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Two decade long agricultural policy receives revision

Pastoralists set to benefit from the inclusivity

Ministry of Agriculture (MoA) is revising a two decade old agricultural rural development policy in taking into account the latest context on the sector with ten major pillars. The new policy will promote inclusive development in the agriculture sector with the consideration of the pastoralist and lowland development.

Mandefro Nigussie, State Minister for Crop Development at MoA, said at Addis Weg Round Table discussion on the development journey of pastoralist communities was held on Thursday January 14 at the Office of the Prime Minister Office and that the policy that existed for the past 19 years is under revision that needs contextual changes.

He said that there are some of the agendas that need holistic changes with regards to promoting inclusive agriculture and rural development on the consideration of irrigation, financing, land issue, sustainable development, natural resource development, mechanization and others.

“The policy has considered an integrated approach on social and economic dimension and environmental issue,” Mandefro, a crop production scientist, said.

Mandefro Nigussie

Regarding pastoralist areas development plan, in the past the policy and effort had focused on the establishment of massive commercial farms by private and government on the pastoralist system.

“Such direction has a gap on benefiting the pastoralist that could not assure the benefit of the community and even affects the pastoralist system,” Mandefro says that the current upcoming policy will consider developmental programs with the assurance and the benefit of the community in the pastoralist areas.

Under the existed policy developments at the lowlands were not sustainable, which is one of the result occurred in the past, according to the sector expert.

Mandefro said that meanwhile necessitate attention was not given for lowland it is hope of the future Ethiopia, since it has ample resources including enormous surface and underground water that shall creating enabling environment for agricultural production throughout the year.

“All areas would not transform to crop production but there are areas that will be opened for fragile condition in the lowland area. The production would also consider fodder, which shall support the pastoralist besides hard currency revenue from export,” the State Minister said, adding that “Environment wise the irrigation development we have learnt from the past mistake was that the need of drainage system that needed for sustainable utilization of land that we follow in the upcoming policy.”

The discussion explored the existing livelihood of pastoralists, the benefits and challenges of the policies implemented over the years, and the ongoing efforts to ensure sustainable development and benefit the community.

“National and regional mindset on developing the sector with required investment is needed to change the way of life of the pastoralist community and the areas that is the future potential of the region,” the State Minister added.

Wondimu Tekle, Irrigation Commission Commissioner at the Ministry of Water, Irrigation and Energy, said that the Ministry has revised the policy and strategy of the sector and developed a ten year plan.

“The country has a potential of 123 billion cubic meter of surface and 40 billion cubic meter underground water that are crucial for agriculture development. The country has 12 river basins and eight of them are wet. From the 8 river basin five of them pass through lowlands,” he said.

“Meanwhile most of Ethiopian rivers sourced from highlands their potential is at the lowlands,” Wondimu explained that how the lowland is a good potential for agricultural development.

The GenaleDawa, Baro Akobo, Shebelle, Awash and the Rift Valley shall develop over four million hectare of land.

According to Wondimu, the Ministry has identified 15 major irrigation corridors and 10 of them are located in lowland areas.

Abdurahman Eid Tahir, Head of Irrigation and Basin Development Bureau of Somali regional, said that the policy for the pastoralist’s areas development mainly focused on as core on security and administrational issues.

Abdurahman appreciated the discussion that brings the pastoralist issue at the front and show the interest of the government to give encouraging attention for the community, the resource and social development in lowland areas unlike in the past, “we can learn from the past failure and achievements that supposed to be followed in the future.”

“One of the key issues forgotten in the past was that there was no undertaking of such kind of discussions. Such kind of dialogues indicates that we shall come up with effective policy formation for demanded growth in the stated sector and areas,” the regional Bureau head said.

He reminded that the livestock policy inception was began in the Emperor Era that mainly focused on settlement that still influence the policy developments up to today.

Citing the challenges like and positive aspects of pastoralist policies over the past decades, Abdurahman recalled that the settlement of pastoralists which was believed to simplify administration and to reduce security concerns, has not benefited the pastoralists.

He shows that the pastoralist’s development is still followed by Ministry of Peace that at least supposed to be managed by Ministry of Agriculture.

The development activities that can be considered positive are the attempts to improve the literacy of the pastoralist community under alternative basic education initiative, animal health, and to enable the production of fodder for consumption within Ethiopia and neighbouring countries.

Honey Hassen, consultant on agricultural economy and one of the panelists, said that pastoralist sensitive development should be considered for sustainable development in the low land area.

“Settlements for the community shall apply but it must to account the management of livestock and put emplace systematic approach with the real understanding of the society and the situation,” she adds “when we plan for development is would be inclusive in all areas.”

Regarding to access to finance Mandefro said that the new policy has given attention and put a strategy up to the establishment of Agricultural bank to back the agricultural development.

Abdurahman recalled that access to finance was one of the bottlenecks for the sector development in the past that is improving now, “the opening up of Interest free banking is a good transformation in terms to solve access to finance for the Muslim community like in Afar, Somali and other lowland areas.”

Honey explained that pastoralists located in different areas have differing living conditions, structures and interests, and hence development plans and policies should consider these existing conditions.

Mandefro stated it is crucial to implement sustainable development options in a way that preserves the pastoral lifestyle of the communities and takes climate change into account. Cotton and wheat crops, for example, have been successfully harvested three times a year in pastoral areas.

The lowland covers 60 percent of total area of Ethiopia and up to 14 percent of the population included on the livelihood.

Afar, BenshangulGumuz, Somali, SNNP, Oromia, and Gambella have lowlands

Abdurahman said that from the GDP contribution is up to 15 percent is contributed from pastoralist area and 95 percent of livestock and its product export is sourced from the stated areas.

The security situation of civilians and internally displaced persons from Tigray region risks becoming a humanitarian crisis: EHRC

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The Ethiopian Human Rights Commission (EHRC) stated that the security situation of civilians in the war affected areas in the Tigray Region as well as surrounding areas and persons displaced as a result could turn into a humanitarian crisis. The Commission has published a Brief Monitoring Report of its investigative mission in Gondar and Dansha from December 15 to December 20, 2020 and in Bissober and Ullaga Kebeles/Villages of Chercher Woreda in Raya Azebo from December 31,2020 to January 5, 2021. The report presents the findings from EHRC visits to affected areas, hospitals and temporary shelters for displaced persons as well as testimonies from government and non-government sources, victims and other relevant bodies.

EHRC further stated that the findings of the Commission’s on-going investigation missions in Mekelle other parts of Tigray region since January 10, 2021, will also inform upcoming reports as it continues to monitor developments in the region and the situation of civilians and internally displaced persons.

In Dansha, Humera, Bissober and Ullaga, where the investigation mission principally focused for this report, the war has led to civilian casualties including death, bodily harm, exposed civilian residences and commercial properties to looting and various damages, and caused the destruction of infrastructure in the areas. The continued disruption of public services such as electricity and water risks further exacerbating the humanitarian situation for residents and displaced persons. In Bissober and Ullaga, 31 civilians have died, 104 residential houses were partially or completely destroyed by fire and the local school and health centres sustained heavy damage.

JCC strategizes to formalize informal business actors

Jobs Creation Commission (JCC) announces that its new strategy gives attention for informal business actors.

The strategy that is expected to be done for the implementation by the end of this budget year has different components that target to improve job creation in urban and rural areas.

Under the new strategy JCC has given attention for those who have significant contribution to the economy but have not yet been identified by the government.

Dawit Mulugeta, Manager of Innovative Jobs and Projects at JCC, told Capital that the informal business sector is taking up to 30 percent of the country’s economy, but those who engage in this sector are neither formally registered nor pay tax.

“Since they have enabled to sustain themselves and their family and generate revenue as JCC we recognize them because that they are also contributing to the economy,” he said.

Due to that, under the latest strategy revision that will replace the ten years old ‘Micro and Small Business Strategy’ the informal sector has got big attention to find ways to include them on a formal system.

“It will of great benefit to them on tax net and they will be able to get different type of support from the government which they have so far missed due to the miss link between the two. Therefore, they will get the required support that is facilitated by the government and the relevant stakeholders,” he added.

“Awareness creation will be a priority to inform them on the benefit that they may get if they become formal business operators. Mostly those who are engaged on informal sector do not have required information, knowhow and required trainings, meanwhile some of them are awarded but preferred the informal way to hide tax,” he explained.

Making the informal sector competitive in the business environment is the second phase of the strategy. The level of competitiveness is to be set by making them tailor made business actors under the improvement of doing business.

Under the new scheme identifying those who purposely avoid the tax scheme and demand to exist in the informal sector would be also undertaken in different policy measures with required government offices.

Those who are involved on ‘gig economy’ like working on delivery services has also grabbed the attention of JCC.

It has formed a taskforce to look after the activity of the gig economy actors to operate on formal ways. “There is a significant number of citizens engaged on more than two revenue making jobs, but because they are not benefited properly due to that there is no formal platform that recognized them and connected them with customers on affordable rate,” Dawit explained.

In this regard a platform that has a market linkage scheme and others shall be developed and currently JCC is working on it.

“To solve the problem and come up with solutions, policy and infrastructure like digital literacy and internet facility have to be developed,” he said. In this aspect we are now working with the support of UNDP and other partners and government offices, and service providers that will brew fruit in the coming couple of years.

AfCFTA can help drive Africa’s economic recovery from COVID-19

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The African Continental Free Trade Area (AfCFTA) can help drive the continent’s economic recovery from the deadly coronavirus pandemic and spur transformation, says Economic Commission for Africa’s (ECA) Regional Integration and Trade Division Director, Stephen Karingi.

In remarks during the 6th PIDA Week, the ECA Director said given that Africa does not have the fiscal space for trillion-dollar stimulus packages as it attempts to ‘build forward better’ from the impact of COVID-19, the AfCFTA, driven by the private sector, was going to be key in unlocking Africa’s potential.

He stressed that Africa will have to look for innovative alternatives to push its recovery efforts. Quality infrastructure development was crucial too if the AfCFTA is to spur economic growth on the continent.

“ECA’s latest empirical analysis provides useful insights in terms of the trade-related impacts the implementation of the AfCFTA is expected to have on African economies,” said Karingi.

Results from the liberalization of trade in goods alone under the AfCFTA reform show that Africa’s global GDP and exports would increase. Overall, Africa’s GDP is forecasted to increase between US$28 and US$44 billion after full implementation in 2040, as compared to a baseline without tariff liberalization.

As far as exports are concerned, the bulk of the benefits would be for intra-African trade, with intra-African exports foreseen to increase by around US$50-US$70 billion.

“It is worth emphasizing that two-thirds of latter gains would be realized in the manufacturing sector, providing invaluable opportunities for industrialization. The supply-chains, which are critical to diversification and inclusion, and if deep, transformation. That is why we are all particular about rules of origin, and obedience to AfCFTA rules,” Karingi said.

Interestingly, post-implementation, the proportion of industrial products in additional intra-African trade would be larger for least developed countries (LDCs) than non-LDCs – i.e. 76% vs. 62%, respectively.

“Integration policies should lead to convergence of incomes, and our findings are an important result,” said Karingi, emphasizing the findings, focusing on the sole liberalization of trade in goods, offered only a partial view of the economic impacts to be expected from the AfCFTA.

The AfCFTA Agreement instructs State Parties to liberalize trade in services, remove some of the non-tariff barriers (NTBs), along with adoption of trade facilitation measures. Previous analyses by the ECA and UNCTAD show that the reduction of NTBs and implementing trade facilitation reforms strongly amplify the benefits observed through the sole removal of tariffs, in terms of both exports and welfare, which could increase two- to four-fold.

The ECA Director said transformation through the AfCFTA will occur by unlocking manufacturing potential and facilitate industrialisation; and it will help build a robust and resilient private sector, which is vital for inclusiveness and sustainable growth.

He said the private sector will be key to the success of the AfCFTA and recovery from COVID19; it will bring in enhanced regulations and improved environment; and huge deficits in infrastructure services could be addressed by the scale and competition that the AfCFTA provides, helping attract finance.

“In other words, the financial liberalisation in the continent foreseen in the AfCFTA will lead to financial integration and deepening,” said Karingi, adding the long-term prospects that the AfCFTA brings cannot be underestimated.

“It will allow countries to accelerate reforms. It is also catalytic, acting as a platform for leapfrogging services liberalisation. The phase II segment of the AfCFTA makes this possible as it enhances competition, creates a common investment area, and rewards and protects innovators,” he added.

“The COVID19 pandemic has demonstrated the importance of efficient services, including those that are digitally delivered.”

Karingi added; “There is a two-way causality between infrastructure investments and AfCFTA contribution to the African economy. Infrastructure is a source of resilience, as we have seen in some sectors such as ICT. The priority services sectors of the AfCFTA require infrastructure, and it is important that State parties realise that offensive strategies will be undermined by any lack of progress in the infrastructure services commitments.”

He said climate change was undermining enablers for industrialization in Africa, including infrastructure, energy, water and raw materials, adding to the economic urgency of fast-tracking Africa’s green transition.

PIDA is the African Union’s strategic framework for regional and continental infrastructure development.