MinBane

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Archive for the tag “Government of Ethiopia”

UNESCO World Heritage Committee inscribes Kenya’s Lake Turkana as “in danger” over Gibe Dam impacts (28.06.2018)

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Joint Communique on the Occasion of the State Visit to the Republic of Uganda by His Excellency Dr. Abiy Ahmed Ali, Prime Minister of the Federal Democratic Republic of Ethiopia (08.06.2018)

Trump’s Trade-War is now hitting East Africa: Because of possible lost trade with Second-Hand Clothes!

Museveni buying shoes in Wandegeya, 02.06.2017.

United States of America is really just cherry-picking the world right now, they are evolving into a beast and not an Uncle Sam. President Donald J. Trump don’t like to have friends, unless they are related or Roger Stone. That is now seen with his recent activity, not that he knows of these countries or these market. That I say, because he has no hotel or haven’t laundered money from there. The countries being hurt by his new policies are Rwanda, Uganda and Tanzania. Places he would never travel to or have consideration about. That is because in his mind, they are shitholes, but as long as they serve as vassal states for the United States. Everything is fine and dandy.

What we are talking about is this:

(A) THE PRESIDENT IS AUTHORIZED TO DESIGNATE A SUB-SAHARAN AFRICAN COUNTRY AS AN ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY IF THE PRESIDENT DETERMINES THAT THE COUNTRY (SEE NOTE*)

(1) (A country that) has established, or is making continual progress toward establishing–

(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimises government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets” (AGOA – ‘AGOA Country Eligibility’).

It is special that the US President is using this against these three states on the imports of used-clothes and shoes. That these three republics trying to develop their own textile and clothes industry, to create work and also revamp the economies. That would mean, that people would also earn more money and spend more money. In the end buying foreign produced clothes on the fashion-lines, that usually are branding American and European brands. Therefore, I don’t understand why Trump suddenly acts like this, when Rwanda, Uganda and Tanzania wants to secure their industries.

Because, it is not many days ago, since the President himself used rules and provisions to secure the Steel and Aluminum industry on his own soil. So, that the giant United States can control it, but their trading with other can be spoiled, because it doesn’t favor the President. Seems like double-standard to be. It is easy to muffle the poor and the ones with lack budgets, that are in need of donors. They need to stifle the demands of the powerful, but the ones with power can just use the same means themselves. Still, that doesn’t make it right.

That the United States are trying to force their used-clothes on Rwanda. Like they don’t deserve their own clothes industry and to secure better products, local designs and local textiles is insane. Why shouldn’t they strive for that? Why shouldn’t Uganda strive for their own Bata’s? What is wrong with Tanzanian made shoes? Nothing really, that should be supported, especially if the United States wants to think long-term and create better exports. They would earn even more on ordinary trade of clothes, not second-hand that sold bulk and through other channels. But I am sure that Trump has no knowledge of this or even could imagine it.

This is clearly a step of imperialism from United States, since they cannot stomach, that the partners and the ones getting donations through USAID. Isn’t accepting to be a bazaar for their used stuff. The products that is B-Level and already had their day in the sunshine.

Knowingly, how he is America First, the man himself should understand how others wants to build to their own industries, but thinking Trump has that capacity of thinking is overstepping and thinking that he could actually calculate, that others are sovereign too and not only his state. The East African Republic’s shouldn’t be punished for acting in their own interests over second-hand clothes. Neither second hand shoes. That is insulting and infuriating. If it was just charity and done out direct needs. It would make sense, but if your forcing bad products, because of own will for quick-profits and at the same time destroying local industries. I understand why Rwanda, Tanzania and Uganda is trying to ban it and stop it. I respect that and stand behind it. Who wants a old T-Shirt, when you can buy a local-made?

If you buy a local-made, it would create a job for the one making it, the one designing it and the one selling, plus the distribution within the state. That is good business and create lots of job. These jobs create other jobs and funnel money in the system. So some of them will buy foreign design and clothes, that might even be American. That is how the United States should think, if they cared about a free-market narrative, but they are now planning to punish Rwanda and others, because they want to build-up own industry.

Trump is creating a trade-war over Second Hand Clothes.

Second Hand Clothes to East Africa!

Washington, DC – The President determined today the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA). In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment. Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days” (AGOA – ‘ President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda’ 30.03.2018).

This is infuriating and not cool. AGOA should be used as a method to not destroy industry in the developing countries, but add revenue both ways. Now the United States is just using imperialism. Trade-War with East African Countries.

Trump is foolish and also, this is not gaining sympathy and the reasons for this. This isn’t adding and just show how belittling and narrow-minded he is. But that we knew, we just have to see who spanks him. Peace.

Teff-Flour Patent Belongs to Ethiopia: Sanction Roosjen and his businesses now!

It is now revealed that someone named Jans Roosjen of the Netherlands has a United States Patent on the Teff Flour, the tradition food source backing done thousands of years. Roosjen is officially a pre-historical human being, he is back-to-future, he is the mirage and the answers of all things. Since he can patent something that has been part of Ethiopian culture and their practices, without their consent and without consideration. He is not the owner of Teff Flour. The United States Patent Office shouldn’t accept this, because this is taking someones national pride and food culture and stamping their ill-gotten name on it.

This is a mockery of invention, this is cultural and staple food theft. It would be like stealing french-fries from Belgium, the Kimchi from South Korea or the Feijoada from Brazil. No one owns that invention, but you cannot patent it too. This is made for the people and owned by the people, secondly, as a foreigner you should appreciate the culture, not steal it. That is what this man has done with the Patent of Teff Flour milling. Like he invented it, he didn’t invent it, he just served a document and filing to the Patent Office. They should have dismissed it as a insane thinking of a European man, who has no ownership to the food cuisine of Ethiopia. 

Teff History:

Teff (Eragrostis Tef) is a cereal crop of Poaceae or Gramineae family with small grains. It is believed to have originated in Ethiopia between 4000 and 1000 BC [1]. Teff seeds were reported to be discovered in a pyramid which is thought to date back to 3359 BC [1]. It is a primarily cultivated cereal crop in Ethiopia with high market price and socio-economic values. Its center of origin and diversity is Ethiopia” (…) “The cultivation of teff as a major cereal crop in Ethiopia was started thousands of years ago. As mentioned in the Introduction, some researchers have indicated that teff production in Ethiopia has a history of more than 4000 years. Teff is a primarily cultivated cereal crop in Ethiopia with high market price and socio-economic values” (Daba, 2017).

Encyclopedia of Life (eol.org) states this:

Between 8,000 and 5,000 BC, the people of the Ethiopian highlands were among the first to domesticate plants and animals for food and teff was one of the earliest plants domesticated.[4] Teff is believed to have originated in Ethiopia and Eritrea between 4,000 BCE and 1,000 BCE. Genetic evidence points to E. pilosa as the most likely wild ancestor.[5] A 19th century identification of teff seeds from an ancient Egyptian site is now considered doubtful; the seeds in question (no longer available for study) are more likely of E. aegyptiaca, a common wild grass in Egypt.[6]” (eol.org – ‘Eragrostis tef’).

That Roosjen own business, which is on his page teff-grain.com, where he states: “given the fall-numbers the mixing of teff-grain or flour with other flours/seeds is patented”. That is very insane, that a man from Netherlands or Holland is thieving a 1000 year old tradition and trying to keep it to himself. That is disgusting, it would be okay if he imported it through Prograin, the company he is owns and serves, but patenting it, is taking it a bit to far.

So the Roosjen started a shop in 2004, patent it in 2006 and has forgotten the tradition of the food. It is time for the world to patent everything for Nethlands, the wind-mills and when coming to foods. It is time for Ethiopians to patent Dutch tradition food, to retaliate like Pannenkoeken, Erwtensoep, Poffertjes and Stroopwafels. Because if a random Dutch man can patent food for centuries and get away it. The Ethiopian and government, should do similar acts until the Dutch retract this nonsense. This is demeaning and insulting of all humanity. Its like patenting human life itself, Roosjen next project could be to patent one of the pyramids of Egypt. Since he could already has stolen, the pride and staple food of injeera of Ethiopia.

Roosjen, you do not own an African Cuisine, you don’t have the rights to patent 8000-year old tradition food from Ethiopia. How dear you, you should retract it and be glad to mother, that you can still import this food and the flour itself. The Ethiopian partners of yours should stop selling to you. Since, you have betrayed their tradition and their cuisine, they should boycott you and yours families business.

A Dutch Company and a Dutch Man is lucky to be able to trade the commodity, they should sanction the man. The farmers, the traders in Addis Ababa, the ones who has traded with his company and the ones licensing sale to him. Should stop immediately, he doesn’t deserve it. Because he has stolen part of the pride of Ethiopia. No one has the right to do so. No-One has the right to do so, it is insulting and demeaning.

Peace.

Reference:

Daba, Tadessa – ‘Nutritional and Soio-Cultural Values of Teff (Eragrostis tef) in Ethiopia’ (May 2017)

Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

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

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.

EPRDF (Ethiopian Government) to head the Media Forum at CAPP: Apparently, the Oppressors of Media running the show!

Isn’t this strange how the Ethiopian government get accolades and honors, the latest was this week in Niamey in Niger. What is special is that this one is about perception and about the profession of media. A profession that is dangerous to have in Ethiopia. In a country where journalists who writes articles are detained, editors detained and bloggers jailed. Two TV-Channels banned in 2016 during the ‘State of Emergency’ and other acts against the freedom of expression in Ethiopia. With this in mind, all of the detained journalists and bloggers in Ethiopia, the knowledge of this should been known by leadership and committee of Council of African Political Parties (CAPP). But they doesn’t seem to care, because if they did. The CAPP would know of the countless innocent citizens writing and spelling out the oppressive behavior of their government. Would see the light of day and not be incommunicado. The amounts of journalists who has been trialed and taken to serve time in prison. Also, the modern day bloggers who has gotten same ill-treatment. That is why this news of getting the lead in the Media Forum of CAPP. Just take a look!

Press Statement from ENA on CAPP:

Addis Ababa July 13/2017 The Constitutive Meeting of the Media Forum of the Council of African Political Parties (CAPP) held in Niamey, Niger, has elected the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) to lead the Media Forum. Council of African Political Parties (CAPP) is a non-governmental organization established by 47 African political parties representing 35 African countries in the constitutive conference held in Khartoum, Sudan, in April 2013. According to a press statement issued by EPRDF, the party’s representative at the meeting, Kebede Kassa, commended the confidence the political parties have shown on Ethiopia and its ruling party” (…) “The Media Forum is an organization for the media cadres of the African Political Parties to advance their profession through updated technologies, discussions on issues of interest and exchange of experiences, it was learned. On the occasion, Secretary General of Council of African Political Parties (CAPP), Dr. Nafie Ali Nafie explained the need for the establishment of the Media Forum to realize the objectives of the council. According to him, “the Media Forum should play to correctly introduce Africa instead of the negative perception regularly viewed in particular by the western media.” (ENA, 2017).

The government in Ethiopia cracks down on the media and wants it’s fist on it. They are repressive against uprisings and freedom of expressions. Therefore, the Ethiopian government and the EPRDF is not fit to lead the Party. The Media Forum of CAPP will not help the troubles and the ones in need in jail. That the Council of African Political Parties (CAPP) are not considering the implications of their leaders and heads of their Forums, since they have elected one that can easily silence and oppress its own. So it is like having tobacco producers to run cancer studies and efforts for better health, when everyone knows the causes of the extensive use of tobacco.

Like reports in mid-July the Government wrote to all media and ordered them if they we’re to mention the deceased Prime Minister Meles Zenawi in a sentence either as “Great/Visionary”. So this is a state who orders the news and controls the messages. If it doesn’t fit the EPRDF it will be silenced or detained. Therefore, how come these sort of people shall introduce the world to Africa, which is just wrong. CAPP should had the possibility to pick someone with a little less oppressive track-record on the media among their member parties. Peace.

Reference:

Ethiopian News Agency (ENA) – ‘EPRDF Elected President of CAPP Media Forum’ (13.07.2017) link:http://www.ena.gov.et/en/index.php/politics/item/3483-eprdf-elected-president-of-capp-media-forum

FAO issues alert over third consecutive failed rainy season, worsening hunger in East Africa (14.07.2017)

Number of people needing humanitarian assistance on the rise.

ROME, Italy, July 14, 2017 – Poor rains across East Africa have worsened hunger and left crops scorched, pastures dry and thousands of livestock dead – according to an alert released today by the UN Food and Agriculture Organization (FAO).
The most affected areas, which received less than half of their normal seasonal rainfall, are central and southern Somalia, southeastern Ethiopia, northern and eastern Kenya, northern Tanzania and northeastern and southwestern Uganda.

The alert issued by FAO’s Global Information and Early Warning System (GIEWS) warns that the third consecutive failed rainy season has seriously eroded families’ resilience, and urgent and effective livelihood support is required.

“This is the third season in a row that families have had to endure failed rains – they are simply running out of ways to cope,” said FAO’s Director of Emergencies Dominique Burgeon. “Support is needed now before the situation rapidly deteriorates further.”

Increasing humanitarian need

The number of people in need of humanitarian assistance in the five aforementioned countries, currently estimated at about 16 million, has increased by about 30 percent since late 2016. In Somalia, almost half of the total population is food insecure. Timely humanitarian assistance has averted famine so far but must be sustained. Conditions across the region are expected to further deteriorate in the coming months with the onset of the dry season and an anticipated early start of the lean season.

The food security situation for pastoralists is of particular concern, in Ethiopia, Kenya and Somalia, where animal mortality rates are high and milk production from the surviving animals has declined sharply with negative consequences on food security and nutrition.

“When we know how critical milk is for the healthy development of children aged under five, and the irreversible damage its lack can create, it is evident that supporting pastoralists going through this drought is essential,” said Burgeon.

Livestock prices have plummeted because of poor animal body conditions and this, coupled with soaring cereal prices, has severely constrained pastoralists’ access to food.  Rangeland and livestock conditions are expected to further deteriorate at least until the next rainy season starts in October.

Poor crop prospects

In several cropping areas across the region, poor rains have caused sharp reductions in planting, and wilting of crops currently being harvested. Despite some late rainfall in May, damage to crops is irreversible.

In addition, fall armyworm, which has caused extensive damage to maize crops in southern Africa, has spread to the east and has worsened the situation. In Kenya, the pest has so far affected about 200 000 hectares of crops, and in Uganda more than half the country’s 111 districts are affected.

In Somalia there are unfavourable prospects for this year’s main gu crops, after the gu rains were late with poor rainfall and erratic distribution over most areas of the country. In the Lower Shabelle region, the main maize producing area, seasonal rainfall was about 50 percent below- average and drought conditions are currently affecting up to 85 percent of the cropland.

In Ethiopia, unfavourable belg rains in southern cropping areas are likely to result in localized cereal production shortfalls. Drought is also affecting yields in Kenya’s central, southeastern and coastal areas. In Tanzania, unfavourable rains are likely to result in localized cereal production shortfalls in northern and central areas, while in Uganda there are unfavourable production prospects are unfavourable for first season crops in the southwestern and northern districts.

Cereal prices are surging, driven by reduced supplies and concerns over the performance of current-season crops. Prices in May were at record to near-record levels in most markets and up to double their year-earlier levels.

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