Day: March 23, 2023

The World Bank reiterated that it will work closely with the Government and IMF to support the economic stabilization effort of in Ethiopia.

The World Bank Vice President for Eastern and Southern Africa, Victoria Kwakwa, is in Ethiopia for an official working visit.

The Vice President started her two-day visit by paying a courtesy call to Finance Minister, Ahmed Shide on Wednesday.

During the occasion, the two officials discussed various issues of mutual interest, including development priorities and on how to strengthen the Bank’s partnership with Ethiopia.

The Minister thanked Kwakwa for the World Bank’s continued support to Ethiopia, especially in delivering much-needed financing in addressing the impacts of overlapping shocks over the last three years.

He also highlighted some of the government’s priorities in recovery and rebuilding, and developmental efforts in the areas of human capital, food security, infrastructure connectivity, economic stability and creating jobs for the youth.

The minister also reaffirmed the Government of Ethiopia’s commitment in deepening the Home-Grown Economic Reform Agenda in rebalancing the role of state to give much space to the private sector for job creation and sustainable growth.

Kwakwa commended Ethiopia’s resilience in dealing with multiple shocks and the government’s commitment to economic reform to promote a private sector-led development.

She also reiterated the World Bank’s commitment to assist Ethiopia in policy areas to improve on ease of doing business and productivity in Ethiopia.

The Vice President reiterated that the Bank will work closely with the Government and IMF to support the economic stabilization effort of the Government.

This is Kwakwa’s first official visit to Ethiopia since she assumed her position in July 2022.

Kwakwa’s visit underscores the World Bank’s strong commitment to Ethiopia as a long-standing development partner.

During her visit, the Vice President, will also meet with Prime Minister Abiy Ahmed, the Governor of the National Bank of Ethiopia, members of the private sector, and some Ministers.

Source: Ethiopian News Agency

The government is committed to support and encourage textile investment activities in Ethiopia, State Minister of Finance Semereta Sewasew said.

This was disclosed during a discussion she held with the CEO and Managing Director of Kanoria Africa Textiles PLC, Ashish Agarawal.

During the occasion, the State Minister reaffirmed commitment of the government support and encourage investment activities in Ethiopia in particular such companies that are engaged in exports and employ youth and women.

The both sides agreed to jointly work to attract more investment to Ethiopia and to work for more access to various markets.

Kanoria Africa Textiles PLC was established in 2012 and the building work started by mid of 2013. It was officially inaugurated in October 2015 and started its commercial operation in April 2016.

The company was established with an investment of 52 million USD with the lion share of funding from the Export-import Bank of India and investors.

It is located at Keta Industrial zone around Bishoftu South Exit on Addis Ababa – Adama Express way. The company is employing around 1200 employees providing free food and transport.

The major raw material of the company is Cotton which involves thousands of farmers across the country (Gambella, Afar, Metema, Gondar, Arbaminch, and Humera and Dansa), and some raw materials like dyestuff, chemicals, and stretch yarn are imported.

Kanoria Africa Textiles is exporting Denim fabric to various countries across the globe and to many local garment manufacturing companies across the country which involves thousands of workforces.

The company is an anchor industry by creating the highest possible value chain from cotton farm to the garment retails and plays a vital role in the country’s socio-economic development.

Source: Ethiopian News Agency

The recent visit of the Ethiopian delegation led by Finance Minister Ahmed Shide will further advance bilateral economic and trade relations between China and Ethiopia, China’s Ambassador to Ethiopia Zhao Zhiyuan said.

In an exclusive interview with ENA, Ambassador Zhiyuan said that the 10th Session of Economic, Scientific, Technical Cooperation and Trade Joint Commission was held with the Ministry of Commerce.

This is the first meeting of this kind between China and an African country in 2023, he stated, adding it “fully reflects the good wishes of the two governments to deepen cooperation and common development.”

The visit to China and the convening of the joint commission have injected new impetus to the relationship between the two countries, contributing to the building of China-Africa community with a shared future in the new era, the Ambassador explained.

Ambassador Zhiyuan noted “China and Ethiopia had discussions on expanding cooperation in sectors such as trade, investment, development assistance, infrastructure construction, and debt treatment, and reached a series of consensus. The two sides signed a memorandum of understanding on the establishment of an investment and economic cooperation working group, which is of great significance for strengthening the construction of bilateral economic cooperation mechanisms and increasing policy support for economic and trade cooperation.”

Furthermore, the two sides conducted in-depth discussions on boosting Chinese investment in Ethiopia’s vast market and huge development potential.

Investment in key areas has always been an important part of the economic and trade cooperation between the two countries, he pointed out, adding “China will continue to encourage and support domestic enterprises to participate in investment in Ethiopia’s agriculture, tourism, medicine, energy, mining, telecommunications and other fields.”

According to the Ambassador, the trade volume between China and Ethiopia has continued to increase in recent years and the channels for Ethiopia to export coffee and other specialty products to China have been continuously smoothed.

China wants Ethiopian companies to continue to actively participate in exhibition platforms such as the China International Import Expo, the Import and Export Fair, and the China-Africa Economic and Trade Expo, he stated, and underscored “to make full use of the tariff-free treatment for 98 percent of products exported to China.”

Zhiyuan reiterated that China will work with Ethiopia to continuously optimize the trade structure between the two countries, and to develop measures to further facilitate the export of Ethiopian products to China.

The ambassador has appreciated the peace agreement reached by relevant parties under the auspices of the African Union.

“We hope that the peace agreement will be implemented smoothly and Ethiopia will restore prosperity and stability as soon as possible, and at the same time focus on economic and social construction.”

Ethiopia is the “anchor of stability” in the Horn of Africa, the ambassador said pointing out that Chine believes peace and stability in Ethiopia is also of great significance to the long-term stability of the region.

He also expressed China’s willingness to actively participate in Ethiopia’s post-war reconstruction and provide support in the fields of humanitarian aid, health and education.

At the same time, when the time is mature, we will actively promote investment and trade to help Ethiopia realize rapid economic and social development, and improve the living standards of the Ethiopian people.

“At present, I am closely following the situation in the north to make preparations for China’s participation in the reconstruction progress.”

To maintain the peace and security in the Horn of Africa as a whole, China is ready to conduct cooperation to actively implement the Outlook on Peace and Development in the Horn of Africa on the basis of the its Global Security Initiative (GSI).

Source: Ethiopian News Agency

Ethiopia and South Africa signed a Memorandum of Understanding to cooperatively work on the tourism sector.

Tourism State Minister Selamawit Dawit and South Africa National Department of Tourism Director-General Victor Tharage signed the MoU.

The agreement was discussed by the technical teams of the two countries.

The countries will work cooperatively on information exchange, promotion, travel and marketing facilitation, development and capacity building of tourism for mutual benefit.

A technical team of the two countries have discussed about the signed MoU and will follow up the implementation.

Source: Ethiopian News Agency

Sudanese Finance Minister Gibril Ibrahim said the power to be generated from the Grand Ethiopian Renaissance Dam (GERD) will not only be enough for the neighboring countries but also contribute to the development of the whole region.

In an exclusive interview with the Ethiopian News Agency (ENA), the minister noted that one cannot have economic development without power and “we think the new dam (Grand Ethiopian Renaissance Dam) is going to help us have enough and cheap energy from Ethiopia.”

Sudan is in need of energy and “we think the new dam is going to help us have enough and cheap energy from Ethiopia.”

On the other hand, the food production from Sudan’s vast arable land can help Ethiopia’s needs, he said, and emphasized that the countries “need to work together on agriculture to make sure that all of our people are getting enough food.”

According to the minister, the dam is going to contribute not only to the neighboring countries but also to the development of the whole region.

“Whatever you think of, you are going to look for power to work and the cheapest power is either solar energy or wind energy or hydro energy. Here now we are having hydro-energy and we are going to make maximum use of it. Still the dam has not reached its maximum and we do think that the power will be enough for Sudan, Ethiopia, and for others as well.”

Africans need to come together in order to tackle the difficulties that the continent is facing, Ibrahim pointed out, adding that the brotherly people of Ethiopia and Sudan accordingly need to work together for the prosperity of both nations.

The borders between Ethiopia and Sudan are artificial as both people are the same with a lot in common, he said.

The minister stressed that Ethiopia, Sudan and Egypt need to think positively and understand each other to find solutions for outstanding concerns and problems.

“I don’t think they are very big problems, and the benefits can be much bigger than anything else.”

Energy is among the most important infrastructure that will help develop trade between countries, he also observed.

Sudan has more than 750 kilometers coast on the Red Sea and “we do think Ethiopia can make use of the Red Sea and have free zone at our ports. That will help Ethiopia and Sudan to develop.”

Ibrahim elaborated that the two countries “need to cooperate and build the needed infrastructures that connect our people. Roads, railways, and of course, airlines are working well but we do think we need railways and roads to make sure that our people are connected.”

These are neighboring countries, brotherly people that need to work together for the prosperity of both nations, he underlined.

We need roads, ports, airports and others, the minister finally stated, noting that “but we definitely need energy to make life viable and to make trade flourish in the region.”

Source: Ethiopian News Agency

National Demobilization and Reintegration Programme (NDRP) for ex- combatants that is being developed by the National Rehabilitation Commission (NRC) was discussed with development partners today in Addis Ababa.

This meeting follows a first national consultation on demobilization and reintegration which was held in Mekelle on the 10th of March 2023; similar consultations will also be held in Bahir Dar, Semera and other cities in Ethiopia.

Speakers at the event included Ambassador Teshome Toga, Commissioner of the NRC; State Minister of Finance Semereta Sewasew; UN Resident and Humanitarian Coordinator, Dr. Catherine Sozi, and UNDP Resident Representative, Turhan Saleh.

Participants included Ambassadors, Heads of Development Cooperation and other senior staff from development partners.

Government Representatives from concerned federal institutions also participated in the consultative meeting.

The NRC was established by the Government in November 2022 for a period of two years to assist with demobilization and reintegration of ex-combatants across the country.

The draft National Demobilization and Reintegration Programme (NDRP) prepared by the Commission follows the Cessation of Hostilities Agreement between the Government of Ethiopia and the Tigray People’s Liberation Front (TPLF) in November 2022.

This National Programme will support demobilization and reintegration of up to 250,000 ex- combatants in Ethiopia, and will be implemented in parts of the country making an important program that is integral to national efforts to consolidate peace and promote stability in the country, according to a joint press release.

The national recovery, rehabilitation and reconstruction program resource mobilization and implementation will take place in a coordinated manner with the view of promoting sustainable peace and development, and ensuring the disarmament, demobilization and reintegration of former combatants remain to be integral part of this process.

The support to the DDR process by partners is anticipated to play a significant role in the stabilization and peace building efforts, and in creating an environment in which a peace process, political and social reconciliation, access to livelihoods as well as sustainable development can take root, the press release said.

Based on the request of the Government, the United Nations (UN) is providing technical and financial assistance to the NRC through the operational coordination of UNDP.

Source: Ethiopian News Agency

Prime Minister Abiy Ahmed has appointed Getachew Reda as Chief Administrator of Tigray Region Interim Administration.

The Chief Administrator is responsible for leading and coordinating the executive body of the region by setting up an inclusive cabinet that ensures the representation of various political forces operating in Tigray , according to the Office of the Prime Minister.

The appointment follows the approval of “Tigray Region Inclusive Interim Administration Regulation” by the Council of Ministers on March 18, 2022.

Recall that the House of Federation (HoF) had passed a decision for the establishment of an interim administration of Tigray region.

The appointment was therefore made based on the decision of the HoF and the Pretoria peace agreement.

Source: Ethiopian News Agency

The African Union High Representative for Silencing the Guns campaign, Mohamed Ibn Chambas has emphasized the vital role of good governance in achieving sustainable development and transformation across Africa.

Speaking at the 2023 Adebayo Adedeji Lecture on the theme of “Governance, Social Contract, and Economic Development in Africa: Looking Back, Projecting into the future” during the ECA Conference of Ministers in Addis Ababa, Ethiopia, Chambas stated that without good governance, development in Africa is dead on arrival.”

The representative highlighted the significance of transparent, accountable, and responsive governments in Africa that play a crucial role in unlocking the continent’s potential for investment and sustainable growth.

He emphasized the importance of social contracts between governments and citizens, which is vital for fostering trust and promoting social cohesion.

According to him, collaboration between governments, civil society organizations and the private sector is also crucial to achieving the common goal of good governance.

“Governance is central to the development and transformation of the continent,” Chambas told participants, adding that, “To fix the continent, we must first and foremost, fix the governance challenges.”

He stressed that African leaders must build transparent and accountable governments and drive sustainable economic growth and development.

“Africa has been found wanting in terms of promoting good governance, Chambas noted, citing a wave of coups d’état against the independence era political leaders and increased unconstitutional changes in government across Africa.

A united Africa is our best chance to weather the storms and create a prosperous Africa for the future, he said, calling for the facilitation of the free movement of persons, goods and services in accompanying the pan-African initiative of the African Continental Free Trade Area (AfCFTA).

“Effective governance and a strong social contract are critical to the successful implementation of the AfCFTA,” he said.

According to Chambas by creating an enabling business environment and social inclusion governments can facilitate trade, promote economic development and social stability in Africa.

The ECA launched the Adebayo Adedeji Lecture in March 2014 to honour and recognize the late Adebayo Adedeji for his intellectual and policy contributions to African development. Adedeji served as Executive Secretary of ECA from 1975 to 1991 and contributed to development thinking, policy and practice in Africa.

Source: Ethiopian News Agency