Prime Minister Abiy Ahmed says his government has secured another $3 billion funding to finance “growth plan,” details missing

A day after the IMF announced that staff agreement is reached to lend the US $2.9  billion to Ethiopia, over three years period, Ethiopian Prime Minister Abiy Ahmed disclosed on Friday that his government is getting an additional U.S. $3 billion from what he called “Development Partner.”

“I am pleased to announce that the Government of Ethiopia is right now finalising additional funding for the ongoing Economic Reforms!,” he wrote on his personal social media page. 

It will be used to finance “Home Grown Economic Agenda,” specifically in three focus areas: “Macro-economic, Structural, and Sectoral reforms”, according to PM Abiy Ahmed.  Details of the focus areas are not spelled out in the Prime Minister’s update.

While he made it clear that the fund has nothing to do with ones that are approved by the World Bank and IMF, the U.S. $3billion and the U.S. $2.9 billion respectively, the source of the $3 billion new funding is blurry.

“The UAE and Saudi Arabia’s support is also greatly appreciated. We anticipate additional resources from the United Nations agencies and EIB,” he said.

It is also unclear if the fund is secured in the form of a concessionary loan or any other format.

Addis Fortune, a locally published business newspaper, reported on the same day that the U.S. $3 billion dollars is secured from Development Assistance Group (DAG), which it described as “a consortium of 30 donors based in Addis Abeba.”

State Minister for Finance, Eyob Tekalign, is cited as saying that the “financial aid” is intended to finance the implementation of the “Homegrown Economic Reform Programme.”

According to Eyob Tekaligne, the funding came in response to a meeting that the National Bank of Ethiopia and the Ministry of Finance put together at the United Nations Economic Commission for Africa (UNECA) in September of this year.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopian PM says additional $US 3 billion funding “secured”to finance “growth” appeared first on Borkena Ethiopian News.

False story of Debretsion’s death got Ethiopians on social media talking. Walta Information center was very TPLF in the past. Today, the latter is implicitly accusing it of working to make the people of Tigray vulnerable to ethnic-based attacks. Walta claims that it does not know how the information was published on its facebook page.

borkena
December 13, 2019

Tigray Region’s Communication Affairs Office issued a statement on Friday condemning Walta Information, which is known to most Ethiopians as a Pro-Tigray People’s Liberation Front (TPLF) until TPLF dominance over   Ethiopian politics ended in 2018, over false news about the death of Debretsion Gebremichal, Tigray region’s acting president.

“We would like to inform our people that the information by Media known as Walta Information Center about the death of Deputy President of Tigray regional state, Debretsion Geberemichael is fabricated story and absolutely false,” the statement said.

The region’s communication office framed the false news as a deliberate one with malicious intent against the people of Tigray.

The false information Walta disseminated on its Facebook page on December 13, 2019, is “part of the campaign that Waltainfo.com has been carrying out to make the people of Tigray vulnerable to ethnic-based attack,” said the statement.

The region also stated that it will hold Walta Information Center legally accountable.

Walta on its part updated its readers that on social media that the information regarding Debretsion Gebremichal was conveyed on its page without the recognition of Walta, and apologized for it.

It also said that it will investigate how it happened and make it public.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Tigray regional state furious about false news of Debresion’s Death, vows to sue Walta appeared first on Borkena Ethiopian News.

Wolayata statehood question is unstoppable. Sidama zone has already approved the question. Next step before national election board organize a referendum like in the case of Sidama is for the regional state council to pass decision

borkena
December 13, 2019

The question of ethnic-based statehood took a center stage in what is now Southern Nations, Nationalities, and People’s Region for some for over a year, at least.

Some political pundits tend to see rising ethnic-based statehood in the region as a work of radical ethnic Oromo nationalists and the objective behind is, according to these analysts, to break apart the entire region in a way to make them an easy targets for Oromization project.

That goals behind the actions of ethnic Oromo nationalists, those including government position, may be arguable. What is clear is that have championed the breaking up of Southern Nations, Nationalities, and People’s Region and demonstrated support as seen in the case of ethnic Sidama statehood.

On November 23, National Election Board of Ethiopia disclosed the result of the referendum for ethnic Sidama statehood which was administered on November 20. According to the board, more than 98 percent voted for ethnic Sidama statehood.

Now, ethnic Wolayta zone which is part of the region is pushing for similar status. Activists for the cause claim that there is no power that can reverse Wolayta zone’s move towards a statehood status. The question to break away is constitutional and several other ethnic groups in the region are vying for statehood. What is the fate of the region if all these question are honored as in the case of Sidama is very clear – there will no longer be Southern region which was the only Ethiopian region which was not organized on the basis of ethnicity in the sense that more than 50 ethnic groups that constituted it unlike the rest of regional states.

Video below features Wolayata activists making a case for ethnic Wolayta state.

Video : embedded from Andafta media YouTube channel
Cover photo : screenshot from video

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post “Wolayta statehood question is not reversible”activists appeared first on Borkena Ethiopian News.

In less than four months, at least about 1000 illegal handguns are captured in Bahir Dar, not to mention other regions of Ethiopia.

borkena
December 16, 2019

Over 449 illegal handguns are seized in Bahir Dar, the seat of Amhara regional state, in Western Ethiopia. The guns appear like the ones that security authorities in the past described as “Turkey made hand guns.”

According to Amhara Mass Media Agency (AMMA) report on Monday which cited the region’s police commission as a source, the handguns were seized from a tenant who rented a room in Emperor Tewodros II sub-city in Semaetat locality. 

The identity of the suspect is not disclosed. He lived in the unit for about a month.  The source also said that police were tipped that the person rented out ISUZU pick up truck to transport the guns to the place that he rented.

Commander Mesert Debalkie, head of communication and media development, said that the illegal arms were seized in a joint operation with the city’s anti-riot police and the 5th police division in the city.

The origins and destination of the illegal arms is not yet determined. However, borkena has learned that an investigation is established to determine the source of illegal arms circulation.

According to the report by AMMA, landlords now have a responsibility to have a copy of the identification card of their tenants and know their identity.

Amhara regional state is one of the regions in the country where the illegal circulation of firearms has become a persistent problem.

As much as the capture of illegal firearms and foreign currency is making news headlines media outlets in the country, there are those Ethiopians who tend to think that perhaps the number of smugglers who are not captured is higher.

In September of this year, nearly 500 illegal handguns and over 46,000 ammunition were captured in the same city.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Over 449 illegal weapons seized in Bahir Dar appeared first on Borkena Ethiopian News.

borkena
December 16, 2019

Tesfu Gebru, Ethiopian man and a father of four, is reportedly missing in Atlanta. According to Mereja, Ethiopian News, which in turn cited another Ethiopian news source- Admas Radio, Tesfu, did not return home since Sunday, December 9.

His spouse, Mekdes, told Admas radio that she has reported the matter to the police. However, Mekdes, said that she was told that her husband could return and to wait.  She first called her husband when did not return from work at the time he normally does. She continued to call him until Monday morning (December 10) and she reported to the police.

Police declined to register her husbands’ name as a missing person since it had not been 24 hours by that time since he was missing, said Mekdes.

“…he is my husband, my brother, and my father, and we have four children,” she said as cited by Mereja. She needs the support of Ethiopians in finding her husband.

Police have established that his credit card was used at a gas station on Monday but there was no video footage in the gas station, and hence unclear to tell if it was him or not.

Tesfu Gebru lived in Atlanta for about twenty years.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopian man, father of four reportedly missing in Atlanta appeared first on Borkena Ethiopian News.

Investment law draft allows foreigners to own land in Ethiopia for residential purpose. Parliamentarians point out that it is against the constitution

borkena
December 17, 2019

The Ethiopian Parliament discussed on Tuesday investment law amendment. It  triggered controversy as the draft allows foreigners to have what the Ethiopian constitution calls right to “immovable property,” a right which is exclusively, as stipulated in the Ethiopian constitution, reserved for Ethiopian citizens ( You may refer to article 40: 3, among others subsections)

According to a report by Sheger FM, article 18 subsection 2 of the draft allows foreign investors in Ethiopia to build and own a residential house in Ethiopia.

State Minister Chala Lemi told members of parliament, as reported by Fana Broadcasting Corporation (FBC), that the investment law draft  is informed by “job creation, technology transfer, growing the foreign currency as well as making use of Ethiopia’s natural, cultural and other resources.”

Members of parliament, however, opposed it pointing out that the Ethiopian constitution clearly specified right to get land for residential purpose and build a house, create an “immovable “wealth to Ethiopians, and they argued that the draft contravenes the supreme law of the land. 

As it is directed to the relevant standing committee in the House of Commons, parliamentarians emphasized that the committee should look into it carefully before it is approved.

The sixth regular session of the House of Commons has also discussed draft to privatize state-owned enterprises.  Chala Lemi framed the purpose of privatization as “improving productivity and competitiveness, and enhance capital and financial supply” of these enterprises.

One of the first economic reform measures that Abiy Ahmed introduced just a few months after taking over the office of Prime Minister was to “privatize” enterprises that are widely seen as national assets. Ethio-Telecom, Sugar-enterprises and Ethiopian-Airlines are among enterprises to be privatized. As the matter was expected to be sensitive to most Ethiopians, the prime minister’s approach was to establish a council, by handpicking individuals that are believed to have considerable social influence, to oversee the process.

Despite that, reputable Ethiopian economists have been alarming the public about irreversible damages that the privatization policy could bring to Ethiopia.

Abiy Ahmed’s government has recently got over $6 billion dollars in loans from international financial institutions like IMF and The World Bank, not to mention funds from state actors in the Gulf region. And it seems that privatization policy was one of the conditions.  In fact, the draft legislation to amend investment law came barely a week after the IMF and The World Bank announced the loan to support Abiy Ahmed’s “homegrown economic growth” policy.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Investment law draft that allows foreigners to own land for residential home triggers controversy appeared first on Borkena Ethiopian News.

Russia seem to be interested in action from Ethiopia to “take cooperation to the next level” in the area of military cooperation

borkena
December 18, 2019

The 10th Ethiopian and Russian military cooperation meetings are underway in Moscow, state-affiliated Fana Broadcasting Corporation reported on Wednesday.

State Minister in the Ministry of Defense, Ambassador Lelaalem Gebreyohannes, and Anatoliy Punchuk, Head of the Russian Delegation and Deputy Director of Federal Service for Military and Technical Cooperation (FSMTC) co-chaired the meeting.

It aims to enhance military and technical cooperation between Russia and Ethiopia.

Ambassador Lelaalem Gebreyohannes hailed long standing cooperation between the two countries and expressed Ethiopia’s readiness to strengthen the relationship. 

Anatoliy Punchuk on his part called on Ethiopia to take action to elevate the relationship to the next level, according to FBC report.

Russia and Ethiopia have agreed to cooperate on the peaceful use of nuclear energy in October 2019 when Russia hosted Russia -Africa partnership summit in Socci. 

Earlier, in September of 2019, Ethiopian Foreign Minister Gedu Andargachew and Russian Foreign Minister Sergey Lavrov met in Moscow. It was officially disclosed that the two parties held talks on ways of broadening cooperation between the two countries, and it was agreed to hold regular meetings.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Russia wants action from Ethiopia to elevate military cooperation appeared first on Borkena Ethiopian News.

borkena
December 18, 2019

Ethiopia’s attorney general Berhanu Tsegaye says that effort is underway to repatriate illicit assets stashed away in other international jurisdictions through corrupt practices.

He said that on Tuesday this week during his appearance at the Ethiopian Parliament to present his work report for the past eleven months, according to a report Fana Broadcasting Corporate (FBC).

An agreement is reached with some countries to recover national assets, and the government is also working on reaching similar agreements with other countries.

However, Berhanu Tsegaye did not disclose as to which countries are cooperating with Ethiopia in International asset recovery areas.

Based on the FBC report, the location of the asset and individuals who are behind the crime are already identified, and they will be legally held responsible.  Citing the complexity of the matter, the Ethiopian government said that the lists of individuals and the country to which they stashed away assets gained through corrupt practices will be made public as soon as the investigation is finalized.

Attorney General’s public relations affairs directorate, Zinabu Tulu, said the absence of a system in place to administer assets acquired through corrupt practice was a challenge.

To that end, the Asset Recovery Directorate is formed as part of the effort to recover the wealth.

Kleptocracy and nexus of investors-government officials facilitated ways for ill-gained assets to leave Ethiopia.

The attorney general’s office claims that over 95 million Ethiopian Birr is recovered in the 2018/2019 Ethiopian budget year and over 35 million Ethiopian birrs in the last three months. However, Zinabu Tulu did not make it clear where exactly the money was recovered from and if arrested were made.

The office of the attorney general did not disclose an estimate of the assets that are believed to have been taken outside of the country.

A research-based report released by Transparency International in 2015 said that “Ethiopia is among the top ten African countries by cumulative illicit financial flows related to trade mispricing. This amount may be much higher if funds from corruption and other criminal activities are considered.”

Embezzlement, bribery and tax evasion are among areas identified in the study as sources for illicit financial flows from Ethiopia. In the period between 1970 and 2008, Ethiopia has lost about $16.5 billion dollars in illicit financial outflow, according to the 2015 study by Transparency International.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopia working to repatriate illicit assets acquired through corrupt means says AG appeared first on Borkena Ethiopian News.

WCHR Press Release
December 19, 2019

The Wolayta Committee for Human Rights (WCHR) condemns the extrajudicial arrests of Wolayta activists today by the Ethiopian military. The people of Wolayta have protested peacefully and there was no tension until the federal forces arrived to the zone.

WCHR also condemns the reckless rhetoric of several Wolayta activists who are failing to show the same patience displayed by the honorable Wolayta people. Fame hungry activists should stop putting Wolayta people on harms way. These same activists never cared when dozens of innocent Wolayta people were massacred in Hawassa, Burayu, Ziway and many suburban towns nationwide during the ethnocentric and xenophobic killings of recent years. So our people should not follow these power-hungry politicians and activists during the peaceful and democratic struggle for equality.

Nonetheless, the reported basis of the latest arrests, predicated upon a potential future destabilization of the region, is not a credible reason for the detentions. The federal and SNNPR state governments must stop the arbitrary arrests and follow the rule of law when protecting the security of Ethiopian citizens. (WCHR)

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Wolayta Committee for Human Rights Statement on Wolayta Statehood question appeared first on Borkena Ethiopian News.

Ethiopian government did not disclose the terms of the loan from Saudi Arabia

borkena
December 19, 2019

Saudi Fund for Development is making available $US 140 million to Ethiopia in the form of loan, Ethiopian News Agency (state media)reported on Thursday.

Saudi Arabia’s financial aid came after Vice Chairman and Managing Director of the Board of Directors of SFD, Khaled bin Sulaiman Al Khudair, visited Ethiopia and met with senior Ethiopian government officials including the prime minister Abiy Ahmed on Thursday.

Ethiopia’s Minister for Finance, Ahmed Shide, and Khaled bin Sulaiman Al Khudair have signed the loan agreement in the capital Addis Ababa. It is the Prime Minister himself who presided over the signing ceremony. 

His office disclosed that “Prime Minister Abiy also presided over the signing of two concessional loan agreements with Saudi Fund for Development amounting to 140 million USD to support road, water supply and sanitation development…”

On December 10, more than 150 businessmen from Saudi Arabia participated in a business forum was organized in the capital Addis Ababa.

According to ENA report, part of the fund is to be used for infrastructure development work underway in western Ethiopia and the rest will be channeled towards  the implementation of One WASH program. It is a program “… designed to strengthen provision of water, and sanitation and hygiene in urban and rural areas that will continue until 2023” 

Last week, the International Monetary Fund (IMF) and The World Bank (WB) disclosed a  $6 billion dollars loan to Ethiopia to support “Home Grown Economic Growth” program. 

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Saudi Arabia to provide Ethiopia with $US 140 million loan appeared first on Borkena Ethiopian News.

Oromo and Amhara business communities are said to be behind National Peace Conference event on Friday

borkena
December 19, 2019

A national peace conference is organized on Friday this week at the Millennium Hall in the capital Addis Ababa. It is organized by a committee assigned by the business community of ethnic Amhara and Oromos, according to a report by Fana Broadcasting Corporate (FBC).

“Let’s create Ethiopia together that is convenient for us all,” is the motto of the conference. The motto seems to assume that the Ethiopia that is convenient to all is not created yet –  a view that aligns very well with the narrative of ethnic Oromo Nationalists; almost all ethnic-Oromo political parties including the ruling one, Oromo Democratic Party (ODP), political creeds.  

The organizing committee is cited as saying that “the conference is organized with the intention to demonstrate that problems in Ethiopia could be resolved through a round table dialogue.”  

Mrs. Firealem Shibabaw is the chairperson of the organizing committee. She said, “the conference will support government effort to bring about national consensus and durable peace in the country.”

It is unclear as to what makes the event national peace conference while it is involving only ethnic-Amhara and ethnic-Oromo communities.  

But it is indicated that the conference will draw as many as six thousand participants. Senior government officials, representatives of the business community, religious leaders, elders, youth groups and students of institutions of higher learning are expected to attend it.  

Prime Minister Abiy Ahmed’s administration has been rattled by a series of pervasive ethnic-based conflicts in different parts of the country so much so that he had to create a Ministry of Peace with a mandate more powerful than the rest of the ministries.  Well over a year after its creation, peace is still an issue in the country.

In late October, at least 86 people were killed, based on Prime Minister Abiy Ahmed’s official number, in Oromo region of Ethiopia hours after radical ethnic Oromo Nationalist activist and media entrepreneur, Jawar Mohammed, wrote a facebook update claiming that government forces are surrounding his residence in the middle of the night.

There have also been incessant ethnic-based clashes involving Amhara and Oromo students in Universities across Amhara and Oromo regional states of Ethiopia.

This week, ethnic-Amhara and ethnic-Oromo political parties, including those in power, reached an agreement after two days of meetings in the capital Addis Ababa to “work together to stop violence in Universities.” They have also agreed to cooperate in other areas as well.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post National Peace Conference organized at Millennium Hall appeared first on Borkena Ethiopian News.

By TESFA-Alem TEKLE
borkena
December 20, 2019

(ADDIS ABABA) – Ethiopia on Friday successful launched its first ever satellite to space through the support of China.

The launch took place at around 7:02 am local time from a satellite launch station located around 400 kilometers away from Beijing.

Footage on Ethiopia’ national television showed the satellite soaring long into the sky.

High-level government officials have witnessed the launch of the satellite Live on national TV, from a command and control center in Ethiopia at the Entoto space observatory facility, East Africa’s only space observatory facility.

Named ETRSS-1, Ethiopia will use its remote sensing micro satellite to monitor weather patterns resources and to forecast weather for better agricultural planning,  to monitor drought early warning system and forestry management.

The satellite is a 72 kg Multi-Spectral Remote Sensing Satellite, built at a cost of USD 8 million through the support from the Chinese government.

The satellite was launched as a result of a collaboration between Ethiopian and Chinese engineers.

Today’s launch of ETRSS-1 is part of Ethiopia’s phase I of space development strategy.

According to Minister of Innovation and Technology, Getahun Mekuria, Ethiopia’s phase II space development  project is expected to start in January 2020 which intends the construction of satellite manufacturing, assembly, integration and test (MAIT) facilities in the capital Addis Ababa.

Ethiopia has an ambitious plans of launching more navigation satellites in the years to come.

“Ethiopia is planning to launch 15 satellites in the next 10-15 years” Beza Tesfaye,General Manager of Ethiopian Space Science Society told Borkena.

Beza says once launched those satellites will will help Ethiopia save the money that it currently spends to get information from foreign-owned satellites.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopia Launches its first Satellite from a space station in China appeared first on Borkena Ethiopian News.

borkena
December 20, 2019

Three Mosques are reportedly burned entirely on Friday in the evening around 7:30 p.m. local time in western Ethiopia.

In a social media update on Friday, Ustaz Abubakr Ahmed, a former member of Ethiopian Muslim Committee member and a notable figure who is also elected as a member of Ethiopia’s Truth and Reconciliation Committee, said that the incident happened in East Gojjam Zone Mota district.

“…the Grand Jemihul Heirat mosque and two other mosques have been burned,” he said in his update which he wrote in Amharic. 

He also said that it happened after the ancient St. George church was blazed for unknown reasons.  Condemning the attack, he called on government authorities to act on it and get to the bottom of it to establish culprits behind it.

Gunfire in the town is reported although unclear if it has something to do with government securities or other armed groups. Stores are plundered.

Ethiopian government news outlets, at the regional or federal level, have not reported about the incident at this writing.  Ethiopian Federal police have not issued a statement or confirmed the incident, too.

Targeting and burning places of worship have happened in the recent past in the southern parts of Ethiopia. And it was mostly against Ethiopian Orthodox Tewahedo Church; dozens of churches have been burned.

But now it seems to be shifting to the northwestern parts of Ethiopia. And this time it is mosques that are targeted mainly. A video circulating on social media shows a group of people chanting songs as fire is shown in the background.

It is widely believed among Ethiopians that there are groups (internal and external) with a political motive behind the attacks on places of worship.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Three Mosques reportedly blazed in Western Ethiopia appeared first on Borkena Ethiopian News.

borkena
December 20, 2019

Ethiopian Prime Minister Abiy Ahmed made a speech during the peace conference organized at the Millennium Hall in the capital Addis Ababa on Friday. 

“Living together does not mean that there is no divergence of thoughts. It is unnecessary to kill one another because of it,” he said. 

He was also making a reference to one of Ethiopia’s persistent security challenges for several months now; ethnic-based clashed in the institutions of higher learning which claimed the lives of dozens of students.

He also pointed out that there are forces who are using students for manufactured conflicts. “…now strong security is organized in all universities and legal measures will be taken against those who are responsible for it,” he said. 

The peace conference was organized with the motto “Let’s build an Ethiopia that is convenient for us all.” And it was a committee assigned by Amhara-Oromo business communities that put together the event.

PM Abiy expressed his hope that both Amhara and Oromo people will work together with the rest of Ethiopia’s “nations and nationalities in all directions” to prepare similar discussions.

Senior government officials, members of the business community, religious leaders, elders, Abba Geddas, Youth groups and representatives from universities attended the conference. 

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopian PM says”strong security is organized in all universities” appeared first on Borkena Ethiopian News.

borkena
December 21, 2019

The executive Board of the International Monetary Fund (IMF) announced in a press release on Friday that it has approved US$2.9 Billion loan package to Ethiopia. It is to be released over three years period.

The Board has also approved Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).

The staff level approval of the loan was announced over a week ago.

The press release by IMF details content and program summery of the package. Full content of press release NO. 19/486 quoted below :

IMF Executive Board Approves US$2.9 Billion ECF and EFF Arrangements for Ethiopia

. IMF Board approves SDR 2.1049 billion (about US$2.9 billion) ECF and EFF arrangements for Ethiopia.

. The three-year financing package will support the implementation of the authorities’ Homegrown Economic Reform Program.

. The Fund-supported program aims to help authorities reduce external imbalances, contain debt vulnerabilities, lift financial repression, increase domestic resource mobilization which will also help devote adequate resources to pro-poor spending

On December 20, 2019, the Executive Board of the International Monetary Fund (IMF) approved three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for Ethiopia in an amount equivalent to SDR 2.1049 Billion (around 700 percent of quota or about US$2.9 billion) to help the country implement their `Homegrown Economic Reform Plan’ to maintain macroeconomic stability and improve living standards.

The program aims to support the authorities’ implementation of their ambitious reform agenda and catalyze concessional donor financing. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 223.85 million (about US$308.4 million). The Executive Board today also concluded the 2019 Article IV consultation with Ethiopia. A press release will be issued separately.

At the conclusion of the Executive Board’s discussion, Mr. David Lipton, First Deputy Managing Director and Acting Chair, stated:

“A decade of rapid growth, underpinned by strong policies, has supported a reduction in poverty and improved living standards in Ethiopia. However, the public investment-driven growth model has reached its limits. The authorities have prepared a Homegrown Economic Reform Plan to address macroeconomic imbalances, reduce external and debt vulnerabilities, phase out financial repression, and lay the foundation for private sector-led growth.

“A financial arrangement with the Fund will support the authorities’ plan, helping to catalyze concessional financing from other development partners. The program aims to address foreign exchange shortages and external imbalances; reform state-owned enterprises (SOEs); safeguard financial stability; and strengthen domestic revenue mobilization.

“Monetary tightening and reforms will help rein in inflation, facilitate credit to the private sector, and strengthen competitiveness. Greater exchange rate flexibility, supported by tighter monetary policy, will durably address foreign exchange shortages and narrow the spread between the official and parallel market rates. Further efforts are needed to modernize the monetary policy framework and deepen financial inclusion.

“Fiscal consolidation and reforms aim to reduce debt vulnerabilities, increase revenue, and strengthen expenditure efficiency while protecting social and development spending. Improving the financial positions of SOEs and strengthening their governance and oversight will also be critical to ensuring debt and financial stability.

“With strong ownership and full implementation of reforms, the authorities’ economic plan should eventually improve macroeconomic outcomes and lower external vulnerabilities. High priority is placed on removing constraints to private investment and improving the business climate, setting the stage for an acceleration in private sector-led growth.”

Annex

Recent Economic Developments

Ethiopia has sustained high economic growth over the last decade. Substantial progress on reducing poverty and improving social indicators has also been noteworthy. In 2018/19, real gross domestic product (GDP) is estimated to have grown by 9 percent, driven by manufacturing and services. However, the performance of goods exports remained weak and foreign exchange shortages persisted. Policies appropriately targeted at containing public investment and debt contributed to a further narrowing of the current account deficit to 4.5 percent of GDP and a reduction in public and publicly-guaranteed debt to 57 percent of GDP (from 59.5 percent). Inflation remained elevated in double digits, largely due to higher food prices, though non-food inflation has also been trending upward. While revenues came in below target, cuts in expenditure contained the fiscal deficit to 2.5 percent of GDP, below budget.

Program Summary

The public investment-driven model of the past two decades has delivered impressive economic and social outcomes but has resulted in growing vulnerabilities. To tackle these vulnerabilities, the authorities have recently unveiled an ambitious Homegrown Economic Reform Plan, (HERP), for which they are seeking Fund financial support. The new Fund-supported program is well-aligned with the HERP and designed to address macroeconomic imbalances and implement structural reforms to upgrade policy frameworks and facilitate the shift from public sector to private sector-led growth.

The program will:

• Address the foreign exchange shortage and the transition to a more flexible exchange rate regime. A further rationalization of import-heavy public investment projects, combined with reforms to boost FDI and exports, will address external sector vulnerabilities. Greater exchange rate flexibility over time will eliminate the gap between the official and parallel market and boost competitiveness.

• Strengthen oversight and management of state-owned enterprises (SOE) to contain debt vulnerabilities. Maintaining strict control of SOE borrowing will contribute to continued reduction of debt vulnerabilities. Publication of a consolidated financial performance for SOEs based on financial statements will increase transparency and accountability.

• Boost domestic revenue mobilization and increase expenditure efficiency to create space for reducing poverty and infrastructure spending. Revenue reforms on both the policy and administration front are designed to increase the tax to GDP ratio. These reforms, combined with efforts to strengthen public financial management, including increasing the efficiency of public investment, will ensure that infrastructure and social spending needs are met without undermining debt sustainability

• Reform the financial sector to support private investment and modernize the monetary policy framework. Reducing financial repression and developing the financial sector will increase private sector access to credit. A phasing out of central bank direct financing of the budget and development of short-term market-based instruments are essential to create a monetary policy framework that is well-equipped to consistently achieve inflation objectives.

• Reinforce the supervisory framework and financial safety nets. Progress towards strengthening regulatory and supervisory standards will contribute to continued financial stability. Approval and implementation of regulations for deposit insurance will be an important step to bolster financial safety nets.

For more information, Consult IMF Website.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopia : IMF Executive Board Approves US$2.9 loan appeared first on Borkena Ethiopian News.

borkena
December 23, 2019

A renewed clash  between students at the main campus of Ambo University is reported. It happened this past Saturday. According to DW Amharic service, the University’s president Tadesse Kenea said that  students were fighting each other throwing rocks but it was controlled by the security forces. 

It is also confirmed that classes are suspended following the security incident.

The University president said that “those who want clash between students are coming from other universities and inciting clashes.” 

“Few” Ambo University students have joined hands with those who came from other university on alleged grounds of  “showing solidarity.” 

No causality is reported. The University administration also disclosed that it is working with Abmo City administration  and community members to control the situation.

A new report that emerging on social media on Monday says as many as 400 ethnic Amhara students are in Addis Ababa following the security incident.

Ethnic based violence and clashes has become a main challenge for Ethiopian government. 

In a forum organized by political parties operating in Amhara and Oromo regions of Ethiopia reached agreement last week to work together to end ethnic based violence among students in the University campuses.

The issue of peace in University campus was also a main agenda during a conference organized on Saturday at Millennium Hall in the capital Addis Ababa. In this forum, which was organized by business communities from Amhara and Oromo, Prime Minister Abiy Ahmed said that his government has organized “strong security forces” in university campuses to end what he called clashes orchestrated by forces outside of the University with political motives.

Ethiopia’s Ministry of Science and Higher Education passed a decision last month to deploy Federal police members in all University campuses to protect the safety and security of students. 

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Renewed Clash in Ambo University, Classes suspended appeared first on Borkena Ethiopian News.

Ethiopia’s Intelligence Department, National Intelligence and Security Services (NISS), is rebranding itself as National Information Center (NIC) if the parliament approves it.

borkena
December 23, 2019

Ethiopia’s Intelligence Department, National Intelligence and Security Services (NISS), announced on Monday that it is rebranding itself.

The department has been going through numerous reforms, structural and personnel, as part of Prime Minister Abiy Ahmed’s administration reform measure.

State-affiliated Fana Broadcasting Corporate (FBC) cited the director, Demelash Gebremichael, as saying that draft legislation to guide fundamental institutional reform measures is prepared.

If the legislation is approved in the Ethiopian parliament, the department will be branded as National Information Center (NIC) eliminating keywords like “intelligence” and “security.”

The director did not highlight why rebranding his department was needed at this time.

But he described the proposed reform as “part of the work to create an information and security institution free from political, ethnic and religious affiliations.” The reform measure focused, as claimed by government from the get go, on making the institution a neutral one. But there has been allegation that the new director himself is from what is now Oromo Democratic Party (ODP), a party whose chairman is Prime Pinister Abiy Ahmed.

A strategic plan that charts goals to be achieved in ten years’ time is also prepared.

Preparations are also finalized, according to the director, to offer security and intelligence education at a B.A. Degree level. That’s part of the plan to strengthen the institution with technologically skilled manpower, as per the report.  

Tesfaye Daba, Chairperson of a parliamentary standing committee for peace and foreign relation, reportedly remarked that NISS is implementing reform measures to create a lasting institution.

Before embarking on reform measures, NISS had the image of being a tool for the Tigray People’s Liberation Front (TPLF). There was an allegation that it was dominantly controlled by a single ethnic group.

Under Getachew Assefa, one of the Key TPLF figures, the institution was a symbol of torture and repression. One of Prime Minister Abiy Ahmed’s major reform measures soon after he took office in 2018 was to remove the security chief and replace him with the head of Ethiopian Air force, General Adem Mohammed who is currently serving in the role of Defense Chief of Staff following the assassination of former chief of staff, Seare Mekonnen.

In related news, NISS said that it has finalized an investigation of selected government organizations suspected with grand corruption. But details are yet to be made public.

Demelash Gebremichael says over half a billion Ethiopian birr is recovered from tax evasion and plundering of government resources.  He also claimed that successful work has been done in terms of acquiring information related to the circulation of illegal firearms and cash. 

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopia’s Intelligence Department to rebrand as National Information Center appeared first on Borkena Ethiopian News.

Tigray region has been demanding explanation why Chinese delegation was prohibited from travelling to the region. Ethiopia’s Ministry of Foreign Affairs says the problem was in the airport security.

borkena
December 23, 2019

As a six-member delegation Shanxi province of China, headed by Vice-Chairman of the province, tries to head to Mekelle last week, they were prohibited by an undisclosed senior Federal government official. The delegation was heading to Tigray region to, according to Tigray regional state; hold a discussion on “bilateral relations” and investment in the areas of education and mining development.

Apart from the prohibition, the manner in which it happened has angered TPLF officials. Chinese province delegates were already on board of Mekelle bound Ethiopian Airlines Plane but they were pulled from the flight by security officials. Tigray region senior government officials who were awaiting them at Alula Abanega Airport in Mekelle learned something was not right after.

As it turns out, the guests were old that Tigray region authorities could fly to Addis Ababa.

Dr. Abraham Tekesete, one of the region’s top authorities working in the capacity of the region’s trade and investment office head, had no option but to fly to Addis Ababa to meet with Chinese delegates.

On December 21 Tigray regional state demanded, apparently for a second time, an explanation as to why the guests from China were not allowed to travel to Tigray. The regional state framed the action, as communicated through the region’s communication affairs bureau, as “inappropriate action that would hamper investment and related development” in Tigray.  It also went to the extent of claiming that it is an action that would harm “people to people relation.”

 Today, Ethiopia’s Foreign Ministry has responded to Tigray’s demand.

DW Amharic service spoke to Authorities within the ministry, according to a report it published on Monday, December 23, 2019. And one of the questions posed to them was whether the Chinese delegation had the recognition of the Federal government to come to Ethiopia for a visit and if they met the requirement.

State Minister in the Ministry, Markos Tekle, and confirmed that the delegation came to Ethiopia after meeting all the legal procedures. He also mentioned that there was correspondence between the Asia-Pacific affairs department and the Ethiopian Embassy in Beijing months before the visit, as reported by DW Amharic.

Markos also confirmed that the delegates were prohibited from traveling to the Tigray region of Ethiopia but it said that it happened without the knowledge of his ministry.

He said the incident happened due to an apparent communication gap between Airport Security units. “We will investigate the matter in cooperation with Airport security officials and other relevant bodies,” Markos is cited as saying.

Until the problem was sorted out, the Ministry discharged its responsibility by “arranging for Tigray region’s trade and investment head, Dr. Abraham Tekeste, to come to Addis Ababa, and sign the memorandum of understanding [with the Chinese delegation],” said the ministry.

Tigray region authorities accuse Federal authorities of putting pressure on Tigray due to political differences. And they frame it as an action calculated to jeopardize Tigray region economically.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Ethiopia’s Foreign Ministry responds to Tigray regional state complaints appeared first on Borkena Ethiopian News.

borkena
December 23, 2019

Ethiopia’s ruling coalition EPRDF, which is poised to be a single party under the name Prosperity Party, has shared an update on Monday regarding the rift between Lemma Megersa and Abiy Ahmed.

The brief writing shred on the party’s social media page said: “Lemma Megersa and Abiy Ahmed will continue to lead the change.”

Recalling the differences (which were described as “some”) between the two politicians, the party said that it was over-inflated in different media outlets.

“It was not an individual fight [feud] between them. It was a reflection of exercising free expression of one’s views,” said the statement.

The difference was over the question of how to lead the change in a way to ensure continuity of the change, asserted the statement form EPRDF.

It was public that a mediation effort was going on behind the scenes which is not mentioned in the statement. It only said that the two politicians have debated their differences and have resolved it and that they have agreed to continue to work together.

It is to be remembered that Lemma Megersa appeared in the Oromo Language service of Voice of America to declare publicly that he does not agree with the merger of member parties of the ruling coalition and with the formation of Prosperity Party, among other things.  To read what he said at the time, please check out the link here.

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Lemma Megersa, Abiy Ahmed will continue to lead the change says EPRDF appeared first on Borkena Ethiopian News.

In a little over one year, Eritrea’s president Isaias arrived in Ethiopia for a third time – for an official working visit.

borkena
December 25, 2019

Two days after meeting with United Arab Emirates’ Crown Prince, Sheikh Mohamed bin Zaid Al Nahyan, in Abu Dhabi, Eritrean President Isaias Afeworki has arrived in the Ethiopian capital Addis Ababa for an official working visit on Wednesday in the morning.

Eritrean Foreign Minister, Osman Saleh, and his top political adviser Yemane Gebreab  have accompanied him.

Prime Minister Abiy Ahmed and other high level government officials have received warmly the Eritrean president and his delegation up on arrival at Bole International Airport.

Bilateral relations and other issues in the region are major topics of discussions between the leaders of the two countries, according to information from Eritrean Minister for Information, Yemane Gebreab. On Wednesday, he tweeted : 

“President Isaias Afwerki departed, this morning, to Ethiopia for a working visit on the invitation of PM Dr. Abiy Ahmed.  The two leaders will discuss enhancement of important bilateral & regional matters. Presidential entourage includes FM Osman Saleh & Pre. Adviser Yemane G/ab” 

Ethiopian government owned media, Ethiopian Broadcasting Corporation, reported the two leaders already held discussion. Apparently, it was a closed one and  between the two leaders only. 

President Isaias Afeworki has repeatedly visited Ethiopia in a little over a year after the two decades hostile relations came to an end in July 2018, months after the ruling coalition in Ethiopia elected Abiy Ahmed as prime minister. 

Since then the two countries have been working on strengthening a bilateral relations for mutual benefits in a  range of areas. 

Following peace agreement, hundreds and thousands of families who were separated during the years of hostility have reunited. The two countries have reopened their respective embassies in Asmara and Addis Ababa, telephone line between the two countries were reactivated and  aviation restarted. 

Last year, Eritrean cultural troupe toured Ethiopia with the objective to foster people to people relations. Likewise, Ethiopian cultural troupe traveled to Eritrea this week, and showed concerts in Asmara, Massawa and Keren. 

Abiy Ahmed hailed Eritrean people and the Eritrean president, during his Nobel Lecture at Oslo City Council last month, for the success of the peace agreement between the two countries. 

However, multifaceted agreements that the two countries have been working on are not yet finalized, and much is not known as to why it is so. 

At one point, there was even a talk that the relation between the two countries is already stalled to the point that Eritrea has closed borders again. 

President Isaias’ visit is expected to revitalize the relation between the two countries and for the finalization of agreements in a range of areas. 

Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena

The post Eritrea’s president Isaias in Ethiopia to ‘enhance’ cooperation, relations appeared first on Borkena Ethiopian News.