RETHINKING ETHIOPIA With the world’s help, one of Africa’s rising stars is changing perceptions, making progress, and fulfilling its potential, despite tough challenges

ETHIOPIA IN FIGURES 9 UNESCO World Heritage Sites, more than any other African nation n times of economic uncertainty, “By 2025, Ethiopia will be Home to around 100 million, 13 months in every year, Inations tend to focus on a middle-income economy Ethiopia has slashed poverty levels according to Ethiopia’s Julian domestic concerns and lose sight of with zero net growth in from 39% in 2004 to be on target for calendar issues of global importance. This carbon emissions” 22.2% by the end of last year. It has 80 ethnic groups that make March, Ethiopia’s Prime Minister, Hailemariam Desalegn, Prime Minister also made major strides towards its up the nation’s population Hailemariam Desalegn, called on Millennium Development Goals, 85 percentage of water the world not to forget his country one of the world’s fastest growing reducing child mortality, rolling out supplied to the Nile River as it faces its worst drought in 50 economies over the past decade primary education, doubling access 200 dialects spoken years, which has put more than 10 and secured significant human to drinking water in just five years, throughout the country million people at risk of famine development gains. According to the and extending its Productive Safety 597 estimated GDP per and could erode the remarkable World Bank, it boasts ‘strong, broad- Net Program to cover eight million capita, in US$, in 2015 (IMF) achievements Ethiopia has made based growth’, expanding by a mean vulnerable citizens. 2,400 elevation of Addis in the last quarter of a century. annual 10.8% from 2004-2014, more Today, Africa’s oldest independent Ababa, in metres above sea level Compared to many of its African than twice the regional average. nation and second most populous 1,104,300 size of Ethiopia’s peers, Ethiopia is a beacon of political Agriculture accounts for the lion’s state needs the support of overseas territory, in square kilometres stability, economic growth, and social share of Ethiopia’s GDP and exports, institutions and investors, not just 3,200,000 approximate age advancement. In 2014, the United and employs three in four locals. in terms of capital but also know- of the oldest human fossil, Nations Industrial Development Now, in line with the government’s how and technology, to ensure it found in Ethiopia Organization (UNIDO) chose it as second Growth and Transformation can consolidate those successes and $1.4 billion the amount one of two nations on the continent, Plan (GTP2), the sector will provide continue to realise its goal to become the UN says Ethiopia will and just three worldwide, for its pilot the means for Ethiopia to transition a Climate-Resistent Green Economy need in aid in 2016 Programme for Country Partnership, to a new, value-added economic tomorrow. in recognition of its commitment to model, based on building its agro- Ethiopia wants to reach middle- to the international community inclusive and sustainable growth. industrial and manufacturing income status by 2025 and will as a reliable partner for trade and Under the leadership of Meles sectors at home to maximise export be in attendance at the World investment, with the potential Zenawi and, since 2012, Prime earnings and boost investment from Economic Forum on Africa 2016 in to achieve greater progress and Minister Desalegn, Ethiopia has been beyond its borders. Rwanda this week to make its case development in the future.

PROJECT DIRECTION / EDITORIAL CONTENT: NATHALIE MARTIN-BEA · PHOTOGRAPHY: OSCAR SEGURA Dr Arkebe Okubay, Special Advisor to the Prime Minister

Under the Growth Transformation Plan (GTP) the development of Investment Commission will have a department with Chinese speaking recruited and trained 950 workers. They produce high performance Industrial Parks is one of the pillars; Can you expand on this topic? staff. Our website will have a Chinese option and we will open a branch of cycling clothing lines. And again they were able to put to market this We developed a 10 years program in line with Vision 2025. In 10 years Ethiopian Investment Commission in Beijing, Guangzhou or Shanghai. high quality product in 90 days. we want Ethiopia to be the manufacturing hub in Africa and we want to lead in light manufacturing as it fulfills our needs. It’s labor intensive What about the Japanese market? Apart from Hawassa what other parks are in the pipeline? and jobs are critical with our growing population, its export oriented To the Japanese farmers we have offered to build an exclusive industrial The second park will be Dire Dawa. We expect this park will be ready and it makes us address the constraints in foreign exchange. Our target park that meets the Japanese farm standards and requirement, which before September 2016. We have estimated a construction time of nine is an annual 25% growth for the manufacturing sector. In 10 years are different. We would finance it and use Japanese designers. We will months. manufacturing will grow four fold and its share of exports will go from also hire Japanese companies to operate the industrial park so that it Third park will be in Adama, fourth in Kombolcha and fifth in 10% - 20% today to close to 50%. This is the most challenging program becomes easier for the Japanese operators. It’s to that extent that they Mek’ele. We plan to start construction at the end of February. After this because we need to create 2 million manufacturing jobs in 10 years. need a specific environment. Jimma and Bahir Dar with construction expected to start by April/May. Every year we have to create 200,000 jobs. To understand the significance These should be completed by December 2016. $750 million from the of this figure; today the existing workforce in the manufacturing sector Any other specific hub worth mentioning? Eurobond sold last year are being used to finance all the parks. in large and medium size companies is roughly 350,000. This is the only We have plans to build one of the largest pharmaceutical hubs at In Addis, we’re planning to have an industrial park financed by World way to achieve structural transformation. Bishoftu (20-25km from Addis Ababa). We want to attract leading Bank loans. It’s called Bole Ilemi 2 and hopefully will be ready by 2017. During GTP I we have made some substantial progress. When we pharmaceutical companies especially from Germany. Bio for example We have to follow the procedures jointly agreed with The World Bank. started GTP I FDI was close to $1 billion annually. In 2014, FDI inflow is going to invest in biotechnology (seed development) and perhaps they In Kilinto we’re considering of using the park for mainly pharmaceutical reached $1.6 billion. We desperately need FDI for many reasons. It is will expand to pharmaceuticals. We will continue to work with Roche. and also for advance manufacturing including the aviation sector using the best way for our businesses to learn how to market and compete in Also JSK from the UK is interested and we hope Bill Gates through his the leverage of Ethiopian Airlines with manufacturers. the global economy. We have to operate as part of the global value chain. Our industrial parks play a key role providing the required capacity. foundation can assist us bringing the US pharmaceutical industry here. Secondly we have to develop technical and technological skills and our About a dozen anchors will be hosted at Hawassa Industrial Park, our Since there are parks are located outside of Addis Ababa can you expand people can only learn these skills if they are working. And finally we first pilot and specializing only in apparel and textiles, which will be Industrial parks reduce significantly the time to be fully operational for on the infrastructure in place? need management skills. Everything boils down to management skills. fully operational between March and June of this year. an investor. Can you share some success stories from Ethiopia? We now have a railway transportation system in place. It currently takes These will improve quality and productivity and the spillover effect will We have to ensure that the industrial parks provide the best business The best examples are Huajian and Shin Textile. Huajian is very well around 10 hours by train for goods to reach from Djibouti to Addis. be tremendous. environment and serve as one-stop service facilitating customs known, as it was fully operational in less than 90 days. They used Goods don’t need to be inspected by customs and they just move directly In order for this to happen we have to focus on manufacturing clearance, provision of license and certificates and visas. We believe in Eastern Industrial Park and for them it turned out to be a matter of plug to the industrial park where they are inspected. If they are destined for investment. Within the manufacturing sector, we have identified 10 key clustering the industrial parks as proximity benefits one another and and play. In those 90 days they recruited and trained staff and installed export they are sent directly to the port, as there is no tax applied and no sectors to develop. To give you an idea of the level of detail one of the mitigates the environmental impact. machinery. They have a factory in China where they took the Ethiopian reason for customs to be involved. subsectors is light manufacturing and it includes textiles and apparel, staff to be trained. All in only 90 days. There are companies at parks outside of Djibouti (i.e. Hawassa). These laser products, agro industries, food processing and beverages etc. Can you tell us a little bit more about Hawassa Industrial Park? Shin Textile is a South Korean company. It’s at Bole Ilemi 1. They got companies will have a subsidized rate and they will pay the same as if We have also identified a category called strategic that encompasses Hawassa Industrial Park specializes only in apparel and textiles. It the facility in October and were exporting to Germany in January. They the goods were leaving/arriving to Addis Ababa. sectors that will be key after vision 2025. Not a priority right now but comprises 300,000 square meters of factory buildings, a business district were we need to lay the foundation. These include biotechnology, inside the park with office buildings, restaurants and shopping mall. We pharmaceutical and ICT particularly linked to advanced manufacturing. have also created residential quarters for 1,000 expatriates. When this For every subsector we analyze strong countries park is completed it will generate 60,000 jobs and 1 in the sector and we look at the top corporations. “We have made substantial billion in foreign exchange earnings. The anchors We call them anchors and we try to attract them progress. When we started that will join Hawassa are global players; PVH, for to Ethiopia. Once you attract these strategic GTP1, FDI was close to $1 example, from the US which is one of the top three corporations other companies will follow. billion annually. In 2014, FDI players in the apparel and textile industry. Our previous experience in industrial parks inflows reached $1.6 billion.” wasn’t positive. In GTP I we developed only one Last November 25 – During the celebration of the park that took us a long time to build; Bole Ilemi, and it didn’t produce Africa Industrialization Day – you said Ethiopia was looking to attract the expected outcome. We didn’t have a comprehensive strategy or a more Chinese investors for the manufacturing sector. How do you clear understanding on how to do it. In 2014, the PM assigned me to promote the industrial parks in the Chinese market? make a study on industrial parks. We studied certain country models to China’s economy is now restructuring. That’s why it’s slowed down. understand success and failure. In Africa, we selected Nigeria who has As we all know China is the world’s manufacturing powerhouse been building industrial parks since the late ‘80s but still hasn’t achieved accounting for 40% - 50% of global manufactured products. Now labor the expected results. This is due to its lack of power. As a positive costs are increasing in China. example we looked at Mauritius that has implemented successful China employs 80 million people in labor-intensive industries. In five Export Processing Zones since the 70’s. In Asia we studied Vietnam, years period if adjustments are not implemented, most of them will go China, South Korea and Singapore. We looked at their experience and bankrupt. Some of them will have to upgrade their technology to make how they engage the private sector as developers. it more capital intensive but many of them will have to relocate to Asia The Ethiopian Investment Agency has to play a pivotal role in this (Cambodia and Vietnam) or Sub African countries. process. We have restructured and empowered the agency and made it We have been closely working with Chinese authorities to create directly accountable to the office of the Prime Minister. conditions to attract more Chinese investment. The Ethiopian Fitsum Arega, Commissioner of Ethiopian Investment Commission

ICT. In agriculture, we focus to attract horticulture including flower, cotton farm, winery and mechanized farming. After making clear our 5-10 years plan and identifying our investment sectors that we have competitive advantage we are now building Industrial Parks that have special incentive packages for companies that will operate in the parks. The incentives include importation of all capital goods, spare parts, and construction material free from all customs duties and will enjoy up to 10 years of corporate income tax exemptions. Exporting companies are also exempted from all export taxes including VAT whenever they export and when they import their inputs. The companies inside Industrial Parks also enjoy 24/7 electric power, water, telecom, in security and fire protection services to mention some and access main Invest government services they may need such as customs clearance for their operation as part of One Stop Shop coordinated by Ethiopian Investment Commission. Ethiopia Ethiopia’s aim is to attract anchor investors and buyers who influence Under the Competitive Industries and Innovation Program, the Ethiopian their suppliers who are manufacturers. They want the suppliers to be investment agency has been revamped in 2015 to become the Ethiopian competitive so that they continue supplying for them and they advise them Investment Commission. Can you highlight what this institutional to relocate in more competitive destination such as Ethiopia. As we speak restructuration means and the main changes? Ethiopia offers to mention some the cheapest electricity in the world, The main changes are to enable the commission to address investment very competitive labor force with high productivity, friendly people and challenges investors may face during any stages of investing in Ethiopia naturally conditioned weather to live and work. We are planning to create more promptly than before. Whenever there were challenges in the 2 million manufacturing jobs in the next 10 years. past, it would take longer to solve, but now due to the restructuring the In the last 10 years, around 35 to 40 million people joined the labor force, commission is made directly accountable to the Prime Minister and so if we don’t continue creating jobs, it will be difficult. Therefore, we have now Ethiopian Investment Board is chaired by the Prime Minister. both push and pull factors when we promote FDI. One of our competitive This has already started to show very positive results as a result of attribute is a low-cost and young workforce, which is the driver for labor- ETHIOPIA ON A DOUBLE DIGIT GROWTH FOR OVER A DECADE NOW… his interventions. The other key purpose of the restructuring is to intensive industries. In other countries companies are struggling because accommodate new mandates to the Commission, Industrial Parks of labor costs, especially in the garment industry. It comprises between Promotion and Regulation, Policy Research and Improving Investment 60-70% of their cost. They benefit a lot if they expand or relocate their Attractive Domestic Market & Access to Global Markets Climate are among the main new mandate. It is also helping investment production facilities to Ethiopia. • Growing domestic market: close to 100M population with an annual growth rate of 2.3% promotion in the country as the restructuring is • Preferential trade privileges: AGOA for exports to USA, EBA to Europe, and COMESA to other African making the commission more visible to investors “We have already signed How can Ethiopia link the FDI to the local countries and hopping to get better attention. When investors agreements with more and domestic firms to ensure that knowhow is Supportive Policies & Incentives for the Manufacturing Sector observe the restructuring, they can easily understand than 10 anchor companies. transferred? • Income tax exemption up to 8 years the attention given to the commission and there is The annual export target Linking FDI to domestic industry is very important • Import duty exemption on capital goods, construction materials and raw materials correlated effect on investment promotion. of these companies is over to sustain growth and employment. FDI that gets • No export tax on processed/ manufactured goods $1 billion.” attracted due to competitive labor leaves the country Massive Investment on Infrastructure & Skills Development Your Prime Minister recently stated, “We will leave when the cost increases unless it restructures its • One of the lowest electricity rates in the world no stone unturned to make this country a suitable destination for foreign investment into a capital intensive industry. Local companies are the ones • Trainable workforce with competitive wage investment”. What measures are being taken to attract FDI to industry, that rescue during such challenges. Therefore, transferring knowhow • World class industrial parks along economic corridors especially in light manufacturing? and technology is as important as attracting FDI. In our case Ministry of • Competitive logistics (10hrs to Djibouti port) Our Honorable Prime Minister is right! The world history teaches us Science and Technology is working to ensure knowhow and technology that no country in the world grew without sizable FDI participation. High transfer. VISION 2025: BECOMING THE MANUFACTRING HUB OF AFRICA! income countries like US are still in need of quality FDI to sustain its The local textile companies that are struggling to survive could be leadership as high income economy, let alone countries like Ethiopia that upgraded to supply export market. Big buyers can do that. They have is just taking off. the skills and the market. They have started doing and if they expand To attract quality FDI we have taken some serious measures: Firstly, we such programs many local textile and leather garment manufacturing have made clear our vision of becoming the leading light manufacturing companies can grow very fast. We highly welcome such global sourcing hub in Africa by 2025. Secondly, we’ve identified manufacturing and companies (buyers) to collaborate with our local manufactures and help agriculture as priority sectors. From manufacturing we focus on attracting them to restructure and be certified to meet their requirements and Textile and Leather products manufacturing including Apparel, Footwear source from them. Both the buyer and the supplier benefit a great deal. mainly for export. As import substitution we focus on attracting Chemical Products, Steel and Pharmaceutical investments. As strategic investment Do you think in the future that Ethiopia should make it mandatory that a we also attract investments in electricity generation, biotechnology and certain local content is present in some of the projects? www.investethiopia.gov.et Our experience tells us that mandatory partnership doesn’t work as Let’s talk about the incentives you offer investors. most end up becoming sleeping partners. We encourage local companies Incentives are additional elements, which encourage companies to to partner, but like voluntary marriage it is up to them to chose their consider expanding. Companies make investment decisions based on mach and decide on the ownership percentage. Mandatory local-FDI general investment environment such as peace and stability, macro- Connecting partnership guarantees neither knowhow transfer nor sustainability. stability, labor cost competitiveness and productivity, power availability There has been some FDI in Africa with such arrangements for more and competitiveness to mention some. than 50 years, but never materialized the benefits that were expected. The specific incentives Ethiopia offers are outlined above. Briefly it includes importing machinery, construction materials, spare parts, Can you tell us about some of the key agreements that have been signed inputs (for exportable outputs only) duty free. There are tax breaks up with private investors or bilateral agreements with other countries in to 10 years in strategic sectors like textile and leather garments. The 2015 and if you can give us an idea about what you can expect for 2016? minimum tax break is 6 years. If they are exporting 60% or more they We have already signed agreements with more than 10 anchor companies. will get additional 2 years. If they are located inside an industrial park The annual export target of these companies is more than US$ 1 billion and exporting 80% or more they get an additional 2 years, which is 10 dollars. years in total. The issue is still confidential and will be announced when they start If investors chose to be industrial park developers which we highly production around end of the 4th quarter of 2016. The companies that are encourage then they can enjoy up to 15 years tax breaks. I have never investing in Textile and Apparel in one of the best Eco-Industrial Park in heard of another country offering 15 years tax breaks. Africa are leading companies from US, India, China, Hong Kong (China), There are also training opportunities carried out by different Indonesia and Sri Lanka. government institutions that support all investors be it FDI or local on In meat processing investment we have also signed with Alana (the cost sharing arrangement. biggest Indian meat processing company) and another USA-Dutch JV. We always say that countries like companies compete to attract FDI. Alana is investing 50 million dollars in their first phase and the other What would you say to investors to encourage them to come to Ethiopia? company is doing half of that. This growing meat processing investment All investors will start to consider Africa and within Africa, we believe PHASE 1 in Ethiopia is encouraging but it is a drop in the ocean in a country that has that Ethiopia stands out. We have one of the lowest labor costs. In some The key objective of Ethiopian the biggest livestock population in Africa and the 7th biggest in the world. African nations, due to oil and tourism, labor cost is rising. We have Railways Corporation (ERC) Footwear is also growing very fast as it has the backbone, the leather. made it clear that we want to attract light manufacturing and labor- is to develop an integrated and PHASE 2 George shoes, Taiwanese (China) company is investing in its own intensive industries because that is where we are competitive. In the Industrial Park. It is investing more than US$100 million in 2 tanneries next 10 years we want to become the biggest light-manufacturing hub in high- capacity transport system to and 24 factories; 50% of it is already completed. Production may commence Africa. Our large workforce is a strategic asset. The school population ensure competitive and affordable by June 2016. Some of the factories are built to attract footwear accessories’ in Ethiopia is around 30 million, nearly the whole population of Sudan. transport in the country. manufacturers that will complement its main product, the footwear. It is We also offer great opportunities for electric power generation creating its own cluster. FDI companies are warmly welcome to create investment: hydro, geothermal and wind are all abundantly available. ERC is developing eight railway their dream world with very attractive incentive packages here in the We have a highly stable economic and political environment based corridors, including study, design, world’s fastest growing country, Ethiopia. on democratically elected government that has enabled the country to and subsequent implementation, enjoy predictable laws and has ensured policy continuity. Peace and with a total estimated length, stability that we enjoy are the results of people’s participation in the peace building and overall economic development process and also the including buffers, of some 5,060km. hope they have on the country in the making. The people believe that the In 2016, the corridor linking Addis system is benefitting them as the country is not only growing but also Ababa to Port of Djibouti will realizing real development with trickling effect to the people in social infrastructure and jobs to mention some. open, serving both the social and We have clearly indicated a strong industrial policy to enable economic needs of Ethiopia. transformation and to achieve middle-income status by 2025. We www.erc.gov.et communicate internally and to the rest of the world. We are transparent on that. We have already developed clear strategy and we have tested our strategy in the past and made us to become one of the fastest growing countries in the world for 12 years in a row with broad based development. Still we are keen to learn from other countries’ experiences. We are extremely cautious to environment and socially responsible in every investment we allow be it FDI or local, we care for our people and strive for quality. We believe that is the basis for sustainable investment in Ethiopia that will transform the country and the people for good. Welcome onboard to invest in the fastest growing country in the world, Ethiopia that is pleasantly surprising those already made their destination in the last remaining investment continent. ETHIOPIAN RAILWAYS CORPORATION From grass roots to green shoots ETHIOPIAN INVESTMENT COMMISSION Working for a brighter, better future Agriculture sows the seeds for manufacturing to flourish in future Since its inception in 2015, the Ethio- Ethiopian Electric Power is harnessing hydro potential and extending pian Investment Commission (EIC) the national grid in the drive to electrify the country’s development thiopia has come a long has already signed more than 10 Eway in a generation. The MoUs with private-sector players nation has staged a spectacular that could generate exports worth n 2013, the Ethiopian Electric set by GTP1: increasing generating transformation to become an over a billion dollars a year (€886 IPower Corporation was demerged capacity from 2,000MW to 8,000 African leader in inclusive million). The EIC offers investors into two new companies, as part of MW, doubling the number of development, registering massive a host of incentives, including tax the country’s efforts to ramp up its people who have access to electricity, social and economic gains since holidays of up to ten years in strate- electricity generation capacity and and expanding power coverage to the 1990s. Having posted in excess gic industries and no limitations on distribution networks. Ethiopian 75% of the country. of double-digit GDP growth machinery and material imports. Electric Power (EEP) was made The balance of the first four for the last decade, Ethiopia “Our aim is to attract anchor years of GTP1 in the sector was had the world’s second fastest- “It is the only way to sustain growth, make structural investors and leading manufac- electrifying, pun intended. EEP expanding economy in 2015. The transformations, [and] pull the economy forward” turers,” Fitsum Arega, the EIC’s managed massive public investment International Monetary Fund Dr Arkebe Oqubay, Special Advisor to the Prime Minister Director General reveals. “Major in infrastructure megaprojects, Face of Grand Ethiopian Renaissance Dam (GERD). expects it to maintain a similar buyers provide market access and which are now starting to pay off to make it the daddy of Africa’s the nation could provide as much pace in 2016. Light manufacturing is labour- and exports increase by 30% per support manufacturers. [We have] a and provide a huge boost of power hydropower plants once it starts as 45,000MW to fuel rising demand. Although infrastructure may intensive, export-oriented, and annum. This will create 200,000 competitive, trainable, young work- into the grid. Meanwhile, new producing power in the future. Asnake is Chairperson of the have played critical role, says uses agricultural inputs.” jobs a year, an annual jump of 50%. force, which is the driver for la- transmission lines have been rolled In line with Ethiopia’s second Eastern Africa Power Pool (EAPP), Dr Arkebe Oqubay, a Special To reach its 11% annual GDP “This is [a] challenging bour-intensive industries. In many out nationwide and, by mid-2014, Growth and Transformation Plan grouping together nine nations Advisor to the Prime Minister, growth target over the next ten programme,” Dr Oqubay admits, emerging economies, like China “Ethiopia wants to become coverage had increased by 25%. (GTP2), the national blueprint for that depend on one another to the foundations of its success lie years, the government’s goal for “but the only way we can sustain and Turkey, manufacturers are the energy export hub for Since its inception, EEP has been development until 2020, EEP is share vital resources that hold in agriculture. The sector provides manufacturing is 25% year-on- growth, make a structural struggling to cope with mounting Africa” Engineer Azeb Asnake, led by Azeb Asnake who previously setting its sights even higher, Asnake the key to regional development. 40% of GDP, 80% of exports, year expansion. From an existing transformation, [and] pull all the labour costs. There are benefits for CEO, Ethiopian Electric Power (EEP) served as project manager at the explains: “Our target is to reach Ethiopia already exports power to and jobs for three-quarters of 5% share of GDP, Dr Oqubay says, economy forward. Agriculture is them to relocate to Ethiopia.” massive Gibe III Hydroelectric 17,000MW,” she says. “So, we still Djibouti, Kenya, and Sudan, and the population. Dr Oqubay’s the sector should grow fourfold essential and inseparable from While foreign investors are usu- responsible for the delivery of power Project. Overcoming years of delays, have 13,000 MW to be constructed has signed MoUs to extend its role is to ensure Ethiopia’s Ethiopia’s industrialisation and ally most comfortable close to capi- projects, as well as the extension and under the leadership of Asnake, EEP during GTP2 [and] more than 10,000 reach to Rwanda, South Sudan, and progress remains sustainable, by Key MoU's economic transformation.” tal cities, Ethiopia is taking a differ- operation of the national grid. For its finally brought the 797-foot-high, kilometres of transmission and Tanzania, as well as Yemen. transitioning to a manufacturing- Some companies are choosing The government has identified ent approach, building industrial part, the Ethiopian Electric Utility €1.65-billion dam on the Omo river distribution networks to [add]. This “Ethiopia wants to become the based economic model that adds Ethiopia as their preferred ten sectors to drive investment, parks in rural areas where plentiful (EEU) now looks after distribution on-stream last October, increasing looks an ambitious plan, but we have energy export hub for Africa,” value to exports. location for manufacturing: including agro-industries, import- labour and quality infrastructure and customer relations as the power Ethiopia’s electricity generation to strive for that goal.” EEP’s CEO explains. “Energy is the The task may be formidable, • H&M has been working with substitution materials, and textiles, is available. This should produce a retailer. EEP sells power in bulk capacity by 234% in a flood. In the middle of last year, Asnake means to create integration. We but Ethiopia’s ambitions are local partners since 2013 as well as innovative segments, win-win outcome for local people to EEU and also handles export The third hydropower plant revealed EEP already had hydro invite investors to participate. There no less so, Dr Oqubay explains: • Heineken opened a such as biotechnology, ICT, and and overseas partners: “Ethiopia has activities. along the river, Gibe III is already and other renewable power projects are very attractive tax holidays and “In ten years, we want Ethiopia €310 million brewery in pharmaceuticals. And it plans political and macro-economic sta- Under Ethiopia’s original five- one of the largest in Africa, but will in the pipeline that could add other incentives offered by the to be the manufacturing hub of January 2015 to build a network of industrial bility and policy continuity, which year Growth and Transformation be dwarfed by the fittingly named another 12,000MW to the grid by government to bring in investors to Africa and number one in light • PVH is currently developing parks nationwide to serve as focal is important for investors,” Arega Plan (GTP1), launched in 2010 Grand Ethiopian Renaissance 2020. Harnessing the potential of the country. There is a big demand manufacturing. Every year, the a socially-responsible points for capital investment, insists. by former Prime Minister Meles Dam (GERD). GERD is set to cost Ethiopia’s rich water resources to for partnerships as there is a lot to be population is increasing by 2.3 factory in Hawassa, slated joint-venture partnerships, and Zenawi, EEP shoulders most of the €4.6 billion and slated to generate provide a clean, sustainable energy done and many projects planned in million, so job creation is critical. to open in summer 2017. technology transfer. tasks required to meet the targets 6,000MW, more than enough source for decades, experts believe GTP2 and beyond.”

“MADE IN AFRICA”: HOW TO MAKE INDUSTRIES WORK IN ETHIOPIA PROVIDING MORE THAN JUST POWER TO EAST AFRICAN PEERS An in-depth exploration of Africa’s industrialisation process by Dr Arkebe Oqubay, Special Advisor to the Prime Minister Export potential from massive electricity-generation projects will not just pay dividends for Ethiopia, but also contribute to regional stability

ublished by the Oxford West has long insisted is the the spectrum of import-substi- thiopia is aiming to trans- of renewable energy to power Ethi- with Sudan, Djibouti, and Kenya. mits. As a result, the government PUniversity Press in 2015, only way, Dr Oqubay advocates tution, agro-processing, and Eform itself into a powerhouse opia’s growth, but also contribute Regional interconnection will not is focused on fostering initiatives ‘Made in Africa, Industrial the benefits of government plan- export-oriented light manufac- for East Africa. The government to regional development. only benefit Ethiopia from export- that promote technology transfer, Policy in Ethiopia’ is based on ning, backed up by political will, turing comprehensively. The has invested €5.25 billion over “We have potential from hydro, ing electricity, it is also for the se- providing not just jobs but engen- Dr Arkebe Oqubay’s doctoral as the optimum means for Af- work is frank in identifying the the last three years in its ener- from solar, from wind, from geo- curity of those around us.” dering expertise. Rather than thesis and provides a critical, and rica, and Ethiopia, to drive eco- causes of differing outcomes, gy-sector programme and, under thermal, and more,” says Motuma In the 2015-16 fiscal year, energy relying on imports of finished sometimes revealing, look into nomic growth. offers insight into long-term GTP2, has earmarked another Mekassa, the Minister of Water, imports already earned Ethiopia goods, preference will be given the thinking behind Ethiopia’s Dr Oqubay illustrates his ide- solutions. It has been very well $20 billion (€17.5 billion) to bring Irrigation and Electricity. “If we €108 million, a figure that is only to overseas investors who set up industrialisation plans. Rather as through case studies of three received, with former World hydroelectric mega-projects like properly utilise [what] we have, set to grow in coming years. But a ventures to manufacture vital in- than rely on market forces and industries – cement, cut flowers, Bank economist Justin Yifu Lin GERD on-stream. The goal is not it will serve neighbouring coun- lack of know-how on the local level puts like solar panels and pumps competitive advantages, as the and the leather sector – covering calling it “brilliant.” just to provide plentiful supplies tries. Now, we are connected remains a hurdle, the Minister ad- in Ethiopia. Harnessing the power of the Nile Providing power for Ethiopia and for export Africa’s biggest dam is set to benefit much more than Ethiopia As demand for electricity grows exponentially at home and abroad, Ethiopian Electric Utility is giving power to the people and to businesses

FUNDING THE NATION’S ollowing the demerger of the is lots of room for investors,” he over half what it would in many 45,000MW from its rivers alone. DEVELOPMENT FEthiopian Electric Light and insists, “especially for micro- of the region’s markets – these Add to that 10,000MW from For over a century, the state-owned Power Authority in December grid and off-grid solutions and are fast being forgotten, in favour geothermal resources, which Development Bank of Ethiopia 2013, the Ethiopian Electric Utility standalone generation options... of a cleaner, cheaper means to today provide just 6% of its overall (DBE) has provided long-term (EEU) was given the task of like solar, wind, micro- and mini- cook a meal, read a book at night, energy mix, and almost limitless credit to help the country grow. Re- distributing and selling electricity hydro, biomass, or hybrids.” and recharge a mobile phone, all scope for the development of other established in 2003, it is Ethiopia’s nationwide and, in time, to export With annual demand for power without needing to start a fire. renewable sources, like solar and leading project financer and excess energy to neighbouring growing at up to 25%, however, it Individual consumers are wind which together account serves as a conduit for local and nations. Within the framework not the only ones clamouring for 8% today, with sufficient foreign capital to finance major of the government’s accelerated for connections, either. The investment it should easily reach private-sector projects. In the first drive to expand capacity and number of power-hungry its declared energy production half of the 2015/16 financial year, extend networks, EEU’s reach corporate users is growing fast goal of 37,000MW by 2037. DBE sold bonds in GERD worth and revenues look ready to grow and, with the government’s big In an interview this February €21 million, a significant share of at an electrifying pace in the next plans to develop agro-processing with East African Business Week, the €314 million bonds sold to date. few years. and industrial parks, can only Abayneh revealed EEU’s long- GERD is located in the Benishangul-Gumaz region, close to the border with Sudan. “Under GTP1, DBE supported the Over the last decade and a climb, Abayneh notes. And all term ambition to tap into pan- s a feat of engineering, the part of the Nile Basin Initiative and addition to a huge portfolio of other national development agenda,” half, Ethiopia has connected of Ethiopia’s new hospitals and African electricity networks and AGrand Ethiopian Renaissance share its waters. infrastructure projects worldwide. millions of its citizens to reliable “There is lots of room for health centres, new schools and help carry Ethiopia’s electricity Dam (GERD) is pretty damn GERD involves not just the Construction began on GERD power supplies, going from just investors” Gosaye Mengistie universities, and new transport and influence across the continent. (pun intended) impressive. Upon construction of the massive main at the end of 2010 and is being eight percent coverage in 2001, Abayneh, CEO, EEU networks will need ever larger He explained that Ethiopia intends completion, GERD will become dam – which will reach 175 metres carried out using roller-compacted prior to the launch of the Rural loads of the extra capacity that to leverage existing power links one of the biggest dams in Africa at its highest point in the gorge, concrete (RCC), enabling Salini Electrification Programme in still comfortably outstrips supply, will flow into the grid when the with its immediate neighbours like and will hold back a new lake that stretch for 1.8km across its crown, Impregilo to work at a very 2006, to more than 55% today. By EEU’s CEO, Gosaye Mengistie next generation of hydropower Djibouti and Sudan to strengthen covers 1,800 square kilometres and and require 10.2 million cubic impressive pace. 2020, under GTP2, the objective is Abayneh, says. Until recently, mega-projects comes on-stream regional relations and, thanks to contains 74 billion cubic metres of metres of concrete to hold back By April 2016, the fifth anniver- to reach 90% penetration, no small Ethiopian households depended before the end of the decade. agreements like the infrastructure water. Once its twin hydropower sary of the signature of the agree- Esayas Bahre, President, DBE challenge in a country where on dirty fuels like kerosene and At present, Ethiopia only connectivity deal recently signed plants come onstream, the dam will ment between Ethiopia, Egypt, more than 80% of the population wood for heat and light. But, possesses 2,300MW of installed with Burundi, Rwanda, Tanzania, have 6,000MW of installed capacity, and Sudan to develop GERD, confirms its President, Esayas still lives in rural, and often thanks to rock-bottom retail capacity, 86% of which comes from and Uganda, serve a much bigger, harnessing a renewable, sustainable 60% of the main dam had been Bahre. “Commercial banks tend remote, areas. prices – a unit of electricity in hydroelectric plants, but it has the and more lucrative, marketplace energy source to produce up to completed. Ethiopian Prime to focus on short-term financing. “The government and espe- Ethiopia typically costs a little potential to generate an additional in the future. 15,700GWh of power a year. Minister Hailemariam Desalegn DBE gives priority to projects that cially EEU is focusing on this Located in the Benishangul- took the opportunity to thank both create employment, exports, and on-grid and off-grid Universal Gumaz region, 700 kilometres countries for coming together economic development.” Electricity Access Programme,” northwest of Ethiopia’s capital, When completed, GERD to create a “win-win approach”, This March, DBE announced it confirms the company’s CEO, Addis Ababa, and about 14 km. will have 6,000MW of following a March 2015 coopera- would increase its own capital Gosaye Mengistie Abayneh. “We from the border with Sudan, GERD capacity to serve Ethiopia tion deal he signed with Egypt’s from €206 to €310 million euros in are thinking of different renewa- lies on the Blue Nile, one of the and its neighbours President Abdel Fattah El-Sisi and 2016, via a new bond issue, and has ble or alternative energy sources. two major tributaries of the world’s Sudan’s Omar al-Bashir. set an ambitious target to extend All of these technologies will be longest river. The Nile flows the river – but also a 50-metre- Designed primarily to produce €4.6 billion in loans during GTP2, employed [and] we want to organ- from Lake Tana, in the Ethiopian tall, 5km-long saddle dam, which electricity, sufficient to export for private-sector investment and ise local entrepreneurs who have Highlands, through Sudan and will hold a volume of 16 million surplus to Ethiopia’s East African SMEs in the agriculture, agro- expertise in the sector and small Egypt to the Mediterranean cubic metres of rockfill, and two neighbours like Sudan and even processing, construction, energy, and micro-enterprises. We have Sea, providing the lifeblood for power stations, sited on either side Egypt, GERD will also help manufacturing, and mining almost 200 different contractors agriculture, power, and drinking of the river, driven by 16 375MW- regulate the flow of the Nile to sectors. involved.” water to the nine states that form turbines. benefit agricultural production; Although Ethiopia has already The €4.6 billion project is being conserve valuable water electrified 5,000 smaller towns fast-track developed by Italy’s resources, thanks to reduced and rural settlements, Abayneh Salini Impregilo, a multinational evaporation levels compared to admits there is still a lot of work construction giant that has been the region’s existing reservoirs; to be done to achieve universal building dams across Africa and form a new 235-metre bridge access and that is where overseas www.salini-impregilo.com for more than half a century, in across the Blue Nile. players can play a part: “There EEU linemen work on rural electrification under the Universal Electricity Access Programme. Dr. Tedros Adhanom, Minister of Foreign Affairs of Ethiopia

What role does the Ethiopian Renaissance Dam play in creating How are you industrializing the economy? cooperative relationships with your neighbors? Our industrialization policy gives greater emphasis on micro and The Grand Ethiopian Renaissance Dam (GERD) was launched in 2011 small enterprises. The SME’s are considered as the driving engines for as one among the mega-projects of the Growth and Transformation industrialization. Towards that end, the government is providing credit Plan (GTP). The GTP which entered its second five year phase is aimed lines, training and such supports as creating market linkages. We are at transforming the economy from an agrarian base to an industry-led working also on technical and vocation schools dedicated to technology economy. The GERD and many other major railway, dam and massive to enhance the strides we are making in SME’s. The policy envisages infrastructure projects were meant to realize this transformative and the gradual shift from small and medium enterprises in to medium and ambitious goal. Coming to GERD, from the outset, the project was big industries. In that regard, the SME’S are creating millions of jobs intended to supply high demand for power at home and in urban areas in particular. The emphasis on SME’s is export the balance to our neighbors. The project was “The dam project is based on its benefit in job creation, technology transfer also born out of the idea that economic integration will facilitating regional and capital accumulation. Ethiopia also envisages rapid have a dividend in ensuring peace and security. It is also integration.” industarlization through industry and special economic informed by the reality that despite the huge potential zones. We are working on ten industry zones which are for intra-regional trade we are not trading with each other while being expected to create 250,000 jobs every year. neighbors. The GERD is an important example of cooperation since it is based on Ethiopia’s comparative advantage in hydro-power generation- Many of the big world’s economies are not part of UNIDO? How are a testimony to our commitment that cooperation should be based on you financing this industrialization? comparative advantages for a greater synergy. As far as the cooperation Apart from what UNIDO can carry out projects that compliment a with Egypt and Sudan is concerned, successive dialogues over GERD country’s efforts, it is also the country’s responsibility to plan and are creating mutual understanding and trust on the importance of finance projects based on its own priorities. In our case, we have cooperation. In this respect Ethiopia has gone a long way to show its increased domestic financing mainly by encouraging savings. Our commitment to cooperation by proposing a trilateral experts committee savings have grown from 5% of our GDP to more than 20%. The growth to study the impact of the Dam. We are also working to elevate our ties in the export sector and concomitant rise in revenue is also playing a through trade & investment and greater cooperation. We are on the role in financing our priority areas. The flow of high FDI has also in right track. bringing the much-needed capital to finance our projects.

Salini Impregilo has been active for more than 110 years. Today, we operate in more than 50 countries, across five continents, with more than 30,000 employees. At the end of 2015, turnover was approx. €4.7 billion with a backlog Your Development Partner of more than €33 billion. SPECIALIZED IN PROJECT FINANCING The Group operates in all sectors requiring complex large-scale infrastructures, such as renewable energy, water, transport and urban infrastructure, offering both design and construction services. We develop bespoke, innovative proposals Since 1909, when it was first established, The Bank has taken for every project, analysing the client’s needs in depth and researching the most effective technological solutions. different names at different times even though its mission We collaborate with our designers, engineers and suppliers to prioritise environmental, social and health and safety and business purposes remained the same, the issues throughout. Once a project is in motion, our collaborative approach continues, as we transform drawings into development of the nation. reality, engage with local stakeholders, and recruit, train and care for large workforces. Hydraulic engineering, including dams and hydroelectric plants, is a key strength of the Salini Impregilo Group. We are currently recognised by Engineering News Record (ENR) as world leader in the construction of infrastructure projects in the water segment, and act as a strategic partner for our clients, helping to develop projects from their inception. We have built some 257 dams and hydroelectric plants across five different continents, with an installed capacity of more than 37,500 MW of low-cost, clean energy. In this way, we contribute directly to the renewable energy transition and sustainable development in multiple countries.

Development Bank of Ethiopia www.dbe.com.et

www.salini-impregilo.com we build value Turning vision into reality Ethiopian Railways Corporation is making new connections and moving the nation forward, by building more than infrastructure

ADDIS ABABA LRT: The greenest way to get around town

Ethiopia’s Climate-Resilient Green Economy (CRGE) initiative seeks rural arEas to ensure that, as the country strives to reach middle-income status, industry infrastructurEs development is not achieved at any price. Facing famine because of El Niño’s catastrophic consequences on the country’s harvests, the government is conscious of the HEaltH EnErgy threat climate change poses and plans to protect future generations against risks. Working train set on completed section Among the measures adopted ext year will mark a century ERC’s CEO, notes: “Ethiopia be- Corridor to the mega-port planned is capping greenhouse-gas Nsince the first rail connection came poor because it wasn’t con- in the South-East of Kenya, and emissions before they rise to was completed between Addis nected.” even reach across Africa, “beyond unsustainable levels. Ethiopia urban Ababa and the port of Djibouti. The In the National Rail Network Kigali to the Atlantic Ocean,” Dr has committed to limiting Education dEvElopmEnt route represents Ethiopia’s most of Ethiopia (NRNE) master- Betru believes. its 2030 carbon emissions to direct link to the Gulf of Aden plan, ERC aims to roll out eight As with the NRNE, ERC has present-day levels, producing and the Red Sea for the country’s transnational rail corridors over the focused on the bigger picture with just 150 million tonnes of CO2- imports and exports, and a vital next few decades to revive regional the Addis Ababa Light Railway equivalent a year over the next lifeline for humanitarian aid in connectivity and put Ethiopia at Transit (LRT) mass transportation decade and a half to maintain light of the severest drought to hit the heart of Africa’s freight and system, designed to move people in zero net growth. the region in thirty years. passenger transportation networks. and around the capital. Developed­ The CRGE strategy is based Last November, ahead of sched- The NRNE earmarked through a €435-million commer- on four pillars, including EmpowEring ule, the Ethiopian Railways Corpo- 5,060 kilometres of track for cial loan on the foreign portion of ‘leapfrogging to modern, energy- ration (ERC) opened the new, stand- the project from EXIM Bank of efficient technologies in transport, Ethiopia’s Economic transformation ard-gauge line that stretches 800 China, the first 17-kilometre phase industrial sectors, and buildings.’ kilometres from the Ethiopian capi- was delivered last September, Addis Ababa LRT is a prime tal to the coast. Full electrification is heading south from the city cen- example of how Ethiopia is making Proudly leading the renewable energy revolution in Ethiopia and East Africa,Ethiopian ElEctric Utility (EEU) is expected early in 2016. The service tre. This was followed by a second, that happen. It is powered by seeking international partners to take advantage of the projects that will boost national and regional energy capacity. carried 3,000 tonnes of grain per 17-kilometre line, that runs from electricity generated domestically Blessed with wonderful natural resources that make it an ideal destination for investors seeking profitable openings trip to the worst-hit areas of Ethio- east to west, in November. from mostly renewable sources, in green energies, Ethiopia boasts vast potential in areas such as hydroelectric, biomass, solar, geothermal and wind pia, the first of many humanitarian Completed on schedule in like hydropower, rather than energies, with detailed feasibility studies already concluded. convoys that will run until the rains “Ethiopia became poor 2015, the LRT —the first electric relying on imported diesel to make EEU desires international financial and human capital — from private and public sector entities — to maximize these come and crops recover. because its developmental light train in Africa— carries the trains run on time. exciting openings that will further fuel the superior transformation of the country, add capacity to the national grid and Ethiopia may be Africa’s second areas were not connected 60,000 passengers an hour in four “By 2030, our railways will avoid allow Ethiopia to expand its electricity service to urban and rural citizens and beyond. largest nation by population and Dr Getachew Betru, CEO, ERC directions. Its 39 stations have the emissions of nine Mt CO2e have one of the continent’s fastest already become commercial hubs every year,” Dr Getachew Betru, growing economies, but the spec- development, with the first 2,000 serving local areas: “The LRT has ERC’s CEO, has declared. ERC has tre of failed harvests and famine slated for completion during the set a benchmark for any project,” already registered Addis Ababa remains a constant. Landlocked five years of Ethiopia’s second Dr Betru insists. “We have applied LRT as a Clean Development and bypassed of global trade for Growth and Transformation Plan bigger thinking. We don’t just Mechanism project under the decades, the country saw its for- (GTP2). These will connect the build the railway, we’re impacting Kyoto Protocol, to earn carbon tunes decline along with its infra- country with North, Central, and what is going to happen in the credits in the future. www.eeu.gov.et structure. As Dr Getachew Betru, South Sudan, open up the Lamu corridor.” Andualem Admassie, Chief Executive Officer of Ethio Telecom

What is Ethio Telecom’s penetration in mobiles, fixed lines and internet? Ethiopian Airlines 1946-2016 We have a penetration of 45% for mobiles, 13% for internet and our fixed line penetration is 1%. According to the GSM intelligence report, Ethio Telecom is the second largest telecom operator in Africa and the 38th in the world out of 830 operators.

What challenges are to be found in the rural areas? Internet access is one of the biggest interventions that this company has carried out. We have more than 60,000 villages in Ethiopia and unlike most other similar countries, all of them now have access to wireless. We are providing this at a very minimal cost. More than 85% of the country is covered by the network and our project has connected all the rural areas. However, we need to introduce broadband and our goal in GTP II is to bring two mega broadband to all villages. By increasing broadband penetration by 10%, research shows you can increase your GDP by 1.3%.

What opportunities are there for foreign partners to work with Ethio Telecom? We already work with Huawei, ZTE and Ericsson. They not only sell their equipment here but they also provide maintenance support and provide knowledge transfer as well. Since we opened up the issue of value added services, many foreign companies are generating ideas and working with Ethio Telecom as it would be impossible for us to do this alone. However, we are not opening a second license or privatization, but that doesn’t mean there aren’t a lot of opportunities for our partners.

How do you collaborate with universities and academies? Knowledge transfer and making this knowledge sustainable is vital for In 2010, French telecommunications company, Orange, were awarded us. Our best engineers may leave Ethiopia at any time as engineers move a management contract for 2 1/2 years. What did this mean for Ethio around a lot. We are therefore collaborating with the universities and Telecom? founding our own corporate university as well. Ethio Telecom is state-owned and is the only operator in the country. The We designed a master’s program in telecommunication engineering in company is as old as the telecom industry itself; over 120 years old. In 2006, collaboration with the Addis Ababa University of Science and Technology. the government realized that the telecommunications sector is an enabler We have almost completed the set-up of our corporate university which of economic and social development and so they invested 1.5 will consist of three schools; a technical school, a commercial Billion USD into telecoms expansion. This was the moment “More than 85% school, and a leadership and management school. We will have that the mobile network was also introduced. of the country is our own R&D department based there. The Ethiopian Telecommunication Corporation was covered by dissolved and Ethio Telecom was formed. In 2010, French our network.” How would you like to see Ethio Telecom in the next five years? Telecom, Orange were chosen to help us to transform the I would like us to have a 103 million subscriber base. My strategy company by using their international experience to avoid “sitting and is customer focused, so we plan to improve response times. Additional sleeping” like a public company might. Everything they did such as the expansion projects will be implemented and we hope to be a world-class After 70 years, we’re circling marketing strategy and the products and services offered were carried out company and the best operator on the planet. as if there was competition. This gave us a chance to grow the company and give customer satisfaction. the globe more than ever. We are a state-owned company, but we are not run as a state-company. Ethiopian Airlines serves more African cities than any airline How has the telecommunication market in Ethiopia evolved in the recent in the world. But that’s only half the story. We also serve years? The Orange contract was a €30 million investment. The country was more cities outside of Africa than any other carrier on the divided into different telecom circles, and now we have two or three vendors continent. Add to that our membership in Star Alliance — working with us; Ericsson, ZTE and Huawei. This expansion gives us a total the world’s premier airline network — and Ethiopian Airlines subscriber capacity of 80 million. Five or six years ago there were only around six million customers, and clearly stands at the peak of the African aviation sector. now this has risen to over 40 million. Our network is only two years old and so it’s all very new. Getting the (telephone) numbers right Planting the seeds for future growth State-owned operator Ethio Telecom invests €1.4 billion to reach 100% penetration by 2020 GTP2 aims to produce and process higher-value yield to develop agriculture

thiopia may have one of the move is to reach 100% penetration round 80 million Ethiopians Elowest telecommunications in the next five years,” the Minister Alive in rural areas and most penetration rates in the world, declares. “The government is rely on agriculture or livestock at about 45%, but massive gains pushing hard. We are investing in for their livelihoods and to feed have been made in connectivity infrastructure, in urban as well as their families. While some 95% of under GTP1, according to the rural communities. Access is our the country’s agricultural output Minister of Communication number-one [priority], as it has a is produced by smallholders, 80% and Information Technology, direct effect on economic growth. is consumed by those responsible If there is an increase in broadband for cultivation and rearing, from penetration of 10%, GDP will show planting to harvest and calf to beef, growth of 1.3%. But for countries with just a fifth of the total finding like us it could be even higher.” its way to market. Ethiopia began to ring in At present, just 5% of agricultural the changes in 2006, when it Farmers now have access to real-time crop prices. and animal production comes committed $1.6 billion (€1.4 billion, from large commercial farms, at current exchange rates) to at the end of 2014, which, together, well as machine-to-machine although the balance is set to swing “A lot of foreign companies overhaul telecoms infrastructure should provide capacity for 80 (M2M) and VSAT applications for in coming years, thanks to the are working with us in and welcomed foreign partners million mobile subscribers. corporate users. Agricultural Growth Plan (AGP). value-added services” into the marketplace for the first While the Ministry looks after Although the government Since its introduction in 2010, combat poverty, AGP has focused forms the base of Ethiopian cuisine economic actors, build capacity, Andualem Admassie, CEO, Ethio Telecom time. In December 2010, France communications and IT policy, has ruled out privatising Ethio on strengthening institutions, – to reduce seeds used by 90% and work towards broad-based, Telecom was awarded a €30 Ethio Telecom is responsible for Telecom and the possibility of a scaling up best practices, and increase yields by 40%. Other inclusive and sustainable agricul- Dr Debretsion Gebremichael. million contract to modernise providing integrated telecoms second license, there is still plenty developing agro-industries, and initiatives have involved analysing tural development. The goal is to Aided by input and investment Ethio Telecom, the state-owned solutions across the country, of scope for overseas investors and putting in place small-scale soils, introducing new fertilizers, add value to agriculture at home from leading overseas telecoms telecoms provider. Then, in mid- encompassing a comprehensive partners to get involved in a sector infrastructure to manage irrigation distributing disease-resistant to reduce dependency on imports and tech partners, the country 2013, the government signed deals suite of pre- and postpaid voice, with enormous growth potential, and trade networks nationwide. seeds, and improving breeds and and earn more from exports of registered a huge increase in user with China’s Huawei Technologies data, internet, international, insists Andualem Admassie, Ethio According to Minister feeds to enhance productivity in processed products. numbers, from just six million to and ZTE Corporation to develop and value-added services (VAS). Telecom’s CEO: “We opened up of Agriculture and Natural Africa’s leading livestock market. “In this GTP period, one of more than 40 million, between Ethiopia’s mobile networks to These include ADSL, 3G, and, VAS,” he says, “so you’ll find a lot “We’ll develop four Resources, Tefera Deribew, under Now, GTP2 has ramped up the the elements we introduced is 2010 and 2015. Now, in line with 4G standards, backed by another since March 2015, 4G internet of foreign companies are working agro-industrial parks in GTP1 from 2010-2015, Ethiopia’s sector’s objectives to accelerate to work along the value chain,” the objectives of GTP2: “The next agreement with Sweden’s Ericsson connectivity for consumers, as in that with us.” the next five years” crop production increased from production to 40 million tonnes Minister Deribew explains, “so Tefera Deribew, Minister of 11.8 million tonnes to 27 million. by 2020, transition towards high- re-transformation can be achieved. Agriculture and Natural Resources This was achieved by such means er-value commodities, eliminate We have identified 17 agro-indus- ETHIOPIA COMMODITY EXCHANGE HELPS TRANSPARENCY AND TRUST GROW as changing the way farmers plant the food gap and protect against trial parks all over the country and Africa’s pioneering end-to-end marketplace for agricultural produce is providing benefits for all, at every step of the value chain in line with previous strategies teff – a native grain used to make shortages, create a market system we’ll develop four in the coming ince its launch in April 2008, default and fraud. Traders had to the union, but all smallholder has transformed traditional to foster rural development and injera, the flatbread which literally that benefits farmers and other five years.” Sthe Ethiopia Commodity rely on visual inspections of pro- farmers,” says Ato Yirdaw Alemu, trading into a modern marketing Exchange (ECX) has served as duce before purchasing, with no the General Manager of the Wodera system with technological an open, trusted marketplace guarantee of quality or quantity. Farmers’ Cooperative Union. “ECX advancement and transparency.” THE LAND WHERE COFFEE CAME FROM WELCOMES THE INDUSTRY HOME for the country’s agricultural As a result, the costs of doing busi- Ethiopia becomes the first place in Africa to hold the ICO’s annual meeting, underscoring the role the crop plays in the national economy sector. Its end-to-end system ness spiralled, leading to higher his March, the Ethiopian gov- In his remarks at the opening According to officials at the enables commodities to be prices for consumers. Ternment hosted the Internation- ceremony, Hussein Agraw, the Ministry of Trade, Ethiopia is tar- traded, graded, and stored in The ECX now uses mobile SMS al Coffee Organization’s (ICO) 4th President of the Ethiopia Coffee geting a 45% hike in coffee exports an efficient, secure manner, messaging, social media, and World Coffee Conference, under the Exporters’ Association highlighted this year, to reach around 260,000 ensuring payment and delivery since October 2015, a proprietary theme ‘Nurturing Coffee Culture the importance coffee has to the tonnes. In 2014, the country posted are free from risk. e-trading platform to allow actors and Diversity’. More than 1,000 dele- country’s economy: “Over four exports of 184,000 tonnes, worth Prior to the ECX’s inception, involved to see how exactly the gates from 77 ICO countries travelled million farmers make their living €685 million. The government is ex- only about a third of Ethiopia’s market functions, making it work to Addis Ababa to attend the event. from the crop and more than tending loans to exporters and pro- agricultural production came to for everybody’s benefit from the As the homeland of Arabica, the ICO 10 million people deal, directly cessors, offering incentives to help market. Growers had little ac- farm to the table. could not have chosen a more fitting or indirectly, with the sector in farms expand and modernise, and cess to price data, so only sold “Our participation in ECX is location for Africa’s first-ever global transporting, trading, processing, enhancing marketing and promo- Ethiopia is the world’s fifth largest to buyers they knew to avoid benefiting not only members of Ermias Eshetu, CEO of Ethiopian Commodity Exchange shows the electronic tag for traceability. meeting of the industry. roasting, and exporting.” tion of Ethiopian coffee worldwide. producer of coffee. Gerrit van Loo, Managing Director of Heineken Ethiopia

Can you tell us about the CREATE project and its objectives? CREATE is a Public Private Partnership between the Dutch government, the NGO EUCORD and ourselves. The project aims on one hand to provide us with the local raw materials we need to brew our beer and a sustainable and secure local supply chain and on the other hand to improve the livelihoods of local farmers by increasing their incomes. We want to get 20,000 Ethiopian farmers involved in this project by 2017 and we currently have 10,200. Concretely, it is about providing farmers with better seeds and train them on how to grow barley in a more productive way to increase their yields. We then buy the barley from the contracted farmers. Unlike most African countries, Ethiopia already has barley crops which is a great advantage. We are positively impacting communities for the better, and planting the seeds of sustainability. We also need to attract malting companies to come to the country because there isn’t enough malting capacity in Ethiopia.

Technology transfer and capability building are paramount for Ethiopia under Vision 2025. How is Heineken contributing to this? I am Our state-of-the-art brewery in Addis requires a highly capable A. Kabato Bentu workforce and so we have a graduate program in connection with the local universities. Our goal is that Ethiopians will run the local Heineken business themselves in the future. Indeed, even today there are only 10 expat employees out of a workforce of over one thousand. We Barley Farmer want to mentor people so that they obtain multinational management Beriti potential. We are working with the Agricultural Transformation Ethiopia Agency (ATA) and local research institutes on R&D. Our ambition is to In January 2015 Heineken inaugurated the largest brewery in Ethiopia grow with Ethiopia in a sustainable and inclusive way. just outside of the capital. The company has been in the country for over 100 years. Why did you make this investment now? What are the main challenges for investors in Ethiopia? When the government privatized the breweries in 2011, we bought the The first challenge is the availability of foreign exchange to secure Harar and Bedele breweries in the east and west of supply. Relatively high stocks are needed as Ethiopia the country. We knew that if we wanted a sustainable is a landlocked country, and for that reason we are national position, we needed to open a brewery in “We want to grow looking at import substitutions. The government is Addis Ababa. The new brewery was part of a €400 with Ethiopia so that working hard on improving the ease of doing business million investment in the country starting in 2011. the country benefits and are truly keen to help investors, although there is Ethiopia is a huge country with enormous growth and a from our success.” still a lot of red tape. growing middle class. Although the beer consumption Ethiopia is booming and more importantly, it is a per capita is low, it is rising very quickly. Our Walia country where you can really see the impact of your beer showed the potential of the industry and we decided to double the investment which is extremely rewarding and meaningful. capacity in Addis Ababa. We have learnt that Africa can help us. GROWING TOGETHER. We knew that we would need to make a significant investment in EINEKEN has had a close relationship with barley varieties for the Ethiopian soil and climate order to bring the breweries we bought from the government up to HAfrica for more than one hundred years. In this to training smallholder barley farmers. Today, internationally recognized standards and to ensure delivery of our time, we’ve learnt the importance of partnering for improved seeds are already being used to deliver sustainability targets. It was a huge task, but our three breweries are growth. To this end, we are committed to sourcing better quality barley, higher yields and increased now completely up to international standards and we were able to 60% of our agricultural raw materials from farmers household income. So far more than 6,000 double our business between 2014 and 2015. in Africa by 2020. Today, collaborative projects are farmers have already reaped the benefi ts of our fl ourishing in the Democratic Republic of Congo project; and there will be 20,000 in 2017. (DRC), Nigeria, Sierra-Leone, Egypt, Rwanda, Heineken defines itself as a “Partner for Growth”; what does that mean? Burundi, South Africa and Ethiopia. This successful collaboration between community This means we want to grow with Ethiopia so that the country benefits and our company is also benefi cial for us. It is from our success. We want to focus on developing our employees beyond We launched our barley project in Ethiopia in helping to create a sustainable source of raw the typical training. We want to strengthen a local supply chain of barley 2013 together with the Dutch Government, materials, a shorter supply chain, a reduction to reach greater import substitution. There is a need for glass factories, our NGO partner Eucord, Ethiopia’s Agricultural in transport and importation costs and a lower printing factories and canning factories to transform this industry into Transformation Agency (ATA) and the Ethiopian carbon footprint. We truly are growing together. a local sustainable business. We hope our presence in Ethiopia will Institute of Agricultural Research (EIAR). An attract investors who will come to build this sustainable supply chain. extensive programme has been put in place: Many people still believe that Africa needs from testing, then selecting the most appropriate help. We have learnt that Africa can help us.

900912 Ethiopia Eng SP r6.indd 1 2015/01/12 4:00 PM to working with its Ethiopian less than two decades. It already and preferential financing terms, Agro-alchemy turns green into gold partners to develop its raw barley sells its high-quality, highland while state-owned land near Leading local and overseas players are transforming Ethiopia’s harvest into finished products supply chain, while supporting leather and gloves from Sweden Addis Ababa Bole International the nation’s import substitution to Japan, and is close to getting its Airport has been leased at low drive. CREATE, a public-private products into the US market. The prices for farms. Leveraging n October 2016, Prime Minister €1.3 billion by 2020 —in Amhara, local markets to over 3.3 million Abbahawa Trading Company partnership it signed with the factory will add bags, garments, their location, producers have IHailemariam Desalegn will Oromia, Southern Ethiopia, farmers every month, according to is another homegrown business Dutch government and the NGO and other leather goods to its cultivated close relations with the welcome public- and private- and Tigray— as anchors for its CEO, Ermias Eshetu. with impeccable taste in coffee. EUCORD in 2013, aims to help product list soon. national flag carrier, Ethiopian sector delegates from around the development. Expected to attract Legesse Sherefa is just one of Founded in 1958 and run by the 20,000 local farmers grow barley “Ethiopia has very famous Airlines, which offers discounted world to the first International up to 400 private-sector companies, the exporters that stands to benefit third generation of the same family, in a more productive way by 2017. leather, suitable both for dress rates for freight on the 15 flights it Agro-Industry Investment Forum and direct foreign investment to from the ECX’s introduction, in it has grown to become Ethiopia’s “We partly finance the seeds, and golf gloves,” says Yigzaw operates weekly to European and in Addis Ababa. Organised by the activities with growth potential, November 2015, of electronic second largest exporter of coffee and materials needed, and give Assefa, Bahirdar’s CEO and the overseas markets. government and UNIDO, the they are set to strengthen the traceability for every bag of coffee today. The company sold more than Creating impact investment them to cooperatives,” van Loo Chairman of ELIA,“I’m open Fairtrade-certified Afriflora event aims to highlight Ethiopia’s supply chain, bring farmers closer produced in Ethiopia. Established 11,000 tonnes of its six sun-dried Although Ethiopians may drink explains. “They grow the barley, to working with any interested has been growing roses on one of investment climate, showcase to markets, and put in place the in 1970, Legesse Sherefa continues and washed varieties worldwide less beer, per head than some of sell it to us, and we make beer out of investor, especially on the final the world’s biggest flower farms opportunities in sectors like food infrastructure needed to process to be a family-owned concern and in 2015, worth €30 million, their thirstier African peers – the it. We are changing communities product, because we can be in Oromia state for over a decade, processing, leather products, raw materials in the rural areas currently markets nine grades mostly to Europe and Japan. country downed an estimated for the better and planting the competitive on production and after its Dutch founders, the pharmaceuticals, and textiles, where they are produced. washed and unwashed speciality For the ultimate speciality 7.5 litres per capita in 2014, seeds for sustainability.” they can be competitive on the Barnhoorn family, were invited and promote investment in light coffees. highland coffee, Abbahawa can compared to South Africa’s 58 marketing side.” by the Ethiopian government manufacturing. The company ships 2,000 tonnes even custom roast, grind, and litres and Namibia’s 104 litres. to replicate the success of a At present, the vast majority of beans a year to the U.S. and vacuum-pack single-origin Which shows consumption has previous venture in Kenya. Its of Ethiopia’s production is not European markets – like France, Arabica beans to order, for been rising for a decade. Little Cut flowers growing fast Sher Farms is a model of transformed prior to export, Germany, and Italy, where it sells to same-day shipping anywhere in wonder then, that the Dutch The Ethiopian cut-flower industry sustainable development and meaning that value is added, and the world-famous Illy brand – and, the world: “Our coffee is 100% brewing giant, Heineken, has began to bloom just a decade social responsibility, impacting benefited from, elsewhere. But the increasingly, to the Far East: “We Ethiopian,” points out Fuad Kedir, stepped up to the bar and invested and a half ago, but the nation as many as 100,000 people in government’s goal under GTP2 are now focusing on Japan,” says Abbahawa’s Deputy Managing millions into the local economy to already ranks as Africa’s second Ethiopia. Thanks to the Sher is to transform the country’s role Ahmed Legesse, the company’s Director. “The big roasters [use] serve the growing demand for a largest producer. Exports, which Foundation, workers and their from merely cultivating crops and General Manager. “We’re also 60-70% low-quality Robusta and cold one. contribute 80% of income earnings families enjoy access to a primary raising cattle to producing finished looking at the Chinese market and Arabica from Brazil, but they don’t “Why Ethiopia?” smiles Gerrit from horticulture, are set to reach school, a hospital, and capacity and semi-finished manufactured Korea is booming.” have the real Ethiopian taste.” van Loo, Heineken Ethiopia’s an estimated €485 million in 2016. building programmes. goods using homegrown inputs, to Managing Director. “It’s a huge Ethiopia has everything it takes Aflifora made the headlines retain a bigger share of the fruits of The birthplace of coffee country, a fast- growing economy, No hiding leather’s potential to grow high-value varieties, like back in June 2014, when the ALLEVIATING POVERTY THROUGH ECONOMIC its labour: “The commercialisation Thank goat for coffee. The story consumption is relatively low According to the Central roses, in spades: a benevolent New York private-equity firm AND SOCIAL DEVELOPMENT of the agriculture sector will goes that, centuries ago, not far and rising fast, so there’s room Statistical Agency, there are as climate, lots of land, and cost- KKR invested €175 million to be linked to agro-processing from Bonga in the country’s misty reated in 1995 by 25 which assembles mobile and to develop a big beer market. many cows, sheep, and goats in effective transport from the field purchase a stake in the company, industries,” insists Minister highlands, an Ethiopian goatherd Cindividuals to promote fixed-line telephones and print- The formula is: economic and Ethiopia as people, providing to markets. which grows more than 700 of Agriculture and Natural was surprised to see his herd perk economic and social development ers, through deals with South population growth, urbanization, huge potential not just for meat According to the President million flowers a year for Resources, Tefera Deribew. up after eating the bright red fruit in Amhara National Regional Korea’s Samsung Electronics. In and an emerging middle class; production, but also leather. But, of the Ethiopian Horticulture export from its 350 hectares of Agricultural produce, cut of a shrub he did not recognise. State, TIRET (which means another of its joint-venture suc- all these factors signalled a great between 2010-15, the Ethiopian Producers and Exporters greenhouses. Then, in March flowers, and livestock accounted Intrigued, he sampled a couple ‘effort’ in Amharic) has grown cess stories, TIRET attracted and potential growth engine for the Leather Industries Association Association (EHPEA), Zelalem 2015, the International Finance for almost 80% of Ethiopia’s exports himself and the rest is history. Today, to become one of the largest secured the biggest private-equi- company.” (ELIA) noted, export earnings Messele, the sector now employs Corporation agreed to lend the in 2015, worth €2.36 billion. Coffee, coffee arabica beans are used in holding endowments in Ethiopia, ty investment ever in Ethiopia in In January 2015, Heineken fell below the five-year target of as many as 100,000 people directly, company €90 million to expand tea, and spices led the way (29.7%), around 75% of the world’s coffee and leading the way in setting up new 2012, with the UK’s Duet Vasari, opened a brand-new, €110-million €435 million, reaching just €113 85% of whom are women, and production by 60%, which was followed by fruit and vegetables more than 15 million Ethiopians businesses, creating jobs, and in Dashen Breweries. brewery at Kilinto, near to Addis million. provides much needed inflows expected to create another 4,500 (18.4%), oil seeds (16.7%), flowers depend on them economically. attracting investment to benefit Tadesse Kassa, TIRET’s Ababa, where it can produce 150 Under GTP2, the goal is for of foreign currency to shore up jobs in addition its existing and plants (8.1%), and live animals Ethiopia exported €700 million the state’s people. CEO, recently revealed that million litres of its portfolio of exports to generate €700 million Ethiopia’s trade deficit. EHPEA 9,000-strong workforce. (5.9%). In fact, of the country’s worth of coffee last year, much of it TIRET is active today via 17 the corporate aims to earn €2.5 brands, including local favourites by 2020, driven by manufacturing has more than 90 members, top-ten export segments, only one sold on to private-sector companies enterprises established in the last billion for Amhara National Walia, Bedele, and Harar, as well to transform raw hides into 75% of whom are international – gems and precious metals – was via the Ethiopia Commodity two decades, with another 12 pro- Regional State by 2020, thanks as its iconic eponymous brew. The finished goods. To do so will companies, and represents their not sourced from the agricultural Exchange (ECX). Created in 2008, jects in the pipeline, and is organ- to a strategic expansion plan that plant took the company’s total require investment to improve collective interests in logistics and animal-rearing sectors, with the ECX provides market access ised into four clusters: agriculture will see the launch of another 30 investment in Ethiopia to €400 inputs, strengthen supply chains, negotiations and lobbying efforts. processed by-products like meat, and information to millions of and agro-processing, construc- companies over the next seven million over the last five years, and implement technology to add The Ethiopian government leather hides, garments, and smallholders who, otherwise, tion, manufacturing, and servic- years. “There is big potential in since it bought Bedele and Harar value to leather in Ethiopia before has enthusiastically supported footwear making up the rest of the would find it almost impossible to es. These include subsidiaries Amhara,” Kassa insists. “We breweries from the government export. growth in the industry, via list. sell their produce for a fair price. like Azila Electronics, which as- make a profit to sustain [TIRET] back in 2011. Bahirdar Tannery is well ahead investment incentives like Ethiopia now plans to build four Via an SMS-based service, it sends sembles household applicances, and to continue, but we are As part of its Partner for Growth of the curve, having evolved from corporate tax exemptions, the agro-industrial parks at a cost of up-to-date ticker data from 160 and Tana Communications, development-oriented.” strategy, Heineken is committed semi-processing to finishing in elimination of import duties, Ahmed Legesse, General Manager of Legesse Sherefa PLC. Tadesse Kassa, TIRET’s Chief Executive Officer

What are your main products and markets? Can you give us more information about the main sectors you work in and We have different varieties of coffees, both washed and unwashed. where you are looking for investors? However, with unwashed coffee, we are competing with the Colombians TIRET is an Endowment founded in 1995. Its main purpose of and the Brazilians. By not using fertilizer, Ethiopian coffee is organic and establishment is to play a significant role in the abolishing of poverty therefore our production levels are much lower than the countries where through economic and social development from its own income from heavy fertilizers are used. investment. TIRET has 17 operational enterprises and 13 projects. The We are therefore concentrating on the specialty and premium markets operational enterprises are organized into four clusters – Service, and are teaching the farmers how to prepare washed and sun-dried coffee Agriculture and Agro- Processing, Construction and Manufacturing. which have more added value. Every country says that their coffee is the We work in many different sectors of the Economy. best, but Ethiopian coffee really is one of the best and everyone knows it. We have to do more marketing efforts for our exports. Now that there The Agricultural Cluster mainly consists of: What are your current major projects? is a Ministry of Coffee and Tea Development, that is a step in the right • Fruit and Vegetables Production and Processing: Zeleke Agriculture We have a paper and pulp project and the cost is estimated to be 500 million direction. Mechanization, Metema Ginnery. USD. Although we have managed to get some shares holders locally willing We mainly export to Europe, as well as the US and Middle East markets. • The Manufacturing Cluster: Dashen Breweries, Gonder Malt, Jari to invest with us, we are looking for foreign Joint Venture investors. We aim We are now focusing on Japan and also looking at the Chinese and Mineral Water, Walia Crown Cork and Tin, Tekreruwa Plastic and to export to our neighboring countries. The capacity of the Paper and Pulp Korean markets. Plastic Products, Tana Communication, Azila Electronics, Projct is 150,000 tons of pulp and 150,000 tons of paper per year. Illy is one of our clients and they are one of the best names in the coffee How important is it for buyers to be able to trace their coffee back to the • Service Cluster: Dry Cargo Transport – Tikur Abay Transport and world. They are very serious about quality, but at the same time they are producers? Bekelcha Transport, Ambasel Trading House – Import and Export, What kind of investors are you looking for? very serious about social responsibility and helping the farmers. Nowadays it is very important and therefore, the Ethiopian Commodity Belessa Logistics, TT Engineering and Consultancy As it is difficult to obtain financing in Ethiopia, we are looking for Exchange launched a traceability system. It’s not easy because the coffee • Construction Cluster: BDC Construction, Lalibela Building Materials financial investors as well as partners who can provide us with technology How do you use technology to improve your productivity? comes from so many areas, and so we need to have a tag system tracing back Production capability. Knowledge transfer and access to international markets We once bought a Sortex machine which helped us improve our to the region and the exporter. In manufacturing, we want to make electronics business one of the biggest are both vital to our development. As an endowment, we are not out to productivity and quality. However, we were going to have to lay off staff and businesses in this sector in Ethiopia. For textiles we have now started make profit only, but here to create additional value chains and social we just couldn’t do it. Although technology is important for productivity, Where do you see Legesse Sherfa in five years? garmenting after which shall be supported by our own textile. We have development. We would like to create win-win and beneficial situation for we also have to think about social responsibility. Our hand-picked and We will invest and expand to double the project that our company is already established commencing our own cotton ginnery. The chemical Ethiopia as a whole and the Amhara Region in particular, as well as every hand-separated coffee also gives us an added value. involved in. industry is tangential to agro-processing, and we are looking for investors in investor in our projects. We are already in successful joint ventures with this sector. We are also working on pharmaceuticals, metallurgy, molding, internationally renowned companies such as Samsung in the technology construction, ceramics and many other industrial sectors also. sector and Duet and Vasari Global in the brewery project amongst others.

SYNERGIES FOR GREATER GROWTH TIRET is an endowment Ethiopian company with the objective to stimulate economic and social development and eradicate poverty in the Ethiopia is the origin of coffee. Legesse Sherefa Pvt Amhara National Regional State in particular and in Ethiopia in general. Ltd Company brings you Ethiopian Arabica Fine Coffee from the Highland of Ethiopian Regions. Here the coffee grows wild in the mountains and is part of the economic, social and cultural life. We export washed and unwashed beans from Grade 2 specialty coffee to conventional grades coffee.

www.legessesherefa.com Unbanked equals unlimited growth Exports key to sustaining growth Led by state-owned giant CBE, the financial sector sets its sights on serving new customers Industrialisation drive should help sell more overseas and boost foreign exchange reserves

n the two decades since n its latest assessment this IEthiopia’s financial sector was IApril, Fitch Ratings awarded GEORGE SHOE liberalised, 16 private commercial Ethiopia solid ‘B’s across the INCREASES FOOTPRINT banks have opened their doors, board with a stable outlook. But “If I cannot wear a bad shoe, joining two state-owned institu- it noted that the current account nobody else should wear a bad tions —the Commercial Bank of deficit remains a concern for shoe.” That, in a nutshell, is Ethiopia (CBE) and the DBE— in government planners and the philosophy behind George the fast-growing marketplace. policymakers, with international Shoe Ethiopia, O.K. Kaul, the Only one in five of the nation’s 100 reserves standing at just over two company’s General Manager million people are thought to hold months of payments at the end of explains. Its Ethiopian operation an account, providing massive 2015. Fitch also warned the birr is began producing comfortable, scope for the industry to extend its overvalued by 30%, adding to the quality footwear for export in reach. risk of exchange rate adjustment June 2014, although the group’s Foreign banks and shareholders if The National Bank of Ethiopia origins date back to 1979, when are not permitted under Ethiopian does not contain depreciation its factory opened in Taiwan. law, but, despite depending against the dollar. George Shoe invested close to on domestic funds to finance Tem rehenimagnim rem verorpo rporem im fugiam sitiumque optatur ab inum que “A country can only grow Ethiopian Airlines carries cargo to over 90 destinations worldwide. €8 million to set up its first operations, according to a 2015 to that extent it can generate to diversify its economic base. September, it launched ‘One’, a two factories in Addis Ababa’s report by the World Bank Group, 16.4% over the previous quarter, €12.8 billion. Established in 1942, “We have to expand to face foreign exchange or [improve] A 2014 report by the World Bank new bottled mineral water, which Bole Lemi Industrial Zone, “banks appear well capitalised and with private banks accounting for CBE has long been a pioneer – it international competition when its export performance,” concurs Group, entitled ‘Strengthening is being produced by a dedicated which make 3,000 pairs of 48% of the total. introduced ATMs to Ethiopia and the financial sector opens,” Zeleke, Dr Arkebe Oqubay, the architect Export Perfomance through subsidiary, Mogle Bottling Water shoes a day for export to China, At the end of last September, today has nearly a million cards who is also the Director of ECX, of Ethiopia’s industrialisation Improved Competitiveness’, high- Manufacturing. Japan, and the United States. 2,787 branches were operating in circulation – and today serves 11 explains. “Our merger... was a good policy. “Light manufacturing is lighted how much Ethiopia stands Mogle is not just putting water The firm posted revenues of nationwide, with a third located in million account holders, as well as example for the private sector. By export-oriented and we have to to gain by transforming its raw into bottles, but manufacturing €3.3 million in 2015 and, last the capital. Attending to the needs 460,000 mobile and online clients. 2025, [we] will be a world-class supply the global market, because material riches before sending the packaging and handling August, announced plans to of Ethiopia’s rural population, Following its merger with state- commercial bank. We are working we need to address constraints in them overseas. While a kilogram distribution from its plant in set up a new industrial park the Association of Ethiopian owned Construction and Business on being one of the best banks in foreign exchange.” of unprocessed coffee beans sells Sebeta, close to Addis Ababa. on 86 hectares in Mojo to Microfinance InstitutionsBank last December, CBE now has the world, not just in Africa.” Increasing the value and for about $20, the report pointed Abbahawa has invested €8.25 expand capacity. (AEMFI) groups together 34 over 1,100 branches nationwide In an interview earlier this year, volume of exports will be key to out, “a kilo of roasted Ethiopian million in the venture, most of Slated for completion by 2018, “By 2025, we will be a members, which collectively and employs 22,000 people. At Addisu Habba, the President of both sustaining Ethiopia’s decade-long coffee retails for as much as $40 in which was spent to build the the new factories are expected world-class commercial control a credit portfolio worth the start of 2016, as part of its the Ethiopian Bankers’ Association growth and ensuring the country international markets.” factory and buy machinery to cost more than €100 million. bank” Bekalu Zeleke, almost €850 million, with loans five-year plan to mobilise deposits, and privately-owned Debub Global attains middle-income status One of Ethiopia’s top coffee and delivery trucks. By July, it They will enable George Shoe President, CBE issued to 3.8 million borrowers. the bank’s President, Bekalu Bank, agreed the Ethiopian finan- by 2025. To do so, the nation not exporters, Abbahawa Trading plans to increase production to to ramp up production and Ethiopia’s biggest bank by Zeleke, approved a backlog of cial sector still had a long way to go only needs to process more of its Company, already roasts its own 700,000 600ml bottles a day, says process 450,000 square metres profitable.” The National Bank of assets, and by some margin, is applications for letters of credit to be internationally competitive, production into finished goods beans for export, but has now its General Manager, Enyew of leather to make 750,000 pairs Ethiopia’s latest data pegged total still the CBE, which held around worth €1.75 billion, triggering a insisting that increased capitalisa- that can be sold for higher prices turned to an even more basic Zeleke, adding: “We already of shoes every month as well as assets in the system at more than 33% of the capital in the financial massive flow of cash into the CBE’s tion and consolidation would be and bigger margins, but also has commodity to grow its bottom started exporting to neighbouring other leather articles, providing €1.5 billion in Q3 2015, a jump of system in Q3 2015, with assets of coffers. needed in the next few years. to develop new productive sectors line and boost foreign sales. Last countries like Djibouti.” work for 20,000 people.

MOBILISING BANKING FLOWERS LEADING THE WAY FOR HORTICULTURE EXPORTS Innovative mobile money service connects micro-finance leaders to consumers, allowing them to pay bills and receive cash even where banks do not go Floriculture production has grown exponentially in recent years, mostly for European markets, and Ethiopia looks set to overtake Kenya as Africa’s top exporter

n a perfect example of technology to connect the country’s can pay and get paid,” Artaud says. thiopia’s flower trade is years, according to the Ethiopian networks, improve access to finance, of its member companies to foster Ihow ICT brings the world top five micro-finance institutions “You can transfer and receive money Eblooming. The nation now Horticulture Producer Exporters and introduce export-oriented industry partnerships, enhance together, M-Birr, Ethiopia’s — ADSCI, ASCI, DECSI, from anywhere in the country, and ranks second in Africa after Association (EHPEA), the total area incentives. Less than a decade and a market access, promote responsi- first mobile money service, was OCSSCO, and OMO— to the 80% very soon from abroad.” Users can Kenya, with over 100 farms under cultivation for flowers, plants, half later, it has close to 100 members ble production, and build capacity: co-initiated by a Frenchman of local people who are currently also pay for goods and services, flourishing on 1,700 hectares of fruit, herbs, and vegetables should that grow all kinds of produce “We have our own training team in Ireland. Thierry Artaud is unbanked, but, thanks to M-Birr, withdraw cash at TOTAL service land. While floriculture may be reach 3,000 hectares. EHPEA was set for export to overseas markets, that works with the management the COO of MOSS ICT and can now manage many of their stations, and handle bills and loans, the fastest growing segment, it is up in 2002 by five farms that joined principally to the European Union. of farms to earn quality certifica- General Manager of its Ethiopian financial needs via mobile phone. he adds: “Mobile banking brings far from the only crop Ethiopia forces to lobby the government to Led by Chairman Zalelem tions that the market requires,” operation, which provides the “Obviously, the basic service is you tremendous benefits.” grows for export. Within five develop infrastructure and logistics Messele, EHPEA works on behalf Messele says. Ato Bekalu Zeleke, President of the Commercial Bank of Ethiopia

There is a foreign currency gap in our country because our inflow is less than our outflow. The main reason has been that large investments have been made as a result of the GTP I, but they still haven’t reached production stage. We expect a lot of projects to start production during the next GTP and so our inflow will increase. We will try to focus our foreign currency on critical products such as raw materials for factories instead of finished materials such as luxury goods. We will also finance the export sectors, which reduce demand for foreign currency and increase our foreign currency earnings. In GTP II, we expect our exports to grow at a rate of more than 25 percent and our imports at over 16 percent. Therefore, the gap will be narrowing down further over the coming five years, although there will still exist a gap. How do you see the growth of the agribusiness sector and the unbanked population, especially in rural areas? Over the past few years our agricultural sector has grown very quickly and for the last five we have gained 1.2 million new customers every year. We have opened branches in rural areas so they are accessible to those involved in the agribusiness sector. We have tried to teach farmers about the benefits of deposits and credits and so now they come and use our services. We also provide loans for seeds and fertilizers to increase their productivity.

How is investment in technology helping you grow your international banking services? We invest a great deal in IT and we now have a core banking system. The success in the first five-year Growth and Transformation Plan Our IT systems are the same as any international bank anywhere (GTP) was clear for the Commercial Bank of Ethiopia. How are you in the world. We have a long and close relationship with all the big going to build on this success in the second GTP? international and cross-border banks, and we have large credit limits The main success of GTP I was to create access to with them. finance, especially in rural areas. Our economy “Over the last five years During the last five years we have invested a great deal is dependent on the agricultural sector and the we have opened an in IT, but our main challenge is human resources. We farmers previously had no access to finance. Over average of 150 branches have been collaborating with the Frankfurt School of the last five years we have opened on average 150 per year in rural areas.” Finance on this area. We are also working closely with branches each year in rural areas. Because of this the universities and we have also developed our own aggressive approach, our deposits have grown very quickly; on average training institutions, such as our Centre of Excellence. CBE’s Mobile Banking: 35% annually. This means we now have the capacity to finance different projects especially in manufacturing, agriculture and the export sector. Where would you like to see the Commercial Bank of Ethiopia in five • Access your bank account Our main target in GTP II is the private sector. We have already invested to 10 years? in infrastructure and as a consequence the private sector has been able In 2025 we want our bank to be a world-class commercial bank, not just • Transfer funds to grow . We are therefore now going to focus on the manufacturing and in Africa but at an international level. agricultural sectors. • Make payments

How can the Commercial Bank of Ethiopia help attract FDI to Ethiopia • Check balance and what incentives are investors offered? The private sector enjoys incentives such as the provision of loans at low interest rates - almost a concessional interest rate. We are working with big FDIs such as the textile industries. As we are a governmental bank, we provide foreign currency at a concessional rate for imported raw materials. Profitability is not our main focus rather we are here to help investors boost their productivity.

How is the lower oil price and the remittance inflow helping you to get further earnings in the foreign currency gap? We accept Visa and MasterCard at our ATMs and POS www.combanketh.et There’s gold in them thar hills Abundant metal and mineral riches fuel exploration rush for homegrown and overseas miners EXPORTING CLEAN AND

hile the whereabouts of small-scale, but by the end of expects to invest more than €35 GREEN ENERGY TO THE REGION WKing Solomon’s mines may GTP2 in 2020, the country aims million by the time it applies for a forever be a mystery, the Queen to have five major gold mines in mining licence at Dish Mountain Proudly leading the renewable energy revolution in Ethiopia and East Africa, ETHIOPIAN ELECTRIC of Sheba probably sourced her operation and have commenced in Asosa, after the release of a POWER (EEP) is seeking international partners to take advantage of the country’s hydro, wind, fabled hoard of gold from northern commercial production of potash promising maiden resource geothermal and solar power opportunities. Ethiopia, if the 2012 discovery of from the massive 100-million-ton statement in 2014 that revealed the an ancient mineshaft on Gheralta Danakil deposit in Afar state. As presence of 48 tonnes of gold. Under the ambitious national transformation plan currently being undertaken, and the existence plateau did, indeed, belong to the Tolesa Shagi, Ethiopia’s Minister Since then, says Omar El- of conducive governmental energy policy and a stable economic and political environment, EEP is biblical ruler. Today, a modern gold of Mines, Petroleum and Natural Alfy, Vice President of Qalaa targeting international investment and nancing for projects that will boost national and regional (and potash) rush is underway, with Gas, confirms: “Ethiopia’s metals Holdings, APM has been hard energy capacity. foreign investment flooding in and and minerals are untapped and at work, drilling to de-risk the Blessed with wonderful natural resources that make it an ideal destination for investors seeking Lega Dembi gold mine. multinational mining firms staking unexplored. There are huge project and producing feasibility, pro table openings in green energies, Ethiopia boasts vast potential in areas such as hydroelectric, their claims over the last few years. resources we’re discovering now.” Newmont Mining Corporation environmental and social impact biomass, solar, geothermal and wind energies, with detailed feasibility studies already concluded. The government has done its For now, the only operating gold revealed its interest in exploring in studies to move to the production part to incentivise investment in mine in the country is Lega Dembi, the country, on two concessions also phase: “Our exploration licence EEP desires international nancial and human capital — from private and public sector entities — to the sector, cutting royalties on gold in southern Ethiopia’s Sidamo in Tigray state. expires in 2017 and we’re well on maximize these exciting openings that will further fuel the superior transformation of the country, add from 8% to 7%, reduced income tax province, which was bought by But Cyprus-based KEFI Minerals track to apply for a mining licence capacity to the national grid and allow Ethiopia to expand its export of green and clean energy. from 35% to 25%, introducing two Midroc Gold, a subsidiary of the is betting on being next to extract within that timeframe,” El-Alfy new types of licence, and launching privately-owned Midroc Ethiopian gold commercially, when its Tulu explains, “We are extremely a computerised cadastre system to Investment Group, from the state Kapi project in Western Ethiopian determined about getting to register concessions, among other in 1997 for $172 million (€151 enters production in 2017. With development and are looking measures. million, at current exchange rates). probable ore reserves in excess of forward to growing this business. Aside from gold and potash, Production began in 1998 and now 28 tonnes, Tulu Kapi is projected to This is just the first stepping Ethiopia also possesses reserves stands at 4,500 tonnes of silver have a lifetime of nine years and will stone. Once we start producing, it of copper, platinum and tantalum, and gold a year. Midroc Gold also require investment of some €130 will grow very aggressively [and] which is increasingly in demand started developing a second mine in million. KEFI also intends to build quickly.” North Yemen for use in transistors, as well as Sakaro, near to Lega Dembi, in 2010. a processing plant with the capacity El-Alfy says that APM’s Sudan minerals like cement, clay, gypsum, In January 2012, National to handle 1.2 million tonnes of investment in Ethiopia will likely salt, and shale. Mining Corporation, also part of material a year. exceed €175 million, once it has According to a 2014 World Bank the Midroc Group, announced the The only rival that could beat added the cost of a processing Djibouti report, the nation’s mining sector biggest find yet of gold and base KEFI past the post is ASCOM facility to its pre-production could be worth between €1.3 and metals in Ethiopia at Dawa Okote Precious Metals (APM), a budget, but that its impact is not €1.75 billion by 2024, although a in Oromia state, containing up to subsidiary of Egypt’s Qalaa just economic: “The social benefits number of challenges still need to 500 tonnes. Ethiopia’s own Ezana Holdings. Active in Ethiopia since are ample,” he insists, “like the South ETHIOPIA be resolved for the country to fulfil Mining Development launched 2008, APM holds the rights to two jobs it’s going to create, [as well Sudan its potential. a €15.6 million refinery project in concessions: Asosa, in the western as] improved education, improved At present, 90% of mining northern Tigray state in 2013. And part of the country, and Awero infrastructure that comes as the activity remains artisanal and at the beginning of 2016, US giant Godere, in the southwest. Qalaa industry develops.”

EXTRACTING GREATER VALUE FROM ETHIOPIA’S MINING POTENTIAL Ministry responsible for sector aims to bolster revenues, export earnings, and foreign exchange reserves, as rising gold prices attract new players Rwanda Kenya ast September, the inaugural tential impact on the country’s for- count for 10% of GDP by 2025, thanks The rally in gold prices since the Burundi Ledition of the Ethiopia Inter- tunes and the government’s support to a comprehensive set of measures beginning of 2016 has provided sig- national Mining Conference & for the industry. introduced to stimulate capital in- nificant cause for optimism in the Exhibition brought together 300 Although gold generates almost vestment: “We hope to increase em- industry’s prospects. At the end of public- and private-sector stake- 19% of Ethiopia’s export income, ployment, government revenue, and April, two new companies joined Ethiopian Electric Power holders in Addis Ababa. Tolesa mining still represents only a small foreign-currency earnings,” Minister the fray, with Letto Mining and Tel: +251-11 558 05 29 Shagi, the Minister of Mines, Pe- share of the economy. But that should Shagi says. “There will be a radical Lozbez Mining signing deals with [email protected] troleum and Natural Gas was on change drastically over the next dec- rise [that] will contribute to our so- the Ministry to dig for placer and www.eep.gov.et hand to talk about mining’s po- ade, as the sector is expected to ac- cial and economic transformation.” primary gold and silver. Omar El-Alfy, Principal of Qalaa Holdings

What motivated Ascom to come to Ethiopia without any proven reserves having been discovered? West Africa has been heavily explored but East Africa and the Arabian- Nubian shield (ANS) specifically, into which countries such as Egypt, Sudan and Ethiopia fall, has been extremely under explored, even though the ANS was the site of some of man’s earliest geological efforts with regard to the extraction of gold. We felt there was a lot of potential within this region, just as much, if not more than West Africa. This was the key driver, coupled with the fact that Ethiopia has a very competitive and attractive mining regime, huge growth prospects for the country Investing in and a very intriguing demographic. The government’s commitment to increase infrastructure spending also convinced us to come here.

Ascom Mining Ethiopia (AME) have reported in their initial Mineral Resource Estimate, one of the largest resources in the country at your Asosa - Dish Mountain Concession. Are you still on target for production? It typically takes between 10 to 15 years to bring a grass root exploration discovery to production. One in a thousand exploration plays are As a mining/exploration company, how would you value the ease of successful and we were lucky enough to beat the odds and make a doing business in Ethiopia? discovery. We have been actively exploring in Ethiopia now for a little We’ve been overwhelmed by the support that the Ministry of Mines over 8 years and are very close to applying for our mining license. In has given us throughout our little over eight years of exploration. The Ethiopia you are given a 10-year exploration license, after which you good thing is that Ethiopia is open, dynamic and fully aware that there need to convert it into a mining license. In order to complete this process, is always room for improvement. The Ministry actively works with all a company must complete all the relevant Feasibility Studies together stakeholders to resolve any issues that arise, and I think that is key to with an environmental and social impact study. Naturally we have been achieving everyone’s ultimate goals. We have been very comfortable working diligently on this matter. Our exploration license expires in with our business here in Ethiopia, and are looking forward to growing May 2017, however we are well on track to apply for a it significantly in the future. Ethiopia’s Future mining license within that time-frame. “We have been very comfortable with What have been the main advantages and challenges What are your objectives at the moment? our business here in of mining in Ethiopia? Our prime objective currently is to complete all Ethiopia, and are looking As I mentioned earlier, the main attraction would necessary works required to be in apposition to apply forward to growing it in have to be the geology and prospectivity together with for our Mining License early next year. Our intention the future.” probably one of the most attractive mining regimes in is to initially bring a moderate reserve to development the region and an extremely supportive governmental that is robust enough to withstand the current gold price whilst offering framework. attractive returns for its shareholders. Once Dish has been developed Infrastructure, such as road access, power and water, is obviously and is producing we intend to use some of the cash flow that will be key for mining and this is a challenge that Ethiopia is facing, although generated to expand our Dish Mountain concession through further they’re working very hard to resolve these issues. The challenge is also exploration. We believe there is a lot of upside potential within our in finding the necessary skill sets and support networks our industry immediate concession area and surrounding region which we intend to requires locally, however over the years and as the local mining industry tap into once we start producing. Our aim will be to aggressively grow has been growing, we have seen great improvements in this also with the business over the next three to five years following production. more and more companies and service providers entering this space.

How challenging was it to obtain finance? How does AME create jobs for Ethiopians? With over 80,000 meters of trenching I would be lying if I said that it hasn’t been an extremely difficult period We currently have 54 full time employees based in both Addis and for global markets and the industry in general and more specifically, for Asosa. 96% of them are Ethiopian nationals. Typically once we initiate and drilling and a further drill program junior explorers. Equities have been hit hard and exploration dollars have a new drill program we will employ and train additional people from in the pipeline, APM ETHIOPIA looks been increasingly hard to come by. We however have been fairly lucky the surrounding villages in order to support the drilling effort. Everyone in the sense that we have not relied on equity markets for our funding, needs to be aware that the mining industry has a lot to offer and has to forward taking its Dish Mountain rather all our funding to date has been provided by our parent company take responsibility in the social and environmental impact of the area. Project to the next level and applying ASCOM and its main shareholder Qalaa Holdings who have supported People often forget about the indirect employment that is created from the project throughout the volatile markets that we have witnessed over the mining industry; a number of case studies have indicated that for for its mining license in early 2017. the last few years with their own internal cash flow. That’s not to say every direct mining job, 14 indirect jobs are created, and as time goes on however that it’s been easy for us. Exploration is very expensive and so that figure increases whilst local entrepreneurship is boosted. The social www.ascompm.com far we have already spent close to 40 million dollars, with this number benefits are ample and once we start production we will continue to ensure expected to rise significantly once we move into development. that the surrounding villages and its people are positively impacted. Tewolde GebreMariam, Chief Executive Officer of Ethiopian Airlines Group

The third pillar is Human Resource Development which is why we have expanded our aviation academy. With our new fleet, infrastructure and employees, we need a new system to put them together which contains policies, procedures and global standard processes and ICT. The airline YOUR RELIABLE PARTNER is highly automated in every aspect and is even now paperless. One Natural Mineral Water is purified bottled water that started to be produced in 2015. The brand Vision 2025 began in 2010 and in just five years, we can say that Vision 2025 is a reality. Not only have we met our targets, but we have exceeded aims at achieving the utmost quality level in the production of its bottled products keeping the them. The airline has doubled and our current revenue is 2.5 billion natural contents in the bottled spring water. USD. We now have more than 76 planes in service, and although our original aim was to reach 90 international destinations by 2025, we are Derived from the original source of Mogle Mountain, One Natural Purified Water is produced at its already flying to 91 by 2015. 13,000 square meters of factory in Sebeta region, Ethiopia. Our products are manufactured with

You like to underline that the airline is state-owned not state-run. Can the highest quality as we use the latest machinery in water purification technology along with highly you explain this statement? qualified experts. The airline is owned by the government, but it is run by professional airline experts. It is operated exactly like a private business, and it has One Spring Water aims at delivering its organic products to satisfy the demand in the local market helped contribute to the double-digit growth in Ethiopia and the image of and export to different countries. renewal and renaissance that Ethiopia has experienced. Ownership and management roles are clearly demarcated in the corporate governance. We believe in self-sufficiency. Our airline academy is almost as old as the airline itself. We need an academy because unlike in Europe and the US it is difficult to find airline professionals in Africa. Furthermore, sending airplanes to Europe for maintenance is very expensive and impractical. We needed our own capability development and that is why we want our own trained qualified, motivated and dedicated people. We believe that human resources should be an asset, not only for Ethiopian Airlines is the largest, fastest growing and most profitable the airline, but also for the continent. Ethiopia has a population of 90 airline in Africa. Tell us about your ambitious plans million with a young, educated demographic. The of expansion detailed in Vision 2025. academy is huge and so we also export trained labour Ethiopian Airlines has been around for 70 years, “The airline is owned to other countries. but it has grown very quickly indeed over the past by the government but 10 years. run by airline experts.” How does Ethiopian Airlines help in social and We came up with Vision 2025 in 2010. By that economic change? time we were expecting the 787 Dreamliner and We are an airline from a third world country, but we the Airbus A350 to take the airline to the next level. We knew that are succeeding on the global stage and competing with the mega carriers. the aircrafts’ design, manufacturing and financing were going to take The airline significantly contributes to tourism by facilitating visitors a while so we decided to implement a 15-year long-term plan. Many from its 91 destinations. In terms of economic development, Ethiopia’s industry experts had their doubts about the viability and feasibility of horticultural industry wouldn’t have been able to be as successful as it 15 year-long plan, because the airline industry is volatile, dynamic and has been without the airline and furthermore we earn foreign currency constantly in evolution. for the country. However, we still decided to go ahead with this ambitious Vision 2025 We can show other state-owned companies in Ethiopia and Africa that as we believed in having a solid forecast and confidence in our market they can emulate Ethiopian Airlines and have international success if planning. Our plan is to grow the airline from 1.3 billion USD annual they do the right things. turnover to 10 billion USD by 2025 and have a total of 150 airplanes in service with seven different business units. The idea was to transform the airline into an aviation group. There are four pillars of Vision 2025, the first of which is to increase our fleet, whilst maintaining a balance between diversity and commonality. The second is to increase our infrastructure such as building our own cargo terminal, which when finished, will rival the capacity of Hong Kong or Amsterdam Schiphol airports. We also have an expansion plan for the passenger terminal which will accommodate 22 million Abbahawa Trading PLC passengers a year up from the current eight million today. After 2025 a www.abbahawa.com new airport is planned which will be at a lower altitude to save on fuel costs. Welcome to where it all began Millions of years of human history and millennia of culture combine in one unique destination

ook now to avoid disappoint- walked Ethiopia’s Awash Valley 3.2 Bment. After Ethiopia was million years ago; the Ethnological named ‘World’s Best Tourism Museum, among Africa’s best, Destination’ last July by the according to Lonely Planet; and European Council on Tourism and Holy Trinity Cathedral; or dive Trade, a growing flow of visitors into Mercato, possibly Africa’s Ethio telecom has been flooding into the country, biggest market, in search of a determined to see its UNESCO bargain for your birr. World Heritage listed sites, experi- The rest of Ethiopia is a bewitch- ence its centuries-old culture, and ing, sometimes bewildering, mix get off the proverbial track before it Hewn from rock, the cave Church of St George in Lalibela, Amhara region. of sights, scents, and sensations European Quality Award Winner of 2015 gets too beaten. 2.5 million arrivals by 2020 and Forum and Expo and the city is that transport you out of time to a The 2014/15 fiscal year was ramp up revenues to €3.1 billion, leveraging its first-class facilities place where past, present, and fu- already a good one for the more than East African peers like – like ECA Conference Center; ture are inextricably intertwined. Ethiopian tourism industry, which Kenya and Tanzania. Bole International, undergoing Its nine World Heritage Sites – & posted earnings of €2.6 billion, The capital, Addis Ababa, is expansion to become Africa’s one natural, Simien Mountains according to government and a destination worth dedicating biggest airport by 2018; and National Park, and eight cultur- World Bank figures, contributing time to discover, even if you’re excellent hotels – to attract more al: the ancient ruins of Aksum, 4.5% of GDP. At the start of April here on business. Aptly called business traffic. Emperors’ palace at Fasil Ghebbi, Winner of African Telecom Leadership Award 2015 2016, the Ministry of Culture and the Political Capital of Africa – Originally opened by Emperor Tourism —led by Aisha Mohamed it is home to the African Union Haile Selassie in 1969, Hilton Addis in Four Categories: Mussa, one of two women in Commission, the United Nations Ababa is located conveniently Prime Minister Desalegn’s cabinet Economic Commission for Africa close to the African Union and — revealed that receipts for the (ECA), and the regional offices ECA, and just 15 minutes from the Best Operator of the Year first six months of this year had of the UNDP and UNESCO – it airport, but seems a world away surpassed €1.5 billion, putting the is Africa’s fourth largest city and from the hustle and bustle of the country on course for a record 12 a true melting pot, home to an city, thanks to its 15 acres of sub- CEO of the Year months. estimated 4.5 million people, and tropical gardens, geo-thermal pool, Some 470,000 visitors arrived counting. and health club. With six bars and The gardens of the Hilton Addis Ababa. CEO with HR Orientation in Ethiopia in the second half of Despite welcoming frequent restaurants serving a variety of mosques and shrines of Harar 2015, the Ministry said, well over diplomatic delegations, Ethiopia’s cuisines, guests in its 372 rooms Jugol, fortified Konso cultural Global Sustainability Award half the 750,000 the country has MICE (Meetings, Incentives, and suites are spoiled for choice. landscape, stone churches of holy received annually in recent years. Conferences, and Exhibitions) The Hilton serves as a perfect Lalibela, millennial stelae at Tiya, The average tourist stayed for 16 segment remains underdeveloped. base to explore the capital. and the archaeological remains days and spent $234 (€208) per That now looks set to change as, Highlights include the National of the Lower Valleys of the Awash day. Last August, the government this March, Addis Ababa hosted Museum, home to Lucy, the and the Omo – are just the start of announced its goal to reach the inaugural MICE East Africa ‘grandmother of humanity’, who what could be the trip of a lifetime.

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