Somalia: President Farmajo calls for unity and Cooperation (12.10.2017)

President Farmajo acknowledges that in a nascent federal system, there would be challenges and that must always be solved amicably through dialogue while remaining faithful to the constitution.

MOGADISHU, Somalia, October 12, 2017 – The President of the Federal Republic of Somalia, H.E Mohamed Abdullahi Mohamed Farmajo has been keenly following the concerns of the leaders of the federal member states, and in effect underscores the need for closer cooperation between the Federal Government and the Federal Members States to achieve the hope of peace and prosperity for our country.

“I want to remind you all that we must acknowledge that our country is on the path of recovery, and the only way we can achieve full recovery is through cooperation. We must therefore all strive for the greater good of this country and be true to the oath that we all took to put the country first.”

President Farmajo acknowledges that in a nascent federal system, there would be challenges and that must always be solved amicably through dialogue while remaining faithful to the constitution.

The president remains confident that all concerns will be resolved, and that leaders would remain true to the pledge of putting the interest of our country before anything else.

Ethiopia: The Economy is struggling, not a rising lion as previously forecasted!

For as long as I can remember there gone stories of the amazing rise of the Ethiopian economy, the financial markets and the outputs out of this world. Where the money would grow ten-folds within minutes of its arrival. Like a mirage the number’s must have appeared in front of our eyes and stories that, we are told over the recent years. The Ethiopian powerhouse and the serious contender with Nigeria and South Africa. With their railways, banks and development projects, the powerful dam and all the others. It must have been a ride for the Ethiopian People’s Revolutionary Democratic Front (EPRDF), Prime Minister Hailemariam Desalgn, must be so proud of his achievement.

Why I say that, because a booming economy does not do this:

“Ethiopia and World Bank have signed a 1.3 billion dollar grant and loan agreement to enhance equitable services and reduce food insecurity. The agreement was signed by Abraham Tekeste (PhD), minister of Finance & Economic Cooperation (MoFEC) and Carolyn Turk, World Bank’s country director for Ethiopia, Sudan, and South Sudan” (All Africa, 2017).

So when a booming economy, that has such magnificent rates and growth prospects should not and no need for extensive borrowings from the World and subsidiaries, to say they need so is a lie. The debt and the international support for projects and food security is not a sign of a sound and strong economy. More of the latter if I beg to differ. On that, alas the recent weeks has proven this. World Bank was ushered in the end of September, but it is now cash-crunch time.

Not the jolly Captain Crunch, but the credit is due.

“Ethiopia will devalue its currency to attract foreign investment and close the gap in foreign trade, President Mulatu Teshome said at the opening of the bicameral parliament on Monday. He said his government is faced with a serious shortage of hard currency and export trade has dwindled in last three years. Mulatu said major projects like the construction of railway and universities will not be carried out this budget year due to a serious shortage of finances” (ESAT, 2017).

The seriousness is there and it is bleak, when the President Teshome shows up and spread enlightenment to the world. That the economy is fragile and not at its peak, is clear when all the prestige and the giant projects are now put on hold until further notice. Clearly, the financial strains have hit the economy, as well as their exports has given them less hard currency.

It does not go well, when just days ago, when this hit the fan as well:

Double-digit inflation keeps threatening the macroeconomic conditions of the country as the headline inflation rate hit 10.8pc last month, according to the Central Statistical Agency (CSA)- the highest since October 2015. It is in contrary with the target of the government in the second edition of Growth & Transformation Plan (GTP II) to keep inflation in a single digit. The hike in the price of cereals such as teff, maize, wheat, barley, beans and sorghum coupled with holiday-driven price upsurge is the primary reason for the inflationary pressure last month, keeping the food inflation stagnant around 13pc.“As September is a time of multiple holidays, it is believed to influence the increase in the inflation rate,” the report of CSA reads” (Berhane, 2017).

That the cash crunch and the double-digit inflation hits the Republic is not a good look. The proof of the currency value falling, lack of hard currency and new Multi-National loans proves that the Financial Sector and Financial Institutions are strained. There is nothing more to give, it is just bones and not meat. It is just a matter of time before the boiling bones gives no taste to stew as well!

In addition, you the economy is bonkers when their agency spread out this sort of tales, at the time the devalued currency is told to the public on other platforms.

This is from the Ethiopian News Agency:

“The diplomats, who observed the government’s direction at the joint session of the parliaments, whom ENA has talked to also forecasted the country`s economic growth to be amplified in better manner referring the current stability of the nation. Ambassador of Bangladesh to Ethiopia Monirul Islam said the growth that Ethiopia’s economy has witnessed was ‘wonderful’ despite the drought and other problems. “It was 10.9 percent and this year I hope it will be more than that because there is a good rain, everything is good, the state of emergency has been lifted and everything is normal”. “So I think the economy should perform better especially in the agriculture sector as well as in the industry sector”, he pointed out” (ENA, 2017).

I do not know if Ambassador Islam lives in alternative reality or trying to sugarcoat the situation of the dire economic state that the Republic is facing, but it makes good propaganda for the ones who still want the fantastic picture spread around the globe. That the Ethiopian economy is sound and still growing. However, it is hard to grow when you lack currency, you have growing inflation and you are borrowing more funds. I do not know, which economy or financial system that it works splendid in. Certainly not this one.

In addition, the news of the financial rising tiger or lion of Ethiopia has been a mirage, a fraud and play for the world to see. At this stage and in time, it is far from it. The Ethiopian economy is plummeting and at amp speed. If you eat up the crap the ENA serves you, it must certainly serve your kind, but it is not reality. The President even said so, the reports are striking and the added loans proves the dire state.

The ones who is the most hurt. It is the citizens who needs the hard currency to buy food and live, they are punished for the reckless care of the financial system. They are the ones who suffers, because of how the state decided to conduct their affairs. They are the ones who feels the inflation, the rising prices and still has to get by. It is not right, but that is how it is. The Ethiopian government should subsidize and make sure the people get enough. However, do not expect that. This is from the same government that sent Agazi squad to Amhara and Oromia to kill and destroy. They do not care, unless they have too or if it keep them in power. Peace.

Reference:

All Africa – ‘Ethiopia: World Bank Assents U.S.$1.3 Billion Finance to Ethiopia’ (30.09.2017) link: http://allafrica.com/stories/201710090243.html?utm_campaign=allafrica%3Aeditor&utm_medium=social&utm_source=twitter&utm_content=promote%3Aaans%3Aabljpw

Berhane, Samson – ‘Gov’t Sees Double Digit Inflation, Again’ (08.10.2017) link: https://addisfortune.net/articles/govt-sees-double-digit-inflation-again/

ESAT – ‘Ethiopia President Says Country is Broke’ (09.10.2017) link: https://www.tesfanews.net/ethiopias-president-says-country-financial-crisis/

ENA – ‘Diplomats Laud Economic Performance of Ethiopia’ (10.10.2017) link: http://www.ena.gov.et/en/index.php/economy/item/3814-diplomats-laud-economic-performance-of-ethiopia

 

UNAMID welcomes the decision to lift economic sanctions on Sudan (09.10.2017)

The decision, which ends more than two decades of economic sanctions, is hoped to contribute significantly to the betterment of the lives of the Sudanese People.

ZALINGEI, Sudan, October 9, 2017 – UNAMID welcomes the US Administration’s decision to lift most economic sanctions imposed on Sudan. The decision, which ends more than two decades of economic sanctions, is hoped to contribute significantly to the betterment of the lives of the Sudanese people; including the population we serve in the Darfur region.

UNAMID’s Joint Special Representative and Joint Chief Mediator for Darfur (JSR/JCM) Jeremiah Kingsley Mamabolo welcomed the American decision saying: “On behalf of the Mission, I would like to congratulate the people and the Government of the Republic of Sudan on the lifting of the American sanctions. We are hopeful that this decision shall be a significant progress towards improving the lives of the population we serve in Darfur, in terms of creating livelihoods, and raising of education and health standards.”

“I also hope that this would constitute a positive step forward on the way of realising permanent peace, stability and sustainable development in Darfur.”

“I call on all the Sudanese parties to take advantage of this window of opportunity to speed up the finalisation of the peace process and use it as a catalyst for achieving permanent peace in Darfur,” JSR Mamabolo added.

Somalia: UN letter to Galmudug ‘President’ Haaf calling for dialogue between FMS and FGS (08.10.2017)

Opinion: You know that Kagame didn’t really win with 98,66% when he has to intimidate Rwigara!

I know I will shot-out of the gates and say that Paul Kagame, who won with 98,66 % in the Presidential Election in August 2017. Didn’t really win by that margin and have that sort of support. For some this might be controversial, others saying I’m hater. I will take that any part of the day and close my eyes in content. Kagame didn’t win by that margin and he didn’t have that massive support.

For the simple reason, ever since the election he has had to silence Diana Rwigara and her family. Latest stint was in Court this week. She has been arrested on unknown locations and been taken away from home. Why is Kagame so afraid of Rwigara? Well, he is afraid of being questioned and having real opposition. That is because Kagame does whatever he can to have none. The ones who has been is either in exile, detained or gotten the arrested for treason against the state. That means they don’t have loyalty to Kagame or his almighty Rwandan Patriotic Front (RPF).

If the President was a legitimate executive and head of state, he wouldn’t have cared about the candidacy of Rwigara. She wouldn’t have the party-organization or even the structure to compete. It would be like Jill Steins Campaign in 2016 in the United States. She would be a part of the race, but all the eyes would be on Clinton and Trump. It’s not like Frank Habineza of the Democratic Green Party of Rwanda has a size, neither independent Phillippe Mpayimana. If the playing-field between the candidates was fair, they would have gained more popularity, but they are just needed props into the sham of an election.

That Forces Democratiques Unifiees (FDU-Inkingi) is not involved and other parties are not in the elections. Proves my point, that the mere sacrifice of Kagame to run again. Is mere a sham and his own rule is not on popularity, but on fear and oppression. If he was democratic he wouldn’t fear Rwigara and throw phony charges her way. He wouldn’t make a mockery of her family and associates. But he has too, because his popularity isn’t as soaring as he tries to make believe.

President Kagame, don’t have stomach or the bravery to play fair, because he came with the guns and will be like many before him. Only leave by the gun. He is like Rwandan answer to Museveni. If you have real competition, they either end in exile or they are treasonous against the state. Just ask the Ugandan opposition about their toils and intimidation.

Rwigara case is proof that Kagame don’t have the popularity he subscribes. He don’t, if he did he would never step beneath his office and done this to his citizens. But he has too, because he don’t have their support. The only way he keeps the system intact is to spread fear and intimidation. That is why he is charging and shaming Rwigara for opposing him. Peace.

Burundi – Conseil des droits de l’Homme a Geneve – Resolutions – La position du collectif des avocats des parties civil “Justice for Burundi” (04.10.2017)

Government of the Sudan, the African Union and the United Nations 24th Tripartite Coordination Mechanism Meeting on the African Union – United Nations Hybrid Operation in Darfur (26.09.2017)

Agreed Outcome.

NEW YORK, United States of America, September 26, 2017 – On 22 September 2017, representatives of the Government of the Sudan (GoS), the African Union (AU), the United Nations (UN) and the African Union-United Nations Hybrid Operation in Darfur (UNAMID) met in New York for the 24th meeting of the Tripartite Coordination Mechanism (TCM) on UNAMID.

The GoS delegation was led by H.E. Ambassador Elghani Elnaim Awad Elkarim, Undersecretary of the Ministry of Foreign Affairs of the Republic of the Sudan. The AU delegation was led by H.E. Ambassador Smaïl Chergui, the AU Commissioner for Peace and Security. The UN delegation was led by Under-Secretary-General for Peacekeeping Operations, Mr. Jean-Pierre Lacroix and Assistant Secretary-General for Field Support, Ms Lisa Buttenheim, and the UNAMID delegation was led by the Joint Special Representative, H.E. Ambassador Jeremiah Nyamane Kingsley Mamabolo.

In their remarks GoS, AU and UN welcomed the progress made in the implementation of Phase one of the UNAMID’s reconfiguration plan, and committed to work in the same spirit of mutual cooperation and support towards the implementation of Phase two and beyond. In this context, the Government of Sudan requested details on the establishment of the temporary operating base in Golo, to which UNAMID committed to reply.

While welcoming the remarkable progress to date on the release of shipments, the issuance of visas and the facilitation of movements of UNAMID in Darfur, the Tripartite undertook to resolve the outstanding issues pertaining to the effective implementation of UNAMID mandate.

The representatives of GoS, the AU and the UN look forward to continuing their work in the same constructive atmosphere towards the successful completion of UNAMID’s mandate.

Opinion: IGAD wants sanctions revoked against Sudan, the Employee wants to deliver for its Member!

Ambassador Mahboub Malim said this in August: ““First of all, I am an employee of President Kiir, among other presidents. So, to ask me what I can tell him, is like asking your house helper to tell you to change something in your house. But this is on a light note” (Lumu, 2017).

Again, the Intergovernmental Authority on Development (IGAD) had their meeting in Khartoum, holding their Inter-Parliament Union there. So to show their loyalty between the IGAD Parliamentarians, they have decided that in good faith and also their support of the Republic of Sudan. Member States are clearly now getting positive service and to the government inside the IGAD. Therefore, the supporting effect of the IGAD is dwindling down, since it is more a big microphone, than actually being there for strengthening the nations themselves.

The final communique has called for revolting the unjust economic sanctions imposed against the Sudan so that the country would take its natural position at the regional and international arenas. The conference has meanwhile called for boosting the roles of the government in achieving peace and raising awareness on issues related to environmental questions. The conference also stressed the need to put in place legislations that encourage agricultural investment, urging government to exert more efforts for the stability at home and to refrain from intervention in the domestic affairs of others” (SUNA, 2017).

Khartoum, Sep. 18 (SUNA) – Meetings of the 12th session of the Executive Council and Ninth Conference of the Speakers of Parliaments of the IGAD Member States were Monday concluded at the Friendship Hall. The conference recommended lifting of the American sanctions being imposed on Sudan to enable it restore its normal position at the regional and international levels” (SUNA, 2017).

That IGAD wants the Sudanese government to get their sanctioned ceased. This while the arms are getting distributed in Darfur. Also the troubles in Blue Nile State. The Sudanese State are clearly involved with crimes against humanity and the vicious violence against their own citizens. Therefore, the IGAD proposing to end sanctions should have made more progress. As even militias and state army has inflicted hurt to UN PoC Camps in Darfur. If they want the moral high-ground they should actually make sure one of their states are in peace. That Sudanese government can work with SPLM-N and other opposition parties in the Republic.

IGAD are now acting indifference to the situation, as the government has troubles with their domestic affairs. Since they have civil-war in Darfur. There is also trouble in other states, as well as the relationship and the border states of South Sudan. IGAD should try to make sure the Sudan government had made sure for peace, not to build-up their confidence and think they could get away with violence in Darfur, that continues for years upon end. And still continuing! Peace.

Reference:

Lumu, David – ‘IGAD boss applauds Uganda on South Sudan’ (23.08.2017) – New Vision Article

Sudan News Agency – ‘IGAD Parliamentarians Call for Revoking Economic Sanctions against the Sudan’ (18.09.2017) link: http://suna-sd.net/suna/showNews/354065/en?utm_source=dlvr.it&utm_medium=twitter

Sudan News Agency – ‘Ninth Conference of the Speakers of Parliaments of the IGAD Member States Concluded in Khartoum’ (18.09.2017) link: http://suna-sd.net/suna/showNews/354068/en?utm_source=dlvr.it&utm_medium=twitter

Burundi: CNARED-GIRITEKA Lettre au Secrétaire Général des Nations Unies António Guterres (18.09.2017)

Opinion: The Ethiopian Financial Market is plummeting…

The Ethiopian People’s Republic Defense Force (EPRDF) Prime Minister Hailemariam Desalegn have ordered to fix economic problem the government has. EPRDF has been hailed for their financial growth, but with this sort of news. You know the growth and the reality is far from the truth. Ethiopia News Agency: “International Consultant of Trade, Investment and Economic Development, Dr. Taffere Tesfachew said on the occasion the fact that African countries are performing better than the global average is testimony to how far Africa is coming over the decade. He noted that the economic growth of countries like Ethiopia and Ivory Coast is highly impressive at this time when other African countries are struggling with one or two percent growth” (ENA, 2017).

So I have to question the economic growth, as the Forex Woes and the remittance from the diaspora are proving otherwise. Together with the need of more foreign aid to solve the famine of the drought. So the World Bank clearly knows the troubles of the Ethiopian government since they did this:

The World Bank today approved a $600 million International Development Association (IDA)* grant to support the Government of Ethiopia’s vision of building a national safety net system to provide effective support in chronically food insecure rural areas, including providing cover during droughts. The Rural Productive Safety Net Project (RPSNP) supports the evolution of the Government’s umbrella Productive Safety Net Program (PSNP) that has been in operation for the last 12 years and is one of the world’s largest safety net programs in the world. Run by the Government, the PSNP pools money from 11 donors, including $600 million of World Bank Group IDA funds. The PSNP provides regular cash or food transfers to 8 million people; currently 4 million of them are in areas affected by the ongoing drought. Its food-for-work component supports public works programs related to landscape restoration, irrigation, and agro-forestry” (World Bank, 2017).

So, when the World Bank gives this as a support of the government. You should take it serious and know the problems of the state. The need of financial support and to make sure drought doesn’t affect the starving citizens. EPRDF are doing badly and now the Forex Companies has to pay of the National Bank of Ethiopia (NBE) for the debt to Enterprise in Djibouti. Look!

Foreign Forex Woes:

The directive of foreign currency allocation entails all banks must sell foreign currency to a sector whose importance is very high. The banks are required to give priority to payments authorized by the central bank such as foreign loan, supplier’s credits, interest, profit, dividend and excess sales of foreign airlines. Hence, all banks are required to sell the currency collected from importers, although the current direction is high, according to a banker with almost two decades of experience. “Even though I agree with the fact that we shared the responsibilities with CBE,” said one of the vice president of a mid-sized bank. “But requesting such amount of Forex in a short time might lead to crisis.” Yohannes Ayalew (PhD), vice governor and chief economist of the central bank, disagrees. “It is a collective responsibility of all banks whether the call was quick or not,” said Yohannes. “There is no reason to ask CBE to cover all the payments.” The Forex shortage in the country has been haunting the country for years. Prime Minister Hailemariam Desalegn, in his press conference with local media nine months ago, admitted that the Forex crunch would last for the coming two decades” (Addis Fortune, 2017).

NBE Directive to pay of debt to Djibouti:

National Bank of Ethiopia (NBE) gave order to private banks in Ethiopia to pay the 15 million USD bill the Ethiopian Shipping Logistics Services Enterprise (ESLSE) to Djibouti’s company. The banks are, according to Fortune, given 3 days to sell the foreign currency to the Enterprise. The order is said to have come when the entire country is in short of foreign exchange. The shortage came following the drop in the country’s export performance and remittance earnings. ESLSE owes the money to the port of Djibouti and the central bank gave the order for every bank including the government owned Commercial Bank of Ethiopia (CBE)” (Addis Fortune, 2017).

Beset by the ever expanding informal channels of remittance, Ethiopia may continue to grapple with shortage of hard currency unless swift and collective measures are put in place, ‘Scaling up Formal Remittance to Ethiopia’ report discloses. A billion dollar transaction takes place via informal channels with 78 percent of the total remittance passing through informal networks in Ethiopia. Some experts believe that the transfer of money through unregulated channels will also likely result in illicit financial flow and dealings. The seizure of 541,659 USD around Harar is a recent indication of informal corridors of hard currency. Informal channels happen to be lophooles for global terrorism and corruption. It will open doors for illegal activities, people may use it to collect huge sums of money for their own dangerous causes, says Ethiopian Financial Security Director General Gemecu Weyema” (Gebrehiwot, 2017).

All of these articles proves the problems of the National Bank of Ethiopia (NBE) and their lacking foreign exchange. This has become a problem as the remittance hasn’t come through the formal channels, as the informal economy are big in Ethiopia. Together with drop of foreign exports that has also hurt the amount of exchange.

Clearly, the government of Ethiopia has a bigger problem that they want to reveal, as the NBE and the Foreign Exchange is plummeting. Therefore, the need at the same time for World Banks loans. Shows the dire situation of the economy. It is not like the Ethiopian News Agency would speak ill of own government and their policies. Since, the propaganda of own growth are more important, than actually telling about the weakness of the economy. This is a reality since the financial policy of Forex Exchange is in favor of the NBE.

This can also make it more profitable to for an informal market, instead of in the open market. The Ethiopian government really needs foreign exchange to pay of debt and use all their means. Instead, they are trying to cover-up their troubles, as they have debt to Enterprise in Djibouti and have troubles with the famine caused by drought. Peace.

Reference:

Addis Fortune – ‘Ethiopian Government Orders Private Banks to Cover ESLSE Forex Needs’ (12.09.2017) link: https://www.ezega.com/News/NewsDetails/4679/Ethiopian-Government-Orders-Private-Banks-to-Cover-ESLSE-Forex-Needs

Addis Fortune – ‘Ethiopia: NBE Ordered Banks to Cover ESLSE’s 15 Million USD Bill’ (13.09.2017) link: http://www.2merkato.com/news/alerts/5220-ethiopia-nbe-ordered-banks-to-cover-eslses-15-million-usd-bill

Ethiopia News Agency – ‘Gov’ts Need to Act Together to Achieve Economic Success: UNCTAD 2017 Report’ (14.09.2017) link: http://www.ena.gov.et/en/index.php/economy/item/3705-gov-ts-need-to-act-together-to-achieve-economic-success-unctad-2017-report

Gebrehiwot, Desta – ‘Ethiopia: Informal Channels Raise Red Flag On Forex Earning’ (14.09.2017) link: http://allafrica.com/stories/201709140729.html

World Bank – ‘World Bank to Help Ethiopia Build a National Safety Net System as a More Effective Response to Droughts’ (14.09.2017) link: http://www.worldbank.org/en/news/press-release/2017/09/14/world-bank-to-help-ethiopia-build-a-national-safety-net-system-as-a-more-effective-response-to-droughts