The G-8 leaders have endorsed a new initiative to help prevent famine by improving worldwide emergency assessment and response systems, raising agricultural productivity, and helping 5 million food insecure people in Ethiopia attain food security by 2009.
According the press release, the U.S President led the G-8 in endorsing an initiative on Ending the Cycle of Famine in the Horn of Africa, which commits the G-8 to: Improve worldwide emergency assessment and response systems; Support programs to raise agricultural productivity and promote rural development in food insecure countries; Assist Ethiopia to attain food security for 5 million people by 2009; and Work with other donors to meet fully the emergency assistance needs in the Horn of Africa and other famine-prone regions. (WIC - June 11,2004)

Ethiopia Offers Opportunities for Floriculture, Horticulture Investment

Ethiopia has a huge potential for foreign direct investment in the area of Floriculture and Horticulture sub-sector, the Ethiopian Investment Commissioner said. Briefing a visiting Chinese delegation, Commissioner Abi Woldemeskel said that Ethiopia has ample opportunity for floriculture and horticulture investment activities as the country offers immense potentials for fruits, vegetables, flowers and oil seeds.
With a view to attracting foreign direct investment, the agricultural and agro-industrial investment sectors, particularly investment in horticulture were given prime importance. Abi said the commission has given various incentives including minimum of five years tax holiday period and duty free imports of capital goods for investors.
He said investors engaged in the sector in Ethiopia would enjoy the lucrative markets in Europe and the U.S., that have provided developing countries including Ethiopia with quota and tax free market opportunities. Zou Gang Ren, assistant governor of Yunnan province and leader of the Chinese delegation said on his part that Ethiopian investment policy was attractive.
Then assistant governor said that Chinese investors were desirous to utilize the country's potential floriculture industry. The delegation would pay a short visit to Golden Rose Agro Farm, Calu, Koka, and Ziway floriculture sites. (ENA - May 24, 2004)

Ethiopia, China Sign Agreement on Water Resources Development

Ethiopia and China signed an agreement on water resources development on May 16, 2004. The agreement was signed during the visit to Ethiopia of Mr. Wang Shucheng, Water Resources Minister of China. During his visit Mr. Wang met with high level leaders of the country including Prime Minister Meles Zenawi and the Ethiopian Water Resources minister, Shiferaw Jarso.
The agreement would have a significant importance in development of rural water supply, hydroelectric generation, irrigation development and training of professionals in the field. During the talks with the Chinese Water Resources Minister, Prime Minister Meles expressed Ethiopia's willingness to further consolidate its cooperation with China in the area of water development.
Meles told the Minister that strengthening of the water development cooperation between the two countries would help Ethiopia draw important lessons from China. Mr. Wang Shucheng assured the Prime Minister that China would extend support to Ethiopia in the areas of water resources management, capacity building, technological transfer and training of manpower.
Mr. Wang had visited the infrastructural and water development activities being carried out in various parts of the country during his three-day stay in Ethiopia. (ENA - May, 17)

14 Companies Engaged In Mines Development

The Minister of Mines announces that 14 companies have been engaged in various mines development activities with a total capital of more than 1.8 billion Birr. The Minister, Ambassador Mohamoud Drir, made the report on May 14, 2004 while presenting his ministry's nine month report to the Natural Resource Affairs Standing Committee of House of Peoples' Representatives. He said the investments have been in the areas of gold, salt, opal and mineral water production. Some of the companies have already entered into production phases while it is expected that the others would soon become operational, he indicated.
The minerals being produced by the companies are significant replacing imports and sparing foreign currency expenses, he said. In addition, some seven companies with an aggregate capital of more than 90 million Birr have received licenses and been engaging in mines exploration and survey.
The Ministry had concluded an agreement with a Malaysian company for the exploration of Petroleum in the Gambella State, he said, adding the company had earmarked 5 million US Dollar for the exploration. The Ministry also signed an agreement with the company for a study on Petroleum exploration in the Somali State. Agreement has also been reached with SIL Tech International for the study of the natural gas deposits in the Kalub and Hilala areas in the Somali State, he said. (ENA - May 15)

Sino-Ethiopia Sunshine Pharmaceuticals Inaugurated

A pharmaceuticals Company, established in a joint venture by Jiangzi Corporation for International Economic and Technical Cooperation (CJCIETC)of the Peoples' Republic of China and Industrial Investment Share Company (EAII.S.C) of Ethiopia at Debre Zeit town, Oromia State, was inaugurated On April 22, 2004. The Sino-Ethiopia Sunshine Pharmaceuticals established with an initial capital of 40 million birr and said to have been installed with a capacity of producing a billon capsules and tablets per year, is now operating at 30 per cent of capacity. According to General Manager and co-owner one of the pharmaceuticals, Dr. Mulugeta Bezabeh it has already entered the local market with three products and is about to release three more products.
In his inaugural speech, Oromia State President Junedi Sado said that the pharmaceutical Company is exemplary with regard to strengthening joint partnership in line with the country's industrial development strategy. "The factory reflects not only the two companies' partnership but also the friendship between the Peoples' Republic of China and Ethiopia," the president said. According to him, the relationship of the two countries has been further strengthened at state-to-state, town-to-town and even people- to-people level.
He cited the cooperation established between the Oromia State and Chinese Hunan Province to prove this fact. Speaking about his government's commitment towards encouraging investment in the state, the president explained that it has been taking fundamental measures to crate conducive investment climate. The government has been engaged in amending various regulations in relation to investment facilitation, he said. ( EH - 23 April)

Chinese Company Wins Tantalum Bid

A state owned Chinese company from Ningxia Province of China, won the bid for the purchase of 20 tons of tantalum from the Ethiopian Mining Development Sh. Co., the only company extracting tantalum in the country. The Ningxia company won with an offer of USD 32 per unit ton.
The number of competitors has shown a significant improvement, rising from the usual two contenders to six now. It is also reported that the Chinese offer is the highest in the past two years where the price was revolving around USD 30 per ton. The high consumption of tantalum in China is attributed to the ever-growing sector of information technology [IT] using the product in their industries.
Previously, Trade mats, a Belgium based company, had bought another 20 tons of tantalum at a price of USD 30 per unit ton from the Ethiopia Mining Sh.Co. and has already shipped it out to American buyer Cabot, based in Philadelphia which had shown its interest to invest in the Kenticha Tantalum Mining a few years back. (Capital - April 18, 2004)

AGOA has been Extended to 2015

African Growth and Opportunities Act (AGOA) has been extended to end in 2015 instead of 2008. Africans benefit through this Act by getting access to the US market for clothing made in Africa. The new agreement ensures that poor countries can keep using low cost imported fabric in garments made for the US market for another three years. The Whitaker Group leads the AGOA Action Committee in the US, which announced the agreement that extends the original AGOA from ending 2008 to 2015.
The agreement labeled, H.P 4103, also concerns the use of low cost imported fabric in making garments for the US market; provides technical assistance for trade capacity building, development of eco-tourism and SPS compliance for African agricultural products; instructs the US administration to develop programs to assist with transportation and infrastructure development in Africa, and specifically defines AGOA eligible garments. Ethiopia is among AGOA beneficiaries. (ENA - April 16)

UNIDO to Help Ethiopia Improve Competitiveness

United Nations Industrial Development Organization (UNIDO) said that it will launch a program that aims at facilitating trade in order to create better market access and improved competitiveness for Ethiopia's food, leather and textile industries in international market. The new program is to begin in June 2004, with the focus on enhancing industrial performance and introducing quality management system.
The UNDP representative stated that the program has the objective of assisting the Government to facilitate its implementation of Industrial Development Strategy (IDS) through strengthening cross sectoral and secoral institutions, such as Micro and Small Enterprise Development Agencies (MSEDA), Quality and Standard Authority of Ethiopia (QSAE) and Ethiopian Investment Commission (EIC). Furu said that in accordance with the strategy of the Ethiopian Government, UNIDO is planning to expand its assistance in disseminating quality assurance principles and improving the support infrastructure set up to help industry conform to international standards and market requirements. (WIC - April 06, 2004)

Gilgel Gibe I Hydroelectric Power Plant Inaugurated

The Gilgel Gibe I hydroelectric power project constructed at a cost of over 2.2 billon birr was inaugurated on February 23, 2004. Prime Minister Meles Zenawi said the government has given due attention to developing the power potential of the country. The project nation's largest powerhouse to date with a capacity of generating 184 Mega Watt hydropower, is believed to contribute significantly to meeting the ever-increasing demand for electric power of the contemporary Ethiopian economy. Inaugurating the power plant, Prime Minister Meles said the government would press ahead with its efforts of developing the power sector with the objective of supplying sustainable electric power to urban and rural areas of the country.
Meles said efforts to enhance the operational and service delivery capacity of the Ethiopian Electric power Corporation (EEPCo) would be strengthened to create a corporation that would play a dynamic role in providing improved services in the transmission and distribution of power as well as in building a robust national economy.
Minster of Infrastructure Dr.Kassu Iiilala said on his part that through Ethiopia has huge energy resources, only two per cent of it is being developed. He stressed the need for rapidly and wisely utilizing the renewable resource for satisfying domestic demands as well as exporting for neighboring countries.The government has liberalized the power sector to encourage the involvement of local and foreign investors in the sector, he said, adding that EEPCo should also maximize efforts of expanding electric power services on one hand and boosting its financial capacity on the other. (EH - 24 February)

Coffee Unions, Oxfam Launches Campaign for Fair Coffee Price

Two Ethiopian Coffee unions and Oxfam International have forged alliance to launch the Big Noise Campaign to pressure world leaders and coffee companies to come up with a lasting solution to the coffee crises. At a joint press conference they held, representatives of Sidama and Yirgachefe Coffee Framers' Cooperative Unions as well as Oxfam International said that they have planned to make at least one million people sign a petition for fair price in five weeks.
They also indicated that they would raise the issue at the EU-ACP meeting and ask Ethiopian Prime Minister Meles Zenawi and many of the 500 delegates attending the meeting to sign the petition. Collecting the voice of the poor coffee farmers and voicing back to the policy makers and coffee companies will bring a significant change in the future coffee price as witnessed in the past, according to them.
So far, 160,000 people have signed the petition. They also indicated that government offices, celebrities and business people have so far showed interest to flight what they see as injustice. Archbishop Desmond Tutu, UN Secretary General Kofi Anan, and rock -star Bono have added their voice to the Big Noise, it was learnt. (EH - 14 February)

Germany to Step up Development Cooperation with Ethiopia

Chancellor of the Federal Republic of Germany, Gerhard Schroder said that his country "wants to assist Ethiopia as it has set out a good path despite the fact that a few things remain to be done. In a joint press conference he gave yesterday with Prime Minister Meles Zenawi following their bilateral talks, Chancellor Schroder said that he appreciates the reform process being undertaken in Ethiopia, its firm commitment to flight terrorism and active involvement in peace-keeping and peace-making efforts of the African Union. The Chancellor said that all these promising efforts including the initiative to promote good governance across the country would entirely be supported by Germany.
"Ethiopia has become exemplary regarding good governance. It has also opened up to a reform process that we entirely support," said Mr.Schroder. Speaking of the bilateral talks he had with Prime Minister Meles, Chancelor Schroder said that the two countries agreed to work together in bringing about more German investment to Ethiopia."We will also work towards developing technical and vocational training in Ethiopia,"Schroder said.
The Chancellor also said that he would pay his personal respect to the international achievement of Ethiopia's massive engagement to restore peace in African countries. The peace mission of Ethiopia in Burundi and Liberia and its contribution to help resolve regional conflict like that of Somalia and the Sudan was hailed by Mr. Schroeder. Chancellor Schroeder said that all the promising efforts of Ethiopia to development as well as initiatives to secure peace in the region and above all the fact that the country is the seat of the AU made him to start his African visit from Ethiopia.
Prime Minister Meles said on his part that the two countries agreed, during the course of the discussion, that the development cooperation between Ethiopia and Germany" is excellent and leads to continue to be excellent. "We discussed regional issues and agreed with the Chancellor that peace is a paramount significance in our region and also with regard to relation between Ethiopia and Eritrea," Meles said.