The Ethiopian Messenger 12 - October 2018

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The Ethiopian Messenger

Dear Readers,

ውድ አንባቢያን ባለፉት ሶስት ወራት ( ሀምሌ-መስከረም) በአገራችን

የሪፎርም ስራው ተጠናክሮ

ከመቀጠሉ በተጨማሪ በአገር ውስጥ የተጀመረው የዕርቅና የሰላም ሂደት የማስፋትና ከኤርትራ ጋር የተፈፀመውን የሰላም ስምምነት ተግባራዊ የማድረግ ስራዎች ተሰርቷል። በዚሁ ወቅት የጠቅላይ ሚኒስትር ዓብይ ራዕይ እውን ለማድረግ የሚያስችሉ ህጎች ፀድቀው ወደ ትግበራ ገብቷል። በዲፕሎማሲው መስክ ክቡር ጠቅላይ ሚኒስትር ዶ/ር ዓብይ አህመድ በአፍሪካ ቀንድ እና በገልፍ ሀገራት፣ በመቀጠልም በአሜሪካ እና በቻይና የተሳካ ጉብኝት ካደረጉ በኋላ በቅርቡ ደግሞ በአውሮፓ የመጀመሪያቸው የሆነውን ጉብኝት ያካሂዳሉ። በዚሁ ጉብኝታቸው ከጀርመንዋ መራሂተ መንግስት አንጀላ ማርከል እና የፈረንሳይ ፕሬዝደንት ኢማኑኤል ማክሮን ጋር ተገናኝተው ይወያያሉ። ሶስተኛው ፅሁፍ በቅርቡ መንግስት የአገር ውስጥ እና አለምአቀፍ ኢንቨስተሮች በተወሰኑ ግዙፍ የመንግስት የንግድ ተቋማት ውስጥ በከፊል ድርሻ እንዲገዙ፣ እንዲሁም ሌሎች የመንግስት ፕሮጀክቶች በሙሉ ወይም በከፊል ወደ ግል ባለቤትነት እንዲዛወሩ በወሰነው መሰረት የሚኖረው ፋይዳ ይዳስሳል። የኢኮኖሚው ሪፎርም በርካታ ኢንቨስተሮችን ወደ አገሪቱ እንደሚስብ የሚያጠራጥር ባይሆንም የኤሌክትሪክ ሀይል አቅርቦት የአፍሪካ ተግዳሮት ሆኖ ቀጥሏል። ኢትዮጵያ በአፍሪካ የመጀመሪያ የሆነው በረጲ ደረቅ ቆሻሻ ሀይል መመንጫ በማቋቋም ካለፈው ነሀሴ ወር ጀምሮ ኤሌክትሪክ ማመንጨት ጀምሯል። በአፍሪካ የደረቅ ቆሻሻ አያያዝ ከፍተኛ የማህበራዊ ችግር በሆነበት ሁኔታ ይህ ፕሮጀክት ቆሻሻ አዲስ የሀብት ምንጭ መሆኑን አመላካች ነው። አምስተኛው ፅሁፍ የክረምት ማብቂያ እና የመጪው አመት ብሩህ ተስፋ ማብሰሪያ ምልክት ተደርጎ የሚወሰደው የኢትዮጵያውያን አዲስ ዓመት ወይም እንቁጣጣሽ በተመለከተ የሚዳስስ ይሆናል። በመጨረሻም በቅርቡ የተካሄደው 7ኛው የቻይና- አፍሪካ ትብብር ፎረም በሁለቱ ወገኖች

Between July and September 2018, Ethiopia has witnessed groundbreaking reforms and further advanced towards reconciliation, both within the country and with Eritrea.

Several laws were passed over the summer months to turn Prime minister Abiy’s vision into reality.

On the diplomatic front, after travelling across the Horn of Africa, visiting Gulf countries and making successful visits to the United States and China, PM Abiy Ahmed will now head to Europe for his first trip to the continent as a Prime minister, where he will meet German Chancellor Angela Merkel and French President Emmanuel Macron.

The impact of Ethiopia’s recent decision to allow local and international investors to buy stakes in some of its largest stateowned enterprises and to seek the full or partial sale of other projects is explored in our third article.

While these economic reforms will undoubtedly attract more investors to the country, energy production remains a challenge on the African continent.

This is the reason Ethiopia built the Reppie-waste-to-energy project, Africa’s first ever waste-to-energy facility, which became operational in August. Waste incineration will turn one of Africa’s most challenging social problems, the management of waste, into a source of new wealth.

Our fifth article presents the meaning of the Ethiopian New Year, or Enkutatash, which took place in September and symbolises the end of rainy season and the return of bright sunny days and was welcomed with renewed hope and new plans in Ethiopia.

Finally, we tackle Ethiopia-China relationships through an interview with our new Ambassador, H.E. Grum Abay, who talked about the high expectations in China and Africa in the run-up to the 7th Forum on China-Africa Cooperation.

ስለሚጠበቀው ተስፋ እና የኢትዮ- ቻይና ግንኙነት አስመልክቶ በቅርቡ በብራስልስ የኢፌዲሪ ኤምባሲ አምባሳደር ሆነው የተሾሙት ክቡር አምባሳደር ግሩም ዓባይ ጋር የተደረገውን ቃለ መጠይቅ ቀርቧል።

መልካም ንባብ

Most sincerely, The Editorial Team

የአርትኦት ኮሚቴ

Content

Prime Minister Abiy Ahmed is heading towards Europe

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History in the making (III): Making change sustainable

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The Horn of Africa’s Season of Peace

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Ethiopia’s reforms will boost foreign investment in the country

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The Reppie Waste-to-Energy Project, Africa’s first waste to energy facility

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The Meaning of the Ethiopian New Year

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Ambassador Grum Abay: “Ethiopia has a strategic relationship with China.”

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በአገራዊው ለውጥ የዲያስፖራው ተሳትፎ

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Quarterly magazine of the Embassy of Ethiopia in Brussels. Editor: Embassy of Ethiopia in Brussels, info@ethiopianembassy.be +32 2 771 32 94.

January - February - March 2018

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EU-Ethiopia

Prime Minister Abiy Ahmed is heading towards Europe After travelling across the Horn of Africa, visiting Gulf countries and making successful visits to the United States and China, Abiy Ahmed will now head to Europe for his first trip to the continent as a Prime minister, where he will meet with EU leaders, German Chancellor Angela Merkel, French President Emmanuel Macron and hold a meeting with the Ethiopian diaspora in Europe.

German Chancellor Angela Merkel visited Ethiopia in October 2016

Since he was sworn-in in April 2018, Prime Minister Abiy Ahmed has been transforming Ethiopia at a breath-taking pace. His reforms have been felt not only in the country but also very much on the regional and international scenes. Not content with instituting substantial political reforms during his first months in office, he also managed to strengthen Ethiopia’s brotherly relationship with its neighbours and did the unthinkable by making peace with Eritrea.

Following these mind-blowing developments, both international organisations such as the United Nations and the African Union and bilateral partners have expressed their support to Ethiopia’s reforms and indicated their desire to accompany the country on its upward path. After travelling across the Horn of Africa, visiting Gulf countries and making successful visits to the United States and China, Abiy Ahmed will now head to Europe for his first trip to the continent as a Prime minister.

World Tour Soon after being sworn into office, Prime minister Abiy Ahmed undertook a regional tour to Djibouti, Sudan,

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The Ethiopian Messenger

Kenya, Somalia and Egypt. These first travels abroad were a reflection of Ethiopia’s lasting commitment to increase the region’s stability, economic integration and cooperation.

In May 2018, the Prime minister made his first official trip outside of the African continent and visited the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia.

This visit resulted in the release of thousands of Ethiopian nationals being imprisoned in the two Gulf countries and to an increased economic cooperation. The United Arab Emirates pledged a total of $3 billion in aid and investments to Ethiopia in a major show of support for the new prime minister following his meeting with Abu Dhabi’s crown prince, Sheikh Mohamed Bin Zayed.

He later won over the Ethiopian diaspora in the United States during his July outreach tour aiming at encouraging Ethiopians from abroad to get involved in the reforms of the country and build its future. Abiy’s meetings in Washington, Los Angeles and Minneapolis attracted tens of thousands of members of the diaspora united by hope and a will to support their homeland. More recently, Prime minister Abiy flew to Beijing to participate on the 7th Forum on

China-Africa relations (FOCAC), where China agreed to extend Ethiopia’s loan payment period for the Addis AbabaDjibouti railway and to revise interest rates following a meeting with President Xi Jinping. After this partial world tour, Abiy Ahmed will now be heading to Paris, Brussels and Berlin. In Brussels, the Ethiopian Premier will meet with EU leaders to discuss bilateral and regional issues.

France believes in the private sector The relationship between Ethiopia and France goes back a long way with an agreement to respect each other’s sovereignty signed between the King of France and the King of Shoa in central Ethiopia in 1836. During Emperor Menelik’s reign ((1889-1913), the 781 km Ethio-Djibouti railroad project was started with the support of France, providing Ethiopia with access to the port of Djibouti. The railway played a vital role in the development of Ethiopia during the last century and remains a reminder of the close relations between Ethiopia and France.

President Emmanuel Macron called Prime Minister Abiy Ahmed on French National Holiday to congratulate him on the historic breakthrough achieved between Ethiopia and Eritrea. During the telephone conversation, President Macron affirmed France’s support for Ethiopia’s reforms and invited him to visit France, adding that, “France and French businesses are available to accompany reforms.”

Several companies are currently active in Ethiopia.

Alstom has signed a € 250 million contract with Metals & Engineering Corporation (METEC) to supply turbines and generators for the hydro power plant of the Grand Renaissance dam, a Peugeot factory was inaugurated in Wukro in 2016 and Vergnet, a global leading renewable energy producer, was contracted by the government to build the Ashegoda Wind Farm, the biggest wind farm in sub-Saharan Africa. The French beverage giant Castel, one of the world’s biggest producers of wines and beers, operates in Ethiopia since 1998 as BGI Ethiopia PLC. and even started its first production of Ethiopian Rift Valley wine in 2014.

But it is true that although the economic cooperation between France and Ethiopia has been increasing steadily in recent years, it is still lagging compared to Ethiopia’s relationship with other countries. However, there are several signs that the state of things will change soon. In early July, Emmanuel Macron advocated for a new partnership with Africa, prioritising the role of entrepreneurship in driving Africa’s renaissance, highlighting the importance of the private sector and, most importantly, saying Africa’s future was and should be in Africa’s hands. Given the common view shared by France and Ethiopia on this issue, there is no doubt that the old friendship will substantially improve to turn into a mutually beneficial economic relationship between the two countries following Abiy Ahmed’s stay in Paris on 28 and 29 October.

Germany’s support development

for

stability

and

commend the peace agreement between Ethiopia and Eritrea. Germany regards Ethiopia as a strategic partner, and the Horn of Africa is one of the most important geopolitical regions in Africa for Berlin. The recent reforms have pushed Germany to make plans to work more closely and expand its cooperation with Ethiopia. In the crisis-stricken Horn of Africa, Ethiopia is a stable power, but the turmoil that has hit some parts of the country in recent years had made it increasingly difficult for it to assume this role. But with PM Abiy in power, the situation considerably improved.

France and Germany understand that it makes strategic sense to rally behind Eritrea and Ethiopia’s peace initiative.

The German government wants to encourage the new prime minister. Ethiopia is already included in Germany’s G20 initiative “Compact with Africa” aiming to attract more private investment to selected African countries and in August, Germany gave a €100 million grant to Ethiopia to complement the Government ’s efforts in creating more job opportunities for its citizens. Ethiopia is already a key country for the German development cooperation agency, GIZ, and is home to one of its biggest offices worldwide and has played a significant role in the areas of agricultural and technical and vocational training sector which are helpful in job creation for the youth.

A new opportunity lies ahead when PM Abiy will visit Germany from 30 to 31 October, as German businesses have been watching the latest developments in Ethiopia with interest. The government is also building huge industrial parks, expanding the road network and has regained access to the ports of Assab and Massawa, which are part of a major trade route between Europe and Asia.

As a result, exports could become a great deal cheaper.

Entrepreneurs who are interested in building up the manufacturing sector will have a chance to take a closer look in November when a delegation from the GermanAfrican Business Association will visit Ethiopia. Finally, PM Abiy will take his “Break the Wall, Build a Bridge” tour to Europe by meeting Ethiopians living in EU countries on October 31 in Frankfurt.

France and Germany both understand that it makes strategic sense, from a political, humanitarian and security perspective to rally behind Eritrea and Ethiopia’s peace initiative and invest in the process in a way that it touches on development transformation. Hopefully, other partners will follow their lead.

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Late August, German Chancellor Merkel called Prime minister Abiy to congratulate him on bringing promising results in the ongoing economic and political reforms and

January - February - March 2018

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Political Affairs

History in the making part III: Making change sustainable Between July and September 2018, Ethiopia has witnessed groundbreaking reforms and further advanced towards reconciliation, both within the country and with Eritrea.

Implementing the change Several laws were passed over the summer months to turn Prime minister Abiy’s vision into reality. Following the Amnesty law ratified on 28 June 2018, Ethiopia’s parliament removed three groups from the country’s list of terrorists organisations, including Arbegnoch Ginbot 7, the Oromo Liberation Front (OLF) and the Ogaden National Liberation Front (ONLF). Furthermore, previously blocked media outlets operated by these groups, such as Ethiopian Satellite Television (ESaT) and Oromia Media Network (OBN), were deblocked and even opened offices in Ethiopia to broadcast their programs within the country.

For the past months, the ruling party EPRDF and opposition parties have also been discussing intensively on how to amend key laws such as the law governing Civil Society Organizations. With this aim in mind, a new committee was established, and a draft amendment is currently being discussed by representatives of the society in the capital Addis Ababa and different regions of the country.

Finally, the macroeconomic advisory body established

by Prime Minister Abiy Ahmed prepared a “privatisation guideline” on 26 August 2018 to implement the EPRDF executive committee’s decision of June 2018 to partially privatise public owned enterprises such as Ethiopian Airlines

and EthioTelecoms. Based on the guideline, preparations are underway to sell shares to private investors.

Building up the peace The peace deal brokered between Ethiopia and Eritrea at the Head of State level has gradually touched the ground.

Both countries have formally reopened their Embassies in Addis Ababa and Asmara and have appointed Ambassadors.

In July, Ethiopian Airlines resumed flights to Asmara and preparations are underway to fully operationalise the road linking the ports of Massawa and Assab to Ethiopia, which will offer the country new accesses to the sea. In early September, an Ethiopian Ship even decked in Massawa for the first time in decades to transport zinc from Eritrea to China.

Two months after their historical reconciliation, a more detailed peace agreement was formally signed by Ethiopia and Eritrea in Saudi Arabia on 18 September 2018 in the presence of UN Secretary-General Antonio Guterres. It contains seven articles on critical issues ranging from the implementation of the Ethio-Eritrea boundary Commission decision to establishing special economic zones in the two

The Ethiopian Embassy in Eritrea reopened on September 6 in presence of PM Abiy Ahmed and President Isayas Afwerki

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The Ethiopian Messenger

countries and working together to promote regional and global peace and security.

The Ethiopian New year celebrated on 11 September was a happy occasion at many levels. Not only did Prime Minister Abiy and President Isayas attend celebrations organised by the military on the Eastern border (Afar); and in the central border (Zalambesa), but two border crossings reopened on the same day. In the presence of their defence forces, Prime Minister Abiy Ahmed and President Isaias Afwerki opened the frontier at Bure, at the easternmost end of their shared border- that was once an area of intense fighting.

Moving reunions Families separated on both side of the border were finally able to reconnect in emotional retrouvailles. Brothers, sisters and family members who, despite living nearby (less than a mile in some places), had been unable to meet for nearly two decades, met and had their lunch together. Two sisters, respectively members of the Eritrean and Ethiopian armies and deployed on the same central front, had the chance to hug and reminisce about their childhood. Separated family members met and dined together.

Families separated on both side of the border were finally able to reconnect in emotional retrouvailles.

An Ethiopian citizen, was reunited with long-lost daughters in Eritrea after 16 years of separation

whole region. In the words of the EU’s special envoy to the Horn of Africa, Alex Rondos, the economic and political reforms witnessed in Ethiopia have had an “infectious effect in the Horn of Africa”. Following Ethiopia and Eritrea’s deal to end hostilities between them and to cooperate; the Presidents of South Sudan and Somalia have visited Asmara as well and agreed to join hands and work together for the interest of their respective people and countries. The meeting between President Omar al-Bashir of Sudan and President Ismael Omar Gueleh of Djibouti with President Isayas Afeworki was also seen as a breakthrough to end the deadlock, notably between Djibouti and Eritrea due to their border conflict and the alleged Djiboutian prisoners remaining in Eritrea. Similarly, the meeting between the leaders of Sudan and Eritrea is expected to ease the tension that has appeared recently in the border (Kassala area) between the two countries.

Remaining challenges

Ever since the opening of the border, Eritreans have been flooding to Ethiopia, mainly to the northern cities of Adigrat and Mekelle to shop consumables, commodities and construction materials such as cement. Many Ethiopians are also rediscovering or visiting for the first time Eritrean towns such as Asmara and the Red-Sea city of Massawa. Travellers from both sides are currently getting in and out without visa.

An ID card is enough to enter and return to their respective countries. Similarly, the currencies of both countries (the Ethiopian Birr and the Eritrean Nakfa) are being maintained at the rate of 1 to 1.

Despite an incredible change of course and these positive developments, Ethiopia is not immune to challenges. On the one hand, transition to a more open system is proved to be challenging. On the other hand, two of the fundamental issues raised by Ethiopian citizens for the past three years, i.e. the need to create jobs for the millions of youngsters who join the labour market every year and the absence of good governance at different levels of the administration, remain to be dealt with. Those issues were arguably the main reasons for hundreds of thousands of youth to protest against the government.

Despite the excitement and sense of urgency that accompanied the reconciliation, both countries will have to keep planning for the long term. It should not be forgotten that one of the main causes for Eritrea’s aggression on the Ethiopian territory in 1998 was economic issues, specifically the use of currency; and it is therefore of high time to regulate the activities in the border area. One such regulating mechanism could be to limit the amount that could be traded using both currencies in the border areas per period. Such decisions would require in turn detailed guidelines and procedures discussed and agreed upon by both sides.

Furthermore, challenges concerning strengthening institutions, setting the economy on a firm footing and restoring stability to avert seemingly ethnic-based conflict should be among the priority areas of engagement for the government in the months and years to come. But as many as might these challenges be, Ethiopia is set to build upon what has been started in 1991 to realise and ensure the wellbeing of the Ethiopian people and bring widespread democracy to the whole country, a noble cause for which tens of thousands of men and women sacrificed their precious lives. Furthermore, a peaceful air is blowing in the Horn of Africa, and it is more than ever necessary to bring the different countries of the area together to pacify what is known as a turbulent region.

Infectious Peace

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The deep reform unfolding in Ethiopia is positively and constructively impacting politics and relationships in the

January - February - March 2018

7

Regional Affairs

The Horn of Africa’s Season of Peace A new wind of stability is blowing in the Horn of Africa, as countries that had been at odds with each other for years have now reconciled. Now that the Djibouti - Eritrea standoff, the final rift that needed to be solved to restore durable peace to the Horn of Africa region, has come to an end, the best is yet to come for the Horn of Africa.

A new wind of stability is blowing in the Horn of Africa as countries that had been at odds with each other for years have now reconciled. Historical developments took place in the region over the last months, and PM Dr Abiy Ahmed played a crucial role in ushering this new chapter in the history of the Horn.

In his address to the 73rd United Nations General Assembly on September 28, Dr Workneh Gebeyehu, the Foreign Minister of Ethiopia, said that the momentous changes that took place in the country had created peace dividends in the whole neighbourhood.

Regional reconciliation In the previous three months, Prime Minister Dr Abiy has launched a significant reconciliation process across the region that ensured the normalisation of relationships between the countries of the Horn. Ethiopia and Eritrea have opened a new chapter in their relationship, ending two decades of conflict and charting a future in which

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The Ethiopian Messenger

their bilateral affairs will reflect the longstanding cultural ties between the peoples of the two countries. Somalia and Eritrea have reconciled their differences and re-established diplomatic relations. Eritrea, Ethiopia and Somalia held a Trilateral Summit early September in Asmara, and their Foreign Ministers then visited Djibouti, opening a new phase in relations between Djibouti and Eritrea.

On 12 September, the South Sudanese parties had signed the Revitalized Peace Agreement for South Sudan at an Extraordinary IGAD Summit, offering the real prospect for peace in South Sudan after five years of civil war.

In mid-September, Prime Minister Dr Abiy Ahmed and President Isais Afeworki of Eritrea signed a seven-point cooperation agreement in Jeddah, Saudi Arabia, to cement the positive relations between them. The peace deal resulted in the restoration of normal relations between the countries, on the basis of the close bonds of geography, history and culture between the two nations and their peoples.

The kingdom of Saudi Arabia praised the leaders of Ethiopia and Eritrea for exercising leadership and courage to restore the brotherly relations between the two countries, thus forming the foundation for a new phase that will bring significant developments in the relationships between the two nations in all fields.

Barely a few days later, Presidents Ismaïl Omar Guelleh of Djibouti and Isaias Afwerki of Eritrea met and shook hands on 17 September in Jeddah, Saudi Arabia, for historic talks, a decade after a border conflict and strained ties.

African mediation It should be noted that these diplomatic successes were the results of African endeavours. Ethiopia PM Abiy Ahmed and Somalia President Mohamed Abdullahi were the ones who hammered out a resolution for the longstanding border dispute between Eritrea and Djibouti. The talks with President Isaias in Asmara were followed by a visit of the Foreign ministers of Ethiopia, Somalia and Eritrea to Djibouti in a round of shuttle diplomacy that bids fair to change the political paradigm of the Horn of Africa.

The reconciliation between Eritrea and Djibouti, in particular, is a real example of an African Solution to an African problem. The two countries agreed to resolve their ten-year-old dispute through peaceful dialogue and negotiation after the mediation of the Ethiopian and Somalian leaders.

The Ethiopian Minister of Foreign, Dr Workneh Gebeyehu, led a delegation to Djibouti where he presented a message of peace from Eritrea’s President Isaias to the President Ismail Omar Guelleh, who seized this opportunity to resolve its longstanding conflict Eritrea and normalise Djibouti’s relationship with its northern neighbour.

The agreement will have a significant impact on the peace and stability of the Horn of Africa, which Ethiopia has been championing for years.

Lasting peace These successive peace deals offer a successful springboard for Ethiopia’s grand diplomacy for the benefit of the whole of East Africa. Earlier this year, Ethiopia had brought a close to its own chapter of conflict with Eritrea and immediately focused its efforts on resolving and mediating any remaining disputes between its immediate neighbours.

This was a milestone towards ensuring regional peace, that will change the political landscape of Horn of Africa. As the Foreign Ministers of Ethiopia, Eritrea, Djibouti and Somalia Foreign Affairs have confirmed in their joint Statement at the United Nations General Assembly in September, this is another significant step in ensuring peace and stability and economic integration of the Horn of Africa and Africa at large.

countries cooperate, we can resolve our longstanding disputes and ensure the transition to peace and development in our region.” UN Secretary-General Antonio Guterres noted that the rapprochement between Eritrea, Ethiopia and Djibouti will restore peace and stability in the region and that the United Nations is ready to support countries in the Horn of Africa in consolidating the recent gains.

The new peace spirit will play a significant role in strengthening IGAD, by uniting member states position on the various regional peace deals.

A stronger IGAD The new peace spirit will play a significant role in strengthening the regional inter-governmental organisation IGAD, by uniting member states position on the various regional peace deals, as observed on its 33rd Extra-ordinary session of Heads of State and Government meeting held in Addis Ababa in September.

In his opening remark, Prime Minister and Chairperson of IGAD Abiy Ahmed said that the meeting had been convened after Ethiopia and Eritrea, Eritrea and Djibouti, and Sudan and Eritrea had reconciled and started processes of normalisation and rapprochement.

The restoration of peace and fraternity between and among the members of the regional community has created a conducive environment to lift relations to a higher level and pave the way for economic integration. PM Abiy Ahmed thanked Sudan’s President Omer al-Bashir for his leadership of the IGAD-mediated South Sudan talks in Khartoum and President Yoweri Museveni of Uganda for his role.

He also applauded the positive gesture extended by Kenya for the mediation process to be continued and concluded in Khartoum. Above all, he thanked the conflicting parties and other partners for their tireless efforts and commitment to close down the dark chapter of conflict and respond to the aspirations and hopes of South Sudanese people by signing the Revitalized Agreement on the Resolution of Conflict in South Sudan.

Most political and security analysts saw the Djibouti - Eritrea standoff as the final rift needed to be solved to restore durable peace to the Horn of Africa region. Now that this chapter has come to an end, the best is yet to come for the Horn of Africa.

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Indeed, this peace agreement is another step in fulfilling the prophecy of Ethiopia’s Prime Minister: “If we neighbouring

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Economy

Ethiopia’s reforms will boost foreign investment in the country Since June, Prime minister Abiy Ahmed has implemented reforms to transform the country’s economic landscape. Ethiopia’s decision to allow local and international investors to buy stakes in some of its largest state-owned enterprises and to seek the full or partial sale of other projects will attract more investors to the country.

Ethiopia has sustained double-digit growth over the past fifteen years, making it a star performer on the African continent. According to the World Bank, the country was one of the fastest growing economies in the world in 2017, with a growth of 8.3 per cent. Foreign Direct Investment (FDI) flows followed a similar trend: they have almost quadrupled in a little more than five years, going from under USD 1.2 billion in 2010/11 to a record high USD 4.2 billion in 2016/17. This trend shows that Ethiopia is on the right path to becoming Africa’s prime investment destination, especially as the government is implementing reforms to open the economy further.

Striving for growth Ethiopia has attracted more than USD 3.75 billion Foreign Direct Investment (FDI) during the concluded fiscal year.

According to the Ethiopian Investment Commission, the achievement was low compared to the original plan, which targeted to attract investment worth of 4.6 billion USD. Challenges such as a shortage of foreign currency and the unrest observed in some parts of the country have negatively contributed to the reduction of the FDI inflow over the past months.

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The country also became the second largest recipient of FDI in Africa after Egypt, up from the fifth position in 2015.

Despite this temporary slump, UNCTAD Investment Report 2017 shows that Ethiopia has become an investment hotspot in Africa while FDI flows to the rest of the continent have declined. In 2016, Ethiopia attracted more inflows than ever before, with FDI up 46 per cent. The country also became the second largest recipient of FDI in Africa after Egypt, up from the fifth position in 2015.

Several factors contributed to make Ethiopia a key destination for FDI. A crucial component of Ethiopia’s drive for growth and transformation is its firm ambition to

transform its economy and become a manufacturing centre in Africa. The country is also one of the top performers in its efforts to diversify its economy and consequently its FDI pool. Foreign investors from several countries such as China, India and Turkey have massively invested in Ethiopia’s agroprocessing, hotels and resorts, as well as in its manufacturing activities. United States fashion supplier PVH (Calvin Klein and Tommy Hilfiger); Dubai-based Velocity Apparelz Companies (Levi’s, Zara and Under Armour); and China’s Jiangsu Sunshine Group (Giorgio Armani and Hugo Boss) all set up their factories in Ethiopia in 2017. This new FDI in manufacturing will create opportunities for local SMEs to link to global supply chains.

Job creation The government is taking significant steps towards achieving this vision. Between 2016 and 2017, Ethiopia inaugurated the Hawassa Industrial Park and Kombolcha and Mekelle Industrial Parks and has recently completed the construction of Adama and Dire Dawa industrial parks. All these parks are located at the crossroad of well-developed expressways and railway connections, providing the necessary connectivity to ship finished products abroad easily and in other parts of the country.

In addition to this clear national vision, the country possessed a skilled and abundant workforce, the most competitive energy cost in the world and streamlined onestop government services, offering immense opportunities to investors. The development of industrial parks has been a marked success in attracting and facilitating high-quality investment.

Ethiopia plans to commission four new Industrial Parks by the end of this Ethiopian year and ambitions to have 30 industrial parks by 2025, which should create job opportunities for 200,000 people annually. The Government of Ethiopia recently received a ‘Star Performer Award’ from the World Bank for its outstanding performance on investment policy reform and promotion as well as UNCTAD’s Excellence in promoting Investment in the Sustainable Development Goals (SDGs). Such recognition from the two leading development

organisations is a clear testament that Ethiopia is on the right track in realising its vision of becoming a leading manufacturing hub in Africa by 2025.

Reforms will boost FDI glows Since June, Prime minister Abiy Ahmed has implemented reforms to transform the country’s economic landscape, tackle high unemployment and the shortage of foreign exchange. Ethiopia’s decision to allow local and international investors to buy stakes in some of its largest state-owned enterprises such as Ethiopian Airlines, Ethio telecom or Ethiopian Electric Power and to seek the full or partial sale of railway projects, hotels, and sugar and other manufacturing industries is a radical departure with past policies.

Investors from countries like India and South Korea are already considering various investment sectors, including food processing, plastic, leather and garment. Foreign investors need a business climate that is conducive to growth and innovation. There is no doubt that these reforms will help create favourable conditions which will lure more investors to the country in addition to improve the efficiency of local enterprises.

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Ethiopia is planning to create job opportunities for 200,000 people annually by 2025

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Ecology

The Reppie Waste-to-Energy Project, Africa’s first waste to energy facility The Reppie-waste-to-energy project, Africa’s first ever waste-to-energy facility, is now operational. Waste incineration will turn one of Africa’s most challenging social problems, the management of waste, into a source of new wealth.

The Reppie-waste-to-energy project, Africa’s first ever waste-to-energy facility, became operational in late August.

The construction of Reppie began in 2014 under an agreement signed between UK based Cambridge Industries, its partner China national Engineering Co. (CNEC) and the Ethiopian government, which fully funded the overall cost of 2.6 billion birrs (95 million USD).

The Reppie energy plant will burn 1,400 tons of waste daily (approximately 85% of Addis Ababa’s new domestic waste) to generate heat, which will drive steam turbines to produce an estimated 185 million kilowatt hours of electricity per annum. This plant will reduce the need for further landfills while producing and exporting power to the Ethiopian national grid where it will go on to supply the capital with 30% household electricity needs while conforming to global standards on air emissions.

Green energy In waste-to-energy incineration plants, rubbish is burned in a combustion chamber, and the resulting heat is used to boil water until it turns to steam, which drives a turbine generator that produces electricity. Reppie is expected to deliver consistent power when low river flows significantly reduce hydroelectric generation due to seasonal or broader climatic change. It will also replace several expensive diesel-powered plants that have been used to cover power shortages.

The Reppie project is just one component of Ethiopia’s broader strategy to address pollution and embrace renewable energy across all sectors of the economy. The government’s Climate Resilient Green Economy, a $150 billion strategy launched in November 2011 with the dual objectives of making Ethiopia a middle-income economy by 2025 while keeping greenhouse gas emissions constant, has pushed the country to invest significantly in hydropower, geothermal, wind energy and biomass to boost the manufacturing sector with a supply of renewable energy. In addition to producing energy and burning waste, the Reppie facility also has the potential to recycle an estimated 3.6 million kilograms of metals from the incinerated waste each year. Residue ash could also be used to produce an estimated 27,000 bricks every day.

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Concrete impact The Reppie-waste-to-energy plant will support in reducing poverty conditions in Ethiopia through increasing access to electricity, creating jobs and improving the environment to the benefit of human health; and should serve as a model for other countries in the region and on the continent. Addis Ababa, like any booming African city, has its fair share of garbage headache. For half a century, the ‘Koshe’ dump site has been the only land fill in Addis Ababa. As the city expanded, the landfill which used to lie at the outskirt of Addis Ababa has become part of the urban landscape, sprawling over an area of the size of 36 football pitches.

In cities where land is in short supply, waste incineration is a quadruple win, as it saves precious space, generates electricity, prevents the release of toxic chemicals into the groundwater, and reduces the release of methane-a potent greenhouse gas generated in landfills into the atmosphere.

Waste incineration is widespread in Europe where nearly one-quarter of municipal solid waste is incinerated. France alone has 126 waste-to-energy plants, while Germany has 99 and Italy 40. Like the European counterparts, the Reppie facility operates within the strict emission limits of the European Union. The plant adopts modern back-end flue gas treatment technology to drastically reduce the release of heavy metals and dioxins produced from the burning.

A solution for the future An all-encompassing waste-to-energy facility is an optimal solution for Africa’s growing metropolises. Africa is the world’s fastest-urbanising continent. However, while city life has helped lift millions out of poverty, the rapid transformation has created a new problem with a rapidly increasing amount of urban waste. At the same time, Ethiopia’s power supply is failing to keep up with the breakneck economic growth of more than 10% every year.

The Reppie plant, which meets EU emissions standards, is designed to solve both problems.

Waste incineration will turn one of Africa’s most challenging social problems, the management of waste, into a source of new wealth. For this reason, the Ethiopia government plans to invest $2 billion annually in expanding the country’s renewable energy generation through 2030, doubling the current annual spending of $1 billion. The planned financing will include private investment, climate funds and clean energy sales to neighbouring countries.

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Culture

The Meaning of the Ethiopian New Year The Ethiopian New Year, or Enkutatash in the Amharic language, symbolises the end of rainy season and the return of bright sunny days and is welcomed with new hope and new plans.

Ethiopian’s unique calendar

The gift of jewels

On September 11, Ethiopians from all over the world celebrated the dawn of the year 2011 during colourful festivities characterised by a sense of renewed hope and new beginning. The Ethiopian New Year, or Enkutatash in the Amharic language, occurs on 11 September (or 12 September during a leap year), according to the Gregorian calendar. Ethiopia is one of the few countries in the world that uses its own calendar, deriving from the Egyptian one and similar to the Coptic calendar. An Ethiopian year typically counts thirteen months, and each of the twelve first months has 30 days, while the 13th month, called Pagume, has five days, which becomes six in each leap year. The Ethiopian Calendar is seven to eight years behind the Gregorian calendar, which results from an alternative calculation in determining the date of the birth of Jesus Christ.

Enkutatash can be translated as “gift of jewels”. The term has been traditionally related to a 3000 years old story about the return of Queen Sheba to Ethiopia from a trip to visit King Solomon of Jerusalem, as mentioned in the Bible (see 1 Kings 10; 2 Chronicles 9), during which gave him a large amount of gold as a gift and was welcomed by local chiefs with great quantities of jewels upon her return.

Celebrations for the Ethiopian New Year usually consists of a week-long fest in September, when the heavy rainfall starts to cease, and the bright sun comes to shine over the green land, which is at that time covered by a golden flower known in Amharic language as “Adey Abeba”.

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As the Ethiopian New Year comes with this change of season, it is welcomed with new hope and new plans. After the New Year celebrations, students prepare to go back to school to start a new academic year with fresh energy after two months of well-deserved break, farmers hope for bumper

harvest after hard work of farming activities throughout the rainy season and most people set their resolutions for the year ahead with the excitement of fresh beginnings.

Ethiopia is one of the few countries in the world that uses its own calendar.

Lively celebrations Celebrations start when each household or neighbours in group lit wooden torches known as ‘Chibo’ on New Year’s Eve, in the evening time, to symbolise the end of rainy season and the return of bright sunny days. The New Year celebration is both religious and secular. Churches organise special religious activities that start on New Year’s Eve and last until the New Year’s day.

The preparation for the New Year Celebrations by itself is eventful. Women at each household make themselves busy preparing home-made alcoholic drinks, like “Tella” which is made mostly with barley and “Tejj” Ethiopia’s famous ‘honey-wine’, which is made from fermenting honey. On New Year’s Eve, women also prepare a special bread called “Diffo” and special dishes for New Year’s feast, while men take the responsibility of purchasing and slaughtering of cattle, either a sheep, goat or oxen depending on the financial situation of the household.

Social activities The New Year celebration brings an opportunity to meet members of extended family and to gather together for the

holiday events. Family members who are away will often travel to spend the day with their family. On the New Year’s Day and the few days to follow, neighbours and relatives visit each other to exchange best wishes for the New year and dine together to enjoy the unique dishes prepared for the feast. The coffee ceremony is an integral part of the celebration and is conducted in a more colourful way than the ordinary days. Families invite their relatives and friends to spend time together discussing a range of issues while enjoying coffee. Exchanging new year greetings directly through SMS messaging, phone calls and cards are common among the urban dwellers.

On the Ethiopian New Year day, girls play in a small group a well-known traditional Amharic song called “Abebayehugn”, literally translated as “I have seen flowers”, proclaiming the bright sunny days are coming. While the girls go from house to house and play “Abebayehugn” with hand drums, the boys present pictures of religious figures and flowers painted by themselves, to express their best wishes for the new year and in return, they receive a reward of small gifts of money and praise.

A particular celebration On 11 September 2018, Ethiopia welcomed the year 2011.

This year’s festivities were exceptional, as it involved special activities organised by government bodies. About a week before the New Year’s Day, local authorities, in collaboration with the community, conduced various charitable activities.

The youths repaired the houses of less fortunate elderly people, while female celebrities and artists engaged in fundraising activities to provide school materials for underprivileged students who were preparing to go back to school after the New Year celebrations. All these charity activities were part of the ongoing reform agenda of the new government that assumed responsibility about six months ago and aimed to instil a positive vibe and energy in the year to come among the people of Ethiopia.

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Ethiopia-China relations

Ambassador Grum Abay: “Ethiopia has a strategic relationship with China.”

The Forum on China–Africa Cooperation (FOCAC) Summit was held in Beijing in early September. H.E. Grum Abay, Ethiopia’s new Ambassador in Brussels, was interviewed by journalists of Brussels Information Press (B.I.P.) to know more about the strategic relationship between Ethiopia and China. crisis which will lead to a security crisis, as we have seen in Ethiopia recently.

So the expectations for this summit is to look at how we can use this platform to, once again, assist us in developmental endeavours such as creating jobs, raising agricultural productivity and improving manufacturing sectors, which will give us the opportunity to become exporters of manufactured goods instead of only selling our raw materials or agricultural products. I believe that the Chinese are aware of these expectations and as usual, they will come to meet us halfway along this part.

How is the relationship between China and Ethiopia?

Brussels Information Press: The 7th Forum on ChinaAfrica Cooperation is highly anticipated in Africa and China. What does this Forum represent for Africa?

Ambassador Grum Abay: I think it’s a critical platform for the future cooperation between Africa and China. The summit offers the opportunity for African leaders to evaluate the outcomes of the partnership they have with China, and the eventual drawbacks we observed. It’s an excellent platform to discuss matters that require correction, issues that need new directions. This is the occasion to discuss what has been able to achieve in the three years since the last summit and the next steps for the cooperation based on the new realities in China and Africa.

What are your expectations for this Forum?

For African countries, the main problem is that about 67% of our populations consist of young people. Also, if African governments are not in a position to create much-needed jobs for the youth, it might turn into a social and political

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China is Ethiopia’s largest trade partner. The relationship between us is strategic, which means that China is supporting Ethiopia development endeavours in priority areas such as building industrial parks and infrastructure. They are also assisting us in capacity building. Only this year, more than 1250 Ethiopians went to study in 40 different universities in China. We also have a strong political and economic relationship. At the same time, we work very closely with China at the United Nations level, especially as Ethiopia is currently a non-permanent member of the Security Council.

We have a positive relationship with China, and we hope that it will continue in the future.

Could Chinese investments enable Ethiopia to meet its middle-income country target by 2025?

That is precisely our goal, and this is why we are keen to pursue our cooperation with China. Let me give the example of the African Growth and Opportunity Act (AGOA) that Americans have offered to African countries.

AGOA provides trade preferences for quota, and duty-free entry into the United States for certain goods like textiles and garments, leather products, shoes, gloves, and Chinese companies are investing massively in these areas.

In Ethiopia, Chinese companies just finished building our 5th or 6th industrial park. Each industrial park will be engaged in a specific sector. For example, the Hawassa Park produces textile and garments. By establishing that

industrial park, we have invited international companies to invest in Ethiopia by using the cheap labour force that we have to produce quality manufactured good in textiles and garments and take advantage of the AGOA opportunity to enter the U.S market as made in Ethiopia.

All this not only brings technology and know-how to the continent but also create jobs for our youth while allowing us to enter the world market of textile and garments.

The Chinese are helping Ethiopia to graduate from an agriculture-based economy to a manufacture-based one, while creating jobs for our young people and earning foreign currency.

China has launched The Belt and Road Initiative, the UN 2030 Agenda for Sustainable Development is being implemented, and Africa has the African Union Agenda 2063. Meanwhile, China wants to build a community of destiny with Africa. Do you think such a project is feasible?

However, if they do not see or understand their benefits, those projects are going to fail. We have seen so many projects in Africa, but where are they today? But I believe that given the type of experience that we had so far in engaging with the Chinese and the results that we have witnessed in this cooperation, the African side will do its best in achieving results in these all these initiatives, from the BRI to the Agenda 2063.

I am hopeful as an African, and I know we don’t have any other choice. We have to move forward. Africa is becoming a continent that is looked after. The Africa of today is not the Africa of yesterday. To continue as such and to improve our global situation, we need the unity of Africa. We should trade among ourselves more. We should allow our people to move freely and I think we should encourage the young people to learn more about Africa instead of about Europe and America.

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No project is impossible if all the stakeholders are committed and ready to foot the bill if necessary. It is also crucial to share these projects with our populations. The problem with us, Africans, is that they are often decided up there in presidential palaces, not even in the parliaments. In many cases, the population, the people on the ground who are supposed to implement these projects are not adequately informed or engaged.

China is supporting Ethiopia development endeavours in priority areas such as building industrial parks and infrastructure.

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