The Ethiopian Messenger 11

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The Ethiopian Messenger

ውድ አንባብያን!

Dear Readers,

ክቡር ጠቅላይ ሚኒስትር ዓብይ አህመድ ወደ ስልጣን ከመጡበት እ.ኤ.አ. ኤፕሪል 2 ቀን 2018 ጀምሮ ባሉት 100 ቀናት በተካሄደው ዘርፈ ብዙ ሪፎርም የኢትዮጵያ ሁኔታ በእጅጉ እየተቀየረ ይገኛል፡፡

The dramatic reforms implemented since Prime minister Abiy Ahmed took office on April 2, 2018, have changed the course of Ethiopia’s history in a matter of 100 days. History was made, not only at home but also across the Horn of Africa and beyond. However, PM Abiy’s most significant mark on history so far was the historic reconciliation with neighbouring Eritrea. The normalisation of relations between Ethiopia and Eritrea will boost peace and security in the region and the continent as a whole.

በአገር ውስጥ ብቻ ሳይወሰን በአፍሪካ ቀንድና አካባቢው ታሪካዊ ክንውኖች እየተመዘገቡ ይገኛሉ፡፡ በተለይም ከኤርትራ ጋር የተደረሰው የዕርቅና የሰላም ስምምነት በታሪክ ውስጥ ጉልህ ስፍራ ይይዛል፡፡ በሁለቱም አገራት የተደረሰው ግንኙነትን የማደስ ስምምነት ለክልላችን ብሎም ለአፍሪካ ሰላምና ደህንነት ከፍተኛ አስተዋፅኦ ይኖረዋል፡፡ በዚህም እትም ሶስተኛው ፅሁፍ ጠቅላይ ሚኒስትር ዓብይ አህመድ በጅቡቲ፣ ሱዳን፣ ኬንያ፣ ሶማሊያ እና ግብፅ ያደረጉት ጉብኝት ክፍለአህጉራዊ የኢኮኖሚ ውህደትና ትብብር የሚያፋጥን ስለመሆኑ ተዳሷል፡፡ እ.ኤ.አ. በ2018 ኢትዮጵያ በአፍሪካ ከፍተኛውን የኢኮኖሚ ዕድገት እንደምታስመዘግብ ይጠበቃል። እየተመዘገበ ያለው ከፍተኛ የኢኮኖሚ እድገት፣ አገሪቱ ያላት የተፈጥሮ ሀብት፣ ለሥራ ዝግጁ የሆነ የሰው ሀይል፣ በመንግስት የሚሰጡትን የተለያዩ የኢንቨስትመንት ማበረታቻዎች ተዳምረው አገራችን ከፍተኛ ቁጥር ያላቸውን ኢንቨስተሮች እየሳበች ትገኛለች፡፡ ከዚህ ጋር ተያይዞ በኢትዮጵያ ኢንቨስት ያደረጉ ስዊድናዊው አንድሪያስ ፍራንሰን በአገራችን ውስጥ ስላላቸው ኢንቨስትመንትና ተሞክሮ በማስመልከት የተደረገላቸውን ቃለ-መጠይቅ ቀርቧል፡፡ አሁን ካለው ዓለም አቀፍ የገበያ ሁኔታ ኢትዮጵያ ብሎም የአገራችን አርሶ አደሮች ማግኘት የሚገባቸውን ጥቅም ለማረጋገጥ መንግስት ከፍተኛ ትኩረት ሰጥቶ በመስራት ላይ ይገኛል፡፡ አምስተኛው ፅሁፍ ኢትዮጵያ ያለአግባብ በደች ካምፓኒ የተወሰደባትን የጤፍ የባለቤትነት መብት ለማስመለስ እየተደረገ ያለውን ጥረት ይዳስሳል፡፡ በመቀጠል በትግራይ ክልል ገርዓልታ ተራሮች በ5ኛውና በ15ኛው ክፍለ ዘመናት ውስጥ ከተራሮች ተፈልፍለው የተሰሩ የዋሻ ውስጥ አብያተ ክርስቲያናት የሚያስጐበኝ ፅሁፍ ቀርቧል፡፡ በመጨረሻም በአሁኑ ወቅት በአገራችን እየተካሄደ ካለው ለውጥና ሪፎርም አኳያ ለአገራችን ዕድገትና ልማት ከኢትዮጵያውያንና ትውልደ ኢትዮጵያውያን የሚጠበቀውን ተሳትፎና ድጋፍ የሚመለከት ፅሁፍ ቀርቧል፡፡ መልካም ንባብ የመፅሔት ዝግጅት ክፍል

የአርትኦት ኮሚቴ

PM Abiy Ahmed has also embarked on a regional tour that took him to Djibouti, Sudan, Kenya, Somalia and Egypt to increase regional economic integration and cooperation, as presented in our third article.

Things are also improving on the economic plan. Ethiopia is Africa’s top economic performer in 2018 and the country’s robust economic growth, abundant natural resources and workforce coupled with its numerous governmental incentives are attracting a growing number of investors.

We have interviewed Andreas Fransson, a Swedish entrepreneur, to learn more about his experience working in the country.

Our fifth article presents the efforts Ethiopia has made so far to reclaim the teff patent rights unfairly obtained by a Dutch company. Authorities have spared no effort to ensure that Ethiopia and its farmers benefit from new global markets.

Finally, we take you on a journey to the Gheralta mountains in Tigray, which are home to an extraordinary network of Ethiopian cave churches that were carved into the rock between the 5th and 15th centuries.

We wish you a pleasant reading and a great summer vacation.

The Editorial Team

Content

The EU and Ethiopia links at 43

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Ethiopia’s peaceful revolution

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A renewed regional integration push in the Horn of Africa 9 Interview with Andreas Fransson, founder of Fair Frank

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Ethiopia’s efforts to reclaim the unfairly obtained teff patent rights

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Hiking in the Gheralta Mountains, ‘Ethiopia’s Tibet’

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ግንቦት 20፣ የአገራችን ወቅታዊ ሁኔታ እና የዳያስፖራው ሚና፣

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Quarterly magazine of the Embassy of Ethiopia in Brussels. Editor: Embassy of Ethiopia in Brussels, Avenue de Tervuren 64, 1040 Etterbeek, Belgium. info@ethiopianembassy.be +32 2 771 32 94.

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EU-Ethiopia

The EU and Ethiopia links at 43: overview of a multi-faceted relationship The European Union and Ethiopia’s 43 years relationship has substantially deepened in June 2016, with the signing of a Strategic Engagement focusing on six pillars. Three major dialogues have been held so far, with the most recent one taking place in July 2018. The upcoming organisation of an EU-Ethiopia business forum in Brussels should further strengthen this fruitful partnership.

The EU-Ethiopia strategic engagement on peace and security took place in April 2018 in Addis Abeba.

The partnership between the EU and Ethiopia was formally forged when Ethiopia signed the LomĂŠ Convention in 1975.

However, the link only intensified after 1991, when the foreign policy orientation of Ethiopia shifted and became characterised by the determination to improve the lives of the Ethiopian people. It has since substantially deepened in June 2016, with the signing of a Strategic Engagement, which allows for the enhancement and restructuring of the partnership on bilateral issues to a more strategic level and reinforces cooperation between the two partners. It focuses on six pillars including regional peace and security; countering terrorism and violent radicalisation; migration;

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social and economic development, investment and trade; governance and human rights; and climate change and environmental cooperation that will be reviewed during sectoral dialogues, annual high-level meetings and regular senior officials meetings.

The closeness relationship is primarily due to the shared vision shared by Ethiopia and the EU when it comes to crucial issues such as development, stability and more recently, migration. In consequence, the EU has supported Ethiopian development and its people for many years, including by investing in infrastructure, food security and healthcare projects.

Human Right Dialogue Three sectoral dialogues have taken place so far. The first sectoral dialogue on governance and human rights took place in April 2017, when EU Special Representative for Human Rights, Stavros Lambrinidis, paid a visit to the country. Topics of the discussion included the rule of law (due process of law and detention conditions), economic and social rights (youth empowerment and children rights), and human rights in the context of migration. The two sides discussed progress and challenges and areas for potential improvements and future cooperation openly. The timing of the dialogue was particularly interesting, as the various discussions mainly focused on the many human rights and governance challenges in the context of the protests that took place between 2015 and 2016 in Ethiopia. It allowed the two partners to engage more deeply and constructively and find common ground in this crucial sector. The EU has been supportive of Ethiopia’s tremendous efforts in this regard for the past year, as Ethiopia concluded its orderly and peaceful transition with the reforms introduced by Prime minister Abiy Ahmed since April.

Cooperation on Security A sectorial dialogue on Security took place on 24 April 2018. Conversations revolved around regional peace and security across the Red Sea line and the situation in the Horn of Africa, cooperation in Somalia and South Sudan and the critical positions to be taken in the coming months to pursue the partner’s commitment in the region. The EU has been supporting the stability of the region for a long time, as demonstrated by the €40 million dedicated to promoting Peace and Stability in the Horn of Africa Region in the framework of the EU Trust Fund for Africa.

As the current chair of IGAD, Ethiopia has for its part made tremendous effort to facilitate the peace process mediated to offer a viable chance to end the conflict in Africa’s youngest nation by pursuing an agreement between South Sudan’s government and rebel groups. In this framework, South Sudan President Salva Kiir and rebel leader Riek Machar met for the first time in more than two years in Addis Ababa in June.

Ethiopia has also been contributing troops to AMISOM since 2014 and has a strong relationship with Somalia, as the two countries agree that peace and stability are crucial for the development and prosperity of the region. In this view, PM Abiy Ahmed and President Mohamed Abdullahi Mohamed decided to work together to fight terrorism including crossborder security challenges in June. However, the EU decided on a 20% reduction in AMISOM peacekeeper stipends in January 2016, and the UN Security Council has rejected proposals to use the UN’s assessed contributions to fund AMISOM, despite repeated requests by the AU. This decreased funding may compromise the gains made so far. AMISOM’s work in Somalia was made possible by key strategic partners such as the European Union. For the current transition strategy to succeed, AMISOM needs to partner with professional, and capable Somali security forces that are loyal to a democratic and legitimate government. There is, therefore, a hope that the increased dialogue on security between Ethiopia and the EU will lead

to mutual agreements that will take into account the longterm stability of the Horn of Africa.

The importance of business A sectoral dialogue on social and economic development, investment, trade and climate change has been held in Addis on 2 and 3 July 2018. The EU and Ethiopia appreciated the extremely constructive discussions, and Ethiopia demonstrated a firm commitment for liberalisation, opening and regional integration. Both sides agreed to continue to have this kind of discussion yearly, and progress was made to organise an EU-Ethiopia business forum in Brussels.

Enhancing trade ties between Ethiopia and European Union member States has been a priority since 2011 when Ethiopia hosted its first EU business forum in Addis Ababa, which intended to bring Ethiopian businesses closer to Europe.

The business forum is a signal that many active investors in Ethiopia have a strong link to the EU. Reinforcing economic ties between the world’s biggest single market and Africa’s fastest growing economy makes much sense. Ethiopian businesses enjoy preferential conditions to export to the EU with duty and quota-free entry for all products except arms. In addition to the EU being Ethiopia’s primary trading partner, there are currently around 300 European companies active in Ethiopia, making it a principal investor in this fast-growing African economy.

Reinforcing economic ties between the world’s biggest single market and Africa’s fastest growing economy makes much sense.

Boosting Employment More importantly, Ethiopia has identified generating a sustainable growth which benefits all as a top priority.

The lack of employment opportunities had indeed been recognised as one of the critical factors of the protests that shook the country in 2015-2016. The Second Growth and Transformation Plan (GTP II, 2016-2020) plans to create one million jobs in the sector, 70% of the opportunities are expected to be for Youth and Women. Also, the government is also pioneering new operational models to support job creation. For example, Ethiopia is focusing on building state-of-the-art industrial zones, which will provide jobs to both some of the more than 900,000 refugees the country is hosting and Ethiopian nationals from 2019. Organising a joint-business forum between the EU and Ethiopia is therefore entirely in line with the EU’s vision and interests in the country and should be a key priority in the continuation of the discussions.

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July - August - September 2018

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Politics

Ethiopia’s peaceful revolution: a new dawn for the Horn of Africa The dramatic reforms implemented since PM Abiy Ahmed took his oath of office on April 2, 2018, have changed the course of Ethiopia’s in a matter of 100 days. History was made, not only at home but also across the Horn of Africa region and beyond. However, PM Abiy’s biggest mark on history so far was the historic reconciliation with neighbouring Eritrea.

Ethiopia’s prime minister Abiy Ahmed and Eritrean president Isaias Afwerki embrace at the signing of the peace declaration between their countries in Asmara, Eritrea July 9, 2018

Since becoming Ethiopia’s Prime minister on 2 April 2018, Abiy Ahmed has brought breath-taking changes to the country. In less than a hundred days, the Premier reshuffled the cabinet, met with citizens all over the country and launched a unity and reconciliation campaign. The regional level was marked by a historic reconciliation with Eritrea that could echo in the whole Horn of Africa.

Political transformations Abiy Ahmed, Ethiopia’s new prime minister, has made sweeping changes at the political, economic and diplomatic

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levels in his first 100 days in office. Politically, PM Abiy Ahmed has first and foremost been engaging with the public by embarking on a national tour that has taken him to eight of Ethiopia’s nine regions so far to listen to the people’s grievances. He also responded to public dissatisfaction, that was exacerbated by mal-administration and lack of accountability, by appointing a new cabinet including 16 new cabinet members (out of 29), whose main tasks are the fight against corruption and strengthening accountability, and replaced a series of controversial civil servants.

From the outset, PM Abiy adopted a conciliatory stance to the country’s multiple groups, calling for forgiveness and unity, and immediately resolved to translate this rhetoric

into concrete actions, by pardoning tens of thousands of prisoners and lifting bans on websites and other media. He also reached out to foreign-based armed opposition groups and critics of the previous administration, asking them to engage and support the ongoing political and economic reforms in the country. As a result, many of them suspended armed operations and declared that the current reforms had convinced them to return to Ethiopia to pursue a peaceful struggle.

All this brought back peace and stability to the country, which in turns allowed for the six-month State of emergency instituted in February to be lifted two months early.

Ethiopian unity is at the highest it has been in decades, and so is public support for the Prime minister (80-90%, according to recent opinion polls). The scale and depth of PM Abiy’s reforms suggest that they are more than mere window dressing. More changes are to come, as the Premier has formed several task forces to look into legal and constitutional issues in the judiciary and finance sectors.

From the outset, PM Abiy adopted a conciliatory stance to the country’s multiple groups, calling for forgiveness and unity.

Tens of thousands of Ethiopians participated in a peaceful rally in support of PM Abiy Ahmed’s reforms in Addis Ababa on 23 June

Economical revamp PM Abiy reforms are not limited to the political sphere. In early June, he took the bold decision to privatise partially large state-owned companies such as Ethiopian airlines or Ethio-Telecom. Several factors have driven this drastic decision. Although Ethiopia’s economy has grown at a faster rate than any other African country in the past ten years, foreign investors and local businesses complain a shortage of foreign currencies like the US dollar is stifling the private sector.

Ethiopia’s growing economy has become increasingly complex and now requests increased investments from the private sector and foreign currency to promote exportations and the transformation of the economy, with job creation as the ultimate objective.

The support of key partners could greatly facilitate this process. For instance, a $2 billion foreign direct investment from the United Arab Emirates was announced on June 15, after a meeting in Addis Ababa between the premier and UAE Crown Prince Sheikh Mohamed Bin Zayed. Abu Dhabi’s interest in Ethiopia’s industrial park and the tourism, agriculture, manufacturing, renewable energy, healthcare, hospitality sectors formed the basis for the decision. The

UAE also deposed $1 billion in Ethiopia’s central bank to ease its foreign currency shortage. Other partners such as the EU could follow this example and encourage the reforms in Ethiopia in several ways, including job creation on the ground.

Besides, Ethiopia is keen on further opening up the economy to accelerate growth and relax its FDI inflow policy. For instance, the National Bank of Ethiopia reversed in June a decision to channel project loans exclusively through the Development Bank of Ethiopia and working capital via Commercial Bank of Ethiopia. Both financial institutions will revert to their earlier lending practices. Additional work will be done in ensuring prudent corporate governance of financial institutions.

Regional Renaissance On the diplomatic plan, PM Abiy has been touring neighbouring countries (Djibouti, Somalia, Sudan) as well as Egypt, Saudi Arabia and the Emirates Arab United to reinforce existing links and promote regional integration.

The new premier has also gained regional recognition for the part he played in bringing peace between Ethiopia and Eritrea.

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Thousands of Eritreans came out to give a brotherly welcome to PM Abiy Ahmed and the new era of peace between Eritrea and Ethiopia during his landmark visit to Asmara on 8 July

A true regional revolution is in the making since Eritrea accepted Ethiopia’s olive branch, which resulted in PM Abiy’s visit to Asmara – the first time an Ethiopian head of State did so in 18 years. The so-called “no war-no peace” stalemate between Eritrea and Ethiopia is now effectively over after the countries’ leaders signed a historic agreement to end two decades of hostility and restore diplomatic relations and normal ties between the countries.

Ethiopian Airlines resumed flights to Asmara on 18 July, and all holders of Ethiopian and Eritrean passports can now travel to each other countries and will be granted visa by the respective authorities upon arrival. Ethiopian Airlines’ historic flight ET0312 to Asmara departed Bole International Airport after an inauguration ceremony, and demand was so overwhelming that the national carrier had to operate two flights within 15 minutes of each other.

Several observers compared the recent developments between Ethiopia and Eritrea to the fall of the Berlin wall in 1989: a landmark moment that will find echo beyond the borders of the two countries. Eritrea should integrate IGAD soon, which should significantly improve the stability of the Horn of Africa and open prospects for real regional economic integration.

The so-called “no war-no peace” stalemate between Eritrea and Ethiopia is now effectively over.

The next steps All these developments took place over an extraordinarily short period. Politically, the next steps in Ethiopia will be to continue to discuss with the recently returned opposition parties and obtain consensus on several critical issues for the country, such as the current federal arrangement by adopting a “top-down” approach, as the process will be open and transparent.

The priority for the government is now to deliver the basic demands of the people namely: employment and absence of good governance. Although Ethiopia’s problems are not yet over, the people are supportive, galvanised and listening – and this is a victory in itself.

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Regional Affairs

A renewed regional integration push in the Horn of Africa Without wasting any time after becoming the Premier of Ethiopia, PM Abiy Ahmed embarked on a regional tour that took him to Djibouti, Sudan, Kenya, Somalia and Egypt to increase regional economic integration and cooperation.

However, the biggest breakthrough took place during his landmark visit to Eritrea, where he signed a peace deal which could change the course of the region.

Soon after being sworn into office, Prime minister Abiy Ahmed undertook a regional tour that took him to Djibouti, Sudan, Kenya, Somalia and Egypt. These first travels abroad reflect Ethiopia’s lasting commitment to increase the region’s stability, economic integration and cooperation by building trust among them.

Economic and infrastructure integration PM Abiy’s first stop was Djibouti, where he met with President Ismaïl Omar Guelleh on 29 April. The visit was the occasion for him to recall that the fates of the people of the two countries are tied together. Not only do they have

a high level of economic interdependence, as 95 per cent of Ethiopia’s trade goes through the port of Djibouti, but their populations also form a single society divided under two sovereign states, as members of the same families live on both sides of the border. Since these close social ties require a fitting economic relation, the two leaders tasked their respective Ministers of economic development and cooperation with detailed research to be submitted within a year. The establishment of the Ethio-Djibouti railway, a 756-kilometre electrified rail project which officially started operations this year, has boosted those mutual interests.

Djibouti also agreed to Ethiopia’s proposal to acquire a share of its port during PM Abiy’s stay in the country.

President Omar al-Bashir and PM Abiy Ahmed have agreed to jointly develop and manage Port Sudan.

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PM Abiy’s regional tour reflect Ethiopia’s lasting commitment to increase the region’s stability, economic integration and cooperation.

Barely a few days after leaving Djibouti, the new premier headed to Sudan on 2 May to promote the same agenda of economic integration. Following a constructive meeting with President Omar al-Bashir, the two countries signed multiple agreements to boost cooperation on a range of development activities, including the construction of a railway connecting Addis Ababa to Khartoum and the development and joint-management of Port Sudan.

Ethiopia’s viable options of ports in neighbouring countries include Port Sudan, Berbera, Mombasa, Lamu and Djibouti port. Therefore, Ethiopia becoming a shareholder of Port Sudan is a big step in the Prime Minister’s plan to utilise all the options for the future use.

Prime minister’s Abiy’s third stop was Nairobi, where he and President Uhuru Kenyatta committed to turning the border town of Moyale into a special economic zone to boost socioeconomic integration and jointly supervise and inspect the Lamu-Garissa-Isiolo-Moyale and Moyale-Hawassa-Addis Ababa road networks. Ethiopia is also set to acquire land in Kenya’s Lamu port to develop a logistics facilitation centre, which will speed up the Addis Ababa –Lamu road network project as freight would be transported from Ethiopia.

Towards greater peace and stability Prime minister Abiy Ahmed travelled to Somalia on 16 June, where he held lengthy discussions covering a wide range of matters of mutual interest including regional and global affairs with president Mohamed Abdullahi Mohamed. At a press conference held after their discussion in Mogadishu, Prime Minister Abiy stressed the need to adopt and implement a border and joint strategy plan to promote stability in the Horn of Africa and further highlighted the need to pay attention towards addressing extremism and

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regional conflicts, encourage trade and investment as well as to tackle poverty in the region.

“The new frontier for our region should be a closer and full regional integration where minds are open to ideas, and markets are open to trade,” PM Abiy pointed out. The Premier stressed that the two countries need to remain vigilant in counterterrorism efforts and give equal attention to address the underlying causes of violent extremism, namely regional conflict, lack of trade, investment, and poverty. Somalia’s President Mohamed Abdullahi

The normalisation of relations between Ethiopia and Eritrea is a boost for peace and security in the Horn of Africa region and on the continent as a whole.

Muhammad, on his part, said that he was committed to taking the relationship to the next level through the implementation of full economic integration between the two countries and promoting investment by developing infrastructure, including transportation, highway, energy and train. “Nothing can divide our two brotherly nations; it is our obligation to ensure peace and prosperity of our two great states through economic integration to lead our people

to prosperous future,” he added. President Mohamed also paid tribute to the tremendous sacrifices made by Ethiopian troops who serve in AMISOM in the fight against terrorist organisations that pose an existential threat not only to Somalia but also the region.

Working with Egypt beyond the Nile After months of a stalemate regarding the Nile waters negotiations, a breakthrough finally took place during PM Abiy’s visit to Egypt. The leaders of Ethiopia and Egypt vowed on 10 June to iron out their differences over the dam Ethiopia is building on the Nile River and agreed to take steps to put into effect a tripartite agreement - which also includes Sudan - to set up a fund for investing in infrastructure in the three countries. On the last day of PM Abiy’s visit, President al-Sisi described Egypt’s relations with Ethiopia as “strategic” and promised to maintain cooperation with Ethiopia for the best interests of both nations.

Prime Minister Abiy repeated that the People of Ethiopia have no intention or interest in harming the brotherly people of Egypt. Ethiopia is convinced that it can and has to use and develop the Nile to build its economy, but this should not be at the expense of the interests of Egypt and Sudan. Beyond the Nile issue, the two leaders agreed to work together in other ways, including industrialisation, road and railway connectivity.

Historic reconciliation with Eritrea Finally, the landmark visit of the Premier to Asmara and the peace agreement signed between Ethiopia and Eritrea on 9 July heralds a new chapter for the peoples of the two countries who share a common culture, language, and history. It is not an overstatement to claim that the peace agreement will completely transform the Horn of Africa for the better by increasing peace and stability and promoting

economic integration. The peace agreement will without a doubt have a positive impact on the Horn of Africa by getting the economic underpinnings of the region right and promoting sustainable peace and stability. International observers share this opinion, as the African Union declared the normalisation of relations between Ethiopia and Eritrea is a boost for peace and security in the Horn of Africa region and on the continent as a whole. The European Union also issued a statement saying that by breaking a twenty-yearold deadlock in bilateral relations, the agreement raised unprecedented prospects for reconciliation and paved the way for enhanced regional cooperation and stability in the region.

Beyond bilateral relations between Eritrea and Ethiopia, the agreement will also further stimulate the ambitions that Ethiopia and its neighbours – Djibouti, Sudan, Kenya, South Sudan and Somalia –have been pursuing through infrastructural development such as railway installation, road construction, power connectivity and joint port development for years. Overall, there are enormous potential complementarities between the two countries once these political advances are consolidated.

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The re-opening of two roads connecting it to two of Eritrea’s Red Sea ports ports of Assab and Massawa could boost Ethiopia’s exports and increase hard currency earnings

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Investing in Ethiopia

Interview with Andreas Fransson, founder of Fair Frank Ethiopia’s robust economy, abundant natural resources and trained workforce are attracting an increasing number of foreign entrepreneurs. We have interviewed Andreas Fransson, a Swedish entrepreneur, to learn more about his experience working in the country.

Ethiopia’s economy has been growing steadily in the past decade and a half, to the point of becoming Africa’s top economic performer in 2018. The country’s robust economic growth coupled with its conducive business environment, abundant natural resources and trained workforce, low energy costs and attractive incentives all combine to attract investors to this corner of the continent. In addition, governmental efforts have significantly improved the country’s business environment in the last fifteen years by reforming the public sector, in particular by opening a one-stop service at the Ethiopian Investment Commission.

This helped the registry and streamlining procedures to improve the registration process for starting a new business and developing access to credit information in addition to decentralising administrative tasks to the lower echelon in the government hierarchy.

In this dynamic environment, launching a business in Ethiopia is a fantastic opportunity and an exciting challenge for foreign entrepreneurs. One of them, Andreas Fransson is a Swedish entrepreneur based in the Netherlands who founded the fair-trade footwear label Fair Frank in October 2017. The Embassy of Ethiopia in Brussels interviewed him to learn more about his brand, his experience working in Ethiopia as a foreign entrepreneur and his plans for the future.

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Embassy of Ethiopia in Brussels: Can you tell us about the history of Fair Frank? How did you get to know Ethiopia and why did you choose to establish your company in the country?

Andreas Fransson: I started Fair Frank with the idea to connect the Ethiopian leather manufacturers with new customers abroad, and share the value created directly by the people who made the shoes. There is a concept of shared-value, what some people call “creative capitalism”, which is one of the building blocks of the brand. I’ve chosen Ethiopia because I’ve learned lived there for two years when I was working with H&M between 2014 and 2016 and I was helping them to build their sustainable supply chains in the country. Before that, I was doing the same thing with H&M in Bangladesh.

While I was living and working there, I noticed an opportunity with the leather sector in the country, and I came up with the idea for Fair Frank to make handmade classic leather shoes and connect local manufacturers with new customers abroad. Most importantly, I wanted to share the profit that was created from that with the Ethiopian craftsmen and women making the shoes.

Ethiopia has a long history of making leather products and has many leather manufacturers that date back hundreds

of years or longer, but not many foreign buyers are aware of that or do not want to take the risk of doing business in Ethiopia. So, I tried to bridge that gap and created the Fair Frank brand.

What sets Fair Frank apart from other brands?

Basically, Fair Frank sells shoes with a story attached, and we aim to breach the gap between the customers who buy the shoes and the people who make them. In this globalised world, the products we consume are disconnected from the people that make them. Each shoe is signed by one of the makers of the shoe, and customers can go on our website and follow the story of the people who made them. There is also a symbol explaining which part of the production process they have taken part in. It is a way to put a face on who contributed to making this product alive and where it comes from.

We also want to directly contribute to the well-being of the makers as well, and share the value created by offering our products. For every pair sold, we provide a fixed amount of five euros to a separate “Workers premium fund”, which is paid out equally to all the makers on top of the regular salary at the factory where they are made. I hope that as Fair Frank grows, we will be able to make a significant contribution to improve the lives of the workers and their communities.

The third thing that sets up apart is that we aim to produce shoes that are environmentally conscious, and we strive for them not to have a negative impact on the environment, both during production and after the sale. For example, we only use vegetable tanned leather. The production process of making leather is only using natural materials, as opposed to the chrome-tanned leather that is used for 90 per cent of the leather around the world and contains harmful chemicals and minerals. Some of our shoes are also using soles made partially from recycled materials. We aim to make environmentally and socially conscious products that will benefit directly to the makers of the shoes. We really want to make sure that the value provided by selling our products is directly shared with the makers because salaries are rather low in Ethiopia. Many factors are affecting that, but we want to ensure that some of the value created by our products is directly given back to them.

Western or European entrepreneurs often don’t know much about the business environment in Ethiopia and are worried about investing in the country. Can you tell us about your experience?

As I was living and working in Ethiopia, I’ve spent some time to scout for the right local partner to do business with. So, I think the most important thing to do business successfully in Ethiopia is to spend time and carefully choose the right partner for you because selecting the right partner for Fair Frank was absolutely crucial. After meeting a few shoe

manufacturers and leather manufacturers, I finally found Hafede Tannery in Alemgena, outside of Addis Ababa. We found out that we shared values deeper than business in itself, we agreed on socially and environmentally-conscious business principles. Working with Hafede Tannery has proven very important to start Fair Frank.

In Ethiopia, importing the complements and materials needed to produce the shoes and exporting the final product out of the country can be a little bit difficult because there are some customs procedures that you need to follow.

However, working with the right partner helped a lot. In my case, Hafede really went the extra mile ensure that we follow the local regulations. For example, we made sure that the importation of some materials needed for the shoes was imported duty-free under an import-voucher system, which allows importing duty-free the materials required for export purposes. They went the extra mile to make our partnership successful. I think that this is what is most important for entrepreneurs doing business in Ethiopia is to come to the country, spend some time there and meet partners face to face.

There are still many hurdles to come over. I know that the government is taking action to improve the business environment, but there is still some way to go. One thing that did prove slightly difficult is the regulation requiring a bank permit to export the final product. This means that you need a permit that says that your local partner has been paid before you ship the product. Therefore, the foreign buyer needs to pay in advance, which is riskier. This could be a hurdle to the business. This is one of the biggest obstacles I have faced while doing business in Ethiopia so far.

You’ve started Fair Frank very recently, but did you notice any change or improvement over the past months?

Fair Frank was founded in October 2017, so I didn’t notice significant changes during this last year or half a year.

However, since 2014, when I was working with many large textile apparel investments in Ethiopia, many improvements have been made. There is a great synchronisation between the private sector, the new foreign partners, investment agencies and development partners, which means they can work together to improve the business environment where it is necessary, which is great. However, there is a longer way to go to increase the potential of the country.

Many European entrepreneurs are interested in starting businesses in Ethiopia but don’t know much about the country. What would you say to them?

If you find the right business partner in Ethiopia, you will really increase your chances of being successful. There are many opportunities in Ethiopia, and there are many specific industries that the government has prioritised. It’s easy to identify opportunities, and if you find the best local partners with the right mindset, you will definitely increase your chances of success.

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Business

Ethiopia’s efforts to reclaim unfairly obtained teff patent rights High in protein and gluten-free, teff, Ethiopia staple grain, is growing in popularity and could offer Ethiopia the promise of lucrative markets in Western countries. However, despite the attention teff is getting, entering into the European market became impossible due to the unfairly granted patent by the European Patent Office (EPO) on teff process and end products to a Dutch company. Authorities have spared no effort to ensure that Ethiopia and its farmers benefit from new global markets.

Ethiopia’s native super grain Ethiopians have been planting teff for more than 4,000 years. Grown by an estimated 6.3 million farmers (both smallholder and commercial farmers), fields of the crop cover more than 20% of all land under cultivation. Teff is a low-risk, sustainable grain that thrives in both wet sands and dry desert conditions. A staple in Ethiopian cuisine, particularly when turned into the renowned spongy flatbread called injera, whole grain teff is a vital source of calcium, fibre, protein, iron and gluten-free. These highly nutritious qualities have increasingly been finding their way into health-food shops and supermarkets in Europe and America in recent years, where the booming health-food and gluten-free markets have turned teff into Ethiopia’s “second gift to the world” after coffee.

In 2006, the Ethiopian government, seeking to improve domestic food security in the country, placed an embargo on the exportation of teff grain and teff flour, both which play an essential role in overall diet quality of the population.

Only cooked teff products (such as injera) could be exported.

This decision allowed Ethiopia to avoid suffering the same fate as Bolivia during the “quinoa fever”, when the demand for this Andean grain skyrocketed, increasing its price tenfold between 2009 and 2013, provoking malnutrition and conflicts over land as farmers sell their entire crop to meet western demand.

The potential for an export boost Teff could make a substantial contribution to the economic development and poverty reduction in Ethiopia. The global market for teff is growing by the day: gluten-free products are a €4.3 bn industry globally with demand estimated to increase 10% each year between 2015 and 2020. Like quinoa, teff’s low-glycaemic index makes it suitable for diabetics – but the Ethiopian grain has twice the iron and three times more calcium than its Bolivian competitor.

Increased exports could be a boon to many of the country’s 6.2 million teff farmers because international market prices

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are often double local ones. Working for exporters could also allow local farmers to earn more and have a consistent business.

However, although Ethiopia is the largest producer by volume, there is still little Ethiopian teff on the international market. Most of the teff found in U.S. stores is from nonindigenous sources, such as U.S., India, Canada and the Netherlands, where farmers have started planting the crop.

To tap into this opportunity that could benefit millions of farmers in the country, while also generating valuable foreign currencies, the Ethiopian government lifted the embargo and implemented a pilot program to export teff in 2015. To safeguard the grain for locals, the pilot started with 48 commercial farmers commissioned to grow the crop while adhering to strict international standards. None of them were planting teff before, which was meant to ensure that their sales would not diminish domestic production.

Once harvested and milled, the entire product from these farms represents less than 1 per cent of the country’s overall teff production.

Unfairly obtained patent rights However, Dutch companies are currently claiming patent rights to the grain and are exercising those rights to the detriment of Ethiopian farmers, keeping Ethiopia from legally exporting teff to many EU countries. It all started in 2004 when the state entered into an agreement with a

Dutch company known as Health and Performance Food International (HPFI, part of the Soil and Crop Company) for the latter to generate hybrid teff seed and create new teff-based products. HPFI agreed to pay a third of its gross net income generated between 2007 & 2009 as well as an annual royalty fee based on net profit afterwards. Besides, the right to intellectual property over the teff varieties and any traditional farming knowledge was to remain with local Ethiopian communities.

However, breaking away from the agreement, the company cut all communications with the Ethiopian authorities in 2007 and unilaterally secured patent rights over teff products in the Netherlands. It then transferred rights to another company within the Soil and Company Group (Vennootschap Onder Firma, VOF) in 2008, which filled for patent licenses in parts of Europe, the U.S and Japan.

At the moment, the Dutch Company is only one that has the patent right to sell teff in the form of flour or cake in the Netherlands and Italy, Britain, Germany, and Austria.

Meanwhile, Ethiopia only received 4000 Euros.

The global market for teff is growing by the day, and Teff could make a substantial contribution to the economic development and poverty reduction in Ethiopia.

Ethiopian efforts Since the past decade, extensive efforts have been carried out to reclaim Ethiopia’s patent right for its teff grain. The Ethiopian Intellectual Property Office (EIPO) - along with other local and international partners - undertook various attempts to claim the patent right through negotiations,

public campaign and using legal means. In February 2018, the Ethiopian Intellectual Property Office joined its forces with ministries of Foreign Affairs, and Science and Technology, and Institutes of Ethiopian Agricultural Research and Ethiopian Biodiversity to speed up the patent reclamation process. However, these efforts have gone fruitless due to the Dutch company’s escaping mechanisms. For instance, VOF and the Sol and Crop Company (S&C) claim that they are being wrongly accused by mentioning the fact that HPFI was already bankrupt – which is contradicted by the close relation existing among the bankrupt HPFI, VOF and S & C. Ethiopia has finally decided that there is no any alternative way other than seeking justice through courts to acquire teff’s patent rights. In May 2018, the Ethiopian government delegated the Office of the Attorney General (AG) to file charges at the International Court of Arbitration against HPFI. On the bright side of things, Ethiopia’s endeavours have emboldened countries like Japan or the United States to refuse to accept the Dutch company’s claim, labelling it a fake patent.

A vital issue for Ethiopia

Teff’s patent rights would enable Ethiopia to supply the product legally to the European market and motivate farmers to improve and increase production. Accessing this critical market would be a step forward in diversifying the Ethiopian economy and assisting the country in the fight to alleviate poverty. The harms caused by these Dutch companies affect Ethiopian farmers whose traditional grain was stolen without their involvement. The Netherlands has been a vital economic partner for Ethiopia, investing in the country and supporting its development through development aid. It is therefore regrettable, if not contradictory that the Dutch government failed on its international obligations by not regulating a Dutch company’s monopolistic activities over Ethiopia’s teff.

Since the concerned companies are now operating in its territories, it should investigate the takeover process between the companies. At this point, the Government of The Netherlands is best situated to handle the problem, bearing in mind that this does not relieve any of the stakeholders from their respective obligations and responsibilities.

Ethiopian has done its part by deploying extensive efforts.

We can only hope that S & C, VOF, for their part, will honour their responsibility to respect the rights of Ethiopian farmers by halting their unfair monopoly.

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Ethiopians have been planting teff for more than 4,000 years

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Tourism

Hiking in the Gheralta Mountains, ‘Ethiopia’s Tibet’ Its attractiveness stems not only from the forest of rocky peaks that draw the horizons but also by the large number of chapels, churches, caves and caverns hidden in the folds of the mountains. The mazelike mountain system of Tigray is home to an extraordinary network of Ethiopian cave churches that was carved into the rock between the 5th and 15th centuries and painted with frescoes.

The sandstone cliffs of Gheralta in Tigray, Northern Ethiopia, which are 2580m tall, are the home to 35 hidden churches, some of which date back to the fourth century. Located 780kms north of Ethiopia’s capital city Addis Ababa, these churches are visited each Sunday by around 50 people each. When there are religious festivals, this figure can rise to hundreds.

always saved them from destruction. In the 10th Century, the Jewish queen ‘Judith’ tried to eradicate Christianity by burning many of the churches and their valuable Christian works. An invasion led by Ahmed ibn Ibrahim al-Ghazi ‘the Conqueror’, a Somali General in the 16thCentury, also destroyed many treasures and signs of the destruction can still be seen in many of the churches today.

While its steep outcrops of cliffs and table mountains with dramatic landscapes offer excellent hiking trails to lovers of trekking in the wild, for most tourists to Ethiopia, the main reason to come to the Gheralta region is for its about 35 churches, the largest concentration of cliff churches of Ethiopia. While Lalibela may be the place with the highest density of rock-hewn churches, the Tigray region is home to some of the country’s rarest and least visited rock-hewn Ethiopian Orthodox cave churches, some of which are more than 1,000 years old, and adorned with paintings dating back to the 16th century, representing various saints and biblical scenes.

The design of the church buildings is often compared to Tibetan architecture.

The churches in the Gheralta Mountains The rock-hewn churches of Gheralta possess some of the most colourful paintings and church treasures of Ethiopia, while many are set in the most stunning scenic landscapes.

Tigray Churches are famous for their picturesque location, beautiful history and somewhat challenging to reach. While some of them are an off-road drive and a 5-minute walk up the stone stairs, others require walking for hours, climbing vertical rock shelves, and an ability to let go of your fear of heights.

According to local tradition, these churches were constructed in the 4th Century by the first Christian kings of Ethiopia, Abraha and Atsbeha, after Saint Frumentius brought Christianity to the Axumite Kingdom in what is now northern Ethiopia in the middle of the 4th Century AD. Many of the hermitage caves were later expanded to become the enormous edifices that can now be admired flickering in candlelight. The churches have been hewn directly out of the mountainsides by hand, only their rock pillars left in place to prevent collapse.

The choice of these high, remote places was aimed at fending off would-be attackers although this has not

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The Tibet of Africa The design of the church buildings is often compared to Tibetan architecture, which sometimes owns Ethiopia the nickname of ‘The Tibet of Africa’. Irish explorer and travel writer Dervla Murphy notes in the prologue of “In Ethiopia with a Mule”, her account of her travels through Ethiopia first published in 1968, that: “There is a certain similarity between the developments of Ethiopian Christianity and Tibetan Buddhism. In both cases, when alien religions were brought to isolated countries the new teachings soon became diluted with ancient animist superstitions; and so these cuttings from two great world religions grew on their high plateaux into exotic plants, hardly recognisable as offshoots of their parent faiths.”

With its deep history and dramatic views, few landscapes in Africa offer a charm comparable to this mazelike mountain system of Tigray, whose appeal stems not only from the forest of rocky peaks that draw the horizons but by the large number of chapels, semi-caved churches and caves hidden in the folds of the mountains. These attributes make Gheralta mountain a great holiday destination, the perfect balance between a backpackers’ holiday and a cultural trip for history buffs.

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