03 February 2015 Business News


Ethiopia and Egypt to cooperate on trade, investment


Ethiopia and Egypt to cooperate on trade, investment

Addis Ababa: February 3, 2015 (FBC) – Prime Minister Hailemariam and President El-Sisi held discussions on the sidelines of the 24th AU Summit.

On the occasion, President El-Sisi noted that Egypt recognizes Ethiopia’s sovereign right to utilize the Nile Waters. The two side’s discussions focused on ways to further promote the bilateral cooperation of the two countries.

According to Ato Getachew Reda, Special Adviser to the Prime Minister, the two leaders held productive discussions in promoting trade, investment, education and other areas of cooperation between the two countries.

Prime Minister Hailemariam underlined Ethiopia’s commitment to expand trade ties and learn from the experience of Egypt in promotion of trade and investment. According to Ato Getachew Reda, Prime Minister Hailemariam noted that Ethiopia understands Egypt’s interest in the utilization of the Nile Waters stressing that the development of Ethiopia is undertaking centers on the principle of mutual benefit and based on accepted norms of international water law.

Ato Getachew also noted that President El-Sisi expressed his belief that Ethiopia’s development of the Nile Waters takes in to consideration of Egypt. The two sides also agreed on the need to work closely in correcting the wrong messages spread by some Egyptian politicians and journalists with regard to the utilization of the Nile Waters.

The two leaders had met in Malabo and New York in 2014 and agreed on promoting dialogue to narrow differences with regard to the Grand Ethiopian Renaissance Dam which in turn resulted in the resumption of the tri-partite technical teams between Ethiopia, Sudan and Egypt.



Fertilizer Blending to Begin in a Month at Four Plants Nationwide


Specific areas will get specific fertilizer mix based on their soil type

fertThe Ministry of Agriculture (MoA) and the Agricultural Transformation Agency (ATA), together with four cooperative unions located in four regions are constructing four fertilizer blending factories that are expected to start supplying their products after one month.

The plants are being constructed by Gibe Dedessa Farmers Cooperative Union in Oromia Region, Merkeb Cooperative Union in Amhara Region, Enderta Multipurpose Farmers Cooperative Union in Tigray Region and Melek Site in Southern Nations, Nationalities & Peoples Region (SNNPR).

The construction of the blending factories was initiated by the first ever soil fertility study and digital soil fertility mapping project done in the 2013/14 fiscal year in 162 Weredas that revealed the soil in the country needed additional nutrients other than nitrogen and phosphorus.

The Ministry and the ATA found out that sulfur, potassium, boron and zinc nutrients are deficient in many areas which indicated that one compound fertilizer NPS and five blended fertilizers namely NPSB, NPKSB, NPSZnB, NPKSZnB, and NPSZn are needed to address the key nutrient deficiencies in the tested soils according to ATA’s 2013/14 report. Now the soil fertility survey of 350 Weredas is completed, but so far only the soil map for Tigray has been completed.

The Gibe Dedessa blending factory will avail its products to six western Oromia Zones including Illubabor Zone, Jimma Zone, Half of the western Shoa, and the four Zones of Wollega, according to Arebu Ali, Deputy manager of Union.

Through Ethiopian Soil Information System (EthioSIS) project, which undertook extensive demonstrations in 30,000 sites, both on farmers’ plots and at farmer training centers, the introduction of new fertilizers to the soil was validated.

The country, which has been using only di-ammonium phosphate (DAP) and Urea for the past 14 years, abandoned DAP and began importing a new fertilizer called NPS.

The blending factories are meant to increase the production and productivity of the farmers in the country through the supply of appropriate fertilizer to the soils.

Since 2003/04, productivity and production of cereal crops has increased by an annual average of 5.3pc and 9.1pc, respectively. Reports from the Central Statistics Agency (CSA) indicate that there is a 15.35pc increase in total cereal production over the past year, especially in teff, wheat and maize.

The national fertilizer blending program, that was launched by the signing of a memorandum of understanding (MoU) between the MoA and the ATA and Allana Potash Corp in 2013, has seen the first of the planned five plants in June 2014, which, together with the new ones, is expected to benefit 11 million farmers. It was built by a 1.2 million dollar grant from the USAID Feed the Future innovation, which has also given another four million dollars for improved inputs.

The blending factories will be administered under the respective unions and they will distribute their products to the farmers in their mandated areas through the cooperatives, according to Tekalegn Mamo (Prof.), State minister and ministries advisor of MoA.

“We will have more blending factories, which will supply their respective Weredas and Kebeles appropriate fertilizers depending on their fertility,” Tekalign told Fortune.

That, he says, will increase the productivity of the farmers.

For the five factories, including the one that is operational, five international managers were hired; one for each of the factories. The staff of the factories will be hired by the unions.



INTERVIEW – Farming changes may hold key to Ethiopia’s industrial goals, says expert


By Edmund Blair


* Higher productivity needed to free workers from land

* Industrial ambitions rely heavily on cheap labour

* Challenge to change practices used since biblical era


ADDIS ABABA, Feb 2 (Reuters) – Ethiopia’s ambition to become a manufacturing hub may hinge on Khalid Bomba’s ability to transform small-scale farming just as much as it relies on new railways, roads and other more obvious signs of change in a nation once brought to its knees by famine.

The 46-year-old one-time investment banker is now chief executive of Ethiopia’s Agricultural Transformation Agency (ATA). His task is to boost output from a sector that employs 85 percent of the workforce, most of them tilling plots of less than two hectares.

“The cheap labour for industrial manufacturing is going to come from the rural areas,” he told Reuters in an interview at the Addis Ababa headquarters. “You are not going to have people coming off the farm if productivity levels don’t increase.”

Ethiopia boasts some of the highest economic growth in Africa, at 8 percent or more a year, much of it fuelled by a huge state infrastructure programme that includes a new railway to Djibouti’s port, a city metro in the capital and vast hydro-electric dams, all aimed at attracting industrial investment.

But agriculture still accounts for more than 42 percent of gross domestic product, high even in Africa. The level is about 30 percent in next-door Kenya. Yet, Ethiopia still has to import some basic foods to feed its population of 96 million.

The challenge for Bomba and his team at ATA, which launched in 2011, has been to work out better planting, fertilising and harvesting techniques, while ensuring adoption by farmers whose practices have sometimes barely changed since biblical times.

One of the first areas targeted by ATA was production of tef, a grain that is the main ingredient in Ethiopia’s national dish “njera”, a kind of sour flat bread. Yields at 1.2 tonnes per hectare were half or less that of other grains in Ethiopia.

“The way that tef has been planted and grown has not changed for hundreds, if not thousands, of years,” Bomba said. “The fact of the matter is that Ethiopia’s farmers had been planting too much seed.”


Typically, farmers scattered 30 to 50 kg of seed per hectare. But using just 3.5 to 5 kg, alongside planting in rows and using a particular seed variety, boosted output by 50 to 70 percent, said Bomba, who was born in Ethiopia, studied in the United States and Britain, and spent 10 years with JPMorgan investment bank.

Initially, just two farmers were willing to work with ATA, but take-up of the new practices has steadily increased. In 2014, 2.1 million farmers adopted the techniques, although the rest of 5 million trained were still too wary to employ them.

Rising output has driven down market prices of tef to the equivalent of about $60-$75 per 100 kg from $85-$100. Higher yields also mean farmers can switch some of their land to other crops or even grow a second crop of pulses on the same tef land.

Exports of tef, which are banned to avoid domestic shortages, could start on a small scale by the end of 2015 or 2016, Bomba said, although safeguards would be in place to protect local supplies.

Yields of wheat, maize and other crops have also improved. Wheat production has climbed almost 8 percent a year since 2006, and reached 3.9 million tonnes in the year 2013/2014, meeting more than 85 percent of domestic needs. ATA is also studying the nation’s soil to improve fertiliser use.

Reflecting the strong hand of state in other areas of the economy, spreading better practices has relied on a government network of 60,000 so-called “extension workers”, who help with training. ATA is also spreading ideas by mobile phone.

Just as Ethiopia’s industrial drive has drawn heavily on Asia’s experience, ATA was created after studying how nations such as Malaysia and South Korea grew. Bomba led that study when he was working at the Bill & Melinda Gates Foundation, a philanthropic organisation that still partly funds ATA.

Roads and railways were the “shiny objects” that often captured the world’s attention, he said, “but at the end of the day the backbone of this country remains the agricultural sector.”



Ethiopia may save USD 1 billion due to fall in oil prices



Ethiopia could save a billion dollar due to the global oil price fall according to Zemedeneh Negatu Managing Partner of Ernst & Young.

The significant decrease in oil price that has affected African countries either positively or negatively depending on whether they are oil importers or exporters was among several economic issues that were raised at the Emerging Africa Summit held at the UNECA on Thursday, January 29, 2015.

“While the global oil price drop has affected different African countries in different ways, Ethiopia is one of those countries that is benefiting from it” he said.
“Ethiopia, which is an oil importer, will save at least a billion dollar if oil price stays below 50 dollars per barrel for the next 12 months, as it is speculated. And luckily for Ethiopia, the price of its main export item, coffee, has gone up significantly in the world market in different exporting seasons. In addition to that, the very successful bond the country had issued in the international financial market has drawn satisfactory returns. You can see that Ethiopia is one of those countries that is actually benefiting from the simultaneous collapse of oil price and the increase in coffee prices,” Zemedeneh said.

Among countries that has been negatively affected by the oil price drop has been Nigeria which is an oil exporting country. “I was in Nigeria a month ago and there is a serious concern because the country is on the losing end of the situation. The issue needs to be analyzed based on who is importing what and who is exporting what, and that is how we actually should tell the African story of the impact,” Zemedeneh stated.

Listing further positive circumstances Ethiopia is in, he also said that he expected the yields on the Ethiopian Eurobond to be fairly stable.
The opportunities and risks of investing in Africa were among the many discussion points that were raised at the Emerging Africa Summit that lined up several high profile speakers well known in the finance, investment and economic sectors.
“The development of the economy in Ethiopia is significant; the size of the population is amongst the highest in Africa. There is a big agricultural economy here with a huge amount of opportunity. There is a lot of interest on Ethiopia from a lot of investors,” stated Colin Coleman, Managing Director of Goldman Sachs South African Office.

Coleman also stated that there is a significant amount of multinational and private equity firms who are interested in growing their African footprint. “The next 50 years in the world is going to be a very significant time for Africa and a real opportunity for the continent to make its mark in the world, in a way similar to China had done it 30 or 50 years ago,” he said.

According to an analysis by Goldman Sachs, Sub-Saharan Africa incremental growth could add 12 trillion dollars to the world’s economy in the next fifty years. Nigeria would be a 4 trillion dollar economy and South Africa would grow to a 2 trillion economy from the current half a trillion economy both.
“There is a lot of dynamism in the technology space, in communication, retail, consumer and oil and natural resource trades. Regional integration is very important because the markets of the various African countries are too small by themselves to compete. Infrastructure is needed to make people, goods and services move across Africa more seamlessly,” Coleman has commented of assignments that lay before Africa’s growth.

There is a growing interest in Africa from investors but that is not to say there are no risks, said Oumar C. Seydi, Director of International Finance Corporation (IFC) for Eastern and Southern Africa. “There is still perception gap. We also have significant challenges such as Ebola which we are fighting very hard to tackle. The legal regulatory framework also has challenges we need to work on. We also still have skill gap despite there being a lot of improvement, and this is also the place where we have the largest number of countries that are classified as fragile and conflict affected. These are challenges that we continue to face and must address but, overall, the trend is very hopeful,” Seydi stated. He also stated that Ethiopia continues to be the sleeping giant and the country can be far more successful given the significant prospects that are coming to the country.

It was stated that investors need to keep in mind several things when exploring opportunities of investment in Africa. Among these is understanding that the continent is filled with countries with significant difference in their investment landscape. It was also stated that investors need to have an established presence to assess opportunities and get a clear view of the prospects within countries of their interest.



Revolutionizing agriculture in Ethiopia: Dal to lead $18 million development project


Approximately 80-85 per cent of the country’s population is employed in agriculture. The country has the largest livestock population in all of Africa, and agriculture contributes more than 40 per cent of the country’s total GDP. But the country is both heavily populated and economically poor — the second poorest country in sub-Saharan Africa, in fact. There’s widespread food insecurity, limited social support for and acceptance of women, and 30 per cent of the country’s 85 million people live on less than $1.25 US a day.

Improving Ethiopia’s economy and addressing the poverty of its people both depend a great deal on growth — in all meanings of the word.

For more than 10 years, Dalhousie’s Faculty of Agriculture has had strong collaborative partnerships with Ethiopian agricultural institutions, working together to increase the country’s agricultural capacity. Now, a new international development project will take those partnerships to a whole other level.

Supporting Ethiopia’s future

On Sunday, the Government of Canada’s Department of Foreign Affairs, Trade and Development announced a nearly six-year, $18-million project in Ethiopia. Titled “Agricultural Transformation through Stronger Vocational Education” (ATTSVE), the project will be led by Dalhousie with the support of partners the Mennonite Economic Development Associates of Canada (MEDA), Jimma University College of Agriculture and Veterinary Medicine (JUCAVM) in Ethiopia and McGill University.

ATTSVE, one of the largest international development projects ever awarded to a Canadian university, will focus on enhancing current Ethiopian agricultural education programs available at agricultural colleges. Its goal is to help evolve the country’s agricultural practices and education beyond its subsistence-based foundation towards a market-focused system that better supports not only the economic strength of the country and its citizens, but also the unique needs of farmers, rural youth, the agri-industry and the broader rural communities.

The official launch for ATTSVE was held Sunday at the MacRae Library on the Dalhousie Agricultural Campus, timed with the start of International Development Week. Minister Peter MacKay, MP Scott Armstrong, representatives from partner institutions as well as 14 deans and vice-deans from Ethiopia were in attendance.

“Our government is proud to partner with Dalhousie University to help Ethiopian agricultural students to participate in market-led and growth-oriented agriculture, either as producers or employees of commercial agricultural enterprises,” said Minister MacKay. “This means increased incomes and better access to food for thousands of families.”

The event featured a traditional Ethiopian coffee ceremony, an important cultural component for ceremonial and social gatherings in Ethiopia. (Coffee is one of the country’s leading crops.) The ceremony is traditionally led by a woman and in this case, was led by Ethiopian doctoral student, Bizuayehu Mengiste, who has, under another project with Ethiopia, studied at the Faculty of Agriculture and Dalhousie’s Halifax campuses.


Ethiopian doctoral student Bizuayehu Mengiste, who led the coffee ceremony.

“At Dalhousie University, we aspire to have not only a local impact but a global impact,” said Dal President Richard Florizone, speaking at Sunday’s announcement event. “This international development project in Ethiopia, one of the largest in Dalhousie University’s history and the largest for our Faculty of Agriculture, will allow us to make world-class contributions to a global issue by sharing agricultural expertise to support economic growth and alleviate poverty.”

David Gray, dean of the Faculty of Agriculture, explained that the project will bring benefits on many levels:  building capacity for agricultural training and education in Ethiopia with Dal’s partner colleges, bringing knowledge and experiences of Ethiopian agriculture to students at Dal, increasing potential research collaboration opportunities, and more.

“If we are to be successful and meet our mandate and responsibilities as the Faculty of Agriculture, it is crucial that we engage internationally,” said Dr. Gray, noting that capacity building on an international scale is a key component of the Faculty of Agriculture’s strategic plan. “We are so pleased to be part of this historic project which will, quite literally, change the approach to agricultural education, not only in Ethiopia but across the world.”

Peter MacKay, Solomon Demeke (Jimma University College of Agriculture and Veterinary Medicine, and Dal honorary degree recipient) and President Florizone chat during the coffee ceremony.

Farming for the future

Currently, most agriculture technical and vocational training colleges in Ethiopia are located in rural areas and focus largely on competency-based approaches and outcomes. What they’re increasingly interested in, though, is programming that emphasizes rural growth through agriculture. They recognize that more emphasis is needed on marketing and entrepreneurship, as well as curriculum development and content delivery.

The primary goal of ATTSVE is to increase the supply of male and female graduates from these institutions who have the necessary skills and knowledge not just to become successful farmers, but to develop the commercial agriculture sector in Ethiopia. The Faculty of Agriculture and other implementing partners will use their expertise in applied learning models to support Ethiopian instructors in delivering education programs aligned with the country’s national priorities.

As the project lead, the Faculty of Agriculture will be involved in institutional planning and leadership, curriculum development/revision and project financial management. Jimma University College of Agriculture and Veterinary Medicine (JUCAVM) in Ethiopia will play a central role in applied research, increasing cooperative links with industry and information technology enhancement at the Ethiopian schools. The Mennonite Economic Development Associates of Canada (MEDA) will be primarily involved in business management training, entrepreneurship and value chain development.  McGill University will be heavily involved in inclusivity and gender equality matters.

Increasing opportunities

The project will result in increased instructor training, more opportunities for institutional networking and partnerships and increased capacity at the colleges in a variety of areas, leading the graduates who will take part in entrepreneurship and market development initiatives.

“ATTSVE will give youth the opportunity to train in a new way,” said Suzanne Johnson, ATTSVE project director at the Faculty of Agriculture.

The location of the four colleges that the ATTSVE project will focus on.

The Agricultural Transformation through Stronger Vocational Education project will focus on four colleges: Maichew (Tigray region) Nejo (Oromia), Woreta (Amhara region) and Wolaita Soddo (SNNPR). Not only will they share knowledge gained through the project with one another, but they’ll also help translate initiatives to other institutions in Ethiopia.

“The ATTSVE project is very important and will enhance the capacity of agricultural technical and vocational education training institutions to be responsive and reactive to the emerging labour market,” says Professor Solomon Demeke of Jimma University College of Agriculture and Veterinary Medicine in Ethiopia. Dr. Demeke received an honorary Doctorate from Dalhousie University in 2014.

Environmental sustainability, in terms of both best practices in natural resource management and institutional environmental plans, will continue to be part of the new project, along with gender equality. The latter, in particular, will be a key part of the Faculty of Agriculture’s work as it aims to increase the number of rural women farmers in Ethiopia.

“Agriculture is a global industry, and we are a global community,” said Dean Gray. “Projects like this bring us together to face our challenges together.”

The ATTSVE team.



Ethiopia, Russia to strengthen cooperation in trade, business


Addis Ababa, 2 February 2015 – Foreign Affairs Minister Dr. Tedros Adhanom met with Mikhail Boganov, Special Representative of the President of the Russia Federation for the Middle East and Africa countries and Deputy Minister of Foreign Affairs of the Russian Federation on Friday (January 30).

The two sides discussed bilateral and political relations, and trade and investment partnerships between Ethiopia and Federation of Russia.

Boganov, who noted the historic ties between the two countries, and emphasized the Federation’s interests and concerns in Africa, welcomed Ethiopia’s role on the continent.

Following the recent visit of the Speaker of the House of Federation, Kassa Teklebirhan, to Russia, Boganov stressed the need to create partnership between the two parliaments.

He also underlined the need to widen trade and business cooperation and specifically mentioned Russian plans to become involved poultry and food security investments in Ethiopia as well as the expanding market for Ethiopian coffee in Russia.

Boganov also spoke of possible cooperation for training of personnel in various areas.
Dr. Tedros agreed that Ethiopia and the Russian Federation had an excellent and cordial relationship that should be encouraged and nurtured.

With regard to trade and investment, he felt that growth was slow compared to the potential.

In order to have a strong long term relationship it was important to let investment and trade have a key role, and Russian investment to Ethiopia should be increased. The possibility of promoting Ethiopia in Russian publications was raised.

Dr. Tedros suggested a new air service agreement could increase the number of Ethiopian Airlines flights to Moscow.



ERCA manages to achieve 97.8 percent of its targeted tax collection


The Ethiopian Revenue and Customs Authority (ERCA) announced a higher performance in collecting tax in the first half of the current budget year, according to a six months performance report.

Early this week, the authority disclosed that it has gathered 64.66 billion birr in the past six months starting July 2014, achieving 97.8 percent of its target. The authority targeted to collect 66 billion birr in the sated period. Even though the six months performance was lower by 2.2 percent, it surpasses the performance of last year’s similar period by 21.2 percent.  According to the report, out of the total amount 27.6 percent is secured from direct tax, while 70.8 percent was generated from indirect tax.

Efrem Mekonnen, Public Relation Head of ERCA, said that the authority has collected 36.6 billion birr (56.5 percent of the total revenue) from Inland Revenue and 28 billion birr (43.4 percent) from international trade. The authority has also earned 63.5 million birr from lottery issuance. ERCA which is mandated to collect the Addis Ababa city’s revenue has achieved 76 percent of the planned income.  The authority’s public relation head said that out of the 12.3 billion birr estimated to be collected from Addis Ababa city, 9.4 billion birr has been realized.

Parliament has approved a federal government plan to collect 115.9 billion birr in the budget year, while ERCA planned to collect more, 134.2 billion birr.
In the stated period, ERCA has collected 69,715 new finger prints that increased the total deposit of collected finger prints to 2.5 million.
One thousand eight hundred seventy complaints have been submitted by tax payers during the six months and ERCA has given response to 98 percent (1,849) of the cases, according to ERCA public relation head.

ERCA has included additional five companies on its ‘authorized economic operators (AEO)’ list increasing the number of authorized tax collection agents to 21 in the stated period. The authority also stated that in the six months ERCA has given 30 billion birr worth tax free incentive for companies that are mainly engaged in the manufacturing and agriculture sectors.

The authority is one of the public offices that has high staff turnover. In the past six months, 904 employees left the authority. According to Efrem, over 88 percent of the employees left ERCA based on their personal interest, while three percent were fired due to misdemeanor. Sources said that insecurity is the top factor that drives out the employees. Fear of corruption allegation and lack of confidence are part of the reason for employees to flee from the authority.

ERCA losses at least 1,000 employees annually, but it also hires larger number of new employees than the deserters.  In the first half of this budget year, it hired 2,158 new employees.



ZTE, ERCA settles income tax disagreement


ZTE company logos are seen at an international software and information services exhibition in NanjingThe disagreement between the Chinese telecom firm ZTE (H.K) Limited and Ethiopian Revenue and Customs Authority (ERCA) is settled after the government lifted the penalty and interest fee sanctioned on ZTE by the tax collector. ZTE has been requested by ERCA to pay about 920 million birr taxation arrears, however, the company turned down the request saying  the amount is very high than the actual tax it has to pay for the government.

The Chinese telecom firm, that undertook the 1.7 billion dollar telecom expansion project in 2010, has been requested by ERCA to pay an income tax of 157 million birr with interest and penalty.

ERCA claims that ZTE owed 900 million birr in unpaid taxes, penalties and interest out of the total sum of 920 million after the company settled the 20 million birr.
Following an appeal by ZTE to the authority, the amount was reduced to 522 million birr. Yet ZTE has countered that the reduced amount was still high.
ZTE has admitted that it should pay 157 million birr in tax excluding penalties and interest.

Public Relation Head of ERCA Efrem Mekonnen said that the company and ERCA have agreed to settle the disagreement.
ZTE had also appealed to the Ministry of Finance and Economic Development (MoFED) and the Prime Minister Office to bring a resolution to the contention.
According to Efrem, MoFED, which is the responsible body to lift the interest payment, has accepted ZTE’s claim and override the payment of the interest, while ERCA has also agreed to lift the penalty. “We have lifted the penalty on special consideration and ZTE has agreed to pay the tax within three years,” Efrem added. He explained that the company has started paying the cash on a monthly basis.

Capital’s effort to find out the exact amount that ZTE will pay to the government in taxation is unfruitful as concerned authorities declined to give information.
Officials at La Gare branch of ERCA, who are responsible to examine such kind of cases, declined to give any statement on the issue.
ZTE officials also declined to comment on the issue.



French company to commence Addis Ababa city new sanitary landfill construction


The French company,VINCI Grands Projets, is set to start construction of the 13,145,020 Euros Addis Ababa city new sanitary landfill.

The ground-breaking ceremony for the project signed in December 5, 2014, by the Addis Ababa City Administration (AACA) and the French company, will take place next week on Tuesday, February 3, 2015.  

“The contract was awarded to VINCI Grands Projets, after an international open bidding process undertaken in compliance with Ethiopian Procurement Scheme and best international practices, according to the press statement the compny distributed. Six bids had been received from international companies at the closing date mid-October 2014, demonstrating how Ethiopia gets more and more attractive for foreign companies,” the statement said.

This contract aims at constructing two cells for municipal waste, dedicated management systems for leachate, storm water and landfill gas, as well as administrative and operation buildings (garage, warehouse, maintenance) with all necessary utilities. These works amount for a total Euro 13 145 020,46, equivalent to ETB 337 301 225. Total duration of works is 18 months, but the first cell and all associated facilities will be commissioned in August 2015 for operation by AACA.

This New Sanitary Landfill is one of the key infrastructures of the Solid Waste Management Strategy undertaken by AACA to improve quality and cost-efficiency of municipal waste management in a booming context for the city.

Strategic and technical studies related to the SWM Strategy, the new sanitary landfill and the two transfer stations have been undertaken from January 2013 to June 2014 by a consortium between French Consulting Engineers, ARTELIA Villes & Transports and Ethiopian METAFERIA Consulting Engineers, after an international bidding process finalized early January 2013.

The same consortium is in charge of supervision of construction works to ensure consistency between studies and construction phase. These best standards consultancy services are financed under an AFD grant allocated to AACA.

The Addis Ababa City Administration has been partnering the French Agency for Development (AFD) over the last years on the technical and financial aspects for this critical project. The contract for the construction works of the New Sanitary Landfill is financed under the Euro 20 000 000 Credit Facility Agreement signed on December 19th, 2013, between H.E. Ato Sufian Ahmed, Minister of Finance and Economic Development and Christian Yoka, AFD Regional Manager. Funds were formally transferred to the Addis Ababa City Administration in August 2014.

The Solid Waste Management (SWM) Strategy is comprehensive. It includes, from an institutional point of view, reform of the technical departments in charge of municipal waste management for improved service delivery to citizens. As far as infrastructures are concerned, (i) the Legetafo Urban Access Road to Sanitary Landfill, undertaken by Ethiopian MELCON PLC Contractor, is under execution since early April 2014, co-financed by AACA and French Agency for Development; (ii) the construction of two transfer stations should start in April 2015, financed by AACA on its own budget.



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