The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
Vol. IXI No. 983 | July 11, 2015 | ADDIS ABABA, ETHIOPIA
Five Zone 9 bloggers, journalists freed
The circumstances of their release remains unclear
By Tamiru Tsige
The Ministry of Justice (MoJ) withdrew
terror charges against five of ten
defendants in the Zone 9 bloggers and
journalists case after more than a year
WB says
*'3JURZWK
investment
WRGHFOLQH
Debts to mount to 65 percent
of GDP in three years
By Birhanu Fikade
At its fourth annual Ethiopian
economic update, the World Bank
Group (WB) found out that Ethiopian
economic growth in GDP is projected
to slow down to 8.5 percent. The decline
is owed to slow investments and low
rate of total factor of productivity
(inefficiency of labor and capital to
effect total output). Government
officials deny the projections.
Lars Christian Moller (PhD), lead
economist and program leader at the
WB, presented the findings of the
economic update report on Wednesday
WB says.... page 35
Advertisment
since their imprisonment.
Journalists Tesfalem Waldyes,
Asmamaw Hailegiorgis and blogger
Zelalem Kibret were released on
Wednesday from Addis Ababa Prison
Administration, Qilinto branch. They
Joe Biden
www.thereporterethiopia.com
www.thereporterethiopia.com
I stood outside the prison gate in state of confusion
were joined by Edom Kassaye and
Mahlet Fantahun, who were detained at
Kality, the next morning.
The MoJ cited Article 16/6 of the
proclamation that defines the power
of the executive organs which states
et al to attend
QDQFLQJFRQIHUHQFH
Qatar.
According to Yeshi Tamrat, director
US Vice President Joe Biden
|1
Price 5.00 Birr
that the ministry can withdraw
criminal charges for good causes and in
accordance with the law.
Five Zone 9.... page 35
By Birhanu Fikade
After 14 years, the developed and
developing nations are meeting in
Addis Ababa to renew development
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
of high level officials, The Reporter
learnt.
Tewolde Mulugeta, spokesperson of the
Ministry of Foreign Affairs (MoFA) told
The Reporter that some 16 Heads of State
and Government, six Prime Ministers
and seven deputy Prime Ministers and
three vice presidents will arrive at
Addis Ababa for the third Financing
for Development (FfD) conference to be
hosted for the first time on African soil
next to Monterey, Mexico and Doha,
general of protocol affairs at the
ministry, the Italian Prime Minister
Matteo Renzi, and the Swedish Prime
Minister Kjell Stefan Lofven are among
the expected leaders confirmed to
come for the conference. Vice Prime
Ministers of Turkey, Belgium, Slovakia
Joe Biden.... page 34
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
In the wake of the introduction of the
governments 223.4 billion birr budget
for the fiscal year, government financial
requirement was boosted as the House
of Peoples Representatives (HPR)
approved close to USD 780 million birr
in loan agreements that were secured
from various lenders.
According to the national budget
document, which was already approved
on Tuesday, the government is
expecting a 30 billion birr loan from
external assistance and loans, which
is planned to be secured from various
bilateral and multilateral relations.
The latest combined USD 780 million
(Close to 15.5 billion birr) was collected
from five continental and international
financial institutions who will
contribute almost 50 percent of the
finances needed to meet the required
budget.
According to the governments
document that was presented before
the House last month, about USD 350
million of loans was secured from
International Development Assistance
(IDA) to finance the agricultural
production and productivity projects.
The same document also indicates that
about USD 370 million was secured from
African Development Bank (AfDB) to
finance the Modjo-Hawassa expressway
and to build 60 km length road between
Ziway-Arsi Negele. USD 21.5 million
(KWD 6.5 million) was solicited from
Kuwaiti Fund for Arab Economic
Development, which is intended for
water development projects in the town
of Axum. Meanwhile, USD 13 million
and USD 25 million were also obtained
from Bank of Arab for Development
and Economic Assistance (BAEDA)
and the Opec Fund for International
Development (OFID), respectively, to
finance a 60 km length of road project
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
Social security fund bill voted in favor
of private sector
By Yonas Abiye
In an unprecedented move, the House of
Peoples Representatives (HPR) voted on
Tuesday on the amendment of private
organization employees pension bill
in favor of private organization. This
is after making a swift change of some
provisions that are different from the
original draft proposal presented by the
executive.
As a result, the newly endorsed bill
ensures private organizations continue
with their usual business of provident
funds for their employees as part of the
social security scheme.
When it was first proposed two weeks
ago, the bill immediately sparked
controversy and heated debates between
the government and private sectors.
Before the Houses decision, the draft
revisions and followed that up with
bill had proposed that all private
organizations embrace the same
pension system and discontinue the
provident fund in which hundreds of
thousands of private employees have
accumulated billions of birr through the
provident fund scheme.
Thus, the draft bill drew fierce criticism
against the government with the
accusation that the government was
intending to take the provident fund
into its coffer so as to sooth its quench
of finance for its ambitious development
projects.
However, the parliaments Law,
HEADLINES |5
Justice and Administration Standing
Committee presented the bill back to
the Houses after making significant
hearing event.
a couple of meetings it organized to
collect public opinion and experts
opinion.
Chairperson of the Committee, Ababa
Yosef, told MPs that the original draft
has been found with shortcomings
such as the fact that it was originally
designed without the participation and
consultation of private sectors.
She particularly explained that the
standing committee had to separately
revise the bill whereby it later
identified the major problems and
contentious issues. In addition to
that, the committee has taken special
consideration on major issues raised
by the private sector during the public
What we have learnt from the public
hearing is that the responsible organ
that designed the bill did not participate
the private sector when preparing
the bill and didnt invite them to
contribute their own input for the
proposed legislation. Abeba told MPs,
adding that the committee decided to
address the major concerns of private
organizations.
As a result, the committee reported its
motion by omitting the original draft
Social security.... page 36

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

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

green economy
The United States joined Denmark, France, Germany, Norway, Sweden
and the United Kingdom by signing a Communiqu to support Ethiopias
initiative in implementing its Climate Resilient Green Economy strategy.
into Ethiopian borders demolishedFederal Police
The Ethiopian Federal Police disclosed that 30 Eritrean government-backed
insurgents, attempting to forcefully cross into the Ethiopian territory, from
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
Demark, joined the UK and Norway to sign a joint Communiqu to support
Ethiopias initiative in implementing its strategy, he stated.
He said we are very happy to see the US joining this agreement. We hope
more countries will join this effort in the future.
The Government of Ethiopia is committed to this cause and will continue to
effectively use any support it gets from its development partners, he added.
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)
Federal Police Commissioner General, Aseffa Abiyu, said Eritrean-backed
insurgents have in the past made similar foiled attempts to cross into Ethiopia
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
have the capacity or the ability to overrun the Ethiopian security forces.
Prime Minister Hailemariam Desalegn recently told the Houses of Peoples
Representatives (HPR) that Ethiopia will take all the necessary action against
the regime in Asmara if it continues its policy of destabilizing the region East
Africa. (FBC)

www.thereporterethiopia.com
6| IN-DEPTH
If experience of the rst GTP is anything to go by,
this task of transformation is not an easy task
to accomplish. Introspect, the core focus of the
GTP I was also to lay down the road to a smooth
transition to manufacturing which is to come about
by diverting the surplus gains (both labor and
capital) from agriculture to manufacturing.
It was before the
announcement of GTP
I that the Ethiopia
government embarked up
on a multifaceted project
in the Afar Regional
StateTendaho Sugar
Factory. The government
had high hope for this
project since it incorporated
a hydro power plant and
a massive production of
ethanol. Although years
have elapsed from its initial
project completion period,
Tendaho is still preparing
to conduct its rst test
production. Meanwhile,
last week Ethiopian Sugar
Corporation has announced
that it is importing 1
million quintal of sugar
to bridge the local demand
gap. The story is all same
with other major projects
in GTP I, which is coming
to an end this year.
Nevertheless, that does not
seem to deter authorities
in setting other ambitious
targets in the upcoming
GTP II, writes Asrat
Seyoum.
The industrial divide
Starting from this weekend, attendants
of the third Financing for Development
(FfD) Conference would start to descend
on Addis Ababa. Each member state
of the United Nations is expected to
be represented at this global event
with an overwhelming 5000 delegates
converging in the capital. Heads of State
or Government, relevant ministers
ministers for finance, foreign affairs and
development cooperation and other
special representatives and heads of
the major international organizations
are camping in Ethiopia for three days
starting from Monday. The reason is
simple. They will be talking money;
money to finance the global development
targets of the next 15 yearsSustainable
Development Goals (SDGs)successor
of the Millennium Development Goals
(MDGs). If there is one thing that can
be learnt from the SDGs, it is its sheer
ambition. The MDGs wanted to reduce
extreme poverty (the number of people
living below 1.25 dollars per day) by half;
well, SDGs are aiming to eliminate it.
That is not all; the SDGs are looking to
reduce inequality both within and between
countries; from better governance and
peaceful societies to action on climate
change, ecosystem restoration, and a big
shift towards sustainable consumption and
production.
Most of these targets although if met would
make the world a better place, they seem
to be unbelievably unreal. It is as if the
SDGs have borrowed a page or two from
the Ethiopias five-year development road-
mapthe Growth and Transformation
Plan (GTP). Indeed, what better place to
discuss such an ambitious development
target than in a country which has its own
history of ambitious plans. So happens
to be the host country is on verge of
launching its send generation of the GTP
which above anything is expected to
charter the nation into a manufacturing
boom and long-run transformation to
industrialization.
If experience of the first GTP is anything
to go by, this task of transformation is
not an easy task to accomplish. Introspect,
the core focus of the GTP I was also to lay
down the road to a smooth transition to
manufacturing which is to come about
by diverting the surplus gains (both
labor and capital) from agriculture to
manufacturing. In fact, there has been
major gains recorded in the agriculture
sector; and there also has been slow shift
in resources in the first five years of the
GTP. But, perhaps not in line with what
the plan has anticipated; the services
sector looks to be on the receiving end.
If there is one thing and only one thing
that the assessment of GTP I shows it the
failure of the plan on two rather related
fronts: investment on manufacturing and
export earnings. In recent discussion with
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
Project executing capacity seems to be
the burden for yet another ve years of
infrastructure building; however, what looks
to be a daunting task for the policymakers is
the sheer size of foreign exchange need of the
projects in GTP II.
the public on the content of the upcoming
GTP, policymakers were heard saying that
this is the make it or break it moment
for the economy. The draft document that
was prepared to evaluate the highlight
performances of GTP I indicated that the
entire growth road-map could go forward
without fixing manufacturing and exports.
More ambition
By all measures, GTP I was inherently an
infrastructure plan most notably power,
road, railway and telecom. Ethiopia has
invested billions in these areas over the
course of the past five years. No doubt
infrastructure took the lions share of the
overall close to 80 billion dollars spending
during the GTP I period. GTP II as well
did not hold back on its infrastructure
ambitions with planned expansion of
17,347 MW of electricity, 220,000kms of
road coverage, 2,782kms of the railway
Ethiopia has and unprecedented expansion of mobile
phone subscription (103 million). With
invested billions the exception of the intended increase in
mobile phone subscription, which is close
in these areas to three-fold, all the rest are look at a sheer
doubling of their current level or their
over the course planed level in GTP I.
As far as the achievements of these targets
of the past ve are concerned, number issues are raised in
connection with project lags and quality of
years. No doubt delivery. In this sense, power is one sector
where lag in project execution has severely
infrastructure undermined the achievements of the
plan. In the 10-month performance report
took the lions that was presented to the parliament,
Alemayehu Tegenu, Minister of Water,
share of the Irrigation and Energy, in the five years
period the power sector delivery rate was
overall close a mere three percent with only 310MW
of additional electricity entering the
to 80 billion national grid system. This brought the
total amount of electricity generated to in
dollars spending the country to 2310MW falling by far from
its ambition target of 8,000 to 10,000MW.
during the GTP Understandably, GTP I targets hinged on
the coming online of Gibe III power project
I period. and its 1,800MW and the first phase of the
mammoth the Great Ethiopia Renaissance
Dam (GERD) contributing 700MW to
the national grid both did not happen as
planned.
Obviously, the plan is not expected to
achieve 100 percent, Zemedeneh Nigatu,
managing partner of Ernst and Young
Ethiopia, says. He argues that most of
the infrastructural projects are either
completed, or on the way to be completed
or at least are on track to be implemented,
he argues. However, rather bizarre thing
to do is for the GTP II to incorporate all
the unattained targets of GTP I and even
expand on it. For instance, from GTP I the
target of power sector fall behind by 97
percent; nevertheless this did not stop GTP
II from targeting double the generating
capacity that was under GTP I, itself was
not attained. In effect, in the next five
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
to expand from 2310MW to 17, 347 MW.
Things appear to be similar if one looks
at the railway sector too. The fact of
the matter, in the rail department the
only line that is nearing completion
was the Addis Ababa Light Rail Transit
project. In spite of varying level of
progress none of the rail projects across
the across the nation have started
operations. Yet again, GTP II targeted
the completion and commencement of
all the rail projects in addition to lying
down 2,782kms of railway network.
The loop
Project executing capacity seems to be
the burden for yet another five years
of infrastructure building; however,
what looks to be a daunting task for
the policymakers is the sheer size of
foreign exchange need of the projects
in GTP II. For the most part, the core
infrastructure deficit in Ethiopia needs
a major foreign exchange investment
spending. From power to road or from
railway to telecom foreign exchange
nominated investment goods account
for the bulk of the overall spending in
these projects. But, foreign exchange is
one area that the Ethiopian economy, in
spite of its glaring GDP growth in past
decade, could not overcome. This is one
challenge that Costentinos Berhe (PhD),
lecturer at the Addis Ababa University
postgraduate program, sees as a
debilitating constraint for the growth
road-map. Finance, he says, especially
foreign currency is going be a chocking
challenge for GTP II as it was for the
first GTP.
Going back to GTP I, the plan clearly
forecast export earnings to be a grieve
challenge for the implementations of
the GTP I. In its defense, GTP I projects
for the countrys merchandise export
to pick eight to 10 billion at end of the
plan period on account of improving
commodity prices at the time and
prospect of manufacturing contributing
to the pool of merchandise export.
However, things were not that easy in
the export front. At the start of GTP I,
export scored 2.75 billion dollars which
grew to 3.15 billion in the next year
and remained suppressed around three
billion for the rest of the GTP I period.
According to government forecasts,
export earnings at the end of the GTP I
period will not be more than 3.2 billion
dollars.
To make matters more interesting,
GTP II as well went on a rampage
when it comes to targeting a 29 percent
annual increment in export earning
in five years of the second GTP. This
projected increment expects annual
export revenue to top 12 billion dollars
at end of GTP II period. According to
sources at the Ministry of Trade, the
overall export revenue projection for
the next five years that is done at the
ministry is much more less than what
appeared at the draft document of the
GTP II plan. Once again, the major
component of this project is the under
developed manufacturing sector. The
draft indicates that manufacturing is
www.thereporterethiopia.com
expected to generate some four billion
dollars annually at end of the GTP II.
When talking of manufacturing in this
plan, of course textile and leather come
at the forefront. And the two sectors
have missed their assigned targets
in each of the five years of GTP I. For
instance, between them (textile and
leather) were expected generate some
1.5 billion dollars annually in foreign
exchange revenue at the end of the GTP
I period. Nevertheless, these targets
proved to be unrealistic just two or
three years into the GTP I period. For
the first two years textile brought in
62.2 and 85 million dollars respectively
while last year it managed to fetch
barely over 100 million dollars (114.4
million). The leather as well did as bad
as textile finishing the GTP years with
132 million dollars missing the target to
generate half billion earning in the hard
currency. In general, the performance
of the manufacturing sector in terms of
export earnings was meager at its best
at 395.9 million dollars.
Zemedeneh is of the view is that
manufacturing export is one area
that the target has been missed by
the performance in the GTP I. He said
that the plan contained activities
that are critical for the success of
manufacturing. However, the ramp up
period has taken more than anticipated,
according to Zemedeneh, and that the
next GTP is where things would start
to bear fruit. For example, if you look
at the industrial parks, they started
coming in full force in the last two
years. Had we had the infrastructural
base for industrial parks say five years
ago, we probably would have them
by now, he argues saying that the
outcome would be different.
To put things into perspective, a
striking similarities between the
two GTPs, although GTP II is still in
its drafting stages, is that both have
relied on a foreign exchange that is
not generated and put their hopes
on a manufacturing sector which
is yet to become a formidable force.
Commentators say that without the
manufacturing sector maturing and
generating the needed dollars, financing
and an overall balance of payment
pressure looks to be unavoidable.
The balance
Nevertheless, the overarching focus of
GTP II looks to be manufacturing. When
talking about manufacturing, however,
the debate seems to be what direction
that the sector should follow. To be
more specific, the balance should be
made between having FDI firms leading
export in light manufacturing sector
or focusing on the local manufacturing
sector. This debate also looks to have
to an ideological and moral side to it.
In that, proponents of the local firm
based industrialization argue that
local companies are the ones that
should decide the fate of their country
industrialization process. A major issue
in this debate is track record of the local
The industrial... page 34
8| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |9
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Education in Emergencies
By Anthony Lake

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www.thereporterethiopia.com
10|| COMMENTARY
Ethiopia is an agriculture-based
economy and, with 94 million people,
the second-most populous nation in
Africa. The country has experienced
impressive economic growth of 10.7
percent from 2003 to 2012. However,
Ethiopias AGOA exports were a
mere USD 35 million in 2013. This
under-performance is something
that should be looked in to, argues
Samuel Addis Alemayehu.
VIEWPOINT
Ethiopia has seen double digit
growth for over a decade with
90 percent of GDP driven by
agriculture and other services.
However, the country faces several
constraints of which income
inequality is one. As a remedy
introducing wealth tax could
alleviate the problem to some extent,
argues Dawit Tadesse.
Reauthorization of AGOA: Opportunity
to boost Ethiopias exports
The African Growth and Opportunity
Act (AGOA) is a flagship US trade act
that was enacted in 2000 with a clear
objective of boosting US-Africa trade
relations. As such AGOA came as a
signature US Trade Act in providing
duty and quota free market access
to nearly 7,000 product lines for 40
African Countries. Since 2000, exports
under AGOA have increased more
than 500 percent, from USD 8.15
billion in 2001 to USD 53.8 billion in
2011. In 2015 the aggregate revenue
rose to USD 6.502 billion from AGOA
eligible countries of which AGOA
eligible products accounted for 45
percent of those exports. According
to International Trade Commission
(USITC), exports from African countries
to the US have more than quadrupled
in the stated times. In terms of job
creation 100,000 jobs in the US as well as
350,000 direct jobs and at least a million
indirect jobs in Africa were created
over the past fifteen years. Apart
from job creation, AGOA gets credit
for incentivizing African countries to
work towards protection of intellectual
property and human rights; combating
poverty, corruption and child labor and
working toward better healthcare and
education since the above mentioned
were criteria to remain AGOA eligible
countries.
Is it time to introduce wealth
tax in Ethiopia?
A wealth tax (also called capital tax,
equity tax, or net worth tax) is a levy
on the total value of personal assets,
including owner-occupied housing;
cash, bank deposits, money funds,
and savings in insurance and pension
plans; investment in real estate and
unincorporated businesses; and
corporate stock, financial securities,
and personal trusts. Typically,
liabilities (primarily mortgages and
other loans) are deducted, hence,
sometimes, called a net wealth tax. In
general, wealth tax is imposed on the
wealth possessed by individuals in a
country. The tax is on a persons net
worth, which is assets minus liabilities.
There is frequent misunderstanding
between wealth tax and income tax.
Wealth tax is the tax that is applicable
on assets or wealth of a person. Some
people are against it because we already
pay income tax on income earned; why
must we pay wealth tax on assets when
its accrued from the same income that
was already taxed?
For example, when we look at certain
countries experience, Iceland had a
wealth tax until 2006 and a temporary
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
African countries. Reports indicate that
close to 80 percent of all AGOA exports
come from just four of the 40 countries
(Nigeria, Angola, Chad and South
Africa). However, despite a decline in
the overall AGOA export the steady
expansion of apparel amongst non-
oil exports is by far consoling. In this
regard, Kenya, Lesotho and Mauritius
take the lions share of the total nearly
one billion US dollar exports. Apart
from the growing apparel and garment
exports, Africas manufacturing and
agricultural products export were
quite small over the past fifteen years.
However, when one see the matter from
the vantage point of Agriculture and
light manufacturing sectors growth
potential and their trickledown effect
in changing lives of ordinary Africans,
Africas failure in fully benefiting from
AGOA is lamentable. Be that as it may,
the case of Ethiopia is no different from
the rest of African countries. Despite
recent growth in its export through
AGOA, the figures suggest that much
homework waits to make a dent in
increasing its share. In 2014 Ethiopias
export stood at 111 million USD, a 24
percent increase from the preceding
year.
However, the recent reauthorization
AGOA for another 10 years has provided
Ethiopia and Africa yet another chance
wealth tax reintroduced in 2010 for
four years. The tax had a rate of 1.5
percent on net assets exceeding ISK
75,000,000 (the countrys currency)
for individuals and ISK 100,000,000 for
married couples.
Some other European countries who
have discontinued this kind of tax in
the recent years are: Austria, Denmark
(1995), Germany (1997), Finland (2006),
Luxembourg (2006) and Sweden (2007).
In the United Kingdom, property (real
estate) is often a persons main asset,
and is taxed. For example, there are
taxes such as the window tax of 1696,
Council Tax, and a new Mansion Tax
proposed by some political parties.
In India, the Wealth Tax Act of 1957 was
applicable from April 1, 1957. Wealth
tax is chargeable categories of persons
individual and company, chargeable
one percent of net wealth. It is not
applicable till wealth valued Rupees
(Indian currency) is =/- 30 lakh.
How wealth tax is important in
stabilizing marcoeconomy and
reducing conflicts that are awakened
because of income inequality in the
society
Vol. XIX No. 983
to make use of this opportunity to boost
export and overall competitions along
with other African countries. I argue
that, despite the fact that Ethiopia did
not make full use of the opportunity,
the extension of the mandate could
yet open another opportunity for
Ethiopias booming manufacturing
sector. This is all the more so since
Ethiopia has developed AGOA National
Response Strategy. In what follows, it
is also argued that Ethiopias overall
development and efforts made in
overcoming key obstacles in the export
sector could leapfrog Ethiopias benefit
from AGOA
To begin with, as in many African
countries, Ethiopias challenges
in effectively utilizing AGOA and
accessing US market is mainly tied
with supply side constraints and
logistical impediments. In this regard,
problems relating to infrastructure
gap, marine transport and logistics,
hefty costs of branding of exports
and absence of direct air transport
connection had hampered exports
from Ethiopia. Stringent US market
requirements in sanitary and
phytosanitary requirements and rules
of origin had also their own share in the
underutilization of AGOA. However,
5HDXWKRUL]DWLRQRI$*2$SDJH
In the economic sense, wealth tax that
decreases other tax burdens, such
as income, capital gains, sales, value
added, and inheritance increases the
time for investment and can increase
the return on investments over that
time. The increased time horizon of
investment results from the competition
for investment between the risk-free
asset of modern portfolio theory and
commercial assets. The higher return
on investment results from the removal
of taxes on profits.
In addition, removal of taxes on profits
reduces the lower and the middle-class
society tax burden. By unburdening the
poor and middle-class of taxation, while
stimulating investment in commercial
assets that create demand for labor, and
more financial resources in the hands
of the poor and middle-class would
reduce their reliance on government
delivery of social goods, such as
improved educational opportunities
for their children. This would promote
social mobility, which means more
citizens reach their full potential of
productivity, thus improving the
,VLWWLPHWRSDJH
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |11
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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
Recently, the Ministry Of Foreign
Affairs announced that a nationwide
Diaspora Day from August 12-16, 2015
is scheduled to be celebrated. In that
regard, the government gave a detailed
picture on how it plans to strengthen
ties with the Diaspora community.
Similarly, a lot is expected from
Ethiopians in the diaspora, argues
Benyam Ephrem
Advertisment

 
***
Why has our diaspora failed
to transcend?
The same time China is accused of
being one of the most repressive
regimes in the world by the West,
Chinese diaspora, returning from
western countries, are lifting the
status of Chinas academics, health
and technology. Two years ago, the UN
Chronicle, a magazine of the United
Nations shared its knowledge of the
Chinese diaspora: In the education
sector only, statistics from the Ministry
of Education show that 78 percent
of the presidents, 63 percent of PhD
advisers in Chinese universities
directly administered by the Ministry of
Education, and 72 percent of directors
of key laboratories at the national and
provincial levels are returnees.
These returnees are now engaged in
helping China integrate with the world
in policy design and in the practice of
these policies.
What has happened to the already
fragmented Ethiopian diaspora abroad?
Why are they obsessed with the mantra
of human rights or freedom of speech,
but not transcend beyond it? Are they
doing justice?
The intention of this opinion is not
to sympathize or agonize with the
diaspora, or the government for that
matter, and not in any way imply
OPINION |13
that the diaspora is wrong/right or such truth. Looking at African ethics,
the government is right/wrong. It which puts more emphasis on duties
goes beyond that; beyond right and of social wellbeing than right, is being
wrong, beyond true and false; beyond relativized to Western ethics but
government and politics. narrated systematically unnoticed. The
revolutionary vehicle of the 1960s and
The writer wants to remain apolitical in
70s was political truth, which did little
this commentary.
justice to the Ethiopian people, meaning
Apolitical because the problem with the truth was not justice. This vehicle is
black political discourse is, it gives the still used as a means of addressing
speaker a false sense of doing justice national problems in the diaspora.
just because he or she speaks political
This is the problem with African
truth. But justice is not always the
diaspora. They seem to be cursed of
truth; its, perhaps, a reflection of being
either singing their Lawinos song,
true, a verisimilitude. The Ethiopian
which tells them to Stop despising
diaspora has put all the blame on
people Stop treating me like salt-
the government, ascribing to it a
less ash, Become barren of insults
compendium of complaints, engrossed
and stupidityalong with the big
with hatred and in the name of justice,
question: But who has ever uprooted
for almost two decades at the expense
the pumpkin? or by domesticating
of the alleged withering of human lives,
his song; basking in the bloody fun of
the droughts and famines and other
yesterdays socialism and in the crafty
calamities. This political vertigo is
abstracts of todays human rights. One
so blinding that it falsely escapes the
was preached universal yesterday and
illusion of time.
the other more universal today.
The diaspora should make it less
The dis-easment of Africa is a
personaltranscending ones political
continuum of outlandish mimicry.
truth to a higher understanding
It is only when one lend his ears
of cultural truth that emanates
to his own truths that he can take
from the perfect understanding of
notice of intellectuals like Mutua,
the profound societal truth. The
definition of justice in the light of
black conscience should come from Why has our... page 30
BAMBIS NEWS



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www.thereporterethiopia.com
14| COMMENTARY +
The recent xenophobic attacks in
South Africa Africa has revealed
that Africa has failed to go beyond
the physical, economic and political
survival impulses. Many African
countries and the African Union
have not been concerned with the
irreplaceable role of cultural survival
though education, art, languages,
music and so on, argues Nurye
Yassin.
VIEWPOINT +
Ethio-Sudan economic relationship is
growing in an unprecedented manner.
By working together and creating
stronger bonds, Ethiopian and
Sudanese businesses, investors, and
tourists can playing a pivotal role in
enhancing the bilateral relationship,
argues Zekariyas Talo Anjulo.
What retrenches the pace of South
Africas Long Walk to Freedom: Afro-
phobia or Afro-phone?
April 2015 was a gloom month for
Africa; Africans were blown away by
the horrific terrorism and xenophobic
attacks from Libya down to South
Africa. It was quite telling of how
the continent is facing emerging
challenges amid the ongoing tussle with
the aftereffects of the dehumanizing
imperialist elements of slavery,
colonialism and apartheid.
Blinded by the aftereffects of apartheid,
most importantly the incessant
and unaltered economic and social
apartheid system, the violence
perpetrated by many black South
Africans ended temporarily with the
killing of seven African migrants.
Appallingly, even though their cause of
black impoverishment was mislaid on
African migrants, the violence was met
with meager government attention and
intervention. This gave way to many
more African migrants being injured.
Many of their small businesses and
stores were also looted and incinerated.
Woe and sadness engulfed the streets of
the various cities of African countries.
Despondency and despair took hold of
the minds and hearts of pan-Africanists
and the diaspora all over the continent.
Albeit the condemnation of the attacks
by President Jacob Zuma of South
Ethio-Sudan growing ties paving a
way towards economic integration
The history of Ethiopia and Sudan
exhibits age-old political, economic,
social and cultural bond. The two
countries destiny as one of the oldest
nations in Africa is cemented by the
eternal sealthe Nile Riverand the
people living in both sides of the border.
In other words, the Ethio-Sudan kinship
goes back to the ancient civilization
of mankind, Axum and Merowe,
marked by early contacts of trade and
movement of people. The annals of the
history of Ethiopia and Sudan are also
filled with stories of competition and
vying for power.
However, despite the long history,
the commonalties that beget age-old
bond had never yielded progress and
fraternal relations to the people of the
two nations. In the modern history in
particular, the last Solomonic Dynasty
and the brutal military Derg regimes
foreign policy and strategies, which
took Ethiopias neighbors as historic
enemies, failed to nurture the historic
relation between the two nations.
Worse still, the siege-mentality that
sprang from the view that considers
our neighbors as nemeses, forced
the two countries into a destructive
policy of harboring and supporting the
others rebels until the downfall of the
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
Africa, and the Chair of the African
Union Commission, Nkosazana
Dlamini-Zuma, many migrants,
dismayed by the delayed government
intervention despite the rhetoric of
African unity and integration, left the
country. Similar to the western world,
particularly Europe, South Africa took
the baton of the unity and integration
project through the philosophy of pan-
Africanism and African renaissance
and, inadvertently, ushered in
xenophobia in the vocabulary of
African politics; xenophobia which has
never been witnessed in the annals of
the rest of the African continent and has
also been alien to the black race.
Afro-phobia
Sadly, the inability of black South
Africans to look into the structure,
system, and direction of their country
has paved the way for the death of
African migrants. This inability poses
one important question: What has
eroded the spirit, logo and hope of
the capital of Ethiopianism, African
Renaissance and pan-Africanism
hyped by the founding fathers of the
Organization of the African Unity
(OAU)/African Union (AU)? What
has kept them from looking back at
the sacrifices fellow Africans made
Derg regime in 1991. In other words,
the idiom the enemy of my enemy
is my friend became the hallmark
of the relationship between the two
countries. The fact that Ethiopias
foreign policy was also underpinned
by ideological outlook during the
Marxist-Leninist Dergs rule while its
predecessor Haileselassies imperial
rule was dominated by religious view
also contributed to the deterioration
of relations. Beating war drums and
back-stabbing prevailed in those
times instead of treating each other in
principles of mutual benefit and a win-
win approach.
However, after the downfall of the
regime, Ethiopia saw a paradigm
shift in its foreign policy approach.
Militarism and siege-mentality driven
foreign relation was replaced by a
forward-looking policy that upholds a
win-win approach and mutual benefit.
As a result, since 1991, Ethiopia has
given due attention and prime focus
to engagement with its neighbor
countries, Africa as a continent, and
South-South cooperation in general.
As it stated in the current Ethiopian
foreign and national security document,
Ethiopia places utmost consideration
to working closely with its neighboring
Vol. XIX No. 983
when South Africa was chained by the
shackles of apartheid?
This situation precipitated me to look
at what made the youth of South Africa
chase away African migrants and
forget the continents political, military
and financial contribution to South
Africas struggle against apartheid and
struggle for survival and development.
Nelson Mandela, in his autobiography,
Long Walk to Freedom, p.402,
underlined how the political, military,
psychological, spiritual and cultural
dimensions of Ethiopianism had
inspired him and his compatriots
in his fight against apartheid and
colonialism, stating, Although it
had been conquered dozens of times,
Ethiopia was the birthplace of African
nationalism. He also went on to note,
Ethiopia has always held a special
place in my own imagination and the
prospect of visiting Ethiopia attracted
me more strongly than a trip to France,
England and America combined. I felt
I would be visiting my own genesis,
unearthing the roots of what made me
an African.
Mesfin Woldemariam (Prof.), an
Ethiopian critic and writer, notes, A
What retrenches... page 30
nations to promote trade, investment,
development, and infrastructure with
a view to hasten economic integration.
It also strives to promote peace and
stability in the sub-region that is long
known for civil strife and conflict.
The policy underpinning Ethiopias
strong stance in economic integration
and promotion of peace and stability
springs from the view that development
of Ethiopia is intertwined with the
development of its neighbors. Hence,
it is in Ethiopias best interest to grow
together and ensure the peace and
security of the region.
Due this policy shift, Ethiopia and
Sudans bilateral relation has seen
dramatic change. Over the past decade
in particular, the two sisterly nations
were working together to elevate
their relation in bilateral, regional,
continental and international levels. In
recent years, the cooperation has taken
the form of increased volume of trade
and flow of foreign direct investment,
all indicating a positive movement
towards regional integration.
Technology transfer, experience
sharing, strengthening people to people
and relations, and cultural exchange
(WKLR6XGDQJURZLQJSDJH
 OPINION + |15
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983

Why is IGAD putting a lot of trust in

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

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
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,
including Germany
during the Nazi period,
South Africa under
apartheid, and many
states in the United
States prior to a 1967
Supreme Court decision.
In Ethiopia interracial
marriage is also taking
place and there are those
who oppose the union
while others say it is love
at the end of the day,
writes Henok Reta.
Appraising interracial wedlock
Chuchu Girma (name changed), 30,
has had a sour struggle to overcome
the hardship that resulted from her
marrying a foreigner. She met him
at Addis Ababa University five years
ago when he bumped into her while
he came to the university for an
internship. Since Chuchu was studying
English Language and Literature at the
University, the friendship she made
with the British guy was fortuitous, at
least for the moment.
I never thought I would be having a
relationship with him until he asked
me to hangout, she says. We did it
enough times that a special relationship
developed.
A year after the inception of their
relationship, her foreign boyfriend,
whose child she gave birth to after
their unregistered marriage, left for
his country. Despite his promise that
he would make his marriage legal as
soon as he returned, he kept silent for a
month.
I emailed him so many times and
called him at the number he left,
but it turned out to be [a deliberate
rejection], Chuchu says.
Despite the unbearable hardship
of raising her child alone, she has
now managed to embark on another
relationship. But this time she is with
an Ethiopian partner who is also
supporting her in starting her own
small business.
My life has been redeemed thanks to
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
God and my family who changed their
minds to see me again, she says.
Nevertheless the psychological trauma
she suffered from being rejected by her
foreign fianc will never be healed, as
well as the fact that many of her friends
and family members misunderstood
her.
Almost everyone thought I was
infatuated with him and was only
looking for money, Chuchu says,
explaining the misconception people
had towards her relationship with the
foreign husband.
That, indeed, was the reason they had
chosen not to help her out from the
aftermath of her breakup. She quit her
study, left home and served as a maid to
raise her baby boy.
The most painful thing I experienced
was when some of my close friends who
witnessed our relationship claimed I did
it deliberately for the wild excitement,
she says.
For many Ethiopians, interracial
dating is a strange experience, though
many have been practicing it openly.
Since many years ago, Ethiopians have
been marrying foreigners; politicians,
artists, singers, sports-personalities
have been marrying foreigners.
Despite the universal image interracial
relationships has Ethiopians have their
own understanding of the concept.
According to psychologist Estifanos
Abera, the contrasting image interracial
marriage bears in Ethiopia is due to the
Vol. XIX No. 983
societys impenetrable manner.
Since the country has long isolated
itself from invaders and foreigners,
the deep rooted indigenous cultures
enormously shape the psychology, he
states.
Nevertheless, this might not be a proper
argument in the current time when the
country is open to all, irrespective of
race. As a result, interracial dating or
marriage may not be something of a big
deal, Estifanos explains.
Perhaps because the majority of the
population has long perceived marrying
a foreigner as money making,
the societys reaction to interracial
marriage might remain unchanged. The
patriarchal view of women as dependent
on their spouses might have caused
this money making status. However,
many repudiate this reasoning due to
the growing number of Ethiopian men
dating foreign woman.
It has always been a rude and
uncivilized approach to conclude that
having a foreign spouse, especially
a white one, is for money, Dawit
Gebrekidan, a bridegroom says.
He married a Dutch woman a month
ago. He assures that only love can
bring couples together in marriage. In
an attempt to help cultures connect,
he brought his wedding party home.
According to him, bringing the wedding
to Ethiopia resulted from a common
interest between him and his spouse
who was keen on discovering a new
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
015
culture outside the Netherlands.
Dawit, who earnestly insists that the
negative attitude towards interracial
marriage is weak, feels the time ahead
will see it as something that clashes
with human rights. He further states
that his international marital status has
helped him experience what he calls a
captivating difference with the people
he had lived with for more than seven
yearsthe Dutch.
Now, its my turn to show off, he says.
He explains the importance of having a
wedding party in both cultures. Unlike
him and few others, many Ethiopians
marrying foreigners (fernejis)
rarely have a party in Ethiopia. The
reason behind this, which is quite
problematic, is due to some fearing the
dissatisfaction of parents and relatives,
making the prospect of a wedding
aboard would be the easier option.
I know some friends who had a
wedding party abroad when they were
able to do it here, Dawit said, pointing
out the reason people steer away from
hosting a party at home is nothing but
lack of confidence.
To the contrary, Chuhcu, who
would have celebrated her
wedding at home had she
not been betrayed by her
fianc, doesnt believe
there is a lack of
confidence with the
youth.
Look at those
young ladies who
walk in the streets
holding hands
with their foreign
counterparts. How
many of them
show a sense of
hesitation? Do you
think they would
feel ashamed of
having a wedding
party then? she
asks.
In fact, there is
nothing to feel
ashamed about since
a number of prominent
individual were in
interracial relationships
and marriages before. Chuchu,
in this regard, mentions her
inspirational woman, Azeb Worku
who is married to a French man.
Actress, playwright, and theatrical
director, Azeb is believed to have
been an inspirational idol for those
women who have relationships with
foreigners. In fact, several other
prominent men in Ethiopia have also
been married to foreign women. Former
President Negasso Giddada (PhD)
married a German woman and Tewolde
Gebregziabher (PhD), prominent
researcher and conservationist,
married a woman from the UK.
For many, these individuals can serve
as role models for young Ethiopians
who might feel a burden. However, the
assumption of this burden could turn
out to be inconsistent, especially when
one visits the nightclubs and hotels in
Addis these days. Undoubtedly, it marks
the conclusion of the era of societal
influence or cultural burden in regards
www.thereporterethiopia.com
LIVING & THE ARTS|17
to interracial relationships. Both men
and women of Ethiopian nationality can
easily keep in touch with their foreign
partners.
I live in the 21st century. Why should
I worry about it? Abiy Getachew, 29,
asks.
Since he is in love with his German
girlfriend, he freely calls her to ask her
to join him wherever he goes.
Im not sure yet, but hopefully we are
getting married soon, he says.
In fact, Abiy is not the only one in this
position. There are many young men in
relationships with foreign women and
who share the social backlash. Even
though more young men are said to be
in interracial relationship for unseemly
reasons, particularly in tourist
Almost
attraction sights, It is unwise to judge
them as opportunistic at all. According
to tour chauffeur Samuel Terefe,
everyone
hundreds of young men who opted to
do his line of work might be trying
to take advantage of the various
thought
visitors and marry a foreigner
for a better life, but it does
not mean all who do it
I was
have the same goals.
Several websites and
the media have long
been advertised
Ethiopias
charming beauty
infatuated
and foreigners
have their
vacations,
with
tours and
business
travels in the
him and
was only
country, now
more than
ever, opening
looking for
the door to a
relationship
that might
money,
result in dating
or marriage.
Assessing
the impact of
globalization and
interracial interaction,
some nationalists warn
that it would infulence
culture and Ethiopian values
the end. When some would
make it a lasting relationship with
foreigners, many would find it a state of
solitude and subjugation resulting from
language barriers, exotic traits and,
sometimes, cultural differences.
I have encountered some cultural
differences several times at the places
where I hang out with friends, says
Seyoum Zeleke, an engineer-in-training.
Having experienced a couple of
those incidents, which he refers to
as cultural differences, he has
now begun changing his mind that
interracial dating is unacceptable.
Despite the growing trend of interracial
dating and marriage in Addis Ababa,
there are some commentators who say
that it is something slowly creeping in
the Ethiopian way of life.
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
Last Wednesday, Yahoo News reported
that scientists have found a gene that
could make it easier to feed more than
half of the worlds population. The
scientists said that the new mutations
could lead to longer and better quality
rice production to feed more than
3.5 billion people across the world.
This report came just a day after the
United Nations Food and Agriculture
Organization (FAO) officially launched
the 2015 State of Food Insecurity (SOFI)
report in Addis Ababa for the Africa
region. Overall, the report appeared
to be featuring a brand entitlement
that reads, Africa Food Security
Prospects Brighter Than Ever. That
motivated Allahoury A. Diallo, FAO
representative in Ethiopia, to call upon
the organizers to rewrite the logo of
the conference from Food Insecurity
in Africa to Food Security in Africa
during his speech.
In fact, he might have been right, at
least for the reason that the region has
begun applying several policies and
strategies to cope with the infamous
drought and food deficits of the past
decades. For instance, Ethiopia, the
most populous nation in the region,
has gone through various dependable
measures over the past decade to deal
with its historic rival-famine-while
other countries in the region also took
a huge step in reframing policies and
strategies. This success story that
resonated from FAOs recognition
for halving the proportion of hungry
people across the continent, fulfilling a
Millennium Development Goals (MDGs)
target, could have ignited aspirations
to take on the remaining loopholes.
However, pundits state that it doesnt
seem to be an easy task to effectively
carry out unless more political will

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

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

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

www.thereporterethiopia.com
20| LETTER TO THE EDITOR
Subduing Eritreas rogue behavior
Dear Editor,
Prime Minister Hailemariam Desalegn,
responding to MPs questions this
week, covered a wide range of issues
including the economy and foreign
policy and relations with neighbors.
He underlined the reaffirmation of
Ethiopias principled stance over
regional peace and resolving problems
through dialogue. He highlighted
Ethiopias single most important
and valued foreign policy objective:
ensuring a peaceful and stable region
and realizing the achievement of
cooperation and partnership to lead to
economic integration. This, he said,
was the sine qua non for the realization
of development in the fullest sense of
the term. He hailed Ethiopias growing
ties with its neighbors as a very clear
indication of the success of Ethiopias
foreign policy. There was, however,
one exception: Eritrea, a pariah state
led by a rogue regime hell-bent on
destabilizing both Ethiopia and indeed
the whole region.
Despite this, Prime Minister
Hailemariam repeated what Ethiopia
has been saying ever since the end of
the two-year border war instigated by
Eritrea in May 1998: that it was ready
to resolve any differences through
dialogue and round table discussions.
It is an unequivocal testament to
Ethiopias position that it is ready to
go the extra distance for the sake of
bringing enduring peace between the
two countries. The Prime Minister
described the destabilization attempts of
the regime in Asmara as a futile attempt
to externalize its internal problems.
These have led to the hemorrhaging of
the nation with hundreds of thousands
of Eritreans reluctantly fleeing their
beloved nation to escape apparently
endless repression and human rights
violations at home. He emphasized
that Ethiopias policy towards Eritrean
refuges is imbued with a sense of
brotherhood. Ethiopia was, he said,
prepared to support Eritrean refugees
as well as those from other neighboring
countries in trouble. His comments
reflected deep sadness over the
appalling situation the Eritrean regime
attempts to perpetuate.
His statement, in fact, was a plea for
peace with the additional caution
that if Ethiopia is forced to defend
itself, it would only be as an exercise
in self-defense - forced to defend its
sovereignty. Ever since the Ethio-
Eritrean Border Commissions decision
Rethinking growth
Dear Editor,
After spending their careers in a single
minded pursuit of growth, business
leaders have to adjust their mentality.
Some CEOs, are telling their people
that they should go for market share
against competitors by focusing on a
single portfolio whose condition could
be unraveling. However, 20th century
business performances indicate that
new ways ought to be employed.
In all sector of business with in an
economy, moving to enhance the
on the border ruling was delivered
in 2002, Ethiopia has consistently
extended an olive branch to Eritrea,
persistently calling for comprehensive
negotiations on the basis of its Five -
Point Peace Plan of 2004. Ethiopias
offer for a dialogue was based on the
intrinsic desire to iron out differences
and lay the ground for a sustainable and
durable peace. The stalemate, however,
continues as Eritrea has remained
bitterly opposed to any dialogue. Its
intransigence has been described as an
allergy to persuasion, as Sally Healy,
a researcher in the Horn Affairs has
described it.
Indeed, Eritreas foreign policy is often
described as bizarre; and it certainly
remains an enigma even to those who
have closely studied the regime. Given
its relentless efforts at destabilization,
it is clear that one central element
over the past decade is the lack of
the word peace in its vocabulary.
This certainly raises the question as
to what the purpose behind Eritreas
continued efforts to pick fights with all
its neighbors and use aggression as a
basic element of foreign policy is. What
underlies the regimes assumption of a
delusion of permanent victimhood? It is
a subject that requires investigation.
A central element of Eritreas
behavior appears, for example, to be
its determination, irrespective if any
evidence in support, to defend itself
from a purely imaginary invasion from
Ethiopia. The Governments standard
response to any problem that surfaces
in Eritrea is that this is necessary in
order to defend Eritrea from a possible
invasion from Ethiopia. Be it an
economic problem, the endless national
service, the lack of a constitution or
of any democratic development, the
ready-made answer is hey! We are
facing imminent invasion. The whole
faade of this delusion is terrifyingly
reminiscent of Orwells 1984 in real
life. The delusion of war and the siege
mentality that Big Brother aims to
perpetuate are augmenting the isolation
of the nation by the day. Thousands are
dying as sacrificial lambs as a result of
this delusion of defending the nation
from a belligerent Ethiopia. This
is being conducted under the slavery
imposed upon them in the guise of
national service.
The delusion that the Eritrean
Government suffers from has
transformed itself into an entity
synonymous with lawlessness and
sector share due to an ever increasing
completion is the core of the need to
increase market share. And it is always
viewed from the vantage point of
profitability and cash efficiency. This
concept of growth allows companies
to maintain their strategic position as
long as they settle their short-term and
long-term obligations and distribute
dividends from the net cash income
they generate. It is a plus to the capital.
Adequacy of capital for any business
through effective strategy may help
companies exist in a certain economy.
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
contempt for the accepted norms of
international relations. The blindness
of Asmara to the realities of the life it
has imposed on Eritreans was exposed
in its response to the UN Human Rights
Enquiry in which it criticized the
report as an attempt to denigrate its
sovereignty. Looking at the frightening
catalogue of human rights abuses
identified in the report, all these, it
looks as though Eritrea is shadow -
boxing with invisible satanic forces.
No sane government would present a
minor border dispute as justification for
upholding an atrocious reign of terror.
Such an approach suggests the mind
of a man troubled with dark forces,
suffering from severe paranoia and
losing touch with reality.
Such delusions are also apparent more
generally in Eritreas external relations.
Its schizophrenic behavior is apparent
in the leaderships frenzy of lawlessness
adventurism that has turned this small,
youthful nation into no more than a
military garrison. The insanity of the
Government is vividly manifested in
its attempts for the acculturation of
militarism through endless recruitment
of the youth into an endless saga
of national service. The barrage of
propaganda celebrating a (false) image
of a mighty Eritrea standing up against
the CIA, the US and any and all other
powers, evokes sad memories of the
catastrophic adventurism of the evil
axis powers during the Second World
War. Eritreas worship of the power of
the gun is pure cult of the voodoo, and
is producing a culture of militarism,
arrogance and adventurism.
The love of the gun, and its reckless
adventurism, has led Eritrea to spend
its meager resources to organize and
arm a feeble patchwork of Ethiopian
rebels. Blind with its hegemonic
aspirations, constructed on visions of
military might, Eritrea has never even
propaganda of defending a nation from
bothered to consider whether these
forces might have any commonality of
interest with Eritrea, or what might
happen if these groups, by any stroke
of magic, managed to usurp power
through the barrel of the gun. Eritreas
regime, which prides itself as the
guru of armed struggle, never seems
to have given any thought whether
this patchwork of desperadoes is
worth supporting. It never seems to
have bothered to find out that some
like the OLF or ONLF are apparently
fighting for secession while the likes of
Arebengoch Ginbar are harping on the
But it is not a guarantee in uncertain
economies. The 21st century requires
us to rethink growth from every
dimension of business. We should
gain market share without consuming
disproportionate amount of net cash in
the form of more inventory, extended
duration of account receivable and so
on. If so, it is a null and void strategy
that will gradually close the business. If
the strategy fails, we cannot maintain
customer satisfaction and the business
would not survive.
Profitability, increasing market
Vol. XIX No. 983
old tune of One Ethiopia, an Ethiopia
which would actually include Eritrea
again!
The delusions of the regime become
clearer the deeper one goes into looking
at the relationships of these bandit
groups with the regime in Eritrea.
During the past decade, Eritrean
security operatives have incarcerated
many of the rebel leaders of groups such
as Arebengoch Ginbar and the OLF.
Eritrea has repeatedly manipulated and
divided these groups, changing their
leaders and controlling their activities.
It speaks volumes about the behavior
of the regime whose support for such
Ethiopia rebels is no more than a mere
puppet show driven by a frustration to
see Ethiopia destabilized. It is a far cry
from any meticulous design to nurture
a potent independent rebel force that
has a vision, a program or an effective
organization. In other words, the
whole faade of arming rebels is part
of President Isayas self-delusions. He
has no interest to see an independent
Ethiopian rebel force, only to create
forces that can be moved with strings
like a puppet show behind the curtains.
Despite this involvement with
Ethiopian groups, the checking of
Eritreas delusions and bringing it to
its senses is for Eritreans and Eritreans
alone. As Prime Minister Hailemariam
said, Ethiopia will only be forced to
define and defend its sovereignty if
Eritreas frenzied jaywalking crosses
into Ethiopia. If that happens, then
Ethiopia would need to take action
to check Eritreas head-on collision
with reality. To call Eritreas internal
and foreign policies as no more than
misguided is a real understatement.
It is far more a chronic sickness born
of faking reality, and a masquerade
of perpetuated militarism and wild
adventurism. Fifteen of the black
imminent invasion have long been
proven to be a lie. Prime Minister
Hailemariams statement is just
another piece of evidence to lay this
mirage bare. Eritrean propaganda
is a cacophony of delusions echoing
a purposeless foreign policy, an
amateurish placebo aimed to uphold the
regimes hallucinations, and a ruse to
allow its leader to continue to exercise
his iron grip on power.
Kidane Amdemariam
Addis Ababa
share and cash efficiency all steam
out from giving value to customers,
having an effective business process
and integrating ICT and human asset
development. In that regard, it is a very
crucial to rethink growth by giving a
special attention to valuing customers.
Asseged Gebremedhin
EMBA, BA Accounting, BA Marketing,
CII Insurance
Manager Retain Business
Ethiopian Insurance Corporation
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|
TOUCH
Never rude by accident
V.S. Naipaul was traveling through
India. And some local told him the story
of the Nepalese guy. There was this
guy from Nepal who had all sorts of
bloodcurdling experiences in his home
country. So, he migrates to India and
earns his keep as a night watchman
for one of the high-rise buildings in
Bombay, present day Mumbai.
Whenever he drinks beyond a certain
point, bad memories from the old
country flood his mind and he would
startle his drinking companions with
a resolute Everybody should be shot!
Everybody should be shot!
May be we dont go to such extremes
as the Nepalese fellow. But there are
times when we all feel a bit that way.
Our wrath is unleashed because of some
action taken or some words said by
someone. Fortunately, a majority of us
experience such moments of clouded
judgment on the rarest of occasions.
And in some cases, a diluted form of
wrath, a disappointment, takes hold of
us because of, again, some action taken
or some words said by someone. Our
basis today is the speech Hailemariam
Dessalegn (Prime Minster) made to
parliament this week.
If you are not in any position to rectify a
misstep by someone like Hailemariam,
its only natural to resort to some
sort of mechanism to allay your
misgivings. Impertinence is one of those
mechanisms.
Gentlemen are never rude by
accident. We have two reasons for our
impertinence today, in addition to the
obvious one of reassuring ourselves
that we are doing something important.
The first polite reason for our
impoliteness is: it is a citizens
prerogative to besmirch his ruler.
The second reason is: how else to test
the limits of freedom of speech unless
by stretching it to the extent of lse-
majest?
For these reasons and so as to appease
ourselves, let us scrutinize only two
points made by the prime minster.
Apparently, he made more points than
two. But as is always the case with him,
what was said was less interesting than
what was left unsaid. So, we restrict
ourselves to two points only.
The first point is: Ninety-percent of
all transportation projects in the city of
Addis Ababa have been completed in a
timely manner.
Considering the lack of adequate
repairs to existing roads and the
increasing number of road projects
that are left unfinished, not very many
people are persuaded by this.
First of all, it is never advised to use
quantitative descriptions to describe
such matters. Numbers can be
misleading.
Four females and four males apply for a
position at some company. There is only
a single vacancy. The only candidate
who was qualified for the position,
a male, is hired. If you are some sort
of feminist and want to make a point
about the oppression of women, you
would most definitely highlight the
fact that one-hundred-percent of female
candidates were rejected.
But the fact remains, the vacant
position was filled with the candidate
who was one-hundred-percent qualified.
Prime minster or private citizen,
depending on your politics, you would
report the numbers most advantageous
to you.
Considering our societys track record
of misreporting numbers for political
gains, I would be very skeptical of any
percentage whatsoever. It is not at all
possible to ascertain if, as the PM says,
only ten-percent of road projects were
not completed on time.
When considering road projects, where
a project to construct one stretch of road
ends and the other begins is especially
important. I am very familiar with
Akaki road as it is the route for my
daily commute. So, I will restrict my
demonstration to this area.
The Akaki road is the most strategic
road emanating from Addis Ababa. This
is the major inlet into and outlet out of
the city. Hundreds of vehicles making
the trip between Addis Ababa and the
Port of Djibouti must use this road
daily. Discounting commuter vehicles,
some put the number of heavy-duty
transporters that use this stretch at
about five-hundred a day.
There has been a project to repair
the segment of road from the CCRDA
roundabout to Kaliti Prison for two
years now. There has also been another
project to repair the stretch from
the prison to Menaheriya for about
the same time. The two stretches are
successive.
Now, depending on how we classify
the projects, we will get completely
different statistical results for their
completion. We can consider the two
stretches, CCRDA to Kaliti Prison
(2km) and Kaliti Prison to Menaheriya
(3.5km), as two projects or simply as
sub-projects under the same project,
two-project scenario and one-project
scenario, respectively.
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
& go
By Daniel Teshome
The average completion percentage
of the entire stretch in the two-project
scenario is simply the average of the
completion percentage of the two
projects. The average completion
percentage of the entire stretch in
the one-project scenario however, is
dependent on the percentage each
stretch accounts for in the total.
We will not work out the mathematics
here. But it should be noted, the
shorter stretch contributes a smaller
completion percentage to the total
than does the longer stretch. Under the
two-project and one-project scenarios,
you get very different average results.
Because of the political point he wants
to score, I wouldnt put it beyond the
prime minster to report the bigger
number.
A qualitative description - some road
projects were completed on time and
others not if nothing else, would have
been more honest. But if percentages be
insisted upon, here are some.
Akaki road is one-hundred-percent
riddled with potholes and ridges. These
ridges are one-hundred-percent not
caused because of temperature-induced
variations in the layer thickness of
the asphalt over an extended period of
time. They are one-hundred-percent
caused by mediocre asphalting from the
get go. Every pothole is one-hundred-
percent a trophy for every year a road
is overdue for repairs. It is zero-percent
exaggeration to say that you find so
many potholes and ridges that you miss
the road.
Never mind a poor, bureaucracy-
infested nation like Ethiopia, not even
in the most advanced west European
countries would a sensible politician
make such a grand claim as ninety-
percent on-time completion. Thats that
for the first point.
The second point the prime minster
made was in regards to Eritrea: The
Eritrean people are suffering because
of the internal policies of the current
government; they are migrating in their
hundreds-of-thousands.
This government seeks to destabilize
the region to divert attention from
its failed internal policies. As a law-
abiding member of the international
community, it is a moral duty for us to
take all measures necessary to defend
ourselves from such government, with
the Ethiopian peoples permission or
something to that effect.
Firstly, the suffering of the Eritrean
people is true enough. Also true
is the suffering and migration of
the Ethiopians. And these are the
Vol. XIX No. 983
people this prime minster is directly
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
at your own house.
Secondly, Hailemariam cites the United
Nations Human Rights Council report
on Eritrea to make his claim. How
about the report produced by the same
body on the situation of human rights
defenders in Ethiopia?
The government has always accused
the council and other humanitarian
institutions of advancing a hidden
agenda when they report on Ethiopia,
but it quotes them freely when the talk
is Eritrea hypocrisy in plain English.
Thirdly, the right of self-determination
of the Eritrean people would be nullified
if their right to a better government
was predicated on the whims of another
people.
In solidarity with the people,
Ethiopia should assist Eritreans
establish a government that would
fulfil their peaceful aspirations. But
they absolutely have to ask for such
assistance. Change has to be led by the
Eritreans themselves. The Ethiopian
army has no business in Eritrea,
otherwise.
Any alternative that prioritizes the
military aspect of matters over their
political aspects is bound to fail. Direct
military action taken by Ethiopia will
bring nothing but disaster. Derg failed
for this reason. This Hailemariam
shouldnt make the same mistake that
Hailemariam made.
Fourthly, the prime minster said his
government may take action against
Eritrea with the peoples permission.
Even when a war with Eritrea is
unnecessary, the Ethiopian government
may still choose to attack. In that event,
the permission of individual Ethiopians
is just redundant.
The government can engage with the
Eritrean issue however it chooses. The
peoples representatives are always
there in parliament raising their hands
in unison to endorse anything. In fact,
so much is their commitment to endorse
anything, even those who sleep through
entire discussions always manage to
wake up at the right moment to raise
their hands.
Kim Jong-Un betrayed his impatience
when he had his general executed for
sleeping through a discussion session.
He could have just waited to the end to
see if the guy would wake up and raise
his hand.
Ed.s Note: Daniel Teshome is a
current affairs commentator for
The Reporter. He can be reached at
tekludt2012@gmail.com.
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
Advocating...
One vision laid under GTP II for
the manufacturing sector is the
attainment of the production
possibility frontier. Can you tell me
what that signifies?
Regardless of the definition, what it
means is, we will need to operating at
the cutting edge of global competition
For that to happen, Ethiopias
manufacturers have to be innovative,
adaptive, price competitive and
efficient. You need to be at the cutting-
edge even if you are producing some
basic stuff. And I think that is where
the Ethiopian manufacturers need to be
at. In this regard, there is a lot of good
trends we are seeing here. We see a lot
of multinationals coming into Ethiopia.
The industrial parks are now full. I
know a number of clients of ours, big
multinationals, that are waiting for Bole
Lemi II to open so that they can move
in because the first one is completely
full. These global manufacturers bring
in their know-how, their linkages to
the global supply chain. They will
make Ethiopia on the cutting-edge of
competitiveness, especially as they
partner with local Ethiopian companies.
One key element to enhancing
competitiveness is talent. Here again,
we see encouraging trends. Ethiopia
has a very large talent pool which is
young, trainable, easily deployable,
affordable and eager to work. Another
element which I believe will contribute
to Ethiopias competitiveness is
proximity to global markets. We had
done a study at EY which shows that
from Addis Abeba you can reach half
the global population 3.5 billion people
in just eight hours. That is what I call
perfect strategic location. When you
talk of access to market, it is not only
the free trade of AGOA or others but
your location also matters because the
further you are from your markets the
more expensive it is. These are all the
advantages Ethiopia has.
One of the debates with regards to
giving focus to the manufacturing
sector is as to which way Ethiopia
should industrialize. Should it rely
on foreign direct investment or local
manufacturers?
My recommendation and what I think
is starting to happen is we definitely
need the foreign investors because,
as I said earlier, they will bring
knowledge, know-how, technology
and more importantly market
access. For example, if we look at the
Chinese shoe manufacturer Huajian,
for over 20 something years it was
exporting to the US from China. So,
it already has the built-in customers.
Customers that know its product and
would buy immediately. Huajian
moving to Ethiopia now has access
to that same customer base that
an Ethiopian manufacturer would
have a very difficult time accessing.
However, we have to continue creating
linkages between the international
manufacturers who are setting up
facilities in Ethiopia and the Ethiopian
private sector. It could be some
point of the value chain. If you are a
manufacturer of shirts, the Ethiopians
could produce the buttons or other
pieces. It could also be equity share.
Share holdings between Ethiopians and
www.thereporterethiopia.com
foreign investors. I think this has to
happen. Are we starting to see this? We
recently had a couple of instances that
we are aware of that people we have
been working with who have signed
up joint ventures with international
investors. That is the way to go in
the future. Have local participation.
The law does not require it. Which
is fine. It is a smart law. You do not
want to force foreign investors to take
local companies just because the law
says so. However, the smart ones are
starting to create partnerships with
Ethiopians. That is the way to go about
it. The Chinese did that in China. If
you see a lot of big Chinese companies
in the 80s and 90s, they created joint
ventures with multinational companies.
Today the Chinese have built up their
expertise and I think that is the way I
would expect these things to develop in
Ethiopia in the future.
Do you see a lot of FDI coming into
Ethiopia in the next five years?
I am glad you asked me this. At EY we
just released our global report called
the Africa Attractiveness Survey. It
is a fantastic report. We have been
publishing it globally for five years.
This year, one of the star performers
in terms of FDI was Ethiopia. For two
reasons. One, Ethiopia is now among
the top ten FDI destinations in Africa.
In terms of the number of FDI projects,
Ethiopia was ranked 14 in 2013. This
past year, it moved up to number eight.
But most importantly, and this is the
key finding, almost one out of five jobs
(18.5 percent) created by FDI in Africa
in 2014 was accounted for by Ethiopia.
|27
CONT`D FROM PAGE 23
Out of 54 countries in Africa. That
means Ethiopias FDI policies creates
jobs. There are a lot of countries in
Africa who get big headline that says
big FDI dollar came in, but those FDI
numbers do not create jobs. You could
have, for example, five billion dollars
going into an oil and gas deal to build
a refinery or a pipeline. But that USD
five billion only employs maybe a 100
people? One other key finding we have
in our research is that, this year, FDI
in Ethiopia will top USD 1.5 billion
[annually]. Only six years ago in 2008
it was around USD 100 million. And we
expect an average of a billion and half
FDI each year for next three years. In
a span of six years an increase of 15
times is a very strong performance. But,
there is a lot of global competition and
therefore, Ethiopia has to stay focused
to sustain those kinds of numbers.
By the way, there are a lot of very
large deals in the pipeline which will
hopefully be announced in the next
several months.
Most of the FDI flow to Ethiopia
in the past decade are mostly from
recently industrialized countries
like China, India and Turkey. But
some are of the view that with
regard to technology transfer it will
be to the disadvantage of Ethiopia to
copy from the copiers. What is your
view on that?
In the first wave of FDI that started
coming to Ethiopia say seven years
ago, a lot of it came from the newly
emerging economies. However, what
$GYRFDWLQJSDJH
28|
Reauthorization of AGOA...
in view of these Ethiopias recent gains
in addressing these bottlenecks could
transform AGOA export in a significant
manner.
One thing worth mentioning is
Ethiopian governments commitment
to make AGOA a valuable opportunity
to the already peaking manufacturing
sector. The commitment is evident
in the fact that Ethiopia was actively
pushing for the reauthorization
of AGOA particularly through its
diplomatic mission in New York.
It has also hosted the 12th AGOA
Ministerial Meeting in 2013. Secondly,
the government is working on the first
National AGOA Response Strategy
that aims to address bottlenecks in
sector-specific industries. Issuing a
strategy being one important measure,
the fact that the strategy picked
garment and textile, hand woven textile
products, leather and leather products,
horticulture and agro-processing also
promises a better performance given
the fact that Ethiopia has a big potential
in the aforementioned areas and rising
global demand.
Ethio-Sudan growing....
were also part of the multi-dimensional
growth of the bilateral relation.
In the economic front, a number of
agreements were signed between
Ethiopia and Sudan to cement their
growing strategic partnership in 2013.
Some of the agreements include trade
and investment expansion, free trade
areas, prevention of double taxation,
etc. In the past decade, dazzling
breakthroughs were registered in
foreign direct investment flow between
Ethiopia and Sudan. Sudanese investors
have been partaking in Ethiopia in
diverse areas of investment including
construction, agro-processing,
agriculture, manufacturing, tour
operation and others. Presently,
Sudanese investors have been involved
in 513 investment projects worth 37
billion birr capital. Currently, there are
300 investors engaged in pre-investment
survey of which 126 investors are
working in the manufacturing sector.
Sudanese investment projects have
created 8,322 permanent and temporary
employments so far and when all
projects become fully operational,
more than 90,000 new permanent and
temporary jobs will be created. The
Ethio-Sudan trade volume has also seen
an increase since Ethiopia and Sudan
inked the Preferential Trade Agreement
in 2002, which removed tariff barriers.
Ethiopia and Sudan have also been
working to develop and promote tourist
attraction sites in both countries to
increase tourist flow between the two
countries. In a bid to promote economic
cooperation, Ethiopia and Sudan have
been working together in connecting
through various infrastructures. In
road transport, Ethiopia and Sudan are
now connected with two all-weather
tarmac roads. The two nations are also
working to connect through railway
transport. Power transmission and
fiber optics lines also connect the two
countries. Ethiopian Airlines flights to
For instance, by 2014, the global
apparel retail industry had a value of
USD 1.222 trillion. That being the case
the Americas take the largest market
share (35.7 percent). This tells a lot as
to the potential for Ethiopia to benefit
from AGOA. Accordingly, aggressive
efforts in attraction of capital, easing
access to finance, improving work
conditions, improving labor efficiency
can catapult Ethiopia to be one among
main exporters of apparel. The changes
are also beginning to be seen with
giant companies like H&M joining
the Ethiopia garment sector. With an
average 51 percent growth indicating
massive expansion, Ethiopias apparel
sector is bound to make the nation the
biggest hub of apparel industry.
Coming to some of the efforts made
to address bottlenecks, Ethiopias
massive infrastructure boom is just
another factor to hope for a leap in
AGAO exports. With the recent launch
of the Los Angeles flight, in addition
to Washington DC, Ethiopian Airlines
flight to the US and its growing
expansion covering more than 90
international destinations will go
Sudan, occurring three times a day, are
playing a key-role in enhancing the two
nations relationship in import-export
trade, tourism and people-to-people
relationships. As a result, Sudan stands
7th, next to the US, China, UK, Kenya,
Italy and France, as a source country in
tourists flowing to Ethiopia. In sum, one
can safely deduce that the Ethio-Sudan
economic relationship is growing in
an unprecedented manner. By working
together and creating stronger bonds,
Ethiopian and Sudanese businesses,
investors, and tourists are playing a
pivotal role in enhancing the bilateral
relationship in the economic fronts to
the height of excellence.
In promoting the people-to-people
ties between the two nations, apart
from the activities undertaken to
promote tourism, various activities
were undertaken through public
diplomacy and cultural diplomacy.
These opportunities allowed the two
nations people to celebrate their shared
commonality in religion, history,
culture and language. One such event
was the recent visit of the Ethiopian
Public Diplomacy Delegation to Sudan.
The Ethiopian Public Diplomacy
Delegation, which was comprised
of scholars, religious leaders, MPs,
business community representatives,
farmers, students, writers, artists,
prominent personalities and media
professionals, was an eventful five-day
visit to Sudan in May 2015. The visit of
the Ethiopian delegation sent across
clear message of fraternity, unity and
brotherhood to the Sudanese people.
The message was received with an
equivalent fraternal sense, evident
in the typical Sudanese hospitality
the delegation enjoyed. In its stay
in Sudan, the delegation met with
higher officials, MPs, artists, scholars,
business community, religious leaders
and people drawn from different
sectors of the population. The cultural
performance, staged by the culture
www.thereporterethiopia.com
The Reporter, Saturday, July 11, 2015
CONT`D FROM PAGE 10
a long way in opening the gates of
US market. The three billion dollars
projects of railway connecting Ethiopia
to Djibouti and Tajourah port will also
significantly reduce transport cost and
time addressing the biggest challenge
to Ethiopias international trade. One
cannot fail to mention the introduction
of multi-modal transport in easing port
related logistical problems.
Huge energy projects including the
Grand Ethiopian Renaissance Dam
will help in guarantying reduced
energy cost which currently is one of
the cheapest in Africa, hence reducing
production costs. The annual estimated
1.5 billion dollar FDI flowing to Ethiopia
will also have a big contribution keep
Ethiopias textile sector in a strong
growth trajectory. In addition to this,
Ethiopia low labor cost which stands
unbeatable compared too many Asian
countries will undoubtedly make
Ethiopia beneficiary of the relocation of
manufacturing from Asia in particular.
One can count also on the launch of
sector specific training in such fields
as textile engineering, in many of the
31 Ethiopian universities, in filling
CONT`D FROM PAGE 14
troop of the Ethiopian National Theater,
pulled everyone to the stage in a
manner that spoke loudly of the deep
sense of love between the two nations
people.
In another occasion, a group of 32
Sudanese journalists paid a visit to
Ethiopia in July 2014 with a view to
promote the two countries people-to-
people relation to an even higher level
by enhancing mutual understanding.
Another group of Sudanese journalists,
editors-in-chiefs and columnists
visited Ethiopia in June this year. The
journalists met with Prime Minister
Hailemariam Desalegn and other
high officials. They also paid a visit
to major development project sites,
including, among others, the Grand
Ethiopian Renaissance Dam, Addis
Ababa Light Railway, Ethiopian Metal
and Engineering Corporation, National
Museum. Their visit was an important
event that showcased Ethiopias rapid
and holistic development. It helped the
journalist get an opportunity to witness
projects such as GERD with its far-
reaching benefits to the people of the
two nations and beyond. Media being
an important medium for bridging gaps
in information, the visit helped the
journalists to tell firsthand accounts of
the benefits of peace and cooperation
between the two countries. The visit
also created an opportunity for media
institutions of the two countries to
work together in promoting the socio-
economic and political developments in
both countries.
Apart from the positive interactions in
the media, one can also observe growing
links between intellectuals of the two
nations. In the past two or three years,
series of panel discussions were held in
Ethiopia and Sudan on various themes,
including economic cooperation, GERD,
the Nile, and over the legacies of the
late Prime Minister Meles Zenawi in
promoting the two countries relation.
The event, which was attended by
Vol. XIX No. 983
the gap in trained human resource
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
looks more real.
In sum, despite the fact that Ethiopia
has a potential to be the leading
exporter especially in apparel, the
report card of our participation in
AGOA leaves much to be desired.
This is all the more so given the huge
market opportunity AGOA continues
to provide for Ethiopia and Africa.
Nonetheless, the wind of change that
blows in the textile and garment sector
and more importantly the lead taken in
preparing a National AGOA response
strategy gives us more to hope in the
reauthorization of AGOA for the coming
ten years. Consequently, apparel and
garment being priority sector capable
of generating thousand of jobs it is
incumbent on the relevant stakeholders
to see to it that the response strategy is
effectively implemented.
Ed.s Note: Samuel Addis Alemayehu
holds LLB Degree from AAU. He
occasionally writes on local and regional
matters. The views expressed in this
article do not necessarily reflect the views
of The Reporter. He can be reached at
samalemayehu@gmail.com.
Ethiopian and Sudanese scholars,
included testimonials about untapped
potential for cooperation in higher
education. It also showed efforts made
by scholars and intellectuals of both
countries to come up with solution to
problems faced by both countries. In
relation to the Nile, it showed strong
intellectual solidarity for cooperation
as the ultimate solution to realize
equitable utilization.
Politically, the two countries
relationship has also shown a robust
growth. Ethiopia and Sudan regularly
hold political consultations at the
level of experts, ministers and heads
of state. Ethiopia and Sudan also enjoy
close cooperation in regional and
international issues of mutual concern.
During its AU chairmanship, Ethiopia
had showed its deepest kinship to Sudan
by firmly opposing war crime charges
against President Omar Al-Bashir
by the International Criminal Court
(ICC) based on a principled position of
African solutions to African problems.
Sudan has supported the Grand
Ethiopia Renaissance Dam and has
also been facilitating tripartite national
dialogue between Ethiopia, Sudan and
Egypt. One can conclude, then, that at
a political level, there is an excellent
relationship based on mutual trust and
good faith that is manifested in frequent
visits of the respective leadership to
Khartoum and Addis.
In conclusion, Ethio-Sudan relations
are on the rise in people-to-people, in
government-to-government, and in
economic cooperation. The move made
in interlinking Ethiopia and Sudan
through infrastructural ties is paving
the way towards economic integration.
To realize a prosperous, integrated
and peaceful Ethiopia and Sudanand
the region in generalit is important
to build on the positive momentum of
cooperation and further expand it to the
benefit of the people of the two nations.
Ed.s Note: Zekariyas Talo Anjulo
is an analyst on Horn of Africa. The
views expressed in this article do not
necessarily reflect the views of The
Reporter. He can be reached at zeketalo@
gmail.com.
The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983 |29
the two warring factions?

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

evolved to include other peace actors
via the IGAD-Plus framework and the
forms of regional and international
support it has received in the process,
it can be said that IGAD is a dependable
way for a lasting peace and stability to
come out of the ongoing crisis in South
Sudan.
IGADs take in addressing the root
cause of the crisis in South Sudan
The IGAD-led Mediation Process, apart
from its legitimate mission, is also
notable for the only peace effort that
duly looks into the crisis in its entirety
and, thus, addresses the root causes
of the crisis in South Sudan. Taking
note of the pitfalls of holding onto a
partisan account of one political group
over another, the IGAD-led Mediation
Process was set for supporting the
people of South Sudan, all parties and
other political stakeholders in the
prospect of achieving an inclusive,
sustainable, and comprehensive peace
in the war-torn country.
Therefore, the IGAD-led Mediation
Process is principally missioned
to assist South Sudan in the
overall process of introducing and
implementing a dependable political
dispensation, putting in place the
constitutional principles of governance,
which ultimately functions under the
pursuit of legitimacy and a broad-based
support of the people of South Sudan.
In a well articulated show of support
to the IGAD-led Mediation Process,
Professor Amir Idris, Chair of the
Department of African and American
Studies at Fordham University in
New York, notes that the gateway to
sustainable peace and prosperity [to
the people of South Sudan] can only
pass through a comprehensive peace
agreement brokered by the IGAD-plus
in Addis Ababa that addresses the
underlying causes of the tragedy.
Stressing the fact that the IGAD-led
peace process speaks the language of the
very people of South Sudan and those
victimized in the conflict, Idris further
explained that such peace efforts would
in turn pave the way for effective
economic and political reform.
Achievements so far
Despite instances of repeated violations
by the two warring factions in South
Sudan, some of the major achievements
of the IGAD-led Mediation Process so
far include the signing of the Cessation
of Hostilities Agreement and the
agreement on the Status of Detainees
that the two conflicting parties entered
on January 23rd, 2014.
Owing to past violations of the
Cessation of Hostilities Agreement,
the IGAD-led Mediation Process is
also subject to referral jurisdictions to
the African Union Peace and Security
Council, and the Security Council at the
United Nations.
Similarly, with a view to ensure that
the ceasefire holds and humanitarian
corridors remain open, a monitoring
and verification mechanism has been
put in place under the auspices of the
Cessation of Hostilities Agreement with
a Joint Technical Committee in Juba.
The other achievement of the IGAD-led
Mediation Process was the Agreement
to Resolve the Crisis, under which,
the two warring parties had to commit
themselves to seeking a political
solution to the crisis through a broad-
based inclusive dialogue. This move has
helped contain the spillover effects into
regional war.
Why then has the process brought
no lasting peace?
If IGADs mission mandate, with its
peculiar nature of addressing the root
causes of the crisis in South Sudan and
with both the regional and international
support it has so far received, is what
it appears to be, what went wrong in
striking a lasting peace deal between
The answer lies in the failure of the
leaders and politicians of both camps
in SPLM to take the courage and the
will to think farther than their noses.
In fact, the SPLM, whose leadership
has for so long remained a group of
politicians, has failed to graduate to the
level of a group of statesmen. Indeed,
as Ethiopias Prime Minister and IGAD
Chairperson Hailemariam Desalegn
rightly observed, it still remains
disappointing to continually witness
the failure of the leaders and politicians
of both camps in South Sudan to rise
above personal and factional political
interests and put the national interest
and wellbeing of the people first.
In a similar vein, Yongo Bure (PhD),
professor of Economics and Social
Sciences at Michigan Kettering
University, underlined that IGAD and
other international mediators have
already sacrificed more than enough
time and resources to help us resolve
our problems. Bure thus advises his
fellow countrymen, We should not
blame IGAD but ourselves. Instead
of being grateful, we continue to be
arrogant!
Ed.s Note: Mekonnen Amare is a
political commentator on Horn of Africa
issues. The views expressed in this article
do not necessarily reflect the views of The
Reporter. The writer can be reached at
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
emerging economies and western
investors. And we have some very good
examples to show that. Last summer,
the big American private equity fund
KKR invested USD 200 million to buy
a flower farm, Afroflora, in Zeway.
KKR is the company that essentially
invented private equity in America
in the 1980s. These are very smart
people. That investment in Afroflora
was their first investment in Africa
and they chose Ethiopia. That is
American money. KKR is the bluest of
the blue-chip of American companies.
We now have other top US companies
like GE opening up offices in Ethiopia
looking for manufacturing facilities
in the country. And then we have
companies from Europe like Diageo,
Heineken, SABMiller and in the next
few months Unilever which will be
opening a factory to produce consumer
products. So what you are starting to
see now is that even though the first
movers into Ethiopia were investors
from the newly emerging economies,
in the last few years we are starting
to see a balance. Some of the big deals
that will be announced in the next 12
months are actually western investors,
in particular American investors.
However, we also need to appreciate
the value of investments from newly
emerging economies. They are much
more adaptable to an emerging
economy. Although that is also starting
to change because the Americans have
also become very adaptive to emerging
economies such as Ethiopia.
Going back to the issue of stock
markets you raised earlier.
Recently, the National Bank of
Ethiopia is making preparations to
start a secondary bond market. Do
should take priority over stock
market?
I think they could go parallel. It is a
good thing that the bond market will be
launched. It is about time. Especially
now since Ethiopias bonds are traded
globally the Euro Bond. It is only
natural and timely that we should have
a domestic one. However, Ethiopia
unequivocally, absolutely needs an
organized equity market. Let me put
this in to context. We have the fourth
largest economy in Africa and we do
not have a stock market. Countries
with much much smaller GDPs than
Ethiopia have equity markets. I do not
think it is logical for Ethiopia not to
have an equity market. Is it the panacea
for everything? Of course not. But it
is one of the bucket of market options
that we need to have. Our economy is
becoming sophisticated. It is a sizable
economy by African standards. On a
PPP (purchasing power parity) basis, it
is 139 billion dollars and on a nominal
basis around 55 billion dollars. That
means it is starting to become relatively
large and gradually, sophisticated.
Investors need alternative sources of
capital. Almost every Ethiopian young
person that I meet wants to become
an entrepreneur today. I think this
fantastic. An amazing attitudinal
change I have seen in Ethiopia in the
last fifteen years. But every single
one of them need capital. You cannot
just use your Iqub or borrow from
your friends to get seed capital. So
Ethiopia definitely needs an organized
equity market. We already have some
semblance of equity trading even
though it is not formal. People who own
shares in banks in Ethiopia trade. They
exchange shares. But it is not organized.
So there is no transparent way of
www.thereporterethiopia.com
of these banks for example. There are
hundreds of thousands of shareholders
in private banks in Ethiopia today.
They are illiquid. The banks will try
to find a match between a buyer and
seller but it is very inefficient and
secondly you do not know if the value
you get is transparent. Remember,
a lot of people are forming share
companies in Ethiopia today in a very
unregulated market. So it is better for
the government to organize a stock
exchange where the rules, financial
reporting, the corporate governance
is clearly laid out by the government.
That way people know what they are
trading and under what conditions.
Ethiopia might be the only country
one in the world, with a GDP of this
size, that does not have a stock market.
Therefore, I encourage the government
to really consider this in GTP II. I have
a very strong position on this because
we have been working on establishing
s stock market in Ethiopia for years,
going back to 2001. By the way, during
the reign of the emperor, Ethiopia used
to have a stock market in the late 60s
[the Addis Ababa Share Dealing Group,
which was abolished in 1974]. I think
the timing is right and the government,
and I hope, agrees with me. China has
a very big stock market. Every Asian
country Ethiopia is learning from in
terms of fast economic development,
have stock markets. Therefore, we need
to have a stock market as well.
One more reason for Ethiopia to having
a stock market is the lack of alternative
equity sources such as private equity
and venture capital that could fund
startups with dynamic ideas but lack
finance.
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.
Owing to Mandelas vision in the
pursuit of African brotherhood, what
exactly went wrong in the minds
of the South African youth that
conscripted in them a willingness
to forget such an honored past? It is,
therefore, incumbent upon the youth
and government of South Africa, the
African Union, as well as other African
countries, to revisit and enrich the
depth of Ethiopianism, pan-Africanism
and African Renaissance in order
to forge a promising future for their
children.
Afro-phone
In all these, the answer lies in the
failure of Africa to go beyond the
physical, economic and political
survival impulses. Many African
countries, including South Africa,
and the African Union for that matter,
have not been concerned with the
irreplaceable role of cultural survival
though education, art, languages, music
and so on.
In this regard, a prolific Kenyan writer,
Ngg wa Thiongo, regards culture as
an integral part of our growth. It is
a product of our growth. It is what a
flower is to a tree. The important thing
about a floweris not just its beauty. A
flower contains the seeds of the trees
future growth, its survival. It is,
therefore, very important for African
countries and the African Union to help
the people, especially the youth, to use
the words of the British poet William
Wordsworth, learn from the past to
profit by the present, and from the
present, to live better in the future.
This is indeed the responsibility
that needs to be upheld by African
governments to help the youth
understand themselves, as well as
enable them find their rightful place
in the history of the world, through
Afro-phone cultural narratives such as
education, languages, values, literature,
ethics, history and music while also
paving the way for them to learn about
other countries. This way, cultural
survival lays the foundation to political,
economic, psychological and social
survival of a given country or society
because culture is the foundation of all.
It is my view that Afrophobia is the
wrong medicine in the context of
South Africa and, indeed, in Africa.
The will to look inward is the way out
from this blind alley that retrenches
the distance of South Africas Long
Walk to Freedom. Ngg wa Thiongo,
explaining the link between the moral,
aesthetic and ethical values of the
people being carried out by culture,
and that peoples consciousness, states,
That consciousness, in turn, has an
effect on how they look at their values,
at their culture, at the organization of
their power and at the organization
of their wealth extracted from nature
through the mediation of labor. This
observation is unequivocally suggestive
of the missing link in Afro-phobic
attacks perpetrated against African
migrants but left others untouched.
Case in point, this illustrates that a
certain societys consciousness gives
full play to finding the right medicine
In all these, the
and, thus, healing the wound.
answer lies in the
If the peoples consciousness on
matters of the organization of power failure of Africa
and wealth is left unaddressed, it is no
doubt that African migrants residing to go beyond the
in South Africa will remain hostage to
Afrophobic attacks. If the black people physical, economic
remain bystanders of the organization
of power and wealth of their country, and political survival
things will surely go astray as happened
three times before. This Afro-phone impulses. Many
survival and development belt is the
only way for Africa to emerge as a new African countries,
growth pole and to independently and
freely decide its destiny. including South
Today, South Africa, being home Africa, and the
of Nelson Mandela, takes a special
place in pushing forward the African African Union for
vision for betterment in international
organizations and for its association that matter, have not
with other African countries. Indeed,
Africa does not expect South Africa been concerned with
to fail Africans. South Africa needs
to come to grips with the issues that the irreplaceable role
they mistakenly attribute to African
migrants. To cap it all, in the words of of cultural survival
Professor Mammo Muchie: We very
much look forward and remain hopeful though education,
that South Africa will never fail Africa.
South Africa must put Africa first above art, languages, music
all else.
Ed.s Note: Nurye Yassin (@nuralyeju)
and so on.
is a researcher on African Affairs.
The views expressed in this article
do not necessarily reflect the views of
The Reporter. He can be reached at
nuralyeju@gmail.com.

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

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

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

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
WB says...
to an audience that included ministers
and high profile businesspersons.
According to Moller, Ethiopias
economic growth is projected to
continue as fast as it did in the last
decade but by 2017, the potential GDP
growth would fall to 8.5 percent annual
growth, which, according to the banks
estimation, is a decrease by two points
from 10.5 percent in 2016 and one point
in 2015.
That prospect of the GDP decline,
according to Moller, is a product of
the decline in the construction boom,
affecting the total investment. However,
the rising trend in the export sector
in the coming three years will help
increase growth. Moller highlighted
that agriculture will grow 1.9, 2.8
and 2.4 percent in 2015, 2016 and 2017,
respectively. The industry is expected to
register 1.9 average growth rates in the
next three years. The service sector is to
grow relatively at a 5.2 average growth
margin.
However, the current decline in export
performance greatly affects the fiscal
and external balances of the country.
The ever-increasing gap in the trade
balance is putting the countrys current
account balance further into severe
imbalances. The departing country
director of the WB, Guang Z. Chen, said
that debt sustainability is becoming
more serious. The report shows that the
dwindling exports and the exponentially
CONT`D FROM PAGE 1
growing debt burdens are estimated to
reach 65 percent of the GDP. Following
that, the government is expected to
slow down huge public investments. In
addition, the depreciating birr against
the strengthened dollar is the other
challenging factor the government
has to face. According to the WB, the
Washington-based institution advised
that a closer look be made on the
swelling amount of non-concessional
loans and the corresponding higher
interest rates.
However, officials from the ministries
of finance, and economic development
and industry denied the slowing
rate of investment, debt burden, and
sustainability, saying the debt are
not enough to panic the government.
Ahmed Shide, state minister of Finance
and Economic Development, argued
that, though the exchange rate in the
international markets is appreciating
enough to affect local currencies, he
affirmed that the Ethiopian government
is not willing to devalue in the
immediate future.
According to Moller, the dollar has
recently appreciated by 25 percent
against many currencies across the
world. In addition to that, the report
noted that the recent entry of the
country into the global capital market
adds to the mounting debt burden,
which is currently about 45 percent of
the GDP.
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|35
For State Minister Ahmed, the
government is monitoring the
international exchange rate situation
but stated that it is not alarming yet.
Ahmed gave an account of the plans
the government is going to pursue. One
such plan is to embark on energy export
to neighboring nations in order to boost
export performance and to amass USD
one billion in the coming five years.
Another plan is to export manufactured
goods from the industrial parks.
With regards to the manufacturing
sector, Moller said that a slowly
progressing industrialization derived
from the construction sector is
happening in Ethiopia. In addition to
that, the newly developing industrial
parks are some of the trending factors
where foreign investors come and
do business. However, the concluded
five-year Growth and Transformation
Plan (GTP I) was only able to erect one
out of five industrial parks stipulated
in the economic plan. Moller stated
that despite the lower unit cost of
labor, many manufacturing firms
are struggling to match demands of
skilled manpower and supply, coupled
with credit, land, electricity, trade
logistics and tax constraints. That
said, he hopes in accordance to GTP
II, industrialization will bring about
formidable changes in the structure of
the economy.
Mebrahetu Meles, state minister for
the Ministry of Industry, together with
a representative of National Bank of
Ethiopia (NBE) and economic advisor
to the Prime Minister, Neway Gebreab,
among others, have challenged some of
the findings of the WB.

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

I want us to be
friends.
What?
US Box
office
I have a proposal
1 Inside Out
Kuncho Komments

for you.

2 Jurassic World

3 Terminator Genisys

4 Magic Mike XXL

5 Ted 2

6 Max
Well there are some
things I have to know
first.
Please submit your 7 Spy
resume, two letters
What is it? of recommendation a
motivational letter. 8 San Andreas

9 Me and Earl and the Dying Girl

10 Dope

Your Zodiacs (astrology-online.com)

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

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
Ethiopia Coffee FC hires first foreign coach
By Dawit Tolesa
Ethiopian Coffee FC, which finished
sixth placed in last seasons Ethiopian
Premier League (EPL), have announced
the appointment of Serbian Dragan
Popadic as their new coach.
Dragan Popadic, 69, was unveiled as
Coffees new coach on Wednesday at
Ethiopia Hotel. The Serbian is given a
one year contract to manage Ethiopia
Coffee but the club declined to disclose
the financial side of the deal.
The contract is subject to renewal
depending on the coachs performance,
according to Gezahegn Wolde, Ethiopia
Coffee general manager.
This is the first time for Ethiopia Coffee
to appoint a foreign coach in the clubs
40 years history.
We wanted to focus on the modern
Genzebe Dibaba sets African 1500m record
of 3:54.11 in Barcelona
Genzebe Dibaba set an African 1500m
record of 3:54.11 in Barcelonas Estadi
Joan Serrahima stadium on Wednesday
evening (8).
Genzebe Dibaba arrived in the Catalan
city in the wake of her 5000m personal
best of 14:15.41 when winning at the
IAAF Diamond League meeting in Paris
on Saturday, looking for a fast time
but also not sure about how much her
efforts in the French capital had taken
out of her.
Not much it seems.
She followed the Cuban pacemaker
Yuneisy Santiusty through to 700
meters but with two laps to go she took
off on her own and turned the race into
a time trial.
Genzebe Dibaba produced the fastest
time over the distance since 1997,
moved up to ninth on the world all-
time list, and improved on the Spanish
all-comers record of 3:55.30, which had
stood to Algerias Hassiba Boulmerka
since she won at the 1992 Olympics in
the same city.
Into the bargain, Genzebe Dibaba
sliced just over a second off her
previous personal best of 3:55.17, the
Sierra Leone, Malawi and Ethiopia lose out on latest Fifa rankings
Sierra Leone, Malawi and Ethiopia
are the big losers in Julys Fifa world
rankings.
All three dropped out of the top 27 on
the continent, meaning they will not
have byes into the second round of 2018
World Cup qualifying.
Instead Sudan, Benin and Libya will
avoid having to play in the opening
round of the campaign.
The draw for the qualifying for the
World Cup in Russia will be held in St.
Petersburg on 25 July.
With Zimbabwe having been
disqualified from the World Cup it
Dragan Popadic
style of coaching currently applied
all over the world and this is the
reason behind appointing a coach
from abroad, Gezahegn told reporters
during the unveiling ceremony.
existing world indoor record she set in
Stockholm in February 2014.
Spains Solange Pereira was a distant
second to Genzebe Dibaba in 4:12.42.
Genzebe Dibaba was not the only
athlete to run a world-leading time
in Barcelona on Thursday. Djiboutis
leaves 53 of the 54 member associations
in the preliminary draw.
The lowest 26 ranked sides on the
continent in the July rankings will play
over two legs in October 2015.
The winners of those ties advance to
round two where they will join the
remaining 27 highest-ranked teams
from the region and face off in another
two-legged play off.
The winners of these games then move
into Africas final qualification round
where five groups of four teams will
meet both home and away.
The winner of each group will qualify
www.thereporterethiopia.com
THE REPORTER SPORT|39
Born in Belgrade, Dragan Popadic
played his footballing career in
defensive position. He has a vast
knowledge in African Football
managing several clubs in Africa
including in countries like Tanzania,
Uganda, Rwanda, Angola and Ghana.
Among his achievements are the
Council for East and Central Africa
Football Association (CECAFA) cup
winner with Tanzanian side Simba
SC, won the Ugandan Super League
title with Express Kampala, National
Cup Angola winner with Petro Atletico
Luanda.
Ethiopia Coffee sacked Tilahun
Magesha in April a month ahead of
the conclusion of the EPL season. Under
the guidance assistance coach Anwar
Yasin, Coffee finished the season at a
disappointing sixth place collecting 36
points from 26 matches.
Genzebe Dibaba
world bronze medalist Ayanleh
Souleiman won the mens 800m in a
personal best of 1:43.08.
World youth 1500m champion Robert
Biwott was second in a PB of 1:43.58,
while Musaeb Balla set a Qatari record
of 1:43.82 in third. (IAAF)
for Russia 2018.
Algeria remain the top ranked side on
the continent and have climbed two
places to number 19 globally.
Nigeria dropped 14 spots and are now
10th in Africa and 57th overall, their
lowest position since 1999.
The biggest drop anywhere in the world
was 29 places by the Central African
Republic, who fell to 170th on the
rankings.
Swazilands 2-1 win over visiting
Guinea in a 2017 Africa Cup of Nations
qualifier helped them leap 24 places to
138 globally and 40th in Africa. (BBC)
Eritrean makes
history for Africa in
Tour de France 2015
Daniel Teklehaimanot
He has already made Tour de France
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
milestone.
On Thursday, Daniel Teklehaimanot
became the first African to don the
polka-dot jersey awarded to the races
leading climber, his team said.
The 26-year-old MTN-Qhubeka rider
gave the thumbs-up after earning a
third point in the King of the Mountains
classification to take the jersey from
Joaquim Rodriguez, who dropped a
point behind him.
Colleagues on the Eritreans team were
quick to voice their congratulations on
Twitter, writing: Lost for words right
now... Battling to see whats going on
through the tears. Dream come true to
have the polka-dot jersey!
Daniel Teklehaimanots achievement
came when a sprint ride at the Cote du
Tilleul saw him cross in first place on
the final category four climb of the day.
Im really happy about what happened
today. I cant believe it, he told the
official Tour de France website.
That was my childhood dream, to
get the polka dot jersey at the Tour de
France. I was excited about having it
just for one day.
After I scored two points, I was
nervous that I wouldnt take one more,
otherwise I would be left with nothing.
The 2012 London Olympian who
had surgery to correct tachycardia,
a condition resulting in a faster than
normal resting heart rate, in 2009 was
the first of the 198 riders to start the
opening time trial of this years Tour.
But there was a cruel setback for Tony
Martin, who broke his collarbone in a
crash as stage six of the Tour drew to a
close.
As Czech Zdenek Stybar made a
late dash to win the stage, his Etixx-
QuickStep teammate Martin suffered
injury in a crash that could spell the end
of his participation in this years race.
However, the German retains the
leaders yellow jersey because race
rules say a rider held up in an incident
in the final three kilometers of a stage
is credited with the same time as the
winner. (CNN)
40| The Reporter, Saturday, July 11, 2015
Vol. XIX No. 983
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