02 April 2014 Business News Round-Up


Ethiopia Launches Climate Innovation Centre



VENTURES AFRICA – Climate Innovation Centre (CIC), a clean technology revolution, has started operations in Ethiopia and is expected to deploy and develop climate friendly technologies.

Spearheaded by Infodev, a global innovation program by World Bank, Ethiopia CIC was established in December 2013 and launched with the support of a $5million grant agreement between the World Bank and the Addis-Ababa University.

The purpose of the centre is to drive innovative solutions to climate change through the provision of financial support and mentorship to local climate entrepreneurs specialized in energy efficiency, biofuels, renewable energy and agribusiness.

Over the next ten years, Ethiopia CIC is expected to support over 200 technologically driven climate ventures with the provision of about 12,000 jobs.

It is also expected to help over 3 million Ethiopians adapt to climate change, boost access to energy for 265,000 people and increase agricultural practices for 120,000 farmers.

According to experts, lack of proper green energy strategy will lead to adaptation expense that will cost Ethiopia $5.84 billion yearly. The Ethiopian government is expected to work closely with the CIC with respect to the strategies outlined by the Climate Resilient Green Economy (CRGE).

CIC is a brainchild of Infodev’s Climate Technology Program which is creating a network of CICs all over the world so as to encourage a pro-active participation of countries in the ongoing global clean technology, thus reducing harmful emissions.

The first CIC in Africa was opened in Kenya and others are being established in South Africa, Ghana and Morocco.



Research and Markets: Ethiopia Textiles Report 2014 – The Emerging Textile and Clothing Industry


DUBLIN–(BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com/research/v6pw4z/ethiopia_the) has announced the addition of the “Ethiopia – The Emerging Textile and Clothing Industry” report to their offering.


“Ethiopia – The Emerging Textile and Clothing Industry”

Over recent years there has been an increasing amount of interest in Africa as a continent with immense resources and potential. Ethiopia in particular has been singled out as a land of growth and investment opportunity.

Ethiopia grows some of the world’s finest cotton and has a rich textile spinning and weaving history, yet its importance on a global scale remains insignificant. With several government incentives in place, a priority given towards developing the textile and clothing industry across the value chain, a viable business environment and duty free market access to both US and EU, Ethiopia is now beginning to attract international buyers and investors, as this report demonstrates. Having experienced approximately 8% GDP growth consistently since 2008 and a stable political framework since 1995, it still remains largely un-touched, un-explored and un-tapped.

The report sets the scene on one of the oldest countries in the world, now the fourth largest and second fastest growing economy in Sub Saharan Africa. It will show how the textile and garment sector in Ethiopia has set ambitious targets to expand rapidly by 2015. The textile and clothing sector is considered as the key priority sector of the Governments Industrial Development Strategy as part of the Growth and Transformation Plan. With a vision to become a world – class institute by 2024, TIDI’s mission (The Textile Industry Development Institute of Ethiopia) is to enable the Ethiopian textile industry to compete globally by providing sustained investment promotion, consultancy, training, research, laboratory and marketing support and services.


Key Topics Covered:

Chapter 1: Africa, a destination for apparel and textile?

Chapter 2: Ethiopia today, recent factsheet and profile

Chapter 3: Creating value across the value chain

Chapter 4: Emerging Ethiopia, on the global fashion platform

Chapter 5: SWOT analysis, what’s the verdict?

Chapter 6: Competition and comparison

Chapter 7: Made in Ethiopia, making it a reality

Chapter 8: Directory of Ethiopian textile and clothing factories

Visit http://www.researchandmarkets.com/research/v6pw4z/ethiopia_the



Research and Markets
Laura Wood, Senior Manager
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Process and Materials



World Bank to boost development funding


WASHINGTON — The World Bank plans to increase its funds for development by around 40% per year over the next decade as part of its first major realignment since 1997, the institution’s president said on Tuesday.

  Jim Yong Kim said the development lender would focus on 10 countries — including India, China, Bangladesh and the Democratic Republic of Congo — that are home to 80% of the world’s extreme poor. These residents live on less than $1.25 a day.

The bank’s commitments should grow to more than $70 billion a year in the next decade, from about $45-50 billion now, Mr. Kim said. Reuters reported part of the funding boost in February.

“The world’s development needs, of course, far outstrip the World Bank Group’s abilities to address them,” Mr. Kim told the Council on Foreign Relations.

“But we can do much, much more.”

Mr. Kim spoke ahead of next week’s meetings of the World Bank and the International Monetary Fund, where the bank will formally present its increased financial capabilities.

The growth in the bank’s lending and investment guarantees, alongside planned staff and budget cuts, are part of a massive reorganization Mr. Kim launched after he assumed his post nearly two years ago. He hopes the reforms will make the institution more relevant, especially to middle-income countries.

Middle-income countries, including the bank’s five biggest borrowers — China, Brazil, Turkey, India and Indonesia — can rely more on private funding and bilateral loans as they grow.

But the bank is betting these countries, which still have deep pockets of poverty, will want access to its experience in areas like the environment and infrastructure. It also offers lower loan rates than the private sector.

Mr. Kim said the planned lending increase was partly aimed at meeting greater demand from its biggest borrowers. The bank raised its loan limits to allow each of those countries to borrow an extra $2.5 billion in total.

“This is an extremely positive sign for us, in the sense that even the largest middle-income countries, China, India, Brazil, continue to want to do business with us,” Mr. Kim told reporters.

The bank said there would be expansions in all of its major branches, including a $100-billion boost in the fund for middle-income countries, known as the International Bank for Reconstruction and Development.

The bank’s private sector arm, the International Finance Corporation, will boost annual commitments to $26 billion a year. And the Multilateral Investment Guarantee Agency, which provides political risk insurance, aims to increase its guarantees by 50% over four years.

“If we are going to help developing countries end extreme poverty and boost shared prosperity, we have to provide them with more financial resources, more solutions-based knowledge, and help leverage more private sector investment,” Mr. Kim told reporters ahead of his speech.

Nicolas Mombrial, head of the Washington branch of Oxfam, said the bank should also focus on improving the quality of its lending rather than just pushing money out the door. “This will be bad news for poor people if World Bank social and environmental standards are not improved,” he said in a statement.

Only 40% of World Bank employees believe the institution prioritizes development results over the number and volume of transactions, according to a survey obtained by Reuters.

A year ago, Mr. Kim committed the bank to the twin goals of eliminating extreme poverty by 2030 and boosting the incomes of the poorest 40% of the population in each country.

He has also said the bank should be more selective, focusing on “bold” projects and technical solutions where it can make the biggest difference. The World Bank must meet its goals amid greater competition for development funds and a tight budget.

“I believe we must get leaner in order to get bigger,” Mr. Kim said. He said the bank was likely to have fewer staff over time, though he did not have a number in mind.

The World Bank in October announced it was cutting $400 million from its budget over three years. — Reuters


Premier praises success attained in agricultural sector


Addis Ababa, 2 April 2014 (WIC) –Prime Minister Hailemariam Desalegn praised the success gained in improving agricultural productivity during the past three and half years of the GTP period, which stemmed from the use of modern technology by farmers.

In an exclusive interview with WIC recently PM Hailemariam said the achievement is the result of the right policies and directions put in place by the government.

The directions that EPRDF forwarded during its 9th Organizational Conference held in Bahir Dar town last year to improve productivity have borne fruit, he said.

During the past years, a lot has been done to introduce new agricultural technologies to farmers, he added.

According to the premier, favorable condition that would help farmers to harvest three times a year using irrigation development will be created, thus ensuring sustainability of productivity.

The premier added that efforts would also be made to improve productivity of framers over the coming harvest season by scaling up best practices and using agricultural inputs.

Agriculture is one of the sectors given due attention in the Growth and Transformation Plan (GTP) period in order make poverty history, he pointed out.



Nation Increasing Funding, Building Capacity


Nation Increasing Funding, Building Capacity

Addis Ababa April  02 / 2014 – The experience being gained in the course of the construction of the Grand Renaissance Dam will increase the building and financial mobilization capacity of Ethiopia, the Ministry of Foreign Affairs said.

While briefing journalists yesterday, Ministry Spokesperson, Dina Mufti said the process that the country follows to fund this huge project displayed the importance of reliance on local financial sources and increase building capacity.

The experience gained from the construction of the dam in mobilizing funds and knowledge transfer, will enhance the country’s capacity to fund mega projects without relying on foreign aid.

The construction of the Dam is a result of increased financial capacity, reliance on local sources as well as effective foreign diplomacy of the country, Dina said.

Egypt, which relies almost totally on the waters of the Nile, opposed the dam saying their supply will be under threat.

Egypt and Sudan currently get the lion’s share of the Nile’s waters under colonial-era treaties. While Sudan backs Ethiopia’s plans, Egypt has remained opposed.

Ethiopia has insisted the dam will not harm the downstream countries, instead benefit them in a number of ways, including reducing siltation and reduce excess evaporation, among others.

Dina described the dam as ‘an integral part of cooperation’ between Ethiopia and lower riparian countries, rather than being source of conflict.

He urged Egyptians who opposed the construction of the dam, to stop their baseless accusations and cooperate with Ethiopia, because the dam will not harm ‘in any way the benefits of downstream countries’.

The government and people of Ethiopia will not change their stand on the construction of the Dam, Dina said, adding, rather they are work day and night for its timely completion.

Egypt, Ethiopia and Sudan were discussing on the study conducted by a tripartite committee formed by the three countries, until Sudanese President Omar Al-Bashir announced his support for the dam.

Egypt has demanded that Ethiopia submit the dam’s construction plans for assessment by other international experts, which is opposed by Ethiopia.

Since the launch of the construction on 2 April 2011, construction of the dam has been carrying out 24 hours a day. So far 30 percent of the construction has completed.

The third anniversary of the laying of foundation for construction of the Dam is being celebrated in Juba, Benishangul Gumuz State 900km north-west of the capital Addis Ababa.

Once completed, in three years, the dam will be Africa’s largest hydropower dam, standing some 170m tall and covering an area of 1,800 sq km.


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