19 June Ethiopian Economic News


Geology and Mineral Information Systems Experts to meet in Addis Ababa


 Experts working in the area of African geology and mineral information Systems will assemble in Addis Ababa, Ethiopia from July 8-10. The meeting will take place amidst a growing consensus among experts that there is a lack of geological map coverage at appropriate scales across many African countries. In addition, there is a generally limited capacity currently available to fill these gaps through for example, field mapping, geophysical data acquisition and processing, and spatial data management among others.
According to the African Minerals Development Centre (AMDC), the lack of minerals resource potential information is cited as putting African countries at a disadvantage when developing policies as well as negotiating contracts under the relevant legislation, and the lack of data also reduces the levels of investment in minerals exploration and mining activities including related upstream and downstream economic activities. Furthermore minerals are essential for development not only in terms of beneficiation, the generation of foreign currency or foreign direct investment but also to provide building and construction materials in support of infrastructure investments, as inputs for manufacturing, and for agriculture e.g. agro-minerals and as inputs to fertiliser production.  In addition, there are gems and semi-precious stone that also provide opportunities for income supplements, livelihoods, new industries and the creation of skilled labour.
The meeting will discuss mineral resource classifications, the role of Public Private Partnerships (PPPs) in leveraging resources for filling geology and minerals information gaps and the role of geology and minerals information in areas raised by the AMV, such as defining mineral exploration blocks for auction as well as leasing or tenure.
Beyond these issues, there is a need to define the principles and practices that inform the management of geology and minerals information and international interventions supporting the collection, management and dissemination of these data.
Not to editors: In 2009, African heads of state adopted the African Mining Vision (AMV) which identified the level and quality of resource potential data as a critical constraint and factor for the success of realising the vision.  In December 2011 the Action Plan for Implementing the AMV was adopted by the Second African Union Conference of Ministers Responsible for Mineral Resources Development.  The Plan set out actions that would build a sustainable future for Africa’s extractive industry.  This included actions in the area of geological and mining information systems with the goal of developing a comprehensive knowledge of Africa’s mineral endowment.



Ethiopia Secured U.S $ 100 Million Loan


Ethiopian government secured a U.S $ 100 Million promised loan from the Korean Export Import (EXIM) Bank. The loan is extended for financing part of the Modjo-Hawassa highway project.

The loan agreement was signed earlier and it was on Monday, June 9, 2014 the agreement was
given a green light from the House of Peoples’ Representative through a ratification bill.

Modjo-Hawassa highway is a 218 Kilometers road and it is going to be constructed in two
phases. The first phase will cover a total distance of 93 Kilometers and stretches from
Modjo to Ziway. This phase is also divided in to two lots.

From the total cost of the construction, which is U.S $ 350 Million, U.S $ 128.5 Million is already secured as loan from the African Development Bank for the construction of the first lot.

The loan obtained from the Korean EXIM Bank is going to be used for the second lot that stretches 37 Kilometers. This lot is going to extend from Meki to Ziway.

The loan from the Korean EXIM Bank will be paid in 40 years with a period of grace for 15 years.



Major Italian Companies Take Part in Specialized International Trade Exhibition


Major Italian Companies Take Part in Specialized International Trade Exhibition

A five-day Specialized International Exhibition in Agriculture and Food (AGRIFEX) will be opened tomorrow on June 19 at the Addis Ababa Exhibition Centre.

In the 7th Specialized International Exhibition in Agriculture and Food will take part 8 major Italian companies that have over 50 years of experience in agro-business, according to the leader of the delegation.

Delegation leader and Director of NOVE Consulting Italia, Fabio Santoni, said representatives of the companies will also meet the Ethiopian Agricultural Transformation Agency and Ministry of Agriculture to discuss issues of cooperation as well as technology and knowledge transfer for the success of the Ethiopian agricultural transformation.

He also said the Italian companies are taking part in this exhibition not for the sake of showing up but to act as a technology and knowledge transfer agents. “This could support Ethiopian agro-enterprises by using the right technology and produce quality products standard for international market,” Santoni said.

Since agriculture is the major means of development and backbone of the economy in Ethiopia, international trade exhibitions like AGRIFEX would have a great benefit to develop the sector and sustain economic development through technology transfer, he added.

The objectives of the exhibition are to introduce Ethiopian Business enterprises and their products/services to the general public and the international business community, bring together technology suppliers and seekers and facilitate the transfer of  technology in agriculture and food sector, serve as a platform for exploring the possibilities of joint venture investments in Ethiopia, and create a forum where local and international business communities could come together and reach business agreements, among others, according to the website of Addis Ababa Chamber of Commerce and Sectoral Associations.


Ethiopia Wants to Work with Israel to Fight Terrorism: Hailemariam


Ethiopia Wants to Work with Israel to Fight Terrorism: Hailemariam

Prime Minister Hailemariam Desalegn expressed his government’s interest to closely work with Israel in fighting terrorism.

While conferring with the visiting Israeli Foreign Minister Avigdor Liberman yesterday, the Premier called on Israel to share its best practices for the realization of the anti-terrorism struggle that involves many African countries including Ethiopia.

Hailemariam said, Ethiopia will exert maximum effort to further strengthen the age-long and historic relation with Israel particularly in political, diplomatic and economic areas.

The two parties agreed on the need to increase the annual trade relation to two billion USD from the current 112 million USD.

Ethiopia will work to increase the trade relation by increasing the five days flights by Ethiopian Airlines to Tel Aviv thereby boost trade, investment and tourism ties, according to a high level official who attended the meeting.

After discussing with Hailemariam, the Israeli Minister Liberman told reporters that Israel will support anti-terrorism struggles of African countries.

His visit to Ethiopia is aimed at boosting the people-to-people and government to government relation, he said.


Ethiopia Keen to Learn from Israel’s Best Practices in Agriculture: President


Ethiopia Keen to Learn from Israel’s Best Practices in Agriculture: President

President Mulatu Teshome said Ethiopia is keen to learn from best practices of Israel in modernizing agriculture.While discussing with Israel’s Foreign Minister Avigdor Liberman yesterday, the President said that Ethiopia is interested to expand practice of drip irrigation technology, in which Israel is best at.

Ethiopia has started to use drip irrigation in some areas and is desirous to expand it to other parts.

The President expressed Ethiopia’s desire to cooperate with Israel in tourism and be one of the major destinations of Israeli tourists, according to Amb. Dina Mufti, Spokesperson of the Ministry of Foreign Affairs.

After the discussion, the Israeli Minister told reporters that there is a desire to boost the people-to-people relation between the two countries to a ‘strong’ economic cooperation.
Israel is committed to deepen ties with Ethiopia and cooperate in industry, information technology and pharmacy, among others.

The Minister accompanied by a 50-member business delegation is in Ethiopia for a two-day state visit.’s-best-practices-in-agriculture-president&Itemid=260


Mexico’s FM, Business Delegates to Visit Ethiopia


Mexico’s FM, Business Delegates to Visit Ethiopia

A high-level business delegation led by Mexico’s Foreign Minister will come to Addis Ababa for an official visit to Ethiopia, Ambassador Alfredo Miranda disclosed.

In the exclusive interview with Ethiopian News Agency, Mexico’s Ambassador to Ethiopia, Alfredo Miranda, said Mexico’s Foreign Minister Jose Antonio Meade Kuribrena will arrive here in October 2014 leading a big delegation of investors engaged in textiles and agriculture.

During their stay in Ethiopia, the business delegates will confer with members of the Ethiopian business community, Ethiopian and Addis Ababa chambers of commerce and sectoral associations as well as the Ethiopian Investment Agency, it was indicated.

According to the ambassador, the business delegates will deliberate on how they could jointly work in partnership with their Ethiopian counterparts, in addition to assessing the general trade and investment environment in Ethiopia.

The ambassador also stressed his country’s commitment to work with Ethiopia to eradicate poverty, which is the enemy of both countries.

He recalled the signing of the agreement between Addis Ababa University and National Autonomous University of Mexico to work together in science and technology, research and scholarship, among others, as an effort to bolster relations of the two countries in higher education.

The countries are working closely in curbing climate change, fighting terrorism and drug trafficking, according to Ambassador Miranda.

He further expressed his special appreciation to the effort Ethiopia has been exerting to bring peace and stability in East Africa.

Ethiopia and Mexico established diplomatic relations 65 years ago.’s-fm-business-delegates-to-visit-ethiopia&Itemid=260


Export Products on the Increase


Export Products on the Increase

The export products Ethiopia has been trading with the rest of the world are on the increase, according to the Ministry of Trade.
The types of products being sent abroad have now exceeded 30, and 2.6 billion USD was earned from the products in the past ten months, the ministry said. The revenue also surpassed the earning of same period last year by more than 120 million USD.
Ministry Public Relations and Communications Head, Amakele Yemam, told ENA that increasing types and amount of export products alongside increasing destination markets is crucial to become globally competitive.
Currently, 15 types of the products exported are agricultural, 10 industrial, and the rest minerals and others. This is a huge achievement as the country used to export not more than three major items ten years ago, the head elaborated.
Amakele said the effort being exerted to export value added products instead of raw materials has been encouraging especially in the textiles and leather sectors.
The major importers of Ethiopian goods in the period were Somalia, China, Germany, the Netherlands and Saudi Arabia.


Workshop Urged for Comprehensive National Logistics


During National Logistics Strategy Study workshop Mekonnen Abera, Ethiopian Maritime Affairs Director, urged for a comprehensive national logistics strategy for Ethiopia to achieve the aim of becoming a middle income country.

Mekonnen during the workshop noted Ethiopia is still highly inefficient despite making remarkable efforts to alleviate challenges in the logistics system. He continued and said the sectors underperformance is holding back the nation’s competitiveness.

According to the Director, the study is aimed at reviewing the overall logistics system, developing blue print for a more efficient and effective system, identifying required for transformation and desgining the implementation approach.

The workshop focused on reaching consensus among key players in the sector on the major bottlenecks identified in the first phase of the study.

The study was sponsored by the United Nations Development Programme and conducted by NATHAN Associates Inc. the firm presented its findings in the transport and road operation, port and corridor performance, railway operations and terminals and air cargo operations.

The findings revealed truck fleet in Ethiopia is old, inadequate by modern standards, slow and expensive to operate. It added for the new standard gauge Addis Ababa-Djibouti railway succeed, there must be convenient and cost effective connections for the shippers.

The study also indicated the general air cargo terminal at the Bole International Airport suffers from delay in removing goods.












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