrestrial GPS and GPRS as well as satellite GPRS tracking systems the transportation sector.

Gilat, which is based in Israel, saw the potential for tracking solutions in Ethiopia after participating in the Information Communications Technology Exhibition in the capital, in February 2011, the company said in a press release.

The company wants Global Tracking to be its partner in reaching throughout Africa, according to Itzik Baron, manager of mobile satellite services sales for Gilat.

Gilat recently signed an agreement with Ethio-Telecom to expand broadband services to over 100 new locations. It has also engaged in upgrading mobile communications infrastructure in various parts of the country.

Development Bank of Ethiopia (DBE) floated a tender on Tuesday, March 29, 2011, for the renovation of its headquarters’ complex, located behind the Hilton Addis, on Tito Street. The contract is open to local bidders.

The building has never been renovated since its construction in 1972, but was repainted eight years ago, according to Brehanu Taye, head of communications and public relations for DBE, one of the oldest banks in Ethiopia.

The quick pace of the city’s development has seen the construction of big, modern buildings being erected around the headquarters of DBE, which made a net profit of 54.4 million Br in 2009/10, an 80pc increase from that of the previous fiscal year.

This as well as security considerations caused the board of directors of the bank to decide on renovating the headquarters, Brehanu told Fortune.

The World Bank (WB) has introduced a new strategy for Africa titled, “Africa’s future and the WB’s support to it.” This serves to boost African economies in the same manner as those of Asia which took off three decades ago, it stated in a press release.

The three main areas on which the project is focused are competitiveness and employment, vulnerability and resilience, as well as governance and the public sector.

“The strategy is as much a reflection of what we heard from Africa’s people and leaders as it is the thinking of the WB,” according to Shantayanan Devarajan, chief economist for Africa at the bank.

The new strategy reverses the order of importance of the bank’s instruments to support Africa, with the most important aspect becoming partnerships, followed by knowledge and finance, according to the press release.

“We are excited about Africa’s future,” Obiageli Ezekwesili, vice president of the Africa Region for the WB, is quoted as saying in the press release. “We used the opportunity of our new strategy to listen, learn, and define how to better support the continent’s aspirations as it maintains the momentum of economic reforms over the next decade.”

The state owned Weyra Transport SC replaced its old and outdated vehicles and trailers with 50 new ones that have the capacity to handle 45,000 litres of liquid goods each. A ceremony was held on June 21, 2010 for the presentation of the new vehicles.

The vehicles, imported from China, cost the company 75 million Br. Seventy per cent of the financing was covered by a loan from the Commercial Bank of Ethiopia (CBE). The trailers were assembled by Mesfin Industrial Engineering.

The trucks will be assigned to transport oil for Total and OiLibya.

Weyra’s market share has grown from four per cent to seven per cent because of the new trucks, according to Mesfin Tefera, managing director of the company.

Beyene Gebre Meskel, director of the Privatisation and Public Enterprises Supervising Agency (PPESA); board members; and other officials were present at the inauguration of the vehicles.  

The designated project includes the establishment of surgical device management and provision of phachoemulsification services. On the job training for local staff will also be part and parcel of the project. The project, which will be implemented through the mutual consultation of KOICA and the hospital, is expected to be completed in one year and benefit more than one thousand people per year.

The Revenue and Customs Authority under the Addis Abeba City Administration’s Economic and Finance Bureau managed to collect exactly half of the 5.4 billion Br it targeted for the whole 2009/10, fiscal year during the last seven months.

The 2.7 billion Br revenue collected from tax and non-tax income, including land lease fees, has shown a 49pc increase from what the authority achieved during the same time last year, according to Belay Tafesse, director general of the authority.

Its business process reengineering (BPR), efficient information gathering (collecting finger prints and cash register machines), and law enforcement contributed to achieving the amount gathered.

“But this is not that much satisfactory, considering the potential,” Belay said, also indicating that the rising number of illegal trades in the city has contributed negatively to the number.

The Addis Abeba Water and Sewerage Authority (AAWSA) made a feasibility study of the master plan for waste disposal in the city.

The plan to dispose of waste through pipelines has been presented to stakeholders prior to the commencement of construction.

AAWSA currently deploys trucks and pipelines for sewerage disposal. However, the authority plans to upgrade the city’s disposal by an additional 800 pipelines.

The design for the eastern sewerage system’s master plan, which has been finalised will benefit residents around Kotebe, Yeka, Bole and CMC areas and will upgrade capacity by over 40pc, according to a press release by the Addis Abeba City Government Communications Affairs.

The master plan for the eastern sewerage system has been finalised and construction will begin in the next fiscal year as soon as the budget has been secured, according to Getnet Gessese, communication affair work process leader at the authority. 

The implementation is expected to benefit some 840,000 residents.

The Addis Abeba Chamber of Commerce and Sectoral Association held an award ceremony at the Hilton Hotel on March 3, 2010, occasioning the closing of the 14th Addis Chamber International Trade Fair.

The first award for Best Stand was given to Al-Sam Plc, Commercial Bank of Ethiopia, Lucky Exports, Italian Trade Commission, MIDROC Technology Group, SNS Household and Office Furniture, Techtra Engineering, Petram Plc, MCO of the Federal Republic of Germany, Holland Car Plc and Q Diagnostics Plc. The second award for Special Partnership was given to GTZ-AMES-E.

The last award for sponsorship was given to Al-Sam Plc, the Development Bank of Ethiopia, Equatorial Business Group, Ethiopian Airlines, Omicron Engineering Plc, Sonic Screen Advertising, I-Print Advertising, Ethiopian Telecommunications Corporation and United Insurance SC.

The trade fair that took place at the Addis Abeba Exhibition Centre from February 25 to March 3, 2010 brought together more than 118 local business companies and 108 foreign companies from 23 countries 

The inauguration of the new Ethiopian Institute for Agriculture, Building Construction and City Development (EIABC) was held yesterday, March 6, 2010, at Addis Abeba University (AAU) South Campus.

Demeke Mekonnen minister of Education, Junedin Sado minister of Science and Technology, Andreas Esheté (Prof) president of AAU and Dirk Hebel, Scientific Director of EIABC attended the inaugural ceremony and presented speeches on the significance of the institute.

The EIABC is one of the eight new semiautonomous institutes of technology being introduced in the country at various universities and is part of the overall university reform being conducted by the Engineering Capacity Building Programme (ECBP) and the Ministry of Education.

The university reform component is focused on the restructuring of governance and study programmes as well as technology transfers, standards, and benchmarks.

The ECA hosted the Civil Society Assembly for Assessing Development Challenges in African Least Developed Countries (LDCs) on March 4 and 5, 2010.

The assembly reviewed the Brussels Programme of Action (BPoA) and the Millennium Development Goals (MDGs)

The Brussels Programme reviewed the last 10 year plan since coming to a close and proposed action plans for the coming 10 years.

There are 33 LDCs from Africa including Ethiopia. Cape Verde recently got off of the list of LDCs.

The action plan is to enable the LDCs to reach at least seven per cent of commodity driven growth. The LDCs economic growth is dropping because they are only engaged in exporting primary commodities.

Their exports face structural difficulties since there is no diversified exports, according to Adrian Gauci, economic affairs officer at the United Nations Economic Commission for Africa (UNECA)

In light of these problems, the proposed growth rate may not be possible for the coming two years. The inadequate infrastructure, small economy, less skilled human power is to blame for slow growth rate.

The new package of the International Monetary Fund (IMF), concessional facilities, to support low-income countries, became effective as of January 7, 2010.

This far-reaching reform more than doubles lending resources, provides exceptional interest relief, and offers new lending instruments that are more flexible and responsive to individual country needs, according to an IMF press release.

Key elements of the reform include three new lending instruments, interest relief, and permanently higher concessionality.

The Extended Credit Facility will provide flexible medium-term support; the Standby Credit Facility will address short-term and precautionary needs; and the Rapid Credit facility will offer emergency support with limited conditionality.

The Fund has also relieved developing countries from paying interest on outstanding IMF concessional loans until the end of 2011 to help low-income countries cope with the global crisis. Permanently higher concessionality of Fund financial support refers to regularly reviewed annual interest rates so as to preserve a higher level of concessionality.