The fund in dollars 20 countries pledged in Geneva, Switzerland, last week to cover emergency humanitarian assistance to 15.5 million Ethiopians. This amount covers 60pc of the one billion dollars needed in the next five months. The United States is by far the largest donor.
Month: April 2024
SIDELINED STRIKES
The ‘Vintage’ bowling alley at the historic Genet Hotel near the Le Gare Railway Station remains vibrant after nearly six decades. Recent evaluations of 64 hotels nationwide had surprising results, with nearly half the establishments not meeting the assessment criteria. Seven hotels received four-star ratings, while none qualified for a five-star tag. The Ministry of Tourism evaluated multiple cities nationwide despite higher ratings being mostly concentrated in the capital. Ethiopia’s tourism industry has been impacted by conflict over the past few years, albeit with a cascade of attractive new projects.
MYSTICAL NOTATIONS
Orthodox Christian scribes etch religious writings on traditional parchments (Birana) at the Ghion Hotel on Ras Desta Damtew St. The 10 day exhibition by the Hamere Berhan Institute featured various paintings and writings with uniquely Ethiopian overtones. The parchments, pens and inks are all prepared at the institute in the Piazza District. Goatskins are tightly stretched over metal frames to dry for days before being immersed in water to make the parchments. Several ancient manuscripts in the Ge’ez language with financial and artistic value are preserved in Birana parchments nationwide.
PANORAMIC PEEKS
An all-white building peaks across the street around the Flamingo area after renovations conclude on the main road. Addis Abeba’s roads have broadened as the high-profile corridor development project progresses to accommodate more pedestrians and bicycle lanes. The capital’s metamorphosis into a ‘smart city’ has entailed much more than transforming its roads and public spaces to include its cars and motorbikes. A green electric current pulsates underneath the ebbing flow of change, ever more apparent with giant roadside trees and the quiet hum of climate-friendly vehicles.
Ethiopian Seafarers Contribute $50m Annually in Remittances
Ethiopian Maritime Authority disclosed 50 million dollars in annual remittances from seafarers deployed internationally. Abdulber Shemsu, the director general of the Authority, said Ethiopia’s membership in the International Maritime Organisation (IMO), establishes global standards and guidelines for safe, secure, and environmentally sustainable shipping practices.
With 176 member countries and three associate member countries, including Ethiopia, the IMO provides a framework for ensuring that maritime activities adhere to international standards. Abdulber said this will enable them to secure employment opportunities abroad which in turn contributes to the economy.
Abdulber said in the first eight months of the fiscal year, remittances exceeded 36 million dollars. Ethiopia has 7,500 legally recognised seafarers, with plans to increase this number to 40,000 within five years. Abdulber explained that seafarers receive training at schools located in Bishoftu and Bahir Dar cities with plans to expand opportunities for more trainees.
AfDB Launches $1.5m Initiative to Propel Agro-Industrial Parks
A 1.5 million dollar initiative for the development of three Agro-industrial parks was commenced last week. Financed by the African Development Bank (AfDB), the project includes feasibility studies, a master plan, and an environmental and social impact assessment.
The Phase Two project, which includes capacity building for stakeholders, was initiated last week with an agreement between Semereta Sewasew, state minister for Finance and Gunther Beger, managing director of UNIDO.
Semereta said the technical support for the development of these parks is expected to facilitate the integration of the agricultural and industrial sectors, ultimately raising the performance of the manufacturing sector.
Cabinet Approves Public Service Legislation
Council of Ministers has unanimously approved the legislation that aims to raise the competency and professionalism of public service in the country. The Federal Civil Servants Proclamation is pending ratification from Parliament.
The decision was made during the 30th meeting of the Cabinet last week, which follows the ratification of the public service and administrative policy. Currently, the 176 federal agencies within 22 ministries, collectively employ around two million people. The policy aims to address key pillars in public services, including transparency, neutrality, diligence, punctuality, and effectiveness in public service delivery. According to a publication from the International Journal for Advance Research, improving the performance management system to align individual, team, and organisational performance requires high standards of professionalism and ethics.
ECX Tightens Regulations on Sesame Exports
Sales contracts with overseas buyers and pre-registration with the Ministry of Trade & Regional Integration have become mandatory prerequisites for trading sesame on the Ethiopian Commodity Exchange (ECX) floor starting this week.
According to Dawit Mura, head of corporate communications, the move aims to stabilise the market and prevent hoarding, particularly in commodities like sesame. Considering it is not a harvest season, Dawit believes the regulation is essential to encourage international trade.
Exporters who have traditionally relied on the Exchange for accessing 23 commodities must comply with these regulations. Edao Abdi, who chairs the Ethiopian Pulses, Oil Seeds, & Spices Exporters Association, said the decision was taken to maintain the country’s export earnings and restrict the domestic price hike.
City Opens Bidding for 243 Prime Plots
About 243 plots were put up for auction by Addis Abeba Land Development & Administration Bureau across nine districts. The plots include areas that were recently marked as part of the corridor development projects.
According to Tesfaye Tilahun, the head of the land transfer directorate, the area comprises both grade one and grade two categories, determined by their proximity to basic infrastructure and the city centre.
The bid documents are available online for 10 days, and the tender process is set to be open by May 2024.
Healthcare, Floriculture Businesses Awarded 4.9m Grant
A couple of businesses have been awarded a 4.9 million euro grant aimed at creating jobs in the healthcare and floriculture industries. Kadisco General Hospital and Tinaw Business Share Company were chosen from a pool of 318 applicants by the Facility Investing for Employment (IFE).
Operating on behalf of the KfW Development Bank and the Economic Cooperation & Development of Germany, IFE aims to generate 100,000 jobs in Ethiopia and seven other African countries.
The grant arrives at a pivotal moment, with the International Labour Organisation (ILO) highlighting a surge in the number of youth not in education, employment, or training (NEET) across Sub-Saharan Africa, totalling 62 million people.
Established in 2004 and staffed by 192 healthcare professionals, Kadisco plans to use the 2.09 million euro grant from IFE to finance equipment for its expansion, which is anticipated to create job opportunities for nearly 249 individuals.
Meanwhile, Tinaw, a cut flowers exporter, aims to triple its production within three years by expanding its operations. With a total investment cost of 10.37 million euros, the company will receive close to 2.3 million euros from IFE, to create job opportunities for 1,202 workers.
Parliament Paves the Way for Special Economic Zones
Lawmakers approved a proclamation aimed at overseeing the development and administration of Special Economic Zones (SEZs), which are envisioned as an expanded and integrated version of industrial parks. Drafted by the Ethiopian Investment Commission, the proclamation sets minimum capital requirements at five billion Birr with the primary goal to catalyse the manufacturing sector by attracting higher investments and optimising logistics operations.
The oversight will be entrusted to the Ethiopian Investment Board, chaired by Prime Minister Abiy Ahmed (PhD). It includes key figures such as Hana Arayaselassie, the commissioner of the Ethiopian Investment Commission; Mamo Mihretu, governor of the central bank; Ahmed Shide, minister of Finance; Fitsum Asfaw, the minister of Planning & Development, and Girma Birru, the senior economic advisor to the Prime Minister.
Despite past failures, including underperformance in industrial parks where export revenue has fallen short of initial investment costs, the government aims to revitalise the sector through the SEZ framework.
Under the new proclamation, ambitious projects like the Dire Dewa Free Trade Zone, located 445Km east of Addis Abeba on a 150hct plot, will fall within its purview. The larger Geda Special Economic Zone, situated 65Km from the capital in an area shared by Mojo, Adama, and Shashemene, will be included. It has a developed area spanning 5,000hct, representing a fifth of its intended size.
Oversight Committee Eyes Regulatory Tweaks Amid Export Slump
The federal government announced the formation of a technical committee tasked with overseeing the engagement of foreign investors in the retail, wholesale, import, and export sectors. The authorities attributed the decision to a comprehensive yearlong study revealing a consistent underperformance in exports, with merchandise export revenues declining for two consecutive years. The latest report from the Ministry of Trade & Regional Integration shows a 7.5pc year-on-year drop over the past nine months.
Hanna Arayaselassie, the recently appointed Commissioner of the Ethiopian Investment Commission (EIC), made the announcement last week of forming the technical committee.
Speaking at the Commission’s headquarters on Africa Avenue (Bole Road) and flanked by State Minister Endalew Mekonen, Hanna detailed its mandate.
The new body will include officials from her Commission, the Ethiopian Customs Commission, MoTRI, the National Bank of Ethiopia, and the ministries of Revenues and Industry. The committee is charged with setting minimum export prices, conducting international market studies, and ensuring fair competition. It will report to the Ethiopian Investment Board, led by Prime Minister Abiy Ahmed (PhD).
Addressing potential regulatory changes, Commissioner Hanna hinted at a revision to the foreign currency retention procedures.
“It’ll be maintained for now,” she told Fortune, suggesting that adjustments might be considered after a careful assessment of the macroeconomic environment.
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