Economy and Development

Minister Speaks Of IncreasingGrants, Loans, Debt Cancellation

Grants, loans and debt cancellation Ethiopia is receiving from foreign governments, international organizations and institutions is growing more steadily than ever, State Minister of Finance and Economic Development (MoFED) said.

The amount of grants and loans Ethiopia is receiving over the past three years is soaring owing to political stability and peace in the country, Dr. Mulu Ketsela noted.

Political stability and peace are considered as major criteria for donors and creditors, she said adding during Ethio-Eritra war grants and loans were largely halted.

Ethiopia obtained seven billion Birr grants and loans during 2003 / 2004. of which 1.5 billion Birr was provided in loan, the state minister said.

The development directions the country is pursuing is attributable to the rising support as they are inter-related to realize poverty reduction and MDGs, she said.

She said Ethiopia has won 3.3 billion US dollar debt reduction per the agreement reached by the International Monetary Fund (IMF) and the World Bank (WB) board as it has met the criteria set in the Heavily Indebt Poor Countries (HIPC) Initiative.

Mulu said all these gains are the result of support for Ethiopia's economic policy directions by foreign governments and institutions.

Most debt cancellations came in from Paris Club Creditors, she said adding the 67 million Euros debt cancellation agreement made by the government of German recently is part of the Paris Club Creditors.

The state minister also noted Ethiopia secured a debt cancellation of 5.5 million Euros from the government of France this week.

She said the sum that would otherwise go to debt servicing would be used to budget subsidy.

The state minister said the grants and loans obtained are primarily utilized for poverty reduction, food security, road construction, health, education and other infrastructure facilities.

According to Mulu, America, Japan, Germany, Britiain, Canada, Italy, the Netherlands and Ireland are in the forefront in terms of support.

While International Development Association (IDA), African Development Fund (ADF), European Union (EU), UNICEF, UNDP and WFP, are among the major financial institutions and international organizations, she said.
December 25 (ENA)

 Fiber Network Agreement Signed

The Ethiopian Telecommunications Corporation (ETC) has signed project agreement with China International Telecommunication Construction Corporation (CITCC) providing for the installation of fiber network in two directions in the western Ethiopia.

The agreement signed on November 26is one of the three projects ETC designed to install optical fiber cable network as part of its plan to undertake nationwide installation of a 4,000-km optical fiber cable backbone transmission system network in 8 major directions.

The agreement covers Addis Ababa-Jimma and Addis Ababa-Nekemt 670-km and traverses 20 big towns. The project cost stands at 66,616,927 million Birr. ETC has signed the remaining two projects with the German's SIEMENS Company and the French ALCATEL Company. November 27, 2004 (ENA)

Australia Forgives Ethiopia's 6.1 Million USD

Australia has forgiven a debt of a $7.9 million ($6.1 million) owed by Ethiopia after the World Bank and the International Monetary Fund ruled that the country had qualified for debt relief.

The Australian government said the debt was forgiven because Ethiopia met the requirements of the enhanced Heavily Indebted Poor Countries initiative by directing the proceeds of debt relief towards basic health, education and poverty reduction program, according to the report. November 15 2004 (ENA)

Ethio-Chinese Joint Venture to Establish Cement Factory

Japan Hands over 182.5 km Rehabilitated Road

The Government of Japan handed over yesterday the 182.5-km Addis Ababa-Goha Tsion rehabilitated road to the Ethiopian Government. The Trunk Road Rehabilitation Project has been implemented at a cost of 91 million US dollars.
Japanese Ambassador to Ethiopia, Kenjiro Izumi handed over the project to the Minister of Infrastructure, Dr Kassu Illala at a ceremony held at the Sheraton Addis.Dr. Kassu said on the occasion that the assistance obtained from Japan for the execution of the project has further strengthened the age-long bilateral relations of the two countries.
The ambassador also said the on-going survey work on a 42-km Goha Tsion-Dejen road rehabilitation project, which includes building of a new bridge on Blue Nile river, is expected to be finalized in 2005, which he said is the 50th anniversary of the restoration of diplomatic relations between Ethiopia and Japan.
The Japanese government is also providing technical assistance to the Alemgena Training and TestingCenter of the Ethiopian Roads Authority since 2002 with a view to helping boost national capacity in road construction and maintenance, the ambassador said. October 28,2004 (ENA)

Ethiopia's Poverty Reduction Activity Encouraging

World Bank President James Wolfenshohn said that the alternatives being pursued by the government to reduce poverty and unemployment are encouraging. In a news conference he gave at the Sheraton Addis, Wolfensohn described the alternatives being pursued by the Ethiopian Government to tackle poverty and unemployment as a "good start." 

He said the activities launched by the Addis Ababa City Council to expand small and micro industries enabling to curb unemployment problem is also encouraging. 

Ethiopia's all-round development programs aimed at attaining food self-sufficiency goal and reduce poverty could be exemplary to other African countries as well, he said. 

Wolfensohn expressed appreciation to Ethiopia which manages to draw lessons from the experience of Vietnam, Israel and China, who were able to bring about sustainable change in a very short period of time. October 19,2004 (ENA)-

Investment Intervention Areas Identified 

Ministry of Agriculture and Rural Development of Ethiopia said that it has identified important intervention areas for investment priority for the agricultural development program to be undertaken with the New Partnership for African Development. 

Addressing a workshop on the national investment program, the Ministry’s representative Sitotaw Birhanu said that agricultural research, agricultural extension, water-harvesting and small-scale irrigation, livestock export promotion and agricultural marketing have been identified as priority intervention areas. 

Each African country is required to raise its budgetary allocation to agriculture and rural development at least up to 10 percent in accordance with the Declaration of Agriculture and Food Security made by African leaders in Maputo last year, he said, adding that Ethiopia's current allocation to agriculture and rural development surpassed the required commitment level. 

According to the representative, a draft investment program and bankable projects have been prepared to draw necessary funds from development partners and potential donors. 

Food and Agriculture Organization (FAO) representative to AU and ECA in Ethiopia, George Kiuri Mburathi said, on his part, that FAO has allocated seven million US dollars to support those countries which require assistance to design investment programs. October 04, 2004 (WIC)

Oxfam Urges Public to Join ‘Big Noise’

Oxfam International has called upon the Ethiopian civil society and the public at large to add their voices to the ‘Big Noise’ campaign launched with the objective of putting pressure on coffee farmers get a fairer price for their product.

The ‘Big Noise’ is part of the global Make Trade Fair campaign, which strives to redress the unjust trade rules and practices in the world that favour rich countries. The ‘ Big Noise’, believed to be the largest petition so far, aims at salvaging over 25 million families in 50 developing countries whose lives have been seriously affected due to the slump in coffee prices.

“Ethiopia is known to be the birthplace of coffee and one of the chief producers of organic coffee,” Abera, who is also coordinator of the campaign, said. “The collapse in the prices of coffee has put the lives of Ethiopian coffee farmers at risk as the incomes could not even cover the production cost.”

Abera said Oxfam was not against globalization, which, he, said is an inevitable phenomenon. “we are opposing the undeserved profits being made by giant coffee roastersat the expense of poor coffee farmers who are leading impoverished lives,” he added. September 17, 2004 (EH)

Commission to Launch Promotion of Investment Options

Preparations have been finalized to promote suitable investment options of the country during the current Ethiopian fiscal year, the Ethiopian Investment Commission (EIA) announced.

The authority has plans to promote the suitable investment opportunities in the country especially on textiles, wears, meat and meat products, leather and leather products, flowers, and horticulture development sectors.

Promotion activities would be undertaken in Britain, France and Saudi Arabia, especially detailed information on investment options would be provided to some 500 companies in America with a view to attracting investment in to the nation.

Activities toward encouraging citizens living abroad and foreign citizens of Ethiopian origin to invest in the country would also be carried out.

The authority in collaboration with the Ministry of Trade and Industry would undertake the promotion activities in Ethiopian Embassies and Offices of Missions through conferences and visitations.

Licensing and registration of investment projects that took 150 days earlier were reduced to only 2 days during the previous year owing to the civil service reform program, he said, adding the authority has plans to reduce the duration to only 6 hours this budget year.September 12, 2004 (ENA)

Ethio-Djibouti Railway to Be Privatized

The Ethio-Djibouti Railway Company has launched activities to privatize the company to enable it provide efficient and effective services to customers, its Provisional General Manager said.

he company would be privatized to foreign entrepreneurs for it has failed to provide effective services to customers, though it was incepted more than 100 years ago.

Six private companies from Canada, South Africa, the US, India and UAE have presented their requests enabling to privatize the company.

The company's transport capacity, which is now 240,000 tons of cargo annually, can be raised to 1.5 million tons after being privatized.September 11, 2004 (ENA)

Addis Ababa Sets to Success of JAAP Program: Mayor

Mayor of the Addis Ababa City Administration, Arkebe Equbay said the city government is committed to the success of Johannesburg-Addis Ababa Partnership (JAAP) Program.

City Mayor, Arkebe Equbay said his government is committed to make the Johannesburg and Addis Ababa partnership a fruitful and exemplary program.

Arkebe made the remark while receiving a South African delegation led by Executive Mayor of the city of Johannesburg, Amos Masondo.

According to the mayor, the housing development program aims at construction of thousands of low-cost houses, creation of employment opportunities as well as creation of an efficient and strong construction industry.

Speaking on the occasion, Executive Mayor Masondo said the JAAP program aims at forging cooperation between the two sisterly cities mainly on sustainable growth and development, empowerment of women, and sharing experiences.

He also said the two sisterly cities could cement mutual cooperation to mitigate common problems like poverty, unemployment and rapid urbanization. September 4, 2004 (ENA)