Ethiopia to host Investing in Africa Forum
Close to 200 people including ministers and central bank governors from both China and over a dozen African countries, high ranking representatives of regional economic and multilateral organizations, private firms and other development partners are expected to participate in the forum which will kick off on June 30, at Sheraton Addis hotel.
The meeting, which is a collaborative effort between the Government of the People’s Republic of China, the World Bank Group (WBG), China Development Bank (CDB), the China-Africa Development Fund (CAD-Fund), the government of Ethiopia (GoE) and United Nations Industrial Development Organization (UNIDO), is driven by their common belief that increased investment and industrialization would help to unlock the potential for sustainable and inclusive growth, job creation and poverty reduction in Africa.
Specifically, the forum aims to promote accelerated and responsible investment and investment partnerships in African countries, both from China and other parts of the world as well as within Africa. The forums’ discussions will place particular emphasis on the light manufacturing sector.
Against this background, the forum will consider the role of business climate, trade logistics and regional initiatives in Africa, and seek to identify a forward-looking and time-bound action plan.
In addition the forum will explore ways to strengthen existing partnerships and potential collaborations between China, African countries, other development partners, and the private sector.
The forum will encourage dialogue between stakeholders—policy makers, development partners, foreign and local private investors—on how investment could be encouraged and industrialization accelerated, according to the press statement from the World Bank.
By bringing together the country’s leading policy makers and business leaders with multinational executives active or interested in expanding in Ethiopia, opportunities will be explored and challenges tackled.
With a population of around 94 million, a government aspiring to reach middle income status within the next decade and real GDP growth forecast to average 7% a year in 2015 – 2019, Ethiopia offers enormous growth potential across a number of different industry sectors.
Foreign direct investment reached almost US$1bn in 2013/2014, adding further fuel and momentum to what is now one of the African continent’s fastest growing economies. But, despite solid economic growth, what more needs to be done for the country to achieve its full potential?
In 2010, the government set out its first ambitious five year Growth and Transformation Plan (GTP) in a bid to foster broad-based development in a sustainable manner. It subsequently saw agricultural exports grow by 9% in the first three quarters of 2013/2014 and the manufacturing sector grow by 11.4% in the same period. What will the second GTP framework look like and what do the next 5 years hold for Ethiopia?
Key speakers include Prime Minister Hailemariam Desalegn, Ethiopian Airlines CEO Tewolde Gebremariam, Pittards CEO REg Hankey, Secretary-General, Common Market for Eastern and Southern Africa (COMESA) Sindiso Ngwenya, Bill & Melinda Gates Foundation Country Representative, Ethiopian and Representative to the AU Haddis Tadesse, Black Rhino CEO Brian Herlihy.
Find out about the sizeable market potential and the opportunities on offer
- International banks are playing a role in private equity and expansion deals in the African financial services sector. Will Ethiopia—home to Africa’s 9th largest economy and 2nd biggest population— benefit from this?
- The telecoms market in Ethiopia remains an untouched industry sector with enormous potential. Will the telecoms sector in its current state be able to meet the enormous growth potential? Is there a possibility for international players to get involved?
- Ethiopia’s infrastructure spending, as a percentage of GDP, is the highest in Africa. Energy costs are also one of the lowest on the continent. With new hydro dams coming online over the next few years, the government will endeavour to ensure cheap energy for its people and make Ethiopia a potential energy exporter for the region.
- Higher labour costs in Asia have led many to predict a move by international manufacturers to Africa where costs are minimal and land available. With a large population and subsequently sizeable labour force, Ethiopia has made it quite clear that it wants to be ready for that influx. Hear from current and prospective investors on the challenges faced and benefits reaped.
- Despite solid economic growth, what more can be done to help the country achieve its full potential?
- Is the state-led development model sustainable?
- How can the sizeable market potential and the abundant natural resources be fully utilised?
- What are the challenges currently faced by the private sector?
- With the country’s financial sector being predominantly state-run, how can the concerns over the availability of financing be overcome?
- What do the next 5 years hold for Ethiopia?
Questions will be forwarded on
The Ethiopia Summit brings together 150+ of the country’s leading policy makers and business leaders with international executives active or interested in expanding in Ethiopia, opportunities will be explored and challenges tackled.
Complete info here http://www.economist.com/events-conferences/emea/ethiopiasummit-2015
Djibouti, Ethiopia, South Sudan and Sudan to form new trade corridor
Djibouti, Ethiopia, S. Sudan and Sudan agreed to form a logistics authority called the Djibouti Corridor Authority (DCA) and a One Stop Border Post development project to facilitate the transit of goods and passengers.
The authority will aim to accelerate economic activity in the region and is expected to start operating by the end of the year.
The four countries reached a consensus to form the authority in order to develop the Djibouti corridor and benefit all member nations. The formation of the sub-regional body provides an efficient and effective route for the transportation of goods by land and sea between the respective countries.
The Common Market for Eastern and Southern Africa (COMESA) drafted the regulation that will govern the DCA.
The draft regulation was tabled for a two-day expert panel discussion on June 22 at Friendship International Hotel in Addis Ababa. Ministers and representatives of the member states amended the draft, which was forwarded for approval on the third day.
The document states that countries should grant each other the right of transit in order to facilitate the movement of goods throughout the region.
“The Djibouti Corridor is available to imports and exports from corridor member states as an efficient economic addition to other trade routes, probably the most cost effective,” the draft document explained.
The DCA will also facilitate mutually beneficial business partnership between member states. The cost effective system deployed by the authority will encourage the implementation of ongoing bilateral projects.
Customs offices present on either side of a given border are also obliged to improved customs transit procedures and the implementation of joint customs control.
Tekletsadik Reba, State Minister of Transport, told Capital that the DCA will significantly benefit member countries, as it will considerably reduce transportation cost.
“We can be competitive in the international market if the transport cost declines significantly,” Tekletsadik noted.
The two landlocked countries in the corridor, Ethiopia and South Sudan, will gain from increased access to the two ports in Sudan and Djibouti, experts commented.
Ministers of the four countries are expected to sign the amended agreement in Djibouti next month.
Djibouti and Ethiopia have expressed their interest to host the DCA secretariat. The headquarters’ location will be decided at an upcoming conference in Djibouti.
Another similar organization, the Northern Corridor Transit and Transport Coordination Authority (NCTTCA), was established in 1985 in Eastern Africa by five countries: Burundi, Democratic Republic of Congo, Kenya, Rwanda and Uganda.
Donat M. Bagula, Executive Secretary of NCTTCA, briefly presented the operation of the authority and shared experiences with the participants.
The Northern corridor is the transport corridor linking the landlocked countries of Uganda, Rwanda and Burundi with Kenya’s maritime port of Mombasa. Similarly, the Northern Corridor serves the eastern part of the Democratic Republic of Congo, Southern Sudan and Northern Tanzania.
Ethiopia Eyes New, Emerging Coffee Export Market in GTP-2
The country currently reaches about 45 coffee export destinations, including Germany, Saudi Arabia, United States of America, Japan, Belgium, Italy, France, Sudan, Sweden and United Kingdom that are the main Ethiopian coffee importers.
China, South Korea and Eastern Europe are among the new and emerging coffee export markets targeted in the second GTP, it was indicated.
Coffee Marketing Director with the Ministry of Trade, Getahun Bikora said activities will be exerted in promoting the country’s fine coffee types to enter the new and emerging markets.
He said the main activities would be participating and demonstrating actively at the various coffee exhibitions and conferences.
The nation has been engaged in branding and trade-marking its fine coffees to promote and increase destinations.
Coffee, which originated in Ethiopia, generates about 24 percent of the total foreign currency of the country.
The country has secured 4-billion-USD revenue during the past five years from coffee.
The government has been taking major activities such as strengthening modern coffee marketing system, increasing production and productivity, creating favorable condition for coffee producers, traders, processors, exporters and service providers, the director pointed out.
“Taking the best experiences of the first GTP, the government will give priority to value addition to attract more importers in the world’s coffee market alongside exports of raw coffee beans in the second GTP”, Getahun added.
Accordingly, the government plans to strengthen coffee marketing system in all coffee producing regions, build the capacity of coffee producing farmers, cooperatives/ unions, and private suppliers.
Some 99 percent of the coffee sector is dominated by the private sector and the government should facilitate favorable policy, logistics, loan, and market ties, the director stated.
For Ethiopia to benefit more from its major export item, the private sector has to be competent in the world’s coffee market with increasing capacity and engagement, he emphasized.
Some of the world’s finest coffees such as Harrar, Sidamo and Yirgacheffee, the three famous trademarks of Ethiopia’s finest coffees are branded, while Nekemt and Limu are on the way to be branded soon.
Ethiopia is considered the first in Africa and the 5th in the world in coffee production and the 3rd largest Arabica coffee producer in the world.
China vows to share agricultural technology to Ethiopia
Project Coordinator Dr. Li Ronggang said that activities are underway in various Colleges taking into account the importance of working on students recruited from various parts of the country.
The Coordinator made the remark during a field visit paid to Alage and Agerfa Agricultural Technical and Vocational Education Training Colleges four days ago.
Dr. Li said that various activities were carried out with over 2.2 million US dollars allocated by the Chinese government in various ATVET colleges from 2012-2015.
The Coordinator added that his country has been contributing a lot to modernize and transfer technology in the agricultural sector by deploying instructors and supplying new and modern agricultural technologies.
ATVET Coordinator at the Ministry of Agriculture, Gebremichael Meles, told the visiting journalists that the training being given by the Chinese instructors and the government of Ethiopia has been contributing a lot for the improvement of the agricultural sector.
Alage Agricultural Technical and Vocational Education Training College Dean, Umer Wube, on his part said the presence of Chinese instructors enabled students to get practical training.
Some 20 Chinese instructors are currently teaching in Alage, Agarfa, and Holeta ATVET colleges, it was learnt.
FarmDrive: De-risking lending to smallholder farmers
Africa’s smallholder farmers provide about 80% of the food supply on the continent, and play a critical role in the value chains of multinationals. They are becoming even more important in the global food market due to population growth and rising income levels driving food demand. However, they continue to face many obstacles, including access to finance which affects their productivity.
Although there are increasing efforts in Africa to support farmers, the role of commercial banks in agricultural finance remains minimal. Reasons cited by banks include the risky nature of agriculture, low financial literacy among smallholders, and difficulty in determining their creditworthiness.
A tool to build farmer credit profiles
A Kenyan company is attempting to bridge financing gaps by improving the credit assessment of smallholder farmers using a digital bookkeeping platform. It enables farmers to track their productivity, expenses and revenues which are then analysed to reveal performance patterns. Financiers are able to use the credit profiles to arrive at lending decisions.
FarmDrive was set up last year, and its record keeping app piloted with 2,000 dairy farmers in Githunguri, Kenya. Rita Kimani, co-founder and CEO of FarmDrive, notes that clear and transparent records are vital in de-risking agricultural financing.
“Many other businesses can access loans from banks based on their records. However, most farmers do not have a credit history and rarely keep records that can speak to the health of their business operations,” says Kimani.
Hence banks cannot gauge a farmer’s ability to repay a loan. Users of FarmDrive record their activities using SMS, or a mobile app if they have a smartphone. The company is also developing a workbook that farmers can fill in and hand to the agent that signed them up, who will then store the data digitally.
Peris Bosire, co-founder and COO of FarmDrive, says their business model is to charge financiers a US$1 fee for every farmer profile they access. The company also charges farmers a transaction fee of 3% of the total loan they receive via FarmDrive.
“Financiers benefit by getting access to more clients that are fundable, while farmers have a better and more convincing case when seeking financing,” says Bosire.
She adds that farmers are also able to use the real-time data analytics to gauge their performance and use that information to improve their operations and manage risks. In turn, financiers can use the data to develop tailor-made products for farmers.
FarmDrive has partnered with one local financier and is in talks with other lenders. It recently partnered with Farm Shop, a Kenyan social enterprise that has built a network of franchisee agro-dealers. Kimani says FarmDrive will use the network of agro-dealers as a contact centre to sign up more farmers in addition to using its own agents.
Challenges and exciting moments
Kimani and Bosire both grew up in rural Kenya in farming households, and studied computer science. They decided to use their technical skills to solve some of the challenges they witnessed in the sector, but it has not been an easy ride.
“When trying to sign up farmers, the first question they ask is how many financial institutions we are working with? And when we go to a financier they want to know how many farmers we have already signed up? It has been a process just trying to manage expectations and get both sides on board because our product relies on both parties,” says Kimani.
But they have also had “exciting moments”, including getting the local financier on board after sending a cold email to the CEO.
Not one big group
Kimani says the company’s strategy is to see farmers as individuals, not just one big group. Farmers are different depending on their geographical location, the weather conditions in their areas, the crops they grow, and so forth.
“If you don’t learn these things about them and develop products around their actual needs, scaling can be hard,” says Kimani. “One shouldn’t be hard-headed with their product especially if it is new. It is better to go into the market with a learning attitude and listen to and understand the farmer to figure out what really works for them.”
Gov’t targets to lower share of Agriculture in GTP II
In the next phase of the Growth and Transformation Plan (GTP II), the Government of Ethiopia has planned to reduce shares of the agricultural sector in the Gross Domestic Product (GDP) to 36 percent from its current level of 40 percent, in favor of industry and services sectors.
Some ten years ago, the overall share of agriculture in Ethiopia was around 46 percent, which put the sector at a leading position in terms of contribution to the economy. The sector, however, was overtaken by services since two years ago, retiring from its historical and traditional leading position for the first time.
In a press conference called by the Government Communication Affairs Office (GCAO) on Friday, Redwan Hussien, head of GCAO, disclosed that the government is going to conduct meetings and continue engagement with the society throughout the country to discuss the next Growth and Transformation Plan II (GTP II) as of today, for the coming ten days.
Regarding specific sectors that were not achieved in GTP I, he noted that the manufacturing sector is not growing as it was expected. “Though the manufacturing sector has registered a growth rate of 13 percent annually for the GTP period, its share in the GDP is still only five percent,” Redwan told journalists at his office. Therefore, in GTP II, the government will work hard to raise that figure to eight percent, according to Redwan. This, he said, is critical to facilitate the transformation of the country from agricultural-led economy to an industry-led one.
On the other hand, Redwan said the industry sector as whole is expected to grown much higher and increase the share of the sector in the national economy to 23 percent from its current status of 14 percent.
According to Redwan, to achieve the desired goals regarding transforming the country to industrialization much attention has to be given to small, micro and medium enterprises as they are the foundation of the manufacturing sector.
Redwan indicated that public discussion on GTP II plan will be conducted in two phases where Gambella, Southern, Oromia and Amhara regions will be incorporated in phase one of the discussion which will kick start today. Furthermore, Addis Ababa, which is also included in phase-one of the discussion, will formally start the deliberations on Monday. The discussion in Tigray is also scheduled to start quite soon, Redwan said. Meanwhile, Afar, Somalia and Benishangul Gumuz will discuss in the second round which is tentatively scheduled for late July.
The discussion forum will also include investors, the private sector, opposition political parties, civil societies, the diplomatic community and youth and women’s associations with each discussion group expected to be attended by 500 to 600 participants. Regarding the structure of the discussion, Redwan said, it is expected to take place for two days, where day-one will be dedicated to revising the success and challenges of GTP I while the second day will be devoted to targets set on the GTP II.
Awash International Bank Hires KPMG to Propel it to Top 10 within East Africa
Awash International Bank hired KPMG Advisory Services to help it become among the top 10 banks in Eastern Africa within the next ten years.
Awash Bank’s President, Tsehay Shiferaw, and David Leahy, director of KPMG East Africa Limited, signed the agreement on June 25, 2015 at Hilton Hotel, in the presence of Board members of the bank and other representatives of KPMG.
KPMG, a Swiss firm providing audit, advisory and tax services, had to compete with other international firms for the job. Among these were US based Grant Thornton International, UK based Ernst & Young Global Limited, PricewaterhouseCoopers also from UK, and McKinsey & Company, from US.
KPMG will design a transformation road map for 2016-2025 for the bank which aims to become internationally competitive. It will conduct local and international economic analysis, to refine the bank’s strategy and forecasting, by framing a new operation model for the organisational structure and business process. New technologies could be introduced for service delivery.
“A lot of analysis and reviews will be made on the bank’s current benchmark to identify the gaps in the bank as well as to take actions for them”, Bisi Lamikanra, partner and head of management consulting at KPMG Advisory Service of Nigeria told Fortune.
Refusing to disclose the sum that will be paid to KPMG, Tsehay noted that Awash is triggered to hire the consultant to make the bank internationally competitive as the government may allow the entry of foreign direct investment to the financial sector in the future.
“It is imminent that the government may change its closed policy in the future and foreign banks will be allowed to join the financial sector,” he told Fortune, adding that Awash should be prepared for that early and be competitive.
Established in 1994, Awash International Bank’s recent performance indicated that total assets stood at around 26 billion Br, with 19 billion Br in wtotal deposits, as well as its loans and advances at approximately three billion Br. The bank has 200 branches, 100 automated teller machines (ATMs) and 500 point of sale (POS) terminals.
Institute eyes curbing shortage of ground water technicians to assist mega projects
The newly established Ethiopian Water Technology Institute (EWTI) announced on Thursday that it is planning to expand its role to assist wider scope of institutions, which are engaged in water technology education and investment as well as policy formulation that will be an input to the upcoming Growth Transformation Plan (GTP II).
The institute in fact has been delivering short term trainings for the past fifteen years as a center and has trained over 3,000 technicians in field of underground water technology. But as of the upcoming years, the institution is planning to expand its role assisting higher educations and TEVTs by offering more advanced and practical trainings, to produce skilled technicians in drilling technology and electro mechanical works, according to the instituted director general, Zenebe Geremew.
The director said on Thursday while he was delivering speech during a graduation ceremony of its newly trained technicians.
The director also indicated that the institution would also be center of excellence that produces researches that will assist policy formulation in water development sector.
In the latest training session, 40 professionals were graduated up on completion of their practical trainings in three of the courses streams. Out of the total, graduates, 20 of them are military personnel at the Ministry of Defense (MoD).
He also indicated that for many years the country has been spending multi-million birr cash for importing expensive machineries and instrument for water drilling and related technology. However most of the machine has not been given the intended service due to shortage of professionals who can have the maintenance skill.
MoD on its part hopes that the latest graduate will add its capacity in underground water investment it is aiming at engaging in mega projects of the country’s water development.
Acting Commander of Combat Engineering with Engineering Department of MoD, Semere Gebregziabher said on his part MoD under its Defense Engineering investment wing has been actively involving in ground water development at home and other country where Ethiopian troops participate in UN and AU’s peace keeping mission.
He further highlighted the defense force’s success in water development sectors in the past few years locally and abroad while it was in peace keeping mission in South Sudan and Darfur.
He also indicated that the Defence Engineering department has continuously maintained its capacity in electro mechanical works and innovating water drilling technology.
The government also has been reiterating that the water sector especially ground water is its one of key sector of the development area. According to the draft budget proposal, close to 6.8 billion birr is proposes for water and energy development.
However, the government faces shortages of local investors who engage in ground water development as the sector demands huge capital for which local investors face constrained capital.
According to available documents, Turkish, Indian and Chinese companies are involving better in the country.
Amid critical deficiency of knowledge and skilled professionals in the water sectors, a newly established Ethiopian Water Technology Institute(EWTI) has taken up an ambitious plan to produce highly demanded professionals in ground water development sector, which remains to be one of the most capital intensive investment in Ethiopia that is discouraging local investors.
The institute was established in 2013 with the objective of increasing the number of skilled technicians who work in water supply maintenance, electromechanical pumps, drilling technology and water management projects.
Ethiopia to widen choices over ports
ADDIS ABABA, Ethiopia – Ethiopia wants to reduce its dependency on the Port of Djibouti by developing links with Mombasa Port in Kenya, Berbera Port in Somaliland, and Port Sudan in Sudan writes JOHN SAMBO.
Presently, well over 90% of Ethiopia’s imports and exports pass through Djibouti Port at the mouth of the Red Sea.
In February this year, Workeneh Gebeyehu, the Minister for Transport while briefing the Federal legislature said, “Five to 10% of the country’s imports are planned to come through the port of Berbera (Somaliland), and we will be looking for proper ports for different areas of the country. But the Port of Djibouti continues to be the major one,” he said.
Djibouti port is administered by DP World Djibouti, a subsidiary of DP World. This global handling company was formed in September of 2005 with the integration of the terminal operations of the Dubai Ports Authority (DPA). It currently oversees 65 marine terminals across six continents, including Africa’s biggest port, Durban in South Africa.
The United Nations Development Programme (UNDP) is backing the Ethiopian move to widen its options of ports.
In November 2014, a 12 member Ethiopian delegation was in Somaliland to inspect port and fuel storage facilities.
According to Kenya Engineer, the use by Ethiopia of Mombasa Port will serve as an outlet for goods mainly from the southern part of Ethiopia.
The publication states, ‘Using the port and the Mombasa Corridor will also connect Ethiopia to the markets of the East African Community (EAC). Road works are underway in Ethiopia and will connect to Kenya’s fully paved roads leading to Mombasa Port.
‘The approval process is also underway in Kenya to widen the road from four to six lanes from Mariakani to Mombasa. At least some of the Ethiopian goods destined for export markets will make use of the expanding port facilities in Mombasa.’
2nd phase of Addis light rail under negotiation
On several occasions, the management team of the railway corporation had let slip that the corporation did not have a short term plan to undertake the extension before completion of the AALRT which is in its final stages of construction. The corporation officials had said previously that the corporation has to evaluate robustness of the current project before launching another one.
Sources told Capital that the corporation is negotiating with CREC to commence the second phase railway line in the second Growth and Transformation Plan (GTP II) period.
The current metropolitan electric railway has a total length of 34.25 km (the North-South line 16.9 km and the East-West line 17.35 km), and is constructed by a similar company, which facilitated the finance from Chinese EXIM Bank.
Sources said that the new extension project will also be financed by Chinese financers. According to sources the second phase LRT will be equal to the length of the current one.
Sources added that the company is making effort to come up with adequate finance for the future project. The first project has consumed USD 475 million.
Ethiopia has interest to modernize its mass transportation means particularly in the capital city, which is seriously hit by shortage.
The construction of the light railway is one of the strategies the government sets to expand in developing the mass transportation system. The first phase line stretches from the Eastern part of the city near Ayat Village and passes through Megenagna-Meskel Square to Tor Hailoch, and the other stretches from the Southern part of the city in Kality- Meskel Square-Lideta High Court-Merkato to Minilik Square.
According to the study, the new expansion will continue to Legetafo from Ayat, and to Lebu via Alem Bank from Tor Hailoch on the east-west side of the current line. The north-south line will continue to Shero Meda from Minilik Square and to Gelan from Kality.
The plan indicated that the Lebu and Gelan routes will be connected with the national railway line, which is also in the final stage of construction, which leads to the sea ports in Djibouti from Sebeta, in the West of Addis Ababa.
Debretsion Gebremichael (PhD), Minister of Communication and Information Technology and Coordinator for Finance and Economic Cluster in the rank of Deputy Prime Minister, recently gave confirmation about the second phase project.
He said that the extension will be undertaken in the GTP II. However, no further details as to when the project will begin were not available as ERC declined to comment. Communication Director of ERC Dereje Tefera said, “we will disclose the details after approval of the plan.”
CREC is also undertaking the 329km Sebeta-Meiso project which is part of the 668km Sebeta-Dewelle railway line that connect with Djibouti.
The second lot of the 339Km Meiso-Dire Dawa-Dawelle electric railway project was awarded to another Chinese state-owned enterprise, China Civil Construction Corporation (CCECC).
In the current GTP, the government had planned to carry out 2,000km national railway project; the actual achievement was the 668km Sebeta-Dewelle line excluding the AALRT.
Alemayhu Ketema Wins Bid for 713.6m Br Sport Academy
The Oromia Youth & Sports Bureau awarded Alemayhu Ketema, general contractor a 713.6 million Br contract for the construction of a Sport Academy on 24,000sqm land at Sululta.
The announcement was made at Elilly Hotel on June 26, 2015 at a press briefing conducted in the Oromiffa language to some non-Oromiffa speaking journalists invited to the signing ceremony. The contract was signed by Mohamed Jilo, head of the Oromia Youth & Sports Bureau, Alemayhu Ketema, the manager of Alemayhu Ketema construction, and Yohaness Abay, the manager of Yohaness Abay consultants.
Twenty construction firms had responded to the tender, which was announced on April 13, 2015. Alemayehu Ketema was selected from a final list which comprised Tikleberhan Ambaye Construction, Afro Tsion Construction, Rahma Construction, Yotec Construction and China Communications Construction Co. Ltd. (CCCC). Alemayhu is currently constructing the 60Km Adwa-Mekelle road.
The Sport Academy will include more than 20 playing fields, swimming pools, dormitories and, administration buildings to train in 13 kinds of sports. It will accommodate 800 trainers at a time.
The sport academy
Balancing the growth of the sports sector with the country’s economic development and bringing the benefits of sports competitions to it, are the reasons for the construction of the Sport Academy, Mohamed said, speaking to Fortune after the signing.
Yohaness Abay Consultants designed the academy and will also be responsible for the construction and contract administration.
Construction is expected to begin after 21 days and finish in three years.
The new institution vies to centralise into a national Sport Academy, the scattered training that has been given so far, said Fisseha Geberemichael, deputy head of the Oromia Youth & Sports Bureau, told Fortune after the ceremony.
The Oromia academy will be the second such facility after the 290 million Br Ethiopian Youths Sports Academy, which rests on 24ha of land along the ring road from Bole to Megenagna. It was inaugurated on May 29, 2013.
EDB set to extend 70 bln birr loan in GTP-2
The bank opened its branch in Assosa town, Capital of Benishangul Gumuz Regional State, recently.
EDB President Isayas Bahre said while opening the branch that the bank has extended 30 billion birr loan to investors engaged in manufacturing sector during the first Growth and Transformation Plan (GTP) period.
The bank managed to attain more than 80 per cent of its GTP target in terms of loan reimbursement, creating jobs, export trade and other key economic issues, he stated.
The bank has played a remarkable role for the growth of the country’s economy by encouraging the manufacturing sector, he added.
Isayas added the bank envisaged attaining the plan set to make the private sector the leading actor in the economy by encouraging the manufacturing industry in the coming five years.
Hence, some 150 other branches and ATM machines will be opened across the country, he remarked.
Representative of Chief Administrator of Benishangul Gumuz Regional State, Musa Mohammed on his part said trade and investment activities have been increasing in the region following the construction of the Grand Ethiopian Renaissance Dam (GERD).
The opening of the branch would improve the benefit of the community through offering efficient services to small and micro enterprises (SMEs) and investors, he added.
Established in 1991 EC, EDB has 37 branches across the nation, it was indicated.
Ethiopia to attract more hotel projects
Counting down to the fifth African Hotel Investment Forum (AHIF) to be hosted in Addis, brand operators are tramping to expand presence in Africa where Ethiopia belongs to the top 10 leading hotel development projects in the pipeline.
According to a press statement released by Bench Events, a UK-based hospitality events organizing firm, the hotel business boom in Africa is topping in the global market. Bench Events suggested that eight new global brand hotels are in the making in Ethiopia. Across the continent, 270 hotel chains are in the pipeline with the expected number of rooms exceeding 30,000.
Egypt leads the group with 18 new hotels chains being developed while Ethiopia stands eighth among the 10 leading nations in Africa. Egypt is tailed by Morocco, Nigeria, Algeria, Tunisia, South Africa, Libya, Ethiopia, Kenya and Rwanda. Though the leading nations are mainly from northern Africa, Bench Events suggested that countries in Sub Saharan Africa (SSA) are gaining momentum in hotel development projects.
The information obtained from Bench Events indicates that, out of the top 10 global hotel operators, Hilton Worldwide leads with about 7,250 rooms in new hotels. However, Marriott leaps forward, leading with the development of 36 new hotels across the continent.
Back in 2014, Ethiopia hosted the fourth AHIF, which was attended by major global industry players and which is the fastest spreading event bringing global players and policy makers together. It is to be recalled that Prime Minister Hailemariam Desalegn had conferred with major operators of the hospitality business following the 2014 AHIF event that was held in the country. During the event, six major brand operators had inked management agreements to run star-rated hotels, which would open doors between now and 2018.
Devising the African Standard Hotel Investment Forum about five years ago, Bench Events is thriving elsewhere in Europe and the Gulf States. Siding with Bench Events, Calibra Hospitality Consultancy PLC made efforts to bring in foreign hotel operators to join hands with local developers. The fifth AHIF is booked to take place at the end of October this year.
Ministry ready to provide quality health care services in the coming five years
The Ministry told fanabc.com that it has planned to budget 250 billion Birr for the success of the project. Limited services, such as a CT Scan will be readily available in universities and hospitals, according to Ahmed Imano, PR Head at the Ministry.
In the meantime, increasing the number of specialists has been given due attention.
Furthermore, healthcare centers in the country will be upgraded to a higher health care centers during the coming five years, it was noted.