01 August 2014 News Round-Up

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Leaders explore joint financing for LAPSSET project

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Written by

The leaders who attended a consultative meeting in Nairobi on Thursday were President Yoweri Museveni of Uganda, Prime Minister Hailemariam Desalegn of Ethiopia and President Salva Kiir Mayardit of South Sudan/PSCU

The leaders who attended a consultative meeting in Nairobi on Thursday were President Yoweri Museveni of Uganda, Prime Minister Hailemariam Desalegn of Ethiopia and President Salva Kiir Mayardit of South Sudan/PSCU

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NAIROBI, Kenya Jul 31 – Regional leaders are exploring ways to jointly finance the Lamu Port, Southern Sudan-Ethiopia Transport (LAPSSET) corridor project.

In a statement read by their host President Uhuru Kenyatta at the end of the meeting, the leaders noted that the seven components of the LAPSSET project require an estimated $24.5 billion (Sh2 trillion) – for the Lamu Port alone with its 32 projected berths costing $3.1 billion (Sh272 billion).

“With the large sums involved, it was clear to us that a joint approach that is innovative will be required for implementation,” the leaders said.

During the meeting, the leaders explored the complexities of shortening the period between project conceptualisation and the realisation of a sustainable financial model that will deliver implementation.

“We sought to learn from the African Development Bank’s Africa50 Infrastructure Fund approach, and how our joint efforts can help make a compelling business case to private sector players,” they said.

The four regional leaders said their discussion was especially informed by the upcoming Africa-USA Summit on August 4 to August 7 that will allow them a chance to engage with American investors on the LAPSSET project.

“This is a continuation of similar engagements that are being held with investors from across the Middle East and the Indian Ocean Rim,” they said.

The leaders also dwelt on the need for regional peace and security to provide the conditions in which the LAPSSET project and many others will deliver the full benefits of growth and equity to the region’s progress.

The project involves the development of a new transport corridor from the new port of Lamu through Garissa, Isiolo, Mararal, Lodwar and Southern Sudan.

This will comprise of a new road network, a railway line, oil refinery at Lamu, oil pipeline, Isiolo and Lamu Airports and a free port at Lamu (Manda Bay) in addition to resort cities at the coast and in Isiolo. It will be the backbone for opening up Northern Kenya and integrating it into the national economy.

In the 2014/2015 budget Treasury Cabinet Secretary Henry Rotich announced that Treasury had allocated Sh116 billion which would go towards all ongoing and new road projects in the country.

http://www.capitalfm.co.ke/business/2014/07/leaders-explore-joint-financing-for-lapsset-project/

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Transmission Line Built With Br273 Million Complete

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The Alamatta-Mehoni-Mekelle transmission line built with an outlay of over 273 million Birr is completed, said the Ethiopian Electric Power (EEP).

power

EEP External Relations Head, Misikir Negash said 141km long transmission line carries 230 kilovolt. The project, which is part of the Growth and Transformation Plan (GTP), would help channel the 300 mega watt generated from Tekeze and the 120 MW from Ashgoda Wind Farm to other lines. Of the over 273 million Birr allotted to the project, 85 percent was obtained from the Africa Development Bank as a long-term loan and assistance, and the remaining covered by the Ethiopian government.

The project was executed by Kalpatur, an Indian company, the head said. According to Misikir, the electric power demand of Ethiopia is growing on average by 35 percent as its economic growth is rapid and continuous. Electric power generating infrastructures are being expanded to meet this, he added. The goal of the GTP is to increase the electricity coverage of the country, which is 55 percent, to 75 percent, he noted. Ethiopia has the potential to generate over 1 million MW from water, wind and as geothermal energy.

http://allafrica.com/stories/201408010844.html

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UK extends £17 mln for tax, audit program

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The United Kingdom extended on Friday, August 1, 2014 a grant amounting to £17 million to address constraints related to tax, audit and transparency both at federal and regional levels.

Finance and Economic Development State Minister Ahmed Shide and Julius Court, Head of Office of Department for International Development signed the Memorandum of Understanding.

Speaking on occasion, Ahmed appreciated the support of the government of the United Kingdom. He said the UK has provided 300 million pounds on average every year to support various development activities in Ethiopia.

According to the State Minister, the Department for International Development is the big donor in various development projects and programs of Ethiopia; and the two countries have been working to strengthen their trade and investment relations.

Julius Court, Head of Office of Department for International Development, on his part said the government of United Kingdom will work with the government of Ethiopia on tax, audit

and transparency, in addition to the cooperation the countries have in health, education and infrastructure.
He said the United Kingdom Department for International Development will extend the necessary support for the realization of the program in Ethiopia.

http://www.waltainfo.com/index.php/editors-pick/14379-uk-extends-p17-mln-for-tax-audit-program-

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India’s Allanasons to Invest $20 Million in Ethiopian Meat Plant

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By William Davison Aug 1, 2014

allanagroup

Allanasons Ltd., an Indian food company, plans to invest $20 million in a meat-processing plant in Ethiopia as it seeks to take advantage of a large population of naturally fed cattle and sheep.

The Mumbai-based producer has been allotted land in Adami Tulu in Oromia region, about 170 kilometers (106 miles) south of the capital, Addis Ababa, where it will build a facility to produce 70 metric tons of meat products a day, said Aman Khan, head of Ethiopian operations.

“Ethiopia has the largest livestock population in Africa and the demand for meat proteins continues to increase globally, so we feel it is the right decision to invest in the livestock sector here,” he said in an e-mailed response to questions today. Allanasons is India’s largest exporter of processed food and commodities, according to its website.

The Horn of Africa nation’s estimated livestock population of 49 million cattle, 25 million sheep and almost 22 million goats directly contributes 15 percent to 17 percent of gross domestic product, according to the Ethiopian Agricultural Transformation Agency. Foreign sales earn about $150 million a year, or 10 percent of exports, and another $300 million of livestock may also be illegally exported, it said.

While veterinary and feeding practices should be improved in Ethiopia, the absence of growth hormones and antibiotics causing “major concern” for the industry is an advantage, Khan said. “The quality of meat of Ethiopian livestock should be considered good,” he said.

Officials need to address skilled labor shortages and poor transport infrastructure and cold chain systems to improve Ethiopia’s competitiveness, he said. “We feel that the government should consider supporting the meat industry in a more dynamic way considering the stiff competition,” Khan said.

http://www.bloomberg.com/news/2014-08-01/india-s-allanasons-to-invest-20-million-in-ethiopian-meat-plant.html

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Youth Playing Significant Role in Dev’t of Ethiopia: NPC

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The close to thirty percent youth of the total population of Ethiopia play substantial role in the development of the country, the National Planning Commission of Ethiopia (NPC) said.

Speaking at the 21st anniversary of the official launching of the National Population Policy and the commemoration of World Population Day, Acting Director of Population and Development Directorate of the National Planning Commission of Ethiopia, Fikre Gesso, said the 29.5 percent of the total population, which is 24.7 million, are young people between 15 and 29 years old and play a significant role in the country’s socio-economic and political development.

According to him, the increasing number of youth does not affect the country as they are additional resource. Ethiopia is following a policy of engaging the youth to work place, which is enabling to the growth of local investment and increasing saving culture, Fikre noted.

The government of Ethiopia introduced a youth policy in 2004 with the objective of encouraging the active participation of the youth in building a democratic system and good governance as well as the economic, social and cultural activities in an organized manner, to enable them to benefit fairly and equitably from socio-economic development outcomes, the acting director elaborated.

Deputy Commissioner of National Planning Commission with the rank of State Minister, Getachew Adem, on his part said the country is going through a demographic transition with fewer younger dependents, fewer older dependents and the largest segment of population of productive working age.

The young age dependency ratio of the country has declined dramatically from 88.4 in 1994 to 75 in 2012, leading to the demographic dividend, he said.

According to ENA, the 2014 World Population Day was observed on Wednesday, July 30, 2014 here in Addis Ababa under the motto “invest in young people”.

http://www.waltainfo.com/index.php/explore/14371-youth-playing-significant-role-in-devt-of-ethiopia-npc

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Gambella set to reap 4 million quintals output in EC 2006/7 crop season

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Utmost efforts are underway to reap about 4 million quintals of agricultural output in Gambella Regional State in 2006/7 crop season, according to the regional state agricultural development bureau.

Bureau Agricultural Input and Marketing Process Owner, Alemayehu Tadesse, made the remark at a training organized for agricultural development agents as well as model farmers and semi pastoralists in Itang Woreda.

“Coordinated efforts are being made to raise agricultural productivity in the region to 4 million quintals in 2006/7 crop season from 1.4 million quintals at present,” he said.

He said a lot is expected from agricultural development agents, farmers and semi pastoralists for the attainment of the target.

Deputy Speaker of Gambella Regional State Council, Tito Hawariat, on his part said all stakeholders need to take active part in the efforts to defeat poverty.

More than 1,400 agricultural development agents and 1,800 model farmers and semi pastoralists attended the training, it was learnt.

http://www.waltainfo.com/index.php/explore/14360-gambella-set-to-reap-4-mln-quintals-output-in-20067-crop-season

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Houston Forum Can Open New Chapter in Ethio-American Business Relationship: MoFA

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A forum that can open a new chapter in Ethio-American business and African-American business relationship in general is underway in the US, according to the Ministry of Foreign Affairs (MoFA).

Spokesperson of Ministry of Foreign Affairs, Ambassador Dina Mufti, told journalists that the forum kicked off today in Houston, Texas. The Ethiopian high-level delegation with more than 100 members is led by President Mulatu Teshome.

The delegation would explain the investment and trade opportunities that exist in Ethiopia to their counterparts attending the forum, he added.

According to the spokesperson, two days after the Ethio-American Business Forum will be held Afro-America Leaders’ Conference. Some 50 African leaders will take part in the conference that will discuss US’ contribution to peace and security in Africa, as well as its participation in investment and trade.

The leaders will simultaneously discuss on the possibility of the extension of AGOA, it was indicated.

Meanwhile, a Tigrayan Diaspora Festival aimed at involving Tigray born persons living abroad in the development of the state will be held from July 31- August 6, 2014 in Mekelle, Tigray State, Ambassador Dina disclosed.

He said the festival will open an opportunity to the diaspora to engage in the socio-economic development of the state.

According to him, a symposium that discusses quality of health, quality of education, good governance, investment, and technology transfer will be held during the festival.

http://www.waltainfo.com/index.php/explore/14355-huston-forum-can-open-new-chapter-in-ethio-american-business-relationship-mofa

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Dairying: A way out of poverty

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Posted on July 30, 2014

Ato Nurhussien holding the first born of his first cow (Photo:ILRI\Yaynesht Tesfay)

Ato Nurhussien with the first born cow of his first cow

For many poor households, dairying is considered a powerful pathway out of poverty. Marketing of dairy products, however, remains a major challenge to the realization of this potential. In Ethiopia, this challenge is exacerbated by the absence of structured marketing channels and strict religious observance by Orthodox Christians who do not consume animal products during fasting days and seasons. Despite such challenges, there still exist windows of opportunities to exploit niche markets and create wealth. The ability to exploit these markets to a large extent depends on one’s stamina and innovation in establishing reliable market outlets for dairy products.

We want to demonstrate the credibility of this using evidence from a dairy farmer in Agula’a, a small town located 30km north of Mekelle in Tigray region of northern Ethiopia.

Nurhussien Aligoshu is a dairy farmer who has never had a formal education in agriculture and has had no prior exposure to modern dairy farming. His first experience in dairying was in 2006 when a local organization offered him some seed money to purchase a crossbred dairy cow. Nurhussien was able to expand his crossbred dairy herd from 1 to more than 15 cows in just 8 years. His daily milk sales fluctuate between 30 and 70 litres per day depending on demand. Over the same period, Nurhussien’s monthly income from the sale of milk grew from barely 500 Birr to 15,000 Birr.

In addition to managing his dairy cows, Nurhussien has successfully organized and led a dairy marketing cooperative named ‘Daero‘ (with 30 active members) that has been able to find niche markets for liquid milk. Daero cooperative has approved a binding by-law which stipulates that members are not allowed to sell water-adulterated and coagulated/clotted milk. A fine of up to 500 Birr and cancellation of membership rights are imposed on offending members.

The by-law also requires members to participate in various committees which are assigned with diverse tasks. The marketing committee has the sole responsibility of identifying potential milk and heifer markets. The quality control committee oversees the maintenance of herd records and collection of good-quality raw milk to be delivered to cafés, hotels, and restaurateurs through trusted milk collectors/distributors who have established an elaborated business relationship with the dairy marketing cooperative. The selling of replacement heifers, which earns up to 30,000 Birr per heifer, within and outside Tigray, is also another income source enjoyed by the members.

The successful experience of Nurhussien and his fellow cooperative members clearly demonstrates the potential of dairy in boosting income and creating wealth for people with limited options. Members of the dairy marketing cooperative are able to engage in dairying with a clear vision and have managed to create a low- risk environment for dairy farmers. Success came from their overall cooperation, realistic organizational and institutional interventions, sharing of risks, minimizing of ad hoc milk sales and establishing of reliable marketing links with milk collectors/distributors.

Ato Nurhussien chopping maize for making silage using air tight plastic bags (Photo:ILRI\ Yayneshet Tesfay)

In view of the ever-increasing herd size and volume of milk produced by the marketing group members that necessitated other market outlets, the Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project identified potential clients and facilitated market linkages with large institutional milk consumers. LIVES also collaborates with Nurhussein and other members of the dairy marketing cooperative to test improved dairy technologies such as simplified corn silage using plastic bags.

Written by Yayneshet Tesfay (PhD) with contributions from Dawit Woldemariam and Gebremedhin Woldewahid.

http://lives-ethiopia.org/2014/07/30/dairying-in-wealth/

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Supporting young entrepreneurs in Ethiopia

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Students of the entrepreneurship and business training course

These university lecturers will go on to become local trainers and Business Development Services advisors after completing an intensive six-day entrepreneurship training course supported by UNDP.

Aynalem Ayele is a young woman brimming with confidence. “Ayni’s Design,” her small jewelry and clothing design shop in the heart of Ethiopia’s capital, Addis Ababa, offers creative designs of leather products, incorporating cultural motifs and items into everyday products for the young and savvy urban customer.  

Aynalem just completed an intensive six-day entrepreneurship and business training course as part of a UNDP-supported programme to accelerate the development of the private sector across Ethiopia.

As she reflects on expanding her business, Aynalem says excitedly that the training course helped her understand one important thing that other courses did not: “How you calculate ahead your business risks.”

UNDP provided US $6 million to the $26 million Entrepreneurship Development Programme for Ethiopia, launched in 2013 by the country’s prime minister, Hailemariam Desalegn, who remarked that “the acute lack of social capital and particularly that of entrepreneurship skills (…) stands in the way of ensuring rapid industrial growth.”

Girum Tariku, an Ethiopian in his late 30s, joined the programme after having been forced to file for bankruptcy. Following the training, he opened a printing and communication company. He is both the director and a major shareholder of the firm, and provides employment for six young people.

“I took the entrepreneurship training and it really helped me to translate my vision into clear workable objectives,” Girum said. His business, started with less than $1,500, now boasts an expanding capital asset of over around $52,000. Girum speaks of one day becoming a major player in the East African private enterprise scene.

Recent rollouts have helped introduce the programme to budding entrepreneurs and reached out to university lecturers all over the country, providing them with basic entrepreneurship skills during trainers’ workshops.

In addition to financing the scheme, UNDP identified similar programmes in Ghana and brought in trainers from that country to teach participants.

“This country is on the cusp of a major development transformation,” says UNDP Resident Representative Eugene Owusu. “In Africa, Ethiopia is the country to watch!”

The programme is expected to help 200,000 entrepreneurs through skills training and business advisory services over a period of three years.

To ensure the full implementation and sustainability of the programme, 25,000 additional people will be trained as trainers and a further 20,000 as business advisors.

Ethiopia is currently implementing the first of three five-year strategic plans to achieve Middle Income Country status by 2025, and the country is on track to meet the Millennium Development Goals on halving poverty by 2015.

Micro- and small businesses are expected to play a strong role in this transformation and to become a spring board for developing a vibrant private sector.

Around 1 million jobs have been created annually due to the focus on supporting micro and small enterprises in the country, with official reports indicating that 40 percent of the new jobs go to women. Latest official figures place urban unemployment rate at 17.5 percent, while youth unemployment is 23.3 percent.

http://www.undp.org/content/undp/en/home/ourwork/povertyreduction/successstories/supporting-young-entrepreneurs-in-ethiopia/

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Ethiopia sees ‘surge’ in MICE growth

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  sheraton
Sheraton Addis inner grounds
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The Africa Hotel Investment Forum recently announced it was moving its 2014 event to Addis Ababa.

The organisation said the move was prompted by a “surge in interest from sponsors” leading to a need for a bigger space. It will now be held at the Sheraton in September. This reflects growth in the country’s nascent meetings, incentives, conferences and exhibitions (MICE) activities.

The African Union Commission is also based in Addis, in the striking, 100m-tall AU Conference Centre complex, built and funded by the Chinese. The United Nations Conference Centre has a wide choice of events spaces; and international hotels with MICE facilities include Sheraton, Radisson Blu, Hilton and Intercontinental.

A growth in summits and conferences taking place in Ethiopia has prompted Ethiopian Airlines’ in-house tour operator, Ethiopian Holidays, to develop MICE services alongside its leisure products. The operator can capitalise on its leisure portfolio for MICE venues – such as the handsomely-appointed Haile Resort overlooking Lake Hawassa, owned by Olympic gold medallist runner Haile Gebrselassie.

Other venues include the Kuriftu group’s Diplomat restaurant in Addis; its luxury lakeside spa resort in Debre-Zeit; and in Ziway, its excellent Wine House and Restaurant – in partnership with the nearby wine estate run by leading French vintner Castel.

http://buyingbusinesstravel.com/news/3022894-ethiopia-sees-%E2%80%98surge%E2%80%99-mice-growth

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 Ethiopia to finalize Sustainable Tourism Master Plan

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Ethiopia STMP

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PRESS RELEASE

Addis Ababa, 29 July 2014 – The Federal Democratic Republic of Ethiopia is in the process of formulating its Sustainable Tourism Master Plan (STMP). The STMP is an initiative currently being developed through the technical support provided by the Sub-Regional Office for Eastern Africa (SRO-EA) and the Division for Regional Integration and Trade (RITD), in partnership with the Ministry of Culture and Tourism. The process of formulating the S TMP has entailed extensive field missions across the country, in-depth interviews with key stakeholders drawn from various sectors including public, private, professional organisations, civil society, regional government officials and academia. In addition, two regional consultative meetings have been already been held in Mekele and Dire Dawa and one more is scheduled to take place in Addis Ababa between 30th and 31st of July 2014. It is expected that following the field missions, interviews with stakeholders and the consultative meetings, a zero draft STMP will be prepared within one month which will then be subjected to national validation meeting to pave way for the preparation of the final draft of STMP.

The STMP is part on-going process of the implementation of the Inter-Governmental Authority on Development (IGAD) STMP. The IGAD STMP was informed by a regional tourism study commissioned by UNECA SRO-EA in 2010 and the green light for its formulation approved at the 15th meeting of the Intergovernmental Committee of Experts (ICE) of SRO-EA that took place in Djibouti, between 21st to 24th February 2011, whose main focus was on tourism under the theme Towards a Sustainable Tourism Industry in Eastern Africa. The IGAD STMP has since been completed and was officially launched the IGAD Tourism Inter-Ministerial forum held in Nairobi, Kenya by His Excellency Uhuru Kenyatta in December last year. In his opening remarks the President observed that ‘it is sad to note that our continent’s share of the global tourism industry stands at 52.4 million or 5.1% of
international arrivals, which translates to 33.6 billion US dollars or 3.1% of international tourism receipts.’ The IGAD STMP, among others, strongly recommends that member states align their respective tourism development instruments to the regional framework.

The formulation of the STMP for the Federal Democratic Republic of Ethiopia is indeed timely given the current prioritisation of the industry in the country’s development agenda following the establishment of National Tourism Transformation Council, chaired by His Excellency the Prime Minister, Hailemariam Desalegn, and the Ethiopian Tourism Organisation which is to spearhead tourism product development and marketing. The industry is, further, identified as a key sector in both the 1st and 2nd Growth and Transformation Plans. The identification of the sector as such is due its strong potential to bring about meaningful socio-economic development owing to the fact that such potential remains largely untapped. For instance, in terms of the prevailing cultural and heritage resources, the country is ranked at position 33 globally, above Egypt which is ranked 39th, and is regarded as one of the safest countries in the world. Yet, despite its current challenges, Egypt continues to draw over 9 million international tourist arrivals annually compared to the country’s 550 000 as of last year. Nonetheless, the industry still
contributes 12.3% of the GDP, is a leading foreign exchange earner and a key sector for both domestic and foreign investment valued at ETB 16.38 billion in 2013. The industry is also a one of the leading employers generating over 2.4 million jobs both directly and indirectly.

By embracing the IGAD STMP, which among others, advocates for both inter and intra-regional tourism, the Federal Democratic Republic of Ethiopia is, therefore, undertaking bold steps in the right direction of regional integration through the promotion of trade in services and subsequently towards Continental Free Trade Area.

Issued by:
ECA External Communications and Media Relations Section
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: ecainfo@uneca.org
www.uneca.org

http://www.ethiosports.com/2014/07/29/ethiopia-to-finalize-sustainable-tourism-master-plan/

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Kefi Minerals Preparing Tulu Kapi Mine Licence Application

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LONDON (Alliance News) – Kefi Minerals PLC Thursday said it is preparing a mine licence application for its Tulu Kapi gold project in western Ethiopia, following promising exploration results.

In a definitive feasibility study update, the company said recent drilling and trenching continues to confirm the previously modelled mineralisation, and an independent review of the resource model is underway.

Kefi said this milestone will be followed by a new mine plan and JORC-compliant reserves estimate, which are required to reactivate the Mining Licence Application by the end of 2014 and trigger construction in 2015.

JORC is the Joint Ore Reserves Committee, which provides mineral-resource classification schemes.

The company said reverse circulation infill drilling continued to hit strong gold mineralisation at the site, with results including 9 metres at 4.24 grammes per tonne of gold and 13 metres at 3.21 grammes per tonne of gold.

Last month, KEFI Minerals bought Nyota Minerals Ltd’s remaining 25% in the Tulu Kapi gold project for GBP1.5 million in cash and shares, having bought the first 75% in December 2013 for GBP4.5 million.

Kefi Minerals shares were quoted up 1.8% at 1.40 pence Thursday morning.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

http://www.lse.co.uk/AllNews.asp?code=qm9vl00y&headline=Kefi_Minerals_Preparing_Tulu_Kapi_Mine_Licence_Application

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