Little Ethiopia in Washington DC

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Washington (CNN) -- A record shop blares the contagious thump-thump of Ethiopian music. The aroma of strong coffee fills the air. And thick spices tickle your nose virtually every half a block. 

This is 9th and U Street in Washington, D.C. -- the unofficially designated "Little Ethiopia". Africans have a strong entrepreneurial spirit, and it's clear here in the 25 shops and restaurants huddled together in one city block.

"You see within the Ethiopian community when you have someone start a business, that person becomes a role model for others," explains Tsehaye Teferra, President of the Ethiopian Community Development Council. "So you are absolutely sure that you get three, four businesses the next day in the same location."

It's a phenomenon that began in the 1970s in Washington's Adams Morgan neighborhood on 18th Street. But when the area became trendy, rent skyrocketed and the Ethiopians moved to less expensive ground.

Tefera Zewdie, owner of Dukem restaurant, credits himself as being one of the first to start the big move, when he opened a tiny grocery store in 1997 selling Ethiopian CDs, meat and spices. It grew to a sandwich take-out, then a small restaurant, to now a restaurant so popular, lines form out the door nearly every night.

"I remember it was if I'm not mistaken somewhere between 2000, 2001 it was something big for us to see one non-Ethiopian coming to the restaurant. If you turn around right now, we have 95 percent of them are non-Ethiopian," says Zewdie.

It's the food that has drawn Washingtonians and tourists to Little Ethiopia -- the brave ones curious to try the family-style eating where utensils are not even a suggestion. Here, everyone eats with their hands from the same plate.

"You don't find many Ethiopian restaurants elsewhere," says a Dukem customer from Indianapolis, Indiana. "There was one in my hometown briefly and unfortunately it didn't survive so I have to come back to D.C. to have Ethiopian food."

The popularity of the food is evident in how many entrepreneurs have a restaurant as a second business. There's the Tesfaye family, whose brothers together run a successful parking management business in and around D.C., and who opened Etete restaurant as a surprise for their mother.

"Her dream was always owning a restaurant," says Yared Tesfaye. "She loves feeding people, she loves cooking."

The brothers also bought the building next door to the restaurant, where their sister now has a salon.

And then there is Tutu Belay, who started a telephone directory of Ethiopian-owned and Ethiopian-friendly businesses 16 years ago. It's grown from 80 pages to more than 900. She and her husband, Yehunie Belay, a famous Ethiopian singer, also own a restaurant downstairs from their offices called Little Ethiopia, where Yehunie performs.

Restaurants are in nearly every other building, and they're not confined to Ethiopian. There is also an Ethiopian-owned Mexican and an Ethiopian-owned Italian restaurant.

The Ethiopian population in the Washington, D.C. metro area is the largest in the U.S. Tutu Belay, who has done extensive research on the population for her business, estimates it to be about 250,000 -- though other estimates are much lower.

But it is large enough that there is even a second unofficial Little Ethiopia in Alexandria, Virginia -- just over the Potomac River from D.C. 

Proof that in the Ethiopian community, where there is one entrepreneur, dozens more will follow.

Update 1: Ethiopian Airlines becomes the first airline in Africa to operate the world's most technologically advanced and longest-range airplane

EVERETT, Wash., Nov. 17, 2010 /PRNewswire/ -- Boeing (NYSE: BA) delivered its 900th 777 airplane today to Ethiopian Airlines. The airplane is the ultra-long-range Boeing 777-200LR (long range) Worldliner, and is the first of five 777s the airline ordered in 2009. (Updated with the Video of the plane)

"With the delivery of its first 777-200LR, Ethiopian is the first airline in Africa to operate the world's most technologically advanced and longest-range airplane," said Ethiopian Airlines Chief Executive Officer Ato Girma Wake. "This further reaffirms our commitment to be the leader of aviation in Africa."

Based in Addis Ababa, Ethiopia, the carrier is investing in additional airplanes to broaden its network. The carrier will use the 777-200LRs on new, nonstop service from Washington, D.C., to Addis Ababa and new long-haul, nonstop routes like Beijing.

"The 777-200LR is the only airplane that provides the range and efficiency that Ethiopian needs to service its long-haul routes," said Larry Loftis, vice president and general manager, 777 program. "And it's our pleasure to deliver this airplane, our 900th, to a first-time 777 customer."

The 777 program reached the 900-airplane milestone faster than any other twin-aisle airplane in history. The 777's performance and passenger-preferred interior have made it the world's most popular twin-engine long-haul commercial jetliner, with 1,165 orders from 61 customers.

"Today we celebrate a very important historical milestone with our longstanding customer Ethiopian Airlines," said Marlin Dailey, vice president of Sales & Marketing, Boeing Commercial Airplanes. "Ethiopian's order, along with this 900th 777 delivery, confirms both the leadership role and market preference for the 777 – the flagship of the world's premiere airlines."

The 777-200LR carries more passengers and more revenue cargo farther than any other jetliner, and is capable of connecting virtually any two cities in the world nonstop. It also can carry a full cargo load on routes where other airplanes are payload limited – giving airlines the ability to carry the same number of passengers farther and with additional revenue-generating cargo.

Provisions for up to three optional fuel tanks have been added in the aft cargo area of the 777-200LR to be able to fly a range of 9,395 nautical miles (17,395 km) with full passenger payload (301 passengers).

"As one of the premier airlines in Africa and around the world, Ethiopian has long used Boeing airplanes as a tool for achieving our business goals," Wake said. "The strategic long-range feature of the 777-200LR will again help Ethiopian expand our network and is a perfect complement to the 787s that are on order. 

"The Boeing 777 will help us bring our business to the next level," said Wake. "Boeing has been an important and valued partner to Ethiopian for many, many years. This order reinforces the deep ties between our two companies."

Boeing's partnership with Ethiopian Airlines dates back some 60 years. Today, it operates an all-Boeing fleet of 737, 757, and 767 airplanes in passenger service and 757, MD11 and 747 in cargo operations.

Contact:

Adam Morgan

Boeing Commercial Airplanes

+1 281-386-4396

adam.k.morgan@boeing.com

Wogayehu Terefe

Ethiopian Airlines

+251 11(5) 178410

wogayehut@ethiopianairlines.com

SOURCE Boeing

French President Sarkozy to visit Ethiopia in January, 2011

Tuesday, 16 November 2010

Addis Ababa, November 16 (WIC) – Ambassador of France to Ethiopia and Permanent Representative to the Africa Union, Jean-Christophe Belliard, disclosed that French president Nicolas Sarkozy will visit Ethiopia in January, 2011.

In an exclusive interview he held with WIC, Ambassador Belliard said that Sarkozy is the first French president to visit Ethiopian since the past 40 years and it is his first trip to Ethiopia since taking office in May, 2007.

Ambassador Belliard said that president Sarkozy appreciates Prime Minister Meles Zenawi’s efforts to make Africa's voice be heard more in G-8 and G-20 summits.

The Ambassador said that the Ethiopian government’s policy and strategy is the right way to develop the country and achieve the five-year Growth and Transformation Plan (GTP).

According to Ambassador Belliard, his country strongly support and respect Ethiopia’s independent policy and strategy.

He finally said that France is committed to help the Ethiopian government and people through bringing various French companies to invest in Ethiopia.

Ethiopia's underground churches a wonder

Mercedes Sayagues, AAP

November 17, 2010, 10:30 am

Ten centuries ago, King Lalibela had a vision: that his capital, Roha, in what is now northern Ethiopia, would equal Jerusalem in spiritual and architectural glory.

And thus 11 fantastic churches were hewn in the reddish-pink volcanic scoria rock, each unique in style. Luckily Lalibela lived to be 96 years old so he saw his legacy completed. When he died in 1221, he was buried in Beta Mikael church, and Roha became known as Lalibela.

And it still stands today, a landmark of sacred architecture, a World Heritage Site, and one of the wonders of Africa. Legend says that angels helped the creation at night and St George supervised and his horse left hoofprints on the passage leading to his church - Beta Gyorgis, the last to be built, and arguably the loveliest, cross-shaped, with elaborate windows. When the sun sets over the hills, it glimmers in pink, gold and moss green.

No wonder people thought celestial help was needed. These awesome buildings were carved with hammer and chisel, each out of a single scoria block, by an estimated 40,000 workers.

The monolithic Beta Immanuel is a masterpiece in Axumite kingdom style. In the 1520s, the Portuguese priest Francisco Alvares wrote that he was "weary of writing more about these buildings because it seems to me I shall not be believed".

Lalibela packs the kind of aesthetic and mystical power of Macchu Picchu and Angkor Wat, with the advantage of not being mobbed by tourists, at least not yet. Grouped in two clusters, the churches have roofs at ground level and plunge down 40 feet (12.19 metres). The seven churches are organically embedded in the rock and four are self-standing, with well-defined geometrical volumes. Among these is the world's largest monolithic rock-hewn building, Medhane Alem, with 72 pillars and five naves.

The complex rambles underground, a labyrinth of narrow passages, causeways, steps and tunnels. This translates into a constant play of up and down, light and shadow, wide and narrow, dry, dusty sun and dark, incense-scented coolness. The tunnel connecting Beta Gabriel and Beta Mercurios, although short - a three-minute walk - is so dark and narrow it can be scary.

There are many holes and cavities in the walls that are used for meditation, praying and fasting, and pilgrims sleep in them during festivals. Some caverns are blackened from baking holy bread. Many people have been entombed here and bones and skulls protrude from the rock, giving a sense of continuity, history and peace with death.

Each church has a resident priest, a highly regarded position. The priest at the tiny church-cave of Beta Danaghel has taken care of it for 18 years.

"I am in peace, there is nothing I want," he says.

Not even the obtrusive, protective roofs built by UNESCO over some churches detract from the spiritual experience, although they do spoil photographs.

Most wonderful is that the complex is alive and used. At 6am people are praying, reading sacred texts, genuflecting energetically, chatting with the priest, sitting or kneeling on worn red carpets and straw mats, which create an aroma of dry grass mingling with rock mustiness and incense.

Ancient wall paintings and wood carvings coexist with gaudy and theatrical curtains, piles of cushions, rugs and mattresses for pilgrims, centuries-old leather book-holders, drums, dreary fluorescent tubes, plastic jerrycans and things stitched, patched and held together by string: Lalibela has been used and mended over 10 centuries.

"Lalibela makes us Ethiopians proud of our history," says Yeneneh Abebe, manager of SunBird Tours. "It is the top tourist experience of my clients."

Religion and ritual are strong in Ethiopia and nowhere more than in Lalibela, mystical by heritage. Of its 10,000 residents, about 1,000 are priests and deacons.

Pilgrims converge here for Ethiopian Orthodox Church festivals and processions. Priests in colourful robes and brocade umbrellas carry centuries-old silver crosses, followed by thousands of believers in diaphanous white cotton shawls chanting, drumming and dancing.

Although King Lalibela spent his youth and final days in a monastery, he also had worldly concerns: beautifying Roha garnered the support of the Church and shifted political power from Axum, the capital of a powerful kingdom that flourished since the 4th century BC thanks to trade of ivory, gold, frankincense, grain and skins between Egypt, Sudan, the Red Sea, Arabia and India.

By the 10th century AD, Axum was overthrown by the Roha-based Zagwe Dynasty (1137-1270). Lalibela was the third of seven Zagwe kings.

The town nestles among the Lasta mountains, a rugged plateau at nearly 1,000 feet (305 metres) of altitude. The road to the airport, served by Ethiopian Airlines, meanders along 18 miles (29 km) of stony hills and gorges, with shepherds herding small donkeys and long-horned cattle on the road.

Lalibela town is small, quiet and friendly, with only a handful of cars. Due to the altitude, the light is incisive, and the night sky, star-studded. It is another world, infused with the timeless quality of its impressive spiritual architecture.

Ethiopia's Economic Outlook in 10 Minutes

Minute 10. The Ethiopian Economy—a historic shift is in the works. Without much notice, agriculture recently ceased to be the largest sector in the economy for the first time in Ethiopia’s history. This heralds a major structural transformation of the economy and we forecast that the services sector—which covers real estate, hotels, transportation, communication, banking, health and education—will make up more than half of Ethiopia’s GDP in just two years time, a development with many implications and opportunities for Ethiopian business.

Minute 9. Economic policies are set to be relaxed. Somewhat equally unnoticed, policy changes

have accelerated recently in a number of economic spheres, and we forecast this trend to gain

further momentum in the next year or two. The positive trends seen of late include a pick-up

of privatization, an openness to introduce modern commodity and capital markets, a passive

acceptance of private share issuance, reforms (albeit marginal) in the telecom sector, a renewed

policy drive to revitalize the industrial sector and, perhaps most meaningful, a rebalancing of the

policy focus within agriculture from peasant-based to commercial farms. There remain of course

many areas where policy reform is still—in our view—far too gradual and far too controlled.

8. At long last, commercial agriculture will truly be taking off. Agriculture as a whole

will continue to show a diminishing role in the economy, but what is currently just a tiny subset of this sector, namely commercial agriculture, is on the verge of a major growth spurt. We project a five-fold increase in land devoted to commercial agricultural farms will occur in the next few years.

Minute 7. Special incentives to businesses will no longer target only exporters. The previous

policy fixation on providing incentives mainly for exporters will, quite appropriately, now switch

to giving similar support to import-substituting industries. This will help multiple sectors, most

notably those in steel and metal processing, cement, glass, chemicals, several fast-moving

consumer goods, and pharmaceuticals.

Minute 6. Though inflation has fallen sharply, near-term monetary policy will remain

unnecessarily tight. Inflation has ceased to be a serious macroeconomic policy issue for

quite some time. While this is welcome, the central bank’s view towards inflation appears to

have taken a sharp turn from a period benign neglect (2007/08) to what now appears to be an

unusually strong anti-inflationary stance. The costs to the private sector of the latter approach

have been unduly high in our view, as businesses were starved of much-needed credit when the

source of Ethiopia’s inflation problem was more closely linked—as we see it—to excessive public sector activity. Some relief is likely, however, in the second half of the 2010.

300 seconds remaining  . We expect private banks to be relieved from credit caps by July 2010, a welcome end to what has been a very blunt means of inflation control. The banking industry,

long accustomed to open-ended credit growth, recently entered an era of tight, bank-by-bank

credit ceilings. However, with the increasing recognition that the current monetary stance is

unduly tight and the need to develop a much more market-based monetary policy framework,

we believe that bank-by-bank credit ceilings will be removed in the second half of 2010. The

recent credit caps are unlikely to hurt the profitability of banks by much this year; in any case, the expected relaxation of the caps should bring a return of the historically high returns on equity to which banks have become accustomed.

Minute 4. Contrary to official projections, we forecast that Ethiopia’s economic growth will

be the slowest in six years. This projection is due mainly to what now increasingly appears

to have been a poor kiremt harvest: agricultural growth is likely to be close to zero in our view.

We reiterate our view—highlighted in last year’s Macroeconomic Handbook—that Ethiopia’s

medium-term growth can comfortably stay in the 6-8 percent range given several positive trend

breaks seen in recent years.

3. A correct exchange rate policy is finally here to stay—businesses should thus expect

the Birr to reach 14 Birr/USD (but not much more) as early as July 2010 and move close to 15 Birr/USD by mid-2011. We think the current exchange rate level is finally close to what it should be, and also believe this is a policy stance that is here to stay. For the coming year, businessesshould expect gradual monthly depreciations—averaging 4 cents per month according to our forecasts—plus a step devaluation of about five percent, which is roughly the gap being

recorded between inflation in Ethiopia and its trading partners.

120 Seconds . Foreign borrowing is ballooning and will increasingly come from private, not

governmental, sources. Loans from sources such as commercial banks and suppliers credits

surpassed loans from governmental sources for the first time last year and we see this as a

trend that is likely to continue. The government and parastatals remain the near-exclusive

beneficiaries of external loans, but we expect this to change gradually, opening up opportunities

for local businesses and banks as well as for foreign providers of external finance.

60 Seconds. A Shift from West to East—the “MICs” will soon become Ethiopia’s biggest

economic partners. While much of the world is fixated with the rising economic power of

the BRICs (Brazil, Russia, India, and China), Ethiopia’s business and economic fortunes are

increasingly being tied with the “MICs” (Middle East, India, and China). According to our

projections, export, import, and foreign direct investment flows between Ethiopia and the “MICs”will in all three cases exceed the comparable figures with the West within just three years.

You are done!!!

Source:Access Capital-March 30, 2010.

Download the complete report

Imperial Hotel to be sold to Access Capital

Access Capital Services is to acquire the property of Imperial Hotel, following a deal owners of the brand made last week with managers of Access, reliable sources disclosed to Fortune.

Managers of Access Capital have been negotiating to acquire the property in order to change Imperial to a resort hotel, with an additional investment of four million dollars, these sources disclosed.  Access Capital plans to reduce the 63 rooms down to 45, in order to meet the requirements of a resort hotel, these sources disclosed.

A team of experts from Lebanon were at the hotel a few months ago, conducting valuations, inspections and assessments, eye witnesses told Fortune.

It was following this inspection that Tsegaye Asfaw, general manager of the hotel, and Ermyas Amelga, general manager of Access Capital, signed a Memorandum of Understanding (MoU)in September 2010; they were scheduled to sign the final deal last week but it was postponed due to Ermyas’s departure to the United States (US).

However, both parties have agreed for the hotel to cease its operations on December 1, 2010, and transfer the property to the buyers on December 31, Tsegaye confirmed to Fortune.

more 

Who will acquire Meta Abo Brewery?

The Privatisation and Public Enterprise Supervision Agency (PPESA) has given five major international breweries three weeks to submit their financial and business proposals for the joint venture (JV) acquisition of Meta Abo Brewery.

Heineken, BGI, Diegeo, SABMiller, and Uni Brou in a JV with Habesha Brewery (HB) were shortlisted by the PPESA on Monday, November 7, 2010, after they had responded to the call for expression of interest (EoI) it had issued. They were given until December 6 to submit their proposals.

Meta Abo, one of the three state owned breweries, has the second largest share of the Ethiopian beer market at 16pc, research conducted by Access Capital in May 2010 showed. Established in 1967 by the government and private individuals with a capital of two million Br, the brewery has a production capacity of 600,000 hectolitres (hl) which comes to 60 million litres, according to the research data.

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University of Pennsylvania Graduate Student blogs from the Ethiopian Simien Mountains

Blog by Noah SNYDER-MACKLER (NY Times)

My Ethiopian office is one of the few places in the world — all in Ethiopia — where one can find the gelada, the lammergeyer, the walia ibex and the Ethiopian wolf. Each of these species is listed as either threatened or endangered.

I have been fortunate — or rather lucky — enough to see one wolf, some lammergeyers, a few dozen walia ibex and hundreds of gelada. Naturally, my colleagues and I aren’t satisfied with seeing just one species every day. We need variety. We need hobbies. So we spend some of our free time looking for other animals. Looking for and photographing animals during the day captures only half of the wildlife in the habitat. We have seen some of the nocturnal Simien animals (when you gotta go, you gotta go, even in the middle of the night), but we are sure that we missed the majority of the nocturnal animals. More on NY Times

According to a leaked document, the new Ethiopian railroad network will connect about 49 urban centers

The new Ethiopian railroad network will connect about 49 urban centers, according to a leaked document. To date, the government is unwilling to disclose the details of the pan, except for highly generalized statements. Various media outlets, local and international, have reported the government’s unwillingness to disclose.

The document,  which has been issued sometime in September or October and circulated among high ranking government officials, stresses the strategic importance of the railroad network plan for the success of the 5-years Growth and Transformation Plan(GTP). It urges, in the strongest terms, ‘all concerned’ to give unconditional cooperation to the success of the plan. Presumably, this is intended to preclude bureaucratic red tapes, which often result in higher program costs and the discouragement of contractors.

The new railroad network is planned to have at least 8 main routes that extends to all compass points. The   rail line will link no less than 49 urban centers, where railway stations are to be established. The proposed rail line crosses the borders of all regions, except Gambella. The network connects, among others, the Chartered Cities Addis Ababa & Dire Dawa, 7 of the 9 State capitals, and towns bordering Sudan, Kenya and Djibouti.

To this end, the government plans to construct 4,780 Km railroad network.(See the map) The newly established Ethiopian Railway Corporation is responsible for the supervision of the construction.The new railway system is said to enhance the freight transport capacity of the nation by ‘at least five million tones, probably more’. The construction of the railroads is estimated to cost 40-50 Billion Birr spread on 7 years, while creating ‘job opportunity for several hundred thousands of people.’

‘Though the construction of the new railroad system is to be conducted in two phases’, the leaked document notes, ‘it is basically one program which is pivotal to the renaissance of the nation.’ Thus, it urges all concerned to embark on the preparatory works needed for all phases of the construction ‘without any delay.’ The document urges ‘all concerned’ to ensure the success of the plan in a manner that engages and benefits youth and women, and complements the transformation of Cooperatives.’

The reasons why the details are kept quasi-secret are not known. One of the reasons is to avoid undue expectations among the towns indicated in the current railroad design, according to my sources. Since some modifications to the rail routes may be made based on the recommendations of the consultants responsible for drawing the final design. However, this is unlikely to be the sole reason, since the current design is based on a fairly long study and major alterations of the route are highly unlikely, according to professionals in the rail industry.

So far, the nation has a railroad that links Addis Ababa, via Dire Dawa, to the port of Djibouti. The 781 Km long rail tracks were built by French in the early 1900s. About one third of the track is being re-laid with heavier weight rails; that is, changing the original 20kg per meter rails with 40kg per meter rails. A Belgian(?) company is responsible for the maintenance project, which the European Union funds.

Below are the towns that the proposed rail line connects.

TO WESTERN
Endpoint – Kurmuk, Sudan border
Addis Ababa – Sebeta – Ambo – Ijaji – Nekemet – Nejo – Asosa – Kurmuk, Sudan border

TO SOUTH-WESTERN
Endpoint – Bedele
Addis Ababa – Sebeta – Ambo – Ijaji – Seqa – Bedele
Endpoint – Dima
Addis Ababa – Sebeta – Ambo – Ijaji – Seqa – Jimma – Tepi – Dima

TO SOUTHERN
Endpoint – Hawassa
Addis Ababa – Sebeta – Mojo -  Zeway – Shashemene – Hawassa
Endpoint – Weyto
Addis Ababa – Sebeta – Mojo -  Zeway – Shashemene – Sodo – Arbaminch – Konso – Weyto
Endpoint – Moyale, Kenya border
Addis Ababa – Sebeta – Mojo -  Zeway – Shashemene – Sodo – Arbaminch – Konso – Yabelo – Mega -  Moyale, Kenya border
Endpoint – Asela
Addis Ababa – Sebeta – Mojo – Adama – Iteya – Asela
Endpoint – Ginir
Addis Ababa – Sebeta – Mojo – Adama – Iteya – Indeto – Gasera- Ginir

TO NORTHERN
Endpoint – Finoteselam
Addis Ababa – Sebeta – Mojo – Adama – Awash – Combolcha – Dessie – Weldya – Wereta – Bahirdar -  Finoteselam
Endpoint – Shire
Addis Ababa – Sebeta – Mojo – Adama – Awash – Combolcha – Dessie – Woldya – Mekele – Aksum – Shire

TO NORTH-WESTERN
Endpoint – Metema,  Sudan border
Addis Ababa – Sebeta – Mojo – Adama – Awash – Combolcha – Dessie – Weldya – Wereta – Azezo – Gendaweha – Metema, Sudan border

TO NORTH-EASTERN
Endpoint – Galafi, Djibouti border
Addis Ababa – Sebeta – Mojo – Adama – Awash – Combolcha – Dessie – Woldeya – Semera – Ditchto – Galafi, Djibouti border

TO EASTERN
Endpoint – Dewele, Djibouti border
Addis Ababa – Sebeta – Mojo – Adama – Awash – Dire Dawa – Mieso – Dewele, Djibouti border

Stay tuned for more updates on this matter in the coming weeks.
Source: Several blogs are reporting about this news.

Nigeria, Ethiopia and Ghana among top African countries for fund managers

By Kaleyesus Bekele

What is a mutual Fund and what do Fund Managers do? 

Emerging market fund managers who had gathered last Friday at the New York Stock Exchange (NYSE) for Africa Investors' Annual Business Summit selected Nigeria as their top African investment destination. They also mentioned Ethiopia, Ghana and Kenya as some of the other emerging African economies they would consider for investments.

The summit held annually on the trading floor of the NYSE attracted a large number of global institutional investors, stock market executives and regulators from the US, Africa, Europe and Asia. It was opened with a keynote address from former secretary of the US Treasury Robert Rubin who was also the former chairman of Citibank, one of the world’s largest financial institutions.

Rubin remarked that the US should be more focused on Africa not only as the source of natural resources but also for the full range of opportunities that exist and America’s investment in Africa should be as great if not greater than that of China.

One of the main panel discussions was on Private Equity and Bond Market in Africa, which was chaired by Zemedeneh Negatu, the managing partner and head of Transaction Advisory for Ernst & Young Eastern Africa. His speech highlighted the significant investment opportunities throughout Africa in various sectors, including infrastructure, natural resources and agro industry. He encouraged US investors to take note of the billions of dollars of investments being made in Africa by the newly-emerging economic powerhouses such as China, India and the oil-rich Middle East countries. 

The summit also had panel discussions for the CEOs of some of Africa’s most important and active stock exchanges who discussed regulation and investing in African capital markets. 

Another highlight of the summit was discussions about investing in the Millennium Development Goals (MDGs), including various ways to create sustainable development through business initiatives. CEOs from Africa’s banking community also held a panel discussion emphasizing that opportunities exist in Africa’s under-banked markets.

At the conclusion of the summit an awards ceremony was held on the trading floor of the New York Stock Exchange, which featured a video message from former UK Prime Minister Tony Blair, who emphasized the need for increased development partnerships across the continent. Award winners included some of Africa’s leading stock markets, regulators, listed companies, fund managers, stockbrokers and analysts.
Source

Ethiopia’s government is aiming to license 50 mineral-exploration projects every year

Ethiopia and Eritrea Geological map 

Ethiopia’s government is aiming to license 50 mineral-exploration projects every year and more than double exports from the industry to $1 billion in five years, said an official at the Mines Ministry.

Investment in the mining industry has surged from less than $100 million in 2003 to an accumulated $1.3 billion, said Gebre Egziabher Mekonen, head of the mineral operations department at the ministry.

“The sector has seen a dramatic change,” he said in an interview in the capital, Addis Ababa, yesterday. “Seven years ago, the West didn’t know about our mineral resources.”

The Horn of Africa nation, which has deposits of gold, silver, copper, platinum, potash and tantalum, exported $281 million of gold in the fiscal year to July 7, according to Gebre. Ethiopian-born Saudi billionaire Sheikh Mohammed al- Amoudi’s Midroc Gold Mine and Perth, Australia-based Nyota Minerals Ltd. both plan large-scale operations in the country, he said.

There are currently 80 international and local firms operating 160 projects, Gebre said.

The industry is “totally open” to foreign investors, Gebre said. “There is no restriction to any investment.”

Mining exports earn Ethiopia about $400 million annually, Gebre said, making it the second-largest foreign-exchange earner after agricultural produce. It is hoped this figure will rise to about $1 billion after five years, Gebre said.

To contact the reporter on this story: William Davison in Addis Ababa via Johannesburg at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

Indian Billionaire sells more than half a billion roses a year in a leased land larger than the state of Rhode Island in Ethiopia

Sai Ramakrishna Karuturi

By Mehul Srivastava and Subramaniam Sharma

SPECIAL REPORT

Indian billionaire Ravi Ruia has flown to Africa at least once a month for the past year and a half. He's invested in coal mines in Mozambique, an oil refinery in Kenya, and a call center in South Africa. Soon, he may also have a power plant in Nigeria. "Africa looks remarkably similar to what India was 15 years ago," says Firdhose Coovadia, director of African operations at Essar Group, the $15 billion conglomerate headed by Ruia and his brother, Shashi. "We can't lose this opportunity."

Faced with increasing competition and a welter of bureaucratic obstacles at home, Indian companies are looking to Africa for growth. Since 2005 they have spent some $16 billion on the continent, vs. at least $31 billion for the Chinese, according to data compiled by Bloomberg and the Heritage Foundation, respectively. Bharti Airtel, India's largest mobile-phone provider, in June paid $9 billion for the African cellular operations of Kuwait's Zain. In 2008, India's Videocon Industries paid $330 million for two coal mines in Mozambique, and India's state-run fertilizer maker bought an idled Senegalase phosphorus producer for $721 million.

Beyond those big deals are dozens of smaller acquisitions and investments by Indian companies. "Compared to India, valuations [in Africa] are quite attractive," says Anuj Chande, who heads the South Asia Group at accounting firm Grant Thornton in London. "We're expecting to see a lot of midsize deals across a variety of sectors."

The Indians view Africa as a place where they can replicate the low-cost, high-efficiency business model they have honed at home. Like India, Africa has hundreds of millions of underserved consumers eager to buy products tailored to their needs. Consumer spending in Africa may double, to as much as $1.8 trillion, by 2020, McKinsey & Co. predicts, an increase that would be the equivalent of adding a consumer market the size of Brazil. As a pioneer in sales of single-use sachets of soap and shampoo (along with Unilever (UL) and Procter & Gamble) for lower-income Indians, Mumbai-based Godrej Consumer Products understands "low-cost, value-for-money products," Chairman Adi Godrej said in a May interview. In June his company acquired Nigerian cosmetics maker Tura, and in 2008 it bought South African hair-care company Kinky. "We want growth. Whether it's from inside or outside India, we are agnostic," Godrej said.

Indian companies also see Africa as a hedge against a possible slowdown at home. "If tomorrow the Indian economy was to take a U-turn, then at least you have other markets which are growing," says Neeraj Kanwar, managing director of Apollo Tyres, India's No.    2 tiremaker. His company bought South Africa's Dunlop Tyres for $62 million in 2006, giving Apollo two manufacturing plants on the continent and brand rights in 32 African countries. Apollo aims to triple sales, to $6 billion, by 2015, with 60 percent of revenue from abroad, vs. 38 percent today. "Africa is going to give me growth," says Kanwar.

Essar has endured endless squabbles with Indian landowners who refuse to make way for steel mills. Like other Indian companies tired of regulatory headaches at home, it moved into Africa and now has 2,000 employees there. Bangalore-based Karuturi Global, the world's largest rose producer, couldn't get enough land in India to compete with European and African rivals. Many times flowers wilted on the tarmac as cargo flights were delayed or canceled, including a big Valentine's Day shipment. So in 2004, Karuturi bought a small plot in Ethiopia, and sales have since grown elevenfold, to $113 million in the year ended Mar. 31. Karuturi now leases 1,200 square miles of land—larger than the state of Rhode Island—in Ethiopia and sells more than half a billion roses a year. "Africa offered us a scale we could never reach in India," says Managing Director Sai Ramakrishna Karuturi. "I'd love to do more in India, but getting even 1,000 acres near Bangalore took years."

The bottom line: Indian companies, faced with increasing competition and bureaucratic obstacles at home, are looking to Africa for growth.

Srivastava reports for BusinessWeek from New Delhi. Sharma is a reporter for Bloomberg News.

Ethiopians Investors are seizing untapped opportunities in Juba (Southern Sudan)

• Getahun has more than USD 350,000 worth of an investment in Juba and he makes around USD 20,000 per month.  

By Zekarias Sintayehu(The Ethiopian Reporter)

The signing of the Comprehensive Peace Agreement (CPA) between the north and south in 2005 is one of the factors that paved the way for business opportunities in South Sudan.

After nearly half a century of on-and-off civil war between the two sides, the southerners are expected to vote next year on whether their semi-autonomous region should become a fully independent nation or not. Time is flying and the birth of a new state, the state of South Sudan, is nearer than ever.

Since the signing of the CPA, the government of Southern Sudan has been encouraging everyone to invest in South Sudan and exploit the opportunities it has in stored there. The main focus has been and still remains to be the commercial and business sector. As a result, a number of multinational, regional and local companies have encamped across South Sudan, contributing to the reconstruction of the region and provision of employment opportunities.

South Sudan is just five months away from a self-determination referendum that will most likely seal the separation from the North. Ethiopia is one of the neighboring countries that are strategic to the South Sudan. Ethiopia shares a border area of 1200 km with the about to be new state. Ethiopia’s Gambella region shares its borders with the Eastern Equatoria, Jonglei and Upper Nile states of South Sudan. As a result, the economic relationship there has been expanding considerably over the years.

After the referendum, Juba will assume the role of capital city. There are around 2000 Ethiopians living in South Sudan. Though most of them are employees and daily laborers, some own businesses too. Getahun Shibru, owner of the first Ethiopian restaurant in Juba, migrated to Kenya in 2006 in search of a better life. Before he left the country, he was working in SOS Ethiopia, a local orphanage earning 2,500 birr.

Life in Kenya was tough for him. After he spent four months in Nairobi, he planned to move to Uganda. But before he cross the Kenyan border he spent three weeks with a Kenyan businesswoman in the border town of Malwal where he learnt the big employment opportunity in South Sudan. However, he proceeded to Kampala again to come across some Sudanese people and obtain a profound knowledge about the country. Finally, he decided to travel to South Sudan and tried his luck in Juba. He found out that he can make a good profit from egg, salt, bottled water, milk and onions. Then Getahun decided to buy the listed goods from Kampala and made his way to South Sudan. 

“I don’t know anyone in South Sudan but I started my journey anyway, putting my trust in God,” says Getahun. Passing through the border was very difficult, especially if you don’t have a passport, he added. He reached Yeyi, a border town of South Sudan, at midnight.

He said, “I had no idea where to go at that time.” But he started following the other folks since he realized they were looking for a place to stay. “I was starving to death since I had nothing to eat.” Finally, I found a place to pass the night, he added. “I slept on the ground inside a tent and amazingly it cost me around USD 8,” Getahun said. The next morning, Getahun faced another challenge; the bus which carried his merchandize didn’t show up. On the fifth day he was able to find the bus and went on to Juba.

In Juba he stayed in an Eritrean home for a while as there was nobody he knew. In the meantime, he sold all the goods that he brought from Kampala and made a good profit.

Later he returned to Yeyi and started to work with the Habesha restaurant owner. Then he managed to get land in Juba to open a restaurant. “Kush” was the first Ethiopian restaurant in Juba established in 2007.

Then he moved to Kampala bringing one employee from there to run the restaurant. “I perform most of the activities at the restaurant including serving the customers by myself. I borrowed some properties from Eritreans to augment the restaurant’s capacity," Getahun said. Kush started to grow faster than expected and became a famous restaurant.

Getahun told The Reporter that he managed to partner with a Sudanese businessman and opened a motel called “Tourist Motel,” which had 17 bedrooms. Currently, Getahun is building another lodge which has 15 bedrooms, each priced at USD 40 per night.

If the referendum resulted in separation, there will be a big business opportunity in South Sudan, according to Getahun. This is because there will be an infrastructural improvement when the country gets its independence, he explained. Many investors will start pouring into the country, which will create a business opportunity. 

Getahun said that unlike other neighboring countries, Ethiopia is not exploiting the business opportunity in South Sudan. According to him, the absence of roads connecting Ethiopia to South Sudan is the main reason for that. Eventually, the road could connect South Sudan through Djibouti to the Red Sea which results in creating huge business opportunity to Ethiopia. The roads are vital since they bring foreign currency to Ethiopia. He said that the business potential in South Sudan is untapped.

At the moment, Getahun has 30 employees under him, most of them Ethiopians. Besides, he is planning to open a clinic in Juba. He also has a plan to invest in the agricultural sector in Ethiopia. He has more than USD 350,000 worth of an investment in Juba and he makes around USD 20,000 per month. 

Yosef Gashaw, owner of Yagot PLC, established there three years ago, started business in South Sudan by importing cigarettes and other articles from Ethiopia. His company was an agent for the National Tobacco Enterprise (Ethiopia). In addition, he is also an agent for Anbessa Shoe Factory and imports military shoes from Ethiopia for South Sudan soldiers. more on Ethiopian Reporter

Africa's mobile subscription number crosses the 500 million mark.

• Ethiopia's mobile subscription numbers to increase by more than 100% by 2015                                                                                       Cape Town, South Africa (AfricaCom) – November 10, 2010 - The number of active mobile subscriptions in Africa crossed the half-a-billion mark in 3Q10, to reach 506 million at end-September, according to research by Informa Telecoms & Media.

At end-3Q10, Africa accounted for 10% of the world's mobile subscriptions and was one of the world's fastest-growing regions – with the subscription numbers increasing 18% over the year to September – as a result of the still low mobile penetration rate on the continent as well as demand for new services, such as mobile Internet access, that increase the need for telecoms connectivity.

“Although the rate of growth in mobile subscriptions in Africa will slow as markets mature, the continent continues to offer great opportunities for investors in the voice segment in under-penetrated markets and also in the non-voice segments with mobile broadband and mobile-money services taking off,” says Thecla Mbongue, Johannesburg-based senior analyst at Informa Telecoms & Media.

“By 2015, there will be 265 million mobile broadband subscriptions in Africa, a huge increase from the current figure of about 12 million, and accounting for 31.5% of the total of 842 million mobile subscriptions that the continent will have in five years' time, according to forecasts by Informa Telecoms & Media. There will be almost 360 million users of mobile-money services on the continent by 2014.”

The mobile revolution that has swept through Africa has made mobile telephony widely available but there are still substantial under-served markets – in rural areas the rate of mobile penetration is typically below 10%, for example.

The landing of a series of new submarine cables on both the East and West coasts of Africa over the past 18 months has given the continent a good level of international connectivity for the first time, and has greatly expanded the opportunities for data services.

However, terrestrial backhaul threatens to become the next bottle-neck, and must be extended if the benefits of the new connectivity are to be made widely available and in particular reach rural communities and countries in the interior of the continent.

The rate of household broadband penetration in Africa was just 2.5% in 1Q10, so African broadband has a long way to go if it is to emulate the mobile revolution that has already swept through much of the continent.

The past year has seen a big change in the line-up of key players in the African mobile market, with the sale of Zain Africa – one of the biggest pan-African players with 15 operations on the continent – to Bharti Airtel of India. Airtel, which is poised for the formal launch of its services in Africa, is expected to introduce elements of its Indian operating model, including its extensive use of outsourcing as a means of maximising efficiency. Airtel has also set out major network-expansion plans in Africa.

Nigeria, Africa's most populous country, is also its largest mobile market, accounting for 16% of the continent's mobile subscriptions. Egypt and South Africa are the second and third largest mobile markets on the continent. Nigeria, Egypt, Morocco, Tanzania and Zimbabwe together accounted for 48% of the 54 million net additions to Africa's mobile subscription market over the nine months to September.

Over the coming five years, the strongest growth rates in mobile subscriptions are expected to be recorded mainly in East and Central African markets, with Ethiopia, DR Congo, Eritrea and Madagascar forecast to see mobile subscription numbers increase by more than 100% by 2015. Africa's first mobile network was launched in Tunisia in 1985, so 2010 marks the twenty-fifth anniversary of mobile telephony on the continent.

Notes to Editor:
Informa data on mobile subscriptions is based on the number of active SIM cards. The data for 3Q10 includes some estimates. Mobile broadband subscriptions are those using HSPA, 1xEV-DO and LTE technologies.

Chinese firm to build the biggest cement plant in Ethiopia

Mining deal China-Ethiopia - The Ethiopian Mines Ministry has signed an agreement with a private Chinese mining firm, C.H. Clinker, which plans to produce 10,000 tonnes of cement daily, state media reported Wednesday. The Ethiopian Mines Minister Sinknesh Ejigu, and C.H Clinker's Managing Direct or Liu Yan Ling, signed the agreement, offering exclusive rights to the firm to exploit some 12.3 million tonnes of limestone for 20 years.

'The licensee has an exclusive right for large-scale mining of limestone within the license area,' the state-run Ethiopian News Agency (ENA) reported.

The Chinese firm has already invested some 500 million birr (US$ 31 million) for its initial mining operations, which would help the rapid economic expansion in the East African nation, currently witnessing a building construction boom.

The Chinese firm has already finalized the construction of its plant, located in north Shoa, in the greater Oromia regional state, some 175 kms outside the capital, Addis Ababa.

Ejigu said the firm would employ 300 people once it reaches its full production capacity.

The Chinese firm plans to produce clinker for both the Ethiopian market and export.

French cement firm, the Lafarge group, is also reportedly building plant in the north Shoa region, to exploit what is believed to be a large deposit of limestone.

Ejigu said Ethiopia had licensed some 85 firms to explore and exploit minerals.

The minister said the government policy of luring foreign mining firms was paying off, mainly because of the government's sound mining and investment policies.

The Chinese firm, which is registered locally, hopes to invest 6 billion Birr (US$ 375 million) in its entire mining operation.

Addis Ababa - Pana 11/11/2010

Source: Afriquejet.com