Tag: Ethiopia

Ethiopia selected to host 2020 World Economic Forum

The World Economic Forum (WEF) in 2020 will be hosted in Ethiopia, as the Eastern African nation hopes to attract more investment.

The announcement was made following a meeting between Ethiopia’s prime minister, Abiy Ahmed and Prof Klaus Schwab, Founder and Executive Chairman of WEF.

The office of the prime minister said the two leaders discussed the importance of a collaborative approach among government, the private sector and civil societies in addressing key global challenges

Abiy Ahmed attended the WEF 2019 meeting held in Davos, Switzerland, where he met several business leaders before heading to Belgium.

PM Abiy Ahmed courts investors

Abiy Ahmed, who has championed reforms since taking office in April last year, called upon investors in Davos to take advantage of the huge business opportunities available in the country.

Reiterating Ethiopia’s plans to liberalize the previously state-controlled sectors of telecommunications, banking, and aviation among others, Abiy Ahmed pledged to do more to make it easier to do business for anyone planning to invest in Ethiopia.

“In order to enforce our up word trajectory and achieve even more rapid and sustainable growth, Ethiopia has embarked on a comprehensive reform process since last April,” he said.

Credits to Daniel Mumbere

Ethiopia: How Investment in Irrigation Is Paying Off for Ethiopia’s Economy

After rapid economic growth averaging 10%every year between 2004 and 2014, Ethiopia has emerged as an engine of development in Africa.

And there are no signs that ambitions for further growth are fading. This is clear from the government’s blueprint to achieve middle-income status – or gross national income of at least US$1006 per capita – by 2025. This would see a rapid increase in per capita income in Ethiopia, which is currently US$783, according to the World Bank.

Ethiopia’s growth has been propelled by at least two factors: the prioritisation of agriculture as a key contributor to development and the fast-paced adoption of new technologies to boost the sector.

A third of Ethiopia’s GDP is generated through agriculture, and more than 12 million households rely on small-scale farming for their livelihoods.

One of the drivers of growth in the agricultural sector has been the expansion of irrigation. The country has seen the fastest growth in irrigation of any African country. The area under irrigation increased by almost 52% between 2002 and 2014.

This was achieved by investing in the sector, and by harnessing technology to expand irrigation to farmers who traditionally relied on rainfall to water their crops. This boosted productivity and income for farmers by helping them extend the growing season and become more consistent in their production.

Meanwhile, only 6% of arable land is currently irrigated across the whole of Africa. This means that there’s huge potential to expand irrigation and unlock economic growth.

These factors are highlighted by a new report from the Malabo Montpellier Panel. The panel convenes experts in agriculture, ecology, nutrition and food security to guide policy choices by African governments. The aim is to help the continent accelerate progress towards food security and improved nutrition.

The panel’s latest report analyses progress – and highlights best practice – in irrigation in six countries. These include Kenya, Mali, Morocco, Niger and South Africa. Other African countries can draw lessons from the report’s insights.

Reasons for success

The report identified a number of common factors in countries where significant progress has been made to expand irrigation, including key policy and institutional innovations.

In the case of Ethiopia, one of the main reasons for its success is that agriculture and irrigation have been featured on the Ethiopian policy agenda since 1991. In addition, specialised institutions have been set up with clear commitments to maximise the benefits of water control and irrigation systems.

In addition, the government has invested in the sector and has plans to continue doing so. It aims to allocate US$15 billion to irrigation development by 2020.

The investment is expected to deliver a number of returns. These include: more efficient use of fertilisers, a reduction in the seasonal variability in productivity and better yields from irrigated crops grown.

Another major area of development has been the collection of data. This is an invaluable asset that allows for careful monitoring and management of resources such as water, especially in times of drought.

In 2013, Ethiopia’s Agricultural Transformation Agency began mapping more than 32,400 sq kms to identify water resources, particularly shallow groundwater, with the potential for irrigation development.

The final results of this mapping in 89 districts revealed nearly 3 billion cubic metres of water at a depth of less than 30 meters. This could allow approximately 100,000 hectares of land to be brought under irrigation, benefiting 376,000 families.

Finally, Ethiopia has harnessed the value of a full range of irrigation technologies. These have ranged small-scale interventions to large infrastructure.

A joint project between the Ethiopian Bureau of Agriculture, local extension officers, and an NGO called Farm Africa, for example, helped women and young people adopt small-scale irrigation. This was part of an initiative to increase their incomes and improve their nutrition.

Overall, the project reached nearly 6,400 women and landless people. The irrigation project also benefited 700 farming families.

NALYSIS 

Ethiopia announces $7 billion road and power projects

Ethiopia announced $7 billion worth of new road and power supply projects, according to the state-affiliated Fana news agency.

The government’s Public-Private Partnerships Office said the three road and 13 power projects would be launched this fiscal year after the tendering processes were completed, Fana reported.

It did not say how they would be financed or give any other details on the projects.

Ethiopia – which has recorded the highest economic growth rate in sub-Saharan Africa for years – has invested heavily in state-led infrastructure projects, drawing on foreign borrowing and its own foreign exchange reserves.

But there have been signs that China, a major creditor, is slowing financing to Addis Ababa as doubts grow over the profitability of some infrastructure projects there.

The power projects are a-469MW Genale Daw 5, 100MW Genale 6, 280MW Chemoga 1&2, 424MW Halele Werabe, 798MW Dabus, 125MW Gad, 125MW Dichato, 100MW Mekelle, 100MW Humera, 150MW Wolenchiti, 150MW Weranso, 125MW Metema, and 125MW Hurso.

Similarly, the three road projects are a 125km Adama-Awash, a 72km Awash-Mieso, and a160km Mieso-Dire Dawa highways.

Dr. Teshome Tafese, director general of the office noted that the projects will be launched this fiscal year after necessary tendering procedures are completed.

source: REUTERS

Ethiopia PM opens industrial park in Oromia region

Ethiopia’s latest industrial park is located in the Oromia region – the largest and most populous, and home region of Prime Minister Abiy Ahmed.

Abiy was back home to inaugurate the Adama Industrial Park. The parks are central to the country’s economic plans and were started years back. Also in attendance was President of the Oromia region, Lemma Megerssa and other regional officials.

 

The PM’s chief of staff wrote on Twitter that the park is “an important addition to a network of world-class, sustainable eco-industrial parks in Ethiopia ready for plug and play investment. Productive investments strengthen the base of our economy and generate sustainable jobs.”

According to the Ethiopian Investment Commission, EIC, these parks are set up for specific sectors such as textile and apparel, leather and leather products, pharmaceutical, agro-processing and more.

The Adama Park joins others like the flagship Hawassa Industrial Park and the Bole Lemi I Industrial Park. Its scope will be the textile, apparel, vehicle assembly and food processing cluster. It is expected to open up a million job vacancies.

Adama, also known as Nazreth, is a city in central Ethiopia and the previous capital of the Oromia. Adama forms a Special Zone of Oromia.

Other upcoming industrial parks include Dire Dawa, Mekelle, Kombolcha, Kilinto, Arerti, Bole Lemi II and Debre Berhan Industrial Parks.

Ethiopian government has often taken high-profile visitors to tour these parks. The International Monetary Fund chief, Christine Lagarde; Rwandan president Paul Kagame and President Isaias Afwerki of Eritrea have all visited these parks whiles in the country.

by Abdur Rahman Alfa Shaban