Sunday, November 21, 2010
Monday, November 15, 2010
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Thursday, November 4, 2010
Thursday, October 28, 2010
Friday, October 1, 2010
Thursday, September 30, 2010
Friday, September 24, 2010
Ethiopia: Abebe Bikila
Ethiopia: Abebe Bikila – A Flourishing Legacy
It was fifty years ago. September 10, 1960. An unknown Ethiopian runner dazzled the world that day by winning the gold medal in the marathon, the crowning sports event of the Olympic Games. History was made in Rome, Italy at a memorable occasion as the XVII Olympiad presented the world with an extraordinary gift: a young Ethiopian athlete by the name of Abebe Bikila. The first African to ever win an Olympic medal —let alone a gold in the marathon— Abebe Bikila became an instant legend as an awestruck world became mesmerized by the African who won the most difficult and celebrated global athletic event –without wearing shoes.
The astonishing victory and the circumstances surrounding it —no shoes, world record— captured everyone’s attention. Newspapers around the world carried the story. ―Barefoot Bikila First at Rome in Fastest Olympic Marathon,‖ declared the headline of an article published in The New York Times. The article’s first paragraph stated:
A skinny, barefooted palace guard in the Ethiopian Army of King Haile Selassie ran the fastest marathon in history tonight.
Africans and people of African descent in every part of the globe rejoiced. And citizens of the world, regardless of their national and ethnic origins, were short of words to express their admiration for the Ethiopian runner. The Times article continued:
A rank outsider who never had run the distance of 26 miles 385 yards outside his own country, 28-year-old Abebe Bikila won the classic race of the Olympic Games . . . .
Thinking about Abebe Bikila’s historic Olympic victory prompted me to re-visit Tim Judah’s Bikila: Ethiopia’s Barefoot Olympian. Judah’s book is a biographical work that uses many primary and secondary sources to tell the story of an unassuming young man who became a national hero and a world-famous athlete. The article in The New York Times that I quoted above is printed as a prelude to the subsequent chapters of the book.
The book makes several references to the published work of Tsige Abebe, the athlete’s daughter. Another Olympic legend, Mamo Wolde, is also mentioned in several passages of the book. It also gives a detailed account of the life of Onni Niskanen, the extraordinary Swedish man who was Abebe Bikila’s trainer. Several unique and striking photographs are included in the book as well. Most of the photographs, as the author acknowledged, came from Mr. Niskanen’s personal photo album which ―was left to Radda Barnen – Swedish Save the Children in Ethiopia.
It is important to note that the author pledged part of the proceeds from the sale of the book to Radda Barnen. Mr. Niskanen, according to the author, ―was at one point in his long and varied career the director of the charity in Addis Ababa. He advised the charity until his death in 1984.‖ Readers, no doubt, will find Mr. Niskanen’s background, his connection to Ethiopia, and his illustrious partnership with Abebe Bikila quite a captivating story.
Let us go back to that historic day in 1960 . . .
The race began at 5.30 in the afternoon of Saturday, September 10th. The weather was good, the sun shining and the sky brilliantly blue.
The two men who were representing Ethiopia, Abebe Bikila and Abebe Wakjira,
. . . were wearing orange shorts and green shirts. Bikila’s was emblazoned with 11, his number. They went unnoticed, especially as, being unknowns, they had not been ranked in the top 20 hopefuls by the experts.
The author goes on quoting an Austrian journalist who wrote, ―even if there had been half a dozen Abebes, no one would have paid particular attention. The Swedish trainer has said that they are first-class runners, but for most onlookers they are just two men with tongue-twisting names.‖ It was under such a heavy cloud of skepticism that the two Ethiopian athletes started the race. No one, except, perhaps, Coach Niskanen, anticipated a glorious victory from them. No one, indeed, knew that they were on a journey to establish a proud, colorful, and enduring legacy for their nation and continent.
Indeed, a new world record was set that day as Abebe Bikila came in first at 2 hours 15 minutes and 16.2 seconds, twenty-six seconds ahead of the second place finisher. Although he came in 7th, Abebe Wakjira’s role in the race must be equally admired as well. The two athletes made up the Ethiopian team and each did his part to secure victory.
Almost immediately after he had won, Bikila was examined by a doctor. He had only one word to say: “Fantastico!” Bikila’s pulse rate stood at a mere 88, his eyes were clear, he showed no signs of fatigue and there were no indications of bruising on his bare feet. He then told Niskanen that he could have kept going for another 10 to 15 kilometres at the same speed!
The book, certainly, contains ample snapshots of poignant moments. Although I, as a critical reader and, most importantly, as an Ethiopian, maintain some reservations on a few of the author’s assertions and attributed quotes, I still find the book worth reading. I also noticed that the book can use a little bit of editing. Moreover, if the publishers are considering a new edition of the book, I suggest the inclusion of an index. I highly commend the author for writing a valuable book about a subject and an athlete that are deeply embedded in the hearts and minds of Ethiopians, and many around the world.
Abebe Bikila’s trailblazing victory has become the foundation for Ethiopia’s global status as the home of many world-class long-distance runners. His legacy, as his name ―Abebe‖ implies, is a flourishing one.
I would like to conclude my tribute with a quote from the Preface of Mr. Judah’s book:
[Abebe Bikila] . . . became a legend in his own lifetime and a symbol for the new Africa in its years of decolonisation and hope. By the time of his tragic death in 1973, the continent’s dreams were shattered and Ethiopia was on the brink of famine, revolution, war and destruction.
Abebe Bikila, the pioneer Ethiopian Olympic hero, will always be remembered with sincere admiration and gratitude. The proud legacy that he bestowed upon us will continue to inspire generations to come.
By, Tewodros Abebe
Springfield, VA
September 2010
Springfield, VA
September 2010
Friday, September 17, 2010
Thursday, September 16, 2010
Tuesday, September 14, 2010
Saturday, September 11, 2010
Thursday, September 9, 2010
ETHIOPIANS PREFER DRIVING HOME GROWN CARS
Ethiopians prefer driving home-grown cars |
Tuesday, 07 September 2010 | |
Addis Ababa, September 7 (WIC) - With public purchasing power on the rise, Ethiopia’s small but emerging middle class yearns to cruise around Addis Ababa in style, affordable style cars. According to Newbusinessethiopia.com, Ethiopians refuse to pay sky-high import taxes for second hand cars. Instead, they prefer driving around in home-grown vehicles. A model by Lifan motors, Former Partner of Holland car plc now its market competitor The supply of new models assembled in Ethiopia increases and this is reflected in the streets of the capital city. More often the “Ethiopian” cars appear among the chaotic traffic that is still dominated by rundown Lada cabs andToyota Corollas. It costs a small fortune to get a second hand vehicle from the West through the port of Djibouti into landlocked Ethiopia. Although taxes have been reduced, they can still rise up to over 100 percent of the purchase value plus the transportation costs, i.e. unaffordable to many. For a twenty years old ToyotaCorolla, for example, you pay 12,500 euro. The solution is simple: import spare parts, from China for example, and assemble them in a factory with relatively cheap labor. Although a simple strategy, it’s quite unique on the African continent. Various investors in Ethiopia saw the opportunity and grabbed it, Holland Car, a Dutch-funded company, being the first. A model by the Pioneering car assembly in Ethiopia- Holland car plc Sishah Yohannes, a forty-year-old captain at Ethiopian Airlines, drives his Ethiopian-assembled Holland Car Awash for a month now. “I’m really proud when I see the name written in Amharic on the back,” he says while parking at the Bole Medhane Alem Church. “This is what I’ve been waiting for: a good Ethiopian product after all this talk about economic growth.” Holland Car’s general manager, Tadesse Tessema, convinced the Ethiopian government to lower import taxes on spare parts, making the business even more attractive. Shortly after, he presented three models, all named after Ethiopian rivers: Abay, Tekeze and Awash. Recently they launched a new family car: Shebele. Other car assemblers followed suit. First there was competition from Holland Car’s former Chinese partner. Yangfan Motors launched three models of its Lifan Cars in Ethiopia. One of them shows resemblance to Holland Car’s Abay. The two companies split after a dispute and used to produce the model together. A nice spectacle in the streets of Addis is Lifan’s Mini-Cooper look-a-like, the Lifan 320. The company prefers to describe it in masculine terms as a “mini-SUV with the power of a bear”, but it’s a “typical lady’s car”, according to car salesman Thomas Mulune. The latest competitor for the passenger’s car market is Hyundai. The South Korean company enters Ethiopia with heavy artillery, Haile Gebreselassie being its ambassador, investor and sole importer. The assembly plant is under construction and personnel are to be trained to assure “international standards”, the successful athlete said. A model recently assembled by BH Trading and Manufacturing Plc Satisfied with the competition in the market he initiated, Holland Car CEO Tadesse is preparing for a new step. He’s building a gigantic plant that will be finished in two months. From that day, he will slowly reduce the import of parts and work towards producing full Ethiopian cars. | |
Last Updated ( Tuesday, 07 September 2010 ) |
ETHIOPIA:AN APPEALING INVESTMENT DESTINATION IN AFRICA
30 JAPAN SPOTLIGHT • September / October 2010
Special
Articles 1
Since the turn of the 21st century, Africa has achieved robust economic
growth, unlike in the period of economic stagnation that affected
much of the continent in the 1980s and early 1990s. Although the
global economic crisis has had a negative impact on the economies of
Africa, the continent has proved resilient and it is expected to grow by
4.5% in 2010 and 5.2% in 2011, slowly returning to its pre-crisis
growth pattern, according to the “African Economic Outlook 2010”
report jointly published by the African Development Bank (AfDB),
OECD and UN Economic Commission for Africa (UNECA).
It has therefore become increasingly apparent that Africa will be the
next growth pole offering substantial business opportunities. This has
also been clearly indicated by a McKinsey Global Institute report,
which came out in June 2010 highlighting the progress and potential
of African economies. It is because of this fact that the continent is
attracting widespread attention from many parts of the world.
Rapid, Sustainable Economic Growth
Ethiopia is one of the fastest growing non-oil economies in Africa.
The country has registered on average 11.5% economic growth for
the last six consecutive years. Although the global economic crisis
has had an effect on its economy in terms of exports, flow of remittances,
food and oil price hikes and so on, the country was able to
withstand the crisis and maintain strong growth of 9.9% in
2008/2009. The Economist in its world economic forecast for 2010
has listed Ethiopia as the fifth fastest growing economy in the world.
Since the downfall of the Derg dictatorial regime, Ethiopia’s leadership
under the Ethiopian People’s Revolutionary Democratic Front
(EPRDF) has widely recognized that good governance and democracy
are a sine qua non for sustainable development. Thus the driving force
behind the above-mentioned fast economic growth is a democratic
developmental government seriously committed to defeating poverty
by ensuring rapid, sustainable economic growth and development.
The fourth national and regional elections, which were successfully
conducted on May 23, 2010, in a peaceful, free, fair and credible
manner, clearly attest to that and would undoubtedly give an added
impetus to the vision set by the government for the country to march
towards its ambitious journey of achieving the UN Millennium
Development Goals (MDGs) by 2015 and joining the ranks of middleincome
countries by 2020.
Moreover, the Ethiopian government, cognizant of the importance
of the role infrastructure plays in spurring the development and
expansion of the activities of other crucial sectors in an integrated
manner, has undertaken massive investment in building infrastructure
to speed up the country’s socioeconomic development. It has
also exerted enormous efforts to expand access to social services
such as education and health as well as other services with a view to
improving the people’s livelihood.
All these measures have resulted in a significant transformation in
the development of the country in the last two decades. Ethiopia’s
economy has significantly expanded and its GDP at current market
prices reached $35.2 billion in 2008/09. In purchasing power parity
(PPP) terms, its GDP has reached $70 billion, according to Ernst and
Young, thus becoming the fifth largest economy in sub-Saharan
Africa after South Africa, Nigeria, Angola and Sudan.
It is imperative to also note that Ethiopia is one of the 20 developing
countries in the world that are making absolute progress towards
meeting the MDGs as has been revealed in a progress report recently
published by the Overseas Development Institute (ODI) of Britain.
Ethiopia is an attractive venue for business. The country is
endowed with immense natural resources, which undoubtedly offer
huge potential for investment in different sectors including agriculture,
manufacturing, mining and energy, tourism and other services.
By ABDIRASHID Dulane
Photo: Ethiopian Embassy of Tokyo
Ethiopia’s real GDP growth
Source: Ethiopian Ministry of Finance & Economic Development
Hidase (Renaissance) Bridge on the Nile River: “a living monument and a symbol
of Ethio-Japanese friendship” as called by Prime Minister Meles Zenawi during its
inauguration in 2008.
Agricultural Potential
Agriculture is the sector contributing most to the livelihood of the
predominant majority of Ethiopia’s people. In this connection, the
Ethiopian government has put a lot of emphasis in transforming
smallholder agricultural production through the provision of appropriate
technologies, which has shown remarkable progress in recent
years. In addition, to supplement the efforts of smallholder farmers in
the lowlands where vast arable land and plentiful water resources are
available, the government has been encouraging private investors to
participate in large-scale development and commercialization of agriculture
by using their capital and technology. Coffee, cereals, oil
crops such as sesame, horticultural crops, rice and other food commodities,
crops for biofuel production, and cotton production for use
in the textile and garment industries, among others, are enticing
investment areas for production and value addition (agro-processing)
in the sector. Ethiopia, being home to one of the largest livestock populations
in the world, also enjoys a comparative advantage in the sector,
especially in large-scale animal breeding and meat and meat processing.
The government’s prioritization of the aforementioned gives
an added advantage to investors who venture in these sectors.
Manufacturing
The industrial sector in Ethiopia is still in its infancy, but it is a sector
whose growth is assured by the vast resource base available in the
country. With one of the largest livestock concentrations in the world,
Ethiopia is fast becoming an attractive hub for the leather and leatherproduct
industries. Finished leather products such as shoes, garments
and bags are manufactured by factories while tanneries process finished
and semi-processed leather for the domestic and export markets.
Ethiopia’s Bati and Sellalie types of famed sheepskin are highly sought
products in the international market for their high quality. Vast land
suitable for cotton production and the large trainable and cheap labor
force make the garment and textile industries a priority area of investment.
Steel/metals, cement, food/beverages and chemicals/chemical
products, among others, are important industries for investment.
Mining & Energy Resources
Ethiopia is rich in mining and energy resources. In mining, geological
studies indicate proven deposits of industrial and precious minerals
such as tantalum, platinum, gold, quartz, silica sand and iron
ore among others and construction materials, including limestone,
granite and marble. Among the above, for instance, gold production
has been progressing well over the years with a proven reserve estimated
at more than 500 tons. Oil and gas exploration has been going
on for sometime and natural gas from the fields of Calub in eastern
Ethiopia, which have a large proven reserve of natural gas, will hit
the market by 2015, according to the Ministry of Mines and Energy
of Ethiopia. Enormous opportunities greatly abound for foreign companies
to engage in oil, gas and mineral exploration and production
activities either individually or in joint ventures.
According to Ethiopian Electric Power Corporation (EEPCo), the
country has enormous potential for hydroelectric, geothermal, wind
and solar power and has the capacity to generate more than 45,000
MW, 5,000 MW and 10,000 MW of renewable energy from these
sources, respectively. With the current installed capacity of 2,000
MW, the country’s judicious investment in the various power sources
mentioned above will enable it to meet its growing domestic requirement
besides satisfying the surging demand of its neighboring countries
for power by quintupling the current capacity to 10,000 MW in
the next five to 10 years. In this regard, numerous power projects
worth billions of dollars are being implemented. Ethiopia has already
signed bilateral agreements with Djibouti, Kenya and Sudan to supply
electricity to this effect and transmission lines between these countries
and Ethiopia are progressing well. Ethiopia’s investment policy
allows independent power producers to invest in the sector and sell
bulk generation to EEPCo. With the country’s rich energy resource
potential from diverse sources, it is an area worth investing in.
Tourism
With its historic civilization, eight UNESCO-recognized World
Heritage sites, robust archeological locations and awe-inspiring natural
beauty with wide varieties of flora and fauna as well as rich and
diverse culture, Ethiopia is uniquely placed as an important travel
destination in Africa. In addition, its distinct honor and privilege in
JAPAN SPOTLIGHT • September / October 2010 31
Photo: Ethiopian Embassy of Tokyo
Large-scale commercial farm
Photos: Ethiopian Embassy of Tokyo
Corrugated iron sheet-manufacturing plant Ethiopian processed leather goods
Photos: Ethiopian Embassy of Tokyo
Gold mining at Lega Dembi, Ethiopia Tekeze hydroelectric dam, inaugurated
in 2009, is one of Ethiopia’s several
hydropower projects completed recently.
serving as the headquarters of the African Union and UNECA, among
others, make it an attractive location to establish world-class hotels,
restaurants and resorts. In this relation, there are many possibilities
for foreign investors to engage in this service sector.
According to the Ethiopian Investment Agency (EIA), the country’s
investment code provides a multitude of attractive incentives for foreign
investors, including tax holidays, duty exemption for capital
goods and construction material for establishing new businesses
and expanding existing enterprises, and free remittance of funds as
well as retention of foreign exchange earnings. Foreign investors are
allowed to invest in a broad range of economic activities either in the
form of 100% equity ownership or teaming up in joint ventures with
domestic partners. The government has also been exerting huge
efforts to improve the business environment in the country. In this
regard, a number of reform measures have been implemented, with
the EIA providing services under a one-stop-shop arrangement and
investors getting their investment permit in a matter of few hours.
The surge of both domestic and foreign investment in the country
clearly indicates the existence of a favorable business environment.
According to data from the National Bank of Ethiopia obtained from the
EIA, a total 29,796 domestic investment projects worth 257,535 million
birr (the Ethiopian currency) and a
total 4,918 foreign investment
projects worth 200,545 million
birr were approved by the EIA during
the 1992/93-2007/08 period.
Investors in Ethiopia enjoy a
variety of opportunities regarding
market access for their products.
Being a member of the Common
Market for Eastern and Southern
Africa (COMESA), a regional economic
grouping with a total population
of around 430 million and
exports to and imports from its
member states receiving preferential
tariff rates, Ethiopia is no doubt
a prime investment destination in
Africa. In addition, the country enjoys geographical proximity to the
Middle Eastern, Asian and European markets, providing ample opportunities
for exports. It also benefits from market access opportunities
given through the African Growth and Opportunity Act (AGOA) by the
United States, the Everything But Arms (EBA) initiative by the European
Union and a generalized system of preferences (GSP) offered by many
other countries, including Japan, as well as the aforementioned abundant
natural resources and favorable investment environment.
Therefore, it is high time for Japanese businesspeople and entrepreneurs,
especially small and medium enterprises and large trading
houses interested in the above-mentioned sectors, to benefit from the
attractive investment climate and incentives by investing in Ethiopia.
The Ethiopian Embassy in Tokyo will be more than happy to respond
to any queries by prospective Japanese investors. It is also ready and
willing to provide further information to them in their areas of interest.
In conclusion, I would like to express my sincere thanks to the
chairman and CEO of the Japan Economic Foundation (JEF), Mr.
Noboru Hatakeyama, and the editor-in-chief of Japan SPOTLIGHT,
Mr. Naoyuki Haraoka, for giving me the opportunity to introduce
Ethiopia and highlight the investment potential in the country to the
readers of this esteemed magazine.*
32 JAPAN SPOTLIGHT • September / October 2010
Special
Articles 1
Abdirashid Dulane is Ethiopian ambassador to Japan, also accredited to the
Republic of Korea, the Philippines and Indonesia.
Capital outlay of
approved investment projects by source
Source: Ethiopian Investment Agency
Photos: Ethiopian Embassy of Tokyo
Tis Issat, the source of the Blue
Nile
Lalibela, 12th-century rockhewn
church
Harar, the fourth most holiest
site of Islam
Mt. Arteale, a breath-taking
active volcano
Sof Omar Caves, one of the
largest cave systems in the world
Axum, the center of 2,000-
year-old ancient civilization
Gondar, home to 17th-century
Castle of Fasilades
Lucy, one of our early ancestors making
Ethiopia a cradle of humankind
* It is important to note that the executive director of the Ethiopian International
Institute for Peace and Development (EIIPD), Hon. Ato Sebhat Nega, made a productive
visit on May 23-28, 2010, at the invitation of Mr. Noboru Hatakeyama, JEF chairman
and CEO.
During his visit, Hon. Ato Sebhat held discussions with Mr. Hatakeyama on the possibilities
of future cooperation between EIIPD and JEF and they agreed to work together
on joint research programs and training projects and, to this effect, a memorandum of
understanding (MOU) was signed by the two principals on May 26, 2010. The signing
of the MOU has been indeed a successful outcome of the visit and laid the basis for the
two institutions to cooperate in areas of their mutual interest.
The implementation of the MOU is crucial for further opening up of opportunities not
only for close exchanges and cooperation between the two think tanks, but also for
enhancing the overall relationship between the two sisterly countries. The posting of
today’s article introducing my country’s investment potentials in Japan SPOTLIGHT, a
bimonthly publication of JEF, serves as a notable example in this noble undertaking.
Special
Articles 1
Since the turn of the 21st century, Africa has achieved robust economic
growth, unlike in the period of economic stagnation that affected
much of the continent in the 1980s and early 1990s. Although the
global economic crisis has had a negative impact on the economies of
Africa, the continent has proved resilient and it is expected to grow by
4.5% in 2010 and 5.2% in 2011, slowly returning to its pre-crisis
growth pattern, according to the “African Economic Outlook 2010”
report jointly published by the African Development Bank (AfDB),
OECD and UN Economic Commission for Africa (UNECA).
It has therefore become increasingly apparent that Africa will be the
next growth pole offering substantial business opportunities. This has
also been clearly indicated by a McKinsey Global Institute report,
which came out in June 2010 highlighting the progress and potential
of African economies. It is because of this fact that the continent is
attracting widespread attention from many parts of the world.
Rapid, Sustainable Economic Growth
Ethiopia is one of the fastest growing non-oil economies in Africa.
The country has registered on average 11.5% economic growth for
the last six consecutive years. Although the global economic crisis
has had an effect on its economy in terms of exports, flow of remittances,
food and oil price hikes and so on, the country was able to
withstand the crisis and maintain strong growth of 9.9% in
2008/2009. The Economist in its world economic forecast for 2010
has listed Ethiopia as the fifth fastest growing economy in the world.
Since the downfall of the Derg dictatorial regime, Ethiopia’s leadership
under the Ethiopian People’s Revolutionary Democratic Front
(EPRDF) has widely recognized that good governance and democracy
are a sine qua non for sustainable development. Thus the driving force
behind the above-mentioned fast economic growth is a democratic
developmental government seriously committed to defeating poverty
by ensuring rapid, sustainable economic growth and development.
The fourth national and regional elections, which were successfully
conducted on May 23, 2010, in a peaceful, free, fair and credible
manner, clearly attest to that and would undoubtedly give an added
impetus to the vision set by the government for the country to march
towards its ambitious journey of achieving the UN Millennium
Development Goals (MDGs) by 2015 and joining the ranks of middleincome
countries by 2020.
Moreover, the Ethiopian government, cognizant of the importance
of the role infrastructure plays in spurring the development and
expansion of the activities of other crucial sectors in an integrated
manner, has undertaken massive investment in building infrastructure
to speed up the country’s socioeconomic development. It has
also exerted enormous efforts to expand access to social services
such as education and health as well as other services with a view to
improving the people’s livelihood.
All these measures have resulted in a significant transformation in
the development of the country in the last two decades. Ethiopia’s
economy has significantly expanded and its GDP at current market
prices reached $35.2 billion in 2008/09. In purchasing power parity
(PPP) terms, its GDP has reached $70 billion, according to Ernst and
Young, thus becoming the fifth largest economy in sub-Saharan
Africa after South Africa, Nigeria, Angola and Sudan.
It is imperative to also note that Ethiopia is one of the 20 developing
countries in the world that are making absolute progress towards
meeting the MDGs as has been revealed in a progress report recently
published by the Overseas Development Institute (ODI) of Britain.
Ethiopia is an attractive venue for business. The country is
endowed with immense natural resources, which undoubtedly offer
huge potential for investment in different sectors including agriculture,
manufacturing, mining and energy, tourism and other services.
By ABDIRASHID Dulane
Photo: Ethiopian Embassy of Tokyo
Ethiopia’s real GDP growth
Source: Ethiopian Ministry of Finance & Economic Development
Hidase (Renaissance) Bridge on the Nile River: “a living monument and a symbol
of Ethio-Japanese friendship” as called by Prime Minister Meles Zenawi during its
inauguration in 2008.
Agricultural Potential
Agriculture is the sector contributing most to the livelihood of the
predominant majority of Ethiopia’s people. In this connection, the
Ethiopian government has put a lot of emphasis in transforming
smallholder agricultural production through the provision of appropriate
technologies, which has shown remarkable progress in recent
years. In addition, to supplement the efforts of smallholder farmers in
the lowlands where vast arable land and plentiful water resources are
available, the government has been encouraging private investors to
participate in large-scale development and commercialization of agriculture
by using their capital and technology. Coffee, cereals, oil
crops such as sesame, horticultural crops, rice and other food commodities,
crops for biofuel production, and cotton production for use
in the textile and garment industries, among others, are enticing
investment areas for production and value addition (agro-processing)
in the sector. Ethiopia, being home to one of the largest livestock populations
in the world, also enjoys a comparative advantage in the sector,
especially in large-scale animal breeding and meat and meat processing.
The government’s prioritization of the aforementioned gives
an added advantage to investors who venture in these sectors.
Manufacturing
The industrial sector in Ethiopia is still in its infancy, but it is a sector
whose growth is assured by the vast resource base available in the
country. With one of the largest livestock concentrations in the world,
Ethiopia is fast becoming an attractive hub for the leather and leatherproduct
industries. Finished leather products such as shoes, garments
and bags are manufactured by factories while tanneries process finished
and semi-processed leather for the domestic and export markets.
Ethiopia’s Bati and Sellalie types of famed sheepskin are highly sought
products in the international market for their high quality. Vast land
suitable for cotton production and the large trainable and cheap labor
force make the garment and textile industries a priority area of investment.
Steel/metals, cement, food/beverages and chemicals/chemical
products, among others, are important industries for investment.
Mining & Energy Resources
Ethiopia is rich in mining and energy resources. In mining, geological
studies indicate proven deposits of industrial and precious minerals
such as tantalum, platinum, gold, quartz, silica sand and iron
ore among others and construction materials, including limestone,
granite and marble. Among the above, for instance, gold production
has been progressing well over the years with a proven reserve estimated
at more than 500 tons. Oil and gas exploration has been going
on for sometime and natural gas from the fields of Calub in eastern
Ethiopia, which have a large proven reserve of natural gas, will hit
the market by 2015, according to the Ministry of Mines and Energy
of Ethiopia. Enormous opportunities greatly abound for foreign companies
to engage in oil, gas and mineral exploration and production
activities either individually or in joint ventures.
According to Ethiopian Electric Power Corporation (EEPCo), the
country has enormous potential for hydroelectric, geothermal, wind
and solar power and has the capacity to generate more than 45,000
MW, 5,000 MW and 10,000 MW of renewable energy from these
sources, respectively. With the current installed capacity of 2,000
MW, the country’s judicious investment in the various power sources
mentioned above will enable it to meet its growing domestic requirement
besides satisfying the surging demand of its neighboring countries
for power by quintupling the current capacity to 10,000 MW in
the next five to 10 years. In this regard, numerous power projects
worth billions of dollars are being implemented. Ethiopia has already
signed bilateral agreements with Djibouti, Kenya and Sudan to supply
electricity to this effect and transmission lines between these countries
and Ethiopia are progressing well. Ethiopia’s investment policy
allows independent power producers to invest in the sector and sell
bulk generation to EEPCo. With the country’s rich energy resource
potential from diverse sources, it is an area worth investing in.
Tourism
With its historic civilization, eight UNESCO-recognized World
Heritage sites, robust archeological locations and awe-inspiring natural
beauty with wide varieties of flora and fauna as well as rich and
diverse culture, Ethiopia is uniquely placed as an important travel
destination in Africa. In addition, its distinct honor and privilege in
JAPAN SPOTLIGHT • September / October 2010 31
Photo: Ethiopian Embassy of Tokyo
Large-scale commercial farm
Photos: Ethiopian Embassy of Tokyo
Corrugated iron sheet-manufacturing plant Ethiopian processed leather goods
Photos: Ethiopian Embassy of Tokyo
Gold mining at Lega Dembi, Ethiopia Tekeze hydroelectric dam, inaugurated
in 2009, is one of Ethiopia’s several
hydropower projects completed recently.
serving as the headquarters of the African Union and UNECA, among
others, make it an attractive location to establish world-class hotels,
restaurants and resorts. In this relation, there are many possibilities
for foreign investors to engage in this service sector.
According to the Ethiopian Investment Agency (EIA), the country’s
investment code provides a multitude of attractive incentives for foreign
investors, including tax holidays, duty exemption for capital
goods and construction material for establishing new businesses
and expanding existing enterprises, and free remittance of funds as
well as retention of foreign exchange earnings. Foreign investors are
allowed to invest in a broad range of economic activities either in the
form of 100% equity ownership or teaming up in joint ventures with
domestic partners. The government has also been exerting huge
efforts to improve the business environment in the country. In this
regard, a number of reform measures have been implemented, with
the EIA providing services under a one-stop-shop arrangement and
investors getting their investment permit in a matter of few hours.
The surge of both domestic and foreign investment in the country
clearly indicates the existence of a favorable business environment.
According to data from the National Bank of Ethiopia obtained from the
EIA, a total 29,796 domestic investment projects worth 257,535 million
birr (the Ethiopian currency) and a
total 4,918 foreign investment
projects worth 200,545 million
birr were approved by the EIA during
the 1992/93-2007/08 period.
Investors in Ethiopia enjoy a
variety of opportunities regarding
market access for their products.
Being a member of the Common
Market for Eastern and Southern
Africa (COMESA), a regional economic
grouping with a total population
of around 430 million and
exports to and imports from its
member states receiving preferential
tariff rates, Ethiopia is no doubt
a prime investment destination in
Africa. In addition, the country enjoys geographical proximity to the
Middle Eastern, Asian and European markets, providing ample opportunities
for exports. It also benefits from market access opportunities
given through the African Growth and Opportunity Act (AGOA) by the
United States, the Everything But Arms (EBA) initiative by the European
Union and a generalized system of preferences (GSP) offered by many
other countries, including Japan, as well as the aforementioned abundant
natural resources and favorable investment environment.
Therefore, it is high time for Japanese businesspeople and entrepreneurs,
especially small and medium enterprises and large trading
houses interested in the above-mentioned sectors, to benefit from the
attractive investment climate and incentives by investing in Ethiopia.
The Ethiopian Embassy in Tokyo will be more than happy to respond
to any queries by prospective Japanese investors. It is also ready and
willing to provide further information to them in their areas of interest.
In conclusion, I would like to express my sincere thanks to the
chairman and CEO of the Japan Economic Foundation (JEF), Mr.
Noboru Hatakeyama, and the editor-in-chief of Japan SPOTLIGHT,
Mr. Naoyuki Haraoka, for giving me the opportunity to introduce
Ethiopia and highlight the investment potential in the country to the
readers of this esteemed magazine.*
32 JAPAN SPOTLIGHT • September / October 2010
Special
Articles 1
Abdirashid Dulane is Ethiopian ambassador to Japan, also accredited to the
Republic of Korea, the Philippines and Indonesia.
Capital outlay of
approved investment projects by source
Source: Ethiopian Investment Agency
Photos: Ethiopian Embassy of Tokyo
Tis Issat, the source of the Blue
Nile
Lalibela, 12th-century rockhewn
church
Harar, the fourth most holiest
site of Islam
Mt. Arteale, a breath-taking
active volcano
Sof Omar Caves, one of the
largest cave systems in the world
Axum, the center of 2,000-
year-old ancient civilization
Gondar, home to 17th-century
Castle of Fasilades
Lucy, one of our early ancestors making
Ethiopia a cradle of humankind
* It is important to note that the executive director of the Ethiopian International
Institute for Peace and Development (EIIPD), Hon. Ato Sebhat Nega, made a productive
visit on May 23-28, 2010, at the invitation of Mr. Noboru Hatakeyama, JEF chairman
and CEO.
During his visit, Hon. Ato Sebhat held discussions with Mr. Hatakeyama on the possibilities
of future cooperation between EIIPD and JEF and they agreed to work together
on joint research programs and training projects and, to this effect, a memorandum of
understanding (MOU) was signed by the two principals on May 26, 2010. The signing
of the MOU has been indeed a successful outcome of the visit and laid the basis for the
two institutions to cooperate in areas of their mutual interest.
The implementation of the MOU is crucial for further opening up of opportunities not
only for close exchanges and cooperation between the two think tanks, but also for
enhancing the overall relationship between the two sisterly countries. The posting of
today’s article introducing my country’s investment potentials in Japan SPOTLIGHT, a
bimonthly publication of JEF, serves as a notable example in this noble undertaking.
Energy review saves Ethiopia 96m US dollars, says Word Bank
Energy review saves Ethiopia 96m US dollars, says Word Bank
Thursday 9 September 2010 Send
By Tesfa-Alem Tekle
September 8, 2010 (ADDIS ABABA) – The World Bank’s (WB) International Development Association (IDA) has said that funded electricity project in Ethiopia is saving the country’s rural household’s money and energy.
The energy crisis that hit Ethiopia in 2008 and 2009 has forced the government there to review the energy sector. This has led to a transformation in the approach to energy, including a switch from kerosene-fueled lighting to energy efficient light bulbs known as Compact Fluorescent Lamps (CFL).
In a statement seen by Sudan Tribune, the WB said that the initiative has helped relieve pressure from the country’s electricity supply grid and is saving millions of dollars. The newly introduced power approach has helped save Ethiopia an estimated US$96 million.
“The turnaround we are seeing in Ethiopia is encouraging,” says Luiz Maurer, a Senior Energy Specialist at the WB in Addis Ababa. “Not only is this lighting brighter, cleaner and more efficient, it is now affordable to the poorest people.’’
Recently the Ethiopian Electric and Power Corporation (EEPCo) announced that it will begin exporting power to Sudan in October 2010.Government officials are taking a more entrepreneurial approach to energy - every MegaWatt hour saved can be exported.
The corporation has signed an electricity export agreement with Sudan, Djibouti and Kenya following the massive multi-billion investments undertaken in different hydropower plants throughout the country.
An IDA financed transmission line will soon enable Ethiopia export clean hydro energy and generate foreign reserves for the country.
According to the World Bank, worldwide, 1.6 billion people still use kerosene to light their homes. In East Africa, 90 percent of rural households use the costly fuel, which is considered hazardous to human and environmental health.
Through the initiative–supported by the IDA and managed by its Africa Energy Unit (AFTEG) —the Ethiopian Government designed a comprehensive demand-side program that included the installation of capacitors and street lighting.
Local Addis Ababa resident Tsigereda Habtemariam replaced five bulbs in her home with CFLs, “They provide better lighting, create a pleasant feeling and the bill decreases from month to month,” she said.
Within three months of launching the initiative, with half the bulbs distributed, EEPCo have succeeded in reducing peak demand by 80 percent. Generating this energy using emergency diesel generators would have cost the country an estimated US$100 million, according to Maurer. The cost of the CFL distribution amounted to
September 8, 2010 (ADDIS ABABA) – The World Bank’s (WB) International Development Association (IDA) has said that funded electricity project in Ethiopia is saving the country’s rural household’s money and energy.
The energy crisis that hit Ethiopia in 2008 and 2009 has forced the government there to review the energy sector. This has led to a transformation in the approach to energy, including a switch from kerosene-fueled lighting to energy efficient light bulbs known as Compact Fluorescent Lamps (CFL).
In a statement seen by Sudan Tribune, the WB said that the initiative has helped relieve pressure from the country’s electricity supply grid and is saving millions of dollars. The newly introduced power approach has helped save Ethiopia an estimated US$96 million.
“The turnaround we are seeing in Ethiopia is encouraging,” says Luiz Maurer, a Senior Energy Specialist at the WB in Addis Ababa. “Not only is this lighting brighter, cleaner and more efficient, it is now affordable to the poorest people.’’
Recently the Ethiopian Electric and Power Corporation (EEPCo) announced that it will begin exporting power to Sudan in October 2010.Government officials are taking a more entrepreneurial approach to energy - every MegaWatt hour saved can be exported.
The corporation has signed an electricity export agreement with Sudan, Djibouti and Kenya following the massive multi-billion investments undertaken in different hydropower plants throughout the country.
An IDA financed transmission line will soon enable Ethiopia export clean hydro energy and generate foreign reserves for the country.
According to the World Bank, worldwide, 1.6 billion people still use kerosene to light their homes. In East Africa, 90 percent of rural households use the costly fuel, which is considered hazardous to human and environmental health.
Through the initiative–supported by the IDA and managed by its Africa Energy Unit (AFTEG) —the Ethiopian Government designed a comprehensive demand-side program that included the installation of capacitors and street lighting.
REDUCING ENERGY DEMAND
The Ethiopian government also distributed 5 million CFLs free to consumers in exchange for their incandescent bulbs, creating energy savings of 75 percent. The distribution coincided with a government-run awareness campaign called “Save Energy,” which highlighted the benefits of saving energy at home and work.Local Addis Ababa resident Tsigereda Habtemariam replaced five bulbs in her home with CFLs, “They provide better lighting, create a pleasant feeling and the bill decreases from month to month,” she said.
Within three months of launching the initiative, with half the bulbs distributed, EEPCo have succeeded in reducing peak demand by 80 percent. Generating this energy using emergency diesel generators would have cost the country an estimated US$100 million, according to Maurer. The cost of the CFL distribution amounted to
Monday, August 30, 2010
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