ETHIOPIA TODAY - EthioEmbassyCanadaethioembassycanada.org/docs/FebruaryNewsletter2.pdfMinister Hailemariam Dessalegn and Kenyan President ... together leading representatives from

ETHIOPIA TODAY

Newsletter of the Embassy of the Federal Democratic Republic of Ethiopia in Canada

Vol. III No.11 February 2017

The Embassy of the Federal Democratic Republic of Ethiopia in Ottawa is located at

1501 - 2 75 Slater Street, Ottawa, ON, Canada K1P 5H9. Tel: 613 565 6637 Fax: 613 565 9175

e-mail: [email protected] , Website: www.ethioembassycanada.org 1

Ethiopia, South Sudan Sign Agreements

Ethiopia and South Sudan have signed agreements, and

memorandums of understanding (MoU) in various

fields during South Sudanese President Salva Kiir

Mayardit three-day official visit to Ethiopia from

February 23-25.

The signing ceremony took place in Addis Ababa on

February 24,2017, following the bilateral talks held

between Prime Minister Hailemariam Desalegn and

President Salva Kiir of South Sudan.

The accords inked covered roads and bridges,

communication, information and media, and

preferential trade agreement as well as border trade

protocol. The two countries have also signed

memorandums of understandings on cooperation in the

construction of roads, diesel offtake arrangement,

health, and energy.

The leaders have agreed to engage each other to

implement the agreements and address any matter that

may arise in the future. Acknowledging that free

movement of people and goods are pre-requisites for

enhancing economic ties and expeditious

implementation of these agreements, the two leaders

have decided with immediate effect to start the

construction of road projects.

Noting with satisfaction the existing bilateral ties, they

also agreed to continue to hold ministerial commission

meetings led by respective foreign affairs ministers

twice in a year.

Agreement was also reached to form Joint Border

Administrators/Governors Committee (JBAC) to

further strengthen cooperation on issues of security,

trade, development and infrastructure along the

common borders.

Regarding the restoration of peace and security in South

Sudan, the two leaders agreed to work for the inclusive

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process of the National Dialogue that was declared on

December 14, 2014. (ENA)

Dr. Workneh Holds talks with EU High

Representative for Foreign Affairs, UK

Secretary of State

Foreign Minister Dr. Workneh Gebeyehu held talks

with High Representative of the European Union for

Foreign Affairs and Security Policy and Vice- President

of the European Commission, Federica Mogherini on

February 18 on the margins of the 53rd Munich security

conference in Munich, Germany.

The two sides discussed on issues of regional peace and

security and migration, as well as the positive steps the

government of Ethiopia has taken in the pursuit of

addressing popular public demands.

Ms. Mogherini congratulated Dr. Workneh Gebeyehu

for taking office as Foreign Minister of the Federal

Democratic Republic of Ethiopia. She also said the EU

is keen to continue its constructive engagement with

Ethiopia. Dr. Workneh thanked the High Representative

for her good wishes and briefed her on the situation in

Ethiopia and the region.

On Somalia, the Minister emphasized the positive and

encouraging trend of state building in Somalia as

concluded by the election of the president. Ethiopia and

IGAD countries view this development as a chance to

further engage with Somalia in its effort to build peace

and security and support the national institution

building efforts. Ethiopia is confident of EU’s

continued support in the region, he added.

Similarly, Dr. Workneh also conferred with his British

counterpart, Mr. Boris Johnson on February 17.

Dr. Workeneh briefed the Secretary of State for Foreign

and Commonwealth Affairs of the United Kingdom on

the current situation in Ethiopia and the region.The

Minister also raised Ethiopia’s new role as non-

permanent member of UNSC.

He emphasized the need to consolidate the Ethio-UK

collaboration not only at bilateral level but also on

multilateral fora, particularly at the UNSC in a bid to

work together on regional peace and security matters,

including on Somalia and South Sudan.

Mr. Boris Johnson on his part thanked Dr. Workneh for

the meeting and promised to continue the existing good

relations between the two countries.

He further called on Ethiopia to participate at the

London International Conference on Somalia, due in

May 2017 at the highest level.

Both sides concluded their meeting by agreeing to

further deepen and expand their strategic partnership in

more sectors and also exchange visits at the highest

level in the years to come. (FBC).

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GERD Increases Installed Generation Capacity

to 6,450MW

Following the upgrading of generators, the installed

hydropower generation capacity of the Grand Ethiopian

Renaissance Dam (GERD) has been increased to

6,450MW. Initially, the dam was designed to generate

5,250MW. However, due to the upgrading made on the

power plant, its generation capacity raised to 6,000

MW from 5,250 MW. But six years later, the total

installed generation capacity of the dam has been

increased by additional 450MW as a result of the

improvement made on generators to boost the capacity

of the power plant.

Following the upgrading made twice, the electricity

generation capacity of the dam increased by a total of

1,200 MW, which is equivalent to the power being

generated from Tekeze, Beles and Gibe-II hydropower

plants.

Ethiopia is preparing to celebrate the 6th anniversary of

the commencement of the construction of the dam with

various fund raising programs. In a press conference

held on Febrauay 26,2017 in connection with the

anniversary, Minister of Communication and

Information Technology, Dr Debretsion Gebremichael,

announced a 56 percent completion of the dam.

According to the Minister, works are also nearing

completion to enable the dam to generate 750MW in

advance. “Construction of power receiver and

transmission stations as well as installation of power

transmission lines have been fully completed. The only

thing left is fixing the two turbines that generate

375MW each,” he said.

The next step is enabling the dam to hold water, he said,

indicating the final preparation being made by the

government to facilitate ways in which the filling of the

dam’s reservoir will take place. “We are preparing to

discuss with the governments of Sudan and Egypt,” he

said, reiterating that “the dam doesn't cause any

significant harm on the lower riparian countries.”

The construction of the dam is being funded by the

people and government of Ethiopia. According to the

Minister, the people of Ethiopia have continued their

support to the construction of the dam through

environmental conservation activities and the purchase

of dam bonds.

The Grand Ethiopian Renaissance Dam (GERD) is

being built in Benishangul Gumuz Regional State,

approximately 500 km northwest of the capital Addis

Ababa.

At the end of the works, GERD will be the largest dam

in Africa. (FBC)

Somalia Holds Inauguration of Its Newly

Elected President

The inauguration of the newly elected president of

Somalia, Mohamed Abdullahi Mohamed was held on

February 22,2017 in the capital Mogadishu. The

presidential inauguration was held in the presence of

leaders of African countries including Ethiopian Prime

Minister Hailemariam Dessalegn and Kenyan President

Uhuru Kenyatta.

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Representatives of the African Union, the European

Union (EU), the Arab League and the United Nations

have also attended the ceremony.

Mohamed Abdullahi Mohamed, a former Prime

Minister of Somalia, was elected as President after

defeating the outgoing President Hassan Sheikh

Mohamud after two rounds of voting on 8 February

2017.

The tasks of bringing the country, known for civil wars

for decades, together and introduce strong central

government are the challenging tasks that face the

president-elect. (ENA)

Business and EconomyEthiopia at the “Investing in Africa Mining

Indaba” 2017

The “Investing in African Mining Indaba” is an annual

conference dedicated to the capitalization and

development of mining interests in Africa. It is

currently Africa, and the world’s, largest mining

investment conference. The four-day event, held from

February 6-9, in Cape Town, South Africa, brings

together leading representatives from the mining

investment community, the world's largest mining

houses and Government ministries to share insights into

how the sector can drive investments and capitalize on

the opportunities available to Africa's mining industry.

Ethiopia’s Minister of Mines, Petroleum and Natural

Gas, Motuma Mekassa told delegates to the conference

that Ethiopia had identified the mining sector as a

priority for development and, he said, the potential was

great. Ethiopia, a highly diverse country geologically,

was rich in minerals, including gold, gemstones,

platinum and soda ash. It was virtually untapped,

diverse and had vast mineral resources offering huge

potential opportunities for exploration and

development. The focus on developing mineral

resources is part of the government’s plan to shift from

an agriculture-led economy to an industrial one. At the

moment, the agricultural sector accounts for 46% of

gross domestic product, 80% of employment and 85%

of export revenues. Recognizing the potential of the

mineral sector to trigger further industrialization and

increased economic development, the policy framework

now envisages the minerals sector becoming the

backbone of industry by 2023. The government’s

ambitious plans for mining includes a target to increase

the sector’s contribution to GDP from today’s 1.5% to

10% by the year 2025.

Minister Motuma noted that Ethiopia had made a strong

commitment to work with companies, both big and

small, to develop mineral resources, whether in

providing infrastructure or in improving rules and

regulations. It was prepared to seek help from outside

parties where this was relevant. He said that

transforming the sector was a priority but “we lack

capacity” in a number of areas, from management of

licensing to environmental issues and even community

development. So, he said, we are trying to improve out

capacity, but “we need partners.”

5

Chinese Investment Continue to Grow in

Ethiopia

Chinese investment in Ethiopia is picking up speed. It

has built on the continued wide-ranging cooperative

relations between Ethiopia and China during the first six

months of the current Ethiopian budget year. This is a

result of an investment promotion strategy prioritizing

the participation of”anchor‟ companies in Ethiopia’s

manufacturing sector. Their participation at a greater

level, quality and substance in the manufacturing sector

reinforces the vision, aspirations and needs of the

country in its aims to enter the stage of an economic

takeoff and achieve economic modernization in the

shortest possible time. Indeed, the growing presence of

“anchor‟ companies from China reflects the fact that the

economic relationship gains momentum from the

continued growth of mutual trust in governmental and

political areas, and the frequent high-level exchanges,

which are becoming a central element in Ethio-Chinese

friendship and relationship.

The Commissioner for the Ethiopian Investment

Agency, Fitsum Arega, said on February 13, that the

presence of Chinese enterprises was growing in

Ethiopia due to the country’s sound investment strategy,

deployed to attract “anchor‟ companies. This was in

addition to the favorable investment opportunities given

to these enterprises. This growing interest and presence

of Chinese investment was the result of specific

Ethiopian investment promotion activity over the last

six-months of the budget year, giving special attention

to attracting ”anchor‟ enterprises. This underlined the

importance and value of the participation of “anchor‟

companies in the manufacturing sector, the

Commissioner emphasized. The Commissioner also

went on to specify that ten giant “anchor‟ companies

from the People’s Republic of China had recently

decided to invest in Ethiopia. He welcomed the interest

and commitment shown by these companies, noting that

half of them were licensed in the textile and garment

manufacturing industries. He added that the decision

taken by these companies to invest in Ethiopia clearly

showed that the country had continued to become a

favorable investment destination for ”anchor‟

companies. This was as a result of the government’s

investment promotion blueprint which concentrated on

mainstream companies because of their huge

contribution to the creation of more jobs and the sharing

of mutual benefits. Commissioner Fitsum said this

investment promotion strategy would enable the

country to attract further Foreign Direct Investment that

could be changed into reality and benefit the country

through job creation as well as revenue earnings. The

strategic focus was now pivoted towards attracting

“anchor‟ companies, and was aimed at meeting the

targets of both the companies and the country. The

Commission in adopting this strategy had changed its

way of doing business including altering its methods of

attracting and licensing projects. Priority was now

placed on those enterprises with a high profile. In

addition to the new ways of doing business in terms of

licensing, the strategy also prioritized attracting and

licensing companies which were action-oriented and

practical, with real results impacting the development

infrastructure of the country. This has helped Ethiopia

to attract the 10 giant Chinese companies. Jiangsu

Sunshine Group, one of these companies which has

decided to invest in textile and garment manufacturing,

is engaged in a wide range of areas - wool textiles and

garments, biological pharmacy, real estate, energy,

thermal electricity, IT industry, and other businesses in

China and internationally. It has decided to invest in

Ethiopia with close to US1 billion. The peace and

stability which continue to prevail in the country and its

ongoing infrastructure development, trainable

workforce with competitive wages and a fast-growing

economy coupled with strong support from the

government and favorable investment climate are the

driving forces encouraging the companies to invest in

Ethiopia. Commissioner Fitsum said all this meant that

Ethiopia had still managed to attract projects worth

US$1.2 billion during the first six months of the

financial year, although this represented a fall over the

previous six months. China was now the leading

country investing in Ethiopia both in terms of capital

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and engagement in manufacturing industry, while India

comes next during the first half year.

15th African Fine Coffee Conference &

Exhibition in Held Addis Ababa

The 15th African Fine Coffee Conference and

Exhibition opened at the Millennium Hall in Addis

Ababa on February 15. Organized by African Fine

Coffee Association under the theme: “Reshaping the

African Coffee Industry for Productivity and

Investment”, the event brought together more than 2000

regional and international coffee roasters, traders,

producers, professionals and connoisseurs from

countries all over Africa and elsewhere. The African

Fine Coffee Association emphasized that the event also

showcased different varieties of coffee beans, raw and

roasted coffees, fine coffee, coffee materials, coffee

manufacturing services, coffee packaging materials and

indeed anything that related to coffee. The three days of

the Fine Coffee Conference and Exhibition is Africa’s

largest coffee trade platform and it includes panel

discussions, exhibitions of specialty coffees, and

various sessions and discussions aimed to enhance the

sector in Africa and its competitiveness in the global

market. Opening the Conference, Ethiopia’s President,

Dr. Mulatu Teshome, noted that the 15th African Fine

Coffee Conference and Exhibition would create a

particularly good opportunity for Ethiopian coffee

growers to promote their coffees as the conference came

as they were harvesting their beans. Referring to

benefits of the conference, President Mulatu also said

such a platform could make a significant contribution

towards generating the revenues, which Ethiopia

targeted from coffee. Coffee accounts for 26% of

Ethiopia's total export earnings, and the country aims

earning over US$2 billion a year from the export of over

300,000 tons by the end of the second Growth and

Transformation Plan (GTP-II) in 2020.Ethiopia is the

birthplace of coffee. Currently, the total area covered by

Arabica and other types of coffee in Ethiopia is around

400,000 hectares, and total coffee production is about

200,000 tonnes of clean coffee per year. Coffee, directly

or indirectly affects the livelihoods of over 15 million

people in the country, and coffee production, processing

and export are a major element in Ethiopia’s

agricultural activities, which still represents 45% of

GDP, 85% of employment, and 90% of foreign

exchange earnings. The African Fine Coffee

Association organizing the conference is a regional

non-profit, non-political, member-driven association,

representing the coffee sector in its member countries:

Burundi, Ethiopia, Kenya, Rwanda, South Africa,

Tanzania, Uganda, Zambia and Zimbabwe. It plays an

important role in the encouragement of the trade.

Investment Commission Finalizing Industrial

Parks Regulation to Ensure Efficiency

Ethiopian Investment Commission (EIC) said it is

finalizing a draft Industrial Parks Regulation that will

mainly enable businesspersons to get one-stop services

in the various parks across the country.

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This was disclosed at a half-day consultative workshop

on the draft regulation organized by the commission on

February 20.2017.

Investment Commissioner Fistum Arega said the

regulation will bring together government organizations

scattered at various locations so that they can

conveniently serve investors.

It will also help to manage and develop industrial parks,

establish system and monitoring, and ensure the

responsibility and accountability of users of the

industrial parks, he added.

The commissioner, who recalled the endorsement of the

Proclamation on Industrial Parks on April 9, 2015,

added that the regulation upon endorsement will

provide one-stop service, including customs service,

telecom, electric power, and logistics, among others.

According to the Commissioner, the development

of industrial parks is crucial to accelerate the

economic growth of the country through promoting

and attracting investors as well as creating job

opportunities. The draft Industrial Parks

Regulation is expected to be endorsed by the

Council of Ministers within a month.

The nation has planned to build 10 industrial parks

in GTP-2.

Tourism and Culture

Ethiopian to Host ICAO Global Aviation

Training, TRAINAIR PLUS Symposium

Africa’s largest airline group, Ethiopian Airlines,

announced that it will host the International Civil Aviation

Organization (ICAO) ICAO Global Aviation Training and

TRAINAIR PLUS Symposium under the theme:

“Together, Enhancing Training to Build Capacity” at the

seat of the African Union, Addis Ababa from April 11-13,

2017.

Group CEO Ethiopian Airlines, Mr. Tewolde

Gebremariam, said: “It is a profound honor for all of us at

Ethiopian Airlines to host the ICAO Global Aviation

Training and TRAINAIR PLUS Symposium which brings

major industry players together, to exchange best practices

and experiences in human resources development and

aviation training, and more specifically on the TRAINAIR

PLUS Program for the advancement of the Global aviation.

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An estimated 400-500 expected participants will be taking

part in the Symposium, including the ICAO council

President and the Secretary General, transport ministers,

ambassadors, civil aviation and airport authorities, civil

aviation officials, aircraft manufacturers, airline and airport

operators, industry policy makers, and tourism experts.

Ethiopian Aviation Academy, the largest and most modern

aviation academy in Africa, ICAO TRAINAIR PLUS

Member and Regional Training Centre of Excellence and

IATA Authorized Global Training Centre, is playing a vital

role to address the growing need for Skilled Aviation

professional in Africa and the region. (Source: Ethiopian)

Dr. Tedros Adhanom Gebeyesus

African-Union Endorsed Candidate for Director General of the World Health

Organisation