Ethiopia: The sudden resignation of PM Hailemariam Desalegn, opens up the question for – “Who becomes the next PM?”

Just as the Zone 9, journalist Esikinder Nega and Oromo Federal Congress leader Bekele Gerba has finally been released from prison. Just as this is happening and the three day shutdown of Oromia. As the dozens of political prisoners are still lingering in jail and the TPLF infused government under Ethiopian People’s Revolutionary Democratic Front (EPRDF) Prime Minister Hailemariam Desalegn resigned on national TV today.

We can wonder what is happening and what is the motivation for the change, since the TPLF and the EPRDF under Meles Zenawi was relentless and oppressive, it has been so under this PM too. No denying that and therefore, the civil unrest, that even led to the State of Emergency last year. With all the arrests, detentions and illegal activity from the state to control the regions, where the people are rising up against the minority government in Addis Ababa.

That the Aghazi Squad and the military offensive in the regions hasn’t hurt the drive to demonstrate. Shows the encouragement and the tiredness of the Central Government. That they have taken it too far over time and not been servicing the area. Which is why the roadblocks and closing the delivery of produce to Addis Ababa has hurt the bottom-line for the regime.

I am starting to wonder who will follow the PM and get both his position, but also the chairmanship of TPLF. Because both are important leadership roles in Ethiopia. We can wonder what sort of negotiations and ambition, which is within the Executive Committee of the EPRDF and TPLF. Also, who wants to come from the Central Committee as well.

Seyoum Mesfin might have his ideas, but the bridges are burning, while the Oromo and Amhara protests are bearing fruits. They are hurting the Central Government and their leverage. They cannot just punish and pursuit violence to silence them. The protests and closing of business, the roadblocks and the University uprisings shows the government who are in charge. This is something they cannot deny.

However, I wonder who will take charge and become the next leader. Since PM Hailemariam Desalegn has now suddenly stepped down. We can wonder who pulls the strings and why it happens now after three excessive days of demonstrations and big political prisoners freed. This is all good news, but how good. What is the next move and when will the thousands of prisoners become free from the shacles they are in?

We have to ask and wonder. It is important and proves the power of the Oromia province and Amhara, as they have used their protest to show Addis that they matter. In addition, they do. No one can say otherwise. Demeke Mekonnen Hassen are expected to follow him, but that is surely depending on the CC and EC decisions in the coming days. Also, Michael-Gerbe Debretson, who also possible take his place, even if the odds are bigger on Demeke, then on Michael-Gebre.

So who knows, it is just speculations, but there will be changes and we can wonder how different the new leadership will be compared to the old. Will it be positive reforms or even more oppressive? Will the TPLF listen to other voices or will they be behind the barricades throwing grenades?

We can wonder, but we do know that the PM is important for how the leadership will act towards its citizens. We have seen the change from Zenawi to Hailemariam. It hasn’t been the same, therefore, the next one will be vital for either more protest or more reforms. Peace.

Ethiopia: Qeerroo Oromiyaa Press Release (13.02.2018)

The Oromo protest movement that is on its fourth year now is at the position where it can see the inevitable end of a dying regime. One of the success of this Qeerroo led movement was creating a real crack between the parties that make up the ruling coalition that was dominated by the Tigray People Liberation Front called EPRDF, to which OPDO is also a party. The OPDO along with the newly emerged personalities in the government of Oromia regional state felt the fever of the Qeerroo led movement and indicated an interest of joining the movement to be at the side of the Oromo people.

The movement listened to plea of the new OPDO leaders and paused its active forms of resistance to differ the tasks of presenting Oromos grievances and demands to the government of Oromia region (GOR).

However, after some visible activities that excited many Oromos, the GOR put a brake on the movement and became a unidirectional messenger of the TPLF.

Especially since TPLF started to conduct series of meetings starting with TPLF CC and EC and followed by EPRDF EC meetings, it seemed a clear mission was given to GOR to weaken and dampen the movement. TPLF being sure that GOR took the instructions seriously, started to show defiance and went on an opposite direction in dealing with the movement. That is evident from the serious of killings in Caalanqo, Ambo, Gabragurhacha, Waldiya and just recently in a refugee camp of Hamaraessa.

The fact that the GOR showing weakness in the faces of TPLF’s defiance and that leading to a fear that the movement might go in different direction, created a heightened tension in the spirits of the movement and its Qeeroo leadership. The regime was asked to stop the killings and continued jailing of Oromos for so long, in addition to releasing all political prisoners including the leaders of opposition parties like Bekele Garba and so many others.

The regime that was encouraged by weakness of GOR, wanted to show defiance that it hoped to be understood as intimidation refused to release the prisoners and even denied medical attention to Bekeel Gerba who was on the at the medically verified risk of losing his eye vision as a result of hypertensive complications that warrant emergency healthcare.

It was at this point that the Qeerroo movement decided to be reconnected to its brand form of the struggle that shook one of the strongest dictators in the world to its core.

This week, Qeerroo decided to call one of the most disciplined form of resistance on which millions in Oromia participated. The market boycott strikes called by Qeerroo was started on Monday February 12th, 2018 and aimed to be applied in the entire Oromia.

In this boycott:

1. The regime which knew this peaceful resistance could shake it to the core decided to listen to the demand of the boycott as the boycott plans were underway and being promoted days back, and decided to release Bekele Garba and other political leaders in return to the cancellation of the boycotts. Right at this point, before the Qeerroo did decide on how to respond to the offer for the cancellation, the TPLF soldiers massacred Oromos displaced from Somali region and sheltered at Hameressa camp. This changed the prospects of considering any offer from the regime as something positive, angered the whole Oromo nation and fueled the momentum of the planned strikes.

2. Oromos from coast to coast planned and executed a resistance that is highly disciplined and organized in the absence of the internet that the regime blocked to prevent this type of resistance.

3. The regime suffered a huge economic fallout from the boycott that crippled the entire import export and local markets. This was a huge blow to a regime that monopolized the entire economy. Today, it forcibly released Bekelle Gerba and his six co-defendants.

This happened because Qeerroo decided to be reconnected to its original form of resistance that put forward clear and unambiguous question for the regime to answer.

After securing the release of the said political prisoners, the Qeerroo and Qarree have evaluated on how to go about the remaining one day of the strike and boycott. It has therefore been decided to call off tomorrow’s boycotts and strikes throughout Oromia and use the day’s schedules to welcome the released political prisoners, to unblock the roads and do the clean up in cities and town where the protests went over last two days.

The Qeerroo coordinators would like to extend at most appreciations and respect to the heroic and desciplined actions of everyone who took part on these strikes and boycotts throughout Oromia.

Freedom for the Oromo people, Freedom for all people of Ethiopia!

Qeerroo Oromiyaa

Feb. 13, 2018
Oromiyaa

African Union Open-Ended Committee of Ministers of Foreign Affairs on the International Criminal Court Convened its 6th Meeting on the Sidelines of the 32nd Ordinary Session of the Executive Council of the African Union (27.01.2018)

Ethiopia: Fatal resistance in the Amhara Region!

In Ethiopia, the problem is that you don’t know who’s who. You don’t know who to trust. You don’t have any freedom”Feyisa Lilesa

There been utter silence on the fatal resistance in Ethiopia. Where certain regions are still under fire by the central government or the Ethiopian People’s Democratic Revolutionary Front (EPDRF) or the Tigray People’s Liberation Front (TPLF). They have done whatever they can to silence the oppression and the resistance in the region.

Down down with the regim, down down with TPLF. We denounce the brutal killings of protestors in Woldia, Kobo, Wello, Amhara and all across the country, ” chanted young people in Mersa as they protest against the massacre in Kobo and Woldiya that killed over 60, heavily injured hundreds, and damaged business worth of millions, according to eye witnesses” (Amhara Press, 28.01.2018).

On the 21st January 2018 in Weldiya in the Amhara Regional State during the demonstration during the festival town. The Aghazi force has killed 5 people. During the whole Festival and Weekend reports was about 20 people killed by the military, as the crackdown continued. This is the second year in the row the government attacks the religious festival of Irrecha. One of the killed people was a twelve year old boy.

On the 22nd January 2018 the United Nations Department for Safety and Security in Addis Ababa in Ethiopia sent out a Secret Memo warning the UN workers of traveling in the Amhara region. Specifying all WHO Staff from crossing from Woldoya to Mekele. That staff should take an alternative route to Western Tigray area. Also make sure WHO staff in Mekele Office needs caution in the events of revenge. This means the United Nations and WHO would know about the activity in the region. The clearest statement was this: “The events in Amhara are quite far from our office in Bahir Dir. (roughly 500 kms away), however UNDSS temporarily suspended all UN road mission inside or the Amhara Region”. This was all warnings made by Alaa Farouk.

So with the knowledge of the internal memo of the UNDSS of 22nd January, the people should know the actions of the EPDRF or TPLF is bad. As the Aghazi Squad and Tigrayan Army are there answering the demonstrations with violence.

The UN High Commissioner for Human Rights:

“We are extremely concerned by the use of force by security officials against worshippers celebrating the Ethiopian Orthodox festival of Epiphany this weekend that left at least seven people dead and a number injured. The incident, in Woldiya City in Amhara Regional State on 20 January, reportedly took place when the security forces tried to stop people from chanting anti-government songs and allegedly opened fire on them. Protesters reportedly later blocked roads and destroyed a number of properties.”” (UN High Commission for Human Rights, 23.01.2018).

On the 25th January the reports of attacks by the government in the town of Kobo. Unclear about how many who was killed here, but their been burned state buildings and cars. As the civil unrest and demonstrations in the region is rising. Small towns in and around Kobo, the people has started to demonstrate as well. Over two days of demonstrations, the military has killed about 10 people.

In areas like Mesra, at least 16 people are killed. There been dropped bombs over the town. The Police Station, Local Court, residences and the local Administration Office was burned down. That was done on the 27th January 2018. “Everyone has boycotted Tigrain business in town as they are spying us, and leading the repression here in our city. They are in a loss. They wanted to sell their property. But, nobody is interested in visiting in their real estate show time. Arson sabotage seems to be the most revengeful and profitable way out for them,” says Kindu, a real estate agent in North Wello, Amhara, Ethiopia” (Amhara Network, 27.01.2018).

So within quick counting within a week in the Amhara region, there been killed by state security agents over 60 people. That is safe estimates, not even exaggerated or bloated. The TPLF and the Aghazi Squad could easily taken more people’s lives. This is just the safe numbers of actually deceased. It could be much worse. This regime has no scruples and showing it with sending the army against their citizens. That should be a warning and unsettle anyone. Since they are using the vile force of oppression against their own. Peace.

Why did Dr. Tedros Adhanom bill the Ethiopian government for his Hospital Bill in Singapore in September 2016?

We know that the new World Health Organization Director Dr. Tedros Adhanom Ghebreyesus, who has already did some controversial assignments since become the Director there. Dr. Adhanom has a history as Ministry of Health in Ethiopia. You should think a man who represent his own nation and in cabinet cared about the Health Care there. However, he himself went for treatment abroad and billed the Ethiopian government for it.

Dr. Adhanom had an official meeting with officials from Singapore on the 9th September 2016. This was the story of the Ministry of Foreign Affairs on the 13th September 2016:

Dr. Tedros Adhanom meets Dr Mohammed Maliki Bin Osman, Singapore’s Senior Deputy Minister of Foreign Affairs and Defense Minister at his offices today (Sept. 9, 2016). Discussions focused on strengthening bilateral ties between Ethiopia and Singapore, in areas including industrial parks development, tourism, education sector and inter-parliamentary diplomacy” (The Ministry of Foreign Affairs of Ethiopia, 13.09.2016).

Even if the Ministry of Foreign Affairs has deleted this on their web-page. Still, it is still online and can verify this. Therefore, that the billing of a hospital bill of Dr. Adhanom was billed with $986,50. It isn’t a big bill, but still instead of paying it himself. The Ethiopia-Beijing Embassy was asking the Consulate General of the Federal Democratic Republic of Ethiopia to cover this. This was asked for by the Embassy of Ethiopia-Beijing, who covers Singapore and dozens of other Asian nations. We can just imagine what else he has gotten covered during his stay in Singapore in 2016 as a dignitary. Since, this is the one document leaked. This document asking for a payment directly to an account at United Overseas Bank Limited, Singapore on the 6th September 2016. This is just days in advance of the meeting with Deputy Minister of Foreign Affairs Dr. Maliki Bin Osman.

So seemingly the Minister of Health of Ethiopia did a routinely check-up or something. Since the bill isn’t big. But its the principal of making a good health care system back home and secondly, also putting this on the taxes of your citizens. When your the Minister of Health. That he is representing the whole Health Care in his Nation, but he still uses the state reserves and bills it on the public.

Dr. Adhanom misused it and got the Embassy of Ethiopia-Beijing to refund his visit at a Health Care facility days before having a meeting with the Deputy Minister of Foreign Affairs. Seemingly, it could be a coincidence, but its a bit to good to be true. Though in the scheme of things, a grand of US Dollars are pocket change. However, it is the principal of good governance. If he has done with this small one, what has he done one the budget funding yearly as a minister from Addis Ababa. Would he care or is he careless, since he knows the state will takes his bills and he will eat?

We can just wonder if he has done similar stunt and misused bigger funds for personal profits, because this is just a proof of a minor incident. Where he used a 1000 USD for personal health. We don’t know what he has done with the budgeted funds for the Health Care Ministry, but if we cannot trust you in the minor things. How will you act when your supposed to control the bigger things?

Peace.

Ethiopian troops enters Somalia to reinforce offensive against the Al-Shabaab!

The Ethiopian Armed Forces has returned and arrived again on Somali soil. This after a call between EPRDF and the Transitional Government in Mogadishu. Clearly, the Al-Shabaab insurgency is out of control with the two recent bombings in the Republic. That the Somali President Faramaajo has to call on Prime Minister Hailemariam Desalegn to send troops into Somalia. This is after even the mandate of AMISOM is strong and Kenyan presence is there. Certainly, the Somali government has weaken their position and the strengthen of own troops must be hurt by this. As the Ethiopian government sends 1000 troops into Somali territory.

The AMISOM apparently needs the support of Ethiopia and Kenya to achieve their goals of stopping Al-Shabaab, they cannot do it without, as the government haven’t the trained soldiers or the bullets to do so themselves. That is evident as the Ethiopian soldiers are pouring into Somalia. You can wonder who are paying the salaries and fixing the equipment of the armed combatants there. They are usually not fighting wars for free. Especially not from a broke state and with massive demonstrations as Ethiopia. At this moment, this must be giving funding to a broke state and also help them with diplomatic support to facilitate and help the Federation of Somalia. Clearly, it cannot be keep the horn peaceful, as the soldiers themselves has been used in Amhara and Oromia to quell demonstrators over the recent years, killing civilians and tormenting them. We will see what they will achieve and when the conference call for the operations is launched.

ESAT News (November 2, 2017) Hundreds of Ethiopian troops have crossed into Somalia help new offensive by the Somali government against Al-Shabaab militants. The VOA report quoted residents in the border town of Dolow, in Somalia’s Gedo region, as saying that they saw at least 30 vehicles carrying Ethiopian troops crossing into Somalia late Tuesday. The locals estimate that about 1000 Ethiopian troops have entered Somalia on Tuesday” (ESAT, 02.11.2017).

Regional authorities contacted by VOA on Wednesday confirmed the new Ethiopian military movements.“The Ethiopian troops as a part of AMISOM have already been in the region, and their current movement is part of the response to the Somali president’s call for a massive attack on al-Shabab militants,” said Mohamed Husein al-Qadi, the deputy governor of Gedo region” (DireTube, 02.11.2017).

MOGADISHU, Somalia – Border residents say thousands of Ethiopian troops have crossed into Somalia to accompany a large-scale offensive against al-Shabab extremists. The offensive comes after a truck bombing in Somalia’s capital last month killed more than 350 people. Somalia’s president has visited countries in the expanse to seek more military sustain. Abdullahi Yusuf, an elder in Luq town, says Ethiopian troops in tanks and armored vehicles passed by Thursday morning toward southwestern Somalia” (Uxcnc.com, 02.11.2017).

We can wonder if the United States or any other sponsor of AMISOM asked the President of Somalia to this call, to again call upon the Ethiopian troops to clear the streets as they have done in the past. As they did for instance in 2006, 2011 and 2016, and so on. This to get rid of Somali problems, but leaving power-vacuum and opening up for more violence. As long as they have come in either as invading force, supported by Americans like in 2006 or other times. They have not left Somalia better, but more wounded ready to taken by other warlords or other leaders who has had their selfishness instead of building government.

We can wonder if this will bring any hope or be used for greater Ethiopian pride, if he EPRDF are using this or the TPLF are using this as a deflection from the problems in their state. The Ethiopian state is not a great stage right now. The demonstrations and the killings of civilians continue as well as activists are detained together with opposition leaders. The Ethiopian leadership needs this conflict with Al-Shabaab to look good and also possibly make people forget their own actions against their own citizens.

We can wonder what the Somali President are considering and his motives behind getting Ethiopian forces as well, as the AMISOM and Kenyan forces on his soil. There are lots of foreign forces protecting the Somali life, they are there paid by foreign donors, therefore their loyalty isn’t to the Transitional Government, but to the donors. When the donors stop, they will leave and fight conflicts elsewhere. While the Somali government are also trying to change the regional leadership in the federation to make sure they are more Mogadishu friendly and not as independent to make agreement with foreign nations without the permission of Mogadishu, as the DP World contract is evident off.

We can just wonder how long the Ethiopian forces will be on Somali soil and to what extent their mandate is, as the AMISOM and the Al-Shabaab vows is not over. Peace.

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

 

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

ONLF Press Release: Disinformation about Abdikarin’s refoulement to TPLF-led Ethiopian regime by the Somali regime of Farmajo (02.09.2017)

Drought-stricken herders in Ethiopia need urgent support (11.08.2017)

Pastoralist communities are facing huge losses of livestock.

ROME, Italy, August 11, 2017 – Supporting herders to get back on their feet and preventing further livestock losses and suffering are crucial in drought-hit Ethiopia where hunger has been on the rise this year, warned today the Food and Agriculture Organization of the United Nations (FAO).

Drought has devastated herders’ livelihoods as it exhausted pastures and water sources, leading to a significant number of animals dying or falling ill, particularly in the southern and southeastern regions of the country as other areas recover from previous seasons’ El Niño-induced drought.

Drought-hit pastoralists face reduced milk production, rising malnutrition, and have limited income-earning capacity and severely constrained access to food.

Some 8.5 million people – one in 12 people – are now suffering from hunger; of these, 3.3 million people live in Somali Region.

The current food and nutrition crisis is significantly aggravated by the severe blow to pastoral livelihoods. For livestock-dependent families, the animals can literally mean the difference between life and death, especially for children, pregnant and nursing women for whom milk is a crucial source of nutrition.

With up to 2 million animals lost so far, FAO is focusing on providing emergency livestock support to the most vulnerable pastoralist communities through animal vaccination and treatment, supplementary feed and water, rehabilitating water points, and supporting fodder and feed production.

“It is crucial to provide this support between now and October – when rains are due – to begin the recovery process and prevent further losses of animals. If we don’t act now, hunger and malnutrition will only get worse among pastoral communities,” said Abdoul Karim Bah, FAO Deputy Representative in Ethiopia.

By providing supplementary feed and water for livestock, while at the  same time supporting fodder production, FAO seeks to protect core breeding animals and enable drought-hit families to rebuild their livelihoods. Animal health campaigns will be reinforced to protect animals, particularly before the rains set in, when they are at their weakest and more susceptible to parasites or infectious diseases. FAO-supported destocking and cash-for-work programmes will also provide a crucial source of cash for families.

Funding appeal

FAO urgently requires US$ 20 million between August and December to come to the aid of Ethiopia’s farmers and herders.

FAO has already assisted almost 500,000 drought-hit people in 2017 through a mix of livestock feed provision, destocking and animal health interventions, thanks to the support of the Ethiopia Humanitarian Fund, Switzerland, Spain, Sweden through FAO’s Special Fund for Emergency and Rehabilitation Activities, the United Nations Central Emergency Response Fund, as well as FAO’s own Early Warning Early Action fund and Technical Cooperation Programme.