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The Reporter, Saturday, July 11, 2015

Vol. XIX No. 983 |1

Vol. IXI No. 983 | July 11, 2015 | ADDIS ABABA, ETHIOPIA www.thereporterethiopia.com Price 5.00 Birr

Five Zone 9 bloggers, journalists freed


The circumstances of their release remains unclear I stood outside the prison gate in state of confusion
By Tamiru Tsige since their imprisonment. were joined by Edom Kassaye and that the ministry can withdraw
Mahlet Fantahun, who were detained at criminal charges for good causes and in
Journalists Tesfalem Waldyes,
The Ministry of Justice (MoJ) withdrew Kality, the next morning. accordance with the law.
Asmamaw Hailegiorgis and blogger
terror charges against five of ten Zelalem Kibret were released on The MoJ cited Article 16/6 of the
defendants in the Zone 9 bloggers and Wednesday from Addis Ababa Prison proclamation that defines the power
journalists case after more than a year Administration, Qilinto branch. They of the executive organs which states
Five Zone 9.... page 35

WB says
*'3JURZWK Joe Biden et al to attend
QDQFLQJFRQIHUHQFH
By Birhanu Fikade

investment After 14 years, the developed and


developing nations are meeting in
Addis Ababa to renew development

WRGHFOLQH
accords and for that reason the high
level conference is to be attended by US
Vice President Joe Biden, Italian Prime
Minister Matteo Renzi, Swedish Prime
Minister Kjell Stefan Lofven and dozens
Debts to mount to 65 percent of high level officials, The Reporter
of GDP in three years learnt.
Tewolde Mulugeta, spokesperson of the
Ministry of Foreign Affairs (MoFA) told
By Birhanu Fikade
The Reporter that some 16 Heads of State
and Government, six Prime Ministers
At its fourth annual Ethiopian and seven deputy Prime Ministers and
economic update, the World Bank three vice presidents will arrive at
Group (WB) found out that Ethiopian Addis Ababa for the third Financing
economic growth in GDP is projected for Development (FfD) conference to be
to slow down to 8.5 percent. The decline hosted for the first time on African soil
is owed to slow investments and low next to Monterey, Mexico and Doha,
rate of total factor of productivity Qatar.
(inefficiency of labor and capital to
effect total output). Government According to Yeshi Tamrat, director
officials deny the projections. general of protocol affairs at the
ministry, the Italian Prime Minister
Lars Christian Moller (PhD), lead Matteo Renzi, and the Swedish Prime
economist and program leader at the Minister Kjell Stefan Lofven are among
WB, presented the findings of the the expected leaders confirmed to
economic update report on Wednesday come for the conference. Vice Prime
Ministers of Turkey, Belgium, Slovakia
WB says.... page 35
US Vice President Joe Biden Joe Biden.... page 34
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www.thereporterethiopia.com
2| EDITORIAL The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

An error worth rectifying


The explanation that Prime Minister Hailemariam Desalegn
Published weekly by Media & gave to a question that was asked of him regarding the Addis
Communications Center Ababa condominium housing program being executed by the
city administration during a parliamentary session on Tuesday
Address: Bole Sub City, clearly showed that he was in the dark about some important
Kebele 03, H. No. 2347 aspects of the program. This lack of information led him to make
Tel: 011 6 616180 Editorial a statement that is in contradiction with the reality.
011 6 616185 Reception Responding to a question posed by a Member of Parliament as to
011 6 616187 Finance whether the condominium houses transferred to the winners of
Fax: 011 6 616189 this years draw were not overpriced, the premier argued that the
escalation in the prices of the condominiums recently transferred
PO Box:7023
was no different from the increase levied on those transferred
0910 885206 Marketing in previous rounds of draws. He added that some individuals
E-mail: mcc@ethionet.et made an error of judgment about their ability to pay for the
Website: type of condominium they wanted to acquire when registering
www.thereporterethiopia.com for the program. He said those who should have registered for
the 10/90 scheme did so for the 20/80 scheme (the first number
General Manager in the fraction represents the percentage of the price of the
Amare Aregawi condominium that registrants are required to deposit beforehand
while the second denotes the proportion that will be paid for
Managing Editor using a bank loan).
Bruh Yihunbelay
This is where the accuracy of the Prime Ministers information
Editor-in-Chief comes into question. The problems encountered during
Asrat Seyoum the registration and 20 percent downpayment for the 35,000 construction. The government should, indeed, be commended
Sub city: N.lafto, K. 10/18, H.No. 614 condominiums which were the subject of the latest draw belie his for allotting such a huge sum for the housing program. This
assertion. In a statement it gave a couple of weeks ago the agency said, the subsidy ought to have been bigger if the value of the
Senior Editors land on which the condominiums is factored in given that land
tasked with implementing the housing program said around
Yacob Wolde-Mariam also belongs to the people. If the government is confronted with
Dibaba Amensisa 31,000 of the lucky winners had deposited the 20 percent down
payment and warned the 4,000 who had not done so that unless challenges that render the housing program, which aims at
Mikias Sebsibe
they completed the payment by July 14 at the latest they would helping citizens living in slums realize the dream of owning
Editors forfeit the condominiums. Irrespective of whether they managed their own house, unviable, it should consult with the public on
Kaleyesus Bekele to effect the payment so far or not, all of them have complained workable solutions rather than take unilateral measures which
Yonas Abiye that the condominiums are expensively priced. Though the city may well defeat the very purpose of the program.
government had previously stated that the escalation amounted At this juncture, it is imperative to ponder on why the number
Assistant Editor
Tibebeselassie Tigabu to just 15 percent of the original price tag, the actual increase is of condominiums built under the 10/90 program exceeds the
Neamin Ashena by any measure steep. number of registrants and is far lower than those registered for
In the first round of registration for the program which was held the 20/80 program. Why would the residents of a fast-growing
in 2004, over 400,000 residents of Addis Ababa registered having city who aspire to lead a better life settle for a smaller house
Senior Reporters
Henok Reta regard to the price of the particular type of condominium they when they can do whatever is needed to afford a bigger abode?
wanted and their ability to afford it. When the registration was Thus, it is not right to blame citizens who had registered for
conducted anew in June 2013, those who had earlier registered the 20/80 program in consideration of their financial capacity
Columnist were given the chance to change their choice with the caveat that then and in hopes of a brighter future for not registering for
Leyou Tameru the 10/90 program when they are caught off-guard by a totally
they would not be given the priority that their prior registration
entitled them to. It is safe to assume that they knew what they unforeseen price hike. On the other hand, the 10/90 program
were getting into because the necessary information on the prices was designed for low-income citizens and only those who could
of the condominiums and the monthly deposit that they have to prove that they met the eligibility requirement were permitted
Chief Graphic Designer to register. Hence,residents who accordingly readied themselves
Yibekal Getahun make was made widely available. For instance, the 20 percent
downpayment that the lucky winners of a 3-bedroom condo in for the 20/80 program were ineligible for the 10/90 program. This
Senior Graphic Designer Aprils tenth round of draw made was not based on the price that is yet another reason why the PMs explanation is beset by an
Tewodros Kebkab was announced during registration. As a result they expected information gap.
the birr 670 monthly saving they needed to make to be slightly The government must not allow a project like the condominium
Graphic Designers
higher. Now, though, they are required to deposit over birr 3,500 housing project, which is instrumental in giving effect to
Tsehay Tadesse
Fasika Balcha
every month. the socio-economic rights of citizens as enshrined in the
Semenh Sisay To make things clearer, the price of a studio-type condominium constitution, to become hollow through distorted information.
Netsanet Yacob After all, the countrys growth cannot be gauged solely in
under the 10/90 program, which at first was birr 33,000, has now
Bezaye Tewodros terms of the fulfillment of material needs or the construction of
more than doubled to stand at Birr 70,335.The condominiums
under the 20/80 program have also become more expensive. infrastructures; the improvement of the quality of the lives of
Head of Photography
Nahom Tesfaye The price of a studio has shot up from birr 61,000 to birr 92,594 citizens as well as their ability to live in dignity is also a critical
and that of a 1-bedroom condo from Birr 126,721 to birr 171,900. measure. It is incumbent upon the government, therefore, to
Photographers Similarly, a 2-bedroom condo, which initially was priced Birr go the extra distance and facilitate the conditions which enable
Tamrat Getachew 224,000, is now worth birr 329, 550 while a 3-bedroom apartment the lucky winners of the latest round of draw for condominiums
Mesfen Solomon to become home owners. Furthermore, it has to commission a
costs birr 477,600, up from Birr 304,215. Such undeniably massive
price escalation has stunned the registrants, who had expected study that takes into account the rise in the price of construction
Website
a moderate rise at best. This is why the explanation that the inputs, will assist in determining accurately the increase that
Bezawit Tesfaye
Binyam Hailu Prime Minister gave at Parliament on the matter is short on may be levied on the price of the condominiums.
information. The corruption afflicting the housing program must also be
Cartoonist
Going forward, it is more important to focus on the solution mentioned here. An 11-month performance report that the
Elias Areda
Fasil W/giorgis than dwell on the problem. The MP who asked the premier if Federal Ethics and Anti-Corruption Commission recently
the condominiums were not overpriced would have done better submitted to Parliament revealed that it had instituted criminal
to raise the ramifications of the escalation as well. It has been charges against an official and staff of the Addis Ababa City
Marketing Manager reported frequently that most of the registrants managed to Housing Project Office as well as various others in connection
Endalkachew Yimam pay the 20 percent downpayment not only using money they with the illegal procurement of sanitary materials, gravel,
had saved for old age or medical treatment, but also borrowed precast beams and blocks worth over birr 86 million. If the
Marketing 2Icers from families, friends and employers. And those who have not government acknowledges that such acts of corruption have an
Biruk Mulugeta inflationary effect, it can introduce a price adjustment that is
yet effected the payment are going cap in hand around cafes
Biruk Chernet welcome by all.
and other places where people congregate begging for whatever
money they can get. This obviously has been prompted by the The condominium housing program should be a success story
Computer Secretaries
unexpected skyrocketing of the price of the condominiums. for the government, not a source of disgruntlement. The Prime
Birtukan Abate, Helen Yetayew,
Prime Minister Hailemariam also disclosed that the government Ministers uninformed comments only serve to aggravate the
Print has subsidized the cost of building the condominiums saying it dissatisfaction felt by many and as such should be retracted
Tesfaye Mengesha, Yeyesuswork immediately.
covered birr 7.5 billion out of the birr 16 billion expended on their
Mamo,Gezaghgn Mandefro

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 HEADLINES |3
Anti-trafficking bill endorsed, police granted
beefed-up power during investigation
By Yonas Abiye victims suffer severe injury or death. with suspects, that is, in an undercover such a wide scope of power except for
It is meant to strengthen the existing capacity. It means that it allows the anti-terrorism bill and the national
Except for the very few legislations penal code, which places sentences of police to make marriage relationship intelligence proclamation.
the country has, the House of Peoples three to eight years in prison and, on with suspects including business
The bill is widely believed to have
Representatives (HPR) endorsed very certain occasions, up to 15 years on relationship or partnership.
people convicted of trafficking. been backed by western governments,
rare proclamations to control human Moreover, the same provision allows particularly by the US and EU member
trafficking that grant law enforcement The proclamation allows the the police to intercept suspects countries, who also feel the souring
officials, such as police or investigators, unrestricted involvement of police communication by the order of the burden of the ever growing influx of
with power including undercover and/or investigators where there is public prosecutor, provided that the immigrants.
investigation.
reasonable grounds to believe that initial grounds for interception of
This latest proclamation was endorsed the crime of human trafficking or communication without a court order There is a provision that makes the
soon after it was received from the smuggling of migrants had been or shall, within 72 hours, be submitted to bill appear to have the interest of these
executive branch. is being committed. In such cases, and approved by the president of the foreign governments.
the police can infiltrate quarters of Federal High Court. According to article 33-39 of the bill,
The proclamation, which is believed to
individuals and groups suspected of the a rehabilitation center for victims of
be backed by western government, is In addition to this, the police have
crime so as to gather evidence. human trafficking or smuggling will be
cited as, Prevention and Supervision of been granted with immunity from
Trafficking in Person and Smuggling of Similarly, police can also conduct persecution unless it causes the death established with funds.
Migrants Proclamation. surveillance on suspects; simulate legal of victims. But police need to sign an According article 33, the financial
relationships and use other appropriate agreement with the attorney general
The latest legislation, proposed by the sources for the fund will be mobilized
special investigation techniques to listing the crimes that he/she is
Ministry of Justice, contains a range of from the government budget, the sale
collect evidence. immune of.
penalties for trafficking and smuggling, of confiscated properties, individuals,
including fines of up to five million birr This provision, if necessary, gives In the countrys legal system, there is no organizations, and from foreigners
and the death penalty in cases where police the right to create a relationship other legislation that grants the police assistance.

Fate of Ghion hotel still remains undecided


ahead of GTP
15 state enterprises listed for privatization in the coming ve years
By Yonas Abiye Deputy head of Corporate Melkassa Aluminium Sulfate and
Communication Directorate with the Sulferic Acid SC; Caustic Soda SC;
The Privatization and Public agency, Asebe Kebede, told The Reporter Transport Construction Design SC;
Enterprises Supervising Agency that the agency has disclosed that, after Langano Resort Hotel; Ethiopian
(PPESA), in the upcoming GTP, aims to a decision of the board, it is going to Mineral Development SC; Adola
privatize 15 selected public enterprises present 15 of the available enterprises Gold Development; Artistic Printing
from a total of 27 remaining enterprises for bid. Enterprise; Ethiopian Pulp and Paper
still owned by the government. Neither Factory SC; Bahir Dar Textile SC;
However, he said, the rest of the
the agencys board nor the government Kombolcha Textile SC; and Shebelle
have come to a decision over the fate of 12 strategic enterprises, including
Transport SC.
Ghion Hotel, which repeatedly failed to Berhanena Selam Printing Enterprises
get any interested from investors. and Educational Materials Production According to Asebe, the government
and Distribution Enterprise (EMPDE), aims to play the strategic developmental
Sources from the agency told The will stay in the governments hands. role in an effective way through
Reporter that both the government, consolidated investment in the sectors
the board and management of the According to PPESA, the enterprises
of electricity, telecommunications,
agency have decided that the former that will be privatized include
finance, manufacturing, and air, sea
royal palace hotel, Ghion Hotel, will be Agricultural Mechanization Service
and train transport.
in the hands of the government for an Enterprise; Awassa Agriculture
undisclosed period of time. However, no Development Enterprise; Bilito Seraro PPESA has privatized 370 public
decision has been made whether it will Agriculture Development; National enterprises across the nation since
be released for bid or not before the end Alcohol Processing SC; Adami Tulu 1995 and earned a total of 19 billion birr
of the second GTP. Pesticede Processing SC; Awash revenue.

5 5
11, 201 11, 201
ay, July ay, July
No. 983 Saturd No. 983
INSIDE

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4| HEADLINES The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

UNCTAD underscores more regulations on services sector


2pens third regional ofce for Africa in Ethiopia
By Birhanu Fikade Africa shares 2.2 percent of the global Africa to ignore proper regulations and
service sector. development mechanisms to be put in
The keenly acknowledged African place, he said.
However, Ethiopia and a few African
economies have recently grabbed nations have some success stories The emerging cross-border banking and
the attention of the United Nations for UNCTAD to narrate in the report. financial integration across the globe
Conference on Trade and Development Ethiopian is one the illustrated carriers poses a challenging concern for Africa
(UNCTAD) and forced the trade centric in Africa. and, hence, Taffere points out, the
organization to enter into the service report to say that tight follow up needs
sector in Africa. The economic Ethiopian Airlines is the fastest
to be established elsewhere in Africa.
development of Africa report was growing, largest and most profitable
dubbed unlocking the potential of airline in Africa, growing by an average While launching the report, Taffere
Africas services trade for growth and rate of 20 to 25 percent per year since revealed that next to Geneva and
development. 2005, the report noted. New York, Ethiopia houses the third
international office of UNCTAD in
Taffere Tesfachew (PhD), director According to the agencys report,
the premises of the United Nations
of African division, least developed Ethiopian has been positioned in Africa
Development program. Joy Kategekwa
countries and special programs at as the most profitable company, netting
is the appointed head of the regional
UNCTAD, said that African economies USD 228 million in 2014 and operating
office for Africa in Ethiopia. She
could have transformed their economies with USD 2.3 billion. The national
said that Ban Ki Moon, secretary
structurally with a well-regulated and carrier stands as a powerhouse in
general of the UN, is set to come and
developed services sector in place. Most Africa. In addition to that, the Ethiopian
inaugurate the regional office. The
African countries have been ranked low service sector contributes about 45
office is expected to benefit African
for failing to establish a well-regulated percent and the country, according to
policymakers and researchers by
services trade, which could have shared Taffere, belongs to one of the 11 service
providing new analyses and studies in
more from the USD 4.2 trillion services oriented nations in Africa.
Taffere Tesfachew (PhD) broad range of trade and development
sector across the world. Currently, For that reason, it is unthinkable for matters.

Govt budget plan boosted as legislators


approve USD 780 mln in loan agreements
By Yonas Abiye on Tuesday, the government is According to the governments (KWD 6.5 million) was solicited from
expecting a 30 billion birr loan from document that was presented before Kuwaiti Fund for Arab Economic
In the wake of the introduction of the external assistance and loans, which the House last month, about USD 350 Development, which is intended for
governments 223.4 billion birr budget is planned to be secured from various million of loans was secured from water development projects in the town
for the fiscal year, government financial bilateral and multilateral relations. International Development Assistance of Axum. Meanwhile, USD 13 million
requirement was boosted as the House (IDA) to finance the agricultural
The latest combined USD 780 million and USD 25 million were also obtained
of Peoples Representatives (HPR) production and productivity projects.
(Close to 15.5 billion birr) was collected from Bank of Arab for Development
approved close to USD 780 million birr The same document also indicates that
from five continental and international about USD 370 million was secured from and Economic Assistance (BAEDA)
in loan agreements that were secured and the Opec Fund for International
financial institutions who will African Development Bank (AfDB) to
from various lenders. Development (OFID), respectively, to
contribute almost 50 percent of the finance the Modjo-Hawassa expressway
According to the national budget finances needed to meet the required and to build 60 km length road between finance a 60 km length of road project
document, which was already approved budget. Ziway-Arsi Negele. USD 21.5 million that is part of the Shambu-Bako Project.

NEWS IN BRIEF
Mekele University to hold population, Inflation climbs to double digits after 27
development conference months
Department of Population Studies at Mekele University, in the capital of Inflation rate has hit double digits for the first time in 27 months, according to the
Tigray Regional State, will hold the third population and development Central Statistics Agency.
conference from July 31 to 2 August 2015.
The rate of inflation for the month of June was 10.4 percent, a one percent rise from
According to Kinfe Abrha Gebreegziabher (PhD), director of the the previous month.
Department of Population Studies at the University, the conference is
Price hikes in foods and edible products, particularly meat, vegetables and fruits
different from the previous two hosted by Gondar University because
drove the inflation into the double digits zone.
it comes ahead of the second Growth and Transformation Plan (GTP).
The conference is organized in collaboration with the National Planning Inflation in such commodities rose from 10.1 percent in May to 12.4 percent in June.
Commission with a financial support from Packard Foundation.
Conversely, inflation in non-edible items decreased from 8.7 percent in May to 8.2
Kinfe also noted that the conference would draw high number of percent in June, the same source disclosed.
participants that includes policy makers, senior government officials,
The newly approved budget for this Ethiopian fiscal year assumes that inflation
population and development advocates, and experts from around the globe.
will be below double digits in the fiscal year.
In addition, some 50 research papers are expected to be presented on the
However, PM Hailemariam Desalegn told PM on last Tuesday the current single
conference from which the top ten will be featuring in the East-African
digit Ethiopian inflation rate and less than three percent budget deficit are
journal of population and development. The conference will also offer
symptoms of healthy economy that the 20 percent rise in the coming fiscal years
training for local journalist working on population and development. (Press
budget hasnt any influence on the national economy. (ENA)
Release)

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 HEADLINES |5
Social security fund bill voted in favor
of private sector
By Yonas Abiye controversy and heated debates between Justice and Administration Standing that, the committee has taken special
the government and private sectors. Committee presented the bill back to consideration on major issues raised
In an unprecedented move, the House of the Houses after making significant by the private sector during the public
Before the Houses decision, the draft
Peoples Representatives (HPR) voted on revisions and followed that up with hearing event.
bill had proposed that all private
Tuesday on the amendment of private a couple of meetings it organized to
organizations embrace the same What we have learnt from the public
organization employees pension bill collect public opinion and experts
pension system and discontinue the hearing is that the responsible organ
in favor of private organization. This opinion.
provident fund in which hundreds of that designed the bill did not participate
is after making a swift change of some thousands of private employees have Chairperson of the Committee, Ababa the private sector when preparing
provisions that are different from the accumulated billions of birr through the Yosef, told MPs that the original draft the bill and didnt invite them to
original draft proposal presented by the provident fund scheme. has been found with shortcomings contribute their own input for the
executive. such as the fact that it was originally proposed legislation. Abeba told MPs,
Thus, the draft bill drew fierce criticism
As a result, the newly endorsed bill designed without the participation and adding that the committee decided to
against the government with the
ensures private organizations continue consultation of private sectors. address the major concerns of private
accusation that the government was
with their usual business of provident organizations.
intending to take the provident fund She particularly explained that the
funds for their employees as part of the into its coffer so as to sooth its quench standing committee had to separately As a result, the committee reported its
social security scheme. of finance for its ambitious development revise the bill whereby it later motion by omitting the original draft
When it was first proposed two weeks projects. identified the major problems and
ago, the bill immediately sparked contentious issues. In addition to
However, the parliaments Law, Social security.... page 36

2SSRVLWLRQSDUWLHVZDQWWRPHHWZLWK
3UHVLGHQW2EDPD
By Neamin Ashenafi request to meet the president to both the the advancement and respect of human this regard, the presidents of the three
White House and the US Ambassador to rights, the letter read. party said that President Obama would
Three opposition parties, All Ethiopian Ethiopia, Patricia Haslach. not commit such a mistake and would
Another issue that the parties raise
Unity Party (AEUP), Ethiopian In their letter to the ambassador, the as a reason behind their demand understand the situation much better
Democratic Party (EDP) and Ye three parties requested the ambassador for a face-to-face meeting with the than the undersecretary.
Ethiopia Raiy Party (ERaPa), who to organize a face-to-face meeting with president is their commitment to fight Both EDP and AEUP presidents argued,
participated in the fifth round general the president. It is well known that against the acts of the world wide The recent report from the State
election that took place on May 24 this the honorable Barack Obama will visit terrorism, stating, We stand not only Department on the situation of human
year, demanded a face-to-face meeting Ethiopia late this month. We would for sustainable peace, but we have also
and discussion with the US President rights in Ethiopia has clearly shown a
be greatly interested in meeting him organized ourselves against worldwide
Barack Obama who is scheduled to visit human rights problem in Ethiopia. We
in person to exchange a few but very terrorism and any form of instability
Ethiopia late this month. are very optimistic that the president
important ideas, views and some and insecurity in the region, continent
mutual concerns, the letter read. and the rest of the world. will raise all the challenges and
The parties made their request officially problems.
to the media in a press conference The letter that the parties submitted The speakers recalled how Wendy
held at the Ras Hotel earlier this week. to the White House includes many Sherman, Undersecretary of State for The leaders of the three parties also
The press conference was headed by issues to be discussed and briefed to Political Affairs, visited Ethiopia a expressed their concern that the
President of AEUP Abebaw Mahari, the president on the current situation few weeks before the election and how result of the general election leads the
President of EDP Chane Kebede (PhD) of the country. We political parties her comment about the democratic countries infant multiparty system
and President of ERaPa Teshale Sebro. are not only pro-development, we are situation and the opposition parties was into a complicated situation. Hence, the
The leaders of the parties confirmed also serious advocates of true and controversial and severely criticized by ruling party should adjust to open itself
that they submitted their letters of acceptable democracy and committed to the leaders of the opposition parties. In to a series of discussion points.

US pledges to support for climate resilient 30 Shabia-backed insurgents attempting to cross


into Ethiopian borders demolishedFederal Police
green economy
The United States joined Denmark, France, Germany, Norway, Sweden The Ethiopian Federal Police disclosed that 30 Eritrean government-backed
and the United Kingdom by signing a Communiqu to support Ethiopias insurgents, attempting to forcefully cross into the Ethiopian territory, from
initiative in implementing its Climate Resilient Green Economy strategy. the Western Tigray Region that borders Eritrea, have been destroyed.

During the signing ceremony, Environment and Forestry Minister, Belete Backed by the Eritrean government, the insurgents in their futile attempt
Tafere, said Ethiopia is making an encouraging progress in economic to forcefully cross into the Ethiopian territory, most of the insurgents were
development, while contributing its share to combating climate change completely obliterated by the Ethiopian security forces, while some of them
globally. were also put under custody, it was learned.

In Lima (Peru), four countries namely Germany, France, Sweden and Federal Police Commissioner General, Aseffa Abiyu, said Eritrean-backed
Demark, joined the UK and Norway to sign a joint Communiqu to support insurgents have in the past made similar foiled attempts to cross into Ethiopia
Ethiopias initiative in implementing its strategy, he stated. via the northern part of the country. However, he underscored that the
insurgents are no match to Ethiopian security forces and that they do not
He said we are very happy to see the US joining this agreement. We hope have the capacity or the ability to overrun the Ethiopian security forces.
more countries will join this effort in the future.
Prime Minister Hailemariam Desalegn recently told the Houses of Peoples
The Government of Ethiopia is committed to this cause and will continue to Representatives (HPR) that Ethiopia will take all the necessary action against
effectively use any support it gets from its development partners, he added. the regime in Asmara if it continues its policy of destabilizing the region East
Africa. (FBC)
US Ambassador to Ethiopia, Patricia Halsach also said, Todays signing
ceremony reaffirms our commitment to combating global climate change
and to supporting Ethiopia to address this challenge. (ENA)

www.thereporterethiopia.com
6| IN-DEPTH The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

If experience of the rst GTP is anything to go by,


this task of transformation is not an easy task
Project executing capacity seems to be
to accomplish. Introspect, the core focus of the the burden for yet another ve years of
GTP I was also to lay down the road to a smooth infrastructure building; however, what looks
transition to manufacturing which is to come about to be a daunting task for the policymakers is
by diverting the surplus gains (both labor and the sheer size of foreign exchange need of the
capital) from agriculture to manufacturing.
projects in GTP II.

The industrial divide


Starting from this weekend, attendants the public on the content of the upcoming
of the third Financing for Development GTP, policymakers were heard saying that
(FfD) Conference would start to descend this is the make it or break it moment
on Addis Ababa. Each member state for the economy. The draft document that
of the United Nations is expected to was prepared to evaluate the highlight
be represented at this global event performances of GTP I indicated that the
with an overwhelming 5000 delegates entire growth road-map could go forward
It was before the converging in the capital. Heads of State without fixing manufacturing and exports.
announcement of GTP or Government, relevant ministers
More ambition
ministers for finance, foreign affairs and
I that the Ethiopia development cooperation and other By all measures, GTP I was inherently an
government embarked up special representatives and heads of infrastructure plan most notably power,
the major international organizations road, railway and telecom. Ethiopia has
on a multifaceted project are camping in Ethiopia for three days invested billions in these areas over the
in the Afar Regional starting from Monday. The reason is course of the past five years. No doubt
simple. They will be talking money; infrastructure took the lions share of the
StateTendaho Sugar money to finance the global development overall close to 80 billion dollars spending
Factory. The government targets of the next 15 yearsSustainable during the GTP I period. GTP II as well
Development Goals (SDGs)successor did not hold back on its infrastructure
had high hope for this of the Millennium Development Goals ambitions with planned expansion of
project since it incorporated (MDGs). If there is one thing that can 17,347 MW of electricity, 220,000kms of
be learnt from the SDGs, it is its sheer road coverage, 2,782kms of the railway
a hydro power plant and ambition. The MDGs wanted to reduce Ethiopia has and unprecedented expansion of mobile
a massive production of extreme poverty (the number of people phone subscription (103 million). With

ethanol. Although years


living below 1.25 dollars per day) by half;
well, SDGs are aiming to eliminate it.
invested billions the exception of the intended increase in
mobile phone subscription, which is close
have elapsed from its initial That is not all; the SDGs are looking to
reduce inequality both within and between
in these areas to three-fold, all the rest are look at a sheer
doubling of their current level or their
project completion period, countries; from better governance and
over the course planed level in GTP I.
peaceful societies to action on climate
Tendaho is still preparing As far as the achievements of these targets
to conduct its rst test
change, ecosystem restoration, and a big
shift towards sustainable consumption and
of the past ve are concerned, number issues are raised in
connection with project lags and quality of
production. Meanwhile, production.
years. No doubt delivery. In this sense, power is one sector
Most of these targets although if met would where lag in project execution has severely
last week Ethiopian Sugar make the world a better place, they seem infrastructure undermined the achievements of the
Corporation has announced to be unbelievably unreal. It is as if the plan. In the 10-month performance report
that it is importing 1 SDGs have borrowed a page or two from
the Ethiopias five-year development road-
took the lions that was presented to the parliament,
Alemayehu Tegenu, Minister of Water,
million quintal of sugar mapthe Growth and Transformation
Plan (GTP). Indeed, what better place to
share of the Irrigation and Energy, in the five years
period the power sector delivery rate was
to bridge the local demand
gap. The story is all same
discuss such an ambitious development
target than in a country which has its own
overall close a mere three percent with only 310MW
of additional electricity entering the

with other major projects


history of ambitious plans. So happens
to be the host country is on verge of
to 80 billion national grid system. This brought the
total amount of electricity generated to in
in GTP I, which is coming launching its send generation of the GTP
which above anything is expected to
dollars spending the country to 2310MW falling by far from
its ambition target of 8,000 to 10,000MW.
to an end this year.
Nevertheless, that does not
charter the nation into a manufacturing
boom and long-run transformation to during the GTP Understandably, GTP I targets hinged on
the coming online of Gibe III power project

seem to deter authorities


industrialization.
If experience of the first GTP is anything
I period. and its 1,800MW and the first phase of the
mammoth the Great Ethiopia Renaissance
in setting other ambitious to go by, this task of transformation is
Dam (GERD) contributing 700MW to
the national grid both did not happen as
targets in the upcoming not an easy task to accomplish. Introspect,
the core focus of the GTP I was also to lay
planned.
GTP II, writes Asrat down the road to a smooth transition to Obviously, the plan is not expected to
manufacturing which is to come about achieve 100 percent, Zemedeneh Nigatu,
Seyoum. by diverting the surplus gains (both managing partner of Ernst and Young
labor and capital) from agriculture to Ethiopia, says. He argues that most of
manufacturing. In fact, there has been the infrastructural projects are either
major gains recorded in the agriculture completed, or on the way to be completed
sector; and there also has been slow shift or at least are on track to be implemented,
in resources in the first five years of the he argues. However, rather bizarre thing
GTP. But, perhaps not in line with what to do is for the GTP II to incorporate all
the plan has anticipated; the services the unattained targets of GTP I and even
sector looks to be on the receiving end. expand on it. For instance, from GTP I the
If there is one thing and only one thing target of power sector fall behind by 97
that the assessment of GTP I shows it the percent; nevertheless this did not stop GTP
failure of the plan on two rather related II from targeting double the generating
fronts: investment on manufacturing and capacity that was under GTP I, itself was
export earnings. In recent discussion with not attained. In effect, in the next five
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 IN-DEPTH |7
To make matters more interesting, GTP II This debate also looks to have to an ideological
as well went on a rampage when it comes to and moral side to it. In that, proponents of the
targeting a 29 percent annual increment in local rm based industrialization argue that
export earning in ve years of the second GTP. local companies are the ones that should decide
This projected increment expects annual export the fate of their country industrialization
revenue to top 12 billion dollars at end of GTP II process.
period.

Mekonnen Manyazewal, commissioner at the National Planning Commission (NPC) is the architect of the Growth and Transformation Plan (GTP II).
years net power generating capacity has challenge for GTP II as it was for the expected to generate some four billion years. Had we had the infrastructural
to expand from 2310MW to 17, 347 MW. first GTP. dollars annually at end of the GTP II. base for industrial parks say five years
When talking of manufacturing in this ago, we probably would have them
Things appear to be similar if one looks Going back to GTP I, the plan clearly
plan, of course textile and leather come by now, he argues saying that the
at the railway sector too. The fact of forecast export earnings to be a grieve
at the forefront. And the two sectors outcome would be different.
the matter, in the rail department the challenge for the implementations of
have missed their assigned targets
only line that is nearing completion the GTP I. In its defense, GTP I projects To put things into perspective, a
in each of the five years of GTP I. For
was the Addis Ababa Light Rail Transit for the countrys merchandise export striking similarities between the
instance, between them (textile and
project. In spite of varying level of to pick eight to 10 billion at end of the two GTPs, although GTP II is still in
leather) were expected generate some
progress none of the rail projects across plan period on account of improving its drafting stages, is that both have
1.5 billion dollars annually in foreign
the across the nation have started commodity prices at the time and relied on a foreign exchange that is
exchange revenue at the end of the GTP
operations. Yet again, GTP II targeted prospect of manufacturing contributing not generated and put their hopes
I period. Nevertheless, these targets
the completion and commencement of to the pool of merchandise export. on a manufacturing sector which
proved to be unrealistic just two or
all the rail projects in addition to lying However, things were not that easy in is yet to become a formidable force.
three years into the GTP I period. For
down 2,782kms of railway network. the export front. At the start of GTP I, Commentators say that without the
the first two years textile brought in
export scored 2.75 billion dollars which manufacturing sector maturing and
The loop 62.2 and 85 million dollars respectively
grew to 3.15 billion in the next year generating the needed dollars, financing
while last year it managed to fetch
Project executing capacity seems to be and remained suppressed around three and an overall balance of payment
barely over 100 million dollars (114.4
the burden for yet another five years billion for the rest of the GTP I period. pressure looks to be unavoidable.
million). The leather as well did as bad
of infrastructure building; however, According to government forecasts,
as textile finishing the GTP years with The balance
what looks to be a daunting task for export earnings at the end of the GTP I
132 million dollars missing the target to
the policymakers is the sheer size of period will not be more than 3.2 billion Nevertheless, the overarching focus of
generate half billion earning in the hard
foreign exchange need of the projects dollars. GTP II looks to be manufacturing. When
currency. In general, the performance
in GTP II. For the most part, the core talking about manufacturing, however,
To make matters more interesting, of the manufacturing sector in terms of
infrastructure deficit in Ethiopia needs the debate seems to be what direction
GTP II as well went on a rampage export earnings was meager at its best
a major foreign exchange investment that the sector should follow. To be
when it comes to targeting a 29 percent at 395.9 million dollars.
spending. From power to road or from more specific, the balance should be
annual increment in export earning
railway to telecom foreign exchange Zemedeneh is of the view is that made between having FDI firms leading
in five years of the second GTP. This
nominated investment goods account manufacturing export is one area export in light manufacturing sector
projected increment expects annual
for the bulk of the overall spending in that the target has been missed by or focusing on the local manufacturing
export revenue to top 12 billion dollars
these projects. But, foreign exchange is the performance in the GTP I. He said sector. This debate also looks to have
at end of GTP II period. According to
one area that the Ethiopian economy, in that the plan contained activities to an ideological and moral side to it.
sources at the Ministry of Trade, the
spite of its glaring GDP growth in past that are critical for the success of In that, proponents of the local firm
overall export revenue projection for
decade, could not overcome. This is one manufacturing. However, the ramp up based industrialization argue that
the next five years that is done at the
challenge that Costentinos Berhe (PhD), period has taken more than anticipated, local companies are the ones that
ministry is much more less than what
lecturer at the Addis Ababa University according to Zemedeneh, and that the should decide the fate of their country
appeared at the draft document of the
postgraduate program, sees as a next GTP is where things would start industrialization process. A major issue
GTP II plan. Once again, the major
debilitating constraint for the growth to bear fruit. For example, if you look in this debate is track record of the local
component of this project is the under
road-map. Finance, he says, especially at the industrial parks, they started
developed manufacturing sector. The
foreign currency is going be a chocking coming in full force in the last two The industrial... page 34
draft indicates that manufacturing is
www.thereporterethiopia.com
8| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |9
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Education in Emergencies
By Anthony Lake

NEW YORK Some time ago, I met a young girl in Jordans vast Zaatari refugee camp. Like the tens of thousands
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health, and a haven of normalcy and hope for the future. Education not only increases the chances that, someday,
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www.thereporterethiopia.com
10|| COMMENTARY The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Reauthorization of AGOA: Opportunity


to boost Ethiopias exports
The African Growth and Opportunity African countries. Reports indicate that to make use of this opportunity to boost
Act (AGOA) is a flagship US trade act close to 80 percent of all AGOA exports export and overall competitions along
that was enacted in 2000 with a clear come from just four of the 40 countries with other African countries. I argue
Ethiopia is an agriculture-based objective of boosting US-Africa trade (Nigeria, Angola, Chad and South that, despite the fact that Ethiopia did
economy and, with 94 million people, relations. As such AGOA came as a Africa). However, despite a decline in not make full use of the opportunity,
the second-most populous nation in signature US Trade Act in providing the overall AGOA export the steady the extension of the mandate could
Africa. The country has experienced duty and quota free market access expansion of apparel amongst non- yet open another opportunity for
impressive economic growth of 10.7 to nearly 7,000 product lines for 40 oil exports is by far consoling. In this Ethiopias booming manufacturing
percent from 2003 to 2012. However, African Countries. Since 2000, exports regard, Kenya, Lesotho and Mauritius sector. This is all the more so since
Ethiopias AGOA exports were a under AGOA have increased more take the lions share of the total nearly Ethiopia has developed AGOA National
mere USD 35 million in 2013. This than 500 percent, from USD 8.15 one billion US dollar exports. Apart Response Strategy. In what follows, it
under-performance is something billion in 2001 to USD 53.8 billion in from the growing apparel and garment is also argued that Ethiopias overall
that should be looked in to, argues 2011. In 2015 the aggregate revenue exports, Africas manufacturing and development and efforts made in
Samuel Addis Alemayehu. rose to USD 6.502 billion from AGOA agricultural products export were overcoming key obstacles in the export
eligible countries of which AGOA quite small over the past fifteen years. sector could leapfrog Ethiopias benefit
eligible products accounted for 45 However, when one see the matter from from AGOA
percent of those exports. According the vantage point of Agriculture and
To begin with, as in many African
to International Trade Commission light manufacturing sectors growth
countries, Ethiopias challenges
(USITC), exports from African countries potential and their trickledown effect
in effectively utilizing AGOA and
to the US have more than quadrupled in changing lives of ordinary Africans,
accessing US market is mainly tied
in the stated times. In terms of job Africas failure in fully benefiting from
with supply side constraints and
creation 100,000 jobs in the US as well as AGOA is lamentable. Be that as it may,
logistical impediments. In this regard,
350,000 direct jobs and at least a million the case of Ethiopia is no different from
problems relating to infrastructure
indirect jobs in Africa were created the rest of African countries. Despite
gap, marine transport and logistics,
over the past fifteen years. Apart recent growth in its export through
hefty costs of branding of exports
from job creation, AGOA gets credit AGOA, the figures suggest that much
and absence of direct air transport
for incentivizing African countries to homework waits to make a dent in
connection had hampered exports
work towards protection of intellectual increasing its share. In 2014 Ethiopias
from Ethiopia. Stringent US market
property and human rights; combating export stood at 111 million USD, a 24
requirements in sanitary and
poverty, corruption and child labor and percent increase from the preceding
phytosanitary requirements and rules
working toward better healthcare and year.
of origin had also their own share in the
education since the above mentioned
However, the recent reauthorization underutilization of AGOA. However,
were criteria to remain AGOA eligible
AGOA for another 10 years has provided
countries.
Ethiopia and Africa yet another chance 5HDXWKRUL]DWLRQRI$*2$SDJH

VIEWPOINT

Is it time to introduce wealth


tax in Ethiopia?
A wealth tax (also called capital tax, wealth tax reintroduced in 2010 for In the economic sense, wealth tax that
equity tax, or net worth tax) is a levy four years. The tax had a rate of 1.5 decreases other tax burdens, such
Ethiopia has seen double digit
on the total value of personal assets, percent on net assets exceeding ISK as income, capital gains, sales, value
growth for over a decade with
including owner-occupied housing; 75,000,000 (the countrys currency) added, and inheritance increases the
90 percent of GDP driven by
cash, bank deposits, money funds, for individuals and ISK 100,000,000 for time for investment and can increase
agriculture and other services.
and savings in insurance and pension married couples. the return on investments over that
However, the country faces several
plans; investment in real estate and time. The increased time horizon of
constraints of which income Some other European countries who
unincorporated businesses; and investment results from the competition
inequality is one. As a remedy have discontinued this kind of tax in
corporate stock, financial securities, for investment between the risk-free
introducing wealth tax could the recent years are: Austria, Denmark
and personal trusts. Typically, asset of modern portfolio theory and
alleviate the problem to some extent, (1995), Germany (1997), Finland (2006),
liabilities (primarily mortgages and commercial assets. The higher return
argues Dawit Tadesse. Luxembourg (2006) and Sweden (2007).
other loans) are deducted, hence, on investment results from the removal
In the United Kingdom, property (real
sometimes, called a net wealth tax. In of taxes on profits.
estate) is often a persons main asset,
general, wealth tax is imposed on the
and is taxed. For example, there are In addition, removal of taxes on profits
wealth possessed by individuals in a
taxes such as the window tax of 1696, reduces the lower and the middle-class
country. The tax is on a persons net
Council Tax, and a new Mansion Tax society tax burden. By unburdening the
worth, which is assets minus liabilities.
proposed by some political parties. poor and middle-class of taxation, while
There is frequent misunderstanding stimulating investment in commercial
In India, the Wealth Tax Act of 1957 was
between wealth tax and income tax. assets that create demand for labor, and
applicable from April 1, 1957. Wealth
Wealth tax is the tax that is applicable more financial resources in the hands
tax is chargeable categories of persons
on assets or wealth of a person. Some of the poor and middle-class would
individual and company, chargeable
people are against it because we already reduce their reliance on government
one percent of net wealth. It is not
pay income tax on income earned; why delivery of social goods, such as
applicable till wealth valued Rupees
must we pay wealth tax on assets when improved educational opportunities
(Indian currency) is =/- 30 lakh.
its accrued from the same income that for their children. This would promote
was already taxed? How wealth tax is important in social mobility, which means more
stabilizing marcoeconomy and citizens reach their full potential of
For example, when we look at certain
reducing conflicts that are awakened productivity, thus improving the
countries experience, Iceland had a
because of income inequality in the
wealth tax until 2006 and a temporary ,VLWWLPHWRSDJH
society

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The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |11
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www.thereporterethiopia.com
12| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 OPINION |13
Why has our diaspora failed
to transcend?
Recently, the Ministry Of Foreign The same time China is accused of that the diaspora is wrong/right or such truth. Looking at African ethics,
Affairs announced that a nationwide being one of the most repressive the government is right/wrong. It which puts more emphasis on duties
Diaspora Day from August 12-16, 2015 regimes in the world by the West, goes beyond that; beyond right and of social wellbeing than right, is being
is scheduled to be celebrated. In that Chinese diaspora, returning from wrong, beyond true and false; beyond relativized to Western ethics but
regard, the government gave a detailed western countries, are lifting the government and politics. narrated systematically unnoticed. The
picture on how it plans to strengthen status of Chinas academics, health revolutionary vehicle of the 1960s and
ties with the Diaspora community. The writer wants to remain apolitical in
and technology. Two years ago, the UN 70s was political truth, which did little
Similarly, a lot is expected from this commentary.
Chronicle, a magazine of the United justice to the Ethiopian people, meaning
Ethiopians in the diaspora, argues Nations shared its knowledge of the Apolitical because the problem with the truth was not justice. This vehicle is
Benyam Ephrem Chinese diaspora: In the education black political discourse is, it gives the still used as a means of addressing
sector only, statistics from the Ministry speaker a false sense of doing justice national problems in the diaspora.
of Education show that 78 percent just because he or she speaks political
This is the problem with African
of the presidents, 63 percent of PhD truth. But justice is not always the
diaspora. They seem to be cursed of
advisers in Chinese universities truth; its, perhaps, a reflection of being
either singing their Lawinos song,
directly administered by the Ministry of true, a verisimilitude. The Ethiopian
which tells them to Stop despising
Education, and 72 percent of directors diaspora has put all the blame on
people Stop treating me like salt-
of key laboratories at the national and the government, ascribing to it a
less ash, Become barren of insults
provincial levels are returnees. compendium of complaints, engrossed
and stupidityalong with the big
with hatred and in the name of justice,
These returnees are now engaged in question: But who has ever uprooted
for almost two decades at the expense
helping China integrate with the world the pumpkin? or by domesticating
of the alleged withering of human lives,
in policy design and in the practice of his song; basking in the bloody fun of
the droughts and famines and other
these policies. yesterdays socialism and in the crafty
calamities. This political vertigo is
abstracts of todays human rights. One
What has happened to the already so blinding that it falsely escapes the
was preached universal yesterday and
fragmented Ethiopian diaspora abroad? illusion of time.
the other more universal today.
Why are they obsessed with the mantra
The diaspora should make it less
of human rights or freedom of speech, The dis-easment of Africa is a
personaltranscending ones political
but not transcend beyond it? Are they continuum of outlandish mimicry.
truth to a higher understanding
doing justice? It is only when one lend his ears
of cultural truth that emanates
to his own truths that he can take
The intention of this opinion is not from the perfect understanding of
notice of intellectuals like Mutua,
to sympathize or agonize with the the profound societal truth. The
diaspora, or the government for that definition of justice in the light of
matter, and not in any way imply black conscience should come from Why has our... page 30
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www.thereporterethiopia.com
14| COMMENTARY + The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

What retrenches the pace of South


Africas Long Walk to Freedom: Afro-
phobia or Afro-phone?
April 2015 was a gloom month for Africa, and the Chair of the African when South Africa was chained by the
The recent xenophobic attacks in
Africa; Africans were blown away by Union Commission, Nkosazana shackles of apartheid?
South Africa Africa has revealed
the horrific terrorism and xenophobic Dlamini-Zuma, many migrants,
that Africa has failed to go beyond This situation precipitated me to look
attacks from Libya down to South dismayed by the delayed government
the physical, economic and political at what made the youth of South Africa
Africa. It was quite telling of how intervention despite the rhetoric of
survival impulses. Many African chase away African migrants and
the continent is facing emerging African unity and integration, left the
countries and the African Union forget the continents political, military
challenges amid the ongoing tussle with country. Similar to the western world,
have not been concerned with the and financial contribution to South
the aftereffects of the dehumanizing particularly Europe, South Africa took
irreplaceable role of cultural survival Africas struggle against apartheid and
imperialist elements of slavery, the baton of the unity and integration
though education, art, languages, struggle for survival and development.
colonialism and apartheid. project through the philosophy of pan-
music and so on, argues Nurye Nelson Mandela, in his autobiography,
Africanism and African renaissance
Yassin. Blinded by the aftereffects of apartheid, Long Walk to Freedom, p.402,
and, inadvertently, ushered in
most importantly the incessant underlined how the political, military,
xenophobia in the vocabulary of
and unaltered economic and social psychological, spiritual and cultural
African politics; xenophobia which has
apartheid system, the violence dimensions of Ethiopianism had
never been witnessed in the annals of
perpetrated by many black South inspired him and his compatriots
the rest of the African continent and has
Africans ended temporarily with the in his fight against apartheid and
also been alien to the black race.
killing of seven African migrants. colonialism, stating, Although it
Appallingly, even though their cause of Afro-phobia had been conquered dozens of times,
black impoverishment was mislaid on Ethiopia was the birthplace of African
Sadly, the inability of black South
African migrants, the violence was met nationalism. He also went on to note,
Africans to look into the structure,
with meager government attention and Ethiopia has always held a special
system, and direction of their country
intervention. This gave way to many place in my own imagination and the
has paved the way for the death of
more African migrants being injured. prospect of visiting Ethiopia attracted
African migrants. This inability poses
Many of their small businesses and me more strongly than a trip to France,
one important question: What has
stores were also looted and incinerated. England and America combined. I felt
eroded the spirit, logo and hope of
Woe and sadness engulfed the streets of I would be visiting my own genesis,
the capital of Ethiopianism, African
the various cities of African countries. unearthing the roots of what made me
Renaissance and pan-Africanism
Despondency and despair took hold of an African.
hyped by the founding fathers of the
the minds and hearts of pan-Africanists
Organization of the African Unity Mesfin Woldemariam (Prof.), an
and the diaspora all over the continent.
(OAU)/African Union (AU)? What Ethiopian critic and writer, notes, A
Albeit the condemnation of the attacks has kept them from looking back at
by President Jacob Zuma of South the sacrifices fellow Africans made What retrenches... page 30

VIEWPOINT +
Ethio-Sudan growing ties paving a
way towards economic integration
The history of Ethiopia and Sudan Derg regime in 1991. In other words, nations to promote trade, investment,
exhibits age-old political, economic, the idiom the enemy of my enemy development, and infrastructure with
Ethio-Sudan economic relationship is social and cultural bond. The two is my friend became the hallmark a view to hasten economic integration.
growing in an unprecedented manner. countries destiny as one of the oldest of the relationship between the two It also strives to promote peace and
By working together and creating nations in Africa is cemented by the countries. The fact that Ethiopias stability in the sub-region that is long
stronger bonds, Ethiopian and eternal sealthe Nile Riverand the foreign policy was also underpinned known for civil strife and conflict.
Sudanese businesses, investors, and people living in both sides of the border. by ideological outlook during the The policy underpinning Ethiopias
tourists can playing a pivotal role in In other words, the Ethio-Sudan kinship Marxist-Leninist Dergs rule while its strong stance in economic integration
enhancing the bilateral relationship, goes back to the ancient civilization predecessor Haileselassies imperial and promotion of peace and stability
argues Zekariyas Talo Anjulo. of mankind, Axum and Merowe, rule was dominated by religious view springs from the view that development
marked by early contacts of trade and also contributed to the deterioration of Ethiopia is intertwined with the
movement of people. The annals of the of relations. Beating war drums and development of its neighbors. Hence,
history of Ethiopia and Sudan are also back-stabbing prevailed in those it is in Ethiopias best interest to grow
filled with stories of competition and times instead of treating each other in together and ensure the peace and
vying for power. principles of mutual benefit and a win- security of the region.
win approach.
However, despite the long history, Due this policy shift, Ethiopia and
the commonalties that beget age-old However, after the downfall of the Sudans bilateral relation has seen
bond had never yielded progress and regime, Ethiopia saw a paradigm dramatic change. Over the past decade
fraternal relations to the people of the shift in its foreign policy approach. in particular, the two sisterly nations
two nations. In the modern history in Militarism and siege-mentality driven were working together to elevate
particular, the last Solomonic Dynasty foreign relation was replaced by a their relation in bilateral, regional,
and the brutal military Derg regimes forward-looking policy that upholds a continental and international levels. In
foreign policy and strategies, which win-win approach and mutual benefit. recent years, the cooperation has taken
took Ethiopias neighbors as historic As a result, since 1991, Ethiopia has the form of increased volume of trade
enemies, failed to nurture the historic given due attention and prime focus and flow of foreign direct investment,
relation between the two nations. to engagement with its neighbor all indicating a positive movement
Worse still, the siege-mentality that countries, Africa as a continent, and towards regional integration.
sprang from the view that considers South-South cooperation in general. Technology transfer, experience
our neighbors as nemeses, forced sharing, strengthening people to people
As it stated in the current Ethiopian
the two countries into a destructive and relations, and cultural exchange
foreign and national security document,
policy of harboring and supporting the
Ethiopia places utmost consideration
others rebels until the downfall of the (WKLR6XGDQJURZLQJSDJH
to working closely with its neighboring
www.thereporterethiopia.com
OPINION + |15
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Why is IGAD putting a lot of trust in


South Sudans peace process?
The 9th of July, 2015 marks a special now emerging as a dependable regional IGAD-Led Mediation Process for South
moment in the hearts and minds of the mediation block in light of forging a Sudan was setup by IGAD Member
people of South Sudan as the four-year lasting peace and stability to the people States. Accordingly, the 23rd Extra
The failure of leaders and politicians anniversary of the short-lived euphoria of South Sudan. Ordinary Summit of the IGAD Heads
of both camps in the Sudan Peoples and unfolding despair since South of State and Government, which was
IGADs mission
Liberation Movement (SPLM) to Sudan was declared the 193rd Member held in Kenyas capital on the 27th of
take the courage and the will to State of the United Nations. Back then, IGADD, the Intergovernmental December 2013, appointed three special
think farther have led the worlds the people of South Sudan, in particular, Authority on Drought and Development envoys, each drawn from Ethiopia,
newest nation, South Sudan, in to its neighbors in the Horn of Africa, as was first established in 1986 by the Kenya and Sudan.
a stalemate, argues Mekonnen well as the international community then drought-stricken six countries
More importantly, the IGAD-led
Amare. had high hopes that the newly born and in the sub region (Djibouti, Ethiopia,
Mediation for the peace process in
oil rich country would soon overcome Kenya, Somalia, Sudan and Uganda,
South Sudan has expanded into IGAD-
its two decades of war. as well as Eritrea, which joined the
plus to include other African countries
block later in September 1993) with the
Although the much needed and countries outside the continent.
mandate of coordinating the efforts of
independence came to fruition, the IGAD-plus now encompasses the
member states to combat drought and
Sudan Peoples Liberation Movement African Union, the United Nations,
desertification. As a key milestone
(SPLM) wrongheadedly began a South Africa, Nigeria, Algeria, Chad,
in the evolution of its mandates
pointless war and violence, thereby Rwanda and Troika Countries (USA,
throughout the years, IGAD superseded
tossing the nation into harms way UK, and Norway).
IGADD in 1996 and revitalized the
and betraying the peoples hopes and
regional block and the expanded its In all these junctures, the IGAD peace
aspirations for freedom, democracy
mandate to a more enhanced and far- block has been receiving political,
and prosperity. Now that the odds of
reaching goals than the original limited technical and financial support from
a sustained war and a raging violence
focus on drought and desertification. a wide spectrum of development
seem high, the prospect of ceasefire
Concurrently, IGAD was mandated partner-countries and both regional
in the short-term and the possibility
on other priority areas, which include and international organizations,
of a lasting peace and stability in the
peace and security, infrastructural which, among others, include the
long-term sound inconceivable. Ever
development and food security, and the African Union, the United Nations,
since the civil war started in December
environment. As the premier regional the European Union, IGAD Partners
2013, a series of peace processes have
economic block in the Horn of Africa, Forum (IPF), the Troika (Norway, UK
been tacked on bringing a negotiated
IGAD is, thus, tasked with achieving and USA), China, Australia, Denmark,
political settlement to South Sudan,
peace, prosperity and regional Sweden, the Netherlands and Turkey
although, many of the peace efforts
integration among countries in the sub and many more others.
so far have only rendered a cheap
region.
bogus claim. Amid crunches here and Looking into how the regional block
there, however, the Inter-Government In response to the raging war and the
Authority on Development (IGAD) is ongoing crisis in South Sudan, the :K\LV,*$'SDJH
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REQUEST FOR PROPOSAL- (RFPS&L-20159119860)


Topic: Drilling of Three Boreholes near Dobi and Bure towns in boreholes in Afar, Somali and lowlands of Oromia in areas that are
Elidar Woreda, of Afar Region, under the Joint Action Plan. affected with chronic water insecurity.
Background More details of the requirements for this bid can be found in the
RFP.
Afar Regional State is one of the emerging regions in Ethiopia
commonly affected with chronic water insecurity and supported Objectives. The objective of these works is to support the effort
with recurrent water trucking. The Joint Action Plan was initiated of the government of Afar in reducing chronic water insecurity in
by the Water Resource Development Bureau of Afar Region to areas affected by recurrent droughts and being supported by only
coordinate all Water Supply Intervention by all partners working a water trucking intervention which is a volatile business and has
in Afar region with objective of reducing chronic water insecurity no trace on the lives and livelihood of pastoralists.
by 50% by the end of 2015.
Given the complexity of geology and hydro-geology of Afar Interested and eligible bidders (all legal documents and renewed
region, UNICEF partnered with UNESCO and conducted a detail licenses must be submitted) are invited to collect the complete
groundwater investigations in two priority woredas in Afar, Elidar tender documents by sending an email to Ms. Mekdes Woudneh
and Erupti. This was done through using different groundwater (mwoudneh@unicef.org) or Mr. Deresse Damte (ddamte@unicef.
exploration techniques i.e. geophysics, remote sensing, radar org). Starting on Monday 13-July-2015. Proposals are to be
technology, geology and hydro-geology. Thus, potential aquifers submitted to UNICEF Ethiopia Ofce on or before 9.00 am (East
has been identied for test well drilling. The study, recommended African Time) 29- July- 2015 (Wednesday). Please quote the RFP
the potential drilling site (Bure 500 meter and Dobi 150meter). nr. 9119860 in all your correspondences. Due to the nature of the bid,
Detail report including GPS locations of site is available for Bure there will be no bid public opening for this offer. UNICEF reserves
and Dobi drilling sites. the right to accept or reject part or all of any or all bids. ADDRESS:
Therefore, UNICEF would like to drill test boreholes in Bure, and UNICEF Ethiopia, UNECA Compound, NOF Building, 2rd oor
Dobi sites in Elidar Woreda of Afar region and would like to sign a Supply Section, Attn. Ms. Mekdes Woudneh, P.O.BOX 1169, TEL:
Long Term Agreement (LTA) with potential drillers willing to drill +251-11 518 4035/ 4167, Addis Ababa, Ethiopia.

www.thereporterethiopia.com
16| LIVING & THE ARTS The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Interracial marriage
occurs when two people
of differing racial groups
marry. Accrding to
historical records, in the
Western world certain
jurisdictions have had
regulations banning or
restricting interracial
marriage in the past,
Appraising interracial wedlock
including Germany Chuchu Girma (name changed), 30, God and my family who changed their societys impenetrable manner.
during the Nazi period, has had a sour struggle to overcome
the hardship that resulted from her
minds to see me again, she says.
Since the country has long isolated
Nevertheless the psychological trauma itself from invaders and foreigners,
South Africa under marrying a foreigner. She met him
she suffered from being rejected by her the deep rooted indigenous cultures
at Addis Ababa University five years
apartheid, and many ago when he bumped into her while foreign fianc will never be healed, as
well as the fact that many of her friends
enormously shape the psychology, he
states.
he came to the university for an
states in the United internship. Since Chuchu was studying and family members misunderstood
Nevertheless, this might not be a proper
English Language and Literature at the her.
States prior to a 1967 University, the friendship she made Almost everyone thought I was
argument in the current time when the
country is open to all, irrespective of
Supreme Court decision. with the British guy was fortuitous, at
least for the moment.
infatuated with him and was only
looking for money, Chuchu says,
race. As a result, interracial dating or
marriage may not be something of a big
In Ethiopia interracial I never thought I would be having a explaining the misconception people deal, Estifanos explains.
had towards her relationship with the
marriage is also taking relationship with him until he asked
me to hangout, she says. We did it foreign husband. Perhaps because the majority of the
population has long perceived marrying
place and there are those enough times that a special relationship That, indeed, was the reason they had a foreigner as money making,
developed. chosen not to help her out from the the societys reaction to interracial
who oppose the union A year after the inception of their aftermath of her breakup. She quit her marriage might remain unchanged. The
study, left home and served as a maid to patriarchal view of women as dependent
while others say it is love relationship, her foreign boyfriend,
whose child she gave birth to after raise her baby boy. on their spouses might have caused
at the end of the day, their unregistered marriage, left for The most painful thing I experienced
this money making status. However,
many repudiate this reasoning due to
his country. Despite his promise that was when some of my close friends who
writes Henok Reta. he would make his marriage legal as witnessed our relationship claimed I did
the growing number of Ethiopian men
dating foreign woman.
soon as he returned, he kept silent for a it deliberately for the wild excitement,
month. she says. It has always been a rude and
I emailed him so many times and uncivilized approach to conclude that
For many Ethiopians, interracial having a foreign spouse, especially
called him at the number he left, dating is a strange experience, though
but it turned out to be [a deliberate a white one, is for money, Dawit
many have been practicing it openly. Gebrekidan, a bridegroom says.
rejection], Chuchu says. Since many years ago, Ethiopians have
Despite the unbearable hardship been marrying foreigners; politicians, He married a Dutch woman a month
of raising her child alone, she has artists, singers, sports-personalities ago. He assures that only love can
now managed to embark on another have been marrying foreigners. bring couples together in marriage. In
relationship. But this time she is with Despite the universal image interracial an attempt to help cultures connect,
an Ethiopian partner who is also relationships has Ethiopians have their he brought his wedding party home.
supporting her in starting her own own understanding of the concept. According to him, bringing the wedding
small business. According to psychologist Estifanos to Ethiopia resulted from a common
Abera, the contrasting image interracial interest between him and his spouse
My life has been redeemed thanks to marriage bears in Ethiopia is due to the who was keen on discovering a new

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
015
LIVING & THE ARTS|17

culture outside the Netherlands. to interracial relationships. Both men


and women of Ethiopian nationality can
Dawit, who earnestly insists that the
easily keep in touch with their foreign
negative attitude towards interracial
marriage is weak, feels the time ahead partners.
will see it as something that clashes I live in the 21st century. Why should
with human rights. He further states I worry about it? Abiy Getachew, 29,
that his international marital status has
asks.
helped him experience what he calls a
captivating difference with the people Since he is in love with his German
he had lived with for more than seven girlfriend, he freely calls her to ask her
yearsthe Dutch. to join him wherever he goes.
Now, its my turn to show off, he says. Im not sure yet, but hopefully we are
He explains the importance of having a getting married soon, he says.
wedding party in both cultures. Unlike
him and few others, many Ethiopians In fact, Abiy is not the only one in this
marrying foreigners (fernejis) position. There are many young men in
rarely have a party in Ethiopia. The relationships with foreign women and
reason behind this, which is quite who share the social backlash. Even
problematic, is due to some fearing the though more young men are said to be
dissatisfaction of parents and relatives, in interracial relationship for unseemly
making the prospect of a wedding reasons, particularly in tourist

Almost
aboard would be the easier option. attraction sights, It is unwise to judge
I know some friends who had a them as opportunistic at all. According
wedding party abroad when they were to tour chauffeur Samuel Terefe,

everyone
able to do it here, Dawit said, pointing hundreds of young men who opted to
out the reason people steer away from do his line of work might be trying
hosting a party at home is nothing but to take advantage of the various
lack of confidence.
thought
visitors and marry a foreigner
To the contrary, Chuhcu, who for a better life, but it does
would have celebrated her not mean all who do it

I was
wedding at home had she have the same goals.
not been betrayed by her
fianc, doesnt believe Several websites and
there is a lack of the media have long
confidence with the
youth.
been advertised
Ethiopias
charming beauty
infatuated
Look at those
young ladies who
walk in the streets
holding hands
and foreigners
have their
vacations,
with
with their foreign
counterparts. How
many of them
tours and
business
travels in the
him and
was only
show a sense of country, now
hesitation? Do you more than
think they would ever, opening
feel ashamed of

looking for
the door to a
having a wedding relationship
party then? she
that might
asks.

money,
result in dating
In fact, there is or marriage.
nothing to feel Assessing
ashamed about since the impact of
a number of prominent globalization and
individual were in
interracial interaction,
interracial relationships
and marriages before. Chuchu, some nationalists warn
in this regard, mentions her that it would infulence
inspirational woman, Azeb Worku culture and Ethiopian values
who is married to a French man. the end. When some would
Actress, playwright, and theatrical make it a lasting relationship with
director, Azeb is believed to have foreigners, many would find it a state of
been an inspirational idol for those solitude and subjugation resulting from
women who have relationships with language barriers, exotic traits and,
foreigners. In fact, several other sometimes, cultural differences.
prominent men in Ethiopia have also
been married to foreign women. Former I have encountered some cultural
President Negasso Giddada (PhD) differences several times at the places
married a German woman and Tewolde where I hang out with friends, says
Gebregziabher (PhD), prominent Seyoum Zeleke, an engineer-in-training.
researcher and conservationist,
married a woman from the UK. Having experienced a couple of
those incidents, which he refers to
For many, these individuals can serve
as cultural differences, he has
as role models for young Ethiopians
who might feel a burden. However, the now begun changing his mind that
assumption of this burden could turn interracial dating is unacceptable.
out to be inconsistent, especially when Despite the growing trend of interracial
one visits the nightclubs and hotels in dating and marriage in Addis Ababa,
Addis these days. Undoubtedly, it marks there are some commentators who say
the conclusion of the era of societal that it is something slowly creeping in
influence or cultural burden in regards the Ethiopian way of life.
www.thereporterethiopia.com
18| SOCIETY The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Overcoming acute food insecurity


in Eastern Africa

President Mulatu Teshome (PhD)


By Henok Reta to be featuring a brand entitlement most populous nation in the region,
that reads, Africa Food Security has gone through various dependable
Last Wednesday, Yahoo News reported Prospects Brighter Than Ever. That measures over the past decade to deal
that scientists have found a gene that motivated Allahoury A. Diallo, FAO with its historic rival-famine-while
could make it easier to feed more than representative in Ethiopia, to call upon other countries in the region also took
half of the worlds population. The the organizers to rewrite the logo of a huge step in reframing policies and
scientists said that the new mutations the conference from Food Insecurity strategies. This success story that
could lead to longer and better quality in Africa to Food Security in Africa resonated from FAOs recognition
rice production to feed more than during his speech. for halving the proportion of hungry
3.5 billion people across the world. people across the continent, fulfilling a
In fact, he might have been right, at
This report came just a day after the Millennium Development Goals (MDGs)
least for the reason that the region has
United Nations Food and Agriculture target, could have ignited aspirations
begun applying several policies and
Organization (FAO) officially launched to take on the remaining loopholes.
strategies to cope with the infamous
the 2015 State of Food Insecurity (SOFI) However, pundits state that it doesnt
drought and food deficits of the past
report in Addis Ababa for the Africa seem to be an easy task to effectively
decades. For instance, Ethiopia, the
region. Overall, the report appeared carry out unless more political will

ENTERTAINMENT IN BRIEF
Celebrated Ethiopian chef raises funds to Music therapy, body movement for
build a career of students at risk people living with Parkinson
A renowned Ethiopian Chef based in New York City, Marcus Sameulsson, Selam Ethiopia will host a workshop on music therapy and body movement for
launched a fundraising campaign for the 25th anniversary of Careers people suffering from Parkinson for three days starting Tuesday July 13, 2015 at
Through Culinary Program (C-CAP). its studio located off Haile Gebreselassie Street.
Sameulssson, who himself took the first step of his world class culinary According to Samson Haileyesus, communications and marketing coordinator
career by training in a local culinary school in Sweden a couple of decades at Selam Ethiopia, the goal of the workshop is to inspire people suffering from
ago, said that he has never forgot it in his towering career right this time Parkinson through activities that could help their body and spirit revitalized.
around.
In the opening day, a speech will be delivered to make people aware of Parkinson
And he stated that the best way to remember this has to be helping the and how to cope with it when having no one around.
youth at risk build their career in culinary. So far he managed to secure
Rami Siam, an expert of music therapy and movement will coach the
USD 11 thousand to fulfill a target amount of USD 25 thousand.
participants how to manage the training to get the best out of it.
In return to the donation, he will deliver two most generous donors a
Parkinson has been one of the non communicable diseases which are less
package that includes round trip to Berumda while other prizes, dinner at
familiar with the majority of Ethiopians for a long time but an association
his new Marcus restaurant, a signed copy of his new book, and Ambessa tea
for the patients of Parkinson was established some five years ago to create
gift set are included.
awareness and support the patients.
Marcus Joar Samuelsson, 45, is an Ethiopian-born, Swedish-raised chef
and restaurateur.

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |19

Wondirad Mandefro, State Minister of Agriculture


and determination is provided to do vulnerable population, policies on food countries in Africa that has curbed the Insecurity in Eastern Oromiya Regions
the same with the World Food Summit security and nutrition supporting the number of its hungry people and for Peasant Association, indicated that
(WFS)s target in which most of the development goals and transforming developing several initiatives to foster food insecurity, for many of households
developing world lags behind. the agriculture sector. Nevertheless, its policies and strategies. in the region, was found to be a result
it will barely yield fruit unless the of farmland size and ownership,
Apparently, the undeniable facts related We embarked on the frontline
country strives to ease food insecurity household size, oxen ownership,
to food insecurity across the continent to allocate 10 percent of the
stresses in the north-east regions. and fertilizer use. The results of the
sway the continent as much as the national budget put by the CAADP
Moreover, some crisis in the east relationship between food security and
success stories. According to several [Comprehensive Africa Agricultural
and west provinces should be solved determinants of food security resulted
scientific sources, climate change, Development Program] framework,
to fully achieve food security and in, out of the 108 observed households
corruption and political instability, Wondirad Mandefro, State Minister
poverty eradication, according to the in the sample, 29 households found to
conflicts, rapid population growth, and of Agriculture, said. According to
recommendation and data published in be food secured (26.9 percent) while 79
lack of emergency plans when facing him, Ethiopia leads by 15 percent in
the report. (73.1 percent) were found food insecure.
crisis are major set-backs within the the national budget allocated to its
continent. Harvest Help UK described The regional overview of food agriculture amongst the member states. The research cant exactly showcase
the facts mentioned above in 2013 as insecurity in Africa in 2015 highlighted the current reality as it is dated ten
For many, however, the growing years. However, many believe the hard
the most significant contributors to the food security outlook in the region
demand for food, particularly in facts included in the study have not
food crisis in Africa over the past 30 as near-term (April-June 2015). It
cities, has put a great strain on the been changed after the reforms and
years. It emphasizes several key issues describes the minimal, the stressed,
government. Commentators, who initiatives with the policies.
that have to be taken into account for and potential causes of food insecurity
want to remain anonymous, said that
the developing world despite the UNs in parts of the region. While Uganda Thus, the commentators recommend,
construction boom in cities often
declaration that the severest food crisis remains in the most minimal phase enacting the new policies and
attracts peasants to leave their low
and famine was over in 2012. of acute food insecurity in the region, initiatives should always be intended
yielding small plots in search of a
South Sudan remains in the most to aim to avoid the hurdles that famers
With regard to his governments better life. Moreover, the land policy
stressed phase of acute food insecurity.
position in dealing with the matter, that ultimately puts aside farmers and and producers go through. And this
Parts of South Sudan and Yemen also
President Mulatu Teshome (PhD), their farmlands might have impacted will indeed make famine and drought
feature famine and emergency states
said that Ethiopias achievement of the their productivity, in addition to history, behind all the economic
due to the ongoing unrest and conflict.
MDGs has been built on a three-fold various hurdles related to weather progress and prosperity the country is
approach: social programs, aiming Undoubtedly, Ethiopia has come a long and fertilization. Haile Z.G. Alemu, in making along with its neighbors in the
at providing immediate relief to way to be recognized as one of the dozen his research entitled, Causes of Food region.

Teddy Afro and Gossaye Tesfaye concerts Ethiopian Sport and Culture Festival to
in DC cancelled kick off in Frankfurt
Tewodros Kassahun a.k.a. Teddy Afro and Gossaye Tesfaye, arguably two The Ethiopian Sport and Culture Festival (ESCF) is scheduled to take
of the most prominent Ethiopian pop singers, were unable to process VISA place in Frankfurt, Germany from July 15 to 18, 2015.
to the US for concerts on the sidelines of Ethiopian communities annual
football tournament being held in Maryland, Washington DC. ESCF was founded in 2002 and this years festival will be the thirteenth
edition. A total of 28 teams representing 10 European countries will take
As a result, the Ethiopian Sports Federation in North America (ESFNA), part in this years tournament. The teams are drawn in two groups with
organizers of the tournament, announced the cancellation of their concerts. 16 teams in Division I and 12 teams in Division II.
ESFNA entertainment and football tournament has been a major event for The ESCF has been active in Europe organizing similar activities
the Ethiopian Diaspora across the United States which also features big in major European cities with an intent and purpose of bringing all
concerts by prominent singers along with rising talents. Ethiopians and Ethiopian origin together under one common sporting
The reason for the failure to clear travel problems has not been disclosed. activity, festivals and cultural celebrations.
ESFNA said the unhappy incident was beyond its control, and tickets sold And through the pursuit of sports to promote a sense of one Ethiopian
for the performances would be refunded. family and diverse cultural reconnection, the organizers say. The festival
This years ESFNA tournament has been taking place since June 28 is acclaimed to be the biggest next to the Ethiopian Sports and Culture
and will continue to remain until the end of the week with various Festivals in North America.
entertainment festivals planned. This has been the 32nd tournament since Organizers are planning to feature Tewdros Kassahun a.k.a. Teddy Afro
its inception in 1984. on the closing day.

www.thereporterethiopia.com
20| LETTER TO THE EDITOR The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Subduing Eritreas rogue behavior


Dear Editor, on the border ruling was delivered contempt for the accepted norms of old tune of One Ethiopia, an Ethiopia
in 2002, Ethiopia has consistently international relations. The blindness which would actually include Eritrea
Prime Minister Hailemariam Desalegn,
extended an olive branch to Eritrea, of Asmara to the realities of the life it again!
responding to MPs questions this
persistently calling for comprehensive has imposed on Eritreans was exposed
week, covered a wide range of issues The delusions of the regime become
negotiations on the basis of its Five - in its response to the UN Human Rights
including the economy and foreign clearer the deeper one goes into looking
Point Peace Plan of 2004. Ethiopias Enquiry in which it criticized the
policy and relations with neighbors. at the relationships of these bandit
offer for a dialogue was based on the report as an attempt to denigrate its
He underlined the reaffirmation of groups with the regime in Eritrea.
intrinsic desire to iron out differences sovereignty. Looking at the frightening
Ethiopias principled stance over During the past decade, Eritrean
and lay the ground for a sustainable and catalogue of human rights abuses
regional peace and resolving problems security operatives have incarcerated
durable peace. The stalemate, however, identified in the report, all these, it
through dialogue. He highlighted many of the rebel leaders of groups such
continues as Eritrea has remained looks as though Eritrea is shadow -
Ethiopias single most important as Arebengoch Ginbar and the OLF.
bitterly opposed to any dialogue. Its boxing with invisible satanic forces.
and valued foreign policy objective: Eritrea has repeatedly manipulated and
intransigence has been described as an No sane government would present a
ensuring a peaceful and stable region divided these groups, changing their
allergy to persuasion, as Sally Healy, minor border dispute as justification for
and realizing the achievement of leaders and controlling their activities.
a researcher in the Horn Affairs has upholding an atrocious reign of terror.
cooperation and partnership to lead to It speaks volumes about the behavior
described it. Such an approach suggests the mind
economic integration. This, he said, of the regime whose support for such
was the sine qua non for the realization Indeed, Eritreas foreign policy is often of a man troubled with dark forces,
suffering from severe paranoia and Ethiopia rebels is no more than a mere
of development in the fullest sense of described as bizarre; and it certainly
losing touch with reality. puppet show driven by a frustration to
the term. He hailed Ethiopias growing remains an enigma even to those who
see Ethiopia destabilized. It is a far cry
ties with its neighbors as a very clear have closely studied the regime. Given Such delusions are also apparent more from any meticulous design to nurture
indication of the success of Ethiopias its relentless efforts at destabilization, generally in Eritreas external relations. a potent independent rebel force that
foreign policy. There was, however, it is clear that one central element Its schizophrenic behavior is apparent has a vision, a program or an effective
one exception: Eritrea, a pariah state over the past decade is the lack of in the leaderships frenzy of lawlessness organization. In other words, the
led by a rogue regime hell-bent on the word peace in its vocabulary. adventurism that has turned this small,
destabilizing both Ethiopia and indeed whole faade of arming rebels is part
This certainly raises the question as youthful nation into no more than a
the whole region. to what the purpose behind Eritreas of President Isayas self-delusions. He
military garrison. The insanity of the has no interest to see an independent
continued efforts to pick fights with all Government is vividly manifested in
Despite this, Prime Minister Ethiopian rebel force, only to create
its neighbors and use aggression as a its attempts for the acculturation of
Hailemariam repeated what Ethiopia forces that can be moved with strings
basic element of foreign policy is. What militarism through endless recruitment
has been saying ever since the end of like a puppet show behind the curtains.
underlies the regimes assumption of a of the youth into an endless saga
the two-year border war instigated by
delusion of permanent victimhood? It is of national service. The barrage of Despite this involvement with
Eritrea in May 1998: that it was ready
a subject that requires investigation. propaganda celebrating a (false) image Ethiopian groups, the checking of
to resolve any differences through
dialogue and round table discussions. A central element of Eritreas of a mighty Eritrea standing up against Eritreas delusions and bringing it to
It is an unequivocal testament to behavior appears, for example, to be the CIA, the US and any and all other its senses is for Eritreans and Eritreans
Ethiopias position that it is ready to its determination, irrespective if any powers, evokes sad memories of the alone. As Prime Minister Hailemariam
go the extra distance for the sake of evidence in support, to defend itself catastrophic adventurism of the evil said, Ethiopia will only be forced to
bringing enduring peace between the from a purely imaginary invasion from axis powers during the Second World define and defend its sovereignty if
two countries. The Prime Minister Ethiopia. The Governments standard War. Eritreas worship of the power of Eritreas frenzied jaywalking crosses
described the destabilization attempts of response to any problem that surfaces the gun is pure cult of the voodoo, and into Ethiopia. If that happens, then
the regime in Asmara as a futile attempt in Eritrea is that this is necessary in is producing a culture of militarism, Ethiopia would need to take action
to externalize its internal problems. order to defend Eritrea from a possible arrogance and adventurism. to check Eritreas head-on collision
These have led to the hemorrhaging of invasion from Ethiopia. Be it an The love of the gun, and its reckless with reality. To call Eritreas internal
the nation with hundreds of thousands economic problem, the endless national adventurism, has led Eritrea to spend and foreign policies as no more than
of Eritreans reluctantly fleeing their service, the lack of a constitution or its meager resources to organize and misguided is a real understatement.
beloved nation to escape apparently of any democratic development, the arm a feeble patchwork of Ethiopian It is far more a chronic sickness born
endless repression and human rights ready-made answer is hey! We are rebels. Blind with its hegemonic of faking reality, and a masquerade
violations at home. He emphasized facing imminent invasion. The whole aspirations, constructed on visions of of perpetuated militarism and wild
that Ethiopias policy towards Eritrean faade of this delusion is terrifyingly military might, Eritrea has never even adventurism. Fifteen of the black
refuges is imbued with a sense of reminiscent of Orwells 1984 in real propaganda of defending a nation from
bothered to consider whether these
brotherhood. Ethiopia was, he said, life. The delusion of war and the siege imminent invasion have long been
forces might have any commonality of
prepared to support Eritrean refugees mentality that Big Brother aims to proven to be a lie. Prime Minister
interest with Eritrea, or what might
as well as those from other neighboring perpetuate are augmenting the isolation Hailemariams statement is just
happen if these groups, by any stroke
countries in trouble. His comments of the nation by the day. Thousands are another piece of evidence to lay this
of magic, managed to usurp power
reflected deep sadness over the dying as sacrificial lambs as a result of mirage bare. Eritrean propaganda
through the barrel of the gun. Eritreas
appalling situation the Eritrean regime this delusion of defending the nation is a cacophony of delusions echoing
regime, which prides itself as the
attempts to perpetuate. from a belligerent Ethiopia. This a purposeless foreign policy, an
guru of armed struggle, never seems
is being conducted under the slavery amateurish placebo aimed to uphold the
His statement, in fact, was a plea for to have given any thought whether
imposed upon them in the guise of regimes hallucinations, and a ruse to
peace with the additional caution this patchwork of desperadoes is
national service. allow its leader to continue to exercise
that if Ethiopia is forced to defend worth supporting. It never seems to
itself, it would only be as an exercise The delusion that the Eritrean have bothered to find out that some his iron grip on power.
in self-defense - forced to defend its Government suffers from has like the OLF or ONLF are apparently
Kidane Amdemariam
sovereignty. Ever since the Ethio- transformed itself into an entity fighting for secession while the likes of
Eritrean Border Commissions decision synonymous with lawlessness and Arebengoch Ginbar are harping on the Addis Ababa

Rethinking growth
Dear Editor, sector share due to an ever increasing But it is not a guarantee in uncertain share and cash efficiency all steam
completion is the core of the need to economies. The 21st century requires out from giving value to customers,
After spending their careers in a single
increase market share. And it is always us to rethink growth from every having an effective business process
minded pursuit of growth, business
viewed from the vantage point of dimension of business. We should and integrating ICT and human asset
leaders have to adjust their mentality.
profitability and cash efficiency. This gain market share without consuming development. In that regard, it is a very
Some CEOs, are telling their people
concept of growth allows companies disproportionate amount of net cash in crucial to rethink growth by giving a
that they should go for market share
to maintain their strategic position as the form of more inventory, extended special attention to valuing customers.
against competitors by focusing on a
long as they settle their short-term and duration of account receivable and so
single portfolio whose condition could Asseged Gebremedhin
long-term obligations and distribute on. If so, it is a null and void strategy
be unraveling. However, 20th century
dividends from the net cash income that will gradually close the business. If EMBA, BA Accounting, BA Marketing,
business performances indicate that
they generate. It is a plus to the capital. the strategy fails, we cannot maintain CII Insurance
new ways ought to be employed.
customer satisfaction and the business
Adequacy of capital for any business Manager Retain Business
In all sector of business with in an would not survive.
through effective strategy may help
economy, moving to enhance the Ethiopian Insurance Corporation
companies exist in a certain economy. Profitability, increasing market

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |21

www.thereporterethiopia.com
22| INTERVIEW The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Zemedeneh Negatu is the Managing Partner of Ernst & Young in Ethiopia and Head of
Transaction Advisory Services. He has a wide variety of clientle including prominent
investors from Africa and the Middle East. Here in Ethiopia, he was instrumental
behind the acquisition of Meta Brewery by Diageo and Ethiopian Airlines development
roadmap 9ision 2025. He has extensive global experience advising clients in nancial
services, manufacturing, telecoms and airlines. Asrat Seyoum of The Reporter sat down
with Zemedeneh for an interview on the performance of the GTP I, the renewed focus
on manufacturing in GTP II and the need to establish formal equity markets in Ethiopia.
Excerpts:

Advocating
transformation
The Reporter: What is your been circulating and being discussed
independent assessment of the first by the public is also focused on the
Growth and Transformation Plan? manufacturing sector. Secondly,
What has it achieved? it is the continuous focus on huge
investment in infrastructure. GTP I
Zemedeneh Negatu: First of all the
has done a very good job and I think
announcement of GTP 1 was timely.
GTP II will continue on that. For
It gave the country a very focused but
Ethiopia to sustain double-digit GDP
a very determined view of where it
growth, it has to continue to invest
should be over the next five, ten, fifteen
in infrastructure. And the linkage of
years. As a starting point, I think it was
all that is the significant ramp up of
a strong determination by Ethiopia to
exports. I think this is very critical for
create this environment that says we
Ethiopia. If we look at the examples of
can grow faster; we can achieve big
the Asian economies, China and South
things than we have done in the past.
Korea in particular, they developed on
And it gave it a structured framework.
the back of a manufacturing especially
In terms of what it has achieved, by
for exports. This is the same thing in
and large it has achieved a lot. Not
Malaysia and a lot of Asian countries.
everything, obviously. But I think that
For me, and also I think this would
was anticipated, in my view, from the
be anticipated in GTP II, the focus
beginning that we probably would not
on manufacturing and continuous
achieve 100 percent. No one in the world
investment in infrastructure would
achieves 100 percent especially when
eventually help enhance Ethiopias
you look five years down the road.
competitiveness and export capabilities.
But by and large, if you look at the big
These are sort of linked activities and
infrastructural targets that were set, I
I think that is what is going to happen
think a lot of them are either achieved,
in GTP II. Now, what would I like to see
on track or will be achieved soon.
in GTP II? Capital markets, definitely.
Because the GTP gave it a framework,
More specifically, I mean a stock
we now have some measurement tools
market. An organized capital market is
to see what we have set five years ago
absolutely essential for Ethiopia.
and what we have achieved. Where
the GTP target and what was achieved We will come to that later on. You
may not have reached equilibrium is have said GTP II should focus on
probably in manufacturing and exports. manufacturing and policymakers
I think manufacturing in the next are also saying that manufacturing
GTP will achieve its goals. Export still will be the focus. But from the draft
needs a lot of work. Export is linked plan and public discussions there
to manufacturing and its difficult to appears to be nothing inherently
grow exports very significantly if you different from GTP I.
are primarily exporting commodities.
Remember, GTP I was a very good
We have to add value. If you look at
policy document which addressed all
the Asian tigers how they developed,
the key elements that Ethiopia needs
it is in the back of manufacturing and
to address. What GTP II, in my view,
value added exports. We need to keep
should do is enhance what was planned
in mind that that manufacturing also
in GTP I. These are five year plans and
includes agro-processing. Where GTP
rolled out in increments. GTP I, even
II, hopefully, will pick up where GTP I
though it has achieved a lot is a work
left off in terms of achievements, I think
in progress. That means GTP II will
very significant achievements will be in
pick up on that and continue with a
manufacturing and export.
shift in emphasis to manufacturing. It
What do you think needs is not to discard what was done in GTP
consideration when planning GTP I but pick up from there. It is like a
II? What are the loopholes should relay team. One will hand over to two.
the next GTP address? Where there are things that have not
Photo By: Reporter/ Nahom Tesfaye

been completed in one will be completed


My expectation on what GTP II
in two but will be enhanced. I have
will focus on is definitely what I
not seen the full GTP II document yet
call migration to industrialization.
other than what has been circulated in
Very significant migration to
public. To me the key focus for GTP II
industrialization. What it essentially
will have to be manufacturing. The rest
means is that, the Ethiopian economy,
is the continuation of GTP I which is
which is still heavily reliant on
infrastructure.
agriculture would start to migrate to
manufacturing. The draft that had GTP I was supposed to bring about

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 INTERVIEW |23
structural transformation. Would occurred under the GTP I and I think it based economy. We need to understand
you characterize the last five years will accelerate in GTP II. that it is a gradual shift. That is why
as transformative? we need GTP II to reemphasize the
The shift to the non-tradable service
shift. However, service is a critical
Absolutely! Had we not had GTP I, sector is the elephant in the room no
component of any economy in the
Ethiopia could not have sustained 10 one seems to be talking about. The
world. We need to appreciate and
percent plus GDP growth. GTP I gave services sector now accounts for 45
give value to the service industry.
Ethiopia focus and determination. percent of the GDP. As a result some
Professional services like ours, trading,
This very high level of achievements say that the transformation of the
importers, exporters and all the other
of economic growth can be done if Ethiopian economy has gone to the
services are part of the dynamics that
structured the right way and give wrong direction instead of migrating
makes an economy vibrant. I do not
focus to certain priorities. One of the to industrialization. What is your
want to cast any negative view of the
priorities was the continued investment view on this?
service industry. In very advanced
on infrastructure. Could we have the
We cannot expect everything to be economies like the US, the service
Renaissance Dam which was started
transformed completely in a span of five industry accounts for about 75 percent
during GTP I? It is a massive project.
Could we have done it without an
overarching framework? May be or
maybe not. But I think it is more likely
than not that GTP I gave it framework
and it gave it the linkages it needed to
the rest of the economy. In my view,
the achievements have been very
encouraging. As I said earlier, there are
some things we have not achieved in
particular the export targets. I am sure
even the government will acknowledge
what was achieved in terms of the
export is not what was set.
Why do you think the
manufacturing sector could not
deliver on its production and export
targets in GTP I? I think the
I think the ramp up phase took longer.
For example if you look at the industrial
ramp up phase
parks, they started coming on line in
full force in the last two years. Had took longer.
we had the infrastructural base for
industrial parks say five years ago, For example if
we probably would have them by
now. Secondly, the competitiveness of you look at the
Ethiopia is still at a low level. These
things take time. To be honest, five
years is a very short period of time. In
industrial parks,
exports, you are competing globally.
And Ethiopia is at a low end in terms of
they started
competitiveness if you look at the World
Economic Forums competitiveness
coming on line in
index. Thirdly, we are still by in large
commodity exporters where we are full force in the
totally dependent on prices determined
somewhere else in the world and we last two years.
have no control over. Some years we
are lucky when coffee prices go up and Had we had the
within that five years period there were
years where coffee prices were down
substantially. This had an impact. And
infrastructural
that is one of the reason that we need
to migrate to value addition as opposed
base for industrial
to exporting commodities. Coffee and
sesame seeds are very good examples. parks say ve
If we can add value to coffee, if we can
process sesame before it is exported years ago, we
as raw, then we will have leverage
on how much we can export and how probably would
much earnings we can get. In GTP II,
my expectation is that there will be a
dramatic change. We will not just be
have them by now.
exporting commodities. Where Ethiopia
has done well in GTP I in terms of
hard currency export earnings is in
the services area. I do not know how
many people know this but Ethiopias
single largest source of export earnings
is aviation. Aviation brings in about
five times what coffee export brings.
In 2012/13 Ethiopia brought in USD 3.2
billion from aviation services. Coffee
export was about USD 750 million.
years. This economy has either been of the economy. If you look at the
It actually shows you that there is
agriculture or service dependent. What emerging economies of China and South
a shift taking place in the economy.
is starting to happen is a shift from Korea, the manufacturing industry
Even though Ethiopia is described
basic agriculture to agro-processing; takes the bulk of the economy. In
as a commodity exporting country, it
from a service and trade dominated Ethiopia also the shift is taking place
actually is a misnomer. Ethiopia is a
economy to manufacturing. But that but it is a gradual process. It cannot be
very large service exporting country
takes time. If you look at China, it completed within the GTP I five years
on the back of aviation especially the
took them 30 years. They started in period. I think the shift will be very
success of Ethiopian Airlines. We
1979 and it was not until the mid 90s noticeable in GTP II.
need to characterize and understand
and early 2000s that China became
the fundamental shifts that are taking
an overwhelmingly manufacturing-
place in the Ethiopian economy. It has $GYRFDWLQJSDJH

www.thereporterethiopia.com
24| #REPORTERBOOK The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

#SunBurnArt

R Is #sunburnart the Dumbest


Social-Media Trend Ever?

A new type of body art is trending: #sunburnart. And yes, its


exactly as dumb as it sounds. Sun worshippers and tanning-bed
users alike are strategically putting sunscreen on certain parts of
their skin, then letting their
unprotected skin burn to
a crisp so they can admire
the art that the sunburns
create.
Then, as if thats not stupid
enough, theyre posting the
photos online. Yes, theres
a heinous hashtag trending
on Instagram: #sunburnart.
The trend is so alarming
that the American Skin
Cancer Foundation released
a statement warning
against it. Not only is
a sunburn incredibly
painful, but a persons
risk for melanomathe
most serious form of skin
cancerdoubles after five
or more sunburns.
Any kind of sunburn is
really bad, says Rebecca Baxt, a dermatologist. Purposefully
covering one area of skin to intentionally burn and then tan the
other area is a bad idea.
Plus, would you really call this art? Baxt doesnt think so. Its
just a sunburn in a pattern chosen by the person on purpose. And
finally, if you really want to create art, Jason Emer, a dermatologist
in Beverly Hills, suggests a much more artistic way. Spray tans
are much safer, and you can design any skin-tone color without the
burn, he says. (Allure)

R #DeadRaccoonTO honoured by
Toronto with sidewalk vigil

Toronto took time out Thursday to pay tribute to a bizarre (and


possibly unsafe?) fellow denizen of the downtown.
The homage began with a harmless
tweet to the city, after Jason
Wagar came across a lifeless raccoon
on the sidewalk near the intersection
of Yonge and Church streets shortly
after 9 a.m. ET.
The city replied promptly,
saying animal services had
been contacted and the raccoon
some on Twitter dubbed it
Conrad would be whisked away
shortly.
However, nobody showed up. So
a memorial began to take shape.
As Conrad lay on the sidewalk,
he caught the attention of Norm
Kelly, a Toronto city councillor
and Twitter legend. After hours
in the summer sun, the hashtag
#DeadRacoonTO drew ever more
mourners to the scene, despite the
fact dead raccoons can possibly carry diseases such as rabies.
Almost 12 hours later, Wagar walked by the scene again and
sparked a public shaming of the citys animal services. As darkness
descended, candles marked the raccoons unceremonious deathbed.
Finally, around 11 p.m. ET, a worker arrived to take Conrad to his
final resting place. (CBC)

www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |25

R The bitter end: New app shows #SipFromPast


which Facebook friends deleted
you
Feel like youre being stealthy when you quietly unfriend an
acquaintance from Facebook? Think again. A new app called Who
Deleted Me can potentially add insult to injury by showing users
which so-called friends severed ties since their last visit.
The app also shows other useful stats that the social networking site
doesnt give you on its own, such
as the friends that you yourself
have deleted, total number of
friends and who has recently
deactivated their account.
The fact that Facebook has an
unfollow feature, which stops
showing the unfollowed users
posts on the timeline, means that a
full-fledged unfriending is a drastic
measure, perhaps justifying the
apps existence to track such
affronts.
Who Deleted Me which is
available for free for iOS and
Android platforms, as well as in the form of a Google Chrome
extension is the work of UK-based developer Anthony Kuske. A
previous incarnation of the app had the blessing of Facebook, but was
disabled as a supported add-on in February because it was creating a
negative user experience.

The rebirth has been so successful that the Who Deleted Me app and Coca-Cola was first bottled in Ethiopias capital Addis Ababa in 1959 by the
website have been crashing due to a large influx of traffic, and some Ethiopian Bottling Share Company, which later opened a second branch in Dire
have complained in the Google Play application store that the app is Dawa in 1965. In these pictures Emperor Hailesellase inaugurated the new Coca
failing to load. (RT) Cola plant in Addis Ababa. (Source: US embassy in Addis Ababa)

R
Twitter pulls Vine adverts
over claims they are epilepsy
triggering
Twitter has been forced to pull two adverts using its Vine
looping video platform after objections were raised by epilepsy
campaigners.
The ads consisted of six seconds of flashing video, were
massively dangerous to those with photosensitive epilepsy,
according to charity
Epilepsy Action.
The videos were designed
to advertise Twitters
#DiscoverMusic campaign,
aimed at attracting
musicians to the social
network, pitching it as
a good way for artists to
publicise their latest tracks.
The adverts were online for
18 hours before being pulled
Friday morning.
According to Advertising Standards Agency regulations,
marketing messages, even those advertising features of the
operators website, must not include visual effects that could affect
those with photosensitive epilepsy.
Twitter declined to comment.
Epilepsy Actions deputy chief executive, Simon Wigglesworth,
told the BBC that: Twitters ads were dangerous to people living
with photosensitive epilepsy.
87 people are diagnosed with epilepsy every day and that first
seizure can often come out of nowhere. For a huge corporation
like Twitter to take that risk was irresponsible.
Users affected by flashing videos can turn off Twitters autoplay
feature within the app, to avoid them playing without being
tapped on. (The Guardian)

www.thereporterethiopia.com
26| The Reporter, Saturday, July 11, 2015

TOUCH
Vol. XIX No. 983

& go
By Daniel Teshome

people this prime minster is directly

Never rude by accident responsible for. What has he done for


them?
No turn of phrase explains this absurd
situation better than the Amharic
saying betish yele firfari legorebetish
sitgagri/ you are out to feed your
neighbors when you have nothing to eat
V.S. Naipaul was traveling through people are persuaded by this. The average completion percentage at your own house.
India. And some local told him the story of the entire stretch in the two-project
First of all, it is never advised to use Secondly, Hailemariam cites the United
of the Nepalese guy. There was this scenario is simply the average of the
quantitative descriptions to describe Nations Human Rights Council report
guy from Nepal who had all sorts of completion percentage of the two
such matters. Numbers can be on Eritrea to make his claim. How
bloodcurdling experiences in his home projects. The average completion
misleading. about the report produced by the same
country. So, he migrates to India and percentage of the entire stretch in
earns his keep as a night watchman Four females and four males apply for a the one-project scenario however, is body on the situation of human rights
for one of the high-rise buildings in position at some company. There is only dependent on the percentage each defenders in Ethiopia?
Bombay, present day Mumbai. a single vacancy. The only candidate stretch accounts for in the total. The government has always accused
who was qualified for the position, the council and other humanitarian
Whenever he drinks beyond a certain We will not work out the mathematics
a male, is hired. If you are some sort institutions of advancing a hidden
point, bad memories from the old here. But it should be noted, the
of feminist and want to make a point agenda when they report on Ethiopia,
country flood his mind and he would shorter stretch contributes a smaller
about the oppression of women, you but it quotes them freely when the talk
startle his drinking companions with completion percentage to the total
would most definitely highlight the is Eritrea hypocrisy in plain English.
a resolute Everybody should be shot! than does the longer stretch. Under the
fact that one-hundred-percent of female
Everybody should be shot! two-project and one-project scenarios, Thirdly, the right of self-determination
candidates were rejected.
you get very different average results. of the Eritrean people would be nullified
May be we dont go to such extremes
But the fact remains, the vacant Because of the political point he wants if their right to a better government
as the Nepalese fellow. But there are
position was filled with the candidate to score, I wouldnt put it beyond the was predicated on the whims of another
times when we all feel a bit that way.
who was one-hundred-percent qualified. prime minster to report the bigger people.
Our wrath is unleashed because of some
Prime minster or private citizen, number.
action taken or some words said by In solidarity with the people,
depending on your politics, you would
someone. Fortunately, a majority of us A qualitative description - some road Ethiopia should assist Eritreans
report the numbers most advantageous
experience such moments of clouded projects were completed on time and establish a government that would
to you.
judgment on the rarest of occasions. others not if nothing else, would have fulfil their peaceful aspirations. But
Considering our societys track record been more honest. But if percentages be they absolutely have to ask for such
And in some cases, a diluted form of
of misreporting numbers for political insisted upon, here are some. assistance. Change has to be led by the
wrath, a disappointment, takes hold of
gains, I would be very skeptical of any Eritreans themselves. The Ethiopian
us because of, again, some action taken Akaki road is one-hundred-percent
percentage whatsoever. It is not at all army has no business in Eritrea,
or some words said by someone. Our riddled with potholes and ridges. These
possible to ascertain if, as the PM says, otherwise.
basis today is the speech Hailemariam ridges are one-hundred-percent not
only ten-percent of road projects were
Dessalegn (Prime Minster) made to caused because of temperature-induced Any alternative that prioritizes the
not completed on time.
parliament this week. variations in the layer thickness of military aspect of matters over their
When considering road projects, where the asphalt over an extended period of political aspects is bound to fail. Direct
If you are not in any position to rectify a
a project to construct one stretch of road time. They are one-hundred-percent military action taken by Ethiopia will
misstep by someone like Hailemariam,
ends and the other begins is especially caused by mediocre asphalting from the bring nothing but disaster. Derg failed
its only natural to resort to some
important. I am very familiar with get go. Every pothole is one-hundred- for this reason. This Hailemariam
sort of mechanism to allay your
Akaki road as it is the route for my percent a trophy for every year a road shouldnt make the same mistake that
misgivings. Impertinence is one of those
daily commute. So, I will restrict my is overdue for repairs. It is zero-percent Hailemariam made.
mechanisms.
demonstration to this area. exaggeration to say that you find so
Gentlemen are never rude by many potholes and ridges that you miss Fourthly, the prime minster said his
The Akaki road is the most strategic the road. government may take action against
accident. We have two reasons for our
road emanating from Addis Ababa. This Eritrea with the peoples permission.
impertinence today, in addition to the
is the major inlet into and outlet out of Never mind a poor, bureaucracy- Even when a war with Eritrea is
obvious one of reassuring ourselves
the city. Hundreds of vehicles making infested nation like Ethiopia, not even unnecessary, the Ethiopian government
that we are doing something important.
the trip between Addis Ababa and the in the most advanced west European may still choose to attack. In that event,
The first polite reason for our Port of Djibouti must use this road countries would a sensible politician the permission of individual Ethiopians
impoliteness is: it is a citizens daily. Discounting commuter vehicles, make such a grand claim as ninety- is just redundant.
prerogative to besmirch his ruler. some put the number of heavy-duty percent on-time completion. Thats that
The second reason is: how else to test transporters that use this stretch at for the first point. The government can engage with the
the limits of freedom of speech unless about five-hundred a day. Eritrean issue however it chooses. The
The second point the prime minster peoples representatives are always
by stretching it to the extent of lse-
There has been a project to repair made was in regards to Eritrea: The there in parliament raising their hands
majest?
the segment of road from the CCRDA Eritrean people are suffering because in unison to endorse anything. In fact,
For these reasons and so as to appease roundabout to Kaliti Prison for two of the internal policies of the current so much is their commitment to endorse
ourselves, let us scrutinize only two years now. There has also been another government; they are migrating in their anything, even those who sleep through
points made by the prime minster. project to repair the stretch from hundreds-of-thousands. entire discussions always manage to
Apparently, he made more points than the prison to Menaheriya for about wake up at the right moment to raise
This government seeks to destabilize
two. But as is always the case with him, the same time. The two stretches are their hands.
the region to divert attention from
what was said was less interesting than successive.
its failed internal policies. As a law- Kim Jong-Un betrayed his impatience
what was left unsaid. So, we restrict
Now, depending on how we classify abiding member of the international when he had his general executed for
ourselves to two points only.
the projects, we will get completely community, it is a moral duty for us to sleeping through a discussion session.
The first point is: Ninety-percent of different statistical results for their take all measures necessary to defend He could have just waited to the end to
all transportation projects in the city of completion. We can consider the two ourselves from such government, with see if the guy would wake up and raise
Addis Ababa have been completed in a stretches, CCRDA to Kaliti Prison the Ethiopian peoples permission or his hand.
timely manner. (2km) and Kaliti Prison to Menaheriya something to that effect.
(3.5km), as two projects or simply as Ed.s Note: Daniel Teshome is a
Considering the lack of adequate Firstly, the suffering of the Eritrean
sub-projects under the same project, current affairs commentator for
repairs to existing roads and the people is true enough. Also true
two-project scenario and one-project
increasing number of road projects
scenario, respectively.
is the suffering and migration of The Reporter. He can be reached at
that are left unfinished, not very many the Ethiopians. And these are the tekludt2012@gmail.com.
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |27
Advocating... CONT`D FROM PAGE 23

One vision laid under GTP II for in just eight hours. That is what I call foreign investors. I think this has to Out of 54 countries in Africa. That
the manufacturing sector is the perfect strategic location. When you happen. Are we starting to see this? We means Ethiopias FDI policies creates
attainment of the production talk of access to market, it is not only recently had a couple of instances that jobs. There are a lot of countries in
possibility frontier. Can you tell me the free trade of AGOA or others but we are aware of that people we have Africa who get big headline that says
what that signifies? your location also matters because the been working with who have signed big FDI dollar came in, but those FDI
further you are from your markets the up joint ventures with international numbers do not create jobs. You could
Regardless of the definition, what it
more expensive it is. These are all the investors. That is the way to go in have, for example, five billion dollars
means is, we will need to operating at
advantages Ethiopia has. the future. Have local participation. going into an oil and gas deal to build
the cutting edge of global competition
The law does not require it. Which a refinery or a pipeline. But that USD
For that to happen, Ethiopias One of the debates with regards to
is fine. It is a smart law. You do not five billion only employs maybe a 100
manufacturers have to be innovative, giving focus to the manufacturing
want to force foreign investors to take people? One other key finding we have
adaptive, price competitive and sector is as to which way Ethiopia
local companies just because the law in our research is that, this year, FDI
efficient. You need to be at the cutting- should industrialize. Should it rely
says so. However, the smart ones are in Ethiopia will top USD 1.5 billion
edge even if you are producing some on foreign direct investment or local
starting to create partnerships with [annually]. Only six years ago in 2008
basic stuff. And I think that is where manufacturers?
Ethiopians. That is the way to go about it was around USD 100 million. And we
the Ethiopian manufacturers need to be
My recommendation and what I think it. The Chinese did that in China. If expect an average of a billion and half
at. In this regard, there is a lot of good
is starting to happen is we definitely you see a lot of big Chinese companies FDI each year for next three years. In
trends we are seeing here. We see a lot
need the foreign investors because, in the 80s and 90s, they created joint a span of six years an increase of 15
of multinationals coming into Ethiopia.
as I said earlier, they will bring ventures with multinational companies. times is a very strong performance. But,
The industrial parks are now full. I
knowledge, know-how, technology Today the Chinese have built up their there is a lot of global competition and
know a number of clients of ours, big
and more importantly market expertise and I think that is the way I therefore, Ethiopia has to stay focused
multinationals, that are waiting for Bole
access. For example, if we look at the would expect these things to develop in to sustain those kinds of numbers.
Lemi II to open so that they can move
Chinese shoe manufacturer Huajian, Ethiopia in the future. By the way, there are a lot of very
in because the first one is completely
for over 20 something years it was large deals in the pipeline which will
full. These global manufacturers bring Do you see a lot of FDI coming into
exporting to the US from China. So, hopefully be announced in the next
in their know-how, their linkages to Ethiopia in the next five years?
it already has the built-in customers. several months.
the global supply chain. They will
Customers that know its product and I am glad you asked me this. At EY we
make Ethiopia on the cutting-edge of Most of the FDI flow to Ethiopia
would buy immediately. Huajian just released our global report called
competitiveness, especially as they in the past decade are mostly from
moving to Ethiopia now has access the Africa Attractiveness Survey. It
partner with local Ethiopian companies. recently industrialized countries
to that same customer base that is a fantastic report. We have been
One key element to enhancing like China, India and Turkey. But
an Ethiopian manufacturer would publishing it globally for five years.
competitiveness is talent. Here again, some are of the view that with
have a very difficult time accessing. This year, one of the star performers
we see encouraging trends. Ethiopia regard to technology transfer it will
However, we have to continue creating in terms of FDI was Ethiopia. For two
has a very large talent pool which is be to the disadvantage of Ethiopia to
linkages between the international reasons. One, Ethiopia is now among
young, trainable, easily deployable, copy from the copiers. What is your
manufacturers who are setting up the top ten FDI destinations in Africa.
affordable and eager to work. Another view on that?
facilities in Ethiopia and the Ethiopian In terms of the number of FDI projects,
element which I believe will contribute
private sector. It could be some Ethiopia was ranked 14 in 2013. This In the first wave of FDI that started
to Ethiopias competitiveness is
point of the value chain. If you are a past year, it moved up to number eight. coming to Ethiopia say seven years
proximity to global markets. We had
manufacturer of shirts, the Ethiopians But most importantly, and this is the ago, a lot of it came from the newly
done a study at EY which shows that
could produce the buttons or other key finding, almost one out of five jobs emerging economies. However, what
from Addis Abeba you can reach half
pieces. It could also be equity share. (18.5 percent) created by FDI in Africa
the global population 3.5 billion people
Share holdings between Ethiopians and in 2014 was accounted for by Ethiopia. $GYRFDWLQJSDJH
www.thereporterethiopia.com
28| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
the gap in trained human resource

Reauthorization of AGOA... CONT`D FROM PAGE 10 in apparel and garment production.


Adding to this aggressive governments
aggressive activities in increasing
cotton production, the possibility of
having a bigger share in AGOA exports
in view of these Ethiopias recent gains For instance, by 2014, the global a long way in opening the gates of looks more real.
in addressing these bottlenecks could apparel retail industry had a value of US market. The three billion dollars
transform AGOA export in a significant USD 1.222 trillion. That being the case projects of railway connecting Ethiopia In sum, despite the fact that Ethiopia
manner. the Americas take the largest market to Djibouti and Tajourah port will also has a potential to be the leading
share (35.7 percent). This tells a lot as significantly reduce transport cost and exporter especially in apparel, the
One thing worth mentioning is to the potential for Ethiopia to benefit time addressing the biggest challenge report card of our participation in
Ethiopian governments commitment from AGOA. Accordingly, aggressive to Ethiopias international trade. One AGOA leaves much to be desired.
to make AGOA a valuable opportunity efforts in attraction of capital, easing cannot fail to mention the introduction This is all the more so given the huge
to the already peaking manufacturing access to finance, improving work of multi-modal transport in easing port market opportunity AGOA continues
sector. The commitment is evident conditions, improving labor efficiency related logistical problems. to provide for Ethiopia and Africa.
in the fact that Ethiopia was actively can catapult Ethiopia to be one among Nonetheless, the wind of change that
pushing for the reauthorization Huge energy projects including the
main exporters of apparel. The changes blows in the textile and garment sector
Grand Ethiopian Renaissance Dam
of AGOA particularly through its are also beginning to be seen with and more importantly the lead taken in
will help in guarantying reduced
diplomatic mission in New York. giant companies like H&M joining preparing a National AGOA response
energy cost which currently is one of
It has also hosted the 12th AGOA the Ethiopia garment sector. With an strategy gives us more to hope in the
the cheapest in Africa, hence reducing
Ministerial Meeting in 2013. Secondly, average 51 percent growth indicating reauthorization of AGOA for the coming
production costs. The annual estimated
the government is working on the first massive expansion, Ethiopias apparel ten years. Consequently, apparel and
1.5 billion dollar FDI flowing to Ethiopia
National AGOA Response Strategy sector is bound to make the nation the garment being priority sector capable
will also have a big contribution keep
that aims to address bottlenecks in biggest hub of apparel industry. of generating thousand of jobs it is
Ethiopias textile sector in a strong
sector-specific industries. Issuing a incumbent on the relevant stakeholders
Coming to some of the efforts made growth trajectory. In addition to this,
strategy being one important measure, to see to it that the response strategy is
to address bottlenecks, Ethiopias Ethiopia low labor cost which stands
the fact that the strategy picked effectively implemented.
massive infrastructure boom is just unbeatable compared too many Asian
garment and textile, hand woven textile another factor to hope for a leap in countries will undoubtedly make Ed.s Note: Samuel Addis Alemayehu
products, leather and leather products, AGAO exports. With the recent launch Ethiopia beneficiary of the relocation of holds LLB Degree from AAU. He
horticulture and agro-processing also of the Los Angeles flight, in addition manufacturing from Asia in particular. occasionally writes on local and regional
promises a better performance given to Washington DC, Ethiopian Airlines One can count also on the launch of matters. The views expressed in this
the fact that Ethiopia has a big potential flight to the US and its growing sector specific training in such fields article do not necessarily reflect the views
in the aforementioned areas and rising expansion covering more than 90 as textile engineering, in many of the of The Reporter. He can be reached at
global demand. international destinations will go 31 Ethiopian universities, in filling samalemayehu@gmail.com.

Ethiopian and Sudanese scholars,

Ethio-Sudan growing.... CONT`D FROM PAGE 14


included testimonials about untapped
potential for cooperation in higher
education. It also showed efforts made
were also part of the multi-dimensional Sudan, occurring three times a day, are troop of the Ethiopian National Theater,
by scholars and intellectuals of both
growth of the bilateral relation. playing a key-role in enhancing the two pulled everyone to the stage in a
countries to come up with solution to
nations relationship in import-export manner that spoke loudly of the deep
In the economic front, a number of problems faced by both countries. In
trade, tourism and people-to-people sense of love between the two nations
agreements were signed between relation to the Nile, it showed strong
relationships. As a result, Sudan stands people.
Ethiopia and Sudan to cement their intellectual solidarity for cooperation
7th, next to the US, China, UK, Kenya,
growing strategic partnership in 2013. In another occasion, a group of 32 as the ultimate solution to realize
Italy and France, as a source country in
Some of the agreements include trade Sudanese journalists paid a visit to equitable utilization.
tourists flowing to Ethiopia. In sum, one
and investment expansion, free trade Ethiopia in July 2014 with a view to
can safely deduce that the Ethio-Sudan Politically, the two countries
areas, prevention of double taxation, promote the two countries people-to- relationship has also shown a robust
economic relationship is growing in
etc. In the past decade, dazzling people relation to an even higher level growth. Ethiopia and Sudan regularly
an unprecedented manner. By working
breakthroughs were registered in by enhancing mutual understanding. hold political consultations at the
together and creating stronger bonds,
foreign direct investment flow between Another group of Sudanese journalists, level of experts, ministers and heads
Ethiopian and Sudanese businesses,
Ethiopia and Sudan. Sudanese investors editors-in-chiefs and columnists of state. Ethiopia and Sudan also enjoy
investors, and tourists are playing a
have been partaking in Ethiopia in visited Ethiopia in June this year. The close cooperation in regional and
pivotal role in enhancing the bilateral
diverse areas of investment including journalists met with Prime Minister international issues of mutual concern.
relationship in the economic fronts to
construction, agro-processing, Hailemariam Desalegn and other During its AU chairmanship, Ethiopia
the height of excellence. had showed its deepest kinship to Sudan
agriculture, manufacturing, tour high officials. They also paid a visit
operation and others. Presently, In promoting the people-to-people to major development project sites, by firmly opposing war crime charges
ties between the two nations, apart including, among others, the Grand against President Omar Al-Bashir
Sudanese investors have been involved
from the activities undertaken to Ethiopian Renaissance Dam, Addis by the International Criminal Court
in 513 investment projects worth 37
promote tourism, various activities Ababa Light Railway, Ethiopian Metal (ICC) based on a principled position of
billion birr capital. Currently, there are African solutions to African problems.
300 investors engaged in pre-investment were undertaken through public and Engineering Corporation, National
Sudan has supported the Grand
survey of which 126 investors are diplomacy and cultural diplomacy. Museum. Their visit was an important
Ethiopia Renaissance Dam and has
working in the manufacturing sector. These opportunities allowed the two event that showcased Ethiopias rapid also been facilitating tripartite national
nations people to celebrate their shared and holistic development. It helped the dialogue between Ethiopia, Sudan and
Sudanese investment projects have commonality in religion, history, journalist get an opportunity to witness Egypt. One can conclude, then, that at
created 8,322 permanent and temporary culture and language. One such event projects such as GERD with its far- a political level, there is an excellent
employments so far and when all was the recent visit of the Ethiopian reaching benefits to the people of the relationship based on mutual trust and
projects become fully operational, Public Diplomacy Delegation to Sudan. two nations and beyond. Media being good faith that is manifested in frequent
more than 90,000 new permanent and an important medium for bridging gaps visits of the respective leadership to
temporary jobs will be created. The The Ethiopian Public Diplomacy
in information, the visit helped the Khartoum and Addis.
Ethio-Sudan trade volume has also seen Delegation, which was comprised
journalists to tell firsthand accounts of In conclusion, Ethio-Sudan relations
an increase since Ethiopia and Sudan of scholars, religious leaders, MPs,
the benefits of peace and cooperation are on the rise in people-to-people, in
inked the Preferential Trade Agreement business community representatives,
between the two countries. The visit government-to-government, and in
in 2002, which removed tariff barriers. farmers, students, writers, artists,
also created an opportunity for media economic cooperation. The move made
prominent personalities and media
Ethiopia and Sudan have also been institutions of the two countries to in interlinking Ethiopia and Sudan
professionals, was an eventful five-day
working to develop and promote tourist work together in promoting the socio- through infrastructural ties is paving
visit to Sudan in May 2015. The visit of
attraction sites in both countries to economic and political developments in the way towards economic integration.
the Ethiopian delegation sent across
both countries. To realize a prosperous, integrated
increase tourist flow between the two clear message of fraternity, unity and and peaceful Ethiopia and Sudanand
countries. In a bid to promote economic brotherhood to the Sudanese people. Apart from the positive interactions in the region in generalit is important
cooperation, Ethiopia and Sudan have The message was received with an the media, one can also observe growing to build on the positive momentum of
been working together in connecting equivalent fraternal sense, evident links between intellectuals of the two cooperation and further expand it to the
through various infrastructures. In in the typical Sudanese hospitality nations. In the past two or three years, benefit of the people of the two nations.
road transport, Ethiopia and Sudan are the delegation enjoyed. In its stay series of panel discussions were held in
now connected with two all-weather in Sudan, the delegation met with Ethiopia and Sudan on various themes, Ed.s Note: Zekariyas Talo Anjulo
tarmac roads. The two nations are also higher officials, MPs, artists, scholars, including economic cooperation, GERD, is an analyst on Horn of Africa. The
working to connect through railway business community, religious leaders the Nile, and over the legacies of the views expressed in this article do not
transport. Power transmission and and people drawn from different late Prime Minister Meles Zenawi in necessarily reflect the views of The
fiber optics lines also connect the two sectors of the population. The cultural promoting the two countries relation. Reporter. He can be reached at zeketalo@
countries. Ethiopian Airlines flights to performance, staged by the culture The event, which was attended by gmail.com.
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |29
the two warring factions?

Why is IGAD... CONT`D FROM PAGE 15


The answer lies in the failure of the
leaders and politicians of both camps
in SPLM to take the courage and the
evolved to include other peace actors which ultimately functions under the Owing to past violations of the
will to think farther than their noses.
via the IGAD-Plus framework and the pursuit of legitimacy and a broad-based Cessation of Hostilities Agreement,
In fact, the SPLM, whose leadership
forms of regional and international support of the people of South Sudan. the IGAD-led Mediation Process is
has for so long remained a group of
support it has received in the process, also subject to referral jurisdictions to
In a well articulated show of support politicians, has failed to graduate to the
it can be said that IGAD is a dependable the African Union Peace and Security
to the IGAD-led Mediation Process, level of a group of statesmen. Indeed,
way for a lasting peace and stability to Council, and the Security Council at the
Professor Amir Idris, Chair of the as Ethiopias Prime Minister and IGAD
come out of the ongoing crisis in South United Nations.
Department of African and American Chairperson Hailemariam Desalegn
Sudan. Studies at Fordham University in Similarly, with a view to ensure that rightly observed, it still remains
IGADs take in addressing the root New York, notes that the gateway to the ceasefire holds and humanitarian disappointing to continually witness
cause of the crisis in South Sudan sustainable peace and prosperity [to corridors remain open, a monitoring the failure of the leaders and politicians
the people of South Sudan] can only and verification mechanism has been of both camps in South Sudan to rise
The IGAD-led Mediation Process, apart pass through a comprehensive peace put in place under the auspices of the above personal and factional political
from its legitimate mission, is also agreement brokered by the IGAD-plus Cessation of Hostilities Agreement with interests and put the national interest
notable for the only peace effort that in Addis Ababa that addresses the a Joint Technical Committee in Juba. and wellbeing of the people first.
duly looks into the crisis in its entirety underlying causes of the tragedy. The other achievement of the IGAD-led
and, thus, addresses the root causes In a similar vein, Yongo Bure (PhD),
Stressing the fact that the IGAD-led Mediation Process was the Agreement
of the crisis in South Sudan. Taking professor of Economics and Social
peace process speaks the language of the to Resolve the Crisis, under which,
note of the pitfalls of holding onto a Sciences at Michigan Kettering
very people of South Sudan and those the two warring parties had to commit
partisan account of one political group University, underlined that IGAD and
victimized in the conflict, Idris further themselves to seeking a political
over another, the IGAD-led Mediation other international mediators have
explained that such peace efforts would solution to the crisis through a broad-
Process was set for supporting the already sacrificed more than enough
in turn pave the way for effective based inclusive dialogue. This move has
people of South Sudan, all parties and time and resources to help us resolve
economic and political reform. helped contain the spillover effects into
other political stakeholders in the our problems. Bure thus advises his
regional war.
prospect of achieving an inclusive, Achievements so far fellow countrymen, We should not
sustainable, and comprehensive peace Why then has the process brought blame IGAD but ourselves. Instead
in the war-torn country. Despite instances of repeated violations no lasting peace? of being grateful, we continue to be
by the two warring factions in South arrogant!
Therefore, the IGAD-led Mediation Sudan, some of the major achievements If IGADs mission mandate, with its
Process is principally missioned of the IGAD-led Mediation Process so peculiar nature of addressing the root Ed.s Note: Mekonnen Amare is a
to assist South Sudan in the far include the signing of the Cessation causes of the crisis in South Sudan and political commentator on Horn of Africa
overall process of introducing and of Hostilities Agreement and the with both the regional and international issues. The views expressed in this article
implementing a dependable political agreement on the Status of Detainees support it has so far received, is what do not necessarily reflect the views of The
dispensation, putting in place the that the two conflicting parties entered it appears to be, what went wrong in Reporter. The writer can be reached at
constitutional principles of governance, on January 23rd, 2014. striking a lasting peace deal between mekonnenam@yahoo.com.

Advocating...
we have seen in the last three or four you think secondary bond market
CONT`D FROM PAGE 27

determining the value of these shares


years is a gradual balancing between should take priority over stock of these banks for example. There are
emerging economies and western market? hundreds of thousands of shareholders
investors. And we have some very good in private banks in Ethiopia today.
I think they could go parallel. It is a
examples to show that. Last summer, They are illiquid. The banks will try
good thing that the bond market will be
the big American private equity fund to find a match between a buyer and
launched. It is about time. Especially
KKR invested USD 200 million to buy seller but it is very inefficient and
now since Ethiopias bonds are traded
a flower farm, Afroflora, in Zeway. secondly you do not know if the value
globally the Euro Bond. It is only
KKR is the company that essentially you get is transparent. Remember,
natural and timely that we should have
invented private equity in America
a domestic one. However, Ethiopia a lot of people are forming share
in the 1980s. These are very smart
unequivocally, absolutely needs an companies in Ethiopia today in a very
people. That investment in Afroflora
organized equity market. Let me put unregulated market. So it is better for
was their first investment in Africa
this in to context. We have the fourth the government to organize a stock
and they chose Ethiopia. That is
largest economy in Africa and we do exchange where the rules, financial
American money. KKR is the bluest of
not have a stock market. Countries reporting, the corporate governance
the blue-chip of American companies.
with much much smaller GDPs than is clearly laid out by the government.
We now have other top US companies
Ethiopia have equity markets. I do not That way people know what they are
like GE opening up offices in Ethiopia
think it is logical for Ethiopia not to trading and under what conditions.
looking for manufacturing facilities
have an equity market. Is it the panacea Ethiopia might be the only country
in the country. And then we have
for everything? Of course not. But it one in the world, with a GDP of this
companies from Europe like Diageo,
is one of the bucket of market options
Heineken, SABMiller and in the next size, that does not have a stock market.
that we need to have. Our economy is
few months Unilever which will be Therefore, I encourage the government
becoming sophisticated. It is a sizable
opening a factory to produce consumer to really consider this in GTP II. I have
economy by African standards. On a
products. So what you are starting to a very strong position on this because
PPP (purchasing power parity) basis, it
see now is that even though the first we have been working on establishing
is 139 billion dollars and on a nominal
movers into Ethiopia were investors s stock market in Ethiopia for years,
basis around 55 billion dollars. That
from the newly emerging economies, going back to 2001. By the way, during
means it is starting to become relatively
in the last few years we are starting the reign of the emperor, Ethiopia used
large and gradually, sophisticated.
to see a balance. Some of the big deals to have a stock market in the late 60s
Investors need alternative sources of
that will be announced in the next 12 [the Addis Ababa Share Dealing Group,
capital. Almost every Ethiopian young
months are actually western investors, which was abolished in 1974]. I think
person that I meet wants to become
in particular American investors.
an entrepreneur today. I think this the timing is right and the government,
However, we also need to appreciate
fantastic. An amazing attitudinal and I hope, agrees with me. China has
the value of investments from newly
change I have seen in Ethiopia in the a very big stock market. Every Asian
emerging economies. They are much
last fifteen years. But every single country Ethiopia is learning from in
more adaptable to an emerging
one of them need capital. You cannot terms of fast economic development,
economy. Although that is also starting
just use your Iqub or borrow from have stock markets. Therefore, we need
to change because the Americans have
your friends to get seed capital. So to have a stock market as well.
also become very adaptive to emerging
Ethiopia definitely needs an organized
economies such as Ethiopia. One more reason for Ethiopia to having
equity market. We already have some
Going back to the issue of stock semblance of equity trading even a stock market is the lack of alternative
markets you raised earlier. though it is not formal. People who own equity sources such as private equity
Recently, the National Bank of shares in banks in Ethiopia trade. They and venture capital that could fund
Ethiopia is making preparations to exchange shares. But it is not organized. startups with dynamic ideas but lack
start a secondary bond market. Do So there is no transparent way of finance.
www.thereporterethiopia.com
30| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

What retrenches... CONT`D FROM PAGE 14

country without a historical memory is


like a person without a head.
Wordsworth, learn from the past to
profit by the present, and from the
certain societys consciousness gives
full play to finding the right medicine
In all these, the
Owing to Mandelas vision in the
present, to live better in the future. and, thus, healing the wound.
answer lies in the
pursuit of African brotherhood, what This is indeed the responsibility If the peoples consciousness on
exactly went wrong in the minds that needs to be upheld by African matters of the organization of power failure of Africa
of the South African youth that governments to help the youth and wealth is left unaddressed, it is no
conscripted in them a willingness understand themselves, as well as doubt that African migrants residing to go beyond the
to forget such an honored past? It is, enable them find their rightful place in South Africa will remain hostage to
therefore, incumbent upon the youth in the history of the world, through Afrophobic attacks. If the black people physical, economic
and government of South Africa, the Afro-phone cultural narratives such as remain bystanders of the organization
African Union, as well as other African education, languages, values, literature, of power and wealth of their country, and political survival
countries, to revisit and enrich the ethics, history and music while also things will surely go astray as happened
depth of Ethiopianism, pan-Africanism paving the way for them to learn about three times before. This Afro-phone impulses. Many
and African Renaissance in order
to forge a promising future for their
other countries. This way, cultural
survival lays the foundation to political,
survival and development belt is the
only way for Africa to emerge as a new African countries,
children. economic, psychological and social
survival of a given country or society
growth pole and to independently and
freely decide its destiny. including South
Afro-phone
In all these, the answer lies in the
because culture is the foundation of all.
Today, South Africa, being home Africa, and the
It is my view that Afrophobia is the of Nelson Mandela, takes a special
failure of Africa to go beyond the
physical, economic and political
wrong medicine in the context of place in pushing forward the African African Union for
South Africa and, indeed, in Africa. vision for betterment in international
survival impulses. Many African
countries, including South Africa,
The will to look inward is the way out organizations and for its association that matter, have not
from this blind alley that retrenches with other African countries. Indeed,
and the African Union for that matter,
have not been concerned with the
the distance of South Africas Long Africa does not expect South Africa been concerned with
Walk to Freedom. Ngg wa Thiongo, to fail Africans. South Africa needs
irreplaceable role of cultural survival
though education, art, languages, music
explaining the link between the moral, to come to grips with the issues that the irreplaceable role
aesthetic and ethical values of the they mistakenly attribute to African
and so on.
people being carried out by culture, migrants. To cap it all, in the words of of cultural survival
In this regard, a prolific Kenyan writer, and that peoples consciousness, states, Professor Mammo Muchie: We very
Ngg wa Thiongo, regards culture as That consciousness, in turn, has an much look forward and remain hopeful though education,
an integral part of our growth. It is effect on how they look at their values, that South Africa will never fail Africa.
a product of our growth. It is what a at their culture, at the organization of South Africa must put Africa first above art, languages, music
flower is to a tree. The important thing their power and at the organization all else.
about a floweris not just its beauty. A of their wealth extracted from nature
Ed.s Note: Nurye Yassin (@nuralyeju)
and so on.
flower contains the seeds of the trees through the mediation of labor. This
is a researcher on African Affairs.
future growth, its survival. It is, observation is unequivocally suggestive
The views expressed in this article
therefore, very important for African of the missing link in Afro-phobic
do not necessarily reflect the views of
countries and the African Union to help attacks perpetrated against African
The Reporter. He can be reached at
the people, especially the youth, to use migrants but left others untouched.
nuralyeju@gmail.com.
the words of the British poet William Case in point, this illustrates that a

Yet, his country is still calling him and it is up to him to answer her with
the language she can understand and the voice that can genuinely direct
her to the future.
refugee by definition, considered an

Why has our...


who argue The individualist and now afford to pursue the most esoteric
CONT`D FROM PAGE 13

not an individual problem, so it needs a


intruder, a stranger, a scrounger, an
unwanted entity in a strange land. It is
unbearable!
Yet, his country is still calling him and
narrow formulation of human rights aspect of self-fulfillment, even though Sociogeny, a kind of social diagnosis. it is up to him to answer her with the
is not sufficient to pull the African the majority of these people are not in language she can understand and the
Time indisputably showed us that voice that can genuinely direct her to
continent back from the abyss, this position, but are, instead, facing
or Claude Ake (a brilliant African the struggle for existence in its brutal Fannons Sociogeny is not political the future.
professor whose lifelong struggle was immediacy. truth at all.
The government is preparing a listening
to foster development from within or Until when should time tell us that we scheme, not only suited for a dialogue
The diaspora who shout, Ethiopianism
enable Africa to become a producer are still living in elitist mystifications
now! but then downplay and develop but also a polylogue, and not only for
of knowledge) singing from his crypt, of cannons, maxims and concepts?
a conspiracy theory against the those who would invest their minds,
the idea of human rights, in general, Should we always be penitent despite
importance of The Grand Ethiopian energy or finance in Ethiopia, but also
presupposes a society which is atomized the passing of time and after we commit
Renaissance Dam without, for a for those who simply want to come and
and individualized, a society of endemic irrevocable crime against our own
second, thinking that it can at least be witness the progress. I see a diaspora
conflict. That is why when sexual
(wittingly or unwittingly) a genuine innocent people? Was Mbeti right when knocking his brothers and sisters
orientation comes with a tray of human
attempt to counter a colonial legal he wrote that the African conception doors by transcending political truth in
rights, that same Ethiopian diaspora
legacy. What is sad is it is with the of time is only two dimensional: [T]he the face of greater truths to do justice.
ducked. From Hobbesian and Lockian
same tone that they shout, liberal future is virtually non-existent I see many Ethiopian Akons lighting
to the recent Rawlsian, human right is
rights forever! and simultaneously Africa, setting aside the political
not ours. Only communal well-being, as actual time, apart from the relatively
accuse the government of being devoid absurdities which were never told by
which is entrenched within cultural short projection of the present up to two
of pan-Africanism. It is oxymoronic. our story tellersour griots long time
truth, is ours.
Because their wishe, in no account, years hence [or up to what is ago like, once upon a time there were
Human rights are basic rights. No embrace the African consciousness inevitable]? human rights!
one denies this. But when one uses which imparts, attempting to impose
it aggressively as a means of doing norms and models developed elsewhere Yes, the diaspora should be listened Ed.s Note: Benyam Ephrem is a trainee
justice, it is naivety because its appeal is both objectionable as a colonial again and again. I can feel their cold diplomat at the Ministry of Foreign
is still mystic to us as Congo music exercise and unlikely workable in a pain flowing in my veins every time Affairs. He has a masters degree in
is still mystic to the Congolese. It is sustainable manner in practice, as I think about my diaspora brothers African Studies and is interested in
mystified because it was effectively Abdullahi Ahmed An-Naim articulates and sisters or read their writings African socioeconomic, political and
constructed for centuries to appear as in his Expanding Legal Protection of like this one by Hama Tuma: As if I cultural affairs. The views expressed in
an all-inclusive phenomena. It is still Human Rights in African Contexts. have no country, as if I was not part this article do not necessarily reflect the
sociologically specific. It appeals to Frantz Fannon also confirmed this by of a proud people with its own long views of The Reporter. He can be reached
people with a full stomach, who can saying, the problem of black race is and impressive history, here I am, a at zioneph@gmail.com.
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |31
Is it time to...
For the Ethiopian people, benefiting
CONT`D FROM PAGE 10 from rapid development means living
a life free from poverty, ignorance and
backwardness. The primary interest
of the people is to live free from
economy. Increased government if there is large income inequality, urban areas, there are big companies poverty, disease and ignorance. Rapid
revenue from a wealth tax could be it would increase the vulnerability and individuals harvesting millions development is not merely important
used to promote public investment of populations to humanitarian from the recent economic growth. On in raising the standard of living of the
in services like education, basic emergencies. So there must be policy the other hand, there are millions of people, but also a guarantee of national
science research, and transportation response in a given economy to narrow people, careworn, simply managing survival. Unless we can bring about
infrastructure, which in turn improve the income inequality. One of the policy the day-to-day life; their income is rapid development that benefits the
economic efficiency. Increased measures is the introduction of wealth hand-to-month. One of the victims of people, we will not be able to avoid
government revenue from a wealth tax tax. this income inequality are working chaos and disintegration. Therefore,
coupled with restrained government class Ethiopian citizens who have fixed assuring accelerated development and
Of course, as every tax, wealth tax
spending would reduce government salaries on a monthly basis and pay raising the living standard of our people
has its own limitations. Opponents
borrowing and so, free more credit for payroll tax. is critical in preventing our country
of wealth taxes have complained
the private sector to promote business. from disaster and dismemberment. This
because they are a form of direct asset Under World Bank study in 2011, the
A strong, steadily growing economy is a fundamental issue on which the
collection, as well as double-taxation, minimum monthly individual income
could, in turn, increase tax revenues and they are antithetical to personal interests and the survival of the people
level for survival in Ethiopia (i.e. the
further, allowing for more deficit freedom and individual liberty. They of Ethiopia depend.
poverty line) is 500 birr (23 USD); at
reduction, and so on in a virtuous cycle. further contend that free nations should the very least, tax free income from One of the measures to check the
In 2014, French economist Thomas have no business helping themselves employment income should be 500 birr. success of this policy is in how this
Piketty published a book entitled arbitrarily to the personal belongings of Furthermore, working class citizens policy narrows the income inequality in
Capital in the Twenty-First Century any group of its citizens. Wealth taxes not only pay employment tax, but also
place the authority of the government Ethiopia. Otherwise, income inequality
that posits the theory that economic VAT or sales tax and other related
ahead of the rights of the individual and can be a potential source of conflict in
inequality is worsening and proposes taxes when making a purchase of any
ultimately undermine the concept of Ethiopia.
wealth tax as a solution. The central kind, thus ensuring that the tax burden
thesis of the book is that inequality is personal sovereignty. on working class people in Ethiopia Anyone who visits Addis Ababa can
not an accident, but rather a feature of Should wealth tax be introduced in is massive. In addition, the current see the income difference between the
capitalism, and can only be reversed Ethiopia? inflation pattern in Ethiopia makes life poor and the rich with just one glimpse.
through state intervention. At the hard for working class people in urban There are individuals with so much
core of this thesis is the notion that As stated in the above, the review of the areas. In line with this, the income gap wealth it hits the roof. At the same time,
when the rate of return on capital (r) literature indicates that unbalanced between the rich and the poor is ever there are people who are struggling,
is greater than the rate of economic wealth distribution is one of the causes broadening. hardly getting by in their day-to-day
growth (g) over the long term, the result of conflict in developing nations. life. And so, it is logical to say that the
Large income inequality increases Such kind of income disparity is
is concentration of wealth, and this government of Ethiopia must unburden
the vulnerability of populations to common all over the world. So
unequal distribution of wealth causes these people (especially the Ethiopian
humanitarian emergencies. Income governments must craft and implement
social and economic instability. Piketty working class people) by reducing the
inequality, by fueling social discontent, different policies to narrow it. One
proposes a global system of progressive employment tax and introducing wealth
increases socio-political instability of the policy measures that can be
wealth taxes to help reduce inequality tax for the rich in order to decrease the
as measured by deaths in domestic introduced is wealth tax. The Ethiopian
and avoid the vast majority of wealth wealth gap.
disturbances and assassinations (per government must consider this option.
coming under the control of a tiny
minority. million population) and coups (both I believe paying tax to the government Of course, to introduce the wealth tax,
successful and unsuccessful). is the responsibility of every citizen. It the Ethiopian government must first
In todays world, security needs to delineate the wealth level of individuals
In this regard, the conventional is the way to express the social contract
be defined more broadly. Security and companies who are supposed to pay
measurement to measure income between citizens and the government.
has traditionally been defined as the the wealth tax. Determining the wealth
inequality is the Gini index. The Gini But the tax burden must be fair. Though
protection of the territorial integrity, amount also needs researchers, hard
index measures the extent to which the I do not mean every individual and
stability, and vital interests of states work and complicated systems. But if
distribution of income or consumption company is a tax evaders, introduction
through the use of political, legal, or there is a will from the governments
expenditure among individuals or of wealth tax is way to hook wealthy
coercive instruments at the state or side, there is a way. I hope wealthy
households within an economy deviates individuals, corrupt individuals as well
international level. After the 1990s, individuals and companies will be
from a perfectly equal distribution. as big tax evading companies. Even if
the definition was broadened to cooperative for the introduction of the
Thus, a Gini index of 0 represents these groups evade the normal tax, we
include protection from nonmilitary wealth tax in Ethiopia. This is because
perfect equality while an index of 100 can hook them through their wealth
threats that lead to violent conflict the survival of their wealth depends on
implies perfect inequality. According level.
and affect the security of individuals, the survival of Ethiopia and its citizens.
to the Ethiopian poverty survey data
communities, and states. According to The Ethiopian Government seems
in the World Bank Report (2011), the Ed.s Note: Dawit Tadesse is an
David Chandler, Security, therefore, to have recognized that security and
Gini Coefficient, a measure of income assistant professor and a graduate of
refers to not merely the security of development are mutually reinforcing
distribution, is 33.6 percent. Urban Cranfield and Addis Ababa Universities,
people rather than the security of states, and interlinked. This is exemplified
areas increased in 2011 and because
but also, to redefine security concerns by one of the basic principles of the specializing in Accounting and Finance
of the recent economic growth of
much more broadly than merely the Ethiopian governments Foreign and Economics of Security Studies.
Ethiopia, as any country with a growing
threat of violence, to include economic Affairs and National Security Policy The views expressed in this article
economy, the income inequality has
and social concerns such as welfare, on the development and building of a do not necessarily reflect the views of
broadened, especially in urban areas.
employment and the distribution democratic system. This basic principle The Reporter. He can be reached at
of national wealth. In this regard, Currently, in Ethiopia, especially in reads as follows: dawittadesse9053@yahoo.com.

www.thereporterethiopia.com
32| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |33
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www.thereporterethiopia.com
34| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

By Maryamawit Engdawork

Social security...
&
CONT`D FROM PAGE 5

Bits Pieces bills provision, which proposed the discontinuing of provident fund.

A new journey Another revised provision that the House later approved was the time framework that proclaims
organizations should begin their newly recruited employees pension fund 30 day after they are recruited.
But private sectors protested the 30 days time framework during the public hearing session, arguing that
July is the month where so many university students according to their tradition, they require at least 45 days to approve the recruitment of their employees
graduate and prepare for a new journey. After graduation on a permanent basis. Therefore, the committee has to revise the draft law and extends the time
there is a lot that awaits a graduate: they are going to join a framework to 45 days.
new world where they have to apply for work and look for
During the debate, Asmelash Woldeselassie, advisor to the Prime Minister, defended the governments
opportunities that will grant them their long dreamed fat
intention to amend the proclamation and create a unified pension system among all employees as
paycheck.
opposed to what critics say.
For so many graduates the next step is not clear. Many
The very motive of the government was to introduce a unified pension system of social security scheme
graduates hope that they get hired to work, some are
among all employees in the country which is currently implemented in two different schemesin
preparing to move into new areas different from their area
provident fund and pension. But the government has no intention of taking the money employees.
of study, and some decide to proceed with their studies
here in Ethiopia or abroad. So the immediate plan for many However, the bill still drew a heated debate among MPs over the enforcement of the law.
graduates after graduation is looking out for vacancies,
Though MPs voted without protest, MPs were divided into two sides, debating the proposed draft of
which is a grand plan because most graduates have not
enforcement period, which has to be decided by July 8, 2015. But others were protesting the constitutional
had sufficient preparation on job applications, preparing
provisions, which claim any law should be enforced 15 days after the president of the republic signs it and
a CV or preparing for interviews. University students in
after it is published on Negarit Gazette.
Ethiopia do not have platforms to develop skills other than
those in their direct area of study.
Additionally, most graduates do not have any work
experience beside an externship that they might have done.
Combined with the fact only few jobs hire individuals
with zero experience means that many graduates are
The industrial... CONT`D FROM PAGE 7

unemployed for a long time. Even when such vacancies


capitalists to be predisposed to stick with trade and Tesfachew, export is about scale and an economy
are available, due to their lack of experience on job
services sector. cannot rely on small enterprises to lead its
applications, the new graduates are challenged. Thus their
manufacturing export sector. In this regard,
applications may not match the position that they are True to form, the services sector is now the
Zemedeneh as well thinks that FDI is in a better
applying, not because they lack the skills for the job, but leading generator of GDP growth in Ethiopia. In
position to kick start the manufacturing sector in
due to their inability to highlight their skills. fact, this services phenomenon is not restricted
Ethiopia. He makes case for FDI mainly due to the
to Ethiopia, according to a recent report by
The government claims to be creating job opportunities, anticipated market access that these companies
UNCTAD, in 30 out of the 45 African countries
but the graduates on whom it has invested so much are not are expected to come with when they invest in the
services is playing a leading role in the economy.
prepared to join the work force upon graduation. Education country. But still, GTP II did not signify exactly
According to Tesfachew Taffere (PhD), director
curricula need to be updated in a manner that students are which manufacturing strategy will be followed in
of African division at UNCTAD, the changing
given opportunities to develop different life skills. Even the coming five years. That is apart from saying
demand structure and the commodity boom
those who want to be entrepreneurs or go into business for both FDI and local manufactures will play a role in
exhibited in the goods that these countries export
themselves require certain work place skills that take time the development of this sector for years to come.
is the primary cause for the emergence of the
to acquire. In order to decrease the number of unemployed
services sector. In this pool Ethiopia is one nation For commentators, one thing that seems to be
graduates, they need to be given these skills and allowed
where aviation export is playing the major role, obvious is that manufacturing cannot wait for
to see the different opportunities before they graduate.
the director said. Nevertheless, still with the another five years; and that this time around the
Because the number of graduates does not matter if they do
current status of the enterprises in manufacturing policymakers have to get it right before it all comes
not have certain skills.
sector in Ethiopia, it would be hard to imaging crushing down.
Thus education system should not only focus on increasing manufacturing export, he argues. According to
the number of universities it has but also work on the
quality of education and graduates. It should work on
allowing the graduates see all the options that they have
before graduation. These can be done by creating different
summer internship programs, mentorship and life skill
...six Prime Ministers and seven deputy Prime Ministers
trainings. It is about the education system ensuring that the
graduates are the strong competitors in the labor market.
and three vice presidents will arrive at Addis Ababa for
It is also important to allow graduates see that employment the third Financing for Development (FfD) conference
opportunities exist outside of Addis Ababa. On a daily
basis the population size of the capital is increasing. Both
educated and uneducated Ethiopians move to Addis Ababa
to be hosted for the rst time on African soil next to
in search of better work. What many fail to see are the
opportunities in their hometowns or the opportunities
Monterey, Mexico and Doha, Qatar.
that they can create, which is also beneficial for others
unemployed youth. Furthermore the government can also

Joe Biden...
play a role by ensuring that congested job opportunities
are also spread out around the regions. This will make the
people stay in the hometown with the better opportunity
they look for. This action of setting some direction in the
life of graduates can also help in decreasing the number of
migrants who go overseas in search of a better job.
Graduating from university is just a first step to a bigger CONT`D FROM PAGE 1
journey; thus the education system should help the youth
the future of this nation prepare to make decisions that and the likes are in the VIP list to attend. The UN secretary general Ban Ki Moon heads the UN agencies
will take the nation forward. As much as the education heads and directors leaders of the World Bank Group and the International Monetary Fund (IMF) are
system strives to increase the access of education, it should also coming to the capital.
also concentrate on the quality of graduates. Since the The four day international conference is taking place from Monday to Thursday at the premises of the
success of the graduates in any arena of life will reflect the United Nations Economic Commission for Africa (UNECA) where some five thousand participants are
success of the educational system. There are many gaps in expected to be part of the development agenda, Tewolde said.
the Ethiopian workplace that require an educated force let
us make sure the work force we build has the skills to fill The third FfD is looking to find ways of financing the Sustainable Development Goals (SDGs) in the
these gaps. coming 15 years. However, back in 2002 during the Monterey conference (known as the Monterey
Consensus) clenches the most historic accord where the developed world pledged to contribute a 0.7
Ed.s Note: Maryamawit Engdawork is a graduate of Addis Ababa percent of Gross National Income (GNI). Unfortunate to the developing world a few advanced nations like
University Law School. Born and raised in Addis Ababa, she seeks
the UK have fulfilled their commitment. During the second conference in Doha, both sides have mutually
to understand the impact of economic, political and social issues
agreed to strengthen the previous agreements in 2008.
on everyday lives. She can be reached at emaryamawit@gmail.
com
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |35
WB says...
For State Minister Ahmed, the
government is monitoring the
CONT`D FROM PAGE 1 international exchange rate situation
but stated that it is not alarming yet.
Ahmed gave an account of the plans
to an audience that included ministers growing debt burdens are estimated to the government is going to pursue. One
and high profile businesspersons. reach 65 percent of the GDP. Following such plan is to embark on energy export
According to Moller, Ethiopias that, the government is expected to to neighboring nations in order to boost
economic growth is projected to slow down huge public investments. In export performance and to amass USD
continue as fast as it did in the last addition, the depreciating birr against one billion in the coming five years.
decade but by 2017, the potential GDP the strengthened dollar is the other Another plan is to export manufactured
growth would fall to 8.5 percent annual challenging factor the government goods from the industrial parks.
growth, which, according to the banks has to face. According to the WB, the
estimation, is a decrease by two points Washington-based institution advised With regards to the manufacturing
from 10.5 percent in 2016 and one point that a closer look be made on the sector, Moller said that a slowly
in 2015. swelling amount of non-concessional progressing industrialization derived
from the construction sector is
loans and the corresponding higher
That prospect of the GDP decline, happening in Ethiopia. In addition to
interest rates. that, the newly developing industrial
according to Moller, is a product of
the decline in the construction boom, However, officials from the ministries parks are some of the trending factors
affecting the total investment. However, of finance, and economic development where foreign investors come and
the rising trend in the export sector and industry denied the slowing do business. However, the concluded
five-year Growth and Transformation
in the coming three years will help rate of investment, debt burden, and
Plan (GTP I) was only able to erect one
increase growth. Moller highlighted sustainability, saying the debt are out of five industrial parks stipulated
that agriculture will grow 1.9, 2.8 not enough to panic the government. in the economic plan. Moller stated
and 2.4 percent in 2015, 2016 and 2017, Ahmed Shide, state minister of Finance that despite the lower unit cost of
respectively. The industry is expected to and Economic Development, argued labor, many manufacturing firms
register 1.9 average growth rates in the that, though the exchange rate in the are struggling to match demands of
next three years. The service sector is to international markets is appreciating skilled manpower and supply, coupled
grow relatively at a 5.2 average growth enough to affect local currencies, he with credit, land, electricity, trade
margin. affirmed that the Ethiopian government logistics and tax constraints. That
is not willing to devalue in the said, he hopes in accordance to GTP
However, the current decline in export II, industrialization will bring about
immediate future.
performance greatly affects the fiscal formidable changes in the structure of
and external balances of the country. According to Moller, the dollar has the economy.
The ever-increasing gap in the trade recently appreciated by 25 percent
Mebrahetu Meles, state minister for
balance is putting the countrys current against many currencies across the
the Ministry of Industry, together with
account balance further into severe world. In addition to that, the report
a representative of National Bank of
imbalances. The departing country noted that the recent entry of the
Ethiopia (NBE) and economic advisor
director of the WB, Guang Z. Chen, said country into the global capital market
to the Prime Minister, Neway Gebreab,
that debt sustainability is becoming adds to the mounting debt burden,
among others, have challenged some of
more serious. The report shows that the which is currently about 45 percent of
the findings of the WB.
dwindling exports and the exponentially the GDP.
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Five Zone 9... CONT`D FROM PAGE 1

The decision of the ministry was then communicated to the 19th criminal bench of
the Federal High Court, where the case is pending, in a letter sent on Tuesday. The
later then ordered the release of the five defendants.
The circumstance of the release has sparked legal debates among many Ethiopians
on social media. The Reporters attempt to get further clarification as to the
reason for the release of the defendants was unsuccessful. Officials at the MoJ only
resorted to citing the legal provision without giving any further elaboration.
The Zone 9 trial was due to resume on July 20 where the court was expected to rule
whether the defendants should defend the prosecutions charge after prosecutors
rested their case last month.
We were making preparations for the next hearing. And I, actually, had an
appointment to meet with my clients in prison the on Thursday [the day after their
release], Ameha Mekonnen, lawyer of the defendants, told The Reporter.
The decision by MoJ to withdraw the charges was so unexpected that Ameha
learned of the release of his clients after the fact. The defendants were also
informed of their release through a prison loudspeaker.
When I asked [prison administrators] why I was freed after a year and three
months of arrest, I was simply told that the prosecution has dropped the charges,
Tesfalem, who was a freelance journalist at the English weekly Fortune newspaper,
told The Reporter.
And then I stood outside the prison gate in a state of confusion, Tesfalem, who
had to borrow a phone from a cab driver to inform his sister of his release, said. It
was so abrupt that I had to change my clothes on my way home.
It is reported that the prosecution will pursue its case against the remaining five
defendants. Except one who is being tried in absentia, the four remain in detention.
Their defense lawyer, however, said he is unsure of the fate of the remaining
defendants.
They all were charged with the same criminal provisions as principal offenders,
Ameha said.
The prosecutions charge accuses the defendants of creating serious risks to the
safety or health of the public or section of the public under Article 3/2 of the Anti-
Terrorism Proclamation.
www.thereporterethiopia.com
36| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 LEISURE|37
Crossword
ACROSS 54. Turn on or start up 26. Rotary phone device
Husk or pod 58. Composer ____ Stravinsky 27. Actress ____ Thompson
6. Protects animals 59. Actress ____ Lanchester 28. Wallops
10. Catholic ceremony 61. Pertaining to the soft palate 29. Renders invalid
14. Civil or military authority in Turkey 62. Fraud victim 32. Speech comes from this
15. Crustaceon 63. Preciptation 33. Switch back
16. Inter-____ 64. Muse of lyric poetry 34. ____ the Terrible
17. Heightened awareness 65. Stiff hair or bristle 35. Actress ____ Campbell
18. Decays 66. Done to flies 36. Earl ____ tea
19. Maize 67. Pig pens 38. Dressed to the _____
20. Marked with grooves 42. Walks unsteadily
22. Horn 43. Smear or strike (archaic)
Down 47. Pointed arches
24. Frozen crystalline precipitation
25. Sliced sandwich meat 1. Resorts 48. Household cleaning ladies
26. Triangular alluvial deposits 2. Stop 49. Debate or fight
29. Sell 3. Utilizer 50. Cropped (poetic)
30. Muslim prayer leader 4. December holiday 51. City in Biblical Macedonia
31. Burning with little smoke and no flame 5. Single-edged samurai sword 52. Slight
37. City in Jordan 6. Fastener 54. Largest continent
39. Petroleum 7. Poke or incite 55. Jai ____, sport
40. A lapel on womens garments 8. Feline 56. Vertical fist (karate)
41. Periods of weariness 9. Steal and run 57. Greek god of love
44. Hole in a mountain 10. As a prefix, indicates largeness 60. Rule
45. Naval Ordinance Test Station 11. Beside or with
46. US Socialist convicted of murder in 1916, 12. Police car noisemaker
Tom ______ 13. St. Nick
48. Shakespearean Scottish king 21. Throw
52. Placard 23. More aged
53. Lawfully detain 25. _____ of the ball

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Your Zodiacs (astrology-online.com)

ARIES (Mar. 21- April 20) CANCER (June 22-July 22) LIBRA (Sept. 24 -Oct. 23) CAPRICORN (!ec 22.- Jan. 20)
This is a week when you are very busy with your own Some decisions that were made in secret meetings are being This week you have nine out of the ten planets all in an This is a time when you are handling bits and pieces of
affairs. Toward the end of the week you have a nice postponed for a couple of weeks while details are worked out. excellent aspect to your sign. This means that whatever you everything with nothing large or important going on around you.
surprise for everyone. Unexpected changes that occur this You are likely to feel valued and appreciated as partners show choose to do now turns out exactly how you want. It is a very Taking care of old business and cleaning up this and that keeps
week should improve your surroundings. Support comes the good feelings they have for you in splendid ways where the lucky time for you. Of course if you choose to do nothing then you busy. It is a nice time for planning for or taking a vacation.
when you need it. This week allows for conversations that entertainment and sense of mutual well being is at a high, thanks nothing can happen. This is the time to make a fresh start. No matter where you go or what you do there will be limitations
tax your spiritual nature, give into your higher self when to no expense being spared, even if you start incurring a lot of Enjoy and make the most of the opportunity. This week lucky of some sort and you must learn to come to terms with this. Quite
making decisions that count. This week lucky numbers costs you will still feel it is all worth it. Some will purchase little numbers are: 40, 13, 37, 25, 32 possibly, the solution to your feeling stied is there within the
are: 84, 15, 65, 68, 74 luxuries. This week lucky numbers are: 4, 53, 46, 38, 66 connes of your current situation. Perhaps you should alter it
instead of abandoning it. This week lucky numbers are: 79, 77,
TAURUS (Apr. 21- may 21) LEO (July 23-Aug 22) SCORPIO (Oct. 24 - Nov. 22)
74, 45, 32
Money should be loosening up for you now and you have Things you thought nished are being done all over again. You can be a little moody the rst part of this week. !o
some choices to make this week. You will start feeling However this is all to your advantage so be patient. Some something nice for yourself to lift your spirits. You are in the
much more relaxed and condent about your long term very good news comes in the mail and you may have to process of nishing up this phase of your life and are about to AQUARIUS (Jan. 21 -Feb. 19)
situation now, old problems seem to have cleared so that resubmit some papers. Mechanical failures are prevalent launch a new phase. You will be in just the right mood Tuesday You have a air for the dramatic now so use it to your advantage.
you can see the way ahead more clearly, there is much in this week but whatever fails needs to be replaced anyway. as you will be taking a special trip this week and you use the You seem to be on the right track. It is also a good time to put
the world of nature and in your own local area and home You have a dream in mind that should be coming into time to renew old acquaintances and look up all the family that your efforts into your own goals for a change. Monday is good
reality shortly. Your colorful way of expressing yourself on got scattered over the years. This week lucky numbers are: 6, for artistic pursuits or just taking care of yourself, be lazy. Focus
that is a source of inspiration and comfort to you as you
Thursday and Friday will attract attention. This week lucky 30, 71, 90, 37 on work projects that need your intense focus, you know how to
observe life in all its profusion. This week lucky numbers
numbers are: 37, 20, 41, 14, 60 make progress. Thursday working alone is important.This week
are: 7, 10, 97, 64, 40
lucky numbers are: 9, 34, 91, 29, 65
SAGITTARIUS (Nov. 23 -!ec. 21)
VIRGO (Aug. 23 -Sept. 23) This week is very lucky for you so get busy and straighten out
GEMINI (May 22-June 21)
You are just as happy to have some work put off this week until all your affairs. If you need a job now is the time for interviewing PISCES (Feb. 20-Mar. 20)
A vacation or a trip over water is on your mind now.
someone else solves a major problem for you. This is a problem for one. If you have just moved, get out and meet the neighbors. You seem to be trying to find ways in which to increase your personal
You would do well dealing with boats or ships. Venus
that has been hanging around for a while so you are delighted Being dramatic comes naturally to you and this week it can work resources and to build up a savings account. Whatever you decide to do
in Scorpio this week nds you searching out ways
to nally be able to make some headway with your work as to your benet. Your personal magnetism and charm are adding this week turns out well even though it requires a great deal of your time.
to enlarge nancial prospects on a day to day level.
solutions are presented to you. Take time to show your spouse to your aura now and make dating easy. Work on your self image Your imagination is working very well now and you could come up with
Contact experts for advice. Partnership endeavors are
a little extra love this week as they have been doing a lot for with the help of friends and you will get the results youre looking something quite original and yet practical at the same time. Lack of spare
possible this week, allow others to take the lead, fellow
you and deserve a little extra appreciation. This week lucky for. This week lucky numbers are: 88, 27, 71, 69, 70 time will have an affect on your relationship on Sunday and Monday. This
employees are key. You have a nice surprise by the end
numbers are: 3, 35, 1, 98, 59 week lucky numbers are: 81, 93, 85, 73, 51
of the week. This week lucky numbers are: 2, 18, 12, 24, 64

Solution Solution
Can you spot the 12 differences between the two pictures?
63277+(',))(5(1&(6

www.thereporterethiopia.com
38| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 THE REPORTER SPORT|39
Ethiopia Coffee FC hires first foreign coach Eritrean makes
By Dawit Tolesa Born in Belgrade, Dragan Popadic history for Africa in
played his footballing career in
Ethiopian Coffee FC, which finished
sixth placed in last seasons Ethiopian
defensive position. He has a vast
knowledge in African Football
Tour de France 2015
Premier League (EPL), have announced managing several clubs in Africa
the appointment of Serbian Dragan including in countries like Tanzania,
Popadic as their new coach. Uganda, Rwanda, Angola and Ghana.
Dragan Popadic, 69, was unveiled as Among his achievements are the
Coffees new coach on Wednesday at Council for East and Central Africa
Ethiopia Hotel. The Serbian is given a Football Association (CECAFA) cup
one year contract to manage Ethiopia winner with Tanzanian side Simba
Coffee but the club declined to disclose SC, won the Ugandan Super League
the financial side of the deal. title with Express Kampala, National
Cup Angola winner with Petro Atletico
The contract is subject to renewal
Luanda.
depending on the coachs performance,
Dragan Popadic Ethiopia Coffee sacked Tilahun
according to Gezahegn Wolde, Ethiopia
Coffee general manager. style of coaching currently applied Magesha in April a month ahead of
all over the world and this is the the conclusion of the EPL season. Under
This is the first time for Ethiopia Coffee
the guidance assistance coach Anwar
to appoint a foreign coach in the clubs reason behind appointing a coach
Yasin, Coffee finished the season at a
40 years history. from abroad, Gezahegn told reporters disappointing sixth place collecting 36
We wanted to focus on the modern during the unveiling ceremony. points from 26 matches.
Daniel Teklehaimanot
He has already made Tour de France

Genzebe Dibaba sets African 1500m record history as one of the first African-
registered team ever to take part in the
event and now Daniel Teklehaimanot
has pedaled past another major

of 3:54.11 in Barcelona milestone.


On Thursday, Daniel Teklehaimanot
became the first African to don the
Genzebe Dibaba set an African 1500m
polka-dot jersey awarded to the races
record of 3:54.11 in Barcelonas Estadi
leading climber, his team said.
Joan Serrahima stadium on Wednesday
evening (8). The 26-year-old MTN-Qhubeka rider
gave the thumbs-up after earning a
Genzebe Dibaba arrived in the Catalan
third point in the King of the Mountains
city in the wake of her 5000m personal
classification to take the jersey from
best of 14:15.41 when winning at the
Joaquim Rodriguez, who dropped a
IAAF Diamond League meeting in Paris
point behind him.
on Saturday, looking for a fast time
but also not sure about how much her Colleagues on the Eritreans team were
efforts in the French capital had taken quick to voice their congratulations on
out of her. Twitter, writing: Lost for words right
now... Battling to see whats going on
Not much it seems.
through the tears. Dream come true to
She followed the Cuban pacemaker have the polka-dot jersey!
Yuneisy Santiusty through to 700
Daniel Teklehaimanots achievement
meters but with two laps to go she took
came when a sprint ride at the Cote du
off on her own and turned the race into
Tilleul saw him cross in first place on
a time trial.
the final category four climb of the day.
Genzebe Dibaba produced the fastest
Im really happy about what happened
time over the distance since 1997,
today. I cant believe it, he told the
moved up to ninth on the world all- Genzebe Dibaba official Tour de France website.
time list, and improved on the Spanish
existing world indoor record she set in world bronze medalist Ayanleh
all-comers record of 3:55.30, which had That was my childhood dream, to
Stockholm in February 2014. Souleiman won the mens 800m in a
stood to Algerias Hassiba Boulmerka get the polka dot jersey at the Tour de
personal best of 1:43.08.
since she won at the 1992 Olympics in Spains Solange Pereira was a distant France. I was excited about having it
the same city. second to Genzebe Dibaba in 4:12.42. World youth 1500m champion Robert just for one day.
Biwott was second in a PB of 1:43.58,
Into the bargain, Genzebe Dibaba Genzebe Dibaba was not the only After I scored two points, I was
while Musaeb Balla set a Qatari record
sliced just over a second off her athlete to run a world-leading time nervous that I wouldnt take one more,
of 1:43.82 in third. (IAAF)
previous personal best of 3:55.17, the in Barcelona on Thursday. Djiboutis otherwise I would be left with nothing.
The 2012 London Olympian who
had surgery to correct tachycardia,

Sierra Leone, Malawi and Ethiopia lose out on latest Fifa rankings a condition resulting in a faster than
normal resting heart rate, in 2009 was
the first of the 198 riders to start the
Sierra Leone, Malawi and Ethiopia leaves 53 of the 54 member associations for Russia 2018. opening time trial of this years Tour.
are the big losers in Julys Fifa world in the preliminary draw. But there was a cruel setback for Tony
Algeria remain the top ranked side on
rankings. Martin, who broke his collarbone in a
The lowest 26 ranked sides on the the continent and have climbed two
All three dropped out of the top 27 on continent in the July rankings will play places to number 19 globally. crash as stage six of the Tour drew to a
the continent, meaning they will not over two legs in October 2015. close.
Nigeria dropped 14 spots and are now
have byes into the second round of 2018 As Czech Zdenek Stybar made a
The winners of those ties advance to 10th in Africa and 57th overall, their
World Cup qualifying. late dash to win the stage, his Etixx-
round two where they will join the lowest position since 1999.
Instead Sudan, Benin and Libya will remaining 27 highest-ranked teams QuickStep teammate Martin suffered
The biggest drop anywhere in the world injury in a crash that could spell the end
avoid having to play in the opening from the region and face off in another
was 29 places by the Central African of his participation in this years race.
round of the campaign. two-legged play off.
Republic, who fell to 170th on the
The draw for the qualifying for the The winners of these games then move rankings. However, the German retains the
World Cup in Russia will be held in St. into Africas final qualification round leaders yellow jersey because race
Swazilands 2-1 win over visiting rules say a rider held up in an incident
Petersburg on 25 July. where five groups of four teams will
Guinea in a 2017 Africa Cup of Nations in the final three kilometers of a stage
meet both home and away.
With Zimbabwe having been qualifier helped them leap 24 places to is credited with the same time as the
disqualified from the World Cup it The winner of each group will qualify 138 globally and 40th in Africa. (BBC) winner. (CNN)
www.thereporterethiopia.com
40| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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