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Ambasciata d’Italia ad Addis Abeba

SERVIZIO NEWS

08.04.2015

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ETHIOPIA

Padiglione italiano alle prossime fiere agrex e hotelshow di Addis Abeba...................................4

Etiopia: Troppe Richieste, Addis Sospende Domande Per Terreni Edificabili ...............................5

China, Ethiopia Pledge Closer Ties...................................................................................................6

Ethiopia: Ambitions To Become A Global Force In Leather Production ........................................7

Ethiopia: Ministry Of Industry Concluded Consultancy Contract For Industrial Parks ................9

House Ratifies Ethio-Turkey Major Military Deal......................................................................... 10

Ethiopia To Be Portrait Country Of Upcoming Global Conference .............................................. 12

Ethiopia: Eca To Host Second Africa Think Tank Summit............................................................ 13

EU Businesses Call For More Reforms In The Bureaucracy......................................................... 14

SOUTH SUDAN

Nearly 4,500 Displaced By Recent Clashes In Upper Nile ........................................................... 16

DJIBOUTI

Le Conseil Des Ministres Reaffirme Sa Solidarite Avec Le Peuple Du Yemen ............................ 17

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ETHIOPIA

PADIGLIONE ITALIANO ALLE PROSSIME FIERE AGREX E HOTELSHOW DI ADDIS

ABEBA

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ETIOPIA: TROPPE RICHIESTE, ADDIS SOSPENDE DOMANDE PER TERRENI

EDIFICABILI

ETIOPIA – L’ufficio

dell’amministrazione

comunale di Addis Abeba

responsabile per la

gestione e lo sviluppo dei

terreni sul territorio

municipale ha reso noto di

aver temporaneamente

sospeso la ricezione delle

domande per

l’assegnazione dei terreni

edificabili, in particolare

quelli da destinare allo

sviluppo di industrie

manifatturiere.

(08.04.2015 – Africa e

Affari)

Lo segnala il settimanale

economico ‘Addis Fortune’,

ricordando che negli ultimi due

anni l’amministrazione

comunale ha ricevuto più di

900 richieste da soggetti

interessati a realizzare nuove

industrie manifatturiere, ma è

riuscita ad assegnare soltanto

60 lotti di terreno.

In base ai dati diffusi dalle

autorità municipali, la città di

Addis Abeba riceve

quotidianamente tra le 30 e le

40 richieste per l’assegnazione

di terreni da destinare alla

costruzione di edifici, industrie

e altri progetti.

Da ottobre dello scorso anno,

in seguito all’alta domanda,

l’amministrazione cittadina ha

deciso di diminuire i lotti di

terreno in assegnazione e

istituire un sistema di aste al

rialzo per la concessione dei siti

da destinare a uso industriale.

In circa sei mesi, sono stati

trasferiti 1402 ettari sui 3000

messi a disposizione attraverso

questo sistema: 723 ettari allo

scopo di costruire nuovi

condomini, 175 ettari a scopo

industriale e 52 ettari per altri

scopi.

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CHINA, ETHIOPIA PLEDGE CLOSER TIES

China's top political

advisor, Yu Zhengsheng,

met with Speaker of the

Ethiopian House of

Federation Kassa

Tekleberhan in Beijing on

Tuesday, vowing more

effective cooperation

between the two countries.

(08.04.2015 – WIC)

Yu, chairman of the National

Committee of the Chinese

People's Political Consultative

Conference (CPPCC), hailed the

development of China-Ethiopia

ties since they were officially

forged 45 years ago, citing

frequent high-level exchanges,

enhanced political trust and

cooperation in various areas.

The CPPCC values its

exchanges and cooperation

with the Ethiopian House of

Federation, he said, vowing

joint efforts with the country to

cement personnel exchanges

and share experience.

Kassa said he appreciated

China's assistance to Ethiopia

over the years, pledging to

consolidate understanding and

friendship between the two

countries, and facilitate

cooperation in various areas.

It is Kassa's first China v isit

since he took his current post

in October of 2010. Besides

Beijing, he will also v isit South

China's Guangxi Zhuang

Autonomous Region and

Guangdong Province. (Xinhua)

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ETHIOPIA: AMBITIONS TO BECOME A GLOBAL FORCE IN LEATHER PRODUCTION

Ethiopia is home to the

largest population of cattle

in Africa. In recent years

the country’s leather

industry has attracted

several foreign companies

that have set up factories

here. For instance in 2012,

Chinese footwear

manufacturer Huajian

Group opened a factory at

the industrial zone outside

Addis Ababa where it

manufactures 6,000 pairs

of shoes and boots per day.

(08.04.2015 – WIC)

“The industry has a big future,”

says Yigzaw Assefa, chairman

of the Ethiopian Leather

Industries Association (ELIA)

and CEO of Bahirdar Tannery.

As one of the government’s

priority sectors, investors in

leather enjoy incentives

including duty exemptions on

capital goods and construction

materials, and five-plus years

of an income tax holiday. Other

positives of operating in

Ethiopia are free access to US

and EU markets as well as

cheap labour and electricity.

Transfer of knowledge,

expertise

With more foreign investment

comes competition for local

players, but Assefa says it will

also lead to the transfer of

knowledge and technical

expertise.

For decades Ethiopia has

exported its leather to Europe

and Asia where it is

transformed into fashionable

items. But Assefa believes

investment in Ethiopia-based

factories by foreign companies

will help change this. Local

tanneries too are tapping into

opportunities to produce shoes,

bags and belts for export. One

example is Assefa’s own

tannery which he established in

the 1980s.

Today it mostly processes

animal sk in for export as

leather, but the company is

expanding its production with

the construction of a new plant

that will undertake processing

of leather into bags, wallets,

belts, binders and gloves for

sale abroad.

“We are constructing the

building and training of

workers. In the meantime we

are testing the market with a

small quantity of fashion gloves

and industrial gloves which

have already gotten

acceptance in Italy, Russia and

the US,” says Assefa.

“We have to change the image

we have today, that we only

produce raw materials.”

Potential for manufacturers

The local market is also

opening up for other

manufacturers. In the early

2000s plastic shoes from China

entered the market and were

quite popular, raising concerns

among local shoe

manufacturers. But this is

shifting, with more shoe

companies now selling locally

and proudly displaying their

‘Made in Ethiopia’ tags. There

are also multiple SMEs that

manufacture leather bags for

sale in the country.

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Although exports dominate,

Assefa believes local

consumption of Ethiopian

leather products will increase

as people’s income levels rise.

Supply of raw materials a

challenge

However, the increasing

investments and activ ity in the

industry has caused a shortage

in the supply of hides. Most

factories source animal sk ins

from suppliers who in turn

source from small-scale

suppliers who collect hides

from different homesteads.

Although most families in rural

Ethiopia are farmers and keep

cattle, Assefa says commercial

farming needs to be developed.

Inefficient farming methods by

small-scale farmers, such as

not properly treating animals

and grazing them on the same

fields year-in year-out, leads to

poor quality sk ins, meat and

milk. Careless handling and

poor sanitation post-slaughter

also leads to damage of the

hides.

“In order to have healthy and

productive sheep, goats and

cattle, more modern farms

should be developed,” Assefa

says.

“Backyard k illing should not be

practiced because people

damage the skin at home when

peeling it off the animal. We

need modern abattoirs so the

collection process will be

easier, centralized and the skin

will be well preserved.”

Encourage local talent

In coming years Assefa expects

to see more investors pump

money into expanding existing

facilities and establishing more

factories.

“The number of shoe and

leather goods factories will

increase,” he predicts. “There

is a conducive and enabling

atmosphere in terms of both

the political and economic

situations.”

To compete with industries in

other parts of the world, Assefa

says investors in Ethiopia

should prioritize local talent

development.

“A cheap and trainable labor

force is available. Our people

are honest, polite, friendly and

co-operative. But they need

training, and this should be

done by the government and

private sector,” he says.

“These factories will only create

value if they have qualified

human power.”

(howwemadeitinafrica)

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ETHIOPIA: MINISTRY OF INDUSTRY CONCLUDED CONSULTANCY CONTRACT FOR INDUSTRIAL

PARKS

The Ministry of Industry of

Ethiopia (MoI) had

concluded a contract for

the consultancy work of the

Bole Lemi phase two and

phase one industrial parks,

which is worth 139 million

Birr with DOHWA

Engineering Co. Ltd as a

lead firm on Wednesday,

April 1, 2015.

(08.04.2015 – WIC)

The consultancy work will be

jointly carried out by DOHWA

and Junglim Architecture Co.

Ltd, both South Korean firms,

as well as IPE Global Private

Limited, an Indian firm and

Metaferia Consulting Engineers,

from Ethiopia.

DOHWA offers planning,

feasibility studies, design,

supervision and commissioning

services in all areas of

engineering, according to Addis

Forune.

The consultancy includes

preparing topographic maps of

the sites and detailed

infrastructure designs, cost

estimates, specifications,

drawings, bid documents and

contract documents. It will also

involve on-site and off-site

infrastructure work at the

implementation stage.

The industrial parks are located

in Addis Ababa. The Bole Lemi

phase two site covers 186ha of

land mainly reserved for textile

and leather sectors. The Kilinto

site covers 308ha of land and

focuses on agro-processing,

beverages, food and

pharmaceuticals industries.

The World Bank had pledged a

250 million dollar loan for these

two industrial zones and it will

be acquired through a six year

competitiveness and job

creation project (CJC).

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HOUSE RATIFIES ETHIO-TURKEY MAJOR MILITARY DEAL

Ethiopia and Turkey

relations is best known for

stronger economic and

investment cooperation.

(04.04.2015 – The

Reporter)

In the latest development, the

House of Peoples'

Representatives (HPR) on

Thursday approved a highly

regarded draft proclamation

proposing the cooperation of

Ethiopia and Turkey in the

military sector, which

envisaged the way for Ethiopia

to produce military equipment

and sell them to a third parties.

It was said that new

agreement between Ethiopia

and Turkey in the area of

military marks another

milestone in their cooperation

after the House unanimously

ratified the bill signed back in

May 2013.

As part of the increasing pace

of securing bilateral relations

with various countries in the

area of security and defense,

the Ethiopian government

continues to tighten and

expanding military cooperation

beyond regional and

continental scope.

The agreement proclaims: “The

cooperation will elevate

Ethiopia’s military capability to

one of the top countries in the

world in terms of defense

modernization and logistical

quality.”

The agreement was signed

between the Ministries of

Defense of the two countries in

Istanbul to “provide for

cooperation in the field of

defense industry, improving the

defense industry capabilities of

the countries, production and

procurement of defense goods

and services as well as related

technical and logistic support in

the field.”

The agreement further allows

the sale of co-produced and

developed equipment to a third

party provided there is a prior

written consent of the two

parties.

Recently, the Turkish embassy

in Ethiopia noted that Ethiopia

is turning out to be a strategic

and reliable partner to Turkey

in the economic sector in

particular.

According to the embassy, out

of the 50 top investment

destinations for Turkish

investment around the world,

Ethiopia stood at the fifth

position.

Turkey is also the leading

investor in Ethiopia in terms of

sheer volume of the investment

capital with 148 companies

engaged in various sectors,

according to the embassy’s

report.

As part of the efforts to

strengthen cultural ties and

people-to-people relations of

the two countries, Turkey will

open Turkish language study

center at the Addis Ababa

University, the embassy said.

In the same session, the House

also ratif ied another highly-

regarded multi-lateral

agreement, which is an

agreement to establish the East

African Standby Force-that

further extends the mandate of

Ethiopia’s National Defense

force beyond its territorial

horizon.

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The ratification will ensure

Ethiopia’s and the region’s

peace and security and reduce

threats, according to a

document attached with the

draft law. After a short

deliberation, the House

endorsed the bill with an

absolute majority vote.

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ETHIOPIA TO BE PORTRAIT COUNTRY OF UPCOMING GLOBAL CONFERENCE

The specialty Coffee

Association of America

(SCAA) has made public

that Ethiopia is to be a

portrait country on its 27th

global conference to be

held next week in Seattle,

Washington.

(08.04.2015 – WIC)

At a press conference held on

Thursday, Peter Vrooman,

deputy mission director of the

USAID, said that Ethiopia is to

be featured as a portrait

country for the specialty

conference where some 10

thousand global industry

players are expected to take

part.

Vrooman was joined by local

officials and coffee business

representatives. Assefa

Mulugeta, director general of

export promotion directorate at

the Ministry of Trade, noted

that the conference means

more networking and

marketing opportunities.

Abdullah Bagerish, chairman of

the African Fine Coffee

Association, also was positive

about taking part in the

upcoming conference. He said

Ethiopian coffee needs to be

well-staged at the global level.

According to Abdullah, who

together with his family runs a

well-established coffee

business, marketing and

promotion, cultural values

attached to the coffee are the

areas where Ethiopia needs to

capitalize on.

The volume of specialty coffee

exported to the global market

is way insignificant compared

to the commercial level.

However, being a birthplace of

coffee, Ethiopia aspires to

become the second largest

producer of coffee Arabica,

Assefa noted. That said, the

current export performance of

the country shows less than

300 thousand tonnes or close

to six million bags a year, while

Brazil, Colombia and new

coffee producers like Vietnam

dominate the global production

totaling some 130 million

bags.

Globally, some 500 billion cups

of coffee are consumed a year

and US coffee fans alone drink

150 million cups. Vrooman

remembered that following the

Second World War, cheap and

poor quality coffees were

rationed among consumers.

That, however, changed in the

1970s when the notion of

specialty coffee houses became

trends in the US. Currently,

SCAA has brought together

some 9,000 members from 40

countries representing every

fragment of specialty coffee

industry.

However, the 15 million

Ethiopians who depend on

coffee related livelihoods have

to wait long to obtain a fair

share from the specialty coffee

business. Assefa argues that

Ethiopia’s coffee is believed to

be “organic” by default yet very

far away to fulfill internationally

set standards. Coffee is still

described as the backbone of

the Ethiopian economy. These

days oilseeds like sesame are

taking over in terms of export

volume and hard currency

generation.

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ETHIOPIA: ECA TO HOST SECOND AFRICA THINK TA NK SUMMIT

Economic Commission for

Africa announced it will

host the Second Africa

Think Tank Summit, on the

theme, “The Rise of Africa’s

Think Thanks - Practical

Solutions to Practical

Problems”, from April 6-8,

2015 in Addis Ababa, The

Daily Monitor reported.

(03.04.2015 – 2Merkato)

The aim of the summit is to

survey the ways in which

Africa’s Think Tanks are

presently making a difference

in the continent’s

transformation and how they

can become exceedingly

significant and pertinent

contributors as the v ision for

Africa in 2063 rolls out.

The Summit is organized by the

Think Tank and Civ il Society

Programme of Pennsylvania

(TTCSP) in collaboration with

the Harare-based African

Capacity Building Foundation,

according to the Commission.

Series of regional and global

“think tank Summits” had been

organized by the Think Tank

and Civ il Society Programme of

Pennsylvania (TTCSP) ,

convening together

professionals of top-ranked

think tanks to act as a trade

association for networking,

reflection and discussions on

the critical matters of the day.

Nine summits had been held

thus far, together with regional

convocations for Asia, Europe,

Latin America and North

America, the G20 countries,

and most recently a Global

Think Tank Summit in Geneva.

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EU BUSINESSES CALL FOR MORE REFORMS IN THE BUREAUCRACY

Ask for minimum capital

requirements of USD

150,000 et al to be nullified

Numbering some 300, the

European Union businesses

operating in Ethiopia –

mainly engaged in business

and investment activities –

has asked the government

to make changes in its

public services.

(04.04.2015 – The

Reporter)

During the third annual forum

held on Wednesday at Hilton

Addis Ababa, the EU-based

businesses have echoed the

reforms they wanted to see the

government make so that this

would improve the business

climate in Ethiopia.

Among the reforms are tax

administration, customs,

business licensing and

administrative burdens.

According to Ambassador

Chantal Hebbercht, head of the

EU delegation in Ethiopia, a

study document – roadmap –

with details of

recommendations and

suggestions for reforms have

been handed over to Fistum

Arega, commissioner general of

the Ethiopian Investment

Commission (EIC). Through

her technical expert,

Ambassador Hebbercht

described how studies were

conducted to arrive at the

conclusion that the government

should be made aware of the

concerns of European

businesses.

Out of the 300 businesses,

some 80 were approached to

point out the basic

impediments they were faced

with while operating in

Ethiopia. According to the

Ambassador’s assistant, some

ten major impediments were

discovered to be most

challenging. Out of those,

again five demanded

immediate attention from the

government. Availability of

foreign exchange, tax

administration, customs,

licensing and administrative

burden – mostly bureaucratic

red tape – were the major

impediments. That said foreign

exchange issue was left out as

it requires policy interventions

from the government.

Following those impediments,

international experts, who have

been behind conducting the

survey, suggested that

obtaining investment license

should not force investors to

deposit minimum capital at the

central bank. Accordingly,

foreign investors are required

to deposit some 150 thousand

dollars to obtain licenses.

Technical experts at the EU

asked, “What purpose does

such requirement serve?”

urging that this should be

nullified in the foreseeable

future.

Mamo Mihretu, expert at the

World Bank Group financial

arm, the International Finance

Corporation (IFC), told The

Reporter that the minimum

capital requirement had no

purpose in the eyes of

international best practices

agreeing with the complaints

raised by the EUBFE. However,

Mamo testif ied that the

government was busy in taking

measures to improve the

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investment climate in Ethiopia.

Mamo went on to say that

EUBFE should have

acknowledged some of the

changes introduced.

Some of the changes where

the WB was involved in

assisting the government

included the improvements in

the proclamation of customs

clearance. Risk management of

imported goods has been

improved. Previously, some 60

percent of imported goods

were subject to pass through

red channel customs and

currently that figure has been

reduced by half, Mamo said.

According to Mamo, single

window service is coming into

the system, which is one point

EUBFE failed to recognize.

Yet, according to the WB

expert, business license and

registrations must be further

improved. One such

predicament EUBFE experts are

critical about was the excessive

requirement of certificate of

competence for which some 36

government agencies are

involved in issuing. Certificate

of competence for Mamo and

the like need to be put in place

in much specified business

activ ities which might harm

society and the environment.

The World Bank is assisting the

government to improve trade

license and trade name

practices. The other area

where the government is

required to move boldly on

includes tax administration

procedures. According to the

EU businesses, tax

assessments, tax appeals and

consistency in decision-making

are where the tax authorities

are failing most businesses.

EUBFE urged the tax

authorities to drop the 50

percent payment of disputed

tax amount before appearing

for tax appeals.

On a similar note, Chris de

Muynck, chairman of EUBFE

told The Reporter that Turkish,

Indian and other non EU

businesses have similar

concerns on the table. “It

might be the case that EU

businesses are demanding for

those changes to come in more

formal manners, Muynck said.

“Clear evolution towards

openness and more

collaboration from the

government side is what we

are asking. I think these are

some of the encouraging

outcomes in the past three

years. The follow-up is fast

moving towards the solutions.”

Officials from the Ethiopian

Investment Commission (EIC)

and the Ethiopian Revenues

and Customs Authority (ERCA)

and the Ministry of Trade were

among those who tried to

defend and at some point

promised to take measures to

resolve issues tabled by

EUBFE.

According to EUBFE, the 300

companies have invested some

23.6 billion birr and any

positioned to be among the

major job creating firms. So far

EU businesses are associated

with securing jobs for 450

thousands in Ethiopia.

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SOUTH SUDA N

NEARLY 4,500 DISPLACED BY RECENT CLASHES IN UPPER NILE

Recent skirmishes in South

Sudan’s Upper Nile state

have forced nearly 4,500

people to seek shelter at

the United Nations mission

in the capital, Malakal, an

official said on Tuesday.

(08.04.2015 – Sudan

Tribune)

Stephane Dujarric, the

spokesperson for the UN

secretary-general said the

recent displacement brings the

total number of civ ilians in that

protection of civ ilian sites in

Malakal to an estimated

26,000.

Over 115,000 are reportedly

being sheltered at various UN

compounds countrywide.

“And that is the highest

number of displaced that the

Mission is protecting since the

start of the present conflict in

December 2013,” Dujarric said

in a statement.

The world body also expressed

concerns over new

displacements of the

population reported by its

humanitarian partners in parts

of South Sudan, including

31,000 in Jonglei state.

Tens of thousands of people

have been killed and millions

displaced as a result of

misunderstandings in South

Sudan’s ruling Sudan Peoples

Liberation Movement (SPLM).

The wrangles, involv ing South

Sudanese president, Salva Kiir

and his former v ice-president,

Riek Machar has placed over

three million people at risk of

starvation, with the UN World

Food Programme recently

launching an appeal for at least

$260 million.

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DJIBOUTI.

LE CONSEIL DES MINISTRES REAFFIRME SA SOLIDARITE AVEC LE PEUPLE DU

YEMEN

La séance d’hier a été

marquée par une analyse

de la situation engendrée

par la crise au Yémen. Le

conseil a réaffirmé sa

solidarité avec le peuple

yéménite confronté à une

dure épreuve et appelé les

autorités compétentes à

redoubler d’efforts pour

que notre pays reste à la

hauteur de la tâche. En

outre, un projet de Loi

d’amnistie a été approuvé

par l’Exécutif,

conformément à l’esprit et

à la lettre de l’accord-cadre

du 30 décembre 2014.

(08.04.2015 – La Nation)

Hier en conseil des ministres, le

chef de l’Etat et les membres

du Gouvernement ont d’abord

évoqué la crise au Yémen et

ses conséquences. En effet, la

République de Djibouti, terre

d’accueil et d’hospitalité pour

tous ceux que les conflits

régionaux jettent sur les routes

de l’exode, fait face à un afflux

massif des populations civ iles.

Le Conseil a souligné les graves

menaces que la crise au Yémen

fait peser sur la sécurité et la

stabilité de la région et a

rappelé les mesures prises en

vue d’assurer le rapatriement

de nos ressortissants bloqués

au Yémen.

En outre, face à l’afflux des

populations qui fuient les

combats, le Conseil a indiqué

que sur les plans sanitaire et

sécuritaire, toutes les

dispositions nécessaires avaient

été prises pour aider et

accueillir les populations

réfugiées.

Ainsi, des sites ont été

aménagés pour prendre en

charge ces familles et faire en

sorte qu’elles puissent

bénéficier de prise en charge

médicale. Le Conseil réaffirme

sa solidarité avec le peuple

yéménite et demande aux

autorités compétentes de

redoubler d’efforts pour que

notre pays soit à la hauteur de

la tâche car la République de

Djibouti a toujours été une

terre d’accueil et d’hospitalité

pour les populations fuyant les

conflits armés. Parmi les

projets de Loi adoptés hier lors

de cette séance, figure celui

portant amnistie, un texte qui

s’inscrit, bien sûr, dans le cadre

de l’accord signé fin décembre

avec l’opposition. Il s’agit là

d’un projet de loi allant dans le

sens de l’apaisement.

Le chef de l’Etat, qui a pesé de

tout son poids pour que cet

accord-cadre soit signé, entend

par cette mesure de clémence,

envoyer un signal fort en

direction de la coalition de

l’opposition.